Segment Information

12 Months Ended

Dec. 28, 2019

Segment Reporting [Abstract]

Segment Information

NOTE 13 - SEGMENT INFORMATION

Reporting Segments

Our segments are strategic business units that offer different services and products and therefore require different marketing and management strategies. Separate operational leaders are in charge of our engineering offices and our automation offices, including the office that contracts with government agencies. The operating performance of our segments is regularly reviewed with the operational leaders of the two segments, the chief executive officer (“CEO”), the chief financial officer (“CFO”) and others. This group represents the chief operating decision maker (“CODM”) for ENGlobal.

Our corporate and other expenses that do not individually meet the criteria for segment reporting are 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 and the fabrication operations. The Automation segment provides services related to the design, integration 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.

The Automation segment includes the government services group which 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 28, 2019 and December 29, 2018 is as follows (amounts in thousands):

For the year ended December 28, 2019:	EPCM			Automation		Corporate			Consolidated
Operating revenues	$	19,436		$	37,010	$	—		$	56,446
Operating income (loss)		(830	)		4,692		(5,166	)		(1,304	)
Depreciation and amortization		189			109		91			389
Tangible assets		6,253			12,864		8,830			27,947
Goodwill		—			720		—			720
Other intangible assets		—			19		—			19
Total assets		6,253			13,603		8,830			28,686
Capital expenditures		202			43		100			345

For the year ended December 29, 2018:	EPCM		Automation			Corporate			Consolidated
Operating revenues	$	24,152	$	29,844		$	—		$	53,996
Operating income (loss)		1,141		(740	)		(5,584	)		(5,183	)
Depreciation and amortization		123		122			215			460
Tangible assets		4,792		9,811			6,964			21,567
Goodwill		—		720			—			720
Other intangible assets		—		19			—			19
Total assets		4,792		10,550			6,964			22,306
Capital expenditures		66		6			35			107