Business Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Business Segments

Note P—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. 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 (in thousands):

	Year Ended December 31,
	2021		2020		2019
Service revenues
Temporary and consultant staffing	$	4,038,743	$	3,477,335	$	4,412,125
Permanent placement staffing	569,921		370,109		533,432
Risk consulting and internal audit services	1,852,780		1,261,556		1,128,875
	$	6,461,444	$	5,109,000	$	6,074,432
Segment income
Temporary and consultant staffing	$	393,872	$	237,279	$	410,153
Permanent placement staffing	106,465		28,799		83,885
Risk consulting and internal audit services	305,487		155,680		127,713
Combined segment income	805,824		421,758		621,751
Amortization of intangible assets	2,241		1,219		1,361
Interest income, net	(197)		(1,343)		(5,125)
Income before income taxes	$	803,780	$	421,882	$	625,515

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 $580.4 million, $240.0 million and $172.4 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Revenue and direct costs related to the intersegment activity are reflected in the risk consulting and internal audit segment, including the costs of candidate payroll, fringe benefits and incremental recruiter compensation.

Assets by reportable segment are not presented as the Company does not allocate assets to its reportable segments, nor is such information used by management for purposes of assessing performance or allocating resources.

The Company operates internationally, with operations in North America, South America, Europe, Asia and Australia. The following tables represent revenues and long-lived assets by geographic location (in thousands):

 

	Year Ended December 31,
	2021		2020		2019
Service revenues (a)
Domestic	$	5,006,525	$	3,984,742	$	4,708,715
Foreign (b)	1,454,919		1,124,258		1,365,717
	$	6,461,444	$	5,109,000	$	6,074,432
	December 31,
	2021		2020		2019
Property and equipment, net
Domestic	$	76,757	$	88,117	$	99,365
Foreign	16,646		21,700		29,020
	$	93,403	$	109,817	$	128,385

(a)There were no customers that accounted for more than 10% of the Company’s total service revenues in any year presented.

(b)No individual country represented more than 10% of revenues in any year presented.