Business Segments

ASGN is one of the foremost providers of IT and professional staffing services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors. Operating through its Apex, Oxford and ECS segments. The Apex Segment provides technical, scientific, digital and creative services and solutions to Fortune 1000 and mid-market clients across the United States and Canada. The businesses in this segment include Apex Systems, Apex Life Sciences and Creative Circle. The Oxford Segment provides hard-to-find technical, digital, engineering and life sciences resources and consulting services in select skill and geographic markets. The businesses in this segment include Oxford, CyberCoders and Life Sciences Europe. The ECS Segment delivers advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, software development, IT modernization and science and engineering and is primarily focused on federal government activities. ECS was acquired on April 2, 2018 (see Note 3 – Acquisitions).

The Company’s management evaluates the performance of each segment primarily based on revenues, gross profit and operating income. The information in the following tables is derived directly from the segments’ internal financial reporting used for corporate management purposes.

The following tables present revenues, gross profit, operating income and amortization by reportable segment (in thousands):



	Year ended December 31,
	2018			2017			2016
Apex:
Revenues	$	2,300,242		$	2,037,154		$	1,836,488
Gross profit	687,861			606,294			548,421
Operating income	262,297			222,010			195,133
Amortization	26,185			29,361			34,359
Oxford:
Revenues	$	606,510		$	588,770		$	603,925
Gross profit	248,875			243,779			246,762
Operating income	54,142			53,787			51,294
Amortization	4,179			4,083			5,269
ECS:
Revenues	$	493,029		$	—		$	—
Gross profit	86,915			—			—
Operating income	15,514			—			—
Amortization	28,142			—			—
Corporate:
Operating loss⁽¹⁾	$	(71,805	)	$	(51,061	)	$	(56,701	)
Consolidated:
Revenues	$	3,399,781		$	2,625,924		$	2,440,413
Gross profit	1,023,651			850,073			795,183
Operating income	260,148			224,736			189,726
Amortization	58,506			33,444			39,628

_________

⁽¹⁾ Corporate expenses primarily consist of consolidated stock-based compensation expense, compensation for corporate employees, acquisition, integration and strategic planning expenses, public company expenses and depreciation expense for corporate assets.

The following table presents revenues by type (in thousands):



	Year Ended December 31,
	2018		2017		2016
Apex:
Assignment	$	2,244,470	$	1,993,256	$	1,791,566
Permanent placement	55,772		43,898		44,922
	$	2,300,242	$	2,037,154	$	1,836,488
Oxford:
Assignment	$	516,045	$	503,058	$	520,705
Permanent placement	90,465		85,712		83,220
	$	606,510	$	588,770	$	603,925
ECS:
Firm-fixed-price	$	133,146	$	—	$	—
Time and Materials	143,434		—		—
Cost-plus-fixed-fee	216,449		—		—
	$	493,029	$	—	$	—
Consolidated	$	3,399,781	$	2,625,924	$	2,440,413

The following table presents the ECS segment revenues by customer type (in thousands):



	Year Ended
	December 31, 2018
Department of Defense and Intelligence Agencies	$	310,984
Federal Civilian	150,922
Commercial and Other	31,123
	$	493,029

The Company operates internationally, with operations in the United States, Europe and Canada. The following table presents revenues by geographic location (in thousands):



	Year Ended December 31,
	2018		2017		2016
Domestic	$	3,241,804	$	2,494,446	$	2,324,713
Foreign	157,977		131,478		115,700
	$	3,399,781	$	2,625,924	$	2,440,413

The following table presents total assets by reportable segment (in thousands):



	December 31,
	2018		2017
Apex	$	1,368,548	$	1,357,246
Oxford	421,199		424,593
ECS	865,610		—
Corporate⁽¹⁾	32,494		28,290
	$	2,687,851	$	1,810,129

_________

⁽¹⁾ Corporate segment assets include workers’ compensation receivable and rabbi trust assets related to deferred compensation for employees of other segments. These programs are managed by the Company's corporate office and the related balances are recorded at corporate. These assets have offsetting liabilities for workers' compensation loss reserves and the Company's deferred compensation plan.

The following table presents long-lived assets by geographic location (in thousands):



	December 31,
	2018		2017
Domestic	$	76,742	$	56,137
Foreign	2,381		1,859
	$	79,123	$	57,996