Segment Disclosures

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Disclosures

SEGMENT DISCLOSURES

Our business units have been aggregated into three practice groups: Financial Services, Benefits and Insurance Services and National Practices. The business units have been aggregated based on the following factors: similarity of the products and services provided to clients; similarity of the regulatory environment in which they operate; and similarity of economic conditions affecting long-term performance. The business units are managed along these segment lines. A general description of services provided by each practice group is provided in the table below.

Financial Services	Benefits and Insurance Services	National Practices
Accounting and Tax	Group Health Benefits Consulting	Managed Networking and Hardware Services
Government Healthcare Consulting	Payroll	Healthcare Consulting
Financial Advisory	Property and Casualty
Valuation	Retirement Plan Services
Risk & Advisory Services

Corporate and Other. Included in “Corporate and Other” are operating expenses that are not directly allocated to the individual business units. These expenses are primarily comprised of certain health care costs, gains or losses attributable to assets held in our non-qualified deferred compensation plan, stock-based compensation, consolidation and integration charges, certain professional fees, certain advertising costs and other various expenses.

Accounting policies of the practice groups are the same as those described in Note 1. Basis of Presentation and Significant Accounting Policies, to the Annual Report on Form 10-K for the year ended December 31, 2020. Upon consolidation, intercompany accounts and transactions are eliminated, thus inter-segment revenue is not included in the measure of profit or loss for the practice groups. Performance of the practice groups is evaluated on operating income excluding those costs listed above, which are reported in the “Corporate and Other” segment.

Segment information for the three months ended March 31, 2021 and 2020 is presented below. We do not manage our assets on a segment basis, therefore segment assets are not presented below.

The following table disaggregates our revenue by source (in thousands):

	Three Months Ended March 31, 2021
	Financial Services		Benefits & Insurance		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	204,149	—		—		$	204,149
Core benefits and insurance services	—		84,070		—		84,070
Non-core benefits and insurance services	—		3,169		—		3,169
Managed networking, hardware services	—		—		6,895		6,895
National practices consulting	—		—		2,447		2,447
Total revenue	$	204,149	$	87,239	$	9,342	$	300,730

	Three Months Ended March 31, 2020
	Financial Services		Benefits & Insurance		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	188,777	—		—		$	188,777
Core benefits and insurance services	—		76,472		—		76,472
Non-core benefits and insurance services	—		3,140		—		3,140
Managed networking, hardware services	—		—		6,575		6,575
National practices consulting	—		—		2,491		2,491
Total revenue	$	188,777	$	79,612	$	9,066	$	277,455

Segment information for the three months ended March 31, 2021 and 2020 was as follows (in thousands):

	Three Months Ended March 31, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	204,149	$	87,239	$	9,342	$	—	$	300,730
Operating expenses	141,746		66,933		8,541		6,751		223,971
Gross margin	62,403		20,306		801		(6,751)		76,759
Corporate general and administrative expenses	—		—		—		14,483		14,483
Operating income (loss)	62,403		20,306		801		(21,234)		62,276
Other income (expense):
Interest expense	—		—		—		(877)		(877)
Other income, net	98		174		—		4,517		4,789
Total other income (expense), net	98		174		—		3,640		3,912
Income (loss) from continuing operations before income tax expense	$	62,501	$	20,480	$	801	$	(17,594)	$	66,188

	Three Months Ended March 31, 2020
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	188,777	$	79,612	$	9,066	$	—	$	277,455
Operating expenses	138,598		65,223		8,283		(12,277)		199,827
Gross margin	50,179		14,389		783		12,277		77,628
Corporate general and administrative expenses	—		—		—		10,489		10,489
Operating income (loss)	50,179		14,389		783		1,788		67,139
Other income (expense):
Interest expense	—		(11)		—		(1,108)		(1,119)
Gain on sale of operations, net	40		55		—		—		95
Other income (expense), net	19		96		1		(15,916)		(15,800)
Total other income (expense), net	59		140		1		(17,024)		(16,824)
Income (loss) from continuing operations before income tax expense	$	50,238	$	14,529	$	784	$	(15,236)	$	50,315