Segment Disclosures

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Disclosures

Note 13. 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, stock-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, 2019. 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, 2020 and 2019 is presented below. We do not manage our assets on a segment basis, therefore segment assets are not presented below.

The following table disaggregates our revenue by source (in thousands):

	Three Months Ended September 30, 2020
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	155,499	$	—	$	—	$	155,499
Core Benefits and Insurance Services		—		71,497		—		71,497
Non-core Benefits and Insurance Services		—		2,384		—		2,384
Managed networking, hardware services		—		—		6,592		6,592
National Practices consulting		—		—		2,417		2,417
Total revenue	$	155,499	$	73,881	$	9,009	$	238,389

	Three Months Ended September 30, 2019
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	153,794	$	—	$	—	$	153,794
Core Benefits and Insurance		—		73,409		—		73,409
Non-core Benefits and Insurance		—		3,551		—		3,551
Managed networking, hardware services		—		—		6,553		6,553
National Practices consulting		—		—		2,483		2,483
Total revenue	$	153,794	$	76,960	$	9,036	$	239,790

	Nine Months Ended September 30, 2020
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	498,359	$	—	$	—	$	498,359
Core Benefits and Insurance Services		—		219,362		—		219,362
Non-core Benefits and Insurance Services		—		8,071		—		8,071
Managed networking, hardware services		—		—		19,748		19,748
National Practices consulting		—		—		7,247		7,247
Total revenue	$	498,359	$	227,433	$	26,995	$	752,787

	Nine Months Ended September 30, 2019
	Financial		Benefits &		National
	Services		Insurance		Practices		Consolidated
Accounting, tax, advisory and consulting	$	493,311	$	—	$	—	$	493,311
Core Benefits and Insurance Services		—		216,394		—		216,394
Non-core Benefits and Insurance Services		—		8,948		—		8,948
Managed networking, hardware services		—		—		19,499		19,499
National Practices consulting		—		—		7,134		7,134
Total revenue	$	493,311	$	225,342	$	26,633	$	745,286

Segment information for the three months ended September 30, 2020 and 2019 was as follows (in thousands):

	Three Months Ended September 30, 2020
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	155,499		$	73,881		$	9,009	$	—		$	238,389
Operating expenses		129,922			62,013			8,070		4,755			204,760
Gross margin		25,577			11,868			939		(4,755	)		33,629
Corporate general & admin		—			—			—		11,339			11,339
Operating income (loss)		25,577			11,868			939		(16,094	)		22,290
Other income (expense):
Interest expense		—			(10	)		—		(964	)		(974	)
Gain (loss) on sale of operations, net		(76	)		2			—		—			(74	)
Other income, net		(14	)		(36	)		—		5,964			5,914
Total other income (expense)		(90	)		(44	)		0		5,000			4,866
Income (loss) from continuing operations before    income tax expense	$	25,487		$	11,824		$	939	$	(11,094	)	$	27,156

	Three Months Ended September 30, 2019
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	153,794	$	76,960		$	9,036	$	—		$	239,790
Operating expenses		128,231		63,390			8,104		9,421			209,146
Gross margin		25,563		13,570			932		(9,421	)		30,644
Corporate general & admin		—		—			—		11,670			11,670
Operating income (loss)		25,563		13,570			932		(21,091	)		18,974
Other income (expense):
Interest expense		—		(14	)		—		(1,507	)		(1,521	)
Gain (loss) on sale of operations, net		16		—			—		(161	)		(145	)
Other income, net		14		9			—		6,744			6,767
Total other income (expense)		30		(5	)		0		5,076			5,101
Income (loss) from continuing operations before    income tax expense	$	25,593	$	13,565		$	932	$	(16,015	)	$	24,075

Segment information for the nine months ended September 30, 2020 and 2019 was as follows (in thousands):

	Nine Months Ended September 30, 2020
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	498,359		$	227,433		$	26,995	$	—		$	752,787
Operating expenses		395,937			188,519			24,343		4,804			613,603
Gross margin		102,422			38,914			2,652		(4,804	)		139,184
Corporate general & admin		—			—			—		32,988			32,988
Operating income (loss)		102,422			38,914			2,652		(37,792	)		106,196
Other income:
Interest expense		—			(30	)		—		(4,137	)		(4,167	)
Gain (loss) on sale of operations, net		(25	)		103			—		—			78
Other (expense) income, net		32			190			1		3,227			3,450
Total other income		7			263			1		(910	)		(639	)
Income (loss) from continuing operations before    income tax expense	$	102,429		$	39,177		$	2,653	$	(38,702	)	$	105,557

	Nine Months Ended September 30, 2019
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	493,311		$	225,342		$	26,633	$	—		$	745,286
Operating expenses		390,847			185,836			24,308		21,799			622,790
Gross margin		102,464			39,506			2,325		(21,799	)		122,496
Corporate general & admin		—			—			—		33,916			33,916
Operating income (loss)		102,464			39,506			2,325		(55,715	)		88,580
Other income:
Interest expense		—			(38	)		—		(4,471	)		(4,509	)
Gain (loss) on sale of operations, net		563			—			—		(161	)		402
Other (expense) income, net		(188	)		204			1		12,699			12,716
Total other income		375			166			1		8,067			8,609
Income (loss) from continuing operations before    income tax expense	$	102,839		$	39,672		$	2,326	$	(47,648	)	$	97,189