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SUPPLEMENTAL BALANCE SHEET INFORMATION
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTAL BALANCE SHEET INFORMATION SUPPLEMENTAL BALANCE SHEET INFORMATION
Accounts receivable allowance for credit losses
(in thousands)202320222021
Beginning balance$3,212 $6,687 $2,921 
Current period provision4,972 4,462 6,493 
Write-offs(6,184)(7,917)(2,713)
Foreign currency translation5 (20)(14)
Ending balance$2,005 $3,212 $6,687 
Prepaid expenses and other current assets
(in thousands)December 31,
2023		December 25,
2022
Prepaid software agreements$8,435 $9,994 
Other prepaid expenses9,355 9,455 
Assets held-for-sale
4,845 — 
Other current assets6,259 13,081 
Prepaid expenses and other current assets$28,894 $32,530 
Other current liabilities
(in thousands)December 31,
2023		December 25,
2022
Contract liabilities
$1,844 $3,812 
Liabilities held-for-sale
1,998 — 
Other current liabilities
6,529 7,077 
Other current liabilities
$10,371 $10,889 
Property and equipment
(in thousands)December 31,
2023		December 25,
2022
Buildings and land$46,818 $49,359 
Software201,235 150,198 
Computers, furniture and equipment38,706 48,670 
Construction in progress2,670 31,958 
Gross property and equipment289,429 280,185 
Less accumulated depreciation(184,523)(184,362)
Property and equipment, net$104,906 $95,823 
Capitalized software costs, net of accumulated depreciation, were $73.3 million and $28.1 million as of December 31, 2023 and December 25, 2022, respectively, excluding amounts in construction in progress. Construction in progress consists primarily of purchased and internally-developed software.
Depreciation expense of property and equipment totaled $20.6 million, $23.5 million and $20.9 million for the fiscal years ended December 31, 2023, December 25, 2022 and December 26, 2021, respectively.
Assets and liabilities held-for-sale
During fiscal 2023, as part of our strategic initiative to simplify our organizational structure and sharpen our focus on core operations, management, with approval from the Board, began actively marketing Labour Ready Temporary Services, Ltd. (“LRTS”). LRTS is a wholly-owned subsidiary of the company, and provides contingent staffing solutions to clients in Canada under the PeopleReady brand. The operational results of LRTS are included as part of our PeopleReady operating segment and reportable segment for all years presented. LRTS is not an individually significant component of the company.
As of December 31, 2023, all criteria for classifying this entity as held-for-sale were met, and did not result in recognition of a loss on our Consolidated Statements of Operations and Comprehensive Income (Loss) for fiscal 2023. The assets and liabilities classified as held-for-sale as of December 31, 2023 are presented within other current assets and other current liabilities, respectively, on our Consolidated Balance Sheets. The following represents the carrying amounts of the major classes of assets and liabilities included as part of the disposal group classified as held-for-sale:
(in thousands)December 31,
2023
Current assets held-for-sale:
Cash and cash equivalents
$300 
Accounts receivable, net
1,919 
Prepaid expenses and other current assets
80 
Income tax receivable
201 
Property and equipment, net
156 
Deferred income taxes, net
23 
Goodwill (1)
1,020 
Operating lease right-of-use assets, net
1,146 
Total current assets held-for-sale
$4,845 
Current liabilities held-for-sale:
Accounts payable and other accrued expenses
$289 
Accrued wages and benefits
427 
Operating lease liabilities
1,180 
Other current liabilities102 
Total current liabilities held-for-sale
$1,998 
(1) Goodwill was allocated based on the relative fair value of LRTS to the total PeopleReady reporting unit prior to being reclassified as held-for-sale.
The expected divestiture of our PeopleReady operations in Canada does not represent a strategic shift, nor do we expect it to have a major effect on the company’s operations and financial results and, therefore will not be reported as discontinued operations in our Consolidated Balance Sheets or Consolidated Statements of Operations and Comprehensive Income (Loss). A sale is expected to be finalized during the fiscal first quarter of 2024.
Subsequent event
On February 20, 2024, the company entered into a definitive share purchase agreement to sell LRTS to Vertical Staffing Resources. The transaction is expected to close during the fiscal first quarter of 2024, subject to customary closing conditions.