SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
By Segment:
Revenues:
Tech & Clearance	$	31,303		$	34,153		$	62,993		$	68,159
Global Industry Group	14,504			16,546			28,262			33,100
Healthcare	6,565			6,955			13,279			13,913
Corporate & Other	28			19			56			787
Total revenues	$	52,400		$	57,673		$	104,590		$	115,959
Depreciation:
Tech & Clearance	$	1,695		$	1,770		$	3,151		$	3,508
Global Industry Group	247			230			472			452
Healthcare	537			495			1,045			1,091
Corporate & Other	340			68			459			110
Total depreciation	$	2,819		$	2,563		$	5,127		$	5,161
Amortization:
Tech & Clearance	$	—		$	729		$	—		$	1,457
Global Industry Group	363			1,074			727			2,545
Healthcare	163			218			325			436
Corporate & Other	45			49			80			98
Total amortization	$	571		$	2,070		$	1,132		$	4,536
Operating income (loss):
Tech & Clearance	$	10,712		$	13,291		$	22,156		$	25,124
Global Industry Group	510			2,477			628			3,123
Healthcare	(642		)	107			(1,092		)	(171		)
Corporate & Other	(6,578		)	(7,390		)	(13,395		)	(16,949		)
Operating income	4,002			8,485			8,297			11,127
Interest expense	(814		)	(820		)	(1,604		)	(1,692		)
Other income (expense)	9			(17		)	(7		)	(32		)
Income before income taxes	$	3,197		$	7,648		$	6,686		$	9,403
Capital expenditures:
Tech & Clearance	$	2,510		$	1,837		$	5,212		$	3,413
Global Industry Group	296			186			790			541
Healthcare	288			221			630			397
Corporate & Other	572			564			1,176			966
Total capital expenditures	$	3,666		$	2,808		$	7,808		$	5,317

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
By Geography:
Revenues:
United States	$	39,106	$	42,323	$	78,157	$	85,000
United Kingdom	4,610		5,611		9,345		13,584
EMEA, APAC and Canada (1)	8,684		9,739		17,088		17,375
Non-United States	13,294		15,350		26,433		30,959
Total revenues	$	52,400	$	57,673	$	104,590	$	115,959
(1) Europe (excluding United Kingdom), the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”)

	June 30, 2017		December 31, 2016
Total assets:
Tech & Clearance	$	173,971	$	179,985
Global Industry Group	100,177		98,821
Healthcare	13,417		14,375
Corporate & Other	18,043		16,914
Total assets	$	305,608	$	310,095

The following table shows the carrying amount of goodwill by segment as of December 31, 2016 and June 30, 2017 and the changes in goodwill for the six month period ended June 30, 2017 (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	$	393	$	1,910	$	—	$	742	$	3,045
Goodwill at June 30, 2017	$	94,431	$	59,434	$	6,269	$	14,656	$	174,790

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 second quarter, the Company further evaluated the fair value of the Dice Europe reporting unit and believes it is not more likely than not that the fair value is less than the carrying value. 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 second quarter, the Company further evaluated the fair value of the Finance and Hospitality reporting units and believes it is not more likely than not that the fair value is less than the carrying value. All other reporting units were not at risk of experiencing a fair value less than carrying value. Therefore, no interim impairment testing was performed as of June 30, 2017.