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Segment Information and Geographical Data
 3 Months Ended
Mar. 29, 2024
Segment Reporting [Abstract]  
Segment Information and Geographical Data

11. 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.

 

11. Segment Information and Geographical Data (continued)

The tables below set forth information about the Company’s operating segments for the three months ended March 29, 2024, and March 31, 2023, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements (in thousands):

 

 

Quarter Ended

 

 

 

March 29,

 

 

March 31,

 

 

 

2024

 

 

2023

 

Global S&BT:

 

 

 

 

 

 

Total revenue*

 

$

40,892

 

 

$

42,335

 

Segment profit

 

 

10,053

 

 

 

13,807

 

Oracle Solutions:

 

 

 

 

 

 

Total revenue*

 

$

21,729

 

 

$

17,168

 

Segment profit

 

 

5,261

 

 

 

3,049

 

SAP Solutions:

 

 

 

 

 

 

Total revenue*

 

$

14,566

 

 

$

11,726

 

Segment profit

 

 

4,882

 

 

 

2,634

 

Total Company:

 

 

 

 

 

 

Total revenue*

 

$

77,187

 

 

$

71,229

 

 

 

 

 

 

 

 

Total segment profit

 

$

20,196

 

 

$

19,490

 

Items not allocated to segment level:

 

 

 

 

 

 

Corporate general and administrative expenses**

 

 

5,028

 

 

 

4,961

 

Non-cash stock based compensation expense

 

 

2,599

 

 

 

2,447

 

Legal settlement and related costs

 

 

102

 

 

 

-

 

Depreciation expense

 

 

942

 

 

 

830

 

Interest expense, net

 

 

472

 

 

 

859

 

Income before taxes

 

$

11,053

 

 

$

10,393

 

*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

 

 

 

March 29,

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

United States

 

$

64,751

 

 

$

61,351

 

Europe

 

 

7,993

 

 

 

6,060

 

Other (Australia, Canada, India and Uruguay)

 

 

4,443

 

 

 

3,818

 

Total revenue

 

$

77,187

 

 

$

71,229

 

 

 

 

 

 

 

 

 

 

11. Segment Information and Geographical Data (continued)

 

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

 

 

 

March 29,

 

 

December 29,

 

 

 

2024

 

 

2023

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

90,864

 

 

$

91,065

 

Europe

 

 

14,346

 

 

 

14,481

 

Other (Australia, Canada, India and Uruguay)

 

 

440

 

 

 

444

 

Total long-lived assets

 

$

105,650

 

 

$

105,990

 

 

As of March 29, 2024 and December 29, 2023, foreign assets included $14.1 million and $14.3 million, respectively, of goodwill related to acquisitions.