Business Segments

6 Months Ended

Jun. 30, 2024

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 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, and executive searches. The Protiviti segment provides internal audit, risk, business, and technology consulting solutions.

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, 2023. The Company evaluates performance based on income before intangible assets amortization expense, net interest income, and income taxes.

The following table provides a reconciliation of service revenues and segment income by reportable segment to consolidated results for the three and six months ended June 30, 2024 and 2023 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Service revenues
Contract talent solutions	$	854,897	$	999,383	$	1,741,955	$	2,064,857
Permanent placement talent solutions	131,063		149,254		255,830		305,991
Protiviti	486,564		490,841		950,676		984,965
	$	1,472,524	$	1,639,478	$	2,948,461	$	3,355,813
Segment income
Contract talent solutions	$	38,146	$	81,316	$	88,264	$	183,462
Permanent placement talent solutions	16,148		21,730		28,003		45,557
Protiviti	37,286		43,566		59,891		82,387
Combined segment income	91,580		146,612		176,158		311,406
Amortization of intangible assets	304		721		608		1,442
Interest income, net	(5,186)		(5,320)		(11,599)		(10,145)
Income before income taxes	$	96,462	$	151,211	$	187,149	$	320,109

Service revenues presented above are shown net of eliminations of intersegment revenues. Intersegment revenues between contract talent solutions segment and Protiviti segment were $116.5 million and $229.3 million for the three and six months ended June 30, 2024, respectively, and $114.8 million and $240.6 million for the three and six months ended June 30, 2023, 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.