Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

The table below sets forth information about our operating segments for the three and nine months ended September 30, 2020 and 2019, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Healthcare:
Revenues	$	87,406		$	100,000		$	268,340		$	295,621
Operating income	$	25,610		$	32,863		$	70,831		$	94,058
Segment operating income as a percentage of segment revenues	29.3		%	32.9		%	26.4		%	31.8		%
Business Advisory:
Revenues	$	66,048		$	62,519		$	201,423		$	183,602
Operating income	$	10,780		$	11,942		$	37,306		$	32,997
Segment operating income as a percentage of segment revenues	16.3		%	19.1		%	18.5		%	18.0		%
Education:
Revenues	$	51,850		$	56,770		$	176,017		$	165,265
Operating income	$	12,548		$	14,413		$	41,792		$	43,235
Segment operating income as a percentage of segment revenues	24.2		%	25.4		%	23.7		%	26.2		%
Total Company:
Revenues	$	205,304		$	219,289		$	645,780		$	644,488
Reimbursable expenses	2,860			23,636			25,133			65,787
Total revenues and reimbursable expenses	$	208,164		$	242,925		$	670,913		$	710,275

Segment operating income	$	48,938		$	59,218		$	149,929		$	170,290
Items not allocated at the segment level:
Other operating expenses	29,042			32,310			87,826			105,369
Litigation and other gains	—			(630)			(150)			(1,571)
Depreciation and amortization	6,197			6,962			18,635			21,285
Goodwill impairment charges1	—			—			59,816			—
Other expense, net	224			4,456			6,829			10,326
Income (loss) from continuing operations before taxes	$	13,475		$	16,120		$	(23,027)		$	34,881

(1) The non-cash goodwill impairment charges are not allocated at the segment level because the underlying goodwill asset is reflective of our corporate investment in the segments. We do not include the impact of goodwill impairment charges in our evaluation of segment performance.

Disaggregation of Revenue

The following table illustrates the disaggregation of revenues by billing arrangements, employee types, and timing of revenue recognition, including a reconciliation of the disaggregated revenues to revenues from our three operating segments for the three and nine months ended September 30, 2020 and 2019.


	Three Months Ended September 30, 2020
	Healthcare		Business Advisory		Education		Total
Billing Arrangements
Fixed-fee	$	51,491	$	20,675	$	10,958	$	83,124
Time and expense	14,627		40,511		35,214		90,352
Performance-based	15,641		3,671		—		19,312
Software support, maintenance and subscriptions	5,647		1,191		5,678		12,516
Total	$	87,406	$	66,048	$	51,850	$	205,304

Employee Type (1)
Revenue generated by full-time billable consultants	$	65,084	$	62,340	$	44,234	$	171,658
Revenue generated by full-time equivalents	22,322		3,708		7,616		33,646
Total	$	87,406	$	66,048	$	51,850	$	205,304

Timing of Revenue Recognition
Revenue recognized over time	$	86,413	$	66,048	$	51,663	$	204,124
Revenue recognized at a point in time	993		—		187		1,180
Total	$	87,406	$	66,048	$	51,850	$	205,304


	Nine Months Ended September 30, 2020
	Healthcare		Business Advisory		Education		Total
Billing Arrangements
Fixed-fee	$	158,079	$	73,442	$	35,530	$	267,051
Time and expense	43,389		118,364		123,493		285,246
Performance-based	49,042		5,903		695		55,640
Software support, maintenance and subscriptions	17,830		3,714		16,299		37,843
Total	$	268,340	$	201,423	$	176,017	$	645,780

Employee Type (1)
Revenue generated by full-time billable consultants	$	188,750	$	191,566	$	150,857	$	531,173
Revenue generated by full-time equivalents	79,590		9,857		25,160		114,607
Total	$	268,340	$	201,423	$	176,017	$	645,780

Timing of Revenue Recognition
Revenue recognized over time	$	265,813	$	201,423	$	175,715	$	642,951
Revenue recognized at a point in time	2,527		—		302		2,829
Total	$	268,340	$	201,423	$	176,017	$	645,780


	Three Months Ended September 30, 2019
	Healthcare		Business Advisory		Education		Total
Billing Arrangements
Fixed-fee	$	65,610	$	24,333	$	12,418	$	102,361
Time and expense	12,307		35,212		39,688		87,207
Performance-based	16,313		1,614		—		17,927
Software support, maintenance and subscriptions	5,770		1,360		4,664		11,794
Total	$	100,000	$	62,519	$	56,770	$	219,289

Employee Type (1)
Revenue generated by full-time billable consultants	$	72,142	$	60,131	$	48,928	$	181,201
Revenue generated by full-time equivalents	27,858		2,388		7,842		38,088
Total	$	100,000	$	62,519	$	56,770	$	219,289

Timing of Revenue Recognition
Revenue recognized over time	$	98,204	$	62,519	$	56,274	$	216,997
Revenue recognized at a point in time	1,796		—		496		2,292
Total	$	100,000	$	62,519	$	56,770	$	219,289


	Nine Months Ended September 30, 2019
	Healthcare		Business Advisory		Education		Total
Billing Arrangements
Fixed-fee	$	188,875	$	72,693	$	37,926	$	299,494
Time and expense	39,345		104,325		114,122		257,792
Performance-based	50,144		2,810		—		52,954
Software support, maintenance and subscriptions	17,257		3,774		13,217		34,248
Total	$	295,621	$	183,602	$	165,265	$	644,488

Employee Type (1)
Revenue generated by full-time billable consultants	$	206,508	$	177,279	$	144,338	$	528,125
Revenue generated by full-time equivalents	89,113		6,323		20,927		116,363
Total	$	295,621	$	183,602	$	165,265	$	644,488

Timing of Revenue Recognition
Revenue recognized over time	$	289,452	$	183,602	$	164,164	$	637,218
Revenue recognized at a point in time	6,169		—		1,101		7,270
Total	$	295,621	$	183,602	$	165,265	$	644,488

(1) Full-time billable consultants consist of our full-time professionals who provide consulting services to our clients and are billable to our clients based on the number of hours worked. Full-time equivalent professionals consist of leadership coaches and their support staff within our Culture and Organizational Excellence solution, consultants who work variable schedules as needed by our clients, and full-time employees who provide software support and maintenance services to our clients.