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Reportable Segments
9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments
Kforce’s reportable segments are as follows: (1) Technology (“Tech”); (2) Finance and Accounting (“FA”); and (3) Government Solutions (“GS”). This determination is supported by, among other factors: the existence of individuals responsible for the operations of each segment and who also report directly to our chief operating decision maker (“CODM”), the nature of the segment’s operations and information presented to the Board and our CODM. Kforce also reports Flexible billings and Direct Hire fees separately by segment, which has been incorporated into the table below.
Historically, and for the three and nine months ended September 30, 2016 and 2015, Kforce has generated only sales and gross profit information on a segment basis. Substantially all operations and long-lived assets are located in the United States. We do not report total assets or income separately by segment as our operations are largely combined.
The following table provides information concerning the operations of our segments (in thousands):
 
Tech
 
FA
 
GS
 
Total
Three Months Ended September 30,
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
Net service revenues:
 
 
 
 
 
 
 
Flexible billings
$
220,376

 
$
76,290

 
$
26,818

 
$
323,484

Direct Hire fees
5,148

 
7,828

 

 
12,976

Total net service revenues
$
225,524

 
$
84,118

 
$
26,818

 
$
336,460

Gross profit
$
65,173

 
$
30,439

 
$
9,768

 
$
105,380

Operating expenses
 
 
 
 
 
 
90,656

Income before income taxes
 
 
 
 
 
 
$
14,724

2015
 
 
 
 
 
 
 
Net service revenues:
 
 
 
 
 
 
 
Flexible billings
$
226,381

 
$
76,707

 
$
24,351

 
$
327,439

Direct Hire fees
5,732

 
8,404

 

 
14,136

Total net service revenues
$
232,113

 
$
85,111

 
$
24,351

 
$
341,575

Gross profit
$
69,128

 
$
31,710

 
$
8,983

 
$
109,821

Operating expenses
 
 
 
 
 
 
87,209

Income before income taxes
 
 
 
 
 
 
$
22,612

Nine Months Ended September 30,
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
Net service revenues:
 
 
 
 
 
 
 
Flexible billings
$
650,997

 
$
228,365

 
$
75,231

 
$
954,593

Direct Hire fees
15,673

 
23,442

 

 
39,115

Total net service revenues
$
666,670

 
$
251,807

 
$
75,231

 
$
993,708

Gross profit
$
193,132

 
$
90,695

 
$
25,024

 
$
308,851

Operating expenses
 
 
 
 
 
 
267,663

Income before income taxes
 
 
 
 
 
 
$
41,188

2015
 
 
 
 
 
 
 
Net service revenues:
 
 
 
 
 
 
 
Flexible billings
$
660,692

 
$
215,674

 
$
74,515

 
$
950,881

Direct Hire fees
17,224

 
23,434

 

 
40,658

Total net service revenues
$
677,916

 
$
239,108

 
$
74,515

 
$
991,539

Gross profit
$
197,982

 
$
87,229

 
$
25,388

 
$
310,599

Operating expenses
 
 
 
 
 
 
259,023

Income before income taxes
 
 
 
 
 
 
$
51,576