Business Segments

3 Months Ended

Mar. 31, 2020

The Company has three reportable segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. Operating segments are defined as components of the Company for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. 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, 2019. 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 months ended March 31, 2020 and 2019 (in thousands):


	Three Months Ended March 31,
	2020		2019
Service revenues
Temporary and consultant staffing	$	1,092,120	$	1,084,627
Permanent placement staffing	120,489		131,562
Risk consulting and internal audit services	294,082		252,341
	$	1,506,691	$	1,468,530
Operating income
Temporary and consultant staffing	$	93,764	$	106,018
Permanent placement staffing	10,911		21,557
Risk consulting and internal audit services	26,469		18,654
	131,144		146,229
Amortization of intangible assets	338		342
Interest income, net	(957)		(1,496)
Income before income taxes	$	131,763	$	147,383