SEGMENT INFORMATION

12 Months Ended

Jan. 01, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Commencing in the fourth quarter of 2016, we changed our internal reporting structure to better align our operations with customer needs and how our chief operating decision maker, our Chief Executive Officer, currently evaluates financial results to determine resource allocation and assess performance. As a result of this change, our former Staffing Services reportable segment has been separated into two reportable segments, PeopleReady and PeopleManagement, and our former Managed Services reportable segment has been renamed PeopleScout. In addition, we changed our methodology for allocating certain corporate costs to our segments, which decreased our corporate unallocated expenses. The prior year amounts have been recast to reflect this change for consistency purposes.

In the second quarter of fiscal 2016, we finalized the changes to the organizational and reporting structure of our PeopleScout and hrX service lines. As a result, we have combined these service lines and they no longer represent separate operating units. At the end of the third quarter of fiscal 2016, we finalized the changes to the organizational and reporting structure of our Labor Ready, Spartan Staffing, and CLP Resources retail branch service lines. The combined service lines were re-branded as PeopleReady. As a result, we have combined these service lines and they no longer represent separate operating units.

Effective January 4, 2016, our PeopleScout service line acquired certain assets and assumed certain liabilities of the RPO business of Aon Hewitt, which expands our RPO service offering. The RPO business of Aon Hewitt has been integrated into our PeopleScout service line, which is part of our PeopleScout reportable segment. Effective December 1, 2015, we acquired SIMOS, which broadens our on-premise contingent staffing solution and is part of our PeopleManagement reportable segment. Effective June 30, 2014, we acquired Seaton, which added a full service line of on-premise blue-collar staffing, complementary service offerings in recruitment process outsourcing, and managed services provider solutions.

Our service lines, which are our operating segments, and reportable segments are described below:

Our PeopleReady reportable segment provides blue-collar contingent staffing through the PeopleReady service line. PeopleReady provides on-demand and skilled labor in the manufacturing, logistics, and energy construction industries, as well as building and plant maintenance.

Our PeopleManagement reportable segment provides primarily on-premise contingent staffing and on-premise management of those contingent staffing services through the following operating segments, which we aggregated into one reportable segment in accordance with U.S. GAAP:

• Staff Management: Exclusive recruitment and on-premise management of a facility's contingent industrial workforce;

• SIMOS: On-premise management and recruitment of a facility's contingent industrial workforce;

• Centerline Drivers: Recruitment and management of temporary and dedicated drivers to the transportation and distribution industries; and

• PlaneTechs: Skilled mechanics and technicians, including on-premise management thereof, to the aviation and transportation industries.

Our PeopleScout reportable segment provides high-volume permanent employee recruitment process outsourcing and management of outsourced labor service providers through the following operating segments, which we aggregated into one reportable segment in accordance with U.S. GAAP:

• PeopleScout: Outsourced recruitment of permanent employees on behalf of clients; and

• PeopleScout MSP: Management of multiple third party staffing vendors on behalf of clients.

We have two measures of segment performance: revenue from services and income from operations. Income from operations for each segment includes net sales to third parties, related cost of sales, and operating expenses directly attributable to the segment. Costs excluded from segment income from operations include various corporate general and administrative expenses, depreciation and amortization expense, and interest and other expense, net. Asset information by reportable segment is not presented since we do not manage our segments on a balance sheet basis. There are no material internal revenue transactions between our reporting segments.

Revenue from services and income (loss) from operations associated with our segments were as follows (in thousands):

	2016			2015			2014
Revenue from services
PeopleReady	$	1,629,455		$	1,625,817		$	1,534,547
PeopleManagement	940,453			965,331			591,366
PeopleScout	180,732			104,532			48,132
Total Company	$	2,750,640		$	2,695,680		$	2,174,045
Income (loss) from operations
PeopleReady	$	101,270		$	123,899		$	105,731
PeopleManagement	(60,452		)	36,512			28,828
PeopleScout	19,116			9,324			3,074
Depreciation and amortization	(46,692		)	(41,843		)	(29,474		)
Corporate unallocated	(30,237		)	(30,050		)	(26,431		)
Total Company	(16,995		)	97,842			81,728
Interest and other income (expense), net	(3,345		)	(1,395		)	116
Income (loss) before tax expense	$	(20,340	)	$	96,447		$	81,844

Our international operations are primarily in Canada and Australia. Revenues by region were as follows (in thousands, except percentages):

	2016				2015				2014
United States	$	2,644,414	96.1	%	$	2,603,085	96.6	%	$	2,096,958	96.5	%
International operations	106,226		3.9	%	92,595		3.4	%	77,087		3.5	%
Total revenue from services	$	2,750,640	100.0	%	$	2,695,680	100.0	%	$	2,174,045	100.0	%

No single customer represented more than 10% of total Company revenue for fiscal 2016 nor 2014. One customer represented 13.1% of total Company revenue for fiscal 2015. Customer concentration for our reportable segments is as follows:

• No single customer represented more than 10% of our PeopleReady reportable segment revenue for fiscal 2016, 2015, or 2014.

• One customer represented 18.2%, 36.7%, and 30.6% of our PeopleManagement reportable segment revenue in fiscal 2016, 2015, and 2014, respectively.

• Two customers represented 12.8% and 10.0%, respectively of our PeopleScout reportable segment revenue for fiscal 2016. Two customers represented 10.6% and 10.2%, respectively of our PeopleScout reportable segment revenue for fiscal 2015, which were different from those in fiscal 2016. No single customer represented more than 10% of our PeopleScout reportable segment revenue for fiscal 2014.

Net property and equipment located in international operations was approximately 7% and 2% of total property and equipment as of January 1, 2017 and December 25, 2015, respectively.