XML 31 R20.htm IDEA: XBRL DOCUMENT v3.24.3
Segment Information
 9 Months Ended
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,
2024202320242023
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 expenses27.1 %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 expenses24.1 %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 expenses24.5 %22.7 %20.8 %20.5 %
Total Huron:
Revenues before reimbursable expenses$370,049 $358,178 $1,097,664 $1,022,832 
Reimbursable expenses8,040 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 amortization3,939 4,347 11,861 13,441 
Operating income42,445 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
2024202320242023
Healthcare:
Consulting and Managed Services$132,537 $135,309 $398,352 $368,896 
Digital55,155 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 
Digital61,107 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 
Digital42,546 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 
Digital158,808 146,355 472,734 443,264 
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
2024202320242023
Healthcare:
Consulting and Managed Services$128,966 $130,548 $387,164 $357,228 
Digital54,170 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 
Digital59,826 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 
Digital41,536 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 
Digital155,532 143,490 463,249 433,695 
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.