XML 30 R12.htm IDEA: XBRL DOCUMENT
v3.22.4

GOODWILL AND INTANGIBLE ASSETS (Note) | 12 Months Ended
--- | ---
Dec. 25, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table reflects changes in the carrying amount of goodwill during the period by reportable segments:
(in thousands) | PeopleReady | PeopleScout | PeopleManagement | Total company
Balance at | December 27, 2020 |  |  |  |
Goodwill before impairment | $ | 106,304 |  | $ | 143,045 |  | $ | 81,092 |  | $ | 330,441 |
Accumulated impairment charge | (46,210) |  | (109,757) |  | (79,601) |  | (235,568) |
Goodwill, net | 60,094 |  | 33,288 |  | 1,491 |  | 94,873 |
Foreign currency translation | — |  | (335) |  | — |  | (335) |
Balance at | December 26, 2021 |  |  |  |
Goodwill before impairment | 106,304 |  | 142,710 |  | 81,092 |  | 330,106 |
Accumulated impairment charge | (46,210) |  | (109,757) |  | (79,601) |  | (235,568) |
Goodwill, net | 60,094 |  | 32,953 |  | 1,491 |  | 94,538 |
Foreign currency translation | — |  | (754) |  | — |  | (754) |
Balance at | December 25, 2022 |  |  |  |
Goodwill before impairment | 106,304 |  | 141,956 |  | 81,092 |  | 329,352 |
Accumulated impairment charge | (46,210) |  | (109,757) |  | (79,601) |  | (235,568) |
Goodwill, net | $ | 60,094 |  | $ | 32,199 |  | $ | 1,491 |  | $ | 93,784 |
Intangible assets Finite-lived intangible assets The following table presents our purchased finite-lived intangible assets:
| December 25, 2022 |  | December 26, 2021
(in thousands) | Gross carrying amount | Accumulated amortization | Net carrying amount |  | Gross carrying amount | Accumulated amortization | Net carrying amount
Finite-lived intangible assets (1): |  |  |  |  |  |  |
Customer relationships | $ | 94,134 |  | $ | (84,994) |  | $ | 9,140 |  |  | $ | 102,016 |  | $ | (87,134) |  | $ | 14,882 |
Trade names/trademarks | 1,569 |  | (504) |  | 1,065 |  |  | 2,066 |  | (737) |  | 1,329 |
Total finite-lived intangible assets | $ | 95,703 |  | $ | (85,498) |  | $ | 10,205 |  |  | $ | 104,082 |  | $ | (87,871) |  | $ | 16,211 |
(1)Excludes assets that are fully amortized. Amortization expense of our finite-lived intangible assets was $5.7 million, $6.7 million and $10.1 million for the fiscal years ended December 25, 2022, December 26, 2021 and December 27, 2020, respectively. The following table provides the estimated future amortization of finite-lived intangible assets as of December 25, 2022:
(in thousands) |
2023 | $ | 5,079 |
2024 | 4,105 |
2025 | 293 |
2026 | 112 |
2027 | 112 |
Thereafter | 504 |
Total future amortization | $ | 10,205 |
Indefinite-lived intangible assets We also held indefinite-lived trade names/trademarks of $6.0 million as of December 25, 2022 and December 26, 2021. Impairments Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of operating and macroeconomic changes on each reporting unit. The fair value of each reporting unit is estimated using a combination of a discounted cash flow methodology and the market valuation approach using publicly traded company multiples in similar businesses. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internally developed forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows would occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. There were no goodwill or intangible asset impairment charges recorded during fiscal 2022 or 2021. 2020 impairments Goodwill During the fiscal year ended December 27, 2020, we recorded a non-cash impairment charge of $140.5 million, which was included in goodwill and intangible asset impairment charge on our Consolidated Statements of Operations and Comprehensive Income (Loss). The goodwill carrying value of $45.9 million for our PeopleManagement On-Site reporting unit was fully impaired. The goodwill impairment charge for PeopleScout RPO and PeopleScout MSP was $92.2 million and $2.4 million, respectively. The charge was primarily the result of expected continued weakness in pricing and demand for our staffing services in a volatile economic climate, which resulted in a decline in our stock price. The decline in stock price pushed our market capitalization significantly below the recorded value of our consolidated net assets. This was further impacted by COVID-19, which created a significant drop in client demand. The weighted average cost of capital used ranged from 11.5% to 12.0%. The combined fair values for all reporting units were then reconciled to our aggregate market value of our shares of common stock on the date of valuation, while considering a reasonable control premium. The remaining goodwill balances for PeopleScout RPO and PeopleScout MSP were $23.6 million and $9.7 million, respectively, as of December 27, 2020. Finite-lived intangible assets During the fiscal year ended December 27, 2020, we recorded a non-cash impairment charge for our PeopleScout RPO and PeopleManagement On-Site client relationship intangible assets of $34.7 million, which was included in goodwill and intangible asset impairment charge on our Consolidated Statements of Operations and Comprehensive Income (Loss). The charge was primarily due to the decrease in demand for our services associated with government and societal actions taken to address the impact of COVID-19, which resulted in lower future expectations. The impairment charge for PeopleScout RPO and PeopleManagement On-Site client relationship intangible assets was $25.0 million and $9.7 million, respectively. The remaining client relationship intangible asset balances related to assets impaired for PeopleScout RPO and PeopleManagement On-Site were $5.1 million and $7.2 million, respectively, as of December 27, 2020. Considerable management judgment was necessary to determine key assumptions, including projected revenue of acquired clients and an appropriate discount rate of 12.0%.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration