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Business Segments

As of December 31, 2013, we operated through five reportable business segments: (i) Learning Solutions, (ii) Professional & Technical Services, (iii) Sandy Training & Marketing, (iv) Performance Readiness Solutions (formerly RWD), 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.

Effective January 1, 2013, we made changes to our organizational structure to transfer the management responsibility of certain business units between segments, which resulted in a change in the composition of certain of our operating segments. The changes primarily consisted of: (i) the alternative fuels business unit transferred from Professional & Technical Services to Energy Services; (ii) a business unit which predominantly provides content development services to U.S. government and commercial clients transferred from Learning Solutions to Professional & Technical Services; and (iii) our foreign operations in India and China and a portion of our Canadian operations transferred from Professional & Technical Services to Learning Solutions. We have reclassified the segment financial information herein for the prior years to reflect these changes and conform to the current year’s presentation.

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 through our offices in the U.S., Europe, Asia and Canada. 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 to 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, measure performance against competitors 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^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^TM portal, which offers a veriety of courses to power plant personnel in the U.S. and several 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 fuel and 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,
	2013		2012		2011
Revenue:
Learning Solutions	$	189,899	$	158,118	$	126,177
Professional & Technical Services		72,577		82,447		83,551
Sandy Training & Marketing		70,699		70,243		54,604
Performance Readiness Solutions		53,882		55,794		40,079
Energy Services		49,632		34,970		28,756
	$	436,689	$	401,572	$	333,167

Operating income:
Learning Solutions	$	15,210	$	15,927	$	8,938
Professional & Technical Services		5,810		6,868		8,390
Sandy Training & Marketing		4,672		4,897		3,018
Performance Readiness Solutions		2,688		2,548		601
Energy Services		8,296		6,231		5,438
Gain on reversal of deferred rent liability		—		—		1,041
Gain (loss) on change in fair value of contingent consideration, net		1,676		(789)		517
Operating income		38,352		35,682		27,943
Interest expense		(366)		(269)		(209)
Other income		502		389		657
Income before income tax expense	$	38,488	$	35,802	$	28,391

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

	December 31,
	2013		2012
Identifiable assets:
Learning Solutions	$	139,744	$	108,111
Professional & Technical Services		64,292		62,975
Sandy Training & Marketing		21,812		24,250
Performance Readiness Solutions		26,500		27,472
Energy Services		27,808		21,626
Total assets	$	280,156	$	244,434

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,
	2013		2012		2011
Additions to property, plant and equipment:
Learning Solutions	$	2,788	$	1,149	$	1,293
Professional & Technical Services		233		84		296
Sandy Training & Marketing		11		38		6
Performance Readiness Solutions		553		61		161
Energy Services		352		273		643
Corporate and other		2,777		931		1,576
	$	6,714	$	2,536	$	3,975
Depreciation and amortization:
Learning Solutions	$	4,990	$	3,411	$	2,173
Professional & Technical Services		715		668		734
Sandy Training & Marketing		427		428		424
Performance Readiness Solutions		778		1,102		871
Energy Services		393		511		435
Corporate and other		1,314		1,851		1,550
	$	8,617	$	7,971	$	6,187

Information about our revenue in different geographic regions, which are attributable to our wholly owned subsidiaries located in the United Kingdom, Canada, Netherlands, Denmark, Germany, France, Mexico, Colombia, Singapore, China and India is as follows (in thousands):

	Years ended December 31,
	2013		2012		2011
United States	$	347,251	$	323,867	$	274,010
United Kingdom		65,578		61,102		48,151
Other		23,860		16,603		11,006
	$	436,689	$	401,572	$	333,167

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

	December 31,
	2013		2012
United States	$	194,285	$	188,596
United Kingdom		56,481		40,163
Other		29,390		15,675
	$	280,156	$	244,434