SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company changed its reportable segments during the first quarter of 2016 to reflect the current operating structure. Accordingly, all prior periods have been recast to reflect the current segment presentation.

The Company has three reportable segments: Tech & Clearance, Global Industry Group and Healthcare. The Tech & Clearance reportable segment includes the Dice, Dice Europe and ClearanceJobs services. The Global Industry Group reportable segment includes the eFinancialCareers, Rigzone, Hcareers and BioSpace services. The Healthcare reportable segment includes the Health eCareers service. Management has organized its reportable segments based upon our internal management reporting.

The Company has other services and activities that individually are not more than 10% of consolidated revenues, operating income or total assets. These include Slashdot Media (business sold in the first quarter of 2016) and Brightmatter, which are reported in the “Corporate & Other” category, along with corporate-related costs which are not considered in a segment. The Company’s Open Web technology, which is in the WorkDigital reporting unit, resides in Brightmatter, which is included in the Corporate and Other category.  Open Web is sold within the Tech & Clearance and Global Industry Group reportable segments.  However, management does not allocate that revenue nor a royalty to Brightmatter in its internal reporting and management of the business.  Accordingly, there is no internal allocation included in our segment reporting.

The Company’s foreign operations are comprised of the Dice Europe operations and a portion of the eFinancialCareers and Rigzone services, 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, which operates in Canada, and a portion of Brightmatter, which operates in Europe. 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):

	2016			2015			2014
By Segment:
Revenues:
Tech & Clearance	$	135,455		$	140,414		$	136,596
Global Industry Group	63,604			78,283			84,556
Healthcare	27,066			25,877			23,123
Corporate & Other	845			15,195			18,340
Total revenues	$	226,970		$	259,769		$	262,615
Depreciation:
Tech & Clearance	$	6,565		$	6,495		$	6,280
Global Industry Group	891			915			1,017
Healthcare	2,089			1,599			2,639
Corporate & Other	304			289			1,008
Total depreciation	$	9,849		$	9,298		$	10,944
Amortization:
Tech & Clearance	$	1,737		$	3,460		$	3,838
Global Industry Group	4,029			8,735			8,701
Healthcare	835			1,202			3,080
Corporate & Other	186			497			638
Total amortization	$	6,787		$	13,894		$	16,257
Operating income (loss):
Tech & Clearance	$	51,667		$	53,897		$	51,088
Global Industry Group	(18,102		)	(26,624		)	12,708
Healthcare	(929		)	(490		)	(3,252		)
Corporate & Other	(29,245		)	(20,428		)	(13,940		)
Operating income	3,391			6,355			46,604
Interest expense	(3,481		)	(3,289		)	(3,744		)
Other expense	(29		)	(25		)	(11		)
Income (loss) before income taxes	$	(119	)	$	3,041		$	42,849
Capital expenditures:
Tech & Clearance	$	7,047		$	5,652		$	5,611
Global Industry Group	1,166			1,028			870
Healthcare	1,113			2,350			1,548
Corporate & Other	2,088			208			513
Total capital expenditures	$	11,414		$	9,238		$	8,542

	2016		2015		2014
By Geography:
Revenues:
United States	$	167,855	$	185,847	$	187,427
United Kingdom	23,969		36,841		35,452
EMEA, APAC and Canada (1)	35,146		37,081		39,736
Non-United States	59,115		73,922		75,188
Total revenues	$	226,970	$	259,769	$	262,615
(1) Europe (excluding United Kingdom), the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”)

	December 31, 2016		December 31, 2015		December 31, 2014
Total assets:
Tech & Clearance	$	179,985	$	177,519	$	185,547
Global Industry Group	98,821		150,111		189,980
Healthcare	14,375		18,134		19,558
Corporate & Other	16,914		23,171		27,551
Total assets	$	310,095	$	368,935	$	422,636

The following table shows the carrying amount of goodwill by segment as of December 31, 2015 and December 31, 2016 and the changes in goodwill for the years ended (in thousands):

	Tech & Clearance			Global Industry Group			Healthcare			Corporate & Other			Total
Goodwill at January 1, 2015	$	95,946		$	119,531		$	6,269		$	17,510		$	239,256
Foreign currency translation adjustment	(423		)	(4,617		)	—			(800		)	(5,840		)
Impairment	—			(34,818		)	—			—			(34,818		)
Goodwill at December 31, 2015	$	95,523		$	80,096		$	6,269		$	16,710		$	198,598
Foreign currency translation adjustment	(1,485		)	(7,203		)	—			(2,796		)	(11,484		)
Impairment	—			(15,369		)	—			—			(15,369		)
Goodwill at December 31, 2016	$	94,038		$	57,524		$	6,269		$	13,914		$	171,745
Goodwill at December 31, 2016
Goodwill	$	94,038		$	114,924		$	7,714		$	13,914		$	230,590
Accumulated impairment losses	—			(57,400		)	(1,445		)	—			(58,845		)
	$	94,038		$	57,524		$	6,269		$	13,914		$	171,745

The decline in oil prices in 2014 and 2015 and the continued volatility in 2016 have decreased demand for energy professionals worldwide.  This decline in demand for energy professionals significantly decreased the use of the Company’s energy industry job posting websites and related services, adversely affecting the Energy reporting unit’s financial condition and results of operations.  As a result of these factors, the Company further evaluated the fair value of this reporting unit and recorded a goodwill impairment of $15.4 million during the quarter ended September 30, 2016 at the Global Industry Group segment, bringing goodwill for the Energy reporting unit to zero. See Note 5 for further discussion.

On June 23, 2016, the United Kingdom (“UK”) held a referendum in which British citizens approved an exit from the EU, commonly referred to as “Brexit.” Brexit could cause disruptions to and create uncertainty surrounding our business, including affecting our relationships with our existing and future customers and employees based in the UK and Europe along with adversely impacting foreign currencies, particularly the British Pound Sterling as compared to the United States dollar.  These disruptions and uncertainties could decrease demand for finance, technology and energy professionals in the markets we serve. This decline in demand and any future declines in demand could significantly decrease the use of our finance, technology and energy industry job posting websites and related services, which may adversely affect the related reporting unit’s financial condition and results of operations. If recruitment activity is slow in the industries in which we operate during 2017 and beyond, our revenues and results of operations will be negatively impacted. As a result of these factors, in the fourth quarter, the Company further evaluated the fair value of the Dice Europe reporting unit and does not believe it is currently at risk of failing the first step of the impairment test. 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.

The fair value of the Finance and Hospitality reporting units was not substantially in excess of the carrying value as of the most recent annual impairment testing date of October 1, 2016. The percentage by which the estimated fair value exceeded carrying value for the Finance and Hospitality reporting units was 27% and 19%, respectively. As a result of the Company’s newly announced tech-focused strategy, continued uncertainty around Brexit for the Finance reporting unit and continued competition in the Hospitality reporting unit, the Company performed an interim goodwill impairment test of the Finance and Hospitality reporting units as of December 31, 2016. The percentage by which the estimated fair value exceeded carrying value for the Finance and Hospitality reporting units as of December 31, 2016 was 20% and 16%, respectively. All other reporting units were not at risk of failing step one of the goodwill impairment test. The percentage by which the fair value exceeded carrying value for the Finance and Hospitality reporting units at October 1, 2015 was 42% and 122%, respectively.