Operations by Business Segment

9 Months Ended

Sep. 30, 2023

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 and rights-of-way and chemical brush control, 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 2022 Annual Report.    

Segment information reconciled to the condensed consolidated financial statements was as follows:

	Utility		Residential and Commercial		All Other		Reconciling Adjustments			Consolidated
Three Months Ended September 30, 2023
Revenues	$	247,478	$	201,753	$	1,403	$	—		$	450,634
Income (loss) from operations	17,656		24,398		(4,188)		(1,629)		(a)	36,237
Interest expense							(4,751)			(4,751)
Interest income							502			502
Other income (expense), net							(2,890)			(2,890)
Income before income taxes										$	29,098
Segment assets, total	$	372,114	$	368,062	$	—	$	526,377	(b)	$	1,266,553
Three Months Ended October 1, 2022
Revenues	$	217,305	$	180,706	$	934	$	—		$	398,945
Income (loss) from operations	16,790		21,204		(4,033)		(948)		(a)	33,013
Interest expense							(2,164)			(2,164)
Interest income							303			303
Other income (expense), net							(3,371)			(3,371)
Income before income taxes										$	27,781
Segment assets, total	$	331,393	$	305,216	$	—	$	263,362	(b)	$	899,971
Nine Months Ended September 30, 2023
Revenues	$	700,378	$	563,942	$	2,854	$	—		$	1,267,174
Income (loss) from operations	51,197		61,312		(11,439)		(3,875)		(a)	97,195
Interest expense							(13,588)			(13,588)
Interest income							1,329			1,329
Other income (expense), net							(4,365)			(4,365)
Income before income taxes										$	80,571
Segment assets, total	$	372,114	$	368,062	$	—	$	526,377	(b)	$	1,266,553
Nine Months Ended October 1, 2022
Revenues	$	637,900	$	504,064	$	1,584	$	—		$	1,143,548
Income (loss) from operations	49,260		50,759		(14,852)		(5,665)		(a)	79,502
Interest expense							(5,312)			(5,312)
Interest income							489			489
Other income (expense), net							(8,241)			(8,241)
Income before income taxes										$	66,438
Segment assets, total	$	331,393	$	305,216	$	—	$	263,362	(b)	$	899,971

Reconciling adjustments from segment reporting to the condensed consolidated financial statements 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.