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DIVESTITURE
3 Months Ended
Apr. 01, 2018
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]  
DIVESTITURE
DIVESTITURE
In mid-March 2018, the company entered into an asset purchase agreement to sell substantially all the assets and certain liabilities of its PlaneTechs service line to Launch Technical Workforce Solutions (“Launch”) for a purchase price of $11.4 million, of which $8.5 million was paid in cash, and $1.6 million in a note due within six months following the closing date, which is included in prepaid expenses, deposits and other current assets on the Consolidated Balance Sheet. The remaining balance consists of the preliminary working capital adjustment to be paid in cash during the fiscal second quarter of 2018, which is included in prepaid expenses, deposit and other current assets on the Consolidated Balance Sheet. The company recognized a preliminary pre-tax gain on the divestiture of $1.4 million, which is included in interest and other income on the Consolidated Statements of Operations and Comprehensive Income for the thirteen weeks ended April 1, 2018. Fiscal first quarter revenue through the closing date of the divestiture for the PlaneTechs service line of $8.0 million was reported in the PeopleManagement reportable segment.
The divestiture of PlaneTechs did not represent a strategic shift with a major effect on the company’s operations and financial results and, therefore was not reported as discontinued operations in the Consolidated Balance Sheets or Consolidated Statements of Operations and Comprehensive Income for the periods presented.
The company has agreed to provide certain transition services to Launch for a period not to exceed seven months, which includes various back office services to support the PlaneTechs branch offices until personnel and systems are transferred to Launch.