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Segment Reporting | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting Harte Hanks is a leading global customer experience company. We have organized our operations into three business segments based on the types of products and services we provide: Marketing Services, Customer Care, and Fulfillment & Logistics. Our Marketing Services segment leverages data, insight, and experience to support clients as they engage customers through digital, traditional, and emerging channels. We partner with clients to develop strategies and tactics to identify and prioritize customer audiences in B2C and B2B transactions. Our key service offerings include strategic business, brand, marketing and communications planning, data strategy, audience identification and prioritization, predictive modeling, creative development and execution across traditional and digital channels, website and app development, platform architecture, database build and management, marketing automation, and performance measurement, reporting and optimization. Our Customer Care segment offers intelligently responsive contact center solutions, which use real-time data to effectively interact with each customer. Customer contacts are handled through phone, e-mail, social media, text messaging, chat and digital self-service support. We provide these services utilizing our advanced technology infrastructure, human resource management skills and industry experience. Our Fulfillment & Logistics segment consists of mail and product fulfillment and logistics services. We offer a variety of product fulfillment solutions, including printing on demand, managing product recalls, and distributing literature and promotional products to support B2B trade, drive marketing campaigns, and improve customer experience. We are also a provider of third-party logistics and freight optimization in the United States. There are three principal financial measures reported to our CEO (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are revenue, operating income and operating income plus depreciation and amortization (“EBITDA”). Operating income for segment reporting, disclosed below, is revenues less operating costs and allocated corporate expenses. Segment operating expenses are generally directly attributed to our segments and also include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods. Unallocated corporate expenses are corporate overhead expenses not attributable to the operating groups. Interest income and expense are not allocated to the segments. The Company does not allocate assets to our reportable segments for internal reporting purposes, nor does our CEO evaluate operating segments using discrete asset information. The accounting policies of the segments are consistent with those described in the Note B, Significant Accounting Policies. The following table presents financial information by segment year ended December 31, 2023:
(In thousands) |  | Marketing Services |  | Customer Care |  | Fulfillment & Logistics |  | Restructuring |  | Unallocated Corporate |  | Total
Operating revenue |  | $ | 43,204 |  |  | $ | 63,327 |  |  | $ | 84,961 |  |  | $ | — |  |  | $ | — |  |  | $ | 191,492 |
Segment operating expense |  | 34,795 |  |  | 49,851 |  |  | 73,213 |  |  | — |  |  | 20,350 |  |  | 178,209 |
Restructuring expense |  | — |  |  | — |  |  | — |  |  | 5,687 |  |  | — |  |  | 5,687 |
Contribution margin |  | $ | 8,409 |  |  | $ | 13,476 |  |  | $ | 11,748 |  |  | $ | (5,687) |  |  | $ | (20,350) |  |  | $ | 7,596 |
Overhead Allocation |  | 2,984 |  |  | 2,774 |  |  | 2,891 |  |  | — |  |  | (8,649) |  |  | — |
EBITDA |  | $ | 5,425 |  |  | $ | 10,702 |  |  | $ | 8,857 |  |  | $ | (5,687) |  |  | $ | (11,701) |  |  | $ | 7,596 |
Depreciation and amortization expense |  | 312 |  |  | 1,280 |  |  | 1,143 |  |  | — |  |  | 1,502 |  |  | 4,237 |
Operating income (loss) |  | $ | 5,113 |  |  | $ | 9,422 |  |  | $ | 7,714 |  |  | $ | (5,687) |  |  | $ | (13,203) |  |  | $ | 3,359 |
The following table presents financial information by segment year ended December 31, 2022:
(In thousands) |  | Marketing Services |  | Customer Care |  | Fulfillment & Logistics |  | Restructuring |  | Unallocated Corporate |  | Total
Operating revenue |  | $ | 52,975 |  |  | $ | 67,205 |  |  | $ | 86,098 |  |  | $ | — |  |  | $ | — |  |  | $ | 206,278 |
Segment operating expense |  | 41,241 |  |  | 52,173 |  |  | 72,180 |  |  | — |  |  | 22,849 |  |  | 188,443 |
Restructuring expense |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Contribution margin |  | $ | 11,734 |  |  | $ | 15,032 |  |  | $ | 13,918 |  |  | $ | — |  |  | $ | (22,849) |  |  | $ | 17,835 |
Overhead allocation |  | 4,390 |  |  | 2,865 |  |  | 3,325 |  |  | — |  |  | (10,580) |  |  | — |
EBITDA |  | $ | 7,344 |  |  | $ | 12,167 |  |  | $ | 10,593 |  |  | $ | — |  |  | $ | (12,269) |  |  | $ | 17,835 |
Depreciation and amortization expense |  | 362 |  |  | 884 |  |  | 824 |  |  | — |  |  | 658 |  |  | 2,728 |
Operating income (loss) |  | $ | 6,982 |  |  | $ | 11,283 |  |  | $ | 9,769 |  |  | $ | — |  |  | $ | (12,927) |  |  | $ | 15,107 |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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