BUSINESS SEGMENTS, MAJOR CUSTOMERS AND SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK

The Company identifies its segments based on the way management organizes the Company to assess performance and make operating decisions regarding the allocation of resources. In accordance with the criteria in FASB ASC 280 "Segment Reporting," the Company has concluded it has three reportable segments: the North America segment, the EMEA segment and the Strategic Alliances segment. The North America and EMEA segments are both single reportable, operating segments that encompass the Company’s operational, technology and software consulting services inside of North America and outside of North America, respectively. Both reportable segments offer management consulting, custom developed software, and technical services. The Strategic Alliances reportable segment is a single, reportable segment that includes the Company’s world-wide commercial activities undertaken with third-party service or solutions providers.

Management evaluates segment performance based upon income (loss) from operations, excluding share-based compensation (benefits) and depreciation. There were no inter-segment revenues during fiscal years 2017 and 2016. In addition, in its administrative division, entitled "Not Allocated to Segments," the Company accounts for non-operating activity and the costs of providing corporate and other administrative services to all the segments, including, but not limited to, goodwill impairment, share-based compensation expense, depreciation expense, certain research and development costs, and costs related to the arbitration with the Company’s former Chief Executive Officer. See Note 13, Commitments and Contingencies, for additional discussion of the arbitration costs. Summarized financial information concerning the Company's reportable segments is shown in the following table (amounts in thousands):



	North America		EMEA		Strategic Alliances			Not Allocated to Segments			Total
As of and for the fiscal year ended December 30, 2017:
Revenues	$	17,247	$	32,896	$	636		$	—		$	50,779
Income (loss) from operations	2,120		2,980		(36		)	(11,442		)	(6,378		)
Total other expense	—		—		—			(62		)	(62		)
Income (loss) before income tax provision (benefit)	2,120		2,980		(36		)	(11,504		)	(6,440		)
Depreciation and amortization	—		—		—			1,250			1,250
Total assets	$	3,127	$	10,004	$	246		$	4,225		$	17,602

As of and for the fiscal year ended December 31, 2016:
Revenues	$	28,065	$	42,894	$	780		$	—		$	71,739
Income (loss) from operations	6,255		6,837		(181		)	(26,737		)	(13,826		)
Total other expense	—		—		—			(305		)	(305		)
Income (loss) before income tax provision (benefit)	6,255		6,837		(181		)	(27,042		)	(14,131		)
Depreciation and amortization	—		—		—			1,295			1,295
Total assets	$	3,378	$	10,113	$	550		$	8,660		$	22,701

Segment assets, regularly reviewed by management as part of its overall assessment of the segments' performance, include both billed and unbilled trade accounts receivable, net of allowances, inventory, and certain other assets, if applicable. Assets not assigned to segments include cash and cash equivalents, current and non-current investments, property and equipment, goodwill and intangible assets and deferred tax assets, excluding deferred tax assets recognized on accounts receivable reserves, which are assigned to their segments.

In accordance with the provisions of FASB ASC 280-10, revenues earned in the United States and internationally based on the location where the services are performed are shown in the following table (amounts in thousands):



	Revenues
	Fiscal Year 2017		Fiscal Year 2016
United States	$	18,626	$	29,348
International:
United Kingdom	28,148		38,123
Other	4,005		4,268
Total	$	50,779	$	71,739

In accordance with the provisions of FASB ASC 280-10, long-lived assets, excluding intangible assets, by geographic area are shown in the following table (amounts in thousands):



	Long-Lived Assets
	December 30, 2017		December 31, 2016
United States	$	2,142	$	2,154
United Kingdom	157		217
France	12		10
Total	$	2,311	$	2,381

Major customers in terms of significance to Cartesian's revenues (i.e. in excess of 10% of revenues) for fiscal years 2017 and 2016 and accounts receivable as of December 30, 2017 and December 31, 2016 were as follows (amounts in thousands):



	Revenues
	Fiscal Year 2017				Fiscal Year 2016
	North America		EMEA		North America		EMEA
Customer A			$	13,963			$	16,022
Customer B	$	6,704			$	11,933
Customer C			$	4,082			$	8,345



	Accounts Receivable
	December 30, 2017		December 31, 2016
Customer A	$	3,521	$	3,317
Customer B	$	452	$	1,100
Customer C	$	548	$	779

Revenues from the Company's ten most significant customers accounted for approximately 82% and 77% of revenues in fiscal years 2017 and 2016, respectively.

Substantially all of Cartesian's receivables are obligations of companies in the communications, media and entertainment industries. The Company generally does not require collateral or other security on its accounts receivable. The credit risk on these accounts is controlled through credit approvals, limits and monitoring procedures. The Company records bad debt expense based on judgment about the anticipated default rate on receivables owed to Cartesian at the end of the reporting period. That judgment is based on the Company's uncollected account experience in prior years and the ongoing evaluation of the credit status of Cartesian's customers and the communications industry in general.