10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

Amendment No. 1

xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2016

OR

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission file number 000-11917

THE DAVEY TREE EXPERT COMPANY

(Exact name of registrant as specified in its charter)

Ohio	34-0176110
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

1500 North Mantua Street

P.O. Box 5193

Kent, Ohio 44240

(Address of principal executive offices) (Zip code)

(330) 673-9511

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

Common Shares, $1.00 par value

Indicate by check mark if the registrant is a well-known seasoned issuer (as defined in Rule 405 of the Securities Act).  Yes ¨ No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.  Yes ¨ No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ¨ No x
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
(Check one):	¨	Large Accelerated Filer	x	Accelerated Filer	¨	Emerging Growth Company
	¨	Non-Accelerated Filer (Do not check if a smaller reporting company)	¨	Smaller Reporting Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes ¨ No x

There were 24,930,758 Common Shares outstanding as of March 10, 2017. The aggregate market value of the Common Shares held by nonaffiliates of the registrant as of July 2, 2016 was $358,707,925. For purposes of this calculation, it is assumed that the registrant's affiliates include the registrant's Board of Directors and its executive officers.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive Proxy Statement for the 2017 Annual Meeting of Shareholders are incorporated by reference into Part III (filed within 120 calendar days of the registrant’s fiscal year end).

EXPLANATORY NOTE

Amendment No. 1 on Form 10-K/A (this “Amendment No. 1”) amends and restates certain items noted below in the Annual Report on Form 10- K of The Davey Tree Expert Company (the “Company”) for the fiscal year ended December 31, 2016, as originally filed with the Securities and Exchange Commission on March 14, 2017 (the “Original Filing”).

Amendment No. 1 amends the Original Filing to reflect the correction of an error in the previously reported 2014 through 2016 financial statements related to the Company’s reclassification of shares of the Company’s common stock held by the Davey 401KSOP and ESOP Plan as well as common stock distributed from the Davey 401KSOP and ESOP plan, which remains subject to redemption from permanent equity to temporary equity in the mezzanine section of the Company’s consolidated balance sheet. The amendment also gives retroactive effect of the two-for-one stock split effective June 1, 2017.

For ease of reference, revisions to the Original Filing have been made to the following sections:

• Note Regarding Forward-Looking Statements

• Part I, Item 1A - Risk Factors

• Executive Officers of the Company

• Part II, Item 5 - Market for Company's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

• Part II, Item 6 - Selected Financial Data

• Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

• Part II, Item 8 - Financial Statements and Supplementary Data

• Part II, Item 9A - Controls and Procedures

• Part IV, Item 15 - Exhibits and Financial Statement Schedules

• Signatures

In addition, the Company’s Chief Executive Officer and Chief Financial Officer have provided new certifications dated as of the date of this filing in connection with this Amendment No. 1 (Exhibits 31.1, 31.2, 32.1 and 32.2), and the Company has provided its revised audited consolidated financial statements formatted in Extensible Business Reporting Language (XBRL) in Exhibit 101.

Except as described above, no other changes have been made to the Original Filing. This Amendment No. 1 speaks as of the date of the Original Filing and does not reflect events that may have occurred after the date of the Original Filing, or modify or update any disclosures that may have been affected by subsequent events.

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NOTE REGARDING FORWARD-LOOKING STATEMENTS

This annual report on Form 10-K/A contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) in "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations," "Item 7A - Quantitative and Qualitative Disclosures About Market Risk," and elsewhere. These statements relate to future events or our future financial performance. In some cases, forward-looking statements may be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to differ materially from what is expressed or implied in these forward-looking statements. Some important factors that could cause actual results to differ materially from those in the forward-looking statements include:

▪ Our business, other than tree services to utility customers, is highly seasonal and weather dependent.

▪ Various economic factors may adversely impact our customers’ spending and pricing for our services, and impede our collection of accounts receivable.

▪ Significant customers, particularly utilities, may experience financial difficulties, resulting in payment delays or delinquencies.

▪ The seasonal nature of our business and changes in general and local economic conditions, among other factors, may cause our quarterly results to fluctuate, and our prior performance is not necessarily indicative of future results.

▪ The uncertainties in the credit and financial markets may limit our access to capital.

▪ Significant increases in fuel prices for extended periods of time will increase our operating expenses.

▪ Fluctuations in foreign currency exchange rates may have a material adverse impact on our operating results.

▪ We have significant contracts with our utility, commercial and government customers that include liability risk exposure as part of those contracts. Consequently, we have substantial excess-umbrella liability insurance, and increases in the cost of obtaining adequate insurance, or the inadequacy of our self-insurance accruals or insurance coverages, could negatively impact our liquidity and financial condition.

▪ Because no public market exists for our common shares, the ability of shareholders to sell their common shares is limited.

▪ Significant increases in health care costs could negatively impact our results of operations or financial position.

▪ We are subject to intense competition.

▪ Our failure to comply with environmental laws could result in significant liabilities, fines and/or penalties.

▪ The impact of regulations initiated as a response to possible changing climate conditions could have a negative effect on our results of operations or our financial condition.

▪ We may encounter difficulties obtaining surety bonds or letters of credit necessary to support our operations.

▪ We are dependent, in part, on our reputation of quality, integrity and performance. If our reputation is damaged, we may be adversely affected.

▪ We may be unable to attract and retain a sufficient number of qualified employees for our field operations, and we may be unable to attract and retain qualified management personnel.

▪ Our facilities could be damaged or our operations could be disrupted, or our customers or vendors may be adversely affected, by events such as natural disasters, pandemics, terrorist attacks or other external events.

▪ A disruption in our information technology systems, including a disruption related to cybersecurity, could adversely affect our financial performance.

▪ We may be subject to third-party and governmental regulatory claims and litigation that may have an adverse effect on us.

▪ We may misjudge a competitive bid and be contractually bound to an unprofitable contract.

▪ We may encounter difficulties maintaining effective disclosure controls and procedures.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this annual report on Form 10-K/A to conform these statements to actual future results.

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THE DAVEY TREE EXPERT COMPANY FORM 10-K/A For the Year Ended December 31, 2016 TABLE OF CONTENTS
	Page
Explanatory Note	2
Note Regarding Forward-Looking Statements	3
PART I
Item 1.     Business	5
Item 1A.  Risk Factors	7
Item 1B.  Unresolved SEC Staff Comments	11
Item 2.     Properties	11
Item 3.     Legal Proceedings	12
Item 4.     Mine Safety Disclosures	12
Executive Officers of the Company	13
PART II
Item 5.     Market for Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	15
Item 6.     Selected Financial Data	18
Item 7.     Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 7A.  Quantitative and Qualitative Disclosures About Market Risk	32
Item 8.     Financial Statements and Supplementary Data	32
Item 9.     Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	32
Item 9A.  Controls and Procedures	32
Item 9B.  Other Information	36
PART III
Item 10.  Directors, Executive Officers and Corporate Governance	37
Item 11.  Executive Compensation	37
Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	37
Item 13.  Certain Relationships and Related Transactions, and Director Independence	37
Item 14.  Principal Accountant Fees and Services	37
PART IV
Item 15.  Exhibits and Financial Statement Schedules	38
Item 16. Form 10-K Summary	38
Exhibit Index	39
Signatures	42

“We,” “Us,” “Our,” “Davey” and “Davey Tree,” unless the context otherwise requires, means The Davey Tree Expert Company and its subsidiaries.

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PART I

Item 1.  Business.

General

The Davey Tree Expert Company, which was founded in 1880 and incorporated in Ohio in 1909, and its subsidiaries ("we" or "us") provides a wide range of arboricultural, horticultural, environmental and consulting services to our customers throughout the United States and Canada. We have two reportable operating segments organized by type or class of customer: Residential and Commercial, and Utility.

Our Residential and Commercial segment 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.

Our Utility segment 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.

We also maintain research, technical support and laboratory diagnostic facilities.

Competition and Customers

Our Residential and Commercial segment is one of the largest national tree care organizations in the United States, and competes with other national and local firms with respect to its services. On a national level, our competition is primarily landscape construction and maintenance companies as well as residential and commercial lawn care companies. At a local and regional level, our competition comes mainly from small, local companies which are engaged primarily in tree care and lawn services. Our Utility segment is the second largest organization in the industry in the United States, and competes principally with one major national competitor, The Asplundh Tree Expert Co., as well as several smaller regional firms.

Principal methods of competition in both operating segments are customer service, marketing, image, performance and reputation. Our program to meet our competition stresses the necessity for our employees to have and project to customers a thorough knowledge of all horticultural services provided, and utilization of modern, well-maintained equipment. Pricing is not always a critical factor in a customer's decision with respect to our Residential and Commercial segment; however, pricing is generally the principal method of competition for our Utility segment, although in most instances consideration is given to reputation and past production performance.

We provide a wide range of horticultural services to private companies, public utilities, local, state and federal agencies, and a variety of industrial, commercial and residential customers. During 2016, we had revenues of approximately $100 million, or approximately 12% of total revenues, from Pacific Gas & Electric Company ("PG&E"), one of our largest customers.

Regulation and Environment

Our facilities and operations, in common with those of the industry generally, are subject to governmental regulations designed to protect the environment. This is particularly important with respect to our services regarding insect and disease control, because these services involve, to a considerable degree, the blending and application of spray materials, which require formal licensing in most areas. Constant changes in environmental conditions, environmental awareness, technology and social attitudes make it necessary for us to maintain a high degree of awareness of the impact such changes have on the market for our services. We believe that we comply in all material respects with existing federal, state and local laws regulating the use of materials in our spraying operations as well as the other aspects of our business that are subject to any such regulation.

Marketing

We solicit business from residential customers principally through referrals, direct mail programs and to a lesser extent through the placement of advertisements in national magazines and trade journals, local newspapers and "yellow pages" telephone directories. We also employ online marketing and lead generation strategies, including email marketing campaigns, search engine optimization, search engine marketing, and social media communication. Business from utility and commercial

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customers is obtained principally through negotiated contracts and competitive bidding. We carry out all of our sales and services through our employees. We generally do not use agents, and do not franchise our name or business.

Seasonality

Our business is seasonal, primarily due to fluctuations in horticultural services provided to Residential and Commercial customers and to a lesser extent by budget constraints imposed on our Utility customers. Because of this seasonality, we have historically incurred losses in the first quarter, while sales and earnings are generally highest in the second and third quarters of the calendar year. Consequently, this has created heavy demands for additional working capital at various times throughout the year. We borrow primarily against bank commitments in the form of a revolving credit facility to provide the necessary funds for our operations. You can find more information about our bank commitments in “Liquidity and Capital Resources” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 24-27 of this report.

Other Factors

Due to rapid changes in equipment technology and intensity of use, we must constantly update our equipment and processes to ensure that we provide competitive services to our customers and continue our compliance with the Occupational Safety and Health Act.

We own several trademarks including "Davey," "Davey and Design," "Arbor Green Pro," "Arbor Green," and "Davey Resource Group." Through substantial advertising and use, we believe that these trademarks have become of value in the identification and acceptance of our products and services.

Employees

We employed approximately 8,000 employees at December 31, 2016. However, employment levels fluctuate due to seasonal factors affecting our business. We consider our employee relations to be good.

Domestic and Foreign Operations

We sell our services to customers in the United States and Canada.

We do not consider the risks attendant to our business with foreign customers, other than currency exchange risks, to be materially different from those attendant to our business with domestic customers.

Financial Information About Segments and Geographic Areas

Certain financial information regarding our operations by segment and geographic area is contained in Note S to our consolidated financial statements, which are included in Part II, Item 8 of this report.

Access to Company Information

Davey Tree’s internet address is http://www.davey.com. Through our internet website, by hyperlink to the Securities and Exchange Commission (“SEC”) website (http://www.sec.gov), we make available, free of charge, our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports. Availability of the reports occurs contemporaneously with the electronic posting to the SEC’s website as the reports are electronically filed with or furnished to the SEC. The information on our website is not a part of this Annual Report on Form 10-K.

The following documents are also made available on our website and a copy will be mailed, without charge, upon request to our Corporate Secretary:

▪ Code of Ethics

▪ Code of Ethics for Financial Matters

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Item 1A.  Risk Factors.

The factors described below represent the principal risks we face. Except as otherwise indicated, these factors may or may not occur and we are not in a position to express a view on the likelihood of any such factor occurring. Other factors may exist that we do not consider to be significant based on information that is currently available or that we are not currently able to anticipate.

Our business is highly seasonal and weather dependent.

Our business, other than tree services to utility customers, is highly seasonal and weather dependent, primarily due to fluctuations in horticultural services provided to Residential and Commercial customers. We have historically incurred losses in the first quarter, while revenue and operating income are generally highest in the second and third quarters of the calendar year. Inclement weather, such as uncharacteristically low or high (drought) temperatures, in the second and third quarters could dampen the demand for our horticultural services, resulting in reduced revenues that would have an adverse effect on our results of operations.

Economic conditions may adversely impact our customers’ future spending as well as pricing and payment for our services, thus negatively impacting our operations and growth.

Economic conditions may adversely impact the demand for our services and potentially result in depressed prices for our services and the delay or cancellation of projects. That may make it difficult to estimate our customers' requirements for our services and, therefore, add uncertainty to customer demand. Various economic factors and customers' confidence in future economic conditions may cause a reduction in our customers' spending for our services and may also impact the ability of our customers to pay amounts owed, which could reduce our cash flow and adversely impact our debt or equity financing. These events could have a material adverse effect on our operations and our ability to grow at historical levels.

Financial difficulties or the bankruptcy of one or more of our major customers could adversely affect our results.

Our ability to collect our accounts receivable and future sales depends, in part, on the financial strength of our customers. We grant credit, generally without collateral, to our customers. Consequently, we are subject to credit risk related to changes in business and economic factors throughout the United States and Canada. In the event customers experience financial difficulty, and particularly if bankruptcy results, our profitability may be adversely impacted by our failure to collect our accounts receivable in excess of our estimated allowance for uncollectible accounts. Additionally, our future revenues could be reduced by the loss of a customer due to bankruptcy. Our failure to collect accounts receivable and/or the loss of one or more major customers could have an adverse effect on our net income and financial condition.

Our business is dependent upon service to our utility customers and we may be affected by developments in the utility industry.

We derive approximately 51% of our total revenues from our Utility segment. Significant adverse developments in the utility industry generally, or specifically for our major utility customers, could result in pressure to reduce costs by utility industry service providers (such as us), delays in payments of our accounts receivable, or increases in uncollectible accounts receivable, among other things. As a result, such developments could have an adverse effect on our results of operations.

Our quarterly results may fluctuate.

We have experienced and expect to continue to experience quarterly variations in revenues and operating income as a result of many factors, including:

▪ the seasonality of our business;

▪ the timing and volume of customers' projects;

▪ budgetary spending patterns of customers;

▪ the commencement or termination of service agreements;

▪ costs incurred to support growth internally or through acquisitions;

▪ changes in our mix of customers, contracts and business activities;

▪ fluctuations in insurance expense due to changes in claims experience and actuarial assumptions; and

▪ general and local economic conditions.

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Accordingly, our operating results in any particular quarter may not be indicative of the results that you can expect for any other quarter or for the entire year.

We may not have access to capital in the future due to uncertainties in the financial and credit markets.

We may need new or additional financing in the future to conduct our operations, expand our business or refinance existing indebtedness. Future changes in the general economic conditions and/or financial markets in the United States or globally could affect adversely our ability to raise capital on favorable terms or at all. From time-to-time we have relied, and may also rely in the future, on access to financial markets as a source of liquidity for working capital requirements, acquisitions and general corporate purposes. Our access to funds under our revolving credit facility is dependent on the ability of the financial institutions that are parties to the facility to meet their funding commitments. Those financial institutions may not be able to meet their funding commitments if they experience shortages of capital and liquidity or if they experience excessive volumes of borrowing requests within a short period of time. Economic disruptions and any resulting limitations on future funding, including any restrictions on access to funds under our revolving credit facility, could have a material adverse effect on us.

We are subject to the risk of changes in fuel costs.

The cost of fuel is a major operating expense of our business. Significant increases in fuel prices for extended periods of time will cause our operating expenses to fluctuate. An increase in cost with partial or no corresponding compensation from customers would lead to lower margins that would have an adverse effect on our results of operations.

We are subject to the effect of foreign currency exchange rate fluctuations, which may have a material adverse impact on us.

We are exposed to foreign currency exchange rate risk resulting from our operations in Canada, where we provide a comprehensive range of horticultural services. Fluctuations in foreign currency exchange rates may make our services more expensive for others to purchase or increase our operating costs, affecting our competitiveness and our profitability. Our financial results could be affected by factors such as changes in the foreign currency exchange rate or differing economic conditions in the Canadian markets as compared with the markets for our services in the United States. Our earnings are affected by translation exposures from currency fluctuations in the value of the U.S. dollar as compared to the Canadian dollar.

Revenues from customers in Canada are subject to foreign currency exchange. Thus, certain revenues and expenses have been, and are expected to be, subject to the effect of foreign currency fluctuations, and these fluctuations may have a material adverse impact on our operating results, asset values and could reduce shareholders’ equity. In addition, if we expand our Canadian operations, exposures to gains and losses on foreign currency transactions may increase.

We could be negatively impacted if our self-insurance accruals or our insurance coverages prove to be inadequate.

We are generally self-insured for losses and liabilities related to workers' compensation, vehicle liability and general liability claims (including any wildfire-related claims, up to certain retained coverage limits). A liability for unpaid claims and associated expenses, including incurred but not reported losses, is actuarially determined and reflected in our consolidated balance sheet as an accrued liability. The determination of such claims and expenses, and the extent of the need for accrued liabilities, are continually reviewed and updated. If we were to experience insurance claims or costs above our estimates and were unable to offset such increases with earnings, our business could be adversely affected. Also, where we self-insure, a deterioration in claims management, whether by our management or by a third-party claims administrator, could lead to delays in settling claims, thereby increasing claim costs, particularly as it relates to workers’ compensation. In addition, catastrophic uninsured claims filed against us or the inability of our insurance carriers to pay otherwise-insured claims would have an adverse effect on our financial condition.

Furthermore, many customers, particularly utilities, prefer to do business with contractors with significant financial resources, who can provide substantial insurance coverage. Should we be unable to renew our excess liability insurance and other commercial insurance policies at competitive rates, this loss would have an adverse effect on our financial condition and results of operations.

Increases in our health insurance costs and uncertainty about federal health care policies could adversely affect our results of operations and cash flows.

The costs of employee health care insurance have been increasing in recent years due to rising health care costs, legislative changes, and general economic conditions. We cannot predict what other health care programs and regulations will ultimately

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be implemented at the federal or state level or the effect of any future legislation or regulations on our business, results of operations and cash flows. In addition, we cannot predict when and if Congress will repeal and/or replace certain health care programs and regulations at the federal level and the impact that such changes would have on our business. A continued increase in health care costs or additional costs incurred as a result of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 or other future health care reform laws imposed by Congress or state legislatures could have a negative impact on our financial position, results of operations and cash flows.

The unavailability or cancellation of third-party insurance coverage may have a material adverse effect on our financial condition and results of operations as well as disrupt our operations.

Any of our existing excess insurance coverage may not be renewed upon the expiration of the coverage period or future coverage may not be available at competitive rates for the required limits. In addition, our third-party insurers could fail, suddenly cancel our coverage or otherwise be unable to provide us with adequate insurance coverage. If any of these events occur, they may have a material adverse effect on our financial condition and results of operations as well as disrupt our operations. For example, we have operations in California, which has an environment prone to wildfires. Should our third-party insurers determine to exclude coverage for wildfires in the future, we could be exposed to significant liabilities, having a material adverse effect on our financial condition and results of operations and potentially disrupting our California operations.

Because no public market exists for our common shares, your ability to sell your common shares may be limited.

Our common shares are not traded on any national exchange, market system or over-the-counter bulletin board. Because no public market exists for our common shares, your ability to sell these shares is limited.

We are subject to intense competition.

We believe that each aspect of our business is highly competitive. Principal methods of competition in our operating segments are customer service, marketing, image, performance and reputation. Pricing is not always a critical factor in a customer’s decision with respect to our Residential and Commercial segment; however, pricing is generally the principal method of competition for our Utility segment, although in most instances consideration is given to reputation and past production performance. On a national level, our competition is primarily landscape construction and maintenance companies as well as residential and commercial lawn care companies. At a local and regional level, our competition comes mainly from small, local companies which are engaged primarily in tree care and lawn services. Our Utility segment competes principally with one major national competitor, as well as several smaller regional firms. Furthermore, competitors may have lower costs because privately-owned companies operating in a limited geographic area may have significantly lower labor and overhead costs. Our competitors may develop the expertise, experience and resources to provide services that are superior in both price and quality to our services. These strong competitive pressures could inhibit our success in bidding for profitable business and may have a material adverse effect on our business, financial condition and results of operations.

Our failure to comply with environmental laws could result in significant liabilities.

Our facilities and operations are subject to governmental regulations designed to protect the environment, particularly with respect to our services regarding insect and tree, shrub and lawn disease management, because these services involve to a considerable degree the blending and application of spray materials, which require formal licensing in most areas. Continual changes in environmental laws, regulations and licensing requirements, environmental conditions, environmental awareness, technology and social attitudes make it necessary for us to maintain a high degree of awareness of the impact such changes have on our compliance programs and the market for our services. We are subject to existing federal, state and local laws, regulations and licensing requirements regulating the use of materials in our spraying operations as well as certain other aspects of our business. If we fail to comply with such laws, regulations or licensing requirements, we may become subject to significant liabilities, fines and/or penalties, which could adversely affect our financial condition and results of operations.

We cannot predict the impact that policies regarding changing climate conditions, including legal, regulatory and social responses thereto, may have on our business.

Many scientists, environmentalists, international organizations, political activists, regulators and other commentators believe that global climate change has added, and will continue to add, to the unpredictability, frequency and severity of natural disasters in certain parts of the world. In response, a number of legal and regulatory measures and social initiatives have been introduced in an effort to reduce greenhouse gas and other carbon emissions that these parties believe may be contributors to global climate change. These proposals, if enacted, could result in a variety of regulatory programs, including potential new

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regulations, additional charges and taxes to fund energy efficiency activities, or other regulatory actions. Any of these actions could result in increased costs associated with our operations and impact the prices we charge our customers.

We cannot predict the impact, if any, that changing climate conditions will have on us or our customers. However, it is possible that the legal, regulatory and social responses to real or imagined climate change could have a negative effect on our results of operations or our financial condition.

We may be adversely affected if we are unable to obtain necessary surety bonds or letters of credit.

Surety market conditions are currently difficult as a result of significant losses incurred by many sureties in recent years, both in the construction industry as well as in certain larger corporate bankruptcies. As a result, less bonding capacity is available in the market and terms have become more expensive and restrictive. Further, under standard terms in the surety market, sureties issue or continue bonds on a project-by-project basis and can decline to issue bonds at any time or require the posting of collateral as a condition to issuing or renewing any bonds. If surety providers were to limit or eliminate our access to bonding, we would need to post other forms of collateral for project performance, such as letters of credit or cash. We may be unable to secure sufficient letters of credit on acceptable terms, or at all. Accordingly, if we were to experience an interruption or reduction in the availability of bonding capacity, our liquidity may be adversely affected.

We may be adversely affected if our reputation is damaged.

We are dependent, in part, upon our reputation of quality, integrity and performance. If our reputation were damaged in some way, it may impact our ability to grow or maintain our business.

We may be unable to employ a sufficient workforce for our field operations.

Our industry operates in an environment that requires heavy manual labor. We may experience slower growth in the labor force for this type of work than in the past. As a result, we may experience labor shortages or the need to pay more to attract and retain qualified employees.

We may be unable to attract and retain skilled management.

Our success depends, in part, on our ability to attract and retain key managers. Competition for the best people can be intense and we may not be able to promote, hire or retain skilled managers. The loss of services of one or more of our key managers could have a material adverse impact on our business because of the loss of the manager's skills, knowledge of our industry and years of industry experience, and the difficulty of promptly finding qualified replacement personnel.

Natural disasters, pandemics, terrorist attacks and other external events could adversely affect our business.

Natural disasters, pandemics, terrorist attacks and other adverse external events could materially damage our facilities or disrupt our operations, or damage the facilities or disrupt the operations of our customers or vendors. The occurrence of any such event could adversely affect our business, financial condition and results of operations.

A disruption in our information technology systems, including a disruption related to cybersecurity, could adversely affect our financial performance.

We rely on the accuracy, capacity and security of our information technology systems. Despite the security measures that we have implemented, including those measures related to cybersecurity, our systems could be breached or damaged by computer viruses, natural or man-made incidents or disasters or unauthorized physical or electronic access. A breach could result in business disruption, theft of our intellectual property, trade secrets or customer information and unauthorized access to personnel information. To the extent that our business is interrupted or data is lost, destroyed or inappropriately used or disclosed, such disruptions could adversely affect our competitive position, reputation, relationships with our customers, financial condition, operating results and cash flows. In addition, we may be required to incur significant costs to protect against the damage caused by these disruptions or security breaches in the future.

We may be subject to third-party and governmental regulatory claims and litigation.

From time-to-time, customers, vendors, employees, governmental regulatory authorities and others may make claims and take legal action against us. Whether these claims and legal actions are founded or unfounded, if such claims and legal actions are not resolved in our favor, they may result in significant financial liability. Any such financial liability could have a

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material adverse effect on our financial condition and results of operations. Any such claims and legal actions may also require significant management attention and may detract from management's focus on our operations.

We may be adversely affected if we enter into a major unprofitable contract.

Our Residential and Commercial segment and our Utility segment frequently operate in a competitive bid contract environment. As a result, we may misjudge a bid and be contractually bound to an unprofitable contract, which could adversely affect our results of operations.

We have identified a material weakness in our internal control over financial reporting that resulted in the restatement of certain of our financial statements.

We are restating our consolidated financial statements for the fiscal year ended December 31, 2016 and for the first and second quarterly periods of 2017 to correct an accounting error in the method historically used by the Company to classify shares of the Company’s common stock held by The Davey 401KSOP and ESOP Plan on the Company’s consolidated balance sheet. For a discussion of this error and the related adjustment, see Note C to the Consolidated Financial Statements of the Company included in this report. In connection with this restatement, we have identified a material weakness in our internal controls over financial reporting. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. As a result of the material weakness, management has concluded that we did not maintain effective internal control over financial reporting or effective disclosure controls and procedures as of December 31, 2016.

As further described in Part II, Item 9A “Controls and Procedures,” we have undertaken steps to remediate our internal control over financial reporting. If we are unable to successfully remediate our existing or any future material weaknesses in our internal control over financial reporting, the accuracy and timing of our financial reporting may be adversely affected, our liquidity, access to capital and perceptions of our creditworthiness may be adversely affected, we may be unable to maintain compliance with securities law and debt instruments regarding the timely filing of periodic reports, we may be subject to regulatory investigations and penalties, we may suffer defaults under our debt instruments, and the valuation of our shares may be impacted.

As a result of the restatement and the remediation of our ineffective disclosure controls and procedures and material weakness in our internal control over financial reporting, we have become subject to additional costs and risks, including costs for accounting and legal fees. In addition, the attention of our management team has been diverted by these efforts. We could also be subject to regulatory, shareholder or other actions in connection with the restatement, which would, regardless of the outcome, consume management’s time and attention and may result in additional legal, accounting and other costs. In addition, the restatement and related matters could impair our reputation and could cause our customers, lenders, employees, shareholders, insurers, vendors, and other counterparties to lose confidence in us. Each of these occurrences could have an adverse effect on our business, results of operations, and financial condition.

Item 1B.  Unresolved SEC Staff Comments.

There are no unresolved comments from the Staff of the Securities and Exchange Commission.

Item 2.  Properties.

Our corporate headquarters campus is located in Kent, Ohio which, along with several other properties in the surrounding area, includes The Davey Institute's research, technical support and laboratory diagnostic facilities.

We conduct administrative functions through our headquarters and our offices in Livermore, California (Utility Services). Our Canadian operations’ administrative functions are conducted through properties located in the provinces of Ontario and

Page 11

British Columbia. We believe our properties are well maintained, in good condition and suitable for our present operations. A summary of our properties follows:

Segment	Number of Properties	How Held	Square Footage	Number of States or Provinces
Residential and Commercial	29	Owned	262,931	15
Utility	3	Owned	36,037	3
Residential and Commercial, and Utility	3	Owned	30,080	3

We also rent approximately 146 properties in 31 states and three provinces.

None of our owned or rented properties used by our business segments is individually material to our operations.

Item 3.  Legal Proceedings.

Not applicable.

Item 4.  Mine Safety Disclosures.

Not applicable.

Page 12

Executive Officers of the Company.

Our executive officers and their present positions and ages as of November 1, 2017 follow:

Name	Position	Age
Patrick M. Covey	President and Chief Executive Officer	53
Joseph R. Paul, CPA	Executive Vice President, Chief Financial Officer and Secretary	55
Lawrence S. Abernathy	Vice President and General Manager, Davey Tree Surgery Company	67
Christopher J. Bast, CPA, CTP	Vice President and Treasurer	49
Marjorie L. Conner, Esquire	Vice President, Assistant Secretary and Counsel	60
James E. Doyle	Executive Vice President and General Manager, Davey Tree Expert Co. of Canada, Limited	49
Gregory M. Ina	Executive Vice President, The Davey Institute and Employee Development	46
Dan A. Joy	Executive Vice President and General Manager, Commercial Landscape Services and Operations Support Services	60
Brent R. Repenning	Executive Vice President, U.S. Utility and Davey Resource Group	46
Thea R. Sears, CPA	Vice President and Controller	49
James F. Stief	Executive Vice President, U.S. Residential Operations	63
Mark J. Vaughn	Vice President and General Manager, U.S. Northern Utility Operations	63

Mr. Covey was appointed as Chief Executive Officer on March 24, 2017 and has served as President and Chief Operating Officer since March 4, 2016 and as a Director since May 20, 2014. He previously served as President and Chief Operating Officer, U.S. Operations, having been appointed in April 2014, and as Chief Operating Officer, U.S. Operations, having been appointed in February 2012. Prior to that time, Mr. Covey served as Executive Vice President, having been appointed in January 2007, Vice President and General Manager of the Davey Resource Group, having been appointed in March 2005, and Vice President, Southern Operations, Utility Services, having been appointed in January 2003. Previously, having joined Davey Tree in August 1991, Mr. Covey held various managerial positions, including Manager of Systems and Process Management and Administrative Manager, Utility Services.

Mr. Paul was elected Executive Vice President, Chief Financial Officer and Secretary effective March 4, 2016 and served as Chief Financial Officer and Secretary, having been appointed in March 2013. Prior to that time, he served as Vice President and Treasurer, having been appointed in May 2011. Mr. Paul joined Davey Tree as Treasurer in December 2005. He is a certified public accountant. Prior to joining us, Mr. Paul served as corporate controller for AccessPoint Openings, LLC, a holding company of distribution and manufacturing companies in the building products industry, having been associated with that firm since 1998. Mr. Paul served in various capacities, including as director of business expansion and integration, at Applied Industrial Technologies, an industrial distributor, from 1993 to 1998. Prior to joining Applied Industrial Technologies, Mr. Paul was an audit manager with Deloitte LLP, having been associated with that firm since 1986.

Mr. Abernathy was elected Vice President and General Manager, Davey Tree Surgery Company, effective April 2, 2012, and served as Senior Vice President, Davey Tree Surgery Company, having been appointed in July 2010. Prior to that time, he served as Vice President, Utility Operations, having been appointed in April 1995. Previously, having joined Davey Tree in 1969, Mr. Abernathy held various managerial positions, including Operations Manager, Area Manager and Account Manager.

Mr. Bast was elected as Vice President in September 2017 and as Treasurer in April 2013, having joined Davey Tree in March 2013. He is a certified public accountant and a certified treasury professional. Prior to joining us, Mr. Bast served in various

Page 13

management positions from 1994 to 2013 at Diebold, Incorporated, a provider of self-service delivery and security systems, including senior director of North America Finance, a director of investor relations and director of treasury. Prior to joining Diebold, Mr. Bast was an auditor with Deloitte LLP, having been associated with that firm since 1991.

Ms. Conner was elected as Vice President in September 2017 and as Assistant Secretary and Counsel in May 1998. Prior to that time, she served as Manager of Legal and Treasury Services.

Mr. Doyle was elected Executive Vice President and General Manager, Davey Tree Expert Co. of Canada, Limited (“Davey Tree Limited”), effective May 21, 2014 and served as Vice President and General Manager, Davey Tree Limited, having been appointed in February 2012. Prior to that time, he served as Vice President and General Manager, Operations, Davey Tree Limited, having been appointed in May 2011and Vice President, Operations, Davey Tree Limited, having been appointed in January 2006. Previously, having joined Davey Tree in 1989, Mr. Doyle held various managerial positions, including District Manager and Operations Manager.

Mr. Ina was elected as Executive Vice President, The Davey Institute and Employee Development in July 2017, having previously served as Vice President and General Manager of Research, Recruiting and Human Resource Development since April 4, 2016 and having previously been elected an officer effective March 4, 2016. Prior to this time, he served as Vice President and General Manager of the Davey Institute, having been appointed in May 2009, and General Manager of the Davey Institute, having been appointed in May 2006. Previously, having joined Davey Tree in 1996, Mr. Ina held various managerial and operational positions in the Davey Institute and Davey Resource Group.

Mr. Joy was elected Executive Vice President and General Manager, Commercial Landscape Services and Operations Support Services, effective August 15, 2014 and served as Executive Vice President and General Manager, Commercial Landscape Services, having been appointed May 21, 2014. Prior to that time, he served as Vice President and General Manager, Commercial Landscape Services, having been appointed in May 2013, and Vice President, Commercial Landscape Services, having been appointed in December 2004. Previously, having joined Davey Tree in 1976, Mr. Joy held various managerial positions, including Operations Manager, District Manager and Assistant District Manager.

Mr. Repenning was elected as Executive Vice President of U.S. Utility and Davey Resource Group in July 2017, having previously served as Senior Vice President of Davey Resource Group and Eastern Utility, since October 2016 and as Vice President and General Manager, Davey Resource Group, since June 2010. Prior to that time, he served as Vice President, Davey Resource Group, having been appointed in October 2009. Previously, having joined Davey Tree in 1994, Mr. Repenning held various managerial and operational positions, including Regional Manager, Production Manager and Supervisor.

Ms. Sears was appointed as Vice President in September 2017 and as Controller effective September 16, 2016 and prior to that, served as Assistant Controller, having been appointed in May 2010. Prior to that time, she served as Manager of Financial Accounting, having been appointed in April 1998, and as Supervisor of Financial Accounting, having been appointed in September 1995.  During her tenure with Davey Tree, Ms. Sears’ responsibilities have included a variety of roles in financial reporting, managerial reporting and operations accounting.  She is a certified public accountant.

Mr. Stief was elected Executive Vice President, U.S. Residential Operations, effective February 12, 2012 and previously served as Vice President and General Manager, Residential/Commercial Services, since January 2010. Prior to that time, Mr. Stief served as Vice President and General Manager, South, West and Central Residential/Commercial Operations, having been appointed in January 2007, and Vice President South, West and Central Residential/Commercial Operations, having been appointed in January 1997. Previously, having joined Davey Tree in 1978, Mr. Stief held various managerial positions, including Operations Manager and District Manager.

Mr. Vaughn was elected Vice President and General Manager, Eastern Utility Services, effective June 6, 2010, and served as Vice President, Eastern Utility Services, having been appointed in December 2007. Prior to that time, he served as Vice President, Northern Operating Group, Utility Services, having been appointed in July 2002. Previously, having joined Davey Tree in 1972, Mr. Vaughn held various managerial positions, including Operations Manager and Regional Manager.

Our officers serve from the date of their election to the next organizational meeting of the Board of Directors and until their respective successors are elected.

Page 14

PART II

Item 5.  Market for Company’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common shares are not listed or traded on an established public trading market and market prices are, therefore, not available. Semiannually, for purposes of the Davey 401KSOP and ESOP, the fair market value of our common shares is determined by an independent stock valuation firm, based upon our performance and financial condition, using a peer group of comparable companies selected by that firm. The peer group currently consists of: ABM Industries Incorporated; Comfort Systems USA, Inc.; Dycom Industries, Inc.; MYR Group, Inc.; Quanta Services, Inc.; Rollins, Inc.; and, Scotts Miracle-Gro Company. The semiannual valuations are effective for a period of six months and the per-share price established by those valuations is the price at which our Board of Directors has determined our common shares will be bought and sold during that six-month period in transactions involving Davey Tree or one of its employee benefit or stock purchase plans. Since 1979, we have provided a ready market for all shareholders through our direct purchase of their common shares, although we are under no obligation to do so (other than for repurchases pursuant to the put option under The Davey 401KSOP and ESOP Plan, as described in Note O). These purchases are added to our treasury stock.

Record Holders and Common Shares

On March 10, 2017 we had 3,868 record holders of our common shares.

On March 10, 2017 we had 24,930,758 common shares outstanding and options exercisable to purchase 750,896 common shares, partially-paid subscriptions for 833,440 common shares and purchase rights outstanding for 338,382 common shares.

Dividends

The following table sets forth, for the periods indicated, the dividends declared per common share (in cents):

	Year Ended December 31,
Quarter	2016	2015
1	2.50	2.50
2	2.50	2.50
3	2.50	2.50
4	2.50	2.50
Total	10.00	10.00

We presently expect to pay comparable cash dividends in 2017.

Recent Sales of Unregistered Securities

None.

Page 15

Purchases of Equity Securities

The following table provides information on purchases made by the Company of our common shares during the fiscal year ended December 31, 2016. We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017.

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
Fiscal 2016
January 1 to January 30	1,608	$	15.75	n/a	n/a
January 31 to February 27	540	15.75		n/a	n/a
February 28 to April 2	103,498	16.35		n/a	n/a
Total First Quarter	105,646	16.34
April 3 to April 30	204,266	16.35		n/a	n/a
May 1 to May 28	218,716	16.35		n/a	n/a
May 29 to July 2	158,618	16.35		n/a	n/a
Total Second Quarter	581,600	16.35
July 3 to July 30	576	16.35		n/a	n/a
July 31 to August 27	63,218	16.95		n/a	n/a
August 28 to October 1	153,226	16.95		n/a	n/a
Total Third Quarter	217,020	16.95
October 2 to October 29	335,310	16.95		n/a	n/a
October 30 to December 3	168,174	16.95		n/a	n/a
December 4 to December 31	84,332	16.95		n/a	n/a
Total Fourth Quarter	587,816	16.95
Total Year to Date	1,492,082	$	16.67
n/a--Not applicable. There are no publicly announced plans or programs to purchase common shares.

Page 16

Stock Performance Graph

Comparison of five-year cumulative return among The Davey Tree Expert Company, S&P 500 Stock Index and Selected Peer Group Companies Index

The following Performance Graph compares cumulative total shareholder returns for The Davey Tree Expert Company common shares during the last five years to the Standard & Poor’s 500 Stock Index and to an index of selected peer group companies. The peer group, which is the same group used by Davey’s independent stock valuation firm, consists of: ABM Industries Incorporated; Comfort Systems USA, Inc.; Dycom Industries, Inc.; MYR Group, Inc.; Quanta Services, Inc.; Rollins, Inc.; and Scotts Miracle-Gro Company. Each of the three measures of cumulative total return assumes reinvestment of dividends.

	2011	2012	2013	2014	2015	2016
Davey Tree	100	119	136	156	171	185
S&P 500 Index	100	116	154	175	177	198
Peer Group	100	109	144	146	154	219

The Performance Graph and related information above shall not be deemed “soliciting material” or be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that we specifically incorporate it by reference into such filing.

Page 17

Item 6.  Selected Financial Data.

	Fiscal Year Ended December 31,
	2016			2015			2014			2013			2012
	(In thousands, except ratio and per share data)
Operating Statement Data:
Revenues	$	845,678		$	821,904		$	789,911		$	713,848		$	680,153
Costs and expenses:
Operating	541,486			528,899			508,677			462,646			437,332
Selling	152,106			144,234			140,027			120,842			111,578
General and administrative	61,789			59,798			54,970			50,654			48,171
Depreciation	47,284			44,677			40,970			38,231			37,365
Amortization of intangible assets	2,306			2,214			2,070			1,980			1,742
Gain on sale of assets, net	(4,664		)	(2,026		)	(806		)	(1,294		)	(1,802		)
Income from operations	45,371			44,108			44,003			40,789			45,767
Interest expense	(4,393		)	(3,355		)	(2,948		)	(2,708		)	(2,698		)
Interest income	255			249			295			311			200
Other expense	(3,989		)	(5,744		)	(3,050		)	(2,827		)	(2,611		)
Income before income taxes	37,244			35,258			38,300			35,565			40,658
Income taxes	14,960			13,460			15,131			12,712			16,063
Net income	$	22,284		$	21,798		$	23,169		$	22,853		$	24,595
Earnings per share--diluted *	$	.82		$	.78		$	.81		$	.79		$	.84
Shares used for computing per share amounts--diluted *	27,247			27,955			28,477			29,205			29,218
Other Financial Data:
Depreciation and amortization	$	49,590		$	46,891		$	43,040		$	40,211		$	39,107
Capital expenditures	56,646			56,047			55,731			45,205			29,734
Cash flow provided by (used in):
Operating activities	55,370			62,689			49,279			56,310			43,936
Investing activities	(54,808		)	(56,046		)	(64,060		)	(43,205		)	(31,179		)
Financing activities	(7,721		)	(7,140		)	17,335			(16,891		)	(3,377		)
Cash dividends declared per share *	$	.1000		$	.1000		$	.0925		$	.0900		$	.0888

Page 18

	As of December 31,
	2016		2015		2014		2013		2012
	(In thousands, except ratio and per share data)
Balance Sheet Data:
Working capital	$	59,868	$	48,984	$	49,916	$	39,030	$	54,393
Current ratio	1.50		1.44		1.46		1.37		1.55
Property and equipment, net	179,436		166,422		160,883		136,884		125,716
Total assets	423,939		393,586		381,004		330,814		330,932
Long-term debt	92,623		85,104		81,306		50,034		54,787
Other long-term liabilities	60,565		55,464		54,854		44,371		59,498
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP) **	124,201		127,089		123,668		113,694		102,971
Total common shareholders' equity **	27,978		14,450		12,826		19,347		15,135
Redeemable common shares *	7,057		7,773		8,217		8,613		8,877
Common shares: *
Issued	35,857		35,141		34,697		34,301		34,037
Less: In treasury	17,991		17,427		16,584		16,036		15,462
Net outstanding	24,923		25,487		26,330		26,878		27,452
Stock options: *
Outstanding	1,599		1,634		1,540		1,324		1,522
Exercisable	751		834		778		684		1,280
ESOT valuation per share *	$	17.60	$	16.35	$	15.05	$	13.20	$	11.60

* Adjusted for two-for-one stock split, effective June 1, 2017, as discussed in Note B to the audited financial statements included in item 8.

** Restated, as discussed in Note C to the audited financial statements included in item 8.

Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations.

(Amounts in thousands, except share data)

Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) is provided as a supplement to the accompanying consolidated financial statements and notes to help provide an understanding of our financial condition, cash flows and results of operations. MD&A is organized as follows:

▪ Overview of 2016 Results;

▪ Results of Operations, including fiscal 2016 compared to fiscal 2015, fiscal 2015 compared to fiscal 2014, and liabilities for uncertain income tax positions, and other matters;

▪ Liquidity and Capital Resources, including cash flow summary, off-balance sheet arrangements, and capital resources;

▪ Recent Accounting Guidance;

▪ Critical Accounting Policies and Estimates; and

▪ Market Risk Information, including interest rate risk and foreign currency exchange rate risk.

OVERVIEW OF 2016 RESULTS

General

We provide a wide range of horticultural, arboricultural, environmental and consulting services to residential, commercial, utility and institutional customers throughout the United States and Canada.

Page 19

Our Business--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.

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.”

Results of Operations

The following table sets forth our consolidated results of operations as a percentage of revenues and the percentage change in dollar amounts of the results of operations for the periods presented:

	Year Ended December 31,						Percentage Change
	2016		2015		2014		2016/2015		2015/2014
Revenues	100.0	%	100.0	%	100.0	%	2.9	%	4.1	%
Costs and expenses:
Operating	64.0		64.3		64.3		2.4		4.0
Selling	18.0		17.5		17.7		5.5		3.0
General and administrative	7.3		7.3		7.0		3.3		8.8
Depreciation	5.6		5.4		5.2		5.8		9.0
Amortization of intangible assets	.3		.3		.3		4.2		7.0
Gain on sale of assets, net	(.6	)	(.2	)	(.1	)	130.2		151.4
	94.6		94.6		94.4		2.9		4.3
Income from operations	5.4		5.4		5.6		2.9		.2
Other income (expense):
Interest expense	(.5	)	(.4	)	(.4	)	30.9		13.8
Interest income	—		—		—		nm		nm
Other	(.5	)	(.7	)	(.4	)	nm		nm
Income before income taxes	4.5		4.3		4.8		5.6		(7.9	)
Income taxes	1.8		1.6		1.9		11.1		(11.0	)
Net income	2.6	%	2.7	%	2.9	%	2.2	%	(5.9	)%
nm--not meaningful

Revenues of $845,678 were 2.9% higher than last year’s revenues of $821,904. Utility revenues increased .1%, and Residential and Commercial revenues increased 6.4% from the prior year.

Overall, income from operations of $45,371 increased 2.9% from the $44,108 experienced in the prior year. Income from operations was $19,256 in Utility (a 20.7% decrease as compared with 2015) and $36,640 for Residential and Commercial (a 3.9% increase as compared with 2015).

Net income of $22,284 was $486 more than the $21,798 earned in 2015. The decreases in other nonoperating expenses of $1,755, was partially offset by an increase in income taxes of $1,500 and an increase in interest expense of $1,038.

Page 20

Operating activities in 2016 provided cash of $55,370 as compared to $62,689 provided in 2015. The $7,319 net decrease was primarily attributable to (i) an increase of $17,730 in cash used by accounts receivable attributable to the timing of payments from utility customers, offset by (ii) $7,942 more cash provided from changes in operating assets and liabilities excluding accounts receivable, and (iii) an increase of $2,699 in depreciation and amortization expense.

Investing activities used $54,808 in cash, or $1,238 less than that used in 2015. The decrease was primarily due to fewer expenditures for land and buildings and greater proceeds from sales of property and equipment, including the sale of a building in 2016, which were partially offset by an increase in purchases of businesses and equipment necessary to support the business growth.

Financing activities used $7,721 in cash in 2016, $581 more than the $7,140 of cash used in 2015. Our revolving credit facility provided $12,500 in cash in 2016 as compared with the $10,000 provided during 2015. Purchases of common shares for treasury of $25,290 were partially offset by net cash received of $12,152 from the sale of common shares and cash received on our common share subscriptions. Dividends paid during 2016 totaled $2,597.

Fiscal 2016 Compared to Fiscal 2015

A comparison of our fiscal year 2016 results to 2015 follows:

	Year Ended December 31,
	2016			2015			Change			% Change
Revenues	$	845,678		$	821,904		$	23,774		2.9	%
Costs and expenses:
Operating	541,486			528,899			12,587			2.4
Selling	152,106			144,234			7,872			5.5
General and administrative	61,789			59,798			1,991			3.3
Depreciation	47,284			44,677			2,607			5.8
Amortization of intangible assets	2,306			2,214			92			4.2
Gain on sale of assets, net	(4,664		)	(2,026		)	(2,638		)	130.2
	800,307			777,796			22,511			2.9
Income from operations	45,371			44,108			1,263			2.9
Other income (expense):
Interest expense	(4,393		)	(3,355		)	(1,038		)	30.9
Interest income	255			249			6			2.4
Other	(3,989		)	(5,744		)	1,755			(30.6	)
Income before income taxes	37,244			35,258			1,986			5.6
Income taxes	14,960			13,460			1,500			11.1
Net income	$	22,284		$	21,798		$	486		2.2	%
nm--not meaningful

Revenues--Revenues of $845,678 increased $23,774 compared with the $821,904 reported in 2015. Utility increased $262, or .1%, from the prior year. New contracts obtained and increases in rates and productivity on contracts within both our U.S. and Canadian operations were partially offset by contracts lost and significant reductions in contract scope with two utility providers within our U.S. Utility operations. Residential and Commercial increased $24,551, or 6.4%, from 2015.  Higher contract rates on our tree pruning, tree removal and liquid services, increased storm revenue, increased productivity and additional revenue from the purchase of businesses accounted for the increase.  Total consolidated revenue of $845,678 includes production incentive revenue, recognized under the completed-performance method, of $2,827 during 2016 as compared with $4,686 during 2015.

Operating Expenses--Operating expenses of $541,486 increased $12,587 from the prior year, and as a percentage of revenues decreased .3% to 64.0%. Utility experienced an increase of $1,971, or .6%, from 2015, and as a percentage of revenues increased .6% to 74.4%. Increases in employee labor and benefits expense, equipment repair and maintenance

Page 21

expense, disposal expense and subcontractor expense were partially offset by decreases in fuel expense, crew expense and material expense. Residential and Commercial increased $12,767, or 6.3%, compared with 2015 and as a percentage of revenue decreased .1% to 52.6%. Increases in employee labor and benefits expense, subcontractor expense, disposal expense, tool and saw expense and material expense were partially offset by decreases in fuel expense and crew expense.

Fuel costs decreased in 2016 as compared with fuel costs for 2015 and impacted operating expenses within all segments. During 2016, fuel expense of $22,677 decreased $3,204, or 12.4%, from the $25,881 incurred in 2015. Substantially all of the $3,204 decrease relates to a decrease in price of fuel.

Selling Expenses--Selling expenses of $152,106 increased $7,872 from 2015 and as a percentage of revenues increased .5% to 18.0%.Utility increased $1,016, or 2.3%, from 2015. Increases in office support wages, field management travel expense, rent expense and computer expense were partially offset by reductions in field management wages and incentive expense and employee development expense. Residential and Commercial increased $7,191, or 7.0%, from 2015 and as a percentage of revenue increased .2% to 26.8%. Increases in field management wages and incentive expense, rent expense, computer expense, communication expense, professional services expense and sales and marketing expense were partially offset by reductions in field management auto expense.

General and Administrative Expenses--General and administrative expenses increased $1,991 to $61,789, an increase of 3.3% from the $59,798 experienced in 2015 and as a percentage of revenues remained at 7.3%. Increases in salary and incentive expense, office expense, and computer expense were partially offset by a decrease in professional services expense.

Depreciation and Amortization Expense--Depreciation and amortization expense of $49,590 increased $2,699 from the prior year and as a percentage of revenues increased .2% to 5.9%. The increase is attributable to higher capital expenditures for equipment and an increase in amortization expense related to our purchases of businesses.

Gain on Sale of Assets--Gain on the sale of assets of $4,664 increased $2,638 from the $2,026 experienced in 2015. The increase is the result of more units sold at a higher average price in 2016 as compared with 2015 and the sale of a building in 2016.

Interest Expense--Interest expense of $4,393 increased $1,038 from the $3,355 incurred in 2015. The increase is attributable to higher-average debt levels necessary to fund operations and capital expenditures.

Other, Net--Other, net of $3,989 decreased $1,755 from the $5,744 experienced in 2015. Other, net, consisted of nonoperating income and expense, including foreign currency gains on the intercompany account balances of our Canadian operations.

Income Taxes--Income taxes for 2016 were $14,960, an effective tax rate of 40.2%, compared with income taxes for 2015 of $13,460, or an effective tax rate of 38.2%. The increase of 2.0% in the effective tax rate as compared to 2015 relates primarily to changes in foreign tax credits, which had reduced the 2015 rate.

Net Income--Net income of $22,284 was $486 more than the $21,798 earned in 2015. The increase in income from operations of $1,263 and the decrease of other nonoperating expenses of $1,755, offset by the increases in interest expense of $1,038 and income taxes of $1,500, contributed to the increase in net income.

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Fiscal 2015 Compared to Fiscal 2014

A comparison of our fiscal year 2015 results to 2014 follows:

	Year Ended December 31,
	2015			2014			Change			% Change
Revenues	$	821,904		$	789,911		$	31,993		4.1	%
Costs and expenses:
Operating	528,899			508,677			20,222			4.0
Selling	144,234			140,027			4,207			3.0
General and administrative	59,798			54,970			4,828			8.8
Depreciation	44,677			40,970			3,707			9.0
Amortization of intangible assets	2,214			2,070			144			7.0
Gain on sale of assets, net	(2,026		)	(806		)	(1,220		)	151.4
	777,796			745,908			31,888			4.3
Income from operations	44,108			44,003			105			.2
Other income (expense):
Interest expense	(3,355		)	(2,948		)	(407		)	13.8
Interest income	249			295			(46		)	(15.6	)
Other	(5,744		)	(3,050		)	(2,694		)	88.3
Income before income taxes	35,258			38,300			(3,042		)	(7.9	)
Income taxes	13,460			15,131			(1,671		)	(11.0	)
Net income	$	21,798		$	23,169		$	(1,371	)	(5.9	)%
nm--not meaningful

Revenues--Revenues of $821,904 increased $31,993 compared with the $789,911 reported in 2014. Utility increased $28,598, or 7.1%, from the prior year. Contract rate increases with one of our largest utility customers, new contracts and increased productivity within our U.S. and Canadian operations account for the increase. Residential and Commercial increased $53 from 2014.  Increases in tree pruning and tree removal revenues, landscape revenue and additional revenue from the purchase of businesses were partially offset by a reduction in revenues related to the special contract work with a large customer related to tree damage purportedly caused by one of its products.  Total consolidated revenue of $821,904 includes production incentive revenue, recognized under the completed-performance method, of $4,686 during 2015 as compared with $5,142 during 2014.

Operating Expenses--Operating expenses of $528,899 increased $20,222 from the prior year, and as a percentage of revenues remained at 64.3%. Utility experienced an increase of $18,857, or 6.3%, from 2014, and as a percentage of revenues decreased .6% to 73.9%. Increases in employee labor and benefits expense, equipment repair and maintenance expense, crew expense, material expense, subcontractor expense and tool and saw expense were partially offset by decreases in fuel expense and disposal expense. Residential and Commercial decreased $2,026, or 1.0%, compared with 2014 and as a percentage of revenue decreased .5% to 52.7%. Decreases in fuel expense, subcontractor expense, crew expense, disposal expense and tool and saw expense were partially offset by increases in employee labor and benefits expense and material expense.

Fuel costs decreased in 2015 as compared with fuel costs for 2014 and impacted operating expenses within all segments. During 2015, fuel expense of $25,881 decreased $9,248, or 26.3%, from the $35,129 incurred in 2014. Substantially all of the $9,248 decrease relates to a decrease in price of fuel.

Selling Expenses--Selling expenses of $144,234 increased $4,207 from 2014 and as a percentage of revenues decreased .2% to 17.5%.Utility increased $3,360, or 8.2%, from 2014. Increases in field management wages and incentive expense, field management travel expense, rent expense, office expense, and employee development expense were partially offset by reductions in field management auto expense, communication expense, computer expense and professional services expense. Residential and Commercial increased $1,186, or 1.2%, from 2014 and as a percentage of revenue increased .3% to 26.6%. Increases in field management wages and incentive expense, rent expense and sales and marketing expense were partially

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offset by reductions in field management auto expense, communication expense, computer expense and professional services expense.

General and Administrative Expenses--General and administrative expenses increased $4,828 to $59,798, an increase of 8.8% from the $54,970 experienced in 2014 and as a percentage of revenues increased .3% to 7.3%. Increases in salary and incentive expense, management travel expense, office rent expense, employee development expense, stock compensation expense and pension settlement costs incurred as a result of purchasing annuities related to our defined benefit pension plans were partially offset by decreases in management auto expense, communication expense and computer expense.

Depreciation and Amortization Expense--Depreciation and amortization expense of $46,891 increased $3,851 from the prior year and as a percentage of revenues increased .2% to 5.7%. The increase is attributable to higher capital expenditures for equipment and an increase in amortization expense related to our purchases of businesses.

Gain on Sale of Assets--Gain on the sale of assets of $2,026 increased $1,220 from the $806 experienced in 2014. The increase is the result of the sale of aerial chassis in 2015 as compared with 2014.

Interest Expense--Interest expense of $3,355 increased $407 from the $2,948 incurred in 2014. The increase is attributable to higher-average debt levels necessary to fund operations and capital expenditures.

Other, Net--Other, net of $5,744 increased $2,694 from the $3,050 experienced in 2014. Other, net, consisted of nonoperating income and expense, including foreign currency losses on the intercompany account balances of our Canadian operations.

Income Taxes--Income taxes for 2015 were $13,460, an effective tax rate of 38.2%, compared with income taxes for 2014 of $15,131, or an effective tax rate of 39.5%. The decrease of 1.3% in the effective tax rate of 38.2% for 2015, as compared to 39.5% for 2014, relates primarily to changes in foreign tax credits.

Net Income--Net income of $21,798 was $1,371 lower than the $23,169 earned in 2014. The increases in interest expense of $407 and other nonoperating expenses of $2,694, offset by the decrease in income taxes of $1,671, contributed to the decrease in net income.

Income Tax—Liabilities for Uncertain Tax Positions

The amount of income taxes we pay is subject to audit by U.S. federal, state and Canadian tax authorities, which may result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is highly judgmental. Uncertain tax positions are recognized only if they are more-likely-than-not to be upheld during examination based on their technical merits. The measurement of the uncertain tax position is based on the largest benefit amount that is more-likely-than-not (determined on a cumulative probability basis) to be realized upon settlement of the matter. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate settlement, a further charge to expense may result.

The Company is routinely under audit by U.S. federal, state, local and Canadian authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. During the fourth quarter 2013, the U.S. Internal Revenue Service completed its audit of the Company's U.S. income tax returns for 2010 and 2011 and, during 2010, Canada Revenue Agency completed its audit of the Company's Canadian operations for 2006, 2007 and 2008. With the exception of U.S. state jurisdictions, the Company is no longer subject to examination by tax authorities for the years through 2012. As of December 31, 2016, we believe it is reasonably possible that the total amount of unrecognized tax benefits will not significantly increase or decrease.

Goodwill—Impairment Tests

Annually, we perform the impairment tests for goodwill during the fourth quarter. Impairment of goodwill is tested at the reporting-unit level, which for us are also our business segments. Impairment of goodwill is tested by comparing the reporting unit’s carrying value, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using discounted projected cash flows. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. We conducted our annual impairment tests and determined that no impairment loss was required to be recognized in 2016 or for any prior periods. There were no events or circumstances from the date of our assessment through December 31, 2016 that would impact this conclusion.

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The fair values of the reporting units were estimated using discounted projected cash flows for the goodwill impairment tests and analysis that required judgmental assumptions about revenues, operating margins, growth rates, discount rates, and working capital requirements. In determining those judgmental assumptions, we consider data, including--for each reporting unit--its annual budget for the upcoming year, its longer-term performance expectations, anticipated future cash flows and market data. Assumptions were also made for perpetual growth rates for periods beyond the forecast period.

If the fair values of the reporting units were less than the carrying values of the reporting units (including recorded goodwill), determined through the discounted projected cash flow methodology, goodwill impairment may be present. In such an instance, we would measure the goodwill impairment loss, if any, based upon the fair value of the underlying assets and liabilities of the impacted reporting unit, including any unrecognized intangible assets, and estimate the implied fair value of goodwill. An impairment loss would be recognized to the extent that a reporting unit’s recorded goodwill exceeded the implied fair value of goodwill.

The carrying value of the recorded goodwill for all reporting units totaled $30,305 at December 31, 2016. Based upon the goodwill impairment analysis conducted in the fourth quarter 2016, a hypothetical reduction in the fair value of the individual reporting units of approximately 44% to 65% would not have resulted in the carrying value of the individual reporting units exceeding the reduced fair value.

LIQUIDITY AND CAPITAL RESOURCES

Our principal financial requirements are for capital spending, working capital and business acquisitions. Cash generated from operations and our revolving credit facility are our primary sources of capital.

Cash Flow Summary

Our cash flows from operating, investing and financing activities, as reflected in the Consolidated Statements of Cash Flow for the years ended December 31, 2016 and December 31, 2015, are summarized as follows:

	2016			2015
Cash provided by (used in):
Operating activities	$	55,370		$	62,689
Investing activities	(54,808		)	(56,046		)
Financing activities	(7,721		)	(7,140		)
Effect of exchange rate changes on cash	135			(1,888		)
Decrease in cash	$	(7,024	)	$	(2,385	)

Net Cash Provided by Operating Activities--Operating activities in 2016 provided cash of $55,370 as compared to $62,689 provided in 2015. The $7,319 net decrease was primarily attributable to (i) $7,942 more cash used from changes in operating assets and liabilities, and (ii) an increase of $2,699 in depreciation and amortization expense.

Overall, accounts receivable dollars increased $26,133 in 2016 as compared to the increase of $8,403 experienced in 2015. The increase in 2016 was attributable to the timing of payments from utility customers. With respect to the change in accounts receivable arising from business levels, the “days-sales-outstanding” in accounts receivable (“DSO”) at the end of 2016 increased 7 days to 62 days, as compared to 2015. The DSO at December 31, 2015 was 55 days.

Accounts payable and accrued expenses increased $2,454 in 2016, $732 more than the increase of $1,722 experienced in 2015. Increases in advance payments from customers, 401KSOP liabilities, employee savings withholdings, professional service accruals and compensated absence accruals were partially offset by decreases in employee compensation accruals and health insurance accruals.

Self-insurance accruals increased $2,499 in 2016, a change of $1,053 compared to the increase of $1,446 experienced in 2015. The increase occurred within our workers compensation and general liability classifications and resulted primarily from an overall increase in deductible amounts under commercial insurance or the self-insured risk retention.

Other assets, net, decreased $7,994 in 2016, as compared to the $1,837 decrease in 2015. Decreases in refundable income taxes and an increase in pension liabilities primarily account for the difference.

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Net Cash Used in Investing Activities--Investing activities used $54,808 in cash, $1,238 less than the $56,046 used in 2015. The decrease was primarily due to fewer expenditures for land and buildings and greater proceeds from equipment sales and the sale of a building which were partially offset by an increase in purchases of equipment and businesses necessary to support the business growth.

Net Cash Used in Financing Activities--Financing activities used $7,721 in cash in 2016, $581 more than the $7,140 of cash used in 2015. Our revolving credit facility provided $12,500 as compared with the $10,000 provided during 2015. We use the revolving credit facility primarily for capital expenditures and payments of notes payable, primarily related to acquisitions. Borrowings of notes payable totaled $656 and payments of long-term debt and capital leases totaled $5,142. Purchases of common shares for treasury of $25,290 were partially offset by net cash received of $12,152 from the sale of common shares and cash received on our common share subscriptions. Dividends paid during 2016 totaled $2,597.

The Company currently repurchases common shares at the shareholders’ request in accordance with the terms of the Davey 401KSOP and ESOP Plan and also repurchases common shares from time to time at the Company’s discretion. The amount of common shares offered to the Company for repurchase by the holders of shares distributed from the Davey 401KSOP and ESOP Plan is not within the control of the Company, but is at the discretion of the shareholders. The Company expects to continue to repurchase its common shares, as offered by its shareholders from time to time, at their then current fair value. However, (other than repurchases pursuant to the put option under the Davey 401KSOP and ESOP Plan, as described in Note O) such purchases are not required, and the Company retains the right to discontinue them at any time. Repurchases of redeemable common shares from the Davey 401KSOP and ESOP at the shareholders’ request approximated $8,019 and $12,731 in 2016 and 2015, respectively. Purchases of common shares, other than redeemable common shares, approximated $17,271 and $12,664 in 2016 and 2015, respectively.

Revolving Credit Facility and 5.09% Senior Unsecured Notes--In November 2013, the Company amended its revolving credit facility. The Amended and Restated Credit Agreement provides for a revolving credit facility with a group of banks under which up to an aggregate of $175,000 is available, with a letter of credit sublimit of $100,000 and a swing line commitment of $15,000. Under certain circumstances, the amount available under the revolving credit facility may be increased to $210,000.

The Amended and Restated Credit Agreement extended the term of the revolving credit facility to November 7, 2018 from December 19, 2014. The revolving credit facility contains certain affirmative and negative covenants customary for this type of facility and includes financial covenant ratios with respect to a maximum leverage ratio and a maximum balance sheet leverage ratio. As of December 31, 2016, we were in compliance with all financial covenants contained in our revolving credit facility.

As of December 31, 2016, we had unused commitments under the facility approximating$103,929, and$71,071committed, which consisted of borrowings of$67,000 and issued letters of credit of$4,071. Borrowings outstanding bear interest, at Davey Tree’s option, of either (a) the base rate or (b) LIBOR plus a margin adjustment ranging from .75% to 1.50%--with the margin adjustments in both instances based on the Company's leverage ratio at the time of borrowing. The base rate is the greater of (i) the agent bank’s prime rate, (ii) LIBOR plus 1.5%, or (iii) the federal funds rate plus .5%. A commitment fee ranging from .10% to .25% is also required based on the average daily unborrowed commitment.

On July 22, 2010, we issued $30,000 of 5.09% Senior Unsecured Notes, Series A, due July 22, 2020 (the "5.09% Senior Notes"). The 5.09% Senior Notes were issued pursuant to a Master Note Purchase Agreement (the “Purchase Agreement”), between Davey Tree and the purchasers of the 5.09% Senior Notes. The net proceeds of the 5.09% Senior Notes were used in 2010 to pay down borrowings under our revolving credit facility.

The 5.09% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commenced on July 22, 2016 (thesixth anniversary of issuance), with four payments remaining. The Purchase Agreement contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios. As of December 31, 2016, we were in compliance with all financial covenants contained in our revolving credit facility.

Accounts Receivable Securitization Facility--On May 9, 2016, Davey Tree entered into a one-year agreement with a bank for an accounts receivable securitization facility (the “AR securitization facility”), whereby Davey Tree has pledged a first priority security interest in certain trade receivables in exchange for the bank issuing letters of credit (“LCs”) with a committed facility limit of $60,000.

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As of December 31, 2016, we had issued LCs of $58,150 under the terms of the AR securitization facility.

Under the AR securitization facility, Davey Tree transfers by selling or contributing current and future trade receivables to a wholly-owned, bankruptcy-remote financing subsidiary which pledges a perfected first priority security interest in the trade receivables--equal to the issued LCs as of December 31, 2016--to the bank in exchange for the bank issuing LCs.

Fees payable to the bank include: (a) an LC issuance fee, payable on each settlement date, in the amount of .90% per annum on the aggregate amount of all LCs outstanding plus outstanding reimbursement obligations (e.g., arising from drawn LCs), if any, and (b) an unused LC fee, payable monthly, equal to (i) .35% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is greater than or equal to 50% of the facility limit and (ii) .45% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is less than 50% of the facility limit. If an LC is drawn and the bank is not immediately reimbursed in full for the drawn amount, any outstanding reimbursement obligation will accrue interest at a per annum rate equal to a reserve-adjusted LIBOR or, in certain circumstances, a base rate equal to the higher of (i) the bank’s prime rate and (ii) the federal funds rate plus .50% and, following any default, 2.00% plus the greater of (a) adjusted LIBOR and (b) a base rate equal to the higher of (i) the bank’s prime rate and (ii) the federal funds rate plus .50%.

The agreements underlying the AR securitization facility contain various customary representations and warranties, covenants, and default provisions which provide for the termination and acceleration of the commitments under the AR securitization facility in circumstances including, but not limited to, failure to make payments when due, breach of a representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness.

Contractual Obligations Summary

The following is a summary of our long-term contractual obligations, as at December 31, 2016, to make future payments for the periods indicated:

			Contractual Obligations Due -- Year Ending December 31,
Description	Total		2017		2018		2019		2020		2021		Thereafter
Revolving credit facility	$	67,000	$	—	$	67,000	$	—	$	—	$	—	$	—
Senior unsecured notes	24,000		6,000		6,000		6,000		6,000		—		—
Term loans	16,151		10,701		829		160		169		4,292		—
Capital lease obligations	2,343		170		270		756		632		515		—
Operating lease obligations	28,397		7,005		5,214		4,056		3,093		1,881		7,148
Self-insurance accruals	62,936		23,605		14,825		9,639		5,399		2,792		6,676
Purchase obligations	12,800		12,800		—		—		—		—		—
Other liabilities	20,819		1,396		1,773		1,794		1,936		1,913		9,811
	$	234,446	$	61,677	$	95,911	$	22,405	$	17,229	$	11,393	$	23,635

The self-insurance accruals in the summary above reflect the total of the undiscounted amount accrued, for which amounts estimated to be due each year may differ from actual payments required to fund claims. Purchase obligations in the summary above represent open purchase-order amounts that we anticipate will become payable within the next year for goods and services we have negotiated for delivery as of December 31, 2016. Other liabilities include estimates of future expected funding requirements related to retirement plans and other sundry items. Because their future cash outflows are uncertain, accrued income tax liabilities for uncertain tax positions, as of December 31, 2016, have not been included in the summary above. Noncurrent deferred taxes and payments related to defined benefit pension plans are also not included in the summary.

As of December 31, 2016, total commitments related to issued letters of credit were $64,225, of which $4,071 were issued under the revolving credit facility, $58,150 were issued under the AR securitization facility, and $2,004 were issued under short-term lines of credit. As of December 31, 2015, total commitments related to issued letters of credit were $59,350, of which $57,347 were issued under the Revolving Credit Facility and $2,003 were issued under short-term lines of credit.

Also, as is common with our industry, we have performance obligations that are supported by surety bonds, which expire during 2017 through 2023. We intend to renew the performance bonds where appropriate and as necessary.

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Off-Balance Sheet Arrangements

There are no “off-balance sheet arrangements” as that term is defined in Regulation S-K, Item 303(a)(4)(ii) under the Securities Exchange Act of 1934, as amended.

Capital Resources

Cash generated from operations and our revolving credit facility are our primary sources of capital.

Cash of $9,006 as of December 31, 2016 included $3,770 in the U.S. and $5,236 in Canada, all of which is subject to U.S. federal income taxes and Canadian taxes if repatriated to the U.S. Currently, we do not expect to repatriate a portion of our 2016 Canadian earnings to satisfy our 2016 U.S. based cash flow needs.

Business seasonality results in higher revenues during the second and third quarters as compared with the first and fourth quarters of the year, while our methods of accounting for fixed costs, such as depreciation and interest expense, are not significantly impacted by business seasonality. Capital resources during these periods are equally affected. We satisfy seasonal working capital needs and other financing requirements with the revolving credit facility and several other short-term lines of credit. We are continually reviewing our existing sources of financing and evaluating alternatives. At December 31, 2016, we had working capital of $59,868, unused short-term lines of credit approximating $7,110, and $103,929 available under our revolving credit facility.

Our sources of capital presently allow us the financial flexibility to meet our capital spending plan and to complete business acquisitions for at least the next twelve months and for the foreseeable future.

RECENT ACCOUNTING GUIDANCE

Recent Accounting Guidance

Accounting Standards Adopted in 2016

Accounting Standards Update 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments--In September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 simplifies the reporting of adjustments to the provisional amounts recorded for a business combination during the measurement period by eliminating the requirement to retrospectively account for those adjustments. Companies are required to present separately, on the face of the income statement, or disclose in the notes to the financial statements, the impact on current period earnings by line item that would have been recorded in previous periods if the adjustment to the provisional amounts were recognized as of the acquisition date. The amendments in ASU 2015-16 became effective January 1, 2016 and require prospective application to qualifying business combinations.

Accounting Standards Update 2015-03, Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs--In April 2015, the FASB issued ASU 2015-03, “Imputation of Interest (Sub-Topic 835-30): Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. During the first quarter of 2016, we retrospectively adopted this standard, which resulted in a reduction of other noncurrent assets and long-term debt of $471 as of December 31, 2015 in the consolidated balance sheet.

Accounting Standards Update 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern--In August 2014, the FASB issued ASU 2014-15, "Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern" to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related note disclosures. As of December 31, 2016, the Company adopted ASU 2014-15, which had no impact on the Company's consolidated financial statements.

Accounting Standards Not Yet Adopted

Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)--In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on how cash receipts and cash payments related to eight specific cash flow issues are presented and classified in the

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statement of cash flows, with the objective of reducing the existing diversity in practice. The update is effective for annual periods beginning after December 15, 2017, which for Davey Tree would be January 1, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2016-15 to have a material impact on our consolidated financial statements.

Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting--In March 2016, the FASB issued ASU 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” with the objective to simplify several aspects of the accounting for share-based payment transactions, including: the income tax consequences; classification of awards as either equity or liabilities; classification of certain items on the statement of cash flows; and, accounting for forfeitures. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, which for Davey Tree would be January 1, 2017. Early adoption is permitted. Management is currently in the process of evaluating the impact the new standard will have on the Company’s consolidated financial statements.

Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606)--In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which will replace all current U.S. GAAP guidance on revenue recognition and eliminate all industry-specific guidance.

The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The underlying principle is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration for which the entity expects in exchange for those goods and services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced information to be presented in the financial statements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers.

Subsequent to the issuance of ASU 2014-09, the FASB has provided additional implementation guidance updates related to ASU 2014-09, including:

a. ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (‘Update 2015-14’),” which responded to stakeholders’ requests to defer the effective date of the guidance in ASU 2014-09.

b. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net ) (‘Update 2016-08’),” which clarifies the implementation guidance on principal versus agent considerations.

c. ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (‘Update 2016-10’),” which clarifies multiple aspects of Topic 606.

d. ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (‘Update 2016-12’),” which provides clarifying guidance in a few narrow areas and adds some practical expedients to the guidance.

The effective date and the transition requirements for the Updates are the same as the effective date of Topic 606 ASU 2015-14, which becomes effective for Davey Tree beginning with the first quarter 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The FASB also affirmed its proposal to permit all entities to apply the new revenue standard early, but not before the original effective date, which for Davey Tree would be first quarter 2017. The new revenue guidance will supersede existing revenue guidance affecting our Company, and may also affect our business processes and our information technology systems.

Management has assembled an internal project team and is reviewing our contracts and agreements with our customers under the provisions of the new standard. The Company currently expects revenue recognition for many of its services to remain unchanged, except for the interim recognition of certain variable, incentive-based components of contracts due to the timing of revenue recognition. The Company is also in the process of evaluating the disclosure requirements under the standard and any necessary changes to our systems, policies and controls as a result. We plan to adopt ASU 2014-09 using the modified retrospective approach effective January 1, 2018.

Accounting Standards Update 2016-02, Leases (Topic 842)--In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and, (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a

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lease-term of more than twelve months. The new standard is effective for interim and annual periods beginning after December 15, 2018, which for Davey Tree would be January 1, 2019. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. We are currently evaluating the impact of the new standard on our consolidated financial statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented.

On an ongoing basis, we evaluate our estimates and assumptions, including those related to accounts receivable, specifically those receivables under contractual arrangements primarily arising from Utility customers; allowance for doubtful accounts; and self-insurance accruals. We base our estimates on historical experience and on various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

We believe the following are our “critical accounting policies and estimates”--those most important to the financial presentations and those that require the most difficult, subjective or complex judgments.

Revenue Recognition--Revenues from Residential and Commercial customers are recognized as the services are provided and amounts are determined to be collectible. Revenues from contractual arrangements, primarily with Utility customers, are recognized based on costs incurred to total estimated contract costs. Changes in estimates and assumptions related to total estimated contract costs may have a material effect on the amounts reported as receivables arising from contractual arrangements and the corresponding amounts of revenues and profit.

Utility Customers--We generate a significant portion of revenues and corresponding accounts receivable from our Utility customers in the utility industry. One Utility customer, PG&E, approximated 12% of revenues during 2016, 11% during 2015 and 8% during 2014. Adverse conditions in the utility industry or individual utility customer operations may affect the collectibility of our receivables or our ability to generate ongoing revenues.

Allowance for Doubtful Accounts--In determining the allowance for doubtful accounts, we evaluate the collectibility of our accounts receivable based on a combination of factors. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations to us (e.g., bankruptcy filings), we record a specific allowance for doubtful accounts against amounts due to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we recognize allowances for doubtful accounts based on the length of time the receivables are past due. If circumstances change (e.g., unexpected material adverse changes in a major customer’s ability to meet its financial obligation to us or higher than expected customer defaults), our estimates of the recoverability of amounts could differ from the actual amounts recovered.

Self-Insurance Accruals--We are generally self-insured for losses and liabilities related primarily to workers’ compensation, vehicle liability and general liability claims. We use commercial insurance as a risk-reduction strategy to minimize catastrophic losses. Ultimate losses are accrued based upon estimates of the aggregate liability for claims incurred using certain actuarial assumptions followed in the insurance industry and based on Company-specific experience.

Our self-insurance accruals include claims for which the ultimate losses will develop over a period of years. Accordingly, our estimates of ultimate losses can change as claims mature. Our accruals also are affected by changes in the number of new claims incurred and claim severity. The methods for estimating the ultimate losses and the total cost of claims were determined by third-party consulting actuaries; the resulting accruals are reviewed by management, and any adjustments arising from changes in estimates are reflected in income.

The workers' compensation accruals are discounted as the amount and timing of cash payments related to those accruals are reliably determinable given the nature of workers' compensation benefits and the level of historical claim volume to support the actuarial assumptions and judgments used to derive the expected loss payment pattern. The

Page 30

workers' compensation accruals are discounted using an interest rate that approximates the long-term investment yields over the expected payment pattern of unpaid losses.

Our self-insurance accruals are based on estimates and, while we believe that the amounts accrued are adequate and not excessive, the ultimate claims may be in excess of or less than the amounts provided.

MARKET RISK INFORMATION

In the normal course of business, we are exposed to market risk related to changes in interest rates, changes in foreign currency exchange rates and changes in the price of fuel. We do not hold or issue derivative financial instruments for trading or speculative purposes. We use derivative financial instruments to manage risk, in part, associated with changes in interest rates and changes in fuel prices.

Interest Rate Risk

We are exposed to market risk related to changes in interest rates on long-term debt obligations. We regularly monitor and measure our interest rate risk and, to the extent that we believe we are exposed, from time-to-time we have entered into interest rate swap contracts--derivative financial instruments--with the objective of altering interest rate exposures related to a portion of our variable debt.

The following table provides information, as of December 31, 2016, about our debt obligations, including principal cash flows, weighted-average interest rates by expected maturity dates and fair values. Weighted-average interest rates used for variable-rate obligations are based on rates as derived from published spot rates, in effect as of December 31, 2016.

	Expected Maturity Date																			Fair Value December 31, 2016
	2017			2018			2019			2020			2021			Thereafter		Total
Liabilities
Long-term debt:
Fixed rate	$	15,150		$	6,385		$	6,901		$	6,819		$	4,838		$	—	$	40,093	$	42,835
Average interest rate	3.0		%	5.0		%	4.6		%	4.7		%	5.3		%	—
Variable rate	$	1,721		$	67,679		$	—		$	—		$	—		$	—	$	69,400	$	69,401
Average interest rate	4.5		%	2.2		%	—			—			—			—

Interest rates on the variable-rate debt, as of December 31, 2016, ranged from 2.7%to 13.0%.

Foreign Currency Exchange Rate Risk

We are exposed to market risk related to foreign currency exchange rate risk resulting from our operations in Canada, where we provide a comprehensive range of horticultural services. Our financial results could be affected by factors such as changes in the foreign currency exchange rate or differing economic conditions in the Canadian markets as compared with the markets for our services in the United States. Our earnings are affected by translation exposures from currency fluctuations in the value of the U.S. dollar as compared to the Canadian dollar. Similarly, the Canadian dollar-denominated assets and liabilities may result in financial exposure as to the timing of transactions and the net asset / liability position of our Canadian operations.

For the year ended December 31, 2016, the result of a hypothetical 10% uniform change in the value of the U.S. dollar as compared with the Canadian dollar would not have a material effect on our results of operations or our financial position. Our sensitivity analysis of the effect of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency prices. Presently, we do not engage in hedging activities related to our foreign currency exchange rate risk.

Commodity Price Risk

We are subject to market risk from fluctuating prices of fuel--both diesel and gasoline. In prior years we have used fuel derivatives as "economic hedges" related to fuel consumed by Davey Tree service vehicles. The objectives of the economic hedges are to fix the price of a portion of our fuel needs and mitigate the earnings and cash flow volatility attributable to the risk of changing prices. Presently, we are not engaged in any hedging or derivative activities.

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Impact of Inflation

The impact of inflation on the results of operations has not been significant in recent years.

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk.

The information set forth in “Market Risk Information” under Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” is incorporated herein by reference.

Item 8.  Financial Statements and Supplementary Data.

Our consolidated financial statements are attached hereto and listed on page F-1 of this annual report.

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A.  Controls and Procedures.

(a) Management’s Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, due to the material weakness described below, the design and operation of our disclosure controls and procedures were not effective at the reasonable assurance level as of the end of the period covered by this Form 10K/A in ensuring that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Management’s Discussion of Internal Controls over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control framework and processes were designed to provide reasonable assurance to management and the Board of Directors that our financial reporting is reliable and that our consolidated financial statements for external purposes have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

Our management recognizes its responsibility for fostering a strong ethical climate so that our affairs are conducted according to the highest standards of personal and corporate conduct.

Our internal controls over financial reporting include policies and procedures that: (i) provide for the maintenance of records that, in reasonable detail, accurately and fairly reflect our business transactions; (ii) provide reasonable assurance that transactions are recorded properly to allow for the preparation of financial statements in accordance with U.S. GAAP; and (iii) provide reasonable assurance that the unauthorized acquisition, use, or disposition of our assets will be prevented or detected in a timely manner. We maintain a dynamic system of internal controls and processes--including internal controls over financial reporting--designed to ensure reliable financial recordkeeping, transparent financial reporting and protection of physical and intellectual property.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

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(c) Management’s Annual Report on Internal Control over Financial Reporting

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation as to the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon our initial evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2016. Subsequent to filing previously issued quarterly reports on Form 10-Q, including April 1, 2017 and July 1, 2017 financial statements, an error was discovered related to the classification of shares of the Company’s common stock held by the Davey 401KSOP and ESOP Plan which were historically classified as permanent equity rather than temporary equity in the mezzanine section of the balance sheet. This error resulted in a material misstatement of the financial statements and required restatement of the financial statements included in the Company’s Form 10-K for the year ended December 31, 2016. This error, which was not detected timely by management, was the result of inadequate design, as well as insufficient operating effectiveness, of the control pertaining to the Company’s review of redemption provisions and associated fair value and classification of the common shares held by the Davey 401KSOP and ESOP (the Plan) as well as shares distributed from the Plan, which remain subject to redemption. The deficiency is considered to be indicative of a material weakness in our internal control over financial reporting. Based on the subsequent identification of the material weakness, we have now concluded that our internal control over financial reporting was ineffective as of December 31, 2016.

Our independent registered public accounting firm has issued an audit report on our internal control over financial reporting, which is included in this report.

/s/ Patrick M. Covey	/s/ Joseph R. Paul	/s/ Thea R. Sears
President and Chief Executive Officer	Executive Vice President, Chief Financial Officer and Secretary	Vice President and Controller

Kent, Ohio

November 21, 2017

(d) Changes in Internal Control over Financial Reporting

We have begun to enhance our controls and procedures in an effort to remediate the material weakness discussed above, including improving the precision of our review controls relating to the redemption provisions and associated fair value and classification of our common shares related to the Plan. We expect to fully remediate the above mentioned material weakness before the end of the fiscal year ending December 31, 2017. There were no changes in our internal control over financial reporting during the fourth quarter 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We continue to evaluate the effectiveness of our disclosure controls and procedures and our internal control over financial reporting on an ongoing basis and take action as appropriate.

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(e) Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of

The Davey Tree Expert Company

We have audited The Davey Tree Expert Company’s internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the COSO criteria). The Davey Tree Expert Company’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our report dated March 14, 2017, we expressed an unqualified opinion that The Davey Tree Expert Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on the COSO criteria. Management has subsequently identified a deficiency in controls related to inadequate design, as well as insufficient operating effectiveness, of the control pertaining to the Company’s review of redemption provisions and associated fair value and classification of the common shares held by the Davey 401KSOP and ESOP (the Plan) as well as shares distributed from the Plan, which remain subject to redemption, and has further concluded that such deficiency represented a material weakness as of December 31, 2016. As a result, management has revised its assessment, as presented in the accompanying Management's Report on Internal Control Over Financial Reporting; to conclude that The Davey Tree Expert Company’s internal control over financial reporting was not effective as of December 31, 2016. Accordingly, our present opinion on the effectiveness of The Davey Tree Expert Company’s internal control over financial reporting as of December 31, 2016, as expressed herein, is different from that expressed in our previous report.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified and included in management's assessment. Management has identified a material weakness in controls related to inadequate design, as well as insufficient operating effectiveness, of the control pertaining to the Company’s review of redemption provisions and associated fair value and classification of the common shares held by the Davey 401KSOP and ESOP (the Plan) as well as shares distributed from the Plan, which remain subject to redemption. We also have audited, in accordance with the standards

Page 34

of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of The Davey Tree Expert Company as of December 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2016. This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2016 consolidated financial statements, and this report does not affect our report dated March 14, 2017, except for the effect of the error correction discussed in Notes C, M and O, and the effect of the stock split discussed in Note B, as to which the date is November 21, 2017, which expressed an unqualified opinion on those financial statements.

In our opinion, because of the effect of the material weakness described above on the achievement of the objectives of the control criteria, The Davey Tree Expert Company has not maintained effective internal control over financial reporting as of December 31, 2016, based on the COSO criteria.

/s/ Ernst & Young LLP

Akron, Ohio

March 14, 2017, except for the effect of the material weakness described in the sixth paragraph above, as to which the date is November 21, 2017.

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Item 9B.  Other Information.

None.

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PART III

Item 10.  Directors, Executive Officers and Corporate Governance.

Information about our executive officers is included in the section "Executive Officers of the Company,” pursuant to Instruction G of Form 10-K as an unnumbered item to Part I of this report.

Information about our directors is in the section "Election of Directors" of our 2017 Proxy Statement, which is incorporated into this report by reference.

Information about our audit committee and our audit committee financial experts is in the section “Committees of the Board of Directors; Attendance” of our 2017 Proxy Statement, which is incorporated into this report by reference.

Information required by Item 405 of Regulation S-K is in the section “Section 16(a) Beneficial Ownership Reporting Compliance” of our 2017 Proxy Statement, which is incorporated into this report by reference. See also the section titled "Shareholder Nominations for Director," which is incorporated into this report by reference.

We have adopted a Code of Ethics for Financial Matters that applies to our principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. That Code is available on our website or upon request, as described in this report in Item 1. “Business - Access to Company Information.” We intend to disclose, on our website, any amendments to, or waiver of, any provision of that Code that would otherwise be required to be disclosed under the rules of the Securities and Exchange Commission.

Item 11.  Executive Compensation.

Information about executive and director compensation is in the sections “Compensation Discussion and Analysis,” "Report of the Compensation Committee," "Compensation Risk Analysis," "Compensation of Executive Officers," Committees of the Board of Directors; Attendance" and "Compensation of Directors" of our 2017 Proxy Statement, which are incorporated into this report by reference.

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Information about ownership of our common shares by certain persons is in the section "Ownership of Common Shares" of our 2017 Proxy Statement, which is incorporated into this report by reference. Information about our securities authorized for issuance under equity compensation plans is in the section “Equity Compensation Plan Information” of our 2017 Proxy Statement, which is incorporated into this report by reference.

Item 13.  Certain Relationships and Related Transactions, and Director Independence.

Information about certain transactions between us and our affiliates and certain other persons and the independence of directors is in the section “Corporate Governance-Board Independence” and "Transactions with Related-Persons, Promoters and Certain Control Persons" of our 2017 Proxy Statement, which is incorporated into this report by reference.

Item 14.  Principal Accountant Fees and Services.

Information about our principal accountant’s fees and services is in the section “Independent Auditors” of our 2017 Proxy Statement, which is incorporated into this report by reference.

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PART IV

Item 15.  Exhibits and Financial Statement Schedules.

(a) (1) and (a) (2) Financial Statements and Schedules.

The response to this portion of Item 15 is set forth on page F-1 of this report.

(b) Exhibits.

The exhibits to this Form 10-K/A are submitted as a separate section of this report. See Exhibit Index.

Item 16.  Form 10-K Summary.

None.

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EXHIBIT INDEX
Exhibit No.	Description
3.1.1	2003 Amended Articles of Incorporation (Incorporated by reference to Exhibit 3.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 27, 2003).
3.1.2	Certificate of Amendment to the 2003 Amended Articles of Incorporation (incorporated by reference to Exhibit 3.1.2 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2015).
3.2	1987 Amended and Restated Regulations of The Davey Tree Expert Company (Incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2006).
10.1	Second Amended and Restated Credit Agreement among The Davey Tree Expert Company, as borrower, various lending institutions party thereto, as banks, KeyBank National Association, as lead arranger, syndication agent and administrative agent, and PNC Bank, National Association and Wells Fargo Bank, N.A., as co-documentation agents, dated as of November 7, 2013 (Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on November 12, 2013).
10.2	2004 Omnibus Stock Plan (Incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004).
10.3	2004 401KSOP Match Restoration Plan (Incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004).
10.4	Supplemental Executive Retirement Plan (Incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004).
10.5	Retirement Benefit Restoration Plan (Incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2004).
10.6	The Davey Tree Expert Company Board of Directors Revised Deferred Compensation Plan (Incorporated by reference to Exhibit 10.7 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2013).
10.7	2014 Omnibus Stock Plan (Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 21, 2014).
10.8	Stock Subscription Agreement (Incorporated by reference to Exhibit 10.8 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2014).
10.9	Receivables Financing Agreement, dated May 9, 2016, between The Davey Tree Expert Company, Davey Receivables LLC, PNC Bank, National Association, and PNC Capital Markets LLC (Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 11, 2016).
10.10	Receivables Purchase Agreement, dated May 9, 2016, between The Davey Tree Expert Company, Davey Tree Surgery Company, and Davey Receivables LLC (Incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 11, 2016).

Page 39

Exhibit No.	Description
10.11	Second Amendment to The Davey Tree Expert Company 401KSOP Match Restoration Plan, dated March 9, 2017 (Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 9, 2017).
21	Subsidiaries of the Registrant.	Filed Herewith
23	Consent of Independent Registered Public Accounting Firm.	Filed Herewith
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed Herewith
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed Herewith
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.	Furnished Herewith
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.	Furnished Herewith
101	The following materials from the Company's Annual Report on Form 10-K/A for the year ended December 31, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets (as restated), (ii) the Consolidated Statements of Operations (as restated), (iii) the Consolidated Statements of Comprehensive Income (as restated), (iv) the Statements of Consolidated Shareholders' Equity (as restated), (v) the Consolidated Statements of Cash Flows (as restated), and (vi) Notes to Consolidated Financial Statements (as restated).	Filed Herewith

The documents listed as Exhibits 10.2 through 10.8 constitute management contracts or compensatory plans or arrangements.

The Registrant is a party to certain instruments, copies of which will be furnished to the Securities and Exchange Commission upon request, defining the rights of holders of long-term debt.

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ANNUAL REPORT ON FORM 10-K/A

ITEM 8, ITEM 15(a)(1) and (2)

LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

CERTAIN EXHIBITS

FINANCIAL STATEMENTS SCHEDULES

YEAR ENDED DECEMBER 31, 2016

THE DAVEY TREE EXPERT COMPANY

KENT, OHIO

Page 41

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized onNovember21, 2017.

	THE DAVEY TREE EXPERT COMPANY
	By:    /s/ Patrick M. Covey
	Patrick M. Covey, President and
	Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on November 21, 2017.
/s/ Donald C. Brown	/s/ John E. Warfel
Donald C. Brown, Director	John E. Warfel, Director
/s/ Patrick M. Covey	/s/ Karl J. Warnke
Patrick M. Covey, Director	Karl J. Warnke, Director,
President and Chief Executive Officer	Chairman of the Board of Directors
(Principal Executive Officer)
/s/ J. Dawson Cunningham
J. Dawson Cunningham, Director	/s/ Joseph R. Paul
	Joseph R. Paul, Executive Vice President,
	Chief Financial Officer and Secretary
	(Principal Financial Officer)
/s/ William J. Ginn
William J. Ginn, Director
	/s/ Thea R. Sears
	Thea R. Sears, Vice President and Controller
/s/ Douglas K. Hall	(Principal Accounting Officer)
Douglas K. Hall, Director
/s/ Sandra W. Harbrecht
Sandra W. Harbrecht, Director

Page 42

LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
FORM 10-K/A - ITEM 15(a)(1) AND (2)
THE DAVEY TREE EXPERT COMPANY
The following consolidated financial statements of The Davey Tree Expert Company are included in Item 8:
Audited Consolidated Financial Statements:	Page
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets -- December 31, 2016 and 2015	F-3
Consolidated Statements of Operations -- Years ended December 31, 2016, 2015 and 2014	F-4
Consolidated Statements of Comprehensive Income -- Years ended December 31, 2016, 2015 and 2014	F-5
Statements of Consolidated Shareholders' Equity -- Years ended December 31, 2016, 2015 and 2014	F-6
Consolidated Statements of Cash Flows -- Years ended December 31, 2016, 2015 and 2014	F-7
Notes to Consolidated Financial Statements -- December 31, 2016
A – Our Business	F-8
B – Summary of Significant Accounting Policies	F-8
C – Correction of an Error	F-11
D – Recent Accounting Guidance	F-12
E – Business Combinations	F-14
F – Accounts Receivable, Net and Supplemental Balance Sheet Information	F-14
G – Supplemental Operating Information	F-16
H – Supplemental Cash Flow Information	F-16
I – Identified Intangible Assets and Goodwill, Net	F-17
J – Short and Long-Term Debt and Commitments Related to Letters of Credit	F-17
K – Self-Insurance Accruals	F-19
L – Lease Obligations	F-20
M – Common Shares, Redeemable Common Shares and Preferred Shares	F-21
N – Accumulated Other Comprehensive Income (Loss)	F-22
O – The Davey 401KSOP and Employee Stock Ownership Plan	F-23
P – Stock-Based Compensation	F-24
Q – Defined Benefit Pension Plans	F-27
R – Income Taxes	F-34
S – Earnings Per Share Information	F-37
T – Operations by Business Segment and Geographic Information	F-37
U – Fair Value Measurements and Financial Instruments	F-39
V – Commitments and Contingencies	F-41
W – Quarterly Results of Operations (Unaudited)	F-42
Financial Statement Schedules:
None.
All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and therefore have been omitted.

F-1

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of

The Davey Tree Expert Company

We have audited the accompanying consolidated balance sheets of The Davey Tree Expert Company as of December 31, 2016 and 2015, and the related consolidated statements of operations, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2016. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of The Davey Tree Expert Company at December 31, 2016 and 2015, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles.

As discussed in Notes C, M and O to the consolidated financial statements, the financial statements as of December 31, 2016 and for each of the three years in the period ending December 31, 2016 have been restated to correct an error in the classification of shares of the Company’s common stock held by the Davey 401KSOP and ESOP as well as shares distributed from the Plan, which remain subject to redemption.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), The Davey Tree Expert Company's internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our report dated March 14, 2017, except for the effect of the material weakness described in the sixth paragraph of that report, as to which the date is November 21, 2017, expressed an adverse opinion thereon.

/s/ Ernst & Young LLP

Akron, Ohio

March 14, 2017, except for the effect of the error correction discussed in Notes C, M and O, and the effect of the stock split discussed in Note B, as to which the date is November 21, 2017.

F-2

THE DAVEY TREE EXPERT COMPANY

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share dollar amounts)

	December 31,
	2016			2015
Assets	(As Restated)			(As Restated)
Current assets:
Cash	$	9,006		$	16,030
Accounts receivable, net	146,134			120,001
Operating supplies	7,277			7,171
Prepaid expenses	14,493			13,862
Other current assets	1,863			3,870
Total current assets	178,773			160,934
Property and equipment:
Land and land improvements	16,263			16,135
Buildings and leasehold improvements	37,676			36,532
Equipment	534,711			504,527
	588,650			557,194
Less accumulated depreciation	409,214			390,772
	179,436			166,422
Other assets	31,354			31,949
Identified intangible assets and goodwill, net	34,376			34,281
	$	423,939		$	393,586
Liabilities and shareholders' equity
Current liabilities:
Short-term debt	$	16,701		$	15,501
Current portion of capital leases	170			—
Accounts payable	41,283			37,750
Accrued expenses	37,659			36,146
Self-insurance accruals	23,092			22,553
Total current liabilities	118,905			111,950
Long-term debt	72,194			60,801
Senior unsecured notes	17,923			23,832
Capital leases	2,173			—
Self-insurance accruals	39,746			37,786
Other liabilities	20,819			17,678
	271,760			252,047
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP): 7,057 and 7,773 shares at redemption value as of December 31, 2016 and 2015	124,201			127,089
Common shareholders' equity:*
Common shares, $1.00 par value, per share; 48,000 shares authorized; 35,857 and 35,141 shares issued and outstanding before treasury shares and which excludes 7,057 and 7,773 shares subject to redemption as of December 31, 2016 and 2015	35,857			35,141
Additional paid-in capital	41,626			24,340
Common shares subscribed	8,209			8,591
Retained earnings	133,951			123,307
Accumulated other comprehensive loss	(12,162		)	(13,394		)
	207,481			177,985
Less: Cost of Common shares held in treasury; 17,991 shares in 2016 and 17,427 in 2015	176,530			159,429
Common shares subscription receivable	2,973			4,106
Total common shareholders' equity	27,978			14,450
	$	423,939		$	393,586
* Adjusted for two-for-one stock split
See notes to consolidated financial statements.

F-3

THE DAVEY TREE EXPERT COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share dollar amounts)

	Year Ended December 31,
	2016			2015			2014
Revenues	$	845,678		$	821,904		$	789,911
Costs and expenses:
Operating	541,486			528,899			508,677
Selling	152,106			144,234			140,027
General and administrative	61,789			59,798			54,970
Depreciation	47,284			44,677			40,970
Amortization of intangible assets	2,306			2,214			2,070
Gain on sale of assets, net	(4,664		)	(2,026		)	(806		)
	800,307			777,796			745,908
Income from operations	45,371			44,108			44,003
Other income (expense):
Interest expense	(4,393		)	(3,355		)	(2,948		)
Interest income	255			249			295
Other	(3,989		)	(5,744		)	(3,050		)
Income before income taxes	37,244			35,258			38,300
Income taxes	14,960			13,460			15,131
Net income	$	22,284		$	21,798		$	23,169
Share data:*
Earnings per share--basic	$	.85		$	.81		$	.84
Earnings per share--diluted	$	.82		$	.78		$	.81
Weighted-average shares outstanding:*
Basic	26,212			26,931			27,642
Diluted	27,247			27,955			28,477
Dividends declared per share*	$	.1000		$	.1000		$	.0925
* Adjusted for two-for-one stock split
See notes to consolidated financial statements.

F-4

THE DAVEY TREE EXPERT COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

	Year Ended December 31,
	2016			2015			2014
Net income	$	22,284		$	21,798		$	23,169
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments gains/(losses)	744			(5,093		)	(2,798		)
Defined benefit pension plans:
Net (loss)/gain arising during the year	(1,219		)	326			(6,023		)
Reclassification to results of operations:
Amortization of defined benefit pension items:
Net actuarial loss	1,912			2,863			1,682
Prior service cost	(205		)	33			9
	1,707			2,896			1,691
Defined benefit pension plan adjustments	488			3,222			(4,332		)
Total other comprehensive income (loss), net of tax	1,232			(1,871		)	(7,130		)
Comprehensive income	$	23,516		$	19,927		$	16,039
See notes to consolidated financial statements.

F-5

THE DAVEY TREE EXPERT COMPANY

STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY

(In thousands, except per share data)

	2016					2015					2014
	Shares*		Amount			Shares*		Amount			Shares*		Amount
	(As Restated)					(As Restated)					(As Restated)
Common shares
At beginning of year	35,141		$	35,141		34,697		$	34,697		34,301		$	34,301
Change in 401KSOP and ESOP related shares	716		716			444		444			396		396
At end of year	35,857		35,857			35,141		35,141			34,697		34,697
Additional paid-in capital
At beginning of year			24,340					9,520					—
Shares sold to employees			4,182					6,066					3,417
Options exercised			(992		)			(152		)			(273		)
Subscription shares, issued			21					83					184
Stock-based compensation			2,860					2,357					1,125
Change in 401KSOP and ESOP related shares			11,215					6,466					5,067
At end of year			41,626					24,340					9,520
Common shares subscribed, unissued
At beginning of year	872		8,591			952		9,381			1,062		10,467
Common shares, subscribed	—		—			—		—			—		—
Common shares, issued	(32	)	(325		)	(68	)	(676		)	(78	)	(758		)
Cancellations	(6	)	(57		)	(12	)	(114		)	(32	)	(328		)
At end of year	834		8,209			872		8,591			952		9,381
Retained earnings
At beginning of year			123,307					114,504					109,445
Net income			22,284					21,798					23,169
Dividends, $ .1000 per share			(2,597		)			(2,663		)			—
Dividends, $ .0925 per share			—					—					(2,674		)
Change in the fair value of 401KSOP and ESOP related shares			(9,043		)			(10,332		)			(15,436		)
At end of year			133,951					123,307					114,504
Accumulated other comprehensive income (loss), net of tax
At beginning of year			(13,394		)			(11,523		)			(4,393		)
Currency translation adjustments			744					(5,093		)			(2,798		)
Defined benefit pension plans			488					3,222					(4,332		)
At end of year			(12,162		)			(13,394		)			(11,523		)
Common shares held in treasury
At beginning of year	17,427		(159,429		)	16,584		(138,155		)	16,036		(125,034		)
Shares purchased	1,492		(25,290		)	1,648		(25,395		)	1,454		(19,598		)
Shares sold to employees	(617	)	5,298			(576	)	2,198			(574	)	3,822
Options exercised	(262	)	2,442			(143	)	1,225			(232	)	1,861
Subscription shares, issued	(49	)	449			(86	)	698			(100	)	794
At end of year	17,991		(176,530		)	17,427		(159,429		)	16,584		(138,155		)
Common shares subscription receivable
At beginning of year	(872	)	(4,106		)	(952	)	(5,600		)	(1,062	)	(7,342		)
Shares subscribed	—		—			—		—			—		—
Payments	32		1,104			68		1,434			78		1,543
Cancellations	6		29			12		60			32		199
At end of year	(834	)	(2,973		)	(872	)	(4,106		)	(952	)	(5,600		)
Common shareholders' equity at December 31	17,866		$	27,978		17,714		$	14,450		18,113		$	12,824
* Adjusted for two-for-one stock split
See notes to consolidated financial statements.

F-6

THE DAVEY TREE EXPERT COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Year Ended December 31,
	2016			2015			2014
Operating activities
Net income	$	22,284		$	21,798		$	23,169
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	47,284			44,677			40,970
Amortization	2,306			2,214			2,070
Gain on sale of assets	(4,664		)	(2,026		)	(806		)
Deferred income taxes	60			(2,975		)	(2,679		)
Other	1,286			2,399			(5,638		)
Changes in operating assets and liabilities:
Accounts receivable	(26,133		)	(8,403		)	(4,489		)
Accounts payable and accrued expenses	2,454			1,722			1,206
Self-insurance accruals	2,499			1,446			2,116
Other assets, net	7,994			1,837			(6,640		)
	33,086			40,891			26,110
Net cash provided by operating activities	55,370			62,689			49,279
Investing activities
Capital expenditures:
Equipment	(54,147		)	(52,466		)	(46,228		)
Land and buildings	(2,499		)	(3,581		)	(9,503		)
Proceeds from sales of property and equipment	5,635			2,650			1,366
Purchases of businesses	(3,797		)	(2,649		)	(9,695		)
Net cash used in investing activities	(54,808		)	(56,046		)	(64,060		)
Financing activities
Revolving credit facility borrowings/(payments), net	12,500			10,000			24,500
Borrowings/(payments) of notes payable	656			6,720			(1,091		)
Borrowings/(payments) of long-term debt and capital leases	(5,142		)	(6,624		)	5,695
Purchase of common shares for treasury	(25,290		)	(25,395		)	(19,598		)
Sale of common shares from treasury	11,019			9,328			8,762
Cash received on common-share subscriptions	1,133			1,494			1,741
Dividends	(2,597		)	(2,663		)	(2,674		)
Net cash (used in) provided by financing activities	(7,721		)	(7,140		)	17,335
Effect of exchange rate changes on cash	135			(1,888		)	—
(Decrease) Increase in cash	(7,024		)	(2,385		)	2,554
Cash, beginning of year	16,030			18,415			15,861
Cash, end of year	$	9,006		$	16,030		$	18,415
See notes to consolidated financial statements.

F-7

The Davey Tree Expert Company

Notes to Consolidated Financial Statements

December 31, 2016

(In thousands, except share data)

A. Our Business

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.

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.

We also maintain research, technical support and laboratory diagnostic facilities.

When we refer to “we,” “us,” “our,” “Davey Tree,” and the “Company,” we mean The Davey Tree Expert Company, unless the context indicates otherwise.

B. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation--The consolidated financial statements include the accounts of Davey Tree and our wholly-owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as codified in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). Intercompany accounts and transactions have been eliminated in consolidation.

Per Common Share Information--We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017 including all common share and per share data.

Use of Estimates in Financial Statement Preparation--The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts. Estimates are used for, but not limited to, accounts receivable valuation, depreciable lives of fixed assets, self-insurance accruals, and revenue recognition. Actual results could differ from those estimates.

Property and Equipment--Property and equipment are stated at cost. Repair and maintenance costs are expensed as incurred. Depreciation is computed for financial reporting purposes by the straight-line method for land improvements, building and leasehold improvements and by the declining-balance method for equipment, based on the estimated useful lives of the assets, as follows:

Land improvements	5 to 20 years
Buildings	5 to 30 years
Equipment	3 to 10 years
Leasehold improvements	Shorter of lease term or estimated useful life; ranging from 5-to-20 years

Intangible Assets--Intangible assets with finite lives, primarily customer lists, noncompete agreements and tradenames, are amortized by the straight-line method based on their estimated useful lives, ranging from one-to-ten years.

F-8

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

B. Summary of Significant Accounting Policies (continued)

Long-Lived Assets--We assess potential impairment to our long-lived assets, other than goodwill, when there is evidence that events or changes in circumstances have made recovery of the asset’s carrying value unlikely and the carrying amount of the asset exceeds the estimated future undiscounted cash flow. In the event the assessment indicates that the carrying amounts may not be recoverable, an impairment loss would be recognized to reduce the asset’s carrying amount to its estimated fair value based on the present value of the estimated future cash flows.

Goodwill--Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identified net assets acquired. Goodwill is not amortized, but tested for impairment annually or when events or circumstances indicate that impairment may have occurred. Annually, we perform the impairment tests for goodwill during the fourth quarter. Impairment of goodwill is tested at the reporting-unit level, which for us are also our business segments. Impairment of goodwill is tested by comparing the reporting unit’s carrying value, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using discounted projected cash flows. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. We conducted our annual impairment tests and determined that no impairment loss was required to be recognized in 2016 or for any prior periods. There were no events or circumstances from the date of our assessment through December 31, 2016 that would impact this conclusion.

Self-Insurance Accruals--We are generally self-insured for losses and liabilities related primarily to workers’ compensation, vehicle liability and general liability claims. We use commercial insurance as a risk-reduction strategy to minimize catastrophic losses. Ultimate losses are accrued based upon estimates of the aggregate liability for claims incurred using certain actuarial assumptions followed in the insurance industry and based on Company-specific experience.

Our self-insurance accruals include claims for which the ultimate losses will develop over a period of years. Accordingly, our estimates of ultimate losses can change as claims mature. Our accruals also are affected by changes in the number of new claims incurred and claim severity. The methods for estimating the ultimate losses and the total cost of claims were determined by third-party consulting actuaries; the resulting accruals are reviewed by management, and any adjustments arising from changes in estimates are reflected in income.

The workers' compensation accruals are discounted as the amount and timing of cash payments related to those accruals are reliably determinable given the nature of workers' compensation benefits and the level of historical claim volume to support the actuarial assumptions and judgments used to derive the expected loss payment pattern. The workers' compensation accruals are discounted using an interest rate that approximates the long-term investment yields over the expected payment pattern of unpaid losses.

Our self-insurance accruals are based on estimates and, while we believe that the amounts accrued are adequate and not excessive, the ultimate claims may be in excess of or less than the amounts provided.

Stock-Based Compensation--Stock-based compensation cost for all share-based payment plans is measured at fair value on the date of grant and recognized over the employee service period on the straight-line recognition method for awards expected to vest. The fair value of all stock-based payment plans—stock option plans, stock-settled stock appreciation rights, and performance-based restricted stock units as well as our Employee Stock Purchase Plan—is determined by the number of awards granted and the price of our common stock. The fair value of each award is estimated on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on historical volatility of our share prices and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock-based awards is derived from the output of the binomial model and represents the period of time that awards granted are expected to be outstanding.

F-9

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

B. Summary of Significant Accounting Policies (continued)

Defined Benefit Pension Plans--We record annual expenses relating to our defined benefit pension plans based on calculations that include various actuarial assumptions, including discount rates and expected long-term rates of return on plan assets. Actuarial assumptions are reviewed annually with modifications made to the assumptions, if necessary, based on current rates and trends. The effects of the actuarial gains or losses are amortized over future service periods. The funded status (that is, the projected benefit obligation less the fair value of plan assets) for each plan is reported in our balance sheet using a December 31 measurement date. Changes in the funded status of the plans are recognized in the year in which the changes occur and reported in comprehensive income (loss).

Income Taxes--We compute taxes on income in accordance with the tax rules and regulations where the income is earned. The income tax rates imposed by these taxing authorities vary. Taxable income may differ from pretax income for financial reporting purposes. We compute and recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of our assets and liabilities. Changes in tax rates and laws are reflected in income in the period when such changes are enacted. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is more-likely-than-not that the position will be sustained upon examination.

Earnings Per Share--Basic earnings per share is determined by dividing the income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed similarly to basic earnings per share except that the weighted-average number of shares is increased to include the effect of stock awards that were granted and outstanding during the period.

Revenue Recognition--Revenues from residential and commercial services are recognized as the services are provided and amounts are determined to be collectible. Revenues from contractual arrangements, primarily with utility services customers, are recognized based on costs incurred to total estimated contract costs. During the performance of such contracts, estimated final contract prices and costs are periodically reviewed and revisions are made, as required, to the revenue recognized. On cost-plus-fee contracts, revenue is recognized to the extent of costs incurred plus a proportionate amount of fees earned, and on time-and-material contracts, revenue is recognized to the extent of billable rates times hours worked, plus material and other reimbursable costs incurred. Revisions arise in the normal course of providing services to utility services customers and generally relate to changes in contract specifications and cost allowability. Such revisions are recorded when realization is probable and can be reliably estimated.

Concentration of Credit Risk--Credit risk represents the accounting loss that would be recognized if the counterparties failed to perform as contracted. The principal financial instruments subject to credit risk follow:

Cash--To limit our exposure, we transact our business and maintain banking relationships with high credit-quality financial institutions.

Accounts Receivable--Our residential and commercial customers are located geographically throughout the United States and Canada and, as to commercial customers, within differing industries; thus, minimizing credit risk. The credit exposure of utility services customers is directly affected by conditions within the utility industries as well as the financial condition of individual customers. One utility customer approximated 12% of revenues during 2016, 11% in 2015 and 8% in 2014. To reduce credit risk, we evaluate the credit of customers, but generally do not require advance payments or collateral. Exposure to losses on receivables is principally dependent on each customer’s financial condition.

Foreign Currency Translation and Transactions--Assets and liabilities of our Canadian operations are translated into U.S. dollars using year-end exchange rates, and revenues and expenses are translated using exchange rates as determined throughout the year. Gains or losses resulting from translation are included in the consolidated balance sheet, classified in shareholders’ equity as a separate component of accumulated other comprehensive income (loss). Gains or losses resulting from Canadian-dollar transactions with the Canadian operations are translated to U.S. dollars at the rates of exchange prevailing at the dates of the transactions. The effect of the transactions gain or loss is classified in the statement of operations as a component of other nonoperating income (expense), net.

F-10

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

B. Summary of Significant Accounting Policies (continued)

Interest Rate Risk Management--We have entered into interest rate contracts, from time-to-time, with the objective of altering interest rate exposures related to variable rate debt. In the interest rate contracts, we have agreed with a financial institution to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated on an agreed-upon notional principal amount.

Comprehensive Income (Loss)--Comprehensive income (loss) includes net income and other comprehensive income or loss. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but are excluded from net income as these amounts are recorded directly as an adjustment to shareholders’ equity, net of tax.

C. Correction of an Error

The Davey 401KSOP and ESOP Plan includes a put option for the Company’s common shares distributed from the Davey 401KSOP and ESOP Plan. Shares are distributed from the Davey 401KSOP and ESOP Plan to former participants of the plan, their beneficiaries, donees or heirs (each, a “participant”). Since our common shares are not readily tradeable on an established market, participants who receive a distribution of common shares from the Davey 401KSOP and ESOP Plan have two60-day periods in which they may require the Company to purchase the distributed shares at a per share price equal to their fair value. The first 60-day period begins to run upon the distribution of shares by the trustee of the Davey 401KSOP and ESOP Plan; if the participant does not exercise the put option within this period, an additional 60-day period will begin to run on the first anniversary of the date the shares were distributed by the trustee. Once the put option is exercised, the Company is obligated to repurchase the shares for cash. The common shares held by the Davey 401KSOP and ESOP Plan as well as shares distributed from the Davey 401KSOP and ESOP Plan, which remain subject to redemption (collectively the "Davey 401KSOP and ESOP Plan Related Shares" were previously classified in permanent equity. Due to the Company’s obligation under the put option, the Davey 401KSOP and ESOP Plan Related Shares are now recorded at fair value and classified as temporary equity in the mezzanine section of the consolidated balance sheets. The effects of the error correction on the consolidated balance sheets are shown below. The statements of consolidated shareholders' equity have also been restated as a result of the error correction. See Notes M and O. The below amounts also reflect the effects of the stock split described in Note B.

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2016		Correction			Stock Split			December 31, 2016
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	124,201		$	—		$	124,201
Common shares	21,457		(2,751		)	17,151			35,857
Additional paid-in Capital	23,886		17,740			—			41,626
Retained earnings	290,292		(139,190		)	(17,151		)	133,951

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2015		Correction			Stock Split			December 31, 2015
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	127,089		$	—		$	127,089
Common shares	21,457		(3,467		)	17,151			35,141
Additional paid-in capital	17,815		6,525			—			24,340
Retained earnings	270,605		(130,147		)	(17,151		)	123,307

F-11

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

C. Correction of an Error (continued)

The effect of the error correction and stock split on the affected beginning balances (December 31, 2013) are shown below:

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2013		Correction			Stock Split			December 31, 2013
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	113,694		$	—		$	113,694
Common shares	21,457		(4,307		)	17,151			34,301
Additional paid-in capital	5,008		(5,008		)	—			—
Retained earnings	230,975		(104,379		)	(17,151		)	109,445

D. Recent Accounting Guidance

Accounting Standards Adopted in 2016

Accounting Standards Update 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments--In September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 simplifies the reporting of adjustments to the provisional amounts recorded for a business combination during the measurement period by eliminating the requirement to retrospectively account for those adjustments. Companies are required to present separately, on the face of the income statement, or disclose in the notes to the financial statements, the impact on current period earnings by line item that would have been recorded in previous periods if the adjustment to the provisional amounts were recognized as of the acquisition date. The amendments in ASU 2015-16 became effective January 1, 2016 and requires prospective application to qualifying business combinations.

Accounting Standards Update 2015-03, Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs--In April 2015, the FASB issued ASU 2015-03, “Imputation of Interest (Sub-Topic 835.30): Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. During the first quarter of 2016, we retrospectively adopted this standard, which resulted in a reduction of other noncurrent assets and long-term debt of $471 as of December 31, 2015 in the consolidated balance sheet.

Accounting Standards Update 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern--In August 2014, the FASB issued ASU 2014-15, "Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern" to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related note disclosures. As of December 31, 2016, the Company adopted ASU 2014-15, which had no impact on the Company's consolidated financial statements.

Accounting Standards Not Yet Adopted

Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)--In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on how cash receipts and cash payments related to eight specific cash flow issues are presented and classified in the statement of cash flows, with the objective of reducing the existing diversity in practice. The update is effective for annual periods beginning after December 15, 2017, which for Davey Tree would be January 1, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2016-15 to have a material impact on our consolidated financial statements.

F-12

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

D. Recent Accounting Guidance (continued)

Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting--In March 2016, the FASB issued ASU 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” with the objective to simplify several aspects of the accounting for share-based payment transactions, including: the income tax consequences; classification of awards as either equity or liabilities; classification of certain items on the statement of cash flows; and, accounting for forfeitures. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, which for Davey Tree would be January 1, 2017. Early adoption is permitted. Management is currently in the process of evaluating the impact the new standard will have on the Company’s consolidated financial statements.

Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606)--In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which will replace all current U.S. GAAP guidance on revenue recognition and eliminate all industry-specific guidance.

The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The underlying principle is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration for which the entity expects in exchange for those goods and services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances.

The guidance also requires enhanced information to be presented in the financial statements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers.

Subsequent to the issuance of ASU 2014-09, the FASB has provided additional implementation guidance updates related to ASU 2014-09, including:

a. ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (‘Update 2015-14’),” which responded to stakeholders’ requests to defer the effective date of the guidance in ASU 2014-09.

b. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net ) (‘Update 2016-08’),” which clarifies the implementation guidance on principal versus agent considerations.

c. ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (‘Update 2016-10’),” which clarifies multiple aspects of Topic 606.

d. ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (‘Update 2016-12’),” which provides clarifying guidance in a few narrow areas and adds some practical expedients to the guidance.

The effective date and the transition requirements for the Updates are the same as the effective date of Topic 606 ASU 2015-14, which becomes effective for Davey Tree beginning with the first quarter 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The FASB also affirmed its proposal to permit all entities to apply the new revenue standard early, but not before the original effective date, which for Davey Tree would be first quarter 2017. The new revenue guidance will supersede existing revenue guidance affecting our Company, and may also affect our business processes and our information technology systems.

Management has assembled an internal project team and is reviewing our contracts and agreements with our customers under the provisions of the new standard. The Company currently expects revenue recognition for many of its services to remain unchanged, except for the interim recognition of certain variable, incentive-based components of contracts due to the timing of revenue recognition. The Company is also in the process of evaluating the disclosure requirements under the standard and any necessary changes to our systems, policies and controls as a result. We plan to adopt ASU 2014-09 using the modified retrospective approach effective January 1, 2018.

F-13

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

D. Recent Accounting Guidance (continued)

Accounting Standards Update 2016-02, Leases (Topic 842)--In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and, (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. The new standard is effective for interim and annual periods beginning after December 15, 2018, which for Davey Tree would be January 1, 2019. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. We are currently evaluating the impact of the new standard on our consolidated financial statements.

E. Business Combinations

Our investments in businesses were: (a) $4,888 in 2016, including liabilities assumed of $216 and debt issued of $875; (b) $4,149 in 2015, including no liabilities assumed and debt issued of $1,500; and (c) $12,853 in 2014, including $1,078 liabilities assumed and debt issued of $2,080.

The net assets of the businesses acquired are accounted for under the acquisition method and were recorded at their fair values at the dates of acquisition. The excess of the purchase price over the estimated fair values of the net assets acquired was recorded as an increase in goodwill of approximately $817 in 2016 (all of which is deductible for tax purposes), $1,410 in 2015 (all of which is deductible for tax purposes) and $4,624 goodwill in 2014 (all of which is deductible for tax purposes).

The results of operations of acquired businesses have been included in the consolidated statements of operations beginning as of the effective dates of acquisition. The effect of these acquisitions on our consolidated revenues and results of operations, either individually or in the aggregate, for the years ended December 31, 2016, 2015 or 2014 was not significant.

F. Accounts Receivable, Net and Supplemental Balance Sheet Information

Accounts receivable, net, consisted of the following:

	December 31,
	2016		2015
Accounts receivable	$	128,202	$	104,567
Receivables under contractual arrangements	21,541		19,142
	149,743		123,709
Less allowances for doubtful accounts	3,609		3,708
	$	146,134	$	120,001

Receivables under contractual arrangements consist of work-in-process in accordance with the terms of contracts, primarily, with utility services customers.

F-14

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

F. Accounts Receivable, Net and Supplemental Balance Sheet Information (continued)

The following items comprise the amounts included in the balance sheets:

	December 31,
Other current assets	2016		2015
Refundable income taxes	$	548	$	2,952
Other	1,315		918
Total	$	1,863	$	3,870

	December 31,
Other assets, noncurrent	2016		2015
Assets invested for self-insurance	$	15,492	$	17,167
Investment--cost-method affiliate	1,168		1,172
Deferred income taxes	11,129		11,521
Other	3,565		2,089
Total	$	31,354	$	31,949

	December 31,
Accrued expenses	2016		2015
Employee compensation	$	18,438	$	18,176
Accrued compensated absences	9,215		8,607
Self-insured medical claims	2,961		2,347
Customer advances, deposits	2,997		2,564
Income taxes payable	953		—
Taxes, other than income	2,166		3,517
Other	929		935
Total	$	37,659	$	36,146

	December 31,
Other liabilities, noncurrent	2016		2015
Pension and retirement plans	$	15,982	$	14,296
Other	4,837		3,382
Total	$	20,819	$	17,678

F-15

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

G. Supplemental Operating Information

Other Nonoperating (Expense) Income, Net

Other nonoperating (expense) income, net, included in the statements of operations follows:

	Year Ended December 31,
	2016			2015			2014
Other nonoperating expense, net	$	(3,989	)	$	(5,744	)	$	(3,050	)

Other nonoperating (expense) income, net, includes foreign currency (i) gains of $113 for 2016, (ii) losses of $854 for 2015, and (iii) losses of $235 for 2014 on the intercompany balances of our Canadian operations.

H. Supplemental Cash Flow Information

Supplemental cash flow information follows: 

	Year Ended December 31,
Supplemental cash flow information	2016			2015			2014
Interest paid	$	4,329		$	3,386		$	2,948
Income taxes paid, net	10,578			16,679			13,577
Noncash transactions:
Debt issued for purchases of businesses	$	875		$	1,500		$	2,080
Detail of acquisitions:
Assets acquired:
Receivables	$	—		$	—		$	1,852
Operating supplies	157			—			61
Prepaid expense	55			—			213
Equipment	2,485			1,264			1,726
Deposits and other	—			11			558
Intangibles	2,191			2,874			8,443
Liabilities assumed	(216		)	—			(1,078		)
Debt issued for purchases of businesses	(875		)	(1,500		)	(2,080		)
Cash paid	$	3,797		$	2,649		$	9,695

F-16

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

I. Identified Intangible Assets and Goodwill, Net

The carrying amount of the identified intangibles and goodwill acquired in connection with our investments in businesses were as follows:

	Weighted-Average Amortization Period (Years)		December 31, 2016				December 31, 2015
			Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists/relationships	2.6	years	$	17,822	$	15,171	$	16,805	$	13,764
Employment-related	2.6	years	7,032		6,386		6,811		6,008
Tradenames	2.6	years	5,634		4,860		5,502		4,539
Total			30,488		$	26,417	29,118		$	24,311
Less accumulated amortization			26,417				24,311
Identified intangibles, net			4,071				4,807
Unamortized intangible assets:
Goodwill	Not amortized		30,305				29,474
			$	34,376			$	34,281

The changes in the carrying amounts of goodwill, by segment, for the year ended December 31, 2016 follow:

	Balance at January 1, 2016		Acquisitions		Translation and Other Adjustments		Balance at December 31, 2016
Utility	$	3,424	$	—	$	—	$	3,424
Residential and Commercial	26,050		817		14		26,881
Total	$	29,474	$	817	$	14	$	30,305

Estimated future aggregate amortization expense of intangible assets--The estimated aggregate amortization expense of intangible assets, as of December 31, 2016, in each of the next five years follows:

	Estimated Future Amortization Expense
Year ending December 31, 2017	$	1,705
2018	885
2019	664
2020	512
2021	232

J. Short and Long-Term Debt and Commitments Related to Letters of Credit

Short-term debt consisted of the following:

	December 31,
	2016		2015
Current portion of long-term debt	$	16,701	$	15,501

F-17

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

J. Short and Long-Term Debt and Commitments Related to Letters of Credit (continued)

At December 31, 2016, we also had unused short-term lines of credit with several banks totaling $7,110, generally at the banks' prime rate or LIBOR plus a margin adjustment of .75% to 1.50%. Long-term debt consisted of the following:

	December 31,
	2016		2015
Revolving credit facility
Swing-line borrowings	$	10,000	$	2,500
LIBOR borrowings	57,000		52,000
	67,000		54,500
Senior unsecured notes	24,000		30,000
Term loans	16,151		16,105
	107,151		100,605
Less debt issuance costs	333		471
Less current portion	16,701		15,501
	$	90,117	$	84,633

Revolving Credit Facility and 5.09% Senior Unsecured Notes--In November 2013, the Company amended its revolving credit facility. The amended and restated credit agreement, which expires in November 2018, permits borrowings as defined up to $175,000 including a letter of credit sublimit of $100,000 and a swing-line commitment of $15,000. Under certain circumstances, the amount available under the revolving credit facility may be increased to $210,000. The revolving credit facility contains certain affirmative and negative covenants customary for this type of facility and includes financial covenant ratios with respect to a maximum leverage ratio and a maximum balance sheet leverage ratio.

On July 22, 2010, we issued $30,000 of 5.09% Senior Unsecured Notes, Series A, due July 22, 2020 (the "5.09% Senior Notes"). The 5.09% Senior Notes were issued pursuant to a Master Note Purchase Agreement (the “Purchase Agreement”), between the Company and the purchasers of the 5.09% Senior Notes. The net proceeds of the 5.09% Senior Notes were used to pay down borrowings under our revolving credit facility.

The 5.09% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commenced on July 22, 2016 (thesixth anniversary of issuance).  The Purchase Agreement contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios.

As of December 31, 2016, we had unused commitments under the revolving credit facility approximating$103,929, and$71,071committed, which consisted of borrowings of$67,000 and issued letters of credit of$4,071. Borrowings outstanding bear interest, at Davey Tree’s option, of either (a) the base rate or (b) LIBOR plus a margin adjustment ranging from .75% to 1.50%--with the margin adjustments in both instances based on the Company's leverage ratio at the time of borrowing. The base rate is the greater of (i) the agent bank’s prime rate, (ii) LIBOR plus 1.5%, or (iii) the federal funds rate plus .5%. A commitment fee ranging from .10% to .25% is also required based on the average daily unborrowed commitment.

Term Loans, Weighted-Average Interest Rate--The weighted-average interest on the term loans approximated 3.56% at December 31, 2016 and 3.55% at December 31, 2015.

Aggregate Maturities of Long-Term Debt--Aggregate maturities of long-term debt for the five years subsequent to December 31, 2016 were as follows: 2017--$16,701; 2018--$73,829; 2019--$6,160; 2020--$6,169; and, 2021--$4,292.

Accounts Receivable Securitization Facility--On May 9, 2016, Davey Tree entered into a one-year agreement with a bank for an accounts receivable securitization facility (the “AR securitization facility”), whereby Davey Tree has pledged a first priority security interest in certain trade receivables in exchange for the bank issuing letters of credit (“LCs”) with a committed facility limit of $60,000.

F-18

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

J. Short and Long-Term Debt and Commitments Related to Letters of Credit (continued)

As of December 31, 2016, we had issued LCs of $58,150 under the terms of the AR securitization facility.

Under the AR securitization facility, Davey Tree transfers by selling or contributing current and future trade receivables to a wholly-owned, bankruptcy-remote financing subsidiary which pledges a perfected first priority security interest in the trade receivables--equal to the issued LCs as of December 31, 2016--to the bank in exchange for the bank issuing LCs.

Fees payable to the bank include: (a) an LC issuance fee, payable on each settlement date, in the amount of .90% per annum on the aggregate amount of all LCs outstanding plus outstanding reimbursement obligations (e.g., arising from drawn LCs), if any, and (b) an unused LC fee, payable monthly, equal to (i) .35% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is greater than or equal to 50% of the facility limit and (ii) .45% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is less than 50% of the facility limit. If an LC is drawn and the bank is not immediately reimbursed in full for the drawn amount, any outstanding reimbursement obligation will accrue interest at a per annum rate equal to a reserve-adjusted LIBOR or, in certain circumstances, a base rate equal to the higher of (i) the bank’s prime rate and (ii) the federal funds rate plus .50% and, following any default, 2.00% plus the greater of (a) adjusted LIBOR and (b) a base rate equal to the higher of (i) the bank’s prime rate and (ii) the federal funds rate plus .50%.

The agreements underlying the AR securitization facility contains various customary representations and warranties, covenants, and default provisions which provide for the termination and acceleration of the commitments under the AR securitization facility in circumstances including, but not limited to, failure to make payments when due, breach of a representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness.

Total Commitments Related to Issued Letters of Credit--As of December 31, 2016, total commitments related to issued letters of credit were $64,225, of which $4,071 were issued under the revolving credit facility, $58,150 were issued under the AR securitization facility, and $2,004 were issued under short-term lines of credit. As of December 31, 2015, total commitments related to issued letters of credit were $59,350, of which $57,347 were issued under the revolving credit facility and $2,003 were issued under short-term lines of credit.

K. Self-Insurance Accruals

Components of our self-insurance accruals for workers’ compensation, vehicle liability and general liability follow:

	December 31,
	2016		2015
Workers' compensation	$	38,811	$	35,304
Present value discount	2,236		1,937
	36,575		33,367
Vehicle liability	4,763		5,880
General liability	21,500		21,092
Total	62,838		60,339
Less current portion	23,092		22,553
Noncurrent portion	$	39,746	$	37,786

F-19

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

K. Self-Insurance Accruals (continued)

The changes in our self-insurance accruals and the discount rate used for the workers’ compensation accrual are summarized in the table below.

	December 31,
	2016			2015
Balance, beginning of year	$	60,339		$	58,893
Provision for claims	33,404			33,499
Payment of claims	30,905			32,053
Balance, end of year	$	62,838		$	60,339
Workers' compensation discount rate	2.20		%	2.20		%

L. Lease Obligations

Assets acquired under capital leases and included in property and equipment consisted of the following:

	December 31,
	2016		2015
Equipment	$	2,528	$	—
Less accumulated amortization	160		—
	$	2,368	$	—

We also lease facilities under noncancelable operating leases, which are used for district office and warehouse operations. These leases extend for varying periods of time up to five years and, in some cases, contain renewal options. Minimum rental commitments under all capital and noncancelable operating leases, as of December 31, 2016, were as follows:

	Lease Obligations
Minimum lease obligations	Capital		Operating
Year ending December 31, 2017	$	171	$	6,369
2018	271		4,559
2019	756		3,380
2020	632		2,398
2021	515		1,164
2022 and after	—		1,266
Total minimum lease payments	2,345		$	19,136
Amounts representing interest	2
Present value of net minimum lease payments	2,343
Less current portion	170
Long-term capital lease obligations, December 31, 2016	$	2,173

Total rent expense under all operating leases was $7,536 in 2016, $7,398 in 2015 and $6,554 in 2014.

F-20

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

M. Common Shares, Redeemable Common Shares and Preferred Shares

We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017 including all common share and per share data.

Preferred Shares--We have authorized a class of 4,000,000 preferred shares, no par value, of which none were issued.

Redeemable Common Shares-Our Davey 401KSOP and ESOP Plan includes a put option for shares of the Company’s common stock distributed from the plan. Due to the Company’s obligation under the put option, shares held in the Davey 401KSOP and ESOP Plan as well as distributed shares subject to the put option are reclassified from permanent equity to temporary equity. The number of redeemable common shares for each of the three years in the period ended December 31, 2016 was as follows: 2016--7,056,904; 2015--7,773,052; and 2014--8,217,131.

Common Shares--The number of common shares authorized is 48,000,000, par value $1.00. The number of common shares issued during each of the three years in the period ended December 31, 2016 was as follows: 2016--35,856,856; 2015-- 35,140,708; and 2014--34,696,629. The number of shares in the treasury for each of the three years in the period ended December 31, 2016 was as follows: 2016--17,990,620; 2015--17,427,132; and 2014--16,583,894.

Our common and redeemable common shares are not listed or traded on an established public trading market, and market prices are, therefore, not available. Semiannually, an independent stock valuation firm determines the fair market value of our common and redeemable common shares based upon our performance and financial condition. Since 1979, we have provided a ready market for all shareholders through our direct purchase of their common shares, although we are under no obligation to do so (other than repurchases pursuant to the put option under the Davey 401KSOP and ESOP Plan, as described in Note O). During 2016, purchases of common shares, both redeemable and common, totaled 1,492,082 shares for $25,290 in cash; we also had direct sales to directors and employees of 24,242 shares for $397, excluding those shares issued through either the exercise of options or the Employee Stock Purchase Plan. We also sold 89,972 shares to our 401(k) plan for $1,488and issued 206,308 shares to participant accounts to satisfy our liability for the 2015 employer match in the amount of $3,373. The liability accrued at December 31, 2016 for the 2016 employer match was $3,661. There were also 297,262 shares purchased during 2016 under the Employee Stock Purchase Plan.

Common and Redeemable Shares Outstanding--The table below reconciles the activity of the common and redeemable shares outstanding:

	Common Shares		Redeemable
	Net of Treasury Shares		Shares		Total
	As Restated		As Restated		As Restated
Shares outstanding, December 31, 2014	18,112,735		8,217,131		26,329,866
Shares purchased	(919,699	)	(727,955	)	(1,647,654	)
Shares sold	291,874		283,876		575,750
Stock subscription offering, employee cash purchases	86,142		—		86,142
Options exercised	142,524		—		142,524
Shares outstanding, December 31, 2015	17,713,576		7,773,052		25,486,628
Shares purchased	(479,807	)	(1,012,275	)	(1,492,082	)
Shares sold	321,657		296,127		617,784
Stock subscription offering, employee cash purchases	48,730		—		48,730
Options exercised	262,080		—		262,080
Shares outstanding, December 31, 2016	17,866,236		7,056,904		24,923,140

On December 31, 2016, we had 24,923,140 common and redeemable shares outstanding, employee options exercisable to purchase 750,896 common shares, partially-paid subscription for 833,440 common shares and purchase rights outstanding for 338,382 common shares.

F-21

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

M.    Common Shares, Redeemable Common Shares and Preferred Shares (continued)

Stock Subscription Offering--Beginning May 2012, the Company offered to eligible employees and nonemployee directors the right to subscribe to common shares of the Company at $9.85 per share in accordance with the provisions of The Davey Tree Expert Company 2004 Omnibus Stock Plan and the rules of the Compensation Committee of the Company's Board of Directors (collectively, the "plan"). The offering period ended on August 1, 2012 and resulted in the subscription of 1,275,428 common shares for $12,563 at $9.85 per share.

Under the plan, a participant in the offering purchasing common shares for an aggregate purchase price of less than $5 had to pay with cash. All participants (excluding Company directors and officers) purchasing $5 or more of the common shares had an option to finance their purchase through a down-payment of at least 10% of the total purchase price and a seven-year promissory note for the balance due with interest at 2%. Payments on the promissory note can be made either by payroll deductions or annual lump-sum payments of both principal and interest.

Common shares purchased under the plan have been pledged as security for the payment of the promissory note and the common shares will not be issued until the promissory note is paid-in-full. Dividends will be paid on all subscribed shares, subject to forfeiture to the extent that payment is not ultimately made for the shares.

All participants in the offering purchasing in excess of $5 of common shares were granted a "right" to purchase one additional common share at a price of $9.85 per share for every three common shares purchased under the plan. As a result of the stock subscription, employees were granted rights to purchase 423,600 common shares. Each right may be exercised at the rate of one-seventh per year and will expire seven years after the date that the right was granted. Employees may not exercise a right should they cease to be employed by the Company.

N. Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of net income and other adjustments that relate to foreign currency translation adjustments and defined benefit pension plan adjustments. We do not provide income taxes on currency translation adjustments, as the earnings of our Canadian operations are considered to be indefinitely reinvested.

F-22

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

N. Accumulated Other Comprehensive Income (Loss) (continued)

The following summarizes the components of other comprehensive income (loss) accumulated in shareholders’ equity:

	Foreign Currency Translation Adjustments			Defined Benefit Pension Plans			Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2014	$	1,647		$	(6,040	)	$	(4,393	)
Unrealized gains (losses)	(2,798		)	—			(2,798		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			2,786			2,786
Tax effect	—			(1,095		)	(1,095		)
Unrecognized amounts from defined benefit pension plans	—			(9,923		)	(9,923		)
Tax effect	—			3,900			3,900
Net of tax amount	(2,798		)	(4,332		)	(7,130		)
Balance at December 31, 2014	$	(1,151	)	$	(10,372	)	$	(11,523	)
Unrealized gains (losses)	(5,093		)	—			(5,093		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			4,774			4,774
Tax effect	—			(1,878		)	(1,878		)
Unrecognized amounts from defined benefit pension plans	—			538			538
Tax effect	—			(212		)	(212		)
Net of tax amount	(5,093		)	3,222			(1,871		)
Balance at December 31, 2015	$	(6,244	)	$	(7,150	)	$	(13,394	)
Unrealized gains (losses)	744			—			744
Amounts reclassified from accumulated other comprehensive income (loss)	—			2,844			2,844
Tax effect	—			(1,137		)	(1,137		)
Unrecognized amounts from defined benefit pension plans	—			(2,032		)	(2,032		)
Tax effect	—			813			813
Net of tax amount	744			488			1,232
Balance at December 31, 2016	$	(5,500	)	$	(6,662	)	$	(12,162	)

The amounts reclassified from accumulated other comprehensive income (loss) related to defined benefit pension plans for 2016, 2015 and 2014 are included in net periodic pension expense and classified in the statement of operations as costs and expenses, general and administrative.

O. The Davey 401KSOP and Employee Stock Ownership Plan

On March 15, 1979, we consummated a plan, which transferred control of the Company to our employees. As a part of this plan, we initially sold 120,000 common shares (presently, 23,040,000 common shares adjusted for stock splits) to our Employee Stock Ownership Trust (“ESOT”) for $2,700. The Employee Stock Ownership Plan (“ESOP”), in conjunction with the related ESOT, provided for the grant to certain employees of certain ownership rights in, but not possession of, the common shares held by the trustee of the ESOT. Annual allocations of shares have been made to individual accounts established for the benefit of the participants.

Defined Contribution and Savings Plans--Most employees are eligible to participate in The Davey 401KSOP and ESOP. Effective January 1, 1997, the plan commenced operations and retained the existing ESOP participant accounts and incorporated a deferred savings plan (a "401(k) plan") feature. Participants in the 401(k) plan are allowed to make before-tax

F-23

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

O.    The Davey 401KSOP and Employee Stock Ownership Plan (continued)

contributions, within Internal Revenue Service established limits, through payroll deductions. Effective January 1, 2009 we match, in either cash or our common shares, 100% of the first one percent and 50% of the next three percent of each participant's before-tax contribution, limited to the first four percent of the employee's compensation deferred each year. All nonbargaining domestic employees who attained age 21 and completed one year of service are eligible to participate. In May 2004, we adopted the 401K Match Restoration Plan, a defined contribution plan that supplements the retirement benefits of certain employees that participate in the savings plan feature of The Davey 401KSOP and ESOP Plan, but are limited in contributions because of tax rules and regulations.

The Davey 401KSOP and ESOP Plan includes a put option for shares of the Company’s common stock distributed from the plan. Shares are distributed from the Davey 401KSOP and ESOP Plan to former participants of the plan, their beneficiaries, donees or heirs (each, a “participant”). Since our common stock is not currently traded on an established securities market, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value for two60-day periods after distribution of the shares from the Davey 401KSOP and ESOP. The fair value of distributed shares subject to the put option totaled $1,148 and $6,829 as of December 31, 2016 and December 31, 2015, respectively. The fair value of the shares held in the Davey 401KSOP and ESOP totaled $123,053 and $120,260 as of December 31, 2016 and December 31, 2015, respectively. Due to the Company’s obligation under the put option, the distributed shares subject to the put option and the shares held in the Davey 401KSOP and ESOP (collectively referred to as 401KSOP and ESOP related shares) are classified as temporary equity in the mezzanine section of the consolidated balance sheets and totaled $124,201, $127,089 and $123,668 as of December 31, 2016, December 31, 2015 and December 31, 2014, respectively. Changes in the fair value of the Davey 401KSOP and ESOP Plan related shares are reflected in retained earnings while net share activity associated with the Davey 401KSOP and ESOP Plan related shares are first reflected in additional paid-in capital and then retained earnings if additional paid in-capital is insufficient. See Note B.

Total compensation for these plans, consisting primarily of the employer match, was $3,661 in 2016, $3,373 in 2015, and $3,055 in 2014.

P. Stock-Based Compensation

Our shareholders approved the 2014 Omnibus Stock Plan (the “2014 Stock Plan”) at our annual meeting of shareholders on May 20, 2014. The 2014 Stock Plan replaced the expired 2004 Omnibus Stock Plan (the “2004 plan”) previously approved by the shareholders in 2004. The 2014 Stock Plan is administered by the Compensation Committee of the Board of Directors and will remain in effect for ten years. All directors of the Company and employees of the Company and its subsidiaries are eligible to participate in the 2014 Stock Plan. The 2014 Stock Plan (similar to the 2004 plan) continues the maintenance of the Employee Stock Purchase Plan, as well as provisions for the grant of stock options and other stock-based incentives. The 2014 Stock Plan provides for the grant of five percent of the number of the Company’s common shares outstanding as of the first day of each fiscal year plus the number of common shares that were available for grant of awards, but not granted, in prior years. In no event, however, may the number of common shares available for the grant of awards in any fiscal year exceed ten percent of the common shares outstanding as of the first day of that fiscal year. Common shares subject to an award that is forfeited, terminated, or canceled without having been exercised are generally added back to the number of shares available for grant under the 2014 Stock Plan. We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017.

Stock-based compensation expense under all share-based payment plans—our Employee Stock Purchase Plan, stock option plans, stock-settled stock appreciation rights, and performance-based restricted stock units—included in the results of operations follows:

	Year Ended December 31,
	2016		2015		2014
Compensation expense, all share-based payment plans	$	2,811	$	2,327	$	1,860
Income tax benefit	823		694		549

F-24

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

P. Stock-Based Compensation (continued)

Stock-based compensation consisted of the following:

Employee Stock Purchase Plan--Under the Employee Stock Purchase Plan, all full-time employees with one year of service are eligible to purchase, through payroll deduction, common shares. Employee purchases under the Employee Stock Purchase Plan are at 85% of the fair market value of the common shares--a 15% discount. Purchases under the plan, at 85% of the fair market value of the common shares, have been as follows:

	Year Ended December 31,
	2016		2015		2014
Number of employees participating	1,952		1,750		1,684
Shares purchased during the year	297,262		251,558		230,058
Weighted-average per share purchase price paid	$	14.17	$	13.11	$	11.54
Cumulative shares purchased since 1982	18,051,330		17,754,068		17,502,510

Compensation costs are recognized as payroll deductions are made. The 15% discount of total shares purchased under the plan resulted in compensation cost recognized of $727 in 2016, $569 in 2015 and $463 in 2014.

Stock Option Plans--The stock options outstanding were awarded under a graded vesting schedule, measured at fair value, and have a term of ten years. Compensation costs for stock options are recognized over the requisite service period on the straight-line recognition method. Compensation cost recognized for stock options was $596 in 2016, $494 in 2015 and $398 in 2014.

Stock-Settled Stock Appreciation Rights--During the year ended December 31, 2016, the Compensation Committee of the Board of Directors awarded 300,200 Stock-Settled Stock Appreciation Rights (“SSARs”) to certain management employees and nonemployee directors, which vest ratably over five years. A stock-settled stock appreciation right is an award that allows the recipient to receive common stock equal to the appreciation in the fair market value of our common stock between the date the award was granted and the conversion date of the shares vested.

The following table summarizes the SSARs as of December 31, 2016: 

Stock-Settled Stock Appreciation Rights	Number of Rights		Weighted- Average Award Date Value		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2016	661,414		$	2.33
Granted	300,200		3.19
Forfeited	—		—
Vested	(217,952	)	2.05
Unvested, December 31, 2016	743,662		$	2.75	2.8 years	$	1,515	$	12,605
Employee SSARs	737,664		$	2.76	2.9 years	$	1,513	$	12,503
Nonemployee Director SSARs	5,998		$	1.01	0.4 years	$	2	$	102

Compensation costs for SSARs are determined using a fair-value method and amortized over the requisite service period. Compensation expense for SSARs totaled $591 in 2016, $489 in 2015 and $384 in 2014.

Performance-Based Restricted Stock Units--During the year ended December 31, 2016, the Compensation Committee of the Board of Directors awarded 70,030 Performance-Based Restricted Stock Units ("PRSUs") to certain management employees.

F-25

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

P. Stock-Based Compensation (continued)

Similar awards were made in prior periods. The awards vest over specified periods. The following table summarizes PRSUs as of December 31, 2016:

Performance-Based Restricted Stock Units	Number of Stock Units		Weighted- Average Grant Date Value		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2016	283,970		$	11.99
Granted	70,030		15.80
Forfeited	—		—
Vested	(49,042	)	9.82
Unvested, December 31, 2016	304,958		$	13.21	2.5 years	$	2,119	$	5,169
Employee PRSUs	266,168		$	13.05	2.7 years	$	1,843	$	4,512
Nonemployee Director PRSUs	38,790		$	14.35	1.7 years	$	276	$	657

Compensation cost for awards is determined using a fair-value method, amortized over the requisite service period. “Intrinsic value” is defined as the amount by which the fair market value of a common share of stock exceeds the exercise price of a performance-based restricted stock unit. Compensation expense on restricted stock awards totaled $897 in 2016, $775 in 2015 and $615 in 2014.

The fair value of each award was estimated on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on historical volatility of our share prices and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock-based awards is derived from the output of the binomial model and represents the period of time that awards granted are expected to be outstanding.

The fair values of stock-based awards granted were estimated at the dates of grant with the following weighted-average assumptions:

	Year Ended December 31,
	2016		2015		2014
Volatility rate	10.6	%	10.9	%	11.2	%
Risk-free interest rate	1.8	%	2.1	%	2.6	%
Expected dividend yield	.7	%	.7	%	1.1	%
Expected life of awards (years)	9.5		9.3		9.4

F-26

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

P. Stock-Based Compensation (continued)

General Stock Option Information--The following table summarizes activity under the stock option plans for the year ended December 31, 2016:

Stock Options	Number of Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Outstanding, January 1, 2016	1,633,488		$	10.79
Granted	296,000		16.35
Exercised	(275,392	)	6.19
Forfeited	(54,800	)	14.40
Outstanding, December 31, 2016	1,599,296		$	12.49	6.8 years	$	1,886	$	7,141
Exercisable, December 31, 2016	750,896		$	10.42	5.3 years			$	4,903

“Intrinsic value” is defined as the amount by which the market price of a common share of stock exceeds the exercise price of an option. Information regarding the stock options outstanding at December 31, 2016 is summarized below:

Stock Options  Exercise Price		Number Outstanding	Weighted-Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable	Weighted- Average Exercise Price
Employee options:
$	8.00	177,706	2.8 years	$	8.00	177,706	$	8.00
8.30		190,190	3.8 years	8.30		190,190	8.30
11.60		363,300	6.5 years	11.60		204,500	11.60
13.20		346,100	7.5 years	13.20		125,900	13.20
15.05		267,000	8.5 years	15.05		52,600	15.05
16.35		255,000	9.5 years	16.35		—	16.35
		1,599,296	6.8 years	$	12.49	750,896	$	10.42

We issue common shares from treasury upon the exercise of stock options, stock-settled stock appreciation rights, performance-based restricted stock units or purchases under the Employee Stock Purchase Plan.

Tax Benefits of Stock-Based Compensation--Our total income tax benefit from share-based awards--as recognized in our consolidated statement of operations--for the last three years was: $823 in 2016, $694 in 2015, and $549 in 2014. Tax benefits for share-based awards are accrued as stock compensation expense and recognized in our consolidated statement of

operations. Tax benefits on share-based awards are realized when: (a) stock-settled stock appreciation rights are exercised; (b) performance-based restricted stock units vest; and, (c) stock options are exercised.

When actual tax benefits realized exceed the tax benefits accrued for share-based awards, we realize an excess tax benefit. We had excess tax benefits of: $1,113 in 2016, $352 in 2015, and $354 in 2014.

Q. Defined Benefit Pension Plans

We have defined benefit pension plans covering certain current and retired U.S. employees. Plans include: (i) the Employee Retirement Plan (“ERP”) for employees hired prior to January 1, 2009, (ii) a Supplemental Executive Retirement Plan

F-27

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

Q. Defined Benefit Pension Plans (continued)

(“SERP”) for which future benefit accruals were frozen effective at the end of the second quarter 2015; and, (iii) a Benefit Restoration Pension Plan (“Restoration Plan”) for certain key employees hired prior to January 1, 2009.

Both the SERP and the Restoration Plan are defined benefit plans under which nonqualifed supplemental pension benefits will be paid in addition to amounts paid under our qualified retirement defined benefit pension plans, which are subject to Internal Revenue Service limitations on covered compensation.

Effective December 31, 2008, enhanced benefits were implemented to our defined contribution savings plan--The Davey 401KSOP and ESOP--at which time, the Board of Directors approved an amendment to freeze the ERP and the Restoration Plan. The ERP was closed to new participants after December 2008. In connection with the freeze of the ERP, the Restoration Plan and the SERP, (a) benefits currently being paid to retirees continue and (b) benefits accrued through December 31, 2008 for employees covered by the ERP were not affected. All ERP, Restoration Plan and SERP balances remain intact and participant account balances, as well as service credits for vesting and retirement eligibility, remain intact and continue in accordance with the terms of the plans. Only future accruals were eliminated with the: (i) the 2008 freeze of the ERP and Restoration Plan; and (ii) the 2015 freeze of the SERP.

During the first quarter 2016, the Company terminated the plan for bargaining employees not covered by union pension plans ("SPP") for which future benefit accruals were frozen effective December 31, 2013. We purchased a guaranteed group annuity contract from a third-party insurance company, which unconditionally and irrevocably guarantees the full payment of all annuity payments to the 94 participants. In connection with the plan termination, we made cash contributions of $522 to fully fund the SPP obligation and recorded a settlement charge of $453.

The change in benefit obligations and the fair value of plans assets follows:

	December 31,
	2016			2015
Change in benefit obligation
Projected benefit obligation at beginning of year	$	27,228		$	35,876
Service cost	370			35
Interest cost	1,243			1,486
Actuarial (gains)/losses	1,150			(2,445		)
New longevity assumptions	(447		)	(340		)
Amendments	341			—
Curtailments	—			(404		)
Settlements	(4,873		)	(6,186		)
Benefits paid	(179		)	(794		)
Projected benefit obligation at end of year	$	24,833		$	27,228
Accumulated benefit obligation at end of year	$	24,833		$	27,228

F-28

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

Q. Defined Benefit Pension Plans (continued)

	December 31,
	2016			2015
Change in fair value of plan assets
Fair value of plan assets at beginning of year	$	15,216		$	21,567
Actual return on plan assets	400			(135		)
Plan expenses, including PBGC premiums	(727		)	(536		)
Employer contributions	1,672			1,300
Settlements	(4,873		)	(6,186		)
Benefits paid	(179		)	(794		)
Fair value of plan assets at end of year	$	11,509		$	15,216

The settlements in the change in benefit obligation and in the change in fair value of plan assets arise from: (i) termination of the SPP plan during the first quarter 2016; (ii) lump sum offering to 224 participants in our ERP plan during the fourth quarter 2016 and (iii) purchase during the fourth quarter 2015 of a guaranteed group annuity contract from a third-party insurance company which unconditionally and irrevocably guarantees the full payment of all annuity payments to the participants that were receiving payments from the ERP plan, with the third-party insurance company having assumed all investment risk associated with funding participant payments.

	December 31,
	2016			2015
Funded status of the plans
Fair value of plan assets	$	11,509		$	15,216
Projected benefit obligation	24,833			27,228
Funded status of the plans	$	(13,324	)	$	(12,012	)

	December 31,
	2016			2015
Amounts reported in the consolidated balance sheets
Current liability	$	(83	)	$	(499	)
Noncurrent liability	(13,241		)	(11,513		)
Funded status of the plans	$	(13,324	)	$	(12,012	)

Amounts included in accumulated other comprehensive income (loss), related to our defined benefit pension plans follow:

	At December 31, 2016				At December 31, 2015
	Pretax		Net of Tax		Pretax		Net of Tax
Amounts reported in accumulated other comprehensive income
Unrecognized net actuarial loss	$	10,675	$	6,456	$	11,836	$	7,150
Unrecognized prior service cost	341		206		—		—
	$	11,016	$	6,662	$	11,836	$	7,150

To the extent actuarial losses exceed the greater of 10% of the projected benefit obligation or market-related value of plan assets, the unrecognized actuarial losses will be amortized straight-line on a plan-by-plan basis, over the remaining expected

F-29

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

Q. Defined Benefit Pension Plans (continued)

future working lifetime of active participants, except for the SERP, which, after the plan freeze, is being amortized based on the remaining life expectancy of plan participants. The total amount of unrecognized prior service cost was amortized straight-line on a plan-by-plan basis. The total amortization associated with these amounts that is expected to be recognized in net periodic benefit expense for 2017 follows: 

	Year ending December 31, 2017
	Pretax		Net of Tax
Amortization of Costs Expected to be Recognized Next Year
Unrecognized net actuarial loss	$	949	$	569
Unrecognized prior service cost	64		38
	$	1,013	$	607

The aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets for plans in which the fair value of plan assets is less than either the projected benefit obligation or accumulated benefit obligation follow: 

	December 31,
	2016		2015
For pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation	$	24,833	$	27,228
Accumulated benefit obligation	24,833		27,228
Fair value of plan assets	11,509		15,216

The actuarial assumptions follow. The discount rates were used to measure the year-end benefit obligation and compute pension expense for the subsequent year.

	December 31,
	2016		2015		2014
Actuarial assumptions
Discount rate	4.20	%	4.70	%	4.30	%
Expected long-term rate of return on plan assets	5.00		7.25		7.50

F-30

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

Q. Defined Benefit Pension Plans (continued)

Net periodic benefit expense (income) associated with the defined benefit pension plans included the following components:

	Year Ended December 31,
	2016			2015			2014
Components of pension expense (income)
Service costs--increase in benefit obligation earned	$	370		$	35		$	51
Interest cost on projected benefit obligation	1,243			1,486			1,618
Expected return on plan assets	(1,044		)	(1,576		)	(1,993		)
Curtailment loss	—			49			—
Settlement loss	2,346			2,915			2,065
Amortization of net actuarial loss	951			1,400			708
Amortization of prior service cost	—			6			14
Net pension expense of defined benefit pension plans	$	3,866		$	4,315		$	2,463

Investment Strategy and Risk Management for Plan Assets--Our investment strategy is to manage the plan assets in order to pay retirement benefits to plan participants while minimizing our cash contributions over the life of the plans. This is accomplished by preserving capital through diversification in high-quality investments through the use of investment managers and mutual funds. Performance of all investment managers and mutual funds is monitored quarterly and evaluated over rolling three-to-five year periods.

The plan assets are divided into asset classes that include equity, fixed income, and alternative investments and allocated among target allocations to include: (a) equities of a minimum 20% to a maximum of 40%; (b) fixed income and cash of a minimum 50% to a maximum of 70%; and, (c) alternative investments of a minimum of zero to a maximum of 15%. The purpose of the equity asset class is to provide a total return that simultaneously provides for growth in principal and current income while at the same time preserving the purchasing power of the plan assets, even though assets invested in equities have greater market volatility and risk. The purpose of the fixed income asset class is to provide a deflation hedge, to reduce the overall volatility of plan assets and to produce current income in support of the needs of the plan. The purpose of alternative investments is the diversification benefit of alternative strategies.

Equity assets are to be allocated within certain ranges among the asset categories of large cap growth and value; small/midcap growth and value; and international growth and value. Each of the equity asset categories are assigned to an appropriate asset manager or mutual fund. Fixed income assets are allocated within a certain range to mutual funds of fixed income securities. Alternative investment assets are allocated within a certain range to mutual funds and may include the use of leverage. Short-selling, securities lending, financial futures, margins, options, and derivatives are not used. Investments in nonmarketable securities, commodities, or direct ownership of real estate are prohibited.

Rate-of-return-on-assets assumptions are made by major category of plan assets according to historical analysis, tempered for an assessment of possible future influences that could cause the returns to exceed or trail long-term patterns. The overall expected long-term rate-of-return-on-plan assets net of investment manager fees as at December 31, 2016, was 5.00%.

F-31

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

Q. Defined Benefit Pension Plans (continued)

Plan Assets--The fair values of our pension plan assets at December 31, 2016 by asset category, using the three-level hierarchy of fair value inputs, were as follows:  

			Fair Value Measurements at December 31, 2016 Using:
Description	Total Carrying Value at December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset Category
Money market funds	$	2,882	$	—	$	2,882	$	—
U.S. large-cap equities
Growth	687		687		—		—
Value	729		729		—		—
U.S. small/mid-cap equities
Growth	339		339		—		—
Value	339		339		—		—
International equities
Growth	443		443		—		—
Value	514		514		—		—
Fixed income	4,669		4,669		—		—
Multiclass world-allocation mutual funds	907		907		—		—
	$	11,509	$	8,627	$	2,882	$	—

The fair values of our pension plan assets at December 31, 2015 by asset category, using the three-level hierarchy of fair value inputs, were as follows:

			Fair Value Measurements at December 31, 2015 Using:
Description	Total Carrying Value at December 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset Category
Money market funds	$	2,794	$	—	$	2,794	$	—
U.S. large-cap equities
Growth	1,869		1,869		—		—
Value	1,492		1,492		—		—
U.S. small/mid-cap equities
Growth	781		781		—		—
Value	1,003		1,003		—		—
International equities
Growth	1,270		1,270		—		—
Value	1,183		1,183		—		—
Fixed income	3,035		3,035		—		—
Multiclass world-allocation mutual funds	1,789		1,789		—		—
	$	15,216	$	12,422	$	2,794	$	—

F-32

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

Q. Defined Benefit Pension Plans (continued)

Within the pension plan asset categories, the Level 1 investments are publicly traded in active markets and are valued using the net asset value or closing price of the investment at the measurement date. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.

Expected Benefit Plan Contributions--It is our practice to make contributions to comply with the minimum funding requirements of ERISA. In accordance with such practice, contributions totaling $1,504 are required for 2017; however, we may make additional discretionary contributions.

Expected Benefit Plan Payments--The benefits, as of December 31, 2016, expected to be paid to defined-benefit plan participants in each of the next five years, and in the aggregate for the five years thereafter, follow:

	Participants Benefits
Estimated future payments
Year ending December 31, 2017	$	659
2018	878
2019	981
2020	1,088
2021	1,167
Years 2022 to 2026	6,677

Multiemployer Defined Benefit Pension Plans--In providing services to our Utility Services customers, we contribute to multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees.

These plans generally provide retirement benefits to participants based on their service to contributing employers. We do not administer these multiemployer plans. In general, these plans are managed by a board of trustees with the unions appointing certain trustees and other contributing employers of the plan appointing certain members. We generally are not represented on the board of trustees.

The risks of participating in these multiemployer plans are different from single-employer plans in that: (a) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be assumed by the remaining participating employers; and, (c) if we choose to stop participating in a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

Our participation in the multiemployer defined benefit pension plans is summarized in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The most recent Pension Protection Act of 2006 (the “PPA”) zone status is from the Form 5500, “Annual Return/Report of Employee Benefit Plan,” filed by the plan and certified by the plan's actuary. The PPA zone status describes plans that are underfunded. Among other factors, plans in the “critical” red zone are generally less than 65% funded; plans in the “endangered” yellow zone are less than 80% funded; and, plans in the “safe” green zone are at least 80% funded.

F-33

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

Q. Defined Benefit Pension Plans (continued)

Pension Fund	EIN/Pension Plan Number	Pension Protection Act Zone Status		FIP/RP Status Pending Implemented	Davey Tree Contributions						Surcharge Imposed	Expiration Dates of Bargaining Agreement
		2016	2015		2016		2015		2014
National Electric Benefit Fund	53-0181657/001	Green	Green	No	$	712	$	774	$	743	No	Ranging from June 30, 2017 to December 31, 2018
Eighth District Electrical Pension Fund	84-6100393/001	Green	Green	No	90		119		105		No	December 31, 2017
					$	802	$	893	$	848

We were not listed in the Form 5500 for either plan as having provided more than 5% of the total contributions.

Both the National Electric Benefit Fund and the Eighth District Electrical Pension Fund are green zone status--safe--which represents at least 80% funded and does not require a “financial improvement plan” (“FIP”) or a “rehabilitation plan” (“RP”).

We are party to nine collective-bargaining agreements with the National Electric Benefit Fund, with expiration dates ranging from June 30, 2017 to December 31, 2018, and one collective-bargaining agreement with Eighth District Electrical Pension Fund with an expiration date of December 31, 2017.

R. Income Taxes

Income before income taxes was attributable to the following sources:

	Year Ended December 31,
	2016		2015		2014
United States	$	35,867	$	32,807	$	30,380
Canada	1,377		2,451		7,920
Total	$	37,244	$	35,258	$	38,300

The provision for income taxes follows:

	Year Ended December 31,
	2016		2015			2014
Currently payable:
Federal	$	12,216	$	13,337		$	13,159
State	2,286		2,487			2,524
Canadian	398		611			2,127
Total current	14,900		16,435			17,810
Deferred taxes	60		(2,975		)	(2,679		)
Total taxes on income	$	14,960	$	13,460		$	15,131

F-34

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

R. Income Taxes (continued)

A reconciliation of the expected statutory U.S. federal rate to our actual effective income tax rate follows:

	Year Ended December 31,
	2016		2015		2014
Statutory U.S. federal tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	4.0		3.7		3.9
Effect of Canadian income taxes	(.2	)	(.5	)	(1.7	)
Nondeductible expenses	2.2		2.3		1.9
ESOP dividend deduction	(.7	)	(.8	)	(.7	)
Uncertain tax adjustments and audit settlement	.2		1.5		1.6
Valuation allowance	—		(2.2	)	—
All other, net	(.3	)	(.8	)	(.5	)
Effective income tax rate	40.2	%	38.2	%	39.5	%

Deferred income taxes reflect the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  A valuation allowance is recorded when it is more-likely-than-not that an income tax benefit will not be realized.

Significant components of our noncurrent net deferred tax assets and liabilities at December 31, were as follows:

	December 31,
	2016		2015
Deferred tax assets:
Self-insurance accruals	$	21,967	$	21,136
Accrued compensated absences	3,540		3,189
Accrued expenses and other liabilities	1,394		1,255
Accrued stock compensation	2,502		2,144
Defined benefit pension plans	4,019		3,721
Foreign tax credit carryforward	575		680
Other future deductible amounts, net	4,213		4,354
	38,210		36,479
Deferred tax liabilities:
Intangibles	297		150
Prepaid expenses	3,510		3,138
Property and equipment	23,274		21,670
	27,081		24,958
Net deferred tax assets--noncurrent	$	11,129	$	11,521

We treat all of our Canadian subsidiary earnings through December 31, 2016 as permanently reinvested and have not provided any U.S. federal or state tax thereon. As of December 31, 2016, approximately $28,983 of undistributed earnings attributable to our Canadian operations was considered to be indefinitely invested. Presently, our intention is to reinvest the earnings permanently.

If, in the future, these earnings are distributed to the U.S. in the form of dividends or otherwise, or if the Company determines such earnings will be remitted in the foreseeable future, the Company would be subject to U.S. income taxes and Canadian

F-35

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

R. Income Taxes (continued)

withholding taxes. It is not practicable to estimate the amount of taxes that would be payable upon remittance of these earnings given the various tax planning alternatives that we could employ should we decide to repatriate those earnings.

As at December 31, 2015, we released a valuation allowance that had been recorded in prior years related to the foreign tax credit carryforward that arose in 2010--wherein we repatriated earnings in 2010 of our Canadian operations due to capital in Canada in excess of current and future projected needs. Management presently believes that it is more-likely-than-not that the deferred tax asset, related to the foreign tax credit that expires in 2020, will be realized. The criteria considered in making the determination included the ability to utilize tax-planning strategies, historical and projected operating results, and the period of time over which the foreign tax credit can be utilized.

The amount of income taxes we pay is subject to audit by U.S. federal, state, local and Canadian tax authorities, which may result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is highly judgmental. Uncertain tax positions are recognized only if they are more-likely-than-not to be upheld during examination based on their technical merits. The measurement of the uncertain tax position is based on the largest benefit amount that is more-likely-than-not (determined on a cumulative probability basis) to be realized upon settlement of the matter. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate settlement, a further charge to expense may result.

The balance of unrecognized benefits and the amount of related interest and penalties at December 31, were as follows:

	December 31,
	2016		2015
Unrecognized tax benefits	$	2,532	$	2,557
Portion, if recognized, would reduce tax expense and effective tax rate	2,053		1,981
Accrued interest on unrecognized tax benefits	107		115

We recognize interest accrued related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense.

The Company is routinely under audit by U.S. federal, state, local and Canadian authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. During the fourth quarter 2013, the U.S. Internal Revenue Service completed its audit of the Company's U.S. income tax returns for 2010 and 2011 and, during 2010, Canada Revenue Agency completed its audit of the Company's Canadian operations for 2006, 2007 and 2008. With the exception of U.S. state jurisdictions, the Company is no longer subject to examination by tax authorities for the years through 2012. As of December 31, 2016, we believe it is reasonably possible that the total amount of unrecognized tax benefits will not significantly increase or decrease.

The changes in our unrecognized tax benefits are summarized in the table below:

	Year Ended December 31,
	2016			2015			2014
Balance, beginning of year	$	2,557		$	1,949		$	1,221
Additions based on tax positions related to the current year	402			642			587
Additions for tax positions of prior years	51			52			234
Reductions for tax positions of prior years	(39		)	(63		)	(79		)
Lapses in statutes of limitations	(439		)	(23		)	(14		)
Balance, end of year	$	2,532		$	2,557		$	1,949

F-36

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

S. Earnings Per Share Information

Earnings per share is computed as follows (adjusted for the two-for-one stock split of our common shares effective June 1, 2017):

	Year Ended December 31,
	2016		2015		2014
Income available to common shareholders:
Net income	$	22,284	$	21,798	$	23,169
Weighted-average shares:
Basic:
Outstanding	25,378,600		26,058,736		26,674,396
Partially-paid share subscriptions	833,440		872,162		968,050
Basic weighted-average shares	26,212,040		26,930,898		27,642,446
Diluted:
Basic from above	26,212,040		26,930,898		27,642,446
Incremental shares from assumed:
Exercise of stock subscription purchase rights	142,746		135,428		109,648
Exercise of stock options and awards	892,568		888,254		724,458
Diluted weighted-average shares	27,247,354		27,954,580		28,476,552
Share data:
Earnings per share--basic	$	.85	$	.81	$	.84
Earnings per share--diluted	$	.82	$	.78	$	.81

T. 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.

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.

F-37

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

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

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

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

F-38

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

T. 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

U. Fair Value Measurements and Financial Instruments

Financial Accounting Standards Board Accounting Standard Codification 820, “Fair Value of Measurements and Disclosures (“Topic 820”)” defines fair value based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principal or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability.

Valuation Hierarchy--Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The hierarchy prioritizes the inputs into three broad levels:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 2 inputs are observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data.

Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

F-39

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

U. Fair Value Measurements and Financial Instruments (continued)

Our assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and December 31, 2015, were as follows:

			Fair Value Measurements at December 31, 2016 Using:
	Total Carrying Value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Description	December 31, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Assets invested for self-insurance, classified as other assets, noncurrent	$	15,492	$	15,492	$	—	$	—
Defined benefit pension plan assets	11,509		8,627		2,882		—
Liabilities:
Deferred compensation	$	1,837	$	—	$	1,837	$	—

			Fair Value Measurements at December 31, 2015 Using:
	Total Carrying Value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Description	December 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Assets invested for self-insurance, classified as other assets, noncurrent	$	17,167	$	17,167	$	—	$	—
Defined benefit pension plan assets	15,216		12,422		2,794		—
Liabilities:
Deferred compensation	$	1,574	$	—	$	1,574	$	—

The estimated fair value of the deferred compensation--classified as Level 2--is based on the value of the Company's common shares, determined by independent valuation.

F-40

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

U. Fair Value Measurements and Financial Instruments (continued)

Fair Value of Financial Instruments--The fair values of our current financial assets and current liabilities, including cash, accounts receivable, accounts payable, and accrued expenses among others, approximate their reported carrying values because of their short-term nature. The assets invested for self-insurance are money market funds--classified as Level 1--based on quoted market prices of the identical underlying securities in active markets. Financial instruments classified as noncurrent liabilities and their carrying values and fair values were as follows:

	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving credit facility, noncurrent	$	67,000	$	67,000	$	54,500	$	54,500
Senior unsecured notes	18,000		18,509		24,000		24,837
Term loans, noncurrent	7,623		9,854		6,604		7,008
Total	$	92,623	$	95,363	$	85,104	$	86,345

The carrying value of our revolving credit facility approximates fair value--classified as Level 2--as the interest rates on the amounts outstanding are variable. The fair value of our senior unsecured notes and term loans--classified as Level 2--is determined based on expected future weighted-average interest rates with the same remaining maturities.

Market Risk--In the normal course of business, we are exposed to market risk related to changes in foreign currency exchange rates, changes in interest rates and changes in fuel prices. We do not hold or issue derivative financial instruments for trading or speculative purposes. In prior years, we have used derivative financial instruments to manage risk, in part, associated with changes in interest rates and changes in fuel prices. Presently, we are not engaged in any hedging or derivative activities.

V. Commitments and Contingencies

Letters of Credit

At December 31, 2016, we were contingently liable to our principal banks in the amount of $64,225 for letters of credit outstanding primarily related to insurance coverage.

Surety Bonds

In certain circumstances, we have performance obligations that are supported by surety bonds in connection with our contractual commitments.

Litigation

We are party to a number of lawsuits, threatened lawsuits and other claims arising out of the normal course of business. Management is of the opinion that liabilities which may result are adequately covered by insurance, or reflected in the self-insurance accruals, and would not be material in relation to the financial position or results of operations.

F-41

The Davey Tree Expert Company

Notes to Consolidated Financial Statements--(Continued)

December 31, 2016

(In thousands, except share data)

W. Quarterly Results of Operations (Unaudited)

The following is a summary of the results of operations for each quarter of 2016 and 2015. We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017.

	Fiscal 2016, Three Months Ended
	Apr 2			July 2		Oct 1		Dec 31
Revenues	$	180,833		$	224,763	$	223,719	$	216,363
Gross profit (revenues less costs and expenses, operating)	57,660			87,631		81,386		77,515
Income (loss) from operations	(5,120		)	24,286		15,042		11,163
Net income (loss)	(4,188		)	13,309		8,141		5,022
Net income (loss) per share -- Basic	$	(.17	)	$	.52	$	.32	$	.18
Net income (loss) per share -- Diluted	$	(.17	)	$	.50	$	.31	$	.18
ESOT valuation per share	$	16.35		$	16.35	$	16.95	$	17.60

	Fiscal 2015, Three Months Ended
	Apr 4			Jul 4		Oct 3		Dec 31
Revenues	$	174,292		$	224,773	$	224,981	$	197,858
Gross profit (revenues less costs and expenses, operating)	54,434			87,432		81,808		69,331
Income (loss) from operations	(3,985		)	27,796		16,177		4,120
Net income (loss)	(3,528		)	15,932		8,174		1,220
Net income (loss) per share -- Basic	$	(.14	)	$	.61	$	.29	$	.05
Net income (loss) per share -- Diluted	$	(.14	)	$	.59	$	.28	$	.05
ESOT valuation per share	$	15.05		$	15.05	$	15.75	$	16.35
Fourth quarters 2016 and 2015 include a decrease in casualty insurance expense that had the effect of increasing the fourth quarter gross profit for 2016 and 2015 by approximately $2,810 and $2,589, respectively.

F-42

EX-21

Exhibit 21

Subsidiaries of the Registrant

Name	Jurisdiction of Organization
Davey Tree Surgery Company	Ohio
Davey Tree Expert Co. of Canada, Limited	Canada
The Care of Trees, Inc.	Illinois

The Registrant has other subsidiaries that are not in the aggregate “significant subsidiaries” as defined in Rule 1-02(w) of Regulation S-X.

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-8 No. 333-123767) pertaining to The Davey Tree Expert Company 2004 Omnibus Stock Plan;

(2) Registration Statements (Form S-8 No. 333-172738, Form S-8 No. 333-187205, Form S-8 No. 333-203865 and Form S-8 No. 333-211465) pertaining to The Davey 401KSOP and ESOP;

(3) Registration Statements (Form S-8 No. 333-196224) pertaining to The Davey Tree Expert Company 2014 Omnibus Stock Plan;

of our report dated March 14, 2017 (except for the effect of the error correction discussed in Notes C, M and O, and the effect of the stock split discussed in Note B, as to which the date is November 21, 2017), with respect to the consolidated financial statements of The Davey Tree Expert Company and our report dated March 14, 2017 (except for the effect of the material weakness described in the sixth paragraph of that report, as to which the date is November 21, 2017) with respect to the effectiveness of internal control over financial reporting of The Davey Tree Expert Company, included in this Annual Report (Form 10-K/A) of The Davey Tree Expert Company for the year ended December 31, 2016.

/s/ Ernst & Young LLP

Akron, Ohio

November 21, 2017

EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of Chief Executive Officer

I, Patrick M. Covey, certify that:

1. I have reviewed this annual report on Form 10-K/A of The Davey Tree Expert Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 21, 2017	/s/ Patrick M. Covey
		Patrick M. Covey
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Certification of Chief Financial Officer

I, Joseph R. Paul, certify that:

1. I have reviewed this annual report on Form 10-K/A of The Davey Tree Expert Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 21, 2017	/s/ Joseph R. Paul
		Joseph R. Paul
		Executive Vice President, Chief Financial Officer and Secretary

EX-32.1

Exhibit 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Certification of Chief Executive Officer

I, Patrick M. Covey, Chairman and Chief Executive Officer of The Davey Tree Expert Company (the "Company"), do hereby certify in accordance with 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1.) The Annual Report on Form 10-K/A of the Company for the fiscal year ended December 31, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and,

(2.) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 21, 2017	/s/ Patrick M. Covey
		Patrick M. Covey
		President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Certification of Chief Financial Officer

I, Joseph R. Paul, Executive Vice President, Chief Financial Officer and Secretary of The Davey Tree Expert Company (the "Company"), do hereby certify in accordance with 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1.) The Annual Report on Form 10-K/A of the Company for the fiscal year ended December 31, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and,

(2.) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 21, 2017	/s/ Joseph R. Paul
		Joseph R. Paul
		Executive Vice President, Chief Financial Officer and Secretary

XML

Document and Entity Information Document - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 10, 2017	Jul. 02, 2016
Entity Information [Line Items]
Entity registrant name	DAVEY TREE EXPERT CO
Entity central index key	0000277638
Current fiscal year end date	--12-31
Entity filer category	Accelerated Filer
Document type	10-K/A
Document period end date	Dec. 31, 2016
Document fiscal year focus	2016
Document fiscal period focus	FY
Amendment flag	false
Entity common stock, shares outstanding		24,930,758
Entity well-known seasoned issuer	No
Entity voluntary filers	No
Entity current reporting status	Yes
Entity public float			$ 358,707,925

XML

Consolidated Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash		$ 9,006	$ 16,030
Accounts receivable, net		146,134	120,001
Operating supplies		7,277	7,171
Prepaid expenses		14,493	13,862
Other current assets		1,863	3,870
Total current assets		178,773	160,934
Property and equipment:
Land and land improvements		16,263	16,135
Buildings and leasehold improvements		37,676	36,532
Equipment		534,711	504,527
Property and equipment		588,650	557,194
Less accumulated depreciation		409,214	390,772
Property and equipment, net		179,436	166,422
Other assets		31,354	31,949
Identified intangible assets and goodwill, net		34,376	34,281
Total assets		423,939	393,586
Current liabilities:
Short-term debt		16,701	15,501
Current portion of capital leases		170	0
Accounts payable		41,283	37,750
Accrued expenses		37,659	36,146
Self-insurance accruals		23,092	22,553
Total current liabilities		118,905	111,950
Long-term debt		72,194	60,801
Senior unsecured notes		17,923	23,832
Capital leases		2,173	0
Self-insurance accruals		39,746	37,786
Other liabilities		20,819	17,678
Total liabilities		271,760	252,047
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP): 7,057 and 7,773 shares at redemption value as of December 31, 2016 and 2015		124,201	127,089
Common shareholders' equity:
Common shares, $1.00 par value, per share; 48,000 shares authorized; 35,857 and 35,141 shares issued and outstanding before treasury shares and which excludes 7,057 and 7,773 shares subject to redemption as of December 31, 2016 and 2015	[1]	35,857	35,141
Additional paid-in capital	[1]	41,626	24,340
Common shares subscribed		8,209	8,591
Retained earnings	[1]	133,951	123,307
Accumulated other comprehensive loss		(12,162)	(13,394)
Stockholders' equity before treasury stock		207,481	177,985
Less: Cost of Common shares held in treasury; 17,991 shares in 2016 and 17,427 in 2015		176,530	159,429
Common shares subscription receivable		2,973	4,106
Common shareholders' equity		27,978	14,450
Total liabilities and shareholders' equity		$ 423,939	$ 393,586

[1] Adjusted for two-for-one stock split

XML

Consolidated Balance Sheets (Parenthetical)		12 Months Ended
		Dec. 31, 2016 $ / shares shares	Dec. 31, 2015 $ / shares shares
Common stock, par value | $ / shares		$ 1.00	$ 1.00
Common stock, shares authorized		48,000,000	48,000,000
Temporary Equity, Shares Outstanding	[1]	7,057,000	7,773,000
Common stock, shares issued	[1]	35,857,000	35,141,000
Common Stock, Shares, Outstanding		35,857,000	35,141,000
Treasury stock, shares	[1]	17,990,620	17,427,132
Stock split, conversion ratio		2

[1] Adjusted for two-for-one stock split

XML

Consolidated Statements of Operations $ in Thousands		12 Months Ended
		Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares
Revenues		$ 845,678	$ 821,904	$ 789,911
Costs and expenses:
Operating		541,486	528,899	508,677
Selling		152,106	144,234	140,027
General and administrative		61,789	59,798	54,970
Depreciation		47,284	44,677	40,970
Amortization of intangible assets		2,306	2,214	2,070
Gain on sale of assets, net		(4,664)	(2,026)	(806)
Costs and expenses		800,307	777,796	745,908
Income from operations		45,371	44,108	44,003
Other income (expense):
Interest expense		(4,393)	(3,355)	(2,948)
Interest income		255	249	295
Other		(3,989)	(5,744)	(3,050)
Income before income taxes		37,244	35,258	38,300
Income taxes		14,960	13,460	15,131
Net income		$ 22,284	$ 21,798	$ 23,169
Share data:
Earnings per share--basic | $ / shares	[1]	$ 0.85	$ 0.81	$ 0.84
Earnings per share--diluted | $ / shares	[1]	$ 0.82	$ 0.78	$ 0.81
Weighted-average shares outstanding:
Basic | shares	[1]	26,212,040	26,930,898	27,642,446
Diluted | shares	[1]	27,247,354	27,954,580	28,476,552
Dividends declared per share | $ / shares	[1]	$ 0.1	$ 0.1	$ 0.0925
Stock split, conversion ratio		2

[1] Adjusted for two-for-one stock split

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income	$ 22,284	$ 21,798	$ 23,169
Defined benefit pension plans:
Net (loss)/gain arising during the year	(1,219)	326	(6,023)
Amortization of defined benefit pension items:
Net actuarial loss	1,912	2,863	1,682
Prior service cost	205	(33)	(9)
Amortization of defined benefit pension items:	1,707	2,896	1,691
Defined benefit pension plan adjustments	(488)	(3,222)	4,332
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	1,232	(1,871)	(7,130)
Total other comprehensive income (loss), net of tax	1,232	(1,871)	(7,130)
Comprehensive income	$ 23,516	$ 19,927	$ 16,039

XML

Statements of Consolidated Shareholders' Equity - USD ($)	Total		Common shares	Additional paid-in capital	Common shares subscribed, unissued	Retained earnings	Accumulated other comprehensive income (loss), net of tax	Common shares held in treasury	Common shares subscription receivable
Reclassifications of temporary to permanent equity, shares			396,000
Reclassifications of Temporary to Permanent Equity			$ 396,000
Common shares, at beginning of year at Dec. 31, 2013			34,301,000
Balance at beginning of year, value at Dec. 31, 2013			$ 34,301,000	$ 0	$ 10,467,000	$ 109,445,000		$ (125,034,000)	$ 7,342,000
Share subscriptions, beginning balance, shares at Dec. 31, 2013					(1,062,000)				(1,062,000)
Balance at the beginning of the year at Dec. 31, 2013	$ (4,393,000)						$ (4,393,000)
Balance at beginning of year, shares at Dec. 31, 2013								16,036,000
Increase (decrease) in stockholders' equity [Roll Forward]
Shares purchased, value								$ (19,598,000)
Shares sold to employees, value				3,417,000				3,822,000
Subscription shares, issued, value				184,000				$ 794,000
Stock-based compensation				1,125,000
Common shares, subscribed, value					$ 0				$ 0
Common shares, subscribed, shares					0				0
Common shares, issued, value					$ (758,000)				$ (1,543,000)
Common shares, issued, shares					(78,000)				(78,000)
Cancellations, value					$ (328,000)				$ (199,000)
Cancellations, shares					(32,000)				(32,000)
Net income	23,169,000					23,169,000
Dividends						(2,674,000)
Currency translation adjustments							(2,798,000)
Defined benefit pension plans	4,332,000						(4,332,000)
Change for 401KSOP and ESOP related shares	(15,436,000)
Shares purchased, shares								1,454,000
Shares sold to employees, shares								(574,000)
Options exercised, shares								(232,000)
Subscription shares, issued, shares								(100,000)
Balance at ending of year, value at Dec. 31, 2014	12,824,000		$ 34,697,000	9,520,000	$ 9,381,000	114,504,000		$ (138,155,000)	$ 5,600,000
Share subscriptions, ending balance, shares at Dec. 31, 2014					(952,000)				(952,000)
Balance at ending of year, shares at Dec. 31, 2014			18,113,000					16,584,000
Balance at the end of the year at Dec. 31, 2014	$ (11,523,000)						(11,523,000)
Common shares, at end of year at Dec. 31, 2014	34,697,000	[1]	34,697,000
Increase (decrease) in stockholders' equity [Roll Forward]
Options exercised, value				(273,000)				$ (1,861,000)
Adjustments to additional paid in capital, other				5,067,000
Reclassifications of temporary to permanent equity, shares			444,000
Reclassifications of Temporary to Permanent Equity			$ 444,000
Shares purchased, value								(25,395,000)
Shares sold to employees, value				6,066,000				2,198,000
Subscription shares, issued, value				83,000				$ 698,000
Stock-based compensation				2,357,000
Common shares, subscribed, value					$ 0				$ 0
Common shares, subscribed, shares					0				0
Common shares, issued, value					$ (676,000)				$ (1,434,000)
Common shares, issued, shares					(68,000)				(68,000)
Cancellations, value					$ (114,000)				$ (60,000)
Cancellations, shares					(12,000)				(12,000)
Net income	$ 21,798,000					21,798,000
Dividends						(2,663,000)
Currency translation adjustments							(5,093,000)
Defined benefit pension plans	(3,222,000)						3,222,000
Change for 401KSOP and ESOP related shares	$ (10,332,000)
Shares purchased, shares	1,647,654							1,648,000
Shares sold to employees, shares	(575,750)							(576,000)
Options exercised, shares								(143,000)
Subscription shares, issued, shares								(86,000)
Balance at ending of year, value at Dec. 31, 2015	$ 14,450,000		$ 35,141,000	24,340,000	$ 8,591,000	123,307,000		$ (159,429,000)	$ 4,106,000
Share subscriptions, ending balance, shares at Dec. 31, 2015					(872,000)				(872,000)
Balance at ending of year, shares at Dec. 31, 2015	35,141,000		17,714,000					17,427,000
Balance at the end of the year at Dec. 31, 2015	$ (13,394,000)						(13,394,000)
Common shares, at end of year at Dec. 31, 2015	35,141,000	[1]	35,141,000
Increase (decrease) in stockholders' equity [Roll Forward]
Options exercised, value				(152,000)				$ (1,225,000)
Adjustments to additional paid in capital, other				6,466,000
Reclassifications of temporary to permanent equity, shares			716,000
Reclassifications of Temporary to Permanent Equity			$ 716,000
Shares purchased, value								(25,290,000)
Shares sold to employees, value				4,182,000				5,298,000
Subscription shares, issued, value				21,000				$ 449,000
Stock-based compensation				2,860,000
Common shares, subscribed, value	$ (12,563,000)				$ 0				$ 0
Common shares, subscribed, shares	(1,275,428)	[1]			0				0
Common shares, issued, value					$ (325,000)				$ (1,104,000)
Common shares, issued, shares					(32,000)				(32,000)
Cancellations, value					$ (57,000)				$ (29,000)
Cancellations, shares					(6,000)				(6,000)
Net income	$ 22,284,000					22,284,000
Dividends						(2,597,000)
Currency translation adjustments							744,000
Defined benefit pension plans	(488,000)						488,000
Change for 401KSOP and ESOP related shares	$ (9,043,000)
Shares purchased, shares	1,492,082	[1]						1,492,000
Shares sold to employees, shares	(617,784)							(617,000)
Options exercised, shares	(275,392)	[1]						(262,000)
Subscription shares, issued, shares								(49,000)
Balance at ending of year, value at Dec. 31, 2016	$ 27,978,000		$ 35,857,000	41,626,000	$ 8,209,000	$ 133,951,000		$ (176,530,000)	$ 2,973,000
Share subscriptions, ending balance, shares at Dec. 31, 2016					(834,000)				(834,000)
Balance at ending of year, shares at Dec. 31, 2016	35,857,000		17,866,000					17,991,000
Balance at the end of the year at Dec. 31, 2016	$ (12,162,000)						$ (12,162,000)
Common shares, at end of year at Dec. 31, 2016	35,857,000	[1]	35,857,000
Increase (decrease) in stockholders' equity [Roll Forward]
Options exercised, value				(992,000)				$ (2,442,000)
Adjustments to additional paid in capital, other				$ 11,215,000

[1] Adjusted for two-for-one stock split

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Statement of Consolidated Shareholders' Equity (Parenthetical) shares in Thousands, $ in Thousands		12 Months Ended
		Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) shares
Stock split, conversion ratio		2
At beginning of year | shares	[1]	35,857	35,141	34,697
Dividends declared per share | $ / shares	[1]	$ 0.1	$ 0.1	$ 0.0925
Shareholders' equity | $		$ 27,978	$ 14,450	$ 12,824
Common shares
At beginning of year | shares		35,857	35,141	34,697	34,301
Shareholders' equity | $		$ 35,857	$ 35,141	$ 34,697	$ 34,301

[1] Adjusted for two-for-one stock split

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Consolidated Statements of Cash Flow - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities
Net income	$ 22,284	$ 21,798	$ 23,169
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	47,284	44,677	40,970
Amortization	2,306	2,214	2,070
Gain on sale of assets	(4,664)	(2,026)	(806)
Deferred income taxes	60	(2,975)	(2,679)
Other	1,286	2,399	(5,638)
Changes in operating assets and liabilities:
Accounts receivable	(26,133)	(8,403)	(4,489)
Accounts payable and accrued expenses	2,454	1,722	1,206
Self-insurance accruals	2,499	1,446	2,116
Other assets, net	7,994	1,837	(6,640)
Adjustments to reconcile net income to net cash provided by operating activities	33,086	40,891	26,110
Net cash provided by operating activities	55,370	62,689	49,279
Capital expenditures:
Equipment	(54,147)	(52,466)	(46,228)
Land and buildings	(2,499)	(3,581)	(9,503)
Proceeds from sales of property and equipment	5,635	2,650	1,366
Purchases of businesses	(3,797)	(2,649)	(9,695)
Net cash used in investing activities	(54,808)	(56,046)	(64,060)
Financing activities
Revolving credit facility borrowings/(payments), net	12,500	10,000	24,500
Borrowings/(payments) of notes payable	656	6,720	(1,091)
Borrowings/(payments) of long-term debt and capital leases	(5,142)	(6,624)	5,695
Purchase of common shares for treasury	(25,290)	(25,395)	(19,598)
Sale of common shares from treasury	11,019	9,328	8,762
Cash received on common-share subscriptions	1,133	1,494	1,741
Dividends	(2,597)	(2,663)	(2,674)
Net cash (used in) provided by financing activities	(7,721)	(7,140)	17,335
Effect of exchange rate changes on cash	135	(1,888)	0
(Decrease) Increase in cash	(7,024)	(2,385)	2,554
Cash, beginning of year	16,030	18,415	15,861
Cash, end of year	$ 9,006	$ 16,030	$ 18,415

XML

Our Business

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Our Business

Our Business

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.

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.

We also maintain research, technical support and laboratory diagnostic facilities.

When we refer to “we,” “us,” “our,” “Davey Tree,” and the “Company,” we mean The Davey Tree Expert Company, unless the context indicates otherwise.

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation--The consolidated financial statements include the accounts of Davey Tree and our wholly-owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as codified in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). Intercompany accounts and transactions have been eliminated in consolidation.

Per Common Share Information--We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017 including all common share and per share data.

Use of Estimates in Financial Statement Preparation--The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts. Estimates are used for, but not limited to, accounts receivable valuation, depreciable lives of fixed assets, self-insurance accruals, and revenue recognition. Actual results could differ from those estimates.

Property and Equipment--Property and equipment are stated at cost. Repair and maintenance costs are expensed as incurred. Depreciation is computed for financial reporting purposes by the straight-line method for land improvements, building and leasehold improvements and by the declining-balance method for equipment, based on the estimated useful lives of the assets, as follows:

Land improvements	5 to 20 years
Buildings	5 to 30 years
Equipment	3 to 10 years
Leasehold improvements	Shorter of lease term or estimated useful life; ranging from 5-to-20 years

Intangible Assets--Intangible assets with finite lives, primarily customer lists, noncompete agreements and tradenames, are amortized by the straight-line method based on their estimated useful lives, ranging from one-to-ten years.

B. Summary of Significant Accounting Policies (continued)

Long-Lived Assets--We assess potential impairment to our long-lived assets, other than goodwill, when there is evidence that events or changes in circumstances have made recovery of the asset’s carrying value unlikely and the carrying amount of the asset exceeds the estimated future undiscounted cash flow. In the event the assessment indicates that the carrying amounts may not be recoverable, an impairment loss would be recognized to reduce the asset’s carrying amount to its estimated fair value based on the present value of the estimated future cash flows.

Goodwill--Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identified net assets acquired. Goodwill is not amortized, but tested for impairment annually or when events or circumstances indicate that impairment may have occurred. Annually, we perform the impairment tests for goodwill during the fourth quarter. Impairment of goodwill is tested at the reporting-unit level, which for us are also our business segments. Impairment of goodwill is tested by comparing the reporting unit’s carrying value, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using discounted projected cash flows. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. We conducted our annual impairment tests and determined that no impairment loss was required to be recognized in 2016 or for any prior periods. There were no events or circumstances from the date of our assessment through December 31, 2016 that would impact this conclusion.

Self-Insurance Accruals--We are generally self-insured for losses and liabilities related primarily to workers’ compensation, vehicle liability and general liability claims. We use commercial insurance as a risk-reduction strategy to minimize catastrophic losses. Ultimate losses are accrued based upon estimates of the aggregate liability for claims incurred using certain actuarial assumptions followed in the insurance industry and based on Company-specific experience.

Our self-insurance accruals include claims for which the ultimate losses will develop over a period of years. Accordingly, our estimates of ultimate losses can change as claims mature. Our accruals also are affected by changes in the number of new claims incurred and claim severity. The methods for estimating the ultimate losses and the total cost of claims were determined by third-party consulting actuaries; the resulting accruals are reviewed by management, and any adjustments arising from changes in estimates are reflected in income.

The workers' compensation accruals are discounted as the amount and timing of cash payments related to those accruals are reliably determinable given the nature of workers' compensation benefits and the level of historical claim volume to support the actuarial assumptions and judgments used to derive the expected loss payment pattern. The workers' compensation accruals are discounted using an interest rate that approximates the long-term investment yields over the expected payment pattern of unpaid losses.

Our self-insurance accruals are based on estimates and, while we believe that the amounts accrued are adequate and not excessive, the ultimate claims may be in excess of or less than the amounts provided.

Stock-Based Compensation--Stock-based compensation cost for all share-based payment plans is measured at fair value on the date of grant and recognized over the employee service period on the straight-line recognition method for awards expected to vest. The fair value of all stock-based payment plans—stock option plans, stock-settled stock appreciation rights, and performance-based restricted stock units as well as our Employee Stock Purchase Plan—is determined by the number of awards granted and the price of our common stock. The fair value of each award is estimated on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on historical volatility of our share prices and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock-based awards is derived from the output of the binomial model and represents the period of time that awards granted are expected to be outstanding.

B. Summary of Significant Accounting Policies (continued)

Defined Benefit Pension Plans--We record annual expenses relating to our defined benefit pension plans based on calculations that include various actuarial assumptions, including discount rates and expected long-term rates of return on plan assets. Actuarial assumptions are reviewed annually with modifications made to the assumptions, if necessary, based on current rates and trends. The effects of the actuarial gains or losses are amortized over future service periods. The funded status (that is, the projected benefit obligation less the fair value of plan assets) for each plan is reported in our balance sheet using a December 31 measurement date. Changes in the funded status of the plans are recognized in the year in which the changes occur and reported in comprehensive income (loss).

Income Taxes--We compute taxes on income in accordance with the tax rules and regulations where the income is earned. The income tax rates imposed by these taxing authorities vary. Taxable income may differ from pretax income for financial reporting purposes. We compute and recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of our assets and liabilities. Changes in tax rates and laws are reflected in income in the period when such changes are enacted. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is more-likely-than-not that the position will be sustained upon examination.

Earnings Per Share--Basic earnings per share is determined by dividing the income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed similarly to basic earnings per share except that the weighted-average number of shares is increased to include the effect of stock awards that were granted and outstanding during the period.

Revenue Recognition--Revenues from residential and commercial services are recognized as the services are provided and amounts are determined to be collectible. Revenues from contractual arrangements, primarily with utility services customers, are recognized based on costs incurred to total estimated contract costs. During the performance of such contracts, estimated final contract prices and costs are periodically reviewed and revisions are made, as required, to the revenue recognized. On cost-plus-fee contracts, revenue is recognized to the extent of costs incurred plus a proportionate amount of fees earned, and on time-and-material contracts, revenue is recognized to the extent of billable rates times hours worked, plus material and other reimbursable costs incurred. Revisions arise in the normal course of providing services to utility services customers and generally relate to changes in contract specifications and cost allowability. Such revisions are recorded when realization is probable and can be reliably estimated.

Concentration of Credit Risk--Credit risk represents the accounting loss that would be recognized if the counterparties failed to perform as contracted. The principal financial instruments subject to credit risk follow:

Cash--To limit our exposure, we transact our business and maintain banking relationships with high credit-quality financial institutions.

Accounts Receivable--Our residential and commercial customers are located geographically throughout the United States and Canada and, as to commercial customers, within differing industries; thus, minimizing credit risk. The credit exposure of utility services customers is directly affected by conditions within the utility industries as well as the financial condition of individual customers. One utility customer approximated 12% of revenues during 2016, 11% in 2015 and 8% in 2014. To reduce credit risk, we evaluate the credit of customers, but generally do not require advance payments or collateral. Exposure to losses on receivables is principally dependent on each customer’s financial condition.

Foreign Currency Translation and Transactions--Assets and liabilities of our Canadian operations are translated into U.S. dollars using year-end exchange rates, and revenues and expenses are translated using exchange rates as determined throughout the year. Gains or losses resulting from translation are included in the consolidated balance sheet, classified in shareholders’ equity as a separate component of accumulated other comprehensive income (loss). Gains or losses resulting from Canadian-dollar transactions with the Canadian operations are translated to U.S. dollars at the rates of exchange prevailing at the dates of the transactions. The effect of the transactions gain or loss is classified in the statement of operations as a component of other nonoperating income (expense), net.

B. Summary of Significant Accounting Policies (continued)

Interest Rate Risk Management--We have entered into interest rate contracts, from time-to-time, with the objective of altering interest rate exposures related to variable rate debt. In the interest rate contracts, we have agreed with a financial institution to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated on an agreed-upon notional principal amount.

Comprehensive Income (Loss)--Comprehensive income (loss) includes net income and other comprehensive income or loss. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but are excluded from net income as these amounts are recorded directly as an adjustment to shareholders’ equity, net of tax.

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Correction of an Error (Notes)

12 Months Ended

Dec. 31, 2016

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

Correction of an Error

The Davey 401KSOP and ESOP Plan includes a put option for the Company’s common shares distributed from the Davey 401KSOP and ESOP Plan. Shares are distributed from the Davey 401KSOP and ESOP Plan to former participants of the plan, their beneficiaries, donees or heirs (each, a “participant”). Since our common shares are not readily tradeable on an established market, participants who receive a distribution of common shares from the Davey 401KSOP and ESOP Plan have two60-day periods in which they may require the Company to purchase the distributed shares at a per share price equal to their fair value. The first 60-day period begins to run upon the distribution of shares by the trustee of the Davey 401KSOP and ESOP Plan; if the participant does not exercise the put option within this period, an additional 60-day period will begin to run on the first anniversary of the date the shares were distributed by the trustee. Once the put option is exercised, the Company is obligated to repurchase the shares for cash. The common shares held by the Davey 401KSOP and ESOP Plan as well as shares distributed from the Davey 401KSOP and ESOP Plan, which remain subject to redemption (collectively the "Davey 401KSOP and ESOP Plan Related Shares" were previously classified in permanent equity. Due to the Company’s obligation under the put option, the Davey 401KSOP and ESOP Plan Related Shares are now recorded at fair value and classified as temporary equity in the mezzanine section of the consolidated balance sheets. The effects of the error correction on the consolidated balance sheets are shown below. The statements of consolidated shareholders' equity have also been restated as a result of the error correction. See Notes M and O. The below amounts also reflect the effects of the stock split described in Note B.

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2016		Correction			Stock Split			December 31, 2016
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	124,201		$	—		$	124,201
Common shares	21,457		(2,751		)	17,151			35,857
Additional paid-in Capital	23,886		17,740			—			41,626
Retained earnings	290,292		(139,190		)	(17,151		)	133,951

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2015		Correction			Stock Split			December 31, 2015
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	127,089		$	—		$	127,089
Common shares	21,457		(3,467		)	17,151			35,141
Additional paid-in capital	17,815		6,525			—			24,340
Retained earnings	270,605		(130,147		)	(17,151		)	123,307

C. Correction of an Error (continued)

The effect of the error correction and stock split on the affected beginning balances (December 31, 2013) are shown below:

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2013		Correction			Stock Split			December 31, 2013
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	113,694		$	—		$	113,694
Common shares	21,457		(4,307		)	17,151			34,301
Additional paid-in capital	5,008		(5,008		)	—			—
Retained earnings	230,975		(104,379		)	(17,151		)	109,445

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Recent Accounting Guidance

12 Months Ended

Dec. 31, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recent Accounting Guidance

Recent Accounting Guidance

Accounting Standards Adopted in 2016

Accounting Standards Update 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments--In September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 simplifies the reporting of adjustments to the provisional amounts recorded for a business combination during the measurement period by eliminating the requirement to retrospectively account for those adjustments. Companies are required to present separately, on the face of the income statement, or disclose in the notes to the financial statements, the impact on current period earnings by line item that would have been recorded in previous periods if the adjustment to the provisional amounts were recognized as of the acquisition date. The amendments in ASU 2015-16 became effective January 1, 2016 and requires prospective application to qualifying business combinations.

Accounting Standards Update 2015-03, Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs--In April 2015, the FASB issued ASU 2015-03, “Imputation of Interest (Sub-Topic 835.30): Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. During the first quarter of 2016, we retrospectively adopted this standard, which resulted in a reduction of other noncurrent assets and long-term debt of $471 as of December 31, 2015 in the consolidated balance sheet.

Accounting Standards Update 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern--In August 2014, the FASB issued ASU 2014-15, "Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern" to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related note disclosures. As of December 31, 2016, the Company adopted ASU 2014-15, which had no impact on the Company's consolidated financial statements.

Accounting Standards Not Yet Adopted

Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)--In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on how cash receipts and cash payments related to eight specific cash flow issues are presented and classified in the statement of cash flows, with the objective of reducing the existing diversity in practice. The update is effective for annual periods beginning after December 15, 2017, which for Davey Tree would be January 1, 2018. Early adoption is permitted. We do not expect the adoption of ASU 2016-15 to have a material impact on our consolidated financial statements.

D. Recent Accounting Guidance (continued)

Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting--In March 2016, the FASB issued ASU 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” with the objective to simplify several aspects of the accounting for share-based payment transactions, including: the income tax consequences; classification of awards as either equity or liabilities; classification of certain items on the statement of cash flows; and, accounting for forfeitures. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, which for Davey Tree would be January 1, 2017. Early adoption is permitted. Management is currently in the process of evaluating the impact the new standard will have on the Company’s consolidated financial statements.

Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606)--In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which will replace all current U.S. GAAP guidance on revenue recognition and eliminate all industry-specific guidance.

The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The underlying principle is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration for which the entity expects in exchange for those goods and services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of the time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances.

The guidance also requires enhanced information to be presented in the financial statements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers.

Subsequent to the issuance of ASU 2014-09, the FASB has provided additional implementation guidance updates related to ASU 2014-09, including:

a. ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (‘Update 2015-14’),” which responded to stakeholders’ requests to defer the effective date of the guidance in ASU 2014-09.

b. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net ) (‘Update 2016-08’),” which clarifies the implementation guidance on principal versus agent considerations.

c. ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (‘Update 2016-10’),” which clarifies multiple aspects of Topic 606.

d. ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (‘Update 2016-12’),” which provides clarifying guidance in a few narrow areas and adds some practical expedients to the guidance.

The effective date and the transition requirements for the Updates are the same as the effective date of Topic 606 ASU 2015-14, which becomes effective for Davey Tree beginning with the first quarter 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The FASB also affirmed its proposal to permit all entities to apply the new revenue standard early, but not before the original effective date, which for Davey Tree would be first quarter 2017. The new revenue guidance will supersede existing revenue guidance affecting our Company, and may also affect our business processes and our information technology systems.

Management has assembled an internal project team and is reviewing our contracts and agreements with our customers under the provisions of the new standard. The Company currently expects revenue recognition for many of its services to remain unchanged, except for the interim recognition of certain variable, incentive-based components of contracts due to the timing of revenue recognition. The Company is also in the process of evaluating the disclosure requirements under the standard and any necessary changes to our systems, policies and controls as a result. We plan to adopt ASU 2014-09 using the modified retrospective approach effective January 1, 2018.

D. Recent Accounting Guidance (continued)

Accounting Standards Update 2016-02, Leases (Topic 842)--In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and, (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. The new standard is effective for interim and annual periods beginning after December 15, 2018, which for Davey Tree would be January 1, 2019. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. We are currently evaluating the impact of the new standard on our consolidated financial statements.

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Business Combinations

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Business Combinations

Business Combinations

Our investments in businesses were: (a) $4,888 in 2016, including liabilities assumed of $216 and debt issued of $875; (b) $4,149 in 2015, including no liabilities assumed and debt issued of $1,500; and (c) $12,853 in 2014, including $1,078 liabilities assumed and debt issued of $2,080.

The net assets of the businesses acquired are accounted for under the acquisition method and were recorded at their fair values at the dates of acquisition. The excess of the purchase price over the estimated fair values of the net assets acquired was recorded as an increase in goodwill of approximately $817 in 2016 (all of which is deductible for tax purposes), $1,410 in 2015 (all of which is deductible for tax purposes) and $4,624 goodwill in 2014 (all of which is deductible for tax purposes).

The results of operations of acquired businesses have been included in the consolidated statements of operations beginning as of the effective dates of acquisition. The effect of these acquisitions on our consolidated revenues and results of operations, either individually or in the aggregate, for the years ended December 31, 2016, 2015 or 2014 was not significant.

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Accounts Receivable, Net and Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2016

Accounts Receivable, Net and Supplemental Balance Sheet Information [Abstract]

Accounts Receivable, Net and Supplemental Balance Sheet Information

Accounts Receivable, Net and Supplemental Balance Sheet Information

Accounts receivable, net, consisted of the following:

	December 31,
	2016		2015
Accounts receivable	$	128,202	$	104,567
Receivables under contractual arrangements	21,541		19,142
	149,743		123,709
Less allowances for doubtful accounts	3,609		3,708
	$	146,134	$	120,001

Receivables under contractual arrangements consist of work-in-process in accordance with the terms of contracts, primarily, with utility services customers.

F. Accounts Receivable, Net and Supplemental Balance Sheet Information (continued)

The following items comprise the amounts included in the balance sheets:

	December 31,
Other current assets	2016		2015
Refundable income taxes	$	548	$	2,952
Other	1,315		918
Total	$	1,863	$	3,870

	December 31,
Other assets, noncurrent	2016		2015
Assets invested for self-insurance	$	15,492	$	17,167
Investment--cost-method affiliate	1,168		1,172
Deferred income taxes	11,129		11,521
Other	3,565		2,089
Total	$	31,354	$	31,949

	December 31,
Accrued expenses	2016		2015
Employee compensation	$	18,438	$	18,176
Accrued compensated absences	9,215		8,607
Self-insured medical claims	2,961		2,347
Customer advances, deposits	2,997		2,564
Income taxes payable	953		—
Taxes, other than income	2,166		3,517
Other	929		935
Total	$	37,659	$	36,146

	December 31,
Other liabilities, noncurrent	2016		2015
Pension and retirement plans	$	15,982	$	14,296
Other	4,837		3,382
Total	$	20,819	$	17,678

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Supplemental Operating Information

12 Months Ended

Dec. 31, 2016

Other Nonoperating Income (Expense) [Abstract]

Other Nonoperating Income and Expense

Supplemental Operating Information

Other Nonoperating (Expense) Income, Net

Other nonoperating (expense) income, net, included in the statements of operations follows:

	Year Ended December 31,
	2016			2015			2014
Other nonoperating expense, net	$	(3,989	)	$	(5,744	)	$	(3,050	)

Other nonoperating (expense) income, net, includes foreign currency (i) gains of $113 for 2016, (ii) losses of $854 for 2015, and (iii) losses of $235 for 2014 on the intercompany balances of our Canadian operations.

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Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2016

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Supplemental cash flow information follows: 

	Year Ended December 31,
Supplemental cash flow information	2016			2015			2014
Interest paid	$	4,329		$	3,386		$	2,948
Income taxes paid, net	10,578			16,679			13,577
Noncash transactions:
Debt issued for purchases of businesses	$	875		$	1,500		$	2,080
Detail of acquisitions:
Assets acquired:
Receivables	$	—		$	—		$	1,852
Operating supplies	157			—			61
Prepaid expense	55			—			213
Equipment	2,485			1,264			1,726
Deposits and other	—			11			558
Intangibles	2,191			2,874			8,443
Liabilities assumed	(216		)	—			(1,078		)
Debt issued for purchases of businesses	(875		)	(1,500		)	(2,080		)
Cash paid	$	3,797		$	2,649		$	9,695

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Identified Intangible Assets and Goodwill, Net

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Identified Intangible Assets and Goodwill, Net [Text Block]

Identified Intangible Assets and Goodwill, Net

The carrying amount of the identified intangibles and goodwill acquired in connection with our investments in businesses were as follows:

	Weighted-Average Amortization Period (Years)		December 31, 2016				December 31, 2015
			Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists/relationships	2.6	years	$	17,822	$	15,171	$	16,805	$	13,764
Employment-related	2.6	years	7,032		6,386		6,811		6,008
Tradenames	2.6	years	5,634		4,860		5,502		4,539
Total			30,488		$	26,417	29,118		$	24,311
Less accumulated amortization			26,417				24,311
Identified intangibles, net			4,071				4,807
Unamortized intangible assets:
Goodwill	Not amortized		30,305				29,474
			$	34,376			$	34,281

The changes in the carrying amounts of goodwill, by segment, for the year ended December 31, 2016 follow:

	Balance at January 1, 2016		Acquisitions		Translation and Other Adjustments		Balance at December 31, 2016
Utility	$	3,424	$	—	$	—	$	3,424
Residential and Commercial	26,050		817		14		26,881
Total	$	29,474	$	817	$	14	$	30,305

Estimated future aggregate amortization expense of intangible assets--The estimated aggregate amortization expense of intangible assets, as of December 31, 2016, in each of the next five years follows:

	Estimated Future Amortization Expense
Year ending December 31, 2017	$	1,705
2018	885
2019	664
2020	512
2021	232

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Short and Long-Term Debt and Commitments Related to Letters of Credit

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Short and Long-Term Debt and Commitments Related to Letters of Credit [Text Block]

Short and Long-Term Debt and Commitments Related to Letters of Credit

Short-term debt consisted of the following:

	December 31,
	2016		2015
Current portion of long-term debt	$	16,701	$	15,501

J. Short and Long-Term Debt and Commitments Related to Letters of Credit (continued)

At December 31, 2016, we also had unused short-term lines of credit with several banks totaling $7,110, generally at the banks' prime rate or LIBOR plus a margin adjustment of .75% to 1.50%. Long-term debt consisted of the following:

	December 31,
	2016		2015
Revolving credit facility
Swing-line borrowings	$	10,000	$	2,500
LIBOR borrowings	57,000		52,000
	67,000		54,500
Senior unsecured notes	24,000		30,000
Term loans	16,151		16,105
	107,151		100,605
Less debt issuance costs	333		471
Less current portion	16,701		15,501
	$	90,117	$	84,633

Revolving Credit Facility and 5.09% Senior Unsecured Notes--In November 2013, the Company amended its revolving credit facility. The amended and restated credit agreement, which expires in November 2018, permits borrowings as defined up to $175,000 including a letter of credit sublimit of $100,000 and a swing-line commitment of $15,000. Under certain circumstances, the amount available under the revolving credit facility may be increased to $210,000. The revolving credit facility contains certain affirmative and negative covenants customary for this type of facility and includes financial covenant ratios with respect to a maximum leverage ratio and a maximum balance sheet leverage ratio.

On July 22, 2010, we issued $30,000 of 5.09% Senior Unsecured Notes, Series A, due July 22, 2020 (the "5.09% Senior Notes"). The 5.09% Senior Notes were issued pursuant to a Master Note Purchase Agreement (the “Purchase Agreement”), between the Company and the purchasers of the 5.09% Senior Notes. The net proceeds of the 5.09% Senior Notes were used to pay down borrowings under our revolving credit facility.

The 5.09% Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commenced on July 22, 2016 (thesixth anniversary of issuance).  The Purchase Agreement contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios.

As of December 31, 2016, we had unused commitments under the revolving credit facility approximating$103,929, and$71,071committed, which consisted of borrowings of$67,000 and issued letters of credit of$4,071. Borrowings outstanding bear interest, at Davey Tree’s option, of either (a) the base rate or (b) LIBOR plus a margin adjustment ranging from .75% to 1.50%--with the margin adjustments in both instances based on the Company's leverage ratio at the time of borrowing. The base rate is the greater of (i) the agent bank’s prime rate, (ii) LIBOR plus 1.5%, or (iii) the federal funds rate plus .5%. A commitment fee ranging from .10% to .25% is also required based on the average daily unborrowed commitment.

Term Loans, Weighted-Average Interest Rate--The weighted-average interest on the term loans approximated 3.56% at December 31, 2016 and 3.55% at December 31, 2015.

Aggregate Maturities of Long-Term Debt--Aggregate maturities of long-term debt for the five years subsequent to December 31, 2016 were as follows: 2017--$16,701; 2018--$73,829; 2019--$6,160; 2020--$6,169; and, 2021--$4,292.

Accounts Receivable Securitization Facility--On May 9, 2016, Davey Tree entered into a one-year agreement with a bank for an accounts receivable securitization facility (the “AR securitization facility”), whereby Davey Tree has pledged a first priority security interest in certain trade receivables in exchange for the bank issuing letters of credit (“LCs”) with a committed facility limit of $60,000.

J. Short and Long-Term Debt and Commitments Related to Letters of Credit (continued)

As of December 31, 2016, we had issued LCs of $58,150 under the terms of the AR securitization facility.

Under the AR securitization facility, Davey Tree transfers by selling or contributing current and future trade receivables to a wholly-owned, bankruptcy-remote financing subsidiary which pledges a perfected first priority security interest in the trade receivables--equal to the issued LCs as of December 31, 2016--to the bank in exchange for the bank issuing LCs.

Fees payable to the bank include: (a) an LC issuance fee, payable on each settlement date, in the amount of .90% per annum on the aggregate amount of all LCs outstanding plus outstanding reimbursement obligations (e.g., arising from drawn LCs), if any, and (b) an unused LC fee, payable monthly, equal to (i) .35% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is greater than or equal to 50% of the facility limit and (ii) .45% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is less than 50% of the facility limit. If an LC is drawn and the bank is not immediately reimbursed in full for the drawn amount, any outstanding reimbursement obligation will accrue interest at a per annum rate equal to a reserve-adjusted LIBOR or, in certain circumstances, a base rate equal to the higher of (i) the bank’s prime rate and (ii) the federal funds rate plus .50% and, following any default, 2.00% plus the greater of (a) adjusted LIBOR and (b) a base rate equal to the higher of (i) the bank’s prime rate and (ii) the federal funds rate plus .50%.

The agreements underlying the AR securitization facility contains various customary representations and warranties, covenants, and default provisions which provide for the termination and acceleration of the commitments under the AR securitization facility in circumstances including, but not limited to, failure to make payments when due, breach of a representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness.

Total Commitments Related to Issued Letters of Credit--As of December 31, 2016, total commitments related to issued letters of credit were $64,225, of which $4,071 were issued under the revolving credit facility, $58,150 were issued under the AR securitization facility, and $2,004 were issued under short-term lines of credit. As of December 31, 2015, total commitments related to issued letters of credit were $59,350, of which $57,347 were issued under the revolving credit facility and $2,003 were issued under short-term lines of credit.

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Self-Insurance Accruals

12 Months Ended

Dec. 31, 2016

Self-Insurance Accruals [Abstract]

Self-Insurance Accruals [Text Block]

Self-Insurance Accruals

Components of our self-insurance accruals for workers’ compensation, vehicle liability and general liability follow:

	December 31,
	2016		2015
Workers' compensation	$	38,811	$	35,304
Present value discount	2,236		1,937
	36,575		33,367
Vehicle liability	4,763		5,880
General liability	21,500		21,092
Total	62,838		60,339
Less current portion	23,092		22,553
Noncurrent portion	$	39,746	$	37,786

K. Self-Insurance Accruals (continued)

The changes in our self-insurance accruals and the discount rate used for the workers’ compensation accrual are summarized in the table below.

	December 31,
	2016			2015
Balance, beginning of year	$	60,339		$	58,893
Provision for claims	33,404			33,499
Payment of claims	30,905			32,053
Balance, end of year	$	62,838		$	60,339
Workers' compensation discount rate	2.20		%	2.20		%

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Lease Obligations

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Lease Obligations [Text Block]

Lease Obligations

Assets acquired under capital leases and included in property and equipment consisted of the following:

	December 31,
	2016		2015
Equipment	$	2,528	$	—
Less accumulated amortization	160		—
	$	2,368	$	—

We also lease facilities under noncancelable operating leases, which are used for district office and warehouse operations. These leases extend for varying periods of time up to five years and, in some cases, contain renewal options. Minimum rental commitments under all capital and noncancelable operating leases, as of December 31, 2016, were as follows:

	Lease Obligations
Minimum lease obligations	Capital		Operating
Year ending December 31, 2017	$	171	$	6,369
2018	271		4,559
2019	756		3,380
2020	632		2,398
2021	515		1,164
2022 and after	—		1,266
Total minimum lease payments	2,345		$	19,136
Amounts representing interest	2
Present value of net minimum lease payments	2,343
Less current portion	170
Long-term capital lease obligations, December 31, 2016	$	2,173

Total rent expense under all operating leases was $7,536 in 2016, $7,398 in 2015 and $6,554 in 2014.

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Common Shares and Preferred Shares

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Common Shares and Preferred Shares [Text Block]

Common Shares, Redeemable Common Shares and Preferred Shares

We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017 including all common share and per share data.

Preferred Shares--We have authorized a class of 4,000,000 preferred shares, no par value, of which none were issued.

Redeemable Common Shares-Our Davey 401KSOP and ESOP Plan includes a put option for shares of the Company’s common stock distributed from the plan. Due to the Company’s obligation under the put option, shares held in the Davey 401KSOP and ESOP Plan as well as distributed shares subject to the put option are reclassified from permanent equity to temporary equity. The number of redeemable common shares for each of the three years in the period ended December 31, 2016 was as follows: 2016--7,056,904; 2015--7,773,052; and 2014--8,217,131.

Common Shares--The number of common shares authorized is 48,000,000, par value $1.00. The number of common shares issued during each of the three years in the period ended December 31, 2016 was as follows: 2016--35,856,856; 2015-- 35,140,708; and 2014--34,696,629. The number of shares in the treasury for each of the three years in the period ended December 31, 2016 was as follows: 2016--17,990,620; 2015--17,427,132; and 2014--16,583,894.

Our common and redeemable common shares are not listed or traded on an established public trading market, and market prices are, therefore, not available. Semiannually, an independent stock valuation firm determines the fair market value of our common and redeemable common shares based upon our performance and financial condition. Since 1979, we have provided a ready market for all shareholders through our direct purchase of their common shares, although we are under no obligation to do so (other than repurchases pursuant to the put option under the Davey 401KSOP and ESOP Plan, as described in Note O). During 2016, purchases of common shares, both redeemable and common, totaled 1,492,082 shares for $25,290 in cash; we also had direct sales to directors and employees of 24,242 shares for $397, excluding those shares issued through either the exercise of options or the Employee Stock Purchase Plan. We also sold 89,972 shares to our 401(k) plan for $1,488and issued 206,308 shares to participant accounts to satisfy our liability for the 2015 employer match in the amount of $3,373. The liability accrued at December 31, 2016 for the 2016 employer match was $3,661. There were also 297,262 shares purchased during 2016 under the Employee Stock Purchase Plan.

Common and Redeemable Shares Outstanding--The table below reconciles the activity of the common and redeemable shares outstanding:

	Common Shares		Redeemable
	Net of Treasury Shares		Shares		Total
	As Restated		As Restated		As Restated
Shares outstanding, December 31, 2014	18,112,735		8,217,131		26,329,866
Shares purchased	(919,699	)	(727,955	)	(1,647,654	)
Shares sold	291,874		283,876		575,750
Stock subscription offering, employee cash purchases	86,142		—		86,142
Options exercised	142,524		—		142,524
Shares outstanding, December 31, 2015	17,713,576		7,773,052		25,486,628
Shares purchased	(479,807	)	(1,012,275	)	(1,492,082	)
Shares sold	321,657		296,127		617,784
Stock subscription offering, employee cash purchases	48,730		—		48,730
Options exercised	262,080		—		262,080
Shares outstanding, December 31, 2016	17,866,236		7,056,904		24,923,140

On December 31, 2016, we had 24,923,140 common and redeemable shares outstanding, employee options exercisable to purchase 750,896 common shares, partially-paid subscription for 833,440 common shares and purchase rights outstanding for 338,382 common shares.

M.    Common Shares, Redeemable Common Shares and Preferred Shares (continued)

Stock Subscription Offering--Beginning May 2012, the Company offered to eligible employees and nonemployee directors the right to subscribe to common shares of the Company at $9.85 per share in accordance with the provisions of The Davey Tree Expert Company 2004 Omnibus Stock Plan and the rules of the Compensation Committee of the Company's Board of Directors (collectively, the "plan"). The offering period ended on August 1, 2012 and resulted in the subscription of 1,275,428 common shares for $12,563 at $9.85 per share.

Under the plan, a participant in the offering purchasing common shares for an aggregate purchase price of less than $5 had to pay with cash. All participants (excluding Company directors and officers) purchasing $5 or more of the common shares had an option to finance their purchase through a down-payment of at least 10% of the total purchase price and a seven-year promissory note for the balance due with interest at 2%. Payments on the promissory note can be made either by payroll deductions or annual lump-sum payments of both principal and interest.

Common shares purchased under the plan have been pledged as security for the payment of the promissory note and the common shares will not be issued until the promissory note is paid-in-full. Dividends will be paid on all subscribed shares, subject to forfeiture to the extent that payment is not ultimately made for the shares.

All participants in the offering purchasing in excess of $5 of common shares were granted a "right" to purchase one additional common share at a price of $9.85 per share for every three common shares purchased under the plan. As a result of the stock subscription, employees were granted rights to purchase 423,600 common shares. Each right may be exercised at the rate of one-seventh per year and will expire seven years after the date that the right was granted. Employees may not exercise a right should they cease to be employed by the Company.

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Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of net income and other adjustments that relate to foreign currency translation adjustments and defined benefit pension plan adjustments. We do not provide income taxes on currency translation adjustments, as the earnings of our Canadian operations are considered to be indefinitely reinvested.

N. Accumulated Other Comprehensive Income (Loss) (continued)

The following summarizes the components of other comprehensive income (loss) accumulated in shareholders’ equity:

	Foreign Currency Translation Adjustments			Defined Benefit Pension Plans			Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2014	$	1,647		$	(6,040	)	$	(4,393	)
Unrealized gains (losses)	(2,798		)	—			(2,798		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			2,786			2,786
Tax effect	—			(1,095		)	(1,095		)
Unrecognized amounts from defined benefit pension plans	—			(9,923		)	(9,923		)
Tax effect	—			3,900			3,900
Net of tax amount	(2,798		)	(4,332		)	(7,130		)
Balance at December 31, 2014	$	(1,151	)	$	(10,372	)	$	(11,523	)
Unrealized gains (losses)	(5,093		)	—			(5,093		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			4,774			4,774
Tax effect	—			(1,878		)	(1,878		)
Unrecognized amounts from defined benefit pension plans	—			538			538
Tax effect	—			(212		)	(212		)
Net of tax amount	(5,093		)	3,222			(1,871		)
Balance at December 31, 2015	$	(6,244	)	$	(7,150	)	$	(13,394	)
Unrealized gains (losses)	744			—			744
Amounts reclassified from accumulated other comprehensive income (loss)	—			2,844			2,844
Tax effect	—			(1,137		)	(1,137		)
Unrecognized amounts from defined benefit pension plans	—			(2,032		)	(2,032		)
Tax effect	—			813			813
Net of tax amount	744			488			1,232
Balance at December 31, 2016	$	(5,500	)	$	(6,662	)	$	(12,162	)

The amounts reclassified from accumulated other comprehensive income (loss) related to defined benefit pension plans for 2016, 2015 and 2014 are included in net periodic pension expense and classified in the statement of operations as costs and expenses, general and administrative.

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The Davey 401KSOP and Employee Stock Ownership Plan

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

The Davey 401KSOP and Employee Stock Ownership Plan

The Davey 401KSOP and Employee Stock Ownership Plan

On March 15, 1979, we consummated a plan, which transferred control of the Company to our employees. As a part of this plan, we initially sold 120,000 common shares (presently, 23,040,000 common shares adjusted for stock splits) to our Employee Stock Ownership Trust (“ESOT”) for $2,700. The Employee Stock Ownership Plan (“ESOP”), in conjunction with the related ESOT, provided for the grant to certain employees of certain ownership rights in, but not possession of, the common shares held by the trustee of the ESOT. Annual allocations of shares have been made to individual accounts established for the benefit of the participants.

Defined Contribution and Savings Plans--Most employees are eligible to participate in The Davey 401KSOP and ESOP. Effective January 1, 1997, the plan commenced operations and retained the existing ESOP participant accounts and incorporated a deferred savings plan (a "401(k) plan") feature. Participants in the 401(k) plan are allowed to make before-tax

O.    The Davey 401KSOP and Employee Stock Ownership Plan (continued)

contributions, within Internal Revenue Service established limits, through payroll deductions. Effective January 1, 2009 we match, in either cash or our common shares, 100% of the first one percent and 50% of the next three percent of each participant's before-tax contribution, limited to the first four percent of the employee's compensation deferred each year. All nonbargaining domestic employees who attained age 21 and completed one year of service are eligible to participate. In May 2004, we adopted the 401K Match Restoration Plan, a defined contribution plan that supplements the retirement benefits of certain employees that participate in the savings plan feature of The Davey 401KSOP and ESOP Plan, but are limited in contributions because of tax rules and regulations.

The Davey 401KSOP and ESOP Plan includes a put option for shares of the Company’s common stock distributed from the plan. Shares are distributed from the Davey 401KSOP and ESOP Plan to former participants of the plan, their beneficiaries, donees or heirs (each, a “participant”). Since our common stock is not currently traded on an established securities market, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value for two60-day periods after distribution of the shares from the Davey 401KSOP and ESOP. The fair value of distributed shares subject to the put option totaled $1,148 and $6,829 as of December 31, 2016 and December 31, 2015, respectively. The fair value of the shares held in the Davey 401KSOP and ESOP totaled $123,053 and $120,260 as of December 31, 2016 and December 31, 2015, respectively. Due to the Company’s obligation under the put option, the distributed shares subject to the put option and the shares held in the Davey 401KSOP and ESOP (collectively referred to as 401KSOP and ESOP related shares) are classified as temporary equity in the mezzanine section of the consolidated balance sheets and totaled $124,201, $127,089 and $123,668 as of December 31, 2016, December 31, 2015 and December 31, 2014, respectively. Changes in the fair value of the Davey 401KSOP and ESOP Plan related shares are reflected in retained earnings while net share activity associated with the Davey 401KSOP and ESOP Plan related shares are first reflected in additional paid-in capital and then retained earnings if additional paid in-capital is insufficient. See Note B.

Total compensation for these plans, consisting primarily of the employer match, was $3,661 in 2016, $3,373 in 2015, and $3,055 in 2014.

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Our shareholders approved the 2014 Omnibus Stock Plan (the “2014 Stock Plan”) at our annual meeting of shareholders on May 20, 2014. The 2014 Stock Plan replaced the expired 2004 Omnibus Stock Plan (the “2004 plan”) previously approved by the shareholders in 2004. The 2014 Stock Plan is administered by the Compensation Committee of the Board of Directors and will remain in effect for ten years. All directors of the Company and employees of the Company and its subsidiaries are eligible to participate in the 2014 Stock Plan. The 2014 Stock Plan (similar to the 2004 plan) continues the maintenance of the Employee Stock Purchase Plan, as well as provisions for the grant of stock options and other stock-based incentives. The 2014 Stock Plan provides for the grant of five percent of the number of the Company’s common shares outstanding as of the first day of each fiscal year plus the number of common shares that were available for grant of awards, but not granted, in prior years. In no event, however, may the number of common shares available for the grant of awards in any fiscal year exceed ten percent of the common shares outstanding as of the first day of that fiscal year. Common shares subject to an award that is forfeited, terminated, or canceled without having been exercised are generally added back to the number of shares available for grant under the 2014 Stock Plan. We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017.

Stock-based compensation expense under all share-based payment plans—our Employee Stock Purchase Plan, stock option plans, stock-settled stock appreciation rights, and performance-based restricted stock units—included in the results of operations follows:

	Year Ended December 31,
	2016		2015		2014
Compensation expense, all share-based payment plans	$	2,811	$	2,327	$	1,860
Income tax benefit	823		694		549

P. Stock-Based Compensation (continued)

Stock-based compensation consisted of the following:

Employee Stock Purchase Plan--Under the Employee Stock Purchase Plan, all full-time employees with one year of service are eligible to purchase, through payroll deduction, common shares. Employee purchases under the Employee Stock Purchase Plan are at 85% of the fair market value of the common shares--a 15% discount. Purchases under the plan, at 85% of the fair market value of the common shares, have been as follows:

	Year Ended December 31,
	2016		2015		2014
Number of employees participating	1,952		1,750		1,684
Shares purchased during the year	297,262		251,558		230,058
Weighted-average per share purchase price paid	$	14.17	$	13.11	$	11.54
Cumulative shares purchased since 1982	18,051,330		17,754,068		17,502,510

Compensation costs are recognized as payroll deductions are made. The 15% discount of total shares purchased under the plan resulted in compensation cost recognized of $727 in 2016, $569 in 2015 and $463 in 2014.

Stock Option Plans--The stock options outstanding were awarded under a graded vesting schedule, measured at fair value, and have a term of ten years. Compensation costs for stock options are recognized over the requisite service period on the straight-line recognition method. Compensation cost recognized for stock options was $596 in 2016, $494 in 2015 and $398 in 2014.

Stock-Settled Stock Appreciation Rights--During the year ended December 31, 2016, the Compensation Committee of the Board of Directors awarded 300,200 Stock-Settled Stock Appreciation Rights (“SSARs”) to certain management employees and nonemployee directors, which vest ratably over five years. A stock-settled stock appreciation right is an award that allows the recipient to receive common stock equal to the appreciation in the fair market value of our common stock between the date the award was granted and the conversion date of the shares vested.

The following table summarizes the SSARs as of December 31, 2016: 

Stock-Settled Stock Appreciation Rights	Number of Rights		Weighted- Average Award Date Value		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2016	661,414		$	2.33
Granted	300,200		3.19
Forfeited	—		—
Vested	(217,952	)	2.05
Unvested, December 31, 2016	743,662		$	2.75	2.8 years	$	1,515	$	12,605
Employee SSARs	737,664		$	2.76	2.9 years	$	1,513	$	12,503
Nonemployee Director SSARs	5,998		$	1.01	0.4 years	$	2	$	102

Compensation costs for SSARs are determined using a fair-value method and amortized over the requisite service period. Compensation expense for SSARs totaled $591 in 2016, $489 in 2015 and $384 in 2014.

Performance-Based Restricted Stock Units--During the year ended December 31, 2016, the Compensation Committee of the Board of Directors awarded 70,030 Performance-Based Restricted Stock Units ("PRSUs") to certain management employees.

P. Stock-Based Compensation (continued)

Similar awards were made in prior periods. The awards vest over specified periods. The following table summarizes PRSUs as of December 31, 2016:

Performance-Based Restricted Stock Units	Number of Stock Units		Weighted- Average Grant Date Value		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2016	283,970		$	11.99
Granted	70,030		15.80
Forfeited	—		—
Vested	(49,042	)	9.82
Unvested, December 31, 2016	304,958		$	13.21	2.5 years	$	2,119	$	5,169
Employee PRSUs	266,168		$	13.05	2.7 years	$	1,843	$	4,512
Nonemployee Director PRSUs	38,790		$	14.35	1.7 years	$	276	$	657

Compensation cost for awards is determined using a fair-value method, amortized over the requisite service period. “Intrinsic value” is defined as the amount by which the fair market value of a common share of stock exceeds the exercise price of a performance-based restricted stock unit. Compensation expense on restricted stock awards totaled $897 in 2016, $775 in 2015 and $615 in 2014.

The fair value of each award was estimated on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on historical volatility of our share prices and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock-based awards is derived from the output of the binomial model and represents the period of time that awards granted are expected to be outstanding.

The fair values of stock-based awards granted were estimated at the dates of grant with the following weighted-average assumptions:

	Year Ended December 31,
	2016		2015		2014
Volatility rate	10.6	%	10.9	%	11.2	%
Risk-free interest rate	1.8	%	2.1	%	2.6	%
Expected dividend yield	.7	%	.7	%	1.1	%
Expected life of awards (years)	9.5		9.3		9.4

P. Stock-Based Compensation (continued)

General Stock Option Information--The following table summarizes activity under the stock option plans for the year ended December 31, 2016:

Stock Options	Number of Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Outstanding, January 1, 2016	1,633,488		$	10.79
Granted	296,000		16.35
Exercised	(275,392	)	6.19
Forfeited	(54,800	)	14.40
Outstanding, December 31, 2016	1,599,296		$	12.49	6.8 years	$	1,886	$	7,141
Exercisable, December 31, 2016	750,896		$	10.42	5.3 years			$	4,903

“Intrinsic value” is defined as the amount by which the market price of a common share of stock exceeds the exercise price of an option. Information regarding the stock options outstanding at December 31, 2016 is summarized below:

Stock Options  Exercise Price		Number Outstanding	Weighted-Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable	Weighted- Average Exercise Price
Employee options:
$	8.00	177,706	2.8 years	$	8.00	177,706	$	8.00
8.30		190,190	3.8 years	8.30		190,190	8.30
11.60		363,300	6.5 years	11.60		204,500	11.60
13.20		346,100	7.5 years	13.20		125,900	13.20
15.05		267,000	8.5 years	15.05		52,600	15.05
16.35		255,000	9.5 years	16.35		—	16.35
		1,599,296	6.8 years	$	12.49	750,896	$	10.42

We issue common shares from treasury upon the exercise of stock options, stock-settled stock appreciation rights, performance-based restricted stock units or purchases under the Employee Stock Purchase Plan.

Tax Benefits of Stock-Based Compensation--Our total income tax benefit from share-based awards--as recognized in our consolidated statement of operations--for the last three years was: $823 in 2016, $694 in 2015, and $549 in 2014. Tax benefits for share-based awards are accrued as stock compensation expense and recognized in our consolidated statement of

operations. Tax benefits on share-based awards are realized when: (a) stock-settled stock appreciation rights are exercised; (b) performance-based restricted stock units vest; and, (c) stock options are exercised.

When actual tax benefits realized exceed the tax benefits accrued for share-based awards, we realize an excess tax benefit. We had excess tax benefits of: $1,113 in 2016, $352 in 2015, and $354 in 2014.

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Defined Benefit Pension Plans

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Defined Benefit Pension Plans

Defined Benefit Pension Plans

We have defined benefit pension plans covering certain current and retired U.S. employees. Plans include: (i) the Employee Retirement Plan (“ERP”) for employees hired prior to January 1, 2009, (ii) a Supplemental Executive Retirement Plan

Q. Defined Benefit Pension Plans (continued)

(“SERP”) for which future benefit accruals were frozen effective at the end of the second quarter 2015; and, (iii) a Benefit Restoration Pension Plan (“Restoration Plan”) for certain key employees hired prior to January 1, 2009.

Both the SERP and the Restoration Plan are defined benefit plans under which nonqualifed supplemental pension benefits will be paid in addition to amounts paid under our qualified retirement defined benefit pension plans, which are subject to Internal Revenue Service limitations on covered compensation.

Effective December 31, 2008, enhanced benefits were implemented to our defined contribution savings plan--The Davey 401KSOP and ESOP--at which time, the Board of Directors approved an amendment to freeze the ERP and the Restoration Plan. The ERP was closed to new participants after December 2008. In connection with the freeze of the ERP, the Restoration Plan and the SERP, (a) benefits currently being paid to retirees continue and (b) benefits accrued through December 31, 2008 for employees covered by the ERP were not affected. All ERP, Restoration Plan and SERP balances remain intact and participant account balances, as well as service credits for vesting and retirement eligibility, remain intact and continue in accordance with the terms of the plans. Only future accruals were eliminated with the: (i) the 2008 freeze of the ERP and Restoration Plan; and (ii) the 2015 freeze of the SERP.

During the first quarter 2016, the Company terminated the plan for bargaining employees not covered by union pension plans ("SPP") for which future benefit accruals were frozen effective December 31, 2013. We purchased a guaranteed group annuity contract from a third-party insurance company, which unconditionally and irrevocably guarantees the full payment of all annuity payments to the 94 participants. In connection with the plan termination, we made cash contributions of $522 to fully fund the SPP obligation and recorded a settlement charge of $453.

The change in benefit obligations and the fair value of plans assets follows:

	December 31,
	2016			2015
Change in benefit obligation
Projected benefit obligation at beginning of year	$	27,228		$	35,876
Service cost	370			35
Interest cost	1,243			1,486
Actuarial (gains)/losses	1,150			(2,445		)
New longevity assumptions	(447		)	(340		)
Amendments	341			—
Curtailments	—			(404		)
Settlements	(4,873		)	(6,186		)
Benefits paid	(179		)	(794		)
Projected benefit obligation at end of year	$	24,833		$	27,228
Accumulated benefit obligation at end of year	$	24,833		$	27,228

Q. Defined Benefit Pension Plans (continued)

	December 31,
	2016			2015
Change in fair value of plan assets
Fair value of plan assets at beginning of year	$	15,216		$	21,567
Actual return on plan assets	400			(135		)
Plan expenses, including PBGC premiums	(727		)	(536		)
Employer contributions	1,672			1,300
Settlements	(4,873		)	(6,186		)
Benefits paid	(179		)	(794		)
Fair value of plan assets at end of year	$	11,509		$	15,216

The settlements in the change in benefit obligation and in the change in fair value of plan assets arise from: (i) termination of the SPP plan during the first quarter 2016; (ii) lump sum offering to 224 participants in our ERP plan during the fourth quarter 2016 and (iii) purchase during the fourth quarter 2015 of a guaranteed group annuity contract from a third-party insurance company which unconditionally and irrevocably guarantees the full payment of all annuity payments to the participants that were receiving payments from the ERP plan, with the third-party insurance company having assumed all investment risk associated with funding participant payments.

	December 31,
	2016			2015
Funded status of the plans
Fair value of plan assets	$	11,509		$	15,216
Projected benefit obligation	24,833			27,228
Funded status of the plans	$	(13,324	)	$	(12,012	)

	December 31,
	2016			2015
Amounts reported in the consolidated balance sheets
Current liability	$	(83	)	$	(499	)
Noncurrent liability	(13,241		)	(11,513		)
Funded status of the plans	$	(13,324	)	$	(12,012	)

Amounts included in accumulated other comprehensive income (loss), related to our defined benefit pension plans follow:

	At December 31, 2016				At December 31, 2015
	Pretax		Net of Tax		Pretax		Net of Tax
Amounts reported in accumulated other comprehensive income
Unrecognized net actuarial loss	$	10,675	$	6,456	$	11,836	$	7,150
Unrecognized prior service cost	341		206		—		—
	$	11,016	$	6,662	$	11,836	$	7,150

To the extent actuarial losses exceed the greater of 10% of the projected benefit obligation or market-related value of plan assets, the unrecognized actuarial losses will be amortized straight-line on a plan-by-plan basis, over the remaining expected

Q. Defined Benefit Pension Plans (continued)

future working lifetime of active participants, except for the SERP, which, after the plan freeze, is being amortized based on the remaining life expectancy of plan participants. The total amount of unrecognized prior service cost was amortized straight-line on a plan-by-plan basis. The total amortization associated with these amounts that is expected to be recognized in net periodic benefit expense for 2017 follows: 

	Year ending December 31, 2017
	Pretax		Net of Tax
Amortization of Costs Expected to be Recognized Next Year
Unrecognized net actuarial loss	$	949	$	569
Unrecognized prior service cost	64		38
	$	1,013	$	607

The aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets for plans in which the fair value of plan assets is less than either the projected benefit obligation or accumulated benefit obligation follow: 

	December 31,
	2016		2015
For pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation	$	24,833	$	27,228
Accumulated benefit obligation	24,833		27,228
Fair value of plan assets	11,509		15,216

The actuarial assumptions follow. The discount rates were used to measure the year-end benefit obligation and compute pension expense for the subsequent year.

	December 31,
	2016		2015		2014
Actuarial assumptions
Discount rate	4.20	%	4.70	%	4.30	%
Expected long-term rate of return on plan assets	5.00		7.25		7.50

Q. Defined Benefit Pension Plans (continued)

Net periodic benefit expense (income) associated with the defined benefit pension plans included the following components:

	Year Ended December 31,
	2016			2015			2014
Components of pension expense (income)
Service costs--increase in benefit obligation earned	$	370		$	35		$	51
Interest cost on projected benefit obligation	1,243			1,486			1,618
Expected return on plan assets	(1,044		)	(1,576		)	(1,993		)
Curtailment loss	—			49			—
Settlement loss	2,346			2,915			2,065
Amortization of net actuarial loss	951			1,400			708
Amortization of prior service cost	—			6			14
Net pension expense of defined benefit pension plans	$	3,866		$	4,315		$	2,463

Investment Strategy and Risk Management for Plan Assets--Our investment strategy is to manage the plan assets in order to pay retirement benefits to plan participants while minimizing our cash contributions over the life of the plans. This is accomplished by preserving capital through diversification in high-quality investments through the use of investment managers and mutual funds. Performance of all investment managers and mutual funds is monitored quarterly and evaluated over rolling three-to-five year periods.

The plan assets are divided into asset classes that include equity, fixed income, and alternative investments and allocated among target allocations to include: (a) equities of a minimum 20% to a maximum of 40%; (b) fixed income and cash of a minimum 50% to a maximum of 70%; and, (c) alternative investments of a minimum of zero to a maximum of 15%. The purpose of the equity asset class is to provide a total return that simultaneously provides for growth in principal and current income while at the same time preserving the purchasing power of the plan assets, even though assets invested in equities have greater market volatility and risk. The purpose of the fixed income asset class is to provide a deflation hedge, to reduce the overall volatility of plan assets and to produce current income in support of the needs of the plan. The purpose of alternative investments is the diversification benefit of alternative strategies.

Equity assets are to be allocated within certain ranges among the asset categories of large cap growth and value; small/midcap growth and value; and international growth and value. Each of the equity asset categories are assigned to an appropriate asset manager or mutual fund. Fixed income assets are allocated within a certain range to mutual funds of fixed income securities. Alternative investment assets are allocated within a certain range to mutual funds and may include the use of leverage. Short-selling, securities lending, financial futures, margins, options, and derivatives are not used. Investments in nonmarketable securities, commodities, or direct ownership of real estate are prohibited.

Rate-of-return-on-assets assumptions are made by major category of plan assets according to historical analysis, tempered for an assessment of possible future influences that could cause the returns to exceed or trail long-term patterns. The overall expected long-term rate-of-return-on-plan assets net of investment manager fees as at December 31, 2016, was 5.00%.

Q. Defined Benefit Pension Plans (continued)

Plan Assets--The fair values of our pension plan assets at December 31, 2016 by asset category, using the three-level hierarchy of fair value inputs, were as follows:  

			Fair Value Measurements at December 31, 2016 Using:
Description	Total Carrying Value at December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset Category
Money market funds	$	2,882	$	—	$	2,882	$	—
U.S. large-cap equities
Growth	687		687		—		—
Value	729		729		—		—
U.S. small/mid-cap equities
Growth	339		339		—		—
Value	339		339		—		—
International equities
Growth	443		443		—		—
Value	514		514		—		—
Fixed income	4,669		4,669		—		—
Multiclass world-allocation mutual funds	907		907		—		—
	$	11,509	$	8,627	$	2,882	$	—

The fair values of our pension plan assets at December 31, 2015 by asset category, using the three-level hierarchy of fair value inputs, were as follows:

			Fair Value Measurements at December 31, 2015 Using:
Description	Total Carrying Value at December 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset Category
Money market funds	$	2,794	$	—	$	2,794	$	—
U.S. large-cap equities
Growth	1,869		1,869		—		—
Value	1,492		1,492		—		—
U.S. small/mid-cap equities
Growth	781		781		—		—
Value	1,003		1,003		—		—
International equities
Growth	1,270		1,270		—		—
Value	1,183		1,183		—		—
Fixed income	3,035		3,035		—		—
Multiclass world-allocation mutual funds	1,789		1,789		—		—
	$	15,216	$	12,422	$	2,794	$	—

Q. Defined Benefit Pension Plans (continued)

Within the pension plan asset categories, the Level 1 investments are publicly traded in active markets and are valued using the net asset value or closing price of the investment at the measurement date. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.

Expected Benefit Plan Contributions--It is our practice to make contributions to comply with the minimum funding requirements of ERISA. In accordance with such practice, contributions totaling $1,504 are required for 2017; however, we may make additional discretionary contributions.

Expected Benefit Plan Payments--The benefits, as of December 31, 2016, expected to be paid to defined-benefit plan participants in each of the next five years, and in the aggregate for the five years thereafter, follow:

	Participants Benefits
Estimated future payments
Year ending December 31, 2017	$	659
2018	878
2019	981
2020	1,088
2021	1,167
Years 2022 to 2026	6,677

Multiemployer Defined Benefit Pension Plans--In providing services to our Utility Services customers, we contribute to multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees.

These plans generally provide retirement benefits to participants based on their service to contributing employers. We do not administer these multiemployer plans. In general, these plans are managed by a board of trustees with the unions appointing certain trustees and other contributing employers of the plan appointing certain members. We generally are not represented on the board of trustees.

The risks of participating in these multiemployer plans are different from single-employer plans in that: (a) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be assumed by the remaining participating employers; and, (c) if we choose to stop participating in a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

Our participation in the multiemployer defined benefit pension plans is summarized in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The most recent Pension Protection Act of 2006 (the “PPA”) zone status is from the Form 5500, “Annual Return/Report of Employee Benefit Plan,” filed by the plan and certified by the plan's actuary. The PPA zone status describes plans that are underfunded. Among other factors, plans in the “critical” red zone are generally less than 65% funded; plans in the “endangered” yellow zone are less than 80% funded; and, plans in the “safe” green zone are at least 80% funded.

Q. Defined Benefit Pension Plans (continued)

Pension Fund	EIN/Pension Plan Number	Pension Protection Act Zone Status		FIP/RP Status Pending Implemented	Davey Tree Contributions						Surcharge Imposed	Expiration Dates of Bargaining Agreement
		2016	2015		2016		2015		2014
National Electric Benefit Fund	53-0181657/001	Green	Green	No	$	712	$	774	$	743	No	Ranging from June 30, 2017 to December 31, 2018
Eighth District Electrical Pension Fund	84-6100393/001	Green	Green	No	90		119		105		No	December 31, 2017
					$	802	$	893	$	848

We were not listed in the Form 5500 for either plan as having provided more than 5% of the total contributions.

Both the National Electric Benefit Fund and the Eighth District Electrical Pension Fund are green zone status--safe--which represents at least 80% funded and does not require a “financial improvement plan” (“FIP”) or a “rehabilitation plan” (“RP”).

We are party to nine collective-bargaining agreements with the National Electric Benefit Fund, with expiration dates ranging from June 30, 2017 to December 31, 2018, and one collective-bargaining agreement with Eighth District Electrical Pension Fund with an expiration date of December 31, 2017.

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Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income before income taxes was attributable to the following sources:

	Year Ended December 31,
	2016		2015		2014
United States	$	35,867	$	32,807	$	30,380
Canada	1,377		2,451		7,920
Total	$	37,244	$	35,258	$	38,300

The provision for income taxes follows:

	Year Ended December 31,
	2016		2015			2014
Currently payable:
Federal	$	12,216	$	13,337		$	13,159
State	2,286		2,487			2,524
Canadian	398		611			2,127
Total current	14,900		16,435			17,810
Deferred taxes	60		(2,975		)	(2,679		)
Total taxes on income	$	14,960	$	13,460		$	15,131

R. Income Taxes (continued)

A reconciliation of the expected statutory U.S. federal rate to our actual effective income tax rate follows:

	Year Ended December 31,
	2016		2015		2014
Statutory U.S. federal tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	4.0		3.7		3.9
Effect of Canadian income taxes	(.2	)	(.5	)	(1.7	)
Nondeductible expenses	2.2		2.3		1.9
ESOP dividend deduction	(.7	)	(.8	)	(.7	)
Uncertain tax adjustments and audit settlement	.2		1.5		1.6
Valuation allowance	—		(2.2	)	—
All other, net	(.3	)	(.8	)	(.5	)
Effective income tax rate	40.2	%	38.2	%	39.5	%

Deferred income taxes reflect the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  A valuation allowance is recorded when it is more-likely-than-not that an income tax benefit will not be realized.

Significant components of our noncurrent net deferred tax assets and liabilities at December 31, were as follows:

	December 31,
	2016		2015
Deferred tax assets:
Self-insurance accruals	$	21,967	$	21,136
Accrued compensated absences	3,540		3,189
Accrued expenses and other liabilities	1,394		1,255
Accrued stock compensation	2,502		2,144
Defined benefit pension plans	4,019		3,721
Foreign tax credit carryforward	575		680
Other future deductible amounts, net	4,213		4,354
	38,210		36,479
Deferred tax liabilities:
Intangibles	297		150
Prepaid expenses	3,510		3,138
Property and equipment	23,274		21,670
	27,081		24,958
Net deferred tax assets--noncurrent	$	11,129	$	11,521

We treat all of our Canadian subsidiary earnings through December 31, 2016 as permanently reinvested and have not provided any U.S. federal or state tax thereon. As of December 31, 2016, approximately $28,983 of undistributed earnings attributable to our Canadian operations was considered to be indefinitely invested. Presently, our intention is to reinvest the earnings permanently.

If, in the future, these earnings are distributed to the U.S. in the form of dividends or otherwise, or if the Company determines such earnings will be remitted in the foreseeable future, the Company would be subject to U.S. income taxes and Canadian

R. Income Taxes (continued)

withholding taxes. It is not practicable to estimate the amount of taxes that would be payable upon remittance of these earnings given the various tax planning alternatives that we could employ should we decide to repatriate those earnings.

As at December 31, 2015, we released a valuation allowance that had been recorded in prior years related to the foreign tax credit carryforward that arose in 2010--wherein we repatriated earnings in 2010 of our Canadian operations due to capital in Canada in excess of current and future projected needs. Management presently believes that it is more-likely-than-not that the deferred tax asset, related to the foreign tax credit that expires in 2020, will be realized. The criteria considered in making the determination included the ability to utilize tax-planning strategies, historical and projected operating results, and the period of time over which the foreign tax credit can be utilized.

The amount of income taxes we pay is subject to audit by U.S. federal, state, local and Canadian tax authorities, which may result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is highly judgmental. Uncertain tax positions are recognized only if they are more-likely-than-not to be upheld during examination based on their technical merits. The measurement of the uncertain tax position is based on the largest benefit amount that is more-likely-than-not (determined on a cumulative probability basis) to be realized upon settlement of the matter. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. If the estimate of tax liabilities proves to be less than the ultimate settlement, a further charge to expense may result.

The balance of unrecognized benefits and the amount of related interest and penalties at December 31, were as follows:

	December 31,
	2016		2015
Unrecognized tax benefits	$	2,532	$	2,557
Portion, if recognized, would reduce tax expense and effective tax rate	2,053		1,981
Accrued interest on unrecognized tax benefits	107		115

We recognize interest accrued related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense.

The Company is routinely under audit by U.S. federal, state, local and Canadian authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. During the fourth quarter 2013, the U.S. Internal Revenue Service completed its audit of the Company's U.S. income tax returns for 2010 and 2011 and, during 2010, Canada Revenue Agency completed its audit of the Company's Canadian operations for 2006, 2007 and 2008. With the exception of U.S. state jurisdictions, the Company is no longer subject to examination by tax authorities for the years through 2012. As of December 31, 2016, we believe it is reasonably possible that the total amount of unrecognized tax benefits will not significantly increase or decrease.

The changes in our unrecognized tax benefits are summarized in the table below:

	Year Ended December 31,
	2016			2015			2014
Balance, beginning of year	$	2,557		$	1,949		$	1,221
Additions based on tax positions related to the current year	402			642			587
Additions for tax positions of prior years	51			52			234
Reductions for tax positions of prior years	(39		)	(63		)	(79		)
Lapses in statutes of limitations	(439		)	(23		)	(14		)
Balance, end of year	$	2,532		$	2,557		$	1,949

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Earnings Per Share Information

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share Information

Earnings Per Share Information

Earnings per share is computed as follows (adjusted for the two-for-one stock split of our common shares effective June 1, 2017):

	Year Ended December 31,
	2016		2015		2014
Income available to common shareholders:
Net income	$	22,284	$	21,798	$	23,169
Weighted-average shares:
Basic:
Outstanding	25,378,600		26,058,736		26,674,396
Partially-paid share subscriptions	833,440		872,162		968,050
Basic weighted-average shares	26,212,040		26,930,898		27,642,446
Diluted:
Basic from above	26,212,040		26,930,898		27,642,446
Incremental shares from assumed:
Exercise of stock subscription purchase rights	142,746		135,428		109,648
Exercise of stock options and awards	892,568		888,254		724,458
Diluted weighted-average shares	27,247,354		27,954,580		28,476,552
Share data:
Earnings per share--basic	$	.85	$	.81	$	.84
Earnings per share--diluted	$	.82	$	.78	$	.81

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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.

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.

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

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

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

T. 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

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Fair Value Measurements and Financial Instruments

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments

Fair Value Measurements and Financial Instruments

Financial Accounting Standards Board Accounting Standard Codification 820, “Fair Value of Measurements and Disclosures (“Topic 820”)” defines fair value based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principal or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability.

Valuation Hierarchy--Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The hierarchy prioritizes the inputs into three broad levels:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 2 inputs are observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data.

Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

U. Fair Value Measurements and Financial Instruments (continued)

Our assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and December 31, 2015, were as follows:

			Fair Value Measurements at December 31, 2016 Using:
	Total Carrying Value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Description	December 31, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Assets invested for self-insurance, classified as other assets, noncurrent	$	15,492	$	15,492	$	—	$	—
Defined benefit pension plan assets	11,509		8,627		2,882		—
Liabilities:
Deferred compensation	$	1,837	$	—	$	1,837	$	—

			Fair Value Measurements at December 31, 2015 Using:
	Total Carrying Value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Description	December 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Assets invested for self-insurance, classified as other assets, noncurrent	$	17,167	$	17,167	$	—	$	—
Defined benefit pension plan assets	15,216		12,422		2,794		—
Liabilities:
Deferred compensation	$	1,574	$	—	$	1,574	$	—

The estimated fair value of the deferred compensation--classified as Level 2--is based on the value of the Company's common shares, determined by independent valuation.

U. Fair Value Measurements and Financial Instruments (continued)

Fair Value of Financial Instruments--The fair values of our current financial assets and current liabilities, including cash, accounts receivable, accounts payable, and accrued expenses among others, approximate their reported carrying values because of their short-term nature. The assets invested for self-insurance are money market funds--classified as Level 1--based on quoted market prices of the identical underlying securities in active markets. Financial instruments classified as noncurrent liabilities and their carrying values and fair values were as follows:

	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving credit facility, noncurrent	$	67,000	$	67,000	$	54,500	$	54,500
Senior unsecured notes	18,000		18,509		24,000		24,837
Term loans, noncurrent	7,623		9,854		6,604		7,008
Total	$	92,623	$	95,363	$	85,104	$	86,345

The carrying value of our revolving credit facility approximates fair value--classified as Level 2--as the interest rates on the amounts outstanding are variable. The fair value of our senior unsecured notes and term loans--classified as Level 2--is determined based on expected future weighted-average interest rates with the same remaining maturities.

Market Risk--In the normal course of business, we are exposed to market risk related to changes in foreign currency exchange rates, changes in interest rates and changes in fuel prices. We do not hold or issue derivative financial instruments for trading or speculative purposes. In prior years, we have used derivative financial instruments to manage risk, in part, associated with changes in interest rates and changes in fuel prices. Presently, we are not engaged in any hedging or derivative activities.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Letters of Credit

At December 31, 2016, we were contingently liable to our principal banks in the amount of $64,225 for letters of credit outstanding primarily related to insurance coverage.

Surety Bonds

In certain circumstances, we have performance obligations that are supported by surety bonds in connection with our contractual commitments.

Litigation

We are party to a number of lawsuits, threatened lawsuits and other claims arising out of the normal course of business. Management is of the opinion that liabilities which may result are adequately covered by insurance, or reflected in the self-insurance accruals, and would not be material in relation to the financial position or results of operations.

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Quarterly Results of Operations

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

Quarterly Results of Operations (Unaudited)

The following is a summary of the results of operations for each quarter of 2016 and 2015. We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017.

	Fiscal 2016, Three Months Ended
	Apr 2			July 2		Oct 1		Dec 31
Revenues	$	180,833		$	224,763	$	223,719	$	216,363
Gross profit (revenues less costs and expenses, operating)	57,660			87,631		81,386		77,515
Income (loss) from operations	(5,120		)	24,286		15,042		11,163
Net income (loss)	(4,188		)	13,309		8,141		5,022
Net income (loss) per share -- Basic	$	(.17	)	$	.52	$	.32	$	.18
Net income (loss) per share -- Diluted	$	(.17	)	$	.50	$	.31	$	.18
ESOT valuation per share	$	16.35		$	16.35	$	16.95	$	17.60

	Fiscal 2015, Three Months Ended
	Apr 4			Jul 4		Oct 3		Dec 31
Revenues	$	174,292		$	224,773	$	224,981	$	197,858
Gross profit (revenues less costs and expenses, operating)	54,434			87,432		81,808		69,331
Income (loss) from operations	(3,985		)	27,796		16,177		4,120
Net income (loss)	(3,528		)	15,932		8,174		1,220
Net income (loss) per share -- Basic	$	(.14	)	$	.61	$	.29	$	.05
Net income (loss) per share -- Diluted	$	(.14	)	$	.59	$	.28	$	.05
ESOT valuation per share	$	15.05		$	15.05	$	15.75	$	16.35
Fourth quarters 2016 and 2015 include a decrease in casualty insurance expense that had the effect of increasing the fourth quarter gross profit for 2016 and 2015 by approximately $2,810 and $2,589, respectively.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Principles of consolidation and basis of presentation [Text Block]

Principles of Consolidation and Basis of Presentation--The consolidated financial statements include the accounts of Davey Tree and our wholly-owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as codified in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). Intercompany accounts and transactions have been eliminated in consolidation.

Use of estimates in financial statement preparation [Policy Text Block]

Use of Estimates in Financial Statement Preparation--The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts. Estimates are used for, but not limited to, accounts receivable valuation, depreciable lives of fixed assets, self-insurance accruals, and revenue recognition. Actual results could differ from those estimates.

Property and equipment [Policy Text Block]

Property and Equipment--Property and equipment are stated at cost. Repair and maintenance costs are expensed as incurred. Depreciation is computed for financial reporting purposes by the straight-line method for land improvements, building and leasehold improvements and by the declining-balance method for equipment, based on the estimated useful lives of the assets, as follows:

Land improvements	5 to 20 years
Buildings	5 to 30 years
Equipment	3 to 10 years
Leasehold improvements	Shorter of lease term or estimated useful life; ranging from 5-to-20 years

Intangible assets [Policy Text Block]

Intangible Assets--Intangible assets with finite lives, primarily customer lists, noncompete agreements and tradenames, are amortized by the straight-line method based on their estimated useful lives, ranging from one-to-ten years.

Long-lived assets [Policy Text Block]

Long-Lived Assets--We assess potential impairment to our long-lived assets, other than goodwill, when there is evidence that events or changes in circumstances have made recovery of the asset’s carrying value unlikely and the carrying amount of the asset exceeds the estimated future undiscounted cash flow. In the event the assessment indicates that the carrying amounts may not be recoverable, an impairment loss would be recognized to reduce the asset’s carrying amount to its estimated fair value based on the present value of the estimated future cash flows.

Goodwill [Policy Text Block]

Goodwill--Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identified net assets acquired. Goodwill is not amortized, but tested for impairment annually or when events or circumstances indicate that impairment may have occurred. Annually, we perform the impairment tests for goodwill during the fourth quarter. Impairment of goodwill is tested at the reporting-unit level, which for us are also our business segments. Impairment of goodwill is tested by comparing the reporting unit’s carrying value, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using discounted projected cash flows. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. We conducted our annual impairment tests and determined that no impairment loss was required to be recognized in 2016 or for any prior periods. There were no events or circumstances from the date of our assessment through December 31, 2016 that would impact this conclusion.

Self-insurance accruals [Policy Text Block]

Self-Insurance Accruals--We are generally self-insured for losses and liabilities related primarily to workers’ compensation, vehicle liability and general liability claims. We use commercial insurance as a risk-reduction strategy to minimize catastrophic losses. Ultimate losses are accrued based upon estimates of the aggregate liability for claims incurred using certain actuarial assumptions followed in the insurance industry and based on Company-specific experience.

Our self-insurance accruals include claims for which the ultimate losses will develop over a period of years. Accordingly, our estimates of ultimate losses can change as claims mature. Our accruals also are affected by changes in the number of new claims incurred and claim severity. The methods for estimating the ultimate losses and the total cost of claims were determined by third-party consulting actuaries; the resulting accruals are reviewed by management, and any adjustments arising from changes in estimates are reflected in income.

The workers' compensation accruals are discounted as the amount and timing of cash payments related to those accruals are reliably determinable given the nature of workers' compensation benefits and the level of historical claim volume to support the actuarial assumptions and judgments used to derive the expected loss payment pattern. The workers' compensation accruals are discounted using an interest rate that approximates the long-term investment yields over the expected payment pattern of unpaid losses.

Our self-insurance accruals are based on estimates and, while we believe that the amounts accrued are adequate and not excessive, the ultimate claims may be in excess of or less than the amounts provided.

Stock-based compensation [Policy Text Block]

Stock-Based Compensation--Stock-based compensation cost for all share-based payment plans is measured at fair value on the date of grant and recognized over the employee service period on the straight-line recognition method for awards expected to vest. The fair value of all stock-based payment plans—stock option plans, stock-settled stock appreciation rights, and performance-based restricted stock units as well as our Employee Stock Purchase Plan—is determined by the number of awards granted and the price of our common stock. The fair value of each award is estimated on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee exercise behavior. Expected volatilities utilized in the binomial model are based on historical volatility of our share prices and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The binomial model also incorporates exercise and forfeiture assumptions based on an analysis of historical data. The expected life of the stock-based awards is derived from the output of the binomial model and represents the period of time that awards granted are expected to be outstanding.

Defined benefit pension plans [Policy Text Block]

Defined Benefit Pension Plans--We record annual expenses relating to our defined benefit pension plans based on calculations that include various actuarial assumptions, including discount rates and expected long-term rates of return on plan assets. Actuarial assumptions are reviewed annually with modifications made to the assumptions, if necessary, based on current rates and trends. The effects of the actuarial gains or losses are amortized over future service periods. The funded status (that is, the projected benefit obligation less the fair value of plan assets) for each plan is reported in our balance sheet using a December 31 measurement date. Changes in the funded status of the plans are recognized in the year in which the changes occur and reported in comprehensive income (loss).

Income taxes [Policy Text Block]

Income Taxes--We compute taxes on income in accordance with the tax rules and regulations where the income is earned. The income tax rates imposed by these taxing authorities vary. Taxable income may differ from pretax income for financial reporting purposes. We compute and recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of our assets and liabilities. Changes in tax rates and laws are reflected in income in the period when such changes are enacted. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is more-likely-than-not that the position will be sustained upon examination.

Earnings per share [Policy Text Block]

Earnings Per Share--Basic earnings per share is determined by dividing the income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed similarly to basic earnings per share except that the weighted-average number of shares is increased to include the effect of stock awards that were granted and outstanding during the period.

Revenue recognition [Policy Text Block]

Revenue Recognition--Revenues from residential and commercial services are recognized as the services are provided and amounts are determined to be collectible. Revenues from contractual arrangements, primarily with utility services customers, are recognized based on costs incurred to total estimated contract costs. During the performance of such contracts, estimated final contract prices and costs are periodically reviewed and revisions are made, as required, to the revenue recognized. On cost-plus-fee contracts, revenue is recognized to the extent of costs incurred plus a proportionate amount of fees earned, and on time-and-material contracts, revenue is recognized to the extent of billable rates times hours worked, plus material and other reimbursable costs incurred. Revisions arise in the normal course of providing services to utility services customers and generally relate to changes in contract specifications and cost allowability. Such revisions are recorded when realization is probable and can be reliably estimated.

Concentration of credit risk [Policy Text Block]

Concentration of Credit Risk--Credit risk represents the accounting loss that would be recognized if the counterparties failed to perform as contracted. The principal financial instruments subject to credit risk follow:

Cash--To limit our exposure, we transact our business and maintain banking relationships with high credit-quality financial institutions.

Accounts Receivable--Our residential and commercial customers are located geographically throughout the United States and Canada and, as to commercial customers, within differing industries; thus, minimizing credit risk. The credit exposure of utility services customers is directly affected by conditions within the utility industries as well as the financial condition of individual customers. One utility customer approximated 12% of revenues during 2016, 11% in 2015 and 8% in 2014. To reduce credit risk, we evaluate the credit of customers, but generally do not require advance payments or collateral. Exposure to losses on receivables is principally dependent on each customer’s financial condition.

Foreign currency translation and transactions [Policy Text Block]

Foreign Currency Translation and Transactions--Assets and liabilities of our Canadian operations are translated into U.S. dollars using year-end exchange rates, and revenues and expenses are translated using exchange rates as determined throughout the year. Gains or losses resulting from translation are included in the consolidated balance sheet, classified in shareholders’ equity as a separate component of accumulated other comprehensive income (loss). Gains or losses resulting from Canadian-dollar transactions with the Canadian operations are translated to U.S. dollars at the rates of exchange prevailing at the dates of the transactions. The effect of the transactions gain or loss is classified in the statement of operations as a component of other nonoperating income (expense), net.

Interst rate risk management [Policy Text Block]

Interest Rate Risk Management--We have entered into interest rate contracts, from time-to-time, with the objective of altering interest rate exposures related to variable rate debt. In the interest rate contracts, we have agreed with a financial institution to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated on an agreed-upon notional principal amount.

Comprehensive income (loss) [Policy Text Block]

Comprehensive Income (Loss)--Comprehensive income (loss) includes net income and other comprehensive income or loss. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income but are excluded from net income as these amounts are recorded directly as an adjustment to shareholders’ equity, net of tax.

Business combinations [Policy Text Block]

The net assets of the businesses acquired are accounted for under the acquisition method and were recorded at their fair values at the dates of acquisition.

Commitments and contingencies [Policy Text Block]

We are party to a number of lawsuits, threatened lawsuits and other claims arising out of the normal course of business. Management is of the opinion that liabilities which may result are adequately covered by insurance, or reflected in the self-insurance accruals, and would not be material in relation to the financial position or results of operations.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Property, plant and equipment [Table Text Block]

Depreciation is computed for financial reporting purposes by the straight-line method for land improvements, building and leasehold improvements and by the declining-balance method for equipment, based on the estimated useful lives of the assets, as follows:

Land improvements	5 to 20 years
Buildings	5 to 30 years
Equipment	3 to 10 years
Leasehold improvements	Shorter of lease term or estimated useful life; ranging from 5-to-20 years

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Correction of an Error (Tables)

12 Months Ended

Dec. 31, 2016

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

The effects of the error correction on the consolidated balance sheets are shown below. The statements of consolidated shareholders' equity have also been restated as a result of the error correction. See Notes M and O. The below amounts also reflect the effects of the stock split described in Note B.

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2016		Correction			Stock Split			December 31, 2016
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	124,201		$	—		$	124,201
Common shares	21,457		(2,751		)	17,151			35,857
Additional paid-in Capital	23,886		17,740			—			41,626
Retained earnings	290,292		(139,190		)	(17,151		)	133,951

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2015		Correction			Stock Split			December 31, 2015
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	127,089		$	—		$	127,089
Common shares	21,457		(3,467		)	17,151			35,141
Additional paid-in capital	17,815		6,525			—			24,340
Retained earnings	270,605		(130,147		)	(17,151		)	123,307

C. Correction of an Error (continued)

The effect of the error correction and stock split on the affected beginning balances (December 31, 2013) are shown below:

	As Previously Reported		Effect of Error			Effect of			As Restated
	December 31, 2013		Correction			Stock Split			December 31, 2013
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	$	—	$	113,694		$	—		$	113,694
Common shares	21,457		(4,307		)	17,151			34,301
Additional paid-in capital	5,008		(5,008		)	—			—
Retained earnings	230,975		(104,379		)	(17,151		)	109,445

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Accounts Receivable, Net and Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2016

Accounts Receivable, Net and Supplemental Balance Sheet Information [Abstract]

Schedule of accounts receivable [Table Text Block]

Accounts receivable, net, consisted of the following:

	December 31,
	2016		2015
Accounts receivable	$	128,202	$	104,567
Receivables under contractual arrangements	21,541		19,142
	149,743		123,709
Less allowances for doubtful accounts	3,609		3,708
	$	146,134	$	120,001

Schedule of other current assets [Table Text Block]

The following items comprise the amounts included in the balance sheets:

	December 31,
Other current assets	2016		2015
Refundable income taxes	$	548	$	2,952
Other	1,315		918
Total	$	1,863	$	3,870

Schedule of other assets, noncurrent [Table Text Block]

	December 31,
Other assets, noncurrent	2016		2015
Assets invested for self-insurance	$	15,492	$	17,167
Investment--cost-method affiliate	1,168		1,172
Deferred income taxes	11,129		11,521
Other	3,565		2,089
Total	$	31,354	$	31,949

Schedule of accrued expenses [Table Text Block]

	December 31,
Accrued expenses	2016		2015
Employee compensation	$	18,438	$	18,176
Accrued compensated absences	9,215		8,607
Self-insured medical claims	2,961		2,347
Customer advances, deposits	2,997		2,564
Income taxes payable	953		—
Taxes, other than income	2,166		3,517
Other	929		935
Total	$	37,659	$	36,146

Schedule of other liabilities, noncurrent [Table Text Block]

	December 31,
Other liabilities, noncurrent	2016		2015
Pension and retirement plans	$	15,982	$	14,296
Other	4,837		3,382
Total	$	20,819	$	17,678

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Supplemental Operating Information (Tables)

12 Months Ended

Dec. 31, 2016

Other Nonoperating Income (Expense) [Abstract]

Schedule of other nonoperating income (Expense) [Table Text Block]

Other nonoperating (expense) income, net, included in the statements of operations follows:

	Year Ended December 31,
	2016			2015			2014
Other nonoperating expense, net	$	(3,989	)	$	(5,744	)	$	(3,050	)

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Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2016

Supplemental Cash Flow Information [Abstract]

Supplemental cash flow informations [Table Text Block]

Supplemental cash flow information follows: 

	Year Ended December 31,
Supplemental cash flow information	2016			2015			2014
Interest paid	$	4,329		$	3,386		$	2,948
Income taxes paid, net	10,578			16,679			13,577
Noncash transactions:
Debt issued for purchases of businesses	$	875		$	1,500		$	2,080
Detail of acquisitions:
Assets acquired:
Receivables	$	—		$	—		$	1,852
Operating supplies	157			—			61
Prepaid expense	55			—			213
Equipment	2,485			1,264			1,726
Deposits and other	—			11			558
Intangibles	2,191			2,874			8,443
Liabilities assumed	(216		)	—			(1,078		)
Debt issued for purchases of businesses	(875		)	(1,500		)	(2,080		)
Cash paid	$	3,797		$	2,649		$	9,695

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Identified Intangible Assets and Goodwill, Net (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of acquired finite-lived intangible assets by major class [Table Text Block]

The carrying amount of the identified intangibles and goodwill acquired in connection with our investments in businesses were as follows:

	Weighted-Average Amortization Period (Years)		December 31, 2016				December 31, 2015
			Carrying Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer lists/relationships	2.6	years	$	17,822	$	15,171	$	16,805	$	13,764
Employment-related	2.6	years	7,032		6,386		6,811		6,008
Tradenames	2.6	years	5,634		4,860		5,502		4,539
Total			30,488		$	26,417	29,118		$	24,311
Less accumulated amortization			26,417				24,311
Identified intangibles, net			4,071				4,807
Unamortized intangible assets:
Goodwill	Not amortized		30,305				29,474
			$	34,376			$	34,281

Schedule of goodwill [Table Text Block]

The changes in the carrying amounts of goodwill, by segment, for the year ended December 31, 2016 follow:

	Balance at January 1, 2016		Acquisitions		Translation and Other Adjustments		Balance at December 31, 2016
Utility	$	3,424	$	—	$	—	$	3,424
Residential and Commercial	26,050		817		14		26,881
Total	$	29,474	$	817	$	14	$	30,305

Schedule of finite-lived intangible assets, future amortization expense [Table Text Block]

Estimated future aggregate amortization expense of intangible assets--The estimated aggregate amortization expense of intangible assets, as of December 31, 2016, in each of the next five years follows:

	Estimated Future Amortization Expense
Year ending December 31, 2017	$	1,705
2018	885
2019	664
2020	512
2021	232

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Short and Long-Term Debt and Commitments Related to Letters of Credit (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule of short-term debt [Table Text Block]

Short-term debt consisted of the following:

	December 31,
	2016		2015
Current portion of long-term debt	$	16,701	$	15,501

Schedule of long-term debt instruments [Table Text Block]

Long-term debt consisted of the following:

	December 31,
	2016		2015
Revolving credit facility
Swing-line borrowings	$	10,000	$	2,500
LIBOR borrowings	57,000		52,000
	67,000		54,500
Senior unsecured notes	24,000		30,000
Term loans	16,151		16,105
	107,151		100,605
Less debt issuance costs	333		471
Less current portion	16,701		15,501
	$	90,117	$	84,633

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Self-Insurance Accruals (Tables)

12 Months Ended

Dec. 31, 2016

Self-Insurance Accruals [Abstract]

Schedule of self-insurance accruals [Table Text Block]

Components of our self-insurance accruals for workers’ compensation, vehicle liability and general liability follow:

	December 31,
	2016		2015
Workers' compensation	$	38,811	$	35,304
Present value discount	2,236		1,937
	36,575		33,367
Vehicle liability	4,763		5,880
General liability	21,500		21,092
Total	62,838		60,339
Less current portion	23,092		22,553
Noncurrent portion	$	39,746	$	37,786

Schedule of changes in self-insurance accruals [Table Text Block]

The changes in our self-insurance accruals and the discount rate used for the workers’ compensation accrual are summarized in the table below.

	December 31,
	2016			2015
Balance, beginning of year	$	60,339		$	58,893
Provision for claims	33,404			33,499
Payment of claims	30,905			32,053
Balance, end of year	$	62,838		$	60,339
Workers' compensation discount rate	2.20		%	2.20		%

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Lease Obligations (Tables)

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Schedule of assets acquired under capital leases [Table Text Block]

Assets acquired under capital leases and included in property and equipment consisted of the following:

	December 31,
	2016		2015
Equipment	$	2,528	$	—
Less accumulated amortization	160		—
	$	2,368	$	—

Schedule of future minimum lease payments for capital leases [Table Text Block]

Minimum rental commitments under all capital and noncancelable operating leases, as of December 31, 2016, were as follows:

	Lease Obligations
Minimum lease obligations	Capital		Operating
Year ending December 31, 2017	$	171	$	6,369
2018	271		4,559
2019	756		3,380
2020	632		2,398
2021	515		1,164
2022 and after	—		1,266
Total minimum lease payments	2,345		$	19,136
Amounts representing interest	2
Present value of net minimum lease payments	2,343
Less current portion	170
Long-term capital lease obligations, December 31, 2016	$	2,173

Schedule of future minimum rental payments for operating leases [Table Text Block]

Minimum rental commitments under all capital and noncancelable operating leases, as of December 31, 2016, were as follows:

	Lease Obligations
Minimum lease obligations	Capital		Operating
Year ending December 31, 2017	$	171	$	6,369
2018	271		4,559
2019	756		3,380
2020	632		2,398
2021	515		1,164
2022 and after	—		1,266
Total minimum lease payments	2,345		$	19,136
Amounts representing interest	2
Present value of net minimum lease payments	2,343
Less current portion	170
Long-term capital lease obligations, December 31, 2016	$	2,173

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Common Shares and Preferred Shares (Tables)

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Schedule of stock by class [Table Text Block]

Common and Redeemable Shares Outstanding--The table below reconciles the activity of the common and redeemable shares outstanding:

	Common Shares		Redeemable
	Net of Treasury Shares		Shares		Total
	As Restated		As Restated		As Restated
Shares outstanding, December 31, 2014	18,112,735		8,217,131		26,329,866
Shares purchased	(919,699	)	(727,955	)	(1,647,654	)
Shares sold	291,874		283,876		575,750
Stock subscription offering, employee cash purchases	86,142		—		86,142
Options exercised	142,524		—		142,524
Shares outstanding, December 31, 2015	17,713,576		7,773,052		25,486,628
Shares purchased	(479,807	)	(1,012,275	)	(1,492,082	)
Shares sold	321,657		296,127		617,784
Stock subscription offering, employee cash purchases	48,730		—		48,730
Options exercised	262,080		—		262,080
Shares outstanding, December 31, 2016	17,866,236		7,056,904		24,923,140

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Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Schedule of accumulated other comprehensive income (loss) [Table Text Block]

The following summarizes the components of other comprehensive income (loss) accumulated in shareholders’ equity:

	Foreign Currency Translation Adjustments			Defined Benefit Pension Plans			Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2014	$	1,647		$	(6,040	)	$	(4,393	)
Unrealized gains (losses)	(2,798		)	—			(2,798		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			2,786			2,786
Tax effect	—			(1,095		)	(1,095		)
Unrecognized amounts from defined benefit pension plans	—			(9,923		)	(9,923		)
Tax effect	—			3,900			3,900
Net of tax amount	(2,798		)	(4,332		)	(7,130		)
Balance at December 31, 2014	$	(1,151	)	$	(10,372	)	$	(11,523	)
Unrealized gains (losses)	(5,093		)	—			(5,093		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			4,774			4,774
Tax effect	—			(1,878		)	(1,878		)
Unrecognized amounts from defined benefit pension plans	—			538			538
Tax effect	—			(212		)	(212		)
Net of tax amount	(5,093		)	3,222			(1,871		)
Balance at December 31, 2015	$	(6,244	)	$	(7,150	)	$	(13,394	)
Unrealized gains (losses)	744			—			744
Amounts reclassified from accumulated other comprehensive income (loss)	—			2,844			2,844
Tax effect	—			(1,137		)	(1,137		)
Unrecognized amounts from defined benefit pension plans	—			(2,032		)	(2,032		)
Tax effect	—			813			813
Net of tax amount	744			488			1,232
Balance at December 31, 2016	$	(5,500	)	$	(6,662	)	$	(12,162	)

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of share-based compensation arrangements by share-based payment award [Table Text Block]

Stock-based compensation expense under all share-based payment plans—our Employee Stock Purchase Plan, stock option plans, stock-settled stock appreciation rights, and performance-based restricted stock units—included in the results of operations follows:

	Year Ended December 31,
	2016		2015		2014
Compensation expense, all share-based payment plans	$	2,811	$	2,327	$	1,860
Income tax benefit	823		694		549

Schedule of share-based compensation, employee stock purchase plan, activity [Table Text Block]

Purchases under the plan, at 85% of the fair market value of the common shares, have been as follows:

	Year Ended December 31,
	2016		2015		2014
Number of employees participating	1,952		1,750		1,684
Shares purchased during the year	297,262		251,558		230,058
Weighted-average per share purchase price paid	$	14.17	$	13.11	$	11.54
Cumulative shares purchased since 1982	18,051,330		17,754,068		17,502,510

Schedule of share-based compensation, stock-settled stock appreciation rights award activity [Table Text Block]

The following table summarizes the SSARs as of December 31, 2016: 

Stock-Settled Stock Appreciation Rights	Number of Rights		Weighted- Average Award Date Value		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2016	661,414		$	2.33
Granted	300,200		3.19
Forfeited	—		—
Vested	(217,952	)	2.05
Unvested, December 31, 2016	743,662		$	2.75	2.8 years	$	1,515	$	12,605
Employee SSARs	737,664		$	2.76	2.9 years	$	1,513	$	12,503
Nonemployee Director SSARs	5,998		$	1.01	0.4 years	$	2	$	102

Schedule of share-based compensation, performance-based restricted stock units award activity [Table Text Block]

The following table summarizes PRSUs as of December 31, 2016:

Performance-Based Restricted Stock Units	Number of Stock Units		Weighted- Average Grant Date Value		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Unvested, January 1, 2016	283,970		$	11.99
Granted	70,030		15.80
Forfeited	—		—
Vested	(49,042	)	9.82
Unvested, December 31, 2016	304,958		$	13.21	2.5 years	$	2,119	$	5,169
Employee PRSUs	266,168		$	13.05	2.7 years	$	1,843	$	4,512
Nonemployee Director PRSUs	38,790		$	14.35	1.7 years	$	276	$	657

Schedule of share-based payment award, stock options, valuation assumptions [Table Text Block]

The fair values of stock-based awards granted were estimated at the dates of grant with the following weighted-average assumptions:

	Year Ended December 31,
	2016		2015		2014
Volatility rate	10.6	%	10.9	%	11.2	%
Risk-free interest rate	1.8	%	2.1	%	2.6	%
Expected dividend yield	.7	%	.7	%	1.1	%
Expected life of awards (years)	9.5		9.3		9.4

Schedule of share-based compensation, stock options, activity [Table Text Block]

The following table summarizes activity under the stock option plans for the year ended December 31, 2016:

Stock Options	Number of Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life	Unrecognized Compensation Cost		Aggregate Intrinsic Value
Outstanding, January 1, 2016	1,633,488		$	10.79
Granted	296,000		16.35
Exercised	(275,392	)	6.19
Forfeited	(54,800	)	14.40
Outstanding, December 31, 2016	1,599,296		$	12.49	6.8 years	$	1,886	$	7,141
Exercisable, December 31, 2016	750,896		$	10.42	5.3 years			$	4,903

Schedule of share-based compensation, shares authorized under stock option plans, by exercise price range [Table Text Block]

Information regarding the stock options outstanding at December 31, 2016 is summarized below:

Stock Options  Exercise Price		Number Outstanding	Weighted-Average Remaining Contractual Life	Weighted- Average Exercise Price		Number Exercisable	Weighted- Average Exercise Price
Employee options:
$	8.00	177,706	2.8 years	$	8.00	177,706	$	8.00
8.30		190,190	3.8 years	8.30		190,190	8.30
11.60		363,300	6.5 years	11.60		204,500	11.60
13.20		346,100	7.5 years	13.20		125,900	13.20
15.05		267,000	8.5 years	15.05		52,600	15.05
16.35		255,000	9.5 years	16.35		—	16.35
		1,599,296	6.8 years	$	12.49	750,896	$	10.42

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Defined Benefit Pension Plans (Tables)

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Schedule of changes in projected benefit obligations [Table Text Block]

The change in benefit obligations and the fair value of plans assets follows:

	December 31,
	2016			2015
Change in benefit obligation
Projected benefit obligation at beginning of year	$	27,228		$	35,876
Service cost	370			35
Interest cost	1,243			1,486
Actuarial (gains)/losses	1,150			(2,445		)
New longevity assumptions	(447		)	(340		)
Amendments	341			—
Curtailments	—			(404		)
Settlements	(4,873		)	(6,186		)
Benefits paid	(179		)	(794		)
Projected benefit obligation at end of year	$	24,833		$	27,228
Accumulated benefit obligation at end of year	$	24,833		$	27,228

Schedule of changes in fair value of plan sssets [Table Text Block]

	December 31,
	2016			2015
Change in fair value of plan assets
Fair value of plan assets at beginning of year	$	15,216		$	21,567
Actual return on plan assets	400			(135		)
Plan expenses, including PBGC premiums	(727		)	(536		)
Employer contributions	1,672			1,300
Settlements	(4,873		)	(6,186		)
Benefits paid	(179		)	(794		)
Fair value of plan assets at end of year	$	11,509		$	15,216

Schedule of net funded status [Table Text Block]

	December 31,
	2016			2015
Funded status of the plans
Fair value of plan assets	$	11,509		$	15,216
Projected benefit obligation	24,833			27,228
Funded status of the plans	$	(13,324	)	$	(12,012	)

Schedule of amounts recognized in balance sheet [Table Text Block]

	December 31,
	2016			2015
Amounts reported in the consolidated balance sheets
Current liability	$	(83	)	$	(499	)
Noncurrent liability	(13,241		)	(11,513		)
Funded status of the plans	$	(13,324	)	$	(12,012	)

Schedule of amounts in accumulated other comprehensive income [Table Text Block]

Amounts included in accumulated other comprehensive income (loss), related to our defined benefit pension plans follow:

	At December 31, 2016				At December 31, 2015
	Pretax		Net of Tax		Pretax		Net of Tax
Amounts reported in accumulated other comprehensive income
Unrecognized net actuarial loss	$	10,675	$	6,456	$	11,836	$	7,150
Unrecognized prior service cost	341		206		—		—
	$	11,016	$	6,662	$	11,836	$	7,150

Schedule of amounts in accumulated other comprehensive income (loss) to be recognized over next fiscal year [Table Text Block]

The total amortization associated with these amounts that is expected to be recognized in net periodic benefit expense for 2017 follows: 

	Year ending December 31, 2017
	Pretax		Net of Tax
Amortization of Costs Expected to be Recognized Next Year
Unrecognized net actuarial loss	$	949	$	569
Unrecognized prior service cost	64		38
	$	1,013	$	607

Schedule of accumulated benefit obligations in excess of fair value of plan assets [Table Text Block]

The aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets for plans in which the fair value of plan assets is less than either the projected benefit obligation or accumulated benefit obligation follow: 

	December 31,
	2016		2015
For pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation	$	24,833	$	27,228
Accumulated benefit obligation	24,833		27,228
Fair value of plan assets	11,509		15,216

Schedule of assumptions used [Table Text Block]

The actuarial assumptions follow. The discount rates were used to measure the year-end benefit obligation and compute pension expense for the subsequent year.

	December 31,
	2016		2015		2014
Actuarial assumptions
Discount rate	4.20	%	4.70	%	4.30	%
Expected long-term rate of return on plan assets	5.00		7.25		7.50

Components of pension expense (income) [Table Text Block]

Net periodic benefit expense (income) associated with the defined benefit pension plans included the following components:

	Year Ended December 31,
	2016			2015			2014
Components of pension expense (income)
Service costs--increase in benefit obligation earned	$	370		$	35		$	51
Interest cost on projected benefit obligation	1,243			1,486			1,618
Expected return on plan assets	(1,044		)	(1,576		)	(1,993		)
Curtailment loss	—			49			—
Settlement loss	2,346			2,915			2,065
Amortization of net actuarial loss	951			1,400			708
Amortization of prior service cost	—			6			14
Net pension expense of defined benefit pension plans	$	3,866		$	4,315		$	2,463

Schedule of allocation of plan assets [Table Text Block]

The fair values of our pension plan assets at December 31, 2016 by asset category, using the three-level hierarchy of fair value inputs, were as follows:  

			Fair Value Measurements at December 31, 2016 Using:
Description	Total Carrying Value at December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset Category
Money market funds	$	2,882	$	—	$	2,882	$	—
U.S. large-cap equities
Growth	687		687		—		—
Value	729		729		—		—
U.S. small/mid-cap equities
Growth	339		339		—		—
Value	339		339		—		—
International equities
Growth	443		443		—		—
Value	514		514		—		—
Fixed income	4,669		4,669		—		—
Multiclass world-allocation mutual funds	907		907		—		—
	$	11,509	$	8,627	$	2,882	$	—

The fair values of our pension plan assets at December 31, 2015 by asset category, using the three-level hierarchy of fair value inputs, were as follows:

			Fair Value Measurements at December 31, 2015 Using:
Description	Total Carrying Value at December 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset Category
Money market funds	$	2,794	$	—	$	2,794	$	—
U.S. large-cap equities
Growth	1,869		1,869		—		—
Value	1,492		1,492		—		—
U.S. small/mid-cap equities
Growth	781		781		—		—
Value	1,003		1,003		—		—
International equities
Growth	1,270		1,270		—		—
Value	1,183		1,183		—		—
Fixed income	3,035		3,035		—		—
Multiclass world-allocation mutual funds	1,789		1,789		—		—
	$	15,216	$	12,422	$	2,794	$	—

Schedule of expected benefit payments [Table Text Block]

The benefits, as of December 31, 2016, expected to be paid to defined-benefit plan participants in each of the next five years, and in the aggregate for the five years thereafter, follow:

	Participants Benefits
Estimated future payments
Year ending December 31, 2017	$	659
2018	878
2019	981
2020	1,088
2021	1,167
Years 2022 to 2026	6,677

Schedule of multiemployer plans [Table Text Block]

Our participation in the multiemployer defined benefit pension plans is summarized in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The most recent Pension Protection Act of 2006 (the “PPA”) zone status is from the Form 5500, “Annual Return/Report of Employee Benefit Plan,” filed by the plan and certified by the plan's actuary. The PPA zone status describes plans that are underfunded. Among other factors, plans in the “critical” red zone are generally less than 65% funded; plans in the “endangered” yellow zone are less than 80% funded; and, plans in the “safe” green zone are at least 80% funded.

Q. Defined Benefit Pension Plans (continued)

Pension Fund	EIN/Pension Plan Number	Pension Protection Act Zone Status		FIP/RP Status Pending Implemented	Davey Tree Contributions						Surcharge Imposed	Expiration Dates of Bargaining Agreement
		2016	2015		2016		2015		2014
National Electric Benefit Fund	53-0181657/001	Green	Green	No	$	712	$	774	$	743	No	Ranging from June 30, 2017 to December 31, 2018
Eighth District Electrical Pension Fund	84-6100393/001	Green	Green	No	90		119		105		No	December 31, 2017
					$	802	$	893	$	848

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of income before income tax, domestic and foreign [Table Text Block]

Income before income taxes was attributable to the following sources:

	Year Ended December 31,
	2016		2015		2014
United States	$	35,867	$	32,807	$	30,380
Canada	1,377		2,451		7,920
Total	$	37,244	$	35,258	$	38,300

Schedule of components of income tax expense (benefit) [Table Text Block]

The provision for income taxes follows:

	Year Ended December 31,
	2016		2015			2014
Currently payable:
Federal	$	12,216	$	13,337		$	13,159
State	2,286		2,487			2,524
Canadian	398		611			2,127
Total current	14,900		16,435			17,810
Deferred taxes	60		(2,975		)	(2,679		)
Total taxes on income	$	14,960	$	13,460		$	15,131

Schedule of effective income tax rate reconciliation [Table Text Block]

A reconciliation of the expected statutory U.S. federal rate to our actual effective income tax rate follows:

	Year Ended December 31,
	2016		2015		2014
Statutory U.S. federal tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	4.0		3.7		3.9
Effect of Canadian income taxes	(.2	)	(.5	)	(1.7	)
Nondeductible expenses	2.2		2.3		1.9
ESOP dividend deduction	(.7	)	(.8	)	(.7	)
Uncertain tax adjustments and audit settlement	.2		1.5		1.6
Valuation allowance	—		(2.2	)	—
All other, net	(.3	)	(.8	)	(.5	)
Effective income tax rate	40.2	%	38.2	%	39.5	%

Deferred tax assets and liabilities, noncurrent [Table Text Block]

Significant components of our noncurrent net deferred tax assets and liabilities at December 31, were as follows:

	December 31,
	2016		2015
Deferred tax assets:
Self-insurance accruals	$	21,967	$	21,136
Accrued compensated absences	3,540		3,189
Accrued expenses and other liabilities	1,394		1,255
Accrued stock compensation	2,502		2,144
Defined benefit pension plans	4,019		3,721
Foreign tax credit carryforward	575		680
Other future deductible amounts, net	4,213		4,354
	38,210		36,479
Deferred tax liabilities:
Intangibles	297		150
Prepaid expenses	3,510		3,138
Property and equipment	23,274		21,670
	27,081		24,958
Net deferred tax assets--noncurrent	$	11,129	$	11,521

Summary of income tax contingencies [Table Text Block]

The balance of unrecognized benefits and the amount of related interest and penalties at December 31, were as follows:

	December 31,
	2016		2015
Unrecognized tax benefits	$	2,532	$	2,557
Portion, if recognized, would reduce tax expense and effective tax rate	2,053		1,981
Accrued interest on unrecognized tax benefits	107		115

Schedule of unrecognized tax benefits roll forward [Table Text Block]

The changes in our unrecognized tax benefits are summarized in the table below:

	Year Ended December 31,
	2016			2015			2014
Balance, beginning of year	$	2,557		$	1,949		$	1,221
Additions based on tax positions related to the current year	402			642			587
Additions for tax positions of prior years	51			52			234
Reductions for tax positions of prior years	(39		)	(63		)	(79		)
Lapses in statutes of limitations	(439		)	(23		)	(14		)
Balance, end of year	$	2,532		$	2,557		$	1,949

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Earnings Per Share Information (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule of earnings per share calculation [Table Text Block]

Earnings per share is computed as follows (adjusted for the two-for-one stock split of our common shares effective June 1, 2017):

	Year Ended December 31,
	2016		2015		2014
Income available to common shareholders:
Net income	$	22,284	$	21,798	$	23,169
Weighted-average shares:
Basic:
Outstanding	25,378,600		26,058,736		26,674,396
Partially-paid share subscriptions	833,440		872,162		968,050
Basic weighted-average shares	26,212,040		26,930,898		27,642,446
Diluted:
Basic from above	26,212,040		26,930,898		27,642,446
Incremental shares from assumed:
Exercise of stock subscription purchase rights	142,746		135,428		109,648
Exercise of stock options and awards	892,568		888,254		724,458
Diluted weighted-average shares	27,247,354		27,954,580		28,476,552
Share data:
Earnings per share--basic	$	.85	$	.81	$	.84
Earnings per share--diluted	$	.82	$	.78	$	.81

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Operations by Business Segment and Geographic Information Operations by business segment (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment [Table Text Block]

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

Schedule of revenue from external customers attributed to foreign countries by geographic area [Table Text Block]

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

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Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]

Fair value, assets measured on recurring basis [Table Text Block]

Our assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and December 31, 2015, were as follows:

			Fair Value Measurements at December 31, 2016 Using:
	Total Carrying Value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Description	December 31, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Assets invested for self-insurance, classified as other assets, noncurrent	$	15,492	$	15,492	$	—	$	—
Defined benefit pension plan assets	11,509		8,627		2,882		—
Liabilities:
Deferred compensation	$	1,837	$	—	$	1,837	$	—

			Fair Value Measurements at December 31, 2015 Using:
	Total Carrying Value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Description	December 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Assets invested for self-insurance, classified as other assets, noncurrent	$	17,167	$	17,167	$	—	$	—
Defined benefit pension plan assets	15,216		12,422		2,794		—
Liabilities:
Deferred compensation	$	1,574	$	—	$	1,574	$	—

Fair value, by balance sheet grouping [Table Text Block]

Financial instruments classified as noncurrent liabilities and their carrying values and fair values were as follows:

	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value
Revolving credit facility, noncurrent	$	67,000	$	67,000	$	54,500	$	54,500
Senior unsecured notes	18,000		18,509		24,000		24,837
Term loans, noncurrent	7,623		9,854		6,604		7,008
Total	$	92,623	$	95,363	$	85,104	$	86,345

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Quarterly Results of Operations Quarterly Results of Operations (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly financial information [Table Text Block]

The following is a summary of the results of operations for each quarter of 2016 and 2015. We have given retroactive consideration to the two-for-one stock split of our common shares effective June 1, 2017.

	Fiscal 2016, Three Months Ended
	Apr 2			July 2		Oct 1		Dec 31
Revenues	$	180,833		$	224,763	$	223,719	$	216,363
Gross profit (revenues less costs and expenses, operating)	57,660			87,631		81,386		77,515
Income (loss) from operations	(5,120		)	24,286		15,042		11,163
Net income (loss)	(4,188		)	13,309		8,141		5,022
Net income (loss) per share -- Basic	$	(.17	)	$	.52	$	.32	$	.18
Net income (loss) per share -- Diluted	$	(.17	)	$	.50	$	.31	$	.18
ESOT valuation per share	$	16.35		$	16.35	$	16.95	$	17.60

	Fiscal 2015, Three Months Ended
	Apr 4			Jul 4		Oct 3		Dec 31
Revenues	$	174,292		$	224,773	$	224,981	$	197,858
Gross profit (revenues less costs and expenses, operating)	54,434			87,432		81,808		69,331
Income (loss) from operations	(3,985		)	27,796		16,177		4,120
Net income (loss)	(3,528		)	15,932		8,174		1,220
Net income (loss) per share -- Basic	$	(.14	)	$	.61	$	.29	$	.05
Net income (loss) per share -- Diluted	$	(.14	)	$	.59	$	.28	$	.05
ESOT valuation per share	$	15.05		$	15.05	$	15.75	$	16.35
Fourth quarters 2016 and 2015 include a decrease in casualty insurance expense that had the effect of increasing the fourth quarter gross profit for 2016 and 2015 by approximately $2,810 and $2,589, respectively.

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Our Business Reportable segments (Details)	12 Months Ended
	Dec. 31, 2016
Number of reportable segments	2

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Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, plant and equipment [Line Items]
Goodwill, impairment loss	$ 0	$ 0	$ 0
Minimum [Member]
Property, plant and equipment [Line Items]
Intangible assets, estimated useful life	1 year
Maximum [Member]
Property, plant and equipment [Line Items]
Intangible assets, estimated useful life	10 years
Land improvements [Member] | Minimum [Member]
Property, plant and equipment [Line Items]
Property and equipment, estimated useful lives	P5Y
Land improvements [Member] | Maximum [Member]
Property, plant and equipment [Line Items]
Property and equipment, estimated useful lives	P20Y
Buildings [Member] | Minimum [Member]
Property, plant and equipment [Line Items]
Property and equipment, estimated useful lives	P5Y
Buildings [Member] | Maximum [Member]
Property, plant and equipment [Line Items]
Property and equipment, estimated useful lives	P30Y
Equipment [Member] | Minimum [Member]
Property, plant and equipment [Line Items]
Property and equipment, estimated useful lives	P3Y
Equipment [Member] | Maximum [Member]
Property, plant and equipment [Line Items]
Property and equipment, estimated useful lives	P10Y
Leasehold improvements [Member] | Minimum [Member]
Property, plant and equipment [Line Items]
Property and equipment, estimated useful lives	P5Y
Leasehold improvements [Member] | Maximum [Member]
Property, plant and equipment [Line Items]
Property and equipment, estimated useful lives	P20Y

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Summary of Significant Accounting Policies Concentration of Risk (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Risks and uncertainties [Abstract]
Concentration risk, percentage	12.00%	11.00%	8.00%

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Summary of Significant Accounting Policies Stock split adjustment (Details)	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Stock split, conversion ratio	2

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Correction of an Error (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)		Dec. 31, 2015 USD ($)		Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Number of put option periods	2
Duration of put option periods	60 days
Retained earnings	$ (133,951)	[1]	$ (123,307)	[1]	$ (114,504)	$ (109,445)
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	124,201		127,089		$ 123,668	113,694
Common shares	35,857	[1]	35,141	[1]		34,301
Additional paid-in capital	41,626	[1]	24,340	[1]		0
Previously reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained earnings	(290,292)		(270,605)			(230,975)
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	0		0			0
Common shares	21,457		21,457			21,457
Additional paid-in capital	23,886		17,815			5,008
Temporary equity [Member] | Restatement adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained earnings	139,190		130,147			104,379
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	124,201		127,089			113,694
Common shares	(2,751)		(3,467)			(4,307)
Additional paid-in capital	17,740		6,525			(5,008)
Stock split [Member] | Restatement adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained earnings	17,151		17,151			17,151
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)	0		0			0
Common shares	17,151		17,151			17,151
Additional paid-in capital	$ 0		$ 0			$ 0

[1] Adjusted for two-for-one stock split

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Recent Accounting Guidance Recent accounting guidance (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Accounting Standards Update 2015-03 [Member]
Reduction of other noncurrent assets and long-term debt	$ 471

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Business Combinations (Details) - USD ($) $ in Thousands	2 Months Ended	12 Months Ended
	Mar. 13, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business acquisition [Line Items]
Investments in businesses		$ 4,888	$ 4,149	$ 12,853
Liabilities assumed		216	0	1,078
Debt issued		875	1,500	2,080
Goodwill acquired during period		817	1,410	4,624
Goodwill acquired during period, tax deductible amount		$ 817	$ 1,410	$ 4,624
Subsequent event [Member]
Business acquisition [Line Items]
Investments in businesses	$ 975
Liabilities assumed	0
Debt issued	$ 375

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Accounts Receivable, Net and Supplemental Balance Sheet Information Accounts Receivable, Net and Supplemental Balance Sheet Information(Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, net
Accounts receivable	$ 128,202	$ 104,567
Receivables under contractual arrangements	21,541	19,142
Accounts receivable, gross, current	149,743	123,709
Less allowances for doubtful accounts	3,609	3,708
Accounts receivable, net	146,134	120,001
Other current assets
Refundable income taxes	548	2,952
Other	1,315	918
Other current assets, total	1,863	3,870
Other assets, noncurrent
Assets invested for self-insurance	15,492	17,167
Investment--cost-method affiliate	1,168	1,172
Deferred income taxes	11,129	11,521
Other	3,565	2,089
Other assets, noncurrent, total	31,354	31,949
Accrued expenses
Employee compensation	18,438	18,176
Accrued compensated absences	9,215	8,607
Self-insured medical claims	2,961	2,347
Customer advances, deposits	2,997	2,564
Income taxes payable	953	0
Taxes, other than income	2,166	3,517
Other	929	935
Accrued expenses, total	37,659	36,146
Other liabilities, noncurrent
Pension and retirement plans	15,982	14,296
Other	4,837	3,382
Other liabilities, noncurrent, total	$ 20,819	$ 17,678

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Supplemental Operating Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Nonoperating Income (Expense) [Abstract]
Other nonoperating expense, net	$ (3,989)	$ (5,744)	$ (3,050)
Foreign currency gains (losses)	$ 113	$ (854)	$ (235)

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Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Supplemental cash flow information
Interest paid	$ 4,329	$ 3,386	$ 2,948
Income taxes paid, net	10,578	16,679	13,577
Noncash transactions
Debt issued for purchases of businesses	(875)	(1,500)	(2,080)
Detail of acquisitions:
Receivables	0	0	1,852
Operating supplies	157	0	61
Prepaid expense	55	0	213
Equipment	2,485	1,264	1,726
Deposits and other	0	11	558
Intangibles	2,191	2,874	8,443
Liabilities assumed	216	0	1,078
Cash paid	$ 3,797	$ 2,649	$ 9,695

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Identified Intangible Assets and Goodwill, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Acquired finite-lived intangible assets [line Items]
Finite-lived intangible assets, gross	$ 30,488	$ 29,118
Accumulated amortization	26,417	24,311
Identified intangibles, net	4,071	4,807
Goodwill	30,305	29,474
Identified intangible assets and goodwill, net	$ 34,376	34,281
Customer lists/relationships
Acquired finite-lived intangible assets [line Items]
Finite-lived intangible assets, remaining amortization period	2 years 7 months 6 days
Finite-lived intangible assets, gross	$ 17,822	16,805
Accumulated amortization	$ 15,171	13,764
Employment-related
Acquired finite-lived intangible assets [line Items]
Finite-lived intangible assets, remaining amortization period	2 years 7 months 6 days
Finite-lived intangible assets, gross	$ 7,032	6,811
Accumulated amortization	$ 6,386	6,008
Tradenames
Acquired finite-lived intangible assets [line Items]
Finite-lived intangible assets, remaining amortization period	2 years 7 months 6 days
Finite-lived intangible assets, gross	$ 5,634	5,502
Accumulated amortization	$ 4,860	$ 4,539

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Identified Intangible Assets and Goodwill, Net Schedule of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Roll Forward]
Goodwill, balance at January 1, 2016	$ 29,474
Goodwill, acquisitions	817	$ 1,410	$ 4,624
Goodwill, translation and other adjustments	14
Goodwill, balance at December 31, 2016	30,305	29,474
Utility
Goodwill [Roll Forward]
Goodwill, balance at January 1, 2016	3,424
Goodwill, acquisitions	0
Goodwill, translation and other adjustments	0
Goodwill, balance at December 31, 2016	3,424	3,424
Residential and Commercial
Goodwill [Roll Forward]
Goodwill, balance at January 1, 2016	26,050
Goodwill, acquisitions	817
Goodwill, translation and other adjustments	14
Goodwill, balance at December 31, 2016	$ 26,881	$ 26,050

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Identified Intangible Assets and Goodwill, Net (Future Amortization of Intangibles) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Finite-lived intangible assets, net, amortization expense, fiscal year maturity [Abstract]
Year ending December 31, 2017	$ 1,705
2018	885
2019	664
2020	512
2021	$ 232

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Short and Long-Term Debt and Commitments Related to Letters of Credit Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Jul. 22, 2010
Debt instrument [Line Items]
Revolving credit facility, noncurrent	$ 67,000	$ 54,500
Senior unsecured notes	24,000	30,000	$ 30,000
Term loans	16,151	16,105
Long-term debt	107,151	100,605
Less debt issuance costs	333	471
Less current portion	16,701	15,501
Long-term debt, excluding current maturities	90,117	84,633
Swing-line borrowings [Member]
Debt instrument [Line Items]
Revolving credit facility, noncurrent	10,000	2,500
LIBOR borrowings [Member]
Debt instrument [Line Items]
Revolving credit facility, noncurrent	$ 57,000	$ 52,000

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Short and Long-Term Debt and Commitments Related to Letters of Credit Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Jul. 22, 2010 USD ($)
Debt instrument [Line Items]
Senior unsecured notes, interest rate	5.09%
Revolving credit facility, current borrowing capacity	$ 175,000
Revolving credit facility, noncurrent	67,000	$ 54,500
Swing line commitment	15,000
Revolving credit facility, maximum borrowing capacity	210,000
Senior unsecured notes	$ 24,000	30,000	$ 30,000
Number of principal payments	5
Anniversary when principal payments begin	6
Unused commitments under credit facility	$ 103,929
Committed under credit facility	7,110
Revolving credit facility borrowings	$ 67,000	$ 54,500
Long-term debt, weighted average interest rate	3.56%	3.55%
Long-term debt, fiscal year maturity [Abstract]
2017	$ 16,701
2018	73,829
2019	6,160
2020	6,169
2021	$ 4,292
Minimum [Member]
Debt instrument [Line Items]
Line of credit facility, commitment fee percentage	0.10%
Maximum [Member]
Debt instrument [Line Items]
Line of credit facility, commitment fee percentage	0.25%
Line of credit [Member]
Debt instrument [Line Items]
Revolving credit facility, noncurrent	$ 71,071
Revolving credit facility borrowings	71,071
Letter of credit [Member]
Debt instrument [Line Items]
Letters of credit outstanding	$ 64,225	$ 59,350
Base rate [Member] | Line of credit [Member]
Debt instrument [Line Items]
Outstanding borrowings interest rate margin adjustment range	0.50%
London Interbank Offered Rate (LIBOR) [Member] | Line of credit [Member]
Debt instrument [Line Items]
Outstanding borrowings interest rate margin adjustment range	1.50%
London Interbank Offered Rate (LIBOR) [Member] | Line of credit [Member] | Minimum [Member]
Debt instrument [Line Items]
Outstanding borrowings interest rate margin adjustment range	0.75%
London Interbank Offered Rate (LIBOR) [Member] | Line of credit [Member] | Maximum [Member]
Debt instrument [Line Items]
Outstanding borrowings interest rate margin adjustment range	1.50%
Revolving credit facility [Member] | Letter of credit [Member]
Debt instrument [Line Items]
Letters of credit outstanding	$ 4,071	57,347
Accounts receivable securitization [Member]
Debt instrument [Line Items]
Senior unsecured notes, interest rate	0.90%
Long-term debt, fiscal year maturity [Abstract]
Unused commitment fee threshold percent	0.50
Debt instrument variable rate base rate calculation, default rate	2.00%
Accounts receivable securitization [Member] | Letter of credit [Member]
Debt instrument [Line Items]
Letters of credit outstanding	$ 58,150
Long-term debt, fiscal year maturity [Abstract]
Debt Instrument, Term	1 year
Accounts receivable securitization [Member] | Letter of credit [Member] | Minimum [Member]
Long-term debt, fiscal year maturity [Abstract]
Letter of credit, unused capacity, commitment fee percentage	0.0035
Accounts receivable securitization [Member] | Letter of credit [Member] | Maximum [Member]
Long-term debt, fiscal year maturity [Abstract]
Letter of credit, unused capacity, commitment fee percentage	0.0045
Accounts receivable securitization [Member] | Base rate, federal funds [Member]
Long-term debt, fiscal year maturity [Abstract]
Debt instrument, variable rate, base rate calculation	0.50%
Line of credit [Member] | Letter of credit [Member]
Debt instrument [Line Items]
Letters of credit outstanding	$ 2,004	$ 2,003
Line of credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Debt instrument [Line Items]
Outstanding borrowings interest rate margin adjustment range	1.50%
Letter of credit [Member]
Debt instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 100,000

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Self-Insurance Accruals (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Self-Insurance Accruals [Abstract]
Workers' compensation			$ 38,811	$ 35,304
Present value discount			2,236	1,937
Workers' compensation, net of discount			36,575	33,367
Vehicle liability			4,763	5,880
General liability			21,500	21,092
Total	$ 60,339	$ 58,893	62,838	60,339
Less current portion			23,092	22,553
Noncurrent portion			$ 39,746	$ 37,786
Loss contingency accrual [Roll Forward]
Balance, beginning of year	60,339	58,893
Provision for claims	33,404	33,499
Payment of claims	30,905	32,053
Balance, end of year	$ 62,838	$ 60,339
Workers' compensation discount rate	2.20%	2.20%

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Lease Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Capital leased assets [Line Items]
Assets acquired under captial lease, net	$ 2,368	$ 0
Operating leases, maximum lease terms	5 years
Capital leases, future minimum payments due, fiscal year maturity [Abstract]
Year ending December 31, 2017	$ 171
2018	271
2019	756
2020	632
2021	515
2022 and after	0
Total minimum lease payments	2,345
Amounts representing interest	2
Present value of net minimum lease payments	2,343
Less current portion	170	0
Long-term capital lease obligations, December 31, 2016	2,173	0
Operating leases, future minimum payments due, fiscal year maturity [Abstract]
Year ending December 31, 2017	6,369
2018	4,559
2019	3,380
2020	2,398
2021	1,164
2022 and after	1,266
Total minimum lease payments	19,136
Operating leases, rent expense	7,536	7,398	$ 6,554
Equipment [Member]
Capital leased assets [Line Items]
Equipment	2,528	0
Less accumulated amortization	$ 160	$ 0

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Common Shares and Preferred Shares Common shares outstanding (Details)		12 Months Ended
		Dec. 31, 2016 USD ($) $ / shares shares		Dec. 31, 2015 USD ($) $ / shares shares		Dec. 31, 2014 USD ($) shares
Stock split, conversion ratio		2
Preferred shares
Preferred stock, shares authorized		4,000,000
Preferred stock, par value | $ / shares		$ 0
Preferred stock, shares issued		0
Common stock, number of shares, par value and other disclosures [Abstract]
Common stock, shares authorized		48,000,000		48,000,000
Common stock, par value | $ / shares		$ 1.00		$ 1.00
Common stock, shares issued	[1]	35,857,000		35,141,000		34,697,000
Treasury stock, shares	[1]	17,990,620		17,427,132		16,583,894
Common shares, direct sales	[1]	24,242
Common shares, value, direct sales | $		$ 397,000
Stock issued during period, shares, employee benefit plan	[1]	89,972
Stock issued during period, value, employee retirement plan | $		$ 1,488,000
Common shares, employer matching contribution, shares	[1]	206,308
Employee retirement plan, employer match | $		$ 3,373,000
Defined contribution plan, cost recognized | $		$ 3,661,000		$ 3,373,000		$ 3,055,000
Stock issued during period, shares, employee stock purchase plan	[1]	297,262		251,558		230,058
Increase (decrease) in stockholders' equity [Roll Forward]
Shares outstanding, December 31, 2014		25,486,628	[1]	26,329,866
Shares purchased		(1,492,082)	[1]	(1,647,654)
Shares sold		617,784		575,750
Stock subscription offering, employee cash purchases		48,730		86,142
Options exercised		262,080		142,524
Shares purchased		24,923,140	[1]	25,486,628	[1]	26,329,866
Per share amounts and common shares outstanding [Abstract]
Share-based compensation arrangement by share-based payment award, options, exercisable, number	[1]	750,896
Stock subscription offering, number of partially-paid subscriptions	[1]	833,440
Stock subscription offering, number of rights outstanding	[1]	338,382
Common shares [Member]
Increase (decrease) in stockholders' equity [Roll Forward]
Shares outstanding, December 31, 2014		17,713,576	[1]	18,112,735
Shares purchased		(479,807)		(919,699)
Shares sold		321,657		291,874
Stock subscription offering, employee cash purchases		48,730		86,142
Options exercised		262,080		142,524
Shares purchased		17,866,236	[1]	17,713,576	[1]	18,112,735
Temporary equity [Member]
Increase (decrease) in stockholders' equity [Roll Forward]
Shares outstanding, December 31, 2014		7,773,052	[1]	8,217,131
Shares purchased		(1,012,000)		(727,955)
Shares sold		296,000		283,876
Stock subscription offering, employee cash purchases		0		0
Options exercised		0		0
Shares purchased		7,056,904	[1]	7,773,052	[1]	8,217,131
Treasury stock [Member]
Common stock, number of shares, par value and other disclosures [Abstract]
Shares purchased, value | $		$ 25,290,000		$ 25,395,000		$ 19,598,000
Increase (decrease) in stockholders' equity [Roll Forward]
Shares purchased		(1,492,000)		(1,648,000)		(1,454,000)
Shares sold		617,000		576,000		574,000

[1] Adjusted for two-for-one stock split

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Common Shares and Preferred Shares Stock subscription (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares
Stock subscription offering [Abstract]
Stock subscription offering, subscription price | $ / shares	$ 9.85	[1]
Stock subscription offering, number of shares subscribed | shares	1,275,428	[1]
stock subscription offering, value of shares subscribed | $	$ 12,563,000
Stock subscription offering, minimum financed amount | $	$ 5,000
Stock subscription offering, down payment	10.00%
Stock subscription offering, term	7 years
Stock subscription offering interest rate	2.00%
Stock subscription offering, minimum amount to receive right | $	$ 5,000
stock subscription offering, number of shares purchased to receive one right | shares	3
Stock subscription offering, number of rights issued | shares	423,600	[1]
Stock subscription offering, portion exercisable per year	14.29%
Stock subscription offering, right expiration term	7 years

[1] Adjusted for two-for-one stock split

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Increase (decrease) in accumulated other comprehensive income (loss) [Roll Forward]
Balance at the beginning of the year	$ (13,394)	$ (11,523)	$ (4,393)
Unrealized gains (losses)	744	(5,093)	(2,798)
Amounts reclassified from accumulated other comprehensive income (loss)	2,844	4,774	2,786
Tax effect	(1,137)	(1,878)	(1,095)
Unrecognized amounts from defined benefit pension plans	(2,032)	538	(9,923)
Tax effect	813	(212)	3,900
Net of tax amount	1,232	(1,871)	(7,130)
Balance at the end of the year	(12,162)	(13,394)	(11,523)
Foreign Currency Translation Adjustments
Increase (decrease) in accumulated other comprehensive income (loss) [Roll Forward]
Balance at the beginning of the year	(6,244)	(1,151)	1,647
Unrealized gains (losses)	744	(5,093)	(2,798)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0
Tax effect	0	0	0
Unrecognized amounts from defined benefit pension plans	0	0	0
Tax effect	0	0	0
Net of tax amount	744	(5,093)	(2,798)
Balance at the end of the year	(5,500)	(6,244)	(1,151)
Defined Benefit Pension Plans
Increase (decrease) in accumulated other comprehensive income (loss) [Roll Forward]
Balance at the beginning of the year	(7,150)	(10,372)	(6,040)
Unrealized gains (losses)	0	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	2,844	4,774	2,786
Tax effect	(1,137)	(1,878)	(1,095)
Unrecognized amounts from defined benefit pension plans	(2,032)	538	(9,923)
Tax effect	813	(212)	3,900
Net of tax amount	488	3,222	(4,332)
Balance at the end of the year	$ (6,662)	$ (7,150)	$ (10,372)

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The Davey 401KSOP and Employee Stock Ownership Plan (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Employee Stock Ownership Plan (ESOP) disclosures [Line Items]
Employee stock ownership plan (ESOP), initial shares in ESOP | shares	120,000
Employee stock ownership plan (ESOP), shares adjusted for stock splits | shares	23,040,000
Employee stock ownership plan (ESOP), initial value in ESOP	$ 2,700
Defined contribution plan, eligible age	21
Defined contribution plan, service requirement for eligibility	1 year
Number of put option periods	2
Duration of put option periods	60 days
Employee Stock Ownership Plan (ESOP), Fair Value of Shares Subject to Repurchase Obligation	$ 1,148	$ 6,829
Company shares held in 401KSOP and ESOP, fair value	123,053	120,260
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP): 7,057 and 7,773 shares at redemption value as of December 31, 2016 and 2015	124,201	127,089	$ 123,668	$ 113,694
Employee retirement plan, employer match	$ 3,661	$ 3,373	$ 3,055
First 1% [Member]
Employee Stock Ownership Plan (ESOP) disclosures [Line Items]
Defined contribution plan, employer matching contribution, percent	100.00%
First 1% [Member] | Maximum [Member]
Employee Stock Ownership Plan (ESOP) disclosures [Line Items]
Defined contribution plan, employer matching contribution, percent	1.00%
1% to 4% [Member]
Employee Stock Ownership Plan (ESOP) disclosures [Line Items]
Defined contribution plan, employer matching contribution, percent	50.00%
1% to 4% [Member] | Minimum [Member]
Employee Stock Ownership Plan (ESOP) disclosures [Line Items]
Defined contribution plan, employer matching contribution, percent	1.00%
1% to 4% [Member] | Maximum [Member]
Employee Stock Ownership Plan (ESOP) disclosures [Line Items]
Defined contribution plan, employer matching contribution, percent	4.00%

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Stock-Based Compensation Employee stock purchase plan (Details)		12 Months Ended
		Dec. 31, 2016 $ / shares shares	Dec. 31, 2015 $ / shares shares	Dec. 31, 2014 $ / shares shares
Employee Stock Ownership Plan (ESOP) disclosures [Line Items]
Number of employees participating		1,952	1,750	1,684
Shares purchased during the year	[1]	297,262	251,558	230,058
Weighted-average per share purchase price paid | $ / shares	[1]	$ 14.17	$ 13.11	$ 11.54
Cumulative shares purchased since 1982	[1]	18,051,330	17,754,068	17,502,510

[1] Adjusted for two-for-one stock split

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Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock split, conversion ratio		2
Annual percentage of outstanding shares available for grant, maximum		5.00%
Cumulative percentage of outstanding shares available for grant in a year, maximum		10.00%
Salaries, Wages and Officers' Compensation [Abstract]
Compensation expense, stock-based compensation | $		$ 2,811	$ 2,327	$ 1,860
Income tax benefit | $		$ 823	$ 694	$ 549
Employee Stock Purchase Plan [Abstract]
Employee stock purchase plan, service period		1 year
Employee stock purchase plan, percentage of market price, purchase date		85.00%
Employee stock purchase, discount from market price, purchase date		15.00%
Number of employees participating		1,952	1,750	1,684
Shares purchased during the year | shares	[1]	297,262	251,558	230,058
Cumulative shares purchased since 1982 | shares	[1]	18,051,330	17,754,068	17,502,510
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Volatility rate		10.60%	10.90%	11.20%
Risk-free interest rate		1.80%	2.10%	2.60%
Expected dividend yield		0.70%	0.70%	1.10%
Expected life of awards (years)		9 years 6 months	9 years 3 months 18 days	9 years 4 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning balance | shares	[1]	1,633,488
Granted | shares	[1]	296,000
Exercised | shares	[1]	(275,392)
Forfeited | shares	[1]	54,800
Outstanding, ending balance | shares	[1]	1,599,296	1,633,488
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Exercisable, ending balance | shares	[1]	750,896
Outstanding, weighted average exercise price, ending balance	[1]	$ 12.49	$ 10.79
Granted, weighted average exercise price	[1]	16.35
Exercised, weighted average exercise price	[1]	6.19
Forfeited, weighted average exercise price	[1]	14.40
Exercisable, weighted average exercise price	[1]	$ 10.42
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $		$ 1,886
Exercisable, weighted average remaining contractual life (years)		5 years 3 months 18 days
Outstanding, aggregate intrinsic value | $		$ 7,141
Exercisable, aggregate intrinisic value | $		4,903
Excess tax benefits | $		1,113	$ 352	$ 354
Employee stock option [Member]
Salaries, Wages and Officers' Compensation [Abstract]
Compensation expense, stock-based compensation | $		$ 727	569	463
Employee stock option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual life (years)		6 years 9 months 18 days
Number outstanding | shares	[1]	1,599,296
Outstanding options, weighted average exercise price	[1]	$ 12.49
Number exercisable | shares	[1]	750,896
Exercisable options, weighted average exercise price	[1]	$ 10.42
Employee stock option [Member] | $16.00 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Lower range limit		8
Upper range limit		$ 8
Number outstanding | shares	[1]	177,706
Weighted average remaining contractual life (years)		2 years 9 months 18 days
Outstanding options, weighted average exercise price	[1]	$ 8.00
Number exercisable | shares	[1]	177,706
Exercisable options, weighted average exercise price	[1]	$ 8.00
Employee stock option [Member] | Exercise Price Range, Range 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Lower range limit		8.3
Upper range limit		$ 8.3
Number outstanding | shares	[1]	190,190
Weighted average remaining contractual life (years)		3 years 9 months 18 days
Outstanding options, weighted average exercise price	[1]	$ 8.30
Number exercisable | shares	[1]	190,190
Exercisable options, weighted average exercise price	[1]	$ 8.30
Employee stock option [Member] | Exercise Price Range, Range 3 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Lower range limit		11.6
Upper range limit		$ 11.6
Number outstanding | shares	[1]	363,300
Weighted average remaining contractual life (years)		6 years 6 months
Outstanding options, weighted average exercise price	[1]	$ 11.60
Number exercisable | shares	[1]	204,500
Exercisable options, weighted average exercise price	[1]	$ 11.60
Employee stock option [Member] | Exercise Price Range, Range 4 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Lower range limit		13.2
Upper range limit		$ 13.2
Number outstanding | shares	[1]	346,100
Weighted average remaining contractual life (years)		7 years 6 months
Outstanding options, weighted average exercise price	[1]	$ 13.20
Number exercisable | shares	[1]	125,900
Exercisable options, weighted average exercise price	[1]	$ 13.20
Employee stock option [Member] | Exercise Price Range, Range 5 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Lower range limit		15.05
Upper range limit		$ 15.05
Number outstanding | shares	[1]	267,000
Weighted average remaining contractual life (years)		8 years 6 months
Outstanding options, weighted average exercise price	[1]	$ 15.05
Number exercisable | shares	[1]	52,600
Exercisable options, weighted average exercise price	[1]	$ 15.05
Employee stock option [Member] | Exercise Price Range, Range 6 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Lower range limit		16.35
Upper range limit		$ 16.35
Number outstanding | shares	[1]	255,000
Weighted average remaining contractual life (years)		9 years 6 months
Outstanding options, weighted average exercise price	[1]	$ 16.35
Number exercisable | shares	[1]	0
Exercisable options, weighted average exercise price	[1]	$ 16.35
Stock Appreciation Rights (SARs) [Member]
Salaries, Wages and Officers' Compensation [Abstract]
Compensation expense, stock-based compensation | $		$ 591	$ 489	384
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Vesting period		5 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning balance | shares	[1]	661,414
Granted | shares	[1]	300,200
Forfeited | shares	[1]	0
Vested | shares	[1]	(217,952)
Unvested, ending balance | shares	[1]	743,662	661,414
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Unvested, weighted average award date value, beginning balance	[1]	$ 2.33
Granted, weighted average award date value	[1]	3.19
Forfeited, weighted average award date value	[1]	0
Vested, weighted average award date value	[1]	2.05
Unvested, weighted average award date value, ending balance	[1]	$ 2.75	$ 2.33
Weighted average remaining contractual life (years)		2 years 9 months 18 days
Unrecognized compensation cost | $		$ 1,515
Aggregate intrinsic value, unvested | $		$ 12,605
Employee SSARs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, ending balance | shares	[1]	737,664
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Unvested, weighted average award date value, ending balance	[1]	$ 2.76
Weighted average remaining contractual life (years)		2 years 10 months 24 days
Unrecognized compensation cost | $		$ 1,513
Aggregate intrinsic value, unvested | $		12,503
Equity Option [Member]
Salaries, Wages and Officers' Compensation [Abstract]
Compensation expense, stock-based compensation | $		$ 596	$ 494	398
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Vesting period		10 years
Restricted Stock Units (RSUs) [Member]
Salaries, Wages and Officers' Compensation [Abstract]
Compensation expense, stock-based compensation | $		$ 897	$ 775	$ 615
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning balance | shares	[1]	283,970
Granted | shares	[1]	70,030
Forfeited | shares	[1]	0
Vested | shares	[1]	(49,042)
Unvested, ending balance | shares	[1]	304,958	283,970
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Unvested, weighted average award date value, beginning balance	[1]	$ 11.99
Granted, weighted average award date value	[1]	15.80
Forfeited, weighted average award date value	[1]	0
Vested, weighted average award date value	[1]	9.82
Unvested, weighted average award date value, ending balance	[1]	$ 13.21	$ 11.99
Weighted average remaining contractual life (years)		2 years 6 months
Unrecognized compensation cost | $		$ 2,119
Aggregate intrinsic value, unvested | $		$ 5,169
Nonemployee Director SSARs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, ending balance | shares	[1]	5,998
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Unvested, weighted average award date value, ending balance	[1]	$ 1.01
Weighted average remaining contractual life (years)		4 months 24 days
Unrecognized compensation cost | $		$ 2
Aggregate intrinsic value, unvested | $		$ 102
Employee PRSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, ending balance | shares	[1]	266,168
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Unvested, weighted average award date value, ending balance	[1]	$ 13.05
Weighted average remaining contractual life (years)		2 years 8 months 12 days
Unrecognized compensation cost | $		$ 1,843
Aggregate intrinsic value, unvested | $		$ 4,512
Nonemployee Director PRSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, ending balance | shares	[1]	38,790
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Unvested, weighted average award date value, ending balance	[1]	$ 14.35
Weighted average remaining contractual life (years)		1 year 8 months 12 days
Unrecognized compensation cost | $		$ 276
Aggregate intrinsic value, unvested | $		$ 657

[1] Adjusted for two-for-one stock split

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Defined Benefit Pension Plans Change in benefit obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined benefit plan, change in benefit obligation [Roll Forward]
Projected benefit obligation at beginning of year	$ 27,228	$ 35,876
Service cost	370	35	$ 51
Interest cost	1,243	1,486	1,618
Actuarial (gains)/losses	1,150	(2,445)
New longevity assumptions	(447)	(340)
Amendments	341	0
Curtailments	0	(404)
Settlements	(4,873)	(6,186)
Benefits paid	(179)	(794)
Projected benefit obligation at end of year	24,833	27,228	$ 35,876
Accumulated benefit obligation at end of year	$ 24,833	$ 27,228

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Defined Benefit Pension Plans Change in fair value of plan assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Defined benefit plan, change in fair value of plan assets [Roll Forward]
Fair value of plan assets at beginning of year	$ 15,216	$ 21,567
Actual return on plan assets	400	(135)
Plan expenses, including PBGC premiums	(727)	(536)
Employer contributions	1,672	1,300
Settlements	4,873	6,186
Benefits paid	(179)	(794)
Fair value of plan assets at end of year	$ 11,509	$ 15,216
Plan for bargaining employees not covered by union pension plans [Member]
Defined benefit plan disclosure [Line Items]
Defined contribution plan, number of employees settled	94
Defined benefit plan, change in fair value of plan assets [Roll Forward]
Employer contributions	$ 522
Settlements	$ 453
Employee retirement plan [Member]
Defined benefit plan disclosure [Line Items]
Defined contribution plan, number of employees settled	224

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Defined Benefit Pension Plans Funded status of the plans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	$ 11,509	$ 15,216	$ 21,567
Projected benefit obligation	24,833	27,228	$ 35,876
Funded status of the plans	$ (13,324)	$ (12,012)

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Defined Benefit Pension Plans Amounts reported in the consolidated balance sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Defined benefit plan disclosure [Line Items]
Current liability	$ (83)	$ (499)
Noncurrent liability	(13,241)	(11,513)
Funded status of the plans	$ (13,324)	$ (12,012)

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Defined Benefit Pension Plans Amounts reported in accumulated other comprehensive income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amounts reported in accumulated other comprehensive income
Unrecognized net actuarial loss, pretax	$ 10,675	$ 11,836
Unrecognized net actuarial loss, net of tax	6,456	7,150
Unrecognized prior service cost, pretax	341	0
Unrecognized prior service cost, net of tax	206	0
Amounts reported in accumulated other comprehensive income, pretax	11,016	11,836
Amounts reported in accumulated other comprehensive income, net of tax	6,662	7,150
Amortization of Costs Expected to be Recognized Next Year
Unrecognized net actuarial loss, pretax	949
Unrecognized net actuarial loss, net of tax	569
Unrecognized prior service cost, pretax	64
Unrecognized prior service cost, net of tax	38
Amortization of costs expected to be recognized next year, pretax	1,013
Amortization of costs expected to be recognized next year, net of tax	607
For pension plans with accumulated benefit obligations in excess of plan assets
Projected benefit obligation	24,833	27,228	$ 35,876
Accumulated benefit obligation	24,833	27,228
Fair value of plan assets	$ 11,509	$ 15,216	$ 21,567

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Defined Benefit Pension Plans Actuarial Assumptions (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined benefit plan disclosure [Line Items]
Discount rate	4.20%	4.70%	4.30%
Expected long-term rate of return on plan assets	5.00%	7.25%	7.50%
Equity securities [Member]
Defined benefit plan disclosure [Line Items]
Defined benefit plan, target plan asset allocations range minimum	20.00%
Defined benefit plan, target plan asset allocations range maximum	40.00%
Fixed income and cash [Member]
Defined benefit plan disclosure [Line Items]
Defined benefit plan, target plan asset allocations range minimum	50.00%
Defined benefit plan, target plan asset allocations range maximum	70.00%
Alternative investments [Member]
Defined benefit plan disclosure [Line Items]
Defined benefit plan, target plan asset allocations range minimum	0.00%
Defined benefit plan, target plan asset allocations range maximum	15.00%
Minimum [Member]
Defined benefit plan disclosure [Line Items]
Defined benefit plan, risk management practices, investment evaluation period	3 years
Maximum [Member]
Defined benefit plan disclosure [Line Items]
Defined benefit plan, risk management practices, investment evaluation period	5 years

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Defined Benefit Pension Plans Components of Pension Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service costs--increase in benefit obligation earned	$ 370	$ 35	$ 51
Interest cost on projected benefit obligation	1,243	1,486	1,618
Expected return on plan assets	(1,044)	(1,576)	(1,993)
Curtailment loss	0	49	0
Settlement loss	2,346	2,915	2,065
Amortization of net actuarial loss	951	1,400	708
Amortization of prior service cost	0	6	14
Net pension expense of defined benefit pension plans	$ 3,866	$ 4,315	$ 2,463

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Defined Benefit Pension Plans Fair Value of Plan Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined benefit plan disclosure [Line Items]
Total carrying value	$ 11,509	$ 15,216
Fair value of plan assets	11,509	15,216	$ 21,567
Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	8,627	12,422
Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	2,882	2,794
Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
Money market funds
Defined benefit plan disclosure [Line Items]
Total carrying value	2,882	2,794
Money market funds | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
Money market funds | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	2,882	2,794
Money market funds | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
U.S. large-cap equities, growth [Member]
Defined benefit plan disclosure [Line Items]
Total carrying value	687	1,869
U.S. large-cap equities, growth [Member] | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	687	1,869
U.S. large-cap equities, growth [Member] | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
U.S. large-cap equities, growth [Member] | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
U.S. large-cap equities, value [Member]
Defined benefit plan disclosure [Line Items]
Total carrying value	729	1,492
U.S. large-cap equities, value [Member] | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	729	1,492
U.S. large-cap equities, value [Member] | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
U.S. large-cap equities, value [Member] | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
U.S. small/mid-cap equities, growth [Member]
Defined benefit plan disclosure [Line Items]
Total carrying value	339	781
U.S. small/mid-cap equities, growth [Member] | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	339	781
U.S. small/mid-cap equities, growth [Member] | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
U.S. small/mid-cap equities, growth [Member] | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
U.S. small/mid-cap equities, value [Member]
Defined benefit plan disclosure [Line Items]
Total carrying value	339	1,003
U.S. small/mid-cap equities, value [Member] | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	339	1,003
U.S. small/mid-cap equities, value [Member] | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
U.S. small/mid-cap equities, value [Member] | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
International equities, growth [Member]
Defined benefit plan disclosure [Line Items]
Total carrying value	443	1,270
International equities, growth [Member] | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	443	1,270
International equities, growth [Member] | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
International equities, growth [Member] | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
International equities, value [Member]
Defined benefit plan disclosure [Line Items]
Total carrying value	514	1,183
International equities, value [Member] | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	514	1,183
International equities, value [Member] | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
International equities, value [Member] | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
Fixed income
Defined benefit plan disclosure [Line Items]
Total carrying value	4,669	3,035
Fixed income | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	4,669	3,035
Fixed income | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
Fixed income | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
Multiclass world-allocation mutual funds
Defined benefit plan disclosure [Line Items]
Total carrying value	907	1,789
Multiclass world-allocation mutual funds | Quoted prices in active markets, (level 1) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	907	1,789
Multiclass world-allocation mutual funds | Significant other observable inputs, (level 2) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	0	0
Multiclass world-allocation mutual funds | Significant unobservable inputs, (level 3) [Member]
Defined benefit plan disclosure [Line Items]
Fair value of plan assets	$ 0	$ 0

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Defined Benefit Pension Plans Expected Benefits (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)
Defined benefit plan disclosure [Line Items]
Year ending December 31, 2017	$ 659
2018	878
2019	981
2020	1,088
2021	1,167
Years 2022 to 2026	6,677
Pension plans, defined benefit [Member]
Defined benefit plan disclosure [Line Items]
Defined benefit plans, estimated future employer contributions in next fiscal year	$ 1,504

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Defined Benefit Pension Plans Multiemployer Pension Plans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Multiemployer Plans [Line Items]
Multiemployer plan, period contributions	$ 802	$ 893	$ 848
National Electric Benefit Fund [Member]
Multiemployer Plans [Line Items]
Number of collective-bargaining agreements	9
Multiemployer plan, period contributions	$ 712	774	743
Eighth District Electrical Pension Fund [Member]
Multiemployer Plans [Line Items]
Number of collective-bargaining agreements	1
Multiemployer plan, period contributions	$ 90	$ 119	$ 105

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Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Income before income taxes
Income before income taxes	$ 37,244	$ 35,258	$ 38,300
Provision for income taxes
Federal	12,216	13,337	13,159
State	2,286	2,487	2,524
Canadian	398	611	2,127
Total current	14,900	16,435	17,810
Deferred taxes	60	(2,975)	(2,679)
Total taxes on income	$ 14,960	$ 13,460	$ 15,131
Tax rate reconciliation
Statutory U.S. federal tax rate	35.00%	35.00%	35.00%
State income taxes, net of federal benefit	4.00%	3.70%	3.90%
Effect of Canadian income taxes	(0.20%)	(0.50%)	(1.70%)
Nondeductible expenses	2.20%	2.30%	1.90%
ESOP dividend deduction	(0.70%)	(0.80%)	(0.70%)
Uncertain tax adjustments and audit settlement	0.20%	1.50%	1.60%
Valuation allowance	(0.00%)	(2.20%)	(0.00%)
All other, net	(0.30%)	(0.80%)	(0.50%)
Effective income tax rate	40.20%	38.20%	39.50%
Current deferred tax assets and liabilities, net
Deferred income tax assets--noncurrent				$ 38,210	$ 36,479
Net deferred tax assets--noncurrent				11,129	11,521
Noncurrent deferred tax assets and liabilities, net
Self-insurance accruals				21,967	21,136
Accrued compensated absences				3,540	3,189
Accrued expenses and other liabilities				1,394	1,255
Accrued stock compensation				2,502	2,144
Defined benefit pension plans				4,019	3,721
Foreign tax credit carryforward				575	680
Other future deductible amounts, net				4,213	4,354
Deferred tax assets, net--noncurrent				38,210	36,479
Intangibles				297	150
Prepaid expenses				3,510	3,138
Property and equipment				23,274	21,670
Deferred tax liability, noncurrent				27,081	24,958
Net deferred tax assets--noncurrent				11,129	11,521
Undistributed earnings of foreign subsidiaries				28,983
Unrecognized benefits and related interest and penalties
Unrecognized tax benefits	$ 2,557	$ 1,949	$ 1,221	2,532	2,557
Portion, if recognized, would reduce tax expense and effective tax rate				2,053	1,981
Accrued interest on unrecognized tax benefits				$ 107	$ 115
Reconciliation of unrecognized tax benefits
Balance, beginning of year	2,557	1,949	1,221
Additions based on tax positions related to the current year	402	642	587
Additions for tax positions of prior years	51	52	234
Reductions for tax positions of prior years	(39)	(63)	(79)
Lapses in statutes of limitations	(439)	(23)	(14)
Balance, end of year	2,532	2,557	1,949
United States [Member]
Income before income taxes
Income before income taxes	35,867	32,807	30,380
Canada [Member]
Income before income taxes
Income before income taxes	$ 1,377	$ 2,451	$ 7,920

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Earnings Per Share Information (Details) $ / shares in Units, $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2016 USD ($) $ / shares	Oct. 01, 2016 USD ($) $ / shares	Jul. 02, 2016 USD ($) $ / shares	Apr. 02, 2016 USD ($) $ / shares	Dec. 31, 2015 USD ($) $ / shares	Oct. 03, 2015 USD ($) $ / shares	Jul. 04, 2015 USD ($) $ / shares	Apr. 04, 2015 USD ($) $ / shares	Dec. 31, 2016 USD ($) $ / shares shares		Dec. 31, 2015 USD ($) $ / shares shares		Dec. 31, 2014 USD ($) $ / shares shares
Earnings Per Share [Abstract]
Stock split, conversion ratio										2
Net income | $		$ 5,022	$ 8,141	$ 13,309	$ (4,188)	$ 1,220	$ 8,174	$ 15,932	$ (3,528)	$ 22,284		$ 21,798		$ 23,169
Weighted-average shares, basic
Outstanding	[1]									25,378,600		26,058,736		26,674,396
Partially-paid share subscriptions	[1]									833,440		872,162		968,050
Basic weighted-average shares	[1]									26,212,040		26,930,898		27,642,446
Weighted-average shares, diluted
Exercise of stock subscription purchase rights	[1]									142,746		135,428		109,648
Exercise of stock options and awards	[1]									892,568		888,254		724,458
Diluted weighted-average shares	[1]									27,247,354		27,954,580		28,476,552
Earnings per share--basic | $ / shares		$ 0.18	$ 0.32	$ 0.52	$ (0.17)	$ 0.05	$ 0.29	$ 0.61	$ (0.14)	$ 0.85	[1]	$ 0.81	[1]	$ 0.84	[1]
Earnings per share--diluted | $ / shares		$ 0.18	$ 0.31	$ 0.50	$ (0.17)	$ 0.05	$ 0.28	$ 0.59	$ (0.14)	$ 0.82	[1]	$ 0.78	[1]	$ 0.81	[1]

[1] Adjusted for two-for-one stock split

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Operations by Business Segment and Geographic Information Operations by Busines Segment (Details) $ in Thousands		3 Months Ended									12 Months Ended
		Dec. 31, 2016 USD ($)		Oct. 01, 2016 USD ($)	Jul. 02, 2016 USD ($)	Apr. 02, 2016 USD ($)	Dec. 31, 2015 USD ($)	Oct. 03, 2015 USD ($)	Jul. 04, 2015 USD ($)	Apr. 04, 2015 USD ($)	Dec. 31, 2016 USD ($)		Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Segment reporting information [Line Items]
Number of reportable segments											2
Revenues											$ 845,678		$ 821,904	$ 789,911
Income (loss) from operations		$ 11,163		$ 15,042	$ 24,286	$ (5,120)	$ 4,120	$ 16,177	$ 27,796	$ (3,985)	45,371		44,108	44,003
Interest expense											4,393		3,355	2,948
Interest income											255		249	295
Other											(3,989)		(5,744)	(3,050)
Income before income taxes											37,244		35,258	38,300
Depreciation											47,284		44,677	40,970
Amortization											2,306		2,214	2,070
Capital expenditures											56,646		56,047	55,731
Segment assets, total		423,939					393,586				423,939		393,586	381,004
Utility Services
Segment reporting information [Line Items]
Revenues											433,379		433,117	404,519
Income (loss) from operations											19,256		24,273	21,382
Depreciation											26,855		25,466	23,225
Amortization											135		144	174
Capital expenditures											28,660		26,853	25,994
Segment assets, total		171,220					145,306				171,220		145,306	150,002
Residential Commercial Services
Segment reporting information [Line Items]
Revenues											410,878		386,327	386,274
Income (loss) from operations											36,640		35,271	37,232
Depreciation											17,198		15,592	14,544
Amortization											2,136		2,062	1,896
Capital expenditures											21,819		22,853	17,490
Segment assets, total		166,858					162,679				166,858		162,679	144,413
All Other
Segment reporting information [Line Items]
Revenues											1,421		2,460	(882)
Income (loss) from operations											(4,318)		(5,368)	(6,037)
Depreciation											0		0	0
Amortization											0		0	0
Capital expenditures											0		0	0
Segment assets, total		0					0				0		0	0
Corporate, Non-Segment [Member]
Segment reporting information [Line Items]
Revenues											0		0	0
Income (loss) from operations											(6,207)	[1]	(10,068)	(8,574)	[1]
Interest expense											4,393		3,355	2,948
Interest income											255		249	295
Other											(3,989)		(5,744)	(3,050)
Depreciation	[2]										3,231		3,619	3,201
Amortization											35		8	0
Capital expenditures											6,167		6,341	12,247
Segment assets, total		$ 85,861	[3]				$ 85,601				$ 85,861	[3]	$ 85,601	$ 86,589	[3]

[1] Reconciling adjustments from segment reporting to consolidated external financial reporting include reclassification of depreciation expense and allocation of corporate expenses.

[2] Adjustments to declining-balance method depreciation expense from straight-line method and depreciation and amortization of corporate assets.

[3] Corporate assets include cash, prepaid expenses, corporate facilities, enterprise-wide information systems and other nonoperating assets.

XML

Operations by Business Segment and Geographic Information Geographic Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment reporting information [Line Items]
Revenues	$ 845,678	$ 821,904	$ 789,911
Long-lived assets, net	245,166	232,652	213,808
United States [Member]
Segment reporting information [Line Items]
Revenues	775,870	749,896	706,145
Long-lived assets, net	224,727	213,323	196,116
Canada [Member]
Segment reporting information [Line Items]
Revenues	69,808	72,008	83,766
Long-lived assets, net	$ 20,439	$ 19,329	$ 17,692

XML

Fair Value Measurements and Financial Instruments Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jul. 22, 2010
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Defined benefit pension plan assets	$ 11,509	$ 15,216	$ 21,567
Revolving credit facility, noncurrent	67,000	54,500
Senior unsecured notes	24,000	30,000		$ 30,000
Total	90,117	84,633
Quoted prices in active markets, (level 1) [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Defined benefit pension plan assets	8,627	12,422
Significant other observable inputs, (level 2) [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Defined benefit pension plan assets	2,882	2,794
Significant unobservable inputs (level 3) [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Defined benefit pension plan assets	0	0
Fair value measurements, recurring [Member] | Quoted prices in active markets, (level 1) [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Assets invested for self-insurance, classified as other assets, noncurrent	15,492	17,167
Defined benefit pension plan assets	8,627	12,422
Deferred compensation	0	0
Fair value measurements, recurring [Member] | Significant other observable inputs, (level 2) [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Assets invested for self-insurance, classified as other assets, noncurrent	0	0
Defined benefit pension plan assets	2,882	2,794
Deferred compensation	1,837	1,574
Fair value measurements, recurring [Member] | Significant unobservable inputs (level 3) [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Assets invested for self-insurance, classified as other assets, noncurrent	0	0
Defined benefit pension plan assets	0	0
Deferred compensation	0	0
Fair value [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Revolving credit facility, noncurrent	67,000	54,500
Senior unsecured notes	18,509	24,837
Term loans, noncurrent	9,854	7,008
Total	95,363	86,345
Total carrying value [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Revolving credit facility, noncurrent	67,000	54,500
Senior unsecured notes	18,000	24,000
Term loans, noncurrent	7,623	6,604
Total	92,623	85,104
Total carrying value [Member] | Fair value measurements, recurring [Member]
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items]
Assets invested for self-insurance, classified as other assets, noncurrent	15,492	17,167
Defined benefit pension plan assets	11,509	15,216
Deferred compensation	$ 1,837	$ 1,574

XML

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Letter of credit [Member]
Letters of credit outstanding	$ 64,225	$ 59,350

XML

Quarterly Results of Operations (Details) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares	Oct. 01, 2016 USD ($) $ / shares	Jul. 02, 2016 USD ($) $ / shares	Apr. 02, 2016 USD ($) $ / shares	Dec. 31, 2015 USD ($) $ / shares	Oct. 03, 2015 USD ($) $ / shares	Jul. 04, 2015 USD ($) $ / shares	Apr. 04, 2015 USD ($) $ / shares	Dec. 31, 2016 USD ($) $ / shares		Dec. 31, 2015 USD ($) $ / shares		Dec. 31, 2014 USD ($) $ / shares
Quarterly Financial Information Disclosure [Abstract]
Stock split, conversion ratio									2
Revenues	$ 216,363	$ 223,719	$ 224,763	$ 180,833	$ 197,858	$ 224,981	$ 224,773	$ 174,292	$ 845,678		$ 821,904		$ 789,911
Gross profit (revenues less costs and expenses, operating)	77,515	81,386	87,631	57,660	69,331	81,808	87,432	54,434
Income (loss) from operations	11,163	15,042	24,286	(5,120)	4,120	16,177	27,796	(3,985)	45,371		44,108		44,003
Net income (loss)	$ 5,022	$ 8,141	$ 13,309	$ (4,188)	$ 1,220	$ 8,174	$ 15,932	$ (3,528)	$ 22,284		$ 21,798		$ 23,169
Net income (loss) per share -- Basic | $ / shares	$ 0.18	$ 0.32	$ 0.52	$ (0.17)	$ 0.05	$ 0.29	$ 0.61	$ (0.14)	$ 0.85	[1]	$ 0.81	[1]	$ 0.84	[1]
Net income (loss) per share -- Diluted | $ / shares	0.18	0.31	0.50	(0.17)	0.05	0.28	0.59	(0.14)	$ 0.82	[1]	$ 0.78	[1]	$ 0.81	[1]
ESOT valuation per share | $ / shares	$ 17.6	$ 16.95	$ 16.35	$ 16.35	$ 16.35	$ 15.75	$ 15.05	$ 15.05
Decrease in casualty insurance expense	$ 2,810				$ 2,589

[1] Adjusted for two-for-one stock split