Revenue Recognition (Notes)

9 Months Ended

Sep. 26, 2020

Revenue Recognition [Abstract]

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 nine months ended September 26, 2020 and September 28, 2019 by major sources:

Three Months Ended September 26, 2020	Utility		Residential and Commercial		All Other		Consolidated
Type of service:
Tree and plant care	$	135,021	$	90,049	$	(10)	$	225,060
Grounds maintenance	—		36,296		—		36,296
Storm damage services	7,061		4,069		—		11,130
Consulting and other	43,418		21,021		528		64,967
Total revenues	$	185,500	$	151,435	$	518	$	337,453
Geography:
United States	$	176,528	$	140,571	$	518	$	317,617
Canada	8,972		10,864		—		19,836
Total revenues	$	185,500	$	151,435	$	518	$	337,453

Three Months Ended September 28, 2019	Utility		Residential and Commercial		All Other		Consolidated
Type of service:
Tree and plant care	$	119,449	$	85,112	$	(86)	$	204,475
Grounds maintenance	—		40,721		—		40,721
Storm damage services	1,709		1,550		—		3,259
Consulting and other	38,930		19,386		702		59,018
Total revenues	$	160,088	$	146,769	$	616	$	307,473
Geography:
United States	$	150,118	$	135,868	$	616	$	286,602
Canada	9,970		10,901		—		20,871
Total revenues	$	160,088	$	146,769	$	616	$	307,473

Nine Months Ended September 26, 2020	Utility		Residential and Commercial		All Other		Consolidated
Type of service:
Tree and plant care	$	408,371	$	233,810	$	(121)	$	642,060
Grounds maintenance	—		100,352		—		100,352
Storm damage services	8,087		6,047		—		14,134
Consulting and other	131,526		56,084		824		188,434
Total revenues	$	547,984	$	396,293	$	703	$	944,980
Geography:
United States	$	522,094	$	369,297	$	703	$	892,094
Canada	25,890		26,996		—		52,886
Total revenues	$	547,984	$	396,293	$	703	$	944,980

Nine Months Ended September 28, 2019	Utility		Residential and Commercial		All Other		Consolidated
Type of service:
Tree and plant care	$	335,658	$	231,988	$	(90)	$	567,556
Grounds maintenance	—		114,320		—		114,320
Storm damage services	2,933		4,163		—		7,096
Consulting and other	113,158		53,663		1,003		167,824
Total revenues	$	451,749	$	404,134	$	913	$	856,796
Geography:
United States	$	420,701	$	376,304	$	913	$	797,918
Canada	31,048		27,830		—		58,878
Total revenues	$	451,749	$	404,134	$	913	$	856,796

Contract Balances

Our contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue. The Company has recognized $150 and $1,411 of revenue for the three and nine months ended September 26, 2020, respectively, that was included in the contract liability balance at December 31, 2019 and $119 and $1,925 of revenue for the three and nine months ended September 28, 2019, respectively, that was included in the contract liability balance at December 31, 2018. Net contract liabilities consisted of the following:

	September 26, 2020		December 31, 2019
Contract liabilities - current	$	3,558	$	3,129
Contract liabilities - noncurrent	1,662		2,705
Net contract liabilities	$	5,220	$	5,834