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SEGMENT INFORMATION
 12 Months Ended
Jan. 01, 2017
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 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 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 customer’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;
•
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 customers; and
•
PeopleScout MSP: Management of multiple third party staffing vendors on behalf of customers.
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 expense, and goodwill and intangible impairment charges directly attributable to the reportable segment together with certain allocated corporate general and administrative expense. Segment EBITDA excludes unallocated corporate general and administrative expense.

The following table presents a reconciliation of segment revenue from services to total company revenue:
 
Years ended
(in thousands)
2017
2016
2015
Revenue from services:
 
 
 
PeopleReady
$
1,511,360

$
1,629,455

$
1,625,817

PeopleManagement
807,273

940,453

965,331

PeopleScout
190,138

180,732

104,532

Total company
$
2,508,771

$
2,750,640

$
2,695,680


The following table presents a reconciliation of segment EBITDA to income (loss) before tax expense:
 
Years ended
(in thousands)
2017
2016
2015
Segment EBITDA (1):
 
 
 
PeopleReady
$
78,372

$
101,270

$
123,899

PeopleManagement
27,043

(60,452
)
36,512

PeopleScout
39,232

19,116

9,324

 
144,647

59,934

169,735

Corporate unallocated
(20,968
)
(30,237
)
(30,050
)
Depreciation and amortization
(46,115
)
(46,692
)
(41,843
)
Income (loss) from operations
77,564

(16,995
)
97,842

Interest and other expense, net
(14
)
(3,345
)
(1,395
)
Income (loss) before tax expense
$
77,550

$
(20,340
)
$
96,447


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

Our international operations are primarily in Canada and Australia. Revenues by region were as follows:
 
Years ended
(in thousands, except percentages)
2017
%
2016
%
2015
%
United States
$
2,387,992

95.2
%
$
2,644,414

96.1
%
$
2,603,085

96.6
%
International operations
120,779

4.8
%
106,226

3.9
%
92,595

3.4
%
Total revenue from services
$
2,508,771

100.0
%
$
2,750,640

100.0
%
$
2,695,680

100.0
%


No single customer represented more than 10% of total company revenue for fiscal 2017 nor 2016. One customer represented 13.1% of total company revenue for fiscal 2015. Customer concentration for our reportable segments is as follows:

•
No single customer represented more than 10.0% of our PeopleReady reportable segment revenue for fiscal 2017, 2016, nor 2015.
•
No single customer represented more than 10.0% of our PeopleManagement reportable segment revenue for fiscal 2017. One customer represented 18.2% and 36.7% of our PeopleManagement reportable segment revenue in fiscal 2016 and 2015, respectively.
•
Two customers represented 14.4% and 10.1%, respectively of our PeopleScout reportable segment revenue for fiscal 2017, and 12.8% and 10.0%, respectively for fiscal 2016. Two different customers represented 10.6% and 10.2%, respectively of our PeopleScout reportable segment revenue for fiscal 2015.

Net property and equipment located in international operations was approximately 9.1% and 7.1% of total property and equipment as of December 31, 2017 and January 1, 2017, respectively.