17.	Segment Information

The Company has two reportable business segments. The Performance 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 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 through GSE, True North and DP Engineering across all market segments. Example training applications include turnkey and custom training services. Contract terms are typically less than two years.

The NITC 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 February 15, 2019, through our wholly-owned subsidiary GSE Performance Solutions, Inc., the Company entered into the DP Engineering Purchase Agreement, to purchase 100% of the membership interests in DP Engineering. DP Engineering is a provider of value-added technical engineering solutions and consulting services to nuclear power plants with an emphasis on preparation and implementation of design modifications during plant outages. For reporting purposes, DP Engineering is included in our Performance segment due to similarities in services provided including engineering solutions and implementation of design modifications to nuclear power sector.

On May 11, 2018, GSE, through our wholly-owned subsidiary GSE Performance Solutions, Inc., entered into the True North Purchase Agreement to purchase 100% of the membership interests in 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 segment due to similarities in services provided including technical engineering solutions to the nuclear and fossil fuel power sector.

Due to the impairment described in Note 8 related to DP Engineering, we recognized charges totaling $5.5 million related to the impairment of certain definite-lived intangible assets and goodwill in our Performance segment.

Our primary measure of segment performance as shown in the table below excluded loss on impairment of intangible and goodwill, and the change in fair value of contingent consideration, net, which we do not believe are representative of the ongoing operations of the Performance segment. Excluding this discrete item from our segment measure of performance allows for better period over period comparison.

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. Inter-segment revenue is eliminated in consolidation and is not significant:

(in thousands)	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018

Revenue:
Performance Improvement Solutions	$	13,010		$	10,864		$	25,200		$	20,765
Nuclear Industry Training and Consulting		10,448			13,834			20,452			26,828
		23,458			24,698			45,652			47,593

Operating loss:
Performance Improvement Solutions		1,010			619			208			(171	)
Nuclear Industry Training and Consulting		(293	)		61			(1,218	)		(277	)
Loss on impairment		-			-			(5,464	)		-
Change in fair value of contingent consideration, net		-			-			1,200			-

Operating income (loss)		717			680			(5,274	)		(448	)

Interest (expense), net		(316	)		(61	)		(524	)		(39	)
Loss on derivative instruments, net		(101	)		(91	)		(8	)		(247	)
Other (expense) income, net		(19	)		4			3			29
Income (loss) before income taxes	$	281		$	532		$	(5,803	)	$	(705	)