Segments and Geographic Areas

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segments and Geographic Areas

Note 20. Segments and Geographic Areas

Operating segments are components of an enterprise about which separate financial information is available and regularly evaluated by the chief operating decision maker of an enterprise. The Company has two reportable segments, CEB and CEB Talent Assessment. The CEB segment includes the legacy CEB business, PDRI, and Evanta. The CEB Talent Assessment segment includes the legacy SHL business. The Company’s segment profit measure is Adjusted EBITDA.

Information for the Company’s reportable segments was as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Revenue
CEB segment	$	761,648		$	731,834		$	701,573
CEB Talent Assessment segment		188,146			196,600			207,401
Total revenue	$	949,794		$	928,434		$	908,974
Adjusted revenue
CEB segment	$	774,725		$	732,972		$	705,110
CEB Talent Assessment segment		188,146			198,951			209,870
Total Adjusted revenue	$	962,871		$	931,923		$	914,980
Adjusted EBITDA
CEB segment	$	206,335		$	203,085		$	194,572
CEB Talent Assessment segment		42,465			39,959			34,515
Total Adjusted EBITDA	$	248,800		$	243,044		$	229,087
Adjusted EBITDA margin		25.8	%		26.1	%		25.0	%
CEB segment		26.6	%		27.7	%		27.6	%
CEB Talent Assessment segment		22.6	%		20.1	%		16.4	%
Depreciation and amortization
CEB segment	$	45,684		$	34,377		$	33,707
CEB Talent Assessment segment		56,492			39,650			34,579
Total depreciation and amortization	$	102,176		$	74,027		$	68,286

The table below reconciles revenue to Adjusted revenue (in thousands):

	Year Ended December 31,
	2016		2015		2014
Revenue	$	949,794	$	928,434	$	908,974
Impact of the deferred revenue fair value adjustment		13,077		3,489		6,006
Adjusted revenue	$	962,871	$	931,923	$	914,980

The table below reconciles net (loss) income to Adjusted EBITDA (in thousands):

	Year Ended December 31,
	2016			2015			2014
Net (loss) income	$	(34,658	)	$	92,528		$	51,172
Provision for income taxes		18,003			25,004			40,678
Interest expense, net		28,922			20,179			18,046
Debt modification costs		1,656			4,775			—
Gain on cost method investment		—			—			(6,585	)
Net non-operating foreign currency (gain) loss		(6,890	)		(5,649	)		(8,642	)
Loss on other investments, net		797			—			—
Equity method investment loss		640			1,437			—
Depreciation and amortization		102,176			74,027			68,286
Business transformation costs		24,035			—			—
Impact of the deferred revenue fair value adjustment		13,077			3,489			6,006
Acquisition related costs		7,694			3,027			2,964
CEO non-competition obligation		3,000			—			—
Restructuring costs		1,084			6,361			1,830
Impairment loss		69,441			—			39,700
Share-based compensation		19,823			17,866			15,632
Adjusted EBITDA	$	248,800		$	243,044		$	229,087

The following is a reconciliation of segment assets to total assets (in thousands):

	December 31,
	2016		2015
Cash and cash equivalents
CEB segment	$	67,154	$	92,493
CEB Talent Assessment segment		67,775		20,836
Total cash and cash equivalents	$	134,929	$	113,329
Accounts receivable, net
CEB segment	$	223,812	$	220,678
CEB Talent Assessment segment		60,230		64,370
Total accounts receivable, net	$	284,042	$	285,048
Goodwill
CEB segment	$	293,136	$	129,386
CEB Talent Assessment segment		271,900		329,023
Total goodwill	$	565,036	$	458,409
Intangible assets, net
CEB segment	$	74,937	$	47,051
CEB Talent Assessment segment		109,247		183,629
Total intangible assets, net	$	184,184	$	230,680
Property and equipment, net
CEB segment	$	81,753	$	86,661
CEB Talent Assessment segment		13,464		15,676
Total property and equipment, net	$	95,217	$	102,337
Total assets
CEB segment	$	888,892	$	722,806
CEB Talent Assessment segment		523,700		615,746
Total assets	$	1,412,592	$	1,338,552

The Company has revenue and long-lived assets, consisting of property and equipment, goodwill and intangible assets, net of accumulated depreciation and amortization, in the following geographic areas (in thousands):

	United States		Europe		Other Countries		Total
2016
Revenue	$	611,536	$	180,522	$	157,736	$	949,794
Long-lived assets		380,661		440,777		22,999		844,437
2015
Revenue	$	579,685	$	184,129	$	164,620	$	928,434
Long-lived assets		195,623		546,565		49,238		791,426
2014
Revenue	$	559,030	$	187,274	$	162,670	$	908,974
Long-lived assets		210,367		594,316		9,431		814,114