Reporting Segments

The Company's reporting segments are as follows:

•

Enterprise Talent - Enterprise Talent provides staff augmentation, placement and other staffing-related services to support its clients’ access to engineering and technology personnel on a temporary or permanent basis. Enterprise Talent focuses on delivering its services to medium and larger sized enterprises that have ongoing needs for skilled and technical labor. The duration of individual client engagements can range from several months to multiple years based on a client’s project, seasonal or business cycle needs. In addition, Enterprise Talent offers enterprise clients managed staffing program services, vendor management solutions, certification management solutions, and recruitment process outsourcing solutions. Enterprise Talent currently operates in North America under the CDI^® brand name. On September 16, 2016, CDI completed the sale of Anders, the Company's UK staffing and recruitment business. See Note—4 Acquisitions and Dispositions.

•

Specialty Talent and Technology Solutions - Specialty Talent and Technology Solutions provides clients with specialized technology talent and solutions through a multi-faceted delivery model that spans staff augmentation and placement services, project execution and management services, and outsourced managed services. Specialty Talent, currently comprised entirely of EdgeRock, provides staff augmentation services focused on specialized information technology skillsets, including enterprise resource planning, business intelligence, analytics, infrastructure and application management and development. Technology Solutions provides a range of information technology professional services in a consult, integrate and operate model. These services include IT strategy and consulting, assessments, execution of IT infrastructure and IT engineering solutions, business application solutions, digital marketing services, service management, quality assurance and testing, and program management.

•

Engineering Solutions - Engineering Solutions provides engineering design, as well as complete physical asset and product delivery solutions for its clients. Engineering design principally involves the production of construction and/or technical documentation and specifications performed at a CDI facility or at a client's facility under the supervision of CDI personnel. Complete physical asset and product delivery solutions involve services that manage the integration of all supply chain contributors to a new or upgraded industrial production or infrastructure asset, naval asset or in support of aerospace and industrial original equipment manufacturers. Engineering Solutions is organized around the following business verticals: Energy, Chemicals and Infrastructure (EC&I), Aerospace and Industrial Equipment (AIE) and Government Services.


◦	EC&I serves producers and operators of energy, chemicals, industrial, education and civil infrastructures with a full range of engineering solutions. Specific services include up-front planning, engineering design, industrial and commercial architecture, design/build, transportation and civil engineering, site services, procurement, construction management, start up and commissioning.


◦	AIE serves commercial and defense aviation, as well as industrial original equipment manufacturers, with design and manufacturing engineering services, including mechanical and electrical systems design, drafting, engineering analysis, software design and verification, validation and testing, and tooling design and development.


◦	Government Services primarily serves the U.S. Department of Defense and, in particular the U.S. Navy, with a variety of design and engineering services, including naval architecture, ship alteration, systems modification and installation, technical documentation and training, logistics management, marine manufacturing and aviation engineering.

Within each of the verticals, Engineering Solutions provides these solutions through a services delivery model consisting of skill-based centers of excellence, together with regional offices to serve more localized project or client needs.

•

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 clients. The MRI franchisees provide permanent placement services primarily under the brand names MRINetwork^®, Management Recruiters^®and Sales Consultants^®. MRI also provides training and support, implementation and back-office services to enable franchisees to pursue contract staffing opportunities.

Inter-segment revenue is eliminated in consolidation and is not significant. 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, certain prepaid expenses, other current assets, certain property and equipment 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,
	2017			2016

Revenue:
Enterprise Talent ⁽¹⁾	$	102,161		$	139,649
Specialty Talent and Technology Solutions	17,914			18,393
Engineering Solutions	56,196			63,254
MRI	11,294			12,228
Total revenue	$	187,565		$	233,524

Gross profit:
Enterprise Talent ⁽¹⁾	$	10,314		$	16,481
Specialty Talent and Technology Solutions	4,955			5,312
Engineering Solutions	13,481			15,477
MRI	5,369			6,005
Total gross profit	$	34,119		$	43,275

Operating profit (loss):
Enterprise Talent ^{(1), (2)}	$	1,780		$	1,135
Specialty Talent and Technology Solutions ⁽³⁾	(1,042		)	445
Engineering Solutions⁽²⁾	(2,601		)	(1,935		)
MRI	249			583
Corporate	(4,245		)	(4,049		)
Total operating loss	(5,859		)	(3,821		)
Other income (expense), net	(413		)	(149		)
Loss before income taxes	$	(6,272	)	$	(3,970	)

⁽¹⁾

On September 16, 2016, the Company completed the sale of Anders, the Company's UK staffing and recruitment business, which is included in Enterprise Talent. During the third quarter of 2016, the Company recorded a charge in the amount of $11.3 million related to the disposition. Anders results are presented in the following table for the indicated periods (excluding allocation of corporate costs):



	Three Months Ended
	March 31,
	2016

Revenue	$	22,965
Gross Profit	3,859
Operating and administrative expenses	4,369
Operating loss	(509		)


⁽²⁾	The following table summarizes the amount of restructuring and other related costs recognized by reporting segment for the indicated periods:



	Three Months Ended
	March 31,
	2017		2016

Restructuring and other related costs:
Enterprise Talent	$	—	$	12
Engineering Solutions	—		37
Total restructuring and other related costs	$	—	$	49


⁽³⁾	In the first quarter of 2016, the Company's Specialty Talent and Technology Solutions segment recorded a benefit to "Operating and administrative expenses" of $0.8 million related to the reversal of the EdgeRock acquisition earnout liability.

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



	March 31,		December 31,
	2017		2016

Assets:
Enterprise Talent	$	115,100	$	102,770
Specialty Talent and Technology Solutions	38,017		38,505
Engineering Solutions	92,281		93,067
MRI	21,552		22,558
Corporate	37,997		32,392
Total assets	$	304,947	$	289,292

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



	Three Months Ended
	March 31,
	2017		2016

Depreciation and amortization:
Enterprise Talent ⁽¹⁾	$	155	$	316
Specialty Talent and Technology Solutions	440		1,002
Engineering Solutions	1,014		1,271
MRI	68		66
Corporate	433		427
Total Depreciation and amortization	$	2,110	$	3,082


⁽¹⁾	On September 16, 2016, the Company completed the sale of Anders, the Company's UK staffing and recruitment business, which is included in Enterprise Talent. Anders depreciation and amortization included in the three months ended March 31, 2016 was $0.2 million.