18. 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 engineering services include, but are not limited to, plant design verification and validation, thermal performance evaluation and optimization programs, and engineering programs for plants for ASME code and ASME Section XI. The Company provides these services across all market segments. Example training applications include turnkey and custom training services. Contract terms are typically less than two years.

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 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.

On May 11, 2018, GSE, through Performance Solutions acquired True North. True North is a provider of technical engineering solutions to nuclear and fossil fuel power plants with an emphasis on regulatory-driven ASME code programs. The acquisition of True North is expected to broaden our engineering services offering, expand our relationships with several of the largest nuclear energy providers in the United States, and add a highly specialized, complimentary talent pool to our employee base. For reporting purposes, True North is included in our Performance Improvement Solutions segment due to similarities in services provided including technical engineering solutions to the nuclear and fossil fuel power sector.

In September 20, 2017, the Company acquired Absolute. Absolute is a provider of technical consulting and staffing solutions to the global nuclear power industry and employs approximately 160 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 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 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 tax expense (benefit). Inter-segment revenue is eliminated in consolidation and is not significant.

(in thousands)	Years ended December 31,
	2018			2017
Revenue:
Performance Improvement Solutions	$	42,954		$	39,899
Nuclear Industry Training and Consulting		49,295			30,981
	$	92,249		$	70,880

Depreciation:
Performance Improvement Solutions	$	385		$	321
Nuclear Industry Training and Consulting		130			21
	$	515		$	342

Amortization of definite-lived intangible assets:
Performance Improvement Solutions	$	898		$	246
Nuclear Industry Training and Consulting		714			89
	$	1,612		$	335

Operating income
Performance Improvement Solutions	$	2,640		$	(3,191	)
Nuclear Industry Training and Consulting		(1,274	)		3,420

Operating income	$	1,366		$	229

Interest (expense) income, net		(268	)		80
(Loss) Gain on derivative instruments, net		(350	)		99
Other income (expense), net		29			(4	)
Income before income taxes	$	777		$	404

Additional information relating to segments is as follows:

(in thousands)	December 31,
	2018		2017

Performance Improvement Solutions	$	40,353	$	33,434
Nuclear Industry Training and Consulting		21,087		22,748
Intercompany receivable elimination		-		-
Total assets	$	61,440	$	56,182

For the years ended December 31, 2018 and 2017, 91% and 83%, 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, 2018 and 2017 are as follows:

(in thousands)	Year ended December 31, 2018
	United States		Europe			Asia			Eliminations			Consolidated

Revenue	$	88,979	$	2,150		$	1,120		$	-		$	92,249
Transfers between geographic locations		2,046		-			199			(2,245	)		-
Total revenue	$	91,025	$	2,150		$	1,319		$	(2,245	)	$	92,249
Operating income (loss)	$	2,902	$	(1,116	)	$	(420	)	$	-		$	1,366
Total assets, at December 31	$	171,206	$	3,893		$	3,592		$	(117,251	)	$	61,440

(in thousands)	Year ended December 31, 2017
	United States		Europe			Asia			Eliminations			Consolidated

Revenue	$	66,249	$	3,196		$	1,435		$	-		$	70,880
Transfers between geographic locations		1,953		-			668			(2,621	)		-
Total revenue	$	68,202	$	3,196		$	2,103		$	(2,621	)	$	70,880
Operating income (loss)	$	1,930	$	(1,585	)	$	(116	)	$	-		$	229
Total assets, at December 31	$	148,717	$	5,057		$	4,313		$	(101,905	)	$	56,182

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 U.K. and Sweden subsidiaries was $0.2 million and $1.9 million for the year ended December 31, 2018. All revenues in Asia were attributable to our Chinese subsidiary.

Alternatively, revenues from customers domiciled in foreign countries were approximately 15% and 16%, of the Company’s consolidated 2018 and 2017 revenue, respectively. Revenues from foreign countries where our customers reside were all individually less than 10% of the Company's consolidated revenues during 2018 and 2017.