SEGMENT INFORMATION

12 Months Ended

Dec. 29, 2019

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 reportable segments are described below:

Our PeopleReady reportable segment provides blue-collar, contingent staffing through the PeopleReady operating segment. 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-site at the client’s facility, through the following operating segments, which we have aggregated into one reportable segment in accordance with U.S. GAAP:


•	Staff Management \| SMX and SIMOS Insourcing Solutions: On-site management and recruitment for the contingent industrial workforce of manufacturing, warehouse, and distribution facilities; and


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

Effective March 12, 2018, we divested the PlaneTechs business within our PeopleManagement reportable segment. For additional information, see Note 2: Acquisition and 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 have 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.

Effective June 12, 2018, we acquired TMP through PeopleScout. Accordingly, the results associated with the acquisition are included in our PeopleScout operating segment. TMP is a mid-sized RPO and employer branding service provider operating in the United Kingdom. This acquisition increases our ability to win multi-continent engagements by adding a physical presence in Europe, referenceable clients and employer branding capabilities. For additional information, see Note 2: Acquisitions and Divestiture.

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 adjustments not considered to be ongoing. The prior year amounts have been recast to reflect this change for consistency purposes.

The following table presents our revenue disaggregated by major source and segment and a reconciliation of segment revenue from services to total company revenue:



	Years ended
(in thousands)	December 29, 2019		December 30, 2018		December 31, 2017
Revenue from services:
Contingent staffing
PeopleReady	$	1,474,062	$	1,522,076	$	1,511,360
PeopleManagement	642,233		728,254		807,273
Human resource outsourcing
PeopleScout	252,484		248,877		190,138
Total company	$	2,368,779	$	2,499,207	$	2,508,771

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



	Years ended
(in thousands)	December 29, 2019			December 30, 2018			December 31, 2017
Segment profit:
PeopleReady	$	82,106		$	85,998		$	79,044
PeopleManagement	12,593			21,627			27,216
PeopleScout	37,831			47,383			39,354
	132,530			155,008			145,614
Corporate unallocated	(21,870		)	(26,066		)	(20,968		)
Work Opportunity Tax Credit processing fees	(960		)	(985		)	(805		)
Acquisition/integration costs	(1,562		)	(2,672		)	—
Gain on deferred compensation assets	(495		)	—			—
Other costs	(3,915		)	(10,317		)	(162		)
Depreciation and amortization	(37,549		)	(41,049		)	(46,115		)
Income from operations	66,179			73,919			77,564
Interest and other income (expense), net	3,865			1,744			(14		)
Income before tax expense	$	70,044		$	75,663		$	77,550

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

Our international operations are primarily in Canada, Australia and the United Kingdom. Revenue by region was as follows:



	Years ended
(in thousands, except percentages)	2019		%		2018		%		2017		%
United States	$	2,222,543	93.8	%	$	2,369,024	94.8	%	$	2,387,992	95.2	%
International operations	146,236		6.2		130,183		5.2		120,779		4.8
Total revenue from services	$	2,368,779	100.0	%	$	2,499,207	100.0	%	$	2,508,771	100.0	%

No single client represented more than 10% of total company revenue for fiscal 2019, 2018 or 2017. Client concentration for our reportable segments was as follows:


•	No single client represented 10.0% or more of our PeopleReady reportable segment revenue for fiscal 2019, 2018, or 2017.


•	One client represented 10.0% of our PeopleManagement reportable segment revenue for fiscal 2019. No single client represented 10.0% or more of our PeopleManagement reportable segment revenue for fiscal 2018 or 2017.


•	One client represented 12.5%,13.3% and 14.4% of our PeopleScout reportable segment revenue for fiscal 2019, 2018 and 2017, respectively. Another client represented 10.1% of our PeopleScout reportable segment revenue for fiscal 2017.

Net property and equipment located in international operations was approximately 6.8% and 7.3% of total property and equipment as of December 29, 2019 and December 30, 2018, respectively.