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 operating segments, also referred to as service lines, and reportable segments are described below:

Our PeopleReady reportable segment provides blue-collar, contingent staffing through the PeopleReady operating segment. 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 client’s facility, through the following operating segments, which we have 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; and


•	Centerline Drivers: Recruitment and management of temporary and dedicated drivers to the transportation and distribution industries.

Effective March 12, 2018, we divested the PlaneTechs operating segment within our PeopleManagement reportable segment to Launch Technical Workforce Solutions. For additional information, see Note 3: Acquisition and divestiture.

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 have 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.

Effective June 12, 2018, we acquired TMP Holdings LTD, through our PeopleScout subsidiary. Accordingly, the results associated with the acquisition are included in our PeopleScout operating segment. TMP is a mid-sized RPO and employer branding service provider operating in the United Kingdom which is the second largest RPO market in the world. This acquisition increases our ability to win multi-continent engagements by adding a physical presence in Europe, referenceable clients and employer branding capabilities. For additional information, see Note 3: Acquisition and divestiture.

We evaluate performance based on segment revenue and segment profit. Inter-segment revenue is minimal. Commencing in the fiscal first quarter of 2018, we revised our internal segment performance measure to be segment profit, rather than the previously reported segment earnings before interest, taxes, depreciation and amortization (segment EBITDA). Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit excludes goodwill and intangible impairment charges, depreciation and amortization expense, unallocated corporate general and administrative expense, interest, other income and expense, income taxes, and costs not considered to be ongoing costs of the segment. The prior year amounts have been recast to reflect this change for consistency purposes.

The following table presents a reconciliation of segment revenue from services to total company revenue:



	Thirteen weeks ended				Twenty-six weeks ended
(in thousands)	July 1, 2018		July 2, 2017		July 1, 2018		July 2, 2017
Revenue from services:
PeopleReady	$	377,460	$	370,712	$	694,295	$	703,336
PeopleManagement	178,839		192,887		362,731		384,573
PeopleScout	58,002		46,523		111,663		90,457
Total company	$	614,301	$	610,122	$	1,168,689	$	1,178,366

The following table presents a reconciliation of Segment profit to income before tax expense:



	Thirteen weeks ended						Twenty-six weeks ended
(in thousands)	July 1, 2018			July 2, 2017			July 1, 2018			July 2, 2017
Segment profit:
PeopleReady	$	23,198		$	19,170		$	32,723		$	29,164
PeopleManagement	4,712			6,286			10,361			11,819
PeopleScout	11,320			10,129			23,225			18,794
	39,230			35,585			66,309			59,777
Corporate unallocated	(5,868		)	(5,043		)	(13,532		)	(11,378		)
Work Opportunity Tax Credit processing fees	(264		)	(16		)	(459		)	(288		)
Acquisition/integration costs	(457		)	—			(457		)	—
Other costs	(1,264		)	—			(2,979		)	—
Depreciation and amortization	(10,101		)	(12,287		)	(20,191		)	(23,461		)
Income from operations	21,276			18,239			28,691			24,650
Interest and other income (expense), net	(968		)	155			1,236			229
Income before tax expense	$	20,308		$	18,394		$	29,927		$	24,879

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