16.	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 nine 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 and newly acquired Absolute subsidiaries. The business model, management focus, margins and other factors clearly separate this business line from the rest of the GSE product and service portfolio. The Company and its predecessors have been providing these services since 1997.

On September 20, 2017, the Company acquired Absolute Consulting, Inc., now a wholly-owned subsidiary of GSE Performance Solutions, Inc., for $8.9 million. Absolute Consulting, Inc. is a provider of technical consulting and staffing solutions to the global nuclear power industry and employs approximately 200 professionals with expertise in procedures writing, engineering, technical support, project management, training, project controls, and corrective actions. This acquisition brings a natural adjacency to GSE, fits well with our growth strategy, and benefits our customers from expanded capabilities and offerings. For reporting purposes, Absolute Consulting, Inc. was aggregated with Hyperspring into our Nuclear Industry Training and Consulting segment due to similarities in services provided including training and staff augmentation to the nuclear energy sector. In addition, both entities will report to the same management team and share support staff such as sales, recruiting and business development. As such, 100% of the goodwill acquired was allocated to the Nuclear Industry Training and Consulting segment.

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 taxes:

(in thousands)	Three months ended September 30,				Nine months ended September 30,
	2017		2016			2017	2016

Revenue:
Performance Improvement Solutions	$	8,737	$	10,215	$	30,093	$	27,382
Nuclear Industry Training and Consulting		6,672		4,213		18,783		12,438
		15,409		14,428		48,876		39,820

Operating income:
Performance Improvement Solutions		(1,545)		(413)		(1,885)		(890)
Nuclear Industry Training and Consulting		1,052		321		2,394		1,395
Change in fair value of contingent consideration, net		(139)		525		(436)		370

Operating (loss) income		(632)		433		73		875

Interest income, net		15		11		60		52
Gain (loss) on derivative instruments, net		71		(211)		226		(346)
Other income (expense), net		33		15		(4)		112
(Loss) income before income taxes	$	(513)	$	248	$	355	$	693