Segment Reporting

6 Months Ended

Jul. 01, 2022

Segment Reporting [Abstract]

Segment Reporting

Note 9: Segment Reporting

The Company has two reportable operating segments based on two primary areas of service. The Engineering and Other Scientific segment is a broad service group providing technical consulting in different practices primarily in engineering. The Environmental and Health segment provides services in the areas of environmental, epidemiology and health risk analysis. This segment provides a wide range of consulting services relating to environmental hazards and risks and the impact on both human health and the environment. Our Chief Executive Officer, the chief operating decision maker, reviews revenues and operating income for each of our reportable segments, but does not review total assets in evaluating segment performance and capital allocation.

Segment information for the three and six months ended July 1, 2022 and July 2, 2021 follows:

Revenues

	Three Months Ended				Six Months Ended
(In thousands)	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Engineering and Other Scientific	$	109,150	$	98,139	$	213,765	$	191,748
Environmental and Health		21,131		21,738		44,994		44,610
Total revenues	$	130,281	$	119,877	$	258,759	$	236,358

Operating Income

	Three Months Ended						Six Months Ended
(In thousands)	July 1, 2022			July 2, 2021			July 1, 2022			July 2, 2021
Engineering and Other Scientific	$	40,032		$	37,914		$	78,522		$	71,970
Environmental and Health		6,846			7,495			14,681			15,414
Total segment operating income		46,878			45,409			93,203			87,384
Corporate operating expense		(1,601	)		(16,037	)		(11,209	)		(33,954	)
Total operating income	$	45,277		$	29,372		$	81,994		$	53,430

Certain operating expenses are excluded from the Company’s measure of segment operating income. These expenses include costs associated with its human resources, finance, information technology, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with its deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in its allowance for contract losses and doubtful accounts.

Capital Expenditures

	Three Months Ended				Six Months Ended
(In thousands)	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Engineering and Other Scientific	$	1,616	$	814	$	2,180	$	1,418
Environmental and Health		6		30		56		79
Total segment capital expenditures		1,622		844		2,236		1,497
Corporate capital expenditures		3,034		655		5,215		2,308
Total capital expenditures	$	4,656	$	1,499	$	7,451	$	3,805

Certain capital expenditures associated with the Company’s corporate cost centers and the related depreciation are excluded from the Company’s segment information.

Depreciation and Amortization

	Three Months Ended				Six Months Ended
(In thousands)	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Engineering and Other Scientific	$	1,154	$	976	$	2,193	$	1,986
Environmental and Health		41		47		83		93
Total segment depreciation and    amortization		1,195		1,023		2,276		2,079
Corporate depreciation and amortization		617		619		1,225		1,219
Total depreciation and amortization	$	1,812	$	1,642	$	3,501	$	3,298

One client comprised 15% and 14% of the Company’s revenues during the three months ended July 1, 2022 and July 2, 2021, respectively. The same client comprised 14% and 12% of the Company's revenue during the six months ended July 1, 2022 and July 2, 2021, respectively.