Revenue Recognition (Notes)

6 Months Ended

Jun. 27, 2020

Revenue from contract from customer [Text Block]

Revenue Recognition

We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers.

Nature of Performance Obligations and Significant Judgments

At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service (or bundle of goods and services) that is distinct. To identify the performance obligations, the Company considers each of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices.

Our contracts with our customers generally originate upon the completion of a quote for services for residential and commercial customers or the receipt of a purchase order (or similar work order) for utility customers. In some cases, our contracts are governed by master services agreements, in which case our contract under ASC 606 consists of the combination of the master services agreement and the quote/purchase order. Many of our contracts have a stated duration of one year or less or contain termination clauses that allow the customer to cancel the contract after a specified notice period, which is typically less than 90 days. Due to the fact that many of our arrangements allow the customer to terminate for convenience, the duration of the contract for revenue recognition purposes generally does not extend beyond the services that we have actually transferred. As a result, many of our contracts are, in effect, day-to-day or month-to-month contracts.

Disaggregation of Revenue

The following tables disaggregate our revenue for the three and six months ended June 27, 2020 and June 29, 2019 by major sources:



Three Months Ended June 27, 2020	Utility		Residential and Commercial		All Other			Consolidated
Type of service:
Tree and plant care	$	131,607	$	83,504	$	(86	)	$	215,025
Grounds maintenance	—		40,991		—			40,991
Storm damage services	502		1,341		—			1,843
Consulting and other	44,626		17,069		(307		)	61,388
Total revenues	$	176,735	$	142,905	$	(393	)	$	319,247

Geography:
United States	$	168,479	$	133,674	$	(393	)	$	301,760
Canada	8,256		9,231		—			17,487
Total revenues	$	176,735	$	142,905	$	(393	)	$	319,247



Three Months Ended June 29, 2019	Utility		Residential and Commercial		All Other		Consolidated
Type of service:
Tree and plant care	$	112,823	$	86,450	$	7	$	199,280
Grounds maintenance	—		45,657		—		45,657
Storm damage services	152		988		—		1,140
Consulting and other	38,217		16,875		265		55,357
Total revenues	$	151,192	$	149,970	$	272	$	301,434

Geography:
United States	$	140,701	$	139,437	$	272	$	280,410
Canada	10,491		10,533		—		21,024
Total revenues	$	151,192	$	149,970	$	272	$	301,434



Six Months Ended June 27, 2020	Utility		Residential and Commercial		All Other			Consolidated
Type of service:
Tree and plant care	$	273,350	$	143,761	$	(111	)	$	417,000
Grounds maintenance	—		64,054		—			64,054
Storm damage services	1,026		1,978		—			3,004
Consulting and other	88,108		35,065		296			123,469
Total revenues	$	362,484	$	244,858	$	185		$	607,527

Geography:
United States	$	345,566	$	228,726	$	185		$	574,477
Canada	16,918		16,132		—			33,050
Total revenues	$	362,484	$	244,858	$	185		$	607,527



Six Months Ended June 29, 2019	Utility		Residential and Commercial		All Other			Consolidated
Type of service:
Tree and plant care	$	216,209	$	146,877	$	(4	)	$	363,082
Grounds maintenance	—		73,599		—			73,599
Storm damage services	1,224		2,613		—			3,837
Consulting and other	74,228		34,276		301			108,805
Total revenues	$	291,661	$	257,365	$	297		$	549,323

Geography:
United States	$	270,583	$	240,436	$	297		$	511,316
Canada	21,078		16,929		—			38,007
Total revenues	$	291,661	$	257,365	$	297		$	549,323

Contract Balances

Our contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue. The Company has recognized $318 and $1,260 of revenue for the three and six months ended June 27, 2020, respectively, that was included in the contract liability balance at December 31, 2019 and $594 and $1,674 of revenue for the three and six months ended June 29, 2019, respectively, that was included in the contract liability balance at December 31, 2018. Net contract liabilities consisted of the following:



	June 27, 2020		December 31, 2019
Contract liabilities - current	$	3,674	$	3,129
Contract liabilities - noncurrent	1,584		2,705
Net contract liabilities	$	5,258	$	5,834