Segment Reporting

9 Months Ended

Sep. 27, 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 nine months ended September 27, 2024 and September 29, 2023 follows:

Revenues

	Three Months Ended				Nine Months Ended
(In thousands)	September 27, 2024		September 29, 2023		September 27, 2024		September 29, 2023
Engineering and Other Scientific	$	115,244	$	110,857	$	355,193	$	344,552
Environmental and Health		21,035		22,479		66,555		69,314
Total revenues	$	136,279	$	133,336	$	421,748	$	413,866

Operating Income

	Three Months Ended						Nine Months Ended
(In thousands)	September 27, 2024			September 29, 2023			September 27, 2024			September 29, 2023
Engineering and Other Scientific	$	40,292		$	38,734		$	132,687		$	121,064
Environmental and Health		7,547			7,475			23,042			22,550
Total segment operating income		47,839			46,209			155,729			143,614
Corporate operating expense		(21,992	)		(12,276	)		(63,425	)		(50,686	)
Total operating income	$	25,847		$	33,933		$	92,304		$	92,928

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				Nine Months Ended
(In thousands)	September 27, 2024		September 29, 2023		September 27, 2024		September 29, 2023
Engineering and Other Scientific	$	887	$	541	$	1,769	$	3,210
Environmental and Health		-		25		74		139
Total segment capital expenditures		887		566		1,843		3,349
Corporate capital expenditures		1,339		1,248		2,899		13,893
Total capital expenditures	$	2,226	$	1,814	$	4,742	$	17,242

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				Nine Months Ended
(In thousands)	September 27, 2024		September 29, 2023		September 27, 2024		September 29, 2023
Engineering and Other Scientific	$	1,735	$	1,750	$	5,128	$	4,428
Environmental and Health		50		53		154		155
Total segment depreciation and    amortization		1,785		1,803		5,282		4,583
Corporate depreciation and amortization		604		558		1,917		1,952
Total depreciation and amortization	$	2,389	$	2,361	$	7,199	$	6,535

No single client comprised more than 10% of the Company’s revenues during the three and nine months ended September 27, 2024. No single client comprised more than 10% of the Company’s revenues during the three and nine months ended September 29, 2023.