Revenue Recognition (Notes)

3 Months Ended

Mar. 30, 2024

Revenue Recognition [Abstract]

Revenue from contract from customer [Text Block]

Revenue Recognition

We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers.

Nature of Performance Obligations and Significant Judgments

At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service (or bundle of goods and services) that is distinct. To identify the performance obligations, the Company considers each of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices.

Our contracts with our customers generally originate upon the completion of a quote for services for residential and commercial customers or the receipt of a purchase order (or similar work order) for utility customers. In some cases, our contracts are governed by master services agreements, in which case our contract under ASC 606 consists of the combination of the master services agreement and the quote/purchase order. Many of our contracts have a stated duration of one year or less or contain termination clauses that allow the customer to cancel the contract after a specified notice period, which is typically less than 90 days. Due to the fact that many of our arrangements allow the customer to terminate for convenience, the duration of the contract for revenue recognition purposes generally does not extend beyond the services that we have actually transferred. As a result, many of our contracts are, in effect, day-to-day or month-to-month contracts.

Disaggregation of Revenue

The following tables disaggregate our revenue for the three months ended March 30, 2024 and April 1, 2023 by major sources:

Three Months Ended March 30, 2024	Utility		Residential and Commercial		All Other		Consolidated
Type of service:
Tree and plant care	$	149,419	$	82,752	$	(480)	$	231,691
Grounds maintenance	—		32,745		—		32,745
Storm damage services	4,932		2,737		—		7,669
Consulting and other	86,985		44,616		1,103		132,704
Total revenues	$	241,336	$	162,850	$	623	$	404,809
Geography:
United States	$	228,007	$	153,449	$	623	$	382,079
Canada	13,329		9,401		—		22,730
Total revenues	$	241,336	$	162,850	$	623	$	404,809
Three Months Ended April 1, 2023	Utility		Residential and Commercial		All Other		Consolidated
Type of service:
Tree and plant care	$	142,589	$	81,824	$	(137)	$	224,276
Grounds maintenance	—		28,023		—		28,023
Storm damage services	3,973		5,022		—		8,995
Consulting and other	78,014		31,339		687		110,040
Total revenues	$	224,576	$	146,208	$	550	$	371,334
Geography:
United States	$	213,819	$	137,740	$	550	$	352,109
Canada	10,757		8,468		—		19,225
Total revenues	$	224,576	$	146,208	$	550	$	371,334

Contract Balances

Our contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue. The Company recognized $1,201 of revenue for the three months ended March 30, 2024, that was included in the contract liability balance at December 31, 2023 and $1,280 of revenue for the three months ended April 1, 2023, that was included in the contract liability balance at December 31, 2022. Net contract liabilities consisted of the following:

	March 30, 2024		December 31, 2023
Contract liabilities - current	$	5,075	$	3,430
Contract liabilities - noncurrent	2,895		3,700
Net contract liabilities	$	7,970	$	7,130