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Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company has five operating segments. The executive search business operates in the Americas, Europe (which includes Africa) and Asia Pacific (which includes the Middle East), and the Heidrick Consulting and On-Demand Talent businesses operate globally. In 2023, the Company changes its measure of segment profitability from operating income to Adjusted EBITDA. The following tables include Adjusted EBITDA, which is the measure of segment profitability reported to the chief operating decision maker for purposes of allocating resources to the segments and assessing their performance. For segment purposes, reimbursements of out-of-pocket expenses classified as revenue and other operating income are reported separately and, therefore, are not included in the results of each segment. The Company believes that analyzing trends in revenue before reimbursements (net revenue), analyzing operating expenses as a percentage of net revenue, and analyzing Adjusted EBITDA, and Adjusted EBITDA margin more appropriately reflect its core operations. The Company evaluates performance and allocates resources based on the chief operating decision maker’s review of (1) net revenue and (2) net income before interest, taxes, depreciation and amortization, as adjusted, to the extent they occur, for earnout accretion, earnout fair value adjustments, contingent compensation, deferred compensation plan income or expense, certain reorganization costs, impairment charges and restructuring charges ("Adjusted EBITDA"). Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue in the same period.
| December 31,
| 2023 |  | 2022 |  | 2021
Revenue before reimbursements (net revenue) | $ | 1,026,864 |  |  | $ | 1,073,464 |  |  | $ | 1,003,001 |
Net income | 54,410 |  |  | 79,486 |  |  | 72,572 |
Interest, net | (11,617) |  |  | (5,337) |  |  | (302) |
Other, net | (1,697) |  |  | 2,367 |  |  | (7,463) |
Provision for income taxes | 34,261 |  |  | 35,750 |  |  | 33,457 |
Operating income | 75,357 |  |  | 112,266 |  |  | 98,264 |
Adjustments |  |  |  |  |
Depreciation | 9,113 |  |  | 7,394 |  |  | 7,150 |
Intangible amortization | 9,395 |  |  | 3,209 |  |  | 2,898 |
Earnout accretion | 1,554 |  |  | 820 |  |  | 486 |
Earnout fair value adjustments | — |  |  | (464) |  |  | 11,368 |
Acquisition contingent consideration | 11,934 |  |  | 3,885 |  |  | 1,973 |
Deferred compensation plan | 6,132 |  |  | (6,232) |  |  | 3,057 |
Reorganization costs | 4,886 |  |  | — |  |  | — |
Impairment charges | 7,246 |  |  | — |  |  | — |
Restructuring charges | — |  |  | — |  |  | 3,792 |
Total adjustments | 50,260 |  |  | 8,612 |  |  | 30,724 |
Adjusted EBITDA | $ | 125,617 |  |  | $ | 120,878 |  |  | $ | 128,988 |
Adjusted EBITDA margin | 12.2 | % |  | 11.3 | % |  | 12.9 | %
The revenue, adjusted EBITDA, depreciation and amortization, and capital expenditures, by segment, are as follows:
|  | December 31,
|  | 2023 |  | 2022 |  | 2021
Revenue |  |  |  |  |  |
Executive Search |  |  |  |  |  |
Americas |  | $ | 522,988 |  |  | $ | 612,881 |  |  | $ | 581,440 |
Europe |  | 166,379 |  |  | 176,275 |  |  | 170,312 |
Asia Pacific |  | 90,678 |  |  | 112,766 |  |  | 117,008 |
Total Executive Search |  | 780,045 |  |  | 901,922 |  |  | 868,760 |
On-Demand Talent |  | 152,506 |  |  | 91,349 |  |  | 66,636 |
Heidrick Consulting |  | 94,313 |  |  | 80,193 |  |  | 67,605 |
Revenue before reimbursements |  | 1,026,864 |  |  | 1,073,464 |  |  | 1,003,001 |
Reimbursements |  | 14,318 |  |  | 10,122 |  |  | 5,473 |
Total revenue |  | $ | 1,041,182 |  |  | $ | 1,083,586 |  |  | $ | 1,008,474 |
Adjusted EBITDA |  |  |  |  |  |
Executive Search |  |  |  |  |  |
Americas |  | $ | 173,358 |  |  | $ | 164,193 |  |  | $ | 154,087 |
Europe |  | 22,246 |  |  | 22,150 |  |  | 20,219 |
Asia Pacific |  | 11,070 |  |  | 19,813 |  |  | 19,442 |
Total Executive Search |  | 206,674 |  |  | 206,156 |  |  | 193,748 |
On-Demand Talent |  | 1,434 |  |  | (336) |  |  | 4,592 |
Heidrick Consulting |  | (5,823) |  |  | (6,444) |  |  | (14,685) |
Total segments |  | 202,285 |  |  | 199,376 |  |  | 183,655 |
Research and development |  | (20,535) |  |  | (19,965) |  |  | — |
Global Operations Support |  | (56,133) |  |  | (58,533) |  |  | (54,667) |
Total adjusted EBITDA |  | $ | 125,617 |  |  | $ | 120,878 |  |  | $ | 128,988 |
Depreciation and amortization |  |  |  |  |  |
Executive Search |  |  |  |  |  |
Americas |  | $ | 3,092 |  |  | $ | 3,498 |  |  | $ | 12,843 |
Europe |  | 1,343 |  |  | 1,451 |  |  | 1,802 |
Asia Pacific |  | 976 |  |  | 1,126 |  |  | 1,399 |
Total Executive Search |  | 5,411 |  |  | 6,075 |  |  | 16,044 |
On-Demand Talent |  | 8,197 |  |  | 2,669 |  |  | 2,010 |
Heidrick Consulting |  | 2,179 |  |  | 878 |  |  | 1,045 |
Total segments |  | 15,787 |  |  | 9,622 |  |  | 19,099 |
Research and development |  | 2,073 |  |  | 524 |  |  | — |
Global Operations Support |  | 648 |  |  | 457 |  |  | 461 |
Total depreciation and amortization |  | $ | 18,508 |  |  | $ | 10,603 |  |  | $ | 19,560 |
Capital expenditures |  |  |  |  |  |
Executive Search |  |  |  |  |  |
Americas |  | $ | 2,351 |  |  | $ | 1,890 |  |  | $ | 4,487 |
Europe |  | 1,827 |  |  | 683 |  |  | 372 |
Asia Pacific |  | 618 |  |  | 1,497 |  |  | 209 |
Total Executive Search |  | 4,796 |  |  | 4,070 |  |  | 5,068 |
On-Demand Talent |  | 398 |  |  | 732 |  |  | — |
Heidrick Consulting |  | 559 |  |  | 128 |  |  | 174 |
Total segments |  | 5,753 |  |  | 4,930 |  |  | 5,242 |
Research and development |  | 7,170 |  |  | 4,878 |  |  | — |
Global Operations Support |  | 510 |  |  | 1,326 |  |  | 998 |
Total capital expenditures |  | $ | 13,433 |  |  | $ | 11,134 |  |  | $ | 6,240 |
Identifiable assets, and goodwill and other intangible assets, net, by segment, are as follows:
|  | December 31,
|  | 2023 |  | 2022
Current assets |  |  |  |
Executive Search |  |  |  |
Americas |  | $ | 360,111 |  |  | $ | 566,015 |
Europe |  | 139,803 |  |  | 82,935 |
Asia Pacific |  | 92,071 |  |  | 104,445 |
Total Executive Search |  | 591,985 |  |  | 753,395 |
On-Demand Talent |  | 37,224 |  |  | 20,237 |
Heidrick Consulting |  | 53,334 |  |  | 47,154 |
Total segments |  | 682,543 |  |  | 820,786 |
Global Operations Support |  | 10,671 |  |  | 3,033 |
Total allocated current assets |  | 693,214 |  |  | 823,819 |
Unallocated non-current assets |  | 225,283 |  |  | 207,125 |
Goodwill and other intangible assets, net |  |  |  |
Executive Search |  |  |  |
Americas |  | 91,762 |  |  | 91,434 |
Europe |  | 1,589 |  |  | 1,665 |
Asia Pacific |  | — |  |  | 15 |
Total Executive Search |  | 93,351 |  |  | 93,114 |
On-Demand Talent |  | 126,707 |  |  | 51,580 |
Heidrick Consulting |  | 3,036 |  |  | — |
Total goodwill and other intangible assets, net |  | 223,094 |  |  | 144,694 |
Total assets |  | $ | 1,141,591 |  |  | $ | 1,175,638 |
The only country to account for more than 10% of the Company's net revenue and total long-lived assets is the United States. Net revenue in the United States for the years ended December 31, 2023, 2022, and 2021 was $602.6 million, $703.7 million, and $650.9 million, respectively. Total long-lived assets in the United States as of December 31, 2023, and 2022 were $250.6 million and $260.6 million, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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