v3.26.3
Operations by Business Segment
 9 Months Ended
Oct. 03, 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 October 3, 2026
Revenues$283,395 $241,241 $524,636 $(1,968)$522,668 
Less:
Payroll expense123,451 99,588 
Equipment and fuel expense20,618 18,129 
Subcontractor expense21,542 16,671 
Other segment expenses (a)
91,583 81,010 3,128 
Income (loss) from operations, reportable segments$26,201 $25,843 $52,044 $(5,096)$46,948 
Unallocated costs (b)
(9,800)
Income from operations37,148 
Interest expense(8,723)
Interest income735 
Other income (expense), net(4,202)
Income before income taxes$24,958 
Segment assets, total$443,010 $436,589 $879,599 $599,881 
(c)
$1,479,480 
Utility
Services		Residential
Commercial
Services		Total
Reportable
Segments		All
Other		Consolidated
Three Months Ended September 27, 2025
Revenues$270,141 $229,749 $499,890 $776 $500,666 
Less:
Payroll expense113,514 97,403 
Equipment and fuel expense19,599 14,711 
Subcontractor expense27,504 15,749 
Other segment expenses (a)
89,719 75,131 6,103 
Income (loss) from operations, reportable segments$19,805 $26,755 $46,560 $(5,327)$41,233 
Unallocated costs (b)
(3,715)
Income from operations37,518 
Interest expense(5,066)
Interest income568 
Other income (expense), net(2,041)
Income before income taxes$30,979 
Segment assets, total$387,651 $439,205 $826,856 $661,228 
(c)
$1,488,084 
Utility
Services		Residential
Commercial
Services		Total
Reportable
Segments		All
Other		Consolidated
Nine Months Ended October 3, 2026
Revenues$812,939 $664,227 $1,477,166 $210 $1,477,376 
Less:
Payroll expense356,738 272,157 
Equipment and fuel expense56,606 48,784 
Subcontractor expense70,355 52,211 
Other segment expenses (a)
272,166 235,875 23,685 
Income (loss) from operations, reportable segments$57,074 $55,200 $112,274 $(23,475)$88,799 
Unallocated costs (b)
(20,098)
Income from operations68,701 
Interest expense(21,796)
Interest income3,139 
Other income (expense), net(8,539)
Income before income taxes$41,505 
Segment assets, total$443,010 $436,589 $879,599 $599,881 
(c)
$1,479,480 
Utility
Services		Residential
Commercial
Services		Total
Reportable
Segments		All
Other		Consolidated
Nine Months Ended September 27, 2025
Revenues$792,144 $653,803 $1,445,947 $2,000 $1,447,947 
Less:
Payroll expense334,379 266,132 
Equipment and fuel expense55,230 44,125 
Subcontractor expense79,487 54,215 
Other segment expenses (a)
262,435 230,133 23,891 
Income (loss) from operations, reportable segments$60,613 $59,198 $119,811 $(21,891)$97,920 
Unallocated costs (b)
(12,852)
Income from operations85,068 
Interest expense(14,428)
Interest income1,876 
Other income (expense), net(3,333)
Income before income taxes$69,183 
Segment assets, total$387,651 $439,205 $826,856 $661,228 
(c)
$1,488,084 
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.