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Business Segments
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Business Segments Business Segments
Effective July 1, 2020, we began managing our business under a new organizational structure on a regional basis through our three geographic markets, North America, EMEA and Emerging Markets. These became our reportable segments in the third quarter of 2020. Effective January 1, 2021 as a result of a change in management, we transferred one of our businesses from our North America segment to our EMEA segment. In addition, we realigned some of our businesses between our North America OPS and North America TPS solutions to more accurately align with their focus industries. We have reclassified the segment financial information herein for the prior year periods to reflect the changes in our segment reporting and conform to the current year's presentation.

The reorganization was done to achieve the following:

•Unlock the potential of organic growth to achieve better business results for our clients and the Company.
•Simplify the matrix and empower rapid local decision making in service of our clients.
•Leverage global practice systems, processes, and intellectual property while enabling regional authority to better align and deliver to local client needs.
•Enable efficient use of our corporate infrastructure with regional resources.

Across our regional operating structure, the Company provides Workforce Transformation Services categorized into three primary solution sets:

•Organizational Performance Solutions (OPS) - focus is on managed learning services, digital learning strategies and content development, business consulting, and leadership development solutions

•Technical Performance Solutions (TPS) - focus is on engineering and technical services, enterprise technology adoption and Human Capital Management (HCM) implementation services.

•Automotive Performance Solutions (APS) - provides sales enablement solutions, including custom product sales training and other customer loyalty and marketing related services.

We have also identified four focus industries to deliver these services which include Automotive, Financial Services, Defense and Aerospace and Technology.

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

Three Months Ended
March 31,
20212020
Revenue:  
North America$72,329 $84,936 
EMEA29,973 31,898 
Emerging Markets12,249 11,447 
 $114,551 $128,281 
Gross profit:  
North America$14,493 $13,058 
EMEA5,050 3,776 
Emerging Markets1,898 780 
     Total gross profit21,441 17,614 
General and administrative expenses14,836 17,284 
Sales and marketing expenses2,468 1,839 
Restructuring charges699 — 
Loss on change in fair value of contingent consideration269 — 
Gain on sale of business— 1,064 
Operating income (loss)3,169 (445)
Interest expense181 978 
Other expense823 500 
Income (loss) before income tax expense (benefit)$2,165 $(1,923)
Revenue by Category
The following series of tables presents our revenue disaggregated by various categories (dollars in thousands).



Three Months Ended March 31,
North AmericaEMEAEmerging MarketsConsolidated
20212020202120202021202020212020
Revenue by type of service:  
Organizational Performance Solutions$22,656 $24,000 $10,689 $12,935 $7,127 $5,112 $40,472 $42,047 
Technical Performance Solutions33,202 39,897 18,029 17,305 189 115 51,420 57,317 
Automotive Performance Solutions16,471 21,039 1,255 1,658 4,933 6,220 22,659 28,917 
 $72,329 $84,936 $29,973 $31,898 $12,249 $11,447 $114,551 $128,281 
Revenue by industry focus group:
Automotive$19,679 $24,963 $1,529 $2,630 $5,551 $5,828 $26,759 $33,421 
Financial Services9,306 9,692 6,484 7,402 3,808 3,364 19,598 20,458 
Defense & Aerospace17,521 19,849 1,139 1,654 — — 18,660 21,503 
Technology6,922 6,986 1,514 778 171 287 8,607 8,051 
All Other18,901 23,446 19,307 19,434 2,719 1,968 40,927 44,848 
$72,329 $84,936 $29,973 $31,898 $12,249 $11,447 $114,551 $128,281