Business Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Business Segments

Business Segments

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 and six months ended June 30, 2020 and 2019 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Service revenues
Temporary and consultant staffing	$	753,386	$	1,102,712	$	1,845,506	$	2,187,339
Permanent placement staffing	71,030		140,894		191,519		272,456
Risk consulting and internal audit services	283,910		272,779		577,992		525,120
	$	1,108,326	$	1,516,385	$	2,615,017	$	2,984,915
Operating income
Temporary and consultant staffing	$	28,390	$	105,238	$	122,154	$	211,256
Permanent placement staffing	(248)		25,344		10,663		46,901
Risk consulting and internal audit services	30,107		28,820		56,576		47,474
	58,249		159,402		189,393		305,631
Amortization of intangible assets	330		341		668		683
Interest income, net	(105)		(1,042)		(1,062)		(2,538)
Income before income taxes	$	58,024	$	160,103	$	189,787	$	307,486