Segment Information | SEGMENT INFORMATION The Company changed its reportable segments during the first quarter of 2016 to reflect the current operating structure. Accordingly, all prior periods have been recast to reflect the current segment presentation. The Company has three reportable segments: Tech & Clearance, Global Industry Group and Healthcare. The Tech & Clearance reportable segment includes the Dice, Dice Europe and ClearanceJobs services. The Global Industry Group reportable segment includes the eFinancialCareers, Rigzone, Hcareers and BioSpace services. The Healthcare reportable segment includes the Health eCareers service. Management has organized its reportable segments based upon our internal management reporting. The Company has other services and activities that individually are not more than 10% of consolidated revenues, operating income or total assets. These include Slashdot Media (business sold in the first quarter of 2016) and Brightmatter, which are reported in the “Corporate & Other” category, along with corporate-related costs which are not considered in a segment. The Company’s foreign operations are comprised of the Dice Europe operations and a portion of the eFinancialCareers and Rigzone services, which operate in Europe, the financial centers of the gulf region of the Middle East and Asia Pacific. The Company’s foreign operations also include Hcareers, which operates in Canada and a portion of Brightmatter, which operates in Europe. Revenue by geographic region, as shown in the table below, is based on the location of each of the Company’s subsidiaries. The following table shows the segment information (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 By Segment: Revenues: Tech & Clearance $ 34,153 $ 35,075 $ 68,159 $ 68,965 Global Industry Group 16,546 20,343 33,100 40,215 Healthcare 6,955 6,451 13,913 12,561 Corporate & Other 19 3,933 787 7,831 Total revenues $ 57,673 $ 65,802 $ 115,959 $ 129,572 Depreciation: Tech & Clearance $ 1,770 $ 1,622 $ 3,508 $ 3,210 Global Industry Group 230 236 452 464 Healthcare 495 284 1,091 561 Corporate & Other 68 112 110 222 Total depreciation $ 2,563 $ 2,254 $ 5,161 $ 4,457 Amortization: Tech & Clearance $ 729 $ 888 $ 1,457 $ 1,768 Global Industry Group 1,074 2,421 2,545 4,838 Healthcare 218 317 436 634 Corporate & Other 49 130 98 259 Total amortization $ 2,070 $ 3,756 $ 4,536 $ 7,499 Operating income (loss): Tech & Clearance $ 13,291 $ 13,289 $ 25,124 $ 25,470 Global Industry Group 2,477 2,712 3,123 4,025 Healthcare 107 203 (171 ) 77 Corporate & Other (7,390 ) (5,688 ) (16,949 ) (9,896 ) Operating income 8,485 10,516 11,127 19,676 Interest expense (820 ) (833 ) (1,692 ) (1,641 ) Other income (expense) (17 ) 18 (32 ) (9 ) Income before income taxes $ 7,648 $ 9,701 $ 9,403 $ 18,026 Capital expenditures: Tech & Clearance $ 1,837 $ 1,342 $ 3,413 $ 2,643 Global Industry Group 186 143 541 522 Healthcare 221 822 397 1,628 Corporate & Other 564 1 966 32 Total capital expenditures $ 2,808 $ 2,308 $ 5,317 $ 4,825 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 By Geography: Revenues: United States $ 42,323 $ 47,512 $ 85,000 $ 92,543 United Kingdom 5,611 8,424 13,584 19,180 EMEA, APAC and Canada (1) 9,739 9,866 17,375 17,849 Non-United States 15,350 18,290 30,959 37,029 Total revenues $ 57,673 $ 65,802 $ 115,959 $ 129,572 (1) Europe (excluding United Kingdom), the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”) June 30, December 31, Total assets: Tech & Clearance $ 171,920 $ 177,519 Global Industry Group 138,769 150,111 Healthcare 16,829 18,134 Corporate & Other 17,262 23,171 Total assets $ 344,780 $ 368,935 The following table shows the carrying amount of goodwill by reportable segment as of December 31, 2015 and June 30, 2016 and the changes in goodwill for the six month period ended June 30, 2016 (in thousands): Tech & Clearance Global Industry Group Healthcare Corporate & Other Total Goodwill at December 31, 2015 $ 95,523 $ 80,096 $ 6,269 $ 16,710 $ 198,598 Foreign currency translation adjustment (858 ) (4,161 ) — (1,615 ) (6,634 ) Goodwill at June 30, 2016 $ 94,665 $ 75,935 $ 6,269 $ 15,095 $ 191,964 The decline in oil prices in 2014 and 2015 and continued low prices in 2016 has decreased demand for energy professionals worldwide. This decline in demand and any future declines in demand for energy professionals could significantly decrease the use of the Company’s energy industry job posting websites and related services, which may adversely affect the energy reporting unit’s financial condition and results of operations. As a result of these factors, the Company further evaluated the fair value of this reporting unit and does not believe this reporting unit is currently at risk of failing the first step of the impairment test. If events and circumstances change resulting in significant reductions in actual operating income or projections of future operating income, the Company will test this reporting unit for impairment prior to the annual impairment test. On June 23, 2016, the United Kingdom (“UK”) held a referendum in which British citizens approved an exit from the EU, commonly referred to as “Brexit.” As a result of the referendum, Brexit could cause disruptions to and create uncertainty surrounding our business, including affecting our relationships with our existing and future customers and employees based in the UK and Europe along with adversely impacting foreign currencies, particularly the British Pound Sterling as compared to the United States dollar. These disruptions and uncertainties could decrease demand for finance, technology and energy professionals in the markets we serve. This decline in demand and any future declines in demand could significantly decrease the use of our finance, technology and energy industry job posting websites and related services, which may adversely affect the related reporting unit’s financial condition and results of operations. If recruitment activity is slow in the industries in which we operate during 2016 and beyond, our revenues and results of operations will be negatively impacted. As a result of these factors, the Company further evaluated the fair value of the following reporting units - Dice Europe, Finance and Energy - and does not believe they are currently at risk of failing the first step of the impairment test. If events and circumstances change resulting in significant reductions in actual operating income or projections of future operating income, the Company will test these reporting units for impairment prior to the annual impairment test. |