ICF International, Inc. Segments Disclosure
NOTE 20 - SEGMENT INFORMATION AND GEOGRAPHIC DATA
The Company provides a broad array of professional services to its clients across several markets, primarily within the U.S. The Company operates as a reportable and operating segment because the , which is the Chief Executive Officer, manages the business activities on a consolidated basis. Although the Company disaggregates its revenue by client market and client type, it does not manage its business or allocate resources based on client market or type.
The CODM assesses performance of the segment based on consolidated net income that is reported on the Company’s consolidated statements of comprehensive income. The CODM uses consolidated net income to evaluate the Company’s performance against budgets and decide whether to use the profits to invest in the business, paydown debt, repurchase stock, pay dividends, or fund acquisitions. Asset information provided to the CODM is not used for the purpose of making decisions and assessing performance of the Company.
The segment revenue, significant segment expenses, and segment profit are as follows:
|
|
Year ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenue |
|
$ |
1,872,851 |
|
|
$ |
2,019,787 |
|
|
$ |
1,963,238 |
|
Significant segment expenses: |
|
|
|
|
|
|
|
|
|
|||
Direct labor & related fringe benefit costs |
|
|
722,849 |
|
|
|
775,239 |
|
|
|
730,322 |
|
Subcontractors & other direct costs |
|
|
453,986 |
|
|
|
506,777 |
|
|
|
534,696 |
|
Indirect and selling expenses |
|
|
492,404 |
|
|
|
518,453 |
|
|
|
505,162 |
|
Depreciation and amortization |
|
|
21,140 |
|
|
|
20,484 |
|
|
|
25,277 |
|
Amortization of intangible assets acquired in business combinations |
|
|
37,007 |
|
|
|
32,992 |
|
|
|
35,461 |
|
Interest expense |
|
|
31,268 |
|
|
|
29,878 |
|
|
|
39,952 |
|
Provision for income taxes |
|
|
20,405 |
|
|
|
27,888 |
|
|
|
13,935 |
|
Other segment expense (income) (1) |
|
|
2,204 |
|
|
|
(2,094 |
) |
|
|
(4,179 |
) |
Net Income |
|
$ |
91,588 |
|
|
$ |
110,170 |
|
|
$ |
82,612 |
|
(1) Other segment expense (income) primarily includes interest income, gains/losses on foreign currency, and gains/losses on disposition of assets.
Other Segment Information and Geographic Data
Revenue is attributed to the country where the contract is awarded by the client. There was no single foreign country that individually accounted for 10% or more of total revenue for the years ended December 31, 2025, 2024, and 2023. The following table provides net revenue for the Company’s home country and foreign countries:
|
|
Year ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|||
U.S. |
|
$ |
1,713,828 |
|
|
$ |
1,869,105 |
|
|
$ |
1,832,562 |
|
Other countries |
|
|
159,023 |
|
|
|
150,682 |
|
|
|
130,676 |
|
Total revenue |
|
$ |
1,872,851 |
|
|
$ |
2,019,787 |
|
|
$ |
1,963,238 |
|
At December 31, 2025 and 2024, tangible long-lived assets were primarily held in the U.S. There was no single foreign country that, individually, held more than 10% of the total long-lived assets. The following table provides tangible long-lived assets held in the Company’s home country and in foreign countries:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Long-lived assets: |
|
|
|
|
|
|
||
U.S. |
|
$ |
55,670 |
|
|
$ |
63,430 |
|
Other countries |
|
|
2,687 |
|
|
|
3,073 |
|
Total long-lived assets |
|
$ |
58,357 |
|
|
$ |
66,503 |
|
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.