Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information [Abstract]

Segment Information

15.  Segment Information

The Company has two reportable business segments.  The Performance Improvement Solutions segment provides simulation, training and engineering products and services delivered across the breadth of industries we serve.  Solutions include simulation for both training and engineering applications.  Example training applications include turnkey and custom training services, while engineering services include plant design verification and validation. The Company provides these services across all market segments.  Contracts typically range from 9 months to 24 months.  The Company and its predecessors have been providing these services since 1976.

The Nuclear Industry Training and Consulting segment provides specialized workforce solutions primarily to the nuclear industry, working at clients' facilities.  This business is managed through our Hyperspring subsidiary.  The business model, management focus, margins and other factors clearly separate this business line from the rest of the GSE product and service portfolio.  Hyperspring has been providing these services since 2005.

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 (loss) before income taxes.

(in thousands)	Years ended December 31,
	2016			2015
Revenue:
Performance Improvement Solutions	$	35,474		$	37,074
Nuclear Industry Training and Consulting		17,627			19,729
	$	53,101		$	56,803
Operating income (loss):
Performance Improvement Solutions	$	(856	)	$	(4,465	)
Nuclear Industry Training and Consulting		2,224			1,178
Change in fair value of contingent consideration, net		207			(849	)
Operating income (loss)	$	1,575		$	(4,136	)
Interest income, net		85			88
Loss on derivative instruments, net		(18	)		(40	)
Other income (expense), net		130			(146	)
Income (loss) before income taxes	$	1,772		$	(4,234	)

Additional information relating to segments is as follows:

(in thousands)	December 31,
	2016		2015
Identifiable assets:
Performance Improvement Solutions	$	42,383	$	30,624
Nuclear Industry Training and Consulting		11,249		8,884
Intercompany receivable elimination		24		(147	)
Total assets	$	53,656	$	39,361

For the years ended December 31, 2016 and 2015, 73% and 71%, respectively, of the Company's consolidated revenue was from customers in the nuclear power industry. The Company designs, develops and delivers business and technology solutions to the energy industry worldwide.  Revenue, operating income (loss) and total assets for the Company's United States, European, and Asian subsidiaries as of and for the years ended December 31, 2016 and 2015 are as follows:

(in thousands)	Year ended December 31, 2016
	United States				Europe				Asia				Eliminations				Consolidated
Revenue		$	46,149			$	4,143			$	2,809			$	-			$	53,101
Transfers between geographic locations			2,639				22				1,139				(3,800	)			-
Total revenue		$	48,788			$	4,165			$	3,948			$	(3,800	)		$	53,101
Operating income (loss)		$	2,921			$	(896	)		$	(450	)		$	-			$	1,575
Total assets, at December 31		$	121,728			$	4,859			$	4,064			$	(76,995	)		$	53,656
(in thousands)	Year ended December 31, 2015
	United States				Europe				Asia				Eliminations				Consolidated
Revenue		$	49,585			$	5,260			$	1,958			$	-			$	56,803
Transfers between geographic locations			1,400				183				1,429				(3,012	)			-
Total revenue		$	50,985			$	5,443			$	3,387			$	(3,012	)		$	56,803
Operating loss		$	(4,053	)		$	(1	)		$	(82	)		$	-			$	(4,136	)
Total assets, at December 31		$	102,325			$	4,991			$	3,915			$	(71,870	)		$	39,361

Revenues by geographic location above are attributed to the contracting entity.  Therefore, revenues from a foreign customer that contracted directly with our U.S. entity are included in revenues from the United States.  In Europe, total revenues attributable to our United Kingdom and Sweden subsidiaries were $2.6 million and $1.5 million, respectively. All revenues in Asia were attributable to our Chinese subsidiary.

Alternatively, revenues from customers domiciled in foreign countries were approximately 33% and 31%, of the Company's consolidated 2016 and 2015 revenue, respectively.  Revenues from foreign countries where our customers reside were all individually less than 10% of the Company's consolidated revenues during 2016 and 2015.