Segment Disclosures

We report our segment data in accordance with the provisions of ASC 280, Segment Reporting, aligning with the way the Company evaluates its business performance and manages its operations.

During the fourth quarter of fiscal 2018, in accordance with ASC 280, the Company determined that its North American Managed Service Program (“MSP”) meets the criteria to be presented as a reportable segment. To provide period over period comparability, the Company has recast the prior period North American MSP segment data to conform to the current presentation in the prior period. This change did not have any impact on the consolidated financial results for any period presented. Our current reportable segments are (i) North American Staffing, (ii) International Staffing and (iii) North American MSP. 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. 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, settlement and impairment charges 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):



	Year Ended October 28, 2018
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	1,039,170		$	860,544	$	117,351	$	29,986	$	35,228		$	(3,939	)
Cost of services	885,492			735,050		98,640		22,637		33,104			(3,939		)
Gross margin	153,678			125,494		18,711		7,349		2,124			—

Selling, administrative and other operating costs	173,337			112,459		15,986		5,571		39,321			—
Restructuring and severance costs	8,242			932		328		145		6,837			—
Settlement and impairment charges	506			—		—		—		506			—
Operating income (loss)	(28,407		)	12,103		2,397		1,633		(44,540		)	—
Other income (expense), net	(3,320		)
Income tax provision	958
Net loss	$	(32,685	)



	Year Ended October 29, 2017
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	1,194,436		$	919,260	$	119,762	$	36,783	$	125,089		$	(6,458	)
Cost of services	1,007,041			782,405		101,064		29,309		100,721			(6,458		)
Gross margin	187,395			136,855		18,698		7,474		24,368			—

Selling, administrative and other operating costs	197,130			119,320		15,836		4,861		57,113			—
Restructuring and severance costs	1,379			382		14		—		983			—
Gain from divestitures	(51,971		)	—		—		—		(51,971		)	—
Settlement and impairment charges	1,694			—		—		—		1,694			—
Operating income	39,163			17,153		2,848		2,613		16,549			—
Other income (expense), net	(6,950		)
Income tax provision	3,388
Net income from continuing operations	28,825
Loss from discontinued operations, net of income taxes	(1,693		)
Net income	$	27,132

(1) Revenues are primarily derived from Volt Customer Care Solutions. In addition, fiscal 2017 included our previously owned quality assurance business as well as our information technology infrastructure services through the date of sale of Maintech in March 2017.

(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.

Assets of the Company by reportable operating segment are summarized in the following table (in thousands):



	October 28, 2018		October 29, 2017
Assets:
North American Staffing	$	121,510	$	128,695
International Staffing	27,765		36,773
North American MSP	20,194		28,296
Corporate & Other	67,227		91,045
Total Assets	$	236,696	$	284,809

Sales to external customers and long-lived assets of the Company by geographic area are as follows (in thousands):



	Year Ended
	October 28, 2018		October 29, 2017
Net Revenue:
Domestic	$	916,561	$	1,036,567
International, principally Europe	122,609		157,869
Total Net Revenue	$	1,039,170	$	1,194,436



	October 28, 2018		October 29, 2017
Long-Lived Assets:
Domestic	$	23,274	$	27,777
International	1,118		1,344
Total Long-Lived Assets	$	24,392	$	29,121

Capital expenditures and depreciation and amortization by the Company’s operating segments are as follows (in thousands):



	Year Ended
	October 28, 2018		October 29, 2017
Capital Expenditures:
North American Staffing	$	340	$	279
International Staffing	207		144
North American MSP	28		7
Corporate & Other	2,990		8,882
Total Capital Expenditures	$	3,565	$	9,312

Depreciation and Amortization:
North American Staffing	$	464	$	543
International Staffing	359		374
North American MSP	9		7
Corporate & Other	6,377		7,101
Total Depreciation and Amortization	$	7,209	$	8,025