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Segment Information and Geographical Data
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information and Geographical Data

12. Segment Information and Geographical Data

Effective in the third quarter of fiscal year 2022, the Company has reorganized its operating and internal reporting structure to better align with its primary market solutions. Due to the reorganization and in accordance with ASC 280, management has made the determination to present three operating segments and three reportable segments: (1) Global S&BT, (2) Oracle Solutions, and (3) SAP Solutions. Global S&BT includes the results of the Company’s strategic business consulting practices; Oracle Solutions includes the results of the Company’s Oracle EPM/ERP and Digital AMS practices; SAP Solutions includes the Company’s SAP applications and related SAP service offerings.

Due to the change in reportable segments, the Company has presented the segment information for the three and nine months ended September 30, 2022, and October 1, 2021, respectively. The SAP Solutions reportable segment is the only segment that contains software license sales.

The measurement criteria for segment profit or loss are substantially the same for each reportable segment, excluding any unusual or infrequent items, if any. Segment profit consists of the revenues generated by a segment, less operating expenses that are incurred directly by the segment. Unallocated costs include corporate costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. Segment information related to assets has been omitted as the CODM does not receive discrete financial information regarding assets at the segment level.

The tables below set forth information about the Company’s operating segments for the quarter and nine months ended September 30, 2022 and October 1, 2021, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

October 1,

 

 

September 30,

 

 

October 1,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Global S&BT:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

41,593

 

 

$

37,085

 

 

$

128,760

 

 

$

106,956

 

Segment profit

 

 

14,030

 

 

 

11,847

 

 

 

45,939

 

 

 

34,517

 

Oracle Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

17,682

 

 

$

20,762

 

 

$

59,165

 

 

$

55,763

 

Segment profit

 

 

3,313

 

 

 

5,417

 

 

 

12,147

 

 

 

12,062

 

SAP Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

12,758

 

 

$

14,047

 

 

$

35,700

 

 

$

45,858

 

Segment profit

 

 

3,847

 

 

 

3,716

 

 

 

9,238

 

 

 

15,571

 

Total Company:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

72,033

 

 

$

71,894

 

 

$

223,625

 

 

$

208,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment profit

 

$

21,190

 

 

$

20,980

 

 

$

67,324

 

 

$

62,150

 

Items not allocated to segment level:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate general and administrative expenses**

 

 

4,332

 

 

 

5,916

 

 

 

15,899

 

 

 

16,528

 

Non-cash stock based compensation expense

 

 

2,511

 

 

 

2,571

 

 

 

7,828

 

 

 

7,811

 

Depreciation and amortization

 

 

838

 

 

 

1,088

 

 

 

2,623

 

 

 

3,336

 

Restructuring charge reversal

 

 

(526

)

 

 

-

 

 

 

(651

)

 

 

-

 

Interest expense, net

 

 

14

 

 

 

26

 

 

 

70

 

 

 

76

 

Income from continuing operations before taxes

 

$

14,021

 

 

$

11,379

 

 

$

41,555

 

 

$

34,399

 

*Total revenue includes reimbursable expenses, which are project travel-related expenses passed through to a client with no associated operating margin.

**Corporate general and administrative expenses primarily include costs related to business support functions including accounting and finance, human resources, legal, information technology and office administration. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits.

 

12. Segment Information and Geographical Data (continued)

The tables below set forth information on the Company's geographical data. Total revenue, which is primarily based on the country of the contracting entity, was attributed to the following geographical areas (in thousands):

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

October 1,

 

 

September 30,

 

 

October 1,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

62,505

 

 

$

62,270

 

 

$

193,614

 

 

$

181,488

 

Europe

 

 

5,311

 

 

 

6,072

 

 

 

17,952

 

 

 

17,271

 

Other (Australia, Canada, India and Uruguay)

 

 

4,217

 

 

 

3,552

 

 

 

12,059

 

 

 

9,818

 

Total revenue

 

$

72,033

 

 

$

71,894

 

 

$

223,625

 

 

$

208,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-lived assets are attributable to the following geographic areas (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

89,211

 

 

$

89,199

 

Europe

 

 

12,620

 

 

 

15,584

 

Other (Australia, Canada, India and Uruguay)

 

 

439

 

 

 

582

 

Total long-lived assets

 

$

102,270

 

 

$

105,365

 

 

As of September 30, 2022 and December 31, 2021, foreign assets included $12.4 million and $15.1 million, respectively, of goodwill related to prior acquisitions.