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SEGMENT INFORMATION
 6 Months Ended
Jul. 02, 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.

Our service lines, which are our operating segments, 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 the retail, manufacturing, warehousing, logistics, energy, construction, hospitality, and other industries.
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 | 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;
•
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 primary measures of segment performance: revenue from services and segment earnings before interest, taxes, depreciation and amortization (“Segment EBITDA”). Segment EBITDA includes net sales to third parties, related cost of sales, and selling, general and administrative expenses directly attributable to the reportable segment together with certain allocated corporate general and administrative expenses. Segment EBITDA excludes unallocated corporate general and administrative expenses.

The following table presents a reconciliation of segment revenue from services to total company revenue (in thousands):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
July 2, 2017
 
June 24, 2016
 
July 2, 2017

June 24, 2016
Revenue from services:
 
 
 
 
 
 
 
PeopleReady
$
370,712

 
$
406,274

 
$
703,336

 
$
762,284

PeopleManagement
192,887

 
219,344

 
384,573

 
465,771

PeopleScout
46,523

 
46,994

 
90,457

 
90,537

Total Company
$
610,122


$
672,612


$
1,178,366

 
$
1,318,592



The following table presents a reconciliation of Segment EBITDA to income (loss) before tax expense (in thousands):
 
Thirteen weeks ended
 
Twenty-six weeks ended
 
July 2, 2017
 
June 24, 2016
 
July 2, 2017
 
June 24, 2016
Segment EBITDA (1):
 
 
 
 
 
 
 
PeopleReady
$
19,154

 
$
29,543

 
$
28,876

 
$
41,098

PeopleManagement
6,286

 
(80,091
)
 
11,819

 
(73,738
)
PeopleScout
10,129

 
(3,841
)
 
18,794

 
4,169

 
35,569

 
(54,389
)
 
59,489

 
(28,471
)
Corporate unallocated
(5,043
)
 
(10,743
)
 
(11,378
)
 
(16,773
)
Depreciation and amortization
(12,287
)
 
(11,694
)
 
(23,461
)
 
(22,983
)
Income (loss) from operations
18,239

 
(76,826
)
 
24,650

 
(68,227
)
Interest and other income (expense), net
155

 
(887
)
 
229

 
(1,906
)
Income (loss) before tax expense
$
18,394

 
$
(77,713
)
 
$
24,879

 
$
(70,133
)

(1)
Segment EBITDA was previously referred to as segment income (loss) from operations. This change had no impact on the amounts reported.

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