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Segment Information and Enterprise Reporting (Tables) | 6 Months Ended
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Nov. 23, 2024
Segment Reporting [Abstract] |
Summary of Operating Results of Segments | The following table discloses the Company’s revenue and Adjusted EBITDA by segment for both periods presented (in thousands):
| Three Months Ended |  |  | Six Months Ended
| November 23, 2024 |  | November 25, 2023 |  |  |  |  | November 23, 2024 |  | November 25, 2023
Revenue: |  |  |  |  |  |  |  |  |  |
On-Demand Talent | $ | 53,452 |  | $ | 70,949 |  |  |  |  | $ | 105,925 |  | $ | 148,923
Consulting | 60,643 |  | 59,058 |  |  |  |  | 115,668 |  | 115,903
Europe & Asia Pacific | 19,701 |  | 21,802 |  |  |  |  | 37,684 |  | 45,069
Outsourced Services | 9,426 |  | 9,066 |  |  |  |  | 18,917 |  | 18,484
All Other | 2,396 |  | 2,252 |  |  |  |  | 4,359 |  | 4,917
Total consolidated revenue | $ | 145,618 |  | $ | 163,127 |  |  |  |  | $ | 282,553 |  | $ | 333,296
Adjusted EBITDA: |  |  |  |  |  |  |  |  |  |
On-Demand Talent | $ | 5,605 |  | $ | 8,662 |  |  |  |  | $ | 8,164 |  | $ | 17,219
Consulting | 9,723 |  | 10,928 |  |  |  |  | 17,476 |  | 19,457
Europe & Asia Pacific | 1,480 |  | 1,701 |  |  |  |  | 1,707 |  | 3,405
Outsourced Services | 1,546 |  | 1,778 |  |  |  |  | 2,940 |  | 3,326
All Other | (526) |  | (534) |  |  |  |  | (993) |  | (463)
Unallocated items (1) | (8,172) |  | (6,474) |  |  |  |  | (17,318) |  | (15,337)
Adjustments: |  |  |  |  |  |  |  |  |  |
Stock-based compensation expense | (1,948) |  | (516) |  |  |  |  | (3,509) |  | (3,068)
Technology transformation costs (2) | (2,043) |  | (1,678) |  |  |  |  | (3,901) |  | (3,601)
Acquisition costs (3) | (515) |  | (1,126) |  |  |  |  | (1,804) |  | (1,126)
Goodwill impairment (4) | (79,482) |  | — |  |  |  |  | (83,337) |  | —
Gain on sale of assets (5) | — |  | — |  |  |  |  | 3,420 |  | —
Restructuring cost (6) | (299) |  | (2,255) |  |  |  |  | (252) |  | (2,255)
Amortization expense | (1,569) |  | (1,321) |  |  |  |  | (3,054) |  | (2,635)
Depreciation expense | (462) |  | (810) |  |  |  |  | (1,002) |  | (1,687)
Interest income, net | 215 |  | 293 |  |  |  |  | 363 |  | 605
(Loss) income before income tax benefit (expense) | (76,447) |  | 8,648 |  |  |  |  | (81,100) |  | 13,840
Income tax benefit (expense) | 7,732 |  | (3,753) |  |  |  |  | 6,678 |  | (5,828)
Net (loss) income | $ | (68,715) |  | $ | 4,895 |  |  |  |  | $ | (74,422) |  | $ | 8,012
(1) Unallocated items are generally comprised of u nallocated corporate administrative costs, including management and board compensation, corporate support function costs and other general corporate costs that are not allocated to segments. (2) Technology transformation costs represent costs included in net income related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized. (3) Acquisition costs primarily represent costs included in net income related to the Company’s business acquisitions. These costs include transaction bonuses, cash retention bonus accruals, and fees paid to the Company's broker, legal counsel, and other professional services firms. See Note 4 – Acquisitions in the Notes to Consolidated Financial Statements for further discussion. (4) Goodwill impairment charges recognized during the three and six months ended November 23, 2024 were related to the On-Demand Talent and Europe Asia Pacific segments. See Note 6 – Goodwill and Intangible Assets in the Notes to Consolidated Financial Statements for further discussion. (5) Gain on sale of assets was related to the Company’s sale of its Irvine office building, which was completed on August 15, 2024. (6) The Company initiated a U.S. restructuring plan in October 2023 and substantially completed the 2023 U.S. restructuring plan during fiscal 2024.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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