Business Segments

9 Months Ended

Sep. 30, 2013

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, 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 by reportable segment to consolidated results (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net service revenues
Temporary and consultant staffing	$	847,886		$	831,922		$	2,513,377		$	2,490,587
Permanent placement staffing		88,222			81,757			261,946			253,760
Risk consulting and internal audit services		139,011			119,494			386,708			332,653
	$	1,075,119		$	1,033,173		$	3,162,031		$	3,077,000
Operating income
Temporary and consultant staffing	$	76,532		$	75,832		$	226,293		$	196,654
Permanent placement staffing		13,691			12,538			41,753			44,162
Risk consulting and internal audit services		13,690			5,849			26,166			5,507
		103,913			94,219			294,212			246,323
Amortization of intangible assets		433			100			1,300			187
Interest income, net		(233	)		(348	)		(773	)		(867	)
Income before income taxes	$	103,713		$	94,467		$	293,685		$	247,003