GOODWILL AND INTANGIBLE ASSETS (Note)

12 Months Ended

Dec. 25, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

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%.