Reporting Segments

9 Months Ended

Sep. 30, 2015

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 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, 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 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 and professional staffing services to targeted industries that include managed services and managed staffing programs, and functional staffing outsourcing.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Revenue:
GETS	$	84,293		$	88,388		$	251,251		$	254,930
PSS	146,864			192,426			457,682			557,295
MRI	13,505			14,918			40,008			44,061
Total revenue	$	244,662		$	295,732		$	748,941		$	856,286
Gross profit:
GETS	$	22,045		$	24,391		$	64,836		$	69,596
PSS	18,166			23,141			55,751			67,896
MRI	6,616			6,956			19,657			20,556
Total gross profit	$	46,827		$	54,488		$	140,244		$	158,048
Operating profit (loss):
GETS (1), (2), (3)	$	(9,798	)	$	3,429		$	(7,963	)	$	7,200
PSS (1), (3)	(9,092		)	7,367			(1,979		)	20,379
MRI	1,927			1,721			4,957			4,733
Corporate (4)	(5,166		)	(4,035		)	(14,801		)	(12,157		)
Total operating profit (loss)	(22,129		)	8,482			(19,786		)	20,155
Other income (expense), net (5)	683			(133		)	599			(207		)
Income (loss) before income taxes	$	(21,446	)	$	8,349		$	(19,187	)	$	19,948

⁽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,
	2015		2014		2015		2014
GETS	$	235	$	—	$	235	$	419
PSS	331		—		378		(249		)
MRI	—		—		—		—
Corporate	—		—		—		(98		)
Restructuring and other related costs	$	566	$	—	$	613	$	72

⁽²⁾  In the first quarter of 2015, the Company's GETS segment recorded a charge of $0.3 million related to the loss on disposition of the Company's controlling interest in a Mexico-based engineering design company.

⁽³⁾  In the third quarter of 2015, the Company recorded an aggregate charge of $21.5 million related to the impairment of goodwill and certain fixed assets, comprised of GETS $10.9 million and PSS $10.7 million.

⁽⁴⁾  In the first quarter of 2014, the Company recorded an aggregate $0.9 million after tax charge related to the separation of the 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 equity awards.

⁽⁵⁾  In the third quarter of 2015, the Company recorded a pre-tax gain of $0.8 million for a sale of a non-operating corporate asset. Proceeds from the sale were $1.2 million.

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

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

	September 30,		December 31,
	2015		2014
Assets:
GETS	$	111,632	$	120,223
PSS	153,317		159,774
MRI	23,528		23,539
Corporate	61,287		68,684
Total assets	$	349,764	$	372,220