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REVENUE RECOGNITION | 9 Months Ended
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Sep. 30, 2018
Revenue Recognition [Abstract] |
Revenue Recognition | REVENUE RECOGNITION Adoption of new revenue recognition guidance On January 1, 2018, we adopted new revenue recognition guidance using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue recognition guidance, while prior period amounts were not adjusted and continue to be reported in accordance with historic accounting guidance. The adoption of this new guidance did not have a material impact on our consolidated financial statements as of the adoption date, nor for the thirteen and thirty-nine weeks ended September 30, 2018, except for expanded disclosures. Revenue recognition We account for a contract when both parties to the contract have approved the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenues are recognized over time, using an output measure, as the control of the promised services is transferred to the client in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The majority of our contracts are short-term in nature as they are filling the temporary staffing needs of our clients, or include termination clauses that allow either party to cancel within a short termination period, without cause. Revenue includes billable travel and other reimbursable costs and are reported net of sales, use, or other transaction taxes collected from clients and remitted to taxing authorities. Payment terms vary by client and the services offered. We consider payment terms that exceed one year to be extended payment terms, however we do not extend payment terms beyond one year. Substantially all of our contracts include payment terms of 90 days or less. We primarily record revenue on a gross basis as a principal versus on a net basis as an agent in the Consolidated Statements of Operations and Comprehensive Income. We have determined that gross reporting as a principal is the appropriate treatment based upon the following key factors:
• | We maintain the direct contractual relationship with the client and are responsible for fulfilling the service promised to the client.
• | We demonstrate control over the services provided to our clients by being the employer of record for the individuals performing the service.
• | We establish our worker’s billing rate.
Contingent staffing We recognize revenue for our PeopleReady and PeopleManagement contingent staffing services over time as services are performed in an amount that reflects the consideration we expect to be entitled to in exchange for our services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our contingent staffing contracts. Costs are incurred to fulfill some contingent staffing contracts, however these costs are not material and are expensed as incurred. Human resource outsourcing We primarily recognize revenue for our PeopleScout outsourced recruitment of permanent employees over time in an amount that reflects the consideration we expect to be entitled to in exchange for our services. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our outsourced recruitment of permanent employees’ contracts. The costs to fulfill these contracts are not material and are expensed as incurred. Unsatisfied performance obligations As a practical expedient, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an expected original duration of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Disaggregated revenue The following table presents our revenue disaggregated by major source:
| Thirteen weeks ended |  | September 30, 2018
(in thousands) | PeopleReady | PeopleManagement | PeopleScout | Consolidated
Revenue from services: |  |  |  |
Contingent staffing | $ | 428,665 |  | $ | 181,199 |  | $ | — |  | $ | 609,864 |
Human resource outsourcing | — |  | — |  | 70,507 |  | 70,507 |
Total company | $ | 428,665 |  | $ | 181,199 |  | $ | 70,507 |  | $ | 680,371 |
| Thirty-nine weeks ended |  | September 30, 2018
(in thousands) | PeopleReady | PeopleManagement | PeopleScout | Consolidated
Revenue from services: |  |  |  |
Contingent staffing | $ | 1,122,960 |  | $ | 543,930 |  | $ | — |  | $ | 1,666,890 |
Human resource outsourcing | — |  | — |  | 182,170 |  | 182,170 |
Total company | $ | 1,122,960 |  | $ | 543,930 |  | $ | 182,170 |  | $ | 1,849,060 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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