Segment Reporting (Notes)

9 Months Ended

Sep. 30, 2020

ASGN provides IT and professional staffing services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors. ASGN operates through its Apex, Oxford and ECS Segments. The Apex Segment provides technology, digital, creative, scientific, engineering staffing and consulting services to Fortune 1000 and mid-market clients across the United States and Canada. The Oxford Segment provides hard-to-find technology, digital, engineering and life sciences staffing and consulting services in select skill and geographic markets in the United States and Europe. The Company’s commercial business is comprised of the Apex and Oxford Segments. The ECS Segment, the Company’s federal government business, delivers advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, science and engineering to U.S. defense, intelligence and federal civilian agencies. Virtually all of the Company's revenues are generated in the United States. Revenues from outside the United States accounted for less than 5.0 percent of consolidated revenues.

The Company has three major revenue sources: (i) contract, (ii) permanent placement and (iii) federal government. The Company’s contract revenues are comprised of assignment revenues and consulting revenues. Consulting services consist of deliverables-based projects including support service centers and managed projects such as software development.

The Company’s management evaluates the performance of each segment primarily based on revenues, gross profit and operating income. The information in the following tables is derived directly from internal financial reporting of the segments used for corporate management purposes. The following tables present revenues, gross profit, operating income and amortization by segment (in millions):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Apex
Revenues	$	596.1	$	644.1	$	1,802.1	$	1,878.7
Gross profit	173.0		192.2		528.1		555.4
Operating income	69.4		79.2		202.3		213.1
Amortization	5.7		4.0		16.5		15.5
Oxford
Revenues	$	127.2	$	152.5	$	396.1	$	455.3
Gross profit	52.1		61.9		157.8		183.3
Operating income	12.1		13.6		31.0		36.3
Amortization	0.2		1.0		0.5		3.0
ECS
Revenues	$	288.6	$	206.1	$	741.0	$	564.7
Gross profit	45.9		37.3		126.8		101.8
Operating income	16.7		12.7		44.3		30.5
Amortization	7.0		6.9		20.6		20.3
Consolidated
Revenues	$	1,011.9	$	1,002.7	$	2,939.2	$	2,898.7
Gross profit	271.0		291.4		812.7		840.5
Operating income(1)	80.9		90.9		227.8		226.9
Amortization	12.9		11.9		37.6		38.8

___________________ (1) Consolidated operating income includes corporate operating expenses, which are not allocated to the segments, consisting of consolidated stock-based compensation expense, compensation for corporate employees, acquisition, integration and strategic planning expenses, public company expenses and depreciation expense for corporate assets.

The following table presents segment revenues by type (in millions):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Apex
Assignment	$	492.2	$	544.7	$	1,502.3	$	1,598.0
Consulting	96.6		85.1		271.5		237.0
Permanent placement	7.3		14.3		28.3		43.7
	596.1		644.1		1,802.1		1,878.7
Oxford
Assignment	$	95.8	$	115.3	$	306.9	$	350.0
Consulting	14.1		15.0		38.4		41.1
Permanent placement	17.3		22.2		50.8		64.2
	127.2		152.5		396.1		455.3
ECS
Firm-fixed-price	$	82.0	$	64.4	$	201.2	$	153.8
Time and materials	80.8		68.4		234.6		200.6
Cost reimbursable	125.8		73.3		305.2		210.3
	288.6		206.1		741.0		564.7
Consolidated	$	1,011.9	$	1,002.7	$	2,939.2	$	2,898.7

The following table presents the ECS Segment (federal government business) revenues by customer type (in millions):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Department of Defense and Intelligence Agencies	$	172.0	$	112.6	$	414.4	$	316.2
Federal Civilian	96.2		82.0		276.1		213.5
Other	20.4		11.5		50.5		35.0
	$	288.6	$	206.1	$	741.0	$	564.7