Operations by Business Segment

6 Months Ended

Jul. 01, 2017

Segment Reporting [Abstract]

Operations by business segment [Text Block]

Operations by Business Segment

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. Segment information, including reconciling adjustments, is presented consistent with the basis described in our 2016 Annual Report.    

M. Operations by Business Segment (continued)

	Utility		Residential and Commercial		All Other			Reconciling Adjustments				Consolidated
Three Months Ended July 1, 2017
Revenues	$	112,903	$	131,299	$	835		$	—			$	245,037
Income (loss) from operations	4,270		23,837		(1,312		)	(1,483		)	(a)	25,312
Interest expense								(1,072		)		(1,072		)
Interest income								73				73
Other income (expense), net								(992		)		(992		)
Income before income taxes												$	23,321
Segment assets, total	$	171,472	$	202,502	$	—		$	86,198		(b)	$	460,172
Three Months Ended July 2, 2016
Revenues	$	105,285	$	118,945	$	533		$	—			$	224,763
Income (loss) from operations	5,587		21,226		(980		)	(1,547		)	(a)	24,286
Interest expense								(1,062		)		(1,062		)
Interest income								60				60
Other income (expense), net								(1,156		)		(1,156		)
Income before income taxes												$	22,128
Segment assets, total	$	159,824	$	181,945	$	—		$	84,375		(b)	$	426,144
Six Months Ended July 1, 2017
Revenues	$	225,381	$	210,886	$	1,583		$	—			$	437,850
Income (loss) from operations	6,928		20,255		(3,887		)	(2,326		)	(a)	20,970
Interest expense								(2,329		)		(2,329		)
Interest income								143				143
Other income (expense), net								(1,784		)		(1,784		)
Income before income taxes												$	17,000
Segment assets, total	$	171,472	$	202,502	$	—		$	86,198		(b)	$	460,172
Six Months Ended July 2, 2016
Revenues	$	205,313	$	199,279	$	1,004		$	—			$	405,596
Income (loss) from operations	7,061		19,790		(4,086		)	(3,599		)	(a)	19,166
Interest expense								(2,027		)		(2,027		)
Interest income								128				128
Other income (expense), net								(1,755		)		(1,755		)
Income before income taxes												$	15,512
Segment assets, total	$	159,824	$	181,945	$	—		$	84,375		(b)	$	426,144

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

(a) Reclassification of depreciation expense and allocation of corporate expenses.

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