| SEGMENT INFORMATION |
13. SEGMENT INFORMATION
The Company has four reporting segments: Energy Efficiency Services, Engineering Services, Public Finance Services and Homeland Security Services. The Engineering Services segment consists of Willdan Engineering and Public Agency Resources. The Energy Efficiency Services segment, which consists of Willdan Energy Solutions, provides energy efficiency consulting services to utilities, state agencies, municipalities, private industry and non-profit organizations. The Engineering Services segment offers a broad range of engineering and planning services to the Company’s public and private sector clients. The Public Finance Services segment, which consists of Willdan Financial Services, provides expertise and support for the various financing techniques employed by public agencies to finance their operations and infrastructure along with the mandated reporting and other requirements associated with these financings. The Homeland Security Services segment, which consists of Willdan Homeland Solutions, provides national preparedness, homeland security consulting, public safety and emergency response services to cities, related municipal service agencies and other entities.
The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. There were no intersegment sales in any of the three fiscal years ended December 30, 2016. Management evaluates the performance of each segment based upon income or loss from operations before income taxes. Certain segment asset information including expenditures for long‑lived assets has not been presented as it is not reported to or reviewed by the chief operating decision maker. In addition, enterprise‑wide service line contract revenue is not included as it is impracticable to report this information for each group of similar services.
Financial information with respect to the reportable segments and reconciliation to the amounts reported in the Company’s consolidated financial statements follows:
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Energy
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Public
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Homeland
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Efficiency
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Engineering
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Finance
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Security
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Unallocated
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Consolidated
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Services
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Services
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Services
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Services
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Corporate
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Intersegment
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Total
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Fiscal Year 2016
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Contract revenue
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$
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141,888,000
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$
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52,292,000
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$
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12,386,000
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$
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2,375,000
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$
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—
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$
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—
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$
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208,941,000
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Depreciation and amortization
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2,511,000
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466,000
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187,000
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40,000
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—
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—
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3,204,000
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Interest (expense) income
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(163,000)
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(12,000)
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(3,000)
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(1,000)
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—
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—
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(179,000)
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Segment profit (loss) before income tax expense
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5,895,000
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6,319,000
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520,000
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48,000
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(1,415,000)
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—
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11,367,000
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Income tax (benefit) expense
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1,591,000
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1,706,000
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140,000
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13,000
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(382,000)
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—
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3,068,000
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Net income (loss)
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4,304,000
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4,614,000
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379,000
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35,000
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(1,033,000)
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—
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8,299,000
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Segment assets(1)
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63,140,000
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12,962,000
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6,549,000
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589,000
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48,237,000
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(23,130,000)
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108,347,000
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Fiscal Year 2015
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Contract revenue
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$
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74,123,000
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$
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45,997,000
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$
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11,857,000
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$
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3,126,000
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$
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—
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$
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—
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$
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135,103,000
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Depreciation and amortization
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1,525,000
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359,000
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159,000
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29,000
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—
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—
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2,072,000
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Interest (expense) income
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(194,000)
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(10,000)
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(2,000)
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(1,000)
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—
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—
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(207,000)
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Segment profit (loss) before income tax expense
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2,499,000
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4,666,000
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1,148,000
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418,000
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(1,390,000)
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—
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7,341,000
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Income tax (benefit) expense
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1,049,000
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1,959,000
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482,000
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176,000
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(584,000)
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—
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3,082,000
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Net income (loss)
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1,450,000
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2,707,000
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666,000
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242,000
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(806,000)
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—
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4,259,000
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Segment assets(1)
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34,686,000
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13,641,000
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5,377,000
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894,000
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40,877,000
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(23,130,000)
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72,345,000
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Fiscal Year 2014
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Contract revenue
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$
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52,941,000
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$
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40,783,000
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$
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10,630,000
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$
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3,726,000
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$
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—
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$
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—
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$
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108,080,000
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Depreciation and amortization
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212,000
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191,000
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39,000
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18,000
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—
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459,000
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Interest (expense) income
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(33,000)
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17,000
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2,000
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(2,000)
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—
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(16,000)
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Segment profit before income tax expense
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4,814,000
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4,008,000
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661,000
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443,000
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(1,500,000)
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—
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8,426,000
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Income tax expense (benefit)
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(599,000)
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(454,000)
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(64,000)
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(49,000)
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176,000
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—
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(990,000)
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Net income
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5,413,000
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4,462,000
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725,000
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492,000
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(1,676,000)
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—
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9,416,000
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Segment assets(1)
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11,769,000
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11,166,000
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3,944,000
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708,000
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44,873,000
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(23,130,000)
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49,330,000
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(1)
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Segment assets are presented net of intercompany receivables. |
The following sets forth the assets that are included in Unallocated Corporate as of December 30, 2016, January 1, 2016 and January 2, 2015.
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2016
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2015
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Assets:
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Cash and cash equivalents
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$
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22,660,000
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$
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14,385,000
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Accounts Receivable, net
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(590,000)
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—
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Prepaid expenses
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1,017,000
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758,000
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Intercompany receivables
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112,837,000
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82,845,000
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Goodwill
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(3,000)
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—
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Other receivables
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55,000
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49,000
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Equipment and leasehold improvements, net
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1,869,000
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2,231,000
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Investments in subsidiaries
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23,130,000
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23,130,000
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Other
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99,000
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53,000
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$
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161,074,000
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$
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123,451,000
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