Operations by Business Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Operations by Business Segment and Geographic Information

Operations by Business Segment and Geographic Information

We provide a wide range of arboricultural, horticultural, environmental and consulting services to residential, utility, commercial and government entities throughout the United States and Canada. We have two reportable operating segments organized by type or class of customer: Residential and Commercial, and Utility.

Residential and Commercial--Residential and Commercial provides services to our residential and commercial customers including: the treatment, preservation, maintenance, removal and planting of trees, shrubs and other plant life; the practice of landscaping, grounds maintenance, tree surgery, tree feeding and tree spraying; the application of fertilizer, herbicides and insecticides; and, natural resource management and consulting, forestry research and development, and environmental planning.

S. Operations by Business Segment and Geographic Information (continued)

Utility--Utility is principally engaged in providing services to our utility customers--investor-owned, municipal utilities, and rural electric cooperatives--including: the practice of line-clearing and vegetation management around power lines, rights-of-way and chemical brush control; and, natural resource management and consulting, forestry research and development and environmental planning.

All other operating activities, including research, technical support and laboratory diagnostic facilities, are included in “All Other.”

Measurement of Segment Profit and Loss and Segment Assets--We evaluate performance and allocate resources based primarily on operating income and also actively manage business unit operating assets. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies except that (a) we compute and recognize depreciation expense for our segments only by the straight-line method and (b) state income taxes are allocated to the segments. Corporate expenses are substantially allocated among the operating segments, but the nature of expenses allocated may differ from year-to-year. There are no intersegment revenues.

Segment assets are those generated or directly used by each segment, and include accounts receivable, operating supplies, and property and equipment.

S.    Operations by Business Segment and Geographic Information (continued)

Information on reportable segments and reconciliation to the consolidated financial statements follows: 

	Utility Services		Residential Commercial Services		All Other			Reconciling  Adjustments				Consolidated
Fiscal Year 2016
Revenues	$	433,379	$	410,878	$	1,421		$	—			$	845,678
Income (loss) from operations	19,256		36,640		(4,318		)	(6,207		)	(a)	45,371
Interest expense								(4,393		)		(4,393		)
Interest income								255				255
Other income (expense), net								(3,989		)		(3,989		)
Income before income taxes												$	37,244
Depreciation	$	26,855	$	17,198	$	—		$	3,231		(b)	$	47,284
Amortization	135		2,136		—			35				2,306
Capital expenditures	28,660		21,819		—			6,167				56,646
Segment assets, total	171,220		166,858		—			85,861			(c)	423,939
Fiscal Year 2015
Revenues	$	433,117	$	386,327	$	2,460		$	—			$	821,904
Income (loss) from operations	24,273		35,271		(5,368		)	(10,068		)	(a)	44,108
Interest expense								(3,355		)		(3,355		)
Interest income								249				249
Other income (expense), net								(5,744		)		(5,744		)
Income before income taxes												$	35,258
Depreciation	$	25,466	$	15,592	$	—		$	3,619		(b)	$	44,677
Amortization	144		2,062		—			8				2,214
Capital expenditures	26,853		22,853		—			6,341				56,047
Segment assets, total	145,306		162,679		—			85,601			(c)	393,586
Fiscal Year 2014
Revenues	$	404,519	$	386,274	$	(882	)	$	—			$	789,911
Income (loss) from operations	21,382		37,232		(6,037		)	(8,574		)	(a)	44,003
Interest expense								(2,948		)		(2,948		)
Interest income								295				295
Other income (expense), net								(3,050		)		(3,050		)
Income before income taxes												$	38,300
Depreciation	$	23,225	$	14,544	$	—		$	3,201		(b)	$	40,970
Amortization	174		1,896		—			—				2,070
Capital expenditures	25,994		17,490		—			12,247				55,731
Segment assets, total	150,002		144,413		—			86,589			(c)	381,004

S. Operations by Business Segment and Geographic Information (continued)

Reconciling adjustments from segment reporting to consolidated external financial reporting include unallocated corporate items:

(a) Reconciling adjustments from segment reporting to consolidated external financial reporting include reclassification of depreciation expense and allocation of corporate expenses.

(b) Adjustments to declining-balance method depreciation expense from straight-line method and depreciation and amortization of corporate assets.

(c) Corporate assets include cash, prepaid expenses, corporate facilities, enterprise-wide information systems and other nonoperating assets.

Geographic Information--The following presents revenues and long-lived assets by geographic territory:

	Year Ended December 31,
	2016		2015		2014
Revenues
United States	$	775,870	$	749,896	$	706,145
Canada	69,808		72,008		83,766
	$	845,678	$	821,904	$	789,911
	December 31,
	2016		2015		2014
Long-lived assets, net
United States	$	224,727	$	213,323	$	196,116
Canada	20,439		19,329		17,692
	$	245,166	$	232,652	$	213,808