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Segment Disclosures | 6 Months Ended
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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 |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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