AMN 2017 Annual Report

42 healthcare interim leadership staffing and executive search services, (iii) vendor management systems, (iv) recruitment process outsourcing, (v) education, (vi) medical coding and related consulting, and (vii) workforce optimization services. The Company’s chief operating decision maker relies on internal management reporting processes that provide revenue and operating income by reportable segment for making financial decisions and allocating resources. Segment operating income represents income before income taxes plus depreciation, amortization of intangible assets, share-based compensation, interest expense, net, and other, and unallocated corporate overhead. The Company’s management does not evaluate, manage or measure performance of segments using asset information; accordingly, asset information by segment is not prepared or disclosed. The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results and was derived from each segment’s internal financial information as used for corporate management purposes: Years Ended December 31, 2017 2016 2015 Revenue Nurse and allied solutions $ 1,238,543 $ 1,185,095 $ 953,253 Locum tenens solutions 430,615 424,242 385,091 Other workforce solutions 319,296 292,888 124,721 $ 1,988,454 $ 1,902,225 $ 1,463,065 Segment operating income Nurse and allied solutions $ 182,792 $ 161,779 $ 123,969 Locum tenens solutions 51,422 58,757 48,011 Other workforce solutions 81,154 77,450 40,390 315,368 297,986 212,370 Unallocated corporate overhead 60,412 65,335 52,254 Depreciation and amortization 32,279 29,620 20,953 Share-based compensation 10,237 11,399 10,284 Interest expense, net, and other 19,677 15,465 7,790 Income before income taxes $ 192,763 $ 176,167 $ 121,089 (r) Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Stock Compensation - Improvements to Employee Share-Based Payment Accounting.” The guidance attempts to simplify the accounting for share-based payment transactions in several areas, including the following: income tax consequences, classification of awards as either equity or liabilities, forfeitures, expected term, and statement of cash flows classification. The Company adopted this pronouncement prospectively beginning January 1, 2017. Accordingly, the prior period has not been adjusted and the primary effects of the adoption for the current period are as follows: • The Company recorded $5,449 of tax benefits within income tax expense for 2017 related to the excess tax benefit on share-based compensation. Prior to adoption, this amount would have been recorded as additional paid-in capital; • The Company continued to estimate the number of awards expected to be forfeited in accordance with its existing accounting policy, which is to estimate forfeitures when recording share-based compensation expense; • The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share for 2017. The effect of this change on its diluted earnings per share was not significant; and • For 2017, cash flows related to excess tax benefits were classified as an operating activity. There were no other material impacts to the Company's consolidated financial statements as a result of adopting this updated standard.