Segment Information | SEGMENT INFORMATION The Company changed its reportable segments during the third quarter of 2017 to reflect the current tech-focused operating structure, which was announced in the second quarter of 2017 and implemented in the third quarter of 2017. Accordingly, all prior periods have been recast to reflect the current segment presentation. The Company has two reportable segments: Tech-focused and Healthcare. The Tech-focused reportable segment includes the Dice, Dice Europe, ClearanceJobs, eFinancialCareers (formerly in the Global Industry Group segment), and Brightmatter (absorbed into Tech-focused in the third quarter of 2017 and formerly in Corporate & Other) services, as well as the Company ’ s Open Web technology. The getTalent assets and liabilities along with its revenues and expenses that were previously in Brightmatter remain in Corporate & Other. The Healthcare reportable segment includes the Health eCareers service and was unchanged from prior presentation. 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), Hcareers, Rigzone, Biospace (each formerly in the Global Industry Group segment) and getTalent services, which are recorded 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 the Company's Open Web technology, 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 and recast for the change in reportable segments): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 By Segment: Revenues: Tech-focused $ 39,814 $ 42,739 $ 118,638 $ 128,876 Healthcare 6,462 6,735 19,741 20,647 Corporate & Other 6,148 6,599 18,635 22,509 Total revenues $ 52,424 $ 56,073 $ 157,014 $ 172,032 Depreciation: Tech-focused $ 1,789 $ 1,743 $ 5,144 $ 5,508 Healthcare 406 539 1,451 1,630 Corporate & Other 381 196 1,108 501 Total depreciation $ 2,576 $ 2,478 $ 7,703 $ 7,639 Amortization: Tech-focused $ 28 $ 278 $ 108 $ 1,833 Healthcare 162 218 487 654 Corporate & Other 364 1,074 1,091 3,619 Total amortization $ 554 $ 1,570 $ 1,686 $ 6,106 Operating income (loss): Tech-focused $ 9,485 $ 14,147 $ 30,700 $ 40,097 Healthcare (187 ) (366 ) (1,279 ) (537 ) Corporate & Other (6,760 ) (29,864 ) (18,586 ) (44,516 ) Operating income (loss) 2,538 (16,083 ) 10,835 (4,956 ) Interest expense (1,173 ) (901 ) (2,777 ) (2,593 ) Other expense (3 ) (1 ) (10 ) (33 ) Income (loss) before income taxes $ 1,362 $ (16,985 ) $ 8,048 $ (7,582 ) Capital expenditures: Tech-focused $ 1,931 $ 1,783 $ 7,544 $ 5,595 Healthcare 366 245 996 642 Corporate & Other 248 897 1,813 2,005 Total capital expenditures $ 2,545 $ 2,925 $ 10,353 $ 8,242 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 By Geography: Revenues: United States $ 38,869 $ 41,617 $ 117,026 $ 126,617 United Kingdom 4,541 5,291 13,886 18,875 EMEA, APAC and Canada (1) 9,014 9,165 26,102 26,540 Non-United States 13,555 14,456 39,988 45,415 Total revenues $ 52,424 $ 56,073 $ 157,014 $ 172,032 (1) Europe (excluding United Kingdom), the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”) September 30, December 31, Total assets (recast for the change in reportable segments): Tech-focused $ 263,822 $ 263,462 Healthcare 13,287 14,375 Corporate & Other 28,895 32,258 Total assets $ 306,004 $ 310,095 The Company changed its reporting units during the third quarter of 2017 to reflect the current reporting structure. The reporting units are: Tech-focused, Healthcare, Hospitality, Energy, and BioSpace. The following table shows the carrying amount of goodwill by segment as of December 31, 2016 and September 30, 2017 and the changes in goodwill for the nine month period ended September 30, 2017 (in thousands): Tech-focused Healthcare Corporate & Other Total Goodwill at December 31, 2016 $ 152,165 $ 6,269 $ 13,311 $ 171,745 Foreign currency translation adjustment $ 4,896 $ — $ — $ 4,896 Goodwill at September 30, 2017 $ 157,061 $ 6,269 $ 13,311 $ 176,641 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.” 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 and technology professionals in the markets we serve. This decline in demand and any future declines in demand could significantly decrease the use of our finance and technology industry job posting websites and related services, which may adversely affect the Tech-focused reporting unit’s financial condition and results of operations. If recruitment activity is slow in the industries in which we operate during 2017 and beyond, our revenues and results of operations will be negatively impacted. As a result of these factors, in the third quarter, the Company further evaluated the fair value of the Tech-focused reporting unit and believes it is not more likely than not that the fair value is less than the carrying value. 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. The fair value of the Hospitality reporting unit was not substantially in excess of the carrying value as of the most recent annual impairment testing date of October 1, 2016. The percentage by which the estimated fair value exceeded carrying value for the Hospitality reporting unit was 19% . As a result of the continued competition in the Hospitality reporting unit, the Company performed an interim goodwill impairment test of the Hospitality reporting units as of December 31, 2016. The percentage by which the estimated fair value exceeded the carrying value for the Hospitality reporting unit as of December 31, 2016 was 16% . As a result of these factors, in the third quarter, the Company further evaluated the fair value of the Hospitality reporting unit and believes it is not more likely than not that the fair value is less than the carrying value. The Healthcare reporting unit was not at risk of experiencing a fair value less than carrying value. Therefore, no interim impairment testing was performed as of September 30, 2017. The Company disclosed in the second quarter of 2017 that the fair value of the Finance reporting unit, now included in Tech-focused, was not substantially in excess of the carrying value as of the most recent annual impairment testing date of October 1, 2016. See evaluation of the Tech-focused reporting unit above. |