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Segment Information and Geographical Data
 6 Months Ended
Jun. 28, 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 quarter and six months ended June 28, 2024 and June 30, 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

 

 

Six Months Ended

 

 

 

June 28,

 

 

June 30,

 

 

June 28,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Global S&BT:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

42,262

 

 

$

43,632

 

 

$

83,154

 

 

$

85,967

 

Segment profit

 

 

12,748

 

 

 

13,102

 

 

 

22,802

 

 

 

26,909

 

Oracle Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

23,045

 

 

$

20,775

 

 

$

44,774

 

 

$

37,943

 

Segment profit

 

 

5,369

 

 

 

5,886

 

 

 

10,630

 

 

 

8,935

 

SAP Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

12,349

 

 

$

12,695

 

 

$

26,915

 

 

$

24,421

 

Segment profit

 

 

3,253

 

 

 

2,990

 

 

 

8,135

 

 

 

5,624

 

Total Company:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

77,656

 

 

$

77,102

 

 

$

154,843

 

 

$

148,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment profit

 

$

21,370

 

 

$

21,978

 

 

$

41,567

 

 

$

41,468

 

Items not allocated to segment level:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate general and administrative expenses**

 

 

5,063

 

 

 

5,610

 

 

 

10,092

 

 

 

10,571

 

Non-cash stock based compensation expense

 

 

2,850

 

 

 

2,772

 

 

 

5,449

 

 

 

5,219

 

Legal settlement and related costs

 

 

-

 

 

 

-

 

 

 

102

 

 

 

-

 

Depreciation expense

 

 

941

 

 

 

806

 

 

 

1,883

 

 

 

1,636

 

Interest expense, net

 

 

512

 

 

 

921

 

 

 

984

 

 

 

1,780

 

Income before taxes

 

$

12,004

 

 

$

11,869

 

 

$

23,057

 

 

$

22,262

 

*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

 

 

Six Months Ended

 

 

 

June 28,

 

 

June 30,

 

 

June 28,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

64,133

 

 

$

65,272

 

 

$

128,884

 

 

$

126,622

 

Europe

 

 

8,630

 

 

 

7,673

 

 

 

16,623

 

 

 

13,734

 

Other (Australia, Canada, India and Uruguay)

 

 

4,893

 

 

 

4,157

 

 

 

9,336

 

 

 

7,975

 

Total revenue

 

$

77,656

 

 

$

77,102

 

 

$

154,843

 

 

$

148,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11. Segment Information and Geographical Data (continued)

 

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

 

 

 

June 28,

 

 

December 29,

 

 

 

2024

 

 

2023

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

92,426

 

 

$

91,065

 

Europe

 

 

14,330

 

 

 

14,481

 

Other (Australia, Canada, India and Uruguay)

 

 

509

 

 

 

444

 

Total long-lived assets

 

$

107,265

 

 

$

105,990

 

 

As of June 28, 2024 and December 29, 2023, foreign assets included $14.1 million and $14.3 million, respectively, of goodwill related to acquisitions.