Business Segments

For the year ended December 31, 2017, we operated through four reportable business segments: (i) Learning Solutions, (ii) Professional & Technical Services, (iii) Sandy Training & Marketing, and (iv) Performance Readiness Solutions. Each of our reportable segments represents an operating segment under U.S. GAAP. 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, tax, 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, digital learning services, system hosting, managed learning services and consulting services globally. This segment serves large companies in the electronics and semiconductors, healthcare, software, financial services and other industries as well as government agencies. This segment also provides apprenticeship and vocational skills training funded by an agency of the United Kingdom government. 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. The Professional & Technical Services segment provides 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 energy and petrochemical industries; federal and state government agencies; and large government contractors. Our proprietary EtaPRO^TM 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^TMportal, 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), compressed natural gas (CNG) and hydrogen fueling stations, as well as supplying equipment.

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 40 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 including through custom publications. 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, training content development and sales enablement solutions. This segment also offers organization performance solutions, including leadership development training, strategy-through-implementation consulting services and employee engagement tools and services. Industries served include manufacturing, aerospace, healthcare, life sciences, consumer products, financial, telecommunications and higher education as well as government agencies.

We do not allocate the following items to the segments: selling, general & administrative expenses, restructuring charges, other income (expense), 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,
	2017			2016			2015
Revenue:
Learning Solutions	$	214,820		$	208,998		$	207,039
Professional & Technical Services	101,051			101,907			119,092
Sandy Training & Marketing	101,104			101,768			87,567
Performance Readiness Solutions	92,233			77,886			76,582
	$	509,208		$	490,559		$	490,280
Gross Profit:
Learning Solutions	$	38,971		$	38,954		$	36,223
Professional & Technical Services	14,426			15,803			23,621
Sandy Training & Marketing	14,524			14,181			11,321
Performance Readiness Solutions	14,106			11,219			10,827
Total gross profit	82,027			80,157			81,992
Selling, general and administrative expenses	57,419			48,597			47,748
Restructuring charges	3,317			—			1,551
Gain (loss) on change in fair value of contingent consideration, net	1,620			(136		)	(371		)
Operating income	22,911			31,424			32,322
Interest expense	3,132			1,568			1,381
Other (expense) income	(90		)	178			(1,318		)
Income before income tax expense	$	19,689		$	30,034		$	29,623

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



	December 31,
	2017		2016
Identifiable assets:
Learning Solutions	$	170,093	$	147,595
Professional & Technical Services	87,014		80,033
Sandy Training & Marketing	29,957		25,804
Performance Readiness Solutions	77,943		62,169
Total assets	$	365,007	$	315,601

Corporate and other assets which consist primarily of cash, 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,
	2017		2016		2015
Additions to property, plant and equipment:
Learning Solutions	$	1,174	$	548	$	768
Professional & Technical Services	480		146		269
Sandy Training & Marketing	70		13		77
Performance Readiness Solutions	73		39		496
Corporate and other	937		656		747
	$	2,734	$	1,402	$	2,357
Depreciation and amortization:
Learning Solutions	$	2,225	$	2,403	$	3,189
Professional & Technical Services	749		797		1,152
Sandy Training & Marketing	439		429		465
Performance Readiness Solutions	2,023		1,530		1,446
Corporate and other	1,538		1,303		1,613
	$	6,974	$	6,462	$	7,865

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



	Years ended December 31,
	2017		2016		2015
United States	$	350,632	$	339,329	$	341,581
United Kingdom	100,466		93,017		98,991
Other	58,110		58,213		49,708
	$	509,208	$	490,559	$	490,280

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



	December 31,
	2017		2016
United States	$	215,523	$	195,693
United Kingdom	75,862		59,018
Other	73,622		60,890
	$	365,007	$	315,601