Business Segments

9 Months Ended

Sep. 30, 2012

Business Segments

Note K—Business Segments

The Company, which aggregates its operating segments based on the nature of services, has three reportable segments: temporary and consultant staffing, permanent placement staffing, and risk consulting and internal audit services. The temporary and consultant segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting 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, 2011. The Company evaluates performance based on income or loss from operations before net interest income, intangible amortization expense, and income taxes.

The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net service revenues
Temporary and consultant staffing	$	831,922		$	794,722		$	2,490,587		$	2,261,773
Permanent placement staffing		81,757			79,064			253,760			227,331
Risk consulting and internal audit services		119,494			110,882			332,653			314,399
	$	1,033,173		$	984,668		$	3,077,000		$	2,803,503
Operating income
Temporary and consultant staffing	$	75,832		$	61,196		$	196,654		$	145,507
Permanent placement staffing		12,538			7,719			44,162			29,461
Risk consulting and internal audit services		5,849			3,171			5,507			2,607
		94,219			72,086			246,323			177,575
Amortization of intangible assets		100			39			187			118
Interest income, net		(348	)		(148	)		(867	)		(598	)
Income before income taxes	$	94,467		$	72,195		$	247,003		$	178,055