Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2018 | Jul. 16, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | TBI | |
Entity Central Index Key | TrueBlue, Inc. | |
Current Fiscal Year End Date | 768,899 | |
Well-Known Seasoned Issuer | --12-30 | |
Voluntary Filer | Yes | |
Reporting Status | No | |
Filer Category | Yes | |
Filer Category | Large Accelerated Filer | |
Common Stock Shares Outstanding (in shares) | 40,627,334 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 33,408 | $ 28,780 |
Accounts receivable, net of allowance for doubtful accounts of $6,153 and $4,344 | 370,588 | 374,273 |
Prepaid expenses, deposits and other current assets | 21,006 | 20,605 |
Income tax receivable | 7,964 | 4,621 |
Total current assets | 432,966 | 428,279 |
Property and equipment, net | 57,055 | 60,163 |
Restricted cash and investments | 239,390 | 239,231 |
Deferred income taxes, net | 1,005 | 3,783 |
Goodwill | 239,380 | 226,694 |
Intangible assets, net | 102,075 | 104,615 |
Other assets, net | 52,349 | 46,266 |
Total assets | 1,124,220 | 1,109,031 |
Current liabilities: | ||
Accounts payable and other accrued expenses | 69,515 | 55,091 |
Accrued wages and benefits | 77,113 | 76,894 |
Current portion of workers’ compensation claims reserve | 69,848 | 77,218 |
Other current liabilities | 2,653 | 3,216 |
Total current liabilities | 219,129 | 212,419 |
Workers’ compensation claims reserve, less current portion | 195,240 | 197,105 |
Long-term debt, less current portion | 117,199 | 116,489 |
Long-term deferred compensation liabilities | 23,268 | 21,866 |
Other long-term liabilities | 6,083 | 6,305 |
Total liabilities | 560,919 | 554,184 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity: | ||
Preferred stock, $0.131 par value, 20,000 shares authorized; No shares issued and outstanding | 0 | 0 |
Common stock, no par value, 100,000 shares authorized; 40,595 and 41,098 shares issued and outstanding | 1 | 1 |
Accumulated other comprehensive loss | (11,634) | (6,804) |
Retained earnings | 574,934 | 561,650 |
Total shareholders’ equity | 563,301 | 554,847 |
Total liabilities and shareholders’ equity | $ 1,124,220 | $ 1,109,031 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 6,153 | |
Preferred stock, par value (in dollars per share) | $ 0.131 | $ 0.131 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 40,595,000 | |
Common stock, shares outstanding | 40,595,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Revenue from services | $ 614,301 | $ 610,122 | $ 1,168,689 | $ 1,178,366 |
Cost of Goods and Services Sold | 448,717 | 454,842 | 859,837 | 883,657 |
Gross profit | 165,584 | 155,280 | 308,852 | 294,709 |
Selling, general and administrative expense | 134,207 | 124,754 | 259,970 | 246,598 |
Depreciation and amortization | 10,101 | 12,287 | 20,191 | 23,461 |
Income from operations | 21,276 | 18,239 | 28,691 | 24,650 |
Interest expense | (1,355) | (1,296) | (2,245) | (2,528) |
Interest and other income | 387 | 1,451 | 3,481 | 2,757 |
Interest and other income (expense), net | (968) | 155 | 1,236 | 229 |
Income before tax expense | 20,308 | 18,394 | 29,927 | 24,879 |
Income tax expense | 2,576 | 5,260 | 3,440 | 7,071 |
Net income | $ 17,732 | $ 13,134 | $ 26,487 | $ 17,808 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.44 | $ 0.32 | $ 0.66 | $ 0.43 |
Diluted (in dollars per share) | $ 0.44 | $ 0.31 | $ 0.65 | $ 0.43 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 40,227 | 41,579 | 40,335 | 41,608 |
Diluted (in shares) | 40,469 | 41,856 | 40,576 | 41,875 |
Other comprehensive income: | ||||
Total other comprehensive income (loss), net of tax | $ (1,921) | $ 449 | $ (3,305) | $ 2,986 |
Comprehensive income | 15,811 | 13,583 | 23,182 | 20,794 |
Foreign currency translation adjustment | ||||
Other comprehensive income: | ||||
Foreign currency translation adjustment | (1,921) | 540 | (3,305) | 2,340 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Other comprehensive income: | ||||
Unrealized gain (loss) on investments, net of tax | $ 0 | $ (91) | $ 0 | $ 646 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 26,487 | $ 17,808 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,191 | 23,461 |
Provision for doubtful accounts | 5,571 | 3,619 |
Stock-based compensation | 5,983 | 5,146 |
Deferred income taxes | 1,373 | 2,975 |
Other operating activities | 102 | 2,022 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 888 | 11,925 |
Income tax receivable | (3,641) | 8,828 |
Other assets | (3,522) | 5,977 |
Accounts payable and other accrued expenses | 3,767 | (13,181) |
Accrued wages and benefits | (1,423) | (4,560) |
Workers’ compensation claims reserve | (9,235) | 767 |
Other liabilities | 2,900 | (580) |
Net cash provided by operating activities | 49,441 | 64,207 |
Cash flows from investing activities: | ||
Capital expenditures | (6,468) | (9,137) |
Acquisition of business | (22,742) | 0 |
Divestiture of business | 8,800 | 0 |
Purchases of restricted investments | (10,730) | (20,712) |
Maturities of restricted investments | 13,044 | 13,546 |
Net cash used in investing activities | (18,096) | (16,303) |
Cash flows from financing activities: | ||
Payments for Repurchase of Common Stock | (19,065) | (15,530) |
Net proceeds from stock option exercises and employee stock purchase plans | 757 | 858 |
Common stock repurchases for taxes upon vesting of restricted stock | (2,403) | (2,873) |
Net change in revolving credit facility | 21,300 | (25,303) |
Payments on debt | (22,856) | (1,133) |
Payment of contingent consideration at acquisition date fair value | 0 | (18,300) |
Net cash used in financing activities | (22,267) | (62,281) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (919) | (154) |
Net change in cash, cash equivalents and restricted cash | 8,159 | (14,531) |
Cash, cash equivalents and restricted cash, beginning of period | 73,831 | 103,222 |
Cash, cash equivalents and restricted cash, end of period | 81,990 | 88,691 |
Supplemental Cash Flow Information [Abstract] | ||
Interest | 1,892 | 1,549 |
Income taxes | 5,696 | (4,740) |
Property, plant, and equipment purchased but not yet paid | 726 | 2,888 |
Divestiture non-cash consideration | $ 1,657 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jul. 01, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . The results of operations for the thirteen and twenty-six weeks ended July 1, 2018 , are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. Goodwill and indefinite-lived intangible assets We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, and more frequently if an event occurs or circumstances change that would indicate impairment may exist. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, customer engagement, or sale or disposition of a significant portion of a reporting unit. We monitor the existence of potential impairment indicators throughout the fiscal year. Based on our annual goodwill impairment test performed as of the first day of our fiscal second quarter, all reporting units’ fair values were substantially in excess of their respective carrying values. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. Accordingly, no impairment loss was recognized for the thirteen weeks ended July 1, 2018 nor July 2, 2017 . We performed our annual indefinite-lived intangible asset impairment test as of the first day of our fiscal second quarter and determined that the estimated fair values exceeded the carrying amounts for our indefinite-lived trade names. Accordingly, no impairment loss was recognized for the thirteen weeks ended July 1, 2018 nor July 2, 2017 . Recently adopted accounting standards In May 2017, the Financial Accounting Standing Board (“FASB”) issued guidance to provide clarity and reduce diversity in practice when accounting for a change to the terms or conditions of share-based payment awards. The objective was to reduce the scope of transactions that would require modification accounting. Disclosure requirements remain unchanged. This amended guidance was effective for our fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue), with early adoption permitted. We adopted this guidance for our fiscal first quarter of 2018. The adoption of the new standard did not have a material impact on our financial statements. In January 2017, the FASB issued guidance clarifying the definition of a business, which revises the definition of a business and provides new guidance in evaluating when a set of transferred assets and activities is a business. This guidance was effective for fiscal years and interim periods beginning December 15, 2017 (Q1 2018 for TrueBlue) on a prospective basis. This standard did not have a material impact on our financial statements. In Q2 2018, we acquired all of the outstanding equity interests of TMP Holdings LTD (“TMP”) and concluded that TMP represents a business based on this new guidance. See Note 3: Acquisition and divestiture , for further discussion of our acquisition of TMP. In November 2016, the FASB issued guidance to amend the presentation of restricted cash and restricted cash equivalents on the statement of cash flows. The standard requires restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amended guidance was effective for fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). We adopted this guidance for our fiscal first quarter of 2018 using the retrospective transition method. Accordingly, the change in restricted cash and cash equivalents is no longer segregated in our statement of cash flows, and the $8.8 million previously presented in the investing section for the twenty-six weeks ended July 2, 2017 is now included when reconciling the beginning-of-period and end-of-period cash, cash equivalents and restricted cash shown on the statement of cash flows. In October 2016, the FASB issued guidance on the accounting for income tax effects of intercompany sales or transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity sale or transfer of an asset other than inventory when the sale or transfer occurs, rather than when the asset has been sold to an outside party. This guidance was effective for fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). The guidance requires a modified retrospective application with a cumulative catch-up adjustment to opening retained earnings. We adopted this guidance for our fiscal first quarter of 2018. The adoption of the new standard did not have a material impact on our financial statements. In August 2016, the FASB issued guidance relating to how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. The update was intended to reduce the existing diversity in practice. The amended guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 (Q1 2018 for TrueBlue). We adopted this guidance for our fiscal first quarter of 2018. The adoption of the new standard did not have an impact on our financial statements. In January 2016, the FASB issued guidance on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance was effective for annual and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). Early adoption of the amendments in the guidance was not permitted, with limited exceptions. The guidance required a cumulative-effect adjustment be made to reclassify unrealized gains and losses related to available-for-sale equity securities from accumulated other comprehensive income, to retained earnings as of the beginning of the fiscal year of adoption. We adopted this guidance as of the first day of our fiscal first quarter of 2018 and reclassified from accumulated other comprehensive loss to retained earnings, $1.5 million in unrealized gains, net of tax on available-for-sale equity securities. Beginning in Q1 2018, change in market value for our available-for-sale equity securities is included in selling, general and administrative expense in the Consolidated Statements of Operation and Comprehensive Income. In May 2014, the FASB issued guidance outlining a single comprehensive model for accounting for revenue arising from contracts with clients, which supersedes the current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted this new guidance as of January 1, 2018 using the modified retrospective transition method. The adoption of this new guidance did not have a material impact on our consolidated financial statements as of the adoption date, nor for the thirteen and twenty-six weeks ended July 1, 2018 , except for expanded disclosures. Refer to Note 2: Revenue recognition for additional accounting policy and transition disclosures. Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued guidance on lease accounting. The new guidance will continue to classify leases as either finance or operating, but will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with classification affecting the pattern of expense recognition in the statement of operations. This guidance is effective for annual and interim periods beginning after December 15, 2018 (Q1 2019 for TrueBlue), and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. We plan to adopt the guidance on the effective date. We established a cross-functional implementation team consisting of representatives from various departments to review our current contracts, accounting policies and business practices to identify and quantify the potential impact of the new standard on our financial statements. We are completing this evaluation and expect that, upon adoption, a majority of our operating lease commitments will be recognized on our Consolidated Balance Sheets as operating lease liabilities and right-of-use assets. We do not expect the adoption to have a material impact on the pattern of expense recognition in our Consolidated Statements of Operations and Comprehensive Income. Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jul. 01, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Adoption of new revenue recognition guidance On January 1, 2018, we adopted new revenue recognition guidance using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue recognition guidance, while prior period amounts were not adjusted and continue to be reported in accordance with historic accounting guidance. The adoption of this new guidance did not have a material impact on our consolidated financial statements as of the adoption date, nor for the thirteen and twenty-six weeks ended July 1, 2018 , except for expanded disclosures. Revenue recognition We account for a contract when both parties to the contract have approved the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenues are recognized over time, using an output measure, as the control of the promised services is transferred to the client in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The majority of our contracts are short-term in nature as they are filling the temporary staffing needs of our clients, or include termination clauses that allow either party to cancel within a short termination period, without cause. Revenue includes billable travel and other reimbursable costs and are reported net of sales, use, or other transaction taxes collected from clients and remitted to taxing authorities. Payment terms vary by client and the services offered. We consider payment terms that exceed one year to be extended payment terms, however we do not extend payment terms beyond one year. Substantially all of our contracts include payment terms of 90 days or less. We primarily record revenue on a gross basis as a principal versus on a net basis as an agent in the Consolidated Statements of Operations and Comprehensive Income. We have determined that gross reporting as a principal is the appropriate treatment based upon the following key factors: • We maintain the direct contractual relationship with the client and are responsible for fulfilling the service promised to the client. • We maintain control over our workers while the services to the client are being performed. • We establish our worker’s billing rate. Contingent staffing We recognize revenue for our contingent staffing services over time as services are performed in an amount that reflects the consideration we expect to be entitled to in exchange for our services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our contingent staffing contracts. Costs are incurred to fulfill some contingent staffing contracts, however these costs are not material and are expensed as incurred. Human resource outsourcing We primarily recognize revenue for our outsourced recruitment of permanent employees over time in an amount that reflects the consideration we expect to be entitled to in exchange for our services. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our outsourced recruitment of permanent employees’ contracts. The costs to fulfill these contracts are not material and are expensed as incurred. Unsatisfied performance obligations As a practical expedient, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an expected original duration of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Disaggregated revenue The following table presents our revenue disaggregated by major source: Thirteen weeks ended July 1, 2018 (in thousands) PeopleReady PeopleManagement PeopleScout Consolidated Revenue from services: Contingent staffing $ 377,460 $ 178,839 $ — $ 556,299 Human resource outsourcing — — 58,002 58,002 Total company $ 377,460 $ 178,839 $ 58,002 $ 614,301 Twenty-six weeks ended July 1, 2018 (in thousands) PeopleReady PeopleManagement PeopleScout Consolidated Revenue from services: Contingent staffing $ 694,295 $ 362,731 $ — $ 1,057,026 Human resource outsourcing — — 111,663 111,663 Total company $ 694,295 $ 362,731 $ 111,663 $ 1,168,689 |
ACQUISITION AND DIVESTITURE
ACQUISITION AND DIVESTITURE | 6 Months Ended |
Jul. 01, 2018 | |
Business Combinations [Abstract] | |
ACQUISITION AND DIVESTITURE | ACQUISITION AND DIVESTITURE Acquisition Effective June 12, 2018, the company acquired all of the outstanding equity interests of TMP Holdings LTD (“TMP”), through its subsidiary PeopleScout, Inc. for a cash purchase price of $22.7 million , net of cash acquired of $7.0 million . TMP is a mid-sized recruitment process outsourcing (“RPO”) and employer branding service provider operating in the United Kingdom, which is the second largest RPO market in the world. This acquisition increases our ability to win multi-continent engagements by adding a physical presence in Europe, referenceable clients and employer branding capabilities. We incurred acquisition and integration-related costs of $0.5 million , which are included in selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income for the thirteen and twenty-six weeks ended July 1, 2018 and cash flows from operating activities on the Consolidated Statements of Cash Flows for the twenty-six weeks ended July 1, 2018 . The following table reflects our preliminary allocation of the purchase price, net of cash acquired, to the fair value of the assets acquired and liabilities assumed: (in thousands) Purchase price allocation Cash purchase price, net of cash acquired $ 22,742 Purchase price allocated as follows: Accounts receivable 9,770 Prepaid expenses, deposits and other current assets 337 Property and equipment 435 Customer relationships 6,286 Trade names/trademarks 1,738 Total assets acquired 18,566 Accounts payable and other accrued expenses 9,139 Accrued wages and benefits 1,642 Income tax payable 205 Deferred income tax liability 1,444 Total liabilities assumed 12,430 Net identifiable assets acquired 6,136 Goodwill (1) 16,606 Total consideration allocated $ 22,742 (1) Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers and future cash flows after the acquisition of TMP, and is non-deductible for income tax purposes. Intangible assets include identifiable intangible assets for customer relationships and trade names/trademarks. We estimated the fair value of the acquired identifiable intangible assets, which are subject to amortization, using the income approach. The following table sets forth the components of identifiable intangible assets, their estimated fair values and useful lives as of June 12, 2018 : (in thousands, except for estimated useful lives, in years) Estimated fair value Estimated useful life in years Customer relationships $ 6,286 3-7 Trade names/trademarks 1,738 14 Total acquired identifiable intangible assets $ 8,024 The acquired assets and assumed liabilities of TMP are included on our Consolidated Balance Sheet as of July 1, 2018 , and the results of its operations and cash flows are reported on our Consolidated Statements of Operations and Comprehensive Income and Consolidated Statements of Cash Flows for the period from June 12, 2018 to July 1, 2018 . The amount of revenue from TMP included in our Consolidated Statements of Operations and Comprehensive Income was $2.9 million from the acquisition date to July 1, 2018 . The acquisition of TMP was not material to our consolidated results of operations and as such, pro forma financial information was not required. Divestiture Effective March 12, 2018, the company entered into an asset purchase agreement to sell substantially all the assets and certain liabilities of the PlaneTechs business to Launch Technical Workforce Solutions (“Launch”) for a purchase price of $11.4 million , of which $8.5 million was paid in cash, and $1.6 million in a note receivable due within six months following the closing date. The note receivable has monthly principal payments of $0.1 million beginning April 2018 with the remainder due in September 2018, which is included in prepaid expenses, deposits and other current assets on the Consolidated Balance Sheets. The remaining purchase price balance consists of the preliminary working capital adjustment, which is expected to be paid in cash during the fiscal third quarter of 2018 and is included in prepaid expenses, deposit and other current assets on the Consolidated Balance Sheets. The company recognized a preliminary pre-tax gain on the divestiture of $1.1 million , which is included in interest and other income on the Consolidated Statements of Operations and Comprehensive Income for the twenty-six weeks ended July 1, 2018 . Fiscal first quarter revenue through the closing date of the divestiture for the PlaneTechs business of $8.0 million was reported in the PeopleManagement reportable segment. The divestiture of PlaneTechs did not represent a strategic shift with a major effect on the company’s operations and financial results and, therefore was not reported as discontinued operations in the Consolidated Balance Sheets or Consolidated Statements of Operations and Comprehensive Income for the periods presented. The company has agreed to provide certain transition services to Launch for a period not to exceed seven months, which includes various back office services to support the PlaneTechs branch offices until personnel and systems are transferred to Launch. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Our assets and liabilities measured at fair value on a recurring basis consisted of the following: July 1, 2018 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Financial assets: Cash and cash equivalents $ 33,408 $ 33,408 $ — $ — Restricted cash and cash equivalents 48,582 48,582 — — Cash, cash equivalents and restricted cash (1) $ 81,990 $ 81,990 $ — $ — Deferred compensation mutual funds classified as available-for-sale $ 24,384 $ 24,384 $ — $ — Municipal debt securities $ 78,190 $ — $ 78,190 $ — Corporate debt securities 82,238 — 82,238 — Agency mortgage-backed securities 3,229 — 3,229 — U.S. government and agency securities 975 — 975 — Restricted investments classified as held-to-maturity $ 164,632 $ — $ 164,632 $ — December 31, 2017 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Financial assets: Cash and cash equivalents $ 28,780 $ 28,780 $ — $ — Restricted cash and cash equivalents 45,051 45,051 — — Cash, cash equivalents and restricted cash (1) $ 73,831 $ 73,831 $ — $ — Deferred compensation mutual funds classified as available-for-sale $ 22,428 $ 22,428 $ — $ — Municipal debt securities $ 83,366 $ — $ 83,366 $ — Corporate debt securities 83,791 — 83,791 — Agency mortgage-backed securities 4,062 — 4,062 — U.S. government and agency securities 1,019 — 1,019 — Restricted investments classified as held-to-maturity $ 172,238 $ — $ 172,238 $ — (1) Cash, cash equivalents and restricted cash consist of money market funds, deposits, and investments with original maturities of three months or less. There were no material transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the twenty-six weeks ended July 1, 2018 nor July 2, 2017 . |
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS | 6 Months Ended |
Jul. 01, 2018 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH AND INVESTMENTS | RESTRICTED CASH AND INVESTMENTS Restricted cash and investments consist principally of collateral that has been provided or pledged to insurance carriers for workers’ compensation and state workers’ compensation programs. Our insurance carriers and certain state workers’ compensation programs require us to collateralize a portion of our workers’ compensation obligation. The collateral typically takes the form of cash and cash equivalents and highly rated investment grade securities, primarily in debt and asset-backed securities. The majority of our collateral obligations are held in a trust at the Bank of New York Mellon (“Trust”). The following is a summary of the carrying value of our restricted cash and investments: (in thousands) July 1, December 31, Cash collateral held by insurance carriers $ 22,726 $ 22,926 Cash and cash equivalents held in Trust 25,447 16,113 Investments held in Trust 166,424 171,752 Deferred compensation mutual funds 24,384 22,428 Other restricted cash and cash equivalents 409 6,012 Total restricted cash and investments $ 239,390 $ 239,231 The amortized cost and estimated fair value of our held-to-maturity investments held in trust, aggregated by investment category are as follows: July 1, 2018 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 78,675 $ 304 $ (789 ) $ 78,190 Corporate debt securities 83,481 5 (1,248 ) 82,238 Agency mortgage-backed securities 3,269 6 (46 ) 3,229 U.S. government and agency securities 999 — (24 ) 975 Total held-to-maturity investments $ 166,424 $ 315 $ (2,107 ) $ 164,632 December 31, 2017 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 82,770 $ 974 $ (378 ) $ 83,366 Corporate debt securities 83,916 309 (434 ) 83,791 Agency mortgage-backed securities 4,066 22 (26 ) 4,062 U.S. government and agency securities 1,000 19 — 1,019 Total held-to-maturity investments $ 171,752 $ 1,324 $ (838 ) $ 172,238 The estimated fair value and gross unrealized losses of all investments classified as held-to-maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of July 1, 2018 and December 31, 2017 , were as follows: July 1, 2018 Less than 12 months 12 months or more Total (in thousands) Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses Municipal debt securities $ 37,263 $ (350 ) $ 9,329 $ (439 ) $ 46,592 $ (789 ) Corporate debt securities 69,369 (1,042 ) 8,980 (206 ) 78,349 (1,248 ) Agency mortgage-backed securities 1,397 (15 ) 976 (31 ) 2,373 (46 ) U.S. government and agency securities 975 (24 ) — — 975 (24 ) Total held-to-maturity investments $ 109,004 $ (1,431 ) $ 19,285 $ (676 ) $ 128,289 $ (2,107 ) December 31, 2017 Less than 12 months 12 months or more Total (in thousands) Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses Municipal debt securities $ 23,078 $ (124 ) $ 9,631 $ (254 ) $ 32,709 $ (378 ) Corporate debt securities 48,952 (311 ) 10,081 (123 ) 59,033 (434 ) Agency mortgage-backed securities 1,362 (10 ) 888 (16 ) 2,250 (26 ) Total held-to-maturity investments $ 73,392 $ (445 ) $ 20,600 $ (393 ) $ 93,992 $ (838 ) The total number of held-to-maturity securities in an unrealized loss position as of July 1, 2018 and December 31, 2017 were 114 and 83 , respectively. The unrealized losses were the result of interest rate increases. Since the decline in estimated fair value is attributable to changes in interest rates and not credit quality, and the company has the intent and ability to hold these debt securities until recovery of amortized cost or maturity, we do not consider these investments other than temporarily impaired. The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: July 1, 2018 (in thousands) Amortized cost Fair value Due in one year or less $ 24,233 $ 24,101 Due after one year through five years 91,941 91,148 Due after five years through ten years 50,250 49,383 Total held-to-maturity investments $ 166,424 $ 164,632 Actual maturities may differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without penalty. We have no significant concentrations of counterparties in our held-to-maturity investment portfolio. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jul. 01, 2018 | |
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 PeopleManagement PeopleScout Total company Balance at December 31, 2017 Goodwill before impairment $ 106,304 $ 100,146 $ 132,323 $ 338,773 Accumulated impairment loss (46,210 ) (50,700 ) (15,169 ) (112,079 ) Goodwill, net 60,094 49,446 117,154 226,694 Divested goodwill before impairment (1) — (19,054 ) — (19,054 ) Divested accumulated impairment loss (1) — 17,000 — 17,000 Acquired goodwill (2) — — 16,606 16,606 Foreign currency translation — — (1,866 ) (1,866 ) Balance at July 1, 2018 Goodwill before impairment 106,304 81,092 147,063 334,459 Accumulated impairment loss (46,210 ) (33,700 ) (15,169 ) (95,079 ) Goodwill, net $ 60,094 $ 47,392 $ 131,894 $ 239,380 (1) Effective March 12, 2018, the company entered into an asset purchase agreement for the sale of its PlaneTechs business to Launch Technical Workforce Solutions. As a result of this divestiture, we eliminated the remaining goodwill balance of the PlaneTechs business, which was a part of our PeopleManagement reportable segment. For additional information, see Note 3: Acquisition and divestiture . (2) Effective June 12, 2018, the company acquired TMP Holdings LTD, through its PeopleScout subsidiary. Accordingly, the goodwill associated with the acquisition has been assigned to our PeopleScout reportable segment based on our preliminary purchase price allocation. For additional information, see Note 3: Acquisition and divestiture . Intangible Assets Finite-lived intangible Assets The following table presents our purchased finite-lived intangible assets: July 1, 2018 December 31, 2017 (in thousands) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated Net Finite-lived intangible assets (1): Customer relationships $ 154,060 $ (62,048 ) $ 92,012 $ 148,114 $ (53,801 ) $ 94,313 Trade names/trademarks 2,865 (889 ) 1,976 4,149 (3,736 ) 413 Non-compete agreements — — — 1,400 (1,377 ) 23 Technologies 15,771 (13,684 ) 2,087 17,500 (13,588 ) 3,912 Total finite-lived intangible assets $ 172,696 $ (76,621 ) $ 96,075 $ 171,163 $ (72,502 ) $ 98,661 (1) Excludes assets that are fully amortized. Finite-lived intangible assets include customer relationships and trade names/trademarks of $6.3 million and $1.7 million , respectively, based on our preliminary purchase price allocation relating to our acquisition of TMP Holdings LTD. For additional information, see Note 3: Acquisition and divestiture . Amortization expense of our finite-lived intangible assets was $5.2 million and $10.4 million for the thirteen and twenty-six weeks ended July 1, 2018 , respectively, and $5.3 million and $10.7 million for the thirteen and twenty-six weeks ended July 2, 2017 , respectively. Indefinite-lived intangible assets We also held indefinite-lived trade names/trademarks of $6.0 million as of July 1, 2018 and December 31, 2017 . |
WORKERS' COMPENSATION INSURANCE
WORKERS' COMPENSATION INSURANCE AND RESERVES | 6 Months Ended |
Jul. 01, 2018 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
WORKERS' COMPENSATION INSURANCE AND RESERVES | WORKERS’ COMPENSATION INSURANCE AND RESERVES We provide workers’ compensation insurance for our temporary and permanent employees. The majority of our current workers’ compensation insurance policies cover claims for a particular event above a $2.0 million deductible limit, on a “per occurrence” basis. This results in our being substantially self-insured. Our workers’ compensation reserve for claims below the deductible limit is discounted to its estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. The weighted average discount rate was 1.9% and 1.8% at July 1, 2018 and December 31, 2017 , respectively. Payments made against self-insured claims are made over a weighted average period of approximately five years as of July 1, 2018 . The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented: (in thousands) July 1, December 31, Undiscounted workers’ compensation reserve $ 284,399 $ 293,600 Less discount on workers’ compensation reserve 19,311 19,277 Workers’ compensation reserve, net of discount 265,088 274,323 Less current portion 69,848 77,218 Long-term portion $ 195,240 $ 197,105 Payments made against self-insured claims were $36.1 million and $31.5 million for the twenty-six weeks ended July 1, 2018 and July 2, 2017 , respectively. Our workers’ compensation reserve includes estimated expenses related to claims above our self-insured limits (“excess claims”), and we record a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance carriers. We discount this reserve and corresponding receivable to its estimated net present value using the discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. At July 1, 2018 and December 31, 2017 , the weighted average rate was 2.6% and 2.5% , respectively. The claim payments are made and the corresponding reimbursements from our insurance carriers are received over an estimated weighted average period of approximately 15 years . The discounted workers’ compensation reserve for excess claims was $48.6 million and $48.8 million as of July 1, 2018 and December 31, 2017 , respectively. The discounted receivables from insurance companies, net of valuation allowance, were $45.0 million as of July 1, 2018 and December 31, 2017 , and are included in other assets, net on the accompanying Consolidated Balance Sheets. Workers’ compensation expense of $17.8 million and $22.3 million was recorded in cost of services for the thirteen weeks ended July 1, 2018 and July 2, 2017 , respectively. Workers’ compensation expense of $34.4 million and $42.1 million was recorded in cost of services for the twenty-six weeks ended July 1, 2018 and July 2, 2017 , respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jul. 01, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT The components of our borrowings were as follows: (in thousands) July 1, December 31, Revolving Credit Facility $ 117,199 $ 95,900 Term Loan — 22,856 Total debt 117,199 118,756 Less current portion — 2,267 Long-term debt, less current portion $ 117,199 $ 116,489 Revolving credit facility Effective June 30, 2014, we entered into a Second Amended and Restated Revolving Credit Agreement for a secured revolving credit facility of $300.0 million with Bank of America, N.A., Wells Fargo Bank, National Association, HSBC and PNC Capital Markets LLC (“Revolving Credit Facility”). The maximum amount we could borrow under the Revolving Credit Facility was subject to certain borrowing limits. Specifically, we were limited to the sum of 90% of our eligible billed accounts receivable, plus 85% of our eligible unbilled accounts receivable limited to 15% of all our eligible receivables, plus the value of our Tacoma headquarters office building. The borrowing limit was further reduced by the sum of a reserve in an amount equal to the payroll and payroll taxes for our temporary employees for one payroll cycle and certain other reserves, if deemed applicable. As of July 1, 2018 , we were in compliance with all covenants related to the Revolving Credit Facility. Revolving credit facility subsequent event On July 13, 2018 , we entered into a credit agreement with Bank of America, N.A., Wells Fargo Bank, N.A., PNC Bank, N.A., KeyBank, N.A. and HSBC Bank USA, N.A. (“New Revolving Credit Facility”), and replaced the Revolving Credit Facility. The agreement provides for a revolving line of credit of up to $300 million with an option, subject to lender approval, to increase the amount to $450 million , and matures in five years. Under the terms of the agreement, we will pay a variable rate of interest on funds borrowed that is based on the London Interbank Offered Rate (LIBOR) plus an applicable spread between 1.25% and 2.50% . Alternatively, at our option, we may pay interest based upon a base rate plus an applicable spread between 0.25% and 1.50% . The applicable spread will be determined by the consolidated leverage ratio, as defined in the credit agreement. The base rate is the greater of the prime rate (as announced by Bank of America), the federal funds rate plus 0.50% , or the one-month LIBOR rate plus 1.00% . A commitment fee between 0.250% and 0.375% will be applied against the New Revolving Credit Facility’s unused borrowing capacity, with the specific rate determined by the consolidated leverage ratio, as defined in the credit agreement. Letters of credit are priced at a margin between 1.00% and 2.25% , plus a fronting fee of 0.50% . Obligations under the agreement are guaranteed by TrueBlue and material U.S. domestic subsidiaries, and are secured by certain collateral of TrueBlue and material U.S. domestic subsidiaries. The agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, including, among others, financial covenants based on our leverage and fixed charge coverage ratios, as defined in the credit agreement. Accordingly, we classified the Revolving Credit Facility as long-term as of July 1, 2018 , since the New Revolving Credit Facility replaced the Revolving Credit Facility on a long-term basis. Term loan agreement On June 25, 2018, we pre-paid in full our outstandin g obligations of approximately $22.0 million with Synovus Bank, terminating all commitments under this term loan (the “Term Loan”) dated February 4, 2013 (as subsequently amended). We did not incur any early termination penalties in connection with the termination of the Term Loan. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jul. 01, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Workers’ compensation commitments We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) July 1, December 31, Cash collateral held by workers’ compensation insurance carriers $ 21,946 $ 22,148 Cash and cash equivalents held in Trust 25,447 16,113 Investments held in Trust 166,424 171,752 Letters of credit (1) 7,618 7,748 Surety bonds (2) 22,014 19,829 Total collateral commitments $ 243,449 $ 237,590 (1) We have agreements with certain financial institutions to issue letters of credit as collateral. (2) Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which are determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days’ notice. Legal contingencies and developments We are involved in various proceedings arising in the normal course of conducting business. We believe the liabilities included in our financial statements reflect the probable loss that can be reasonably estimated. The resolution of those proceedings is not expected to have a material effect on our results of operations or financial condition. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jul. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our income tax provision or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes we make a cumulative adjustment. Our quarterly tax provision and quarterly estimate of our annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss by jurisdiction, tax credits, government audit developments, changes in laws, regulations and administrative practices, and relative changes in expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items, tax credits, and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. Except as required under U.S. tax law, we do not provide for U.S. taxes on undistributed earnings of our foreign subsidiaries since we consider those earnings to be permanently invested outside of the U.S. Our effective tax rate for the twenty-six weeks ended July 1, 2018 was 11.5% . The difference between the statutory federal income tax rate of 21.0% and our effective income tax rate results primarily from the federal Work Opportunity Tax Credit. This tax credit is designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates. Other differences between the statutory federal income tax rate of 21.0% and our effective tax rate result from state and foreign income taxes, certain non-deductible expenses, tax exempt interest, and tax effects of share based compensation. On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. For the twenty-six weeks ended July 1, 2018 , we have not identified any needed adjustments to our transition tax and revaluation of net deferred tax assets recorded at December 31, 2017 . Any subsequent adjustment to these amounts will be recorded to current tax expense in the fiscal 2018 quarter in which the analysis is complete. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 6 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME PER SHARE Diluted common shares were calculated as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands, except per share data) July 1, July 2, July 1, July 2, Net income $ 17,732 $ 13,134 $ 26,487 $ 17,808 Weighted average number of common shares used in basic net income per common share 40,227 41,579 40,335 41,608 Dilutive effect of non-vested restricted stock 242 277 241 267 Weighted average number of common shares used in diluted net income per common share 40,469 41,856 40,576 41,875 Net income per common share: Basic $ 0.44 $ 0.32 $ 0.66 $ 0.43 Diluted $ 0.44 $ 0.31 $ 0.65 $ 0.43 Anti-dilutive shares 254 60 218 183 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the balance of each component of accumulated other comprehensive loss during the reporting periods were as follows: Thirteen weeks ended July 1, 2018 July 2, 2017 (in thousands) Foreign currency translation adjustment Unrealized gain (loss) on investments, net of tax (1) Total other comprehensive (loss), net of tax Foreign currency translation adjustment Unrealized gain on investments, net of tax (1) Total other comprehensive income (loss), net of tax Balance at beginning of period $ (9,713 ) $ — $ (9,713 ) $ (9,884 ) $ 988 $ (8,896 ) Current period other comprehensive income (1,921 ) — (1,921 ) 540 (91 ) 449 Balance at end of period $ (11,634 ) $ — $ (11,634 ) $ (9,344 ) $ 897 $ (8,447 ) Twenty-six weeks ended July 1, 2018 July 2, 2017 (in thousands) Foreign currency translation adjustment Unrealized gain on investments, net of tax (1) Total other comprehensive (loss), net of tax Foreign currency translation adjustment Unrealized gain on investments, net of tax (1) Total other comprehensive income (loss), net of tax Balance at beginning of period $ (8,329 ) $ 1,525 $ (6,804 ) $ (11,684 ) $ 251 $ (11,433 ) Current period other comprehensive income (3,305 ) — (3,305 ) 2,340 646 2,986 Change in accounting standard cumulative-effect adjustment (2) — (1,525 ) (1,525 ) — — — Balance at end of period $ (11,634 ) $ — $ (11,634 ) $ (9,344 ) $ 897 $ (8,447 ) (1) Consisted of deferred compensation plan accounts, comprised of mutual funds classified as available-for-sale securities, prior to our adoption of the new accounting standard for equity investments in the fiscal first quarter of 2018. The tax impact on the unrealized gain on available-for-sale securities was de minimis for the thirteen and twenty-six weeks ended July 2, 2017 . (2) As a result of our adoption of the new accounting standard for equity investments, $1.5 million in unrealized gains, net of tax on available-for-sale equity securities were reclassified from accumulated other comprehensive loss to retained earnings as of the beginning of fiscal 2018. There were no material reclassifications out of accumulated other comprehensive loss during the thirteen and twenty-six weeks ended July 2, 2017 . For additional information, see Note 1: Summary of significant accounting policies . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our operating segments are based on the organizational structure for which financial results are regularly reviewed by our chief operating decision-maker, our Chief Executive Officer, to determine resource allocation and assess performance. Our operating segments, also referred to as service lines, and reportable segments are described below: Our PeopleReady reportable segment provides blue-collar, contingent staffing through the PeopleReady operating segment. PeopleReady provides on-demand and skilled labor in a broad range of industries that include construction, manufacturing and logistics, warehousing and distribution, waste and recycling, hospitality, general labor and others. Our PeopleManagement reportable segment provides contingent labor and outsourced industrial workforce solutions, primarily on-premise at the client’s facility, through the following operating segments, which we have aggregated into one reportable segment in accordance with U.S. GAAP: • Staff Management | SMX : Exclusive recruitment and on-premise management of a facility’s contingent industrial workforce; • SIMOS Insourcing Solutions : On-premise management and recruitment of warehouse/distribution operations; and • Centerline Drivers : Recruitment and management of temporary and dedicated drivers to the transportation and distribution industries. Effective March 12, 2018 , we divested the PlaneTechs operating segment within our PeopleManagement reportable segment to Launch Technical Workforce Solutions. For additional information, see Note 3: Acquisition and divestiture. Our PeopleScout reportable segment provides high-volume, permanent employee recruitment process outsourcing, and management of outsourced labor service providers through the following operating segments, which we have aggregated into one reportable segment in accordance with U.S. GAAP: • PeopleScout : Outsourced recruitment of permanent employees on behalf of clients; and • PeopleScout MSP : Management of multiple third party staffing vendors on behalf of clients. Effective June 12, 2018, we acquired TMP Holdings LTD, through our PeopleScout subsidiary. Accordingly, the results associated with the acquisition are included in our PeopleScout operating segment. TMP is a mid-sized RPO and employer branding service provider operating in the United Kingdom which is the second largest RPO market in the world. This acquisition increases our ability to win multi-continent engagements by adding a physical presence in Europe, referenceable clients and employer branding capabilities. F or additional information, see Note 3: Acquisition and divestiture . We evaluate performance based on segment revenue and segment profit. Inter-segment revenue is minimal. Commencing in the fiscal first quarter of 2018, we revised our internal segment performance measure to be segment profit, rather than the previously reported segment earnings before interest, taxes, depreciation and amortization (segment EBITDA). Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit excludes goodwill and intangible impairment charges, depreciation and amortization expense, unallocated corporate general and administrative expense, interest, other income and expense, income taxes, and costs not considered to be ongoing costs of the segment. The prior year amounts have been recast to reflect this change for consistency purposes. The following table presents a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended Twenty-six weeks ended (in thousands) July 1, July 2, July 1, July 2, Revenue from services: PeopleReady $ 377,460 $ 370,712 $ 694,295 $ 703,336 PeopleManagement 178,839 192,887 362,731 384,573 PeopleScout 58,002 46,523 111,663 90,457 Total company $ 614,301 $ 610,122 $ 1,168,689 $ 1,178,366 The following table presents a reconciliation of Segment profit to income before tax expense: Thirteen weeks ended Twenty-six weeks ended (in thousands) July 1, July 2, July 1, July 2, Segment profit: PeopleReady $ 23,198 $ 19,170 $ 32,723 $ 29,164 PeopleManagement 4,712 6,286 10,361 11,819 PeopleScout 11,320 10,129 23,225 18,794 39,230 35,585 66,309 59,777 Corporate unallocated (5,868 ) (5,043 ) (13,532 ) (11,378 ) Work Opportunity Tax Credit processing fees (264 ) (16 ) (459 ) (288 ) Acquisition/integration costs (457 ) — (457 ) — Other costs (1,264 ) — (2,979 ) — Depreciation and amortization (10,101 ) (12,287 ) (20,191 ) (23,461 ) Income from operations 21,276 18,239 28,691 24,650 Interest and other income (expense), net (968 ) 155 1,236 229 Income before tax expense $ 20,308 $ 18,394 $ 29,927 $ 24,879 Asset information by reportable segment is not presented since we do not manage our segments on a balance sheet basis. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jul. 01, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS New credit agreement On July 13, 2018 , we entered into a new credit agreement with Bank of America, N.A., Wells Fargo Bank, N.A., PNC Bank, N.A., KeyBank, N.A. and HSBC Bank USA, N.A. Refer to Note 8: Long-term debt for additional information on this credit agreement. In connection with entering into the new credit agreement, we also replaced the Second Amended and Restated Credit Agreement, which was set to expire in June 2019. We did not incur any early termination penalties in connection with the termination of the prior credit agreement. CEO transition On July 30, 2018, TrueBlue, Inc. announced that Chief Executive Officer Steven C. Cooper will become Executive Chairman of the Board of Directors, succeeding Joe Sambataro Jr. This transition will take place effective September 1, 2018. Mr. Sambataro will remain on the board of directors. Mr. Cooper will be succeeded as CEO by current President and Chief Operating Officer Patrick Beharelle, who has been named CEO and a member of the board of directors, effective September 1, 2018. Mr. Cooper will also retire as an executive of the company at year-end and continue to serve as Chairman of the Board of Directors thereafter. The board of directors also appointed and elected Mr. Beharelle to the company’s board of directors, effective September 1, 2018. We evaluated events and transactions occurring after the balance sheet date through the date the financial statements were issued, and identified no other events that were subject to recognition or disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jul. 01, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . The results of operations for the thirteen and twenty-six weeks ended July 1, 2018 , are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. |
Goodwill and Intangible Assets, Policy | Goodwill and indefinite-lived intangible assets We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, and more frequently if an event occurs or circumstances change that would indicate impairment may exist. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, customer engagement, or sale or disposition of a significant portion of a reporting unit. We monitor the existence of potential impairment indicators throughout the fiscal year. Based on our annual goodwill impairment test performed as of the first day of our fiscal second quarter, all reporting units’ fair values were substantially in excess of their respective carrying values. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. Accordingly, no impairment loss was recognized for the thirteen weeks ended July 1, 2018 nor July 2, 2017 . We performed our annual indefinite-lived intangible asset impairment test as of the first day of our fiscal second quarter and determined that the estimated fair values exceeded the carrying amounts for our indefinite-lived trade names. Accordingly, no impairment loss was recognized for the thirteen weeks ended July 1, 2018 nor July 2, 2017 . |
New accounting pronouncements and changes in accounting principles | Recently adopted accounting standards In May 2017, the Financial Accounting Standing Board (“FASB”) issued guidance to provide clarity and reduce diversity in practice when accounting for a change to the terms or conditions of share-based payment awards. The objective was to reduce the scope of transactions that would require modification accounting. Disclosure requirements remain unchanged. This amended guidance was effective for our fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue), with early adoption permitted. We adopted this guidance for our fiscal first quarter of 2018. The adoption of the new standard did not have a material impact on our financial statements. In January 2017, the FASB issued guidance clarifying the definition of a business, which revises the definition of a business and provides new guidance in evaluating when a set of transferred assets and activities is a business. This guidance was effective for fiscal years and interim periods beginning December 15, 2017 (Q1 2018 for TrueBlue) on a prospective basis. This standard did not have a material impact on our financial statements. In Q2 2018, we acquired all of the outstanding equity interests of TMP Holdings LTD (“TMP”) and concluded that TMP represents a business based on this new guidance. See Note 3: Acquisition and divestiture , for further discussion of our acquisition of TMP. In November 2016, the FASB issued guidance to amend the presentation of restricted cash and restricted cash equivalents on the statement of cash flows. The standard requires restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amended guidance was effective for fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). We adopted this guidance for our fiscal first quarter of 2018 using the retrospective transition method. Accordingly, the change in restricted cash and cash equivalents is no longer segregated in our statement of cash flows, and the $8.8 million previously presented in the investing section for the twenty-six weeks ended July 2, 2017 is now included when reconciling the beginning-of-period and end-of-period cash, cash equivalents and restricted cash shown on the statement of cash flows. In October 2016, the FASB issued guidance on the accounting for income tax effects of intercompany sales or transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity sale or transfer of an asset other than inventory when the sale or transfer occurs, rather than when the asset has been sold to an outside party. This guidance was effective for fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). The guidance requires a modified retrospective application with a cumulative catch-up adjustment to opening retained earnings. We adopted this guidance for our fiscal first quarter of 2018. The adoption of the new standard did not have a material impact on our financial statements. In August 2016, the FASB issued guidance relating to how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. The update was intended to reduce the existing diversity in practice. The amended guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 (Q1 2018 for TrueBlue). We adopted this guidance for our fiscal first quarter of 2018. The adoption of the new standard did not have an impact on our financial statements. In January 2016, the FASB issued guidance on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance was effective for annual and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). Early adoption of the amendments in the guidance was not permitted, with limited exceptions. The guidance required a cumulative-effect adjustment be made to reclassify unrealized gains and losses related to available-for-sale equity securities from accumulated other comprehensive income, to retained earnings as of the beginning of the fiscal year of adoption. We adopted this guidance as of the first day of our fiscal first quarter of 2018 and reclassified from accumulated other comprehensive loss to retained earnings, $1.5 million in unrealized gains, net of tax on available-for-sale equity securities. Beginning in Q1 2018, change in market value for our available-for-sale equity securities is included in selling, general and administrative expense in the Consolidated Statements of Operation and Comprehensive Income. In May 2014, the FASB issued guidance outlining a single comprehensive model for accounting for revenue arising from contracts with clients, which supersedes the current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted this new guidance as of January 1, 2018 using the modified retrospective transition method. The adoption of this new guidance did not have a material impact on our consolidated financial statements as of the adoption date, nor for the thirteen and twenty-six weeks ended July 1, 2018 , except for expanded disclosures. Refer to Note 2: Revenue recognition for additional accounting policy and transition disclosures. Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued guidance on lease accounting. The new guidance will continue to classify leases as either finance or operating, but will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with classification affecting the pattern of expense recognition in the statement of operations. This guidance is effective for annual and interim periods beginning after December 15, 2018 (Q1 2019 for TrueBlue), and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. We plan to adopt the guidance on the effective date. We established a cross-functional implementation team consisting of representatives from various departments to review our current contracts, accounting policies and business practices to identify and quantify the potential impact of the new standard on our financial statements. We are completing this evaluation and expect that, upon adoption, a majority of our operating lease commitments will be recognized on our Consolidated Balance Sheets as operating lease liabilities and right-of-use assets. We do not expect the adoption to have a material impact on the pattern of expense recognition in our Consolidated Statements of Operations and Comprehensive Income. Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our financial statements upon adoption. |
Revenue Recognition, Policy | Revenue recognition We account for a contract when both parties to the contract have approved the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenues are recognized over time, using an output measure, as the control of the promised services is transferred to the client in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The majority of our contracts are short-term in nature as they are filling the temporary staffing needs of our clients, or include termination clauses that allow either party to cancel within a short termination period, without cause. Revenue includes billable travel and other reimbursable costs and are reported net of sales, use, or other transaction taxes collected from clients and remitted to taxing authorities. Payment terms vary by client and the services offered. We consider payment terms that exceed one year to be extended payment terms, however we do not extend payment terms beyond one year. Substantially all of our contracts include payment terms of 90 days or less. We primarily record revenue on a gross basis as a principal versus on a net basis as an agent in the Consolidated Statements of Operations and Comprehensive Income. We have determined that gross reporting as a principal is the appropriate treatment based upon the following key factors: • We maintain the direct contractual relationship with the client and are responsible for fulfilling the service promised to the client. • We maintain control over our workers while the services to the client are being performed. • We establish our worker’s billing rate. Contingent staffing We recognize revenue for our contingent staffing services over time as services are performed in an amount that reflects the consideration we expect to be entitled to in exchange for our services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our contingent staffing contracts. Costs are incurred to fulfill some contingent staffing contracts, however these costs are not material and are expensed as incurred. Human resource outsourcing We primarily recognize revenue for our outsourced recruitment of permanent employees over time in an amount that reflects the consideration we expect to be entitled to in exchange for our services. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our outsourced recruitment of permanent employees’ contracts. The costs to fulfill these contracts are not material and are expensed as incurred. Unsatisfied performance obligations As a practical expedient, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an expected original duration of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
REVENUE RECOGNITION Revenue Rec
REVENUE RECOGNITION Revenue Recognition (Policies) | 6 Months Ended |
Jul. 01, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Policy | Revenue recognition We account for a contract when both parties to the contract have approved the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenues are recognized over time, using an output measure, as the control of the promised services is transferred to the client in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The majority of our contracts are short-term in nature as they are filling the temporary staffing needs of our clients, or include termination clauses that allow either party to cancel within a short termination period, without cause. Revenue includes billable travel and other reimbursable costs and are reported net of sales, use, or other transaction taxes collected from clients and remitted to taxing authorities. Payment terms vary by client and the services offered. We consider payment terms that exceed one year to be extended payment terms, however we do not extend payment terms beyond one year. Substantially all of our contracts include payment terms of 90 days or less. We primarily record revenue on a gross basis as a principal versus on a net basis as an agent in the Consolidated Statements of Operations and Comprehensive Income. We have determined that gross reporting as a principal is the appropriate treatment based upon the following key factors: • We maintain the direct contractual relationship with the client and are responsible for fulfilling the service promised to the client. • We maintain control over our workers while the services to the client are being performed. • We establish our worker’s billing rate. Contingent staffing We recognize revenue for our contingent staffing services over time as services are performed in an amount that reflects the consideration we expect to be entitled to in exchange for our services, which is generally calculated as hours worked multiplied by the agreed-upon hourly bill rate. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our contingent staffing contracts. Costs are incurred to fulfill some contingent staffing contracts, however these costs are not material and are expensed as incurred. Human resource outsourcing We primarily recognize revenue for our outsourced recruitment of permanent employees over time in an amount that reflects the consideration we expect to be entitled to in exchange for our services. The client simultaneously receives and consumes the benefits of the services as they are provided. We do not incur costs to obtain our outsourced recruitment of permanent employees’ contracts. The costs to fulfill these contracts are not material and are expensed as incurred. Unsatisfied performance obligations As a practical expedient, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an expected original duration of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation Of Revenue | The following table presents our revenue disaggregated by major source: Thirteen weeks ended July 1, 2018 (in thousands) PeopleReady PeopleManagement PeopleScout Consolidated Revenue from services: Contingent staffing $ 377,460 $ 178,839 $ — $ 556,299 Human resource outsourcing — — 58,002 58,002 Total company $ 377,460 $ 178,839 $ 58,002 $ 614,301 Twenty-six weeks ended July 1, 2018 (in thousands) PeopleReady PeopleManagement PeopleScout Consolidated Revenue from services: Contingent staffing $ 694,295 $ 362,731 $ — $ 1,057,026 Human resource outsourcing — — 111,663 111,663 Total company $ 694,295 $ 362,731 $ 111,663 $ 1,168,689 |
ACQUISITION AND DIVESTITURE (Ta
ACQUISITION AND DIVESTITURE (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table reflects our preliminary allocation of the purchase price, net of cash acquired, to the fair value of the assets acquired and liabilities assumed: (in thousands) Purchase price allocation Cash purchase price, net of cash acquired $ 22,742 Purchase price allocated as follows: Accounts receivable 9,770 Prepaid expenses, deposits and other current assets 337 Property and equipment 435 Customer relationships 6,286 Trade names/trademarks 1,738 Total assets acquired 18,566 Accounts payable and other accrued expenses 9,139 Accrued wages and benefits 1,642 Income tax payable 205 Deferred income tax liability 1,444 Total liabilities assumed 12,430 Net identifiable assets acquired 6,136 Goodwill (1) 16,606 Total consideration allocated $ 22,742 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of identifiable intangible assets, their estimated fair values and useful lives as of June 12, 2018 : (in thousands, except for estimated useful lives, in years) Estimated fair value Estimated useful life in years Customer relationships $ 6,286 3-7 Trade names/trademarks 1,738 14 Total acquired identifiable intangible assets $ 8,024 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Our assets and liabilities measured at fair value on a recurring basis consisted of the following: July 1, 2018 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Financial assets: Cash and cash equivalents $ 33,408 $ 33,408 $ — $ — Restricted cash and cash equivalents 48,582 48,582 — — Cash, cash equivalents and restricted cash (1) $ 81,990 $ 81,990 $ — $ — Deferred compensation mutual funds classified as available-for-sale $ 24,384 $ 24,384 $ — $ — Municipal debt securities $ 78,190 $ — $ 78,190 $ — Corporate debt securities 82,238 — 82,238 — Agency mortgage-backed securities 3,229 — 3,229 — U.S. government and agency securities 975 — 975 — Restricted investments classified as held-to-maturity $ 164,632 $ — $ 164,632 $ — December 31, 2017 (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Financial assets: Cash and cash equivalents $ 28,780 $ 28,780 $ — $ — Restricted cash and cash equivalents 45,051 45,051 — — Cash, cash equivalents and restricted cash (1) $ 73,831 $ 73,831 $ — $ — Deferred compensation mutual funds classified as available-for-sale $ 22,428 $ 22,428 $ — $ — Municipal debt securities $ 83,366 $ — $ 83,366 $ — Corporate debt securities 83,791 — 83,791 — Agency mortgage-backed securities 4,062 — 4,062 — U.S. government and agency securities 1,019 — 1,019 — Restricted investments classified as held-to-maturity $ 172,238 $ — $ 172,238 $ — (1) Cash, cash equivalents and restricted cash consist of money market funds, deposits, and investments with original maturities of three months or less. |
RESTRICTED CASH AND INVESTMEN25
RESTRICTED CASH AND INVESTMENTS (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Restricted Cash and Investments [Abstract] | |
Schedule of restricted cash and investments | The following is a summary of the carrying value of our restricted cash and investments: (in thousands) July 1, December 31, Cash collateral held by insurance carriers $ 22,726 $ 22,926 Cash and cash equivalents held in Trust 25,447 16,113 Investments held in Trust 166,424 171,752 Deferred compensation mutual funds 24,384 22,428 Other restricted cash and cash equivalents 409 6,012 Total restricted cash and investments $ 239,390 $ 239,231 |
Schedule of held-to-maturity investments | The amortized cost and estimated fair value of our held-to-maturity investments held in trust, aggregated by investment category are as follows: July 1, 2018 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 78,675 $ 304 $ (789 ) $ 78,190 Corporate debt securities 83,481 5 (1,248 ) 82,238 Agency mortgage-backed securities 3,269 6 (46 ) 3,229 U.S. government and agency securities 999 — (24 ) 975 Total held-to-maturity investments $ 166,424 $ 315 $ (2,107 ) $ 164,632 December 31, 2017 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 82,770 $ 974 $ (378 ) $ 83,366 Corporate debt securities 83,916 309 (434 ) 83,791 Agency mortgage-backed securities 4,066 22 (26 ) 4,062 U.S. government and agency securities 1,000 19 — 1,019 Total held-to-maturity investments $ 171,752 $ 1,324 $ (838 ) $ 172,238 |
Schedule of continuous unrealized loss position | The estimated fair value and gross unrealized losses of all investments classified as held-to-maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of July 1, 2018 and December 31, 2017 , were as follows: July 1, 2018 Less than 12 months 12 months or more Total (in thousands) Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses Municipal debt securities $ 37,263 $ (350 ) $ 9,329 $ (439 ) $ 46,592 $ (789 ) Corporate debt securities 69,369 (1,042 ) 8,980 (206 ) 78,349 (1,248 ) Agency mortgage-backed securities 1,397 (15 ) 976 (31 ) 2,373 (46 ) U.S. government and agency securities 975 (24 ) — — 975 (24 ) Total held-to-maturity investments $ 109,004 $ (1,431 ) $ 19,285 $ (676 ) $ 128,289 $ (2,107 ) December 31, 2017 Less than 12 months 12 months or more Total (in thousands) Estimated fair value Unrealized losses Estimated fair value Unrealized losses Estimated fair value Unrealized losses Municipal debt securities $ 23,078 $ (124 ) $ 9,631 $ (254 ) $ 32,709 $ (378 ) Corporate debt securities 48,952 (311 ) 10,081 (123 ) 59,033 (434 ) Agency mortgage-backed securities 1,362 (10 ) 888 (16 ) 2,250 (26 ) Total held-to-maturity investments $ 73,392 $ (445 ) $ 20,600 $ (393 ) $ 93,992 $ (838 ) |
Schedule of held-to-maturity investments by contractual maturity | The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: July 1, 2018 (in thousands) Amortized cost Fair value Due in one year or less $ 24,233 $ 24,101 Due after one year through five years 91,941 91,148 Due after five years through ten years 50,250 49,383 Total held-to-maturity investments $ 166,424 $ 164,632 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table reflects changes in the carrying amount of goodwill during the period by reportable segments : (in thousands) PeopleReady PeopleManagement PeopleScout Total company Balance at December 31, 2017 Goodwill before impairment $ 106,304 $ 100,146 $ 132,323 $ 338,773 Accumulated impairment loss (46,210 ) (50,700 ) (15,169 ) (112,079 ) Goodwill, net 60,094 49,446 117,154 226,694 Divested goodwill before impairment (1) — (19,054 ) — (19,054 ) Divested accumulated impairment loss (1) — 17,000 — 17,000 Acquired goodwill (2) — — 16,606 16,606 Foreign currency translation — — (1,866 ) (1,866 ) Balance at July 1, 2018 Goodwill before impairment 106,304 81,092 147,063 334,459 Accumulated impairment loss (46,210 ) (33,700 ) (15,169 ) (95,079 ) Goodwill, net $ 60,094 $ 47,392 $ 131,894 $ 239,380 (1) Effective March 12, 2018, the company entered into an asset purchase agreement for the sale of its PlaneTechs business to Launch Technical Workforce Solutions. As a result of this divestiture, we eliminated the remaining goodwill balance of the PlaneTechs business, which was a part of our PeopleManagement reportable segment. For additional information, see Note 3: Acquisition and divestiture . (2) Effective June 12, 2018, the company acquired TMP Holdings LTD, through its PeopleScout subsidiary. Accordingly, the goodwill associated with the acquisition has been assigned to our PeopleScout reportable segment based on our preliminary purchase price allocation. For additional information, see Note 3: Acquisition and divestiture . |
Schedule of Finite-Lived Intangible Assets | The following table presents our purchased finite-lived intangible assets: July 1, 2018 December 31, 2017 (in thousands) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated Net Finite-lived intangible assets (1): Customer relationships $ 154,060 $ (62,048 ) $ 92,012 $ 148,114 $ (53,801 ) $ 94,313 Trade names/trademarks 2,865 (889 ) 1,976 4,149 (3,736 ) 413 Non-compete agreements — — — 1,400 (1,377 ) 23 Technologies 15,771 (13,684 ) 2,087 17,500 (13,588 ) 3,912 Total finite-lived intangible assets $ 172,696 $ (76,621 ) $ 96,075 $ 171,163 $ (72,502 ) $ 98,661 (1) Excludes assets that are fully amortized. |
WORKERS' COMPENSATION INSURAN27
WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
Reconciliation of workers' compensation claims reserve | The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented: (in thousands) July 1, December 31, Undiscounted workers’ compensation reserve $ 284,399 $ 293,600 Less discount on workers’ compensation reserve 19,311 19,277 Workers’ compensation reserve, net of discount 265,088 274,323 Less current portion 69,848 77,218 Long-term portion $ 195,240 $ 197,105 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments | The components of our borrowings were as follows: (in thousands) July 1, December 31, Revolving Credit Facility $ 117,199 $ 95,900 Term Loan — 22,856 Total debt 117,199 118,756 Less current portion — 2,267 Long-term debt, less current portion $ 117,199 $ 116,489 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of workers’ compensation collateral commitments | We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) July 1, December 31, Cash collateral held by workers’ compensation insurance carriers $ 21,946 $ 22,148 Cash and cash equivalents held in Trust 25,447 16,113 Investments held in Trust 166,424 171,752 Letters of credit (1) 7,618 7,748 Surety bonds (2) 22,014 19,829 Total collateral commitments $ 243,449 $ 237,590 (1) We have agreements with certain financial institutions to issue letters of credit as collateral. (2) Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which are determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days’ notice. |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of adjusted net income and diluted common shares | Diluted common shares were calculated as follows: Thirteen weeks ended Twenty-six weeks ended (in thousands, except per share data) July 1, July 2, July 1, July 2, Net income $ 17,732 $ 13,134 $ 26,487 $ 17,808 Weighted average number of common shares used in basic net income per common share 40,227 41,579 40,335 41,608 Dilutive effect of non-vested restricted stock 242 277 241 267 Weighted average number of common shares used in diluted net income per common share 40,469 41,856 40,576 41,875 Net income per common share: Basic $ 0.44 $ 0.32 $ 0.66 $ 0.43 Diluted $ 0.44 $ 0.31 $ 0.65 $ 0.43 Anti-dilutive shares 254 60 218 183 |
ACCUMULATED OTHER COMPREHENSI31
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Equity [Abstract] | |
Schedule of Comprehensive Loss | Changes in the balance of each component of accumulated other comprehensive loss during the reporting periods were as follows: Thirteen weeks ended July 1, 2018 July 2, 2017 (in thousands) Foreign currency translation adjustment Unrealized gain (loss) on investments, net of tax (1) Total other comprehensive (loss), net of tax Foreign currency translation adjustment Unrealized gain on investments, net of tax (1) Total other comprehensive income (loss), net of tax Balance at beginning of period $ (9,713 ) $ — $ (9,713 ) $ (9,884 ) $ 988 $ (8,896 ) Current period other comprehensive income (1,921 ) — (1,921 ) 540 (91 ) 449 Balance at end of period $ (11,634 ) $ — $ (11,634 ) $ (9,344 ) $ 897 $ (8,447 ) Twenty-six weeks ended July 1, 2018 July 2, 2017 (in thousands) Foreign currency translation adjustment Unrealized gain on investments, net of tax (1) Total other comprehensive (loss), net of tax Foreign currency translation adjustment Unrealized gain on investments, net of tax (1) Total other comprehensive income (loss), net of tax Balance at beginning of period $ (8,329 ) $ 1,525 $ (6,804 ) $ (11,684 ) $ 251 $ (11,433 ) Current period other comprehensive income (3,305 ) — (3,305 ) 2,340 646 2,986 Change in accounting standard cumulative-effect adjustment (2) — (1,525 ) (1,525 ) — — — Balance at end of period $ (11,634 ) $ — $ (11,634 ) $ (9,344 ) $ 897 $ (8,447 ) (1) Consisted of deferred compensation plan accounts, comprised of mutual funds classified as available-for-sale securities, prior to our adoption of the new accounting standard for equity investments in the fiscal first quarter of 2018. The tax impact on the unrealized gain on available-for-sale securities was de minimis for the thirteen and twenty-six weeks ended July 2, 2017 . (2) As a result of our adoption of the new accounting standard for equity investments, $1.5 million in unrealized gains, net of tax on available-for-sale equity securities were reclassified from accumulated other comprehensive loss to retained earnings as of the beginning of fiscal 2018. There were no material reclassifications out of accumulated other comprehensive loss during the thirteen and twenty-six weeks ended July 2, 2017 . For additional information, see Note 1: Summary of significant accounting policies . |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table presents a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended Twenty-six weeks ended (in thousands) July 1, July 2, July 1, July 2, Revenue from services: PeopleReady $ 377,460 $ 370,712 $ 694,295 $ 703,336 PeopleManagement 178,839 192,887 362,731 384,573 PeopleScout 58,002 46,523 111,663 90,457 Total company $ 614,301 $ 610,122 $ 1,168,689 $ 1,178,366 The following table presents a reconciliation of Segment profit to income before tax expense: Thirteen weeks ended Twenty-six weeks ended (in thousands) July 1, July 2, July 1, July 2, Segment profit: PeopleReady $ 23,198 $ 19,170 $ 32,723 $ 29,164 PeopleManagement 4,712 6,286 10,361 11,819 PeopleScout 11,320 10,129 23,225 18,794 39,230 35,585 66,309 59,777 Corporate unallocated (5,868 ) (5,043 ) (13,532 ) (11,378 ) Work Opportunity Tax Credit processing fees (264 ) (16 ) (459 ) (288 ) Acquisition/integration costs (457 ) — (457 ) — Other costs (1,264 ) — (2,979 ) — Depreciation and amortization (10,101 ) (12,287 ) (20,191 ) (23,461 ) Income from operations 21,276 18,239 28,691 24,650 Interest and other income (expense), net (968 ) 155 1,236 229 Income before tax expense $ 20,308 $ 18,394 $ 29,927 $ 24,879 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Recently adopted accounting standards (Details) $ in Millions | 6 Months Ended |
Jul. 02, 2017USD ($) | |
Restatement Adjustment | Accounting Standards Update 2016-18 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Decrease in restricted cash | $ 8.8 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | $ 614,301 | $ 610,122 | $ 1,168,689 | $ 1,178,366 |
Contingent staffing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 556,299 | 1,057,026 | ||
Human resource outsourcing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 58,002 | 111,663 | ||
PeopleReady | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 377,460 | 370,712 | 694,295 | 703,336 |
PeopleReady | Contingent staffing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 377,460 | 694,295 | ||
PeopleReady | Human resource outsourcing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 0 | 0 | ||
PeopleManagement | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 178,839 | 192,887 | 362,731 | 384,573 |
PeopleManagement | Contingent staffing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 178,839 | 362,731 | ||
PeopleManagement | Human resource outsourcing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 0 | 0 | ||
PeopleScout | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 58,002 | $ 46,523 | 111,663 | $ 90,457 |
PeopleScout | Contingent staffing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | 0 | 0 | ||
PeopleScout | Human resource outsourcing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from services | $ 58,002 | $ 111,663 |
ACQUISITION AND DIVESTITURE TMP
ACQUISITION AND DIVESTITURE TMP (Details) - USD ($) $ in Thousands | Jun. 12, 2018 | Jul. 01, 2018 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Cash purchase price, net of cash acquired | $ 22,742 | $ 0 | |||||
Acquisition-related costs | $ 457 | $ 0 | 457 | 0 | |||
Goodwill | $ 239,380 | 239,380 | 239,380 | $ 226,694 | |||
Revenue from services | $ 614,301 | $ 610,122 | 1,168,689 | $ 1,178,366 | |||
TMP | |||||||
Business Acquisition [Line Items] | |||||||
Cash purchase price, net of cash acquired | $ 22,742 | ||||||
Cash acquired from acquisition | 7,000 | ||||||
Acquisition-related costs | $ 500 | ||||||
Accounts receivable | 9,770 | ||||||
Prepaid expenses, deposits and other current assets | 337 | ||||||
Property and equipment | 435 | ||||||
Intangible Assets | 8,024 | ||||||
Total assets acquired | 18,566 | ||||||
Accounts payable and other accrued expenses | 9,139 | ||||||
Accrued wages and benefits | 1,642 | ||||||
Income tax payable | 205 | ||||||
Deferred income tax liability | 1,444 | ||||||
Total liabilities assumed | 12,430 | ||||||
Net identifiable assets acquired | 6,136 | ||||||
Goodwill | 16,606 | ||||||
Revenue from services | $ 2,900 | ||||||
Trade name/trademarks | TMP | |||||||
Business Acquisition [Line Items] | |||||||
Intangible Assets | $ 1,738 | ||||||
Estimated useful life in years | 14 years | ||||||
Customer relationships | TMP | |||||||
Business Acquisition [Line Items] | |||||||
Intangible Assets | $ 6,286 | ||||||
Minimum | Customer relationships | TMP | |||||||
Business Acquisition [Line Items] | |||||||
Estimated useful life in years | 3 years | ||||||
Maximum | Customer relationships | TMP | |||||||
Business Acquisition [Line Items] | |||||||
Estimated useful life in years | 7 years |
ACQUISITION AND DIVESTITURE Div
ACQUISITION AND DIVESTITURE Divestiture (Details) - USD ($) $ in Thousands | Mar. 12, 2018 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Divestiture of business | $ 8,800 | $ 0 | |||
Divestiture non-cash consideration | 1,657 | 0 | |||
Revenue from services | $ 614,301 | $ 610,122 | 1,168,689 | $ 1,178,366 | |
PlaneTechs | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Divestiture, amount of consideration received | $ 11,400 | ||||
Divestiture of business | 8,500 | ||||
Divestiture non-cash consideration | $ 1,600 | ||||
Debt Instrument, Periodic Payment | 100 | ||||
Gain on disposition of assets | $ 1,100 | ||||
Revenue from services | $ 8,000 |
ACQUISITION AND DIVESTITURE Int
ACQUISITION AND DIVESTITURE Intangible Assets (Details) - TMP $ in Thousands | Jun. 12, 2018USD ($) |
Business Acquisition [Line Items] | |
Estimated fair value | $ 8,024 |
Customer relationships | |
Business Acquisition [Line Items] | |
Estimated fair value | 6,286 |
Trade name/trademarks | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 1,738 |
Estimated useful life in years | 14 years |
Minimum | Customer relationships | |
Business Acquisition [Line Items] | |
Estimated useful life in years | 3 years |
Maximum | Customer relationships | |
Business Acquisition [Line Items] | |
Estimated useful life in years | 7 years |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | Jul. 02, 2017 | Jan. 01, 2017 |
Fair Value Measurement [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 81,990 | $ 73,831 | $ 88,691 | $ 103,222 |
Deferred compensation mutual funds | 24,384 | 22,428 | ||
Restricted investments classified as held-to-maturity | 164,632 | 172,238 | ||
Municipal debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 78,190 | 83,366 | ||
Corporate debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 82,238 | 83,791 | ||
Agency mortgage-backed securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 3,229 | 4,062 | ||
U.S. government and agency securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 975 | 1,019 | ||
Total Fair Value | ||||
Fair Value Measurement [Line Items] | ||||
Cash and cash equivalents | 33,408 | 28,780 | ||
Total Fair Value | Restricted Assets | ||||
Fair Value Measurement [Line Items] | ||||
Restricted cash and cash equivalents | 48,582 | 45,051 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 81,990 | 73,831 | ||
Deferred compensation mutual funds | 24,384 | 22,428 | ||
Restricted investments classified as held-to-maturity | 164,632 | 172,238 | ||
Total Fair Value | Restricted Assets | Municipal debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 78,190 | 83,366 | ||
Total Fair Value | Restricted Assets | Corporate debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 82,238 | 83,791 | ||
Total Fair Value | Restricted Assets | Agency mortgage-backed securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 3,229 | 4,062 | ||
Total Fair Value | Restricted Assets | U.S. government and agency securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 975 | 1,019 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Measurement [Line Items] | ||||
Cash and cash equivalents | 33,408 | 28,780 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted Assets | ||||
Fair Value Measurement [Line Items] | ||||
Restricted cash and cash equivalents | 48,582 | 45,051 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 81,990 | 73,831 | ||
Deferred compensation mutual funds | 24,384 | 22,428 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted Assets | Municipal debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted Assets | Corporate debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted Assets | Agency mortgage-backed securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted Assets | U.S. government and agency securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Fair Value Measurement [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | Restricted Assets | ||||
Fair Value Measurement [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | ||
Deferred compensation mutual funds | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 164,632 | 172,238 | ||
Significant Other Observable Inputs (Level 2) | Restricted Assets | Municipal debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 78,190 | 83,366 | ||
Significant Other Observable Inputs (Level 2) | Restricted Assets | Corporate debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 82,238 | 83,791 | ||
Significant Other Observable Inputs (Level 2) | Restricted Assets | Agency mortgage-backed securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 3,229 | 4,062 | ||
Significant Other Observable Inputs (Level 2) | Restricted Assets | U.S. government and agency securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 975 | 1,019 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value Measurement [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Restricted Assets | ||||
Fair Value Measurement [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | ||
Deferred compensation mutual funds | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Restricted Assets | Municipal debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Restricted Assets | Corporate debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Restricted Assets | Agency mortgage-backed securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Restricted Assets | U.S. government and agency securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | $ 0 | $ 0 |
RESTRICTED CASH AND INVESTMEN39
RESTRICTED CASH AND INVESTMENTS (Details) $ in Thousands | Jul. 01, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Restricted Cash and Investments [Line Items] | ||
Cash collateral held by insurance carriers | $ 22,726 | $ 22,926 |
Cash and cash equivalents held in Trust | 25,447 | 16,113 |
Investments held in Trust | 166,424 | 171,752 |
Deferred compensation mutual funds | 24,384 | 22,428 |
Other restricted cash and cash equivalents | 409 | 6,012 |
Restricted cash and investments | 239,390 | 239,231 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 315 | 1,324 |
Gross Unrealized Loss | (2,107) | (838) |
Fair Value | 164,632 | 172,238 |
Estimated fair value | ||
Less than 12 months | 109,004 | 73,392 |
12 months or more | 19,285 | 20,600 |
Total | 128,289 | 93,992 |
Unrealized losses | ||
Less than 12 months | (1,431) | (445) |
12 months or more | (676) | (393) |
Total | $ (2,107) | $ (838) |
Securities in unrealized loss positions, number of positions | security | 114 | 83 |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | $ 164,632 | $ 172,238 |
Municipal debt securities | ||
Restricted Cash and Investments [Line Items] | ||
Investments held in Trust | 78,675 | 82,770 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 304 | 974 |
Gross Unrealized Loss | (789) | (378) |
Fair Value | 78,190 | 83,366 |
Estimated fair value | ||
Less than 12 months | 37,263 | 23,078 |
12 months or more | 9,329 | 9,631 |
Total | 46,592 | 32,709 |
Unrealized losses | ||
Less than 12 months | (350) | (124) |
12 months or more | (439) | (254) |
Total | (789) | (378) |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 78,190 | 83,366 |
Corporate debt securities | ||
Restricted Cash and Investments [Line Items] | ||
Investments held in Trust | 83,481 | 83,916 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 5 | 309 |
Gross Unrealized Loss | (1,248) | (434) |
Fair Value | 82,238 | 83,791 |
Estimated fair value | ||
Less than 12 months | 69,369 | 48,952 |
12 months or more | 8,980 | 10,081 |
Total | 78,349 | 59,033 |
Unrealized losses | ||
Less than 12 months | (1,042) | (311) |
12 months or more | (206) | (123) |
Total | (1,248) | (434) |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 82,238 | 83,791 |
Agency mortgage-backed securities | ||
Restricted Cash and Investments [Line Items] | ||
Investments held in Trust | 3,269 | 4,066 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 6 | 22 |
Gross Unrealized Loss | (46) | (26) |
Fair Value | 3,229 | 4,062 |
Estimated fair value | ||
Less than 12 months | 1,397 | 1,362 |
12 months or more | 976 | 888 |
Total | 2,373 | 2,250 |
Unrealized losses | ||
Less than 12 months | (15) | (10) |
12 months or more | (31) | (16) |
Total | (46) | (26) |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 3,229 | 4,062 |
U.S. government and agency securities | ||
Restricted Cash and Investments [Line Items] | ||
Investments held in Trust | 999 | 1,000 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 0 | 19 |
Gross Unrealized Loss | (24) | 0 |
Fair Value | 975 | 1,019 |
Estimated fair value | ||
Less than 12 months | 975 | |
12 months or more | 0 | |
Total | 975 | |
Unrealized losses | ||
Less than 12 months | (24) | |
12 months or more | 0 | |
Total | (24) | |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 975 | $ 1,019 |
Restricted Cash and Investments [Member] | ||
Restricted Cash and Investments [Line Items] | ||
Investments held in Trust | 166,424 | |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Fair Value | 164,632 | |
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract] | ||
Due in one year or less | 24,233 | |
Due after one year through five years | 91,941 | |
Due after five years through ten years | 50,250 | |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Due in one year or less | 24,101 | |
Due after one year through five years | 91,148 | |
Due after five years through ten years | 49,383 | |
Fair Value | $ 164,632 |
- Changes in Carrying Amount of
- Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Goodwill before impairment | $ 334,459 | $ 338,773 |
Accumulated impairment loss | (95,079) | (112,079) |
Goodwill, net | 239,380 | 226,694 |
Divested goodwill before impairment | (19,054) | |
Divested accumulated impairment loss | 17,000 | |
Goodwill, Acquired During Period and Other | 16,606 | |
Foreign currency translation | (1,866) | |
PeopleReady | ||
Goodwill [Line Items] | ||
Goodwill before impairment | 106,304 | 106,304 |
Accumulated impairment loss | (46,210) | (46,210) |
Goodwill, net | 60,094 | 60,094 |
PeopleManagement | ||
Goodwill [Line Items] | ||
Goodwill before impairment | 81,092 | 100,146 |
Accumulated impairment loss | (33,700) | (50,700) |
Goodwill, net | 47,392 | 49,446 |
Divested goodwill before impairment | (19,054) | |
Divested accumulated impairment loss | 17,000 | |
PeopleScout | ||
Goodwill [Line Items] | ||
Goodwill before impairment | 147,063 | 132,323 |
Accumulated impairment loss | (15,169) | (15,169) |
Goodwill, net | 131,894 | $ 117,154 |
Goodwill, Acquired During Period and Other | 16,606 | |
Foreign currency translation | $ (1,866) |
GOODWILL AND INTANGIBLE ASSET41
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Jun. 12, 2018 | Dec. 31, 2017 | |
Amortizable intangible assets: | ||||||
Gross Carrying Amount | $ 172,696 | $ 172,696 | $ 171,163 | |||
Accumulated Amortization | (76,621) | (76,621) | (72,502) | |||
Net Carrying Amount | 96,075 | 96,075 | 98,661 | |||
Amortization of Intangible Assets | 5,200 | $ 5,300 | 10,400 | $ 10,700 | ||
Customer relationships | ||||||
Amortizable intangible assets: | ||||||
Gross Carrying Amount | 154,060 | 154,060 | 148,114 | |||
Accumulated Amortization | (62,048) | (62,048) | (53,801) | |||
Net Carrying Amount | 92,012 | 92,012 | 94,313 | |||
Trade names/trademarks | ||||||
Amortizable intangible assets: | ||||||
Gross Carrying Amount | 2,865 | 2,865 | 4,149 | |||
Accumulated Amortization | (889) | (889) | (3,736) | |||
Net Carrying Amount | 1,976 | 1,976 | 413 | |||
Non-compete agreements | ||||||
Amortizable intangible assets: | ||||||
Gross Carrying Amount | 0 | 0 | 1,400 | |||
Accumulated Amortization | 0 | 0 | (1,377) | |||
Net Carrying Amount | 0 | 0 | 23 | |||
Technologies | ||||||
Amortizable intangible assets: | ||||||
Gross Carrying Amount | 15,771 | 15,771 | 17,500 | |||
Accumulated Amortization | (13,684) | (13,684) | (13,588) | |||
Net Carrying Amount | $ 2,087 | $ 2,087 | $ 3,912 | |||
TMP | ||||||
Amortizable intangible assets: | ||||||
Estimated fair value | $ 8,024 | |||||
TMP | Customer relationships | ||||||
Amortizable intangible assets: | ||||||
Estimated fair value | 6,286 | |||||
TMP | Trade names/trademarks | ||||||
Amortizable intangible assets: | ||||||
Estimated fair value | $ 1,738 |
GOODWILL AND INTANGIBLE ASSET42
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Dec. 31, 2017 |
Trade name/trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 6 | $ 6 |
WORKERS' COMPENSATION INSURAN43
WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Workers' Compensation Insurance and Reserves [Abstract] | ||
Undiscounted workers’ compensation reserve | $ 284,399 | $ 293,600 |
Less discount on workers’ compensation reserve | 19,311 | 19,277 |
Workers' compensation reserve, net of discount | 265,088 | 274,323 |
Less current portion | 69,848 | 77,218 |
Long-term portion | $ 195,240 | $ 197,105 |
WORKERS' COMPENSATION INSURAN44
WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 | |
Workers' Compensation Deductible Limit [Line Items] | |||||
Workers' compensation claim deductible limit | $ 2 | ||||
Weighted average period - claim payments below deductible limit | 5 years | ||||
Payments made against self-insured claims | $ 36.1 | $ 31.5 | |||
Weighted average period - claim payments and receivables above deductible limit | 15 years | ||||
Excess claims | $ 48.6 | $ 48.6 | $ 48.8 | ||
Workers' compensation claim receivables net of valuation allowance | 45 | 45 | 45 | ||
Workers Compensation Expense | $ 17.8 | $ 22.3 | $ 34.4 | $ 42.1 | |
Below limit | |||||
Workers' Compensation Deductible Limit [Line Items] | |||||
Weighted average rate | 1.90% | 1.80% | |||
Above Limit [Member] [Domain] | |||||
Workers' Compensation Deductible Limit [Line Items] | |||||
Weighted average rate | 2.60% | 2.50% |
LONG-TERM DEBT Summary of long-
LONG-TERM DEBT Summary of long-term debt (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 117,199 | $ 118,756 |
Long-term debt, less current portion | 117,199 | 116,489 |
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | ||
Debt Instrument [Line Items] | ||
Total | 117,199 | 95,900 |
Synovus Bank | ||
Debt Instrument [Line Items] | ||
Total | 0 | 22,856 |
Current portion of long-term debt | $ 0 | $ 2,267 |
LONG-TERM DEBT Revolving Credit
LONG-TERM DEBT Revolving Credit Facility Narrative (Details) - USD ($) | Jul. 13, 2018 | Jun. 30, 2014 | Jul. 01, 2018 | Dec. 31, 2017 |
Revolving Credit Facility [Line Items] | ||||
Total | $ 117,199,000 | $ 118,756,000 | ||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | ||||
Revolving Credit Facility [Line Items] | ||||
Total | $ 117,199,000 | $ 95,900,000 | ||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving Credit Facility, maximum borrowing capacity | $ 300,000,000 | |||
Percent of Eligible Billed Accounts Receivable | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility borrowing limits, percent of accounts receivable | 90.00% | |||
Percent of Eligible Unbilled Accounts Receivable | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility borrowing limits, percent of accounts receivable | 85.00% | |||
Percent of Eligible Accounts Receivable | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility borrowing limits, percent of accounts receivable | 15.00% | |||
Subsequent Event [Member] | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, interest rate description | one-month | |||
Subsequent Event [Member] | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving Credit Facility, maximum borrowing capacity | $ 300,000,000 | |||
Revolving Credit Facility, maximum borrowing capacity, subject to lender approval | $ 450,000,000 | |||
Subsequent Event [Member] | London Interbank Offered Rate (LIBOR) | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, additional base rate | 1.00% | |||
Subsequent Event [Member] | London Interbank Offered Rate (LIBOR) | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Letter of Credit [Member] | ||||
Revolving Credit Facility [Line Items] | ||||
Letters of credit, additional basis rate | 0.50% | |||
Subsequent Event [Member] | Base rate [Member] | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, additional base rate | 0.50% | |||
Subsequent Event [Member] | Minimum | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, unused capacity, commitment fee percentage | 0.25% | |||
Subsequent Event [Member] | Minimum | London Interbank Offered Rate (LIBOR) | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 1.25% | |||
Subsequent Event [Member] | Minimum | London Interbank Offered Rate (LIBOR) | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Letter of Credit [Member] | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 1.00% | |||
Subsequent Event [Member] | Minimum | Base rate [Member] | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 0.25% | |||
Subsequent Event [Member] | Maximum | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, unused capacity, commitment fee percentage | 0.375% | |||
Subsequent Event [Member] | Maximum | London Interbank Offered Rate (LIBOR) | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 2.50% | |||
Subsequent Event [Member] | Maximum | London Interbank Offered Rate (LIBOR) | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Letter of Credit [Member] | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 2.25% | |||
Subsequent Event [Member] | Maximum | Base rate [Member] | Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 1.50% |
LONG-TERM DEBT Term Loan Agreem
LONG-TERM DEBT Term Loan Agreement (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | $ 22,856 | $ 1,133 | |
Total | 117,199 | $ 118,756 | |
Synovus Bank | |||
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | 22,000 | ||
Total | 0 | 22,856 | |
Current portion of long-term debt | 0 | 2,267 | |
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | |||
Debt Instrument [Line Items] | |||
Total | $ 117,199 | $ 95,900 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Workers' Compensation Commitments (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018 | Dec. 31, 2017 | |
Workers' Compensation Commitments [Line Items] | ||
Cash collateral held by workers’ compensation insurance carriers | $ 21,946 | $ 22,148 |
Cash and cash equivalents held in Trust | 25,447 | 16,113 |
Investments held in Trust | 166,424 | 171,752 |
Letters of credit | 7,618 | 7,748 |
Surety bonds | 22,014 | 19,829 |
Total collateral commitments | $ 243,449 | $ 237,590 |
Surety bonds annual fee limit, % of bond amount | 2.00% | |
Surety bonds required cancellation notice | 60 days | |
Minimum | ||
Workers' Compensation Commitments [Line Items] | ||
Surety bonds review and renewal period if elected | 1 year | |
Maximum | ||
Workers' Compensation Commitments [Line Items] | ||
Surety bonds review and renewal period if elected | 4 years |
INCOME TAXES - Narrative (Deta
INCOME TAXES - Narrative (Details) | 6 Months Ended |
Jul. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Effective income tax rate reconciliation, percent | 11.50% |
Income tax expense (benefit) based on statutory rate | 21.00% |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 17,732 | $ 13,134 | $ 26,487 | $ 17,808 |
Weighted average number of common shares used in basic net income per common share | 40,227 | 41,579 | 40,335 | 41,608 |
Dilutive effect of non-vested restricted stock | 242 | 277 | 241 | 267 |
Weighted average number of common shares used in diluted net income per common share | 40,469 | 41,856 | 40,576 | 41,875 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.44 | $ 0.32 | $ 0.66 | $ 0.43 |
Diluted (in dollars per share) | $ 0.44 | $ 0.31 | $ 0.65 | $ 0.43 |
Anti-dilutive shares | 254 | 60 | 218 | 183 |
ACCUMULATED OTHER COMPREHENSI51
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ (9,713) | $ (8,896) | $ (6,804) | $ (11,433) |
Cumulative Effect on Retained Earnings, Net of Tax | (1,525) | 0 | ||
Total other comprehensive income (loss), net of tax | (1,921) | 449 | (3,305) | 2,986 |
Balance at end of period | (11,634) | (8,447) | (11,634) | (8,447) |
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (9,713) | (9,884) | (8,329) | (11,684) |
Foreign currency translation adjustment, net of tax | (1,921) | 540 | (3,305) | 2,340 |
Cumulative Effect on Retained Earnings, Net of Tax | 0 | 0 | ||
Balance at end of period | (11,634) | (9,344) | (11,634) | (9,344) |
Unrealized gain (loss) on marketable securities | ||||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 0 | 988 | 1,525 | 251 |
Unrealized gain (loss) on investments, net of tax | 0 | (91) | 0 | 646 |
Cumulative Effect on Retained Earnings, Net of Tax | (1,525) | 0 | ||
Balance at end of period | $ 0 | $ 897 | $ 0 | $ 897 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 614,301 | $ 610,122 | $ 1,168,689 | $ 1,178,366 |
Segment profit | 39,230 | 35,585 | 66,309 | 59,777 |
Work Opportunity Tax Credit processing fees | (264) | (16) | (459) | (288) |
Acquisition/integration costs | (457) | 0 | (457) | 0 |
Other costs | (1,264) | 0 | (2,979) | 0 |
Depreciation and amortization | (10,101) | (12,287) | (20,191) | (23,461) |
Income from operations | 21,276 | 18,239 | 28,691 | 24,650 |
Interest and other income (expense), net | (968) | 155 | 1,236 | 229 |
Income before tax expense | 20,308 | 18,394 | 29,927 | 24,879 |
PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 377,460 | 370,712 | 694,295 | 703,336 |
Segment profit | 23,198 | 19,170 | 32,723 | 29,164 |
PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 178,839 | 192,887 | 362,731 | 384,573 |
Segment profit | 4,712 | 6,286 | 10,361 | 11,819 |
PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 58,002 | 46,523 | 111,663 | 90,457 |
Segment profit | 11,320 | 10,129 | 23,225 | 18,794 |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Corporate unallocated | (5,868) | $ (5,043) | (13,532) | $ (11,378) |
Contingent staffing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 556,299 | 1,057,026 | ||
Contingent staffing | PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 377,460 | 694,295 | ||
Contingent staffing | PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 178,839 | 362,731 | ||
Contingent staffing | PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Human resource outsourcing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 58,002 | 111,663 | ||
Human resource outsourcing | PeopleReady | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Human resource outsourcing | PeopleManagement | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | ||
Human resource outsourcing | PeopleScout | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 58,002 | $ 111,663 |