Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Service Revenues and Income Before Income Taxes Attributable to Reportable Segments



	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
				As Restated						As Restated
Service Revenues:
SapientNitro	$	241,518		$	212,695		$	469,302		$	408,541
Sapient Global Markets	98,506			87,542			192,295			170,598
Sapient Government Services	22,163			14,097			42,131			27,833
Total service revenues	$	362,187		$	314,334		$	703,728		$	606,972
Income Before Income Taxes:
SapientNitro	$	81,779		$	69,873		$	150,543		$	125,597
Sapient Global Markets	28,705			27,550			55,783			51,563
Sapient Government Services	4,130			3,926			7,844			7,816
Total reportable segments operating income ⁽¹⁾	114,614			101,349			214,170			184,976
Less: reconciling items ⁽²⁾	(77,938		)	(66,625		)	(156,000		)	(138,158		)
Total income before income taxes	$	36,676		$	34,724		$	58,170		$	46,818

(1)

Segment operating income 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. Segment operating income reflects restructuring charges allocated to the SapientNitro and Sapient Global Markets reportable segments consisting of immaterial amounts for the three months ended June 30, 2013, and $1.3 million and $0.5 million, respectively, for the six months ended June 30, 2013.


(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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
				As Restated						As Restated
Centrally managed functions	$	65,406		$	58,043		$	130,750		$	115,227
Stock-based compensation expense	8,127			7,834			16,094			14,990
Restructuring and other related charges (benefits)	1,871			(31		)	1,864			1,983
Amortization of purchased intangible assets	3,822			3,263			7,041			6,920
Acquisition costs and other related charges (benefits)	46			(1,284		)	428			(384		)
Impairment of intangible asset	—			—			—			1,494
Other ⁽³⁾	—			—			2,815			—
Interest and other income, net	(1,334		)	(1,200		)	(2,992		)	(2,072		)
Total reconciling items	$	77,938		$	66,625		$	156,000		$	138,158

(3) In the six months ended June 30, 2014, the Company incurred a $2.8 million one-time project personnel expense charge to reimburse employees for costs incurred as part of a restructuring of a global travel program. As this is unrelated to current operations, and neither comparable to prior periods nor predictive of future results, the Company has excluded it from the reportable segments operating income in evaluating management performance.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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