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SEGMENT INFORMATION
 9 Months Ended
Sep. 29, 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 and SIMOS Insourcing Solutions: On–premise management and recruitment for the contingent industrial workforce of manufacturing, warehouse, and distribution facilities; 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 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.
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 other adjustments not considered to be ongoing.
The following table presents our revenue disaggregated by major source and segment and a reconciliation of segment revenue from services to total company revenue:
 
Thirteen weeks ended
 
Thirty-nine weeks ended
(in thousands)
September 29,
2019
September 30,
2018
 
September 29,
2019
September 30,
2018
Revenue from services:
 
 
 
 
 
Contingent staffing
 
 
 
 
 
PeopleReady
$
413,132

$
428,665

 
$
1,109,261

$
1,122,960

PeopleManagement
159,315

181,199

 
470,889

543,930

Human resource outsourcing
 
 
 
 
 
PeopleScout
64,346

70,507

 
197,589

182,170

Total company
$
636,793

$
680,371

 
$
1,777,739

$
1,849,060


The following table presents a reconciliation of segment profit to income before tax expense:
 
Thirteen weeks ended
 
Thirty-nine weeks ended
(in thousands)
September 29,
2019
September 30,
2018
 
September 29,
2019
September 30,
2018
Segment profit:
 
 
 
 
 
PeopleReady
$
30,878

$
31,230

 
$
64,143

$
63,953

PeopleManagement
3,381

6,169

 
9,815

16,530

PeopleScout
10,774

12,478

 
32,424

35,703

 
45,033

49,877

 
106,382

116,186

Corporate unallocated
(5,769
)
(6,469
)
 
(16,680
)
(20,001
)
Work Opportunity Tax Credit processing fees
(240
)
(241
)
 
(720
)
(700
)
Acquisition/integration costs
(362
)
(1,226
)
 
(1,612
)
(1,683
)
Other costs
(727
)
(3,005
)
 
(2
)
(5,984
)
Depreciation and amortization
(8,749
)
(10,586
)
 
(28,528
)
(30,777
)
Income from operations
29,186

28,350

 
58,840

57,041

Interest and other income (expense), net
471

(340
)
 
1,851

896

Income before tax expense
$
29,657

$
28,010

 
$
60,691

$
57,937


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