Segment Information | 9 Months Ended |
Sep. 30, 2014 |
Segment Reporting [Abstract] | ' |
Segment Information | ' |
SEGMENT INFORMATION |
Lionbridge has determined that its operating segments are those that are based on its method of internal reporting, which separately presents its business based on the service performed. The Company is reporting its results among the following three business segments: |
GLC—this segment includes solutions that enable the translation, localization and worldwide multilingual release of clients’ online content, sales and marketing information, products and related technical support and training materials to meet the language, cultural, technical and industry-specific requirements of customers in local markets throughout the world. As part of its GLC solutions, Lionbridge also provides global marketing services, and provides engineering, technical documentation and drafting services for clients who market to and support customers in global markets. Lionbridge GLC solutions utilize the Company’s cloud-based technology platforms and applications, its global crowd of qualified professional linguists, translators and in-country specialists and its global service delivery model, which make the translation, localization and content management processes more efficient for Lionbridge and its clients. |
GES—formerly referred to as GDT, this segment includes Lionbridge’s services related to testing clients’ software, websites, mobile applications and hardware utilizing a cost-efficient, blended on-site and offshore model. The GES segment also includes Lionbridge’s specialized business process crowdsourcing services including search relevance testing, in-country testing for mobile devices, and data management solutions. Lionbridge’s business process crowdsourcing solutions combine a dedicated crowd of pre-qualified, in-country professionals, Lionbridge’s secure, task management platform and Lionbridge’s proven program management expertise. This combination enables Lionbridge to align the appropriate combination of skill, capability and geography to meet each client’s requirements. |
Interpretation—this segment includes interpretation services for government and business organizations that require experienced linguists. Lionbridge provides interpretation communication services in more than 360 languages and dialects, including on-site interpretation, over-the-phone interpretation and interpreter testing, training, and assessment services. |
The Company’s internal reporting does not include the allocation of certain expenses to the operating segments but instead includes those other expenses in unallocated corporate and other expense. Unallocated expenses primarily include corporate expenses, such as interest expense, restructuring, impairment and other charges, foreign exchange gains and losses and governance expenses, as well as finance, information technology, human resources, legal, treasury and marketing expenses. The Company determines whether a cost is charged to a particular business segment or is retained as an unallocated cost based on whether the cost relates to a corporate function or to a direct expense associated with the particular business segment. For example, corporate finance, corporate information technology and corporate human resource expenses are unallocated, whereas operating segment finance, information technology and human resource expenses are charged to the applicable operating segment. |
The table below presents information about the Company’s segment data for the three and nine months ended September 30, 2014 and 2013. Asset information by reportable segment is not reported, since the Company does not produce such information internally. |
|
| | | | | | | | | | | | | | | | | | | |
(In thousands) | GLC | | GES | | Interpretation | | Corporate | | Total |
and Other |
Three Months Ended September 30, 2014 | | | | | | | | | |
External revenue | $ | 80,258 | | | $ | 34,297 | | | $ | 5,636 | | | $ | — | | | $ | 120,191 | |
|
Cost of revenue (exclusive of depreciation and amortization) | 51,822 | | | 24,009 | | | 4,777 | | | — | | | 80,608 | |
|
Depreciation and amortization including acquisition-related intangible assets | 1,343 | | | 830 | | | 9 | | | 693 | | | 2,875 | |
|
Other operating expenses | 18,887 | | | 4,812 | | | 545 | | | — | | | 24,244 | |
|
Segment contribution | 8,206 | | | 4,646 | | | 305 | | | (693 | ) | | 12,464 | |
|
Interest expense and other unallocated items | — | | | — | | | — | | | (7,756 | ) | | (7,756 | ) |
|
Income (loss) before income taxes | 8,206 | | | 4,646 | | | 305 | | | (8,449 | ) | | 4,708 | |
|
Provision for income taxes | — | | | — | | | — | | | 1,066 | | | 1,066 | |
|
Net income (loss) | $ | 8,206 | | | $ | 4,646 | | | $ | 305 | | | $ | (9,515 | ) | | $ | 3,642 | |
|
Three Months Ended September 30, 2013 | | | | | | | | | |
External revenue | $ | 84,398 | | | $ | 34,810 | | | $ | 5,439 | | | $ | — | | | $ | 124,647 | |
|
Cost of revenue (exclusive of depreciation and amortization) | 54,170 | | | 24,309 | | | 4,609 | | | — | | | 83,088 | |
|
Depreciation and amortization including acquisition-related intangible assets | 1,257 | | | 787 | | | 8 | | | 642 | | | 2,694 | |
|
Other operating expenses | 18,671 | | | 4,547 | | | 341 | | | — | | | 23,559 | |
|
Segment contribution | 10,300 | | | 5,167 | | | 481 | | | (642 | ) | | 15,306 | |
|
Interest expense and other unallocated items | — | | | — | | | — | | | (9,019 | ) | | (9,019 | ) |
|
Income (loss) before income taxes | 10,300 | | | 5,167 | | | 481 | | | (9,661 | ) | | 6,287 | |
|
Provision for income taxes | — | | | — | | | — | | | 1,273 | | | 1,273 | |
|
Net income (loss) | $ | 10,300 | | | $ | 5,167 | | | $ | 481 | | | $ | (10,934 | ) | | $ | 5,014 | |
|
Nine Months Ended September 30, 2014 | | | | | | | | | |
External revenue | $ | 249,325 | | | $ | 104,258 | | | $ | 17,351 | | | $ | — | | | $ | 370,934 | |
|
Cost of revenue (exclusive of depreciation and amortization) | 165,209 | | | 73,672 | | | 14,678 | | | — | | | 253,559 | |
|
Depreciation and amortization including acquisition-related intangible assets | 3,895 | | | 2,429 | | | 27 | | | 1,873 | | | 8,224 | |
|
Other operating expenses | 57,127 | | | 15,306 | | | 1,394 | | | — | | | 73,827 | |
|
Segment contribution | 23,094 | | | 12,851 | | | 1,252 | | | (1,873 | ) | | 35,324 | |
|
Interest expense and other unallocated items | — | | | — | | | — | | | (23,430 | ) | | (23,430 | ) |
|
Income (loss) before income taxes | 23,094 | | | 12,851 | | | 1,252 | | | (25,303 | ) | | 11,894 | |
|
Provision for income taxes | — | | | — | | | — | | | 2,580 | | | 2,580 | |
|
Net income (loss) | $ | 23,094 | | | $ | 12,851 | | | $ | 1,252 | | | $ | (27,883 | ) | | $ | 9,314 | |
|
Nine Months Ended September 30, 2013 | | | | | | | | | |
External revenue | $ | 237,226 | | | $ | 107,169 | | | $ | 17,329 | | | $ | — | | | $ | 361,724 | |
|
Cost of revenue (exclusive of depreciation and amortization) | 160,643 | | | 74,247 | | | 14,333 | | | — | | | 249,223 | |
|
Depreciation and amortization including acquisition-related intangible assets | 3,857 | | | 2,313 | | | 24 | | | 1,803 | | | 7,997 | |
|
Other operating expenses | 56,341 | | | 13,645 | | | 1,331 | | | — | | | 71,317 | |
|
Segment contribution | 16,385 | | | 16,964 | | | 1,641 | | | (1,803 | ) | | 33,187 | |
|
Interest expense and other unallocated items | — | | | — | | | — | | | (25,040 | ) | | (25,040 | ) |
|
Income (loss) before income taxes | 16,385 | | | 16,964 | | | 1,641 | | | (26,843 | ) | | 8,147 | |
|
Provision for income taxes | — | | | — | | | — | | | 2,636 | | | 2,636 | |
|
Net income (loss) | $ | 16,385 | | | $ | 16,964 | | | $ | 1,641 | | | $ | (29,479 | ) | | $ | 5,511 | |
|
| | | | | | | | | | | | | | | | | | | | |