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Segment Information and Enterprise Reporting
 6 Months Ended
Nov. 23, 2024
Segment Reporting [Abstract]  
Segment Information and Enterprise Reporting Segment Information and Enterprise Reporting
The tables below reflect the operating results of the Company’s segments consistent with the management and performance measurement system utilized by the Company. During the first quarter of fiscal 2025, the Company reorganized its business segments to better align with changes in its internal operating model and financial reporting, which is used for performance assessment and resource allocation by the CODMs. All prior year periods presented were recast to reflect the impact of the preceding segment changes. See Note 2 – Summary of Significant Accounting Policies for further discussion about the Company’s operating and reportable segments.
Performance measurement is based on segment Adjusted EBITDA. Adjusted EBITDA is defined as net (loss) income before amortization expense, depreciation expense, interest and income taxes excluding stock-based compensation expense, technology transformation costs, goodwill impairment, acquisition costs, gain on sale of assets, and restructuring costs. Adjusted EBITDA at the segment level excludes certain shared corporate administrative costs that are not practical to allocate. The Company’s CODMs do not evaluate segments using asset information.
The following table discloses the Company’s revenue and Adjusted EBITDA by segment for both periods presented (in thousands):
Three Months EndedSix 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
Consulting60,64359,058115,668115,903
Europe & Asia Pacific
19,70121,80237,68445,069
Outsourced Services9,4269,06618,91718,484
All Other
2,3962,2524,3594,917
Total consolidated revenue
$145,618$163,127$282,553$333,296
Adjusted EBITDA:
On-Demand Talent
$5,605$8,662$8,164$17,219
Consulting9,72310,92817,47619,457
Europe & Asia Pacific1,4801,7011,7073,405
Outsourced Services1,5461,7782,9403,326
All Other(526)(534)(993)(463)
Unallocated items (1)
(8,172)(6,474)(17,318)(15,337)
Adjustments:
Stock-based compensation expense(1,948)(516)(3,509)(3,068)
Technology transformation costs (2)
(2,043)(1,678)(3,901)(3,601)
Acquisition costs (3)
(515)(1,126)(1,804)(1,126)
Goodwill impairment (4)
(79,482)—(83,337)—
Gain on sale of assets (5)
——3,420—
Restructuring cost (6)
(299)(2,255)(252)(2,255)
Amortization expense(1,569)(1,321)(3,054)(2,635)
Depreciation expense(462)(810)(1,002)(1,687)
Interest income, net
215293363605
(Loss) income before income tax benefit (expense)(76,447)8,648(81,100)13,840
Income tax benefit (expense)
7,732(3,753)6,678(5,828)
Net (loss) income$(68,715)$4,895$(74,422)$8,012

(1) Unallocated items are generally comprised of unallocated 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.