Operations by Business Segment

6 Months Ended

Jun. 29, 2024

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 2023 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 June 29, 2024
Revenues	$	253,860	$	226,516	$	1,278	$	—		$	481,654
Income (loss) from operations	21,169		36,758		(6,792)		(4,657)		(a)	46,478
Interest expense							(5,222)			(5,222)
Interest income							998			998
Other income (expense), net							(2,169)			(2,169)
Income before income taxes										$	40,085
Segment assets, total	$	375,697	$	413,460	$	—	$	547,301	(b)	$	1,336,458
Three Months Ended July 1, 2023
Revenues	$	228,324	$	215,981	$	901	$	—		$	445,206
Income (loss) from operations	17,507		37,171		(3,227)		(2,000)		(a)	49,451
Interest expense							(4,966)			(4,966)
Interest income							428			428
Other income (expense), net							(824)			(824)
Income before income taxes										$	44,089
Segment assets, total	$	379,737	$	356,964	$	—	$	301,859	(b)	$	1,038,560
Six Months Ended June 29, 2024
Revenues	$	495,196	$	389,366	$	1,901	$	—		$	886,463
Income (loss) from operations	34,479		34,153		(14,323)		(7,597)		(a)	46,712
Interest expense							(9,289)			(9,289)
Interest income							1,524			1,524
Other income (expense), net							(3,533)			(3,533)
Income before income taxes										$	35,414
Segment assets, total	$	375,697	$	413,460	$	—	$	547,301	(b)	$	1,336,458
Six Months Ended July 1, 2023
Revenues	$	452,900	$	362,189	$	1,451	$	—		$	816,540
Income (loss) from operations	33,541		36,914		(7,251)		(2,246)		(a)	60,958
Interest expense							(8,837)			(8,837)
Interest income							827			827
Other income (expense), net							(1,475)			(1,475)
Income before income taxes										$	51,473
Segment assets, total	$	379,737	$	356,964	$	—	$	301,859	(b)	$	1,038,560

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.