Reporting Segments

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Reporting Segments

Reporting Segments

The Company has the following three reporting segments:

• Global Engineering and Technology Solutions (GETS) - GETS provides engineering and information technology solutions for its clients that involve the production of deliverable work products or services performed at a CDI facility or at a client's facility under the supervision of CDI personnel. These solutions typically include analysis of a client's engineering or information technology needs and the development of a solution that generally ranges in duration from several months to multiple years. Depending on the industry, engineering services can include such functions as feasibility studies, technology assessment, conceptual design, cost estimating, preliminary design, execution planning, procurement optimization, detailed design, testing and validation of regulatory compliance, technology integration and operating and maintenance support. Information technology services can include assessments, execution of business application services, web development, service-desk support, quality assurance and testing and program management. GETS provides these solutions through a delivery model consisting of: centers of excellence, with concentrated skill sets required for larger, more complex projects; regional centers to service local needs of clients; client-centered offices to deliver site-specific services; and near-shore centers to leverage low-cost design resources.

• Professional Services Staffing (PSS) - PSS provides skilled technical and professional personnel to its clients for discrete periods of time to augment the client's workforce in times of project, seasonal, peak period or business cycle needs. These engagements can range from several months to multiple years in duration. PSS also provides permanent placement services. PSS provides professional staffing services to targeted industries that include managed services and managed staffing programs, functional staffing outsourcing and business advisory services. PSS delivers these services through a delivery model that provides global staffing delivery focused on select engineering and technology skill sets and competencies. During 2013, 2012 and 2011, IBM accounted for approximately 19%, 20% and 21%, respectively, of the Company’s consolidated revenue. In December 2011, the Company and IBM executed a new Master Statement of Work effective as of December 31, 2011 with a term of three years. IBM may terminate the contract with or without cause at any time and has the option to extend the contract by an additional three years, in one-year increments.

• Management Recruiters International, Inc. (MRI) - MRI is a global franchisor that does business as MRINetwork^® and provides the use of its trademarks, business systems and training and support services to its franchisees who engage in the search and recruitment of executive, technical, professional and managerial personnel for employment by their clients. The MRI franchisees provide permanent placement services primarily under the brand names Management Recruiters^®, Sales Consultants^® and OfficeMates 5^®. MRI also provides training and support, implementation services and back-office services to enable franchisees to pursue contract staffing opportunities.

For purposes of performance measurement, the Company charges certain expenses directly attributable to the reporting segments and allocates certain other expenses and support costs. Support costs consist principally of employee benefits administration, accounting support, IT services and shared service center costs. Operating and administrative expenses that are not directly attributable to the reporting segments are classified as corporate. Identifiable assets of the reporting segments exclude corporate assets. Corporate assets consist principally of all cash and cash equivalents, all current and deferred income tax assets, and certain corporate assets not directly associated with the reporting segments including certain property and equipment and certain prepaid expenses and other current assets and certain other non-current assets.

Reporting segment data is presented in the following table for the indicated periods:

	Year ended December 31,
	2013			2012			2011
Revenue:
GETS	$	321,289		$	325,046		$	323,546
PSS	708,598			710,268			667,662
MRI	57,972			69,644			68,595
Total revenue	$	1,087,859		$	1,104,958		$	1,059,803
Gross profit:
GETS	$	89,801		$	93,718		$	96,808
PSS	89,546			94,185			95,569
MRI	27,294			31,506			32,924
Total gross profit	$	206,641		$	219,409		$	225,301
Operating profit:
GETS (1), (2), (3)	$	25,150		$	25,725		$	14,979
PSS (1), (4)	12,621			20,528			22,187
MRI (1)	8,549			10,201			9,468
Corporate (1)	(25,404		)	(24,188		)	(26,259		)
Total operating profit	20,916			32,266			20,375
Other (expense) income, net	(268		)	(251		)	(245		)
Income before income taxes	$	20,648		$	32,015		$	20,130

⁽¹⁾  In 2013 and 2011, the Company recorded pre-tax charges of $5.7 million and $8.1 million, respectively, to "Restructuring and other related costs" related to the 2013 and 2011 Restructuring Plans. The following table summarizes the amount of restructuring and other related costs recognized by reporting segment for the indicated periods:

	Year ended December 31,
	2013		2012		2011
GETS	$	2,132	$	—	$	4,467
PSS	2,394		—		2,622
MRI	215		—		372
Corporate	975		—		639
Restructuring and other related costs	$	5,716	$	—	$	8,100

⁽²⁾  In 2013, the Company's GETS segment recorded a $3.3 million benefit to "Operating and administrative expenses" related to the settlement of legal claims pursued by the Company.

⁽³⁾  In 2013, the Company's GETS segment recorded a $1.8 million benefit to "Operating and administrative expenses" related to the reduction of an acquisition-related earnout liability.

⁽⁴⁾  In 2011, the Company's PSS segment recorded a $9.7 million benefit to "Operating and administrative expenses" related to the successful legal appeal of the UK OFT matter.

Inter-segment activity is not significant; therefore, revenue reported for each operating segment is substantially from external clients.

Total depreciation and amortization by reporting segment is presented in the table below for the indicated periods:

	Year ended December 31,
	2013		2012		2011
Depreciation and amortization:
GETS	$	5,730	$	5,171	$	5,761
PSS	893		840		1,210
MRI	415		538		400
Corporate	3,308		3,716		3,637
Total depreciation and amortization	$	10,346	$	10,265	$	11,008

Reporting segment asset data is presented in the following table for the indicated periods:

	December 31,
	2013		2012
Assets:
GETS	$	130,269	$	142,428
PSS	168,786		150,795
MRI	28,098		29,044
Corporate	78,654		78,438
Total assets	$	405,807	$	400,705

Capital expenditure data by reporting segment is presented in the table below for the indicated periods:

	Year ended December 31,
	2013		2012		2011
Purchases of property and equipment:
GETS	$	4,832	$	4,082	$	2,734
PSS	670		837		757
MRI	29		116		649
Corporate	1,998		1,190		1,518
Total purchases of property and equipment	$	7,529	$	6,225	$	5,658

The Company is domiciled in the U.S. and its reporting segments (other than PSS) operate primarily in the U.S. and Canada. Revenue attributable to foreign countries is determined based on the client’s country of domicile. Revenue and fixed assets by geographic area are presented in the tables below for the indicated periods:

	Year ended December 31,
	2013		2012		2011
Revenue:
US	$	824,228	$	869,679	$	889,671
Canada	162,252		144,089		99,541
UK	79,743		59,967		55,900
Other	21,636		31,223		14,691
Total revenue	$	1,087,859	$	1,104,958	$	1,059,803

	December 31,
	2013		2012
Property and equipment, net:
US	$	18,535	$	19,902
Canada	221		301
UK	1,633		1,724
Other	139		163
Total property and equipment, net	$	20,528	$	22,090