Goodwill and Intangible Assets

3 Months Ended

Aug. 24, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

As described in Note 2 – Summary of Significant Accounting Policies, the Company changed its segment reporting effective during the first quarter of the fiscal 2025, and reallocated goodwill to the new reporting units on the relative fair value basis. Concurrent with the segment change, the Company completed a goodwill impairment assessment and concluded that the carrying value of the Europe and Asia Pacific segment, also a reporting unit, was in excess of its fair value and as such recorded a non-cash impairment charge of $3.9 million on the Consolidated Statements of Operations during the three months ended August 24, 2024.

The following table summarizes the activity in the Company’s goodwill balance. The balance as of May 25, 2024 was recast to reflect the impact of the preceding segment change (in thousands):


	On-Demand Talent		Consulting		Europe & Asia Pacific		Outsourced Services		All Other		Total
Balance as of May 25, 2024	$	69,154	$	90,478	$	28,349	$	28,598	$	—	$	216,579
Acquisition (see Note 4)	—		6,653		—		—		—		6,653
Goodwill Impairment	—		—		(3,855)		—		$	—	(3,855)
Impact of foreign currency exchange rate changes	—		—		588		—		—		588
Balance as of August 24, 2024	$	69,154	$	97,131	$	25,082	$	28,598	$	—	$	219,965

The following table presents details of the Company’s intangible assets, estimated lives and related accumulated amortization (in thousands):


		As of August 24, 2024						As of May 25, 2024
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer contracts and relationships	7 - 12 years	$	39,500	$	(17,854)	$	21,646	$	25,100	$	(16,858)	$	8,242
Computer software	1 - 3.5 years	7,870		(6,901)		969		7,870		(6,539)		1,331
Trade names	1 year	600		(102)		498		-		-		-
Non-Compete Agreements	5 years	720		(25)		695		-		-		-
Total		$	48,690	$	(24,882)	$	23,808	$	32,970	$	(23,397)	$	9,573

The Company recorded amortization expense of $1.5 million and $1.3 million for the three months ended August 24, 2024 and August 26, 2023, respectively.

The following table presents future estimated amortization expense based on existing intangible assets (in thousands):

Fiscal Years:


2025 (remaining nine months)	$	4,399
2026	4,186
2027	1,936
2028	1,632
2029 and thereafter	11,655
Total	$	23,808

Actual future estimated amortization expense could differ from these estimated amounts as a result of future acquisitions, dispositions, impairments, and other factors or changes.