Business Segments

As of December 31, 2019, we operated through two reportable business segments: (i) Workforce Excellence and (ii) Business Transformation Services. We are organized into two operating segments aligned by complementary service lines and supported by a business development organization aligned by industry sector. Each of our two reportable segments represents an operating segment under ASC Topic 280, Segment Reporting. We test our goodwill at the reporting unit level, or one level below an operating segment, under ASC Topic 350, Intangibles - Goodwill and Other. We have four reporting units for purposes of goodwill impairment testing, which represent our four practices which are one level below our operating segments, as discussed below.

Our two segments each consist of two global practice areas which are focused on providing similar and/or complementary products and services across our diverse customer base and within targeted markets. Within each practice are various service lines having specific areas of expertise. Marketing and communications, sales, accounting, finance, legal, human resources, information systems and other administrative services are organized at the corporate level. Business development and sales resources are aligned by industry sector to support existing customer accounts and new customer development across both segments. Further information regarding our business segments is discussed below.

Workforce Excellence. The Workforce Excellence segment advises and partners with leading organizations in designing, implementing, operating and supporting their talent management and workforce strategies, enabling them to gain greater competitive edge in their markets. This segment consists of two practices:

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Managed Learning Services - this practice focuses on creating value for our customers by delivering a suite of talent management and learning design, development, operational and support services that can be delivered as large scale outsourcing arrangements, managed services contracts and project-based service engagements. The Managed Learning Services offerings include strategic learning and development consulting services, digital learning content design and development solutions and a suite of managed learning operations services, including: managed facilitation and delivery, managed training administration and logistics, help desk support, event management and vendor management.

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Engineering & Technical Services - this practice focuses on capital intensive, inherently hazardous and/or highly complex technical services in support of both U.S. government and global commercial industries. Our products and services include design, development and delivery of technical work-based learning, CapEx (plant launch) initiatives, engineering design and construction management, fabrication, and management services, operational excellence consulting, chemical demilitarization services, homeland security services, emergency management support services along with all forms of technical documentation. We deliver world-class asset management and performance improvement consulting to a host of industries. Our proprietary EtaPRO® Performance and Condition Monitoring System provides a suite of real-time digital solutions for hundreds of facilities and is installed in power-generating units around the world. We also provide thousands of technical courses in a web-based off-the-shelf delivery format through our GPiLEARN+™ portal.

Business Transformation Services. The Business Transformation Services segment works with organizations to execute complex business strategies by linking business systems, processes and workforce performance to clear and measurable results. We have a holistic methodology to establishing direction and closing the gap between strategy and execution. Our approach equips business leaders and teams with the tools and capability to deliver high-performance results. This segment consists of two practices:

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Sales Enablement - this practice provides custom product sales training and service technical training, primarily to automotive manufacturers, designed to better educate customer salesforces as well as service technicians with respect to new product features and designs, in effect rapidly increasing the salesforce and technician knowledge base and enabling them to address retail customer needs. Furthermore, this segment helps our clients assess their customer relationship marketing strategy and connect with their customers on a one-to-one basis, including custom print and digital publications. We have been a custom product sales and service technical training provider and leader in serving manufacturing customers in the U.S. automotive industry for over 40 years.

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Organizational Development - this practice works with organizations to design and execute an integrated people performance system. This translates to helping organizations set strategy, carry that strategy through every level of the organization and ensure that their people have the right skills, knowledge, tools, processes and technology to enable transformation and achieve business results. Solutions include strategy, leadership, employee engagement and culture consulting, enterprise technology implementation and adoption solutions, and organization design and business performance consulting.

We do not allocate the following items to the segments: general & administrative expenses, sales & marketing expenses, restructuring charges, other income (expense), interest expense, gain on change in fair value of contingent consideration, net and income tax expense.

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,
	2019		2018			2017
Revenue:
Workforce Excellence	$	329,795	$	316,814		$	308,259
Business Transformation Services	253,495		198,346			200,949
	$	583,290	$	515,160		$	509,208
Gross Profit:
Workforce Excellence	$	55,855	$	50,875		$	52,958
Business Transformation Services	33,358		26,868			29,069
Total gross profit	89,213		77,743			82,027
General and administrative expenses	64,492		54,848			55,753
Sales and marketing expenses	7,875		4,798			1,666
Restructuring charges	1,639		2,930			3,317
Gain on change in fair value of contingent consideration, net	677		4,438			1,620
Gain on sale of business	12,126		—			—
Operating income	28,010		19,605			22,911
Interest expense	6,058		2,945			3,132
Other income (expense)	417		(1,897		)	(90		)
Income before income tax expense	$	22,369	$	14,763		$	19,689

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



	December 31,
	2019		2018
Identifiable assets:
Workforce Excellence	$	290,465	$	283,039
Business Transformation Services	158,437		151,699
Total assets	$	448,902	$	434,738

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,
	2019		2018		2017
Additions to property, plant and equipment:
Workforce Excellence	$	1,657	$	1,321	$	1,609
Business Transformation Services	395		625		184
Corporate and other	263		888		941
	$	2,315	$	2,834	$	2,734
Depreciation and amortization:
Workforce Excellence	$	3,865	$	3,664	$	2,643
Business Transformation Services	3,641		2,827		2,770
Corporate and other	1,976		1,430		1,561
	$	9,482	$	7,921	$	6,974

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,
	2019		2018		2017
United States	$	374,017	$	344,720	$	350,632
United Kingdom	86,511		92,059		100,466
Other	122,762		78,381		58,110
	$	583,290	$	515,160	$	509,208

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



	December 31,
	2019		2018
United States	$	255,649	$	248,657
United Kingdom	72,939		72,048
Canada	43,503		41,974
Other	76,811		72,059
	$	448,902	$	434,738