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Segment Information | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Segment Information | Segment Information Segments are defined as components of a company that engage in business activities from which they may earn revenues and incur expenses, and for which separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker, who is our chief executive officer, manages the business under three operating segments, which are our reportable segments: Healthcare, Education, and Commercial. •Healthcare Our Healthcare segment serves acute care providers, including national and regional health systems; academic health systems; community health systems; the federal health system; and public, children’s and critical access hospitals, and non-acute care providers, including physician practices and medical groups; payors; and long-term care or post-acute providers. Our healthcare-focused services and products include financial and operational performance improvement consulting, which spans revenue cycle, cost and care delivery transformation; digital offerings, spanning technology and analytic-related services, including enterprise health record (“EHR”), enterprise resource planning (“ERP”) and enterprise performance management (“EPM”), customer relationship management (“CRM”), data management and technology managed services, and a portfolio of software products; organizational transformation; revenue cycle managed services and outsourcing; financial and capital advisory consulting; and strategy and innovation consulting. •Education Our Education segment serves public and private colleges and universities, research institutes and other education-related organizations. Our education and research-focused services and products include our digital offerings, spanning technology and analytic-related services, including student information systems, ERP and EPM, CRM, data management and technology managed services and our Huron Research Suite product suite (the leading software suite designed to facilitate and improve research administration service delivery and compliance); our research-focused consulting and managed services; and our strategy and operations consulting services, which span finance, accounting, operations and philanthropy functions, organization and talent strategy, and student and academic strategy. •Commercial Our Commercial segment is focused on serving industries and organizations facing significant disruption and regulatory change by helping them adapt to rapidly changing environments and accelerate business transformation. Our Commercial professionals work primarily with six primary buyers: the chief executive officer, the chief financial officer, the chief strategy officer, the chief human resources officer, the chief operating officer, and organizational advisors, including lenders and law firms. We have a deep focus on serving organizations in the financial services, energy and utilities, industrials and manufacturing industries and the public sector while opportunistically serving commercial industries more broadly, including professional and business services, life sciences, consumer products, and nonprofit. Our Commercial professionals use their deep industry, functional and technical expertise to deliver our digital services and software products, financial advisory (special situation advisory and corporate finance advisory) services, and strategy and innovation consulting services. Segment operating income consists of the revenues generated by a segment, less operating expenses that are incurred directly by the segment. We manage our segments on the basis of revenues before reimbursable expenses, which we believe is the most accurate reflection of our services because it eliminates the effect of reimbursable expenses that we bill to our clients at cost. Unallocated corporate expenses include costs related to administrative functions that are performed in a centralized manner that are not attributable to a particular segment. These administrative function costs include corporate office support costs, office facility costs, costs related to accounting and finance, human resources, legal, marketing, information technology, and company-wide business development functions, as well as costs related to overall corporate management. Our chief operating decision maker does not evaluate segments using asset information. The table below sets forth information about our operating segments for the three and nine months ended September 30, 2024 and 2023, along with the items necessary to reconcile the segment information to the totals reported in the accompanying consolidated financial statements.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Healthcare: |  |  |  |  |  |  |
Revenues before reimbursable expenses | $ | 183,136 |  |  | $ | 179,177 |  |  | $ | 553,976 |  |  | $ | 501,994 |
Operating income | $ | 49,651 |  |  | $ | 46,888 |  |  | $ | 147,591 |  |  | $ | 128,294 |
Segment operating income as a percentage of segment revenues before reimbursable expenses | 27.1 | % |  | 26.2 | % |  | 26.6 | % |  | 25.6 | %
Education: |  |  |  |  |  |  |
Revenues before reimbursable expenses | $ | 121,048 |  |  | $ | 111,043 |  |  | $ | 355,384 |  |  | $ | 325,884 |
Operating income | $ | 29,158 |  |  | $ | 26,550 |  |  | $ | 81,906 |  |  | $ | 77,112 |
Segment operating income as a percentage of segment revenues before reimbursable expenses | 24.1 | % |  | 23.9 | % |  | 23.0 | % |  | 23.7 | %
Commercial: |  |  |  |  |  |  |
Revenues before reimbursable expenses | $ | 65,865 |  |  | $ | 67,958 |  |  | $ | 188,304 |  |  | $ | 194,954 |
Operating income | $ | 16,144 |  |  | $ | 15,432 |  |  | $ | 39,198 |  |  | $ | 39,971 |
Segment operating income as a percentage of segment revenues before reimbursable expenses | 24.5 | % |  | 22.7 | % |  | 20.8 | % |  | 20.5 | %
Total Huron: |  |  |  |  |  |  |
Revenues before reimbursable expenses | $ | 370,049 |  |  | $ | 358,178 |  |  | $ | 1,097,664 |  |  | $ | 1,022,832 |
Reimbursable expenses | 8,040 |  |  | 9,288 |  |  | 24,827 |  |  | 25,918 |
Total revenues | $ | 378,089 |  |  | $ | 367,466 |  |  | $ | 1,122,491 |  |  | $ | 1,048,750 |
Segment operating income | $ | 94,953 |  |  | $ | 88,870 |  |  | $ | 268,695 |  |  | $ | 245,377 |
Items not allocated at the segment level: |  |  |  |  |  |  |
Unallocated corporate expenses | 46,821 |  |  | 43,100 |  |  | 143,386 |  |  | 129,765 |
Other gains, net | (173) |  |  | (14) |  |  | (14,522) |  |  | (202) |
Restructuring charges | 1,921 |  |  | 4,095 |  |  | 6,201 |  |  | 6,881 |
Depreciation and amortization | 3,939 |  |  | 4,347 |  |  | 11,861 |  |  | 13,441 |
Operating income | 42,445 |  |  | 37,342 |  |  | 121,769 |  |  | 95,492 |
Other expense, net | (4,864) |  |  | (6,047) |  |  | (14,533) |  |  | (13,365) |
Income before taxes | $ | 37,581 |  |  | $ | 31,295 |  |  | $ | 107,236 |  |  | $ | 82,127 |
The following tables illustrate the disaggregation of segment total revenues and segment revenues before reimbursable expenses by our two principal capabilities: i) Consulting and Managed Services and ii) Digital, and includes a reconciliation to consolidated revenues before reimbursable expenses and consolidated total revenues.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Total Revenues by Capability |  | 2024 |  | 2023 |  | 2024 |  | 2023
Healthcare: |  |  |  |  |  |  |  |
Consulting and Managed Services |  | $ | 132,537 |  |  | $ | 135,309 |  |  | $ | 398,352 |  |  | $ | 368,896 |
Digital |  | 55,155 |  |  | 49,665 |  |  | 169,989 |  |  | 148,228 |
Total revenues |  | $ | 187,692 |  |  | $ | 184,974 |  |  | $ | 568,341 |  |  | $ | 517,124 |
Education: |  |  |  |  |  |  |  |
Consulting and Managed Services |  | $ | 62,146 |  |  | $ | 57,028 |  |  | $ | 183,219 |  |  | $ | 165,632 |
Digital |  | 61,107 |  |  | 56,404 |  |  | 178,766 |  |  | 167,233 |
Total revenues |  | $ | 123,253 |  |  | $ | 113,432 |  |  | $ | 361,985 |  |  | $ | 332,865 |
Commercial: |  |  |  |  |  |  |  |
Consulting and Managed Services |  | $ | 24,598 |  |  | $ | 28,774 |  |  | $ | 68,186 |  |  | $ | 70,958 |
Digital |  | 42,546 |  |  | 40,286 |  |  | 123,979 |  |  | 127,803 |
Total revenues |  | $ | 67,144 |  |  | $ | 69,060 |  |  | $ | 192,165 |  |  | $ | 198,761 |
Total Huron: |  |  |  |  |  |  |  |
Consulting and Managed Services |  | $ | 219,281 |  |  | $ | 221,111 |  |  | $ | 649,757 |  |  | $ | 605,486 |
Digital |  | 158,808 |  |  | 146,355 |  |  | 472,734 |  |  | 443,264 |
Total revenues |  | $ | 378,089 |  |  | $ | 367,466 |  |  | $ | 1,122,491 |  |  | $ | 1,048,750 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Revenues before Reimbursable Expenses by Capability |  | 2024 |  | 2023 |  | 2024 |  | 2023
Healthcare: |  |  |  |  |  |  |  |
Consulting and Managed Services |  | $ | 128,966 |  |  | $ | 130,548 |  |  | $ | 387,164 |  |  | $ | 357,228 |
Digital |  | 54,170 |  |  | 48,629 |  |  | 166,812 |  |  | 144,766 |
Total revenues before reimbursable expenses |  | $ | 183,136 |  |  | $ | 179,177 |  |  | $ | 553,976 |  |  | $ | 501,994 |
Education: |  |  |  |  |  |  |  |
Consulting and Managed Services |  | $ | 61,222 |  |  | $ | 55,837 |  |  | $ | 180,162 |  |  | $ | 162,490 |
Digital |  | 59,826 |  |  | 55,206 |  |  | 175,222 |  |  | 163,394 |
Total revenues before reimbursable expenses |  | $ | 121,048 |  |  | $ | 111,043 |  |  | $ | 355,384 |  |  | $ | 325,884 |
Commercial: |  |  |  |  |  |  |  |
Consulting and Managed Services |  | $ | 24,329 |  |  | $ | 28,303 |  |  | $ | 67,089 |  |  | $ | 69,419 |
Digital |  | 41,536 |  |  | 39,655 |  |  | 121,215 |  |  | 125,535 |
Total revenues before reimbursable expenses |  | $ | 65,865 |  |  | $ | 67,958 |  |  | $ | 188,304 |  |  | $ | 194,954 |
Total Huron: |  |  |  |  |  |  |  |
Consulting and Managed Services |  | $ | 214,517 |  |  | $ | 214,688 |  |  | $ | 634,415 |  |  | $ | 589,137 |
Digital |  | 155,532 |  |  | 143,490 |  |  | 463,249 |  |  | 433,695 |
Total revenues before reimbursable expenses |  | $ | 370,049 |  |  | $ | 358,178 |  |  | $ | 1,097,664 |  |  | $ | 1,022,832 |
For the three and nine months ended September 30, 2024 and 2023, substantially all of our revenues were recognized over time. During the three and nine months ended September 30, 2024 and 2023, no single client generated greater than 10% of our consolidated total revenues. At September 30, 2024 and December 31, 2023, no single client accounted for greater than 10% of our combined balance of receivables from clients, net and unbilled services, net.

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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