Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Reportable Operating Segments

We manage and evaluate our operations in two reportable segments: Housekeeping (housekeeping, laundry, linen and other services), and Dietary (dietary department services). Although both segments serve the same client base and share many operational similarities, they are managed separately due to distinct differences in the type of services provided, as well as the specialized expertise required of the professional management personnel responsible for delivering each segment’s services. We consider the various services provided within each reportable segment to comprise an identifiable reportable operating segment since such services are rendered pursuant to a single service agreement, specific to that reportable segment, as well as the fact that the delivery of the respective reportable segment’s services are managed by management personnel exclusive to the particular reportable segment.

The Company’s accounting policies for the segments are generally the same as the Company’s significant accounting policies. Differences between the reportable segments’ operating results and other disclosed data and our consolidated financial statements relate primarily to corporate level transactions and recording of transactions at the reportable segment level which use methods other than generally accepted accounting principles. There are certain inventories and supplies that are primarily expensed when incurred within the operating segments, while they are capitalized for the consolidated financial statements. As discussed, most corporate expense is not allocated to the operating segments, and such expenses include corporate salary and benefit costs, certain legal costs, information technology costs, depreciation, amortization of finite lived intangibles, share based compensation costs and other corporate specific costs. Additionally, there are allocations for workers compensation and general liability expense within the operating segments that differ from our actual expense recorded for U.S. GAAP. Segment amounts disclosed are prior to any elimination entries made in consolidation.

All revenues and net income are earned in one geographic area, the United States.

	Housekeeping services		Dietary services		Corporate and eliminations				Total
	(in thousands)
Year Ended December 31, 2016
Revenues	$	957,148	$	605,514	$	—			$	1,562,662
Income before income taxes	$	90,756	$	34,641	$	(5,010	)	(1)	$	120,387
Depreciation and amortization	$	6,535	$	439	$	522			$	7,496
Total assets	$	266,464	$	127,187	$	134,795		(2)	$	528,446
Capital expenditures	$	4,612	$	410	$	420			$	5,442
Year Ended December 31, 2015
Revenues	$	909,709	$	527,140	$	—			$	1,436,849
Income before income taxes	$	84,471	$	31,612	$	(26,319	)	(1)	$	89,764
Depreciation and amortization	$	6,488	$	685	$	487			$	7,660
Total assets	$	228,116	$	104,797	$	148,036		(2)	$	480,949
Capital expenditures	$	3,586	$	336	$	1,076			$	4,998
Year Ended December 31, 2014
Revenues	$	846,610	$	446,573	$	—			$	1,293,183
Income before income taxes	$	70,390	$	26,343	$	(65,025	)	(1)	$	31,708
Depreciation and amortization	$	6,114	$	662	$	493			$	7,269
Total assets	$	223,440	$	95,861	$	150,278		(2)	$	469,579
Capital expenditures	$	4,375	$	391	$	1,029			$	5,795

⁽¹⁾  Represents primarily corporate office cost and related overhead, recording of certain inventories and supplies and workers compensation costs at the reportable segment level which use accounting methods that differ from those used at the corporate level, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments, net of investment and interest income. Additionally, during 2014, the Company recorded a one-time, non-cash change in estimate related to our self-insurance liability which was not allocated to the reportable segments.

⁽²⁾  Primarily consists of cash and cash equivalents, marketable securities, deferred income taxes and other current and noncurrent assets.