Reporting Segments

9 Months Ended

Sep. 30, 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 customers that involve the production of deliverable work products or services performed at a CDI facility or at a customer's facility under the supervision of CDI personnel. These solutions typically include analysis of a customer'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 customers; customer-centered offices to deliver site-specific services; and a near-shore center to leverage low-cost design resources.

• Professional Staffing Services (PSS) - PSS provides skilled technical and professional personnel to its customers for discrete periods of time to augment the customer'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 customers. 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						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Revenue:
GETS	$	88,388		$	81,495		$	254,930		$	239,483
PSS	192,426			182,002			557,295			527,869
MRI	14,918			14,419			44,061			43,393
Total revenue	$	295,732		$	277,916		$	856,286		$	810,745
Gross profit:
GETS	$	24,391		$	22,665		$	69,596		$	66,944
PSS	23,141			22,990			67,896			67,133
MRI	6,956			7,042			20,556			20,316
Total gross profit	$	54,488		$	52,697		$	158,048		$	154,393
Operating profit:
GETS (1)	$	3,429		$	2,917		$	7,200		$	7,639
PSS (1)	7,367			6,489			20,379			17,823
MRI	1,721			1,987			4,733			5,676
Corporate (1), (2)	(4,035		)	(4,447		)	(12,157		)	(14,037		)
Total operating profit	8,482			6,946			20,155			17,101
Other income (expense), net	(133		)	(57		)	(207		)	(170		)
Income before income taxes	$	8,349		$	6,889		$	19,948		$	16,931

⁽¹⁾  The following table summarizes the amount of restructuring and other related costs recognized by reporting segment for the indicated periods:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014			2013
GETS	$	—	$	—	$	419		$	—
PSS	—		—		(249		)	—
MRI	—		—		—			—
Corporate	—		—		(98		)	—
Restructuring and other related costs	$	—	$	—	$	72		$	—

⁽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 Company's former CEO that is comprised of a $0.7 million pre-tax charge ($0.4 million after tax) to operations associated with the former 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:

	September 30,		December 31,
	2014		2013
Assets:
GETS	$	137,232	$	130,269
PSS	170,764		168,786
MRI	25,026		28,098
Corporate	72,642		78,654
Total assets	$	405,664	$	405,807

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