Segment Data

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

During the fourth quarter of fiscal 2018, in accordance with ASC 280, the Company determined that its North American Managed Service Program (“MSP”) met 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.

In the third quarter of fiscal 2019, the Company will exit its customer care solutions business, which is currently reported as a part of the Corporate and Other category. This exit will enable the Company to further strengthen its focus on its core staffing business and align its resources to streamline operations, improve cost competitiveness and increase profitability. The Company’s other non-reportable businesses will continue to be combined and disclosed with corporate services under the category Corporate and Other.

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 28, 2019
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	252,070		$	208,871	$	28,809	$	9,579	$	5,431		$	(620	)
Cost of services	215,813			179,678		24,095		7,186		5,474			(620		)
Gross margin	36,257			29,193		4,714		2,393		(43		)	—

Selling, administrative and other operating costs	38,939			26,439		3,894		1,252		7,354			—
Restructuring and severance costs	724			210		192		41		281			—
Impairment charge	347			—		—		—		347			—
Operating income (loss)	(3,753		)	2,544		628		1,100		(8,025		)	—
Other income (expense), net	(1,179		)
Income tax provision	233
Net loss	$	(5,165	)



	Three Months Ended April 29, 2018
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	263,219		$	218,090	$	31,904	$	6,339	$	7,817		$	(931	)
Cost of services	225,918			187,929		27,100		4,498		7,322			(931		)
Gross margin	37,301			30,161		4,804		1,841		495			—

Selling, administrative and other operating costs	42,916			28,586		3,915		1,397		9,018			—
Restructuring and severance costs	104			4		71		27		2			—
Impairment charge	155			—		—		—		155			—
Operating income (loss)	(5,874		)	1,571		818		417		(8,680		)	—
Other income (expense), net	(1,183		)
Income tax provision	630
Net loss	$	(7,687	)



	Six Months Ended April 28, 2019
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	505,506		$	420,719	$	55,075	$	17,796	$	13,277		$	(1,361	)
Cost of services	431,550			361,363		46,233		13,104		12,211			(1,361		)
Gross margin	73,956			59,356		8,842		4,692		1,066			—

Selling, administrative and other operating costs	78,749			52,717		7,636		2,559		15,837			—
Restructuring and severance costs	783			208		274		68		233			—
Impairment charge	347			—		—		—		347			—
Operating income (loss)	(5,923		)	6,431		932		2,065		(15,351		)	—
Other income (expense), net	(1,951		)
Income tax provision	506
Net loss	$	(8,380	)



	Six Months Ended April 29, 2018
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	516,557		$	424,325	$	61,483	$	14,819	$	18,064		$	(2,134	)
Cost of services	443,247			366,287		52,177		11,259		15,658			(2,134		)
Gross margin	73,310			58,038		9,306		3,560		2,406			—

Selling, administrative and other operating costs	89,854			57,084		8,287		2,799		21,684			—
Restructuring and severance costs	622			9		299		79		235			—
Impairment charge	155			—		—		—		155			—
Operating income (loss)	(17,321		)	945		720		682		(19,668		)	—
Other income (expense), net	(1,790		)
Income tax benefit	(730		)
Net loss	$	(18,381	)

(1) Revenues are primarily derived from Volt Customer Care Solutions.

(2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions.