Segment Data

We report our segment information in accordance with the provisions of ASC 280, Segment Reporting.

Our current reportable segments are (i) North American Staffing and (ii) International Staffing. The non-reportable businesses are combined and disclosed with corporate services under the category Corporate and Other.

The Company sold the quality assurance business from within the Technology Outsourcing Services and Solutions segment on October 27, 2017 leaving the Company's call center services as the remaining activity within that segment. The Company has renamed the operating segment Volt Customer Care Solutions and its results are now reported as part of the Corporate and Other category, as it does not meet the criteria for a reportable segment under ASC 280, Segment Reporting. To provide period over period comparability, the Company has recast the prior period Technology Outsourcing Services and Solutions segment data to conform to the current presentation within the Corporate and Other category in the prior period. This change did not have any impact on the consolidated financial results for any period presented. In addition, Corporate and Other also included our previously owned Maintech, Incorporated (“Maintech”) business in the first six months of fiscal 2017.

Segment operating income (loss) is comprised of segment net revenue less cost of services, selling, administrative and other operating costs, and restructuring and severance costs. The Company allocates to the segments all operating costs except for costs not directly related to the operating activities such as corporate-wide general and administrative costs. These costs are not allocated because doing so would not enhance the understanding of segment operating performance and are not used by management to measure segment performance.

Financial data concerning the Company’s segment revenue and operating income (loss) as well as results from Corporate and Other are summarized in the following tables (in thousands):



	Three Months Ended April 29, 2018
	Total			North American Staffing		International Staffing		Corporate and Other (1)			Eliminations (2)
Net revenue	$	263,219		$	218,090	$	31,904	$	14,156		$	(931	)
Cost of services	225,918			187,929		27,100		11,820			(931		)
Gross margin	37,301			30,161		4,804		2,336			—

Selling, administrative and other operating costs	42,916			28,586		3,915		10,415			—
Restructuring and severance costs	104			4		71		29			—
Impairment charge	155			—		—		155			—
Operating income (loss)	(5,874		)	1,571		818		(8,263		)	—
Other income (expense), net	(1,183		)
Income tax provision	630
Net loss	$	(7,687	)



	Three Months Ended April 30, 2017
	Total			North American Staffing		International Staffing		Corporate and Other (1)			Eliminations (2)
Net revenue	$	303,005		$	233,804	$	30,231	$	40,532		$	(1,562	)
Cost of services	255,886			199,068		25,670		32,710			(1,562		)
Gross margin	47,119			34,736		4,561		7,822			—

Selling, administrative and other operating costs	51,171			31,634		4,030		15,507			—
Restructuring and severance costs	199			44		—		155			—
Impairment charge	290			—		—		290			—
Gain from divestitures	(3,938		)	—		—		(3,938		)	—
Operating income (loss)	(603		)	3,058		531		(4,192		)	—
Other income (expense), net	(1,018		)
Income tax benefit	(767		)
Net loss	$	(854	)



	Six Months Ended April 29, 2018
	Total			North American Staffing		International Staffing		Corporate and Other (1)			Eliminations (2)
Net revenue	$	516,557		$	424,325	$	61,483	$	32,883		$	(2,134	)
Cost of services	443,247			366,287		52,177		26,917			(2,134		)
Gross margin	73,310			58,038		9,306		5,966			—

Selling, administrative and other operating costs	89,854			57,084		8,287		24,483			—
Restructuring and severance costs	622			9		299		314			—
Impairment charge	155			—		—		155			—
Operating income (loss)	(17,321		)	945		720		(18,986		)	—
Other income (expense), net	(1,790		)
Income tax benefit	(730		)
Net loss	$	(18,381	)



	Six Months Ended April 30, 2017
	Total			North American Staffing		International Staffing		Corporate and Other (1)			Eliminations (2)
Net revenue	$	616,029		$	465,669	$	60,581	$	92,499		$	(2,720	)
Cost of services	522,020			397,910		51,327		75,503			(2,720		)
Gross margin	94,009			67,759		9,254		16,996			—

Selling, administrative and other operating costs	100,061			61,733		8,071		30,257			—
Restructuring and severance costs	823			140		10		673			—
Impairment charge	290			—		—		290			—
Gain from divestitures	(3,938		)	—		—		(3,938		)	—
Operating income (loss)	(3,227		)	5,886		1,173		(10,286		)	—
Other income (expense), net	(2,348		)
Income tax benefit	(144		)
Net loss	$	(5,431	)

(1) Revenues are primarily derived from managed service programs and Volt Customer Care Solutions. In addition, the first half of fiscal 2017 included our previously owned Maintech and quality assurance businesses.

(2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions and our previously owned quality assurance business.