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 July 29, 2018
	Total			North American Staffing		International Staffing		Corporate and Other (1)			Eliminations (2)
Net revenue	$	257,808		$	215,679	$	28,579	$	14,415		$	(865	)
Cost of services	221,448			184,724		23,917		13,672			(865		)
Gross margin	36,360			30,955		4,662		743			—

Selling, administrative and other operating costs	42,222			27,971		3,944		10,307			—
Restructuring and severance costs	3,108			23		41		3,044			—
Operating income (loss)	(8,970		)	2,961		677		(12,608		)	—
Other income (expense), net	(1,142		)
Income tax provision	1,306
Net loss	$	(11,418	)



	Three Months Ended July 30, 2017
	Total			North American Staffing		International Staffing		Corporate and Other (1)			Eliminations (2)
Net revenue	$	289,924		$	229,372	$	29,018	$	33,365		$	(1,831	)
Cost of services	244,205			194,594		24,459		26,983			(1,831		)
Gross margin	45,719			34,778		4,559		6,382			—

Selling, administrative and other operating costs	46,931			28,962		3,824		14,145			—
Restructuring and severance costs	249			75		4		170			—
Operating income (loss)	(1,461		)	5,741		731		(7,933		)	—
Other income (expense), net	(2,983		)
Income tax provision	1,074
Net loss	$	(5,518	)



	Nine Months Ended July 29, 2018
	Total			North American Staffing		International Staffing		Corporate and Other (1)			Eliminations (2)
Net revenue	$	774,365		$	640,004	$	90,062	$	47,298		$	(2,999	)
Cost of services	664,695			551,011		76,094		40,589			(2,999		)
Gross margin	109,670			88,993		13,968		6,709			—

Selling, administrative and other operating costs	132,076			85,055		12,231		34,790			—
Restructuring and severance costs	3,730			32		340		3,358			—
Impairment charge	155			—		—		155			—
Operating income (loss)	(26,291		)	3,906		1,397		(31,594		)	—
Other income (expense), net	(2,932		)
Income tax provision	576
Net loss	$	(29,799	)



	Nine Months Ended July 30, 2017
	Total			North American Staffing		International Staffing		Corporate and Other (1)			Eliminations (2)
Net revenue	$	905,953		$	695,041	$	89,599	$	125,864		$	(4,551	)
Cost of services	766,225			592,504		75,786		102,486			(4,551		)
Gross margin	139,728			102,537		13,813		23,378			—

Selling, administrative and other operating costs	146,992			90,695		11,895		44,402			—
Restructuring and severance costs	1,072			215		14		843			—
Impairment charge	290			—		—		290			—
Gain from divestitures	(3,938		)	—		—		(3,938		)	—
Operating income (loss)	(4,688		)	11,627		1,904		(18,219		)	—
Other income (expense), net	(5,331		)
Income tax provision	930
Net loss	$	(10,949	)

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

(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.