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.


S.	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 2018
Revenues	$	537,484	$	486,005	$	1,302		$	—			$	1,024,791
Income (loss) from operations	32,370		47,812		(19,816		)	(4,676		)	(a)	55,690
Interest expense								(7,039		)		(7,039		)
Interest income								350				350
Other income (expense), net								(11,505		)		(11,505		)
Income before income taxes												$	37,496

Depreciation	$	29,526	$	21,720	$	—		$	3,668		(b)	$	54,914
Amortization	211		1,842		—			2				2,055
Capital expenditures	32,148		22,256		—			6,006				60,410
Segment assets, total	239,426		208,369		—			78,828			(c)	526,623

Fiscal Year 2017
Revenues	$	466,727	$	446,028	$	3,203		$	—			$	915,958
Income (loss) from operations	18,223		41,158		(2,634		)	(4,556		)	(a)	52,191
Interest expense								(4,886		)		(4,886		)
Interest income								292				292
Other income (expense), net								(9,603		)		(9,603		)
Income before income taxes												$	37,994

Depreciation	$	27,928	$	19,384	$	—		$	3,390		(b)	$	50,702
Amortization	122		2,240		—			22				2,384
Capital expenditures	26,910		23,199		—			6,991				57,100
Segment assets, total	189,662		197,698		—			85,775			(c)	473,135

Fiscal Year 2016
Revenues	$	433,379	$	410,878	$	1,421		$	—			$	845,678
Income (loss) from operations	19,256		36,640		(4,318		)	(2,711		)	(a)	48,867
Interest expense								(4,393		)		(4,393		)
Interest income								255				255
Other income (expense), net								(7,485		)		(7,485		)
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


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

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


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


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


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

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



	Year Ended December 31,
	2018		2017		2016
Revenues
United States	$	949,317	$	847,540	$	775,870
Canada	75,474		68,418		69,808
	$	1,024,791	$	915,958	$	845,678

	December 31,
	2018		2017		2016
Long-lived assets, net
United States	$	251,181	$	242,118	$	224,727
Canada	20,374		21,893		20,439
	$	271,555	$	264,011	$	245,166