Business Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has three reportable segments: contract talent solutions, permanent placement talent solutions, and Protiviti. 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 contract talent solutions segment provides specialized engagement professionals in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement talent solutions segment provides full-time personnel in the accounting, finance, administrative and office, legal, and information technology fields. The Protiviti 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, 2021. 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, 2022 and 2021 (in thousands):

	Three Months Ended March 31,
	2022		2021
Service revenues
Contract talent solutions	$	1,155,723	$	889,275
Permanent placement talent solutions	186,782		111,703
Protiviti	472,329		397,402
	$	1,814,834	$	1,398,380
Segment income
Contract talent solutions	$	133,246	$	75,535
Permanent placement talent solutions	37,328		17,780
Protiviti	57,077		57,322
Combined segment income	227,651		150,637
Amortization of intangible assets	417		576
Interest income, net	(166)		(45)
Income before income taxes	$	227,400	$	150,106

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

between the contract talent solutions segment and Protiviti segment were $144.2 million and $103.8 million three months ended March 31, 2022 and 2021, respectively.

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