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SEGMENT INFORMATION
3 Months Ended
Mar. 31, 2019
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 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 business within our PeopleManagement reportable segment.
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 (“TMP”) through PeopleScout. Accordingly, the results associated with the acquisition are included in our PeopleScout operating segment. TMP is a mid-sized recruitment process outsourcing (“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.
We evaluate performance based on segment revenue and segment profit. Inter-segment revenue is minimal. 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 following table presents a reconciliation of segment revenue from services to total company revenue:
 
Thirteen weeks ended
(in thousands)
March 31,
2019
April 1,
2018
Revenue from services:
 
 
PeopleReady
$
326,868

$
316,835

PeopleManagement
158,044

183,892

PeopleScout
67,440

53,661

Total company
$
552,352

$
554,388


The following table presents a reconciliation of Segment profit to income before tax expense:
 
Thirteen weeks ended
(in thousands)
March 31,
2019
April 1,
2018
Segment profit:
 
 
PeopleReady
$
11,470

$
9,525

PeopleManagement
2,306

5,649

PeopleScout
10,427

11,905

 
24,203

27,079

Corporate unallocated
(7,277
)
(7,664
)
Work Opportunity Tax Credit processing fees
(240
)
(195
)
Acquisition/integration costs
(577
)

Other benefits (costs)
2,606

(1,715
)
Depreciation and amortization
(9,952
)
(10,090
)
Income from operations
8,763

7,415

Interest and other income (expense), net
553

2,204

Income before tax expense
$
9,316

$
9,619


Asset information by reportable segment is not presented since we do not manage our segments on a balance sheet basis.
Disaggregated revenue
The following tables present our revenue disaggregated by major source and segment:
 
Thirteen weeks ended
 
March 31, 2019
(in thousands)
PeopleReady
PeopleManagement
PeopleScout
Consolidated
Revenue from services:
 
 
 
 
Contingent staffing
$
326,868

$
158,044

$

$
484,912

Human resource outsourcing


67,440

67,440

Total company
$
326,868

$
158,044

$
67,440

$
552,352

 
Thirteen weeks ended
 
April 1, 2018
(in thousands)
PeopleReady
PeopleManagement
PeopleScout
Consolidated
Revenue from services:
 
 
 
 
Contingent staffing
$
316,835

$
183,892

$

$
500,727

Human resource outsourcing


53,661

53,661

Total company
$
316,835

$
183,892

$
53,661

$
554,388