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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,
202320222021
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 taxes34,261 35,750 33,457 
Operating income 75,357 112,266 98,264 
Adjustments
Depreciation9,113 7,394 7,150 
Intangible amortization9,395 3,209 2,898 
Earnout accretion1,554 820 486 
Earnout fair value adjustments— (464)11,368 
Acquisition contingent consideration11,934 3,885 1,973 
Deferred compensation plan6,132 (6,232)3,057 
Reorganization costs4,886 — — 
Impairment charges7,246 — — 
Restructuring charges— — 3,792 
Total adjustments50,260 8,612 30,724 
Adjusted EBITDA$125,617 $120,878 $128,988 
Adjusted EBITDA margin12.2 %11.3 %12.9 %
The revenue, adjusted EBITDA, depreciation and amortization, and capital expenditures, by segment, are as follows:
 December 31,
 202320222021
Revenue
Executive Search
Americas$522,988 $612,881 $581,440 
Europe166,379 176,275 170,312 
Asia Pacific90,678 112,766 117,008 
Total Executive Search780,045 901,922 868,760 
On-Demand Talent152,506 91,349 66,636 
Heidrick Consulting94,313 80,193 67,605 
Revenue before reimbursements1,026,864 1,073,464 1,003,001 
Reimbursements14,318 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 
Europe22,246 22,150 20,219 
Asia Pacific11,070 19,813 19,442 
Total Executive Search206,674 206,156 193,748 
On-Demand Talent1,434 (336)4,592 
Heidrick Consulting(5,823)(6,444)(14,685)
Total segments202,285 199,376 183,655 
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 
Europe1,343 1,451 1,802 
Asia Pacific976 1,126 1,399 
Total Executive Search5,411 6,075 16,044 
On-Demand Talent8,197 2,669 2,010 
Heidrick Consulting2,179 878 1,045 
Total segments15,787 9,622 19,099 
Research and development2,073 524 — 
Global Operations Support648 457 461 
Total depreciation and amortization$18,508 $10,603 $19,560 
Capital expenditures
Executive Search
Americas$2,351 $1,890 $4,487 
Europe1,827 683 372 
Asia Pacific618 1,497 209 
Total Executive Search4,796 4,070 5,068 
On-Demand Talent398 732 — 
Heidrick Consulting559 128 174 
Total segments5,753 4,930 5,242 
Research and development7,170 4,878 — 
Global Operations Support510 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,
 20232022
Current assets
Executive Search
Americas$360,111 $566,015 
Europe139,803 82,935 
Asia Pacific92,071 104,445 
Total Executive Search591,985 753,395 
On-Demand Talent37,224 20,237 
Heidrick Consulting53,334 47,154 
Total segments682,543 820,786 
Global Operations Support10,671 3,033 
Total allocated current assets693,214 823,819 
Unallocated non-current assets225,283 207,125 
Goodwill and other intangible assets, net
Executive Search
Americas91,762 91,434 
Europe1,589 1,665 
Asia Pacific— 15 
Total Executive Search93,351 93,114 
On-Demand Talent126,707 51,580 
Heidrick Consulting3,036 — 
Total goodwill and other intangible assets, net223,094 144,694 
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.