Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information and Geographic Data [Abstract]

Segment Information

10. Segment Information

     The Company has discrete financial data by operating segments available based on its method of internal reporting, which disaggregates its operations. Operating segments are defined as components of the Company for which separate financial information is available to manage resources and evaluate performance.

     The Company does not allocate certain marketing and general and administrative expenses to its business unit segments because these activities are managed separately from the business units. Management does not allocate restructuring and other related (benefits) charges, amortization of purchased intangible assets, stock-based compensation expense, acquisition costs and other related charges, or interest and other income, net to the segments for the review of results by the Chief Operating Decision Maker (“CODM”). Asset information by operating segment is not reported to or reviewed by the CODM, and therefore, the Company has not disclosed asset information for the operating segments.

     The following tables present the service revenues and income before income taxes attributable to these operating segments for the periods presented (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Service Revenues:
SapientNitro	$	168,654		$	125,547		$	322,974		$	241,239
Sapient Global Markets		72,284			62,185			145,849			119,296
Sapient Government Services		13,678			12,619			27,133			23,039
Consolidated Service Revenues	$	254,616		$	200,351		$	495,956		$	383,574
Income Before Income Taxes:
SapientNitro	$	53,320		$	35,539		$	99,618		$	64,981
Sapient Global Markets		20,569			19,288			42,309			39,994
Sapient Government Services		3,768			3,625			7,510			6,397
Total reportable segments operating income (1)		77,657			58,452			149,437			111,372
Less reconciling items (2)		(53,271	)		(44,848	)		(105,104	)		(87,966	)
Consolidated Income Before Income Taxes	$	24,386		$	13,604		$	44,333		$	23,406

(1)	Segment operating income reflects only the direct controllable expenses of each business unit segment. It does not represent the total operating results for each business unit, as it does not contain an allocation of certain corporate and general and administrative expenses incurred in support of the business unit segments.
(2)	Adjustments that are made to reconcile total reportable segments operating income to consolidated income before income taxes include the following (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Centrally managed functions	$	47,729		$	38,702		$	93,730		$	76,826
Restructuring and other related (benefits) charges		(56	)		128			5,586			414
Amortization of purchased intangible assets		1,288			1,359			2,561			2,826
Stock-based compensation expense		5,343			5,404			9,219			9,635
Interest and other income, net		(1,256	)		(745	)		(2,715	)		(1,545	)
Acquisition expense and other related charges		223			—			223			111
Unallocated expenses (a)		—			—			(3,500	)		(301	)
Total	$	53,271		$	44,848		$	105,104		$	87,966

(a) Reflects stock option restatement-related benefits.