Business Segments

12 Months Ended

Dec. 31, 2020

Segment Reporting Disclosure [Text Block]

14. Business Segments

ASGN provides professional staffing and IT consulting services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors. ASGN operates through its Commercial and Federal Government businesses. The Commercial business is comprised of the Apex and Oxford segments. The Federal Government business is the ECS segment.

The Apex segment provides technology, digital, creative, scientific, engineering staffing and consulting services to Fortune 1000 and mid-market clients across the United States and Canada. The Oxford segment provides hard-to-find technology, digital, engineering and life sciences staffing and consulting services in select skill and geographic markets in the United States and Europe. The ECS segment delivers advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, science and engineering to U.S. defense, intelligence and federal civilian agencies. Management evaluates the performance of each segment primarily based on revenues, gross profit and operating income, which is derived directly from internal financial reporting of the segments used for corporate management purposes, which is presented below by segment (in millions):


	Year Ended December 31,
	2020		2019		2018
Apex
Revenues	$	2,421.2	$	2,520.0	$	2,300.3
Gross profit	710.8		746.0		687.9
Operating income	276.6		287.7		262.4
Amortization	22.9		20.3		26.2
Oxford
Revenues	$	525.2	$	605.7	$	606.5
Gross profit	209.6		242.9		248.9
Operating income	43.9		48.4		54.1
Amortization	0.7		3.7		4.2
ECS
Revenues	$	1,004.2	$	798.2	$	493.0
Gross profit	168.9		141.1		86.9
Operating income	58.0		42.2		15.5
Amortization	28.1		27.1		28.1
Consolidated
Revenues	$	3,950.6	$	3,923.9	$	3,399.8
Gross profit	1,089.3		1,130.0		1,023.7
Operating income(1)	310.4		308.6		260.2
Amortization	51.7		51.1		58.5

___________________

(1) Consolidated operating income includes corporate operating expenses that are not allocated to the segments, consisting of consolidated stock-based compensation expense; compensation for corporate employees; acquisition, integration and strategic planning expenses; public company expenses; and depreciation expense for corporate assets.

The Company has three major revenue sources: (i) Assignment, (ii) Consulting and (iii) Federal Government. Permanent placement revenues for full year 2020 were approximately 2.6 percent of total revenues and are no longer significant to our consolidated results for disclosure purposes. Consequently, we no longer present these revenues separately in our financial statements and instead they are included in assignment revenues. For comparability, all prior periods have been recast for this change in presentation. The following table presents disaggregated revenues by type (in millions):


	Year Ended December 31,
	2020		2019		2018
Apex
Assignment	$	2,040.3	$	2,190.9	$	2,050.1
Consulting	380.9		329.1		250.2
	2,421.2		2,520.0		2,300.3
Oxford
Assignment	468.6		549.4		558.1
Consulting	56.6		56.3		48.4
	525.2		605.7		606.5
ECS
Firm-fixed-price	272.0		214.0		133.1
Time and materials	322.6		267.8		143.4
Cost reimbursable	409.6		316.4		216.5
	1,004.2		798.2		493.0
Consolidated	$	3,950.6	$	3,923.9	$	3,399.8

The following table presents the ECS segment revenues by customer type (in millions):


	Year Ended December 31,
	2020		2019		2018
Department of Defense and Intelligence Agencies	$	558.5	$	453.9	$	311.0
Federal Civilian	370.6		293.6		150.9
Other	75.1		50.7		31.1
	$	1,004.2	$	798.2	$	493.0

The Company operates internationally, with operations in Europe, Canada and Mexico. Most of the Company's revenues are generated in the United States. Revenues from outside the United States accounted for less than 5.0 percent of consolidated revenues for 2020, 2019 and 2018. The following table presents revenues by geographic location (in millions):


	Year Ended December 31,
	2020		2019		2018
Domestic	$	3,778.1	$	3,749.2	$	3,241.8
Foreign	172.5		174.7		158.0
	$	3,950.6	$	3,923.9	$	3,399.8

The following table presents long-lived assets by geographic location (in millions):


	December 31,
	2020		2019
Domestic	$	67.6	$	71.4
Foreign	1.8		2.3
	$	69.4	$	73.7

Assets by reportable segment are not presented as this information is not used by management for purposes of assessing performance or allocating resources.