Reporting Segments

12 Months Ended

Dec. 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 customers that involve principally 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 feasibility studies, architectural and structural designs, technology assessments, conceptual designs, pricing studies, preliminary designs, execution planning, procurement optimization, detailed designs, testing and validations 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; and customer-centered offices to deliver site-specific services.

• 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, and functional staffing outsourcing. During 2014, 2013 and 2012, IBM accounted for approximately 15%, 19% and 20%, respectively, of the Company’s consolidated revenue. In December 2014, the Company and IBM executed an Amendment to the Master Statement of Work for an additional three years and extends the term until December 31, 2017. IBM may terminate the contract with or without cause at any time.

• Management Recruiters International (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 data is presented in the following table for the indicated periods:

	Year ended December 31,
	2014			2013			2012
Revenue:
GETS	$	335,382		$	321,289		$	325,046
PSS	728,686			708,598			710,268
MRI	58,904			57,972			69,644
Total revenue	$	1,122,972		$	1,087,859		$	1,104,958
Gross profit:
GETS	$	90,104		$	89,801		$	93,718
PSS	88,738			89,546			94,185
MRI	27,715			27,294			31,506
Total gross profit	$	206,557		$	206,641		$	219,409
Operating profit (loss):
GETS (1), (2), (3), (4)	$	(8,256	)	$	11,398		$	12,714
PSS (1)	24,594			21,032			27,062
MRI (1)	6,531			7,603			9,874
Corporate (1)	(17,483		)	(19,117		)	(17,384		)
Total operating profit (loss)	5,386			20,916			32,266
Other (expense) income, net	(228		)	(268		)	(251		)
Income before income taxes	$	5,158		$	20,648		$	32,015

⁽¹⁾  In 2014 and 2013, the Company recorded pre-tax charges of $3.6 million and $5.7 million, respectively, to "Restructuring and other related costs" related to the 2014 and 2013 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,
	2014		2013		2012
GETS	$	2,244	$	2,412	$	—
PSS	1,001		2,269		—
MRI	259		313		—
Corporate	141		722		—
Restructuring and other related costs	$	3,645	$	5,716	$	—

⁽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 earnout liability.

⁽⁴⁾  In 2014, the Company's GETS segment recorded $14.7 million of charges to "Impairment" related to the impairment of goodwill, definite-lived intangibles and other assets.

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

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

	Year ended December 31,
	2014		2013		2012
Depreciation and amortization:
GETS	$	6,599	$	5,730	$	5,171
PSS	1,038		893		840
MRI	344		415		538
Corporate	2,736		3,308		3,716
Total depreciation and amortization	$	10,717	$	10,346	$	10,265

Reporting segment asset data is presented in the following table as of the indicated dates:

	December 31,
	2014		2013
Assets:
GETS	$	120,223	$	130,269
PSS	159,774		168,786
MRI	23,539		28,098
Corporate	68,684		78,654
Total assets	$	372,220	$	405,807

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

	Year ended December 31,
	2014		2013		2012
Purchases of property and equipment:
GETS	$	5,685	$	4,832	$	4,082
PSS	2,008		670		837
MRI	38		29		116
Corporate	1,043		1,998		1,190
Total purchases of property and equipment	$	8,774	$	7,529	$	6,225

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 customer’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,
	2014		2013		2012
Revenue:
US	$	798,285	$	824,228	$	869,679
Canada	206,410		162,252		144,089
UK	113,681		79,743		59,967
Other	4,596		21,636		31,223
Total revenue	$	1,122,972	$	1,087,859	$	1,104,958

	December 31,
	2014		2013
Property and equipment, net:
US	$	18,843	$	18,535
Canada	138		221
UK	1,285		1,633
Other	84		139
Total property and equipment, net	$	20,350	$	20,528