Segment Reporting

3 Months Ended

Apr. 02, 2021

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 months ended April 2, 2021 and April 3, 2020 follows:

Revenues

	Three Months Ended
(In thousands)	April 2, 2021		April 3, 2020
Engineering and Other Scientific	$	93,609	$	84,887
Environmental and Health		22,872		21,066
Total revenues	$	116,481	$	105,953

Operating Income

	Three Months Ended
(In thousands)	April 2, 2021			April 3, 2020
Engineering and Other Scientific	$	34,057		$	26,641
Environmental and Health		7,918			7,253
Total segment operating income		41,975			33,894
Corporate operating expense		(17,917	)		2,094
Total operating income	$	24,058		$	35,988

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
(In thousands)	April 2, 2021		April 3, 2020
Engineering and Other Scientific	$	604	$	566
Environmental and Health		49		62
Total segment capital expenditures		653		628
Corporate capital expenditures		1,653		411
Total capital expenditures	$	2,306	$	1,039

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 the three months ended April 2, 2021 was due to construction costs associated with the Company’s office and laboratory facilities in Natick, Massachusetts.

Depreciation and Amortization

	Three Months Ended
(In thousands)	April 2, 2021		April 3, 2020
Engineering and Other Scientific	$	1,010	$	1,137
Environmental and Health		46		47
Total segment depreciation and    amortization		1,056		1,184
Corporate depreciation and amortization		600		602
Total depreciation and amortization	$	1,656	$	1,786

One client comprised 10% of the Company’s revenues during the three months ended April 2, 2021. No other single client comprised more than 10% of the Company’s revenues during the three months ended April 2, 2021. No single client comprised more than 10% of the Company’s revenues at April 3, 2020.