Segment Information and Geographical Data

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information and Geographical Data

11. Segment Information and Geographical Data

The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, the Company determined it has three operating segments and three reportable segments: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and Digital AMS practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings. The SAP Solutions reportable segment is the only segment that contains software license sales.

The measurement criteria for segment profit or loss are substantially the same for each reportable segment, excluding any unusual or infrequent items, if any. Segment profit consists of the revenues generated by a segment, less operating expenses that are incurred directly by the segment. Unallocated costs include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Segment information related to assets has been omitted as the Chief Operating Decision Maker does not receive discrete financial information regarding assets at the segment level.

The tables below set forth information about the Company’s operating segments for the three months ended March 31, 2023, and April 1, 2022, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):

	Quarter Ended
	March 31,		April 1,
	2023		2022
Global S&BT:
Total revenue*	$	42,335	$	42,637
Segment profit		13,807		15,641
Oracle Solutions:
Total revenue*	$	17,168	$	21,512
Segment profit		3,049		4,532
SAP Solutions:
Total revenue*	$	11,726	$	11,515
Segment profit		2,634		2,414
Total Company:
Total revenue*	$	71,229	$	75,664
Total segment profit	$	19,490	$	22,587
Items not allocated to segment level:
Corporate general and administrative expenses**		4,961		5,633
Non-cash stock based compensation expense		2,447		2,599
Depreciation and amortization		830		946
Interest expense, net		859		28
Income from continuing operations before taxes	$	10,393	$	13,381

*Total revenue includes reimbursable expenses, which are project travel-related expenses passed through to a client with no associated operating margin.

**Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits.

11. Segment Information and Geographical Data (continued)

The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands):

	Quarter Ended
	March 31,		April 1,
	2023		2022
United States	$	61,351	$	64,393
Europe		6,060		7,537
Other (Australia, Canada, India and Uruguay)		3,818		3,734
Total revenue	$	71,229	$	75,664

Long-lived assets are attributable to the following geographic areas (in thousands):

	March 31,		December 30,
	2023		2022
Long-lived assets:
United States	$	91,175	$	89,705
Europe		14,009		13,640
Other (Australia, Canada, India and Uruguay)		451		482
Total long-lived assets	$	105,635	$	103,827

As of March 31, 2023 and December 30, 2022, foreign assets included $14.5 million and $13.5 million, respectively, of goodwill related to prior acquisitions.