Reportable Segments

6 Months Ended

Jun. 27, 2020

The Company reports segment information in accordance with ASC Topic No. 280 “Segment Reporting” (“Topic No. 280”). Effective the beginning of fiscal year 2020, the Company's Chief Executive Officer, who is the chief operating decision maker ("CODM"), re-evaluated the structure of the Company's internal organization as a result of the 2019 acquisition of QSI. To reflect management's revised perspective, the Company is now organized into three operating and reportable segments: Infrastructure ("INF"), which includes the Company's engineering, civil program management, utility services, and construction quality assurance practices; Building, Technology & Sciences ("BTS"), which includes the Company's environmental practices and buildings program management practices; and Geospatial Solutions ("GEO"), which includes the Company's geospatial solution practices. The GEO segment has been created in order to provide greater visibility regarding the operational and financial performance of QSI and of the Company as a whole. The GEO segment structure is consistent with how the Company plans and allocates resources, manages its business, and assesses its performance. There was no impact to the INF and BTS prior period segment financial results. The assets of QSI were reallocated from the Company's INF reportable segment to the Company's new GEO reportable segment.

The Company evaluates the performance of these reportable segments based on their respective operating income before the effect of amortization expense related to acquisitions and other unallocated corporate expenses. The Company accounts for inter-segment revenues and transfers as if the sales and transfers were to third parties. All intercompany balances and transactions are eliminated in consolidation.

The following tables set forth summarized financial information concerning our reportable segments:



	Three Months Ended						Six Months Ended
	June 27, 2020			June 29, 2019			June 27, 2020			June 29, 2019
Gross revenues
INF	$	89,366		$	83,547		$	174,841		$	161,319
BTS	37,166			45,372			80,690			85,646
GEO	38,233			—			76,193			—
Elimination of inter-segment revenues	(2,076		)	(945		)	(3,555		)	(1,656		)
Total gross revenues	$	162,689		$	127,974		$	328,169		$	245,309

Segment income before taxes
INF	$	15,797		$	14,691		$	29,137		$	27,265
BTS	5,409			7,499			10,828			13,416
GEO	6,145			—			13,758			—
Total Segment income before taxes	27,351			22,190			53,723			40,681
Corporate⁽¹⁾	(20,792		)	(13,050		)	(41,570		)	(24,481		)
Total income before taxes	$	6,559		$	9,140		$	12,153		$	16,200

⁽¹⁾Includes amortization of intangibles of $9,512 and $17,851 for the three and six months ended June 27, 2020, respectively, and $5,083 and $10,083 for the three and six months ended June 29, 2019, respectively.



	June 27, 2020		December 28, 2019
Assets
INF	$	294,115	$	303,239
BTS	132,107		131,967
GEO	351,334		365,605
Corporate⁽¹⁾	119,559		92,326
Total assets	$	897,115	$	893,137

⁽¹⁾Corporate assets consist of intercompany eliminations and assets not allocated to segments including cash and cash equivalents and certain other assets.

Substantially all of the Company's assets are located in the United States.

Upon adoption of Topic 606, the Company disaggregates its gross revenues from contracts with customers by geographic location, customer-type and contract-type for each of our reportable segments. Disaggregated revenues include the elimination of inter-segment revenues which has been allocated to each segment. The Company believes this best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by economic factors. Gross revenue, classified by the major geographic areas in which the Company's customers were located, were as follows:



	Three Months Ended June 27, 2020								Six Months Ended June 27, 2020
	INF		BTS		GEO		Total		INF		BTS		GEO		Total
United States	$	87,889	$	34,743	$	37,929	$	160,561	$	172,315	$	75,185	$	75,467	$	322,967
Foreign	—		1,898		230		2,128		—		4,567		635		5,202
Total gross revenues	$	87,889	$	36,641	$	38,159	$	162,689	$	172,315	$	79,752	$	76,102	$	328,169



	Three Months Ended June 29, 2019								Six Months Ended June 29, 2019
	INF		BTS		GEO		Total		INF		BTS		GEO		Total
United States	$	82,790	$	42,676	$	—	$	125,466	$	160,062	$	80,013	$	—	$	240,075
Foreign	—		2,508		—		2,508		—		5,234		—		5,234
Total gross revenues	$	82,790	$	45,184	$	—	$	127,974	$	160,062	$	85,247	$	—	$	245,309

Gross revenue by customer were as follows:



	Three Months Ended June 27, 2020								Six Months Ended June 27, 2020
	INF		BTS		GEO		Total		INF		BTS		GEO		Total
Public and quasi-public sector	$	67,723	$	17,658	$	26,524	$	111,905	$	133,107	$	35,492	$	53,036	$	221,635
Private sector	20,166		18,983		11,635		50,784		39,208		44,260		23,066		106,534
Total gross revenues	$	87,889	$	36,641	$	38,159	$	162,689	$	172,315	$	79,752	$	76,102	$	328,169



	Three Months Ended June 29, 2019								Six Months Ended June 29, 2019
	INF		BTS		GEO		Total		INF		BTS		GEO		Total
Public and quasi-public sector	$	72,415	$	17,404	$	—	$	89,819	$	140,540	$	32,573	$	—	$	173,113
Private sector	10,375		27,780		—		38,155		19,522		52,674		—		72,196
Total gross revenues	$	82,790	$	45,184	$	—	$	127,974	$	160,062	$	85,247	$	—	$	245,309

Gross revenues by contract type were as follows:



	Three Months Ended June 27, 2020								Six Months Ended June 27, 2020
	INF		BTS		GEO		Total		INF		BTS		GEO		Total
Cost-reimbursable contracts	$	82,631	$	31,167	$	38,159	$	151,957	$	162,996	$	64,377	$	76,102	$	303,475
Fixed-unit price contracts	5,258		5,474		—		10,732		9,319		15,375		—		24,694
Total gross revenues	$	87,889	$	36,641	$	38,159	$	162,689	$	172,315	$	79,752	$	76,102	$	328,169



	Three Months Ended June 29, 2019								Six Months Ended June 29, 2019
	INF		BTS		GEO		Total		INF		BTS		GEO		Total
Cost-reimbursable contracts	$	79,974	$	35,995	$	—	$	115,969	$	155,740	$	68,139	$	—	$	223,879
Fixed-unit price contracts	2,816		9,189		—		12,005		4,322		17,108		—		21,430
Total gross revenues	$	82,790	$	45,184	$	—	$	127,974	$	160,062	$	85,247	$	—	$	245,309

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details