Segment Disclosures

9 Months Ended

Sep. 30, 2022

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	Employee Benefits Consulting	Information Technology Managed Networking and Hardware Services
Financial Advisory	Payroll / Human Capital Management	Healthcare Consulting
Valuation	Property and Casualty Insurance
Risk and Advisory Services	Retirement and Investment Services
Government 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 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, 2021. 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 in the “Corporate and Other”.

Segment information for the three and nine months ended September 30, 2022 and 2021 is presented below. We do not manage our assets on a segment basis, therefore segment assets are not presented belowThe following table disaggregates our revenue by source (in thousands):

	Three Months Ended September 30, 2022
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	259,998	—		—		$	259,998
Core benefits and insurance services	—		88,364		—		88,364
Non-core benefits and insurance services	—		3,703		—		3,703
Managed networking, hardware services	—		—		8,514		8,514
National practices consulting	—		—		2,683		2,683
Total revenue	$	259,998	$	92,067	$	11,197	$	363,262

	Three Months Ended September 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	187,232	—		—		$	187,232
Core benefits and insurance services	—		83,009		—		83,009
Non-core benefits and insurance services	—		2,788		—		2,788
Managed networking, hardware services	—		—		7,088		7,088
National practices consulting	—		—		2,602		2,602
Total revenue	$	187,232	$	85,797	$	9,690	$	282,719

	Nine Months Ended September 30, 2022
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	808,052	—		—		$	808,052
Core benefits and insurance services	—		264,666		—		264,666
Non-core benefits and insurance services	—		11,595		—		11,595
Managed networking, hardware services	—		—		24,768		24,768
National practices consulting	—		—		7,855		7,855
Total revenue	$	808,052	$	276,261	$	32,623	$	1,116,936

	Nine Months Ended September 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Consolidated
Accounting, tax, advisory and consulting	$	577,970	—		—		$	577,970
Core benefits and insurance services	—		246,367		—		246,367
Non-core benefits and insurance services	—		9,289		—		9,289
Managed networking, hardware services	—		—		20,952		20,952
National practices consulting	—		—		7,519		7,519
Total revenue	$	577,970	$	255,656	$	28,471	$	862,097

Segment information for the three months ended September 30, 2022 and 2021 was as follows (in thousands):

	Three Months Ended September 30, 2022
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	259,998	$	92,067	$	11,197	$	—	$	363,262
Operating expenses	220,337		73,321		9,743		2,616		306,017
Gross margin	39,661		18,746		1,454		(2,616)		57,245
Corporate general and administrative expenses	—		—		—		15,893		15,893
Operating income (loss)	39,661		18,746		1,454		(18,509)		41,352
Other income (expense):
Interest expense	—		(4)		—		(2,301)		(2,305)
Gain on sale of operations, net	176		—		—		—		176
Other income (expense), net	103		2,402		8		(5,131)		(2,618)
Total other income (expense), net	279		2,398		8		(7,432)		(4,747)
Income (loss) from continuing operations before income tax expense	$	39,940	$	21,144	$	1,462	$	(25,941)	$	36,605

	Three Months Ended September 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	187,232	$	85,797	$	9,690	$	—	$	282,719
Operating expenses	156,178		69,039		8,514		4,597		238,328
Gross margin	31,054		16,758		1,176		(4,597)		44,391
Corporate general and administrative expenses	—		—		—		13,035		13,035
Operating income (loss)	31,054		16,758		1,176		(17,632)		31,356
Other income (expense):
Interest expense	—		—		—		(1,016)		(1,016)
Other income (expense), net	18		(9)		1		(1,143)		(1,133)
Total other income (expense), net	18		(9)		1		(2,159)		(2,149)
Income (loss) from continuing operations before income tax expense	$	31,072	$	16,749	$	1,177	$	(19,791)	$	29,207

Segment information for the nine months ended September 30, 2022 and 2021 was as follows (in thousands):

	Nine Months Ended September 30, 2022
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	808,052	$	276,261	$	32,623	$	—	$	1,116,936
Operating expenses (income)	639,780		220,998		29,218		(3,944)		886,052
Gross margin	168,272		55,263		3,405		3,944		230,884
Corporate general and administrative expenses	—		—		—		43,128		43,128
Operating income (loss)	168,272		55,263		3,405		(39,184)		187,756
Other income (expense):
Interest expense	—		(5)		—		(5,204)		(5,209)
Gain on sale of operations, net	311		—		—		—		311
Other income (expense), net	274		2,366		9		(27,568)		(24,919)
Total other income (expense), net	585		2,361		9		(32,772)		(29,817)
Income (loss) from continuing operations before income tax expense	$	168,857	$	57,624	$	3,414	$	(71,956)	$	157,939

	Nine Months Ended September 30, 2021
	Financial Services		Benefits and Insurance Services		National Practices		Corporate and Other		Total
Revenue	$	577,970	$	255,656	$	28,471	$	—	$	862,097
Operating expenses	448,844		203,748		25,542		21,099		699,233
Gross margin	129,126		51,908		2,929		(21,099)		162,864
Corporate general and administrative expenses	—		—		—		41,334		41,334
Legal settlement, net	—		—		—		30,468		30,468
Operating income (loss)	129,126		51,908		2,929		(92,901)		91,062
Other income (expense):
Interest expense	—		—		—		(2,852)		(2,852)
Gain on sale of operations, net	—		6,385		—		—		6,385
Other income, net	310		863		1		10,855		12,029
Total other income, net	310		7,248		1		8,003		15,562
Income (loss) from continuing operations before income tax expense	$	129,436	$	59,156	$	2,930	$	(84,898)	$	106,624