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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2023
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 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 |
Goodwill reclassified as held-for-sale (1) | (1,020) |  | — |  | — |  | (1,020) |
Impairment charge | — |  | (8,885) |  | — |  | (8,885) |
Foreign currency translation | — |  | 235 |  | — |  | 235 |
Balance at | December 31, 2023 |  |  |  |
Goodwill before impairment | 105,284 |  | 142,191 |  | 81,092 |  | 328,567 |
Accumulated impairment charge | (46,210) |  | (118,642) |  | (79,601) |  | (244,453) |
Goodwill, net | $ | 59,074 |  | $ | 23,549 |  | $ | 1,491 |  | $ | 84,114 |
(1) Refer to Note 4: Supplemental Balance Sheet Information for further discussion. We performed our annual impairment test as of the first day of our fiscal second quarter of 2023, for our reporting segments with remaining goodwill: PeopleReady; PeopleManagement Centerline; PeopleScout RPO; and PeopleScout MSP. The fair value of each reporting unit was estimated using a weighting of the income and market valuation approaches. The income approach applied a fair value methodology to each reporting unit based on discounted cash flows. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internally-developed forecasts of revenue and profitability, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will 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. The weighted average cost of capital used in our most recent impairment test ranged from 13.0% to 13.5%. We also applied a market approach, which develops a value correlation based on the market capitalization of similar publicly traded companies, referred to as a multiple, to apply to the operating results of the reporting units. The primary market multiples to which we compare are revenue and earnings before interest, taxes, depreciation, and amortization. The income and market approaches were equally weighted in our most recent annual impairment test, except for PeopleScout MSP which relied only on the income approach. 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. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. Based on our most recent impairment test, all of our reporting units’ fair values were substantially in excess of their respective carrying values, except for PeopleScout MSP. As a result of our 2023 annual impairment test, we concluded that the carrying amount of the PeopleScout MSP reporting unit exceeded its fair value and we recorded a non-cash goodwill impairment charge of $8.9 million, which was included in goodwill and intangible asset impairment charge on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal year ended December 31, 2023. The PeopleScout MSP goodwill impairment was related to our revised internal revenue projections, which anticipated the current year declining trends would continue into future periods. These projections were updated based on our then-current outlook and recent industry analysis, which indicated that our business would underperform due to a strategic lack of investment in technology within an increasingly competitive market. The remaining goodwill balance for the PeopleScout MSP reporting unit was $0.8 million as of December 31, 2023. Additionally, following performance of the annual impairment test, we did not identify any events or conditions that make it more likely than not that an additional impairment may have occurred. Accordingly, no further impairment loss was recognized during the fiscal year ended December 31, 2023. Intangible assets Finite-lived intangible assets The following table presents our purchased finite-lived intangible assets:
| December 31, 2023 |  | December 25, 2022
(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 | $ | 94,270 |  | $ | (90,149) |  | $ | 4,121 |  |  | $ | 94,134 |  | $ | (84,994) |  | $ | 9,140 |
Trade names/trademarks | 1,653 |  | (649) |  | 1,004 |  |  | 1,569 |  | (504) |  | 1,065 |
Total finite-lived intangible assets | $ | 95,923 |  | $ | (90,798) |  | $ | 5,125 |  |  | $ | 95,703 |  | $ | (85,498) |  | $ | 10,205 |
(1)Excludes assets that are fully amortized. Amortization expense of our finite-lived intangible assets was $5.2 million, $5.7 million and $6.7 million for the fiscal years ended December 31, 2023, December 25, 2022 and December 26, 2021, respectively. The following table provides the estimated future amortization of finite-lived intangible assets as of December 31, 2023:
(in thousands) |
2024 | $ | 4,049 |
2025 | 309 |
2026 | 118 |
2027 | 118 |
2028 | 118 |
Thereafter | 413 |
Total future amortization | $ | 5,125 |
We did not identify any events or conditions that make it more likely than not that an impairment of our finite-lived intangible assets may have occurred for the fiscal year ended December 31, 2023. Indefinite-lived intangible assets We held indefinite-lived trade names/trademarks of $5.4 million and $6.0 million as of December 31, 2023 and December 25, 2022, respectively, related to businesses within our PeopleScout and PeopleManagement segments. As a result of our 2023 annual impairment test, we concluded that the carrying amount of a trade name/trademark related to the PeopleManagement segment exceeded its estimated fair value and recorded a non-cash impairment charge of $0.6 million, which was included in goodwill and intangible asset impairment charge on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal year ended December 31, 2023. The charge was primarily the result of an increase in the discount rate, as well as lower projected revenues given our then-current outlook. The remaining balance for this trade name/trademark was $3.3 million as of December 31, 2023. Additionally, following performance of the annual impairment test, we did not identify any additional events or conditions that make it more likely than not that an additional impairment may have occurred. Accordingly, no further impairment loss was recognized during the fiscal year ended December 31, 2023. There were no goodwill or intangible asset impairment charges recorded during fiscal 2022 or 2021.

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