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Segment Information and Geographical Data
 9 Months Ended
Sep. 29, 2023
Segment Reporting [Abstract]  
Segment Information and Geographical Data

12. Segment Information and Geographical Data

The Company has organized its operating and internal reporting structure to align with its primary market solutions. In accordance with ASC 280, the Company determined it has 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. The SAP Solutions reportable segment is the only segment that contains software sales revenue.

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 revenue generated by a segment, less operating expenses that are incurred directly by the segment. Unallocated costs include corporate costs related to the administrative functions that are performed in a centralized manner and that are not attributable to a particular segment, depreciation and amortization expense, interest expense, non-cash compensation expense and any non-recurring transactions. Segment information related to assets has been omitted as the chief operating decision maker does not receive discrete financial information regarding assets at the segment level.

 

12. Segment Information and Geographical Data (continued)

The tables below set forth information about the Company’s operating segments for the quarter and nine months ended September 29, 2023, and September 30, 2022, 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 29,

 

 

September 30,

 

 

September 29,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Global S&BT:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

43,798

 

 

$

41,593

 

 

$

129,765

 

 

$

128,760

 

Segment profit

 

 

13,951

 

 

 

14,030

 

 

 

40,860

 

 

 

45,939

 

Oracle Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

20,831

 

 

$

17,682

 

 

$

58,774

 

 

$

59,165

 

Segment profit

 

 

5,031

 

 

 

3,313

 

 

 

13,966

 

 

 

12,147

 

SAP Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

11,227

 

 

$

12,758

 

 

$

35,648

 

 

$

35,700

 

Segment profit

 

 

2,861

 

 

 

3,847

 

 

 

8,486

 

 

 

9,238

 

Total Company:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

75,856

 

 

$

72,033

 

 

$

224,187

 

 

$

223,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment profit

 

$

21,843

 

 

$

21,190

 

 

$

63,312

 

 

$

67,324

 

Items not allocated to segment level:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate general and administrative expenses**

 

 

4,497

 

 

 

4,332

 

 

 

15,069

 

 

 

15,899

 

Non-cash stock based compensation expense

 

 

2,711

 

 

 

2,511

 

 

 

7,930

 

 

 

7,828

 

Depreciation and amortization

 

 

892

 

 

 

838

 

 

 

2,528

 

 

 

2,623

 

Restructuring and asset impairment settlement

 

 

-

 

 

 

(526

)

 

 

-

 

 

 

(651

)

Interest expense, net

 

 

814

 

 

 

14

 

 

 

2,594

 

 

 

70

 

Income from continuing operations before taxes

 

$

12,929

 

 

$

14,021

 

 

$

35,191

 

 

$

41,555

 

*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, as well as any foreign currency gains and losses. Corporate general and administrative expenses exclude one-time, non-recurring expenses and benefits.

 

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 29,

 

 

September 30,

 

 

September 29,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

63,955

 

 

$

62,505

 

 

$

190,578

 

 

$

193,614

 

Europe

 

 

7,399

 

 

 

5,311

 

 

 

21,132

 

 

 

17,952

 

Other (Australia, Canada, India and Uruguay)

 

 

4,502

 

 

 

4,217

 

 

 

12,477

 

 

 

12,059

 

Total revenue

 

$

75,856

 

 

$

72,033

 

 

$

224,187

 

 

$

223,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12. Segment Information and Geographical Data (continued)

 

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

 

 

 

September 29,

 

 

December 30,

 

 

 

2023

 

 

2022

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

91,228

 

 

$

89,705

 

Europe

 

 

13,920

 

 

 

13,640

 

Other (Australia, Canada, India and Uruguay)

 

 

439

 

 

 

482

 

Total long-lived assets

 

$

105,587

 

 

$

103,827

 

 

As of September 29, 2023 and December 30, 2022, foreign assets included $13.7 million and $13.5 million, respectively, of goodwill related to prior acquisitions.