SEGMENT DISCLOSURES

3 Months Ended

Mar. 31, 2025

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. Refer to the Annual Report on Form 10-K for the year ended December 31, 2024 for further discussion on the segment lines.

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, 2024. 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 “Corporate and Other”.

The practice groups respective revenue and pre-tax income, significant segment expenses, and a reconciliation of segment profit or loss measure to the consolidated income before income tax expense for the three months ended March 31, 2025 and 2024 is presented below. We do not manage our assets on a segment basis, therefore segment assets are not presented below.

Segment information for the three months ended March 31, 2025 and 2024 was as follows (in thousands):

	Three months ended March 31, 2025
	Financial Services		Benefits and Insurance Services		National Practices		Total
Revenue from external customers	$	713,661	$	112,976	$	11,377	$	838,014
Significant expenses:
Personnel costs	411,302		66,665		10,155		488,122
Facility costs	23,710		3,208		2		26,920
Other costs, gains, and losses, net (1)	75,296		15,158		108		90,562
Total segment expense	510,308		85,031		10,265		605,604
Segment income before income tax expenses	203,353		27,945		1,112		232,410
Corporate & other:
Unallocated corporate operating expenses							3,797
General & administrative expenses							28,070
Interest expense							25,156
Other expense, net							2,477
Consolidated income before income tax expenses							$	172,910

	Three Months Ended March 31, 2024
	Financial Services		Benefits and Insurance Services		National Practices		Total
Revenue from external customers	$	372,630	$	108,408	$	13,259	$	494,297
Significant expenses:
Personnel costs	216,615		65,723		11,422		293,760
Facility costs	12,335		3,182		63		15,580
Other costs, gains, and losses, net (1)	36,525		14,688		448		51,661
Total segment expense	265,475		83,593		11,933		361,001
Segment income before income tax expenses	107,155		24,815		1,326		133,296
Corporate & other:
Unallocated corporate operating expenses							15,354
General & administrative expenses							18,711
Interest expense							4,511
Other income, net							(9,294)
Consolidated income before income tax expenses							$	104,014

(1)Other costs, gains, and losses, net primarily consist of travel and entertainment costs, computer and technology related costs, depreciation and amortization expenses, and other discretionary costs.