Operations by Business Segment and Geographic Information

12 Months Ended

Dec. 31, 2023

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 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. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies except that (a) we compute and recognize depreciation expense for

our segments only by the straight-line method and (b) state income taxes are allocated to the segments. Corporate expenses are substantially allocated among the operating segments, but the nature of expenses allocated may differ from year-to-year. There are no intersegment revenues. Segment assets are those generated or directly used by each segment, and include accounts receivable, operating supplies, and property and equipment.

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

	Utility Services		Residential Commercial Services		All Other		Reconciling  Adjustments			Consolidated
Fiscal Year 2023
Revenues	$	934,977	$	754,455	$	4,049	$	—		$	1,693,481
Income (loss) from operations	63,414		71,822		(12,211)		(8,818)		(a)	114,207
Interest expense							(13,745)			(13,745)
Interest income							1,894			1,894
Other income (expense), net							(5,120)			(5,120)
Income before income taxes										$	97,236
Depreciation	$	21,565	$	29,843	$	—	$	2,163	(b)	$	53,571
Amortization	1,873		3,199		—		—			5,072
Capital expenditures	21,716		43,147		—		22,459			87,322
Segment assets, total	399,059		367,745		—		514,256		(c)	1,281,060
Fiscal Year 2022
Revenues	$	840,553	$	666,972	$	3,556	$	—		$	1,511,081
Income (loss) from operations	62,267		58,310		(14,993)		(5,348)		(a)	100,236
Interest expense							(6,129)			(6,129)
Interest income							955			955
Other income (expense), net							(9,863)			(9,863)
Income before income taxes										$	85,199
Depreciation	$	22,791	$	26,294	$	—	$	2,884	(b)	$	51,969
Amortization	776		2,452		—		—			3,228
Capital expenditures	26,178		44,173		—		18,387			88,738
Segment assets, total	362,399		313,401		—		280,421		(c)	956,221
Fiscal Year 2021
Revenues	$	765,072	$	610,666	$	2,315	$	—		$	1,378,053
Income (loss) from operations	73,893		60,261		(27,016)		(5,872)		(a)	101,266
Interest expense							(4,973)			(4,973)
Interest income							175			175
Other income (expense), net							(7,021)			(7,021)
Income before income taxes										$	89,447
Depreciation	$	25,364	$	24,634	$	—	$	2,929	(b)	$	52,927
Amortization	611		2,430		—		3			3,044
Capital expenditures	23,303		36,506		—		15,882			75,691
Segment assets, total	298,070		275,204		—		199,667		(c)	772,941

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)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,
	2023		2022		2021
Revenues
United States	$	1,594,546	$	1,426,019	$	1,292,496
Canada	98,935		85,062		85,557
	$	1,693,481	$	1,511,081	$	1,378,053
	December 31,
	2023		2022		2021
Long-lived assets, net
United States	$	741,294	$	484,740	$	397,624
Canada	33,086		29,217		27,062
	$	774,380	$	513,957	$	424,686