Segment Disclosures

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Disclosures

SEGMENT DISCLOSURESOur 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	Employee Benefits Consulting	Information Technology Managed Networking and Hardware Services
Financial Advisory	Payroll / Human Capital Management	Healthcare Consulting
Valuation	Property and Casualty Insurance
Risk and Advisory Services	Retirement and Investment Services
Government Healthcare Consulting

Corporate and Other - Included in Corporate and Other are operating expenses that are not directly allocated to the individual business units. These expenses primarily consist 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, 2021. 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 income (loss) from continuing operations before income tax expense (benefit) excluding those costs listed above, which are reported in the “Corporate and Other”.

Segment information for the three and six months ended June 30, 2022 and 2021 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 June 30, 2022
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	259,308	—		—		$	259,308
Core benefits and insurance services	—		87,366		—		87,366
Non-core benefits and insurance services	—		4,342		—		4,342
Managed networking, hardware services	—		—		8,333		8,333
National practices consulting	—		—		2,603		2,603
Total revenue	$	259,308	$	91,708	$	10,936	$	361,952

	Three Months Ended June 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	186,589	—		—		$	186,589
Core benefits and insurance services	—		79,288		—		79,288
Non-core benefits and insurance services	—		3,332		—		3,332
Managed networking, hardware services	—		—		6,969		6,969
National practices consulting	—		—		2,470		2,470
Total revenue	$	186,589	$	82,620	$	9,439	$	278,648

	Six Months Ended June 30, 2022
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	548,054	—		—		$	548,054
Core benefits and insurance services	—		176,302		—		176,302
Non-core benefits and insurance services	—		7,892		—		7,892
Managed networking, hardware services	—		—		16,254		16,254
National practices consulting	—		—		5,172		5,172
Total revenue	$	548,054	$	184,194	$	21,426	$	753,674

	Six Months Ended June 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	390,738	—		—		$	390,738
Core benefits and insurance services	—		163,358		—		163,358
Non-core benefits and insurance services	—		6,501		—		6,501
Managed networking, hardware services	—		—		13,864		13,864
National practices consulting	—		—		4,917		4,917
Total revenue	$	390,738	$	169,859	$	18,781	$	579,378

Segment information for the three months ended June 30, 2022 and 2021 was as follows (in thousands):

	Three Months Ended June 30, 2022
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	259,308	$	91,708	$	10,936	$	—	$	361,952
Operating expenses (income)	209,643		75,020		9,899		(4,826)		289,736
Gross margin	49,665		16,688		1,037		4,826		72,216
Corporate general and administrative expenses	—		—		—		10,926		10,926
Operating income (loss)	49,665		16,688		1,037		(6,100)		61,290
Other income (expense):
Interest expense	—		(1)		—		(1,644)		(1,645)
Gain on sale of operations, net	135		—		—		—		135
Other income (expense), net	85		(12)		1		(15,972)		(15,898)
Total other income (expense), net	220		(13)		1		(17,616)		(17,408)
Income (loss) from continuing operations before income tax expense	$	49,885	$	16,675	$	1,038	$	(23,716)	$	43,882

	Three Months Ended June 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	186,589	$	82,620	$	9,439	$	—	$	278,648
Operating expenses	150,920		67,776		8,487		9,751		236,934
Gross margin	35,669		14,844		952		(9,751)		41,714
Corporate general and administrative expenses	—		—		—		13,816		13,816
Legal settlement, net	—		—		—		30,468		30,468
Operating income (loss)	35,669		14,844		952		(54,035)		(2,570)
Other income (expense):
Interest expense	—		—		—		(959)		(959)
Gain on sale of operations, net	—		6,385		—		—		6,385
Other income, net	194		698		—		7,481		8,373
Total other income, net	194		7,083		—		6,522		13,799
Income (loss) from continuing operations before income tax expense	$	35,863	$	21,927	$	952	$	(47,513)	$	11,229

Segment information for the six months ended June 30, 2022 and 2021 was as follows (in thousands):

	Six Months Ended June 30, 2022
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	548,054	$	184,194	$	21,426	$	—	$	753,674
Operating expenses (income)	419,443		147,677		19,475		(6,560)		580,035
Gross margin	128,611		36,517		1,951		6,560		173,639
Corporate general and administrative expenses	—		—		—		27,235		27,235
Operating income (loss)	128,611		36,517		1,951		(20,675)		146,404
Other income (expense):
Interest expense	—		(1)		—		(2,903)		(2,904)
Gain on sale of operations, net	135		—		—		—		135
Other income (expense), net	171		(36)		1		(22,437)		(22,301)
Total other income (expense), net	306		(37)		1		(25,340)		(25,070)
Income (loss) from continuing operations before income tax expense	$	128,917	$	36,480	$	1,952	$	(46,015)	$	121,334

	Six Months Ended June 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	390,738	$	169,859	$	18,781	$	—	$	579,378
Operating expenses	292,666		134,709		17,028		16,502		460,905
Gross margin	98,072		35,150		1,753		(16,502)		118,473
Corporate general and administrative expenses	—		—		—		28,299		28,299
Legal settlement, net	—		—		—		30,468		30,468
Operating income (loss)	98,072		35,150		1,753		(75,269)		59,706
Other income:
Interest expense	—		—		—		(1,836)		(1,836)
Gain on sale of operations, net	—		6,385		—		—		6,385
Other income, net	292		872		—		11,998		13,162
Total other income, net	292		7,257		—		10,162		17,711
Income (loss) from continuing operations before income tax expense	$	98,364	$	42,407	$	1,753	$	(65,107)	$	77,417