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Note 3 - Revenue Recognition | 9 Months Ended
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Sep. 26, 2020
Notes to Financial Statements |
Revenue from Contract with Customer [Text Block] |
3. | Revenue Recognition
The Company records revenue under Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers . Revenue is recognized when we satisfy a performance obligation by transferring services promised in a contract to a customer, in an amount that reflects the consideration that we expect to receive in exchange for those services. Performance obligations in our contracts represent distinct or separate service streams that we provide to our customers. We evaluate our revenue contracts with customers based on the five -step model under ASC 606: ( 1 ) Identify the contract with the customer; ( 2 ) Identify the performance obligations in the contract; ( 3 ) Determine the transaction price; ( 4 ) Allocate the transaction price to separate performance obligations; and ( 5 ) Recognize revenue when (or as) each performance obligation is satisfied. The Company derives its revenue from several sources. The Company's Engineering Services and Information Technology Services segments perform consulting and project solution services. The Healthcare segment specializes in long-term and short-term staffing and placement services to hospitals, schools and long-term care facilities amongst others. All of the Company's segments perform staff augmentation services and derive revenue from permanent placement fees. The majority of the Company's revenue is invoiced on a time and materials basis. The following table presents our revenue disaggregated by revenue source for the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019:
|  | Thirteen Week Periods Ended |  |  | Thirty-Nine Week Periods Ended |
|  | September 26, 2020 |  |  | September 28, 2019 |  |  | September 26, 2020 |  |  | September 28, 2019 |
Engineering: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time and Material |  | $ | 10,369 |  |  | $ | 13,938 |  |  | $ | 33,980 |  |  | $ | 41,309 |
Fixed Fee |  |  | 4,660 |  |  |  | 1,202 |  |  |  | 9,163 |  |  |  | 11,469 |
Permanent Placement Services |  |  | 58 |  |  |  | - |  |  |  | 145 |  |  |  | - |
Total Engineering |  | $ | 15,087 |  |  | $ | 15,140 |  |  | $ | 43,288 |  |  | $ | 52,778 |
Specialty Health Care: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time and Material |  | $ | 8,844 |  |  | $ | 16,272 |  |  | $ | 41,498 |  |  | $ | 63,318 |
Permanent Placement Services |  |  | 171 |  |  |  | 493 |  |  |  | 398 |  |  |  | 987 |
Total Specialty Health Care |  | $ | 9,015 |  |  | $ | 16,765 |  |  | $ | 41,896 |  |  | $ | 64,305 |
Information Technology: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time and Material |  | $ | 7,347 |  |  | $ | 8,134 |  |  | $ | 23,683 |  |  | $ | 25,084 |
Permanent Placement Services |  |  | 112 |  |  |  | 211 |  |  |  | 379 |  |  |  | 383 |
Total Information Technology |  | $ | 7,459 |  |  | $ | 8,345 |  |  | $ | 24,062 |  |  | $ | 25,467 |
|  | $ | 31,561 |  |  | $ | 40,250 |  |  | $ | 109,246 |  |  | $ | 142,550 |
Time and Material The Company's IT and Healthcare segments predominantly recognize revenue through time and material work while its Engineering segment recognizes revenue through both time and material and fixed fee work. The Company's time and material contracts are typically based on the number of hours worked at contractually agreed upon rates, therefore revenue associated with these time and materials contracts are recognized based on hours worked at contracted rates. Fixed fee From time to time and predominantly in our Engineering segment, the Company will enter into contracts requiring the completion of specific deliverables. The Company has master services agreements with many of its customers that broadly define terms and conditions. Actual services performed under fixed fee arrangements are typically delivered under purchase orders that more specifically define terms and conditions related to that fixed fee project. While these master services agreements can often span several years, the Company's fixed fee purchase orders are typically performed over six to nine month periods. In instances where project services are provided on a fixed-price basis, revenue is recorded in accordance with the terms of each contract. In certain instances, revenue is invoiced at the time certain milestones are reached, as defined in the contract. Revenue under these arrangements are recognized as the costs on these contracts are incurred. On an infrequent basis, amounts paid in excess of revenue earned and recognized are recorded as deferred revenue, included in accounts payable and accrued expenses on the accompanying condensed balance sheets. In other instances, revenue is billed and recorded based upon contractual rates per hour. Additionally, some contracts contain “Performance Fees” (bonuses) for completing a contract under budget. Performance Fees, if any, are recorded when earned. Some contracts also limit revenue and billings to specified maximum amounts. Provisions for contract losses, if any, are made in the period such losses are determined. For contracts where there is a specific deliverable and the work is not complete and the revenue is not recognized, the costs incurred are deferred as a prepaid asset. The associated costs are expensed when the related revenue is recognized. Permanent Placement Services The Company earns permanent placement fees from providing permanent placement services. These fees are typically based on a percentage of the compensation paid to the person placed with the Company's client. There was no deferred revenue as of September 26, 2020. Deferred revenue was $0.4 million as of December 28, 2019 and was included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet at that date. Revenue is recognized when the service has been performed. Deferred revenue may be recognized over a period exceeding one year from the time it was recorded on the balance sheet. For the thirty-nine week periods ended September 26, 2020 and September 28, 2019, respectively, the Company recognized revenue of $0.4 million and $0.2 million that was included in deferred revenue at the beginning of each respective reporting period. For the thirteen week period ended September 26, 2020, the Company recognized $0.3 million that was included in deferred revenue at the beginning of that reporting period. There was no revenue included in deferred revenue at the beginning of the September 28, 2019 reporting period.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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