Segment Disclosures

12 Months Ended

Nov. 01, 2020

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 reported as a part of the Corporate and Other category. This exit allowed 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 1, 2020
	Total		North American Staffing		International Staffing		North American MSP		Corporate and Other		Eliminations
Net revenue	$	822,055	$	689,095	$	95,308	$	37,915	$	674	$	(937)
Cost of services	694,204		586,255		79,087		29,471		328		(937)
Gross margin	127,851		102,840		16,221		8,444		346		—
Selling, administrative and other operating costs	137,666		85,776		14,484		5,370		32,036		—
Restructuring and severance costs	2,641		883		338		—		1,420		—
Impairment charges	16,913		1,859		—		—		15,054		—
Operating income (loss)	(29,369)		14,322		1,399		3,074		(48,164)		—
Other income (expense), net	(3,173)
Income tax provision	1,045
Net loss	$	(33,587)

	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)

(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 1, 2020		November 3, 2019
Assets:
North American Staffing	$	105,516	$	109,067
International Staffing	26,989		30,327
North American MSP	24,742		19,196
Corporate & Other	84,598		59,414
Total Assets	$	241,845	$	218,004

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

	Year Ended
	November 1, 2020		November 3, 2019
Net Revenue:
Domestic	$	722,985	$	878,095
International	99,070		118,995
Total Net Revenue	$	822,055	$	997,090

	November 1, 2020		November 3, 2019
Long-Lived Assets:	(1)
Domestic	$	44,500	$	24,525
International	2,774		1,365
Total Long-Lived Assets	$	47,274	$	25,890
(1) Long-lived assets in Fiscal 2020 includes the ROU assets resulting from the adoption of ASC 842, Leases.

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

	Year Ended
	November 1, 2020		November 3, 2019
Capital Expenditures:
North American Staffing	$	474	$	415
International Staffing	292		315
North American MSP	372		295
Corporate & Other	4,130		8,028
Total Capital Expenditures	$	5,268	$	9,053
Depreciation and Amortization:
North American Staffing	$	339	$	415
International Staffing	322		281
North American MSP	152		50
Corporate & Other	7,168		6,209
Total Depreciation and Amortization	$	7,981	$	6,955