Segment Information

12 Months Ended

Dec. 30, 2017

Segment Reporting [Abstract]

Segment Information

NOTE 12 - SEGMENT INFORMATION

Reporting Segments

Our segments are strategic business units that offer different services and products and therefore require different marketing and management strategies. During 2017, ENGlobal changed the reporting structure within the company by placing an operational leader in charge of its engineering offices and a separate operational leader in charge of its automation offices, including the office that contracts with government agencies. The operating performance is regularly reviewed with these two operational leaders, the chief executive officer (“CEO”), the chief financial officer (“CFO”) and others. This group represents the chief operating decision maker (“CODM”) for ENGlobal.

We have revised our segment reporting to reflect our current management approach and recast prior periods to conform to the current segment presentation. Our corporate and other expenses that do not individually meet the criteria for segment reporting continue to be reported separately as Corporate expenses.

The EPCM segment provides services relating to the development, management and execution of projects requiring professional engineering and related project services primarily to the energy industry throughout the United States. The Automation segment provides services related to the design, fabrication and implementation of process distributed control and analyzer systems, advanced automation, information technology and electrical projects primarily to the upstream and downstream sectors throughout the United States.

As a result of the change in reporting structure discussed above, effective January 1, 2017, the results of EGS, which were previously included as part of our EPCM, are now reported within the Automation segment. The government services group provides engineering, design, installation and operation and maintenance of various government, public sector and international facilities.

Sales, operating income, identifiable assets, capital expenditures and depreciation for each segment are set forth in the following table. The amount identified as Corporate includes those activities that are not allocated to the operating segments and include costs related to business development, executive functions, finance, accounting, safety, human resources and information technology that are not specifically identifiable with the segments. Segment information for the years ended December 30, 2017 and December 31, 2016 is as follows (amounts in thousands):

For the year ended December 30, 2017:	EPCM			Automation		Corporate			Consolidated
Operating revenues	$	22,595			33,170		—			55,765
Operating income (loss)		(1,786	)		2,162		(6,519	)		(6,143	)
Depreciation and amortization		85			272		613			970
Tangible assets		5,976			9,660		10,772			26,408
Goodwill		—			2,806		—			2,806
Other intangible assets		—			19		19			38
Total assets		5,976			12,485		10,791			29,252
Capital expenditures		490			46		173			709

For the year ended December 31, 2016:	EPCM		Automation		Corporate			Consolidated
Operating revenues	$	24,006		35,218	$	—		$	59,224
Operating income (loss)		42		3,970		(7,250	)		(3,238	)
Depreciation and amortization		23		386		734			1,143
Tangible assets		4,913		8,997		27,610			41,520
Goodwill		—		2,806		—			2,806
Other intangible assets		—		110		—			110
Total assets		4,913		11,913		27,610			44,436
Capital expenditures		44		14		6			64

Financial Information by Geographic Area and Segments

Revenue from our Caspian Pipeline Consortium Project in Russia and Kazakhstan contributed $4.6 million and $8.3 million in revenues in our Automation segment for the years ended December 30, 2017 and December 31, 2016, respectively. Company assets, other than cash and trade receivables, located in this region are insignificant.