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Business Segments and Geographic Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Business Segments and Geographic Information |
18. | Business Segments and Geographic Information
Our reporting segments are: 1) Data and Analytics Services; and 2) IT Staffing Services. The data and analytics services segment was acquired through the July 13, 2017 acquisition of the services division of Canada-based InfoTrellis, Inc. This segment is a project-based consulting services business with specialized capabilities in data management and analytics. The business is marketed as Mastech InfoTrellis and utilizes a dedicated sales team with deep subject matter expertise. Mastech InfoTrellis has offices in Atlanta, Georgia, Toronto, Canada and Austin, Texas and a global delivery center in Chennai, India. Project-based delivery reflects a combination of on-site resources and offshore resources. Assignments are secured on both a time and material and fixed price basis. The IT staffing services segment offers staffing services in digital and mainstream technologies; and digital transformation services focused on providing CRM on the cloud through Salesforce.com and using digital methods to enhance organizational learning. These services are marketed using a common sales force and delivered via our domestic and global recruitment centers. While the vast majority of our assignments are based on time and materials, we do have the capabilities to deliver our digital transformation services on a fixed price basis. Below are the operating results of our reporting segments:
|  | At December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | (Amounts in thousands) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Data and analytics services |  | $ | 26,663 |  |  | $ | 23,803 |  |  | $ | 9,185 |
IT staffing services |  |  | 166,911 |  |  |  | 153,361 |  |  |  | 138,697 |
Total revenues |  | $ | 193,574 |  |  | $ | 177,164 |  |  | $ | 147,882 |
Gross Margin %: |  |  |  |  |  |  |  |  |  |  |  |
Data and analytics services |  |  | 46.7 | % |  |  | 44.0 | % |  |  | 44.8 | %
IT staffing services |  |  | 21.3 | % |  |  | 20.9 | % |  |  | 19.8 | %
Total gross margin % |  |  | 24.8 | % |  |  | 24.0 | % |  |  | 21.4 | %
Segment operating income: |  |  |  |  |  |  |  |  |  |  |  |
Data and analytics services |  | $ | 5,495 |  |  | $ | 5,710 |  |  | $ | 2,531 |
IT staffing services |  |  | 8,001 |  |  |  | 7,184 |  |  |  | 5,279 |
Subtotal |  |  | 13,496 |  |  |  | 12,894 |  |  |  | 7,810 |
Amortization of acquired intangible assets |  |  | (2,688 | ) |  |  | (2,727 | ) |  |  | (1,710 | )
Revaluation of contingent consideration liability |  |  | 6,069 |  |  |  | 11,056 |  |  |  | — |
Goodwill impairment |  |  | — |  |  |  | (9,738 | ) |  |  | — |
Acquisition-related transaction expenses |  |  | 110 |  |  |  | 140 |  |  |  | (2,019 | )
Interest expenses and other, net |  |  | (1,768 | ) |  |  | (2,211 | ) |  |  | (1,133 | )
Income before income taxes |  | $ | 15,219 |  |  | $ | 9,414 |  |  | $ | 2,948 |
Below is a reconciliation of total assets, depreciation and amortization and capital expenditures by segment:
|  | Total Assets |  |  | Depreciation & Amortization |  |  | Capital Expenditures |
Amounts in thousands |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |
Data and Analytics Services |  | $ | 41,527 |  |  | $ | 43,182 |  |  | $ | 53,683 |  |  | $ | 2,078 |  |  | $ | 2,051 |  |  | $ | 925 |  |  | $ | 203 |  |  | $ | 175 |  |  | $ | 11 |
IT Staffing Services |  |  | 49,057 |  |  |  | 49,402 |  |  |  | 44,921 |  |  |  | 1,356 |  |  |  | 1,131 |  |  |  | 1,017 |  |  |  | 811 |  |  |  | 596 |  |  |  | 1,428 |
Total |  | $ | 90,584 |  |  | $ | 92,584 |  |  | $ | 98,604 |  |  | $ | 3,434 |  |  | $ | 3,182 |  |  | $ | 1,942 |  |  | $ | 1,014 |  |  | $ | 771 |  |  | $ | 1,439 |
Below is geographic information related to our revenues from external customers and fixed assets, net (equipment, enterprise software and leasehold improvements):
|  | Revenues |  |  | Equipment, Enterprise Software and Leasehold Improvements, net |
Amounts in thousands |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |
United States |  | $ | 188,710 |  |  | $ | 172,610 |  |  | $ | 145,513 |  |  | $ | 2,095 |  |  | $ | 1,956 |  |  | $ | 1,730 |
Canada |  |  | 2,918 |  |  |  | 3,125 |  |  |  | 1,729 |  |  |  | 8 |  |  |  | 17 |  |  |  | 19 |
India and Other |  |  | 1,946 |  |  |  | 1,429 |  |  |  | 640 |  |  |  | 373 |  |  |  | 235 |  |  |  | 150 |
Total |  | $ | 193,574 |  |  | $ | 177,164 |  |  | $ | 147,882 |  |  | $ | 2,476 |  |  | $ | 2,208 |  |  | $ | 1,899 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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