Segment Information

12 Months Ended

Dec. 26, 2020

Segment Reporting [Abstract]

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 Engineering, Procurement and Construction Management (“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, integration and implementation of advanced automation, information technology, process distributed control systems, analyzer systems, and electrical projects primarily to the upstream and downstream sectors of the energy industry 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 and the fabrication operation.

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 26, 2020 and December 28, 2019 is as follows (amounts in thousands):

For the year ended December 26, 2020:	EPCM			Automation		Corporate			Consolidated
Operating revenues	$	25,929		$	38,520	$	—		$	64,449
Operating income (loss)		(69	)		4,524		(4,838	)		(383	)
Depreciation and amortization		275			57		117			449
Tangible assets		7,389			7,806		14,504			29,699
Goodwill		—			720		—			720
Other intangible assets		—			19		—			19
Total assets		7,389			8,545		14,504			30,438
Capital expenditures		145			15		268			428

For the year ended December 28, 2019:	EPCM			Automation		Corporate			Consolidated
Operating revenues	$	19,436		$	37,010	$	—		$	56,446
Operating income (loss)		(830	)		4,595		(5,166	)		(1,401	)
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