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 nine months ended September 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 September 30, 2018
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	146,145		$	70,069		$	8,035	$	—		$	224,249
Operating expenses		124,546			59,399			7,514		7,148			198,607
Gross margin		21,599			10,670			521		(7,148	)		25,642
Corporate general & admin		—			—			—		10,279			10,279
Operating income (loss)		21,599			10,670			521		(17,427	)		15,363
Other (expense) income:
Interest expense		—			(7	)		—		(1,607	)		(1,614	)
Other (expense) income, net		(142	)		129			—		3,156			3,143
Total other (expense) income		(142	)		122			—		1,549			1,529
Income (loss) from continuing operations before income tax expense	$	21,457		$	10,792		$	521	$	(15,878	)	$	16,892

	Three Months Ended September 30, 2017
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	130,305	$	69,663		$	7,755	$	—		$	207,723
Operating expenses		112,996		59,155			7,109		5,463			184,723
Gross margin		17,309		10,508			646		(5,463	)		23,000
Corporate general & admin		—		—			—		7,979			7,979
Operating income (loss)		17,309		10,508			646		(13,442	)		15,021
Other income (expense):
Interest expense		—		(10	)		—		(1,767	)		(1,777	)
Other income, net		79		82			—		2,631			2,792
Total other income		79		72			—		864			1,015
Income (loss) from continuing operations before income tax expense	$	17,388	$	10,580		$	646	$	(12,578	)	$	16,036

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

	Nine Months Ended September 30, 2018
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	478,485	$	220,152		$	24,343	$	—		$	722,980
Operating expenses		386,649		181,697			22,356		17,757			608,459
Gross margin		91,836		38,455			1,987		(17,757	)		114,521
Corporate general & admin		—		—			—		30,300			30,300
Operating income (loss)		91,836		38,455			1,987		(48,057	)		84,221
Other income (expense):
Interest expense		—		(96	)		—		(5,115	)		(5,211	)
Gain on sale of operations, net		—		—			—		663			663
Other income, net		106		351			—		2,087			2,544
Total other income (expense)		106		255			—		(2,365	)		(2,004	)
Income (loss) from continuing operations before income tax expense	$	91,942	$	38,710		$	1,987	$	(50,422	)	$	82,217

	Nine Months Ended September 30, 2017
	Financial Services		Benefits and Insurance Services			National Practices			Corporate and Other			Total
Revenue	$	421,529	$	215,386		$	23,283		$	—		$	660,198
Operating expenses		348,236		179,174			21,351			16,848			565,609
Gross margin		73,293		36,212			1,932			(16,848	)		94,589
Corporate general & admin		—		—			—			25,979			25,979
Operating income (loss)		73,293		36,212			1,932			(42,827	)		68,610
Other income (expense):
Interest expense		—		(30	)		—			(4,956	)		(4,986	)
Gain on sale of operations, net		—		—			—			45			45
Other income (expense), net		122		298			(9	)		8,882			9,293
Total other income (expense)		122		268			(9	)		3,971			4,352
Income (loss) from continuing operations before income tax expense	$	73,415	$	36,480		$	1,923		$	(38,856	)	$	72,962