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Segment Information and Geographical Data
 9 Months Ended
Sep. 27, 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 nine months ended September 27, 2024 and September 29, 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

 

 

Nine Months Ended

 

 

 

September 27,

 

 

September 29,

 

 

September 27,

 

 

September 29,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Global S&BT:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

44,065

 

 

$

43,798

 

 

$

127,219

 

 

$

129,765

 

Segment profit

 

 

14,093

 

 

 

13,951

 

 

 

36,895

 

 

 

40,860

 

Oracle Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

22,759

 

 

$

20,831

 

 

$

67,533

 

 

$

58,774

 

Segment profit

 

 

5,520

 

 

 

5,031

 

 

 

16,150

 

 

 

13,966

 

SAP Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

12,953

 

 

$

11,227

 

 

$

39,868

 

 

$

35,648

 

Segment profit

 

 

3,699

 

 

 

2,861

 

 

 

11,833

 

 

 

8,486

 

Total Company:

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue*

 

$

79,777

 

 

$

75,856

 

 

$

234,620

 

 

$

224,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment profit

 

$

23,312

 

 

$

21,843

 

 

$

64,878

 

 

$

63,312

 

Items not allocated to segment level:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate general and administrative expenses**

 

 

5,655

 

 

 

4,497

 

 

 

15,745

 

 

 

15,069

 

Non-cash stock based compensation expense***

 

 

2,989

 

 

 

2,707

 

 

 

8,438

 

 

 

7,920

 

Stock price appreciation equity program compensation expense

 

 

602

 

 

 

-

 

 

 

602

 

 

 

-

 

Acquisition-related compensation expense

 

 

41

 

 

 

-

 

 

 

41

 

 

 

-

 

Acquisition-related non-cash stock based compensation expense

 

 

232

 

 

 

4

 

 

 

232

 

 

 

10

 

Acquisition-related costs

 

 

53

 

 

 

-

 

 

 

53

 

 

 

-

 

Legal settlement and related costs

 

 

-

 

 

 

-

 

 

 

102

 

 

 

-

 

Depreciation expense

 

 

940

 

 

 

892

 

 

 

2,824

 

 

 

2,528

 

Interest expense, net

 

 

368

 

 

 

814

 

 

 

1,352

 

 

 

2,594

 

Income before taxes

 

$

12,432

 

 

$

12,929

 

 

$

35,489

 

 

$

35,191

 

*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.

***See Note 7.

 

 

 

 

 

11. 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 27,

 

 

September 29,

 

 

September 27,

 

 

September 29,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

66,214

 

 

$

63,955

 

 

$

195,098

 

 

$

190,578

 

Europe

 

 

8,484

 

 

 

7,399

 

 

 

25,107

 

 

 

21,132

 

Other (Australia, Canada, India and Uruguay)

 

 

5,079

 

 

 

4,502

 

 

 

14,415

 

 

 

12,477

 

Total revenue

 

$

79,777

 

 

$

75,856

 

 

$

234,620

 

 

$

224,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

September 27,

 

 

December 29,

 

 

 

2024

 

 

2023

 

Long-lived assets:

 

 

 

 

 

 

United States

 

$

100,210

 

 

$

91,065

 

Europe

 

 

15,152

 

 

 

14,481

 

Other (Australia, Canada, India and Uruguay)

 

 

539

 

 

 

444

 

Total long-lived assets

 

$

115,901

 

 

$

105,990

 

 

The domestic long-lived assets above include the provisional LeewayHertz allocation of goodwill of $4.5 million and intangible assets of $2.8 million. See Note 1. As of September 27, 2024 and December 29, 2023, foreign assets included $14.9 million and $14.3 million, respectively, of goodwill related to acquisitions.