Note 14. 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 the Company’s 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, Organization and Summary of Significant Accounting Policies, to the Annual Report on Form 10-K for the year ended December 31, 2016. 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 months ended June 30, 2017 and 2016 was as follows (in thousands):

	Three Months Ended June 30, 2017
	Financial Services		Benefits and Insurance Services			National Practices			Corporate and Other			Total
Revenue	$	132,591	$	70,559		$	7,866		$	—		$	211,016
Operating expenses		115,851		59,877			7,235			5,157			188,120
Gross margin		16,740		10,682			631			(5,157	)		22,896
Corporate general & admin		—		—			—			9,232			9,232
Operating income (loss)		16,740		10,682			631			(14,389	)		13,664
Other income (expense):
Interest expense		—		(9	)		—			(1,683	)		(1,692	)
Gain on sale of operations, net		—		—			—			23			23
Other income (expense), net		28		120			(9	)		3,625			3,764
Total other income (expense)		28		111			(9	)		1,965			2,095
Income (loss) from continuing operations before income tax expense	$	16,768	$	10,793		$	622		$	(12,424	)	$	15,759

	Three Months Ended June 30, 2016
	Financial Services			Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	122,856		$	66,484		$	7,675	$	—		$	197,015
Operating expenses		106,987			56,344			7,005		3,660			173,996
Gross margin		15,869			10,140			670		(3,660	)		23,019
Corporate general & admin		—			—			—		8,346			8,346
Operating income (loss)		15,869			10,140			670		(12,006	)		14,673
Other income (expense):
Interest expense		—			(10	)		—		(1,723	)		(1,733	)
Gain on sale of operations, net		—			—			—		50			50
Other (expense) income, net		(27	)		84			1		645			703
Total other (expense) income		(27	)		74			1		(1,028	)		(980	)
Income (loss) from continuing operations before income tax expense	$	15,842		$	10,214		$	671	$	(13,034	)	$	13,693

Segment information for the six months ended June 30, 2017 and 2016 was as follows (in thousands):

	Six Months Ended June 30, 2017
	Financial Services		Benefits and Insurance Services			National Practices			Corporate and Other			Total
Revenue	$	291,224	$	145,723		$	15,528		$	—		$	452,475
Operating expenses		235,240		120,019			14,242			11,385			380,886
Gross margin		55,984		25,704			1,286			(11,385	)		71,589
Corporate general & admin		—		—			—			18,000			18,000
Operating income (loss)		55,984		25,704			1,286			(29,385	)		53,589
Other income (expense):
Interest expense		—		(20	)		—			(3,189	)		(3,209	)
Gain on sale of operations, net		—		—			—			45			45
Other income (expense), net		43		216			(9	)		6,251			6,501
Total other income (expense)		43		196			(9	)		3,107			3,337
Income (loss) from continuing operations before income tax expense	$	56,027	$	25,900		$	1,277		$	(26,278	)	$	56,926

	Six Months Ended June 30, 2016
	Financial Services		Benefits and Insurance Services			National Practices		Corporate and Other			Total
Revenue	$	275,063	$	130,811		$	15,379	$	—		$	421,253
Operating expenses		220,484		110,024			13,882		7,723			352,113
Gross margin		54,579		20,787			1,497		(7,723	)		69,140
Corporate general & admin		—		—			—		18,591			18,591
Operating income (loss)		54,579		20,787			1,497		(26,314	)		50,549
Other income (expense):
Interest expense		—		(20	)		—		(3,239	)		(3,259	)
Gain on sale of operations, net		—		—			—		151			151
Other income, net		227		158			1		2,464			2,850
Total other income (expense)		227		138			1		(624	)		(258	)
Income (loss) from continuing operations before income tax expense	$	54,806	$	20,925		$	1,498	$	(26,938	)	$	50,291