10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-35636

ASGN Incorporated

(Exact name of registrant as specified in its charter)

Delaware	95-4023433
(State of Incorporation)	(I.R.S. Employer Identification No.)

4400 Cox Road, Suite 110

Glen Allen, Virginia 23060

(Address, including zip code, of Principal Executive Offices)

(888) 482-8068

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock	ASGN	NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒Yes ☐ No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  ☒Yes ☐ No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 ☐ Yes ☒ No 

At August 3, 2020, the total number of outstanding shares of the Common Stock of ASGN Incorporated (the "Company") ($0.01 par value) was 52.5 million.

1

ASGN INCORPORATED AND SUBSIDIARIES INDEX
PART I – FINANCIAL INFORMATION
Item 1 – Condensed Consolidated Financial Statements (unaudited)	3
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Operations and Comprehensive Income	4
Condensed Consolidated Statements of Stockholders’ Equity	5
Condensed Consolidated Statements of Cash Flows	6
Notes to Condensed Consolidated Financial Statements	7
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3 – Quantitative and Qualitative Disclosures about Market Risks	15
Item 4 – Controls and Procedures	16
PART II – OTHER INFORMATION
Item 1 – Legal Proceedings	16
Item 1A – Risk Factors	16
Item 2 – Unregistered Sales of Securities and Use of Proceeds	16
Item 3 – Defaults Upon Senior Securities	16
Item 4 – Mine Safety Disclosures	16
Item 5 – Other Information	16
Item 6 – Exhibits	17
Signature	18

2

PART I - FINANCIAL INFORMATION

Item 1 — Condensed Consolidated Financial Statements (Unaudited)

ASGN INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions, except par value per share)

	June 30, 2020			December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	207.9		$	95.2
Accounts receivable, net	612.1			648.7
Prepaid expenses and income taxes	15.9			29.4
Other current assets	18.7			18.2
Total current assets	854.6			791.5
Property and equipment, net	79.2			73.7
Operating lease right of use assets	90.3			94.6
Identifiable intangible assets, net	474.6			476.5
Goodwill	1,547.3			1,486.9
Other	19.5			18.2
Total assets	$	3,065.5		$	2,941.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	37.5		$	39.2
Accrued payroll and contract professional pay	206.5			203.2
Operating lease liabilities	27.6			25.8
Other current liabilities	85.7			72.7
Total current liabilities	357.3			340.9
Long-term debt	1,032.9			1,032.3
Operating lease liabilities	69.5			75.7
Deferred income tax liabilities	98.6			98.7
Payroll tax deferral and other	50.1			17.6
Total liabilities	1,608.4			1,565.2
Commitments and contingencies (Note 6)
Stockholders’ equity:
Preferred stock, $0.01 par value; 1 million shares authorized; no shares issued	—			—
Common stock, $0.01 par value; 75 million shares authorized; 52.5 million and 52.9 million shares outstanding as of June 30, 2020 and December 31, 2019, respectively	0.5			0.5
Paid-in capital	645.9			638.0
Retained earnings	818.6			744.7
Accumulated other comprehensive loss	(7.9		)	(7.0		)
Total stockholders’ equity	1,457.1			1,376.2
Total liabilities and stockholders’ equity	$	3,065.5		$	2,941.4

 

See notes to condensed consolidated financial statements.

3

ASGN INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)

(In millions, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Revenues	$	936.8		$	972.3		$	1,927.3		$	1,896.0
Costs of services	676.0			687.1			1,385.6			1,346.9
Gross profit	260.8			285.2			541.7			549.1
Selling, general and administrative expenses	172.2			198.8			370.1			386.2
Amortization of intangible assets	12.6			13.1			24.7			26.9
Operating income	76.0			73.3			146.9			136.0
Interest expense	(9.7		)	(14.0		)	(21.1		)	(28.5		)
Income before income taxes	66.3			59.3			125.8			107.5
Provision for income taxes	17.5			16.2			33.2			29.5
Net income	$	48.8		$	43.1		$	92.6		$	78.0
Earnings per share:
Basic	$	0.93		$	0.82		$	1.76		$	1.48
Diluted	$	0.92		$	0.81		$	1.74		$	1.46
Number of shares and share equivalents used to calculate earnings per share:
Basic	52.5			52.8			52.7			52.7
Diluted	53.0			53.4			53.1			53.3
Reconciliation of net income to comprehensive income:
Net income	$	48.8		$	43.1		$	92.6		$	78.0
Foreign currency translation adjustment	1.6			1.0			(0.9		)	(0.1		)
Comprehensive income	$	50.4		$	44.1		$	91.7		$	77.9

 See notes to condensed consolidated financial statements.

4

ASGN INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(In millions)

	Common Stock				Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
	Shares		Par Value
Three Months Ended June 30, 2020:
Balance at March 31, 2020	52.4		$	0.5	$	638.7		$	769.8		$	(9.5	)	$	1,399.5
Vesting of restricted stock units	0.1		—		(1.0		)	—			—			(1.0		)
Stock-based compensation expense	—		—		8.2			—			—			8.2
Foreign currency translation adjustments	—		—		—			—			1.6			1.6
Net income	—		—		—			48.8			—			48.8
Balance at June 30, 2020	52.5		$	0.5	$	645.9		$	818.6		$	(7.9	)	$	1,457.1
Three Months Ended June 30, 2019:
Balance at March 31, 2019	52.8		$	0.5	$	613.2		$	621.0		$	(7.4	)	$	1,227.3
Vesting of restricted stock units	—		—		(1.3		)	—			—			(1.3		)
Stock-based compensation expense	—		—		13.6			—			—			13.6
Foreign currency translation adjustments	—		—		—			—			1.0			1.0
Net income	—		—		—			43.1			—			43.1
Balance at June 30, 2019	52.8		$	0.5	$	625.5		$	664.1		$	(6.4	)	$	1,283.7
	Common Stock				Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total
	Shares		Par Value
Six Months Ended June 30, 2020:
Balance at December 31, 2019	52.9		$	0.5	$	638.0		$	744.7		$	(7.0	)	$	1,376.2
Vesting of restricted stock units	0.2		—		(5.9		)	—			—			(5.9		)
Employee stock purchase plan	0.2		—		5.9			—			—			5.9
Stock-based compensation expense	—		—		17.1			—			—			17.1
Stock repurchases and retirement of shares	(0.8	)	—		(9.2		)	(18.7		)	—			(27.9		)
Foreign currency translation adjustments	—		—		—			—			(0.9		)	(0.9		)
Net income	—		—		—			92.6			—			92.6
Balance at June 30, 2020	52.5		$	0.5	$	645.9		$	818.6		$	(7.9	)	$	1,457.1
Six Months Ended June 30, 2019:
Balance at December 31, 2018	52.5		$	0.5	$	601.8		$	586.1		$	(6.3	)	$	1,182.1
Vesting of restricted stock units	0.2		—		(6.8		)	—			—			(6.8		)
Employee stock purchase plan	0.1		—		6.9			—			—			6.9
Stock-based compensation expense	—		—		23.6			—			—			23.6
Foreign currency translation adjustments	—		—		—			—			(0.1		)	(0.1		)
Net income	—		—		—			78.0			—			78.0
Balance at June 30, 2019	52.8		$	0.5	$	625.5		$	664.1		$	(6.4	)	$	1,283.7

 See notes to condensed consolidated financial statements.

5

ASGN INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In millions)

	Six Months Ended
	June 30,
	2020			2019
Cash Flows from Operating Activities:
Net income	$	92.6		$	78.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43.0			46.6
Stock-based compensation	16.9			23.3
Other	3.5			8.5
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	40.5			1.0
Prepaid expenses and income taxes	13.5			(5.3		)
Accounts payable	(0.2		)	(21.0		)
Accrued payroll and contract professional pay	(0.1		)	0.5
Income taxes payable	16.7			10.0
Operating lease right of use assets	14.4			13.9
Operating lease liabilities	(14.6		)	(13.7		)
Payroll tax deferral and other	24.0			(1.3		)
Net cash provided by operating activities	250.2			140.5
Cash Flows from Investing Activities:
Cash paid for property and equipment	(22.6		)	(15.9		)
Cash paid for acquisitions, net of cash acquired	(85.5		)	(48.5		)
Other	(0.3		)	(0.9		)
Net cash used in investing activities	(108.4		)	(65.3		)
Cash Flows from Financing Activities:
Proceeds from long-term debt	65.5			50.0
Principal payments of long-term debt	(65.5		)	(127.0		)
Debt issuance and amendment costs	(1.3		)	—
Proceeds from option exercises and employee stock purchase plan	5.9			6.9
Payment of employment taxes related to release of restricted stock awards	(5.9		)	(6.8		)
Repurchase of common stock	(27.9		)	—
Net cash used in financing activities	(29.2		)	(76.9		)
Effect of exchange rate changes on cash and cash equivalents	0.1			—
Net Increase (Decrease) in Cash and Cash Equivalents	112.7			(1.7		)
Cash and Cash Equivalents at Beginning of Year	95.2			41.8
Cash and Cash Equivalents at End of Period	$	207.9		$	40.1

Supplemental Disclosure of Cash Flow Information
Cash paid for:
Income taxes	$	5.3	$	21.0
Interest	$	19.7	$	25.4
Non-cash transactions:
Unpaid portion of additions to property and equipment	$	4.2	$	1.1
Operating lease right of use assets obtained in exchange for operating lease liabilities	$	10.4	$	7.6

See notes to condensed consolidated financial statements.

6

ASGN INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. General

Basis of presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the Securities and Exchange Commission (the "SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The December 31, 2019 condensed consolidated balance sheet was derived from audited financial statements. The financial statements include adjustments consisting of normal recurring items, which, in the opinion of management, are necessary for a fair presentation of the financial position of ASGN Incorporated and its subsidiaries ("ASGN" or the "Company") and its results of operations for the interim dates and periods set forth herein. The results for any of the interim periods are not necessarily indicative of the results to be expected for the full year or any other period. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 ("2019 10-K").

COVID-19 pandemic — As a result of the COVID-19 pandemic, the Company experienced a precipitous decline in revenues from its creative marketing and permanent placement divisions in the second quarter of 2020. In the aggregate, these divisions accounted for approximately 8.9 percent of consolidated revenues for the quarter. Due to this decline and the uncertainty related to future performance, the Company performed an assessment of the goodwill and trademarks of these divisions. This assessment included sensitivity analyses and stress testing on certain of our more sensitive inputs to our valuation models, including the weighted-average cost of capital and future expected revenues. Based on this assessment, we concluded that their fair values, more likely than not, exceeded their carrying values. Given the uncertainty of the current economic environment, accounting estimates and assumptions that require management's judgments concerning the effects of the economic downturn and recovery, particularly those relating to the recoverability of intangible assets and goodwill, are being closely monitored.

As allowed by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Company deferred the payment of certain federal payroll taxes. This relief program is applicable for wages paid through December 31, 2020 and requires 50 percent of the amounts deferred to be paid by December 31, 2021 with the remaining amount paid by December 31, 2022. This deferral, which totaled $31.1 million at June 30, 2020, is included in payroll tax deferral and other noncurrent liabilities in the condensed consolidated balance sheet.

2. Accounting Standards Update

On January 1, 2020, the Company adopted Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326). This standard requires a financial asset to be presented at the net amount expected to be collected. The financial assets of the Company in scope of ASU 2016-13 were primarily accounts receivable. The adoption of this standard did not have a significant impact to the Company's consolidated financial statements. The Company estimates an allowance for expected credit losses on accounts receivable that result from the inability of customers to make required payments. These estimates are based on a combination of historical loss statistics, current business conditions and macro-economic trends. In estimating the allowance for expected credit losses, consideration is given to the current aging of receivables and a specific review for potential bad debts. The resulting bad debt expense is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. Receivables are written-off when deemed uncollectible. The Company evaluates the adequacy of its allowance for credit losses on accounts receivable on a regular basis. The accounts receivable allowance was $5.7 million and $5.1 million at June 30, 2020 and December 31, 2019, respectively, and the activity in the six months ended June 30, 2020 was not material.

On January 1, 2020, the Company adopted ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This update provides guidance regarding the capitalization of implementation costs incurred in a cloud computing arrangement that is a service contract. ASU 2018-15 was adopted prospectively and cloud computing implementation costs incurred on January 1, 2020 or later are included in other noncurrent assets in the consolidated balance sheet and are presented within operating cash flows. As of June 30, 2020, $2.0 million of capitalized implementation costs were included in other noncurrent assets, and there was an insignificant amount of amortization expense recorded during the six and three months ended June 30, 2020.

Effective January 1, 2020, the Company adopted ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment. This guidance eliminates Step 2 of the goodwill impairment test and goodwill impairment will now be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04 Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases and other contracts. This guidance is optional and may be elected over time as reference rate reform activities occur. The Company is currently evaluating the impact of this guidance.

7

3. Acquisitions

Blackstone Federal Acquisition

On January 24, 2020, the Company acquired certain specified assets and liabilities that make up the federal division of Blackstone Technology Group (“Blackstone Federal”), for $85.5 million in cash. Blackstone Federal is headquartered in Arlington, Virginia. The acquisition expands the Company's capabilities in agile application development, cloud modernization and systems architecture, cybersecurity, user experience design and branding services to government clients and is part of the ECS Segment. The results of operations of Blackstone Federal are included in the consolidated results of the Company from the date of its acquisition. The Company does not provide pro forma information for the Blackstone Federal acquisition due to its size.

The purchase accounting for the acquisition of Blackstone Federal remains incomplete with respect to the provisional fair value of assets acquired and liabilities assumed, as management continues to gather and evaluate information about circumstances that existed as of the acquisition date. Measurement period adjustments will be recognized prospectively within 12 months from the date of acquisition. Goodwill associated with this acquisition totaled $61.1 million, which is deductible for income tax purposes. Goodwill represents the acquired assembled workforce, potential new customers and future cash flows after the acquisition. Identifiable intangible assets related to this acquisition totaled $22.8 million, with useful lives ranging from one to nine years.

Intersys Acquisition

On October 17, 2019, the Company acquired all of the membership interests of Intersys Consulting, LLC ("Intersys"), headquartered in Austin, Texas, for $67.0 million in cash. The acquisition expands the Company's capabilities in digital innovation and enterprise solutions and it is part of the Apex Segment. The results of operations of Intersys are included in the consolidated results of the Company from the date of its acquisition. The Company does not provide pro forma information for the Intersys acquisition due to its size.

The purchase accounting for the acquisition of Intersys remains incomplete with respect to the provisional fair value of assets acquired and liabilities assumed, as management continues to gather and evaluate information about circumstances that existed as of the acquisition date. Measurement period adjustments will be recognized prospectively within 12 months from the date of acquisition. Goodwill associated with this acquisition totaled $41.4 million, of which $38.7 million is deductible for income tax purposes. Goodwill represents the acquired assembled workforce, potential new customers and future cash flows after the acquisition. Identifiable intangible assets related to this acquisition totaled $23.8 million, with useful lives ranging from three to ten years.

4. Goodwill and Identifiable Intangible Assets

The changes in the carrying amount of goodwill by segment for the six months ended June 30, 2020 and the year ended December 31, 2019 were as follows (in millions):

	Apex			Oxford			ECS		Total
Balance as of December 31, 2018	$	662.1		$	230.8		$	528.2	$	1,421.1
DHA acquisition	—			—			24.7		24.7
Intersys acquisition	41.4			—			—		41.4
Translation adjustment	—			(0.3		)	—		(0.3		)
Balance as of December 31, 2019	703.5			230.5			552.9		1,486.9
Blackstone Federal acquisition	—			—			61.1		61.1
Translation adjustment	(0.5		)	(0.2		)	—		(0.7		)
Balance as of June 30, 2020	$	703.0		$	230.3		$	614.0	$	1,547.3

8

Acquired intangible assets consisted of the following (in millions):

		June 30, 2020						December 31, 2019
	Estimated Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Subject to amortization:
Customer and contractual relationships	2 - 12.75	$	403.6	$	200.4	$	203.2	$	384.9	$	179.9	$	205.0
Contractor relationships	2 - 5	71.1		70.7		0.4		71.1		70.6		0.5
Backlog	1 - 2.75	28.3		25.9		2.4		25.0		23.9		1.1
Non-compete agreements	2 - 7	25.6		15.9		9.7		24.8		13.8		11.0
In-use software	6	18.9		18.9		—		18.9		18.9		—
		547.5		331.8		215.7		524.7		307.1		217.6
Not subject to amortization:
Trademarks		258.9		—		258.9		258.9		—		258.9
Total		$	806.4	$	331.8	$	474.6	$	783.6	$	307.1	$	476.5

Estimated future amortization expense is as follows (in millions): 

Remainder of 2020	$	25.1
2021	41.0
2022	32.7
2023	28.0
2024	21.2
Thereafter	67.7
	$	215.7

5. Long-Term Debt

Long-term debt consisted of the following (in millions):

	June 30, 2020			December 31, 2019
Senior Secured Credit Facility:
$250 million revolving credit facility, due 2024	$	—		$	—
Term B loan facility, due 2025	490.8			490.8
Unsecured Senior Notes, due 2028	550.0			550.0
	1,040.8			1,040.8
Unamortized deferred loan costs	(7.9		)	(8.5		)
Total Long-Term Debt	$	1,032.9		$	1,032.3

Senior Secured Credit Facility

The senior secured credit facility ("Credit Facility") consists of a term B loan and a senior secured revolving credit facility with a maximum borrowing capacity of $250.0 million (the "Revolver"). Borrowings under the term B loan bear interest at LIBOR plus 1.75 percent, or the bank’s base rate plus 0.75 percent. Borrowings under the Revolver bear interest at LIBOR plus 1.25 percent to 2.25 percent, or the bank’s base rate plus 0.25 to 1.25 percent, depending on leverage levels. At June 30, 2020, the Company had no outstanding borrowings under the Revolver and had $3.9 million in undrawn stand-by letters of credit to secure certain obligations. A commitment fee of 0.20 to 0.35 percent is payable on the undrawn portion of the Revolver. There are no required minimum payments on the Credit Facility and it is secured by substantially all of the Company's assets and includes various restrictive covenants. The Company is required to make mandatory prepayments on its term B loan from excess cash flow and with the proceeds of asset sales, debt issuances and specified other events, subject to certain exceptions. The Revolver is limited to a maximum ratio of senior secured debt to trailing 12-months of lender defined consolidated EBITDA. At June 30, 2020, the Company was in compliance with its debt covenants.

9

Unsecured Senior Notes

The Company has $550.0 million of unsecured senior notes due in 2028 (the "Senior Notes"). The Senior Notes bear interest at 4.625 percent, which is payable in arrears on May 15 and November 15 of each year. The Senior Notes are unsecured obligations and are subordinate to the Company's Credit Facility to the extent of the collateral securing such facility. The Senior Notes also contain certain customary limitations including, among other terms and conditions, the Company's ability to incur additional indebtedness, engage in mergers and acquisitions, transfer or sell assets and make certain distributions.

6. Commitments and Contingencies

The Company’s deferred compensation plan liability was $12.2 million and $11.8 million at June 30, 2020 and December 31, 2019, respectively, and was primarily included in other long-term liabilities. The employees' deferred compensation is deposited in a rabbi trust (see Note 12. Fair Value Measurements).

The Company is involved in various legal proceedings, claims and litigation arising in the ordinary course of business. The Company does not believe that the disposition of matters that are pending or asserted will have a material effect on its condensed consolidated financial statements.

7. Leases

The Company has operating leases for corporate offices, branch offices and data centers. Two of these properties were owned indirectly by certain board members and an executive of the Company. Related-party rent expense for these properties was $0.2 million and $0.4 million for the three and six months ended June 30, 2020, respectively; and $0.3 million and $0.6 million for the three and six months ended June 30, 2019, respectively. In June 2020, these buildings were sold to an unrelated third party.

8. Revenues

The Company’s contracts have termination for convenience provisions and do not have substantive termination penalties; therefore, the contract duration for accounting purposes may be less than the stated terms. For accounting purposes, the Company's contracts with customers are considered to be of a short-term nature (one year or less). The Company does not disclose the value of remaining performance obligations for short-term contracts.

The Company has contract liabilities of $12.1 million and $8.4 million at June 30, 2020 and December 31, 2019, respectively, for payments received in advance of providing services under certain contracts. Contract liabilities are included in other current liabilities on the condensed consolidated balance sheets and are generally recognized as revenues within three months from the balance sheet date.

9. Income Taxes

For interim reporting periods, the Company’s provision for income taxes is calculated using its annualized estimated effective tax rate for the year. This rate is based on its estimated full year income and the related income tax expense for each jurisdiction in which the Company operates. The effective tax rate can be affected by changes in the geographical mix, permanent differences and the estimate of full year pretax accounting income. This rate is adjusted for the effects of discrete items occurring in the period.

10. Earnings per Share 

The following is a reconciliation of the number of shares and share equivalents used to calculate basic and diluted earnings per share (in millions, except per share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net income	$	48.8	$	43.1	$	92.6	$	78.0
Weighted-average number of common shares outstanding - basic	52.5		52.8		52.7		52.7
Dilutive effect of share equivalents	0.5		0.6		0.4		0.6
Number of common shares and share equivalents outstanding - diluted	53.0		53.4		53.1		53.3
Basic earnings per share	$0.93		$0.82		$1.76		$1.48
Diluted earnings per share	$0.92		$0.81		$1.74		$1.46
Anti-dilutive share equivalents (1)	0.5		0.2		0.3		0.3

_____

⁽¹⁾ Anti-dilutive stock-based awards that were excluded from the calculation of the number of shares used to compute diluted earnings per share because they were anti-dilutive when applying the treasury-stock method.

10

11. Segment Reporting 

ASGN provides IT and professional staffing services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors. ASGN operates through its Apex, Oxford and ECS segments. The Apex Segment provides technology, digital, creative, scientific, engineering staffing and consulting services to Fortune 1000 and mid-market clients across the United States and Canada. The Oxford Segment provides hard-to-find technology, digital, engineering and life sciences staffing and consulting services in select skill and geographic markets in the United States and Europe. The Company’s commercial business is comprised of the Apex and Oxford segments. The ECS Segment, the Company’s federal government IT solutions business, delivers advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, science and engineering to U.S. defense, intelligence and federal civilian agencies.

The Company has three major revenue streams: (i) contract, (ii) permanent placement and (iii) federal government IT solutions. The Company’s contract revenues are comprised of assignment revenues and consulting revenues. Consulting services consist of deliverables-based projects including support service centers and managed projects such as software development.

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 internal financial reporting of the segments used for corporate management purposes.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Apex
Revenues	$	576.9	$	628.5	$	1,206.0	$	1,234.6
Gross profit	170.6		187.8		355.1		363.2
Operating income	66.0		72.9		133.1		133.9
Amortization	5.5		5.5		10.8		11.5
Oxford
Revenues	$	120.2	$	153.2	$	268.9	$	302.8
Gross profit	46.4		62.5		105.7		121.4
Operating income	7.8		11.0		18.9		22.7
Amortization	0.1		1.0		0.3		2.0
ECS
Revenues	$	239.7	$	190.6	$	452.4	$	358.6
Gross profit	43.8		34.9		80.9		64.5
Operating income	16.2		10.9		27.5		17.8
Amortization	7.0		6.6		13.6		13.4
Consolidated
Revenues	$	936.8	$	972.3	$	1,927.3	$	1,896.0
Gross profit	260.8		285.2		541.7		549.1
Operating income(1)	76.0		73.3		146.9		136.0
Amortization	12.6		13.1		24.7		26.9

____________

⁽¹⁾  Consolidated operating income includes corporate operating expenses, which are not allocated to the segments, consisting 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.

11

The following table presents segment revenues by type (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Apex
Contract —
Assignment	$	483.8	$	533.5	$	1,010.1	$	1,053.3
Consulting	85.3		79.5		174.9		151.9
	569.1		613.0		1,185.0		1,205.2
Permanent placement	7.8		15.5		21.0		29.4
	576.9		628.5		1,206.0		1,234.6
Oxford
Contract —
Assignment	$	96.2	$	117.1	$	211.1	$	234.7
Consulting	11.1		14.3		24.3		26.1
	107.3		131.4		235.4		260.8
Permanent placement	12.9		21.8		33.5		42.0
	120.2		153.2		268.9		302.8
ECS
Firm-fixed-price	$	63.5	$	46.1	$	120.5	$	89.4
Time and materials	81.4		70.8		153.8		132.2
Cost reimbursable	94.8		73.7		178.1		137.0
	239.7		190.6		452.4		358.6
Consolidated	$	936.8	$	972.3	$	1,927.3	$	1,896.0

The Company operates internationally, with operations mainly in the United States. The following table presents revenues within and outside of the United States (in millions):

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2020		%		2019		%		2020		%		2019		%
Revenues:
Domestic	$	897.9	95.8	%	$	929.8	95.6	%	$	1,843.3	95.6	%	$	1,810.9	95.5	%
Foreign	38.9		4.2	%	42.5		4.4	%	84.0		4.4	%	85.1		4.5	%
	$	936.8	100.0	%	$	972.3	100.0	%	$	1,927.3	100.0	%	$	1,896.0	100.0	%

The following table presents the ECS segment (federal government IT solutions) revenues by customer type (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Department of Defense and Intelligence Agencies	$	127.1	$	107.6	$	242.0	$	203.6
Federal Civilian	96.0		71.3		180.6		131.5
Other	16.6		11.7		29.8		23.5
	$	239.7	$	190.6	$	452.4	$	358.6

12. Fair Value Measurements

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued payroll and contract professional pay approximate their fair value based on their short-term nature. The carrying amount of long-term debt recorded in the Company’s condensed consolidated balance sheet at June 30, 2020 was $1.0 billion and approximated its fair value (see Note 5. Long-Term Debt), which was determined using quoted prices in active markets for identical liabilities (Level 1 inputs).

12

The Company has a deferred compensation plan and the employees' deferred compensation is deposited in a rabbi trust. This rabbi trust had investments, primarily mutual funds, of $12.2 million and $11.8 million at June 30, 2020 and December 31, 2019, respectively, which are measured at fair value using the net asset value per share. These assets were primarily included in other non-current assets.

Certain assets, such as goodwill and trademarks, are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as, when there is evidence of impairment (see Note 1. General for discussion of our assessment performed in the current quarter). The fair value assigned to identifiable intangible assets is primarily determined using a discounted cash flow method (a non-recurring fair value measurement based on Level 3 inputs). All assets and liabilities of acquired companies are recorded at their estimated fair values at the dates of acquisition.

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information in this discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such statements are based upon current expectations, as well as management's beliefs and assumptions and involve a high degree of risk and uncertainty. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Statements that include the words “believes,” “anticipates,” “plans,” “expects,” “intends,” and similar expressions that convey uncertainty of future events or outcomes are forward-looking statements. Forward-looking statements include statements regarding our anticipated financial and operating performance for future periods. Our actual results could differ materially from those discussed or suggested in the forward-looking statements herein. Factors that could cause or contribute to such differences include, but are not limited to, the following: (1) the impact of the COVID-19 global pandemic on our competitive position and demand for our services; (2) the availability of qualified contract professionals and our ability to attract, train and retain them; (3) our ability to remain competitive in obtaining and retaining clients; (4) management of our growth; (5) continued performance and integration of our enterprise-wide information systems; (6) our ability to manage our litigation matters; (7) the successful integration of our acquired subsidiaries; (8) maintenance of our ECS Segment contract backlog; and (9) the factors described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 10-K”) and this form 10-Q under the section titled “Risk Factors.” Other factors also may contribute to the differences between our forward-looking statements and our actual results. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. All forward-looking statements in this document are based on information available to us as of the filing date of this Quarterly Report on Form 10-Q and we assume no obligation to update any forward-looking statements or the reasons why our actual results may differ.

OVERVIEW

We provide IT and professional staffing services in the technology, digital, creative, engineering and life sciences fields across commercial and federal government sectors. We operate through our Apex, Oxford and ECS segments. The Apex Segment provides technology, digital, creative, scientific, engineering staffing and consulting services to Fortune 1000 and mid-market clients across the United States and Canada. The Oxford Segment provides hard-to-find technology, digital, engineering and life sciences staffing and consulting services in select skill and geographic markets in the United States and Europe. Our commercial business is comprised of the Apex and Oxford segments. The ECS Segment provides IT solutions to the federal government, including advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization.

We have three major revenue streams: (i) contract, (ii) permanent placement and (iii) federal government IT solutions. Our contract revenues are comprised of assignment and consulting revenues. Consulting services consist of deliverables-based projects including support service centers and managed projects such as software development.

The Impact of COVID-19 on our Results and Operations

In March 2020, the World Health Organization declared COVID-19 a global pandemic. In mid-March, we began to experience week-to-week declines in revenues from our commercial business, which continued through the first half of the second quarter. In the second half of the second quarter, week-to-week revenues flattened and remained stable through the first three weeks of July. Over that same period, we saw double-digit year-over-year revenue growth in federal government IT solutions business.

Consolidated revenues for the second quarter of 2020 were down 3.6 percent year over year. Revenues from our two largest divisions, Apex Systems and ECS, combined accounted for 79.9 percent of consolidated revenues and were up 4.4 percent year over year. Apex Systems, our largest division with 54.3 percent of consolidated revenues, was down 3.4 percent year over year. Our other divisions, which include creative marketing and permanent placement, were down 26.2 percent year over year and accounted for 20.1 percent of consolidated revenues. ECS, our second largest division with 25.6 percent of consolidated revenues, was up 25.8 percent year over year.

For the third quarter of 2020, we expect ECS to continue to grow by double digits year over year and Apex Systems to outperform the commercial IT services market. We also expect revenues from our creative marketing and permanent placement divisions to continue to be down double-digits year over year until we see a return to economic growth. While we believe these are reasonable expectations, any worsening of the COVID-19 pandemic could adversely affect our results for the quarter and remainder of the year.

13

CONSOLIDATED RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2020 COMPARED WITH THE THREE MONTHS ENDED JUNE 30, 2019

Revenues

Revenues for the quarter were $936.8 million, a decrease of 3.6 percent, from the second quarter of 2019. The table below shows our commercial and federal government IT solutions revenues, as well as revenues by segment for the three months ended June 30, 2020 and 2019 (in millions):

							% of Consolidated Revenues
	2020		2019		Chg.		2020		2019		Chg.
Revenues by Business
Commercial
Contract —
Assignment	$	580.0	$	650.6	(10.8	)%	61.9	%	67.0	%	(5.1	)%
Consulting	96.4		93.8		2.8	%	10.3	%	9.6	%	0.7	%
	676.4		744.4		(9.1	)%	72.2	%	76.6	%	(4.4	)%
Permanent placement	20.7		37.3		(44.8	)%	2.2	%	3.8	%	(1.6	)%
Total Commercial	697.1		781.7		(10.8	)%	74.4	%	80.4	%	(6.0	)%
Federal Government IT Solutions	239.7		190.6		25.8	%	25.6	%	19.6	%	6.0	%
Consolidated	$	936.8	$	972.3	(3.6	)%	100.0	%	100.0	%
Revenues by Segment
Apex	$	576.9	$	628.5	(8.2	)%	61.6	%	64.6	%	(3.0	)%
Oxford	120.2		153.2		(21.5	)%	12.8	%	15.8	%	(3.0	)%
ECS	239.7		190.6		25.8	%	25.6	%	19.6	%	6.0	%
Consolidated	$	936.8	$	972.3	(3.6	)%	100.0	%	100.0	%

Commercial Business — Revenues from our commercial business were $697.1 million (74.4 percent of consolidated revenues) for the quarter, down $84.6 million or 10.8 percent year over year due to the COVID-19 pandemic. Contract revenues declined week to week through the first half of the quarter and flattened in the second half. Permanent placement revenues were down 44.8 percent year over year and accounted for 2.2 percent of consolidated revenues. Over half of the year-over-year decline in revenues was from our creative marketing and permanent placement divisions, which accounted for 8.9 percent of consolidated revenues. The remaining decline in revenues was from our predominantly IT services divisions, which were down 6.2 percent. These divisions accounted for 65.5 percent of consolidated revenues.

From an industry perspective, we view our contract revenues in five industry verticals (financial services, consumer and industrials; healthcare; technology, media and telecom; and business and government services). Four of the five verticals showed double-digit declines, but financial services, our largest vertical, was up by 9.1 percent.

Revenues from the Apex Segment were $576.9 million (61.6 percent of consolidated revenues), down 8.2 percent year over year. Revenues from the largest division of the segment, Apex Systems, accounted for 54.3 percent of consolidated revenues and were down 3.4 percent year over year. Revenues from the segment's creative marketing division were down 33.2 percent year over year and accounted for 7.3 percent of consolidated revenues.

Revenues from the Oxford Segment were $120.2 million (12.8 percent of consolidated revenues), down 21.5 percent year over year. The decline was primarily due to Oxford's permanent placement division, which was down 41.0 percent year over year, and accounted for approximately 59.5 percent of consolidated permanent placement revenues.

Federal Government IT Solutions Business — Revenues from our federal government IT solutions business were $239.7 million (25.6 percent of consolidated revenues), up 25.8 percent year over year. This increase resulted from the growth in artificial intelligence, machine learning and cloud services and solutions, new contract awards and the contribution from Blackstone Federal that was acquired in January 2020.

Gross Profit and Gross Margin

The table below shows gross profit and gross margin by type and segment for the three months ended June 30, 2020 and 2019 (in millions):

	Gross Profit						Gross Margin
	2020		2019		Chg.		2020		2019		Chg.
Commercial	$	217.0	$	250.3	(13.3	)%	31.1	%	32.0	%	(0.9	)%
Federal Government IT Solutions	43.8		34.9		25.5	%	18.3	%	18.3	%	—	%
Consolidated	$	260.8	$	285.2	(8.6	)%	27.8	%	29.3	%	(1.5	)%
Contract:(1)
Commercial	$	196.3	$	213.0	(7.8	)%	29.0	%	28.6	%	0.4	%
Federal Government IT Solutions	43.8		34.9		25.5	%	18.3	%	18.3	%	—	%
Total	$	240.1	$	247.9	(3.1	)%	26.2	%	26.5	%	(0.3	)%
By Segment
Apex	$	170.6	$	187.8	(9.2	)%	29.6	%	29.9	%	(0.3	)%
Oxford	46.4		62.5		(25.8	)%	38.6	%	40.8	%	(2.2	)%
ECS	43.8		34.9		25.5	%	18.3	%	18.3	%	—	%
Consolidated	$	260.8	$	285.2	(8.6	)%	27.8	%	29.3	%	(1.5	)%

____________

⁽¹⁾  Contract gross profit and margin excludes permanent placement.

Gross profit is comprised of revenues less costs of services, which consist primarily of compensation for our contract professionals, allowable materials and reimbursable out-of-pocket expenses. Gross profit was $260.8 million, down 8.6 percent year over year due to the overall decline in revenues. Gross margin was 27.8 percent, a compression of 150 basis points year over year primarily due to the precipitous year-over-year decline in permanent placement revenues, which are essentially 100 percent gross profit. Contract gross margin was 26.2 percent, down 30 basis points year over year, related to the higher mix of federal government IT solutions revenues, which have lower margins than our commercial business. The EBITDA margin for the federal government IT solutions business is slightly lower than our consolidated margin.

Gross profit for the Apex Segment was down 9.2 percent on an 8.2 percent decrease in revenues. Gross margin for the segment was 29.6 percent, down 30 basis points year over year related to the decline in permanent placement revenues. The segment's contract gross margin, which excludes permanent placement, was 28.6 percent, up 50 basis points year over year, reflecting lower travel and healthcare expenses and a higher bill/pay spread. Gross profit for the Oxford Segment was down 25.8 percent on a 21.5 percent decline in revenues. Gross margin for the segment was 38.6 percent, a decrease of 220 basis points year over year mainly due to the decrease in permanent placement revenues, partially offset by a 30 basis point expansion in contract gross margin. Gross profit for the ECS Segment was up 25.5 percent on revenue growth of 25.8 percent. Gross margin for the segment held steady at 18.3 percent.

Selling, General and Administrative Expenses

Selling, general and administrative ("SG&A") expenses consist primarily of compensation expense for our field operations and corporate staff, rent, information systems, marketing, telecommunications, public company expenses and other general and administrative expenses. SG&A expenses for the second quarter were $172.2 million (18.4 percent of revenues), a year-over-year reduction of $26.6 million and a 200 basis point reduction in SG&A expense as a percent of revenues. This improvement in SG&A expenses was largely due to lower incentive compensation (mainly for bonuses and commissions tied to growth in revenues or Adjusted EBITDA), travel expenses, healthcare and stock-based compensation expenses. SG&A expenses in the prior-year period included a $3.3 million charge related to the write-off of certain foreign trademarks.

Amortization of Intangible Assets

Amortization of intangible assets was $12.6 million, down from $13.1 million in the second quarter of 2019. The lower expense in the current quarter was due to the accelerated amortization method of certain acquired intangibles, which have higher amortization rates at the beginning of their useful lives.

Interest Expense

Interest expense decreased $4.3 million or 30.7 percent to $9.7 million, compared with $14.0 million in the second quarter of 2019. This decrease was primarily due to a decrease in LIBOR and a 25 basis point reduction in the spread on our senior secured credit facility resulting from our capital restructuring in the fourth quarter of 2019. Interest expense for the quarter was comprised of $6.3 million of interest on the 4.625 percent senior notes, $3.0 million of interest on the senior secured credit facility and $0.4 million of amortization of deferred loan costs. The weighted-average interest rate in the current quarter was 3.5 percent, down from 4.5 percent in the second quarter of 2019. The weighted-average borrowings outstanding during the period were $1.0 billion and $1.1 billion in the second quarter of 2020 and 2019, respectively.

Provision for Income Taxes

The provision for income taxes was $17.5 million for the current quarter of 2020, up from $16.2 million in the second quarter of last year. The effective tax rate for the current quarter was 26.3 percent, compared with 27.3 percent in the second quarter of last year.

Net Income

Net income increased $5.7 million or 13.3 percent to $48.8 million for the current quarter from $43.1 million in the same period of 2019. The increase primarily related to the decrease in SG&A expenses and interest expense.

CONSOLIDATED RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2020 COMPARED WITH THE SIX MONTHS ENDED JUNE 30, 2019

Revenues

Revenues for the first six months of 2020 were $1.93 billion, an increase of 1.7 percent year over year. The table below shows our commercial and federal government IT solutions revenues, as well as revenues by segment for the six months ended June 30, 2020 and 2019 (in millions):

							% Consolidated Revenues
	2020		2019		Chg.		2020		2019		Chg.
Revenues by Business
Commercial
Contract —
Assignment	$	1,221.2	$	1,288.0	(5.2	)%	63.4	%	67.9	%	(4.5	)%
Consulting	199.2		178.0		11.9	%	10.3	%	9.4	%	0.9	%
	1,420.4		1,466.0		(3.1	)%	73.7	%	77.3	%	(3.6	)%
Permanent placement	54.5		71.4		(23.7	)%	2.8	%	3.8	%	(1.0	)%
Total Commercial	1,474.9		1,537.4		(4.1	)%	76.5	%	81.1	%	(4.6	)%
Federal Government IT Solutions	452.4		358.6		26.2	%	23.5	%	18.9	%	4.6	%
Consolidated	$	1,927.3	$	1,896.0	1.7	%	100.0	%	100.0	%
Revenues by Segment
Apex	$	1,206.0	$	1,234.6	(2.3	)%	62.5	%	65.1	%	(2.6	)%
Oxford	268.9		302.8		(11.2	)%	14.0	%	16.0	%	(2.0	)%
ECS	452.4		358.6		26.2	%	23.5	%	18.9	%	4.6	%
Consolidated	$	1,927.3	$	1,896.0	1.7	%	100.0	%	100.0	%

Commercial Business — Revenues from our commercial business were $1.5 billion (76.5 percent of consolidated revenues) for the first half of 2020, down $62.5 million or 4.1 percent year over year due to the COVID-19 pandemic. In mid-March, we began to experience week-to-week declines in revenues from our commercial business, which continued through the first half of the second quarter. In the second half of the second quarter, week-to-week revenues flattened. Contract revenues were down 3.1 percent year over year and accounted for 73.7 percent of consolidated revenues. Permanent placement revenues were down 23.7 percent year over year and accounted for 2.8 percent of consolidated revenues. Most of the revenue decline was from our creative marketing and permanent placement divisions, which accounted for 10.7 percent of consolidated revenues. The remaining decline in revenues was from our predominantly IT services divisions, which were down 1.5 percent. These divisions accounted for 65.8 percent of consolidated revenues.

From an industry perspective, we view our contract revenues in five industry verticals (financial services, consumer and industrials; healthcare; technology, media and telecom; and business and government services). In the first half of 2020, we saw declines across most of the industry verticals the commercial businesses we serve, with the exception of growth in our largest vertical, financial services.

Revenues from our Apex Segment were $1.2 billion (62.5 percent of our consolidated revenues), down 2.3 percent year over year. Revenues from the largest division of the segment, Apex Systems, accounted for 53.9 percent of consolidated revenues and were consistent with the prior-year period. Revenues from the segment's creative marketing division were down 16.4 percent year over year and accounted for 8.7 percent of consolidated revenues.

Revenues from our Oxford Segment were $268.9 million (14.0 percent of our consolidated revenues), down 11.2 percent year over year. The decline was primarily due to Oxford's permanent placement division, which was down 19.6 percent year over year, and accounted for approximately 59.3 percent of consolidated permanent placement revenues.

Federal Government IT Solutions Business — Revenues from our federal government IT solutions business were $452.4 million (23.5 percent of consolidated revenues), up 26.2 percent year over year. This increase resulted from the growth in artificial intelligence, machine learning and cloud services and solutions, new contract awards and the contribution from Blackstone Federal that was acquired in January 2020.

Gross Profit and Gross Margin

The table below shows gross profit and gross margin by type and segment for the six months ended June 30, 2020 and 2019 (in millions):

	Gross Profit						Gross Margin
	2020		2019		Chg.		2020		2019		Chg.
Commercial	$	460.8	$	484.6	(4.9	)%	31.2	%	31.5	%	(0.3	)%
Federal Government IT Solutions	80.9		64.5		25.4	%	17.9	%	18.0	%	(0.1	)%
Consolidated	$	541.7	$	549.1	(1.3	)%	28.1	%	29.0	%	(0.9	)%
Contract:(1)
Commercial	$	406.3	$	413.2	(1.7	)%	28.6	%	28.2	%	0.4	%
Federal Government IT Solutions	80.9		64.5		25.4	%	17.9	%	18.0	%	(0.1	)%
Total	$	487.2	$	477.7	2.0	%	26.0	%	26.2	%	(0.2	)%
By Segment
Apex	$	355.1	$	363.2	(2.2	)%	29.4	%	29.4	%	—	%
Oxford	105.7		121.4		(12.9	)%	39.3	%	40.1	%	(0.8	)%
ECS	80.9		64.5		25.4	%	17.9	%	18.0	%	(0.1	)%
Consolidated	$	541.7	$	549.1	(1.3	)%	28.1	%	29.0	%	(0.9	)%

____________

⁽¹⁾  Contract gross profit and margin excludes permanent placement.

Gross profit was $541.7 million, down 1.3 percent year over year due to the overall decline in revenues. Gross margin was 28.1 percent, a compression of 90 basis points year over year primarily due to the decline in permanent placement revenues, which are essentially 100 percent gross profit. Contract gross margin was 26.0 percent, down 20 basis points year over year, related to the higher mix of federal government IT solutions revenues, which have lower margins than our commercial business. The EBITDA margin for the federal government IT solutions business is slightly lower than our consolidated margin.

Gross profit for the Apex Segment was down 2.2 percent on a 2.3 percent decrease in revenues. Gross margins for the segment held steady at 29.4 percent, despite an $8.4 million decrease in permanent placement revenues. The segment's contract gross margin was 28.2 percent, up 50 basis points year over year, reflecting lower travel and healthcare expenses and a higher bill/pay spread. Gross profit for the Oxford Segment was down 12.9 percent on an 11.2 percent decline in revenues. Gross margin for the segment was 39.3 percent, a decrease of 80 basis points year over year due to a decrease in permanent placement revenues, partially offset by a 30 basis point expansion in contract gross margin. Gross profit for the ECS Segment was up 25.4 percent on revenue growth of 26.2 percent. Gross margin for the segment was 17.9 percent, nearly flat compared with the prior year.

Selling, General and Administrative Expenses

SG&A expenses for the first half of 2020 were $370.1 million (19.2 percent of revenues), a year-over-year reduction of $16.1 million and a 120 basis point reduction in SG&A expense as a percent of revenues. This improvement in SG&A expenses was largely due to lower incentive compensation (mainly for bonuses and commissions tied to the growth in revenues and Adjusted EBITDA), travel expenses; healthcare and stock-based compensation expenses. SG&A expenses in the first half of 2019 also included a $3.3 million charge related to the write-off of certain foreign trademarks.

Amortization of Intangible Assets

Amortization of intangible assets was $24.7 million, down from $26.9 million in the same period of 2019. The lower expense in the current year was due to the accelerated amortization method for certain acquired intangibles, which have higher amortization rates at the beginning of their useful life.

Interest Expense

Interest expense was $21.1 million, compared with $28.5 million in the same period of 2019. This decrease was primarily due to a decrease in LIBOR and a 25 basis point reduction in the spread on our senior secured credit facility resulting from our capital restructuring in the fourth quarter of 2019. Interest expense for the year was comprised of $12.7 million of interest on the senior notes, $7.6 million of interest on the 4.625 percent senior secured credit facility and $0.8 million of amortization of deferred loan costs. The weighted-average borrowings outstanding were approximately $1.1 billion for the first half of both 2020 and 2019; and the weighted-average interest rate in the first half of 2020 was 3.8 percent, down from 4.5 percent in the same period of 2019.

Provision for Income Taxes

The provision for income taxes was $33.2 million in the first half of 2020, compared with $29.5 million in the same period of 2019. The effective tax rate in the first half of 2020 was 26.4 percent, compared with 27.5 percent in the same period of 2019.

Net Income

Net income increased $14.6 million or 18.7 percent to $92.6 million in the first half of 2020 from $78.0 million in the same period of 2019. The increase primarily related to the decrease in SG&A expenses and interest expense.

ECS Segment Contract Backlog

Contract backlog is a useful measure of potential future revenues for our ECS Segment. Contract backlog represents the estimated amount of future revenues to be recognized under awarded contracts including task orders and options. Contract backlog does not include potential value from contract awards that have been protested by competitors until the protest is resolved in our favor. Contract backlog does not include any estimate of future work expected under indefinite delivery, indefinite quantity contracts or U.S. General Services Administration schedules. Contract backlog is segregated into funded contract backlog and negotiated unfunded contract backlog, which together make up total contract backlog.

Funded contract backlog for contracts with U.S. government agencies primarily represents contracts for which funding has been formally awarded less revenues previously recognized on these contracts and does not include the unfunded portion of contracts where funding is incrementally awarded or authorized by the U.S. government even though the contract may call for performance over a number of years. Funded contract backlog for contracts with non-government agencies represents the estimated value of contracts, which may cover multiple future years, less revenues previously recognized on these contracts.

Negotiated unfunded contract backlog represents the estimated future revenues to be earned from negotiated contract awards for which funding has not yet been awarded or authorized and from unexercised priced contract options.

Contract backlog estimates are subject to change and may be affected by the execution of new contracts, the extension or early termination of existing contracts, the non-renewal or completion of current contracts and adjustments to estimates for previously included contracts. Changes in the funded contract backlog are also affected by the funding cycles of the government.

(in millions)	June 30, 2020		December 31, 2019
Funded Contract Backlog	$	435.3	$	488.4
Negotiated Unfunded Contract Backlog	2,178.0		2,082.7
Contract Backlog	$	2,613.3	$	2,571.1

The book-to-bill ratio for our ECS segment was 0.7 to 1 for the second quarter of 2020. On a trailing-twelve-months' basis, the book-to-bill ratio was and 1.7 to 1. The book-to-bill ratio was calculated as the sum of the change in total contract backlog during the period plus revenues for the period, divided by revenues for the period. The contract backlog coverage ratio (backlog at June 30, 2020 divided by trailing-twelve-months of ECS Segment's revenues) was 2.9 times.

Liquidity and Capital Resources

Our working capital at June 30, 2020 was $497.3 million, and our cash and cash equivalents were $207.9 million, of which $23.2 million was held in foreign countries and not available to fund domestic operations unless repatriated. At June 30, 2020, we had full availability under our $250.0 million revolving credit facility.

Our cash flows from operating activities have been our primary source of liquidity and have been sufficient to fund our working capital and capital expenditure needs. While we are unable to predict the full impact of COVID-19 on our operating cash flows, we expect to benefit from cash provided by a reduction in our working capital requirements and the deferral of federal payroll taxes as provided by the CARES Act. We also expect to continue to benefit from capital structure enhancements made in the fourth quarter of 2019 and our highly variable cost structure, both of which are discussed below.

In the fourth quarter of 2019, we improved our capital structure by issuing $550.0 million in unsecured senior notes due 2028 and amending our senior secured credit facility due 2025 to fix the interest rate on half of our indebtedness, lengthen our debt tenor by 2.3 years and increase our borrowing capacity under our revolving credit facility by $50.0 million to $250.0 million. There are no principal payments due on any of these borrowings until they reach maturity, the earliest of which is in April 2025.

Our highly variable cost structure provides further stability to our business. As assignment revenues decline, we see a commensurate decline in our costs of services. Our cash SG&A expenses are also variable, with one-third of these expenses comprised of incentive-based compensation tied directly to gross profit or other profitability metrics. As our revenues decline, we expect a similar reduction in working capital requirements. We also expect our future cash flow generation will benefit from the deferral of the employer-portion of the federal payroll tax as allowed by the recently enacted CARES Act.

14

Based on the factors described above, we believe that our expected operating cash flows and availability under our revolving credit facility will be sufficient to meet our obligations, working capital requirements and capital expenditures for the next 12 months.

Net cash provided by operating activities was $250.2 million for the first half of 2020, compared with $140.5 million in the same period of 2019. Net cash provided by operating activities before changes in operating assets and liabilities of $156.0 million was consistent with the same period of 2019. Changes in operating assets and liabilities resulted in net cash generation of $94.2 million for the first half of 2020, compared with net cash usage of $15.9 million in the same period of 2019. These year-over-year changes primarily related to the decrease in accounts receivable on lower revenues due to COVID-19, deferral of $31.1 million in federal payroll taxes as provided by the CARES Act and timing of income tax payments.

Net cash used in investing activities was $108.4 million for the first half of 2020, compared with $65.3 million for the same period of 2019. Net cash used in investing activities for the first half of 2020 was primarily comprised of $85.5 million for the acquisition of Blackstone Federal in the first quarter of 2020 and capital expenditures of $22.6 million, which included a major front and back office systems upgrade project. This compares with cash used in investing activities in the same period of 2019 comprised of $48.5 million for the acquisition of DHA and $15.9 million for capital expenditures.

Net cash used in financing activities was $29.2 million for the first half of 2020, compared with $76.9 million in the same period of 2019. Net cash used in financing activities for the first half of 2020 consisted primarily of $27.9 million used for repurchases of our common stock. Net cash provided by financing activities in the same period of 2019 consisted primarily of $77.0 million in net payments of long-term debt.

Senior Secured Credit Facility

The senior secured credit facility ("Credit Facility") consists of a term B loan and a senior secured revolving credit facility with a maximum borrowing capacity of $250.0 million (the "Revolver"). At June 30, 2020, the Company had no outstanding borrowings under the Revolver and had $3.9 million in undrawn stand-by letters of credit to secure certain obligations. Borrowings under the term B loan bear interest at LIBOR plus 1.75 percent, or the bank’s base rate plus 0.75 percent. Borrowings under the Revolver bear interest at LIBOR plus 1.25 to 2.25 percent, or the bank’s base rate plus 0.25 to 1.25 percent, depending on leverage levels. A commitment fee of 0.20 to 0.35 percent is payable on the undrawn portion of the Revolver. There are no required minimum payments on the Credit Facility and it is secured by substantially all of the Company's assets and includes various restrictive covenants.

Unsecured Senior Notes

The Company has $550.0 million of unsecured senior notes due in 2028 (the "Senior Notes"). The Senior Notes bear interest at 4.625 percent, which is payable in arrears on May 15 and November 15 of each year. The Senior Notes are unsecured obligations and are subordinate to the Company's Credit Facility to the extent of the collateral securing such facility. The Senior Notes also contain certain customary limitations including, among other terms and conditions, the Company's ability to incur additional indebtedness, engage in mergers and acquisitions, transfer or sell assets and make certain distributions.

Recent Accounting Pronouncements

See “Note 2 - Accounting Standards Update” in the notes to the condensed consolidated financial statements in Part I, Item 1.

Critical Accounting Policies

There have been no significant changes to our critical accounting policies and estimates during the six months ended June 30, 2020 compared with those disclosed in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2019 10-K and “Note 1 - General” in the notes to the condensed consolidated financial statements in Part I, Item 1 included herein.

Commitments

We have not made any material changes to the significant commitments or contractual obligations that were disclosed in our 2019 10-K, nor have we entered into any new ones.

Item 3 - Quantitative and Qualitative Disclosures about Market Risks

With respect to our quantitative and qualitative disclosures about foreign currency risks and interest rates risks, there have been no material changes to the information included in our 2019 10-K. Based on the relative size and nature of our foreign operations, we do not believe that a 10 percent change in the value of foreign currencies relative to the U.S. dollar would have a material impact on our condensed consolidated financial statements. A hypothetical 100 basis point change in interest rates for the Credit Facility would have resulted in an interest expense change of approximately $4.9 million on an annualized basis. The $550.0 million Senior Notes bear a fixed interest rate and thus are not susceptible to interest rate market risks.

15

Item 4 - Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Principal Financial and Accounting Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based on this evaluation, our Chief Executive Officer and Principal Financial and Accounting Officer have concluded that our disclosure controls and procedures are effective as of the end of the period covered by this report. The term “disclosure controls and procedures” means controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within required time periods. We have established disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Principal Financial and Accounting Officer, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal controls over financial reporting that occurred during the three months ended June 30, 2020 that have materially affected, or are reasonably likely to affect, our internal control over financial reporting.

 PART II – OTHER INFORMATION

Item 1 – Legal Proceedings

We are involved in various legal proceedings, claims and litigation arising in the ordinary course of business. However, based on the facts currently available, we do not believe that the disposition of matters that are pending or asserted will have a material effect on our financial position, results of operations or cash flows.

Item 1A – Risk Factors

There have been no material changes to the risk factors previously described in our 2019 10-K and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

Item 2 - Unregistered Sales of Securities and Use of Proceeds

None.

Item 3 - Defaults Upon Senior Securities

None.

Item 4 - Mine Safety Disclosures

Information concerning mine safety violations or other regulatory matters required by SEC regulations is included in Exhibit 95 filed with this Quarterly Report on Form 10-Q for the period ended June 30, 2020.

Item 5 - Other Information

None.

16

Item 6 - Exhibits

INDEX TO EXHIBITS

Number		Footnote	Description
3.1		(1)	Amended and Restated Certificate of Incorporation of On Assignment, Inc. effective June 23, 2014
3.2		(2)	Certificate of Amendment of Amended and Restated Certificate of Incorporation of On Assignment, Inc. effective April 2, 2018
3.3		(3)	Third Amended and Restated Bylaws of ASGN Incorporated, effective April 2, 2018
4.1		(4)(P)	Specimen Common Stock Certificate
31.1		*	Certification of Theodore S. Hanson, President and Chief Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a)
31.2		*	Certification of Edward L. Pierce, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a)
32.1		*	Certification of Theodore S. Hanson, President and Chief Executive Officer, pursuant to 18 U.S.C. Section 1350
32.2		*	Certification of Edward L. Pierce, Executive Vice President and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350
95		*	Mine Safety Disclosures
101		*	The following material from this Quarterly Report on Form 10-Q of ASGN Incorporated for the period ended June 30, 2020, formatted in Inline XBRL Part I, Item 1 of this Form 10-Q formatted in Inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations and Comprehensive Income; (iii) Condensed Consolidated Statement of Stockholders’ Equity; (iv) Condensed Consolidated Statements of Cash Flows; and (v) related notes to these financial statements.
104			Cover page interactive data file (formatted in Inline XBRL and contained in Exhibit 101)
*	Filed herewith.
(1)	Incorporated by reference from an exhibit to our Current Report on Form 8-K filed with the SEC on June 25, 2014.
(2)	Incorporated by reference from an exhibit to our Current Report on Form 8-K filed with the SEC on March 16, 2018.
(3)	Incorporated by reference from an exhibit to our Current Report on Form 8-K filed with the SEC on April 2, 2018.
(4)	Incorporated by reference from an exhibit to our Registration Statement on Form S-1 (File No. 33-50646) declared effective by the SEC on September 21, 1992.
(P)	This exhibit has been paper filed and is not subject to the hyperlinking requirements of Item 601 of Regulation S-K.

17

 SIGNATURE

Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ASGN Incorporated
August 10, 2020	By:	/s/ Edward L. Pierce
		Edward L. Pierce
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer and Duly Authorized Officer)

18

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULES 13a-14(a) 

UNDER THE SECURITIES EXCHANGE ACT OF 1934 AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Theodore S. Hanson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2020 of ASGN Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 10, 2020
		/s/ Theodore S. Hanson
		Theodore S. Hanson
		President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULES 13a-14(a) 

UNDER THE SECURITIES EXCHANGE ACT OF 1934 AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Edward L. Pierce certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2020 of ASGN Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to theperiod covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 10, 2020
		/s/ Edward L. Pierce
		Edward L. Pierce
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

The undersigned, the Chief Executive Officer of ASGN Incorporated (the "Company"), hereby certifies that, to his knowledge on the date hereof:

(a) the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2020 filed on the date hereof with the Securities and Exchange Commission (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(b) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 10, 2020
		/s/ Theodore S. Hanson
		Theodore S. Hanson
		President and Chief Executive Officer (Principal Executive Officer)

EX-32.2

Exhibit 32.2

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

The undersigned, the Chief Financial Officer of ASGN Incorporated (the "Company"), hereby certifies that, to his knowledge on the date hereof:

(a) the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2020 filed on the date hereof with the Securities and Exchange Commission (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(b) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 10, 2020
		/s/ Edward L. Pierce
		Edward L. Pierce
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-95

Exhibit 95

Mine Safety Disclosure

The Company, as an independent contractor, was providing five personnel to the Montevallo Quarry & Mill (the “Mine”) as of June 23, 2020, when the Company received notice from the Mine Safety and Health Administration of certain violations of Section 104(a) of the Federal Mine Safety and Health Act of 1977 at the Mine. The total penalties assessed for these violations was $492.00. The Company is not responsible for, and is not aware of, the other matters called for in this item.

XML

Document and Entity Information - shares shares in Millions	6 Months Ended
	Jun. 30, 2020	Aug. 03, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-35636
Entity Registrant Name	ASGN Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4023433
Entity Address, Address Description	4400 Cox Road, Suite 110
Entity Address, City or Town	Glen Allen
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23060
City Area Code	888
Local Phone Number	482-8068
Title of 12(b) Security	Common Stock
Trading Symbol	ASGN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		52.5
Entity Central Index Key	0000890564
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 207.9	$ 95.2
Accounts receivable, net	612.1	648.7
Prepaid expenses and income taxes	15.9	29.4
Other current assets	18.7	18.2
Total current assets	854.6	791.5
Property and equipment, net	79.2	73.7
Operating lease right of use assets	90.3	94.6
Identifiable intangible assets, net	474.6	476.5
Goodwill	1,547.3	1,486.9
Other non-current assets	19.5	18.2
Total assets	3,065.5	2,941.4
Current liabilities:
Accounts payable	37.5	39.2
Accrued payroll and contract professional pay	206.5	203.2
Operating lease liabilities	27.6	25.8
Other current liabilities	85.7	72.7
Total current liabilities	357.3	340.9
Long-term debt	1,032.9	1,032.3
Operating lease liabilities	69.5	75.7
Deferred income tax liabilities	98.6	98.7
Other long-term liabilities	50.1	17.6
Total liabilities	1,608.4	1,565.2
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred Stock, Value, $0.01 par value	0.0	0.0
Common stock, $0.01 par value	0.5	0.5
Paid-in capital	645.9	638.0
Retained earnings	818.6	744.7
Accumulated other comprehensive loss	(7.9)	(7.0)
Total stockholders’ equity	1,457.1	1,376.2
Total liabilities and stockholders’ equity	$ 3,065.5	$ 2,941.4

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions, $ / shares in Millions	Jun. 30, 2020	Dec. 31, 2019
Stockholders’ equity:
Preferred Stock, par value (in dollars per share)	$ 0.0	$ 0.0
Preferred Stock, shares authorized (in shares)	1.0	1.0
Preferred Stock, shares issued (in shares)	0.0	0.0
Preferred Stock, shares outstanding (in shares)	0.0	0.0
Common Stock, par value (in dollars per share)	$ 0.0	$ 0.0
Common Stock, shares authorized (in shares)	75.0	75.0
Common Stock, Shares	52.5	52.9
Common Stock: shares outstanding (in shares)	52.5	52.9

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues	$ 936.8	$ 972.3	$ 1,927.3	$ 1,896.0
Cost of services	676.0	687.1	1,385.6	1,346.9
Gross profit	260.8	285.2	541.7	549.1
Selling, general and administrative expenses	172.2	198.8	370.1	386.2
Amortization of intangible assets	12.6	13.1	24.7	26.9
Operating income	76.0	73.3	146.9	136.0
Interest expense	(9.7)	(14.0)	(21.1)	(28.5)
Income before income taxes	66.3	59.3	125.8	107.5
Provision for income taxes	17.5	16.2	33.2	29.5
Net income	$ 48.8	$ 43.1	$ 92.6	$ 78.0
Earnings per share:
Basic	$ 0.93	$ 0.82	$ 1.76	$ 1.48
Diluted	$ 0.92	$ 0.81	$ 1.74	$ 1.46
Number of shares and share equivalents used to calculate earnings per share:
Basic	52.5	52.8	52.7	52.7
Diluted	53.0	53.4	53.1	53.3
Reconciliation of net income to comprehensive income:
Net income	$ 48.8	$ 43.1	$ 92.6	$ 78.0
Foreign currency translation adjustment	1.6	1.0	(0.9)	(0.1)
Comprehensive income	$ 50.4	$ 44.1	$ 91.7	$ 77.9

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Shares Outstanding at Dec. 31, 2018		52.5
Total stockholders’ equity at Dec. 31, 2018	$ 1,182.1	$ 0.5	$ 601.8	$ 586.1	$ (6.3)
Vesting of restricted stock units, shares		0.2
Vesting of restricted stock units, value	(6.8)		(6.8)
Employee stock purchase plan, shares		0.1
Employee stock purchase plan, value	6.9		6.9
Stock Issued During Period, Value, Stock Options Exercised	23.6
Stock-based compensation expense			23.6
Stock Repurchased and Retired During Period, Value	(0.1)
Foreign currency translation adjustments	78.0				(0.1)
Net income	78.0			78.0
Shares Outstanding at Jun. 30, 2019		52.8
Total stockholders’ equity at Jun. 30, 2019	1,283.7	$ 0.5	625.5	664.1	(6.4)
Shares Outstanding at Mar. 31, 2019		52.8
Total stockholders’ equity at Mar. 31, 2019	1,227.3	$ 0.5	613.2	621.0	(7.4)
Vesting of restricted stock units, shares		0.0
Vesting of restricted stock units, value	(1.3)		(1.3)
Stock-based compensation expense	13.6		13.6
Foreign currency translation adjustments	1.0				1.0
Net income	43.1			43.1
Shares Outstanding at Jun. 30, 2019		52.8
Total stockholders’ equity at Jun. 30, 2019	1,283.7	$ 0.5	625.5	664.1	(6.4)
Shares Outstanding at Dec. 31, 2019		52.9
Total stockholders’ equity at Dec. 31, 2019	1,376.2	$ 0.5	638.0	744.7	(7.0)
Vesting of restricted stock units, shares		0.2
Vesting of restricted stock units, value	(5.9)		(5.9)
Employee stock purchase plan, shares		0.2
Employee stock purchase plan, value	5.9		5.9
Stock Issued During Period, Value, Stock Options Exercised	17.1
Stock-based compensation expense	$ (27.9)		17.1
Stock Repurchased and Retired During Period, Shares	(0.8)
Stock Repurchased and Retired During Period, Value	$ (0.9)		(9.2)	(18.7)
Foreign currency translation adjustments	92.6				(0.9)
Net income	92.6			92.6
Shares Outstanding at Jun. 30, 2020		52.5
Total stockholders’ equity at Jun. 30, 2020	1,457.1	$ 0.5	645.9	818.6	(7.9)
Shares Outstanding at Mar. 31, 2020		52.4
Total stockholders’ equity at Mar. 31, 2020	1,399.5	$ 0.5	638.7	769.8	(9.5)
Vesting of restricted stock units, shares		0.1
Vesting of restricted stock units, value	(1.0)		(1.0)
Stock-based compensation expense	8.2		8.2
Foreign currency translation adjustments	1.6				1.6
Net income	48.8			48.8
Shares Outstanding at Jun. 30, 2020		52.5
Total stockholders’ equity at Jun. 30, 2020	$ 1,457.1	$ 0.5	$ 645.9	$ 818.6	$ (7.9)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash Flows from Operating Activities:
Net income	$ 92.6	$ 78.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43.0	46.6
Stock-based compensation	16.9	23.3
Other	3.5	8.5
Changes in operating assets and liabilities:
Accounts receivable	40.5	1.0
Prepaid expenses and income taxes	13.5	(5.3)
Accounts payable	(0.2)	(21.0)
Accrued payroll and contract professional pay	(0.1)	0.5
Income taxes payable	16.7	10.0
Operating lease right of use assets	14.4	13.9
Operating lease liabilities	(14.6)	(13.7)
Other	24.0	(1.3)
Net Cash Provided by Operating Activities	250.2	140.5
Cash Flows from Investing Activities:
Cash paid for property and equipment	(22.6)	(15.9)
Cash paid for acquisitions, net of cash acquired	(85.5)	(48.5)
Other	(0.3)	(0.9)
Net cash used in investing activities	(108.4)	(65.3)
Cash Flows from Financing Activities:
Proceeds from long-term debt	65.5	50.0
Principal payments of long-term debt	(65.5)	(127.0)
Payments of Debt Issuance Costs	(1.3)	0.0
Proceeds from option exercises and employee stock purchase plan	5.9	6.9
Payment of employment taxes related to release of restricted stock awards	(5.9)	(6.8)
Payments for Repurchase of Common Stock	(27.9)	0.0
Net Cash provided by (used in) Financing Activities	(29.2)	(76.9)
Effect of exchange rate changes on cash and cash equivalents	0.1	0.0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	112.7	(1.7)
Cash and Cash Equivalents at Beginning of Year	95.2	41.8
Cash and Cash Equivalents at End of Period	207.9	40.1
Supplemental Disclosure of Cash Flow Information:
Income taxes	5.3	21.0
Interest	19.7	25.4
Supplemental Disclosure of Non-Cash Transactions:
Unpaid portion of additions to property and equipment	4.2	1.1
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 10.4	$ 7.6

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Financial Statement Presentation (Notes)

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Statement Presentation

1. General

Basis of presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the Securities and Exchange Commission (the "SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The December 31, 2019 condensed consolidated balance sheet was derived from audited financial statements. The financial statements include adjustments consisting of normal recurring items, which, in the opinion of management, are necessary for a fair presentation of the financial position of ASGN Incorporated and its subsidiaries ("ASGN" or the "Company") and its results of operations for the interim dates and periods set forth herein. The results for any of the interim periods are not necessarily indicative of the results to be expected for the full year or any other period. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 ("2019 10-K").

COVID-19 pandemic — As a result of the COVID-19 pandemic, the Company experienced a precipitous decline in revenues from its creative marketing and permanent placement divisions in the second quarter of 2020. In the aggregate, these divisions accounted for approximately 8.9 percent of consolidated revenues for the quarter. Due to this decline and the uncertainty related to future performance, the Company performed an assessment of the goodwill and trademarks of these divisions. This assessment included sensitivity analyses and stress testing on certain of our more sensitive inputs to our valuation models, including the weighted-average cost of capital and future expected revenues. Based on this assessment, we concluded that their fair values, more likely than not, exceeded their carrying values. Given the uncertainty of the current economic environment, accounting estimates and assumptions that require management's judgments concerning the effects of the economic downturn and recovery, particularly those relating to the recoverability of intangible assets and goodwill, are being closely monitored.

As allowed by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Company deferred the payment of certain federal payroll taxes. This relief program is applicable for wages paid through December 31, 2020 and requires 50 percent of the amounts deferred to be paid by December 31, 2021 with the remaining amount paid by December 31, 2022. This deferral, which totaled $31.1 million at June 30, 2020, is included in payroll tax deferral and other noncurrent liabilities in the condensed consolidated balance sheet.

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Accounting Standard Update (Notes)

6 Months Ended

Jun. 30, 2020

Accounting Standard Update [Abstract]

New Accounting Pronouncements

2. Accounting Standards Update

On January 1, 2020, the Company adopted Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326). This standard requires a financial asset to be presented at the net amount expected to be collected. The financial assets of the Company in scope of ASU 2016-13 were primarily accounts receivable. The adoption of this standard did not have a significant impact to the Company's consolidated financial statements. The Company estimates an allowance for expected credit losses on accounts receivable that result from the inability of customers to make required payments. These estimates are based on a combination of historical loss statistics, current business conditions and macro-economic trends. In estimating the allowance for expected credit losses, consideration is given to the current aging of receivables and a specific review for potential bad debts. The resulting bad debt expense is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. Receivables are written-off when deemed uncollectible. The Company evaluates the adequacy of its allowance for credit losses on accounts receivable on a regular basis. The accounts receivable allowance was $5.7 million and $5.1 million at June 30, 2020 and December 31, 2019, respectively, and the activity in the six months ended June 30, 2020 was not material.

On January 1, 2020, the Company adopted ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This update provides guidance regarding the capitalization of implementation costs incurred in a cloud computing arrangement that is a service contract. ASU 2018-15 was adopted prospectively and cloud computing implementation costs incurred on January 1, 2020 or later are included in other noncurrent assets in the consolidated balance sheet and are presented within operating cash flows. As of June 30, 2020, $2.0 million of capitalized implementation costs were included in other noncurrent assets, and there was an insignificant amount of amortization expense recorded during the six and three months ended June 30, 2020.

Effective January 1, 2020, the Company adopted ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment. This guidance eliminates Step 2 of the goodwill impairment test and goodwill impairment will now be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04 Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases and other contracts. This guidance is optional and may be elected over time as reference rate reform activities occur. The Company is currently evaluating the impact of this guidance.

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Leases (Notes)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases Disclosure

7. Leases

The Company has operating leases for corporate offices, branch offices and data centers. Two of these properties were owned indirectly by certain board members and an executive of the Company. Related-party rent expense for these properties was $0.2 million and $0.4 million for the three and six months ended June 30, 2020, respectively; and $0.3 million and $0.6 million for the three and six months ended June 30, 2019, respectively.

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Acquisitions (Notes)

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Acquisitions

3. Acquisitions

Blackstone Federal Acquisition

On January 24, 2020, the Company acquired certain specified assets and liabilities that make up the federal division of Blackstone Technology Group (“Blackstone Federal”), for $85.5 million in cash. Blackstone Federal is headquartered in Arlington, Virginia. The acquisition expands the Company's capabilities in agile application development, cloud modernization and systems architecture, cybersecurity, user experience design and branding services to government clients and is part of the ECS Segment. The results of operations of Blackstone Federal are included in the consolidated results of the Company from the date of its acquisition. The Company does not provide pro forma information for the Blackstone Federal acquisition due to its size.

The purchase accounting for the acquisition of Blackstone Federal remains incomplete with respect to the provisional fair value of assets acquired and liabilities assumed, as management continues to gather and evaluate information about circumstances that existed as of the acquisition date. Measurement period adjustments will be recognized prospectively within 12 months from the date of acquisition. Goodwill associated with this acquisition totaled $61.1 million, which is deductible for income tax purposes. Goodwill represents the acquired assembled workforce, potential new customers and future cash flows after the acquisition. Identifiable intangible assets related to this acquisition totaled $22.8 million, with useful lives ranging from one to nine years.

Intersys Acquisition

On October 17, 2019, the Company acquired all of the membership interests of Intersys Consulting, LLC ("Intersys"), headquartered in Austin, Texas, for $67.0 million in cash. The acquisition expands the Company's capabilities in digital innovation and enterprise solutions and it is part of the Apex Segment. The results of operations of Intersys are included in the consolidated results of the Company from the date of its acquisition. The Company does not provide pro forma information for the Intersys acquisition due to its size.

The purchase accounting for the acquisition of Intersys remains incomplete with respect to the provisional fair value of assets acquired and liabilities assumed, as management continues to gather and evaluate information about circumstances that existed as of the acquisition date. Measurement period adjustments will be recognized prospectively within 12 months from the date of acquisition. Goodwill associated with this acquisition totaled $41.4 million, of which $38.7 million is deductible for income tax purposes. Goodwill represents the acquired assembled workforce, potential new customers and future cash flows after the acquisition. Identifiable intangible assets related to this acquisition totaled $23.8 million, with useful lives ranging from three to ten years.

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Goodwill and Identifiable Assets (Notes)

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

4. Goodwill and Identifiable Intangible Assets

The changes in the carrying amount of goodwill by segment for the six months ended June 30, 2020 and the year ended December 31, 2019 were as follows (in millions):

	Apex			Oxford			ECS		Total
Balance as of December 31, 2018	$	662.1		$	230.8		$	528.2	$	1,421.1
DHA acquisition	—			—			24.7		24.7
Intersys acquisition	41.4			—			—		41.4
Translation adjustment	—			(0.3		)	—		(0.3		)
Balance as of December 31, 2019	703.5			230.5			552.9		1,486.9
Blackstone Federal acquisition	—			—			61.1		61.1
Translation adjustment	(0.5		)	(0.2		)	—		(0.7		)
Balance as of June 30, 2020	$	703.0		$	230.3		$	614.0	$	1,547.3

Acquired intangible assets consisted of the following (in millions):

		June 30, 2020						December 31, 2019
	Estimated Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Subject to amortization:
Customer and contractual relationships	2 - 12.75	$	403.6	$	200.4	$	203.2	$	384.9	$	179.9	$	205.0
Contractor relationships	2 - 5	71.1		70.7		0.4		71.1		70.6		0.5
Backlog	1 - 2.75	28.3		25.9		2.4		25.0		23.9		1.1
Non-compete agreements	2 - 7	25.6		15.9		9.7		24.8		13.8		11.0
In-use software	6	18.9		18.9		—		18.9		18.9		—
		547.5		331.8		215.7		524.7		307.1		217.6
Not subject to amortization:
Trademarks		258.9		—		258.9		258.9		—		258.9
Total		$	806.4	$	331.8	$	474.6	$	783.6	$	307.1	$	476.5

Estimated future amortization expense is as follows (in millions): 

Remainder of 2020	$	25.1
2021	41.0
2022	32.7
2023	28.0
2024	21.2
Thereafter	67.7
	$	215.7

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Long-Term Debt (Notes)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Long-Term Debt

5. Long-Term Debt

Long-term debt consisted of the following (in millions):

	June 30, 2020			December 31, 2019
Senior Secured Credit Facility:
$250 million revolving credit facility, due 2024	$	—		$	—
Term B loan facility, due 2025	490.8			490.8
Unsecured Senior Notes, due 2028	550.0			550.0
	1,040.8			1,040.8
Unamortized deferred loan costs	(7.9		)	(8.5		)
Total Long-Term Debt	$	1,032.9		$	1,032.3

Senior Secured Credit Facility

The senior secured credit facility ("Credit Facility") consists of a term B loan and a senior secured revolving credit facility with a maximum borrowing capacity of $250.0 million (the "Revolver"). Borrowings under the term B loan bear interest at LIBOR plus 1.75 percent, or the bank’s base rate plus 0.75 percent. Borrowings under the Revolver bear interest at LIBOR plus 1.25 percent to 2.25 percent, or the bank’s base rate plus 0.25 to 1.25 percent, depending on leverage levels. At June 30, 2020, the Company had no outstanding borrowings under the Revolver and had $3.9 million in undrawn stand-by letters of credit to secure certain obligations. A commitment fee of 0.20 to 0.35 percent is payable on the undrawn portion of the Revolver. There are no required minimum payments on the Credit Facility and it is secured by substantially all of the Company's assets and includes various restrictive covenants. The Company is required to make mandatory prepayments on its term B loan from excess cash flow and with the proceeds of asset sales, debt issuances and specified other events, subject to certain exceptions. The Revolver is limited to a maximum ratio of senior secured debt to trailing 12-months of lender defined consolidated EBITDA. At June 30, 2020, the Company was in compliance with its debt covenants.

Unsecured Senior Notes

The Company has $550.0 million of unsecured senior notes due in 2028 (the "Senior Notes"). The Senior Notes bear interest at 4.625 percent, which is payable in arrears on May 15 and November 15 of each year. The Senior Notes are unsecured obligations and are subordinate to the Company's Credit Facility to the extent of the collateral securing such facility. The Senior Notes also contain certain customary limitations including, among other terms and conditions, the Company's ability to incur additional indebtedness, engage in mergers and acquisitions, transfer or sell assets and make certain distributions.

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Commitments and Contingencies (Notes)

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

6. Commitments and Contingencies

The Company’s deferred compensation plan liability was $12.2 million and $11.8 million at June 30, 2020 and December 31, 2019, respectively, and was primarily included in other long-term liabilities. The employees' deferred compensation is deposited in a rabbi trust (see Note 12. Fair Value Measurements).

The Company is involved in various legal proceedings, claims and litigation arising in the ordinary course of business. The Company does not believe that the disposition of matters that are pending or asserted will have a material effect on its condensed consolidated financial statements.

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Revenues (Notes)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenues

8. Revenues

The Company’s contracts have termination for convenience provisions and do not have substantive termination penalties; therefore, the contract duration for accounting purposes may be less than the stated terms. For accounting purposes, the Company's contracts with customers are considered to be of a short-term nature (one year or less). The Company does not disclose the value of remaining performance obligations for short-term contracts.

The Company has contract liabilities of $12.1 million and $8.4 million at June 30, 2020 and December 31, 2019, respectively, for payments received in advance of providing services under certain contracts. Contract liabilities are included in other current liabilities on the condensed consolidated balance sheets and are generally recognized as revenues within three months from the balance sheet date.

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Income Taxes (Notes)

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

For interim reporting periods, the Company’s provision for income taxes is calculated using its annualized estimated effective tax rate for the year. This rate is based on its estimated full year income and the related income tax expense for each jurisdiction in which the Company operates. The effective tax rate can be affected by changes in the geographical mix, permanent differences and the estimate of full year pretax accounting income. This rate is adjusted for the effects of discrete items occurring in the period.

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Earnings Per Share (Notes)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings per share

10. Earnings per Share 

The following is a reconciliation of the number of shares and share equivalents used to calculate basic and diluted earnings per share (in millions, except per share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net income	$	48.8	$	43.1	$	92.6	$	78.0
Weighted-average number of common shares outstanding - basic	52.5		52.8		52.7		52.7
Dilutive effect of share equivalents	0.5		0.6		0.4		0.6
Number of common shares and share equivalents outstanding - diluted	53.0		53.4		53.1		53.3
Basic earnings per share	$0.93		$0.82		$1.76		$1.48
Diluted earnings per share	$0.92		$0.81		$1.74		$1.46
Anti-dilutive share equivalents (1)	0.5		0.2		0.3		0.3

_____

⁽¹⁾ Anti-dilutive stock-based awards that were excluded from the calculation of the number of shares used to compute diluted earnings per share because they were anti-dilutive when applying the treasury-stock method.

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Segment Reporting (Notes)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

11. Segment Reporting 

ASGN provides IT and professional staffing services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors. ASGN operates through its Apex, Oxford and ECS segments. The Apex Segment provides technology, digital, creative, scientific, engineering staffing and consulting services to Fortune 1000 and mid-market clients across the United States and Canada. The Oxford Segment provides hard-to-find technology, digital, engineering and life sciences staffing and consulting services in select skill and geographic markets in the United States and Europe. The Company’s commercial business is comprised of the Apex and Oxford segments. The ECS Segment, the Company’s federal government IT solutions business, delivers advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, science and engineering to U.S. defense, intelligence and federal civilian agencies.

The Company has three major revenue streams: (i) contract, (ii) permanent placement and (iii) federal government IT solutions. The Company’s contract revenues are comprised of assignment revenues and consulting revenues. Consulting services consist of deliverables-based projects including support service centers and managed projects such as software development.

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 internal financial reporting of the segments used for corporate management purposes.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Apex
Revenues	$	576.9	$	628.5	$	1,206.0	$	1,234.6
Gross profit	170.6		187.8		355.1		363.2
Operating income	66.0		72.9		133.1		133.9
Amortization	5.5		5.5		10.8		11.5
Oxford
Revenues	$	120.2	$	153.2	$	268.9	$	302.8
Gross profit	46.4		62.5		105.7		121.4
Operating income	7.8		11.0		18.9		22.7
Amortization	0.1		1.0		0.3		2.0
ECS
Revenues	$	239.7	$	190.6	$	452.4	$	358.6
Gross profit	43.8		34.9		80.9		64.5
Operating income	16.2		10.9		27.5		17.8
Amortization	7.0		6.6		13.6		13.4
Consolidated
Revenues	$	936.8	$	972.3	$	1,927.3	$	1,896.0
Gross profit	260.8		285.2		541.7		549.1
Operating income(1)	76.0		73.3		146.9		136.0
Amortization	12.6		13.1		24.7		26.9

____________

⁽¹⁾  Consolidated operating income includes corporate operating expenses, which are not allocated to the segments, consisting 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 segment revenues by type (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Apex
Contract —
Assignment	$	483.8	$	533.5	$	1,010.1	$	1,053.3
Consulting	85.3		79.5		174.9		151.9
	569.1		613.0		1,185.0		1,205.2
Permanent placement	7.8		15.5		21.0		29.4
	576.9		628.5		1,206.0		1,234.6
Oxford
Contract —
Assignment	$	96.2	$	117.1	$	211.1	$	234.7
Consulting	11.1		14.3		24.3		26.1
	107.3		131.4		235.4		260.8
Permanent placement	12.9		21.8		33.5		42.0
	120.2		153.2		268.9		302.8
ECS
Firm-fixed-price	$	63.5	$	46.1	$	120.5	$	89.4
Time and materials	81.4		70.8		153.8		132.2
Cost reimbursable	94.8		73.7		178.1		137.0
	239.7		190.6		452.4		358.6
Consolidated	$	936.8	$	972.3	$	1,927.3	$	1,896.0

The Company operates internationally, with operations mainly in the United States. The following table presents revenues within and outside of the United States (in millions):

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2020		%		2019		%		2020		%		2019		%
Revenues:
Domestic	$	897.9	95.8	%	$	929.8	95.6	%	$	1,843.3	95.6	%	$	1,810.9	95.5	%
Foreign	38.9		4.2	%	42.5		4.4	%	84.0		4.4	%	85.1		4.5	%
	$	936.8	100.0	%	$	972.3	100.0	%	$	1,927.3	100.0	%	$	1,896.0	100.0	%

The following table presents the ECS segment (federal government IT solutions) revenues by customer type (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Department of Defense and Intelligence Agencies	$	127.1	$	107.6	$	242.0	$	203.6
Federal Civilian	96.0		71.3		180.6		131.5
Other	16.6		11.7		29.8		23.5
	$	239.7	$	190.6	$	452.4	$	358.6

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Fair Value Measurements (Notes)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

12. Fair Value Measurements

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued payroll and contract professional pay approximate their fair value based on their short-term nature. The carrying amount of long-term debt recorded in the Company’s condensed consolidated balance sheet at June 30, 2020 was $1.0 billion and approximated its fair value (see Note 5. Long-Term Debt), which was determined using quoted prices in active markets for identical liabilities (Level 1 inputs).

The Company has a deferred compensation plan and the employees' deferred compensation is deposited in a rabbi trust. This rabbi trust had investments, primarily mutual funds, of $12.2 million and $11.8 million at June 30, 2020 and December 31, 2019, respectively, which are measured at fair value using the net asset value per share. These assets were primarily included in other non-current assets.

Certain assets, such as goodwill and trademarks, are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as, when there is evidence of impairment (see Note 1. General for discussion of our assessment performed in the current quarter). The fair value assigned to identifiable intangible assets is primarily determined using a discounted cash flow method (a non-recurring fair value measurement based on Level 3 inputs). All assets and liabilities of acquired companies are recorded at their estimated fair values at the dates of acquisition.

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Goodwill and Identifiable Assets (Tables)

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill by segment for the six months ended June 30, 2020 and the year ended December 31, 2019 were as follows (in millions):

	Apex			Oxford			ECS		Total
Balance as of December 31, 2018	$	662.1		$	230.8		$	528.2	$	1,421.1
DHA acquisition	—			—			24.7		24.7
Intersys acquisition	41.4			—			—		41.4
Translation adjustment	—			(0.3		)	—		(0.3		)
Balance as of December 31, 2019	703.5			230.5			552.9		1,486.9
Blackstone Federal acquisition	—			—			61.1		61.1
Translation adjustment	(0.5		)	(0.2		)	—		(0.7		)
Balance as of June 30, 2020	$	703.0		$	230.3		$	614.0	$	1,547.3

Schedule of Acquired Intangible Assets

Acquired intangible assets consisted of the following (in millions):

		June 30, 2020						December 31, 2019
	Estimated Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Subject to amortization:
Customer and contractual relationships	2 - 12.75	$	403.6	$	200.4	$	203.2	$	384.9	$	179.9	$	205.0
Contractor relationships	2 - 5	71.1		70.7		0.4		71.1		70.6		0.5
Backlog	1 - 2.75	28.3		25.9		2.4		25.0		23.9		1.1
Non-compete agreements	2 - 7	25.6		15.9		9.7		24.8		13.8		11.0
In-use software	6	18.9		18.9		—		18.9		18.9		—
		547.5		331.8		215.7		524.7		307.1		217.6
Not subject to amortization:
Trademarks		258.9		—		258.9		258.9		—		258.9
Total		$	806.4	$	331.8	$	474.6	$	783.6	$	307.1	$	476.5

Schedule of Estimated Future Amortization Expense

Estimated future amortization expense is as follows (in millions): 

Remainder of 2020	$	25.1
2021	41.0
2022	32.7
2023	28.0
2024	21.2
Thereafter	67.7
	$	215.7

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consisted of the following (in millions):

	June 30, 2020			December 31, 2019
Senior Secured Credit Facility:
$250 million revolving credit facility, due 2024	$	—		$	—
Term B loan facility, due 2025	490.8			490.8
Unsecured Senior Notes, due 2028	550.0			550.0
	1,040.8			1,040.8
Unamortized deferred loan costs	(7.9		)	(8.5		)
Total Long-Term Debt	$	1,032.9		$	1,032.3

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Earnings Per Share Schedule Of Earnings Per Share Basic And Diluted Table (Tables)

6 Months Ended

Jun. 30, 2020

Calculation of Basic and Diluted Earnings per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following is a reconciliation of the number of shares and share equivalents used to calculate basic and diluted earnings per share (in millions, except per share data):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net income	$	48.8	$	43.1	$	92.6	$	78.0
Weighted-average number of common shares outstanding - basic	52.5		52.8		52.7		52.7
Dilutive effect of share equivalents	0.5		0.6		0.4		0.6
Number of common shares and share equivalents outstanding - diluted	53.0		53.4		53.1		53.3
Basic earnings per share	$0.93		$0.82		$1.76		$1.48
Diluted earnings per share	$0.92		$0.81		$1.74		$1.46
Anti-dilutive share equivalents (1)	0.5		0.2		0.3		0.3

_____

⁽¹⁾ Anti-dilutive stock-based awards that were excluded from the calculation of the number of shares used to compute diluted earnings per share because they were anti-dilutive when applying the treasury-stock

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information, by Segment

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Apex
Revenues	$	576.9	$	628.5	$	1,206.0	$	1,234.6
Gross profit	170.6		187.8		355.1		363.2
Operating income	66.0		72.9		133.1		133.9
Amortization	5.5		5.5		10.8		11.5
Oxford
Revenues	$	120.2	$	153.2	$	268.9	$	302.8
Gross profit	46.4		62.5		105.7		121.4
Operating income	7.8		11.0		18.9		22.7
Amortization	0.1		1.0		0.3		2.0
ECS
Revenues	$	239.7	$	190.6	$	452.4	$	358.6
Gross profit	43.8		34.9		80.9		64.5
Operating income	16.2		10.9		27.5		17.8
Amortization	7.0		6.6		13.6		13.4
Consolidated
Revenues	$	936.8	$	972.3	$	1,927.3	$	1,896.0
Gross profit	260.8		285.2		541.7		549.1
Operating income(1)	76.0		73.3		146.9		136.0
Amortization	12.6		13.1		24.7		26.9

____________

⁽¹⁾ 

Consolidated operating income includes corporate operating expenses, which are not allocated to the segments, consisting 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.

Disaggregation of Revenue

The following table presents segment revenues by type (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Apex
Contract —
Assignment	$	483.8	$	533.5	$	1,010.1	$	1,053.3
Consulting	85.3		79.5		174.9		151.9
	569.1		613.0		1,185.0		1,205.2
Permanent placement	7.8		15.5		21.0		29.4
	576.9		628.5		1,206.0		1,234.6
Oxford
Contract —
Assignment	$	96.2	$	117.1	$	211.1	$	234.7
Consulting	11.1		14.3		24.3		26.1
	107.3		131.4		235.4		260.8
Permanent placement	12.9		21.8		33.5		42.0
	120.2		153.2		268.9		302.8
ECS
Firm-fixed-price	$	63.5	$	46.1	$	120.5	$	89.4
Time and materials	81.4		70.8		153.8		132.2
Cost reimbursable	94.8		73.7		178.1		137.0
	239.7		190.6		452.4		358.6
Consolidated	$	936.8	$	972.3	$	1,927.3	$	1,896.0

Schedule of Revenue by Geographical Areas

The Company operates internationally, with operations mainly in the United States. The following table presents revenues within and outside of the United States (in millions):

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2020		%		2019		%		2020		%		2019		%
Revenues:
Domestic	$	897.9	95.8	%	$	929.8	95.6	%	$	1,843.3	95.6	%	$	1,810.9	95.5	%
Foreign	38.9		4.2	%	42.5		4.4	%	84.0		4.4	%	85.1		4.5	%
	$	936.8	100.0	%	$	972.3	100.0	%	$	1,927.3	100.0	%	$	1,896.0	100.0	%

Revenue from External Customers by Products and Services

The following table presents the ECS segment (federal government IT solutions) revenues by customer type (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Department of Defense and Intelligence Agencies	$	127.1	$	107.6	$	242.0	$	203.6
Federal Civilian	96.0		71.3		180.6		131.5
Other	16.6		11.7		29.8		23.5
	$	239.7	$	190.6	$	452.4	$	358.6

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Financial Statement Presentation Care Act (Details) $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($) Rate
Presentation of Financial Statements [Abstract]
Federal Tax Deferred (Cares Act) | $	$ 31.1
Percent of Federal Tax Deferred (Cares Act) | Rate	50.00%

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Accounting Standard Update Cloud Computing (Details) $ in Millions	Jun. 30, 2020 USD ($)
Capitalized Implementation Costs Disclosure [Abstract]
Capitalized Implementation Cost	$ 2.0

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Accounting Standard Update Allowance for Credit Loss (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Allowance for Credit Loss [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 5.7	$ 5.1

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Leases Related Party Leases (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020 USD ($) property	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) property	Jun. 30, 2019 USD ($)
Related Party Transactions [Abstract]
Number of Leased Properties Owned by Related Parties | property	2		2
Costs and Expenses, Related Party | $	$ 0.2	$ 0.3	$ 0.4	$ 0.6

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Acquisitions Business Combinations Additional Information (Details) - USD ($) $ in Millions			6 Months Ended		12 Months Ended
	Jan. 24, 2020	Oct. 17, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Cash paid for acquisitions, net of cash acquired			$ 85.5	$ 48.5
Goodwill			1,547.3		$ 1,486.9
BlackStone Federal
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition	Jan. 24, 2020
Business Acquisition, Name of Acquired Entity	Blackstone Technology Group
Cash paid for acquisitions, net of cash acquired	$ 85.5
Business Acquisition, Description of Acquired Entity	headquartered in Arlington, Virginia
Business Combination, Reason for Business Combination	The acquisition expands the Company's capabilities in agile application development, cloud modernization and systems architecture, cybersecurity, user experience design and branding services to government clients
Goodwill, Acquired During Period	$ 61.1		$ 61.1
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets	$ 22.8
Intersys
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition		Oct. 17, 2019
Business Acquisition, Name of Acquired Entity		Intersys Consulting, LLC
Cash paid for acquisitions, net of cash acquired		$ 67.0
Business Acquisition, Description of Acquired Entity		headquartered in Austin, Texas
Business Combination, Reason for Business Combination		The acquisition expands the Company's capabilities in digital innovation and enterprise solutions
Goodwill		$ 41.4
Goodwill, Acquired During Period					$ 41.4
Business Acquisition, Goodwill, Expected Tax Deductible Amount		38.7
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets		$ 23.8
Minimum [Member] | BlackStone Federal
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	1 year
Minimum [Member] | Intersys
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life		3 years
Maximum [Member] | BlackStone Federal
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life	9 years
Maximum [Member] | Intersys
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life		10 years

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Goodwill and Identifiable Assets (Goodwill) (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
	Jan. 24, 2020	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Roll Forward]
Gross goodwill		$ 1,547.3	$ 1,486.9	$ 1,421.1
Translation adjustment		(0.7)	(0.3)
Apex
Goodwill [Roll Forward]
Gross goodwill		703.0	703.5	662.1
Translation adjustment		(0.5)
Oxford
Goodwill [Roll Forward]
Gross goodwill		230.3	230.5	230.8
Translation adjustment		(0.2)	(0.3)
ECS
Goodwill [Roll Forward]
Gross goodwill		614.0	552.9	$ 528.2
DHA
Goodwill [Roll Forward]
Goodwill, Acquired During Period			24.7
Intersys
Goodwill [Roll Forward]
Goodwill, Acquired During Period			$ 41.4
BlackStone Federal
Goodwill [Roll Forward]
Goodwill, Acquired During Period	$ 61.1	$ 61.1

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Goodwill and Identifiable Assets (Acquired Intangible Assets) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Intangible assets subject to amortization:
Gross Carrying Amount	$ 547.5	$ 524.7
Accumulated Amortization	331.8	307.1
Net Carrying Amount	215.7	217.6
Intangible assets not subject to amortization:
Trademarks, Carrying Amount	258.9	258.9
Intangible Assets, Gross (Excluding Goodwill)	806.4	783.6
Intangible Assets, Net (Excluding Goodwill)	474.6	476.5
Customer and Contractual Relationships
Intangible assets subject to amortization:
Gross Carrying Amount	403.6	384.9
Accumulated Amortization	200.4	179.9
Net Carrying Amount	$ 203.2	205.0
Customer and Contractual Relationships | Minimum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	2 months
Customer and Contractual Relationships | Maximum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	12 years 9 months
Contractor Relations
Intangible assets subject to amortization:
Gross Carrying Amount	$ 71.1	71.1
Accumulated Amortization	70.7	70.6
Net Carrying Amount	$ 0.4	0.5
Contractor Relations | Minimum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	2 years
Contractor Relations | Maximum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years
Backlog
Intangible assets subject to amortization:
Gross Carrying Amount	$ 28.3	25.0
Accumulated Amortization	25.9	23.9
Net Carrying Amount	$ 2.4	1.1
Backlog | Minimum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	1 year
Backlog | Maximum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	2 years 9 months
Noncompete Agreements
Intangible assets subject to amortization:
Gross Carrying Amount	$ 25.6	24.8
Accumulated Amortization	15.9	13.8
Net Carrying Amount	$ 9.7	11.0
Noncompete Agreements | Minimum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	2 years
Noncompete Agreements | Maximum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	7 years
In-use software
Intangible assets subject to amortization:
Gross Carrying Amount	$ 18.9	18.9
Accumulated Amortization	18.9	18.9
Net Carrying Amount	$ 0.0	$ 0.0
In-use software | Minimum [Member]
Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	6 years

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Goodwill and Identifiable Assets (Future Amortization Expense) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2019	$ 25.1
2020	41.0
2021	32.7
2022	28.0
2023	21.2
Thereafter	67.7
Net Carrying Amount	$ 215.7	$ 217.6

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Long-term Debt (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Senior Notes	$ 550.0	$ 550.0
Long-term Debt, Gross	1,040.8	1,040.8
Unamortized Debt Issuance Expense	7.9	8.5
Long-term Debt	1,032.9	1,032.3
Letters of Credit Outstanding, Amount	3.9
$250 Million Revolving Credit Facility, Due November 2024 [Member]
Debt Instrument [Line Items]
Secured Debt	0.0	0.0
Line of Credit Facility, Maximum Borrowing Capacity	250.0
$822 Million Term B Loan Facility, due April 2025 [Member] [Domain]
Debt Instrument [Line Items]
Secured Debt	$ 490.8	$ 490.8
Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.625%
Notes Payable to Banks [Member] | $250 Million Revolving Credit Facility, Due November 2024 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.25%
Notes Payable to Banks [Member] | $250 Million Revolving Credit Facility, Due November 2024 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Notes Payable to Banks [Member] | $822 Million Term B Loan Facility, due April 2025 [Member] [Domain] | Minimum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.20%
Notes Payable to Banks [Member] | $822 Million Term B Loan Facility, due April 2025 [Member] [Domain] | Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.75%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.35%
Notes Payable to Banks [Member] | Eurodollar [Member] | $250 Million Revolving Credit Facility, Due November 2024 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Notes Payable to Banks [Member] | Eurodollar [Member] | $250 Million Revolving Credit Facility, Due November 2024 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Notes Payable to Banks [Member] | Eurodollar [Member] | $822 Million Term B Loan Facility, due April 2025 [Member] [Domain] | Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%

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Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Other Commitments [Line Items]
Deferred Compensation Liability, Classified, Noncurrent	$ 12.2	$ 11.8

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Revenues (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Deferred Revenue	$ 12.1	$ 8.4

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Earnings Per Share Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Calculation of Basic and Diluted Earnings per Share [Abstract]
Net income		$ 48.8	$ 43.1	$ 92.6	$ 78.0
Weighted average number of common shares		52.5	52.8	52.7	52.7
Dilutive effect of stock-based awards		0.5	0.6	0.4	0.6
Number of shares used to compute diluted earnings per share		53.0	53.4	53.1	53.3
Basic		$ 0.93	$ 0.82	$ 1.76	$ 1.48
Diluted		$ 0.92	$ 0.81	$ 1.74	$ 1.46
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	[1]	0.5	0.2	0.3

[1] Anti-dilutive stock-based awards that were excluded from the calculation of the number of shares used to compute diluted earnings per share because they were anti-dilutive when applying the treasury-stock method.

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Segment Reporting (Segment Reporting Information) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues:
Revenues	$ 936.8	$ 972.3	$ 1,927.3	$ 1,896.0
Gross Profit:
Total Gross Profit	260.8	285.2	541.7	549.1
Operating Income (Loss):
Total Operating Income	76.0	73.3	146.9	136.0
Amortization of Intangible Assets	12.6	13.1	24.7	26.9
Apex
Revenues:
Revenues	576.9	628.5	1,206.0	1,234.6
Gross Profit:
Total Gross Profit	170.6	187.8	355.1	363.2
Operating Income (Loss):
Total Operating Income	66.0	72.9	133.1	133.9
Amortization of Intangible Assets	5.5	5.5	10.8	11.5
Oxford
Revenues:
Revenues	120.2	153.2	268.9	302.8
Gross Profit:
Total Gross Profit	46.4	62.5	105.7	121.4
Operating Income (Loss):
Total Operating Income	7.8	11.0	18.9	22.7
Amortization of Intangible Assets	0.1	1.0	0.3	2.0
ECS
Revenues:
Revenues	239.7	190.6	452.4	358.6
Gross Profit:
Total Gross Profit	43.8	34.9	80.9	64.5
Operating Income (Loss):
Total Operating Income	16.2	10.9	27.5	17.8
Amortization of Intangible Assets	7.0	6.6	13.6	13.4
Assignment | Apex
Revenues:
Revenues	483.8	533.5	1,010.1	1,053.3
Assignment | Oxford
Revenues:
Revenues	96.2	117.1	211.1	234.7
IT consulting | Apex
Revenues:
Revenues	85.3	79.5	174.9	151.9
IT consulting | Oxford
Revenues:
Revenues	11.1	14.3	24.3	26.1
Contract Revenue | Apex
Revenues:
Revenues	569.1	613.0	1,185.0	1,205.2
Contract Revenue | Oxford
Revenues:
Revenues	107.3	131.4	235.4	260.8
Permanent placement | Apex
Revenues:
Revenues	7.8	15.5	21.0	29.4
Permanent placement | Oxford
Revenues:
Revenues	12.9	21.8	33.5	42.0
Fixed-price Contract | ECS
Revenues:
Revenues	63.5	46.1	120.5	89.4
Time and materials Contract | ECS
Revenues:
Revenues	81.4	70.8	153.8	132.2
Cost-plus-fixed-fee Contract | ECS
Revenues:
Revenues	$ 94.8	$ 73.7	$ 178.1	$ 137.0

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Segment Reporting (Revenue by Geographical Areas) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues from External Customers [Line Items]
Revenues	$ 936.8	$ 972.3	$ 1,927.3	$ 1,896.0
Revenue as Percentage of Consolidated Revenue	100.00%	100.00%	100.00%	100.00%
Domestic
Revenues from External Customers [Line Items]
Revenues	$ 897.9	$ 929.8	$ 1,843.3	$ 1,810.9
Revenue as Percentage of Consolidated Revenue	95.80%	95.60%	95.60%	95.50%
Foreign
Revenues from External Customers [Line Items]
Revenues	$ 38.9	$ 42.5	$ 84.0	$ 85.1
Revenue as Percentage of Consolidated Revenue	4.20%	4.40%	4.40%	4.50%

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Segment Reporting Revenue by Customer Type (details) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue from External Customer [Line Items]
Revenues	$ 936.8	$ 972.3	$ 1,927.3	$ 1,896.0
Department of Defense and Intelligence Agencies
Revenue from External Customer [Line Items]
Revenues	127.1	107.6	242.0	203.6
Federal Civilian
Revenue from External Customer [Line Items]
Revenues	96.0	71.3	180.6	131.5
Other
Revenue from External Customer [Line Items]
Revenues	16.6	11.7	29.8	23.5
ECS
Revenue from External Customer [Line Items]
Revenues	$ 239.7	$ 190.6	$ 452.4	$ 358.6

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Fair Value Measurements (Fair Value Inputs, Liabilities, Quantitative Information) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Fair Value Inputs, Liabilities, Quantitative Information
Long-term Debt, Gross	$ 1,040.8	$ 1,040.8
Level 1 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value level 1 inputs	quoted prices in active markets for identical liabilities (Level 1 inputs)
Fair Value Measured at Net Asset Value Per Share [Member]
Fair Value Inputs, Liabilities, Quantitative Information
Deferred Compensation Plan Assets	$ 12.2	$ 11.8