Segment Information

In 2018, the Company completed the integration of its Leadership Consulting and Culture Shaping businesses into one combined service offering, Heidrick Consulting. In conjunction with the integration, the Company reorganized its Management Committee, which the Company considers to be its chief operating decision maker, so as to regularly assess performance and make resource allocations decisions for the Heidrick Consulting business. Therefore, the Company now reports Leadership Consulting and Culture Shaping as one operating segment, Heidrick Consulting. In conjunction with the change in operating segments, the Company modified its corporate cost allocation methodology. Previously reported operating segment results for the three and nine months ended September 30, 2017, have been recast to conform to the new operating segment structure and corporate cost allocation methodology.

The Company currently operates its executive search business in the Americas, Europe (which includes Africa), and Asia Pacific (which includes the Middle East), and operates its Heidrick Consulting business globally.

For segment purposes, reimbursements of out-of-pocket expenses classified as revenue and other operating income are reported separately and, therefore, are not included in the results of each segment. The Company believes that analyzing trends in revenue before reimbursements (net revenue), analyzing operating expenses as a percentage of net revenue, and analyzing operating income, more appropriately reflect its core operations.

The revenue and operating income (loss) by segment are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Revenue
Executive Search
Americas	$	106,504	$	88,254	$	295,499	$	248,442
Europe	37,452		33,994		110,419		90,534
Asia Pacific	28,095		21,865		78,460		64,162
Total Executive Search	172,051		144,113		484,378		403,138
Heidrick Consulting	15,537		15,687		46,340		48,882
Revenue before reimbursements (net revenue)	187,588		159,800		530,718		452,020
Reimbursements	4,753		4,665		13,970		13,740
Total revenue	$	192,341	$	164,465	$	544,688	$	465,760



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Operating income (loss)
Executive Search
Americas	$	23,341		$	21,140		$	69,988		$	60,958
Europe	904			3,047			6,453			4,207
Asia Pacific	6,414			369			13,608			3,966
Total Executive Search	30,659			24,556			90,049			69,131
Heidrick Consulting	(1,761		)	(2,625		)	(10,988		)	(49,849		)
Total segment operating income	28,898			21,931			79,061			19,282
Global Operations Support	(8,315		)	(7,909		)	(26,896		)	(27,033		)
Total operating income (loss)	$	20,583		$	14,022		$	52,165		$	(7,751	)