Segment Disclosures

6 Months Ended

Jun. 30, 2019

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, 2018. 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, 2019 and 2018 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, 2019
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	154,373		$	72,127		$	8,998	$	—		$	235,498
Operating expenses		128,158			61,075			8,204		711			198,148
Gross margin		26,215			11,052			794		(711	)		37,350
Corporate general & admin		—			—			—		10,566			10,566
Operating income (loss)		26,215			11,052			794		(11,277	)		26,784
Other (expense) income:
Interest expense		—			(14	)		—		(1,573	)		(1,587	)
Gain on sale of operations, net		50			—			—		—			50
Other (expense) income, net		(66	)		174			1		(3,420	)		(3,311	)
Total other (expense) income		(16	)		160			1		(4,993	)		(4,848	)
Income (loss) from continuing operations before income tax expense	$	26,199		$	11,212		$	795	$	(16,270	)	$	21,936

	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

Segment information for the six months ended June 30, 2019 and 2018 was as follows (in thousands):

	Six Months Ended June 30, 2019
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	339,517		$	148,382		$	17,597	$	—		$	505,496
Operating expenses		262,616			122,446			16,204		12,378			413,644
Gross margin		76,901			25,936			1,393		(12,378	)		91,852
Corporate general & admin		—			—			—		22,246			22,246
Operating income (loss)		76,901			25,936			1,393		(34,624	)		69,606
Other income (expense):
Interest expense		—			(24	)		—		(2,964	)		(2,988	)
Gain on sale of operations, net		547			—			—		—			547
Other (expense) income, net		(202	)		195			1		5,955			5,949
Total other income		345			171			1		2,991			3,508
Income (loss) from continuing operations before income tax expense	$	77,246		$	26,107		$	1,394	$	(31,633	)	$	73,114

	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