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SEGMENT DISCLOSURES | 6 Months Ended
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Jun. 30, 2024
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, 2023. 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) before income tax expense (benefit) excluding those costs listed above, which are reported in the “Corporate and Other”. Segment information for the three and six months ended June 30, 2024 and 2023 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, 2024 |
| Financial Services |  | Benefits and Insurance Services |  | National Practices |  | Consolidated |
Accounting, tax, advisory and consulting | $ | 309,233 |  |  | — |  | — |  | $ | 309,233 |  |
Core benefits and insurance services | — |  | 93,533 |  |  | — |  | 93,533 |  |
Non-core benefits and insurance services | — |  | 3,886 |  |  | — |  | 3,886 |  |
Managed networking, hardware services | — |  | — |  | 10,250 |  |  | 10,250 |  |
National practices consulting | — |  | — |  | 3,110 |  |  | 3,110 |  |
Total revenue | $ | 309,233 |  |  | $ | 97,419 |  |  | $ | 13,360 |  |  | $ | 420,012 |  |
| Three Months Ended June 30, 2023
| Financial Services |  | Benefits and Insurance Services |  | National Practices |  | Consolidated
Accounting, tax, advisory and consulting | $ | 290,930 |  |  | — |  | — |  | $ | 290,930 |
Core benefits and insurance services | — |  | 91,031 |  |  | — |  | 91,031 |
Non-core benefits and insurance services | — |  | 4,807 |  |  | — |  | 4,807 |
Managed networking, hardware services | — |  | — |  | 9,067 |  |  | 9,067 |
National practices consulting | — |  | — |  | 2,667 |  |  | 2,667 |
Total revenue | $ | 290,930 |  |  | $ | 95,838 |  |  | $ | 11,734 |  |  | $ | 398,502 |
| Six Months Ended June 30, 2024 |
| Financial Services |  | Benefits and Insurance Services |  | National Practices |  | Consolidated |
Accounting, tax, advisory and consulting | $ | 681,863 |  |  | — |  | — |  | $ | 681,863 |  |
Core benefits and insurance services | — |  | 198,738 |  |  | — |  | 198,738 |  |
Non-core benefits and insurance services | — |  | 7,089 |  |  | — |  | 7,089 |  |
Managed networking, hardware services | — |  | — |  | 20,438 |  |  | 20,438 |  |
National practices consulting | — |  | — |  | 6,181 |  |  | 6,181 |  |
Total revenue | $ | 681,863 |  |  | $ | 205,827 |  |  | $ | 26,619 |  |  | $ | 914,309 |  |
| Six Months Ended June 30, 2023 |
| Financial Services |  | Benefits and Insurance Services |  | National Practices |  | Consolidated |
Accounting, tax, advisory and consulting | $ | 634,016 |  |  | — |  | — |  | $ | 634,016 |  |
Core benefits and insurance services | — |  | 187,648 |  |  | — |  | 187,648 |  |
Non-core benefits and insurance services | — |  | 8,244 |  |  | — |  | 8,244 |  |
Managed networking, hardware services | — |  | — |  | 18,021 |  |  | 18,021 |  |
National practices consulting | — |  | — |  | 5,179 |  |  | 5,179 |  |
Total revenue | $ | 634,016 |  |  | $ | 195,892 |  |  | $ | 23,200 |  |  | $ | 853,108 |  |
Segment information for the three months ended June 30, 2024 and 2023 was as follows (in thousands):
| Three Months Ended June 30, 2024 |
| Financial Services |  | Benefits and Insurance Services |  | National Practices |  | Corporate and Other |  | Total |
Revenue | $ | 309,233 |  |  | $ | 97,419 |  |  | $ | 13,360 |  |  | $ | — |  |  | $ | 420,012 |  |
Operating expenses | 262,809 |  |  | 83,243 |  |  | 12,028 |  |  | 8,288 |  |  | 366,368 |  |
Gross margin | 46,424 |  |  | 14,176 |  |  | 1,332 |  |  | (8,288) |  |  | 53,644 |  |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | 22,050 |  |  | 22,050 |  |
Operating income (loss) | 46,424 |  |  | 14,176 |  |  | 1,332 |  |  | (30,338) |  |  | 31,594 |  |
Other income (expense): |  |  |  |  |  |  |  |  |  |
Interest expense | — |  |  | — |  |  | — |  |  | (5,884) |  |  | (5,884) |  |
Other income, net | 128 |  |  | 43 |  |  | (4) |  |  | 2,316 |  |  | 2,483 |  |
Total other income (expense), net | 128 |  |  | 43 |  |  | (4) |  |  | (3,568) |  |  | (3,401) |  |
Income (loss) before income tax expense | $ | 46,552 |  |  | $ | 14,219 |  |  | $ | 1,328 |  |  | $ | (33,906) |  |  | $ | 28,193 |  |
| Three Months Ended June 30, 2023 |
| Financial Services |  | Benefits and Insurance Services |  | National Practices |  | Corporate and Other |  | Total |
Revenue | $ | 290,930 |  |  | $ | 95,838 |  |  | $ | 11,734 |  |  | $ | — |  |  | $ | 398,502 |  |
Operating expenses | 243,445 |  |  | 78,374 |  |  | 10,545 |  |  | 11,623 |  |  | 343,987 |  |
Gross margin | 47,485 |  |  | 17,464 |  |  | 1,189 |  |  | (11,623) |  |  | 54,515 |  |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | 15,793 |  |  | 15,793 |  |
Operating income (loss) | 47,485 |  |  | 17,464 |  |  | 1,189 |  |  | (27,416) |  |  | 38,722 |  |
Other income (expense): |  |  |  |  |  |  |  |  |  |
Interest expense | — |  |  | — |  |  | — |  |  | (5,534) |  |  | (5,534) |  |
Other income, net | 235 |  |  | 153 |  |  | 1 |  |  | 5,032 |  |  | 5,421 |  |
Total other income (loss), net | 235 |  |  | 153 |  |  | 1 |  |  | (502) |  |  | (113) |  |
Income (loss) before income tax expense | $ | 47,720 |  |  | $ | 17,617 |  |  | $ | 1,190 |  |  | $ | (27,918) |  |  | $ | 38,609 |  |
Segment information for the six months ended June 30, 2024 and 2023 was as follows (in thousands):
| Six Months Ended June 30, 2024 |
| Financial Services |  | Benefits and Insurance Services |  | National Practices |  | Corporate and Other |  | Total |
Revenue | $ | 681,863 |  |  | $ | 205,827 |  |  | $ | 26,619 |  |  | $ | — |  |  | $ | 914,309 |  |
Operating expenses | 528,370 |  |  | 166,880 |  |  | 23,961 |  |  | 23,642 |  |  | 742,853 |  |
Gross margin | 153,493 |  |  | 38,947 |  |  | 2,658 |  |  | (23,642) |  |  | 171,456 |  |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | 40,761 |  |  | 40,761 |  |
Operating income (loss) | 153,493 |  |  | 38,947 |  |  | 2,658 |  |  | (64,403) |  |  | 130,695 |  |
Other income (expense): |  |  |  |  |  |  |  |  |  |
Interest expense | — |  |  | — |  |  | — |  |  | (10,395) |  |  | (10,395) |  |
Other income, net | 214 |  |  | 87 |  |  | (4) |  |  | 11,610 |  |  | 11,907 |  |
Total other income (expense), net | 214 |  |  | 87 |  |  | (4) |  |  | 1,215 |  |  | 1,512 |  |
Income (loss) before income tax expense | $ | 153,707 |  |  | $ | 39,034 |  |  | $ | 2,654 |  |  | $ | (63,188) |  |  | $ | 132,207 |  |
| Six Months Ended June 30, 2023 |
| Financial Services |  | Benefits and Insurance Services |  | National Practices |  | Corporate and Other |  | Total |
Revenue | $ | 634,016 |  |  | $ | 195,892 |  |  | $ | 23,200 |  |  | $ | — |  |  | $ | 853,108 |  |
Operating expenses (income) | 487,888 |  |  | 155,297 |  |  | 21,128 |  |  | 20,685 |  |  | 684,998 |  |
Gross margin | 146,128 |  |  | 40,595 |  |  | 2,072 |  |  | (20,685) |  |  | 168,110 |  |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | 31,391 |  |  | 31,391 |  |
Operating income (loss) | 146,128 |  |  | 40,595 |  |  | 2,072 |  |  | (52,076) |  |  | 136,719 |  |
Other income (expense): |  |  |  |  |  |  |  |  |  |
Interest expense | — |  |  | (1) |  |  | — |  |  | (9,174) |  |  | (9,175) |  |
Gain on sale of operations, net | 99 |  |  | — |  |  | — |  |  | — |  |  | 99 |  |
Other income (expense), net | 490 |  |  | 330 |  |  | 1 |  |  | 9,712 |  |  | 10,533 |  |
Total other income (expense), net | 589 |  |  | 329 |  |  | 1 |  |  | 538 |  |  | 1,457 |  |
Income (loss) before income tax expense | $ | 146,717 |  |  | $ | 40,924 |  |  | $ | 2,073 |  |  | $ | (51,538) |  |  | $ | 138,176 |  |

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