Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 29, 2018 | Nov. 02, 2018 | |
Entity Information [Line Items] | ||
Entity registrant name | DAVEY TREE EXPERT CO | |
Entity central index key | 277,638 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Accelerated Filer | |
Document type | 10-Q | |
Document period end date | Sep. 29, 2018 | |
Document fiscal year focus | 2,018 | |
Document fiscal period focus | Q3 | |
Amendment flag | false | |
Entity common stock, shares outstanding | 23,082,609 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 10,516 | $ 13,121 |
Accounts receivable, net | 194,377 | 168,671 |
Operating supplies | 14,181 | 10,069 |
Other current assets | 25,839 | 17,264 |
Total current assets | 244,913 | 209,125 |
Property and equipment | 634,655 | 616,036 |
Less accumulated depreciation | 431,706 | 422,853 |
Total property and equipment, net | 202,949 | 193,183 |
Other assets | 26,191 | 29,156 |
Identified intangible assets and goodwill, net | 47,602 | 41,671 |
Total assets | 521,655 | 473,135 |
Current liabilities: | ||
Accounts payable | 41,353 | 45,093 |
Accrued expenses | 47,832 | 42,816 |
Other current liabilities | 49,916 | 40,748 |
Total current liabilities | 139,101 | 128,657 |
Long-term debt | 156,625 | 119,210 |
Self-insurance reserve | 49,260 | 43,912 |
Other noncurrent liabilities | 9,548 | 19,966 |
Total liabilities | 354,534 | 311,745 |
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP); 6,158 and 6,467 shares at redemption value as of September 29, 2018 and December 31, 2017 | 121,304 | 123,520 |
Common shareholders' equity: | ||
Common shares, $1.00 par value, per share; 48,000 shares authorized; 36,756 and 36,447 shares issued and outstanding before deducting treasury shares and which excludes 6,158 and 6,467 shares subject to redemption as of September 29, 2018 and December 31, 2017 | 36,756 | 36,447 |
Additional paid-in capital | 70,733 | 58,554 |
Common shares subscribed, unissued | 6,924 | 7,529 |
Retained earnings | 161,433 | 143,835 |
Accumulated other comprehensive loss | (9,016) | (8,393) |
Shareholders' equity before treasury stock | 266,830 | 237,972 |
Less: Cost of common shares held in treasury; 19,465 shares at September 29, 2018 and 18,693 shares at December 31, 2017 | 220,160 | 198,327 |
Common shares subscription receivable | 853 | 1,775 |
Total common shareholders' equity | 45,817 | 37,870 |
Total liabilities and shareholders' equity | $ 521,655 | $ 473,135 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 29, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common shares, par value | $ 1 | $ 1 |
Common shares, authorized | 48,000,000 | 48,000,000 |
Common shares, issued | 36,756,187 | 36,446,890 |
Common stock, shares, outstanding, before treasury shares | 36,756,000 | 36,447,000 |
Common shares held in treasury | 19,465,000 | 18,693,000 |
Reedemable common shares | 6,157,573 | 6,467,027 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 265,318 | $ 249,588 | $ 744,618 | $ 687,438 |
Costs and expenses: | ||||
Operating | 171,125 | 157,615 | 483,430 | 442,799 |
Selling | 49,367 | 45,508 | 133,341 | 121,858 |
General and administrative | 16,758 | 14,153 | 51,834 | 45,766 |
Depreciation and amortization | 14,807 | 13,749 | 41,866 | 38,939 |
Gain on sale of assets, net | (1,324) | (486) | (4,572) | (2,637) |
Total costs and expenses | 250,733 | 230,539 | 705,899 | 646,725 |
Income from operations | 14,585 | 19,049 | 38,719 | 40,713 |
Other income (expense): | ||||
Interest expense | (1,811) | (1,278) | (4,966) | (3,607) |
Interest income | 80 | 67 | 259 | 210 |
Other, net | (1,322) | (1,764) | (4,036) | (4,242) |
Income before income taxes | 11,532 | 16,074 | 29,976 | 33,074 |
Income taxes | 3,148 | 5,837 | 6,505 | 12,501 |
Net income | $ 8,384 | $ 10,237 | $ 23,471 | $ 20,573 |
Net income per share: | ||||
Basic | $ 0.35 | $ 0.41 | $ 0.96 | $ 0.81 |
Diluted | $ 0.34 | $ 0.39 | $ 0.92 | $ 0.77 |
Weighted-average shares outstanding: | ||||
Basic | 23,768 | 25,120 | 24,443 | 25,551 |
Diluted | 24,816 | 26,416 | 25,543 | 26,714 |
Dividends declared per share | $ 0.025 | $ 0.025 | $ 0.075 | $ 0.075 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,384 | $ 10,237 | $ 23,471 | $ 20,573 |
Components of other comprehensive income/(loss), net of tax: | ||||
Foreign currency translation adjustments | 517 | 1,295 | (1,062) | 2,498 |
Amortization of defined benefit pension items: | ||||
Net actuarial loss | 135 | 147 | 404 | 441 |
Prior service cost | 11 | 10 | 35 | 30 |
Defined benefit pension plan adjustments | 146 | 157 | 439 | 471 |
Other comprehensive income/(loss), net of tax | 663 | 1,452 | (623) | 2,969 |
Comprehensive income | $ 9,047 | $ 11,689 | $ 22,848 | $ 23,542 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Operating activities | ||
Net income | $ 23,471 | $ 20,573 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 41,866 | 38,939 |
Other | (834) | (443) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (24,370) | (23,135) |
Operating liabilities | 6,667 | 12,139 |
Other, net | (22,003) | (9,644) |
Total changes in operating assets and liabilities | 1,326 | 17,856 |
Net cash provided by operating activities | 24,797 | 38,429 |
Capital expenditures: | ||
Equipment | (47,689) | (44,727) |
Land and building | (591) | (3,641) |
Purchases of businesses, net of cash acquired | (8,241) | (7,452) |
Other | 5,836 | 3,372 |
Net cash used in investing activities | (50,685) | (52,448) |
Financing activities | ||
Revolving credit facility (payments)/proceeds, net | (8,000) | 30,000 |
Purchase of common shares for treasury | (30,958) | (19,512) |
Sale of common shares from treasury | 14,235 | 11,268 |
Dividends paid | (1,818) | (1,898) |
Proceeds from notes payable | 72,746 | 16,443 |
Payments of notes payable | (22,922) | (21,053) |
Net cash provided by financing activities | 23,283 | 15,248 |
(Decrease)/increase in cash | (2,605) | 1,229 |
Cash, beginning of period | 13,121 | 9,006 |
Cash, end of period | 10,516 | 10,235 |
Supplemental cash flow information follows: | ||
Interest paid | 5,163 | 4,079 |
Income taxes paid | $ 7,898 | $ 7,189 |
Basis of Financial Statement Pr
Basis of Financial Statement Preparation | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of financial statement preparation [Text Block] | Basis of Financial Statement Preparation The condensed consolidated financial statements present the financial position, results of operations and cash flows of The Davey Tree Expert Company and its subsidiaries. When we refer to “we,” “us,” “our,” “Davey,” or “Davey Tree”, we mean The Davey Tree Expert Company and its subsidiaries, unless otherwise expressly stated or the context indicates otherwise. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), as codified in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The consolidated financial statements include all adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal, recurring nature. All intercompany accounts and transactions have been eliminated. Certain information and disclosures required by U.S. GAAP for complete financial statements have been omitted in accordance with the rules and regulations of the SEC. We suggest that these condensed consolidated financial statements be read in conjunction with the financial statements included in our annual report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Annual Report”). Use of Estimates in Financial Statement Preparation --The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts. Our consolidated financial statements include amounts that are based on management’s best estimates and judgments. Estimates are used for, but not limited to, accounts receivable valuation, depreciable lives of fixed assets, self-insurance reserves, income taxes and revenue recognition. Actual results could differ from those estimates. The Company’s fiscal quarters each contain thirteen operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains fourteen operating weeks. The Company’s fiscal quarter that ended September 29, 2018 is referred to as the third quarter of 2018, and the fiscal quarter ended September 30, 2017 is referred to as the third quarter of 2017. Recent Accounting Guidance Accounting Standards Adopted in 2018 Accounting Standards Update 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business --In January 2017, the FASB issued Accounting Standard Update ("ASU") 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," which provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. The Company adopted the guidance effective January 1, 2018. ASU 2017-01 applies prospectively for annual and interim periods beginning after December 15, 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements. Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force) --In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on how cash receipts and cash payments related to eight specific cash flow issues are presented and classified in the statement of cash flows, with the objective of reducing the existing A. Basis of Financial Statement Preparation (continued) diversity in practice. The Company adopted ASU 2016-15 on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact on our consolidated financial statements. Accounting Standards Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost --In March 2017, the FASB issued ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which changes the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Under ASU 2017-07, service costs are included within the same income statement line item as other compensation costs arising from services rendered by pertinent employees during the period. The other components of net periodic benefit pension cost are presented separately outside of income from operations. Additionally, only the service cost component of the net periodic benefit cost may be capitalized in assets. The amendments under ASU 2017-07 also provide a practical expedient that permits the use of amounts disclosed in the pension and other postretirement benefit plan footnote for prior year comparative periods as the estimation basis for applying the guidance retrospectively. The Company adopted ASU 2017-07 on January 1, 2018 and chose to use the practical expedient provided when applying the guidance retrospectively. Upon adoption, service costs are recognized in our financial statements as general and administrative expenses while the remaining components of net periodic benefit cost are recognized as other income (expense). Pension expense of $348 for the third quarter 2017 and $1,042 for the first nine months of 2017 have been reclassified from general and administrative expense to other income (expense). Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606 )--In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which replaces all current U.S. GAAP guidance on revenue recognition and eliminates all industry-specific guidance. The Company adopted ASU 2014-09 and applied it to all contracts that were not completed as of January 1, 2018 using the modified retrospective method. The cumulative effect of applying the guidance in ASU 2014-09 was not material. Further, the adoption of ASU 2014-09 did not have a significant impact on the amount or timing of revenue recognition. Therefore, we have not disclosed the amount by which each financial statement line item is affected in the current period as a result of applying ASU 2014-09 or an explanation of significant changes between our results as reported and those that would have been reported under legacy U.S. GAAP, as no significant changes were identified. Accounting Standards Not Yet Adopted Accounting Standards Update 2016-02, Leases (Topic 842) --In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. The new standard is effective for interim and annual periods beginning after December 15, 2018, which for Davey Tree would be January 1, 2019. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. The Company plans to adopt ASU 2016-02 on January 1, 2019. Management is evaluating all real estate, personal property and other arrangements that may meet the definition of a lease and has purchased a technology solution to assist with the management of leases. Management expects to adopt the standard using the Comparative Under ASC 840 approach and has evaluated the accounting elections and A. Basis of Financial Statement Preparation (continued) practical expedients available under the standard, and expects to elect to use the package of practical expedients, except for the hindsight expedient. Management expects that the adoption of ASU 2016-02 will have a material impact on the Company's total assets and liabilities with a minimal impact on equity and results of operations. Accounting Standards Update 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) --In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)." ASU 2018-02 provides an option to reclassify the stranded tax effects within accumulated other comprehensive income to retained earnings as a result of the Tax Cuts and Jobs Act of 2017 (the "Tax Reform Act"). This standard is effective for interim and annual reporting periods beginning after December 15, 2018, which for Davey Tree would be January 1, 2019. Early adoption is permitted. Management has not yet completed its assessment of the impact of the new standard on the Company's consolidated financial statements. SEC Release No. 33-10532, Disclosure Update and Simplification --In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of shareholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of shareholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule is effective for all filings made on or after November 5, 2018. Given the effective date and the proximity to most filers' quarterly reports, the SEC is not objecting to filers deferring the presentation of changes in shareholders' equity in their Forms 10-Q until the quarter that begins after the date of adoption, November 5, 2018. We plan to present the interim changes in shareholders' equity required by SEC Release No. 33-10532 beginning with our first quarter 2019 Form 10-Q. We do not believe that any of the additional elements of this release will have a material impact on the Company's consolidated financial statements. |
Seasonality of Business
Seasonality of Business | 9 Months Ended |
Sep. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Seasonality of business | Seasonality of Business Due to the seasonality of our business, our operating results for the nine months ended September 29, 2018 are not indicative of results that may be expected for any other interim period or for the year ending December 31, 2018 . Our business seasonality traditionally results in higher revenues during the second and third quarters as compared with the first and fourth quarters of the year, while the methods of accounting for fixed costs, such as depreciation expense, amortization, rent and interest expense, are not significantly impacted by business seasonality. |
Accounts Receivable, Net and Su
Accounts Receivable, Net and Supplemental Balance-Sheet Information | 9 Months Ended |
Sep. 29, 2018 | |
Accounts Receivable, Net and Supplemental Balance-Sheet Information [Abstract] [Abstract] | |
Accounts receivable net and supplemental balance-sheet information [Text Block] | Accounts Receivable, Net and Supplemental Balance-Sheet Information Accounts receivable, net, consisted of the following: Accounts receivable, net September 29, December 31, Accounts receivable $ 150,161 $ 143,244 Receivables under contractual arrangements 48,526 29,895 198,687 173,139 Less allowances for doubtful accounts 4,310 4,468 Accounts receivable, net $ 194,377 $ 168,671 Receivables under contractual arrangements consist of work-in-process in accordance with the terms of contracts, primarily with utility services customers. The following items comprise the amounts included in the balance sheets: Other current assets September 29, December 31, Refundable income taxes $ — $ 587 Prepaid expense 24,997 15,893 Other 842 784 Total $ 25,839 $ 17,264 Accrued expenses September 29, December 31, Employee compensation $ 22,867 $ 20,794 Accrued compensated absences 10,054 9,267 Self-insured medical claims 5,847 3,193 Income tax payable 2,660 3,443 Customer advances, deposits 439 1,672 Taxes, other than income 3,827 2,279 Other 2,138 2,168 Total $ 47,832 $ 42,816 C. Accounts Receivable, Net and Supplemental Balance-Sheet Information (continued) Other current liabilities September 29, December 31, Note payable $ 100 $ 149 Current portion of: Long-term debt 25,991 16,817 Self-insurance reserves 23,825 23,782 Total $ 49,916 $ 40,748 Other noncurrent liabilities September 29, December 31, Pension and retirement plans $ 6,061 $ 14,759 Other 3,487 5,207 Total $ 9,548 $ 19,966 |
Business Combinations (Notes)
Business Combinations (Notes) | 9 Months Ended |
Sep. 29, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Our investments in businesses during the first nine months of 2018 were $10,553 , including debt issued, in the form of notes payable to the sellers of $2,312 , and have been included in our residential and commercial and utility segments. Measurement-period adjustments are not complete. The measurement period for purchase price allocations ends as soon as information of the facts and circumstances becomes available, but does not exceed one year from the acquisition date. During the nine months ended September 30, 2017 , our investment in businesses was $10,877 , including $3,099 of debt issued. The following table summarizes the preliminary purchase price allocation of the estimated fair values of the assets acquired and liabilities assumed: Nine Months Ended September 29, September 30, Detail of acquisitions: Assets acquired: Cash $ — $ 326 Receivables 1,336 1,753 Operating supplies 23 — Prepaid expense 84 128 Equipment 4,019 1,904 Deposits and other 5 129 Intangibles 4,617 4,566 Goodwill 2,603 5,027 Liabilities assumed (2,134 ) (2,956 ) Debt issued for purchases of businesses (2,312 ) (3,099 ) Cash paid $ 8,241 $ 7,778 D. Business Combinations (continued) The results of operations of acquired businesses have been included in the consolidated statements of operations beginning as of the effective dates of acquisition. The effect of these acquisitions on our consolidated revenues and results of operations for the period ended September 29, 2018 was not significant. Pro forma net sales and results of operations for the acquisitions, had they occurred at the beginning of the nine months ended September 29, 2018 are not material and, accordingly, are not provided. |
Identified Intangible Assets an
Identified Intangible Assets and Goodwill, Net | 9 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified intangible assets and goodwill, net [Text Block] | Identified Intangible Assets and Goodwill, Net The carrying amounts of the identified intangible assets and goodwill acquired were as follows: September 29, 2018 December 31, 2017 Identified Intangible Assets and Goodwill, Net Carrying Amount Accumulated Amortization Carrying Amount Accumulated Amortization Amortized intangible assets: Customer lists/relationships $ 25,012 $ 17,860 $ 21,487 $ 16,846 Employment-related 8,080 6,853 7,333 6,624 Tradenames 6,806 5,345 5,978 5,134 Amortized intangible assets 39,898 $ 30,058 34,798 $ 28,604 Less accumulated amortization 30,058 28,604 Identified intangible assets, net 9,840 6,194 Unamortized intangible assets: Goodwill 37,762 35,477 $ 47,602 $ 41,671 The changes in the carrying amounts of goodwill, by segment, for the nine months ended September 29, 2018 follow: Balance at January 1, 2018 Acquisitions Translation and Other Adjustments Balance at September 29, 2018 Utility $ 3,424 $ 1,499 $ — $ 4,923 Residential and Commercial 32,053 1,104 (318 ) 32,839 Total $ 35,477 $ 2,603 $ (318 ) $ 37,762 In the first quarter of 2018, the Company finalized all purchase accounting adjustments related to the Arborguard Tree Specialists, Inc. acquisition. The Company has recorded fair value adjustments based on new information obtained during the measurement period primarily related to customer lists, and deferred taxes. These adjustments were not material . |
Long-Term Debt and Commitments
Long-Term Debt and Commitments Related to Letters of Credit | 9 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Long-term debt and commitments related to letters of credit [Text Block] | Long-Term Debt and Commitments Related to Letters of Credit Our long-term debt consisted of the following: September 29, December 31, Revolving credit facility: Swing-line borrowings $ 12,000 $ — LIBOR borrowings 80,000 100,000 92,000 100,000 5.09% Senior unsecured notes 12,000 18,000 3.99% Senior unsecured notes 50,000 — Term loans 25,481 16,242 Capital leases 3,781 2,510 183,262 136,752 Less debt issuance costs 646 725 Less current portion 25,991 16,817 $ 156,625 $ 119,210 Revolving Credit Facility --As of September 29, 2018 , we had a $250,000 revolving credit facility with a group of banks, which expires in October 2022 and permits borrowings, as defined, up to $250,000 , including a letter of credit sublimit of $100,000 and a swing-line commitment of $25,000 . Under certain circumstances, the amount available under the revolving credit facility may be increased to $325,000 . The revolving credit facility contains certain affirmative and negative covenants customary for this type of facility and includes financial covenant ratios with respect to a maximum leverage ratio (not to exceed 3.00 to 1.00 with exceptions in case of material acquisitions) and a minimum interest coverage ratio (not less than 3.00 to 1.00), in each case subject to certain further restrictions as described in the credit agreement. As of September 29, 2018 , we had unused commitments under the facility approximating $155,087 , with $94,913 committed, consisting of borrowings of $92,000 and issued letters of credit of $2,913 . Borrowings outstanding bear interest, at Davey Tree’s option, of either (a) a base rate or (b) LIBOR plus a margin adjustment ranging from .875% to 1.50% --with the margin adjustments in both instances based on the Company's leverage ratio at the time of borrowing. The base rate is the greater of (i) the agent bank’s prime rate, (ii) LIBOR plus 1.50% , or (iii) the federal funds rate plus .50% . A commitment fee ranging from .10% to .225% is also required based on the average daily unborrowed commitment. 5.09 % Senior Unsecured Notes --During July 2010, we issued 5.09 % Senior Unsecured Notes, Series A (the " 5.09 % Senior Notes"), in the aggregate principal amount of $30,000 pursuant to a Master Note Purchase Agreement (the “ 5.09 % Senior Note Purchase Agreement”) between the Company and the purchasers of the 5.09 % Senior Notes. The 5.09 % Senior Unsecured Notes are due July 22, 2020. The 5.09 % Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commenced on July 22, 2016 (the sixth anniversary of issuance). The 5.09 % Senior Note Purchase Agreement F. Long-Term Debt and Commitments Related to Letters of Credit (continued) contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios. 3.99 % Senior Unsecured Notes --On September 21, 2018, we issued 3.99 % Senior Notes, Series A (the " 3.99 % Senior Notes"), in the aggregate principal amount of $50,000 . The 3.99 % Senior Notes are due September 21, 2028. The 3.99 % Senior Notes were issued pursuant to a Note Purchase and Private Shelf Agreement (the “ 3.99 % Senior Note Purchase Agreement”) between the Company and the purchasers of the 3.99 % Senior Notes. Subsequent series of promissory notes may be issued pursuant to the 3.99 % Senior Note Purchase Agreement (the "Shelf Notes") in an aggregate additional principal amount not to exceed $50,000 . The net proceeds of the 3.99 % Senior Notes were used to pay down borrowings under our revolving credit facility. The 3.99 % Senior Notes are equal in right of payment with our revolving credit facility and all other senior unsecured obligations of the Company. Interest is payable semiannually and five equal, annual principal payments commence on September 21, 2024 (the sixth anniversary of issuance). The 3.99 % Senior Note Purchase Agreement contains customary events of default and covenants related to limitations on indebtedness and transactions with affiliates and the maintenance of certain financial ratios. In conjunction with the issuance of the 3.99 % Senior Notes, on September 21, 2018, the Company entered into an amendment to its revolving credit facility. The amendment amends certain provisions and covenants in the credit agreement to generally conform them to the corresponding provisions and covenants in the 3.99 % Senior Note Purchase Agreement. The amendment also permits the Company to incur indebtedness arising under the 3.99 % Senior Note Purchase Agreement in an aggregate principal amount not to exceed $75,000 , which includes the $50,000 of Series A Notes, plus an additional $25,000 in Shelf Notes. Term loans --Periodically, the company will enter into term loans for the procurement of insurance or to finance acquisitions. Accounts Receivable Securitization Facility --In May 2018, the Company amended its Accounts Receivable Securitization Facility (the "AR Securitization program") to extend the scheduled termination date for an additional one -year period, to May 6, 2019. In addition, for purposes of determining events of default, the Days' Sales Outstanding calculation was amended to include the most recent six fiscal months. The prior calculation was based on the most recent three fiscal months. The AR Securitization program has a limit of $100,000 , of which $67,438 was issued for letters of credit as of September 29, 2018 . Under the AR Securitization program, Davey Tree transfers by selling or contributing current and future trade receivables to a wholly-owned, bankruptcy-remote financing subsidiary which pledges a perfected first priority security interest in the trade receivables--equal to the issued letters of credit ("LCs") as of September 29, 2018 --to the bank in exchange for the bank issuing LCs. Fees payable to the bank include: (a) an LC issuance fee, payable on each settlement date, in the amount of .90% per annum on the aggregate amount of all LCs outstanding plus outstanding reimbursement obligations (e.g., F. Long-Term Debt and Commitments Related to Letters of Credit (continued) arising from drawn LCs), if any, and (b) an unused LC fee, payable monthly, equal to (i) .35% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is greater than or equal to 50% of the facility limit and (ii) .45% per annum for each day on which the sum of the total LCs outstanding plus any outstanding reimbursement obligations is less than 50% of the facility limit. If an LC is drawn and the bank is not immediately reimbursed in full for the drawn amount, any outstanding reimbursement obligation will accrue interest at a per annum rate equal to a reserve-adjusted LIBOR or, in certain circumstances, a base rate equal to the higher of (i) the bank’s prime rate and (ii) the federal funds rate plus .50% and, following any default, 2.00% plus the greater of (a) adjusted LIBOR and (b) a base rate equal to the higher of (i) the bank’s prime rate and (ii) the federal funds rate plus .50% . The agreements underlying the AR Securitization program contain various customary representations and warranties, covenants, and default provisions which provide for the termination and acceleration of the commitments under the AR Securitization program in circumstances including, but not limited to, failure to make payments when due, breach of a representation, warranty or covenant, certain insolvency events or failure to maintain the security interest in the trade receivables, and defaults under other material indebtedness. Total Commitments Related to Issued Letters of Credit --As of September 29, 2018 , total commitments related to issued letters of credit were $72,355 , of which $2,913 were issued under the revolving credit facility, $67,438 were issued under the AR Securitization program, and $2,004 were issued under short-term lines of credit. As of December 31, 2017 , total commitments related to issued letters of credit were $63,242 , of which $3,088 were issued under the revolving credit facility, $58,150 were issued under the AR Securitization program, and $2,004 were issued under short-term lines of credit. As of September 29, 2018, we are in compliance with all debt covenants. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation[Text Block] | Stock-Based Compensation Our shareholders approved the 2014 Omnibus Stock Plan (the “2014 Stock Plan”) at our annual meeting of shareholders on May 20, 2014. The 2014 Stock Plan replaced the expired 2004 Omnibus Stock Plan (the “2004 plan”) previously approved by the shareholders in 2004. The 2014 Stock Plan is administered by the Compensation Committee of the Board of Directors and has a term of ten years. All directors of the Company and employees of the Company and its subsidiaries are eligible to participate in the 2014 Stock Plan. The 2014 Stock Plan (similar to the 2004 plan) continues the maintenance of the Employee Stock Purchase Plan, as well as provisions for the grant of stock options and other stock-based incentives. The 2014 Stock Plan provides for the grant of five percent of the number of the Company’s common shares outstanding as of the first day of each fiscal year plus the number of common shares that were available for grant of awards, but not granted, in prior years. In no event, however, may the number of common shares available for the grant of awards in any fiscal year exceed ten percent of the common shares outstanding as of the first day of that fiscal year. Common shares subject to an award that is forfeited, terminated, or canceled without having been exercised are generally added back to the number of shares available for grant under the 2014 Stock Plan. G. Stock-Based Compensation (continued) Stock-based compensation expense under all share-based payment plans -- our Employee Stock Purchase Plan, stock option plans, stock-settled stock appreciation rights and restricted stock units -- are included in the results of operations as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Compensation expense, all share-based payment plans $ 785 $ 847 $ 2,578 $ 3,295 Stock-based compensation consisted of the following: Employee Stock Purchase Plan --Under the Employee Stock Purchase Plan, all full-time employees with one year of service are eligible to purchase, through payroll deduction, common shares. Employee purchases under the Employee Stock Purchase Plan are at 85% of the fair market value of the common shares--a 15% discount. We recognize compensation costs as payroll deductions are made. The 15% discount of total shares purchased under the plan resulted in compensation cost of $765 being recognized for the nine months ended September 29, 2018 and $670 for the nine months ended September 30, 2017 . Stock Option Plans --The stock options outstanding were awarded under a graded vesting schedule, measured at fair value, and have a term of ten years. Compensation costs for stock options are recognized over the requisite service period on the straight-line recognition method. Compensation cost recognized for stock options was $506 for the nine months ended September 29, 2018 and $532 for the nine months ended September 30, 2017 . Stock-Settled Stock Appreciation Rights -- During the nine months ended September 29, 2018 , the Compensation Committee awarded 121,243 stock-settled stock appreciation rights (“SSARs”) to certain management employees, which vest ratably over five years. A SSAR is an award that allows the recipient to receive common shares equal to the appreciation in the fair market value of our common shares between the date the award was granted and the conversion date of the shares vested. G. Stock-Based Compensation (continued) The following table summarizes our SSARs as of September 29, 2018 . Stock-Settled Stock Appreciation Rights Number Rights Weighted- Average Award Date Value Weighted- Life Unrecognized Cost Aggregate Value Unvested, January 1, 2018 448,180 $ 3.10 Granted 121,243 3.84 Forfeited — — Vested (150,120 ) 3.01 Unvested, September 29, 2018 419,303 $ 3.35 2.3 years $ 1,058 $ 8,260 Compensation costs for SSARs are determined using a fair-value method and amortized over the requisite service period. Compensation expense for SSARs was $406 for the nine months ended September 29, 2018 and $931 for the nine months ended September 30, 2017 . Restricted Stock Units --During the nine months ended September 29, 2018 , the Compensation Committee awarded 31,738 performance-based restricted stock units ("PRSUs") to certain management employees and 13,188 restricted stock units ("RSUs") to nonemployee directors. The Compensation Committee made similar awards in prior periods. The awards vest over specified periods. The following table summarizes PRSUs and RSUs as of September 29, 2018 . Restricted Stock Units Number Units Weighted- Average Grant Date Value Weighted- Average Remaining Contractual Life Unrecognized Cost Aggregate Intrinsic Value Unvested, January 1, 2018 290,666 $ 14.41 Granted 44,926 18.55 Forfeited — — Vested (80,806 ) 12.71 Unvested, September 29, 2018 254,786 $ 15.67 2.2 years $ 1,996 $ 5,019 Employee PRSUs 216,134 $ 15.40 2.4 years $ 1,617 $ 4,258 Nonemployee Director RSUs 38,652 $ 17.17 1.6 years $ 379 $ 761 Compensation cost for restricted stock awards is determined using a fair-value method and amortized on the straight-line recognition method over the requisite service period. Compensation expense on restricted stock awards totaled $901 for the nine months ended September 29, 2018 and $1,162 for the nine months ended September 30, 2017 . We estimated the fair value of each stock-based award on the date of grant using a binomial option-pricing model. The binomial model considers a range of assumptions related to volatility, risk-free interest rate and employee G. Stock-Based Compensation (continued) exercise behavior. Expected volatilities utilized in the binomial model are based on historical volatility of our stock prices and other factors. Similarly, the dividend yield is based on historical experience and expected future changes. The binomial model also incorporates exercise assumptions based on an analysis of historical data. The expected life of the stock-based awards is derived from the output of the binomial model and represents the period of time that awards granted are expected to be outstanding. The fair values of stock-based awards granted were estimated at the dates of grant with the following weighted-average assumption. Nine Months Ended September 29, September 30, Volatility rate 10.1 % 10.3 % Risk-free interest rate 2.7 % 2.2 % Expected dividend yield .7 % .7 % Expected life of awards (years) 9.2 8.9 General Stock Option Information --The following table summarizes activity under the stock option plans for the nine months ended September 29, 2018 . Stock Options Number Outstanding Weighted- Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, January 1, 2018 1,528,615 $ 13.05 Granted 143,250 19.10 Exercised (104,243 ) 10.24 Forfeited (49,000 ) 13.43 Outstanding, September 29, 2018 1,518,622 $ 13.80 6.0 years $ 8,960 Exercisable, September 29, 2018 942,172 $ 11.66 4.8 years $ 7,577 As of September 29, 2018 , there was approximately $1,558 of unrecognized compensation cost related to stock options outstanding. The cost is expected to be recognized over a weighted-average period of 2.3 years . “Intrinsic value” is defined as the amount by which the market price of a common share exceeds the exercise price of an option. Common shares are issued from treasury upon the exercise of stock options, SSARs, RSUs, PRSUs or purchases under the Employee Stock Purchase Plan. |
Net Periodic Benefit Expense -
Net Periodic Benefit Expense - Defined Benefit Pension Plans | 9 Months Ended |
Sep. 29, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |
Net periodic benefit expense--defined benefit pension plans [Text Block] | Net Periodic Benefit Expense--Defined Benefit Pension Plans The results of operations included the following net periodic benefit expense (income) recognized related to our defined-benefit pension plans. Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Components of pension expense (income) Service costs--increase in benefit obligation earned $ 100 $ 132 $ 300 $ 397 Interest cost on projected benefit obligation 180 263 539 790 Expected return on plan assets (58 ) (169 ) (173 ) (508 ) Amortization of net actuarial loss 181 237 545 712 Amortization of prior service cost 16 17 48 48 Net pension expense of defined benefit pension plans $ 419 $ 480 $ 1,259 $ 1,439 The components of net periodic benefit expense, other than the service cost component, are included in the line item other income (expense) in the income statement. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes [Text Block] | Income Taxes Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate and, if our estimated annual tax rate changes, we make a cumulative adjustment. The annual effective tax rate for the nine months ended September 29, 2018 is 21.7 %. Our annual effective tax rate for the nine months ended September 30, 2017 was estimated at 37.8 %. Our actual effective tax rate was 27.3% and 36.3% for the three months ended September 29, 2018 and September 30, 2017 , respectively. The change in rate is primarily due to the Tax Reform Act, that was signed into law on December 22, 2017 by the President of the United States, which reduces the corporate federal income tax rate for 2018 and beyond from 35% to 21%. As a result of the Tax Reform Act, the Company estimated a tax liability of $6,100 due to the transition toll tax on the deemed repatriation of deferred foreign earnings of non-U.S. operations, which the Company believes will be fully offset by foreign tax credits. The final amounts recorded in subsequent financial statements may differ from these provisional amounts due to, among other things, additional analysis related to foreign deferred earnings, changes in interpretations of the Tax Reform Act and related assumptions of the Company and additional regulatory guidance that may be issued. On December 22, 2017, the SEC issued Staff Accounting Bulletin 118 (“SAB 118”). This guidance allows registrants a “measurement period”, not to exceed one year from the date of enactment, to complete their accounting for the tax effects of the Tax Reform Act. SAB 118 further directs that during the measurement period, registrants who are able to make reasonable estimates for the tax effects of the Tax Reform Act should include those amounts in their financial statements as “provisional” amounts. Registrants should reflect adjustments over I. Income Taxes (continued) subsequent periods as they are able to refine their estimates and complete their accounting for the tax effects of the Tax Reform Act. The provisional amounts computed by the Company will be finalized in the fourth quarter of 2018. At December 31, 2017 , we had unrecognized tax benefits of $2,581 , of which $1,948 would affect our effective rate if recognized, and accrued interest expense related to unrecognized benefits of $128 . During the second quarter 2018 we decreased our unrecognized tax benefits by $1,547 as a result of the pending settlement of the IRS audits of our 2015 and 2016 U.S. income tax returns. As of September 29, 2018 , we had unrecognized tax benefits of $1,059 , of which $585 would affect our effective rate if recognized, and accrued interest expense related to unrecognized benefits of $24 . Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for financial reporting purposes. We recognize interest accrued related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. The Company is routinely under audit by federal, state, local and Canadian authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The IRS finalized their audit of our 2015 and 2016 U.S. income tax returns in July 2018. With the exception of U.S. state jurisdictions, the Company is no longer subject to examination by tax authorities for the years through 2016. As of September 29, 2018 , we believe it is reasonably possible that the total amount of unrecognized tax benefits will not significantly increase or decrease. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss) [Text Block] | Accumulated Other Comprehensive Income (Loss) Comprehensive income (or loss) is comprised of net income (or net loss) and other components, including currency translation adjustments and defined-benefit pension plan adjustments. The following summarizes the components of other comprehensive income (loss) accumulated in shareholders’ equity for the three and nine months ended September 29, 2018 and the three and nine months ended September 30, 2017 : Three Months Ended September 29, 2018 Foreign Currency Translation Adjustments Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at July 1, 2018 $ (4,884 ) $ (4,795 ) $ (9,679 ) Other comprehensive income (loss) before reclassifications Unrealized gains $ 517 $ — $ 517 Amounts reclassified from accumulated other comprehensive income (loss) — 197 197 Tax effect — (51 ) (51 ) Net of tax amount 517 146 663 Balance at September 29, 2018 $ (4,367 ) $ (4,649 ) $ (9,016 ) J. Accumulated Other Comprehensive Income (Loss) (continued) Three Months Ended September 30, 2017 Foreign Currency Translation Adjustments Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at July 2, 2017 $ (4,297 ) $ (6,348 ) $ (10,645 ) Other comprehensive income (loss) before reclassifications Unrealized gains $ 1,295 $ — $ 1,295 Amounts reclassified from accumulated other comprehensive income (loss) — 254 254 Tax effect — (97 ) (97 ) Net of tax amount 1,295 157 1,452 Balance at September 30, 2017 $ (3,002 ) $ (6,191 ) $ (9,193 ) Nine Months Ended September 29, 2018 Foreign Currency Translation Adjustments Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2018 $ (3,305 ) $ (5,088 ) $ (8,393 ) Other comprehensive income (loss) before reclassifications Unrealized losses $ (1,062 ) $ — $ (1,062 ) Amounts reclassified from accumulated other comprehensive income (loss) — 593 593 Tax effect — (154 ) (154 ) Net of tax amount (1,062 ) 439 (623 ) Balance at September 29, 2018 $ (4,367 ) $ (4,649 ) $ (9,016 ) Nine Months Ended September 30, 2017 Foreign Currency Translation Adjustments Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2017 $ (5,500 ) $ (6,662 ) $ (12,162 ) Other comprehensive income (loss) before reclassifications Unrealized gains $ 2,498 $ — $ 2,498 Amounts reclassified from accumulated other comprehensive income (loss) — 760 760 Tax effect — (289 ) (289 ) Net of tax amount 2,498 471 2,969 Balance at September 30, 2017 $ (3,002 ) $ (6,191 ) $ (9,193 ) The changes in defined benefit pension plans of $197 and $593 for the three and nine months ended September 29, 2018 , respectively, and the $254 and $760 for the three and nine months ended September 30, 2017 , respectively, J. Accumulated Other Comprehensive Income (Loss) (continued) are included in net periodic pension expense classified in the condensed statement of operations as general and administrative or other income (expense). |
Per Share Amounts and Common Sh
Per Share Amounts and Common Shares Outstanding | 9 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Per share amounts and common and redeemable shares outstanding [Text Block] | Per Share Amounts and Common and Redeemable Shares Outstanding We calculate our basic earnings per share by dividing net income or net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated in a similar manner, but include the effect of dilutive securities. To the extent these securities are antidilutive, they are excluded from the calculation of earnings per share. The per share amounts were computed as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Income available to common shareholders: Net income $ 8,384 $ 10,237 $ 23,471 $ 20,573 Weighted-average shares: Basic: Outstanding 23,592 24,925 23,916 24,965 Partially-paid share subscriptions 176 195 527 586 Basic weighted-average shares 23,768 25,120 24,443 25,551 Diluted: Basic from above 23,768 25,120 24,443 25,551 Incremental shares from assumed: Exercise of stock subscription purchase rights 151 158 146 148 Exercise of stock options and awards 897 1,138 954 1,015 Diluted weighted-average shares 24,816 26,416 25,543 26,714 Net income per share: Basic $ .35 $ .41 $ .96 $ .81 Diluted $ .34 $ .39 $ .92 $ .77 K. Per Share Amounts and Common and Redeemable Shares Outstanding (continued) Common and Redeemable Shares Outstanding -- A summary of the activity of the common and redeemable shares outstanding for the nine months ended September 29, 2018 follows: Common Shares Net of Treasury Shares Redeemable Shares Total Shares outstanding at January 1, 2018 17,753,832 6,467,027 24,220,859 Shares purchased (1,053,421 ) (560,220 ) (1,613,641 ) Shares sold 369,296 250,767 620,063 Stock subscription offering -- cash purchases 80,487 — 80,487 Options and awards exercised 140,663 — 140,663 Shares outstanding at September 29, 2018 17,290,857 6,157,574 23,448,431 On September 29, 2018 , we had 23,448,431 common and redeemable shares outstanding, employee options exercisable to purchase 942,172 common shares, partially-paid subscriptions for 702,984 common shares and purchase rights outstanding for 276,074 common shares. Stock Subscription Offering --Beginning May 2012, the Company offered to eligible employees and nonemployee directors the right to subscribe to common shares of the Company at $9.85 per share in accordance with the provisions of The Davey Tree Expert Company 2004 Omnibus Stock Plan and the rules of the Compensation Committee of the Company's Board of Directors (collectively, the "plan"). The offering period ended on August 1, 2012 and resulted in the subscription of 1,275,428 common shares for $12,563 at $9.85 per share. Under the plan, a participant in the offering purchasing common shares for an aggregate purchase price of less than $5 was required to pay with cash. All participants (excluding Company directors and officers) purchasing $5 or more of the common shares had an option to finance their purchase through a down-payment of at least 10% of the total purchase price and a seven -year promissory note for the balance due with interest at 2% . Payments on the promissory note can be made either by payroll deductions or annual lump-sum payments of both principal and interest. Common shares purchased under the plan have been pledged as security for the payment of the promissory note and the common shares will not be issued until the promissory note is paid-in-full. Dividends will be paid on all subscribed shares, subject to forfeiture to the extent that payment is not ultimately made for the shares. All participants in the offering purchasing in excess of $5 of common shares were granted a "right" to purchase one additional common share at a price of $9.85 per share for every three common shares purchased under the plan. As a result of the stock subscription, employees were granted rights to purchase 423,600 common shares. Each right may be exercised at the rate of one-seventh per year and will expire seven years after the date that the right was granted. Employees may not exercise a right should they cease to be employed by the Company. |
Operations by Business Segment
Operations by Business Segment | 9 Months Ended |
Sep. 29, 2018 | |
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 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; and, 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.” Measurement of Segment Profit and Loss and Segment Assets -- We evaluate performance and allocate resources based primarily on operating income and also actively manage business unit operating assets. Segment information, including reconciling adjustments, is presented consistent with the basis described in our 2017 Annual Report. L. Operations by Business Segment (continued) Segment information reconciled to consolidated external reporting information follows: Utility Residential and Commercial All Other Reconciling Adjustments Consolidated Three Months Ended September 29, 2018 Revenues $ 135,768 $ 130,408 $ (858 ) $ — $ 265,318 Income (loss) from operations 6,198 13,360 (3,615 ) (1,358 ) (a) 14,585 Interest expense (1,811 ) (1,811 ) Interest income 80 80 Other income (expense), net (1,322 ) (1,322 ) Income before income taxes $ 11,532 Segment assets, total $ 222,194 $ 214,374 $ — $ 85,087 (b) $ 521,655 Three Months Ended September 30, 2017 Revenues $ 124,540 $ 124,678 $ 370 $ — $ 249,588 Income (loss) from operations 6,854 14,616 (490 ) (1,931 ) (a) 19,049 Interest expense (1,278 ) (1,278 ) Interest income 67 67 Other income (expense), net (1,764 ) (1,764 ) Income before income taxes $ 16,074 Segment assets, total $ 180,031 $ 206,946 $ — $ 92,632 (b) $ 479,609 Nine Months Ended September 29, 2018 Revenues $ 382,951 $ 361,218 $ 449 $ — $ 744,618 Income (loss) from operations 14,277 37,089 (10,171 ) (2,476 ) (a) 38,719 Interest expense (4,966 ) (4,966 ) Interest income 259 259 Other income (expense), net (4,036 ) (4,036 ) Income before income taxes $ 29,976 Segment assets, total $ 222,194 $ 214,374 $ — $ 85,087 (b) $ 521,655 Nine Months Ended September 30, 2017 Revenues $ 349,921 $ 335,564 $ 1,953 $ — $ 687,438 Income (loss) from operations 13,782 34,871 (3,683 ) (4,257 ) (a) 40,713 Interest expense (3,607 ) (3,607 ) Interest income 210 210 Other income (expense), net (4,242 ) (4,242 ) Income before income taxes $ 33,074 Segment assets, total $ 180,031 $ 206,946 $ — $ 92,632 (b) $ 479,609 Reconciling adjustments from segment reporting to consolidated external financial reporting include unallocated corporate items: (a) Reclassification of depreciation expense and allocation of corporate expenses. (b) Corporate assets include cash, prepaid expenses, corporate facilities, enterprise-wide information systems and other nonoperating assets. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 9 Months Ended |
Sep. 29, 2018 | |
Revenue Recognition [Abstract] | |
Revenue from contract from customer [Text Block] | Revenue Recognition We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which we adopted on January 1, 2018, using the modified retrospective method. See Note A for further discussion of the adoption, including the impact on our 2018 financial statements. Nature of Performance Obligations and Significant Judgments At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promised good or service (or bundle of goods and services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. A description of our performance obligations is included below. • Residential and Commercial Services - We provide a wide array of services for our residential and commercial customers including the treatment, preservation, maintenance, removal and planting of trees, shrubs and other plant life, landscaping, grounds maintenance, the application of fertilizer, herbicides and insecticides, natural resource management and consulting, forestry research and development, and environmental planning. A contract with a customer may include only one of these services, all of these services, or a combination of these services. For contracts in which we provide all, or a combination of, these services, we believe that the nature of our promise is to provide an integrated property management service for our customer. In these contracts, the customer has effectively outsourced the care and maintenance of its property grounds to us during the duration of the contract as we are responsible for providing a continuous delivery of outsourced maintenance activities over the contract term. As such, for contracts that contain a combination of services, we have concluded that we have a single performance obligation, which is accounted for as a series of distinct services. • Utility Services - We provide a suite of vegetation management or arboricultural 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, chemical brush control, natural resource management and consulting, forestry research and development, and environmental planning. A contract with a customer may include only one of these services, all of these services, or a combination of these services. For contracts in which we provide all, or a combination of, these services, we believe that the nature of our promise is to provide an integrated overall vegetation management service, rather than the performance of discrete activities or services for the customer. As such, for contracts that contain a combination of services, we have concluded that we have a single performance obligation, which is accounted for as a series of distinct services. Our contracts with our customers generally originate upon the completion of a quote for services for residential and commercial customers or the receipt of a purchase order (or similar work order) for utility customers. In some cases, our contracts are governed by master services agreements, in which case our contract under ASC 606 consists of the combination of the master services agreement and the quote/purchase order. Many of our contracts have a stated duration of one year or less or contain termination clauses that allow the customer to cancel the contract after a specified notice period, which is typically less than 90 days. Due to the fact that many of our arrangements allow the customer to terminate for convenience, the duration of the contract for revenue recognition purposes generally does not extend beyond the services that we have actually transferred. As a result, many of our contracts are, in effect, day-to-day or month-to-month contracts. M. Revenue Recognition (continued) Revenue from our residential, commercial, and utility performance obligations is recognized over time as the customer simultaneously receives and consumes the benefits of our services as we perform them. Many of our contracts compensate us based on an agreed upon price for each increment of service provided to the customer. Therefore, revenue is mainly recognized as each increment of service is provided to the customer at the amount that we are contractually entitled to. For contracts that contain a fixed price, we generally use a units-delivered based output method to measure progress. Revenue from our consulting services is also recognized over time and we use a cost-based input method to measure progress. Payment for our services is generally due within 30 days of such services being provided to the customer. The transaction price for our contracts is determined upon establishment of the contract that contains the final terms of the sale, including the description, quantity, and price of each service purchased. Certain of our contracts contain variable consideration, including index-based pricing, chargebacks, and prompt payment discounts. The Company estimates variable consideration and performs a constraint analysis for these contracts on the basis of both historical information and current trends. However, these types of variable consideration do not have a material effect on the Company’s revenue, either individually or in the aggregate. In addition, although our contracts generally include fixed pricing for each increment of service, the ultimate quantity of services that will be required in order to fulfill our performance obligations is unknown at contract inception. Therefore, our total transaction price ultimately varies based on the quantity and types of services provided to our customer. However, this type of variable consideration is allocated entirely to the distinct services within the series to which it relates. Disaggregation of Revenue The following tables disaggregate our revenue for the three and nine months ended September 29, 2018 by major sources: Three Months Ended September 29, 2018 Utility Residential and Commercial All Other Consolidated Type of service: Tree and plant care $ 99,766 $ 79,709 $ (1,542 ) $ 177,933 Grounds maintenance — 26,024 — 26,024 Storm damage services 1,894 1,082 — 2,976 Consulting and other 34,108 23,593 684 58,385 Total revenues $ 135,768 $ 130,408 $ (858 ) $ 265,318 Geography: United States $ 125,302 $ 120,105 $ (858 ) $ 244,549 Canada 10,466 10,303 — 20,769 Total revenues $ 135,768 $ 130,408 $ (858 ) $ 265,318 M. Revenue Recognition (continued) Nine Months Ended September 29, 2018 Utility Residential and Commercial All Other Consolidated Type of service: Tree and plant care $ 283,200 $ 222,646 $ (1,553 ) $ 504,293 Grounds maintenance — 86,612 — 86,612 Storm damage services 5,729 2,892 — 8,621 Consulting and other 94,022 49,068 2,002 145,092 Total revenues $ 382,951 $ 361,218 $ 449 $ 744,618 Geography: United States $ 354,416 $ 332,488 $ 449 $ 687,353 Canada 28,535 28,730 — 57,265 Total revenues $ 382,951 $ 361,218 $ 449 $ 744,618 Contract Balances Our contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue. The Company has recognized $149 and $1,371 of revenue for the three and nine months ended September 29, 2018 that was included in the contract liability balance at December 31, 2017 . Net contract liabilities consisted of the following: September 29, December 31, Contract liabilities - current $ 3,121 $ 2,072 Contract liabilities - noncurrent 2,139 2,020 Net contract liabilities $ 5,260 $ 4,092 Practical Expedients & Accounting Policy Elections • Remaining performance obligations - The Company’s contracts for service revenue have an original duration of one year or less. Therefore, because of the short duration of these contracts, the Company has not disclosed the transaction price for the future performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. • Incremental costs of obtaining a contract - The Company’s contracts for service revenue have an original duration of one year or less. Therefore, the Company has elected to expense these costs as incurred. • Right to invoice - For the Company’s contracts in which it has the right to invoice the customer on the basis of actual work performed (i.e., output), the Company has elected to measure the satisfaction of performance obligation(s) on the basis of actual work performed, as the invoiced amount directly corresponds to the value transferred to the customer. • Sales taxes - The Company has, as an accounting policy election, decided to exclude from the measurement of the transaction price all sales taxes assessed by a governmental authority. M. Revenue Recognition (continued) • Significant financing component - The Company’s contracts do not allow for payment terms which exceed one year, and thus need not account for the effects of a significant financing component. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 9 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements and financial instruments | Fair Value Measurements and Financial Instruments Financial Accounting Standards Board Accounting Standard Codification 820, “Fair Value of Measurements and Disclosures (“Topic 820”)” defines fair value based on the price that would be received to sell an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principal or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Valuation Hierarchy --Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The hierarchy prioritizes the inputs into three broad levels: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 inputs are observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Our assets and liabilities measured at fair value on a recurring basis at September 29, 2018 were as follows: Fair Value Measurements at September 29, 2018 Using: Assets and Liabilities Recorded at Total Carrying Value at September 29, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Assets invested for self-insurance, classified as other assets, noncurrent $ 15,713 $ 15,713 $ — $ — Liabilities: Deferred compensation $ 2,404 $ — $ 2,404 $ — N. Fair Value Measurements and Financial Instruments (continued) Our assets and liabilities measured at fair value on a recurring basis at December 31, 2017 were as follows: Fair Value Measurements at December 31, 2017 Using: Assets and Liabilities Recorded at Total Carrying Value at December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Assets invested for self-insurance, classified as other assets, noncurrent $ 19,422 $ 19,422 $ — $ — Liabilities: Deferred compensation $ 2,146 $ — $ 2,146 $ — The assets invested for self-insurance are money market funds--classified as Level 1--based on quoted market prices of the identical underlying securities in active markets. The estimated fair value of the deferred compensation--classified as Level 2--is based on the value of the Company's common shares, determined by independent valuation. Fair Value of Financial Instruments --The fair values of our current financial assets and current liabilities, including cash, accounts receivable, accounts payable, and accrued expenses, among others, approximate their reported carrying values because of their short-term nature. Financial instruments classified as noncurrent liabilities and their carrying values and fair values were as follows: September 29, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Revolving credit facility, noncurrent $ 92,000 $ 92,000 $ 100,000 $ 100,000 Senior unsecured notes, noncurrent 56,000 55,375 12,000 12,389 Term loans, noncurrent 6,644 7,581 7,935 10,038 Total $ 154,644 $ 154,956 $ 119,935 $ 122,427 The carrying value of our revolving credit facility approximates fair value--classified as Level 2--as the interest rates on the amounts outstanding are variable. The fair value of our senior unsecured notes and term loans--classified as Level 2--is determined based on expected weighted-average interest rates with the same remaining maturities. Market Risk-- In the normal course of business, we are exposed to market risk related to changes in foreign currency exchange rates, changes in interest rates and changes in fuel prices. We do not hold or issue derivative financial instruments for trading or speculative purposes. In prior years, we have used derivative financial N. Fair Value Measurements and Financial Instruments (continued) instruments to manage risk, in part, associated with changes in interest rates and changes in fuel prices. Presently, we are not engaged in any hedging or derivative activities. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies [Text Block] | Commitments and Contingencies We are party to a number of lawsuits, threatened lawsuits and other claims arising out of the normal course of business. On a quarterly basis, we assess our liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that we will incur a loss and the amount of the loss can be reasonably estimated, we record a liability in our consolidated financial statements. These legal accruals may be increased or decreased to reflect any relevant developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, we do not accrue legal reserves, consistent with applicable accounting guidance. Based on information currently available to us, advice of counsel, and available insurance coverage, we believe that our established reserves are adequate and the liabilities arising from the legal proceedings will not have a material adverse effect on our consolidated financial condition. We note, however, that in light of the inherent uncertainty in legal proceedings there can be no assurance that the ultimate resolution of a matter will not exceed established reserves. As a result, the outcome of a particular matter or a combination of matters may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period. In November 2017, a suit was filed against Davey Tree, its subsidiary, Wolf Tree, Inc., a former Davey employee, two Wolf employees, and a former Wolf employee alleging various acts of negligence and seeking compensatory and punitive damages for wrongful death and assault and battery of the plaintiff’s husband, a Wolf Tree employee in Savannah, Georgia, who was killed in August 2017. The case has been set for mediation on December 3rd and 4th, 2018 and for trial on January 22, 2019. In July 2018, a survival action was filed by the deceased's estate against Davey Tree, its subsidiary, Wolf Tree, Inc., and four current and former employees in Savannah, Georgia, which arises out of the same allegations, seeks compensatory and punitive damages and also includes three RICO claims under Georgia law seeking compensatory damages, treble damages, and punitive damages. The 2018 case was removed to the United States District Court for the Southern District of Georgia, Savannah Division, on August 2, 2018. The Company filed a motion to dismiss the RICO claims. Plaintiffs filed a motion to remand the case to state court, which the Company has opposed. The Company has denied all liability and is vigorously defending the action. It also has retained separate counsel for three of the individual defendants, each of whom has denied all liability and also is vigorously defending the action. |
The Davey 401KSOP and Employee
The Davey 401KSOP and Employee Stock Ownership Plan (Notes) | 9 Months Ended |
Sep. 29, 2018 | |
The Davey 401KSOP and Employee Stock Ownership Plan [Abstract] | |
The Davey 401KSOP and Employee Stock Ownership Plan [Text Block] | The Davey 401KSOP and Employee Stock Ownership Plan On March 15, 1979, the Company consummated a plan, which transferred control of the Company to its employees. As a part of this plan, the Company initially sold 120,000 common shares (presently, 23,040,000 common shares adjusted for stock splits) to its Employee Stock Ownership Trust (“ESOT”) for $2,700 . The Employee Stock Ownership Plan (“ESOP”), in conjunction with the related ESOT, provided for the grant to certain employees of ownership rights in, but not possession of, the common shares held by the trustee of the ESOT. Annual allocations of shares have been made to individual accounts established for the benefit of the participants. Defined Contribution and Savings Plans-- Most employees are eligible to participate in The Davey 401KSOP and ESOP Plan. Effective January 1, 1997, the plan commenced operations and retained the existing ESOP participant accounts and incorporated a deferred savings plan (a “401(k) plan”) feature. Participants in the 401(k) plan are allowed to make before-tax contributions, within Internal Revenue Service established limits, through P. The Davey 401KSOP and Employee Stock Ownership Plan (continued) payroll deductions. Effective January 1, 2009 we match, in either cash or our common shares, 100% of the first one percent and 50% of the next three percent of each participant's before-tax contribution, limited to the first four percent of the employee’s compensation deferred each year. All nonbargaining domestic employees who attained age 21 and completed one year of service are eligible to participate. Our common shares are not listed or traded on an established public trading market, and market prices are, therefore, not available. Semiannually, an independent stock valuation firm determines the fair market value of our common shares based upon our performance and financial condition. The Davey 401KSOP and ESOP Plan includes a put option for shares of the Company’s common stock distributed from the plan. Shares are distributed from the Davey 401KSOP and ESOP Plan to former participants of the plan, their beneficiaries, donees or heirs (each, a “participant”). Since our common stock is not currently traded on an established securities market, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value for two 60 -day periods after distribution of the shares from the Davey 401KSOP and ESOP. The fair value of distributed shares subject to the put option totaled $5,332 and $3,843 as of September 29, 2018 and December 31, 2017 , respectively. The fair value of the shares held in the Davey 401KSOP and ESOP totaled $115,972 and $119,677 as of September 29, 2018 and December 31, 2017 , respectively. Due to the Company’s obligation under the put option, the distributed shares subject to the put option and the shares held in the Davey 401KSOP and ESOP (collectively referred to as 401KSOP and ESOP related shares) are recorded at fair value, classified as temporary equity in the mezzanine section of the consolidated balance sheets and totaled $121,304 and $123,520 as of September 29, 2018 and December 31, 2017 , respectively. Changes in the fair value of the 401KSOP and ESOP Plan related shares are reflected in retained earnings while net share activity associated with 401KSOP and ESOP Plan related shares are first reflected in additional paid-in capital and then retained earnings if additional paid-in capital is insufficient. |
Basis of Financial Statement _2
Basis of Financial Statement Preparation (Policies) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of financial statement preparation, policy [Policy Text Block] | The condensed consolidated financial statements present the financial position, results of operations and cash flows of The Davey Tree Expert Company and its subsidiaries. When we refer to “we,” “us,” “our,” “Davey,” or “Davey Tree”, we mean The Davey Tree Expert Company and its subsidiaries, unless otherwise expressly stated or the context indicates otherwise. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), as codified in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. The consolidated financial statements include all adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal, recurring nature. All intercompany accounts and transactions have been eliminated. Certain information and disclosures required by U.S. GAAP for complete financial statements have been omitted in accordance with the rules and regulations of the SEC. We suggest that these condensed consolidated financial statements be read in conjunction with the financial statements included in our annual report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Annual Report”). |
Use of estimates, policy [Policy Text Block] | Use of Estimates in Financial Statement Preparation --The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect reported amounts. Our consolidated financial statements include amounts that are based on management’s best estimates and judgments. Estimates are used for, but not limited to, accounts receivable valuation, depreciable lives of fixed assets, self-insurance reserves, income taxes and revenue recognition. Actual results could differ from those estimates. |
Income tax, policy [Policy Text Block] | Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate and, if our estimated annual tax rate changes, we make a cumulative adjustment. |
Earnings per share, policy [Policy Text Block] | We calculate our basic earnings per share by dividing net income or net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated in a similar manner, but include the effect of dilutive securities. To the extent these securities are antidilutive, they are excluded from the calculation of earnings per share. |
Segment reporting, policy [Policy Text Block] | Measurement of Segment Profit and Loss and Segment Assets -- We evaluate performance and allocate resources based primarily on operating income and also actively manage business unit operating assets. Segment information, including reconciling adjustments, is presented consistent with the basis described in our 2017 Annual Report. |
Accounts Receivable, Net and _2
Accounts Receivable, Net and Supplemental Balance-Sheet Information (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Accounts Receivable, Net and Supplemental Balance-Sheet Information [Abstract] [Abstract] | |
Accounts receivable, net [Table Text Block] | Accounts receivable, net, consisted of the following: Accounts receivable, net September 29, December 31, Accounts receivable $ 150,161 $ 143,244 Receivables under contractual arrangements 48,526 29,895 198,687 173,139 Less allowances for doubtful accounts 4,310 4,468 Accounts receivable, net $ 194,377 $ 168,671 |
Schedule of Other Current Assets [Table Text Block] | The following items comprise the amounts included in the balance sheets: Other current assets September 29, December 31, Refundable income taxes $ — $ 587 Prepaid expense 24,997 15,893 Other 842 784 Total $ 25,839 $ 17,264 |
Accrued expenses [Table Text Block] | Accrued expenses September 29, December 31, Employee compensation $ 22,867 $ 20,794 Accrued compensated absences 10,054 9,267 Self-insured medical claims 5,847 3,193 Income tax payable 2,660 3,443 Customer advances, deposits 439 1,672 Taxes, other than income 3,827 2,279 Other 2,138 2,168 Total $ 47,832 $ 42,816 |
Other current liabilities [Table Text Block] | Other current liabilities September 29, December 31, Note payable $ 100 $ 149 Current portion of: Long-term debt 25,991 16,817 Self-insurance reserves 23,825 23,782 Total $ 49,916 $ 40,748 |
Other Noncurrent Liabilities [Table Text Block] | Other noncurrent liabilities September 29, December 31, Pension and retirement plans $ 6,061 $ 14,759 Other 3,487 5,207 Total $ 9,548 $ 19,966 |
Business Combinations Business
Business Combinations Business Combinations (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the preliminary purchase price allocation of the estimated fair values of the assets acquired and liabilities assumed: Nine Months Ended September 29, September 30, Detail of acquisitions: Assets acquired: Cash $ — $ 326 Receivables 1,336 1,753 Operating supplies 23 — Prepaid expense 84 128 Equipment 4,019 1,904 Deposits and other 5 129 Intangibles 4,617 4,566 Goodwill 2,603 5,027 Liabilities assumed (2,134 ) (2,956 ) Debt issued for purchases of businesses (2,312 ) (3,099 ) Cash paid $ 8,241 $ 7,778 |
Identified Intangible Assets _2
Identified Intangible Assets and Goodwill, Net (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of identified intangible assets and goodwill, net [Table Text Block] | The carrying amounts of the identified intangible assets and goodwill acquired were as follows: September 29, 2018 December 31, 2017 Identified Intangible Assets and Goodwill, Net Carrying Amount Accumulated Amortization Carrying Amount Accumulated Amortization Amortized intangible assets: Customer lists/relationships $ 25,012 $ 17,860 $ 21,487 $ 16,846 Employment-related 8,080 6,853 7,333 6,624 Tradenames 6,806 5,345 5,978 5,134 Amortized intangible assets 39,898 $ 30,058 34,798 $ 28,604 Less accumulated amortization 30,058 28,604 Identified intangible assets, net 9,840 6,194 Unamortized intangible assets: Goodwill 37,762 35,477 $ 47,602 $ 41,671 |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amounts of goodwill, by segment, for the nine months ended September 29, 2018 follow: Balance at January 1, 2018 Acquisitions Translation and Other Adjustments Balance at September 29, 2018 Utility $ 3,424 $ 1,499 $ — $ 4,923 Residential and Commercial 32,053 1,104 (318 ) 32,839 Total $ 35,477 $ 2,603 $ (318 ) $ 37,762 |
Long-Term Debt and Commitment_2
Long-Term Debt and Commitments Related to Letters of Credit (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt [Table Text Block] | Our long-term debt consisted of the following: September 29, December 31, Revolving credit facility: Swing-line borrowings $ 12,000 $ — LIBOR borrowings 80,000 100,000 92,000 100,000 5.09% Senior unsecured notes 12,000 18,000 3.99% Senior unsecured notes 50,000 — Term loans 25,481 16,242 Capital leases 3,781 2,510 183,262 136,752 Less debt issuance costs 646 725 Less current portion 25,991 16,817 $ 156,625 $ 119,210 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense under all share-based payment plans [Table Text Block] | Stock-based compensation expense under all share-based payment plans -- our Employee Stock Purchase Plan, stock option plans, stock-settled stock appreciation rights and restricted stock units -- are included in the results of operations as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Compensation expense, all share-based payment plans $ 785 $ 847 $ 2,578 $ 3,295 |
Schedule of share-based compensation, stock-settled stock appreciation rights award activity [Table Text Block] | The following table summarizes our SSARs as of September 29, 2018 . Stock-Settled Stock Appreciation Rights Number Rights Weighted- Average Award Date Value Weighted- Life Unrecognized Cost Aggregate Value Unvested, January 1, 2018 448,180 $ 3.10 Granted 121,243 3.84 Forfeited — — Vested (150,120 ) 3.01 Unvested, September 29, 2018 419,303 $ 3.35 2.3 years $ 1,058 $ 8,260 |
Schedule of share-based compensation, restricted stock units award activity [Table Text Block] | The following table summarizes PRSUs and RSUs as of September 29, 2018 . Restricted Stock Units Number Units Weighted- Average Grant Date Value Weighted- Average Remaining Contractual Life Unrecognized Cost Aggregate Intrinsic Value Unvested, January 1, 2018 290,666 $ 14.41 Granted 44,926 18.55 Forfeited — — Vested (80,806 ) 12.71 Unvested, September 29, 2018 254,786 $ 15.67 2.2 years $ 1,996 $ 5,019 Employee PRSUs 216,134 $ 15.40 2.4 years $ 1,617 $ 4,258 Nonemployee Director RSUs 38,652 $ 17.17 1.6 years $ 379 $ 761 |
Schedule of share-based payment award, stock options, valuation assumptions [Table Text Block] | The fair values of stock-based awards granted were estimated at the dates of grant with the following weighted-average assumption. Nine Months Ended September 29, September 30, Volatility rate 10.1 % 10.3 % Risk-free interest rate 2.7 % 2.2 % Expected dividend yield .7 % .7 % Expected life of awards (years) 9.2 8.9 |
Schedule of share-based compensation, stock options activity [Table Text Block] | The following table summarizes activity under the stock option plans for the nine months ended September 29, 2018 . Stock Options Number Outstanding Weighted- Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, January 1, 2018 1,528,615 $ 13.05 Granted 143,250 19.10 Exercised (104,243 ) 10.24 Forfeited (49,000 ) 13.43 Outstanding, September 29, 2018 1,518,622 $ 13.80 6.0 years $ 8,960 Exercisable, September 29, 2018 942,172 $ 11.66 4.8 years $ 7,577 |
Net Periodic Benefit Expense _2
Net Periodic Benefit Expense - Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |
Schedule of defined benefit pension plans, components of pension expense [Table Text Block] | The results of operations included the following net periodic benefit expense (income) recognized related to our defined-benefit pension plans. Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Components of pension expense (income) Service costs--increase in benefit obligation earned $ 100 $ 132 $ 300 $ 397 Interest cost on projected benefit obligation 180 263 539 790 Expected return on plan assets (58 ) (169 ) (173 ) (508 ) Amortization of net actuarial loss 181 237 545 712 Amortization of prior service cost 16 17 48 48 Net pension expense of defined benefit pension plans $ 419 $ 480 $ 1,259 $ 1,439 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Schedule of other comprehensive income (loss) [Table Text Block] | The following summarizes the components of other comprehensive income (loss) accumulated in shareholders’ equity for the three and nine months ended September 29, 2018 and the three and nine months ended September 30, 2017 : Three Months Ended September 29, 2018 Foreign Currency Translation Adjustments Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at July 1, 2018 $ (4,884 ) $ (4,795 ) $ (9,679 ) Other comprehensive income (loss) before reclassifications Unrealized gains $ 517 $ — $ 517 Amounts reclassified from accumulated other comprehensive income (loss) — 197 197 Tax effect — (51 ) (51 ) Net of tax amount 517 146 663 Balance at September 29, 2018 $ (4,367 ) $ (4,649 ) $ (9,016 ) J. Accumulated Other Comprehensive Income (Loss) (continued) Three Months Ended September 30, 2017 Foreign Currency Translation Adjustments Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at July 2, 2017 $ (4,297 ) $ (6,348 ) $ (10,645 ) Other comprehensive income (loss) before reclassifications Unrealized gains $ 1,295 $ — $ 1,295 Amounts reclassified from accumulated other comprehensive income (loss) — 254 254 Tax effect — (97 ) (97 ) Net of tax amount 1,295 157 1,452 Balance at September 30, 2017 $ (3,002 ) $ (6,191 ) $ (9,193 ) Nine Months Ended September 29, 2018 Foreign Currency Translation Adjustments Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2018 $ (3,305 ) $ (5,088 ) $ (8,393 ) Other comprehensive income (loss) before reclassifications Unrealized losses $ (1,062 ) $ — $ (1,062 ) Amounts reclassified from accumulated other comprehensive income (loss) — 593 593 Tax effect — (154 ) (154 ) Net of tax amount (1,062 ) 439 (623 ) Balance at September 29, 2018 $ (4,367 ) $ (4,649 ) $ (9,016 ) Nine Months Ended September 30, 2017 Foreign Currency Translation Adjustments Defined Benefit Pension Plans Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2017 $ (5,500 ) $ (6,662 ) $ (12,162 ) Other comprehensive income (loss) before reclassifications Unrealized gains $ 2,498 $ — $ 2,498 Amounts reclassified from accumulated other comprehensive income (loss) — 760 760 Tax effect — (289 ) (289 ) Net of tax amount 2,498 471 2,969 Balance at September 30, 2017 $ (3,002 ) $ (6,191 ) $ (9,193 ) |
Per Share Amounts and Common _2
Per Share Amounts and Common Shares Outstanding (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Equity [Abstract] | |
Schedule of earnings per share, basic and diluted [Table Text Block] | The per share amounts were computed as follows: Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Income available to common shareholders: Net income $ 8,384 $ 10,237 $ 23,471 $ 20,573 Weighted-average shares: Basic: Outstanding 23,592 24,925 23,916 24,965 Partially-paid share subscriptions 176 195 527 586 Basic weighted-average shares 23,768 25,120 24,443 25,551 Diluted: Basic from above 23,768 25,120 24,443 25,551 Incremental shares from assumed: Exercise of stock subscription purchase rights 151 158 146 148 Exercise of stock options and awards 897 1,138 954 1,015 Diluted weighted-average shares 24,816 26,416 25,543 26,714 Net income per share: Basic $ .35 $ .41 $ .96 $ .81 Diluted $ .34 $ .39 $ .92 $ .77 |
Schedule of common and redeemable shares outstanding [Table Text Block] | A summary of the activity of the common and redeemable shares outstanding for the nine months ended September 29, 2018 follows: Common Shares Net of Treasury Shares Redeemable Shares Total Shares outstanding at January 1, 2018 17,753,832 6,467,027 24,220,859 Shares purchased (1,053,421 ) (560,220 ) (1,613,641 ) Shares sold 369,296 250,767 620,063 Stock subscription offering -- cash purchases 80,487 — 80,487 Options and awards exercised 140,663 — 140,663 Shares outstanding at September 29, 2018 17,290,857 6,157,574 23,448,431 |
Operations by Business Segment
Operations by Business Segment (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment [Table Text Block] | Segment information reconciled to consolidated external reporting information follows: Utility Residential and Commercial All Other Reconciling Adjustments Consolidated Three Months Ended September 29, 2018 Revenues $ 135,768 $ 130,408 $ (858 ) $ — $ 265,318 Income (loss) from operations 6,198 13,360 (3,615 ) (1,358 ) (a) 14,585 Interest expense (1,811 ) (1,811 ) Interest income 80 80 Other income (expense), net (1,322 ) (1,322 ) Income before income taxes $ 11,532 Segment assets, total $ 222,194 $ 214,374 $ — $ 85,087 (b) $ 521,655 Three Months Ended September 30, 2017 Revenues $ 124,540 $ 124,678 $ 370 $ — $ 249,588 Income (loss) from operations 6,854 14,616 (490 ) (1,931 ) (a) 19,049 Interest expense (1,278 ) (1,278 ) Interest income 67 67 Other income (expense), net (1,764 ) (1,764 ) Income before income taxes $ 16,074 Segment assets, total $ 180,031 $ 206,946 $ — $ 92,632 (b) $ 479,609 Nine Months Ended September 29, 2018 Revenues $ 382,951 $ 361,218 $ 449 $ — $ 744,618 Income (loss) from operations 14,277 37,089 (10,171 ) (2,476 ) (a) 38,719 Interest expense (4,966 ) (4,966 ) Interest income 259 259 Other income (expense), net (4,036 ) (4,036 ) Income before income taxes $ 29,976 Segment assets, total $ 222,194 $ 214,374 $ — $ 85,087 (b) $ 521,655 Nine Months Ended September 30, 2017 Revenues $ 349,921 $ 335,564 $ 1,953 $ — $ 687,438 Income (loss) from operations 13,782 34,871 (3,683 ) (4,257 ) (a) 40,713 Interest expense (3,607 ) (3,607 ) Interest income 210 210 Other income (expense), net (4,242 ) (4,242 ) Income before income taxes $ 33,074 Segment assets, total $ 180,031 $ 206,946 $ — $ 92,632 (b) $ 479,609 Reconciling adjustments from segment reporting to consolidated external financial reporting include unallocated corporate items: (a) Reclassification of depreciation expense and allocation of corporate expenses. (b) Corporate assets include cash, prepaid expenses, corporate facilities, enterprise-wide information systems and other nonoperating assets. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables disaggregate our revenue for the three and nine months ended September 29, 2018 by major sources: Three Months Ended September 29, 2018 Utility Residential and Commercial All Other Consolidated Type of service: Tree and plant care $ 99,766 $ 79,709 $ (1,542 ) $ 177,933 Grounds maintenance — 26,024 — 26,024 Storm damage services 1,894 1,082 — 2,976 Consulting and other 34,108 23,593 684 58,385 Total revenues $ 135,768 $ 130,408 $ (858 ) $ 265,318 Geography: United States $ 125,302 $ 120,105 $ (858 ) $ 244,549 Canada 10,466 10,303 — 20,769 Total revenues $ 135,768 $ 130,408 $ (858 ) $ 265,318 M. Revenue Recognition (continued) Nine Months Ended September 29, 2018 Utility Residential and Commercial All Other Consolidated Type of service: Tree and plant care $ 283,200 $ 222,646 $ (1,553 ) $ 504,293 Grounds maintenance — 86,612 — 86,612 Storm damage services 5,729 2,892 — 8,621 Consulting and other 94,022 49,068 2,002 145,092 Total revenues $ 382,951 $ 361,218 $ 449 $ 744,618 Geography: United States $ 354,416 $ 332,488 $ 449 $ 687,353 Canada 28,535 28,730 — 57,265 Total revenues $ 382,951 $ 361,218 $ 449 $ 744,618 |
Contract with Customer, Asset and Liability [Table Text Block] | Net contract liabilities consisted of the following: September 29, December 31, Contract liabilities - current $ 3,121 $ 2,072 Contract liabilities - noncurrent 2,139 2,020 Net contract liabilities $ 5,260 $ 4,092 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis [Table Text Block] | Our assets and liabilities measured at fair value on a recurring basis at September 29, 2018 were as follows: Fair Value Measurements at September 29, 2018 Using: Assets and Liabilities Recorded at Total Carrying Value at September 29, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Assets invested for self-insurance, classified as other assets, noncurrent $ 15,713 $ 15,713 $ — $ — Liabilities: Deferred compensation $ 2,404 $ — $ 2,404 $ — N. Fair Value Measurements and Financial Instruments (continued) Our assets and liabilities measured at fair value on a recurring basis at December 31, 2017 were as follows: Fair Value Measurements at December 31, 2017 Using: Assets and Liabilities Recorded at Total Carrying Value at December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Assets invested for self-insurance, classified as other assets, noncurrent $ 19,422 $ 19,422 $ — $ — Liabilities: Deferred compensation $ 2,146 $ — $ 2,146 $ — |
Financial instruments recorded at historical carrying value [Table Text Block] | Financial instruments classified as noncurrent liabilities and their carrying values and fair values were as follows: September 29, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Revolving credit facility, noncurrent $ 92,000 $ 92,000 $ 100,000 $ 100,000 Senior unsecured notes, noncurrent 56,000 55,375 12,000 12,389 Term loans, noncurrent 6,644 7,581 7,935 10,038 Total $ 154,644 $ 154,956 $ 119,935 $ 122,427 |
Basis of Financial Statement _3
Basis of Financial Statement Preparation Recent accounting guidance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Accounting Standards Update 2017-07 [Member] | ||
Pension expense | $ 348 | $ 1,042 |
Accounts Receivable, Net and _3
Accounts Receivable, Net and Supplemental Balance-Sheet Information (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Accounts receivable, net | ||
Accounts receivable | $ 150,161 | $ 143,244 |
Receivables under contractual arrangements | 48,526 | 29,895 |
Accounts receivable, gross | 198,687 | 173,139 |
Less allowances for doubtful accounts | 4,310 | 4,468 |
Accounts receivable, net | 194,377 | 168,671 |
Other current assets | ||
Refundable income taxes | 0 | 587 |
Prepaid expense | 24,997 | 15,893 |
Other | 842 | 784 |
Total | 25,839 | 17,264 |
Accrued expenses | ||
Employee compensation | 22,867 | 20,794 |
Accrued compensated absences | 10,054 | 9,267 |
Self-insured medical claims | 5,847 | 3,193 |
Income tax payable | 2,660 | 3,443 |
Customer advances, deposits | 439 | 1,672 |
Taxes, other than income | 3,827 | 2,279 |
Other | 2,138 | 2,168 |
Total | 47,832 | 42,816 |
Other current liabilities | ||
Note payable | 100 | 149 |
Current portion of long-term debt | 25,991 | 16,817 |
Current portion of self-insurance accruals | 23,825 | 23,782 |
Total | 49,916 | 40,748 |
Other noncurrent liabilities | ||
Pension and retirement plans | 6,061 | 14,759 |
Other | 3,487 | 5,207 |
Total | $ 9,548 | $ 19,966 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Investment in businesses | $ 10,553 | $ 10,877 |
Liabilities assumed | 2,134 | 2,956 |
Debt issued for purchases of businesses | 2,312 | 3,099 |
Cash paid | 8,241 | 7,778 |
Cash | 0 | 326 |
Receivables | 1,336 | 1,753 |
Operating supplies | 23 | 0 |
Prepaid expense | 84 | 128 |
Equipment | 4,019 | 1,904 |
Deposits and other | 5 | 129 |
Intangibles | 4,617 | 4,566 |
Goodwill | $ 2,603 | $ 5,027 |
Identified Intangible Assets _3
Identified Intangible Assets and Goodwill, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, gross | $ 39,898 | $ 34,798 |
Accumulated amortization | 30,058 | 28,604 |
Identified intangible assets, net | 9,840 | 6,194 |
Goodwill | 37,762 | 35,477 |
Identified intangible assets and goodwill, net | 47,602 | 41,671 |
Goodwill, Purchase Accounting Adjustments | 298 | |
Amortization of Intangible Assets | 52 | |
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | 70 | |
Customer lists/relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, gross | 25,012 | 21,487 |
Accumulated amortization | 17,860 | 16,846 |
Employment-related [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, gross | 8,080 | 7,333 |
Accumulated amortization | 6,853 | 6,624 |
Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Identified intangible assets, gross | 6,806 | 5,978 |
Accumulated amortization | $ 5,345 | $ 5,134 |
Identified Intangible Assets _4
Identified Intangible Assets and Goodwill, Net Schedule of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Goodwill [Line Items] | ||
Goodwill | $ 35,477 | |
Goodwill, acquisitions | 2,603 | $ 5,027 |
Goodwill, translation and other adjustments | (318) | |
Goodwill | 37,762 | |
Utility [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 3,424 | |
Goodwill, acquisitions | 1,499 | |
Goodwill, translation and other adjustments | 0 | |
Goodwill | 4,923 | |
Residential commercial [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 32,053 | |
Goodwill, acquisitions | 1,104 | |
Goodwill, translation and other adjustments | (318) | |
Goodwill | $ 32,839 |
Long-Term Debt and Commitment_3
Long-Term Debt and Commitments Related to Letters of Credit Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Revolving credit facility, noncurrent | $ 92,000 | $ 100,000 |
Term loans | 25,481 | 16,242 |
Capital leases | 3,781 | 2,510 |
Long-term debt | 183,262 | 136,752 |
Less debt issuance costs | 646 | 725 |
Less current portion | 25,991 | 16,817 |
Long-term debt, excluding current maturities | 156,625 | 119,210 |
Swing-line borrowings [Member] | ||
Revolving credit facility, noncurrent | 12,000 | 0 |
London Interbank Offered Rate (LIBOR) [Member] | ||
Revolving credit facility, noncurrent | 80,000 | 100,000 |
5.09% Senior unsecured notes [Member] | ||
Senior unsecured notes | 12,000 | 18,000 |
3.99% Senior unsecured notes [Member] | ||
Senior unsecured notes | $ 50,000 | $ 0 |
Long-Term Debt and Commitment_4
Long-Term Debt and Commitments Related to Letters of Credit (Narrative) (Details) | 9 Months Ended | ||
Sep. 29, 2018USD ($) | Dec. 31, 2017USD ($) | May 07, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Revolving credit facility, current borrowing capacity | $ 250,000,000 | ||
Revolving credit facility, maximum borrowing capacity | 325,000,000 | ||
Unused commitments under credit facility | 155,087,000 | ||
Revolving credit facility borrowings | $ 92,000,000 | $ 100,000,000 | |
Number of principal payments | 5 | ||
Anniversary when principal payments begin | 6 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.10% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.225% | ||
Swing-line borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, current borrowing capacity | $ 25,000,000 | ||
Revolving credit facility borrowings | $ 12,000,000 | 0 | |
Revolving credit facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest coverage ratio | 3 | ||
Revolving credit facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Ratio of Indebtedness to Net Capital | 3 | ||
5.09% Senior unsecured notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.09% | ||
Debt Instrument, Face Amount | $ 30,000,000 | ||
3.99% Senior unsecured notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.99% | ||
Unsecured debt maximum borrowing capacity allowed by credit facility | $ 75,000,000 | ||
Unsecured debt additional shelf note capacity | 50,000,000 | ||
Debt Instrument, Face Amount | 50,000,000 | ||
Unsecured debt additional shelf note capacity allowed by credit facility | $ 25,000,000 | ||
Accounts receivable securitization [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.90% | ||
Unused commitment fee threshold percent | 0.50 | ||
Debt instrument variable rate base rate calculation, default rate | 2.00% | ||
Accounts receivable securitization [Member] | Base Rate, Federal Funds [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings interest rate margin adjustment, range | 0.50% | ||
Line of credit [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility borrowings | $ 94,913,000 | ||
Line of credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings interest rate margin adjustment, range | 1.50% | ||
Line of credit [Member] | Base Rate, Federal Funds [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings interest rate margin adjustment, range | 0.50% | ||
Line of credit [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings interest rate margin adjustment, range | 0.875% | ||
Line of credit [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings interest rate margin adjustment, range | 1.50% | ||
Letter of credit [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit issued | $ 72,355,000 | 63,242,000 | |
Letter of credit [Member] | Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit issued | 2,913,000 | 3,088,000 | |
Letter of credit [Member] | Accounts receivable securitization [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, maximum borrowing capacity | $ 100,000,000 | ||
Letters of credit issued | $ 67,438,000 | 58,150,000 | |
Debt Instrument, Term | 1 year | ||
Letter of credit [Member] | Accounts receivable securitization [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit, unused capacity, commitment fee percentage | 0.0035 | ||
Letter of credit [Member] | Accounts receivable securitization [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit, unused capacity, commitment fee percentage | 0.0045 | ||
Letter of credit [Member] | Line of credit [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit issued | $ 2,004,000 | $ 2,004,000 | |
Letter of credit [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, maximum borrowing capacity | $ 100,000,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, percentage of outstanding stock maximum | 5.00% | |||
Share-based compensation arrangement by share-based payment award, percentage of outstanding and available for grant, maximum | 10.00% | |||
Compensation expense, share-based payment plans | $ 785 | $ 847 | $ 2,578 | $ 3,295 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Volatility rate | 10.10% | 10.30% | ||
Risk-free interest rate | 2.70% | 2.20% | ||
Expected dividend yield | 0.70% | 0.70% | ||
Expected life of awards (years) | 9 years 2 months 12 days | 8 years 10 months 24 days | ||
Stock option plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense, share-based payment plans | $ 506 | $ 532 | ||
Stock options awarded, term (years) | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, beginning balance | 1,528,615 | |||
Granted | 143,250 | |||
Exercised | (104,243) | |||
Forfeited | (49,000) | |||
Outstanding, ending balance | 1,518,622 | 1,518,622 | ||
Exercisable, ending balance | 942,172 | 942,172 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Outstanding, weighted average exercise price, beginning balance | $ 13.05 | |||
Granted, weighted average exercise price | 19.1 | |||
Exercised, weighted average exercise price | 10.24 | |||
Forfeited, weighted average exercise price | 13.43 | |||
Outstanding, weighted average exercise price, ending balance | $ 13.80 | 13.80 | ||
Exercisable, weighted average exercise price, ending balance | $ 11.66 | $ 11.66 | ||
Outstanding, weighted average remaining contractual life (years) | 6 years | |||
Exercisable, weighted average remaining contractual life (years) | 4 years 9 months 18 days | |||
Outstanding, aggregate intrinsic value | $ 8,960 | $ 8,960 | ||
Exercisable, aggregate intrinsic value | 7,577 | 7,577 | ||
Outstanding, unrecognized compensation cost | $ 1,558 | $ 1,558 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 3 months 18 days | |||
Stock-settled stock appreciation rights (SSARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense, share-based payment plans | $ 406 | 931 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Unvested, beginning balance | 448,180 | |||
Granted | 121,243 | |||
Forfeited | 0 | |||
Vested | (150,120) | |||
Unvested, ending balance | 419,303 | 419,303 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Unvested, weighted average award date value, beginning balance | $ 3.10 | |||
Granted, weighted average award date value | 3.84 | |||
Forfeited, weighted average award date value | 0 | |||
Vested, weighted average award date value | 3.01 | |||
Unvested, weighted average award date value, ending balance | $ 3.35 | $ 3.35 | ||
Weighted average remaining contractual life (years) | 2 years 3 months 18 days | |||
Unrecognized compensation cost | $ 1,058 | $ 1,058 | ||
Aggregate intrinsic value | $ 8,260 | 8,260 | ||
Restricted stock units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense, share-based payment plans | $ 901 | 1,162 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Unvested, beginning balance | 290,666 | |||
Granted | 44,926 | |||
Forfeited | 0 | |||
Vested | (80,806) | |||
Unvested, ending balance | 254,786 | 254,786 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Unvested, weighted average award date value, beginning balance | $ 14.41 | |||
Granted, weighted average award date value | 18.55 | |||
Forfeited, weighted average award date value | 0 | |||
Vested, weighted average award date value | 12.71 | |||
Unvested, weighted average award date value, ending balance | $ 15.67 | $ 15.67 | ||
Weighted average remaining contractual life (years) | 2 years 2 months 12 days | |||
Unrecognized compensation cost | $ 1,996 | $ 1,996 | ||
Aggregate intrinsic value | $ 5,019 | $ 5,019 | ||
Employee PRSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Granted | 31,738 | |||
Unvested, ending balance | 216,134 | 216,134 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Unvested, weighted average award date value, ending balance | $ 15.40 | $ 15.40 | ||
Weighted average remaining contractual life (years) | 2 years 4 months 24 days | |||
Unrecognized compensation cost | $ 1,617 | $ 1,617 | ||
Aggregate intrinsic value | $ 4,258 | $ 4,258 | ||
Nonemployee Director RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Granted | 13,188 | |||
Unvested, ending balance | 38,652 | 38,652 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Unvested, weighted average award date value, ending balance | $ 17.17 | $ 17.17 | ||
Weighted average remaining contractual life (years) | 1 year 7 months 6 days | |||
Unrecognized compensation cost | $ 379 | $ 379 | ||
Aggregate intrinsic value | $ 761 | 761 | ||
The Davey Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense, share-based payment plans | $ 765 | $ 670 | ||
Employee stock purchase plan, service period | 1 year | |||
Employee stock purchase plan, percentage of market price, purchase date | 85.00% | |||
Employee stock purchase plan, discount from market price, purchase date | 15.00% |
Net Periodic Benefit Expense _3
Net Periodic Benefit Expense - Defined Benefit Pension Plans (Details) - Pension plans, defined benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service costs--increase in benefit obligation earned | $ 100 | $ 132 | $ 300 | $ 397 |
Interest cost on projected benefit obligation | 180 | 263 | 539 | 790 |
Expected return on plan assets | (58) | (169) | (173) | (508) |
Amortization of net actuarial loss | 181 | 237 | 545 | 712 |
Amortization of prior service cost | 16 | 17 | 48 | 48 |
Net pension expense of defined benefit pension plans | $ 419 | $ 480 | $ 1,259 | $ 1,439 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 27.30% | 36.30% | 21.70% | 37.80% | |
Income tax liability, transition toll tax | $ 6,100 | $ 6,100 | |||
Unrecognized tax benefits | 1,059 | 1,059 | $ 2,581 | ||
Unrecognized tax benefits that would impact effective tax rate | 585 | 585 | 1,948 | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 24 | 24 | $ 128 | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 1,547 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (9,679) | $ (10,645) | $ (8,393) | $ (12,162) |
Unrealized gains (losses) | 517 | 1,295 | (1,062) | 2,498 |
Amounts reclassified from accumulated other comprehensive income (loss) | 197 | 254 | 593 | 760 |
Tax effect | (51) | (97) | (154) | (289) |
Net of tax amount | 663 | 1,452 | (623) | 2,969 |
Ending balance | (9,016) | (9,193) | (9,016) | (9,193) |
Foreign currency translation adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (4,884) | (4,297) | (3,305) | (5,500) |
Unrealized gains (losses) | 517 | 1,295 | (1,062) | 2,498 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 | 0 |
Net of tax amount | 517 | 1,295 | (1,062) | 2,498 |
Ending balance | (4,367) | (3,002) | (4,367) | (3,002) |
Defined benefit pension plans [member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (4,795) | (6,348) | (5,088) | (6,662) |
Unrealized gains (losses) | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 197 | 254 | 593 | 760 |
Tax effect | (51) | (97) | (154) | (289) |
Net of tax amount | 146 | 157 | 439 | 471 |
Ending balance | $ (4,649) | $ (6,191) | $ (4,649) | $ (6,191) |
Per Share Amounts and Common _3
Per Share Amounts and Common Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Net income | $ 8,384 | $ 10,237 | $ 23,471 | $ 20,573 |
Weighted-average shares outstanding, basic | 23,592,000 | 24,925,000 | 23,916,000 | 24,965,000 |
Weighted-average shares, partially-paid share subscriptions | 176,000 | 195,000 | 527,000 | 586,000 |
Basic weighted average shares | 23,768,000 | 25,120,000 | 24,443,000 | 25,551,000 |
Incremental shares from assumed exercise of stock subscription purchase rights | 151,000 | 158,000 | 146,000 | 148,000 |
Incremental shares from assumed exercise of stock options and awards | 897,000 | 1,138,000 | 954,000 | 1,015,000 |
Diluted weighted-average shares | 24,816,000 | 26,416,000 | 25,543,000 | 26,714,000 |
Net income per share basic | $ 0.35 | $ 0.41 | $ 0.96 | $ 0.81 |
Net income per share diluted | $ 0.34 | $ 0.39 | $ 0.92 | $ 0.77 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares outstanding at January 1, 2018 | 24,220,859 | |||
Shares purchased | (1,613,641) | |||
Shares sold | 620,063 | |||
Stock subscription offering -- cash purchases | 80,487 | |||
Options and awards exercised | 140,663 | |||
Shares outstanding at September 29, 2018 | 23,448,431 | 23,448,431 | ||
Common stock, shares subscribed but unissued | 702,984 | 702,984 | ||
Purchase rights, outstanding | 276,074 | 276,074 | ||
Common shares, net of treasury shares [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares outstanding at January 1, 2018 | 17,753,832 | |||
Shares purchased | (1,053,421) | |||
Shares sold | 369,296 | |||
Stock subscription offering -- cash purchases | 80,487 | |||
Options and awards exercised | 140,663 | |||
Shares outstanding at September 29, 2018 | 17,290,857 | 17,290,857 | ||
Redeemable shares [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares outstanding at January 1, 2018 | 6,467,027 | |||
Shares purchased | (560,220) | |||
Shares sold | 250,767 | |||
Stock subscription offering -- cash purchases | 0 | |||
Options and awards exercised | 0 | |||
Shares outstanding at September 29, 2018 | 6,157,574 | 6,157,574 | ||
Stock option plans [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Employee options exercisable | 942,172 | 942,172 |
Per Share Amounts and Common _4
Per Share Amounts and Common Shares Outstanding Stock subscription (Details) | 9 Months Ended |
Sep. 29, 2018USD ($)$ / sharesshares | |
Equity [Abstract] | |
Stock subscription offering, subscription price | $ / shares | $ 9.85 |
Stock subscription offering, number of shares subscribed | shares | 1,275,428 |
stock subscription offering, value of shares subscribed | $ | $ 12,563,000 |
Stock subscription offering, minimum financed amount | $ | $ 5,000 |
Stock subscription offering, down payment | 10.00% |
Stock subscription offering, term (in years) | 7 years |
Stock subscription offering, interest rate | 2.00% |
Stock subscription offering, minimum amount to receive right | $ | $ 5,000 |
Stock subscription offering, number of shares purchased to receive one right | shares | 3 |
Stock subscription offering, number of rights issued | shares | 423,600 |
Stock subscription offering, portion exercisable per year | 14.29% |
Stock subscription offering, right expiration term (in years) | 7 years |
Operations by Business Segmen_2
Operations by Business Segment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | 2 | |||||
Revenues | $ 265,318 | $ 249,588 | $ 744,618 | $ 687,438 | ||
Income (loss) from operations | 14,585 | 19,049 | 38,719 | 40,713 | ||
Interest expense | (1,811) | (1,278) | (4,966) | (3,607) | ||
Interest income | 80 | 67 | 259 | 210 | ||
Other income (expense), net | (1,322) | (1,764) | (4,036) | (4,242) | ||
Income before income taxes | 11,532 | 16,074 | 29,976 | 33,074 | ||
Segment assets, total | 521,655 | 479,609 | 521,655 | 479,609 | $ 473,135 | |
Utility [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 135,768 | 124,540 | 382,951 | 349,921 | ||
Income (loss) from operations | 6,198 | 6,854 | 14,277 | 13,782 | ||
Segment assets, total | 222,194 | 180,031 | 222,194 | 180,031 | ||
Residential commercial [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 130,408 | 124,678 | 361,218 | 335,564 | ||
Income (loss) from operations | 13,360 | 14,616 | 37,089 | 34,871 | ||
Segment assets, total | 214,374 | 206,946 | 214,374 | 206,946 | ||
All other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (858) | 370 | 449 | 1,953 | ||
Income (loss) from operations | (3,615) | (490) | (10,171) | (3,683) | ||
Segment assets, total | 0 | 0 | 0 | 0 | ||
Reconciling adjustments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Income (loss) from operations | [1] | (1,358) | (1,931) | (2,476) | (4,257) | |
Interest expense | (1,811) | (1,278) | (4,966) | (3,607) | ||
Interest income | 80 | 67 | 259 | 210 | ||
Other income (expense), net | (1,322) | (1,764) | (4,036) | (4,242) | ||
Segment assets, total | [2] | $ 85,087 | $ 92,632 | $ 85,087 | $ 92,632 | |
[1] | (a)Reclassification of depreciation expense and allocation of corporate expenses | |||||
[2] | (b)Corporate assets include cash, prepaid expenses, corporate facilities, enterprise-wide information systems and other nonoperating assets. |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 29, 2018 | Sep. 29, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 265,318 | $ 744,618 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 244,549 | 687,353 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 20,769 | 57,265 |
Tree and plant care [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 177,933 | 504,293 |
Grounds maintenance [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 26,024 | 86,612 |
Storm damage services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 2,976 | 8,621 |
Consulting and other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 58,385 | 145,092 |
Utility [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 135,768 | 382,951 |
Utility [Member] | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 125,302 | 354,416 |
Utility [Member] | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 10,466 | 28,535 |
Utility [Member] | Tree and plant care [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 99,766 | 283,200 |
Utility [Member] | Grounds maintenance [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
Utility [Member] | Storm damage services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,894 | 5,729 |
Utility [Member] | Consulting and other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 34,108 | 94,022 |
Residential commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 130,408 | 361,218 |
Residential commercial [Member] | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 120,105 | 332,488 |
Residential commercial [Member] | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 10,303 | 28,730 |
Residential commercial [Member] | Tree and plant care [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 79,709 | 222,646 |
Residential commercial [Member] | Grounds maintenance [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 26,024 | 86,612 |
Residential commercial [Member] | Storm damage services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,082 | 2,892 |
Residential commercial [Member] | Consulting and other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 23,593 | 49,068 |
All other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | (858) | 449 |
All other [Member] | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | (858) | 449 |
All other [Member] | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
All other [Member] | Tree and plant care [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | (1,542) | (1,553) |
All other [Member] | Grounds maintenance [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
All other [Member] | Storm damage services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 0 |
All other [Member] | Consulting and other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 684 | $ 2,002 |
Revenue Recognition Contract wi
Revenue Recognition Contract with customer, asset and liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 29, 2018 | Sep. 29, 2018 | Dec. 31, 2017 | |
Revenue Recognition [Abstract] | |||
Liability recognized in revenue | $ 149 | $ 1,371 | |
Contract liabilities - current | 3,121 | 3,121 | $ 2,072 |
Contract liabilities - noncurrent | 2,139 | 2,139 | 2,020 |
Net contract liabilities | $ 5,260 | $ 5,260 | $ 4,092 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments (Details) - Fair value, measurements, recurring [Member] - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Quoted prices in active markets (Level 1) [Member] | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Assets invested for self-insurance, classified as other assets, noncurrent | $ 15,713 | $ 19,422 |
Deferred compensation | 0 | 0 |
Significant other observable inputs (Level 2) [Member] | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Assets invested for self-insurance, classified as other assets, noncurrent | 0 | 0 |
Deferred compensation | 2,404 | 2,146 |
Significant unobservable inputs (Level 3) [Member] | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Assets invested for self-insurance, classified as other assets, noncurrent | 0 | 0 |
Deferred compensation | 0 | 0 |
Total carrying value [Member] | ||
Fair value, assets and liabilities measured on recurring and nonrecurring basis [Line Items] | ||
Assets invested for self-insurance, classified as other assets, noncurrent | 15,713 | 19,422 |
Deferred compensation | $ 2,404 | $ 2,146 |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments Fair value of financial instruments (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 31, 2017 |
Liabilities, fair value disclosure [Abstract] | ||
Revolving credit facility, noncurrent | $ 92,000 | $ 100,000 |
Carrying value [Member] | ||
Liabilities, fair value disclosure [Abstract] | ||
Revolving credit facility, noncurrent | 92,000 | 100,000 |
Senior unsecured notes, noncurrent | 56,000 | 12,000 |
Term loans, noncurrent | 6,644 | 7,935 |
Total | 154,644 | 119,935 |
Fair value [Member] | ||
Liabilities, fair value disclosure [Abstract] | ||
Revolving credit facility, noncurrent | 92,000 | 100,000 |
Senior unsecured notes, noncurrent | 55,375 | 12,389 |
Term loans, noncurrent | 7,581 | 10,038 |
Total | $ 154,956 | $ 122,427 |
Commitments and contingencies D
Commitments and contingencies Details (Details) | 9 Months Ended |
Sep. 29, 2018 | |
Loss contingency, number of claims alleged | 3 |
Former Davey employee defendants [Member] | |
Loss contingency, number of defendants | 1 |
Wolf employee defendants [Member] | |
Loss contingency, number of defendants | 2 |
Former Wolf employee defendants [Member] | |
Loss contingency, number of defendants | 1 |
Employee and former employee defendants [Member] | |
Loss contingency, number of defendants | 4 |
Defendants for which Davey has retained separate counsel [Member] | |
Loss contingency, number of defendants | 3 |
The Davey 401KSOP and Employe_2
The Davey 401KSOP and Employee Stock Ownership Plan (Details) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018USD ($)shares | Dec. 31, 2017USD ($) | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Employee Stock Ownership Plan (ESOP), Initial Shares in ESOP | shares | 120,000 | |
Employee Stock Ownership Plan (ESOP), Shares Adjusted for Stock Split | shares | 23,040,000 | |
Employee Stock Ownership Plan (ESOP), Initial Value in ESOP | $ 2,700 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | |
Defined Contribution Plan, Eligible Age | 21 | |
Defined Contribution Plan, Service Requirement for Eligibility | 1 year | |
Number of put option periods | 2 | |
Duration of put option periods | 60 days | |
Employee Stock Ownership Plan (ESOP), Fair Value of Shares Subject to Repurchase Obligation | $ 5,332 | $ 3,843 |
Company shares held in 401KSOP shares, fair value | 115,972 | 119,677 |
Redeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP); 6,158 and 6,467 shares at redemption value as of September 29, 2018 and December 31, 2017 | $ 121,304 | $ 123,520 |
Defined Contribution Plan, Tier 1 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% | |
Defined Contribution Plan, Tier 2 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | |
Maximum [Member] | Defined Contribution Plan, Tier 1 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 1.00% | |
Maximum [Member] | Defined Contribution Plan, Tier 2 [Member] | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% |