Reporting Segments

3 Months Ended

Mar. 31, 2014

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 Staffing Services (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.

• 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 operations data is presented in the following table for the indicated periods:

	Three Months Ended
	March 31,
	2014			2013
Revenue:
GETS	$	82,254		$	78,037
PSS	180,139			177,108
MRI	13,879			14,321
Total revenue	$	276,272		$	269,466
Gross profit:
GETS	$	22,400		$	21,524
PSS	21,946			22,270
MRI	6,417			6,357
Total gross profit	$	50,763		$	50,151
Operating profit:
GETS (1)	$	1,556		$	1,880
PSS (1)	6,145			6,165
MRI	1,260			1,629
Corporate (2)	(4,276		)	(4,761		)
Total operating profit	4,685			4,913
Other income (expense), net	(82		)	(51		)
Income before income taxes	$	4,603		$	4,862

⁽¹⁾  During the three months ended March 31, 2014, the Company recorded pre-tax charges of $0.4 million, to "Restructuring and other related costs" related to the 2013 Restructuring Plan. The following table summarizes the amount of restructuring and other related costs recognized by reporting segment for the indicated periods:

	Three Months Ended
	2014
	2014		2013
GETS	$	333	$	—
PSS	37		—
MRI	—		—
Corporate	—		—
Restructuring and other related costs	$	370	$	—

⁽²⁾  In the first quarter of 2014, the Company recorded an aggregate $0.9 million after tax charge to net income related to the separation of the CEO that is comprised of a $0.7 million pre-tax charge ($0.4 million after tax) to operations associated with the CEO's separation arrangement and an additional $0.5 million charge to income tax expense for the write-off of deferred tax assets related to the forfeiture of outstanding equity awards.

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

	March 31,		December 31,
	2014		2013
Assets:
GETS	$	135,392	$	130,269
PSS	200,239		168,786
MRI	29,985		28,098
Corporate	41,057		78,654
Total assets	$	406,673	$	405,807

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