false--12-31Q22019000089056400750000007500000052500000528000005250000052800000300000P5YP12Y9MP7YP2Y9MP2YP6YP5YP2MP2YP1Y001000000100000000001000000000 0000890564 2019-01-01 2019-06-30 0000890564 2019-08-01 0000890564 2019-06-30 0000890564 2018-12-31 0000890564 2018-04-01 2018-06-30 0000890564 2018-01-01 2018-06-30 0000890564 2019-04-01 2019-06-30 0000890564 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000890564 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000890564 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0000890564 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0000890564 us-gaap:CommonStockMember 2019-06-30 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000890564 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000890564 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000890564 us-gaap:CommonStockMember 2017-12-31 0000890564 us-gaap:CommonStockMember 2018-12-31 0000890564 us-gaap:CommonStockMember 2018-06-30 0000890564 2018-03-31 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0000890564 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000890564 us-gaap:CommonStockMember 2018-01-01 2018-06-30 0000890564 us-gaap:RetainedEarningsMember 2018-06-30 0000890564 us-gaap:CommonStockMember 2019-03-31 0000890564 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000890564 us-gaap:RetainedEarningsMember 2019-03-31 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000890564 us-gaap:RetainedEarningsMember 2018-03-31 0000890564 2018-06-30 0000890564 2017-12-31 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000890564 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000890564 us-gaap:RetainedEarningsMember 2019-06-30 0000890564 us-gaap:RetainedEarningsMember 2018-12-31 0000890564 us-gaap:RetainedEarningsMember 2017-12-31 0000890564 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000890564 2019-03-31 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000890564 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000890564 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000890564 us-gaap:CommonStockMember 2018-03-31 0000890564 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000890564 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0000890564 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000890564 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000890564 2019-01-01 0000890564 srt:MaximumMember 2019-06-30 0000890564 srt:MinimumMember 2019-06-30 0000890564 asgn:ECSMember 2018-04-02 2018-04-02 0000890564 asgn:DHAMember 2019-01-25 2019-01-25 0000890564 asgn:DHAMember 2019-01-25 0000890564 2018-04-02 2018-04-02 0000890564 asgn:ECSMember 2018-04-02 0000890564 asgn:ECSMember 2018-01-01 2018-06-30 0000890564 asgn:ECSMember 2018-04-01 2018-06-30 0000890564 asgn:OxfordSegmentMember 2018-01-01 2018-06-30 0000890564 asgn:ApexSegmentMember 2018-12-31 0000890564 asgn:OxfordSegmentMember 2019-06-30 0000890564 asgn:ApexSegmentMember 2017-12-31 0000890564 asgn:OxfordSegmentMember 2018-12-31 0000890564 asgn:ECSMember 2018-12-31 0000890564 asgn:DHAMember asgn:DHAMember 2019-01-01 2019-06-30 0000890564 asgn:ECSMember 2019-06-30 0000890564 asgn:ECSMember asgn:ECSMember 2018-01-01 2018-06-30 0000890564 asgn:OxfordSegmentMember 2017-12-31 0000890564 asgn:OxfordSegmentMember 2019-01-01 2019-06-30 0000890564 asgn:ApexSegmentMember 2019-06-30 0000890564 us-gaap:ContractBasedIntangibleAssetsMember 2019-06-30 0000890564 us-gaap:ContractBasedIntangibleAssetsMember 2018-12-31 0000890564 us-gaap:NoncompeteAgreementsMember 2019-06-30 0000890564 us-gaap:CustomerRelationshipsMember 2019-06-30 0000890564 asgn:ContractorRelationsMember 2018-12-31 0000890564 us-gaap:ComputerSoftwareIntangibleAssetMember 2019-06-30 0000890564 asgn:ContractorRelationsMember 2019-06-30 0000890564 us-gaap:CustomerRelationshipsMember 2018-12-31 0000890564 us-gaap:NoncompeteAgreementsMember 2018-12-31 0000890564 us-gaap:OrderOrProductionBacklogMember 2018-12-31 0000890564 us-gaap:ComputerSoftwareIntangibleAssetMember 2018-12-31 0000890564 us-gaap:OrderOrProductionBacklogMember 2019-06-30 0000890564 srt:MinimumMember us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0000890564 srt:MinimumMember us-gaap:ContractBasedIntangibleAssetsMember 2019-01-01 2019-06-30 0000890564 srt:MaximumMember us-gaap:NoncompeteAgreementsMember 2019-01-01 2019-06-30 0000890564 srt:MaximumMember asgn:ContractorRelationsMember 2019-01-01 2019-06-30 0000890564 srt:MaximumMember us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0000890564 srt:MinimumMember asgn:ContractorRelationsMember 2019-01-01 2019-06-30 0000890564 srt:MaximumMember us-gaap:OrderOrProductionBacklogMember 2019-01-01 2019-06-30 0000890564 srt:MinimumMember us-gaap:OrderOrProductionBacklogMember 2019-01-01 2019-06-30 0000890564 srt:MinimumMember us-gaap:NoncompeteAgreementsMember 2019-01-01 2019-06-30 0000890564 srt:MinimumMember us-gaap:ComputerSoftwareIntangibleAssetMember 2019-01-01 2019-06-30 0000890564 srt:MaximumMember asgn:A200MillionRevolvingCreditFacilityDueMarch2023Member us-gaap:NotesPayableToBanksMember 2019-01-01 2019-06-30 0000890564 srt:MaximumMember us-gaap:LongTermDebtMember us-gaap:NotesPayableToBanksMember 2019-01-01 2019-06-30 0000890564 asgn:A200MillionRevolvingCreditFacilityDueMarch2023Member 2019-06-30 0000890564 us-gaap:EurodollarMember srt:MaximumMember us-gaap:LongTermDebtMember us-gaap:NotesPayableToBanksMember 2019-01-01 2019-06-30 0000890564 us-gaap:EurodollarMember srt:MaximumMember asgn:A200MillionRevolvingCreditFacilityDueMarch2023Member us-gaap:NotesPayableToBanksMember 2019-01-01 2019-06-30 0000890564 us-gaap:EurodollarMember srt:MinimumMember asgn:A200MillionRevolvingCreditFacilityDueMarch2023Member us-gaap:NotesPayableToBanksMember 2019-01-01 2019-06-30 0000890564 srt:MinimumMember asgn:A200MillionRevolvingCreditFacilityDueMarch2023Member us-gaap:NotesPayableToBanksMember 2019-01-01 2019-06-30 0000890564 srt:MaximumMember 2019-01-01 2019-06-30 0000890564 asgn:A825MillionTermBLoanFacilitydueJune2022Member 2019-06-30 0000890564 asgn:A822MillionTermBLoanFacilitydueApril2025MemberDomain 2019-06-30 0000890564 asgn:A200MillionRevolvingCreditFacilityDueMarch2023Member 2019-06-30 0000890564 asgn:A822MillionTermBLoanFacilitydueApril2025MemberDomain 2018-12-31 0000890564 asgn:A825MillionTermBLoanFacilitydueJune2022Member 2018-12-31 0000890564 asgn:A200MillionRevolvingCreditFacilityDueMarch2023Member 2018-12-31 0000890564 asgn:ECSMember 2018-01-01 2018-06-30 0000890564 asgn:ApexSegmentMember 2018-04-01 2018-06-30 0000890564 asgn:ApexSegmentMember 2019-01-01 2019-06-30 0000890564 asgn:OxfordSegmentMember 2019-04-01 2019-06-30 0000890564 us-gaap:CorporateMember 2018-04-01 2018-06-30 0000890564 asgn:ApexSegmentMember 2018-01-01 2018-06-30 0000890564 asgn:OxfordSegmentMember 2018-04-01 2018-06-30 0000890564 asgn:ECSMember 2019-04-01 2019-06-30 0000890564 asgn:ApexSegmentMember 2019-04-01 2019-06-30 0000890564 asgn:ECSMember 2018-04-01 2018-06-30 0000890564 asgn:ECSMember 2019-01-01 2019-06-30 0000890564 us-gaap:CorporateMember 2018-01-01 2018-06-30 0000890564 us-gaap:CorporateMember 2019-04-01 2019-06-30 0000890564 us-gaap:CorporateMember 2019-01-01 2019-06-30 0000890564 us-gaap:FixedPriceContractMember asgn:ECSMember 2019-01-01 2019-06-30 0000890564 asgn:PermanentPlacementMember asgn:OxfordSegmentMember 2019-04-01 2019-06-30 0000890564 asgn:PermanentPlacementMember asgn:ApexSegmentMember 2018-01-01 2018-06-30 0000890564 asgn:AssignmentMember asgn:ApexSegmentMember 2018-04-01 2018-06-30 0000890564 us-gaap:TimeAndMaterialsContractMember asgn:ECSMember 2019-04-01 2019-06-30 0000890564 asgn:AssignmentMember asgn:OxfordSegmentMember 2018-04-01 2018-06-30 0000890564 us-gaap:TimeAndMaterialsContractMember asgn:ECSMember 2018-04-01 2018-06-30 0000890564 us-gaap:FixedPriceContractMember asgn:ECSMember 2018-04-01 2018-06-30 0000890564 asgn:CostplusfixedfeeContractMember asgn:ECSMember 2018-01-01 2018-06-30 0000890564 us-gaap:TimeAndMaterialsContractMember asgn:ECSMember 2019-01-01 2019-06-30 0000890564 us-gaap:FixedPriceContractMember asgn:ECSMember 2018-01-01 2018-06-30 0000890564 asgn:CostplusfixedfeeContractMember asgn:ECSMember 2019-01-01 2019-06-30 0000890564 asgn:PermanentPlacementMember asgn:OxfordSegmentMember 2018-04-01 2018-06-30 0000890564 asgn:AssignmentMember asgn:OxfordSegmentMember 2019-04-01 2019-06-30 0000890564 asgn:AssignmentMember asgn:ApexSegmentMember 2019-04-01 2019-06-30 0000890564 asgn:AssignmentMember asgn:OxfordSegmentMember 2018-01-01 2018-06-30 0000890564 asgn:PermanentPlacementMember asgn:OxfordSegmentMember 2018-01-01 2018-06-30 0000890564 asgn:AssignmentMember asgn:ApexSegmentMember 2019-01-01 2019-06-30 0000890564 asgn:PermanentPlacementMember asgn:ApexSegmentMember 2019-01-01 2019-06-30 0000890564 asgn:CostplusfixedfeeContractMember asgn:ECSMember 2019-04-01 2019-06-30 0000890564 asgn:PermanentPlacementMember asgn:OxfordSegmentMember 2019-01-01 2019-06-30 0000890564 asgn:CostplusfixedfeeContractMember asgn:ECSMember 2018-04-01 2018-06-30 0000890564 asgn:PermanentPlacementMember asgn:ApexSegmentMember 2018-04-01 2018-06-30 0000890564 us-gaap:FixedPriceContractMember asgn:ECSMember 2019-04-01 2019-06-30 0000890564 asgn:AssignmentMember asgn:ApexSegmentMember 2018-01-01 2018-06-30 0000890564 asgn:PermanentPlacementMember asgn:ApexSegmentMember 2019-04-01 2019-06-30 0000890564 asgn:AssignmentMember asgn:OxfordSegmentMember 2019-01-01 2019-06-30 0000890564 us-gaap:TimeAndMaterialsContractMember asgn:ECSMember 2018-01-01 2018-06-30 0000890564 asgn:DepartmentofdefenseandintelligenceagenciesMember 2019-04-01 2019-06-30 0000890564 asgn:CommercialandotherMember 2019-04-01 2019-06-30 0000890564 asgn:CommercialandotherMember 2018-01-01 2018-06-30 0000890564 asgn:FederalcivilianMember 2018-04-01 2018-06-30 0000890564 asgn:FederalcivilianMember 2019-04-01 2019-06-30 0000890564 asgn:CommercialandotherMember 2018-04-01 2018-06-30 0000890564 asgn:DepartmentofdefenseandintelligenceagenciesMember 2018-01-01 2018-06-30 0000890564 asgn:DepartmentofdefenseandintelligenceagenciesMember 2018-04-01 2018-06-30 0000890564 asgn:CommercialandotherMember 2019-01-01 2019-06-30 0000890564 asgn:FederalcivilianMember 2018-01-01 2018-06-30 0000890564 asgn:FederalcivilianMember 2019-01-01 2019-06-30 0000890564 asgn:DepartmentofdefenseandintelligenceagenciesMember 2019-01-01 2019-06-30 0000890564 asgn:ForeignMember 2018-01-01 2018-06-30 0000890564 asgn:DomesticMember 2019-04-01 2019-06-30 0000890564 asgn:ForeignMember 2019-01-01 2019-06-30 0000890564 asgn:ForeignMember 2018-04-01 2018-06-30 0000890564 asgn:DomesticMember 2018-04-01 2018-06-30 0000890564 asgn:DomesticMember 2019-01-01 2019-06-30 0000890564 asgn:ForeignMember 2019-04-01 2019-06-30 0000890564 asgn:DomesticMember 2018-01-01 2018-06-30 0000890564 us-gaap:FairValueInputsLevel1Member 2019-06-30 0000890564 us-gaap:FairValueInputsLevel1Member 2018-12-31 utreg:Rate xbrli:pure iso4217:USD xbrli:shares xbrli:shares iso4217:USD asgn:property
  
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2019
 
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission file number: 000-20540
 
ASGN Incorporated
(Exact name of registrant as specified in its charter)
Delaware
95-4023433
(State of Incorporation)
 
(I.R.S. Employer Identification No.)
 

26745 Malibu Hills Road
Calabasas, CA 91301
(Address, including zip code, of Principal Executive Offices)
(818) 878-7900
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol
 
Name of exchange on which registered
Common Stock
 
ASGN
 
NYSE


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes No 
  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
  Yes No 
 
At August 1, 2019, the total number of outstanding shares of the Common Stock of ASGN Incorporated (the "Company") ($0.01 par value) was 52.9 million.

1



ASGN INCORPORATED AND SUBSIDIARIES

INDEX

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 



2



PART I - FINANCIAL INFORMATION


Item 1 — Condensed Consolidated Financial Statements (Unaudited)


ASGN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions, except par value per share)
 
June 30,
2019
 
December 31,
2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
40.1

 
$
41.8

Accounts receivable, net
621.5

 
613.8

Prepaid expenses and income taxes
15.2

 
11.4

Workers' compensation receivable
14.7

 
15.0

Other current assets
5.6

 
4.3

Total current assets
697.1

 
686.3

Property and equipment, net
75.2

 
79.1

Operating lease right of use assets
87.7

 

Identifiable intangible assets, net
476.9

 
488.7

Goodwill
1,445.6

 
1,421.1

Other non-current assets
16.5

 
12.6

Total assets
$
2,799.0

 
$
2,687.8

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
24.1

 
$
43.1

Accrued payroll and contract professional pay
196.5

 
194.8

Workers’ compensation loss reserves
16.8

 
17.4

Operating lease liabilities
25.8

 

Income taxes payable
13.5

 
3.4

Other current liabilities
49.8

 
49.5

Total current liabilities
326.5

 
308.2

Long-term debt
1,026.0

 
1,100.4

Operating lease liabilities
67.7

 

Deferred income tax liabilities
78.9

 
79.8

Other long-term liabilities
16.2

 
17.3

Total liabilities
1,515.3

 
1,505.7

Commitments and contingencies (Note 7)

 

Stockholders’ equity:
 
 
 
Preferred stock, $0.01 par value; 1 million shares authorized; no shares issued

 

Common stock, $0.01 par value; 75 million shares authorized; 52.8 million
 and 52.5 million shares issued, respectively
0.5

 
0.5

Paid-in capital
625.5

 
601.8

Retained earnings
664.1

 
586.1

Accumulated other comprehensive loss
(6.4
)
 
(6.3
)
Total stockholders’ equity
1,283.7

 
1,182.1

Total liabilities and stockholders’ equity
$
2,799.0

 
$
2,687.8

 

See notes to condensed consolidated financial statements.


3



ASGN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
(In millions, except per share amounts)
 
Three Months Ended,
 
Six Months Ended,
June 30,
June 30,
 
2019
 
2018
 
2019
 
2018
Revenues
$
972.3

 
$
878.5

 
$
1,896.0

 
$
1,563.7

Costs of services
687.1

 
614.6

 
1,346.9

 
1,082.1

Gross profit
285.2

 
263.9

 
549.1

 
481.6

Selling, general and administrative expenses
198.8

 
179.7

 
386.2

 
344.1

Amortization of intangible assets
13.1

 
18.5

 
26.9

 
26.1

Operating income
73.3

 
65.7

 
136.0

 
111.4

Interest expense
(14.0
)
 
(20.5
)
 
(28.5
)
 
(27.1
)
Income before income taxes
59.3

 
45.2

 
107.5

 
84.3

Provision for income taxes
16.2

 
11.5

 
29.5

 
21.4

Income from continuing operations
43.1

 
33.7

 
78.0

 
62.9

Loss from discontinued operations, net of income taxes

 
(0.1
)
 

 
(0.2
)
Net income
$
43.1

 
$
33.6

 
$
78.0

 
$
62.7

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.82

 
$
0.64

 
$
1.48

 
$
1.20

Diluted
$
0.81

 
$
0.63

 
$
1.46

 
$
1.19

 
 
 
 
 
 
 
 
Number of shares and share equivalents used to calculate earnings per share:
 
 
 
 
 
 
 
Basic
52.8

 
52.3

 
52.7

 
52.2

Diluted
53.4

 
53.0

 
53.3

 
52.9

 
 
 
 
 
 
 
 
Reconciliation of net income to comprehensive income:
 
 
 
 
 
 
 
Net income
$
43.1

 
$
33.6

 
$
78.0

 
$
62.7

Foreign currency translation adjustment
1.0

 
(2.7
)
 
(0.1
)
 
(1.2
)
Comprehensive income
$
44.1

 
$
30.9

 
$
77.9

 
$
61.5


 See notes to condensed consolidated financial statements.
 
 

 


4



ASGN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In millions)
 
 
Common Stock
 
Paid-in Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income (Loss)
 
Total
 
 
Shares
 
Par Value
 
 
 
 
Three Months Ended June 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
52.8

 
$
0.5

 
$
613.2

 
$
621.0

 
$
(7.4
)
 
$
1,227.3

Vesting of restricted stock units
 

 

 
(1.3
)
 

 

 
(1.3
)
Stock-based compensation expense
 

 

 
13.6

 

 

 
13.6

Translation adjustments
 

 

 

 

 
1.0

 
1.0

Net income
 

 

 

 
43.1

 

 
43.1

Balance, end of period
 
52.8

 
$
0.5

 
$
625.5

 
$
664.1

 
$
(6.4
)
 
$
1,283.7

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
52.3

 
$
0.5

 
$
574.4

 
$
457.5

 
$
(2.1
)
 
$
1,030.3

Vesting of restricted stock units
 

 

 
(1.2
)
 

 

 
(1.2
)
Stock-based compensation expense
 

 

 
8.7

 

 

 
8.7

Translation adjustments
 

 

 

 

 
(2.7
)
 
(2.7
)
Net income
 

 

 

 
33.6

 

 
33.6

Balance, end of period
 
52.3

 
$
0.5

 
$
581.9

 
$
491.1

 
$
(4.8
)
 
$
1,068.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock
 
Paid-in Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income (Loss)
 
Total
 
 
Shares
 
Par Value
 
 
 
 
Six Months Ended June 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
52.5

 
$
0.5

 
$
601.8

 
$
586.1

 
$
(6.3
)
 
$
1,182.1

Vesting of restricted stock units
 
0.2

 

 
(6.8
)
 

 

 
(6.8
)
Employee stock purchase plan
 
0.1

 

 
6.9

 

 

 
6.9

Stock-based compensation expense
 

 

 
23.6

 

 

 
23.6

Translation adjustments
 

 

 

 

 
(0.1
)
 
(0.1
)
Net income
 

 

 

 
78.0

 

 
78.0

Balance, end of period
 
52.8

 
$
0.5

 
$
625.5

 
$
664.1

 
$
(6.4
)
 
$
1,283.7

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
52.2

 
$
0.5

 
$
566.1

 
$
428.4

 
$
(3.6
)
 
$
991.4

Vesting of restricted stock units
 

 

 
(2.2
)
 

 

 
(2.2
)
Employee stock purchase plan
 
0.1

 

 
4.3

 

 

 
4.3

Exercise of stock options
 

 

 
0.1

 

 

 
0.1

Stock-based compensation expense
 

 

 
13.6

 

 

 
13.6

Translation adjustments
 

 

 

 

 
(1.2
)
 
(1.2
)
Net income
 

 

 

 
62.7

 

 
62.7

Balance, end of period
 
52.3

 
$
0.5

 
$
581.9

 
$
491.1

 
$
(4.8
)
 
$
1,068.7

 
 
 
 
 
 
 
 
 
 
 
 
 

 See notes to condensed consolidated financial statements.


5



ASGN INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In millions)
 
Six Months Ended
June 30,
 
2019
 
2018
Cash Flows from Operating Activities:
 
 
 
Net income
$
78.0

 
$
62.7

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
46.6

 
43.0

Stock-based compensation
23.3

 
13.8

Allowance for doubtful accounts
1.7

 
1.3

Workers’ compensation provision
1.3

 
1.4

Other
5.5

 
8.4

Changes in operating assets and liabilities, net of effects of acquisitions:
 
 
 
Accounts receivable
1.0

 
(32.0
)
Prepaid expenses and income taxes
(5.3
)
 
12.0

Accounts payable
(21.0
)
 
(3.2
)
Accrued payroll and contract professional pay
0.5

 
22.2

Income taxes payable
10.0

 
4.9

Workers’ compensation loss reserves
(1.6
)
 
(1.5
)
Operating lease right of use assets
13.9

 

Operating lease liabilities
(13.7
)
 

Other
0.3

 
(1.5
)
Net cash provided by operating activities
140.5

 
131.5

Cash Flows from Investing Activities:
 
 
 
Cash paid for property and equipment
(15.9
)
 
(14.6
)
Cash paid for acquisitions, net of cash acquired
(48.5
)
 
(760.5
)
Other
(0.9
)
 
(0.1
)
Net cash used in investing activities
(65.3
)
 
(775.2
)
Cash Flows from Financing Activities:
 
 
 
Proceeds from long-term debt
50.0

 
822.0

Principal payments of long-term debt
(127.0
)
 
(143.0
)
Debt issuance and amendment costs

 
(22.5
)
Proceeds from option exercises and employee stock purchase plan
6.9

 
4.4

Payment of employment taxes related to release of restricted stock awards
(6.8
)
 
(3.2
)
Other

 
(5.3
)
Net cash provided by (used in) financing activities
(76.9
)
 
652.4

Effect of exchange rate changes on cash and cash equivalents

 
(0.7
)
Net Increase (Decrease) in Cash and Cash Equivalents
(1.7
)
 
8.0

Cash and Cash Equivalents at Beginning of Year
41.8

 
36.7

Cash and Cash Equivalents at End of Period
$
40.1

 
$
44.7

Supplemental Disclosure of Cash Flow Information
 
 
 
Cash paid for:
 
 
 
Income taxes
$
21.0

 
$
4.6

Interest
$
25.4

 
$
24.7

Supplemental Disclosure of Non-Cash Transactions
 
 
 
Unpaid portion of additions to property and equipment
$
1.1

 
$
1.7


See notes to condensed consolidated financial statements.

6



ASGN INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Financial Statement Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the Securities and Exchange Commission (the "SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The December 31, 2018 condensed consolidated balance sheet was derived from audited financial statements. The financial statements include adjustments consisting of normal recurring items, which, in the opinion of management, are necessary for a fair presentation of the financial position of ASGN Incorporated and its subsidiaries ("ASGN" or the "Company") and its results of operations for the interim dates and periods set forth herein. The results for any of the interim periods are not necessarily indicative of the results to be expected for the full year or any other period. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 ("2018 10-K").

2. Accounting Standards Update

In July 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-07, Codification Updates to SEC Sections, to incorporate the SEC Final Rule Release No. 33-10532 Disclosure Update and Simplification. This rule was issued in August 2018 and amends certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. This rule was adopted by the Company effective January 1, 2019 and the only significant change was the inclusion of the statement of changes in stockholders’ equity for interim periods.

3. Leases

Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02 Leases (Accounting Standards Codification Topic "ASC" 842), which requires lessees to recognize most operating leases on the balance sheet as a right of use ("ROU") asset and lease liability. The Company adopted this standard using the optional transition method measuring and recognizing the ROU asset and lease liability from operating leases on the condensed consolidated balance sheet without comparative period information or disclosures. The adoption of the standard did not have an effect on the Company’s results of operations, stockholders' equity or cash flows.

The Company elected the package of practical expedients which specifies entities do not need to reassess expired or existing contracts as of the adoption date for the following items: (i) determination of whether a contract is or contains a lease, (ii) revising classification of leases and (iii) assessment of initial direct costs. For existing or expired contracts as of the adoption date, the determinations made for these items under the previous accounting standard (ASC 840) were retained at transition, as allowed by this package of practical expedients.

The Company has operating leases for corporate offices, branch offices and data centers. At the transition date, the operating lease ROU asset and operating lease liability were $93.9 million and $99.4 million, respectively. The difference between the operating lease ROU asset and operating lease liability is due to deferred rent and prepaid rent balances that were reclassified as a component of the ROU asset at the transition date.

The Company's leases have remaining lease terms of one month to eight years. At the inception of a contract, the Company determines if the contract contains a lease. A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date, based on the present value of the future minimum lease payments. Since most of the Company’s leases do not provide an implicit rate of return, the Company uses its incremental borrowing rate (“IBR”) in determining the present value of lease payments. In determining the IBR, the Company considers its credit rating and the current market interest rates. The IBR approximates the interest rate the Company would pay on collateralized debt with similar terms and payments as the lease agreements and in a similar economic environment where the leased assets are located. Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the balance sheet. The Company does not have finance leases.

Lease expense is recognized on a straight-line basis over the lease term and is primarily included in selling, general and administrative expenses. Some lease agreements offer renewal options which are assessed against relevant economic factors to determine whether it is reasonably certain that these renewal options will be exercised. As a result of this assessment, for most leases, renewal options were excluded from the minimum lease payments when calculating the operating lease ROU assets and operating lease liabilities, as the Company does not consider the exercise of such options to be reasonably certain.

The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component for all underlying asset classes. Some leases require variable payments for common area maintenance, property taxes, parking, insurance and other variable costs. The variable portion of lease payments is not included in operating lease ROU assets or operating lease liabilities. Variable lease costs are expensed when incurred.


7



Components of lease expense were as follows (in millions):
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30, 2019
 
June 30, 2019
Operating lease expense
 
$
8.0

 
$
15.9

Short-term lease expense
 
0.4

 
0.8

Variable lease expense
 
1.2

 
2.3

Total lease expense
 
$
9.6

 
$
19.0



The Company leases two properties owned indirectly by certain board members and an executive of the Company. Rent expense for these two properties was $0.3 million and $0.6 million for the three and six months ended June 30, 2019 and 2018.

Supplemental cash flow information related to leases for the six months ended June 30, 2019 (in millions):
Cash paid for operating lease liabilities
 
$
15.9

Operating lease ROU assets obtained in exchange for new operating lease liabilities
 
$
7.6

Weighted-average remaining lease term of operating leases
 
4.2 years

Weighted-average discount rate of operating leases
 
4.6
%


Maturities of operating lease liabilities as of June 30, 2019 (in millions):
Remainder of 2019
 
$
15.3

2020
 
26.9

2021
 
22.6

2022
 
17.2

2023
 
11.8

Thereafter
 
9.0

Total future minimum lease payments
 
102.8

Less imputed interest
 
(9.3
)
Total operating lease liabilities
 
$
93.5



As of June 30, 2019, the Company has additional operating leases that have not yet commenced, with total future lease payments of approximately $4.5 million. These operating leases will commence in 2019 with lease terms of approximately 6 years.

In the prior year, rent expense was $8.7 million and $15.6 million for the three and six months ended June 30, 2018.


8



4. Acquisitions

Assets and liabilities of all acquired companies are recorded at their estimated fair values at the dates of acquisition. The fair value assigned to identifiable intangible assets was primarily determined using a discounted cash flow method (a non-recurring fair value measurement based on Level 3 inputs). Goodwill represents the acquired assembled workforce, potential new customers and future cash flows after the acquisition.

DHA Acquisition

On January 25, 2019, the Company acquired all of the outstanding shares of DHA Group, Inc. ("DHA"), headquartered in Washington, D.C. for $48.5 million, which included $2.5 million for excess working capital. DHA is a provider of IT services mainly to the FBI as well as other federal customers. The purchase accounting for the acquisition of DHA is preliminary and any adjustments will be recognized prospectively. Identifiable intangible assets related to this acquisition totaled $19.0 million. The results of operations for this acquisition have been combined with those of the Company from the acquisition date and are included within the ECS Segment (see Note 11. Segment Reporting).

ECS Acquisition

On April 2, 2018, the Company acquired all of the outstanding equity interests of ECS Federal, LLC ("ECS") for $775.0 million. ECS, which
is headquartered in Fairfax, Virginia, is a leading provider of government IT services and solutions. The ECS acquisition allows the Company to compete in the Federal IT and professional services sector. The purchase accounting for this acquisition was finalized as of December 31, 2018. Goodwill related to this acquisition totaled $528.2 million, of which $514.2 million is deductible for income tax purposes. Identifiable intangible assets related to this acquisition totaled $195.0 million. The weighted-average amortization period for identifiable intangible assets, excluding trademark, is 11 years. The results of operations for this acquisition have been combined with those of the Company from the acquisition date and are included within the ECS Segment.

The summary below (in millions, except for per share data) presents pro forma unaudited condensed consolidated results of operations for the three and six months ended June 30, 2018 as if the acquisition of ECS by the Company and the acquisition of a business by ECS in April 2017, both occurred on January 1, 2017. The pro forma unaudited condensed consolidated results give effect to, among other things: (i) amortization of intangible assets, (ii) stock-based compensation expense and the related dilution for restricted stock units granted to ECS employees, (iii) interest expense on acquisition-related debt and (iv) the exclusion of nonrecurring expenses incurred by ECS prior to its acquisition by the Company for ECS’ acquisition-related activities and costs incurred in the sale of ECS to the Company. The pro forma results do not include pre-acquisition results of DHA due to its size. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisitions been consummated as of the date indicated, nor are they necessarily indicative of future operating results.

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30, 2018
 
June 30, 2018
Revenues
 
$
878.5

 
$
1,712.7

Income from continuing operations
 
$
39.9

 
$
74.5

Net income
 
$
39.8

 
$
74.3

 
 
 
 
 
Earnings per share:
 
 
 
 
Basic
 
$
0.76

 
$
1.42

Diluted
 
$
0.75

 
$
1.40

 
 
 
 
 
Weighted average number of shares outstanding
 
52.3

 
52.3

Weighted average number of shares and dilutive shares outstanding
 
53.1

 
53.0




9



5. Goodwill and Identifiable Intangible Assets

The changes in the carrying amount of goodwill for the six months ended June 30, 2019 and the year ended December 31, 2018 were as follows (in millions):
 
Apex Segment
 
Oxford Segment
 
ECS Segment
 
Total
Balance as of December 31, 2017
$
662.1

 
$
232.0

 
$

 
$
894.1

ECS acquisition

 

 
528.2

 
528.2

Translation adjustment

 
(1.2
)
 

 
(1.2
)
Balance as of December 31, 2018
662.1

 
230.8

 
528.2

 
1,421.1

DHA acquisition

 

 
24.7

 
24.7

Translation adjustment

 
(0.2
)
 

 
(0.2
)
Balance as of June 30, 2019
$
662.1

 
$
230.6

 
$
552.9

 
$
1,445.6



Acquired intangible assets consisted of the following (in millions):
 
 
 
June 30, 2019
 
December 31, 2018
 
Estimated Useful Life
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer and contractual relationships
2 - 12.75 years
 
$
362.4

 
$
162.4

 
$
200.0

 
$
346.9

 
$
145.4

 
$
201.5

Contractor relationships
2 - 5 years
 
71.0

 
70.4

 
0.6

 
71.1

 
67.1

 
4.0

Backlog
1 - 2.75 years
 
25.0

 
20.7

 
4.3

 
23.1

 
17.7

 
5.4

Non-compete agreements
2 - 7 years
 
23.6

 
11.9

 
11.7

 
22.1

 
9.9

 
12.2

In-use software
6 years
 
18.9

 
17.5

 
1.4

 
18.9

 
16.0

 
2.9

Favorable contracts
5 years
 

 

 

 
1.4

 
0.9

 
0.5

 
 
 
500.9

 
282.9

 
218.0

 
483.5

 
257.0

 
226.5

Not subject to amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks(1)
 
 
258.9

 

 
258.9

 
262.2

 

 
262.2

Total
 
 
$
759.8

 
$
282.9

 
$
476.9

 
$
745.7

 
$
257.0

 
$
488.7


____
(1) Certain foreign trademarks totaling $3.3 million were written off during the second quarter of 2019.

Estimated future amortization expense is as follows (in millions): 
Remainder of 2019
$
23.6

2020
38.1

2021
32.6

2022
24.9

2023
21.7

Thereafter
77.1

 
$
218.0




10



6. Long-Term Debt

Long-term debt consisted of the following (in millions):
 
June 30,
2019
 
December 31,
2018
$200 million revolving credit facility, due March 31, 2023
$
10.0

 
$

Term B loan facility, due June 6, 2022
250.0

 
337.0

Term B loan facility, due April 2, 2025
787.0

 
787.0

 
1,047.0

 
1,124.0

Unamortized deferred loan costs
(21.0
)
 
(23.6
)
 
$
1,026.0

 
$
1,100.4



Borrowings under the term B loans bear interest at LIBOR, plus 2.00 percent. Borrowings under the revolving credit facility bear interest at LIBOR plus 1.25 to 2.25 percent, or the bank’s base rate plus 0.25 to 1.25 percent, depending on leverage levels. A commitment fee of 0.20 percent to 0.35 percent is payable on the undrawn portion of the revolving credit facility. At June 30, 2019, the weighted average interest rate was 4.42 percent.

For the term B loan that matures on June 6, 2022, there are no required minimum payments until its maturity date. For the term B loan that matures on April 2, 2025, the Company is required to make minimum quarterly payments of $2.1 million; however, as a result of principal payments made through June 30, 2019, the first required minimum quarterly payment of $2.1 million is not due until September 30, 2022. The Company is also required to make mandatory prepayments on its term loans from excess cash flow and with the proceeds of asset sales, debt issuances and specified other events, subject to certain exceptions. The credit facility is secured by substantially all of the Company's assets and has various restrictive covenants, including the maximum ratio of consolidated secured debt to consolidated earnings before interest, taxes, depreciation and amortization ("EBITDA"). The maximum permitted ratio of consolidated secured debt to consolidated EBITDA was 4.50 to 1.00 as of June 30, 2019, and steps down at regular intervals to 3.75 to 1.00 as of September 30, 2021 and thereafter. The credit facility also contains certain customary limitations including, among other terms and conditions, the Company's ability to incur additional indebtedness, engage in mergers and acquisitions and declare dividends.

At June 30, 2019, the Company was in compliance with its debt covenants; its ratio of consolidated secured debt to consolidated EBITDA was 2.40 to 1.00 and it had $186.1 million of available borrowing capacity under its revolving credit facility. The Company has undrawn stand-by letters of credit outstanding to secure obligations for workers’ compensation claims with various insurance carriers. These stand-by letters of credit at June 30, 2019 and December 31, 2018 were $3.9 million and $4.4 million, respectively.

7. Commitments and Contingencies

The Company carries retention policies for its workers’ compensation liability exposures. The workers' compensation loss reserves are based upon an actuarial study conducted by a third-party specialist. Changes in estimates and differences between estimates and the actual payments for claims are recognized in the period that the estimates change or the payments are made.

The Company’s deferred compensation plan liability was $10.8 million and $6.2 million at June 30, 2019 and December 31, 2018 and was included in other long-term liabilities. The Company established a rabbi trust to fund the deferred compensation plan (see Note 12. Fair Value Measurements).
During the quarter, the former CEO of the Company resigned and was subsequently terminated in accordance with his employment agreement. As a result, the Company recorded a one-time charge of approximately $5.3 million, which included $1.8 million in severance that will be paid over an 18-month period.
Legal Proceedings

The Company is involved in various legal proceedings, claims and litigation arising in the ordinary course of business. The Company does not believe that the disposition of matters that are pending or asserted will have a material effect on its condensed consolidated financial statements.


11



8. Revenues

Revenues are recognized as control of the promised service is transferred to customers, in an amount that reflects the consideration expected in exchange for the services.

The Company’s contracts have termination for convenience provisions and do not have substantive termination penalties; therefore, the contract duration for accounting purposes may be less than the stated terms. For accounting purposes, the Company's contracts with customers are considered to be of a short-term nature (one year or less). The Company does not disclose the value of remaining performance obligations for short-term contracts.

The Company has contract liabilities for payments received in advance of providing services under certain contracts. Contract liabilities for advance payments were $8.9 million and $9.8 million at June 30, 2019 and December 31, 2018, respectively. Contract liabilities are included in other current liabilities on the condensed consolidated balance sheets and are generally recognized as revenues within three months from the balance sheet date.

The allowance for doubtful accounts was $4.7 million at June 30, 2019 and $4.8 million at December 31, 2018.

9. Income Taxes

For interim reporting periods, the Company’s provision for income taxes is calculated using its annualized estimated effective tax rate for the year. This rate is based on its estimated full-year income and the related income tax expense for each jurisdiction in which the Company operates. Changes in the geographical mix, permanent differences or the estimated level of annual pre-tax income, can affect the effective tax rate. This rate is adjusted for the effects of discrete items occurring in the period.

10. Earnings per Share 

The following is a reconciliation of the shares used to compute basic and diluted earnings per share (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Weighted average number of common shares outstanding used to compute basic earnings per share
52.8

 
52.3

 
52.7

 
52.2

Dilutive effect of stock-based awards
0.6

 
0.7

 
0.6

 
0.7

Number of shares used to compute diluted earnings per share
53.4

 
53.0

 
53.3

 
52.9



During the three and six months ended June 30, 2019, there were 0.2 million and 0.3 million share equivalents outstanding that were excluded from the computation of diluted earnings per share because they were anti-dilutive when applying the treasury stock method. During the three and six months ended June 30, 2018 the amount of anti-dilutive share equivalents outstanding were insignificant.



12



11. Segment Reporting 

ASGN provides IT and professional staffing services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors. ASGN operates through its Apex, Oxford and ECS segments. The Apex Segment provides technology, scientific, engineering, digital and creative resources and services to Fortune 1000 and mid-market clients across the United States and Canada. The businesses in this segment include Apex Systems and Creative Circle. The Oxford Segment provides hard-to-find technical, digital, engineering and life sciences resources in select skill and geographic markets, along with consulting services. The businesses in this segment include Oxford Global Resources, CyberCoders and Life Sciences Europe. The ECS Segment provides advanced solutions in cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization and science and engineering to customers across the U.S. public sector, defense, intelligence and commercial industries. 

The Company’s management evaluates the performance of each segment primarily based on revenues, gross profit and operating income. The information in the following tables is derived directly from the segments’ internal financial reporting used for corporate management purposes.

The following tables present revenues, gross profit, operating income and amortization by reportable segment (in millions):
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Apex:
 
 
 
 
 
 
 
 
Revenues
 
$
628.5

 
$
567.6

 
$
1,234.6

 
$
1,106.1

Gross profit
 
187.8

 
169.7

 
363.2

 
328.3

Operating income
 
72.9

 
64.9

 
133.9

 
121.2

Amortization
 
5.5

 
6.6

 
11.5

 
13.1

Oxford:
 
 
 
 
 
 
 
 
Revenues
 
$
153.2

 
$
155.8

 
$
302.8

 
$
302.5

Gross profit
 
62.5

 
65.5

 
121.4

 
124.6

Operating income
 
11.0

 
14.8

 
22.7

 
24.6

Amortization
 
1.0

 
1.0

 
2.0

 
2.1

ECS:
 
 
 
 
 
 
 
 
Revenues
 
$
190.6

 
$
155.1

 
$
358.6

 
$
155.1

Gross profit
 
34.9

 
28.7

 
64.5

 
28.7

Operating income
 
10.9

 
3.7

 
17.8

 
3.7

Amortization
 
6.6

 
10.9

 
13.4

 
10.9

Corporate:
 
 
 
 
 
 
 
 
Operating loss(1)
 
$
(21.5
)
 
$
(17.7
)
 
$
(38.4
)
 
$
(38.1
)
Consolidated:
 
 
 
 
 
 
 
 
Revenues
 
$
972.3

 
$
878.5

 
$
1,896.0

 
$
1,563.7

Gross profit
 
285.2

 
263.9

 
549.1

 
481.6

Operating income
 
73.3

 
65.7

 
136.0

 
111.4

Amortization
 
13.1

 
18.5

 
26.9

 
26.1

_____________
(1)
Corporate expenses primarily consist 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.


13



The following table presents revenues disaggregated by type (in millions):
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
2019
 
2018
Apex:
 
 
 
 
 
 
 
 
Assignment
 
$
613.0

 
$
553.7

 
$
1,205.2

 
$
1,078.6

Permanent placement
 
15.5

 
13.9

 
29.4

 
27.5

 
 
$
628.5

 
$
567.6

 
$
1,234.6

 
$
1,106.1

Oxford:
 
 
 
 
 
 
 
 
Assignment
 
$
131.4

 
$
130.3

 
$
260.8

 
$
255.7

Permanent placement
 
21.8

 
25.5

 
42.0

 
46.8

 
 
$
153.2

 
$
155.8

 
$
302.8

 
$
302.5

ECS:
 
 
 
 
 
 
 
 
Firm-fixed-price
 
$
46.1

 
$
44.8

 
$
89.4

 
$
44.8

Time and materials
 
70.8

 
49.0

 
132.2

 
49.0

Cost-plus-fixed-fee
 
73.7

 
61.3

 
137.0

 
61.3

 
 
$
190.6

 
$
155.1

 
$
358.6

 
$
155.1

Consolidated
 
$
972.3

 
$
878.5

 
$
1,896.0

 
$
1,563.7




The Company operates internationally, with operations mainly in the United States. The following table presents revenues by geographic location (in millions):
 
 
Three Months Ended
 
Six Months Ended
 
 
 
 
June 30,
 
June 30,
 
 
 
 
2019
 
%
 
2018
 
%
 
2019
 
%
 
2018
 
%
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
929.8

 
95.6
%
 
$
838.0

 
95.4
%
 
$
1,810.9

 
95.5
%
 
$
1,485.3

 
95.0
%
Foreign
 
42.5

 
4.4
%
 
40.5

 
4.6
%
 
85.1

 
4.5
%
 
78.4

 
5.0
%
 
 
$
972.3

 
100
%
 
$
878.5

 
100
%
 
$
1,896.0