Note 16. Segment Disclosures

Our business units have been aggregated into three practice groups: Financial Services, Benefits and Insurance Services and National Practices. The business units have been aggregated based on the following factors: similarity of the products and services provided to clients; similarity of the regulatory environment in which they operate; and similarity of economic conditions affecting long-term performance. The business units are managed along these segment lines. A general description of services provided by each practice group is provided in the table below.

Financial Services

Benefits and Insurance Services

National Practices

• Accounting and Tax

• Government Healthcare Consulting

• Financial Advisory

• Valuation

• Risk & Advisory Services

• Group Health Benefits Consulting

• Payroll

• Property & Casualty

• Retirement Plan Services

• Managed Networking and Hardware Services

• Healthcare Consulting

Corporate and Other. Included in “Corporate and Other” are operating expenses that are not directly allocated to the individual business units. These expenses are primarily comprised of certain health care costs, gains or losses attributable to assets held in our non-qualified deferred compensation plan, share-based compensation, consolidation and integration charges, certain professional fees, certain advertising costs and other various expenses.

Accounting policies of the practice groups are the same as those described in Note 1, Basis of Presentation and Significant Accounting Policies, to the Annual Report on Form 10-K for the year ended December 31, 2017. Upon consolidation, intercompany accounts and transactions are eliminated, thus inter-segment revenue is not included in the measure of profit or loss for the practice groups. Performance of the practice groups is evaluated on operating income excluding those costs listed above, which are reported in the “Corporate and Other” segment.

Segment information for the three and six months ended June 30, 2018 and 2017 is presented below. We do not manage our assets on a segment basis, therefore segment assets are not presented below.

	Three Months Ended June 30, 2018
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	151,737		$	72,753		$	8,151	$	—		$	232,641
Operating expenses		129,070			61,165			7,567		7,300			205,102
Gross margin		22,667			11,588			584		(7,300	)		27,539
Corporate general & admin		—			—			—		9,993			9,993
Operating income (loss)		22,667			11,588			584		(17,293	)		17,546
Other (expense) income:
Interest expense		—			(15	)		—		(1,802	)		(1,817	)
Other (expense) income, net		(17	)		30			—		617			630
Total other (expense) income		(17	)		15			—		(1,185	)		(1,187	)
Income (loss) from continuing operations before income tax expense	$	22,650		$	11,603		$	584	$	(18,478	)	$	16,359

	Three Months Ended June 30, 2017
	Financial Services		Benefits and Insurance Services			National Practices			Corporate and Other			Total
Revenue	$	132,591	$	70,559		$	7,866		$	—		$	211,016
Operating expenses		115,851		59,877			7,235			5,157			188,120
Gross margin		16,740		10,682			631			(5,157	)		22,896
Corporate general & admin		—		—			—			9,232			9,232
Operating income (loss)		16,740		10,682			631			(14,389	)		13,664
Other income (expense):
Interest expense		—		(9	)		—			(1,683	)		(1,692	)
Gain on sale of operations, net		—		—			—			23			23
Other income (expense), net		28		120			(9	)		3,625			3,764
Total other income (expense)		28		111			(9	)		1,965			2,095
Income (loss) from continuing operations before income tax expense	$	16,768	$	10,793		$	622		$	(12,424	)	$	15,759

Segment information for the six months ended June 30, 2018 and 2017 was as follows (in thousands):

	Six Months Ended June 30, 2018
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	332,340	$	150,083		$	16,308	$	—		$	498,731
Operating expenses		262,103		122,298			14,842		10,609			409,852
Gross margin		70,237		27,785			1,466		(10,609	)		88,879
Corporate general & admin		—		—			—		20,021			20,021
Operating income (loss)		70,237		27,785			1,466		(30,630	)		68,858
Other income (expense):
Interest expense		—		(89	)		—		(3,508	)		(3,597	)
Gain on sale of operations, net		—		—			—		663			663
Other income (expense), net		248		222			—		(1,069	)		(599	)
Total other income (expense)		248		133			—		(3,914	)		(3,533	)
Income (loss) from continuing operations before income tax expense	$	70,485	$	27,918		$	1,466	$	(34,544	)	$	65,325

	Six Months Ended June 30, 2017
	Financial Services		Benefits and Insurance Services			National Practices			Corporate and Other			Total
Revenue	$	291,224	$	145,723		$	15,528		$	—		$	452,475
Operating expenses		235,240		120,019			14,242			11,385			380,886
Gross margin		55,984		25,704			1,286			(11,385	)		71,589
Corporate general & admin		—		—			—			18,000			18,000
Operating income (loss)		55,984		25,704			1,286			(29,385	)		53,589
Other income (expense):
Interest expense		—		(20	)		—			(3,189	)		(3,209	)
Gain on sale of operations, net		—		—			—			45			45
Other income (expense), net		43		216			(9	)		6,251			6,501
Total other income (expense)		43		196			(9	)		3,107			3,337
Income (loss) from continuing operations before income tax expense	$	56,027	$	25,900		$	1,277		$	(26,278	)	$	56,926