Segment Disclosures

6 Months Ended

Jun. 30, 2023

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	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, 2022. 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) 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, 2023 and 2022 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, 2023
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	290,930	—		—		$	290,930
Core benefits and insurance services	—		91,031		—		91,031
Non-core benefits and insurance services	—		4,807		—		4,807
Managed networking, hardware services	—		—		9,067		9,067
National practices consulting	—		—		2,667		2,667
Total revenue	$	290,930	$	95,838	$	11,734	$	398,502

	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

	Six Months Ended June 30, 2023
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	634,016	—		—		$	634,016
Core benefits and insurance services	—		187,648		—		187,648
Non-core benefits and insurance services	—		8,244		—		8,244
Managed networking, hardware services	—		—		18,021		18,021
National practices consulting	—		—		5,179		5,179
Total revenue	$	634,016	$	195,892	$	23,200	$	853,108

	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

Segment information for the three months ended June 30, 2023 and 2022 was as follows (in thousands):

	Three Months Ended June 30, 2023
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	290,930	$	95,838	$	11,734	$	—	$	398,502
Operating expenses	243,445		78,374		10,545		11,623		343,987
Gross margin	47,485		17,464		1,189		(11,623)		54,515
Corporate general and administrative expenses	—		—		—		15,793		15,793
Operating income (loss)	47,485		17,464		1,189		(27,416)		38,722
Other income (expense):
Interest expense	—		—		—		(5,534)		(5,534)
Other income, net	235		153		1		5,032		5,421
Total other income (expense), net	235		153		1		(502)		(113)
Income (loss) before income tax expense	$	47,720	$	17,617	$	1,190	$	(27,918)	$	38,609

	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	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		(15,977)		(15,903)
Total other income (expense), net	220		(13)		1		(17,621)		(17,413)
Income (loss) before income tax expense	$	49,885	$	16,675	$	1,038	$	(23,721)	$	43,877

Segment information for the six months ended June 30, 2023 and 2022 was as follows (in thousands):

	Six Months Ended June 30, 2023
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	634,016	$	195,892	$	23,200	$	—	$	853,108
Operating expenses	487,888		155,297		21,128		20,685		684,998
Gross margin	146,128		40,595		2,072		(20,685)		168,110
Corporate general and administrative expenses	—		—		—		31,391		31,391
Operating income (loss)	146,128		40,595		2,072		(52,076)		136,719
Other income (expense):
Interest expense	—		(1)		—		(9,174)		(9,175)
Gain on sale of operations, net	99		—		—		—		99
Other income, net	490		330		1		9,712		10,533
Total other income, net	589		329		1		538		1,457
Income (loss) before income tax expense	$	146,717	$	40,924	$	2,073	$	(51,538)	$	138,176

	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		(22,446)		(22,310)
Total other income (expense), net	306		(37)		1		(25,349)		(25,079)
Income (loss) before income tax expense	$	128,917	$	36,480	$	1,952	$	(46,024)	$	121,325