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Segment Reporting
12 Months Ended
Jan. 01, 2021
Segment Reporting [Abstract]  
Segment Reporting

Note 17: 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 area 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.

Segment information is presented for selected data from the statements of income and statements of cash flows for 2020, 2019 and 2018. Segment information for selected data from the balance sheets is presented for the fiscal years ended January 1, 2021 and January 3, 2020. The Company’s CEO, the chief operating decision maker, does not review total assets in her evaluation of segment performance and capital allocation.

Revenues

 

 

Fiscal Years

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Engineering and Other Scientific

 

$

319,346

 

 

$

339,796

 

 

$

306,265

 

Environmental and Health

 

 

80,554

 

 

 

77,403

 

 

 

73,258

 

Total revenues

 

$

399,900

 

 

$

417,199

 

 

$

379,523

 

 

Operating Income

 

 

Fiscal Years

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Engineering and Other Scientific

 

$

100,616

 

 

$

110,822

 

 

$

100,307

 

Environmental and Health

 

 

26,728

 

 

 

26,589

 

 

 

23,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment operating income

 

 

127,344

 

 

 

137,411

 

 

 

124,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate operating expense

 

 

(44,095

)

 

 

(52,300

)

 

 

(32,675

)

Total operating income

 

$

83,249

 

 

$

85,111

 

 

$

91,456

 

 

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

 

Capital Expenditures

 

 

Fiscal Years

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Engineering and Other Scientific

 

$

2,237

 

 

$

4,675

 

 

$

4,528

 

Environmental and Health

 

 

102

 

 

 

104

 

 

 

199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment capital expenditures

 

 

2,339

 

 

 

4,779

 

 

 

4,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate capital expenditures

 

 

2,768

 

 

 

17,511

 

 

 

12,654

 

Total capital expenditures

 

$

5,107

 

 

$

22,290

 

 

$

17,381

 

 

Certain capital expenditures associated with the Company's corporate cost centers and the related depreciation are excluded from the Company's segment information. The high level of corporate capital expenditures during 2018 and 2019 was due to the land purchase and construction costs associated with the Company’s office and laboratory facilities in Natick, Massachusetts.

 

Depreciation and Amortization

 

 

Fiscal Years

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

Engineering and Other Scientific

 

$

4,239

 

 

$

4,827

 

 

$

4,435

 

Environmental and Health

 

 

196

 

 

 

206

 

 

 

171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment depreciation and amortization

 

 

4,435

 

 

 

5,033

 

 

 

4,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate depreciation and amortization

 

 

2,436

 

 

 

1,773

 

 

 

1,686

 

Total depreciation and amortization

 

$

6,871

 

 

$

6,806

 

 

$

6,292

 

 

Information regarding the Company’s operations in different geographical areas:

Property, Equipment and Leasehold Improvements, net

 

 

 

Fiscal Years

 

(In thousands)

 

2020

 

 

2019

 

United States

 

$

58,900

 

 

$

60,074

 

Foreign Countries

 

 

923

 

 

 

1,513

 

Total

 

$

59,823

 

 

$

61,587

 

 

Revenues (1)

 

 

 

Fiscal Years

 

(In thousands)

 

2020

 

 

2019

 

 

2018

 

United States

 

$

353,565

 

 

$

351,856

 

 

$

334,422

 

Foreign Countries

 

 

46,335

 

 

 

65,343

 

 

 

45,101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

399,900

 

 

$

417,199

 

 

$

379,523

 

 

(1)

Geographic revenues are allocated based on the location of the client.

Below is a breakdown of goodwill, reported by segment as of January 1, 2021 and January 3, 2020:

 

(In thousands)

 

Environmental

and Health

 

 

Engineering

and Other

Scientific

 

 

Total

 

Goodwill

 

$

8,099

 

 

$

508

 

 

$

8,607

 

 

There were no changes in the carrying amount of goodwill for 2020, 2019 and 2018. There were no goodwill impairments or gains or losses on disposals for any portion of the Company’s reporting units during 2020, 2019 and 2018.