Segment Information | SEGMENT INFORMATION The Company previously had two reportable segments which was reduced to one reportable segment when Health eCareers (Healthcare reportable segment) was sold on December 4, 2017. The remaining Tech-focused reportable segment includes the Dice, Dice Europe (ceased operations on August 31, 2018), 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. Management has organized its reportable segment based upon our internal management reporting. The Company has other services and activities that individually are not significant in relation to consolidated revenues, operating income or total assets. These include Hcareers (sold May 22, 2018), Rigzone (sold the RigLogix portion of the Rigzone business on February 20, 2018 and transferred majority ownership of the remaining Rigzone business to Rigzone management on August 31, 2018) , Biospace (majority ownership transferred to BioSpace management on January 31, 2018) (each formerly in the Global Industry Group segment) and getTalent services (discontinued in the third quarter of 2017), which were 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 (ceased operations on August 31, 2018) operations and a portion of the eFinancialCareers and Rigzone services (sold the RigLogix portion of the Rigzone business on February 20, 2018 and transferred majority ownership of the remaining Rigzone business to Rigzone management on August 31, 2018), 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 (sold May 22, 2018), which operated in Canada. 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, 2018 2017 2018 2017 By Segment: Revenues: Tech-focused $ 37,986 $ 39,814 $ 114,271 $ 118,638 Healthcare — 6,462 — 19,741 Corporate & Other 931 6,148 9,312 18,635 Total revenues $ 38,917 $ 52,424 $ 123,583 $ 157,014 Depreciation: Tech-focused $ 2,481 $ 1,789 $ 6,832 $ 5,144 Healthcare — 406 — 1,451 Corporate & Other 59 381 323 1,108 Total depreciation $ 2,540 $ 2,576 $ 7,155 $ 7,703 Amortization: Tech-focused $ — $ 28 $ — $ 108 Healthcare — 162 — 487 Corporate & Other — 364 482 1,091 Total amortization $ — $ 554 $ 482 $ 1,686 Operating income (loss): Tech-focused $ 6,313 $ 9,485 $ 19,726 $ 30,700 Healthcare — (187 ) — (1,279 ) Corporate & Other (4,846 ) (6,760 ) (10,340 ) (18,586 ) Operating income 1,467 2,538 9,386 10,835 Interest expense (335 ) (1,173 ) (1,370 ) (2,777 ) Other expense (9 ) (3 ) (42 ) (10 ) Income before income taxes $ 1,123 $ 1,362 $ 7,974 $ 8,048 Capital expenditures: Tech-focused $ 2,363 $ 1,931 $ 6,539 $ 7,544 Healthcare — 366 — 996 Corporate & Other 41 248 221 1,813 Total capital expenditures $ 2,404 $ 2,545 $ 6,760 $ 10,353 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 By Geography: Revenues: United States $ 30,468 $ 38,869 $ 90,673 $ 117,026 United Kingdom 3,626 4,541 12,517 13,886 EMEA, APAC and Canada (1) 4,823 9,014 20,393 26,102 Non-United States 8,449 13,555 32,910 39,988 Total revenues $ 38,917 $ 52,424 $ 123,583 $ 157,014 (1) Europe (excluding United Kingdom), the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”) September 30, December 31, Total assets: Tech-focused $ 239,261 $ 266,390 Corporate & Other 12,144 29,328 Total assets $ 251,405 $ 295,718 The following table shows the carrying amount of goodwill by segment as of December 31, 2017 and September 30, 2018 and the changes in goodwill for the nine month period ended September 30, 2018 (in thousands): Tech-focused Corporate & Other Total Goodwill at December 31, 2017 $ 157,477 $ 13,314 $ 170,791 Foreign currency translation adjustment (2,129 ) — (2,129 ) Sale of business — (13,314 ) (13,314 ) Goodwill at September 30, 2018 $ 155,348 $ — $ 155,348 The Company is currently performing its annual impairment testing analysis as of October 1, 2018. The fair value of the Tech-focused reporting unit was not substantially in excess of the carrying value as of the most recent annual impairment testing date of October 1, 2017. The percentage by which the estimated fair value exceeded the carrying value for the Tech-focused reporting unit was 1%. Revenue projections for the Tech-focused reporting unit have declined due to competition in the technology recruiting market, challenges in developing and introducing new products and product enhancements to the market, the Company’s ability to attribute value delivered to customers, and continued uncertainty around Brexit. Additionally, the Company ceased operations for Dice Europe on August 31, 2018. Tech-focused revenues excluding Dice Europe, declined 7% and 4% for the years ended December 31, 2017 and 2016, respectively. Revenue projections for the year ended December 31, 2018 include a 1% decline, demonstrating an anticipated modest improvement to the rate of decline experienced in the year ended December 31, 2017, and is expected to grow revenue for the year ended December 31, 2019. The Company’s ability to achieve these projections may be impacted by, among other things, the factors noted above that have contributed to the decline in recent periods. Operating expenses, excluding amortization expense, impairment charges and disposition related and other costs in the projections are expected to remain approximately consistent for the year ending December 31, 2018 as compared to the year ended December 31, 2017 and then increase at levels that allow for modest operating margin improvements. The Tech-focused reporting unit has gone through a period of revenue declines as a result of increasing competition for finance and technology professionals in the markets we serve, while our market for security cleared technology professionals through our ClearanceJobs brand continues to experience strong growth. Increased competition 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. During the second quarter of 2018, continuing the Company’s Tech-focused strategy of targeting and investing in areas of growth for the Tech-focused business, the Company announced its intention to terminate the Dice Europe offering. Dice Europe represented 4% and 3% of the Tech-focused revenues for the year ended December 31, 2017 and the nine months ended September 30, 2018, respectively. The impact of closing the Dice Europe offering did not have a material impact on the projected financial results of the Tech-focused business. Results for the Tech-focused reporting unit since October 1, 2017 and estimated future results as of September 30, 2018 are consistent or slightly improved compared to the projections used in the October 1, 2017 analysis. Additionally, the Tax Cuts and Jobs Act, as described in Note 15, reduced the U.S. statutory federal tax rate from 35% to 21%, thereby increasing the reporting unit's projected cash flows and the percentage by which the estimated fair value exceeded the carrying value of the reporting unit. As a result, the Company believes it is not more likely than not that the fair value of the reporting units is less than the carrying value as of September 30, 2018. Therefore, no interim impairment testing was performed as of September 30, 2018. The amount of goodwill as of September 30, 2018 allocated to the Tech-focused reporting unit was $155.3 million. Determining the fair value of a reporting unit is judgmental in nature and requires the use of estimates and key assumptions, particularly assumed discount rates and projections of future operating results. The discount rate applied for the Tech-focused reporting unit was 12.9% as of the October 1, 2017 testing date. An increase to the discount rate applied or reductions to future projected operating results could result in future impairment of the Tech-focused reporting unit’s goodwill. It is reasonably possible that changes in judgments, assumptions and estimates the Company made in assessing the fair value of goodwill could cause the Company to consider some portion or all of the goodwill of the Tech-focused reporting unit to become impaired. In addition, a future decline in the overall market conditions and/or changes in the Company’s market share could negatively impact the estimated future cash flows and discount rates used to determine the fair value of the reporting unit and could result in an impairment charge in the foreseeable future. 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. |