Operations by Business Segment

9 Months Ended

Sep. 26, 2020

Segment Reporting [Abstract]

Operations by business segment [Text Block]

Operations by Business SegmentWe provide a wide range of arboricultural, horticultural, environmental and consulting services to residential, utility, commercial and government entities throughout the United States and Canada. We have two reportable operating segments organized by type or class of customer: Residential and Commercial, and Utility.

Residential and Commercial--Residential and Commercial provides services to our residential and commercial customers including: the treatment, preservation, maintenance, removal and planting of trees, shrubs and other plant life; the practice of landscaping, grounds maintenance, tree surgery, tree feeding and tree spraying; the application of fertilizer, herbicides and insecticides; and natural resource management and consulting, forestry research and development, and environmental planning.

Utility--Utility is principally engaged in providing services to our utility customers--investor-owned, municipal utilities, and rural electric cooperatives--including: the practice of line-clearing and vegetation management around power lines and rights-of-way and chemical brush control, natural resource management and consulting, forestry research and development, and environmental planning.

All other operating activities, including research, technical support and laboratory diagnostic facilities, are included in “All Other.”

Measurement of Segment Profit and Loss and Segment Assets--We evaluate performance and allocate resources based primarily on operating income and also actively manage business unit operating assets. Segment information, including reconciling adjustments, is presented consistent with the basis described in our 2019 Annual Report.    

Segment information reconciled to the condensed consolidated financial statements follows:

	Utility		Residential and Commercial		All Other		Reconciling Adjustments			Consolidated
Three Months Ended September 26, 2020
Revenues	$	185,500	$	151,435	$	518	$	—		$	337,453
Income (loss) from operations	20,301		20,273		(2,758)		(2,316)		(a)	35,500
Interest expense							(1,579)			(1,579)
Interest income							1,688			1,688
Other income (expense), net							(1,499)			(1,499)
Income before income taxes										$	34,110
Segment assets, total	$	296,519	$	227,977	$	—	$	147,188	(b)	$	671,684
Three Months Ended September 28, 2019
Revenues	$	160,088	$	146,769	$	616	$	—		$	307,473
Income (loss) from operations	10,941		17,667		(3,456)		(2,369)		(a)	22,783
Interest expense							(2,018)			(2,018)
Interest income							94			94
Other income (expense), net							(1,886)			(1,886)
Income before income taxes										$	18,973
Segment assets, total	$	247,031	$	238,692	$	—	$	115,475	(b)	$	601,198
Nine Months Ended September 26, 2020
Revenues	$	547,984	$	396,293	$	703	$	—		$	944,980
Income (loss) from operations	56,817		42,242		(11,005)		(4,309)		(a)	83,745
Interest expense							(5,477)			(5,477)
Interest income							1,885			1,885
Other income (expense), net							(4,550)			(4,550)
Income before income taxes										$	75,603
Segment assets, total	$	296,519	$	227,977	$	—	$	147,188	(b)	$	671,684
Nine Months Ended September 28, 2019
Revenues	$	451,749	$	404,134	$	913	$	—		$	856,796
Income (loss) from operations	26,816		44,772		(11,825)		(3,732)		(a)	56,031
Interest expense							(6,597)			(6,597)
Interest income							270			270
Other income (expense), net							(6,694)			(6,694)
Income before income taxes										$	43,010
Segment assets, total	$	247,031	$	238,692	$	—	$	115,475	(b)	$	601,198

Reconciling adjustments from segment reporting to the condensed consolidated financial statements include unallocated corporate items:

(a)Reclassification of depreciation expense and allocation of corporate expenses.

(b)Corporate assets include cash, prepaid expenses, corporate facilities, enterprise-wide information systems and other nonoperating assets.