v3.26.1
Operations by Business Segment
 6 Months Ended
Jul. 04, 2026
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 mainly 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,” which does not meet the definition of a reportable segment.
Measurement of Segment Profit and Loss and Segment Assets--Our Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer, Patrick M. Covey. The CODM evaluates performance and allocates resources based primarily on revenue and income from operations, which includes reviews of year-over-year changes in both revenues and operating income as well as changes from internal forecasts and budgets for each segment. Since our revenue is primarily dependent on people and equipment, the CODM reviews significant cost components for each segment such as payroll expense, equipment and fuel expense, and subcontractor expense. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies except that (a) we compute and recognize depreciation expense for our segments only by the straight-line method, and (b) state income taxes are allocated to the segments. Corporate expenses are substantially allocated among the operating segments, but the nature of expenses allocated may differ from year-to-year. There are no intersegment revenues. Segment assets are those generated or directly used by each segment, and include accounts receivable, operating supplies, and property and equipment.
Information on reportable segments and reconciliation to the condensed consolidated financial statements follows:
Utility
Services		Residential
Commercial
Services		Total
Reportable
Segments		All
Other		Consolidated
Three Months Ended July 4, 2026
Revenues$266,075 $251,121 $517,196 $1,737 $518,933 
Less:
Payroll expense114,771 95,034 
Equipment and fuel expense18,903 16,674 
Subcontractor expense24,253 18,921 
Other segment expenses (a)
90,295 82,851 10,071 
Income (loss) from operations, reportable segments$17,853 $37,641 $55,494 $(8,334)$47,160 
Unallocated costs (b)
(4,675)
Income from operations42,485 
Interest expense(8,480)
Interest income2,054 
Other income (expense), net(2,165)
Income before income taxes$33,894 
Segment assets, total$470,256 $396,568 $866,824 $707,879 
(c)
$1,574,703 
Utility
Services		Residential
Commercial
Services		Total
Reportable
Segments		All
Other		Consolidated
Three Months Ended June 28, 2025
Revenues$266,896 $244,924 $511,820 $625 $512,445 
Less:
Payroll expense112,821 93,519 
Equipment and fuel expense18,392 15,481 
Subcontractor expense24,059 13,858 
Other segment expenses (a)
89,400 85,161 6,828 
Income (loss) from operations, reportable segments$22,224 $36,905 $59,129 $(6,203)$52,926 
Unallocated costs (b)
(3,792)
Income from operations49,134 
Interest expense(4,980)
Interest income756 
Other income (expense), net424 
Income before income taxes$45,334 
Segment assets, total$393,771 $434,141 $827,912 $616,429 
(c)
$1,444,341 
Utility
Services		Residential
Commercial
Services		Total
Reportable
Segments		All
Other		Consolidated
Six Months Ended July 4, 2026
Revenues$529,544 $422,986 $952,530 $2,178 $954,708 
Less:
Payroll expense233,287 172,569 
Equipment and fuel expense35,988 30,655 
Subcontractor expense48,813 35,540 
Other segment expenses (a)
180,583 154,865 20,557 
Income (loss) from operations, reportable segments$30,873 $29,357 $60,230 $(18,379)$41,851 
Unallocated costs (b)
(10,298)
Income from operations31,553 
Interest expense(13,073)
Interest income2,404 
Other income (expense), net(4,337)
Income before income taxes$16,547 
Segment assets, total$470,256 $396,568 $866,824 $707,879 
(c)
$1,574,703 
Utility
Services		Residential
Commercial
Services		Total
Reportable
Segments		All
Other		Consolidated
Six Months Ended June 28, 2025
Revenues$522,003 $424,054 $946,057 $1,224 $947,281 
Less:
Payroll expense220,865 168,729 
Equipment and fuel expense35,631 29,414 
Subcontractor expense51,983 38,466 
Other segment expenses (a)
172,716 155,002 17,788 
Income (loss) from operations, reportable segments$40,808 $32,443 $73,251 $(16,564)$56,687 
Unallocated costs (b)
(9,137)
Income from operations47,550 
Interest expense(9,362)
Interest income1,308 
Other income (expense), net(1,292)
Income before income taxes$38,204 
Segment assets, total$393,771 $434,141 $827,912 $616,429 
(c)
$1,444,341 
Reconciling adjustments from segment reporting to condensed consolidated external financial reporting include unallocated corporate items:
(a)Other segment expenses include occupancy costs, travel, insurance, depreciation and amortization, selling expenses and all other operating expenses.
(b)Unallocated costs include unallocated corporate expenses.
(c)Corporate assets include cash, prepaid expenses, corporate facilities, enterprise-wide information systems and other nonoperating assets.