Business Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business Segments

Note P—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 and permanent placement talent solutions segments provide specialized engagement professionals and full-time personnel, respectively, for finance and accounting, technology, marketing and creative, legal, administrative, and customer support roles. 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.” 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,
	2023		2022		2021
Service revenues
Contract talent solutions	$	3,895,332	$	4,532,847	$	4,038,743
Permanent placement talent solutions	567,486		725,155		569,921
Protiviti	1,929,699		1,980,140		1,852,780
	$	6,392,517	$	7,238,142	$	6,461,444
Segment income
Contract talent solutions	$	292,815	$	492,281	$	393,872
Permanent placement talent solutions	75,004		127,622		106,465
Protiviti	187,674		270,711		305,487
Combined segment income	555,493		890,614		805,824
Amortization of intangible assets	2,883		1,667		2,241
Interest income, net	(23,973)		(8,008)		(197)
Income before income taxes	$	576,583	$	896,955	$	803,780

Service revenues presented above are shown net of eliminations of intersegment revenues. Intersegment revenues between contract talent solutions segment and Protiviti segment were $442.3 million, $552.2 million and $580.4 million for the years ended December 31, 2023, 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.

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 service revenues and long-lived assets by geographic location (in thousands):

	Year Ended December 31,
	2023		2022		2021
Service revenues (a)
Domestic	$	4,957,163	$	5,712,330	$	5,006,525
Foreign (b)	1,435,354		1,525,812		1,454,919
	$	6,392,517	$	7,238,142	$	6,461,444
			December 31,
			2023		2022
Property and equipment, net
Domestic			$	87,664	$	90,388
Foreign			21,145		19,299
			$	108,809	$	109,687

(a)No customer accounted for more than 10% of the Company’s total service revenues in any year presented.

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