Segment Disclosures

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Disclosures

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	Group Health Benefits Consulting	Managed Networking and Hardware Services
Government Healthcare Consulting	Payroll	Healthcare Consulting
Financial Advisory	Property and Casualty
Valuation	Retirement Plan Services
Risk & Advisory Services

Corporate and Other - Included in “Corporate and Other” are operating expenses that are not directly allocated to the individual business units. These expenses primarily consist 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, 2020. 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 income (loss) from continuing operations before income tax expense (benefit) excluding those costs listed above, which are reported as “Corporate and Other”.

Segment information for the three and six months ended June 30, 2021 and 2020 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 June 30, 2021
	Financial Services		Benefits & Insurance		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	186,589	—		—		$	186,589
Core benefits and insurance services	—		79,288		—		79,288
Non-core benefits and insurance services	—		3,332		—		3,332
Managed networking, hardware services	—		—		6,969		6,969
National practices consulting	—		—		2,470		2,470
Total revenue	$	186,589	$	82,620	$	9,439	$	278,648

	Three Months Ended June 30, 2020
	Financial Services		Benefits & Insurance		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	154,083	—		—		$	154,083
Core benefits and insurance services	—		71,393		—		71,393
Non-core benefits and insurance services	—		2,547		—		2,547
Managed networking, hardware services	—		—		6,581		6,581
National practices consulting	—		—		2,339		2,339
Total revenue	$	154,083	$	73,940	$	8,920	$	236,943

	Six Months Ended June 30, 2021
	Financial Services		Benefits & Insurance		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	390,738	—		—		$	390,738
Core Benefits and Insurance Services	—		163,358		—		163,358
Non-core Benefits and Insurance Services	—		6,501		—		6,501
Managed networking, hardware services	—		—		13,864		13,864
National Practices consulting	—		—		4,917		4,917
Total revenue	$	390,738	$	169,859	$	18,781	$	579,378

	Six Months Ended June 30, 2020
	Financial Services		Benefits & Insurance		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	342,860	—		—		$	342,860
Core Benefits and Insurance Services	—		147,865		—		147,865
Non-core Benefits and Insurance Services	—		5,687		—		5,687
Managed networking, hardware services	—		—		13,156		13,156
National Practices consulting	—		—		4,830		4,830
Total revenue	$	342,860	$	153,552	$	17,986	$	514,398

Segment information for the three months ended June 30, 2021 and 2020 was as follows (in thousands):

	Three Months Ended June 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	186,589	$	82,620	$	9,439	$	—	$	278,648
Operating expenses	150,920		67,776		8,487		9,751		236,934
Gross margin	35,669		14,844		952		(9,751)		41,714
Corporate general and administrative expenses	—		—		—		13,816		13,816
Legal settlement, net	—		—		—		30,468		30,468
Operating income (loss)	35,669		14,844		952		(54,035)		(2,570)
Other income (expense):
Interest expense	—		—		—		(959)		(959)
Gain on sale of operations, net	—		6,385		—		—		6,385
Other income, net	194		698		—		7,481		8,373
Total other income, net	194		7,083		—		6,522		13,799
Income (loss) from continuing operations before income tax expense	$	35,863	$	21,927	$	952	$	(47,513)	$	11,229

	Three Months Ended June 30, 2020
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	154,083	$	73,940	$	8,920	$	—	$	236,943
Operating expenses	127,417		61,283		7,990		12,326		209,016
Gross margin	26,666		12,657		930		(12,326)		27,927
Corporate general and administrative expenses	—		—		—		11,160		11,160
Operating income (loss)	26,666		12,657		930		(23,486)		16,767
Other income (expense):
Interest expense	—		(9)		—		(2,065)		(2,074)
Gain on sale of operations, net	11		46		—		—		57
Other income, net	27		130		—		13,179		13,336
Total other income, net	38		167		—		11,114		11,319
Income (loss) from continuing operations before income tax expense	$	26,704	$	12,824	$	930	$	(12,372)	$	28,086

Segment information for the six months ended June 30, 2021 and 2020 was as follows (in thousands):

	Six Months Ended June 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	390,738	$	169,859	$	18,781	$	—	$	579,378
Operating expenses	292,666		134,709		17,028		16,502		460,905
Gross margin	98,072		35,150		1,753		(16,502)		118,473
Corporate general and administrative expenses	—		—		—		28,299		28,299
Legal settlement, net	—		—		—		30,468		30,468
Operating income (loss)	98,072		35,150		1,753		(75,269)		59,706
Other income:
Interest expense	—		—		—		(1,836)		(1,836)
Gain on sale of operations, net	—		6,385		—		—		6,385
Other income, net	292		872		—		11,998		13,162
Total other income, net	292		7,257		—		10,162		17,711
Income (loss) from continuing operations before income tax expense	$	98,364	$	42,407	$	1,753	$	(65,107)	$	77,417

	Six Months Ended June 30, 2020
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	342,860	$	153,552	$	17,986	$	—	$	514,398
Operating expenses	266,015		126,506		16,273		49		408,843
Gross margin	76,845		27,046		1,713		(49)		105,555
Corporate general and administrative expenses	—		—		—		21,649		21,649
Operating income (loss)	76,845		27,046		1,713		(21,698)		83,906
Other (expense) income:
Interest expense	—		(20)		—		(3,173)		(3,193)
Gain on sale of operations, net	51		101		—		—		152
Other income (expense), net	46		226		1		(2,737)		(2,464)
Total other income (expense), net	97		307		1		(5,910)		(5,505)
Income (loss) from continuing operations before income tax expense	$	76,942	$	27,353	$	1,714	$	(27,608)	$	78,401