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SEGMENT INFORMATION
 9 Months Ended
Oct. 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.
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: Recruitment and on-premise management of skilled mechanics and technicians 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, selling, general and administrative expenses, and goodwill and intangible impairment charges 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:
 
Thirteen weeks ended
 
Thirty-nine weeks ended
(in thousands)
October 1,
2017
September 23,
2016
 
October 1,
2017
September 23,
2016
Revenue from services:
 
 
 
 
 
PeopleReady
$
414,995

$
435,783

 
$
1,118,331

$
1,198,067

PeopleManagement
196,835

216,834

 
581,408

682,605

PeopleScout
48,950

44,480

 
139,407

135,017

Total Company
$
660,780

$
697,097


$
1,839,146

$
2,015,689



The following table presents a reconciliation of Segment EBITDA to income (loss) before tax expense:
 
Thirteen weeks ended
 
Thirty-nine weeks ended
(in thousands)
October 1,
2017
September 23,
2016
 
October 1,
2017
September 23,
2016
Segment EBITDA (1):
 
 
 
 
 
PeopleReady
$
28,572

$
34,100

 
$
57,448

$
75,198

PeopleManagement
6,940

3,520

 
18,759

(70,218
)
PeopleScout
10,277

8,358

 
29,071

12,527

 
45,789

45,978

 
105,278

17,507

Corporate unallocated
(5,322
)
(6,537
)
 
(16,700
)
(23,310
)
Depreciation and amortization
(11,189
)
(11,690
)
 
(34,650
)
(34,673
)
Income (loss) from operations
29,278

27,751

 
53,928

(40,476
)
Interest and other income (expense), net
(219
)
(867
)
 
10

(2,773
)
Income (loss) before tax expense
$
29,059

$
26,884

 
$
53,938

$
(43,249
)

(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.