SEGMENT INFORMATION

The Company changed its reportable segments during the third quarter of 2017 to reflect the current tech-focused operating structure, which was announced in the second quarter of 2017 and implemented in the third quarter of 2017. Accordingly, all prior periods have been recast to reflect the current segment presentation.

The Company has two reportable segments: Tech-focused and Healthcare. The Tech-focused reportable segment includes the Dice, Dice Europe, ClearanceJobs, eFinancialCareers (formerly in the Global Industry Group segment), and Brightmatter (absorbed into Tech-focused in the third quarter of 2017 and formerly in Corporate & Other) services, as well as the Company’s Open Web technology. The getTalent assets and liabilities along with its revenues and expenses that were previously in Brightmatter remain in Corporate & Other. The Healthcare reportable segment includes the Health eCareers service and was unchanged from prior presentation. 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), Hcareers, Rigzone, Biospace (each formerly in the Global Industry Group segment) and getTalent services, which are recorded in the "Corporate & Other" category, along with corporate-related costs which are not considered in a segment.

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 the Company's Open Web technology, 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 and recast for the change in reportable segments):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
By Segment:
Revenues:
Tech-focused	$	39,814		$	42,739		$	118,638		$	128,876
Healthcare	6,462			6,735			19,741			20,647
Corporate & Other	6,148			6,599			18,635			22,509
Total revenues	$	52,424		$	56,073		$	157,014		$	172,032

Depreciation:
Tech-focused	$	1,789		$	1,743		$	5,144		$	5,508
Healthcare	406			539			1,451			1,630
Corporate & Other	381			196			1,108			501
Total depreciation	$	2,576		$	2,478		$	7,703		$	7,639

Amortization:
Tech-focused	$	28		$	278		$	108		$	1,833
Healthcare	162			218			487			654
Corporate & Other	364			1,074			1,091			3,619
Total amortization	$	554		$	1,570		$	1,686		$	6,106

Operating income (loss):
Tech-focused	$	9,485		$	14,147		$	30,700		$	40,097
Healthcare	(187		)	(366		)	(1,279		)	(537		)
Corporate & Other	(6,760		)	(29,864		)	(18,586		)	(44,516		)
Operating income (loss)	2,538			(16,083		)	10,835			(4,956		)
Interest expense	(1,173		)	(901		)	(2,777		)	(2,593		)
Other expense	(3		)	(1		)	(10		)	(33		)
Income (loss) before income taxes	$	1,362		$	(16,985	)	$	8,048		$	(7,582	)

Capital expenditures:
Tech-focused	$	1,931		$	1,783		$	7,544		$	5,595
Healthcare	366			245			996			642
Corporate & Other	248			897			1,813			2,005
Total capital expenditures	$	2,545		$	2,925		$	10,353		$	8,242



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
By Geography:
Revenues:
United States	$	38,869	$	41,617	$	117,026	$	126,617
United Kingdom	4,541		5,291		13,886		18,875
EMEA, APAC and Canada (1)	9,014		9,165		26,102		26,540
Non-United States	13,555		14,456		39,988		45,415
Total revenues	$	52,424	$	56,073	$	157,014	$	172,032

(1) Europe (excluding United Kingdom), the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”)



	September 30, 2017		December 31, 2016
Total assets (recast for the change in reportable segments):
Tech-focused	$	263,822	$	263,462
Healthcare	13,287		14,375
Corporate & Other	28,895		32,258
Total assets	$	306,004	$	310,095

The Company changed its reporting units during the third quarter of 2017 to reflect the current reporting structure. The reporting units are: Tech-focused, Healthcare, Hospitality, Energy, and BioSpace. The following table shows the carrying amount of goodwill by segment as of December 31, 2016 and September 30, 2017 and the changes in goodwill for the nine month period ended September 30, 2017 (in thousands):



	Tech-focused		Healthcare		Corporate & Other		Total
Goodwill at December 31, 2016	$	152,165	$	6,269	$	13,311	$	171,745
Foreign currency translation adjustment	$	4,896	$	—	$	—	$	4,896
Goodwill at September 30, 2017	$	157,061	$	6,269	$	13,311	$	176,641

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 Tech-focused 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 third quarter, the Company further evaluated the fair value of the Tech-focused 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 Hospitality reporting unit 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 Hospitality reporting unit was 19%. As a result of the continued competition in the Hospitality reporting unit, the Company performed an interim goodwill impairment test of the Hospitality reporting units as of December 31, 2016. The percentage by which the estimated fair value exceeded the carrying value for the Hospitality reporting unit as of December 31, 2016 was 16%. As a result of these factors, in the third quarter, the Company further evaluated the fair value of the Hospitality reporting unit and believes it is not more likely than not that the fair value is less than the carrying value. The Healthcare reporting unit was not at risk of experiencing a fair value less than carrying value. Therefore, no interim impairment testing was performed as of September 30, 2017.

The Company disclosed in the second quarter of 2017 that the fair value of the Finance reporting unit, now included in Tech-focused, was not substantially in excess of the carrying value as of the most recent annual impairment testing date of October 1, 2016. See evaluation of the Tech-focused reporting unit above.