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Business Segments
 3 Months Ended
Mar. 31, 2025
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 (“CODM”), a position currently held by the Company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. The contract talent solutions reportable segment results from the aggregation of three operating segments with similar economic and qualitative characteristics: finance and accounting, administration and customer support, and technology. 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, and administrative and customer support roles. The Protiviti segment provides business and technology risk consulting and internal audit services.
The CODM uses segment income to evaluate performance and allocate resources to each segment. Segment income excludes interest income, income taxes and the impacts of the (income) loss from investments held in employee deferred compensation trusts, along with the related compensation costs and expenses. The CODM considers variances between actual results and expectations as well as historical trends for segment income when making decisions about allocating capital and personnel resources to each segment.
The accounting policies of the segments are set forth in Note A—“Summary of Significant Accounting Policies.”
The following tables provide a reconciliation of service revenues and segment income by reportable segment to consolidated results (in thousands):
 Three Months Ended
March 31,
Contract Talent Solutions 20252024
Service revenues(1)
$763,205 $887,058 
Segment costs of services(2)
466,272 536,488 
Compensation expenses(3)
220,982 227,719 
Other(4)
69,260 72,733 
Segment selling, general and administrative expenses290,242 300,452 
Segment income$6,691 $50,118 
 Three Months Ended
March 31,
Permanent Placement Talent Solutions20252024
Service revenues(1)
$112,091 $124,767 
Segment costs of services(2)
230 219 
Compensation expenses(3)
88,900 92,322 
Other(4)
19,337 20,371 
Segment selling, general and administrative expenses108,237 112,693 
Segment income$3,624 $11,855 
 Three Months Ended
March 31,
Protiviti20252024
Service revenues(1)
$476,611 $464,112 
Segment costs of services(2)
390,399 368,076 
Compensation expenses(3)
25,043 23,627 
Other(4)
52,773 50,108 
Segment selling, general and administrative expenses77,816 73,735 
Segment income$8,396 $22,301 
 Three Months Ended
March 31,
Combined Segment20252024
Service revenues(1)
$1,351,907 $1,475,937 
Costs of services(2)
856,901 904,783 
Compensation expenses(3)
334,925 343,668 
Other(4)
141,370 143,212 
Selling, general and administrative expenses476,295 486,880 
Combined segment income18,711 84,274 
Interest income, net(3,572)(6,413)
Income before income taxes$22,283 $90,687 
(1)Service revenues presented above are shown net of eliminations of intersegment revenues. Intersegment revenues between the contract talent solutions segment and the Protiviti segment were $117.9 million and $112.8 million for the three months ended March 31, 2025 and 2024, respectively. Service revenues related to the intersegment activity are reflected in the Protiviti segment.
(2)Segment costs of services consist of direct payroll, payroll taxes and benefit costs, as well as reimbursable expenses. 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. For further information on costs of services, see Note A—“Summary of Significant Accounting Policies.”
(3)Includes payroll and applicable taxes, employee incentive compensation and other employee costs not included in direct cost as noted above.
(4)Other selling, general and administrative expenses is comprised of advertising, as well as other allocated expenses including lease expense, depreciation, cloud computing service costs and overhead costs. These costs are allocated to the individual segments based on an internal allocation method.
The following table represents depreciation expense by segment (in thousands):
 Three Months Ended
March 31,
 20252024
Depreciation expense
Contract talent solutions$6,498 $6,593 
Permanent placement talent solutions2,099 2,224 
Protiviti4,409 4,187 
$13,006 $13,004