Business Segments

9 Months Ended

Sep. 30, 2018

The Company 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, 2017. The Company evaluates performance based on income from operations before net interest income, intangible asset 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, 2018 and 2017 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net service revenues
Temporary and consultant staffing	$	1,083,766		$	1,004,808		$	3,238,028		$	2,990,710
Permanent placement staffing	129,667			111,333			386,105			327,619
Risk consulting and internal audit services	252,793			208,568			694,480			602,178
	$	1,466,226		$	1,324,709		$	4,318,613		$	3,920,507
Operating income
Temporary and consultant staffing	$	102,707		$	87,703		$	303,000		$	271,162
Permanent placement staffing	22,895			19,945			72,710			59,293
Risk consulting and internal audit services	25,536			24,573			59,306			58,062
	151,138			132,221			435,016			388,517
Amortization of intangible assets	429			481			1,334			1,147
Interest income, net	(1,196		)	(530		)	(2,937		)	(1,108		)
Income before income taxes	$	151,905		$	132,270		$	436,619		$	388,478