Segment Reporting

6 Months Ended

Jun. 28, 2024

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 June 28, 2024 and June 30, 2023 follows:

Revenues

	Three Months Ended				Six Months Ended
(In thousands)	June 28, 2024		June 30, 2023		June 28, 2024		June 30, 2023
Engineering and Other Scientific	$	118,477	$	116,647	$	239,948	$	233,695
Environmental and Health		22,059		23,574		45,521		46,835
Total revenues	$	140,536	$	140,221	$	285,469	$	280,530

Operating Income

	Three Months Ended						Six Months Ended
(In thousands)	June 28, 2024			June 30, 2023			June 28, 2024			June 30, 2023
Engineering and Other Scientific	$	43,765		$	38,711		$	92,396		$	82,330
Environmental and Health		7,259			7,521			15,495			15,075
Total segment operating income		51,024			46,232			107,891			97,405
Corporate operating expense		(15,280	)		(16,357	)		(41,434	)		(38,410	)
Total operating income	$	35,744		$	29,875		$	66,457		$	58,995

Certain operating expenses are excluded from the Company’s measure of segment operating income. These expenses include costs associated with its human resources, legal, 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)	June 28, 2024		June 30, 2023		June 28, 2024		June 30, 2023
Engineering and Other Scientific	$	465	$	1,261	$	882	$	2,669
Environmental and Health		45		19		74		114
Total segment capital expenditures		510		1,280		956		2,783
Corporate capital expenditures		497		8,287		1,560		12,645
Total capital expenditures	$	1,007	$	9,567	$	2,516	$	15,428

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)	June 28, 2024		June 30, 2023		June 28, 2024		June 30, 2023
Engineering and Other Scientific	$	1,765	$	1,372	$	3,393	$	2,678
Environmental and Health		54		54		103		102
Total segment depreciation and    amortization		1,819		1,426		3,496		2,780
Corporate depreciation and amortization		667		760		1,314		1,394
Total depreciation and amortization	$	2,486	$	2,186	$	4,810	$	4,174

No single client comprised more than 10% of the Company’s revenues during the three and six months ended June 28, 2024 and June 30, 2023.