Business Segments

3 Months Ended

Mar. 31, 2021

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, 2020. The Company evaluates performance based on income before net interest income, intangible assets amortization expense, and income taxes.

The following table provides a reconciliation of service revenues and segment income by reportable segment to consolidated results for the three months ended March 31, 2021 and 2020 (in thousands):

	Three Months Ended March 31,
	2021		2020
Service revenues
Temporary and consultant staffing	$	889,275	$	1,092,120
Permanent placement staffing	111,703		120,489
Risk consulting and internal audit services	397,402		294,082
	$	1,398,380	$	1,506,691
Segment income
Temporary and consultant staffing	$	75,535	$	93,764
Permanent placement staffing	17,780		10,911
Risk consulting and internal audit services	57,322		26,469
Combined segment income	150,637		131,144
Amortization of intangible assets	576		338
Interest income, net	(45)		(957)
Income before income taxes	$	150,106	$	131,763

Service revenues presented above are shown net of eliminations of intersegment revenues. Intersegment revenues

between temporary and consultant staffing segment and risk consulting and internal audit services segment were $103.8 million

and $46.3 million for the three months ended March 31, 2021 and 2020, respectively.