SEGMENT INFORMATION

9 Months Ended

Sep. 29, 2017

SEGMENT INFORMATION

SEGMENT INFORMATION

10.SEGMENT INFORMATION

The Company has four reporting segments: Energy Efficiency Services, Engineering Services, Public Finance Services and Homeland Security Services. The Energy Efficiency Services segment, which consists of WES, provides energy efficiency consulting services to utilities, state agencies, municipalities, private industry and non-profit organizations. The Engineering Services segment consists of Willdan Engineering, Willdan Infrastructure and Public Agency Resources. The Engineering Services segment offers a broad range of engineering and planning services to the Company’s public and private sector clients. The Public Finance Services segment, which consists of Willdan Financial Services, provides expertise and support for the various financing techniques employed by public agencies to finance their operations and infrastructure along with the mandated reporting and other requirements associated with these financings. The Homeland Security Services segment, which consists of Willdan Homeland Solutions, provides national preparedness, homeland security consulting, public safety and emergency response services to cities, related municipal service agencies and other entities.

The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 30, 2016. There were no intersegment sales in the three and nine month periods ended September 29, 2017 and September 30, 2016.  The Company’s chief operating decision maker evaluates the performance of each segment based upon income or loss from operations before income taxes. Certain segment asset information including expenditures for long-lived assets has not been presented as it is not reported to or reviewed by the chief operating decision maker. In addition, enterprise-wide service line contract revenue is not included as it is impracticable to report this information for each group of similar services.

Financial information with respect to the reportable segments as of and for the fiscal three and nine months ended September 29, 2017 and as of and for the fiscal three and nine months ended September 30, 2016 is as follows:

	Energy				Public		Homeland
	Efficiency		Engineering		Finance		Security		Unallocated				Consolidated
	Services		Services		Services		Services		Corporate		Intersegment		Total
Fiscal Three Months Ended September 29, 2017
Contract revenue	$	50,031,000	$	14,980,000	$	3,272,000	$	724,000	$	—	$	—	$	69,007,000
Segment profit (loss) before income tax expense		825,000		2,612,000		244,000		(55,000)		552,000		—		4,178,000
Net income (loss)		570,000		1,804,000		168,000		(38,000)		382,000		—		2,886,000
Segment assets(1)		74,955,000		12,439,000		6,809,000		799,000		58,980,000		(23,130,000)		130,852,000
Fiscal Three Months Ended September 30, 2016
Contract revenue	$	41,988,000	$	12,906,000	$	3,199,000	$	567,000	$	—	$	—	$	58,660,000
Segment profit (loss) before income tax expense		1,058,000		1,857,000		287,000		4,000		(196,000)		—		3,010,000
Net income (loss)		895,000		1,508,000		221,000		5,000		(167,000)		—		2,462,000
Segment assets(1)		65,383,000		12,012,000		5,994,000		498,000		46,041,000		(23,130,000)		106,798,000
Fiscal Nine Months Ended September 29, 2017
Contract revenue	$	153,877,000	$	43,467,000	$	9,973,000	$	1,874,000	$	—	$	—	$	209,191,000
Segment profit (loss) before income tax expense		3,519,000		6,230,000		1,061,000		(149,000)		17,000		—		10,678,000
Net income (loss)		2,913,000		5,157,000		878,000		(124,000)		15,000		—		8,839,000
Segment assets(1)		74,955,000		12,439,000		6,809,000		799,000		58,980,000		(23,130,000)		130,852,000
Fiscal Nine Months Ended September 30, 2016
Contract revenue	$	103,574,000	$	36,863,000	$	9,206,000	$	1,873,000	$	—	$	—	$	151,516,000
Segment profit (loss) before income tax expense		4,257,000		4,941,000		294,000		92,000		(864,000)		—		8,720,000
Net income (loss)		3,285,000		3,814,000		227,000		71,000		(667,000)		—		6,730,000
Segment assets(1)		65,383,000		12,012,000		5,994,000		498,000		46,041,000		(23,130,000)		106,798,000

(1) Segment assets represent segment assets, net of intercompany receivables.