Reportable Segments

12 Months Ended

Dec. 31, 2017

Kforce’s reportable segments are as follows: (1) Tech; (2) FA; and (3) GS. This determination is supported by, among other factors: the nature of the segment’s operations, operating results are regularly reviewed by the Firm’s chief operating decision maker (“CODM”), and discrete financial information is presented to Kforce’s Board and our CODM. Kforce also reports Flex and Direct Hire revenues separately by segment, which has been incorporated into the table below.

Historically, our Tech segment has included the results of operations for Global, a wholly-owned subsidiary located in Manila, Philippines. During the year ended December 31, 2017, Kforce completed the sale of Global’s assets. This sale did not meet the definition of discontinued operations. Kforce recorded a $3.3 million gain on sale of Global’s assets, which was recorded in Selling, general and administrative expenses within the accompanying Consolidated Statements of Operations and Comprehensive Income.

Historically, and for the year ended December 31, 2017, Kforce has generated only sales and gross profit information on a segment basis. We do not report total assets or income from continuing operations separately by segment as our operations are largely combined.

The following table provides information concerning the operations of our segments for the years ended December 31 (in thousands):



	Tech		FA		GS		Total
2017
Net service revenues
Flex revenues	$	887,675	$	318,294	$	104,294	$	1,310,263
Direct Hire revenues	19,836		27,841		—		47,677
Total Net service revenues	$	907,511	$	346,135	$	104,294	$	1,357,940
Gross profit	$	257,118	$	118,479	$	32,459	$	408,056
Operating expenses							343,962
Income before income taxes							$	64,094
2016
Net service revenues
Flex revenues	$	863,434	$	307,245	$	98,628	$	1,269,307
Direct Hire revenues	20,043		30,356		—		50,399
Total Net service revenues	$	883,477	$	337,601	$	98,628	$	1,319,706
Gross profit	$	255,842	$	120,551	$	32,106	$	408,499
Operating expenses							352,544
Income before income taxes							$	55,955
2015
Net service revenues
Flex revenues	$	873,609	$	294,186	$	97,372	$	1,265,167
Direct Hire revenues	22,333		31,738		—		54,071
Total Net service revenues	$	895,942	$	325,924	$	97,372	$	1,319,238
Gross profit	$	261,721	$	119,036	$	33,357	$	414,114
Operating expenses							342,442
Income before income taxes							$	71,672