SEGMENT INFORMATION

3 Months Ended

Apr. 01, 2018

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Our operating segments are based on the organizational structure for which financial results are regularly reviewed by our chief operating decision-maker, our Chief Executive Officer, to determine resource allocation and assess performance. Our operating segments, also referred to as service lines, and our 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 a broad range of industries that include construction, manufacturing and logistics, warehousing and distribution, waste and recycling, hospitality, general labor and others.

Our PeopleManagement reportable segment provides contingent labor and outsourced industrial workforce solutions, primarily on-premise at the client’s facility, through the following operating segments, which we aggregated into one reportable segment in accordance with U.S. GAAP:

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

• SIMOS Insourcing Solutions: On-premise management and recruitment of warehouse/distribution operations; and

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

Effective March 12, 2018, we divested the PlaneTechs service line within our PeopleManagement reportable segment to Launch Technical Workforce Solutions. For additional information, see Note 3: Divestiture.

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 evaluate performance based on segment revenue and segment profit. Inter-segment revenue is minimal. Commencing in the fiscal first quarter of 2018, we revised our internal segment performance measure to be segment profit, rather than the previously reported segment earnings before interest, taxes, depreciation and amortization (segment EBITDA). Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit excludes goodwill and intangible impairment charges, depreciation and amortization expense, unallocated corporate general and administrative expense, interest, other income and expense, income taxes, and costs not considered to be ongoing costs of the segment. The prior year amounts have been recast to reflect this change for consistency purposes.

The following table presents a reconciliation of segment revenue from services to total company revenue:

	Thirteen weeks ended
(in thousands)	April 1, 2018		April 2, 2017
Revenue from services:
PeopleReady	$	316,835	$	332,624
PeopleManagement	183,892		191,686
PeopleScout	53,661		43,934
Total company	$	554,388	$	568,244

The following table presents a reconciliation of Segment profit to income before tax expense:

	Thirteen weeks ended
(in thousands)	April 1, 2018			April 2, 2017
Segment profit:
PeopleReady	$	9,525		$	9,994
PeopleManagement	5,649			5,533
PeopleScout	11,905			8,665
	27,079			24,192
Corporate unallocated	(7,664		)	(6,335		)
Work Opportunity Tax Credit processing fees	(195		)	(272		)
Cloud-based software implementation costs	(1,715		)	—
Depreciation and amortization	(10,090		)	(11,174		)
Income from operations	7,415			6,411
Interest and other income (expense), net	2,204			74
Income before tax expense	$	9,619		$	6,485

Asset information by reportable segment is not presented since we do not manage our segments on a balance sheet basis.