Business Segments

9 Months Ended

Sep. 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 nine months ended September 30, 2019 and 2018 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net service revenues
Temporary and consultant staffing	$	1,118,461		$	1,083,766		$	3,305,800		$	3,238,028
Permanent placement staffing	134,582			129,667			407,038			386,105
Risk consulting and internal audit services	299,089			252,793			824,209			694,480
	$	1,552,132		$	1,466,226		$	4,537,047		$	4,318,613
Operating income
Temporary and consultant staffing	$	101,428		$	102,707		$	312,684		$	303,000
Permanent placement staffing	21,817			22,895			68,718			72,710
Risk consulting and internal audit services	39,646			25,536			87,120			59,306
	162,891			151,138			468,522			435,016
Amortization of intangible assets	339			429			1,022			1,334
Interest income, net	(1,230		)	(1,196		)	(3,768		)	(2,937		)
Income before income taxes	$	163,782		$	151,905		$	471,268		$	436,619