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Segment Disclosures
12 Months Ended
Nov. 03, 2019
Segment Reporting [Abstract]  
Segment Disclosures
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. 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 June 2019, the Company exited its customer care solutions business, which was currently reported as a part of the Corporate and Other category. This exit allows 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 continued 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, 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 November 3, 2019
 
Total
 
North American Staffing
 
 International Staffing
 
North American
MSP
 
Corporate and Other (1)
 
Eliminations (2)
Net revenue
$
997,090

 
$
830,947

 
$
114,377

 
$
39,010

 
$
15,320

 
$
(2,564
)
Cost of services
844,527

 
708,824

 
95,552

 
28,324

 
14,391

 
(2,564
)
Gross margin
152,563

 
122,123

 
18,825

 
10,686

 
929

 

 


 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
157,052

 
103,437

 
15,422

 
5,595

 
32,598

 

Restructuring and severance costs
4,656

 
719

 
510

 
68

 
3,359

 

Impairment charges
688

 
4

 

 

 
684

 

Operating income (loss)
(9,833
)
 
17,963

 
2,893

 
5,023

 
(35,712
)
 

Other income (expense), net
(4,375
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
978

 
 
 
 
 
 
 
 
 
 
Net loss
$
(15,186
)
 
 
 
 
 
 
 
 
 
 


 
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

 

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
)
 
 
 
 
 
 
 
 
 
 

(1) Revenues are primarily derived from Volt Customer Care Solutions business through June 7, 2019.
(2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions business.


Assets of the Company by reportable segment are summarized in the following table (in thousands):
 
November 3,
2019
 
October 28,
2018
Assets:
 
 
 
North American Staffing
$
109,067

 
$
121,510

International Staffing
30,327

 
27,765

North American MSP
19,196

 
20,194

Corporate & Other
59,414

 
67,227

Total Assets
$
218,004

 
$
236,696



Sales to external customers and long-lived assets of the Company by geographic area are as follows (in thousands):
 
Year Ended
 
November 3,
2019
 
October 28,
2018
Net Revenue:
 
 
 
Domestic
$
878,095

 
$
916,561

International
118,995

 
122,609

Total Net Revenue
$
997,090

 
$
1,039,170

 
November 3,
2019
 
October 28,
2018
Long-Lived Assets:
 
 
 
Domestic
$
24,525

 
$
23,274

International
1,365

 
1,118

Total Long-Lived Assets
$
25,890

 
$
24,392



Capital expenditures and depreciation and amortization by the Company’s operating segments are as follows (in thousands):
 
Year Ended
 
November 3,
2019
 
October 28,
2018
Capital Expenditures:
 
 
 
North American Staffing
$
415

 
$
340

International Staffing
315

 
207

North American MSP
295

 
28

Corporate & Other
8,028

 
2,990

Total Capital Expenditures
$
9,053

 
$
3,565

 
 
 
 
Depreciation and Amortization:
 
 
 
North American Staffing
$
415

 
$
464

International Staffing
281

 
359

North American MSP
50

 
9

Corporate & Other
6,209

 
6,377

Total Depreciation and Amortization
$
6,955

 
$
7,209