SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

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):

	Three Months Ended March 31,
	2017			2016
By Segment:
Revenues:
Tech & Clearance	$	31,690		$	34,006
Global Industry Group	13,758			16,554
Healthcare	6,714			6,958
Corporate & Other	28			768
Total revenues	$	52,190		$	58,286
Depreciation:
Tech & Clearance	$	1,456		$	1,738
Global Industry Group	225			222
Healthcare	508			596
Corporate & Other	119			42
Total depreciation	$	2,308		$	2,598
Amortization:
Tech & Clearance	$	—		$	728
Global Industry Group	364			1,471
Healthcare	162			218
Corporate & Other	35			49
Total amortization	$	561		$	2,466
Operating income (loss):
Tech & Clearance	$	11,444		$	11,833
Global Industry Group	118			646
Healthcare	(450		)	(278		)
Corporate & Other	(6,817		)	(9,559		)
Operating income	4,295			2,642
Interest expense	(790		)	(872		)
Other expense	(16		)	(15		)
Income before income taxes	$	3,489		$	1,755
Capital expenditures:
Tech & Clearance	$	2,702		$	1,576
Global Industry Group	494			355
Healthcare	342			176
Corporate & Other	604			402
Total capital expenditures	$	4,142		$	2,509

	Three Months Ended March 31,
	2017		2016
By Geography:
Revenues:
United States	$	39,051	$	42,677
United Kingdom	4,735		7,973
EMEA, APAC and Canada (1)	8,404		7,636
Non-United States	13,139		15,609
Total revenues	$	52,190	$	58,286
(1) Europe (excluding United Kingdom), the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”)

	March 31, 2017		December 31, 2016
Total assets:
Tech & Clearance	$	178,345	$	179,985
Global Industry Group	100,628		98,821
Healthcare	14,015		14,375
Corporate & Other	17,456		16,914
Total assets	$	310,444	$	310,095

The following table shows the carrying amount of goodwill by segment as of December 31, 2016 and March 31, 2017 and the changes in goodwill for the three month period ended (in thousands):

	Tech & Clearance		Global Industry Group		Healthcare		Corporate & Other		Total
Goodwill at December 31, 2016	$	94,038	$	57,524	$	6,269	$	13,914	$	171,745
Foreign currency translation adjustment	$	85	$	415	$	—	$	161	$	661
Goodwill at March 31, 2017	$	94,123	$	57,939	$	6,269	$	14,075	$	172,406

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 and technology professionals in the markets we serve. This decline in demand and any future declines in demand could significantly decrease the use of our finance and technology 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 first 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. As a result of these factors, in the first quarter, the Company further evaluated the fair value of the Finance and Hospitality reporting units and does not believe they are currently at risk of failing the first step of the impairment test. All other reporting units were not at risk of failing step one of the goodwill impairment test. Therefore, no interim impairment testing was performed as of March 31, 2017.