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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 27, 2019	Mar. 05, 2020	Jun. 28, 2019
Document and Entity Information
Document Type	10-K
Document Period End Date	Dec. 27, 2019
Entity Registrant Name	WILLDAN GROUP, INC.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Public Float			$ 393.6
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,545,411
Entity Central Index Key	0001370450
Current Fiscal Year End Date	--12-27
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018
Current assets:
Cash and cash equivalents	$ 5,452	$ 15,259
Accounts receivable, net of allowance for doubtful accounts of $1,147 and $442 at December 27, 2019 and December 28, 2018, respectively	57,504	61,346
Contract assets	101,418	51,851
Other receivables	4,845	1,893
Prepaid expenses and other current assets	6,254	5,745
Total current assets	175,473	136,094
Equipment and leasehold improvements, net	12,051	7,998
Goodwill	127,647	97,748
Right-of-use assets	22,297
Other intangible assets, net	76,837	44,364
Other assets	16,296	2,386
Deferred income taxes, net	9,312	12,321
Total assets	439,913	300,911
Current liabilities:
Accounts payable	34,000	36,829
Accrued liabilities	67,615	37,401
Contingent consideration payable	5,155	3,113
Contract liabilities	5,563	5,075
Notes payable	13,720	8,572
Finance lease obligations	375	320
Lease liability	5,550
Total current liabilities	131,978	91,310
Contingent consideration payable	4,891	1,616
Notes payable	116,631	62,214
Finance lease obligations, less current portion	191	224
Lease liability, less current portion	18,411
Deferred lease obligations		724
Other noncurrent liabilities	533	534
Total liabilities	272,635	156,622
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 10,000 shares authorized, no shares issued and outstanding
Common stock, $0.01 par value, 40,000 shares authorized; 11,497 and 10,968 shares issued and outstanding at December 27, 2019 and December 28, 2018, respectively	115	110
Additional paid-in capital	132,547	114,008
Accumulated other comprehensive loss	(396)
Retained earnings	35,012	30,171
Total stockholders’ equity	167,278	144,289
Total liabilities and stockholders’ equity	$ 439,913	$ 300,911

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,147	$ 442
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	11,497,000	10,968,000
Common stock, shares outstanding	11,497,000	10,968,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
CONSOLIDATED STATEMENTS OF OPERATIONS
Contract revenue	$ 443,099	$ 272,252	$ 273,352
Direct costs of contract revenue (inclusive of directly related depreciation and amortization):
Salaries and wages	64,485	46,588	44,743
Subcontractor services and other direct costs	243,641	132,693	151,919
Total direct costs of contract revenue	308,126	179,281	196,662
General and administrative expenses:
Salaries and wages, payroll taxes and employee benefits	66,303	45,248	36,534
Facilities and facility related	8,568	5,600	4,624
Stock-based compensation	12,112	6,262	2,774
Depreciation and amortization	15,027	6,060	3,949
Other	23,600	17,030	15,105
Total general and administrative expenses	125,610	80,200	62,986
Income from operations	9,363	12,771	13,704
Other income (expense):
Interest expense, net	(4,900)	(700)	(111)
Other, net	193	90	98
Total other expense, net	(4,707)	(610)	(13)
Income before income taxes	4,656	12,161	13,691
Income tax (benefit) expense	(185)	2,131	1,562
Net income	4,841	10,030	12,129
Other comprehensive income:
Net unrealized loss on derivative contracts	(396)
Comprehensive income	$ 4,445	$ 10,030	$ 12,129
Earnings per share:
Basic (in dollars per share)	$ 0.43	$ 1.08	$ 1.42
Diluted (in dollars per share)	$ 0.41	$ 1.03	$ 1.32
Weighted-average shares outstanding:
Basic	11,162	9,264	8,541
Diluted	11,766	9,763	9,155

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss)/Gain	Retained Earnings	Total
Balances at Dec. 30, 2016	$ 83	$ 42,376		$ 7,459	$ 49,918
Balances (in shares) at Dec. 30, 2016	8,348,000
Increase (Decrease) in Stockholders' Equity
Shares of common stock issued in connection with employee stock purchase plan	$ 1	829			830
Shares of common stock issued in connection with employee stock purchase plan (in shares)	62,000
Shares of common stock issued in connection with incentive stock plan	$ 3	1,898			1,901
Shares of common stock issued in connection with incentive stock plan (in shares)	298,000
Stock issued to acquire business	$ 1	3,099			3,100
Stock issued to acquire business (in shares)	91,000
Stock-based compensation expense		2,774			2,774
Net income				12,129	12,129
Balances at Dec. 29, 2017	$ 88	50,976		19,588	70,652
Balances (in shares) at Dec. 29, 2017	8,799,000
Increase (Decrease) in Stockholders' Equity
Shares of common stock issued in connection with employee stock purchase plan	$ 1	1,299			1,300
Shares of common stock issued in connection with employee stock purchase plan (in shares)	65,000
Shares of common stock issued in connection with incentive stock plan	$ 1	667			668
Shares of common stock issued in connection with incentive stock plan (in shares)	85,000
Unregistered sales of equity securities and use of proceeds (in shares)	(15,000)
Shares used to pay taxes on stock grants		(442)			(442)
Restricted Stock Awards (in shares)	22,000
Stock issued to acquire business	$ 20	55,246			55,266
Stock issued to acquire business (in shares)	2,012,000
Stock-based compensation expense		6,262			6,262
Net income				10,030	10,030
Cumulative effect from adoption of ASC 606 \| ASC 606				553	553
Balances at Dec. 28, 2018	$ 110	114,008		30,171	$ 144,289
Balances (in shares) at Dec. 28, 2018	10,968,000				10,968,000
Increase (Decrease) in Stockholders' Equity
Shares of common stock issued in connection with employee stock purchase plan	$ 1	1,739			$ 1,740
Shares of common stock issued in connection with employee stock purchase plan (in shares)	62,000
Shares of common stock issued in connection with incentive stock plan	$ 1	930			931
Shares of common stock issued in connection with incentive stock plan (in shares)	115,000
Shares used to pay taxes on stock grants	$ (2)	(2,878)			(2,880)
Shares used to pay taxes on stock grants (in shares)	(76,000)
Restricted Stock Awards	$ 2	(2)
Restricted Stock Awards (in shares)	213,000
Unregistered sales of stock	$ 1	1,699			1,700
Unregistered sales of stock (in shares)	53,000
Stock issued to acquire business	$ 2	4,939			4,941
Stock issued to acquire business (in shares)	162,000
Stock-based compensation expense		12,112			12,112
Net income				4,841	4,841
Net unrealized loss on derivative contracts			$ (396)		(396)
Balances at Dec. 27, 2019	$ 115	$ 132,547	$ (396)	$ 35,012	$ 167,278
Balances (in shares) at Dec. 27, 2019	11,497,000				11,497,000

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Cash flows from operating activities:
Net income	$ 4,841	$ 10,030	$ 12,129
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,472	6,211	4,082
Deferred income taxes, net	(209)	(2,890)	621
(Gain) loss on sale/disposal of equipment	(8)	(12)	27
Provision for doubtful accounts	1,051	470	(189)
Stock-based compensation	12,112	6,262	2,774
Accretion and fair value adjustments of contingent consideration	(302)	(1,426)	1,156
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts receivable	11,627	3,177	(7,412)
Contract assets	(34,598)	(11,539)	(5,744)
Other receivables	(2,714)	4,081	(1,126)
Prepaid expenses and other current assets	(343)	(154)	(1,096)
Other assets	(6,520)	(778)	25
Accounts payable	(6,294)	(1,583)	3,186
Accrued liabilities	16,761	(1,945)	4,329
Contract liabilities	315	(2,272)	(1,593)
Right-of-use assets	430	(64)	(100)
Net cash provided by operating activities	11,621	7,568	11,069
Cash flows from investing activities:
Purchase of equipment and leasehold improvements	(6,637)	(2,105)	(2,178)
Proceeds from sale of equipment	45	59
Cash paid for acquisitions, net of cash acquired	(71,756)	(124,344)	(14,603)
Net cash used in investing activities	(78,348)	(126,390)	(16,781)
Cash flows from financing activities:
Payments on contingent consideration	(1,381)	(4,296)	(1,709)
Payments on notes payable	(1,842)	(477)	(4,164)
Payments on debt issuance costs	(709)	(1,300)
Proceeds from notes payable		1,805
Borrowings under term loan facility and line of credit	138,000	70,000	1,000
Repayments under term loan facility and line of credit	(78,000)	(2,500)
Principal payments on finance leases	(639)	(367)	(390)
Proceeds from stock option exercise	931	668	1,901
Proceeds from sales of common stock under employee stock purchase plan	1,740	1,300	830
Proceeds from equity raise		55,266
Shares used to pay taxes on stock grants	(2,880)	(442)
Proceeds from unregistered sales of equity	1,700
Net cash provided by (used in) financing activities	56,920	119,657	(2,532)
Net increase (decrease) in cash and cash equivalents	(9,807)	835	(8,244)
Cash and cash equivalents at beginning of period	15,259	14,424	22,668
Cash and cash equivalents at end of period	5,452	15,259	14,424
Cash paid during the period for:
Interest	4,169	494	111
Income taxes	4,052	3,163	2,750
Supplemental disclosures of noncash investing and financing activities:
Issuance of common stock related to business acquisitions			3,100
Contingent consideration related to business acquisitions		943	5,400
Other working capital adjustment		63	113
Equipment acquired under finance leases	$ 661	$ 462	$ 294

ORGANIZATION AND OPERATIONS OF THE COMPANY

12 Months Ended

Dec. 27, 2019

ORGANIZATION AND OPERATIONS OF THE COMPANY

ORGANIZATION AND OPERATIONS OF THE COMPANY

1. ORGANIZATION AND OPERATIONS OF THE COMPANY

Willdan Group, Inc. (“Willdan”) is a provider of professional, technical and consulting services to utilities, private industry, and public agencies at all levels of government. As resources and infrastructures undergo continuous change, the Company helps organizations and their communities evolve and thrive by providing a wide range of technical services for energy solutions and government infrastructure. Through engineering, program management, policy advisory, and software and data management, the Company designs and delivers trusted, comprehensive, innovative, and proven solutions to improve efficiency, resiliency, and sustainability in energy and infrastructure.

Basis of Presentation

The Company has prepared its Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

The consolidated statement of stockholders' equity includes repurchases of shares of our common stock from employees to satisfy tax withholding obligations incurred in connection with the vesting of restricted stock or performance stock units, which amount is presented as a reduction of additional paid-in capital and common stock.

Fiscal Years

The Company operates and reports its annual financial results based on 52 or 53-week periods ending on the Friday closest to December 31. The Company operates and reports its quarterly financial results based on the 13-week period ending on the Friday closest to March 31, June 30 and September 30 and the 13 or 14-week period ending on the Friday closest to December 31, as applicable. Fiscal years 2019, 2018 and 2017 contained 52 weeks. All references to years in the notes to consolidated financial statements represent fiscal years.

Principles of Consolidation

The consolidated financial statements include the accounts of Willdan Group, Inc. and its wholly-owned subsidiaries and their respective subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Amounts classified as “Costs and estimated earnings in excess of billings on uncompleted contracts” and “Billings in excess of costs and estimated earnings on uncompleted contracts” on the consolidated of cash flows of the Company’s Annual Report on Form 10-K for the year ended December 29, 2017 have been reclassified as “Contract assets” and “Contract liabilities”, respectively, to conform to current year presentation.

Certain prior year amounts have been reclassified in the condensed consolidated balance sheets to conform to the current year presentation.

Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

All highly liquid investments purchased with a remaining maturity of three months or less are considered to be cash equivalents. The Company from time to time may be exposed to credit risk with its bank deposits in excess of the FDIC insurance limits and with uninsured money market investments. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Fair Value of Financial Instruments

The Company uses the three-tier hierarchy of fair value measurement, which prioritizes the inputs. These tiers include: Level 1 (the highest priority), defined as observable inputs, such as quoted prices in active markets, Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 (the lowest priority), defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Company’s financial instruments consist primarily of cash, cash equivalents, accounts receivable, contract assets, other receivables, prepaid expenses and other current assets, accounts payable, accrued liabilities and contract liabilities. The carrying amounts of certain other assets and contingent consideration are discounted to their present value because the time between the origination of these instruments and their expected realization or payment is greater than one year.

As of December 27, 2019 and December 28, 2018, the carrying amounts of the Company's cash and cash equivalents, accounts receivable, contract assets, other receivables, prepaid expenses and other current assets, accounts payable, accrued liabilities and contract liabilities, approximate their fair values because of the relatively short period of time between the origination of these instruments and their expected realization or payment. The carrying amounts of debt obligations approximate their fair values since the terms are comparable to terms currently offered by local lending institutions for loans of similar terms to companies with comparable credit risk.

The carrying amounts of the derivative financial instrument is valued based on Level 2 inputs.

Variable Interest Entities

The Company accounts for variable interest entities in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation. Under ASC 810, a variable interest entity (“VIE”) is created when any of the following criteria are present: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group either (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE pursuant to ASC 810, the enterprise that has both (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE. In accordance with ASC 810, the Company performs ongoing reassessments of whether an enterprise is the primary beneficiary of a VIE.

As of December 27, 2019, the Company had one VIE — Genesys Engineering, P.C. (“Genesys”). Pursuant to New York law, the Company does not own capital stock of Genesys and does not have control over the professional decision making of Genesys’s engineering services. The Company, however, has entered into an administrative services agreement with Genesys pursuant to which WES, the Company’s wholly-owned subsidiary, will provide Genesys with ongoing administrative, operational and other non-professional support services. The Company manages Genesys and has the power to direct the activities that most significantly impact Genesys’s performance, in addition to being obligated to absorb expected losses from Genesys. Accordingly, the Company is the primary beneficiary of Genesys and consolidates Genesys as a VIE.

Management also concluded there is no noncontrolling interest related to the consolidation of Genesys because management determined that (i) the shareholder of Genesys does not have more than a nominal amount of equity investment at risk, (ii) WES absorbs the expected losses of Genesys through its deferral of Genesys’s service fees owed to WES and the Company has, since entering into the administrative services agreement, had to continuously defer service fees for Genesys, and (iii) the Company believes Genesys will continue to have a shortfall on payment of its service fees for the foreseeable future, leaving no expected residual returns for the shareholder. For more information regarding Genesys, see Note 8 “Commitments and Variable Interest Entities.”

Segment Information

The Company presents segment information externally consistent with the manner in which the Company’s chief operating decision maker reviews information to assess performance and allocate resources.

Willdan Group, Inc. (“WGI”) is a holding company and performs administrative functions on behalf of its subsidiaries, such as treasury, legal, accounting, information systems, human resources and certain business development activities, and earns revenue that is only incidental to the activities of the enterprise. As a result, WGI does not meet the definition of an operating segment.

During the first quarter of fiscal 2018, the Company revised its segment reporting to conform to changes in its internal management reporting. As a result, beginning with the first quarter of fiscal 2018, the Company’s two segments are (i) Energy, and (ii) Engineering and Consulting, and the Company’s chief operating decision maker, which continues to be its chief executive officer, receives and reviews financial information in this format. Accordingly, segment information has been revised for comparison purposes for all periods presented in the accompanying Consolidated Financial Statements and Notes to Consolidated Financial Statements. See Note 9 “Segment Information” more information.

Contract Assets and Liabilities

Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or pre-agreed schedules. Billings do not necessarily correlate with revenue recognized using the percentage-of-completion method of revenue recognition. Contract assets include unbilled amounts typically resulting from revenue under contracts where the percentage-of-completion method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. In addition, contract assets include retainage amounts withheld from billings to the Company’s clients pursuant to provisions in our contracts. Contract liabilities consist of advance payments and billings in excess of revenue recognized and deferred revenue.

Adoption of ASC 606

On December 30, 2017, the Company adopted ASC 606, using the modified retrospective method applied to those contracts which were not completed as of December 29, 2017. Prior to adopting ASC 606, the Company established an implementation team, which included senior managers from its finance and accounting group. The implementation team evaluated the impact of adopting ASC 606 on its contracts expected to be uncompleted as of December 30, 2017 (the date of adoption). The evaluation included reviewing its accounting policies and practices to identify differences that would result from applying the requirements of the new standard. The Company identified and made changes to its processes, systems and controls to support recognition and disclosure under the new standard. The implementation team worked closely with various professional consultants and attended several formal conferences and seminars to conclude on certain interpretative issues.

The Company recognizes engineering and consulting contract revenue over time using the percentage-of-completion method, based primarily on contract cost incurred to date compared to total estimated contract cost. Revenue on the vast majority of its contracts will continue to be recognized over time because of the continuous transfer of control to the customer. Revenue recognition for software licenses issued by the Energy segment is recognized at a point in time, upon acceptance of the software by the customer and in recognition of the fulfillment of the performance obligation. Certain additional performance obligations beyond the base software license may be separated from the gross license fee and recognized on a straight-line basis over time.

Contract Balances

Results for operating periods beginning after December 30, 2017 are presented under ASC 606, while comparative information has not been restated and continues to be reported in accordance with the accounting standards in effect for those periods.

The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of December 30, 2017 as follows:


	Balance at		Adjustments		Balance at
	December 29,		Due to		December 30,
	2017		ASC 606		2017
	(in thousands)
Assets
Accounts receivable, net of allowance for doubtful accounts	$	38,441	$	(8,560)	$	29,881
Contract assets	$	24,732	$	9,328	$	34,060

Liabilities
Deferred income taxes, net	$	2,463	$	(215)	$	2,248

Equity
Retained earnings	$	19,588	$	553	$	20,141

The impact of adoption on its condensed consolidated balance sheet and cash flows for the fiscal year ended December 28, 2018 was as follows:


	For the year ended December 28, 2018
	As		Balances Without		Effect of Change
	Reported		Adoption of ASC 606		Higher/(Lower)
	(in thousands)
Assets
Accounts receivable, net of allowance for doubtful accounts	$	61,346	$	68,240	$	(6,894)
Contract assets	$	51,851	$	44,981	$	6,870

Liabilities
Deferred income taxes, net	$	—	$	112	$	(112)

Equity
Retained earnings	$	30,171	$	29,889	$	282


	For the year ended December 28, 2018
	As		Balances Without		Effect of Change
	Reported		Adoption of ASC 606		Higher/(Lower)
	(in thousands)
Cash flows from operating activities
Accounts receivable, net of allowance for doubtful accounts	$	3,177	$	(3,717)	$	6,894
Contract assets		(11,539)		(4,645)		(6,894)
Total cash flows used in operating activities	$	(8,362)	$	(8,362)	$	—

The impact of adoption on the Company’s opening balance sheet for fiscal year 2018 was primarily related to deferred revenues and unrecognized license renewals associated with software license agreements currently in force reclassified to retained earnings, net of the deferred income tax impact and reclassification of amounts between accounts receivable net of allowance for doubtful accounts and contract assets based on whether an unconditional right to consideration has been established or not.

The impact of adoption on the Company’s balance sheet at December 28, 2018 was primarily related to conforming the accounting treatment of most of our non-cancellable software license contracts, which were previously recorded over time based on prior acceptable accounting methods, and now recognize the full amount of such licenses upon acceptance of the software by the customer.

The impact of adoption on its statement of operations was not material for the fiscal year ended December 28, 2018.

Contract Accounting

The Company enters into contracts with its clients that contain various types of pricing provisions, including fixed price, time-and-materials, and unit-based provisions. The Company recognizes revenues in accordance with ASU 2014-09, Revenue from Contracts with Customer, codified as ASC Topic 606 and the related amendments (collectively “ASC 606”). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation.

The following table reflects the Company’s two reportable segments and the types of contracts that each most commonly enters into for revenue generating activities.


Segment	Contract Type	Revenue Recognition Method
	Time-and-materials	Time-and-materials
Energy	Unit-based	Unit-based
	Software license	Unit-based
	Fixed price	Percentage-of-completion
	Time-and-materials	Time-and-materials
Engineering and Consulting	Unit-based	Unit-based
	Fixed price	Percentage-of-completion

Revenue on the vast majority of the Company’s contracts will continue to be recognized over time because of the continuous transfer of control to the customer. Revenue on fixed price contracts is recognized on the percentage-of-completion method based generally on the ratio of direct costs incurred-to-date to estimated total direct costs at completion. The Company uses the percentage-of-completion method to better match the level of work performed at a certain point in time in relation to the effort that will be required to complete a project. In addition, the percentage-of-completion method is a common method of revenue recognition in the Company’s industry.

Many of the Company’s fixed price contracts involve a high degree of subcontracted fixed price effort and are relatively short in duration, thereby lowering the risks of not properly estimating the percent complete. Revenue on time-and-materials and unit-based contracts is recognized as the work is performed in accordance with the specific rates and terms of the contract. The Company recognizes revenues for time-and-materials contracts based upon the actual hours incurred during a reporting period at contractually agreed upon rates per hour and also includes in revenue all reimbursable costs incurred during a reporting period. Certain of the Company’s time-and-materials contracts are subject to maximum contract values and, accordingly, when revenue is expected to exceed the maximum contract value, these contracts are generally recognized under the percentage-of-completion method, consistent with fixed price contracts. For unit-based contracts, the Company recognizes the contract price of units of a basic production product as revenue when the production product is delivered during a period. Revenue recognition for software licenses issued by the Energy segment is generally recognized at a point in time, utilizing the unit-based revenue recognition method, upon acceptance of the software by the customer and in recognition of the fulfillment of the performance obligation. Certain additional performance obligations beyond the base software license may be separated from the gross license fee and recognized on a straight-line basis over time. Revenue for amounts that have been billed but not earned is deferred, and such deferred revenue is referred to as contract liabilities in the accompanying condensed consolidated balance sheets.

To determine the proper revenue recognition method for contracts, the Company evaluates whether two or more contracts should be combined and accounted for as one single contract and whether the combined contract should be accounted for as one performance obligation. With respect to the Company’s contracts, it is rare that multiple contracts should be combined into a single performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate a single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. Contracts are considered to have a single performance obligation if the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts, which is mainly because the Company provides a significant service of integrating a complex set of tasks and components into a single project or capability.

The Company may enter into contracts that include separate phases or elements. If each phase or element is negotiated separately based on the technical resources required and/or the supply and demand for the services being provided, the Company evaluates if the contracts should be segmented. If certain criteria are met, the contracts would be segmented which could result in revenues being assigned to the different elements or phases with different rates of profitability based on the relative value of each element or phase to the estimated total contract revenue. Segmented contracts may comprise up to approximately 2.0% to 3.0% of the Company’s consolidated contract revenue.

Contracts that cover multiple phases or elements of the project or service lifecycle (development, construction and maintenance and support) may be considered to have multiple performance obligations even when they are part of a single contract. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using the best estimate of the standalone selling price of each distinct good or service in the contract. For the periods presented, the value of the separate performance obligations under contracts with multiple performance obligations (generally measurement and verification tasks under certain energy performance contracts) were not material. In cases where the Company does not provide the distinct good or service on a standalone basis, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts the Company’s expected costs of satisfying a performance obligation and then adds an appropriate margin for the distinct good or service.

The Company provides quality of workmanship warranties to customers that are included in the sale and are not priced or sold separately or do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications and industry standards. The Company does not consider these types of warranties to be separate performance obligations.

In some cases, the Company has a master service or blanket agreement with a customer under which each task order releases the Company to perform specific portions of the overall scope in the service contract. Each task order is typically accounted for as a separate contract because the task order establishes the enforceable rights and obligations, and payment terms.

Under ASC 606, variable consideration should be considered when determining the transaction price and estimates should be made for the variable consideration component of the transaction price, as well as assessing whether an estimate of variable consideration is constrained. For certain of the Company’s contracts, variable consideration can arise from modifications to the scope of services resulting from unapproved change orders or customer claims. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on assessments of legal enforceability, the Company’s performance, and all information (historical, current and forecasted) that is reasonably available to the Company.

Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. As a significant change in one or more of these estimates could affect the profitability of the Company’s contracts, the Company reviews and updates the Company’s contract-related estimates regularly through a company-wide disciplined project review process in which management reviews the progress and execution of the Company’s performance obligations and the estimate at completion (EAC). As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule and the related changes in estimates of revenues and costs. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer, among other variables.

The Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the full amount of estimated loss in the period it is identified.

Contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist when the modification either creates new rights or obligations or changes the existing enforceable rights or obligations. Most of the Company’s contract modifications are for goods or services that are not distinct from existing contracts due to the significant integration provided in the context of the contract and are accounted for as if they were part of the original contract. The effect of a contract modification that is not distinct from the existing contract on the transaction price and the Company’s measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis.

For contract modifications that result in the promise to deliver goods or services that are distinct from the existing contract and the increase in price of the contract is for the same amount as the standalone selling price of the additional goods or services included in the modification, the Company accounts for such contract modifications as a separate contract.

The Company includes claims to vendors, subcontractors and others as a receivable and a reduction in recognized costs when enforceability of the claim is established by the contract and the amounts are reasonably estimable and probable of being recovered. The amounts are recorded up to the extent of the lesser of the amounts management expects to recover or to costs incurred.

Direct costs of contract revenue consist primarily of that portion of technical and nontechnical salaries and wages that has been incurred in connection with revenue producing projects. Direct costs of contract revenue also include production expenses, subcontractor services and other expenses that are incurred in connection with revenue producing projects.

Direct costs of contract revenue exclude that portion of technical and nontechnical salaries and wages related to marketing efforts, vacations, holidays and other time not spent directly generating revenue under existing contracts. Such costs are included in general and administrative expenses. Additionally, payroll taxes, bonuses and employee benefit costs for all Company personnel are included in general and administrative expenses in the accompanying consolidated statements of comprehensive income since no allocation of these costs is made to direct costs of contract revenue. No allocation of facilities costs is made to direct costs of contract revenue. Other companies may classify as direct costs of contract revenue some of the costs that the Company classifies as general and administrative costs. The Company expenses direct costs of contract revenue when incurred.

Included in revenue and costs are all reimbursable costs for which the Company has the risk or on which the fee was based at the time of bid or negotiation. No revenue or cost is recorded for costs in which the Company acts solely in the capacity of an agent and has no risks associated with such costs.

Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts based upon a review of all outstanding amounts on a quarterly basis. Management determines allowances for doubtful accounts through specific identification of amounts considered to be uncollectible and potential write-offs, plus a non-specific allowance for other amounts for which some potential loss has been determined to be probable based on current and past experience. The Company’s historical credit losses have been minimal with governmental entities and large public utilities, but disputes may arise related to these receivable amounts. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received.

Retainage, included in contract assets, represents amounts withheld from billings to the Company’s clients pursuant to provisions in the contracts and may not be paid to the Company until specific tasks are completed or the project is completed and, in some instances, for even longer periods. At December 27, 2019 and December 28, 2018, contract assets included retainage of approximately $5.4 million and $6.7 million, respectively.

In addition to the above, the Company derives revenue from software licenses and professional services and maintenance fees. In accordance with ASC 606, the Company performs an assessment of each contract to identify the performance obligations, determine the overall transaction price for the contract, allocate the transaction price to the performance obligations, and recognize the revenue when the performance obligations are satisfied.

The Company utilizes the residual approach by which it estimates the standalone selling price by reference to the total transaction price less the sum of the observable standalone selling prices of other goods or services promised in the contract. The software license revenue is typically recognized at a point in time when control is transferred to the client, which is defined as the point in time when the client can use and benefit from the license. The software license is delivered before related services are provided and is functional without services, updates, or technical support. Related professional services include training and support services in which the standalone selling price is determined based on an input measure of hours incurred to total estimated hours and is recognized over time, usually which is the life of the contract.

General and Administrative Expenses

General and administrative expenses include the costs of the marketing and support staff, other marketing expenses, management and administrative personnel costs, payroll taxes, bonuses and employee benefits for all of the Company’s employees and the portion of salaries and wages not allocated to direct costs of contract revenue for those employees who provide the Company’s services. General and administrative expenses also include facility costs, depreciation and amortization, professional services, legal and accounting fees and administrative operating costs. Within general and administrative expenses, “Other” includes expenses such as provision for billed or unbilled receivables, professional services, legal and accounting, computer costs, travel and entertainment, marketing costs and acquisition costs. The Company expenses general and administrative costs when incurred.

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 require, among other things, that lessees recognize the following for all leases (unless a policy election is made by class of underlying asset to exclude short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or the direct use of, a specified asset for the lease term. The FASB issued ASU 2018-11 on July 30, 2018, which allows entities to apply the provisions of ASC 842 at the effective date without adjusting comparative periods.

On December 29, 2018, the Company adopted ASU 2016-02 using the modified retrospective method. Under this guidance, the net present value of future lease payments is recorded as right-of-use assets and lease liabilities. In addition, the Company elected the ‘package of practical expedients’ permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company elected not to utilize the hindsight practical expedient to determine the lease term for existing leases. The Company also elected the practical expedient to not separate lease and non-lease components for its facilities leases. Previously, all of the Company’s office leases were classified as operating leases and rent expense was included in facilities expense in the consolidated statements of comprehensive income.

In addition, the Company leases certain equipment under financing leases. The economic substance of the leases is a financing transaction for acquisition of equipment and leasehold improvements. Accordingly, the right-of-use assets for these leases are included in the balance sheets in equipment and leasehold improvements, net of accumulated depreciation, with a corresponding amount recorded in current portion of financing lease obligations or noncurrent portion of financing lease obligations, as appropriate. The financing lease assets are amortized over the life of the lease or, if shorter, the life of the leased asset, on a straight-line basis and included in depreciation expense in the statements of comprehensive income. The interest associated with financing lease obligations is included in interest expense in the statements of comprehensive income. For more information, see Note 2, “Recent Accounting Pronouncements”, and Note 7, “Leases”.

Equipment and Leasehold Improvements

Equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Equipment under capital leases is stated at the present value of the minimum lease payments as of the acquisition date. Depreciation and amortization on equipment are calculated using the straight‑line method over estimated useful lives of two to five years. Leasehold improvements and assets under capital leases are amortized using the straight‑line method over the shorter of estimated useful lives or the term of the related lease.

Following are the estimated useful lives used to calculate depreciation and amortization:


Category	Estimated Useful Life
Furniture and fixtures	5	years
Computer hardware	3	years
Computer software	3	years
Automobiles and trucks	3	years
Field equipment	5	years

Goodwill

Goodwill represents the excess of costs over fair value of the assets acquired. The Company completes its annual testing of goodwill as of the last day of the first month of its fourth fiscal quarter each year to determine whether there is impairment. Goodwill, which has an indefinite useful life, is not amortized, but instead tested for impairment at least annually or more frequently if events and circumstances indicate that the asset might be impaired. Impairment losses for reporting units are recognized to the extent that a reporting unit’s carrying amount exceeds its fair value.

Long-lived assets

Long-lived assets, such as equipment, leasehold improvements and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

Accounting for Claims against the Company

The Company accrues an undiscounted liability related to claims against it for which the incurrence of a loss is probable and the amount can be reasonably estimated. The Company discloses the amount accrued and an estimate of any reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for its financial statements not to be misleading. The Company does not accrue liabilities related to claims when the likelihood that a loss has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. Losses related to recorded claims are included in general and administrative expenses.

Determining probability and estimating claim amounts is highly judgmental. Initial accruals and any subsequent changes in the Company’s estimates could have a material effect on its consolidated financial statements.

Stock-based Compensation

The Company accounts for all stock-based compensation under the fair value recognition provisions of the accounting standard entitled “Compensation—Stock Compensation.” Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite vesting period. The fair values of all stock options granted and the fair values of all Employee Stock Purchase Plan (“ESPP”) purchase rights are estimated using the Black-Scholes option-valuation model. The Black-Scholes option-valuation model requires the input of highly subjective assumptions. Performance-based restricted stock unit awards (“PBRSUs”) are granted to certain employees and vest only after the achievement of pre-determined performance metrics. Once the performance metrics are met, vesting of PBRSUs is subject to continued service by the employee. At the end of each reporting period, the Company evaluates the probability that PBRSUs will be earned. The Company records stock-based compensation expense based on the probability that the performance metrics will be achieved over the vesting period.

Business Combinations

The acquisition method of accounting for business combinations requires the Company to use significant estimates and assumptions, including fair value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which the Company may adjust the provisional amounts recognized for a business combination based upon new information about facts that existed on the business combination date).

Under the acquisition method of accounting, the Company recognizes separately from goodwill the identifiable assets acquired, the liabilities assumed, and any non-controlling interests in an acquiree, at the acquisition date fair value. The Company measures goodwill as of the acquisition date as the excess of consideration transferred over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Costs that the Company incurs to complete the business combination such as investment banking, legal and other professional fees are not considered part of consideration. The Company charges these acquisition costs to general and administrative expense as they are incurred.

On October 28, 2019, the Company acquired all of the capital stock of Energy and Environmental Economics, Inc. On July 2, 2019, the Company acquired substantially all of the assets and liabilities of Onsite Energy Corporation. On March 8, 2019, the Company acquired substantially all of the assets of the energy practice division of The Weidt Group Inc. On November 9, 2018, the Company completed the acquisition of Lime Energy, Co. On April 30, 2018, the Company acquired all of the outstanding equity interests of Newcomb Anderson McCormick, Inc. For further discussion of these acquisitions, see Note 13 “Business Combinations”.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial reporting basis and tax basis of the Company’s assets and liabilities, subject to a judgmental assessment of the recoverability of deferred tax assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when it is more-likely-than-not that some of the deferred tax assets may not be realized. Significant judgment is applied when assessing the need for valuation allowances. Areas of estimation include the Company’s consideration of future taxable income and ongoing prudent and feasible tax planning strategies. Should a change in circumstances lead to a change in judgment about the utilization of deferred tax assets in future years, the Company would adjust the related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. On December 22, 2017, the Tax Act was enacted into law, which among other items, lowered the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of the Tax Act, the Company recorded a one-time decrease in deferred tax expense of $1.3 million for the fiscal quarter ended December 29, 2017 to account for the remeasurement of the Company’s deferred tax assets and liabilities on the enactment date. As of December 28, 2018, the Company’s accounting for the Tax Act was complete. An adjustment of $0.2 million additional deferred tax expense was recorded due to the corporate tax rate change impact on adjustments to temporary differences that were estimated at the time of the tax provision and finalized for the tax return.

During each fiscal year, management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize existing deferred tax assets. For fiscal years 2019 and 2018, the Company ultimately determined that it was more-likely-than-not that the entire California net operating loss will not be utilized prior to expiration. Significant pieces of objective evidence evaluated included the Company’s history of utilization of California net operating losses in prior years for each of the Company’s subsidiaries, as well as the Company’s forecasted amount of net operating loss utilization for certain members of the combined group. As a result, at the end of fiscal years 2019 and 2018, the Company recorded a valuation allowance in the amount of $86,000, for each year, related to California net operating losses.

For acquired business entities, if the Company identifies changes to acquired deferred tax asset valuation allowances or liabilities related to uncertain tax positions during the measurement period and they relate to new information obtained about facts and circumstances that existed as of the acquisition date, those changes are considered a measurement period adjustment and the Company records the offset to goodwill. The Company records all other changes to deferred tax asset valuation allowances and liabilities related to uncertain tax positions in current period income tax expense.

The Company recognizes the tax benefit from uncertain tax positions if it is more likely than not that the tax positions will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense.

Earnings per Share

The Company computes basic income per common share using net income and the weighted average number of common shares outstanding during the period. Diluted income per common share is computed using net income and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options, RSAs, PBRSUs, and rights to purchase shares of common stock under the Company’s ESPP.

Other Comprehensive Income (loss), Net of Tax

Other comprehensive income (loss), net of tax refers to revenue, expenses, gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The Company’s other comprehensive income (loss), net of tax is comprised of unrealized gains or losses on its interest rate swap agreement designated as cash flow hedges.

Derivatives

The Company accounts for its interest rate swap as designated cash flow hedges to mitigate variations in interest payments under a portion of its LIBOR-based term loans due to variations in the LIBOR index. The Company pays interest monthly at a fixed rate and receives interest monthly at the LIBOR rate on the notional amount of the contract with realized gains or losses recognized in interest expense.

Operating Cycle

In accordance with industry practice, amounts realizable and payable under contracts that extend beyond one year are included in current assets (included in contract assets) and current liabilities.

RECENT ACCOUNTING PRONOUNCEMENTS	12 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Dec. 27, 2019
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Recently Adopted In February 2016, the FASB issued ASU 2016-02. ASU 2016-02 supersedes ASC 840 “Leases”. The amendments in this update require, among other things, that lessees recognize the following for all leases (unless a policy election is made by class of underlying asset to exclude short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or the direct use of, a specified asset for the lease term. The FASB issued ASU 2018-11 on July 30, 2018, which allows entities to apply the provisions of ASC 842 at the effective date without adjusting comparative periods. The Company adopted this standard effective December 29, 2018, the first day of the fiscal year ending December 27, 2019, using the modified retrospective method and elected the ‘package of practical expedients’ permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company elected not to utilize the hindsight practical expedient to determine the lease term for existing leases. The Company also elected the short-term lease recognition exemption for all leases that qualify and elected the practical expedient to not separate lease and non-lease components for our facilities leases. Adoption of Topic 842 resulted in an increase of right-of-use assets and operating lease liabilities of $10.9 million and $11.9 million, respectively, as of December 29, 2018. The adoption of Topic 842 did not have material impact on the Company’s retained earnings, consolidated net earnings or cash flows. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 simplifies the test for goodwill impairment by removing Step 2 from the goodwill impairment test. Companies will now perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value not to exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The Company adopted this standard for its fiscal 2019 goodwill impairment test, which was performed as of the first day of the Company’s fourth quarter, September 28, 2019. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”), which expands the scope of current stock compensation recognition standards to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this standard effective December 29, 2018. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements. In October 2018, the FASB issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes” (“ASU 2018-16”). ASU 2018-16 allows for the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, Derivatives and Hedging. The Company adopted this standard in the first quarter of fiscal 2019. The Company’s adoption of ASU 2018-16 did not have a material impact on its Condensed Consolidated Financial Statements. Accounting Pronouncements Recently Issued In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to report “expected” credit losses on financial instruments and other commitments to extend credit rather than the current “incurred loss” model. These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 will also require enhanced disclosures relating to significant estimates and judgments used in estimating credit losses, as well as the credit quality. The amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which for the Company is first quarter 2020. The Company is currently evaluating the impact this update will have on its Condensed Consolidated Financial Statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 amends the accounting for income taxes by, among other things, removing: (i) The exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income); (ii) The exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (iii) The exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (iv) The exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, which for the Company is the first quarter of fiscal 2021. The Company is currently evaluating the impact this update will have on its Condensed Consolidated Financial Statements.

SUPPLEMENTAL FINANCIAL STATEMENT DATA

12 Months Ended

Dec. 27, 2019

SUPPLEMENTAL FINANCIAL STATEMENT DATA

SUPPLEMENTAL FINANCIAL STATEMENT DATA

3. SUPPLEMENTAL FINANCIAL STATEMENT DATA

Accounts Receivable

Accounts receivable consisted of the following:


	December 27,		December 28,
	2019		2018
	(in thousands)
Billed	$	58,651	$	61,788
Unbilled (1)		96,041		45,158
Contract retentions		5,377		6,693
Other assets (2)		14,075		1,626
		174,144		115,265
Allowance for doubtful accounts		(1,147)		(442)
	$	172,997	$	114,823

⁽¹⁾

Unbilled portion represents contract assets which is presented separately from accounts receivable on the consolidated balance sheets.

⁽²⁾

Other assets represents a portion of receivables greater than one year from the normal course of business presented separately from current assets on the consolidated balance sheets.

The movements in the allowance for doubtful accounts consisted of the following:


	Fiscal Year
	2019		2018		2017
	(in thousands)
Balance as of the beginning of the year	$	442	$	369	$	785
(Recovery of) provision for doubtful accounts		1,051		470		(189)
Write-offs of uncollectible accounts		(346)		(397)		(227)
Balance as of the end of the year	$	1,147	$	442	$	369

Billed accounts receivable represent amounts billed to clients that have yet to be collected. Unbilled accounts receivable represent revenue recognized, but not yet billed, pursuant to contract terms or accounts billed after the period end. Substantially all unbilled receivables as of December 27, 2019 and December 28, 2018 are, or were expected to be, billed and collected within twelve months of such date. Contract retentions represent amounts invoiced to clients where payments have been withheld pending the completion of certain milestones, other contractual conditions or upon the completion of the project. These retention agreements vary from project to project and could be outstanding for several months.

Allowances for doubtful accounts have been determined through specific identification of amounts considered to be uncollectible and potential write‑offs, plus a non‑specific allowance for other amounts for which some potential loss has been determined to be probable based on current and past experience.

The Los Angeles Department of Water and Power (“LADWP”) accounted for 16% of the Company’s outstanding receivables as of December 27, 2019. The Dormitory Authority-State of New York (“DASNY”) accounted for 21% of the Company’s outstanding receivables as of December 28, 2018.

From time to time, in connection with factoring agreements, the Company sells trade accounts receivable without recourse to third party purchasers in exchange for cash. During 2019, the Company sold trade accounts receivable and received cash proceeds of $4.9 million. The discounts on the trade accounts receivable sold during 2019 were $0.2 million and were recorded within “Other” general and administrative expenses in the consolidated financial statements. During 2018, the Company did not sell any trade accounts receivable.

Equipment and Leasehold Improvements

Equipment and leasehold improvements were as follows:


	December 27,		December 28,
	2019		2018
	(in thousands)
Furniture and fixtures	$	4,614	$	3,551
Computer hardware and software		14,789		10,874
Leasehold improvements		2,410		1,419
Equipment under finance leases		1,957		1,304
Automobiles, trucks, and field equipment		3,564		2,635
		27,334		19,783
Accumulated depreciation and amortization		(15,283)		(11,785)
Equipment and leasehold improvements, net	$	12,051	$	7,998

Depreciation expense of equipment and leasehold improvements totaled $3.4 million, $1.6 million, and $1.5 million in fiscal years 2019, 2018, and 2017, respectively.

Included in accumulated depreciation and amortization is $509,000, $374,000 and $380,000 of amortization expense related to equipment held under finance leases in fiscal years 2019, 2018, and 2017, respectively.

Accrued Liabilities

Accrued liabilities were as follows:


	December 27,		December 28,
	2019		2018
	(in thousands)
Accrued subcontractor costs	$	45,366	$	21,446
Accrued bonuses		7,756		5,273
Other		4,630		2,489
Compensation and payroll taxes		3,286		2,544
Employee withholdings		3,463		2,137
Paid leave bank		3,114		3,512
Total accrued liabilities	$	67,615	$	37,401

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 27, 2019

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

4. DERIVATIVE FINANCIAL INSTRUMENTS

The Company uses certain interest rate derivative contracts to hedge interest rate exposures on its variable rate debt. The Company’s hedging program is not designated for trading or speculative purposes.

The Company recognizes derivative instruments as either assets or liabilities on the accompanying consolidated balance sheets at fair value. The Company records changes in the fair value (i.e., gains or losses) of the derivatives that have been designated as cash flow hedges in its consolidated balance sheets as accumulated other comprehensive income (loss) and in its condensed consolidated statements of comprehensive (loss) income as a loss or gain on cash flow hedge valuation.

On January 31, 2019, the Company entered into an interest rate swap agreement that the Company designated as cash flow hedge to fix the variable interest rate on a portion of the Company’s 2018 Term Loan Facility. The interest rate swap agreement total notional amount of $35.0 million, has a fixed annual interest rate of 2.47% and expires on January 31, 2022. As of December 27, 2019, the effective portion of the Company’s interest rate swap agreement designated as a cash flow hedge before tax effects was $0.5 million, of which no amounts were reclassified from accumulated other comprehensive income to interest expense in 2019. The Company expects to reclassify $0.4 million from accumulated other comprehensive income to interest expense within the next twelve months.

The fair values of the Company’s outstanding derivatives designated as hedging instruments were as follows:


		Fair Value of Derivative
		Instruments as of
	Balance Sheet Location	December 27, 2019		December 28, 2018
		(in thousands)
Interest rate swap agreement	Accrued liabilities	$	(241)	$	—
Interest rate swap agreement	Other noncurrent (liabilities) assets	$	(306)	$	—

The impact of the effective portions of derivative instruments in cash flow hedging relationships and fair value relationships on other comprehensive income was $0.5 million for the year ended December 27, 2019.

The accumulated balances and reporting period activities for the year ended December 27, 2019 related to reclassifications out of accumulated other comprehensive income (loss) are summarized as follows:


	Gain (Loss) on		Accumulated Other
	Derivative Instruments		Comprehensive Loss
	(in thousands)
Balances at December 28, 2018	$	—	$	—
Other comprehensive loss before reclassifications		(546)		(546)
Amounts reclassified from accumulated other comprehensive income:
Income tax benefit (expense) related to derivative instruments		150		150
Net current-period other comprehensive loss		(396)		(396)
Balances at December 27, 2019	$	(396)	$	(396)

DEBT OBLIGATIONS

12 Months Ended

Dec. 27, 2019

DEBT OBLIGATIONS

DEBT OBLIGATIONS

5. DEBT OBLIGATIONS

Debt obligations, excluding obligations under finance leases (see Note 7, Leases, below), consisted of the following:


	December 27,		December 28,
	2019		2018
	(in thousands)
Outstanding borrowings on Term A Loan	$	95,000	$	70,000
Outstanding borrowings on Revolving Credit Facility		5,000		—
Outstanding borrowings on Delayed Draw		30,000		—
Other debt agreements		1,060		1,711
Total debt		131,060		71,711
Issuance costs and debt discounts		(709)		(925)
Subtotal		130,351		70,786
Less current portion of long-term debt		13,720		8,572
Long-term debt portion	$	116,631	$	62,214

New Credit Facilities

On June 26, 2019, the Company and certain of its subsidiaries entered into an Amended and Restated Credit Agreement (as amended by the First Amendment, dated as of August 15, 2019, and the Second Amendment, dated as of November 6, 2019, the “Credit Agreement”) with a syndicate of financial institutions as lenders and BMO Harris Bank, N.A. (“BMO”), as administrative agent. The Credit Agreement amended and restated the Company’s prior credit agreement, which was entered into on October 1, 2018 with a syndicate of financial institutions as lenders and BMO and was scheduled to mature on October 1, 2023.

The Credit Agreement provides for (i) a $100.0 million term loan (the “Term A Loan”), (ii) up to $50.0 million in delayed draw term loans (the “Delayed Draw Term Loan”), and (iii) a $50.0 million revolving credit facility (the “Revolving Credit Facility” and, collectively with the Term A Loan and the Delayed Draw Term Loan, the “Credit Facilities”), each maturing on June 26, 2024. The Company may borrow under the Delayed Draw Term Loan any time and from time to time until June 26, 2022; provided that each borrowing under the Delayed Draw Term Loan must be a minimum of $10.0 million, the Company may not make more than five borrowings under the Delayed Draw Term Loan and any borrowings made under the Delayed Draw Term Loan will permanently reduce future borrowing capacity under the Delayed Draw Term Loan. In addition, the Company must satisfy certain conditions prior to borrowing under the Delayed Draw Term Loan, including, but not limited to, that upon giving effect to such borrowing under the Delayed Draw Term Loan and any Credit Event (as defined in the Credit Agreement) in connection therewith, the Company will be in compliance with all financial covenants on a pro forma basis and the Company’s consolidated total leverage ratio will be no greater than 0.25x less than the consolidated total leverage ratio covenant compliance level in effect at the time of such borrowing.

The Company may also request lenders to add incremental term loans or increase the aggregate commitment under the Revolving Credit Facility by an aggregate amount of up to $100.0 million, subject to meeting certain conditions, and only if the existing or new lenders agree to provide the additional term or revolving commitments.

Borrowings under the Credit Facilities bear interest at a rate equal to either, at the Company’s option, (i) the highest of the prime rate, the Federal Funds Rate plus 0.50% or one-month LIBOR plus 1.00% (the “Base Rate”) or (ii) LIBOR, in each case plus an applicable margin ranging from 0.125% to 1.00% with respect to Base Rate borrowings and 1.125% to 2.00% with respect to LIBOR borrowings. The applicable margin varies based upon the Company’s consolidated total leverage ratio. The Company will also pay commitment fees for the unused portion of the Revolving Credit Facility and the Delayed Draw Term Loan, which ranges from 0.15% to 0.35% per annum depending on the Company’s consolidated total leverage ratio, and fees on the face amount of any letters of credit outstanding under the Revolving Credit Facility, which range from 0.84% to 2.00% per annum, in each case, depending on whether such letter of credit is a performance or financial letter of credit and the Company’s consolidated total leverage ratio. The Term A Loan issuance costs are amortized to interest expense over the term of the loan, and as of December 27, 2019, issuance costs of $0.7 million remained unamortized. The Delayed Draw Term Loan and Revolving Credit Facility issuance cost of $0.8 million are included in assets in the accompanying condensed consolidated balance sheets.

The Term A Loan amortizes quarterly in installments of $2.5 million beginning with the fiscal quarter ending September 27, 2019, with a final payment of all then remaining principal and interest due on the maturity date of June 26, 2024. Each borrowing under the Delayed Draw Term Loan will amortize quarterly in an amount equal to 2.5% of the aggregate outstanding borrowings under the Delayed Draw Term Loan, beginning with the first full fiscal quarter ending after the initial borrowing date, with a final payment of all then remaining principal and interest due on the maturity date of June 26, 2024. The amounts outstanding under the Credit Facilities may be prepaid in whole or in part at any time without penalty.

Willdan is the borrower under the Credit Agreement and its obligations under the Credit Agreement are guaranteed by its present and future domestic subsidiaries (other than any inactive subsidiaries and Factoring SPV (as defined in the Credit Agreement)). In addition, subject to certain exceptions, all such obligations are secured by substantially all of the assets of Willdan and the subsidiary guarantors.

The Credit Agreement requires compliance with financial covenants, including a maximum total consolidated leverage ratio and a minimum fixed charge coverage ratio. The Credit Agreement also contains customary restrictive covenants including (i) restrictions on the incurrence of additional indebtedness and additional liens on property, (ii) restrictions on permitted acquisitions and other investments and (iii) limitations on asset sales, mergers and acquisitions. Further, the Credit Agreement limits the Company’s payment of future dividends and distributions and share repurchases by the Company. Subject to certain exceptions, the borrowings under the Credit Agreement are also subject to mandatory prepayment from (a) any issuances of debt or equity securities, (b) any sale or disposition of assets, (c) insurance and condemnation proceeds (d) representation and warranty insurance proceeds related to insurance policies issued in connection with acquisitions and (e) excess cash flow. The Credit Agreement includes customary events of default.

The Company believes that, as of December 27, 2019, it was in compliance with all covenants contained in the Credit Agreement.

As of December 27, 2019, the Company’s composite interest rate, exclusive of the effects of upfront fees, undrawn fees and issuance cost amortization, was 3.7% and $2.7 million in letters of credit were issued.

Prior Credit Facilities

2018 Credit Facility

On October 1, 2018, in connection with the acquisition of Lime Energy, the Company entered into a credit agreement (the “2018 Credit Agreement”) with a syndicate of financial institutions as lenders, and BMO Harris Bank, N.A., as administrative agent. The 2018 Credit Agreement initially provided for up to a $90.0 million delayed draw term loan facility (the “2018 Term Loan Facility”) and a $30.0 million revolving credit facility (collectively, the “2018 Credit Facilities”), each maturing on October 1, 2023. On October 10, 2018, as a result of the Company’s completed equity offering, the amount available for borrowing under the 2018 Term Loan Facility was reduced to $70.0 million. On November 9, 2018, in connection with the closing of the acquisition of Lime Energy, the Company borrowed $70.0 million (the “2018 Term Loan”) under the 2018 Term Loan Facility. The proceeds of such borrowing were used to pay part of the consideration owed in connection with the acquisition along with related fees and expenses. On June 26, 2019, in connection with the Company entering into the Credit Agreement, the 2018 Credit Agreement was amended and restated.

The 2018 Credit Facilities bore interest at a rate equal to either, at the Company’s option, (i) the highest of the prime rate, the Federal Funds Rate plus 0.50% or one-month LIBOR plus 1.00% (“Base Rate”) or (ii) LIBOR, in each case plus an applicable margin ranging from 0.25% to 3.00% with respect to Base Rate borrowings and 1.25% to 4.00% with respect to LIBOR borrowings. The applicable margin was based upon the Company’s consolidated total leverage ratio. The Company was also required to pay a commitment fee for the unused portion of the revolving credit facility, which ranged from 0.20% to 0.40% per annum depending on the Company’s consolidated total leverage ratio, and fees on the face amount of any letters of credit outstanding under the revolving credit facility, which ranged from 0.94% to 4.00% per annum, in each case, depending on whether such letter of credit was a performance or financial letter of credit and the Company’s consolidated total leverage ratio.

Borrowings under the 2018 Credit Agreement were guaranteed by all of the Company’s direct and indirect domestic subsidiaries (other than inactive subsidiaries). In addition, subject to certain exceptions, all such obligations were secured by substantially all of the assets of Willdan Group, Inc. and the subsidiary guarantors.

2017 Credit Facility

On January 20, 2017, the Company and each of its subsidiaries, as guarantors, entered into an Amended and Restated Credit Agreement (the “2017 Credit Agreement”) with BMO, as lender. The 2017 Credit Agreement amended and extended the Company’s prior credit agreement. The 2017 Credit Agreement provided for a $35.0 million revolving line of credit, including a $10.0 million standby letter of credit sub-facility, and was scheduled to mature on January 20, 2020. Borrowings under the 2017 Credit Agreement bore interest at a rate equal to either, at the Company’s option, (i) the highest of the prime rate, the Federal Funds Rate plus 0.5% or one-month London Interbank Offered Rate (“LIBOR”) plus 1% (the “Base Rate”) or (ii) LIBOR, in each case plus an applicable margin ranging from 0.25% to 1.00% with respect to Base Rate borrowings and 1.25% to 2.00% with respect to LIBOR borrowings. The applicable margin was based upon the consolidated leverage ratio of the Company. The Company was also required to pay a commitment fee for the unused portion of the revolving line of credit, which ranged from 0.20% to 0.35% per annum, and fees on any letters of credit drawn under the facility, which ranged from 0.94% to 1.50%, in each case, depending on the Company’s consolidated leverage ratio.

Borrowings under the 2017 Credit Agreement were guaranteed by all of the Company’s direct and indirect subsidiaries and secured by substantially all of the Company’s and the Guarantors’ assets. On October 1, 2018, in connection with the Company entering into the 2018 Credit Agreement, the 2017 Credit Agreement was terminated.

Other Debt Agreements

Insurance Premiums

The Company’s annual commercial insurance policy protection package renews in the fourth quarter of every year. From time to time, the Company will finance insurance premiums by entering into unsecured notes payable with insurance companies. During the Company’s annual insurance renewals in the fourth quarter of its year ended December 27, 2019, the Company did not finance any of its insurance premiums for the 2020 fiscal year. During the Company’s annual insurance renewals in the fourth quarter of its fiscal year ended December 28, 2018, the Company elected to finance its insurance premiums for the 2019 fiscal year with a note payable bearing interest at an annual rate of 4.3%, payable in monthly principal and interest installments of $149,881 through October 2019. As of December 28, 2018, the unpaid balance of the financed premiums totaled $1.5 million.

Software Agreements

The Company has also financed, from time to time, software costs by entering into unsecured notes payable with software providers. During the fiscal year ended December 28, 2018, the Company elected to finance its IBM software costs of $0.2 million with a note payable bearing interest at an annual rate of 4.656%, payable in monthly principal and interest installments of $6,315 through November 2021. As of December 27, 2019, and December 28, 2018, the unpaid balance related to the IBM software agreement totaled $133,000 and $211,000, respectively.

Utility Customer Agreement

In connection with the acquisition of substantially all of the assets of Onsite Energy, the Company assumed a contract dispute settlement agreement between Onsite Energy and one of its utility customers dated December 20, 2018 (the “Utility Customer Agreement”) where Onsite Energy agreed to pay $1.7 million, bearing interest at an imputed annual rate of 4.332%, payable in quarterly principal and interest installments through June 2021. The unpaid balance of the Utility Customer Agreement totaled $0.9 million as of December 27, 2019.

Future Debt Payments

The following table summarizes the combined principal installments for the Company’s debt obligations, excluding capital leases, over the next five years and beyond, as of December 27, 2019:


Fiscal Year:
2020		13,720
2021		38,007
2022		32,667
2023		32,667
Thereafter		13,999
Total debt maturities		131,060
Issuance costs and debt discounts		(709)
Net carrying value	$	130,351

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 27, 2019

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

6. GOODWILL AND OTHER INTANGIBLE ASSETS

As of December 27, 2019, the Company had $127.6 million of goodwill, which primarily relates to the Energy segment and the acquisitions within this segment of E3, Inc., Lime Energy, NAM, Integral Analytics and Abacus Resource Management Company (“Abacus”) and substantially all of the assets of Onsite Energy, The Weidt Group, Genesys and 360 Energy Engineers, LLC (“360 Energy”). The remaining goodwill relates to the Engineering and Consulting reporting segment and the acquisition within this segment of Economists LLC.

The changes in the carrying value of goodwill by reporting unit were as follows:


	December 28,		Additional		Additions /		December 27,
	2018		Purchase Cost		Adjustments		2019
	(in thousands)
Reporting Unit:
Energy	$	96,999	$	39,690	$	(9,791)	$	126,898
Engineering and Consulting		749						749
	$	97,748	$	39,690	$	(9,791)	$	127,647

	December 29,		Additional		Additions /		December 28,
	2017		Purchase Cost		Adjustments		2018
	(in thousands)
Reporting Unit:
Energy	$	37,435	$	59,466	$	98	$	96,999
Engineering and Consulting		749		—		—		749
	$	38,184	$	59,466	$	98	$	97,748

The Company tests its goodwill at least annually for possible impairment. The Company completes its annual testing of goodwill as of the last day of the first month of its fourth fiscal quarter each year to determine whether there is impairment. In addition to the Company’s annual test, it regularly evaluates whether events and circumstances have occurred that may indicate a potential impairment of goodwill. No impairment was recorded in any year during the three-year period ended December 27, 2019.

The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives, included in other intangible assets, net in the accompanying consolidated balance sheets, were as follows:


	December 27, 2019				December 28, 2018
	Gross		Accumulated		Gross		Accumulated		Amortization
	Amount		Amortization		Amount		Amortization		Period
									(in years)
Finite:
Backlog	$	7,134	$	3,763	$	2,514	$	2,155	1.0
Tradename		13,351		4,882		10,301		3,118	2.5	-	6.0
Non-compete agreements		2,320		1,384		1,420		1,042	4.0	-	5.0
Developed technology		14,620		3,227		12,920		944	8.0
Customer relationships		60,733		8,065		25,219		2,441	5.0	-	8.0
Total finite intangible assets	$	98,158	$	21,321	$	52,374	$	9,700
In-process research and technology (1)		—		—		1,690		—
Total intangible assets	$	98,158	$	21,321	$	54,064	$	9,700

⁽¹⁾

In-process research and technology is not amortized until put into use.

At the time of acquisition, the Company estimates the fair value of the acquired identifiable intangible assets based upon the facts and circumstances related to the particular intangible asset. Inherent in such estimates are judgments and estimates of future revenue, profitability, cash flows and appropriate discount rates for any present value calculations. The Company preliminarily estimates the value of the acquired identifiable intangible assets and then finalizes the estimated fair values during the purchase allocation period, which does not extend beyond 12 months from the date of acquisition.

The Company’s amortization expense for acquired identifiable intangible assets with finite useful lives was $11.6 million, $4.5 million and $2.4 million for the fiscal years 2019, 2018 and 2017, respectively.

Estimated amortization expense for acquired identifiable intangible assets for fiscal year 2020 and the succeeding years is as follows:


		Future Intangible Asset
		Amortization expense
		(in thousands)
Fiscal year:
2020		13,025
2021		11,622
2022		11,233
2023		9,962
2024		6,871
Thereafter		24,124
	$	76,837

LEASES

12 Months Ended

Dec. 27, 2019

LEASES

LEASES

7. LEASES

The Company leases certain office facilities under long-term, non-cancellable operating leases that expire at various dates through the year 2027. In addition, the Company is obligated under finance leases for certain furniture and office equipment that expire at various dates through the year 2022.

On December 29, 2018, the Company adopted ASU No. 2016-02, Leases (Topic 842) using the modified retrospective method. Under this guidance, the net present value of future lease payments is recorded as right-of-use assets and lease liabilities. In addition, the Company elected the ‘package of practical expedients’ permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. In addition, the Company elected not to utilize the hindsight practical expedient to determine the lease term for existing leases. The Company elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company did not recognize right-of-use assets or lease liabilities, including not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for our facilities leases.

From time to time, the Company enters into non-cancelable leases for some of our facility and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to eight years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. Currently, all of the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of our month-to-month leases are cancelable by the Company or the lessor, at any time, and are not included in our right-of-use asset or lease liability. As of December 27, 2019, the Company had no leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases. The Company may exercise some of these purchase options when the need for equipment is on-going and the purchase option price is attractive. Nonperformance-related default covenants, cross-default provisions, subjective default provisions and material adverse change clauses contained in material lease agreements, if any, are also evaluated to determine whether those clauses affect lease classification in accordance with “ASC” Topic 842-10-25. Leases are accounted for as operating or financing leases, depending on the terms of the lease.

Financing Leases

The Company leases certain equipment under financing leases. The economic substance of the leases is a financing transaction for acquisition of equipment and leasehold improvements. Accordingly, the right-of-use assets for these leases are included in the balance sheets in equipment and leasehold improvements, net of accumulated depreciation, with a corresponding amount recorded in current portion of financing lease obligations or noncurrent portion of financing lease obligations, as appropriate. The financing lease assets are amortized over the life of the lease or, if shorter, the life of the leased asset, on a straight-line basis and included in depreciation expense. The interest associated with financing lease obligations is included in interest expense.

Right-of-use assets

Operating leases are included in right-of-use assets, and current portion of lease liability and noncurrent portion of lease liability, as appropriate. Right-of-use assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate to calculate present value, the Company determines this rate by estimating the Company’s incremental borrowing rate at the lease commencement date. The right-of-use asset also includes any lease payments made and initial direct costs incurred at lease commencement and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

The following is a summary of the lease expense:


	Fiscal Year
	2019		2018
	(in thousands)
Operating lease cost	$	5,053	$	-
Finance lease cost:
Amortization of assets		509		-
Interest on lease liabilities		36		-
Total net lease cost	$	5,598	$	-

The following is a summary of lease information presented on the Company’s consolidated balance sheet as of December 27, 2019:


	December 27,			December 28,
	2019			2018
	(in thousands)
Operating leases:
Right-of-use assets	$	22,297		$	—

Lease liability	$	5,550		$	—
Lease liability, less current portion		18,411			—
Total lease liabilities	$	23,961		$	—

Finance leases (included in equipment and leasehold improvements, net):
Equipment and leasehold improvements, net	$	1,957		$	—
Accumulated depreciation		(1,291)			—
Total equipment and leasehold improvements, net	$	666		$	—

Finance lease obligations	$	375		$	—
Finance lease obligations, less current portion		191			—
Total finance lease obligations	$	566		$	—

Weighted average remaining lease term (in years):
Operating Leases		4.59			—
Finance Leases		1.47			—

Weighted average discount rate:
Operating Leases		5.14	%		—	%
Finance Leases		4.80	%		—	%

Rent expense and related charges for common area maintenance for all facility operating leases for fiscal years 2019, 2018 and 2017 was approximately $6,190,000 $4,486,000, and $3,624,000, respectively.

The following is a summary of other information and supplemental cash flow information related to finance and operating leases for 2019:


	Fiscal Year
	2019		2018
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	5,151	$	—
Operating cash flow from finance leases		36		—
Financing cash flow from finance leases		639		—

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	4,918	$	—

The following is a summary of the maturities of lease liabilities as of December 27, 2019:


	Operating		Finance
	(in thousands)
Fiscal year:
2020	$	6,418	$	394
2021		5,680		178
2022		4,891		17
2023		3,425		—
2024		2,498		—
2025 and thereafter		4,530		—
Total lease payments	$	27,442	$	589
Less: Imputed interest		(3,481)		(23)
Total lease obligations		23,961		566
Less: Current obligations		5,550		375
Noncurrent lease obligations	$	18,411	$	191

The imputed interest for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the operating lease payments to their present value.

Capital Leases

Prior to the adoption of ASU No. 2016-02, Leases (Topic 842), the Company leased certain equipment under capital leases. The economic substance of these leases was a financing transaction for purchase of the equipment and leasehold improvements, accordingly, the leases were included in the balance sheets in equipment and leasehold improvement, net of accumulated depreciation, with a corresponding amount recorded in current portion of lease obligations or noncurrent portion of lease obligations, as appropriate. The capital lease assets were amortized on a straight-line basis over the life of the lease or, if shorter, the life of the leased asset, and were included in depreciation expense in the statements of comprehensive income. The interest associated with capital leases was included in interest expense in the statements of comprehensive income.

As of December 28, 2018, the Company had $0.5 million of capital lease obligations outstanding, $0.3 million of which was classified as a current liability.

As of December 28, 2018, $0.5 million of leased assets were capitalized in equipment and leasehold improvements, net of accumulated depreciation.

The following is a summary of the future minimum payments under finance and non-cancelable operating leases as of December 28, 2018:


	Finance		Operating
	(in thousands)
Fiscal year:
2019	$	335	$	4,442
2020		204		2,882
2021		26		2,036
2022		—		1,565
2023		—		668
2024 and thereafter		—		996
Total future minimum lease payments	$	565	$	12,589
Amount representing interest (at rates ranging from 3.25% to 3.75%)		(21)
Present value of net minimum lease payments under capital leases		544
Less current portion		320
Noncurrent lease obligations	$	224

COMMITMENTS AND VARIABLE INTEREST ENTITIES	12 Months Ended
COMMITMENTS AND VARIABLE INTEREST ENTITIES	Dec. 27, 2019
COMMITMENTS AND VARIABLE INTEREST ENTITIES
COMMITMENTS AND VARIABLE INTEREST ENTITIES	8. COMMITMENTS AND VARIABLE INTEREST ENTITIES Employee Benefit Plans The Company has a qualified profit sharing plan pursuant to Code Section 401(a) and qualified cash or deferred arrangement pursuant to Code Section 401(k) covering all employees. Employees may elect to contribute up to 50% of their compensation limited to the amount allowed by tax laws. Company contributions are made solely at the discretion of the Company’s board of directors. The Company also had a defined contribution plan (the “Plan”) covering employees who have completed three months of service and who have attained 21 years of age. The Company elected to make matching contributions equal to 50% of the participants’ contributions to the Plan up to 6% of the individual participant’s compensation. Under the defined contribution plan, the Company may make discretionary matching contributions to employee accounts. The Company made matching contributions of approximately $1,996,000, $1,120,000 and $1,021,000 during fiscal years 2019, 2018 and 2017, respectively. Post-Employment Health Benefits In May 2006, the Company’s board of directors approved providing lifetime health insurance coverage for Win Westfall, the Company’s former chief executive officer and current director, and his spouse and for Linda Heil, the widow of the Company’s former chief executive officer, Dan Heil. These benefits relate to past services provided to the Company. Accordingly, there is no unamortized compensation cost for the benefits. Included in accrued liabilities in the accompanying consolidated balance sheets related to this obligation is the present value of expected payments for health insurance coverage, $102,000 as of December 27, 2019 and $122,000 as of December 28, 2018. Variable Interest Entities On March 4, 2016, the Company and the Company’s wholly-owned subsidiary, WES acquired substantially all of the assets of Genesys and assumed certain specified liabilities of Genesys (collectively, the “Purchase”) pursuant to an Asset Purchase and Merger Agreement, dated as of February 26, 2016 (the “Agreement”), by and among Willdan Group, Inc., WES, WESGEN (as defined below), Genesys and Ronald W. Mineo (“Mineo”) and Robert J. Braun (“Braun” and, together with Mineo, the “Genesys Shareholders”). On March 5, 2016, pursuant to the terms of the Agreement, WESGEN, Inc., a non-affiliated corporation (“WESGEN”), merged (the “Merger” and, together with the Purchase, the “Acquisition”) with Genesys, with Genesys remaining as the surviving corporation. Genesys was acquired to strengthen the Company’s power engineering capability in the northeastern U.S., and also to increase client exposure and experience with universities. Genesys continues to be a professional corporation organized under the laws of the State of New York, wholly-owned by one or more licensed engineers. Pursuant to New York law, the Company does not own capital stock of Genesys. The Company has entered into an agreement with the Shareholder of Genesys pursuant to which the Shareholder will be prohibited from selling, transferring or encumbering the Shareholder’s ownership interest in Genesys without the Company’s consent. Notwithstanding the Company’s rights regarding the transfer of Genesys’s stock, the Company does not have control over the professional decision making of Genesys’s engineering services. The Company has entered into an administrative services agreement with Genesys pursuant to which WES will provide Genesys with ongoing administrative, operational and other non-professional support services. Genesys pays WES a service fee, which consists of all of the costs incurred by WES to provide the administrative services to Genesys plus ten percent of such costs, as well as any other costs that relate to professional service supplies and personnel costs. As a result of the administrative services agreement, the Company absorbs the expected losses of Genesys through its deferral of Genesys’s service fees owed to WES. The Company manages Genesys and has the power to direct the activities that most significantly impact Genesys’s performance, in addition to being obligated to absorb expected losses from Genesys. Accordingly, the Company is the primary beneficiary of Genesys and consolidates Genesys as a VIE. In addition, the Company concluded there is no noncontrolling interest related to the consolidation of Genesys because the Company determined that (i) the shareholder of Genesys does not have more than a nominal amount of equity investment at risk, (ii) WES absorbs the expected losses of Genesys through its deferral of Genesys’s service fees owed to WES and the Company has, since entering into the administrative services agreement, had to continuously defer service fees for Genesys, and (iii) the Company believes Genesys will continue to have a shortfall on payment of its service fees for the foreseeable future, leaving no expected residual returns for the shareholder. As of December 27, 2019, the Company had one VIE — Genesys.

SEGMENT INFORMATION

12 Months Ended

Dec. 27, 2019

SEGMENT INFORMATION

SEGMENT INFORMATION

9. SEGMENT AND GEOGRAPHICAL INFORMATION

Segment Information

During the three months ended March 30, 2018, the Company revised its segment reporting to conform to changes in its internal management reporting. As a result, beginning with the three months ended March 30, 2018, the Company’s two segments are Energy and Engineering and Consulting, and the Company’s chief operating decision maker, which continues to be its chief executive officer, receives and reviews financial information in this format. Accordingly, segment information has been revised for comparison purposes for all periods presented in the accompanying consolidated financial statements.

There were no intersegment sales in any of the three fiscal years ended December 27, 2019. The Company’s chief operating decision maker evaluates the performance of each segment based upon income or loss from operations before income taxes. Certain segment asset information including expenditures for long‑lived assets has not been presented as it is not reported to or reviewed by the chief operating decision maker. In addition, enterprise‑wide service line contract revenue is not included as it is impracticable to report this information for each group of similar services.

Financial information with respect to the reportable segments and reconciliation to the amounts reported in the Company’s consolidated financial statements follows:


			Engineering		Unallocated				Consolidated
	Energy		& Consulting		Corporate		Intersegment		Total
	(in thousands)
Fiscal Year 2019
Contract revenue	$	370,715	$	72,384	$	—	$	—	$	443,099
Depreciation and amortization		13,703		1,324		—		—		15,027
Interest expense		32		—		4,868		—		4,900
Segment profit (loss) before income tax expense		11,971		8,839		(16,154)		—		4,656
Income tax (benefit) expense		3,308		2,442		(5,935)		—		(185)
Net income (loss)		8,664		6,397		(10,220)		—		4,841
Segment assets (1)		314,324		23,690		125,029		(23,130)		439,913
Fiscal Year 2018
Contract revenue	$	196,833	$	75,419	$	—	$	—	$	272,252
Depreciation and amortization		5,274		786		—		—		6,060
Interest expense		312		388		—		—		700
Segment profit (loss) before income tax expense		8,959		7,589		(4,387)		—		12,161
Income tax (benefit) expense		1,570		1,330		(769)		—		2,131
Net income (loss)		7,390		6,259		(3,619)		—		10,030
Segment assets (1)		252,124		20,402		51,515		(23,130)		300,911
Fiscal Year 2017
Contract revenue	$	199,609	$	73,743	$	—	$	—	$	273,352
Depreciation and amortization		3,145		804		—		—		3,949
Interest expense		(90)		(21)		—		—		(111)
Segment profit before income tax expense		5,589		9,054		(952)		—		13,691
Income tax expense (benefit)		638		1,033		(109)		—		1,562
Net income		4,951		8,021		(843)		—		12,129
Segment assets (1)		65,872		20,774		74,656		(23,130)		138,172

⁽¹⁾

Segment assets are presented net of intercompany receivables.

The following tables provides information about disaggregated revenue by contract type, client type and geographical region:


	2019
	Energy		Engineering and Consulting		Total
	(in thousands)
Contract Type
Time-and-materials	$	18,625	$	54,560	$	73,185
Unit-based		272,978		14,391		287,369
Fixed price		79,112		3,433		82,545
Total	$	370,715	$	72,384	$	443,099

Client Type
Commercial	$	39,311	$	4,895	$	44,206
Government		57,020		67,049		124,069
Utilities		274,384		440		274,824
Total	$	370,715	$	72,384	$	443,099

Geography (1)
Domestic	$	370,715	$	72,384	$	443,099


	2018
	Energy		Engineering and Consulting		Total
	(in thousands)
Contract Type
Time-and-materials	$	13,790	$	59,744	$	73,534
Unit-based		113,749		13,300		127,049
Fixed price		69,294		2,375		71,669
Total	$	196,833	$	75,419	$	272,252

Client Type
Commercial	$	20,715	$	4,882	$	25,597
Government		62,897		70,091		132,988
Utilities		113,221		446		113,667
Total	$	196,833	$	75,419	$	272,252

Geography (1)
Domestic	$	196,833	$	75,419	$	272,252

⁽¹⁾

Revenue from our foreign operations were immaterial for fiscal year 2019. For prior fiscal years presented, we did not have any foreign revenues.

In accordance with ASU 2016-10, the Company adopted ASC 606 utilizing a modified retrospective approach. As such, fiscal year 2017 comparative information is not presented.

The following sets forth the assets that are included in Unallocated Corporate as of December 27, 2019 and December 28, 2018.


	2019		2018
	(in thousands)
Assets:
Cash and cash equivalents	$	84,277	$	14,863
Accounts Receivable, net		(108)		(1,826)
Prepaid expenses		1,912		1,606
Intercompany receivables		125,126		135,507
Goodwill		2		2
Other receivables		3,915		201
Equipment and leasehold improvements, net		1,637		1,180
Investments in subsidiaries		23,130		23,130
ROU Assets		1,141		—
Other		606		963
Deferred income taxes		9,312		12,321
	$	250,950	$	187,947

Geographical Information

Substantially all of the Company’s consolidated revenue was derived from its operations in the U.S. The Company operates through a nationwide network of offices spread across 24 states and the District of Columbia.

In connection with the Company’s acquisition of E3, Inc. in October 28, 2019, the Company expanded its operations into Canada. Revenues from the Company’s Canadian operations were not material for fiscal year 2019.

Customer Concentration

For fiscal years 2019, 2018, and 2017, the Company’s top 10 customers accounted for 50.6%, 56.9%, and 64.4%, respectively, of the Company’s consolidated contract revenue. During fiscal years 2019, 2018, and 2017, the Company had individual customers that accounted for more than 10% of its consolidated contract revenues. For fiscal year 2019, the Company derived 29.1% of its consolidated contract revenue from two customers, Consolidated Edison of New York and the Los Angeles Department of Water and Power. For fiscal year 2018, the Company derived 19.0% of its consolidated contract revenue from one customer, Consolidated Edison of New York. For fiscal year 2017, the Company derived 38.0% of its consolidated contract revenue from two customers, Consolidated Edison of New York and the Dormitory Authority-State New York.

On a segment basis, the Company also had individual customers that accounted for more than 10% of its segment contract revenues. For fiscal year 2019, the Company derived 34.7% of its Energy segment revenues from two customers, Consolidated Edison of New York and the Los Angeles Department of Water and Power, and it derived 25.0% of its Engineering and Consulting segment revenues from one customer, the City of Elk Grove. For 2018, the Company derived 18.5% of its Energy segment revenues from one customer, Consolidated Edison of New York, and it derived 10% of its Engineering and Consulting segment revenues from three customers, the City of Elk Grove, City of Long Beach and Ygrene. For 2017, Company derived 22.3% of its Energy segment revenues from one customer, Dormitory Authority-State of New York (“DASNY”) and it derived 10% of its Engineering and Consulting segment revenues from seven customers, the City of Elk Grove, City of Rialto, City of El Monte, City of Long Beach, City of San Bernardino, City of Westlake Village and City of Lakewood.

The Company’s largest clients are based in California and New York. In fiscal year 2019, 2018, and 2017, services provided to clients in California accounted for 41.1%, 35.0%, and 30.0%, respectively, of the Company’s contract revenue and services provided to clients in New York accounted for 27.2%, 29.0%, 46.0%, respectively, of the Company’s contract revenue.

SHAREHOLDERS’ EQUITY

12 Months Ended

Dec. 27, 2019

SHAREHOLDERS’ EQUITY

SHAREHOLDERS’ EQUITY

10. SHAREHOLDERS’ EQUITY

Stock Incentive Plans

As of December 27, 2019, the Company had two share‑based compensation plans, which are described below. The Company may no longer grant awards under the 2006 Stock Incentive Plan.

2006 Stock Incentive Plan

In June 2006, the Company’s board of directors adopted the 2006 Stock Incentive Plan (“2006 Plan”) and it received stockholder approval. The Company re‑submitted the 2006 Plan to its stockholders for post‑IPO approval at the 2007 annual meeting of the stockholders and it was approved. The 2006 Plan terminated in June 2016 and no additional awards were granted under the 2006 Plan after the Company’s shareholders approved the 2008 Plan (as defined below) in June 2008. The 2006 Plan had 300,000 shares of common stock reserved for issuance to the Company’s directors, executives, officers, employees, consultants and advisors. Approximately 70,333 shares that were available for award grant purposes under the 2006 Plan have become available for grant under the 2008 Plan following shareholder approval of the 2008 Plan. Options granted under the 2006 Plan could be “non‑statutory stock options” which expire no more than 10 years from the date of grant or “incentive stock options” as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). Upon exercise of non‑statutory stock options, the Company is generally entitled to a tax deduction on the exercise of the option for an amount equal to the excess over the exercise price of the fair market value of the shares at the date of exercise. The Company is generally not entitled to any tax deduction on the exercise of an incentive stock option.

As of December 27, 2019, there were no outstanding stock options under the 2006 Plan.

Amended and Restated 2008 Performance Incentive Plan

In March 2008, the Company’s board of directors adopted the 2008 Performance Incentive Plan (“2008 Plan”), and it received stockholder approval at the 2008 annual meeting of the stockholders in June 2008. The 2008 Plan was originally set to terminate on April 17, 2027 but received a ten-year extension at the 2019 annual meeting of the stockholders. The 2008 Plan is currently scheduled to expire on April 18, 2029. The 2008 Plan initially had 450,000 shares of common stock reserved for issuance (not counting any shares originally available under the 2006 Plan that “poured over.”) At the 2010, 2012, 2016, 2017, 2019 annual meetings of the stockholders, the stockholders approved 350,000, 500,000, 500,000, 875,000 and 955,000 share increases, respectively, to the 2008 Plan. The maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2008 Plan can also be increased by any shares subject to stock options granted under the 2006 Plan and outstanding as of June 9, 2008 which expire, or for any reason are cancelled or terminated, after June 9, 2008 without being exercised. The 2008 Plan currently has 418,000 shares of common stock reserved for issuance. Awards authorized by the 2008 Plan include stock options, stock appreciation rights, restricted stock, stock bonuses, stock units, performance stock, and other share‑based awards. No participant may be granted an option to purchase more than 300,000 shares in any fiscal year. Options generally may not be granted with exercise prices less than fair market value at the date of grant, with vesting provisions and contractual terms determined by the compensation committee of the board of directors on a grant-by-grant basis, subject to the minimum vesting provisions contained in the 2008 Plan. Options granted under the 2008 Plan may be “nonqualified stock options” or “incentive stock options” as defined in Section 422 of the Internal Revenue Code. The maximum term of each option shall be 10 years. Upon exercise of nonqualified stock options, the Company is generally entitled to a tax deduction on the exercise of the option for an amount equal to the excess over the exercise price of the fair market value of the shares at the date of exercise. The Company is generally not entitled to any tax deduction on the exercise of an incentive stock option. For awards other than stock options, the Company is generally entitled to a tax deduction at the time the award holder recognizes income with respect to the award equal to the amount of compensation income recognized by the award holder. Options and other awards provide for accelerated vesting if there is a change in control (as defined in the 2008 Plan) and the outstanding awards are not substituted or assumed in connection with the transaction.

Through December 27, 2019, outstanding awards granted, net of forfeitures and exercises, under the 2008 Plan consisted of 509,000 shares of incentive stock options, 598,000 shares of non-statutory stock options, 101,000 shares of restricted stock awards and 326,000 shares of performance-based restricted stock units.

Employee Stock Purchase Plan

Amended and Restated 2006 Employee Stock Purchase Plan

The Company adopted its Amended and Restated 2006 Employee Stock Purchase Plan (“ESPP”) to allow eligible employees the right to purchase shares of common stock, at semi‑annual intervals, with their accumulated payroll deductions. The plan received stockholder approval in June 2006. The Company re‑submitted the plan to its stockholders for post‑IPO approval at the 2007 annual stockholders’ meeting where approval was obtained. The ESPP initially had 300,000 shares of common stock reserved for issuance. At the 2017 annual meeting of the stockholders, the stockholders approved an 825,000 share increase to the ESPP. A total of 1,125,000 shares of the Company’s common stock have been reserved for issuance under the plan.

The plan has semi‑annual periods beginning on each January 1 and ending on each June 30 and beginning on each July 1 and ending on each December 31. The first offering period commenced on February 10, 2007 and ended on June 30, 2007. Participants make contributions under the plan only by means of payroll deductions each payroll period. The rate of payroll contributions elected by a Participant may not be less than one percent (1%) nor more than ten percent (10%) of the Participant’s Earnings for each payroll period, and only whole percentages may be elected. The accumulated contributions are applied to the purchase of shares. Shares are purchased under the plan on or as soon as practicable after, the last day of the offering period. The purchase price per share equals 85% of the fair market value of a share on the lesser price of the share on the first day or last day of the offering period. The Company’s Amended and Restated 2006 Employee Stock Purchase Plan is a compensatory plan.

As of December 27, 2019, there were 679,000 shares available for issuance under the plan.

Stock-based Compensation Expense

The compensation expense that has been recognized for stock options, restricted stock awards (“RSA”), performance-based restricted stock units (“PBRSU”), and ESPP issued under these plans was $12,112,000, $6,262,000 and $2,774,000 for fiscal years 2019, 2018 and 2017, respectively.

The total unrecognized compensation expense related to nonvested stock options was $1,489,000, $3,598,000 and $3,514,000 for fiscal years 2019, 2018 and 2017, respectively.

The total unrecognized compensation expense related to RSAs was $1,502,000, $1,012,000, and $1,162,000 for fiscal years 2019, 2018 and 2017, respectively.

The total unrecognized compensation expense related to PBRSUs was $21,515,000 and $12,254,000 for the fiscal year 2019, and 2018. That expense is expected to be recognized over a weighted-average period of 1.07 years. There was no unrecognized compensation expense related to PBRSUs for fiscal year 2017.

There were no options granted that were immediately vested during the fiscal years 2019, 2018 and 2017.

Summary of Stock Option Activity

A summary of option activity under the 2006 Plan and 2008 Plan as of December 27, 2019 and changes during the fiscal years ended December 27, 2019, December 28, 2018 and December 29, 2017 is presented below. The intrinsic value of the fully‑vested options is $15,169,000 based on the Company’s closing stock price of $31.21 and the average exercise price of outstanding options on December 27, 2019.


				Weighted-
		Weighted-		Average
		Average		Remaining
		Exercise		Contractual
	Options	Price		Term
	(in thousands)			(in years)
Outstanding at December 28, 2018	1,252	$	16.87	6.62
Granted	—		—	—
Exercised	(115)		8.08	—
Forfeited or expired	(13)		14.97	—
Outstanding at December 27, 2019	1,124	$	17.80	6.06
Vested and expected to vest at December 27, 2019	1,124	$	17.80	6.06
Exercisable at December 27, 2019	958	$	15.48	5.68


				Weighted-
		Weighted-		Average
		Average		Remaining
		Exercise		Contractual
	Options	Price		Term
	(in thousands)			(in years)
Outstanding at December 29, 2017	1,207	$	14.04	7.02
Granted	158		31.54	—
Exercised	(85)		7.85	—
Forfeited or expired	(28)		5.07	—
Outstanding at December 28, 2018	1,252	$	16.87	6.62
Vested and expected to vest at December 28, 2018	1,252	$	16.87	6.62
Exercisable at December 28, 2018	838	$	12.20	5.58


				Weighted-
		Weighted-		Average
		Average		Remaining
		Exercise		Contractual
	Options	Price		Term
	(in thousands)			(in years)
Outstanding at December 30, 2016	1,311	$	10.15	6.69
Granted	199		30.28	—
Exercised	(271)		7.02	—
Forfeited or expired	(32)		15.65	—
Outstanding at December 29, 2017	1,207	$	14.04	7.02
Vested and expected to vest at December 29, 2017	1,207	$	14.04	7.02
Exercisable at December 29, 2017	660	$	8.84	5.58

A summary of the status of the Company’s nonvested options and changes in nonvested options is presented below:


		Weighted-
		Average
		Grant-Date
	Options	Fair Value
	(in thousands)
Nonvested at December 28, 2018	414	$	8.69
Granted	—		—
Vested	(242)		9.43
Forfeited	(6)		10.87
Nonvested at December 27, 2019	166		12.15


		Weighted-
		Average
		Grant-Date
	Options	Fair Value
	(in thousands)
Nonvested at December 29, 2017	547	$	6.43
Granted	158		12.73
Vested	(263)		7.29
Forfeited	(28)		5.07
Nonvested at December 28, 2018	414		8.69


		Weighted-
		Average
		Grant-Date
	Options	Fair Value
	(in thousands)
Nonvested at December 30, 2016	653	$	4.75
Granted	199		12.23
Vested	(273)		6.68
Forfeited	(32)		15.65
Nonvested at December 29, 2017	547		6.43

Summary of Restricted Stock Activity

A summary of restricted stock activity under the 2008 Plan as of December 27, 2019 is presented below:


		Weighted-
		Average
	Restricted Stock	Grant Date Fair Value
	(in thousands)
Outstanding at December 28, 2018	64	$	22.28
Awarded	37		35.60
Vested	(43)		18.90
Forfeited	—		—
Outstanding at December 27, 2019	58	$	33.33

Outstanding at December 29, 2017	87	$	17.67
Awarded	22		28.17
Vested	(45)		16.09
Forfeited	—		—
Outstanding at December 28, 2018	64	$	22.28

Outstanding at December 30, 2016	99	$	11.37
Awarded	28		31.53
Vested	(40)		33.02
Forfeited	—		—
Outstanding at December 29, 2017	87	$	17.67

Summary of Performance-Based Restricted Stock Unit Activity

A summary of performance-based restricted stock unit activity under the 2008 Plan as of December 27, 2019 is presented below:


	Performance-Based	Weighted-Average
	Restricted Stock Unit	Grant Date Fair Value
	(in thousands)
Outstanding at December 28, 2018	280	$	21.94
Awarded	329		28.99
Released	(175)		21.94
Forfeited	(3)		27.28
Outstanding at December 27, 2019	431	$	27.28

Outstanding at December 29, 2017	—	$	—
Awarded	280		21.94
Vested	—		—
Forfeited	—		—
Outstanding at December 28, 2018	280	$	21.94

Fair Value Valuation Assumptions

Stock Option Grants

The fair value of each option is calculated using the Black‑Scholes option valuation model that uses the assumptions noted in the following table. Expected volatility is based upon historical volatility of “guideline companies” since the length of time the Company’s shares have been publicly traded is equal to the contractual term of the options. The expected term of the option, taking into account both the contractual term of the option and the effects of employees’ expected exercise and expected post‑vesting termination behavior is estimated based upon the simplified method. Under this approach, the expected term is presumed to be the mid‑point between the vesting date and the end of the contractual term. The risk‑free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The assumptions are as follows:


	2019		2018					2017
Expected volatility	34	%	37	%	-	38	%	38	%	-	41	%
Expected dividends	0	%				0	%				0	%
Expected term (in years)	6					6					6
Risk-free rate	2.49	%	2.65	%	-	2.78	%	1.86	%	-	2.08	%

RSA and PBRSU Grants

The Company’s restricted stock awards are valued on the closing price of the Company’s common stock on the date of grant and typically vest over a three-year period.

The Company’s performance-based restricted stock unit awards are valued on the closing price of the Company’s common stock on the date of grant and vest over performance period. Under the Company’s new performance-based restricted stock unit (“PBRSU”) design, 50% of each award will vest based upon the Company’s EBITDA performance over a two-year and four-year performance periods (“EBITDA Units”), and the remaining 50% of each award will vest based upon the Company’s earnings per share performance over a two-year and four-years-performance periods (“EPS Units”) for awards granted for 2019 and 2018, respectively. The Company must achieve a 10% growth rate for the threshold number of EBITDA Units and EPS Units to vest for any performance year, and the target number of EBITDA Units and EPS Units will only vest in any performance year if the Company is able to achieve a 20% growth rate. The Compensation Committee determined to move away from its historical practice of granting only time-based equity awards and introduced the PBRSUs in order to further align the interests of the Company’s executives with those of shareholders by strengthening the relationship between executive pay and the Company’s performance against two critical performance metrics that the Company believes will drive value creation for its shareholders.

ESPP

The fair value of ESPP purchase rights issued is calculated using the Black‑Scholes valuation model that uses the assumptions noted in the following table. Purchase right under the ESPP are generally granted on either January 1 or July 1 of each year. The assumptions are as follows:


	2019			2018			2017
Weighted-average expected term (in years)		.5			.5			.5
Risk-Free interest Rate		2.3	%		1.4	%		0.65	%
Stock Price Volatility		35.6	%		37.9	%		40.7	%
Dividend yield		0	%		0	%		0	%
Fair Value	$	33.01		$	26.86		$	23.02

INCOME TAXES

12 Months Ended

Dec. 27, 2019

INCOME TAXES

INCOME TAXES

11. INCOME TAXES

The provision for income taxes is comprised of:


	Fiscal Year
	2019		2018		2017
	(in thousands)
Current federal taxes	$	(548)	$	3,632	$	635
Current state taxes		551		1,389		306
Deferred federal taxes		(159)		(2,539)		431
Deferred state taxes		(29)		(351)		190
	$	(185)	$	2,131	$	1,562

The provision for income taxes reconciles to the amounts computed by applying the statutory federal tax rate of 21% for fiscal years 2019 and 2018, and 34% for fiscal year 2017, to the Company’s income before income taxes. The sources and tax effects of the differences for fiscal years 2019, 2018 and 2017 are as follows:


	2019		2018		2017
	(in thousands)
Computed “expected” federal income tax expense	$	977	$	2,554	$	4,655
Permanent differences		163		77		(61)
Nondeductible Executive Compensation		688		—		—
Stock options and disqualifying dispositions		(731)		(354)		(1,629)
Tax Act - federal rate change		—		—		(1,277)
Energy efficient building deduction		(1,291)		(919)		—
Current and deferred state income tax expense, net of federal benefit		466		815		287
Change in valuation allowances on deferred tax assets		—		—		15
Federal deferred tax adjustments		231		220		(441)
Adjustment for uncertain tax positions		(282)		61		363
Research and development tax credit		(510)		(313)		(188)
Adjustment to prior earn-out liability		—		(198)		—
Non-deductible transaction expenses		—		203		—
Other		27		(15)		(162)
True up income tax accounts		77		—		—
	$	(185)	$	2,131	$	1,562

Differences between the Company’s effective income tax rate and what would be expected if the federal statutory rate was applied to income before income tax from continuing operations are primarily due to state income tax expense, research and development tax credits, energy efficient building deductions, stock options and disqualifying dispositions. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law, which, among other items, lowered the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of the Tax Act, the Company recorded a one-time decrease in deferred tax expense of $1.3 million for the fiscal quarter ended December 29, 2017 to account for the remeasurement of the Company’s deferred tax assets and liabilities on the enactment date.

Shortly after the Tax Act was enacted, the Securities and Exchange Commission issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) to address the application of generally accepted accounting principles in the United States of America, or GAAP, and directing taxpayers to consider the impact of the Tax Act as “provisional” when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for the change in tax law. In accordance with SAB 118, the Company recognized the provisional tax impacts during fiscal year 2017. As of December 28, 2018, the Company’s accounting for the Tax Act was complete. An adjustment of $0.2 million additional deferred tax expense was recorded due to the corporate tax rate change impact on adjustments to temporary differences that were estimated at the time of the tax provision and finalized for the tax return.

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets and liabilities are as follows:


	December 27,		December 28,
	2019		2018
	(in thousands)
Deferred tax assets:
Accounts receivable allowance	$	315	$	122
Other accrued liabilities		2,124		2,714
Federal and state net operating losses		18,717		20,569
Lease liability		6,467		—
Stock compensation		3,381		2,167
Adjustments to fair value of assets		79		733
Other		622		173
		31,705		26,478
Valuation allowance		(86)		(86)
Net deferred tax assets	$	31,619	$	26,392
Deferred tax liabilities:
Deferred revenue	$	(5,031)	$	(5,702)
Fixed assets		(618)		(116)
Intangible assets		(10,077)		(8,041)
Lease right-of-use assets		(6,127)		—
Other		(454)		(212)
		(22,307)		(14,071)
Net deferred tax asset	$	9,312	$	12,321

At December 27, 2019, the Company had federal and state operating loss carryovers of $72.7 million and $58.0 million, respectively. The carryovers expire through 2039.

During each fiscal year, management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize existing deferred tax assets. For fiscal years 2019 and 2018, the Company ultimately determined that it was more-likely-than-not that the entire California net operating loss will not be utilized prior to expiration. Significant pieces of objective evidence evaluated included the Company’s history of utilization of California net operating losses in prior years for each of the Company’s subsidiaries, as well as the Company’s forecasted amount of net operating loss utilization for certain members of the combined group. As of December 27, 2019 and December 28, 2018, the Company had a valuation allowance in the amount of $86,000, respectively, related to California net operating losses.

During the fiscal year ending December 27, 2019, the Company decreased its recorded liability for uncertain tax positions to $142,000. This decrease resulted from the expiration of federal uncertain tax positions during fiscal year 2019. The Company may be subject to examination by the Internal Revenue Service (“IRS”) for calendar years 2016 through 2019. The Company may also be subject to examination on certain state and local jurisdictions for the years 2015 through 2019.

The Company's policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. Following is reconciliation of beginning and ending amounts of unrecognized tax benefits:


	Amount
	(in thousands)
Balance as of December 28, 2018	$	424
Additions based on tax positions related to the current year		—
Additions for tax positions of prior years		5
Reductions for tax positions related to the current year		—
Reductions for tax positions of prior years		(287)
Balance as of December 27, 2019	$	142

During the year ended December 27, 2019, the Internal Revenue Service continued its audit of the Company’s tax return for the fiscal year ended December 30, 2016. The Company has not determined the impact of this examination due to the audit process having not been completed.

EARNINGS PER SHARE (EPS)

12 Months Ended

Dec. 27, 2019

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

12. EARNINGS PER SHARE (“EPS”)

Basic EPS is computed by dividing net income available to common stockholders by the weighted‑average number of common shares outstanding. Diluted EPS is computed by dividing net income by the weighted‑average number of common shares outstanding and dilutive potential common shares for the period. Potential common shares include the weighted‑average dilutive effects of outstanding stock options and restricted stock awards using the treasury stock method.

The following table sets forth the number of weighted‑average common shares outstanding used to compute basic and diluted EPS:


	Fiscal Year
	2019		2018		2017
	(in thousands, except per share amounts)
Net income	$	4,841	$	10,030	$	12,129
Weighted-average common shares outstanding		11,162		9,264		8,541
Effect of dilutive stock options and restricted stock awards		604		499		614
Weighted-average common shares outstanding-diluted		11,766		9,763		9,155
Earnings per share:
Basic	$	0.43	$	1.08	$	1.42
Diluted	$	0.41	$	1.03	$	1.32

For the fiscal year ended December 27, 2019, 155,300 options were excluded from the calculation of dilutive potential common shares, compared to 247,800 and 114,600 options, for 2018 and 2017, respectively. These options were not included in the computation of dilutive potential common shares because the assumed proceeds per share exceeded the average market price per share for the respective periods. Accordingly, the inclusion of these options would have been anti‑dilutive.

BUSINESS COMBINATIONS

12 Months Ended

Dec. 27, 2019

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS

13. BUSINESS COMBINATIONS

Acquisition of E3, Inc.

On October 28, 2019, the Company, through its wholly-owned subsidiary, WES acquired all of the capital stock of Energy and Environmental Economics, Inc. (“E3, Inc.”), pursuant to the terms of a stock purchase agreement (the “Stock Purchase Agreement”) by and among the Company, WES, E3, Inc., each of the stockholders of E3, Inc. (the “E3, Inc. Stockholders”) and Ren Orans, as seller representative of the E3, Inc. Stockholders. E3, Inc. is an energy consulting firm that helps utilities, regulators, policy makers, developers, and investors make strategic decisions as they implement new public policies, respond to technological advances, and address customers’ shifting expectations in clean energy. The Company believes that E3 will provide Willdan and our clients visibility into future market trends and position us to advise clients on upcoming policy, electrification, and decarbonization. E3, Inc.’s financial information is included within the Energy segment beginning in the fourth quarter of fiscal year 2019. The Company expects to finalize the purchase price allocation with respect to this transaction during the fourth quarter of fiscal 2020.

The Company agreed to pay up to $44.0 million for the purchase of all of the capital stock of E3, Inc., which purchase price consists of (i) $27.0 million in cash paid on the E3, Inc. Closing Date (subject to holdbacks and adjustments), (ii) $5.0 million in shares of the Company’s common stock, based on the volume-weighted average price per share of the Company’s common stock for the ten trading days immediately following, but not including, the E3, Inc. Closing Date and (iii) up to $12.0 million in cash if E3, Inc. exceeds certain financial targets during the three years after the E3, Inc. Closing Date, as more fully described below (such potential payments of up to $12.0 million, being referred to as “Earn-Out Payments” and $12.0 million in respect thereof, being referred to as the “Maximum Payout”).

The amount of the Earn-Out Payments to be paid will be determined based on E3, Inc.’s earnings before interest, taxes, depreciation and amortization (“EBITDA”). The E3, Inc. Stockholders will receive Earn-Out Payments in each of the three years after the E3, Inc. Closing Date (the “Earn-Out Period”) based on the amount by which E3, Inc.’s EBITDA exceeds certain targets. The amounts due to the E3, Inc. Stockholders as Earn-Out Payments will in no event, individually or in the aggregate, exceed the Maximum Payout. Earn-Out Payments will be made in annual installments for each of the three years of the Earn-Out Period. In addition, the Earn-Out Payments will be subject to certain subordination provisions in favor of the lenders under the Company’s Credit Agreement.

The Purchase Agreement also contains customary representations and warranties regarding WES, the Company, E3, Inc. and the E3, Inc. Stockholders, indemnification provisions and other provisions customary for transactions of this nature.

The Company borrowed $30.0 million under its Delayed Draw Term Loan on October 28, 2019 to fund the $27.0 million cash payment paid on the E3, Inc. Closing Date.

The acquisition was accounted for as a business combination in accordance with ASC 805. Under ASC 805, the Company recorded the acquired assets and assumed liabilities at their estimated fair value with the excess allocated to goodwill. Goodwill represents the value the Company expects to achieve through the operational synergies, the expansion into new markets and the acquired company’s assembled work force. The Company estimates that the entire $22.0 million of goodwill resulting from the acquisition will be tax deductible.

Preliminary consideration for the acquisition includes the following:


	E3, Inc.
		(in thousands)
Cash paid	$	25,217
Other working capital adjustment		1,973
Issuance of common stock		5,000
Contingent Consideration		7,000
Total consideration	$	39,190

The following table summarizes the preliminary amounts for the acquired assets recorded at their estimated fair value as of the acquisition date:


	E3, Inc.
		(in thousands)
Current assets	$	5,316
Non-current assets (1)		341
Cash		2,264
Equipment and leasehold improvements, net		409
Right-of-use assets		6,766
Current lease liability		(593)
Non-current lease liability		(7,870)
Liabilities		(3,138)
Backlog		2,500
Customer relationships		8,300
Tradename		2,000
Non-compete		900
Goodwill		21,995
Net assets acquired	$	39,190

(1)

Excluded from non-current assets are equipment and leasehold improvements, net, right-of-use assets, customer relationships, tradename, backlog and goodwill.

There were $0.1 million in acquisition related costs associated with E3, Inc. included in other general and administrative expenses in the consolidated statements of comprehensive income for the fiscal year ended December 27, 2019.

During the fiscal 2019, the acquisition of E3, Inc. contributed $3.7 million in revenue and $1.2 million of income from operations.

Acquisition of Onsite Energy Corporation

On July 2, 2019, the Company acquired substantially all of the assets and liabilities of Onsite Energy Corporation (“Onsite Energy”), an energy efficiency services and project implementation firm that specializes in energy upgrades and commissioning for industrial facilities. The Company believes the acquisition will expand its presence in the California-based industrial energy management services. Pursuant to the terms of the Asset Purchase Agreement, dated July 2, 2019, by and between WES and Onsite Energy, WES will pay a maximum aggregate purchase price of $26.4 million, subject to certain holdback and working capital adjustments, to be paid in cash. Onsite Energy’s financial information is included within the Energy segment. The Company expects to finalize the purchase price allocation with respect to this transaction during the second quarter of fiscal year 2020.

The acquisition was accounted for as a business combination in accordance with ASC 805. Under ASC 805, the Company recorded the acquired assets and assumed liabilities at their estimated fair value with the excess allocated to goodwill. Goodwill represents the value the Company expects to achieve through the operational synergies, the expansion into new markets and the acquired company’s assembled work force. The Company estimates that the entire $6.2 million of goodwill resulting from the acquisition will be tax deductible.

Preliminary consideration for the acquisition includes the following:


	Onsite Energy
		(in thousands)
Cash paid	$	24,411
Other working capital adjustment		494
Total consideration	$	24,905

The following table summarizes the preliminary amounts for the acquired assets recorded at their estimated fair value as of the acquisition date:


	Onsite Energy
		(in thousands)
Current assets	$	22,254
Non-current assets (1)		10
Equipment and leasehold improvements, net		39
Right-of-use assets		828
Current lease liability		(168)
Non-current lease liability		(660)
Liabilities		(12,222)
Backlog		800
Customer relationships		7,374
Tradename		500
Goodwill		6,150
Net assets acquired	$	24,905

(1)

Excluded from non-current assets are equipment and leasehold improvements, net, right-of-use assets, customer relationships, tradename, backlog and goodwill.

During fiscal year 2019, the Company made adjustments, primarily related to other working capital, to the consideration paid for Onsite Energy which resulted in an adjustment to the preliminary purchase price allocation of Onsite Energy. The adjustments resulted in a decrease in current assets of $0.2 million and an increase of $0.9 million in the carrying value of goodwill.

There were $0.3 million in acquisition related costs associated with Onsite Energy included in other general and administrative expenses in the consolidated statements of comprehensive income for the fiscal year ended December 27, 2019.

During the fiscal 2019, the acquisition of Onsite Energy contributed $7.7 million in revenue and $1.8 million of income from operations.

Acquisition of The Weidt Group

On March 8, 2019, the Company acquired substantially all of the assets of the energy practice division of The Weidt Group Inc. (“The Weidt Group”). The Company believes the acquisition will expand its presence in the upper Midwest and better position the Company to help utilities make their grids more resilient. Pursuant to the terms of the Asset Purchase Agreement, dated March 8, 2019, by and among the Company, WES and The Weidt Group, WES paid a cash purchase price of $22.1 million, inclusive of working capital adjustments. The Weidt Group’s financial information is included within the Energy segment. The Company expects to finalize the purchase price allocation with respect to this transaction during the first quarter of 2020.

The acquisition was accounted for as a business combination in accordance with ASC 805. Under ASC 805, the Company recorded the acquired assets and assumed liabilities at their estimated fair value with the excess allocated to goodwill. Goodwill represents the value the Company expects to achieve through the operational synergies, the expansion into new markets and the acquired company’s assembled work force. The Company estimates that the entire $11.5 million of goodwill resulting from the acquisition will be tax deductible.

Consideration for the acquisition includes the following:


	The Weidt Group
		(in thousands)
Cash paid	$	22,136
Other working capital adjustment		-
Total consideration	$	22,136

The following table summarizes the preliminary amounts for the acquired assets recorded at their estimated fair value as of the acquisition date:


	The Weidt Group
		(in thousands)
Current assets	$	2,317
Non-current assets (1)		25
Equipment and leasehold improvements, net		198
Right-of-use assets		1,730
Current lease liability		(245)
Non-current lease liability		(1,533)
Liabilities		(612)
Backlog		750
Customer relationships		4,240
Tradename		550
Developed technology		3,170
Goodwill		11,546
Net assets acquired	$	22,136

(1)

Excluded from non-current assets are equipment and leasehold improvements, net, right-of-use assets, customer relationships, tradename, developed technology, backlog and goodwill.

During fiscal year 2019, the Company made adjustments, primarily related to other working capital, to the consideration paid for The Weidt Group which resulted in an adjustment to the preliminary purchase price allocation of The Weidt Group. The adjustments resulted in an aggregate increase of $0.9 million in the carrying value of backlog, customer relationships, tradename, developed technology and an aggregate decrease of $1.2 million in the carrying value of liabilities and goodwill. The decrease in the fair value of intangible assets resulted in a reduction of amortization expense of $0.1 million the fiscal year ended December 27, 2019.

There were $0.4 million in acquisition related costs associated with The Weidt Group included in other general and administrative expenses in the condensed consolidated statements of comprehensive income for the fiscal year ended December 27, 2019.

During the fiscal 2019, the acquisition of The Weidt Group contributed $11.4 million in revenue and $1.9 million of income from operations.

Acquisition of Lime Energy

On October 1, 2018, the Company, through two of its wholly-owned subsidiaries, Willdan Energy Solutions (“WES”) and Luna Fruit, Inc., a Delaware corporation and wholly-owned subsidiary of WES (“Merger Sub”), entered into an agreement to acquire all of the outstanding shares of capital stock of Lime Energy Co. (“Lime Energy”), pursuant to an agreement and plan of merger dated October 1, 2018 (the “Merger Agreement”), by and among WES, Merger Sub, Lime Energy, and Luna Stockholder Representative, LLC, as representative of the participating securityholders of Lime Energy. The Company believes the addition of Lime Energy’s capabilities will significantly expand and diversify its client base within the energy efficiency services market and geographic presence across the United States.

On November 9, 2018, the Company completed the acquisition and, pursuant to the Merger Agreement, Merger Sub was merged with and into Lime Energy, with Lime Energy surviving as a wholly-owned indirect subsidiary of the Company. The aggregate purchase price paid in the acquisition was $120.0 million, exclusive of closing holdbacks and adjustments. A portion of the purchase price was deposited into escrow accounts to secure certain potential post-closing obligations of the participating securityholders. The Company paid the purchase price for the acquisition using a combination of cash on hand (including $50.0 million of the $56.4 million in net proceeds received from the Company’s equity offering in October 2018) and proceeds from the Company’s borrowings under its Delayed Draw Term Loan Facility.

The acquisition was accounted for as a business combination in accordance with ASC 805. Under ASC 805, the Company recorded the acquired assets and assumed liabilities at their estimated fair value with the excess allocated to goodwill. Goodwill represents the value the Company expects to achieve through the operational synergies and the expansion into new markets. The Company estimates that the entire $47.7 million of goodwill resulting from the acquisition will not be tax deductible. Consideration for the acquisition includes the following information:


	Lime Energy
		(in thousands)
Cash paid	$	122,439
Other working capital adjustment		-
Total consideration	$	122,439

The following table summarizes the amounts for the acquired assets recorded at their estimated fair value as of the acquisition date:


	Lime Energy
		(in thousands)
Current assets (1)	$	45,401
Non-current assets (2)		10,605
Cash		1,090
Equipment and leasehold improvements, net		1,892
Liabilities		(33,603)
Customer relationships		35,000
Tradename		5,970
Developed technology		7,040
Backlog		1,300
Goodwill		47,744
Net assets acquired	$	122,439

(1)

Excluded from current assets is cash

(2)

Excluded from non-current assets are equipment and leasehold improvements, net, customer relationships, tradename, developed technology, backlog and goodwill.

During fiscal year 2019, the Company made adjustments, primarily related to other working capital, to the consideration paid for Lime Energy which resulted in an adjustment to the preliminary purchase price allocation of Lime Energy. The adjustments resulted in an aggregate increase of $16.2 million in the carrying value of customer relationships and backlog, and an aggregate decrease of $16.2 million in the carrying value of non-current assets, goodwill and developed technology. The increase in the fair value of intangible assets resulted in an additional amortization expense charge of $1.2 million for fiscal 2019.

During the fiscal 2019, the acquisition of Lime Energy contributed $158.7 million in revenue and $3.5 million of income from operations.

There were $0.2 million in acquisition related costs associated with Lime Energy included in other general and administrative expenses in the condensed consolidated statements of comprehensive income for the fiscal year ended December 27, 2019.

The following unaudited pro forma financial information for the fiscal years ended December 27, 2019 and December 28, 2018 assumes that the acquisitions of substantially all of the assets and liabilities of E3, Inc., Onsite Energy and The Weidt Group and that the acquisition of all the outstanding shares of Lime Energy each occurred on the first day of the year prior to the year of acquisition:


	Fiscal Year
	2019		2018
	(in thousands, except per share data)
Pro forma revenue	$	473,655	$	452,082

Pro forma income from operations	$	10,937	$	19,694
Pro forma net income (1)	$	6,161	$	11,934

Earnings per share:
Basic	$	0.55	$	1.09
Diluted	$	0.52	$	1.04

Weighted average shares outstanding:
Basic		11,162		10,990
Diluted		11,766		11,489

(1)

Adjustments to pro forma net income include income from operations, amortization and interest expenses.

This pro forma supplemental information does not purport to be indicative of what the Company’s operating results would have been had this transaction occurred on December 30, 2017 and may not be indicative of future operating results.

During the fiscal year ended December 27, 2019, the acquisition of E3, Inc., Onsite Energy, The Weidt Group and Lime Energy contributed $181.5 million in revenue and $8.4 million of income from operations.

Acquisition of Newcomb Anderson McCormick

On April 30, 2018, the Company, through its wholly-owned subsidiary, WES, acquired all of the outstanding equity interests of Newcomb Anderson McCormick, Inc. (“NAM”). NAM is an energy engineering and consulting company with offices in San Francisco and Los Angeles that provides clients with mechanical engineering expertise and comprehensive energy efficiency programs and services. Pursuant to the terms of the Stock Purchase Agreement, dated April 30, 2018, by and among the Company, WES and NAM, WES will pay NAM shareholders a maximum purchase price of $4.0 million, subject to potential earn-out payments plus working capital adjustments, to be paid in cash. In connection with the Company’s New Credit Facilities (as defined herein), as of October 8, 2018, the earn-out payments to NAM shareholders became subject to certain subordination provisions in favor of BMO, as the Company’s senior secured lender, under the New Credit Facilities. The Company finalized the purchase price allocation with respect to this transaction during the second quarter of 2019. NAM’s financial information is included within the Energy segment.

CONTINGENCIES	12 Months Ended
CONTINGENCIES	Dec. 27, 2019
CONTINGENCIES
CONTINGENCIES	14. CONTINGENCIES Claims and Lawsuits The Company is subject to claims and lawsuits from time to time, including those alleging professional errors or omissions that arise in the ordinary course of business against firms that operate in the engineering and consulting professions. The Company carries professional liability insurance, subject to certain deductibles and policy limits, for such claims as they arise and may from time to time establish reserves for litigation that is considered probable of a loss. In accordance with accounting standards regarding loss contingencies, the Company accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated, and discloses the amount accrued and an estimate of any reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for the Company’s financial statements not to be misleading. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. Because litigation outcomes are inherently unpredictable, the Company’s evaluation of legal proceedings often involves a series of complex assessments by management about future events and can rely heavily on estimates and assumptions. If the assessments indicate that loss contingencies that could be material to any one of the Company’s financial statements are not probable, but are reasonably possible, or are probable, but cannot be estimated, then the Company will disclose the nature of the loss contingencies, together with an estimate of the possible loss or a statement that such loss is not reasonably estimable. While the consequences of certain unresolved proceedings are not presently determinable, and a reasonable estimate of the probable and reasonably possible loss or range of loss in excess of amounts accrued for such proceedings cannot be made, an adverse outcome from such proceedings could have a material adverse effect on the Company’s earnings in any given reporting period. However, in the opinion of the Company’s management, after consulting with legal counsel, and taking into account insurance coverage, the ultimate liability related to current outstanding claims and lawsuits is not expected to have a material adverse effect on the Company’s financial statements.

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 27, 2019

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

15. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The tables below reflect selected quarterly information for the fiscal years ended December 27, 2019 and December 28, 2018.


	Fiscal Three Months Ended
	March 29,		June 28,		September 27,		December 27,
	2019		2019		2019		2019
	(in thousands except per share amounts)
Contract revenue	$	91,793	$	104,396	$	117,494	$	129,416
Income (loss) from operations		(234)		2,773		1,295		5,529
Income tax (benefit) expense		(927)		(70)		(376)		1,188
Net income (loss)		(417)		1,640		416		3,202
Earnings per share:
Basic	$	(0.04)	$	0.15	$	0.04	$	0.28
Diluted	$	(0.04)	$	0.14	$	0.04	$	0.27
Weighted-average shares outstanding:
Basic		10,974		11,100		11,217		11,357
Diluted		10,974		11,679		11,789		11,913


	Fiscal Three Months Ended
	March 30,		June 29,		September 28,		December 28,
	2018		2018		2018		2018
	(in thousands except per share amounts)
Contract revenue	$	54,595	$	59,833	$	71,386	$	86,438
Income from operations		1,974		4,205		4,913		1,679
Income tax expense (benefit)		(242)		869		1,597		(93)
Net income		2,203		3,315		3,311		1,201
Earnings per share:
Basic	$	0.25	$	0.38	$	0.37	$	0.11
Diluted	$	0.24	$	0.36	$	0.35	$	0.11
Weighted-average shares outstanding:
Basic		8,753		8,796		8,844		10,662
Diluted		9,185		9,288		9,343		11,217

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 27, 2019
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS The Company evaluates subsequent events in accordance with ASC Topic 855, Subsequent Events. The Company evaluates subsequent events up until the date the consolidated financial statements are issued. As of March 5, 2020, there were no subsequent events required to be reported.

ORGANIZATION AND OPERATIONS OF THE COMPANY (Policies)

12 Months Ended

Dec. 27, 2019

ORGANIZATION AND OPERATIONS OF THE COMPANY

Basis of Presentation

The Company has prepared its Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

Fiscal Years

Principles of Consolidation

Reclassifications

Certain prior year amounts have been reclassified in the condensed consolidated balance sheets to conform to the current year presentation.

Use of Estimates

Cash and Cash Equivalents

Fair Value of Financial Instruments

The carrying amounts of the derivative financial instrument is valued based on Level 2 inputs.

Variable Interest Entities

Segment Information

Contract Assets and Liabilities

Adoption of ASC 606

Contract Balances

The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of December 30, 2017 as follows:


	Balance at		Adjustments		Balance at
	December 29,		Due to		December 30,
	2017		ASC 606		2017
	(in thousands)
Assets
Accounts receivable, net of allowance for doubtful accounts	$	38,441	$	(8,560)	$	29,881
Contract assets	$	24,732	$	9,328	$	34,060

Liabilities
Deferred income taxes, net	$	2,463	$	(215)	$	2,248

Equity
Retained earnings	$	19,588	$	553	$	20,141

The impact of adoption on its condensed consolidated balance sheet and cash flows for the fiscal year ended December 28, 2018 was as follows:


	For the year ended December 28, 2018
	As		Balances Without		Effect of Change
	Reported		Adoption of ASC 606		Higher/(Lower)
	(in thousands)
Assets
Accounts receivable, net of allowance for doubtful accounts	$	61,346	$	68,240	$	(6,894)
Contract assets	$	51,851	$	44,981	$	6,870

Liabilities
Deferred income taxes, net	$	—	$	112	$	(112)

Equity
Retained earnings	$	30,171	$	29,889	$	282


	For the year ended December 28, 2018
	As		Balances Without		Effect of Change
	Reported		Adoption of ASC 606		Higher/(Lower)
	(in thousands)
Cash flows from operating activities
Accounts receivable, net of allowance for doubtful accounts	$	3,177	$	(3,717)	$	6,894
Contract assets		(11,539)		(4,645)		(6,894)
Total cash flows used in operating activities	$	(8,362)	$	(8,362)	$	—

The impact of adoption on its statement of operations was not material for the fiscal year ended December 28, 2018.

Contract Accounting

The following table reflects the Company’s two reportable segments and the types of contracts that each most commonly enters into for revenue generating activities.


Segment	Contract Type	Revenue Recognition Method
	Time-and-materials	Time-and-materials
Energy	Unit-based	Unit-based
	Software license	Unit-based
	Fixed price	Percentage-of-completion
	Time-and-materials	Time-and-materials
Engineering and Consulting	Unit-based	Unit-based
	Fixed price	Percentage-of-completion

General and Administrative Expenses

Leases

Equipment and Leasehold Improvements

Following are the estimated useful lives used to calculate depreciation and amortization:


Category	Estimated Useful Life
Furniture and fixtures	5	years
Computer hardware	3	years
Computer software	3	years
Automobiles and trucks	3	years
Field equipment	5	years

Goodwill

Long-lived assets

Accounting for Claims Against the Company

Accounting for Claims against the Company

Stock-based Compensation

Business Combinations

Income Taxes

Earnings per Share

Other Comprehensive Income (loss), Net of Tax

Derivatives

Operating Cycle

In accordance with industry practice, amounts realizable and payable under contracts that extend beyond one year are included in current assets (included in contract assets) and current liabilities.

ORGANIZATION AND OPERATIONS OF THE COMPANY (Tables)

12 Months Ended

Dec. 27, 2019

ORGANIZATION AND OPERATIONS OF THE COMPANY

Schedule of cumulative effect of initially applying ASC 606 as an adjustment to retained earnings

The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to retained earnings in the balance sheet as of December 30, 2017 as follows:


	Balance at		Adjustments		Balance at
	December 29,		Due to		December 30,
	2017		ASC 606		2017
	(in thousands)
Assets
Accounts receivable, net of allowance for doubtful accounts	$	38,441	$	(8,560)	$	29,881
Contract assets	$	24,732	$	9,328	$	34,060

Liabilities
Deferred income taxes, net	$	2,463	$	(215)	$	2,248

Equity
Retained earnings	$	19,588	$	553	$	20,141

The impact of adoption on its condensed consolidated balance sheet and cash flows for the fiscal year ended December 28, 2018 was as follows:


	For the year ended December 28, 2018
	As		Balances Without		Effect of Change
	Reported		Adoption of ASC 606		Higher/(Lower)
	(in thousands)
Assets
Accounts receivable, net of allowance for doubtful accounts	$	61,346	$	68,240	$	(6,894)
Contract assets	$	51,851	$	44,981	$	6,870

Liabilities
Deferred income taxes, net	$	—	$	112	$	(112)

Equity
Retained earnings	$	30,171	$	29,889	$	282


	For the year ended December 28, 2018
	As		Balances Without		Effect of Change
	Reported		Adoption of ASC 606		Higher/(Lower)
	(in thousands)
Cash flows from operating activities
Accounts receivable, net of allowance for doubtful accounts	$	3,177	$	(3,717)	$	6,894
Contract assets		(11,539)		(4,645)		(6,894)
Total cash flows used in operating activities	$	(8,362)	$	(8,362)	$	—

Schedule of contracts by reportable segments and type of contracts


Segment	Contract Type	Revenue Recognition Method
	Time-and-materials	Time-and-materials
Energy	Unit-based	Unit-based
	Software license	Unit-based
	Fixed price	Percentage-of-completion
	Time-and-materials	Time-and-materials
Engineering and Consulting	Unit-based	Unit-based
	Fixed price	Percentage-of-completion

Schedule of the estimated useful lives used to calculate depreciation and amortization


Category	Estimated Useful Life
Furniture and fixtures	5	years
Computer hardware	3	years
Computer software	3	years
Automobiles and trucks	3	years
Field equipment	5	years

SUPPLEMENTAL FINANCIAL STATEMENT DATA (Tables)

12 Months Ended

Dec. 27, 2019

SUPPLEMENTAL FINANCIAL STATEMENT DATA

Schedule of accounts receivable


	December 27,		December 28,
	2019		2018
	(in thousands)
Billed	$	58,651	$	61,788
Unbilled (1)		96,041		45,158
Contract retentions		5,377		6,693
Other assets (2)		14,075		1,626
		174,144		115,265
Allowance for doubtful accounts		(1,147)		(442)
	$	172,997	$	114,823

⁽¹⁾

Unbilled portion represents contract assets which is presented separately from accounts receivable on the consolidated balance sheets.

⁽²⁾

Other assets represents a portion of receivables greater than one year from the normal course of business presented separately from current assets on the consolidated balance sheets.

Schedule of the movements in the allowance for doubtful accounts


	Fiscal Year
	2019		2018		2017
	(in thousands)
Balance as of the beginning of the year	$	442	$	369	$	785
(Recovery of) provision for doubtful accounts		1,051		470		(189)
Write-offs of uncollectible accounts		(346)		(397)		(227)
Balance as of the end of the year	$	1,147	$	442	$	369

Schedule of equipment and leasehold improvements


	December 27,		December 28,
	2019		2018
	(in thousands)
Furniture and fixtures	$	4,614	$	3,551
Computer hardware and software		14,789		10,874
Leasehold improvements		2,410		1,419
Equipment under finance leases		1,957		1,304
Automobiles, trucks, and field equipment		3,564		2,635
		27,334		19,783
Accumulated depreciation and amortization		(15,283)		(11,785)
Equipment and leasehold improvements, net	$	12,051	$	7,998

Schedule of accrued liabilities


	December 27,		December 28,
	2019		2018
	(in thousands)
Accrued subcontractor costs	$	45,366	$	21,446
Accrued bonuses		7,756		5,273
Other		4,630		2,489
Compensation and payroll taxes		3,286		2,544
Employee withholdings		3,463		2,137
Paid leave bank		3,114		3,512
Total accrued liabilities	$	67,615	$	37,401

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 27, 2019

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of fair values of outstanding derivatives designated as hedging instruments


		Fair Value of Derivative
		Instruments as of
	Balance Sheet Location	December 27, 2019		December 28, 2018
		(in thousands)
Interest rate swap agreement	Accrued liabilities	$	(241)	$	—
Interest rate swap agreement	Other noncurrent (liabilities) assets	$	(306)	$	—

Schedule of accumulated other comprehensive income (loss)


	Gain (Loss) on		Accumulated Other
	Derivative Instruments		Comprehensive Loss
	(in thousands)
Balances at December 28, 2018	$	—	$	—
Other comprehensive loss before reclassifications		(546)		(546)
Amounts reclassified from accumulated other comprehensive income:
Income tax benefit (expense) related to derivative instruments		150		150
Net current-period other comprehensive loss		(396)		(396)
Balances at December 27, 2019	$	(396)	$	(396)

DEBT OBLIGATIONS (Tables)

12 Months Ended

Dec. 27, 2019

DEBT OBLIGATIONS

Schedule of debt obligations, excluding obligations under capital leases


	December 27,		December 28,
	2019		2018
	(in thousands)
Outstanding borrowings on Term A Loan	$	95,000	$	70,000
Outstanding borrowings on Revolving Credit Facility		5,000		—
Outstanding borrowings on Delayed Draw		30,000		—
Other debt agreements		1,060		1,711
Total debt		131,060		71,711
Issuance costs and debt discounts		(709)		(925)
Subtotal		130,351		70,786
Less current portion of long-term debt		13,720		8,572
Long-term debt portion	$	116,631	$	62,214

Schedule of principal installments for the Company’s debt obligations excluding capital leases

The following table summarizes the combined principal installments for the Company’s debt obligations, excluding capital leases, over the next five years and beyond, as of December 27, 2019:


Fiscal Year:
2020		13,720
2021		38,007
2022		32,667
2023		32,667
Thereafter		13,999
Total debt maturities		131,060
Issuance costs and debt discounts		(709)
Net carrying value	$	130,351

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 27, 2019

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of changes in the carrying value of goodwill by reporting unit


	December 28,		Additional		Additions /		December 27,
	2018		Purchase Cost		Adjustments		2019
	(in thousands)
Reporting Unit:
Energy	$	96,999	$	39,690	$	(9,791)	$	126,898
Engineering and Consulting		749						749
	$	97,748	$	39,690	$	(9,791)	$	127,647

	December 29,		Additional		Additions /		December 28,
	2017		Purchase Cost		Adjustments		2018
	(in thousands)
Reporting Unit:
Energy	$	37,435	$	59,466	$	98	$	96,999
Engineering and Consulting		749		—		—		749
	$	38,184	$	59,466	$	98	$	97,748

Schedule of gross amounts and accumulated amortization of the Company's acquired identifiable intangible assets with finite useful lives


	December 27, 2019				December 28, 2018
	Gross		Accumulated		Gross		Accumulated		Amortization
	Amount		Amortization		Amount		Amortization		Period
									(in years)
Finite:
Backlog	$	7,134	$	3,763	$	2,514	$	2,155	1.0
Tradename		13,351		4,882		10,301		3,118	2.5	-	6.0
Non-compete agreements		2,320		1,384		1,420		1,042	4.0	-	5.0
Developed technology		14,620		3,227		12,920		944	8.0
Customer relationships		60,733		8,065		25,219		2,441	5.0	-	8.0
Total finite intangible assets	$	98,158	$	21,321	$	52,374	$	9,700
In-process research and technology (1)		—		—		1,690		—
Total intangible assets	$	98,158	$	21,321	$	54,064	$	9,700

⁽¹⁾

In-process research and technology is not amortized until put into use.

Schedule of estimated amortization expense for acquired identifiable intangible assets


		Future Intangible Asset
		Amortization expense
		(in thousands)
Fiscal year:
2020		13,025
2021		11,622
2022		11,233
2023		9,962
2024		6,871
Thereafter		24,124
	$	76,837

LEASES (Tables)

12 Months Ended

Dec. 27, 2019

LEASES

Summary of the lease expense


	Fiscal Year
	2019		2018
	(in thousands)
Operating lease cost	$	5,053	$	-
Finance lease cost:
Amortization of assets		509		-
Interest on lease liabilities		36		-
Total net lease cost	$	5,598	$	-

Summary of lease information presented on the Company’s condensed consolidated balance sheet


	December 27,			December 28,
	2019			2018
	(in thousands)
Operating leases:
Right-of-use assets	$	22,297		$	—

Lease liability	$	5,550		$	—
Lease liability, less current portion		18,411			—
Total lease liabilities	$	23,961		$	—

Finance leases (included in equipment and leasehold improvements, net):
Equipment and leasehold improvements, net	$	1,957		$	—
Accumulated depreciation		(1,291)			—
Total equipment and leasehold improvements, net	$	666		$	—

Finance lease obligations	$	375		$	—
Finance lease obligations, less current portion		191			—
Total finance lease obligations	$	566		$	—

Weighted average remaining lease term (in years):
Operating Leases		4.59			—
Finance Leases		1.47			—

Weighted average discount rate:
Operating Leases		5.14	%		—	%
Finance Leases		4.80	%		—	%

Summary of other information and supplemental cash flow information related to finance and operating leases


	Fiscal Year
	2019		2018
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	5,151	$	—
Operating cash flow from finance leases		36		—
Financing cash flow from finance leases		639		—

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	4,918	$	—

Summary of the maturities of operating lease liabilities

The following is a summary of the maturities of lease liabilities as of December 27, 2019:


	Operating		Finance
	(in thousands)
Fiscal year:
2020	$	6,418	$	394
2021		5,680		178
2022		4,891		17
2023		3,425		—
2024		2,498		—
2025 and thereafter		4,530		—
Total lease payments	$	27,442	$	589
Less: Imputed interest		(3,481)		(23)
Total lease obligations		23,961		566
Less: Current obligations		5,550		375
Noncurrent lease obligations	$	18,411	$	191

Summary of the maturities of finance lease liabilities


	Operating		Finance
	(in thousands)
Fiscal year:
2020	$	6,418	$	394
2021		5,680		178
2022		4,891		17
2023		3,425		—
2024		2,498		—
2025 and thereafter		4,530		—
Total lease payments	$	27,442	$	589
Less: Imputed interest		(3,481)		(23)
Total lease obligations		23,961		566
Less: Current obligations		5,550		375
Noncurrent lease obligations	$	18,411	$	191

Summary of the future minimum payments under capital leases

The following is a summary of the future minimum payments under finance and non-cancelable operating leases as of December 28, 2018:


	Finance		Operating
	(in thousands)
Fiscal year:
2019	$	335	$	4,442
2020		204		2,882
2021		26		2,036
2022		—		1,565
2023		—		668
2024 and thereafter		—		996
Total future minimum lease payments	$	565	$	12,589
Amount representing interest (at rates ranging from 3.25% to 3.75%)		(21)
Present value of net minimum lease payments under capital leases		544
Less current portion		320
Noncurrent lease obligations	$	224

Summary of the future minimum payments under non-cancelable operating leases


	Finance		Operating
	(in thousands)
Fiscal year:
2019	$	335	$	4,442
2020		204		2,882
2021		26		2,036
2022		—		1,565
2023		—		668
2024 and thereafter		—		996
Total future minimum lease payments	$	565	$	12,589
Amount representing interest (at rates ranging from 3.25% to 3.75%)		(21)
Present value of net minimum lease payments under capital leases		544
Less current portion		320
Noncurrent lease obligations	$	224

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 27, 2019

SEGMENT INFORMATION

Schedule of financial information with respect to the reportable segments


			Engineering		Unallocated				Consolidated
	Energy		& Consulting		Corporate		Intersegment		Total
	(in thousands)
Fiscal Year 2019
Contract revenue	$	370,715	$	72,384	$	—	$	—	$	443,099
Depreciation and amortization		13,703		1,324		—		—		15,027
Interest expense		32		—		4,868		—		4,900
Segment profit (loss) before income tax expense		11,971		8,839		(16,154)		—		4,656
Income tax (benefit) expense		3,308		2,442		(5,935)		—		(185)
Net income (loss)		8,664		6,397		(10,220)		—		4,841
Segment assets (1)		314,324		23,690		125,029		(23,130)		439,913
Fiscal Year 2018
Contract revenue	$	196,833	$	75,419	$	—	$	—	$	272,252
Depreciation and amortization		5,274		786		—		—		6,060
Interest expense		312		388		—		—		700
Segment profit (loss) before income tax expense		8,959		7,589		(4,387)		—		12,161
Income tax (benefit) expense		1,570		1,330		(769)		—		2,131
Net income (loss)		7,390		6,259		(3,619)		—		10,030
Segment assets (1)		252,124		20,402		51,515		(23,130)		300,911
Fiscal Year 2017
Contract revenue	$	199,609	$	73,743	$	—	$	—	$	273,352
Depreciation and amortization		3,145		804		—		—		3,949
Interest expense		(90)		(21)		—		—		(111)
Segment profit before income tax expense		5,589		9,054		(952)		—		13,691
Income tax expense (benefit)		638		1,033		(109)		—		1,562
Net income		4,951		8,021		(843)		—		12,129
Segment assets (1)		65,872		20,774		74,656		(23,130)		138,172

⁽¹⁾

Segment assets are presented net of intercompany receivables.

Schedule of disaggregation of revenue


	2019
	Energy		Engineering and Consulting		Total
	(in thousands)
Contract Type
Time-and-materials	$	18,625	$	54,560	$	73,185
Unit-based		272,978		14,391		287,369
Fixed price		79,112		3,433		82,545
Total	$	370,715	$	72,384	$	443,099

Client Type
Commercial	$	39,311	$	4,895	$	44,206
Government		57,020		67,049		124,069
Utilities		274,384		440		274,824
Total	$	370,715	$	72,384	$	443,099

Geography (1)
Domestic	$	370,715	$	72,384	$	443,099


	2018
	Energy		Engineering and Consulting		Total
	(in thousands)
Contract Type
Time-and-materials	$	13,790	$	59,744	$	73,534
Unit-based		113,749		13,300		127,049
Fixed price		69,294		2,375		71,669
Total	$	196,833	$	75,419	$	272,252

Client Type
Commercial	$	20,715	$	4,882	$	25,597
Government		62,897		70,091		132,988
Utilities		113,221		446		113,667
Total	$	196,833	$	75,419	$	272,252

Geography (1)
Domestic	$	196,833	$	75,419	$	272,252

Revenue from our foreign operations were immaterial for fiscal year 2019. For prior fiscal years presented, we did not have any foreign revenues.

Schedule of assets included in Unallocated Corporate

The following sets forth the assets that are included in Unallocated Corporate as of December 27, 2019 and December 28, 2018.


	2019		2018
	(in thousands)
Assets:
Cash and cash equivalents	$	84,277	$	14,863
Accounts Receivable, net		(108)		(1,826)
Prepaid expenses		1,912		1,606
Intercompany receivables		125,126		135,507
Goodwill		2		2
Other receivables		3,915		201
Equipment and leasehold improvements, net		1,637		1,180
Investments in subsidiaries		23,130		23,130
ROU Assets		1,141		—
Other		606		963
Deferred income taxes		9,312		12,321
	$	250,950	$	187,947

SHAREHOLDERS’ EQUITY (Tables)

12 Months Ended

Dec. 27, 2019

Summary of option activity and changes during the period


				Weighted-
		Weighted-		Average
		Average		Remaining
		Exercise		Contractual
	Options	Price		Term
	(in thousands)			(in years)
Outstanding at December 28, 2018	1,252	$	16.87	6.62
Granted	—		—	—
Exercised	(115)		8.08	—
Forfeited or expired	(13)		14.97	—
Outstanding at December 27, 2019	1,124	$	17.80	6.06
Vested and expected to vest at December 27, 2019	1,124	$	17.80	6.06
Exercisable at December 27, 2019	958	$	15.48	5.68


				Weighted-
		Weighted-		Average
		Average		Remaining
		Exercise		Contractual
	Options	Price		Term
	(in thousands)			(in years)
Outstanding at December 29, 2017	1,207	$	14.04	7.02
Granted	158		31.54	—
Exercised	(85)		7.85	—
Forfeited or expired	(28)		5.07	—
Outstanding at December 28, 2018	1,252	$	16.87	6.62
Vested and expected to vest at December 28, 2018	1,252	$	16.87	6.62
Exercisable at December 28, 2018	838	$	12.20	5.58


				Weighted-
		Weighted-		Average
		Average		Remaining
		Exercise		Contractual
	Options	Price		Term
	(in thousands)			(in years)
Outstanding at December 30, 2016	1,311	$	10.15	6.69
Granted	199		30.28	—
Exercised	(271)		7.02	—
Forfeited or expired	(32)		15.65	—
Outstanding at December 29, 2017	1,207	$	14.04	7.02
Vested and expected to vest at December 29, 2017	1,207	$	14.04	7.02
Exercisable at December 29, 2017	660	$	8.84	5.58

Summary of the status of the nonvested options and changes in nonvested options


		Weighted-
		Average
		Grant-Date
	Options	Fair Value
	(in thousands)
Nonvested at December 28, 2018	414	$	8.69
Granted	—		—
Vested	(242)		9.43
Forfeited	(6)		10.87
Nonvested at December 27, 2019	166		12.15


		Weighted-
		Average
		Grant-Date
	Options	Fair Value
	(in thousands)
Nonvested at December 29, 2017	547	$	6.43
Granted	158		12.73
Vested	(263)		7.29
Forfeited	(28)		5.07
Nonvested at December 28, 2018	414		8.69


		Weighted-
		Average
		Grant-Date
	Options	Fair Value
	(in thousands)
Nonvested at December 30, 2016	653	$	4.75
Granted	199		12.23
Vested	(273)		6.68
Forfeited	(32)		15.65
Nonvested at December 29, 2017	547		6.43

Schedule of assumptions

The risk‑free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The assumptions are as follows:


	2019		2018					2017
Expected volatility	34	%	37	%	-	38	%	38	%	-	41	%
Expected dividends	0	%				0	%				0	%
Expected term (in years)	6					6					6
Risk-free rate	2.49	%	2.65	%	-	2.78	%	1.86	%	-	2.08	%


	2019			2018			2017
Weighted-average expected term (in years)		.5			.5			.5
Risk-Free interest Rate		2.3	%		1.4	%		0.65	%
Stock Price Volatility		35.6	%		37.9	%		40.7	%
Dividend yield		0	%		0	%		0	%
Fair Value	$	33.01		$	26.86		$	23.02

Restricted stock

Summary of restricted stock activity


		Weighted-
		Average
	Restricted Stock	Grant Date Fair Value
	(in thousands)
Outstanding at December 28, 2018	64	$	22.28
Awarded	37		35.60
Vested	(43)		18.90
Forfeited	—		—
Outstanding at December 27, 2019	58	$	33.33

Outstanding at December 29, 2017	87	$	17.67
Awarded	22		28.17
Vested	(45)		16.09
Forfeited	—		—
Outstanding at December 28, 2018	64	$	22.28

Outstanding at December 30, 2016	99	$	11.37
Awarded	28		31.53
Vested	(40)		33.02
Forfeited	—		—
Outstanding at December 29, 2017	87	$	17.67

Performance Shares

Summary of restricted stock activity


	Performance-Based	Weighted-Average
	Restricted Stock Unit	Grant Date Fair Value
	(in thousands)
Outstanding at December 28, 2018	280	$	21.94
Awarded	329		28.99
Released	(175)		21.94
Forfeited	(3)		27.28
Outstanding at December 27, 2019	431	$	27.28

Outstanding at December 29, 2017	—	$	—
Awarded	280		21.94
Vested	—		—
Forfeited	—		—
Outstanding at December 28, 2018	280	$	21.94

INCOME TAXES (Tables)

12 Months Ended

Dec. 27, 2019

INCOME TAXES

Schedule of provision for income taxes


	Fiscal Year
	2019		2018		2017
	(in thousands)
Current federal taxes	$	(548)	$	3,632	$	635
Current state taxes		551		1,389		306
Deferred federal taxes		(159)		(2,539)		431
Deferred state taxes		(29)		(351)		190
	$	(185)	$	2,131	$	1,562

Schedule of sources and tax effects of the differences


	2019		2018		2017
	(in thousands)
Computed “expected” federal income tax expense	$	977	$	2,554	$	4,655
Permanent differences		163		77		(61)
Nondeductible Executive Compensation		688		—		—
Stock options and disqualifying dispositions		(731)		(354)		(1,629)
Tax Act - federal rate change		—		—		(1,277)
Energy efficient building deduction		(1,291)		(919)		—
Current and deferred state income tax expense, net of federal benefit		466		815		287
Change in valuation allowances on deferred tax assets		—		—		15
Federal deferred tax adjustments		231		220		(441)
Adjustment for uncertain tax positions		(282)		61		363
Research and development tax credit		(510)		(313)		(188)
Adjustment to prior earn-out liability		—		(198)		—
Non-deductible transaction expenses		—		203		—
Other		27		(15)		(162)
True up income tax accounts		77		—		—
	$	(185)	$	2,131	$	1,562

Schedule of the tax effects of temporary differences that give rise to significant portions of the net deferred tax assets and liabilities


	December 27,		December 28,
	2019		2018
	(in thousands)
Deferred tax assets:
Accounts receivable allowance	$	315	$	122
Other accrued liabilities		2,124		2,714
Federal and state net operating losses		18,717		20,569
Lease liability		6,467		—
Stock compensation		3,381		2,167
Adjustments to fair value of assets		79		733
Other		622		173
		31,705		26,478
Valuation allowance		(86)		(86)
Net deferred tax assets	$	31,619	$	26,392
Deferred tax liabilities:
Deferred revenue	$	(5,031)	$	(5,702)
Fixed assets		(618)		(116)
Intangible assets		(10,077)		(8,041)
Lease right-of-use assets		(6,127)		—
Other		(454)		(212)
		(22,307)		(14,071)
Net deferred tax asset	$	9,312	$	12,321

Schedule of uncertain tax positions


	Amount
	(in thousands)
Balance as of December 28, 2018	$	424
Additions based on tax positions related to the current year		—
Additions for tax positions of prior years		5
Reductions for tax positions related to the current year		—
Reductions for tax positions of prior years		(287)
Balance as of December 27, 2019	$	142

EARNINGS PER SHARE (EPS) (Tables)

12 Months Ended

Dec. 27, 2019

EARNINGS PER SHARE (EPS)

Schedule of number of weighted-average common shares outstanding used to compute basic and diluted EPS


	Fiscal Year
	2019		2018		2017
	(in thousands, except per share amounts)
Net income	$	4,841	$	10,030	$	12,129
Weighted-average common shares outstanding		11,162		9,264		8,541
Effect of dilutive stock options and restricted stock awards		604		499		614
Weighted-average common shares outstanding-diluted		11,766		9,763		9,155
Earnings per share:
Basic	$	0.43	$	1.08	$	1.42
Diluted	$	0.41	$	1.03	$	1.32

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 27, 2019

E3, Inc.

Schedule of consideration for the acquisition


	E3, Inc.
		(in thousands)
Cash paid	$	25,217
Other working capital adjustment		1,973
Issuance of common stock		5,000
Contingent Consideration		7,000
Total consideration	$	39,190

Schedule of amounts for the acquired assets and liabilities recorded at their estimated fair value as of the acquisition date


	E3, Inc.
		(in thousands)
Current assets	$	5,316
Non-current assets (1)		341
Cash		2,264
Equipment and leasehold improvements, net		409
Right-of-use assets		6,766
Current lease liability		(593)
Non-current lease liability		(7,870)
Liabilities		(3,138)
Backlog		2,500
Customer relationships		8,300
Tradename		2,000
Non-compete		900
Goodwill		21,995
Net assets acquired	$	39,190

(1)

Excluded from non-current assets are equipment and leasehold improvements, net, right-of-use assets, customer relationships, tradename, backlog and goodwill.

Onsite Energy Corporation

Schedule of consideration for the acquisition


	Onsite Energy
		(in thousands)
Cash paid	$	24,411
Other working capital adjustment		494
Total consideration	$	24,905

Schedule of amounts for the acquired assets and liabilities recorded at their estimated fair value as of the acquisition date


	Onsite Energy
		(in thousands)
Current assets	$	22,254
Non-current assets (1)		10
Equipment and leasehold improvements, net		39
Right-of-use assets		828
Current lease liability		(168)
Non-current lease liability		(660)
Liabilities		(12,222)
Backlog		800
Customer relationships		7,374
Tradename		500
Goodwill		6,150
Net assets acquired	$	24,905

(1)

Excluded from non-current assets are equipment and leasehold improvements, net, right-of-use assets, customer relationships, tradename, backlog and goodwill.

The Weidt Group

Schedule of consideration for the acquisition


	The Weidt Group
		(in thousands)
Cash paid	$	22,136
Other working capital adjustment		-
Total consideration	$	22,136

Schedule of amounts for the acquired assets and liabilities recorded at their estimated fair value as of the acquisition date


	The Weidt Group
		(in thousands)
Current assets	$	2,317
Non-current assets (1)		25
Equipment and leasehold improvements, net		198
Right-of-use assets		1,730
Current lease liability		(245)
Non-current lease liability		(1,533)
Liabilities		(612)
Backlog		750
Customer relationships		4,240
Tradename		550
Developed technology		3,170
Goodwill		11,546
Net assets acquired	$	22,136

(1)

Excluded from non-current assets are equipment and leasehold improvements, net, right-of-use assets, customer relationships, tradename, developed technology, backlog and goodwill.

Lime Energy

Schedule of consideration for the acquisition


	Lime Energy
		(in thousands)
Cash paid	$	122,439
Other working capital adjustment		-
Total consideration	$	122,439

Schedule of amounts for the acquired assets and liabilities recorded at their estimated fair value as of the acquisition date


	Lime Energy
		(in thousands)
Current assets (1)	$	45,401
Non-current assets (2)		10,605
Cash		1,090
Equipment and leasehold improvements, net		1,892
Liabilities		(33,603)
Customer relationships		35,000
Tradename		5,970
Developed technology		7,040
Backlog		1,300
Goodwill		47,744
Net assets acquired	$	122,439

(1)

Excluded from current assets is cash

(2)

Excluded from non-current assets are equipment and leasehold improvements, net, customer relationships, tradename, developed technology, backlog and goodwill.

Schedule of unaudited pro forma financial information


	Fiscal Year
	2019		2018
	(in thousands, except per share data)
Pro forma revenue	$	473,655	$	452,082

Pro forma income from operations	$	10,937	$	19,694
Pro forma net income (1)	$	6,161	$	11,934

Earnings per share:
Basic	$	0.55	$	1.09
Diluted	$	0.52	$	1.04

Weighted average shares outstanding:
Basic		11,162		10,990
Diluted		11,766		11,489

(1)

Adjustments to pro forma net income include income from operations, amortization and interest expenses.

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 27, 2019

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Schedule of selected quarterly information


	Fiscal Three Months Ended
	March 29,		June 28,		September 27,		December 27,
	2019		2019		2019		2019
	(in thousands except per share amounts)
Contract revenue	$	91,793	$	104,396	$	117,494	$	129,416
Income (loss) from operations		(234)		2,773		1,295		5,529
Income tax (benefit) expense		(927)		(70)		(376)		1,188
Net income (loss)		(417)		1,640		416		3,202
Earnings per share:
Basic	$	(0.04)	$	0.15	$	0.04	$	0.28
Diluted	$	(0.04)	$	0.14	$	0.04	$	0.27
Weighted-average shares outstanding:
Basic		10,974		11,100		11,217		11,357
Diluted		10,974		11,679		11,789		11,913


	Fiscal Three Months Ended
	March 30,		June 29,		September 28,		December 28,
	2018		2018		2018		2018
	(in thousands except per share amounts)
Contract revenue	$	54,595	$	59,833	$	71,386	$	86,438
Income from operations		1,974		4,205		4,913		1,679
Income tax expense (benefit)		(242)		869		1,597		(93)
Net income		2,203		3,315		3,311		1,201
Earnings per share:
Basic	$	0.25	$	0.38	$	0.37	$	0.11
Diluted	$	0.24	$	0.36	$	0.35	$	0.11
Weighted-average shares outstanding:
Basic		8,753		8,796		8,844		10,662
Diluted		9,185		9,288		9,343		11,217

ORGANIZATION AND OPERATIONS OF THE COMPANY - Fiscal Years (Details) - item	3 Months Ended				12 Months Ended
	Dec. 27, 2019	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Summary of Significant Accounting Policies [Line Items]
Number of VIE					1
Length of fiscal period		91 days	91 days	91 days	364 days	364 days	364 days
Minimum
Summary of Significant Accounting Policies [Line Items]
Length of fiscal period	91 days				364 days
Maximum
Summary of Significant Accounting Policies [Line Items]
Length of fiscal period	98 days				371 days

ORGANIZATION AND OPERATIONS OF THE COMPANY - Contract Balances - Adoption of New ASUs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2017
Assets
Accounts receivable, net of allowance for doubtful accounts	$ 57,504	$ 61,346	$ 38,441
Contract assets	101,418	51,851	24,732
Liabilities
Deferred income taxes, net			2,463
Equity
Retained earnings	35,012	30,171	19,588
Cash flows from operating activities:
Accounts receivable, net of allowance for doubtful accounts	11,627	3,177	(7,412)
Contract assets	$ (34,598)	(11,539)	$ (5,744)
Total cash flows used in operating activities		(8,362)
Calculated Under Revenue Guidance In Effect Before Topic 606 \| ASC 606
Assets
Accounts receivable, net of allowance for doubtful accounts		68,240		$ (8,560)
Contract assets		44,981		9,328
Liabilities
Deferred income taxes, net		112		(215)
Equity
Retained earnings		29,889		553
Cash flows from operating activities:
Accounts receivable, net of allowance for doubtful accounts		(3,717)
Contract assets		(4,645)
Total cash flows used in operating activities		(8,362)
Difference Between Revenue Guidance In Effect Before And After Topic 606 \| ASC 606
Assets
Accounts receivable, net of allowance for doubtful accounts		(6,894)		29,881
Contract assets		6,870		34,060
Liabilities
Deferred income taxes, net		(112)		2,248
Equity
Retained earnings		282		$ 20,141
Cash flows from operating activities:
Accounts receivable, net of allowance for doubtful accounts		6,894
Contract assets		$ (6,894)

ORGANIZATION AND OPERATIONS OF THE COMPANY - Accounting for Contracts (Details)	12 Months Ended
	Dec. 27, 2019 USD ($) segment	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)
Accounting for Contracts
Number of reportable segments \| segment	2
Costs of contract revenue
Payroll taxes, bonuses and employee benefit costs for all Company personnel	$ 66,303,000	$ 45,248,000	$ 36,534,000
Facilities costs	8,568,000	5,600,000	$ 4,624,000
Revenue of the entity recorded in which it acts solely in the capacity of an agent	0
Costs recorded for costs to the entity in which it acts solely in the capacity of an agent	$ 0
Maximum
Costs of contract revenue
Percent of revenue (as a percent)	3.00%
Minimum
Costs of contract revenue
Percent of revenue (as a percent)	2.00%
Accounts receivable
Costs of contract revenue
Retained accounts receivable	$ 5,400,000	$ 6,700,000
Cost of Sales
Costs of contract revenue
Payroll taxes, bonuses and employee benefit costs for all Company personnel	0
Facilities costs	$ 0

ORGANIZATION AND OPERATIONS OF THE COMPANY- Estimated Useful Lives (Details)	12 Months Ended
	Dec. 27, 2019
Equipment \| Minimum
Equipment and Leasehold Improvements
Estimated useful life	2 years
Equipment \| Maximum
Equipment and Leasehold Improvements
Estimated useful life	5 years
Furniture and fixtures
Equipment and Leasehold Improvements
Estimated useful life	5 years
Computer hardware
Equipment and Leasehold Improvements
Estimated useful life	3 years
Computer software
Equipment and Leasehold Improvements
Estimated useful life	3 years
Automobiles and trucks
Equipment and Leasehold Improvements
Estimated useful life	3 years
Field equipment
Equipment and Leasehold Improvements
Estimated useful life	5 years

ORGANIZATION AND OPERATIONS OF THE COMPANY - Business Combination, Income Taxes and Recent Accounting Pronouncements (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 29, 2017	Dec. 27, 2019	Dec. 28, 2018	Dec. 31, 2017	Dec. 29, 2017
Income Taxes
U.S. federal statutory rate (as a percent)		21.00%	21.00%	35.00%	34.00%
Deferred tax expense	$ 1,300,000		$ 200,000
Valuation reserve related to California net operating losses		$ 86,000	$ 86,000

RECENT ACCOUNTING PRONOUNCEMENTS (Details) $ in Millions	Dec. 29, 2018 USD ($)
RECENT ACCOUNTING PRONOUNCEMENTS
Increase in operating lease right of use asset	$ 10.9
Increase in operating lease liabilities	$ 11.9

SUPPLEMENTAL FINANCIAL STATEMENT DATA - Accounts Receivables (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017	Dec. 27, 2019	Dec. 28, 2018
Accounts receivable
Other assets				$ 14,075	$ 1,626
Total accounts receivable, gross				174,144	115,265
Allowance for doubtful accounts	$ (442)	$ (369)	$ (785)	(1,147)	(442)
Total accounts receivable, net				172,997	114,823
Movements in the allowance for doubtful accounts
Balance as of the beginning of the year	442	369	785
(Recovery of) provision for doubtful accounts	1,051	470	(189)
Write-offs of uncollectible accounts	(346)	(397)	(227)
Balance as of the end of the year	1,147	$ 442	$ 369
Cash proceeds from sale of trade receivables	4,900
Discounts on trade receivables sold	$ 200
Accounts Receivable \| Credit concentration risk \| Dormitory Authority-State of New York
Movements in the allowance for doubtful accounts
Customer concentration risk percentage		21.00%
Accounts Receivable \| Credit concentration risk \| Los Angeles Department Of Water And Power
Movements in the allowance for doubtful accounts
Customer concentration risk percentage	16.00%
Billed
Accounts receivable
Total accounts receivable, gross				58,651	61,788
Unbilled
Accounts receivable
Total accounts receivable, gross				96,041	45,158
Contract retentions
Accounts receivable
Total accounts receivable, gross				$ 5,377	$ 6,693

SUPPLEMENTAL FINANCIAL STATEMENT DATA - Equipment And Leasehold Improvements, Net (Details) - USD ($)	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment and leasehold improvements, gross	$ 27,334,000	$ 19,783,000
Accumulated depreciation and amortization	(15,283,000)	(11,785,000)
Total equipment and leasehold improvements, net	12,051,000	7,998,000
Depreciation	3,400,000	1,600,000	$ 1,500,000
Furniture and fixtures
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment and leasehold improvements, gross	4,614,000	3,551,000
Computer hardware and software
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment and leasehold improvements, gross	14,789,000	10,874,000
Leasehold improvements
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment and leasehold improvements, gross	2,410,000	1,419,000
Equipment under finance lease
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment and leasehold improvements, gross	1,957,000	1,304,000
Accumulated depreciation and amortization	(509,000)
Automobiles, trucks, and field equipment
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment and leasehold improvements, gross	$ 3,564,000	2,635,000
Equipment under capital leases
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Accumulated depreciation and amortization		$ (374,000)	$ (380,000)

SUPPLEMENTAL FINANCIAL STATEMENT DATA - Accured Liabilities (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018
ACCRUED LIABILITIES
Accrued subcontractor costs	$ 45,366	$ 21,446
Accrued bonuses	7,756	5,273
Other	4,630	2,489
Compensation and payroll taxes	3,286	2,544
Employee withholdings	3,463	2,137
Paid leave bank	3,114	3,512
Total accrued liabilities	$ 67,615	$ 37,401

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Cash flow hedge - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2021	Dec. 27, 2019	Jan. 31, 2019
Derivative [Line Items]
Effective portion of interest rate swap designated as cash flow hedge before tax effect		$ 0.5
Interest swap agreement
Derivative [Line Items]
Notional amount			$ 35.0
Fixed rate (in percent)			2.47%
Interest swap agreement \| Forecast
Derivative [Line Items]
Accumulated other comprehensive income to interest expense	$ 0.4

DERIVATIVE FINANCIAL INSTRUMENTS - Fair Values (Details) - Designated as hedging instruments - Interest swap agreement $ in Thousands	Dec. 27, 2019 USD ($)
Accrued liabilities.
Derivatives, Fair Value [Line Items]
Fair value of Derivative Instruments	$ (241)
Other noncurrent (liabilities) assets
Derivatives, Fair Value [Line Items]
Fair value of Derivative Instruments	$ (306)

DERIVATIVE FINANCIAL INSTRUMENTS - Others (Details) $ in Millions	12 Months Ended
	Dec. 27, 2019 USD ($)
Cash flow hedge
Derivative [Line Items]
Effective portion	$ 0.5
Fair Value Hedging
Derivative [Line Items]
Effective portion	$ 0.5

DERIVATIVE FINANCIAL INSTRUMENTS -Accumulated balances and reporting period activities (Details) $ in Thousands	12 Months Ended
	Dec. 27, 2019 USD ($)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Balances	$ 144,289
Balances	167,278
(Loss) on Derivative Instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other comprehensive loss before reclassifications	(546)
Income tax benefit (expense) related to derivative instruments	150
Net current-period other comprehensive loss	(396)
Balances	(396)
Accumulated Other Comprehensive (Loss)/Gain
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other comprehensive loss before reclassifications	(546)
Income tax benefit (expense) related to derivative instruments	150
Net current-period other comprehensive loss	(396)
Balances	$ (396)

DEBT OBLIGATIONS (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018
Debt Obligations
Total debt obligations	$ 131,060	$ 71,711
Issuance costs and debt discounts	(709)	(925)
Long-term Debt	130,351	70,786
Less current portion	(13,720)	(8,572)
Debt obligations, less current portion	116,631	62,214
Term A Loan
Debt Obligations
Total debt obligations	95,000	70,000
Revolving Credit Facility
Debt Obligations
Total debt obligations	5,000
Delayed Draw Term Loan Facility
Debt Obligations
Total debt obligations	30,000
Other debt agreements
Debt Obligations
Total debt obligations	$ 1,060	$ 1,711

DEBT OBLIGATIONS - Line of credit (Details)					3 Months Ended		12 Months Ended
DEBT OBLIGATIONS - Line of credit (Details)	Jun. 26, 2019 USD ($) item	Nov. 09, 2018 USD ($)	Oct. 01, 2018 USD ($)	Jan. 20, 2017 USD ($)	Sep. 27, 2019 USD ($)	Dec. 28, 2018 USD ($)	Dec. 27, 2019 USD ($)	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)	Dec. 20, 2018 USD ($)	Oct. 10, 2018 USD ($)
Debt Instrument [Line Items]
Borrowings under term loan facility and line of credit							$ 138,000,000	$ 70,000,000	$ 1,000,000
Composite interest rate							3.70%
Interest rate (as a percent)						4.30%		4.30%
Interest and principal payments						$ 149,881
Unsecured notes payable						$ 1,500,000		$ 1,500,000
Letter of credit issued							$ 2,700,000
Quarterly installments					$ 2,500,000
Utility Customer Agreement
Debt Instrument [Line Items]
Interest rate (as a percent)										4.332%
Unsecured notes payable							900,000
Amount committed to repay										$ 1,700,000
2019 Credit Agreement [Member] \| BMO \| Base rate \| Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)	0.50%
2019 Credit Agreement [Member] \| BMO \| Base rate \| LIBOR \| Maximum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)	1.00%
2019 Credit Agreement [Member] \| BMO \| Base rate \| LIBOR \| Minimum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)	0.125%
2019 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)	1.00%
2019 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate \| Maximum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)	2.00%
2019 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate \| Minimum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)	1.125%
Term A Loan \| BMO
Debt Instrument [Line Items]
The aggregate amount under the revolving line of credit	$ 100,000,000
Unamortized debt issuance costs							700,000
Delayed Draw Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	50,000,000
Line of credit facility minimum borrowing under each tranche	$ 10,000,000
Annual amortization of debt (as a Percent)					2.50%
Delayed Draw Term Loan Facility \| Maximum
Debt Instrument [Line Items]
Number of borrowings \| item	5
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 50,000,000
The aggregate amount under the revolving line of credit	$ 100,000,000
Revolving Credit Facility \| BMO \| Maximum
Debt Instrument [Line Items]
Commitment fee (as a percent)	2.00%
Revolving Credit Facility \| BMO \| Minimum
Debt Instrument [Line Items]
Commitment fee (as a percent)	0.84%
Delayed Draw Term Loan And Revolving Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance costs							800,000
Delayed Draw Term Loan And Revolving Credit Facility \| BMO \| Maximum
Debt Instrument [Line Items]
Fee on unused commitments (as a percent)	0.35%
Delayed Draw Term Loan And Revolving Credit Facility \| BMO \| Minimum
Debt Instrument [Line Items]
Fee on unused commitments (as a percent)	0.15%
2018 Credit Agreement [Member] \| BMO \| Base rate \| Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)			0.50%
2018 Credit Agreement [Member] \| BMO \| Base rate \| LIBOR \| Maximum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)			3.00%
2018 Credit Agreement [Member] \| BMO \| Base rate \| LIBOR \| Minimum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)			0.25%
2018 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)			1.00%
2018 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate \| Maximum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)			4.00%
2018 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate \| Minimum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)			1.25%
Revolving Credit Facility Member Two
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 30,000,000
Revolving Credit Facility Member Two \| BMO \| Maximum
Debt Instrument [Line Items]
Fee on unused commitments (as a percent)			0.40%
Revolving Credit Facility Member Two \| BMO \| Minimum
Debt Instrument [Line Items]
Fee on unused commitments (as a percent)			0.20%
Delayed Draw Term Loan Facility Two [Member] \| BMO
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 90,000,000
Delayed Draw Term Loan Facility Two [Member] \| BMO \| Maximum
Debt Instrument [Line Items]
Commitment fee (as a percent)			4.00%
Delayed Draw Term Loan Facility Two [Member] \| BMO \| Minimum
Debt Instrument [Line Items]
Commitment fee (as a percent)			0.94%
Term Loan 2018 [Member] \| BMO
Debt Instrument [Line Items]
Maximum borrowing capacity											$ 70,000,000
Borrowings under term loan facility and line of credit		$ 70,000,000
2017 Credit Agreement [Member] \| BMO \| Base rate \| Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)				0.50%
2017 Credit Agreement [Member] \| BMO \| Base rate \| LIBOR \| Maximum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)				1.00%
2017 Credit Agreement [Member] \| BMO \| Base rate \| LIBOR \| Minimum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)				0.25%
2017 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)				1.00%
2017 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate \| Maximum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)				2.00%
2017 Credit Agreement [Member] \| BMO \| LIBOR \| Base rate \| Minimum
Debt Instrument [Line Items]
Spread on floating interest rate (as a percent)				1.25%
Revolving line of credit \| BMO
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 35,000,000
Revolving line of credit \| BMO \| Maximum
Debt Instrument [Line Items]
Fee on unused commitments (as a percent)				0.35%
Revolving line of credit \| BMO \| Minimum
Debt Instrument [Line Items]
Fee on unused commitments (as a percent)				0.20%
Standby letter of credit sub-facility \| BMO
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 10,000,000
Standby letter of credit sub-facility \| BMO \| Maximum
Debt Instrument [Line Items]
Commitment fee (as a percent)				1.50%
Standby letter of credit sub-facility \| BMO \| Minimum
Debt Instrument [Line Items]
Commitment fee (as a percent)				0.94%
Notes payable for IBM
Debt Instrument [Line Items]
Interest rate (as a percent)						4.656%		4.656%
Interest and principal payments								$ 6,315
Notes payable for IBM \| Software Agreements
Debt Instrument [Line Items]
Software cost								200,000
Unsecured notes payable						$ 211,000	$ 133,000	$ 211,000

DEBT OBLIGATIONS - Principal installments (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018
DEBT OBLIGATIONS
2020	$ 13,720
2021	38,007
2022	32,667
2023	32,667
Thereafter	13,999
Total debt obligations	131,060	$ 71,711
Issuance costs and debt discounts	(709)	(925)
Long-term Debt	$ 130,351	$ 70,786

GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Value of Goodwill by Reporting Unit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018
Changes in carrying value of goodwill
Goodwill at beginning of period	$ 97,748	$ 38,184
Additional Purchase Cost	39,690	59,466
Additions/Adjustments	(9,791)	98
Goodwill at end of period	127,647	97,748
Energy
Changes in carrying value of goodwill
Goodwill at beginning of period	96,999	37,435
Additional Purchase Cost	39,690	59,466
Additions/Adjustments	(9,791)	98
Goodwill at end of period	126,898	96,999
Engineering and Consulting
Changes in carrying value of goodwill
Goodwill at beginning of period	749	749
Goodwill at end of period	$ 749	$ 749

GOODWILL AND OTHER INTANGIBLE ASSETS - Gross Amount and Amortization (Details) - USD ($)	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Goodwill and other intangible assets
Gross Amount	$ 98,158,000	$ 52,374,000
Gross Amount of Intangible Assets	98,158,000	54,064,000
Accumulated Amortization	21,321,000	9,700,000
Amortization expense for acquired identifiable intangible assets	11,600,000	4,500,000	$ 2,400,000
Estimated amortization expense for acquired identifiable intangible assets
2020	13,025,000
2021	11,622,000
2022	11,233,000
2023	9,962,000
2024	6,871,000
Thereafter	24,124,000
Total estimated amortization expense	76,837,000
Goodwill impairment
Goodwill impairment	0	0	$ 0
Backlog
Goodwill and other intangible assets
Gross Amount	7,134,000	2,514,000
Accumulated Amortization	$ 3,763,000	2,155,000
Amortization Period (in years)	1 year
Tradename
Goodwill and other intangible assets
Gross Amount	$ 13,351,000	10,301,000
Accumulated Amortization	$ 4,882,000	3,118,000
Tradename \| Minimum
Goodwill and other intangible assets
Amortization Period (in years)	2 years 6 months
Tradename \| Maximum
Goodwill and other intangible assets
Amortization Period (in years)	6 years
Non-compete agreements
Goodwill and other intangible assets
Gross Amount	$ 2,320,000	1,420,000
Accumulated Amortization	$ 1,384,000	1,042,000
Non-compete agreements \| Minimum
Goodwill and other intangible assets
Amortization Period (in years)	4 years
Non-compete agreements \| Maximum
Goodwill and other intangible assets
Amortization Period (in years)	5 years
Developed technology
Goodwill and other intangible assets
Gross Amount	$ 14,620,000	12,920,000
Accumulated Amortization	$ 3,227,000	944,000
Amortization Period (in years)	8 years
In-process research and technology
Goodwill and other intangible assets
Gross Amount of Indefinite Lived Intangible Assets		1,690,000
Customer relationships
Goodwill and other intangible assets
Gross Amount	$ 60,733,000	25,219,000
Accumulated Amortization	$ 8,065,000	$ 2,441,000
Customer relationships \| Minimum
Goodwill and other intangible assets
Amortization Period (in years)	5 years
Customer relationships \| Maximum
Goodwill and other intangible assets
Amortization Period (in years)	8 years

LEASES - Narrative (Details)	12 Months Ended
LEASES - Narrative (Details)	Dec. 27, 2019
LEASES
Lease practical expedients package	true
Lease practical expedients use of hindsight	false

LEASES - Change in accounting policy (Details) $ in Thousands	12 Months Ended
	Dec. 27, 2019 USD ($)
Leases
Operating lease, option to extend	true
Operating lease, option to terminate	true
Residual value guarantee	$ 0
Minimum
Leases
Operating lease, remaining lease term	1 year
Maximum
Leases
Operating lease, remaining lease term	8 years
Operating lease, extension term	5 years
Operating lease, terminate term	1 year

LEASES - Lease expense (Details) $ in Thousands	12 Months Ended
LEASES - Lease expense (Details) $ in Thousands	Dec. 27, 2019 USD ($)
Lease cost
Operating lease cost	$ 5,053
Amortization of assets	509
Interest on lease liabilities	36
Total Lease Cost	$ 5,598

LEASES - Impact of Adoption (Details) - USD ($)	12 Months Ended
LEASES - Impact of Adoption (Details) - USD ($)	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Operating leases:
Right-of-use assets	$ 22,297,000
Lease liability	$ 5,550,000
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Lease liability
Lease liability, less current portion	$ 18,411,000
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Lease liability, less current portion
Total lease obligations	$ 23,961,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Total lease obligations
Finance leases (included in equipment and leasehold improvements, net):
Equipment and leasehold improvements, gross	$ 27,334,000	$ 19,783,000
Accumulated depreciation	(15,283,000)	(11,785,000)
Total equipment and leasehold improvements, net	12,051,000	7,998,000
Finance lease obligations	375,000	320,000
Finance lease obligations, less current portion	191,000	224,000
Total lease obligations	$ 566,000
Operating Leases	4 years 7 months 2 days
Finance Leases	1 year 5 months 19 days
Operating Leases, discount rate	5.14%
Finance Leases, discount rate	4.80%
Opertaing lease, rent expense	$ 6,190,000
Operating Leases, Rent Expense, Net		$ 4,486,000	$ 3,624,000
Finance Leases
Finance leases (included in equipment and leasehold improvements, net):
Equipment and leasehold improvements, gross	1,957,000
Accumulated depreciation	(1,291,000)
Total equipment and leasehold improvements, net	$ 666,000

LEASES - Supplemental cash flow information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$ 5,151
Operating cash flow from finance leases	36
Financing cash flow from finance leases	639	$ 367	$ 390
Right-of-use assets obtained in exchange for lease liabilities for operating leases	$ 4,918

LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018
Operating
2020	$ 6,418
2021	5,680
2022	4,891
2023	3,425
2024	2,498
2025 and thereafter	4,530
Total lease payments	27,442
Less: Imputed interest	(3,481)
Total lease obligations	23,961
Lease liability	5,550
Noncurrent lease obligations	18,411
Finance
2020	394
2021	178
2022	17
Total lease payments	589
Less: Imputed interest	(23)
Total lease obligations	566
Finance lease obligations	375	$ 320
Finance lease obligations, less current portion	$ 191	$ 224

LEASES - Capital Leases (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018
LEASES
Capital lease obligations	$ 566
Finance lease obligations	375	$ 320
New Right of Use Assets - Finance Leases	$ 500

LEASES - Leases as per 840 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2018	Dec. 27, 2019
Future minimum rental payments under capital leases
2019	$ 335
2020	204
2021	26
Total future minimum lease payments	565
Amount representing interest (at rates ranging from 3.25% to 3.75%)	(21)
Present value of net minimum lease payments under capital leases	544
Less current portion	320	$ 375
Capital lease noncurrent	$ 224
Interest rate, minimum (as a percent)	3.25%
Interest rate, maximum (as a percent)	3.75%
Future minimum rental payments under non-cancelable operating leases
2019	$ 4,442
2020	2,882
2021	2,036
2022	1,565
2023	668
2024 and thereafter	996
Total future minimum lease payments	$ 12,589

COMMITMENTS AND VARIABLE INTEREST ENTITIES - Employee Benefit Plans (Details)	12 Months Ended
	Dec. 27, 2019 USD ($) item	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)
Number of VIE \| item	1
Employee Benefit Plans
Maximum employee contribution as a percentage of compensation under 401 (k) Plan	50.00%
Service period (in months)	3 months
Attained age (in years)	21 years
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	6.00%
Employer matching contributions	$ 1,996,000	$ 1,120,000	$ 1,021,000
Post-Employment Health Benefits
Unamortized compensation cost	0
Accrued liabilities.
Post-Employment Health Benefits
Present value of expected payments for health insurance coverage	$ 102,000	$ 122,000

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Dec. 27, 2019 USD ($)	Sep. 27, 2019 USD ($)	Jun. 28, 2019 USD ($)	Mar. 29, 2019 USD ($)	Dec. 28, 2018 USD ($)	Sep. 28, 2018 USD ($)	Jun. 29, 2018 USD ($)	Mar. 30, 2018 USD ($)	Dec. 27, 2019 USD ($) segment	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)	Dec. 30, 2016 USD ($)
SEGMENT INFORMATION
Number of operating segments \| segment									2
Number of reporting segments \| segment									2
Segment reconciliation
Contract revenue	$ 129,416	$ 117,494	$ 104,396	$ 91,793	$ 86,438	$ 71,386	$ 59,833	$ 54,595	$ 443,099	$ 272,252	$ 273,352
Depreciation and amortization									15,027	6,060	3,949
Interest expense									4,900	700	(111)
Segment profit (loss) before income tax expense									4,656	12,161	13,691
Income tax expense (benefit)	1,188	(376)	(70)	(927)	(93)	1,597	869	(242)	(185)	2,131	1,562
Net income (loss)	3,202	$ 416	$ 1,640	$ (417)	1,201	$ 3,311	$ 3,315	$ 2,203	4,841	10,030	12,129
Segment assets(1)	439,913				300,911				439,913	300,911	138,172
Energy
Segment reconciliation
Contract revenue									370,715	196,833
Engineering and Consulting
Segment reconciliation
Contract revenue									72,384	75,419
Reporting Segments \| Energy
Segment reconciliation
Contract revenue									370,715	196,833	199,609
Depreciation and amortization									13,703	5,274	3,145
Interest expense									32	312	(90)
Segment profit (loss) before income tax expense									11,971	8,959	5,589
Income tax expense (benefit)									3,308	1,570	638
Net income (loss)									8,664	7,390	4,951
Segment assets(1)	314,324				252,124				314,324	252,124	65,872
Reporting Segments \| Engineering and Consulting
Segment reconciliation
Contract revenue									72,384	75,419	73,743
Depreciation and amortization									1,324	786	804
Interest expense										388	(21)
Segment profit (loss) before income tax expense									8,839	7,589	9,054
Income tax expense (benefit)									2,442	1,330	1,033
Net income (loss)									6,397	6,259	8,021
Segment assets(1)	23,690				20,402				23,690	20,402	20,774
Unallocated Corporate
Segment reconciliation
Interest expense									4,868
Segment profit (loss) before income tax expense									(16,154)	(4,387)	(952)
Income tax expense (benefit)									(5,935)	(769)	(109)
Net income (loss)									(10,220)	(3,619)	(843)
Segment assets(1)	125,029				51,515				125,029	51,515	74,656
Intersegment
Segment reconciliation
Contract revenue										0	0	$ 0
Segment assets(1)	$ (23,130)				$ (23,130)				$ (23,130)	$ (23,130)	$ (23,130)

SEGMENT INFORMATION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Jun. 28, 2019	Mar. 29, 2019	Dec. 28, 2018	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 129,416	$ 117,494	$ 104,396	$ 91,793	$ 86,438	$ 71,386	$ 59,833	$ 54,595	$ 443,099	$ 272,252	$ 273,352
Domestic
Disaggregation of Revenue [Line Items]
Revenue									443,099	272,252
Energy
Disaggregation of Revenue [Line Items]
Revenue									370,715	196,833
Energy \| Domestic
Disaggregation of Revenue [Line Items]
Revenue									370,715	196,833
Engineering and Consulting
Disaggregation of Revenue [Line Items]
Revenue									72,384	75,419
Engineering and Consulting \| Domestic
Disaggregation of Revenue [Line Items]
Revenue									72,384	75,419
Commercial
Disaggregation of Revenue [Line Items]
Revenue									44,206	25,597
Commercial \| Energy
Disaggregation of Revenue [Line Items]
Revenue									39,311	20,715
Commercial \| Engineering and Consulting
Disaggregation of Revenue [Line Items]
Revenue									4,895	4,882
Government
Disaggregation of Revenue [Line Items]
Revenue									124,069	132,988
Government \| Energy
Disaggregation of Revenue [Line Items]
Revenue									57,020	62,897
Government \| Engineering and Consulting
Disaggregation of Revenue [Line Items]
Revenue									67,049	70,091
Utilities
Disaggregation of Revenue [Line Items]
Revenue									274,824	113,667
Utilities \| Energy
Disaggregation of Revenue [Line Items]
Revenue									274,384	113,221
Utilities \| Engineering and Consulting
Disaggregation of Revenue [Line Items]
Revenue									440	446
Time-and-materials
Disaggregation of Revenue [Line Items]
Revenue									73,185	73,534
Time-and-materials \| Energy
Disaggregation of Revenue [Line Items]
Revenue									18,625	13,790
Time-and-materials \| Engineering and Consulting
Disaggregation of Revenue [Line Items]
Revenue									54,560	59,744
Unit-based
Disaggregation of Revenue [Line Items]
Revenue									287,369	127,049
Unit-based \| Energy
Disaggregation of Revenue [Line Items]
Revenue									272,978	113,749
Unit-based \| Engineering and Consulting
Disaggregation of Revenue [Line Items]
Revenue									14,391	13,300
Fixed price
Disaggregation of Revenue [Line Items]
Revenue									82,545	71,669
Fixed price \| Energy
Disaggregation of Revenue [Line Items]
Revenue									79,112	69,294
Fixed price \| Engineering and Consulting
Disaggregation of Revenue [Line Items]
Revenue									$ 3,433	$ 2,375

SEGMENT INFORMATION - Unallocated Corporate Assets (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Assets:
Cash and cash equivalents	$ 5,452	$ 15,259
Accounts receivable, net of allowance for doubtful accounts	57,504	61,346	$ 38,441
Prepaid expenses	6,254	5,745
Goodwill	127,647	97,748	$ 38,184
Other receivables	4,845	1,893
Equipment and leasehold improvements, net	12,051	7,998
Right-of-use assets	22,297
Other	16,296	2,386
Deferred income taxes	9,312	12,321
Unallocated Corporate
Assets:
Cash and cash equivalents	84,277	14,863
Accounts receivable, net of allowance for doubtful accounts	(108)	(1,826)
Prepaid expenses	1,912	1,606
Intercompany receivables	125,126	135,507
Goodwill	2	2
Other receivables	3,915	201
Equipment and leasehold improvements, net	1,637	1,180
Investments in subsidiaries	23,130	23,130
Right-of-use assets	1,141
Other	606	963
Deferred income taxes	9,312	12,321
Total assets	$ 250,950	$ 187,947

SEGMENT INFORMATION - Concentration risk (Details)	12 Months Ended
SEGMENT INFORMATION - Concentration risk (Details)	Dec. 27, 2019 customer state	Dec. 28, 2018 customer	Dec. 29, 2017 customer
Concentration Risk [Line Items]
Number of States in which Entity Operates \| state	24
Revenue from Contract with Customer Benchmark \| CALIFORNIA
Concentration Risk [Line Items]
Customer concentration risk percentage	41.10%	35.00%	30.00%
Revenue from Contract with Customer Benchmark \| NEW YORK
Concentration Risk [Line Items]
Customer concentration risk percentage	27.20%	29.00%	46.00%
Customer Concentration Risk \| Revenue from Contract with Customer Benchmark
Concentration Risk [Line Items]
Number of customers	2	1	2
Customer concentration risk percentage	29.10%	19.00%	38.00%
Customer Concentration Risk \| Revenue from Contract with Customer Benchmark \| Energy Segment
Concentration Risk [Line Items]
Number of customers	2	1	1
Customer concentration risk percentage	34.70%	18.50%	22.30%
Customer Concentration Risk \| Revenue from Contract with Customer Benchmark \| Engineering And Consulting Segment
Concentration Risk [Line Items]
Number of customers	1	3	7
Customer concentration risk percentage	25.00%	10.00%	10.00%
Top Ten Customers \| Customer Concentration Risk \| Revenue from Contract with Customer Benchmark
Concentration Risk [Line Items]
Number of customers	10	10	10
Customer concentration risk percentage	50.60%	56.90%	64.40%

SHAREHOLDERS’ EQUITY (Details)					3 Months Ended		12 Months Ended
SHAREHOLDERS’ EQUITY (Details)	Dec. 27, 2019 shares	Mar. 28, 2008 shares	Mar. 01, 2008 shares	Jun. 30, 2006 shares	Jan. 02, 2009 shares	Jun. 27, 2008 shares	Dec. 27, 2019 USD ($) plan shares	Dec. 28, 2018 USD ($) shares	Dec. 29, 2017 USD ($) shares	Dec. 30, 2016 shares	Jan. 01, 2016 shares	Dec. 28, 2012 shares	Dec. 31, 2010 shares	Jun. 30, 2008 shares	Mar. 31, 2008 shares
Equity plans
Number of share-based compensation plans \| plan							2
2006 Plan
Equity plans
Granted (in shares)							0
Number of shares of common stock reserved for issuance				300,000
2008 Plan
Equity plans
Number of shares of common stock reserved for issuance	418,000						418,000								450,000
Shares available for grant under 2008 Plan from 2006 Plan														70,333
Number of additional shares authorized							955,000		875,000	500,000		500,000	350,000
Stock options
Equity plans
Compensation expense recognized \| $							$ 12,112,000
Granted (in shares)								158,000	199,000
Options outstanding (in shares)	1,124,000						1,124,000	1,252,000	1,207,000	1,311,000
Stock options \| 2006 Plan
Equity plans
Options outstanding (in shares)	0						0
Stock options \| 2008 Plan
Equity plans
Maximum number of shares a participant may be granted in options to purchase during fiscal year							300,000
Incentive stock options \| 2008 Plan
Equity plans
Outstanding options granted, net of forfeitures, expirations and exercises (in shares)		509,000	509,000		509,000	509,000	509,000	509,000	509,000	509,000	509,000	509,000	509,000
Non-statutory/Nonqualified stock options \| 2006 Plan \| Maximum
Equity plans
Expiration period from date of grant				10 years
Non-statutory/Nonqualified stock options \| 2008 Plan
Equity plans
Outstanding options granted, net of forfeitures, expirations and exercises (in shares)	598,000		598,000
Non-statutory/Nonqualified stock options \| 2008 Plan \| Maximum
Equity plans
Expiration period from date of grant							10 years
Restricted stock
Equity plans
Compensation expense recognized \| $								$ 6,262,000
Restricted stock \| 2008 Plan
Equity plans
Shares granted	101,000		101,000
Performance Shares
Equity plans
Compensation expense recognized \| $									$ 2,774,000
Performance Shares \| 2008 Plan
Equity plans
Shares granted	326,000		326,000

SHAREHOLDERS’ EQUITY - Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Employee Stock Purchase Plan
Assumptions
Expected volatility, maximum (as a percent)	35.60%	37.90%	40.70%
Expected dividends (as a percent)	0.00%	0.00%	0.00%
Expected term (in years)	6 months	6 months	6 months
Risk-free rate, maximum (as a percent)	2.30%	1.40%	0.65%
Fair value (in dollars per share)	$ 33.01	$ 26.86	$ 23.02
Stock options
Assumptions
Expected volatility (as a percent)	34.00%
Expected volatility, minimum (as a percent)		37.00%	38.00%
Expected volatility, maximum (as a percent)		38.00%	41.00%
Expected dividends (as a percent)	0.00%	0.00%	0.00%
Expected term (in years)	6 years	6 years	6 years
Risk-free rate (as a percent)	2.49%
Risk-free rate, minimum (as a percent)		2.65%	1.86%
Risk-free rate, maximum (as a percent)		2.78%	2.08%
Fair value (in dollars per share)		$ 12.73	$ 12.23
Restricted stock \| 2008 Plan
Assumptions
Vesting period (in years)	3 years
Performance Shares \| 2008 Plan
Assumptions
Growth percentage for threshold number of units vest	10.00%
Growth percentage for targeted number of units vest	20.00%
Performance Shares \| 2008 Plan \| EBITDA Units
Assumptions
Vesting period (in years)	2 years	4 years
Vesting percentage	50.00%	50.00%
Performance Shares \| 2008 Plan \| EPS Units
Assumptions
Vesting period (in years)	2 years	4 years
Vesting percentage	50.00%	50.00%

SHAREHOLDERS’ EQUITY - Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017	Dec. 30, 2016
Fully-vested options
Stock price at the end of the year (in dollars per share)	$ 31.21
Stock options
Fully-vested options
Intrinsic value of the fully-vested options (in dollars)	$ 15,169,000
Options
Outstanding (in shares)	1,252	1,207	1,311
Granted (in shares)		158	199
Exercised (in shares)	(115)	(85)	(271)
Forfeited or expired (in shares)	(13)	(28)	(32)
Outstanding (in shares)	1,124	1,252	1,207	1,311
Vested and expected to vest (in shares)	1,124	1,252	1,207
Exercisable (in shares)	958	838	660
Weighted-Average Exercise Price
Outstanding (in dollars per share)	$ 16.87	$ 14.04	$ 10.15
Granted (in dollars per share)		31.54	30.28
Exercised (in dollars per share)	8.08	7.85	7.02
Forfeited or expired	14.97	5.07	15.65
Outstanding (in dollars per share)	17.80	16.87	14.04	$ 10.15
Vested (in dollars per share)	17.80	16.87	14.04
Exercisable (in dollars per share)	$ 15.48	$ 12.20	$ 8.84
Weighted-Average Remaining Contractual Term
Outstanding	6 years 22 days	6 years 7 months 13 days	7 years 7 days	6 years 8 months 9 days
Vested	6 years 22 days	6 years 7 months 13 days	7 years 7 days
Exercisable	5 years 8 months 5 days	5 years 6 months 29 days	5 years 6 months 29 days

SHAREHOLDERS’ EQUITY - Nonvested Option Activity (Details) - Stock options - $ / shares shares in Thousands	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Nonvested Options
Nonvested outstanding (in shares)	414	547	653
Granted (in shares)		158	199
Vested (in shares)	(242)	(263)	(273)
Forfeited (in shares)	(6)	(28)	(32)
Nonvested outstanding (in shares)	166	414	547
Nonvested Options, Weighted Average Grant-Date Fair Value
Nonvested (in dollars per share)	$ 8.69	$ 6.43	$ 4.75
Granted (in dollars per share)		12.73	12.23
Vested (in dollars per share)	9.43	7.29	6.68
Forfeited (in dollars per share)	10.87	5.07	15.65
Nonvested (in dollars per share)	$ 12.15	$ 8.69	$ 6.43

SHAREHOLDERS’ EQUITY - Restricted Stock Activity (Details) - USD ($)	12 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
2008 Plan
Weighted-Average Grant Date Fair Value
Outstanding (in dollars per share)	$ 21.94
Awarded (in dollars per share)	28.99	$ 21.94
Vested (in dollars per share)	21.94
Forfeited (in dollars per share)	27.28
Outstanding (in dollars per share)	$ 27.28	$ 21.94
Stock options
Unrecognized compensation expense
Unrecognized compensation expense related to non-vested stock options (in dollars)	$ 1,489,000	$ 3,598,000	$ 3,514,000
Awards granted that were immediately vested (in shares)	0	0	0
Restricted stock
Unrecognized compensation expense
Unrecognized compensation expense related to non-vested stock other than options (in dollars)	$ 1,502,000	$ 1,012,000	$ 1,162,000
Restricted stock \| 2008 Plan
Restricted Stock
Outstanding (in shares)	64,000	87,000	99,000
Awarded (in shares)	37,000	22,000	28,000
Vested (in shares)	(43,000)	(45,000)	(40,000)
Outstanding (in shares)	58,000	64,000	87,000
Weighted-Average Grant Date Fair Value
Outstanding (in dollars per share)	$ 22.28	$ 17.67	$ 11.37
Awarded (in dollars per share)	35.60	28.17	31.53
Vested (in dollars per share)	18.90	16.09	33.02
Outstanding (in dollars per share)	$ 33.33	$ 22.28	$ 17.67
Performance Shares
Unrecognized compensation expense
Unrecognized compensation expense related to non-vested stock other than options (in dollars)	$ 21,515,000	$ 12,254,000	$ 0
Weighted-average period over which unrecognized expense is expected to be recognized	1 year 26 days
Performance Shares \| 2008 Plan
Restricted Stock
Outstanding (in shares)	280,000
Awarded (in shares)	329,000	280,000
Vested (in shares)	(175,000)
Forfeited (in shares)	(3,000)
Outstanding (in shares)	431,000	280,000

SHAREHOLDERS’ EQUITY - Stock Purchase Plan (Details) - Employee Stock Purchase Plan - shares	12 Months Ended
	Dec. 27, 2019	Dec. 29, 2017	Jun. 08, 2017	Dec. 28, 2007
Employee Stock Purchase Plan
Number of shares of common stock reserved for issuance			1,125,000	300,000
Number of additional shares authorized		825,000
Purchase price per share as a percentage of fair market value	85.00%
Number of shares available for issuance	679,000
Minimum
Employee Stock Purchase Plan
Percentage of participant's earnings to be contributed under a share based compensation plan	1.00%
Maximum
Employee Stock Purchase Plan
Percentage of participant's earnings to be contributed under a share based compensation plan	10.00%

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Sep. 27, 2019	Jun. 28, 2019	Mar. 29, 2019	Dec. 28, 2018	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Provision for income taxes
Current federal taxes									$ (548)	$ 3,632	$ 635
Current state taxes									551	1,389	306
Deferred federal taxes									(159)	(2,539)	431
Deferred state taxes									(29)	(351)	190
Total provision for income taxes	$ 1,188	$ (376)	$ (70)	$ (927)	$ (93)	$ 1,597	$ 869	$ (242)	$ (185)	$ 2,131	$ 1,562

INCOME TAXES - Sources (Details) - USD ($) $ in Thousands	3 Months Ended									12 Months Ended
INCOME TAXES - Sources (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Sep. 27, 2019	Jun. 28, 2019	Mar. 29, 2019	Dec. 28, 2018	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 29, 2017	Dec. 27, 2019	Dec. 28, 2018	Dec. 31, 2017	Dec. 29, 2017
U.S. federal statutory rate (as a percent)										21.00%	21.00%	35.00%	34.00%
One-time decrease in deferred tax assets									$ 1,300
Tax Act additional deferred tax expense											$ 200
Sources and tax effects of the differences
Computed "expected" federal income tax expense										$ 977	2,554		$ 4,655
Permanent differences										163	77		(61)
Nondeductible Executive Compensation										688
Stock options and disqualifying dispositions										(731)	(354)		(1,629)
Tax Act - federal rate change													(1,277)
Energy efficient building deduction										(1,291)	(919)
Current and deferred state income tax expense, net of federal benefit										466	815		287
Change in valuation allowances on deferred tax assets													15
Federal deferred tax adjustments										231	220		(441)
Adjustment for uncertain tax positions										(282)	61		363
Research and development tax credit										(510)	(313)		(188)
Adjustment to prior earn-out liability											198
Non-deductible transaction expenses											203
Other										27	(15)		(162)
True up income tax accounts										77
Total provision for income taxes	$ 1,188	$ (376)	$ (70)	$ (927)	$ (93)	$ 1,597	$ 869	$ (242)		$ (185)	$ 2,131		$ 1,562
Maximum
U.S. federal statutory rate (as a percent)													35.00%

INCOME TAXES - Deferred Tax (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Dec. 28, 2018
Deferred tax assets:
Accounts receivable allowance	$ 315	$ 122
Other accrued liabilities	2,124	2,714
Federal and state net operating losses	18,717	20,569
Lease liability	6,467
Stock compensation	3,381	2,167
Adjustments to fair value of assets	79	733
Other	622	173
Total deferred tax assets	31,705	26,478
Valuation allowance	(86)	(86)
Net deferred tax assets	31,619	26,392
Deferred tax liabilities:
Deferred revenue	(5,031)	(5,702)
Fixed assets	(618)	(116)
Intangible assets	(10,077)	(8,041)
Lease Right Of Use Asset	6,127
Other	(454)	(212)
Deferred tax liability	(22,307)	(14,071)
Net deferred tax asset	$ 9,312	$ 12,321

INCOME TAXES - Operating Loss Carryovers and Unrecognized Tax Benefits (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Jun. 28, 2019	Mar. 29, 2019	Dec. 28, 2018	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 31, 2017	Dec. 29, 2017
Income taxes
U.S. federal statutory rate (as a percent)									21.00%	21.00%	35.00%	34.00%
Valuation reserve related to California net operating losses	$ 86,000				$ 86,000				$ 86,000	$ 86,000
Unrecognized tax benefits					142,000					142,000		$ 424,000
Income tax expense (benefit)	$ 1,188,000	$ (376,000)	$ (70,000)	$ (927,000)	(93,000)	$ 1,597,000	$ 869,000	$ (242,000)	$ (185,000)	2,131,000		$ 1,562,000
Reconciliation of unrecognized tax benefits
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions										5,000
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions										287,000
Maximum
Income taxes
U.S. federal statutory rate (as a percent)												35.00%
Federal
Income taxes
Operating loss carryovers					72,700,000					72,700,000
State
Income taxes
Operating loss carryovers					$ 58,000,000					$ 58,000,000

INCOME TAXES - Uncertain tax benefits (Details)	12 Months Ended
INCOME TAXES - Uncertain tax benefits (Details)	Dec. 28, 2018 USD ($)
Reconciliation of unrecognized tax benefits
Balance as of December 29, 2017	$ 424,000
Additions for tax positions of prior years	5,000
Reductions for tax positions of prior years	(287,000)
Balance as of December 28, 2018	$ 142,000

EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Jun. 28, 2019	Mar. 29, 2019	Dec. 28, 2018	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
Earnings per share
Net income	$ 3,202	$ 416	$ 1,640	$ (417)	$ 1,201	$ 3,311	$ 3,315	$ 2,203	$ 4,841	$ 10,030	$ 12,129
Weighted-average common shares outstanding (in shares)	11,357,000	11,217,000	11,100,000	10,974,000	10,662,000	8,844,000	8,796,000	8,753,000	11,162,000	9,264,000	8,541,000
Effect of dilutive stock options and restricted stock awards (in shares)									604,000	499,000	614,000
Weighted-average common shares outstanding-diluted (in shares)	11,913,000	11,789,000	11,679,000	10,974,000	11,217,000	9,343,000	9,288,000	9,185,000	11,766,000	9,763,000	9,155,000
Earnings per share:
Basic	$ 0.28	$ 0.04	$ 0.15	$ (0.04)	$ 0.11	$ 0.37	$ 0.38	$ 0.25	$ 0.43	$ 1.08	$ 1.42
Diluted	$ 0.27	$ 0.04	$ 0.14	$ (0.04)	$ 0.11	$ 0.35	$ 0.36	$ 0.24	$ 0.41	$ 1.03	$ 1.32
Stock options
Anti-dilutive securities excluded from the computation of earnings per share
Number of awards excluded from calculation of dilutive potential common shares (in shares)									155,300	247,800	114,600

BUSINESS COMBINATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended								12 Months Ended
	Jul. 02, 2019	Nov. 09, 2018	Oct. 01, 2018	Apr. 30, 2018	Dec. 27, 2019	Sep. 27, 2019	Jun. 28, 2019	Mar. 29, 2019	Dec. 28, 2018	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
BUSINESS COMBINATIONS
Par value (in dollars per share)					$ 0.01				$ 0.01				$ 0.01	$ 0.01
Cash paid at closing													$ 27,000
Revenues.					$ 129,416	$ 117,494	$ 104,396	$ 91,793	$ 86,438	$ 71,386	$ 59,833	$ 54,595	443,099	$ 272,252	$ 273,352
Cash paid													71,756	124,344	$ 14,603
Onsite Energy Corporation
BUSINESS COMBINATIONS
Aggregate Purchase price	$ 24,905
Revenues.													7,700
Cash paid	24,411
Lime Energy
BUSINESS COMBINATIONS
Proceeds from equity raise		$ 50,000
Aggregate Purchase price		120,000	$ 122,439
Cash paid at closing		$ 56,400
Revenues.													$ 158,700	$ 181,500
Cash paid			$ 122,439
NAM \| Maximum
BUSINESS COMBINATIONS
Aggregate Purchase price				$ 4,000
Willdan Energy Solutions \| Onsite Energy Corporation \| Maximum
BUSINESS COMBINATIONS
Aggregate Purchase price	$ 26,400

BUSINESS COMBINATIONS (Acquisitions) (Details) - USD ($) $ / shares in Units, $ in Thousands							3 Months Ended								12 Months Ended
	Oct. 28, 2019	Jul. 02, 2019	Mar. 08, 2019	Nov. 09, 2018	Oct. 01, 2018	Apr. 30, 2018	Dec. 27, 2019	Sep. 27, 2019	Jun. 28, 2019	Mar. 29, 2019	Dec. 28, 2018	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017	Jun. 26, 2019
Consideration for acquisitions
Cash paid															$ 71,756	$ 124,344	$ 14,603
Cash paid at closing															27,000
Other receivable for working capital adjustment																(63)	(113)
Allocation of acquired assets
Goodwill							$ 127,647				$ 97,748				127,647	97,748	38,184
Additional amortization expense charge due to increase in fair value of intangible assets															11,600	4,500	2,400
Revenue and Income from operations
Revenues.							129,416	$ 117,494	$ 104,396	$ 91,793	86,438	$ 71,386	$ 59,833	$ 54,595	443,099	272,252	273,352
Income from operations							$ 5,529	1,295	$ 2,773	$ (234)	$ 1,679	$ 4,913	$ 4,205	$ 1,974	9,363	12,771	$ 13,704
Delayed Draw Term Loan Facility
Consideration for acquisitions
Maximum borrowing capacity																		$ 50,000
E3, Inc.
Consideration for acquisitions
Tax deductible goodwill	$ 22,000
Value of shares issued and issuable	$ 5,000
Number of trading days considered for calculation of weighted average price per share prior to closing date	10 days
Period over which financial targets must be met	3 years
Maximum Payout	$ 12,000
Contingent consideration	7,000
Cash paid	25,217
Other working capital adjustment	1,973
Total consideration	39,190
Cash paid at closing	27,000
Allocation of acquired assets
Current assets (1)	5,316
Non-current assets (2)	341
Cash	2,264
Equipment and leasehold improvements, net	409
Right-of-use asset	6,766
Current lease liability	(593)
Non-current lease liability	(7,870)
Liabilities	(3,138)
Goodwill	21,995
Net assets acquired	39,190
Revenue and Income from operations
Revenues.															3,700
Income from operations															1,200
E3, Inc. \| Other General And Administrative Expense
Revenue and Income from operations
Acquisition costs															100
E3, Inc. \| Maximum
Consideration for acquisitions
Earn-Out Payments	12,000
Total consideration	44,000
E3, Inc. \| Backlog
Allocation of acquired assets
Intangible assets	2,500
E3, Inc. \| Customer relationships
Allocation of acquired assets
Intangible assets	8,300
E3, Inc. \| Tradename
Allocation of acquired assets
Intangible assets	2,000
E3, Inc. \| Non-compete agreements
Allocation of acquired assets
Intangible assets	$ 900
Onsite Energy Corporation
Consideration for acquisitions
Tax deductible goodwill		$ 6,200
Cash paid		24,411
Other working capital adjustment		494
Total consideration		24,905
Allocation of acquired assets
Current assets (1)		22,254
Non-current assets (2)		10
Equipment and leasehold improvements, net		39
Right-of-use asset		828
Current lease liability		(168)
Non-current lease liability		(660)
Liabilities		(12,222)
Goodwill		6,150
Net assets acquired		24,905
Decrease in current assets															200
Increase in carrying value of goodwill															900
Revenue and Income from operations
Revenues.															7,700
Income from operations															1,800
Onsite Energy Corporation \| General and administrative expenses
Revenue and Income from operations
Acquisition costs															300
Onsite Energy Corporation \| Backlog
Allocation of acquired assets
Intangible assets		800
Onsite Energy Corporation \| Customer relationships
Allocation of acquired assets
Intangible assets		7,374
Onsite Energy Corporation \| Tradename
Allocation of acquired assets
Intangible assets		500
The Weidt Group
Consideration for acquisitions
Tax deductible goodwill			$ 11,500
Cash paid			22,136
Total consideration			22,136
Allocation of acquired assets
Current assets (1)			2,317
Non-current assets (2)			25
Equipment and leasehold improvements, net			198
Right-of-use asset			1,730
Current lease liability			(245)
Non-current lease liability			(1,533)
Liabilities			(612)
Goodwill			11,546
Net assets acquired			22,136
Increase in carrying value of backlog, customer relationships, tradename, and developed technology															900
Decrease in carrying value of liabilities and goodwill															1,200
Additional amortization expense charge due to increase in fair value of intangible assets								100
Revenue and Income from operations
Acquisition costs															400
Revenues.															11,400
Income from operations															1,900
The Weidt Group \| Backlog
Allocation of acquired assets
Intangible assets			750
The Weidt Group \| Customer relationships
Allocation of acquired assets
Intangible assets			4,240
The Weidt Group \| Tradename
Allocation of acquired assets
Intangible assets			550
The Weidt Group \| Developed technology
Allocation of acquired assets
Intangible assets			$ 3,170
Lime Energy
Consideration for acquisitions
Cash paid					$ 122,439
Total consideration				$ 120,000	122,439
Cash paid at closing				$ 56,400
Allocation of acquired assets
Current assets (1)					45,401
Non-current assets (2)					10,605
Cash					1,090
Equipment and leasehold improvements, net					1,892
Liabilities					(33,603)
Goodwill					47,744
Net assets acquired					122,439
Increase in carrying value of backlog, customer relationships, tradename, and developed technology															16,200
Increase in carrying value of goodwill															(16,200)
Additional amortization expense charge due to increase in fair value of intangible assets								$ 1,200
Unaudited pro forma financial information
Pro forma revenue															473,655	452,082
Pro forma income from operations															10,937	19,694
Pro forma net income															$ 6,161	$ 11,934
Earnings per share:
Basic (in dollars per share)															$ 0.55	$ 1.09
Diluted (in dollars per share)															$ 0.52	$ 1.04
Weighted average shares outstanding:
Basic (in shares)															11,162	10,990
Diluted (in shares)															11,766	11,489
Revenue and Income from operations
Acquisition costs															$ 200
Revenues.															158,700	$ 181,500
Income from operations															$ 3,500	$ 8,400
Lime Energy \| Backlog
Allocation of acquired assets
Intangible assets					1,300
Lime Energy \| Customer relationships
Allocation of acquired assets
Intangible assets					35,000
Lime Energy \| Tradename
Allocation of acquired assets
Intangible assets					5,970
Lime Energy \| Developed technology
Allocation of acquired assets
Intangible assets					$ 7,040
NAM \| Maximum
Consideration for acquisitions
Total consideration						$ 4,000
Willdan Energy Solutions \| Onsite Energy Corporation \| Maximum
Consideration for acquisitions
Total consideration		$ 26,400

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Jun. 28, 2019	Mar. 29, 2019	Dec. 28, 2018	Sep. 28, 2018	Jun. 29, 2018	Mar. 30, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 29, 2017
QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Contract revenue	$ 129,416	$ 117,494	$ 104,396	$ 91,793	$ 86,438	$ 71,386	$ 59,833	$ 54,595	$ 443,099	$ 272,252	$ 273,352
Income from operations	5,529	1,295	2,773	(234)	1,679	4,913	4,205	1,974	9,363	12,771	13,704
Income tax (benefit) expense	1,188	(376)	(70)	(927)	(93)	1,597	869	(242)	(185)	2,131	1,562
Net income (loss)	$ 3,202	$ 416	$ 1,640	$ (417)	$ 1,201	$ 3,311	$ 3,315	$ 2,203	$ 4,841	$ 10,030	$ 12,129
Earnings per share:
Basic	$ 0.28	$ 0.04	$ 0.15	$ (0.04)	$ 0.11	$ 0.37	$ 0.38	$ 0.25	$ 0.43	$ 1.08	$ 1.42
Diluted	$ 0.27	$ 0.04	$ 0.14	$ (0.04)	$ 0.11	$ 0.35	$ 0.36	$ 0.24	$ 0.41	$ 1.03	$ 1.32
Weighted-average shares outstanding:
Basic	11,357	11,217	11,100	10,974	10,662	8,844	8,796	8,753	11,162	9,264	8,541
Diluted	11,913	11,789	11,679	10,974	11,217	9,343	9,288	9,185	11,766	9,763	9,155