Business Segments

9 Months Ended

Sep. 30, 2017

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 staffing segment provides specialized staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing and web design fields. The permanent placement staffing segment provides full-time personnel in the accounting, finance, administrative and office, and information technology fields. The risk consulting and internal audit services 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, 2016. The Company evaluates performance based on income 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 for the three and nine months ended September 30, 2017 and 2016 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net service revenues
Temporary and consultant staffing	$	1,004,808		$	1,016,248		$	2,990,710		$	3,057,496
Permanent placement staffing	111,333			105,117			327,619			324,845
Risk consulting and internal audit services	208,568			217,176			602,178			602,985
	$	1,324,709		$	1,338,541		$	3,920,507		$	3,985,326
Operating income
Temporary and consultant staffing	$	87,703		$	97,786		$	271,162		$	302,802
Permanent placement staffing	19,945			20,286			59,293			66,364
Risk consulting and internal audit services	24,573			28,295			58,062			60,596
	132,221			146,367			388,517			429,762
Amortization of intangible assets	481			326			1,147			928
Interest income, net	(530		)	(283		)	(1,108		)	(695		)
Income before income taxes	$	132,270		$	146,324		$	388,478		$	429,529