Business Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

Business Segments

As of December 31, 2014, we operated through five reportable business segments: (i) Learning Solutions, (ii) Professional & Technical Services, (iii) Sandy Training & Marketing, (iv) Performance Readiness Solutions, and (v) Energy Services. Our Learning Solutions segment represents an aggregation of two operating groups in accordance with the aggregation criteria in U.S. GAAP, while all of the other reportable segments each represent one operating group. We are organized by operating group primarily based upon the markets served by each group and/or the services performed. Each operating group consists of business units which are focused on providing specific products and services to certain classes of customers or within targeted markets. Marketing and communications, accounting, finance, legal, human resources, information systems and other administrative services are organized at the corporate level. Business development and sales resources are aligned with operating groups to support existing customer accounts and new customer development.

Further information regarding our business segments is discussed below.

Learning Solutions. The Learning Solutions segment delivers training, curriculum design and development, e-Learning services, system hosting, training business process outsourcing and consulting services globally. This segment also offers organizational performance solutions including leadership training and employee engagement tools and services. This segment serves large companies in the electronics and semiconductors, healthcare, software, financial services and other industries as well as government agencies. The ability to deliver a wide range of training services on a global basis allows this segment to take over the entire learning function for the client, including their training personnel.  

Professional & Technical Services. This segment has over four decades of experience providing training, consulting, engineering and technical services, including lean consulting, emergency preparedness, safety and regulatory compliance, chemical demilitarization and environmental services primarily to large companies in the manufacturing, steel, pharmaceutical and petrochemical industries, federal and state government agencies and large government contractors.

Sandy Training & Marketing. The Sandy Training & Marketing segment provides custom product sales training and has been a leader in serving manufacturing customers in the U.S. automotive industry for over 30 years. Sandy provides custom product sales training designed to better educate customer sales forces with respect to new vehicle features and designs, in effect rapidly increasing the sales force knowledge base and enabling them to address detailed customer queries. Furthermore, Sandy helps our clients assess their customer relationship marketing strategy and connect with their customers on a one-to-one basis. This segment also provides technical training services to automotive manufacturers as well as customers in other industries.

Performance Readiness Solutions. This segment provides performance consulting and technology consulting services, including platform adoption, end-user training, change management, knowledge management, customer product training outsourcing and sales enablement solutions in industries such as manufacturing, aerospace, healthcare, life sciences, consumer products, financial, telecommunications, services and higher education as well as the public sector.

Energy Services. The Energy Services segment provides engineering services, products and training primarily to electric power generators. Our proprietary EtaPRO™ Performance and Condition Monitoring System provides a suite of real-time software solutions for power generation facilities and is installed on power generating units across the world. In addition to providing custom training solutions, this segment provides web-based training through our GPiLearn™ portal, which offers a variety of courses to power plant personnel in the U.S. and other countries.  This segment also provides services to users of alternative fuels, including designing and constructing liquefied natural gas (LNG), liquid to compressed natural gas (LCNG) and hydrogen fueling stations, as well as supplying equipment.

We do not allocate the following items to the segments: other income, interest expense, gain (loss) on change in fair value of contingent consideration and income tax expense.  Inter-segment revenue is eliminated in consolidation and is not significant.

The following table sets forth the revenue and operating results attributable to each reportable segment and includes a reconciliation of segment revenue to consolidated revenue and operating results to consolidated income before income tax expense (in thousands):

	Years ended December 31,
	2014			2013			2012
Revenue:
Learning Solutions	$	241,344		$	189,899		$	158,118
Professional & Technical Services	79,574			72,577			82,447
Sandy Training & Marketing	67,694			70,699			70,243
Performance Readiness Solutions	50,924			53,882			55,794
Energy Services	62,331			49,632			34,970
	$	501,867		$	436,689		$	401,572
Operating income:
Learning Solutions	$	12,721		$	15,210		$	15,927
Professional & Technical Services	8,905			5,810			6,868
Sandy Training & Marketing	4,729			4,672			4,897
Performance Readiness Solutions	3,064			2,688			2,548
Energy Services	13,048			8,296			6,231
Gain (loss) on change in fair value of    contingent consideration, net	1,392			1,676			(789		)
Operating income	43,859			38,352			35,682
Interest expense	(833		)	(366		)	(269		)
Other income (expense)	(203		)	502			389
Income before income tax expense	$	42,823		$	38,488		$	35,802

Additional information relating to our business segments is as follows (in thousands): 

	December 31,
	2014		2013
Identifiable assets:
Learning Solutions	$	174,264	$	139,744
Professional & Technical Services	63,819		64,292
Sandy Training & Marketing	18,775		21,812
Performance Readiness Solutions	23,186		26,500
Energy Services	25,408		27,808
Total assets	$	305,452	$	280,156

Corporate and other assets which consist primarily of cash and cash equivalents, other assets, and deferred tax assets and liabilities are allocated to the segments based on their respective percentage of consolidated revenues.

	Years ended December 31,
	2014		2013		2012
Additions to property, plant and equipment:
Learning Solutions	$	1,987	$	2,788	$	1,149
Professional & Technical Services	291		233		84
Sandy Training & Marketing	8		11		38
Performance Readiness Solutions	44		553		61
Energy Services	144		352		273
Corporate and other	283		2,777		931
	$	2,757	$	6,714	$	2,536
Depreciation and amortization:
Learning Solutions	$	6,856	$	4,990	$	3,411
Professional & Technical Services	738		715		668
Sandy Training & Marketing	427		427		428
Performance Readiness Solutions	619		778		1,102
Energy Services	575		393		511
Corporate and other	543		1,314		1,851
	$	9,758	$	8,617	$	7,971

Information about our revenue in different geographic regions, which are attributable to our wholly owned subsidiaries located primarily in the United States, United Kingdom and other countries is as follows (in thousands):

	Years ended December 31,
	2014		2013		2012
United States	$	380,052	$	347,251	$	323,867
United Kingdom	83,652		65,578		61,102
Other	38,163		23,860		16,603
	$	501,867	$	436,689	$	401,572

Information about our total assets in different geographic regions is as follows (in thousands): 

	December 31,
	2014		2013
United States	$	183,623	$	194,285
United Kingdom	68,285		56,481
Other	53,544		29,390
	$	305,452	$	280,156