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: 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 business within our PeopleManagement reportable segment. For additional information, see Note 3: Acquisitions 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 through PeopleScout. 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: Acquisitions 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:



	Years ended
(in thousands)	December 30, 2018		December 31, 2017		January 1, 2017
Revenue from services:
PeopleReady	$	1,522,076	$	1,511,360	$	1,629,455
PeopleManagement	728,254		807,273		940,453
PeopleScout	248,877		190,138		180,732
Total company	$	2,499,207	$	2,508,771	$	2,750,640

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



	Years ended
(in thousands)	December 30, 2018			December 31, 2017			January 1, 2017
Segment profit:
PeopleReady	$	85,998		$	79,044		$	109,063
PeopleManagement	21,627			27,216			27,557
PeopleScout	47,383			39,354			34,285
	155,008			145,614			170,905
Corporate unallocated	(26,066		)	(20,968		)	(23,583		)
Goodwill and intangible asset impairment charge	—			—			(103,544		)
Work Opportunity Tax Credit processing fees	(985		)	(805		)	(1,858		)
Acquisition/integration costs	(2,672		)	—			(6,654		)
Other costs	(10,317		)	(162		)	(5,569		)
Depreciation and amortization	(41,049		)	(46,115		)	(46,692		)
Income (loss) from operations	73,919			77,564			(16,995		)
Interest and other income (expense), net	1,744			(14		)	(3,345		)
Income (loss) before tax expense (benefit)	$	75,663		$	77,550		$	(20,340	)

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

Our international operations are primarily in Canada, Australia and the United Kingdom. Revenue by region was as follows:



	Years ended
(in thousands, except percentages)	2018		%		2017		%		2016		%
United States	$	2,369,024	94.8	%	$	2,387,992	95.2	%	$	2,644,414	96.1	%
International operations	130,183		5.2		120,779		4.8		106,226		3.9
Total revenue from services	$	2,499,207	100.0	%	$	2,508,771	100.0	%	$	2,750,640	100.0	%

No single client represented more than 10% of total company revenue for fiscal 2018, 2017 or 2016. Client concentration for our reportable segments is as follows:


•	No single client represented more than 10.0% of our PeopleReady reportable segment revenue for fiscal 2018, 2017, or 2016.


•	No single client represented more than 10.0% of our PeopleManagement reportable segment revenue for fiscal 2018, or 2017. One client represented 18.2% of our PeopleManagement reportable segment revenue for fiscal 2016.


•	One client represented 13.3% of our PeopleScout reportable segment revenue for fiscal 2018, two clients represented 14.4% and 10.1%, respectively for fiscal 2017 and 12.8% and 10.0%, respectively for fiscal 2016.

Net property and equipment located in international operations was approximately 7.3% and 9.1% of total property and equipment as of December 30, 2018 and December 31, 2017, respectively.