Discontinued Operations

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

During 2019, management completed the sale of our Government Solutions (“GS”) segment as a result of the Firm’s decision to focus solely on the commercial technical and professional staffing services and solutions space. The GS segment consisted of Kforce Government Solutions, Inc. (“KGS”), our federal government solutions business, and TraumaFX® Solutions, Inc. (“TFX”), our federal government product business. The results of operations for both KGS and TFX have been reported as discontinued operations in our consolidated financial statements for all prior periods presented.

The following table summarizes the line items of pretax profit of the GS segment (in thousands):


	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Revenue	$	—	$	27,737
Direct costs	—		19,494
Gross profit	—		8,243
Selling, general and administrative expenses	—		6,842
Depreciation and amortization	—		307
Income from discontinued operations	—		1,094
(Loss) gain on sale of discontinued operations	(402)		79,602
Other expense, net	—		(436)
(Loss) income from discontinued operations, before income taxes	(402)		80,260
Income tax expense	565		3,563
(Loss) income from discontinued operations, net of tax	$	(967)	$	76,697

During the three months ended September 30, 2019, we recorded $0.6 million of income tax expense related to a revision in an estimate of our tax obligation for the sale of KGS, which is included in the Loss on sale of discontinued operations, net of tax.

For the nine months ended September 30, 2019, the accompanying Unaudited Condensed Consolidated Statements of Cash Flows are presented on a combined basis (continuing operations and discontinued operations) and cash provided by operating activities and cash provided by investing activities for discontinued operations were $5.1 million and $118.5 million, respectively.