Business Segments

6 Months Ended

Jun. 30, 2019

The Company has three reportable segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. The temporary and consultant staffing segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement staffing segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting and internal audit services segment provides business and technology risk consulting and internal audit services.

The accounting policies of the segments are set forth in Note A—“Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Company evaluates performance based on income from operations before net interest income, intangible asset amortization expense, and income taxes.

The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results for the three and six months ended June 30, 2019 and 2018 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net service revenues
Temporary and consultant staffing	$	1,102,712		$	1,087,974		$	2,187,339		$	2,154,262
Permanent placement staffing	140,894			135,038			272,456			256,438
Risk consulting and internal audit services	272,779			234,042			525,120			441,687
	$	1,516,385		$	1,457,054		$	2,984,915		$	2,852,387
Operating income
Temporary and consultant staffing	$	105,238		$	103,570		$	211,256		$	200,293
Permanent placement staffing	25,344			27,436			46,901			49,815
Risk consulting and internal audit services	28,820			18,505			47,474			33,770
	159,402			149,511			305,631			283,878
Amortization of intangible assets	341			442			683			905
Interest income, net	(1,042		)	(1,006		)	(2,538		)	(1,741		)
Income before income taxes	$	160,103		$	150,075		$	307,486		$	284,714