Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Reportable Operating Segments

We manage and evaluate our operations in two reportable segments: Housekeeping (housekeeping, laundry, linen and other services) and Dietary (dietary department services). Although both segments serve a similar client base and share many operational similarities, they are managed separately due to differences in the type of services provided, as well as the specialized expertise required of the professional management personnel responsible for delivering the respective segments’ services. Such services are rendered pursuant to distinct service agreements, specific to each reportable segment.

The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. Differences between the reportable segments’ operating results and other disclosed data and our consolidated financial statements relate primarily to corporate level transactions and recording of transactions at the reportable segment level which use methods other than generally accepted accounting principles. There are certain inventories and supplies that are primarily expensed when incurred within the operating segments, while they are capitalized for the consolidated financial statements. As discussed, most corporate expenses are not allocated to the operating segments. Such expenses include corporate salary and benefit costs, bad debt expense, certain legal costs, information technology costs, depreciation, amortization of finite lived intangible assets, share based compensation costs and other corporate specific costs. Additionally, there are allocations for workers’ compensation and general liability expense within the operating segments that differ from our actual expense recorded for U.S. GAAP.

	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Revenues
Housekeeping services	$	238,291,000		$	226,965,000		$	476,570,000		$	453,546,000
Dietary services	148,265,000			128,391,000			294,793,000			257,056,000
Total	$	386,556,000		$	355,356,000		$	771,363,000		$	710,602,000
Income before income taxes
Housekeeping services	$	22,821,000		$	21,752,000		$	45,321,000		$	42,369,000
Dietary services	9,071,000			7,864,000			18,219,000			16,769,000
Corporate and eliminations (1)	(2,209,000		)	(3,359,000		)	(4,253,000		)	(7,827,000		)
Total	$	29,683,000		$	26,257,000		$	59,287,000		$	51,311,000

⁽¹⁾  Primarily represents corporate office costs and related overhead, recording of certain inventories and supplies and workers compensation costs at the reportable segment level which use accounting methods that differ from those used at the corporate level, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments, net of investment and interest income.

Total Revenues from Clients

We earned total revenues from clients in the following service categories:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Housekeeping services	$	169,362,000	$	157,086,000	$	338,278,000	$	313,673,000
Dietary services	148,265,000		128,391,000		294,793,000		257,056,000
Laundry and linen services	68,452,000		69,339,000		137,166,000		138,827,000
Maintenance services and other	477,000		540,000		1,126,000		1,046,000
	$	386,556,000	$	355,356,000	$	771,363,000	$	710,602,000