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Segment Reporting
 9 Months Ended
Sep. 29, 2023
Segment Reporting [Abstract]  
Segment Reporting

Note 9: Segment Reporting

The Company has two reportable operating segments based on two primary areas of service. The Engineering and Other Scientific segment is a broad service group providing technical consulting in different practices primarily in engineering. The Environmental and Health segment provides services in the areas of environmental, epidemiology and health risk analysis. This segment provides a wide range of consulting services relating to environmental hazards and risks and the impact on both human health and the environment. Our Chief Executive Officer, the chief operating decision maker, reviews revenues and operating income for each of our reportable segments, but does not review total assets in evaluating segment performance and capital allocation.

Segment information for the three and nine months ended September 29, 2023 and September 30, 2022 follows:

Revenues

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 29,
2023

 

 

September 30,
2022

 

 

September 29,
2023

 

 

September 30,
2022

 

Engineering and Other Scientific

 

$

110,857

 

 

$

107,403

 

 

$

344,552

 

 

$

321,168

 

Environmental and Health

 

 

22,479

 

 

 

19,776

 

 

 

69,314

 

 

 

64,770

 

Total revenues

 

$

133,336

 

 

$

127,179

 

 

$

413,866

 

 

$

385,938

 

 

 

Operating Income

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 29,
2023

 

 

September 30,
2022

 

 

September 29,
2023

 

 

September 30,
2022

 

Engineering and Other Scientific

 

$

38,734

 

 

$

39,385

 

 

$

121,064

 

 

$

117,907

 

Environmental and Health

 

 

7,475

 

 

 

6,378

 

 

 

22,550

 

 

 

21,059

 

Total segment operating income

 

 

46,209

 

 

 

45,763

 

 

 

143,614

 

 

 

138,966

 

Corporate operating expense

 

 

(12,276

)

 

 

(8,950

)

 

 

(50,686

)

 

 

(20,159

)

Total operating income

 

$

33,933

 

 

$

36,813

 

 

$

92,928

 

 

$

118,807

 

 

 

Certain operating expenses are excluded from the Company’s measure of segment operating income. These expenses include costs associated with its human resources, finance, information technology, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with its deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in its allowance for contract losses and doubtful accounts.

Capital Expenditures

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 29,
2023

 

 

September 30,
2022

 

 

September 29,
2023

 

 

September 30,
2022

 

Engineering and Other Scientific

 

$

541

 

 

$

870

 

 

$

3,210

 

 

$

3,050

 

Environmental and Health

 

 

25

 

 

 

48

 

 

 

139

 

 

 

104

 

Total segment capital expenditures

 

 

566

 

 

 

918

 

 

 

3,349

 

 

 

3,154

 

Corporate capital expenditures

 

 

1,248

 

 

 

1,172

 

 

 

13,893

 

 

 

6,387

 

Total capital expenditures

 

$

1,814

 

 

$

2,090

 

 

$

17,242

 

 

$

9,541

 

 

 

Certain capital expenditures associated with the Company’s corporate cost centers and the related depreciation are excluded from the Company’s segment information.

 

Depreciation and Amortization

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 29,
2023

 

 

September 30,
2022

 

 

September 29,
2023

 

 

September 30,
2022

 

Engineering and Other Scientific

 

$

1,750

 

 

$

1,108

 

 

$

4,428

 

 

$

3,301

 

Environmental and Health

 

 

53

 

 

 

41

 

 

 

155

 

 

 

124

 

Total segment depreciation and
   amortization

 

 

1,803

 

 

 

1,149

 

 

 

4,583

 

 

 

3,425

 

Corporate depreciation and amortization

 

 

558

 

 

 

574

 

 

 

1,952

 

 

 

1,799

 

Total depreciation and amortization

 

$

2,361

 

 

$

1,723

 

 

$

6,535

 

 

$

5,224

 

 

No single client comprised more than 10% of the Company’s revenues during the three and nine months ended September 29, 2023. One client comprised 16% of the Company’s revenues during the three months ended September 30, 2022. The same client comprised 15% of the Company's revenue during the nine months ended September 30, 2022.