Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 14 — Segment Information

The Company manages and evaluates its operations in two reportable segments: Housekeeping (housekeeping, laundry, linen and other services) and Dietary (dietary department services). Although both segments serve a similar customer 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. Such services are rendered pursuant to discrete contracts, specific to each reportable segment.

The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. Differences between the reportable segments’ operating results and other disclosed data and the information in the Consolidated Financial Statements relate primarily to corporate level transactions and recording of transactions at the reportable segment level using 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 in the consolidated financial statements. In addition, most corporate expenses such as corporate salary and benefit costs, certain legal costs, debt expense, information technology costs, depreciation, amortization of finite-lived intangible assets, share based compensation costs and other corporate-specific costs, are not fully allocated to the operating segments. There are also allocations for workers’ compensation and general liability expense within the operating segments that differ from the actual expense recorded by the Company under U.S. GAAP. Segment amounts disclosed are prior to elimination entries made in consolidation.

All revenues and net income are earned in the United States.

	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Revenues1
Housekeeping	$	795,687	$	821,329	$	895,267
Dietary	894,489		820,630		865,036
Total	$	1,690,176	$	1,641,959	$	1,760,303
Income before income taxes
Housekeeping	$	73,096	$	79,380	$	95,723
Dietary	29,065		45,758		68,293
Corporate2	(57,079)		(63,315)		(34,830)
Total	$	45,082	$	61,823	$	129,186
Depreciation and amortization
Housekeeping	$	5,491	$	5,399	$	5,722
Dietary	3,075		2,611		2,394
Corporate	6,750		6,657		6,152
Consolidated	$	15,316	$	14,667	$	14,268
Total assets
Housekeeping	$	250,444	$	225,531	$	214,500
Dietary	263,126		221,911		174,866
Corporate3	204,764		330,087		395,665
Consolidated	$	718,334	$	777,529	$	785,031
Capital expenditures
Housekeeping	$	4,412	$	5,005	$	3,710
Dietary	499		451		393
Corporate	299		231		238
Consolidated	$	5,210	$	5,687	$	4,341

1.For the years ended December 31, 2022 and 2021, both the Housekeeping and Dietary segments earned revenue from several significant customers, although Genesis was the only customer to contribute more than 10% of consolidated revenue. For the years ended December 31, 2022, 2021 and 2020, Genesis accounted for $169.1 million or 10.0%, $177.1 million or 10.8% and $258.7 million or 14.7% of the Company’s consolidated revenues, respectively.

2.Primarily represents corporate office costs 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 other income and interest expense.

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