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 exited 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, restructuring and severance costs, and impairment charges. 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 28, 2019
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	233,176		$	193,641	$	28,728	$	9,555	$	1,856		$	(604	)
Cost of services	197,528			164,809		24,181		7,053		2,089			(604		)
Gross margin	35,648			28,832		4,547		2,502		(233		)	—

Selling, administrative and other operating costs	38,395			24,346		4,023		1,382		8,644			—
Restructuring and severance costs	2,017			121		182		—		1,714			—
Impairment charge	79			—		—		—		79			—
Operating income (loss)	(4,843		)	4,365		342		1,120		(10,670		)	—
Other income (expense), net	(1,049		)
Income tax provision	165
Net loss	$	(6,057	)



	Three Months Ended July 29, 2018
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	257,808		$	215,679	$	28,579	$	6,959	$	7,456		$	(865	)
Cost of services	221,448			184,724		23,917		5,400		8,272			(865		)
Gross margin	36,360			30,955		4,662		1,559		(816		)	—

Selling, administrative and other operating costs	42,222			27,971		3,944		1,414		8,893			—
Restructuring and severance costs	3,108			23		41		38		3,006			—
Operating income (loss)	(8,970		)	2,961		677		107		(12,715		)	—
Other income (expense), net	(1,142		)
Income tax provision	1,306
Net loss	$	(11,418	)



	Nine Months Ended July 28, 2019
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	738,682		$	614,360	$	83,803	$	27,351	$	15,133		$	(1,965	)
Cost of services	629,078			526,172		70,414		20,157		14,300			(1,965		)
Gross margin	109,604			88,188		13,389		7,194		833			—

Selling, administrative and other operating costs	117,144			77,063		11,659		3,941		24,481			—
Restructuring and severance costs	2,800			329		456		68		1,947			—
Impairment charge	426			—		—		—		426			—
Operating income (loss)	(10,766		)	10,796		1,274		3,185		(26,021		)	—
Other income (expense), net	(3,000		)
Income tax provision	671
Net loss	$	(14,437	)



	Nine Months Ended July 29, 2018
	Total			North American Staffing		International Staffing		North American MSP		Corporate and Other (1)			Eliminations (2)
Net revenue	$	774,365		$	640,004	$	90,062	$	21,778	$	25,520		$	(2,999	)
Cost of services	664,695			551,011		76,094		16,659		23,930			(2,999		)
Gross margin	109,670			88,993		13,968		5,119		1,590			—

Selling, administrative and other operating costs	132,076			85,055		12,231		4,213		30,577			—
Restructuring and severance costs	3,730			32		340		117		3,241			—
Impairment charge	155			—		—		—		155			—
Operating income (loss)	(26,291		)	3,906		1,397		789		(32,383		)	—
Other income (expense), net	(2,932		)
Income tax provision	576
Net loss	$	(29,799	)

(1) Revenues are primarily derived from Volt Customer Care Solutions through June 7, 2019.

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