Business Segments

6 Months Ended

Jun. 30, 2013

Business Segments

Note J—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, 2012. 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 (loss) by reportable segment to consolidated results (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Net service revenues
Temporary and consultant staffing	$	842,069		$	829,008		$	1,665,491		$	1,658,665
Permanent placement staffing		90,347			89,141			173,724			172,003
Risk consulting and internal audit services		130,812			110,234			247,697			213,159
	$	1,063,228		$	1,028,383		$	2,086,912		$	2,043,827
Operating income (loss)
Temporary and consultant staffing	$	76,581		$	51,668		$	149,761		$	120,822
Permanent placement staffing		15,477			18,358			28,062			31,624
Risk consulting and internal audit services		8,736			2,013			12,476			(342	)
		100,794			72,039			190,299			152,104
Amortization of intangible assets		434			52			867			87
Interest income, net		(236	)		(285	)		(540	)		(519	)
Income before income taxes	$	100,596		$	72,272		$	189,972		$	152,536