Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 30, 2018 | Jan. 31, 2019 | Jul. 01, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TBI | ||
Entity Registrant Name | TrueBlue, Inc. | ||
Entity Central Index Key | 768,899 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 40,074,000 | ||
Entity Public Float | $ 1.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 46,988 | $ 28,780 |
Accounts receivable, net of allowance for doubtful accounts of $5,026 and $4,344 | 355,373 | 374,273 |
Prepaid expenses, deposits and other current assets | 22,141 | 20,605 |
Income tax receivable | 5,325 | 4,621 |
Total current assets | 429,827 | 428,279 |
Property and equipment, net | 57,671 | 60,163 |
Restricted cash and investments | 235,443 | 239,231 |
Deferred income taxes, net | 4,388 | 3,783 |
Goodwill | 237,287 | 226,694 |
Intangible assets, net | 91,408 | 104,615 |
Workers' compensation claim receivables net of valuation allowance | 44,915 | 45,048 |
Other assets, net | 13,905 | 1,218 |
Total assets | 1,114,844 | 1,109,031 |
Current liabilities: | ||
Accounts payable and other accrued expenses | 69,814 | 55,091 |
Accrued wages and benefits | 77,089 | 76,894 |
Current portion of workers’ compensation claims reserve | 76,421 | 77,218 |
Other current liabilities | 2,202 | 3,216 |
Total current liabilities | 225,526 | 212,419 |
Workers’ compensation claims reserve, less current portion | 190,025 | 197,105 |
Long-term debt, less current portion | 80,000 | 116,489 |
Long-term deferred compensation liabilities | 21,747 | 21,866 |
Other long-term liabilities | 6,107 | 6,305 |
Total liabilities | 523,405 | 554,184 |
Commitments and contingencies | ||
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; 40,054 and 41,098 shares issued and outstanding | 1 | 1 |
Accumulated other comprehensive loss | (14,649) | (6,804) |
Retained earnings | 606,087 | 561,650 |
Total shareholders’ equity | 591,439 | 554,847 |
Total liabilities and shareholders’ equity | $ 1,114,844 | $ 1,109,031 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 5,026 | $ 4,344 |
Preferred stock, par value (in dollars per share) | $ 0.131 | $ 0.131 |
Preferred stock, shares authorized | 20,000 | 20,000 |
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 | 100,000 |
Common stock, shares issued | 40,054 | 41,098 |
Common stock, shares outstanding | 40,054 | 41,098 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Revenue from services | $ 2,499,207 | $ 2,508,771 | $ 2,750,640 |
Cost of services | 1,833,607 | 1,874,298 | 2,070,922 |
Gross profit | 665,600 | 634,473 | 679,718 |
Selling, general and administrative expense | 550,632 | 510,794 | 546,477 |
Depreciation and amortization | 41,049 | 46,115 | 46,692 |
Goodwill and intangible asset impairment charge | 0 | 0 | 103,544 |
Income (loss) from operations | 73,919 | 77,564 | (16,995) |
Interest expense | (4,881) | (5,494) | (7,166) |
Interest and other income | 6,625 | 5,480 | 3,821 |
Interest and other income (expense), net | 1,744 | (14) | (3,345) |
Income (loss) before tax expense (benefit) | 75,663 | 77,550 | (20,340) |
Income tax expense (benefit) | 9,909 | 22,094 | (5,089) |
Net income (loss) | $ 65,754 | $ 55,456 | $ (15,251) |
Net income (loss) per common share: | |||
Basic (in dollars per share) | $ 1.64 | $ 1.35 | $ (0.37) |
Diluted (in dollars per share) | $ 1.63 | $ 1.34 | $ (0.37) |
Weighted average shares outstanding: | |||
Basic (in shares) | 39,985 | 41,202 | 41,648 |
Diluted (in shares) | 40,275 | 41,441 | 41,648 |
Other comprehensive income (loss): | |||
Total other comprehensive income (loss), net of tax | $ (6,320) | $ 4,629 | $ 2,580 |
Comprehensive income (loss) | 59,434 | 60,085 | (12,671) |
Foreign currency translation adjustment | |||
Other comprehensive income (loss): | |||
Foreign currency translation adjustment, net of tax | (6,320) | 3,355 | 1,830 |
Unrealized gain on investments, net of tax | |||
Other comprehensive income (loss): | |||
Unrealized gain on investments, net of tax | $ 0 | $ 1,274 | $ 750 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHARHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Retained earnings | Accumulated other comprehensive income |
Beginning balance (in shares) at Dec. 25, 2015 | 42,024 | |||
Beginning balance at Dec. 25, 2015 | $ 535,573 | $ 1 | $ 549,585 | $ (14,013) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (15,251) | |||
Other comprehensive income (loss), net of tax | 2,580 | 2,580 | ||
Purchases and retirement of common stock (in shares) | (332) | |||
Purchases and retirement of common stock | (5,748) | (5,748) | ||
Issuances under equity plans, including tax benefits (in shares) | 445 | |||
Issuances under equity plans, including tax benefits | (1,338) | (1,338) | ||
Stock-based compensation (in shares) | 34 | |||
Stock-based compensation | 9,363 | 9,363 | ||
Ending balance (in shares) at Jan. 01, 2017 | 42,171 | |||
Ending balance at Jan. 01, 2017 | 525,179 | $ 1 | 536,611 | (11,433) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 55,456 | |||
Other comprehensive income (loss), net of tax | 4,629 | 4,629 | ||
Purchases and retirement of common stock (in shares) | (1,530) | |||
Purchases and retirement of common stock | (36,680) | (36,680) | ||
Issuances under equity plans, including tax benefits (in shares) | 418 | |||
Issuances under equity plans, including tax benefits | (1,481) | (1,481) | ||
Stock-based compensation (in shares) | 39 | |||
Stock-based compensation | 7,744 | 7,744 | ||
Change in accounting standard cumulative-effect adjustment | $ 0 | |||
Ending balance (in shares) at Dec. 31, 2017 | 41,098 | 41,098 | ||
Ending balance at Dec. 31, 2017 | $ 554,847 | $ 1 | 561,650 | (6,804) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 65,754 | |||
Other comprehensive income (loss), net of tax | (6,320) | (6,320) | ||
Purchases and retirement of common stock (in shares) | (1,371) | |||
Purchases and retirement of common stock | (34,818) | (34,818) | ||
Issuances under equity plans, including tax benefits (in shares) | 299 | |||
Issuances under equity plans, including tax benefits | (1,900) | (1,900) | ||
Stock-based compensation (in shares) | 28 | |||
Stock-based compensation | 13,876 | 13,876 | ||
Change in accounting standard cumulative-effect adjustment | $ (1,525) | 1,525 | (1,525) | |
Ending balance (in shares) at Dec. 30, 2018 | 40,054 | 40,054 | ||
Ending balance at Dec. 30, 2018 | $ 591,439 | $ 1 | $ 606,087 | $ (14,649) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 65,754 | $ 55,456 | $ (15,251) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 41,049 | 46,115 | 46,692 |
Goodwill and intangible asset impairment charge | 0 | 0 | 103,544 |
Provision for doubtful accounts | 10,042 | 6,808 | 8,308 |
Stock-based compensation | 13,876 | 7,744 | 9,363 |
Deferred income taxes | (1,929) | 2,440 | (25,355) |
Other operating activities | 5,154 | 2,349 | 6,859 |
Changes in operating assets and liabilities, net of amounts acquired and divested: | |||
Accounts receivable | 11,640 | (28,483) | 112,785 |
Income tax receivable | (996) | 14,875 | 9,450 |
Other assets | (12,928) | 5,289 | 470 |
Accounts payable and other accrued expenses | 2,855 | (10,569) | (4,101) |
Accrued wages and benefits | (1,447) | (2,888) | (7,313) |
Workers’ compensation claims reserve | (7,877) | (1,048) | 11,070 |
Other liabilities | 499 | 2,046 | 4,182 |
Net cash provided by operating activities | 125,692 | 100,134 | 260,703 |
Cash flows from investing activities: | |||
Capital expenditures | (17,054) | (21,958) | (29,042) |
Acquisition of businesses, net of cash acquired | (22,742) | 0 | (72,476) |
Divestiture of business | 10,587 | 0 | 0 |
Purchases of restricted investments | (12,941) | (50,601) | (42,648) |
Maturities of restricted investments | 21,635 | 20,157 | 17,244 |
Other | 0 | (1,979) | 2,979 |
Net cash used in investing activities | (20,515) | (54,381) | (123,943) |
Cash flows from financing activities: | |||
Purchases and retirement of common stock | (34,818) | (36,680) | (5,748) |
Net proceeds from employee stock purchase plans and stock options exercised | 1,503 | 1,646 | 1,542 |
Common stock repurchases for taxes upon vesting of restricted stock | (3,404) | (3,127) | (2,851) |
Net change in revolving credit facility | (15,900) | (16,607) | (105,579) |
Payments on debt | (22,397) | (2,267) | (2,456) |
Payment of contingent consideration at acquisition date fair value | 0 | (18,300) | 0 |
Other | 0 | 0 | (29) |
Net cash used in financing activities | (75,016) | (75,335) | (115,121) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,542) | 191 | 1,772 |
Net change in cash, cash equivalents and restricted cash | 28,619 | (29,391) | 23,411 |
Cash, cash equivalents and restricted cash, beginning of period | 73,831 | 103,222 | 79,811 |
Cash, cash equivalents and restricted cash, end of period | 102,450 | 73,831 | 103,222 |
Interest | 4,373 | 3,811 | 4,083 |
Income taxes | 12,898 | 4,593 | 10,312 |
Property, plant, and equipment purchased but not yet paid | 1,553 | 375 | 1,471 |
Divestiture non-cash consideration | 798 | 0 | 0 |
Non-cash acquisition adjustments | $ 0 | $ 0 | $ 3,783 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of business TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us” and “our”) is a leading provider of specialized workforce solutions that help clients achieve growth and improve productivity. We serve clients in a wide variety of industries through our PeopleReady segment which offers industrial staffing services, our PeopleManagement segment which offers contingent and productivity-based on-site industrial staffing services, and our PeopleScout segment which offers recruitment process outsourcing and managed service provider services. We are headquartered in Tacoma, Washington. Basis of presentation The consolidated financial statements include the accounts of TrueBlue and all of its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fiscal period end The consolidated financial statements are presented on a 52/53-week fiscal year-end basis, with the last day of the fiscal year ending on the Sunday closest to the last day of December. In fiscal years consisting of 53 weeks, the final quarter will consist of 14 weeks while fiscal years consisting of 52 weeks, all quarters will consist of 13 weeks. The fiscal year ended 2016 included 53 weeks, with the 53rd week falling in our fourth quarter. All other years presented include 52 weeks. 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 notice 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, 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 on the Consolidated Statements of Operations and Comprehensive Income (Loss). 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 demonstrate control over the services provided to our clients by being the employer of record for the individuals performing the service. • We establish our worker’s billing rate. Contingent staffing We recognize revenue for our PeopleReady and PeopleManagement 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 PeopleScout 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. Cost of services Cost of services refers to costs directly associated with the earning of revenue and primarily includes wages and related payroll taxes and workers’ compensation expenses. Cost of services also includes billable travel as well as other reimbursable and non-reimbursable expenses. Advertising costs Advertising costs consist primarily of print and other promotional activities. We expense advertisements as of the first date the advertisements take place. Advertising expenses included in selling, general and administrative expense were $8.1 million , $7.3 million and $7.8 million in fiscal 2018 , 2017 and 2016 , respectively. Cash, cash equivalents and marketable securities We consider all highly liquid instruments purchased with an original maturity of three months or less at date of purchase to be cash equivalents. Investments with original maturities greater than three months are classified as marketable securities. We do not buy and hold securities principally for the purpose of selling them in the near future. Our investment policy is focused on the preservation of capital, liquidity and return. From time to time, we may sell certain securities but the objective is not to generate profits on short-term differences in price. We manage our cash equivalents and marketable securities as a single portfolio of highly liquid securities. Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount. We establish an allowance for doubtful accounts for estimated losses resulting from the failure of our clients to make required payments. The allowance for doubtful accounts is determined based on current collection efforts, historical collection trends, write-off experience, client credit risk and current economic data. The allowance for doubtful accounts is reviewed quarterly and represents our best estimate of the amount of probable credit losses. Past due balances are written off when it is probable the receivable will not be collected. Restricted cash and investments Cash and investments pledged as collateral and restricted to use for workers’ compensation insurance programs are included as restricted cash and investments on our Consolidated Balance Sheets. Our investments consist of highly-rated investment grade debt securities, which are rated A1/P1 or higher for short-term securities and A or higher for long-term securities, by nationally recognized rating organizations. We have the positive intent and ability to hold our restricted investments until maturity in accordance with our investment policy and, accordingly, all of our restricted investments are classified as held-to-maturity. In the event that an investment is downgraded, it is replaced with a highly-rated investment grade security. We review for impairment on a quarterly basis and do not consider temporary unrealized losses to be an impairment. We have an agreement with American International Group, Inc. and the Bank of New York Mellon Corporation creating a trust (“Trust”), which holds the majority of our collateral obligations under existing workers’ compensation insurance policies. Placing the collateral in the Trust allows us to manage the investment of the assets and provides greater protection of those assets. Fair value of financial instruments and investments Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For assets and liabilities recorded or disclosed at fair value on a recurring basis, we determine fair value based on the following: • Level 1: The carrying value of cash and cash equivalents and mutual funds approximates fair value because of the short-term nature of these instruments. Inputs are valued using quoted market prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices in active markets for identical assets and liabilities are used. We use quoted prices for similar instruments in active markets or quoted prices or we estimate the fair value using a variety of valuation methodologies, which include observable inputs for comparable instruments and unobservable inputs. • Level 3: For assets and liabilities with unobservable inputs, we typically rely on management’s estimates of assumptions that market participants would use in pricing the asset or liability. The carrying value of our cash and cash equivalents and restricted cash approximates fair value because of the short-term maturity of those instruments. We hold mutual funds classified as available-for-sale to support our deferred compensation liability, which are carried at fair value based on quoted market prices in active markets for identical assets. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions. The carrying value of our accounts receivable, accounts payable and other accrued expenses, and accrued wages and benefits approximates fair value due to their short-term nature. We also hold certain restricted investments which collateralize workers’ compensation programs and are classified as held-to-maturity and carried at amortized cost on our Consolidated Balance Sheets. Certain items such as goodwill and other intangible assets are recognized or disclosed at fair value on a non-recurring basis. We determine the fair value of these items using level 3 inputs. Property and equipment Property and equipment are recorded at cost. We compute depreciation using the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 40 Computers and software 3 - 10 Furniture and equipment 3 - 10 Leasehold improvements are amortized over the shorter of the related non-cancelable lease term or their estimated useful lives. Non-capital expenditures associated with opening new locations are expensed as incurred. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss, net of proceeds, is reflected on the Consolidated Statements of Operations and Comprehensive Income (Loss). Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, from three to ten years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software’s functionality or extends its useful life. Software maintenance and training costs are expensed in the period incurred. Leases We conduct our branch office operations from leased locations. We also lease office spaces for our centralized support functions, vehicles and equipment. Many leases require payment of property taxes, insurance and common area maintenance, in addition to rent. The terms of our lease agreements generally range from three to five years, majority containing options to renew or cancel with 90 days notice. Operating lease expense is included within selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss). For operating leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the minimum lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain operating leases (“tenant allowances”) are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Intangible assets and other long-lived assets Long-lived assets include property and equipment, and finite-lived intangible assets. These assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. We have indefinite-lived intangible assets related to our Staff Management | SMX (“Staff Management”) and PeopleScout trade names. We test our trade names annually for impairment, and when indications of potential impairment exist. Goodwill We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our second quarter, or 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, operating performance indicators, competition, client engagement, legal factors or sale or disposition of a significant portion of a reporting unit. We monitor the existence of potential impairment indicators throughout the fiscal year. Business combinations We account for our business acquisitions using the acquisition method of accounting. The fair value of the net assets acquired and the results of the acquired business are included in the financial statements from the acquisition date forward. We are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property and equipment, intangible assets, useful lives of property and equipment, and amortizable lives for acquired intangible assets. Any excess of the purchase consideration over the identified fair value of the assets and liabilities acquired is recognized as goodwill. Goodwill acquired in business combinations is assigned to the reporting unit(s) expected to benefit from the combination as of the acquisition date. We estimate the fair value of acquired assets and liabilities as of the date of the acquisition based on information available at that time. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change between the preliminary allocation and the final allocation. All acquisition-related costs are expensed as incurred and recorded in selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). Additionally, we recognize liabilities for anticipated restructuring costs that will be necessary due to the elimination of excess capacity, redundant assets or unnecessary functions, and record them as selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). Workers’ compensation claims reserves We maintain reserves for workers’ compensation claims using actuarial estimates of the future cost of claims and related expenses. These estimates include claims that have been reported but not settled and claims that have been incurred but not reported. These reserves, which reflect potential liabilities to be paid in future periods based on estimated payment patterns, are discounted to estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments, which are evaluated on a quarterly basis. We evaluate the reserves regularly throughout the year and make adjustments accordingly. If the actual cost of such claims and related expenses exceeds the amounts estimated, additional reserves may be required. Changes in reserve estimates are reflected on the Consolidated Statements of Operations and Comprehensive Income (Loss) in the period when the changes in estimates are made. Our workers’ compensation reserves include estimated expenses related to claims above our self-insured limits (“excess claims”) and a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance companies. We discount the liability and its corresponding receivable to its estimated net present value using the “risk-free” rates associated with the actuarially determined weighted average lives of our excess claims. When appropriate, based on our best estimate, we record a valuation allowance against the insurance receivable to reflect amounts that may not be realized. Legal contingency reserves and regulatory liabilities From time to time we are subject to compliance audits by federal, state and local authorities relating to a variety of regulations including wage and hour laws, taxes, workers’ compensation, immigration and safety. In addition, we are subject to legal proceedings in the ordinary course of our operations. We establish accruals for contingent legal and regulatory liabilities when management determines that it is probable that a legal claim will result in an adverse outcome and the amount of liability can be reasonably estimated. We evaluate our reserve regularly throughout the year and make adjustments as needed. If the actual outcome of these matters is different than expected, an adjustment is charged or credited to expense in the period the outcome occurs or the period in which the estimate changes. Income taxes and related valuation allowance We account for income taxes by recording taxes payable or receivable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. These expected future tax consequences are measured based on provisions of tax law as currently enacted; the effects of future changes in tax laws are not anticipated. Future tax law changes, such as changes to the federal and state corporate tax rates and the mix of states and their taxable income, could have a material impact on our financial condition or results of operations. When appropriate, we record a valuation allowance against deferred tax assets to offset future tax benefits that may not be realized. In determining whether a valuation allowance is appropriate, we consider whether it is more likely than not that all or some portion of our deferred tax assets will not be realized, based in part upon management’s judgments regarding future events and past operating results. Based on that analysis, we have determined that a valuation allowance is appropriate for certain net operating losses and tax credits that we expect will not be utilized within the permitted carryforward periods as of December 30, 2018 and December 31, 2017 . A significant driver of fluctuations in our effective income tax rate is the Work Opportunity Tax Credit (“WOTC”). WOTC is designed to encourage hiring of workers from certain disadvantaged targeted categories, and is generally calculated as a percentage of wages over a twelve month period up to worker maximum by targeted category. Based on historical results and business trends, we estimate the amount of WOTC we expect to earn related to wages of the current year. However, the estimate is subject to variation because 1) a small percentage of our workers qualify for one or more of the many targeted categories; 2) the targeted categories are subject to different incentive credit rates and limitations; 3) credits fluctuate depending on economic conditions and qualified worker retention periods; and 4) state and federal offices can delay their credit certification processing and have inconsistent certification rates. We recognize additional prior year hiring credits if credits in excess of original estimates have been certified by government offices. Deferred compensation plan We offer a non-qualified defined contribution plan (the “Plan”) to eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation. The Plan allows participants to direct their account based on the investment options determined by TrueBlue and offers discretionary matching contributions. The current portion of the deferred compensation liability is included in other current liabilities on our Consolidated Balance Sheets. The total deferred compensation liability is largely offset by deferred compensation mutual funds classified as available-for-sale recorded in restricted cash and investments on our Consolidated Balance Sheets. These mutual funds are measured at fair value, with changes in market value recognized in selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss). Stock-based compensation Under various plans, officers, employees and non-employee directors have received or may receive grants of stock, restricted stock awards, performance share units or options to purchase common stock. We also have an employee stock purchase plan ("ESPP"). Compensation expense for restricted stock awards and performance share units is generally recognized on a straight-line basis over the vesting period, based on the stock’s fair market value on the grant date. For restricted stock and performance share unit grants issued with performance conditions, compensation expense is recognized over each vesting period based on assessment of the likelihood of meeting these conditions. We recognize compensation expense for only the portion of restricted stock and performance share units that is expected to vest, rather than record forfeitures when they occur. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in the future periods. Foreign currency Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date. Revenues and expenses for each subsidiary are translated to U.S. dollars using a weighted average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in other comprehensive income (“OCI”), when applicable. Currency gains and losses on intercompany loans with international subsidiaries are included, net of tax, in OCI. Purchases and retirement of our common stock We purchase our common stock under a program authorized by our Board of Directors. Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on the Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to retained earnings until such time as the reduction to retained earnings due to stock repurchases has been recovered. Net income (loss) per share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares include the dilutive effects of vested and non-vested restricted stock, performance share units and shares issued under the ESPP, except where their inclusion would be anti-dilutive. Anti-dilutive shares primarily include non-vested restricted stock and performance share units for which the sum of the assumed proceeds, including unrecognized compensation expense, exceeds the average stock price during the periods presented. Anti-dilutive shares associated with our stock options relate to those stock options with an exercise price higher than the average market value of our stock during the periods presented. Use of estimates Preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Estimates in our financial statements include, but are not limited to, purchase accounting, allowance for doubtful accounts, estimates for asset and goodwill impairments, stock-based performance awards, assumptions underlying self-insurance reserves, contingent legal and regulatory liabilities, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions. Recently adopted accounting standards Stock compensation 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. Business combinations 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. Restricted cash and cash equivalents 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 on our Consolidated Statements of Cash Flows, and the $21.5 million and $19.8 million previously presented in the investing section for the years ended December 31, 2017 and January 1, 2017, respectively, are now included when reconciling the beginning-of-period and end-of-period cash, cash equivalents and restricted cash shown on our Consolidated Statements of Cash Flows. Accounting for income taxes - intra-entity asset transfers 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. Statement of cash flows classification 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 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. Financial instruments – recognition, measurement, presentation, and disclosure 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 on our Consolidated Statements of Operation and Comprehensive Income (Loss). Revenue from contracts with customers In May 2014, the FASB issued guidance outlining a single comprehensive model for accounting for revenue arising from contracts with clients, which supersedes the previous revenue recognition accounting guidance. The guidance was effective for annual and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). This guidance required 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. 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 previous accounting guidance. The adoption of this new guidance did not have a material impact on our consolidated financial statements as of the adoption date, or for the year ended December 30, 2018 , except for expanded disclosures. Recently issued accounting pronouncements not yet adopted Intangibles-goodwill and other-internal-use software In August 2018, the FASB issued guidance on accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. This new standard is intended to reduce complexity for the accounting for costs of implementing a cloud computing service arrangement. The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a serv |
REVENUE RECOGNITION REVENUE REC
REVENUE RECOGNITION REVENUE RECOGNITION | 12 Months Ended |
Dec. 30, 2018 | |
Revenue Recognition [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The following table presents our revenue disaggregated by major source: Year ended December 30, 2018 (in thousands) PeopleReady PeopleManagement PeopleScout Consolidated Revenue from services: Contingent staffing $ 1,522,076 $ 728,254 $ — $ 2,250,330 Human resource outsourcing — — 248,877 248,877 Total company $ 1,522,076 $ 728,254 $ 248,877 $ 2,499,207 |
ACQUISITIONS AND DIVESTITURE
ACQUISITIONS AND DIVESTITURE | 12 Months Ended |
Dec. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS AND DIVESTITURE 2018 acquisition Effective June 12, 2018, we acquired all of the outstanding equity interests of TMP Holdings LTD (“TMP”), through PeopleScout, 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. 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 $2.7 million for the year ended December 30, 2018 , which are included in selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating activities on the Consolidated Statements of Cash Flows for the year ended December 30, 2018 . The following table reflects our final 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 clients 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 December 30, 2018 , and the results of its operations and cash flows are reported on our Consolidated Statements of Operations and Comprehensive Income (Loss) and Consolidated Statements of Cash Flows for the period from June 12, 2018 to December 30, 2018 . The amount of revenue from TMP included on our Consolidated Statements of Operations and Comprehensive Income (Loss) was $31.0 million from the acquisition date to December 30, 2018 . The acquisition of TMP was not material to our consolidated results of operations and as such, pro forma financial information was not required. 2018 divestiture Effective March 12, 2018, we divested substantially all the assets and certain liabilities of PlaneTechs, LLC (“PlaneTechs”) 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, with monthly principal payments of $0.1 million , which began in April 2018. The outstanding balance 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 included in prepaid expenses, deposits and other current assets on the Consolidated Balance Sheets. The company recognized a pre-tax gain on the divestiture of $0.7 million , which is included in interest and other income on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 30, 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 (Loss) for the periods presented. 2016 acquisition Effective January 4, 2016, we acquired certain assets and assumed certain liabilities of the RPO business of Aon Hewitt for a cash purchase price of $72.5 million , net of the final working capital adjustment. We amended our existing credit facility to temporarily increase the borrowing capacity by $30.0 million , which was used to fund the acquisition. The RPO business of Aon Hewitt broadened our PeopleScout RPO services and has been fully integrated into our PeopleScout reportable segment. We incurred acquisition and integration-related costs of $6.6 million in connection with the acquisition of the RPO business of Aon Hewitt, which are included in selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating activities on the Consolidated Statements of Cash Flows for the year ended January 1, 2017. The following table reflects our final allocation of the purchase price: (in thousands) Purchase price allocation Cash purchase price, net of working capital adjustment $ 72,476 Purchase price allocated as follows: Accounts receivable $ 12,272 Prepaid expenses, deposits and other current assets 894 Customer relationships 34,900 Technologies 400 Total assets acquired 48,466 Accrued wages and benefits 1,025 Other long-term liabilities 456 Total liabilities assumed 1,481 Net identifiable assets acquired 46,985 Goodwill (1) 25,491 Total consideration allocated $ 72,476 (1) Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new clients and future cash flows after the acquisition of the RPO business of Aon Hewitt. Goodwill is deductible for income tax purposes over 15 years as of January 4, 2016. Intangible assets include identifiable intangible assets for customer relationships and developed technologies. We estimated the fair value of the acquired identifiable intangible assets, which are subject to amortization, using the income approach for customer relationships and the cost approach for developed technologies. No residual value was estimated for any of the intangible assets. The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of January 4, 2016: (in thousands, except for estimated useful lives, in years) Estimated fair value Estimated useful lives in years Customer relationships $ 34,900 9 Technologies 400 3 Total acquired identifiable intangible assets $ 35,300 The amount of revenue from the RPO business of Aon Hewitt included on our Consolidated Statements of Operations and Comprehensive Income (Loss) was $66.5 million for the period from the acquisition date to January 1, 2017. The acquired operations have been fully integrated with our existing PeopleScout operations. The acquisition of the RPO business of Aon Hewitt was not material to our consolidated results of operations and as such, pro forma financial information was not required. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Assets and liabilities measured at fair value on a recurring basis Our assets and liabilities measured at fair value on a recurring basis consisted of the following: December 30, 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 $ 46,988 $ 46,988 $ — $ — Restricted cash and cash equivalents 55,462 55,462 — — Cash, cash equivalents and restricted cash (1) $ 102,450 $ 102,450 $ — $ — Deferred compensation mutual funds classified as available-for-sale $ 23,363 $ 23,363 $ — $ — Municipal debt securities $ 76,690 $ — $ 76,690 $ — Corporate debt securities 75,432 — 75,432 — Agency mortgage-backed securities 2,531 — 2,531 — U.S. government and agency securities 988 — 988 — Restricted investments classified as held-to-maturity $ 155,641 $ — $ 155,641 $ — 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 years ended December 30, 2018 and December 31, 2017 . Assets measured at fair value on a nonrecurring basis We measure certain non-financial assets on a non-recurring basis, including goodwill and certain intangible assets. As a result of those measurements, we recognized impairment charges of $103.5 million during the year ended January 1, 2017, as follows: January 1, 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) Total impairment loss Goodwill $ 42,629 $ — $ — $ 42,629 $ (65,869 ) Customer relationships 11,100 — — 11,100 (28,900 ) Trade names/trademarks 3,600 — — 3,600 (8,775 ) Total $ 57,329 $ — $ — $ 57,329 $ (103,544 ) Goodwill, finite-lived customer relationships, finite-lived trade names/trademarks intangible assets and indefinite-lived trade names/trademarks intangible assets with a total carrying value of $160.8 million were written down to their fair value of $57.3 million , resulting in an impairment charge of $103.5 million , which was recorded in earnings for the year ended January 1, 2017. There were no goodwill or intangible asset impairment charges recorded during fiscal 2018 or 2017. |
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS | 12 Months Ended |
Dec. 30, 2018 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH AND INVESTMENTS | RESTRICTED CASH AND INVESTMENTS The following is a summary of the carrying value of our restricted cash and investments: (in thousands) December 30, December 31, Cash collateral held by insurance carriers $ 24,182 $ 22,926 Restricted cash and cash equivalents 28,021 16,113 Restricted investments classified as held-to-maturity 156,618 171,752 Deferred compensation mutual funds, classified as available-for-sale 23,363 22,428 Other restricted cash and cash equivalents 3,259 6,012 Total restricted cash and investments $ 235,443 $ 239,231 Held-to-maturity Restricted cash and investments include 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 amortized cost and estimated fair value of our held-to-maturity investments held in trust, aggregated by investment category as of December 30, 2018 and December 31, 2017 , were as follows: December 30, 2018 (in thousands) Amortized cost Gross unrealized gain Gross unrealized loss Fair value Municipal debt securities $ 76,750 $ 456 $ (516 ) $ 76,690 Corporate debt securities 76,310 30 (908 ) 75,432 Agency mortgage-backed securities 2,559 5 (33 ) 2,531 U.S. government and agency securities 999 — (11 ) 988 $ 156,618 $ 491 $ (1,468 ) $ 155,641 December 31, 2017 (in thousands) Amortized cost Gross unrealized gain Gross unrealized loss 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 $ 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 December 30, 2018 and December 31, 2017 , were as follows: December 30, 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 $ 12,803 $ (74 ) $ 22,638 $ (442 ) $ 35,441 $ (516 ) Corporate debt securities 22,567 (277 ) 44,463 (631 ) 67,030 (908 ) Agency mortgage-backed securities 385 — 1,375 (33 ) 1,760 (33 ) U.S. government and agency securities 988 (11 ) — — 988 (11 ) Total held-to-maturity investments $ 36,743 $ (362 ) $ 68,476 $ (1,106 ) $ 105,219 $ (1,468 ) 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 that had unrealized losses as of December 30, 2018 and December 31, 2017 were 93 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, the company does 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: December 30, 2018 (in thousands) Amortized cost Fair value Due in one year or less $ 27,158 $ 27,014 Due after one year through five years 86,606 86,107 Due after five years through ten years 42,854 42,520 $ 156,618 $ 155,641 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. Available-for-sale We hold mutual funds classified as available-for-sale to support our deferred compensation liability. Unrealized losses of $3.4 million , related to equity investments still held at December 30, 2018 , were included in selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 30, 2018 . |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment are stated at cost and consist of the following: (in thousands) December 30, December 31, Buildings and land $ 41,300 $ 37,672 Computers and software 154,724 149,835 Furniture and equipment 16,632 15,527 Construction in progress 8,350 7,157 Gross property and equipment 221,006 210,191 Less accumulated depreciation (163,335 ) (150,028 ) Property and equipment, net $ 57,671 $ 60,163 Capitalized software costs, net of accumulated depreciation, were $19.4 million and $21.9 million as of December 30, 2018 and December 31, 2017 , respectively, excluding amounts in construction in progress. Construction in progress consists primarily of purchased and internally-developed software. Depreciation expense of property and equipment totaled $20.3 million , $24.7 million and $21.6 million for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 30, 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 January 1, 2017 Goodwill before impairment $ 106,304 $ 100,146 $ 129,852 $ 336,302 Accumulated impairment loss (46,210 ) (50,700 ) (15,169 ) (112,079 ) Goodwill, net 60,094 49,446 114,683 224,223 Foreign currency translation — — 2,471 2,471 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 — — (3,959 ) (3,959 ) Balance at December 30, 2018 Goodwill before impairment 106,304 81,092 144,970 332,366 Accumulated impairment loss (46,210 ) (33,700 ) (15,169 ) (95,079 ) Goodwill, net $ 60,094 $ 47,392 $ 129,801 $ 237,287 (1) Effective March 12, 2018, we entered divested our PlaneTechs business. 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: Acquisitions and Divestiture . (2) Effective June 12, 2018, we acquired TMP Holdings LTD, through PeopleScout. Accordingly, the goodwill associated with the acquisition has been assigned to our PeopleScout reportable segment based on our final purchase price allocation. For additional information, see Note 3: Acquisitions and Divestiture . Intangible assets Finite-lived intangible assets The following table presents our purchased finite-lived intangible assets: December 30, 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 $ 153,704 $ (70,887 ) $ 82,817 $ 148,114 $ (53,801 ) $ 94,313 Trade names/trademarks 2,580 (1,069 ) 1,511 4,149 (3,736 ) 413 Non-compete agreements — — — 1,400 (1,377 ) 23 Technologies 9,800 (8,720 ) 1,080 17,500 (13,588 ) 3,912 Total finite-lived intangible assets $ 166,084 $ (80,676 ) $ 85,408 $ 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, as of the acquisition date, based on our final purchase price allocation relating to our acquisition of TMP Holdings LTD. For additional information, see Note 3: Acquisitions and Divestiture . Amortization expense of our finite-lived intangible assets was $20.8 million , $21.4 million and $25.1 million for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. The following table provides the estimated future amortization of finite-lived intangible assets as of December 30, 2018 : (in thousands) 2019 $ 18,986 2020 17,354 2021 14,049 2022 13,201 2023 11,593 Thereafter 10,225 Total future amortization $ 85,408 Indefinite-lived intangible assets We also held indefinite-lived trade names/trademarks of $6.0 million as of December 30, 2018 and December 31, 2017 . Impairments There were no goodwill or intangible asset impairment charges recorded during fiscal 2018 or 2017. 2016 impairments We performed our annual goodwill impairment analysis as of the first day of our second quarter of fiscal 2016. This analysis required significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. The weighted average cost of capital used in our most recent annual impairment test was risk-adjusted to reflect the specific risk profile of the reporting units and ranged from 12.0% to 17.0% . As a result of our test we recorded a goodwill impairment charge of $65.9 million relating to the Staff Management, PlaneTechs and hrX reporting units as follows: • Staff Management: In April 2016, we were notified by our former largest client of its plans to reduce the use of contingent labor and realign its contingent labor vendors for warehousing. Our former largest client announced it would be reducing the use of our services for its warehouse fulfillment centers in the United States and focusing our services on its planned expansion of distribution service sites to a national network for delivery direct to the client. ◦ Goodwill impairmen t - We estimated that the change in scope of our services would decrease revenues by approximately $125 million compared to the prior year. As a result, we lowered our future expectations, which resulted in a goodwill impairment charge of $33.7 million . ◦ Intangible asset impairment - The significant decrease in scope of services by our former largest client required us to lower our future expectations, which was the primary trigger of an impairment charge to our acquired customer relationships intangible asset of $28.9 million and indefinite-lived intangible assets trade name of $4.5 million . Considerable management judgment was necessary to determine key assumptions, including projected revenue, royalty rates, and an appropriate discount rate of 13.0% for the customer relationships intangibles asset and 17.0% for the indefinite-lived trade-name. In addition, we utilized the relief from royalty method to determine the fair value of Staff Management’s indefinite-lived trade name using a royalty rate of 10.0% . • PlaneTechs: Revenue declined significantly compared to fiscal 2015 as large projects were completed for a major aviation client and its supply chain and anticipated projects did not occur to the extent expected. PlaneTechs had been diversifying from providing services to one primary client without offsetting growth in the broader aviation and transportation marketplace. As a result of significantly underperforming against expectations and increased future uncertainty, we lowered our future expectations, which resulted in a goodwill impairment charge of $17.0 million . • hrX: Sales of this service line included our internally developed applicant tracking software (“ATS”). ATS sales and prospects underperformed against our expectations. As a result of underperforming against our expectations and increased future uncertainty in client demand, we lowered our future expectations, which resulted in a goodwill impairment charge of $15.2 million . Note, our PeopleScout and hrX service lines were combined during fiscal 2016 and now represent a single operating segment (PeopleScout). Spartan and CLP Resources : In the third quarter of fiscal 2016, we finalized the changes to the organizational and reporting structure of our Labor Ready, Spartan Staffing and CLP Resources service lines, which resulted in them merging into one service line. The combined service line was re-branded as PeopleReady. As a result, we recognized an impairment charge of $4.3 million for the remaining net book value of the Spartan and CLP Resources trade name/trademarks intangible assets. |
WORKERS' COMPENSATION INSURANCE
WORKERS' COMPENSATION INSURANCE AND RESERVES | 12 Months Ended |
Dec. 30, 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. For workers’ compensation claims originating in Washington, North Dakota, Ohio, Wyoming, Canada and Puerto Rico (our “monopolistic jurisdictions”), we pay workers’ compensation insurance premiums and obtain full coverage under government-administered programs (with the exception of our PeopleReady service lines in the state of Ohio where we have a self-insured policy). Accordingly, because we are not the primary obligor, our financial statements do not reflect the liability for workers’ compensation claims in these monopolistic jurisdictions. Our workers’ compensation reserve is established using estimates of the future cost of claims and related expenses that have been reported but not settled, as well as those that have been incurred but not reported. 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 2.0% and 1.8% at December 30, 2018 and December 31, 2017 , respectively. Payments made against self-insured claims are made over a weighted average period of approximately 4.5 years at December 30, 2018 . The table below presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented as follows: (in thousands) December 30, December 31, Undiscounted workers’ compensation reserve $ 284,625 $ 293,600 Less discount on workers’ compensation reserve 18,179 19,277 Workers’ compensation reserve, net of discount 266,446 274,323 Less current portion 76,421 77,218 Long-term portion $ 190,025 $ 197,105 Payments made against self-insured claims were $64.7 million , $66.8 million and $73.6 million for the years ended December 30, 2018 , December 31, 2017 and January 1, 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 December 30, 2018 and December 31, 2017 , the weighted average rate was 2.9% 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 16 years . The discounted workers’ compensation reserve for excess claims was $48.2 million and $48.8 million as of December 30, 2018 and December 31, 2017 , respectively. The discounted receivables from insurance companies, net of valuation allowance, were $44.9 million and $45.0 million as of December 30, 2018 and December 31, 2017 , respectively, and are included in other assets, net on the accompanying Consolidated Balance Sheets. Management evaluates the adequacy of the workers’ compensation reserves in conjunction with an independent quarterly actuarial assessment. Factors considered in establishing and adjusting these reserves include, among other things: • changes in medical and time loss (“indemnity”) costs; • changes in mix between medical only and indemnity claims; • regulatory and legislative developments impacting benefits and settlement requirements; • type and location of work performed; • impact of safety initiatives; and • positive or adverse development of claims. The table below presents the estimated future payout of our discounted workers’ compensation claims reserve for the next five years and thereafter as of December 30, 2018 : (in thousands) 2019 $ 76,421 2020 41,654 2021 23,690 2022 15,236 2023 10,309 Thereafter 50,907 Sub-total 218,217 Excess claims (1) 48,229 Total $ 266,446 (1) Estimated expenses related to claims above our self-insured limits for which we have a corresponding receivable for the insurance coverage based on contractual policy agreements. Workers’ compensation expense consists primarily of changes in self-insurance reserves net of changes in discount, monopolistic jurisdictions’ premiums, insurance premiums and other miscellaneous expenses. Workers’ compensation expense of $69.2 million , $83.7 million and $94.0 million was recorded in cost of services for the years ended December 30, 2018 , December 31, 2017 and January 1, 2017 , respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT The components of our borrowings were as follows: (in thousands) December 30, December 31, Revolving Credit Facility $ 80,000 $ 95,900 Term Loan — 22,856 Total debt 80,000 118,756 Less current portion — 2,267 Long-term debt, less current portion $ 80,000 $ 116,489 Revolving credit facility 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. (“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. At December 30, 2018 , $80.0 million was utilized as a draw on the facility and $6.9 million was utilized by outstanding standby letters of credit, leaving $213.1 million available under the Revolving Credit Facility for additional borrowings. Under the terms of the agreement, we pay a variable rate of interest on funds borrowed 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 on a base rate plus an applicable spread between 0.25% and 1.50% . The applicable spread is 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% . At December 30, 2018 , the applicable spread on LIBOR was 1.50% and the weighted average index rate was 2.46% , resulting in a weighted average interest rate of 3.96% . A commitment fee between 0.250% and 0.375% is applied against the 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 substantially all of the assets 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. We are currently in compliance with all covenants related to the Revolving Credit Facility. 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 | 12 Months Ended |
Dec. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Workers’ compensation commitments Our insurance carriers and certain state workers’ compensation programs require us to collateralize a portion of our workers’ compensation obligation, for which they become responsible should we become insolvent. The collateral typically takes the form of cash and cash equivalents, highly-rated investment grade debt securities, letters of credit, and/or surety bonds. On a regular basis these entities assess the amount of collateral they will require from us relative to our workers’ compensation obligation. The majority of our collateral obligations are held in the Trust. We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) December 30, December 31, Cash collateral held by workers’ compensation insurance carriers $ 22,264 $ 22,148 Cash and cash equivalents held in Trust 28,021 16,113 Investments held in Trust 156,618 171,752 Letters of credit (1) 6,691 7,748 Surety bonds (2) 21,881 19,829 Total collateral commitments $ 235,475 $ 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. Operating leases We have contractual commitments in the form of operating leases related to office space and equipment. Future non-cancelable minimum lease payments under our operating lease commitments as of December 30, 2018 are as follows for each of the next five years and thereafter: (in thousands) 2019 $ 8,337 2020 7,192 2021 4,990 2022 2,442 2023 1,324 Thereafter 699 Total future non-cancelable minimum lease payments $ 24,984 Operating leases are generally renewed in the normal course of business, and most of the options are negotiated at the time of renewal. However, for the majority of our office space leases, we have the right to cancel the lease, typically within 90 days of notification. Accordingly, we have not included the leases with these cancellation provisions in our disclosure of future minimum lease payments. Total rent expense for fiscal 2018 , 2017 and 2016 was $27.3 million , $25.9 million and $26.5 million , respectively. Purchase obligations Purchase obligations include agreements to purchase goods and services in the ordinary course of business that are enforceable, legally binding and specify all significant terms. Purchase obligations do not include agreements that are cancelable without significant penalty. We had $28.0 million of purchase obligations as of December 30, 2018 , of which $14.7 million are expected to be paid in 2019 . 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. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 30, 2018 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Common stock On September 15, 2017, our Board of Directors authorized a $100.0 million share repurchase program of our outstanding common stock. The share repurchase program does not obligate us to acquire any particular amount of common stock and does not have an expiration date. During the year ended December 30, 2018 , we used $34.8 million under this program to repurchase shares at an average share price of $25.40 . Shares of common stock outstanding include shares of unvested restricted stock. Unvested restricted stock included in reportable shares outstanding was 0.7 million and 0.8 million shares as of December 30, 2018 and December 31, 2017 , respectively. Preferred stock We have authorized 20 million shares of blank check preferred stock. The blank check preferred stock is issuable in one or more series, each with such designations, preferences, rights, qualifications, limitations and restrictions as our Board of Directors may determine and set forth in supplemental resolutions at the time of issuance, without further shareholder action. The initial series of blank check preferred stock authorized by the Board of Directors was designated as Series A Preferred Stock. We had no outstanding shares of preferred stock in any of the years presented. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We record stock-based compensation expense for restricted and unrestricted stock awards, performance share units, and shares purchased under an employee stock purchase plan. Our 2016 Omnibus Incentive Plan, effective May 11, 2016 (“Incentive Plan”), provides for the issuance or delivery of up to 1.54 million shares of our common stock over the full term of the Incentive Plan. Restricted and unrestricted stock awards and performance share units Under the Incentive Plan, restricted stock awards are granted to executive officers and key employees and vest annually over three or four years. Unrestricted stock awards granted to our Board of Directors vest immediately. Restricted and unrestricted stock-based compensation expense is calculated based on the grant-date market value. We recognize compensation expense on a straight-line basis over the vesting period, net of estimated forfeitures. Performance share units have been granted to executive officers and certain key employees. Commencing in 2017, vesting of the performance share units is contingent upon the achievement of return on equity goals at the end of each three -year performance period, previously vesting was contingent upon the achievement of revenue and profitability growth goals. Each performance share unit is equivalent to one share of common stock. Compensation expense is calculated based on the grant-date market value of our stock and is recognized ratably over the performance period for the performance share units which are expected to vest. Our estimate of the performance units expected to vest is reviewed and adjusted as appropriate each quarter. Restricted and unrestricted stock awards and performance share units activity for the year ended December 30, 2018 , was as follows: (shares in thousands) Shares Weighted- average grant-date price Non-vested at beginning of period 1,321 $ 23.50 Granted 719 $ 26.87 Vested (428 ) $ 24.29 Forfeited (296 ) $ 23.01 Non-vested at the end of the period 1,316 $ 26.05 The weighted average grant-date price of restricted and unrestricted stock awards and performance share units granted during the years 2018 , 2017 and 2016 was $26.87 , $25.45 and $21.53 , respectively. As of December 30, 2018 , total unrecognized stock-based compensation expense related to non-vested restricted stock was approximately $12.6 million , which is estimated to be recognized over a weighted average period of 1.7 years . As of December 30, 2018 , total unrecognized stock-based compensation expense related to performance share units was approximately $3.8 million , which is estimated to be recognized over a weighted average period of 1.8 years . The total fair value of restricted shares vested during fiscal 2018 , 2017 and 2016 was $9.9 million , $6.9 million and $6.6 million , respectively. No performance shares vested during fiscal 2018 . The total fair value of performance shares vested during fiscal 2017 and 2016 was $2.9 million and $3.3 million , respectively. Stock options Our Incentive Plan provides for both nonqualified stock options and incentive stock options (collectively, “stock options”) for directors, officers and certain employees. We issue new shares of common stock upon exercise of stock options. All of our stock options are vested and expire if not exercised within seven years from the date of grant. We had no stock option activity for fiscal 2018 and de minimis activity for fiscal 2017 and 2016 . Employee Stock Purchase Plan Our Employee Stock Purchase Plan (“ESPP”) reserves for purchase 1.0 million shares of common stock. The plan allows eligible employees to contribute up to 10% of their earnings toward the monthly purchase of the company’s common stock. The employee’s purchase price is 85% of the lesser of the fair market value of shares on either the first day or the last day of each month. We consider our ESPP to be a component of our stock-based compensation and accordingly we recognize compensation expense over the requisite service period for stock purchases made under the plan. The requisite service period begins on the enrollment date and ends on the purchase date, the duration of which is one month . The following table summarizes transactions under our ESPP from fiscal 2018 , 2017 and 2016 : (shares in thousands) Shares Average price per share Issued during fiscal 2018 68 $ 22.17 Issued during fiscal 2017 72 $ 20.43 Issued during fiscal 2016 87 $ 17.51 Stock-based compensation expense Total stock-based compensation expense for fiscal years 2018 , 2017 and 2016 , which is included in selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), was $13.9 million , $7.7 million and $9.4 million , respectively. The related tax benefit was $2.9 million , $2.7 million and $3.3 million for fiscal 2018 , 2017 and 2016 , respectively. |
DEFINED CONTRIBUTION PLANS
DEFINED CONTRIBUTION PLANS | 12 Months Ended |
Dec. 30, 2018 | |
Retirement Benefits [Abstract] | |
DEFINED CONTRIBUTION PLANS | DEFINED CONTRIBUTION PLANS We offer both qualified and non-qualified defined contribution plans to eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation. The plans offer discretionary matching contributions. The liability for the non-qualified plans was $25.4 million and $24.1 million as of December 30, 2018 and December 31, 2017 , respectively. The expense for our qualified and non-qualified deferred compensation plans, including our discretionary matching contributions, totaled $5.3 million , $6.1 million and $2.8 million for fiscal 2018 , 2017 and 2016 , respectively, and is recorded in selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes is comprised of the following: Years ended (in thousands) 2018 2017 2016 Current taxes: Federal $ 5,088 $ 12,134 $ 12,082 State 5,208 3,979 5,448 Foreign 1,542 3,545 2,677 Total current taxes 11,838 19,658 20,207 Deferred taxes: Federal (1,283 ) 3,645 (20,693 ) State 120 (195 ) (4,064 ) Foreign (766 ) (1,014 ) (539 ) Total deferred taxes (1,929 ) 2,436 (25,296 ) Provision for income taxes $ 9,909 $ 22,094 $ (5,089 ) The items accounting for the difference between income taxes computed at the statutory federal income tax rate and income taxes reported on the Consolidated Statements of Operations and Comprehensive Income (Loss) are as follows: Years ended (in thousands, except percentages) 2018 % 2017 % 2016 % Income tax expense (benefit) based on statutory rate $ 15,889 21.0 % $ 27,140 35.0 % $ (7,119 ) 35.0 % Increase (decrease) resulting from: State income taxes, net of federal benefit 3,826 5.1 2,667 3.4 1,373 (6.8 ) Tax credits, net (12,303 ) (16.3 ) (9,964 ) (12.9 ) (17,141 ) 84.3 Transition to the U.S. Tax Cuts and Job Act (194 ) (0.3 ) 2,466 3.2 — — Non-deductible goodwill impairment charge — — — — 17,694 (87.0 ) Non-deductible/non-taxable items 1,191 1.6 1,157 1.5 630 (3.1 ) Foreign taxes 735 1.0 (342 ) (0.4 ) 993 (4.8 ) Other, net 765 1.0 (1,030 ) (1.3 ) (1,519 ) 7.4 Total taxes on income (loss) $ 9,909 13.1 % $ 22,094 28.5 % $ (5,089 ) 25.0 % Our effective tax rate for fiscal 2018 was 13.1% . 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 (“WOTC”). This tax credit is designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates. During fiscal 2018 , we recognized $1.1 million of tax benefits from prior year WOTC. Other differences between the statutory federal income tax rate of 21.0% and our effective tax rate of 13.1% result from state and foreign income taxes, certain non-deductible expenses, tax exempt interest, and tax effects of stock-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 income tax effects of the Tax Cuts and Jobs Act (the “Tax Act”). For the year ended December 30, 2018 , we completed accounting for the Tax Act by recording immaterial adjustments to our transition tax and revaluation of net deferred tax assets at December 31, 2017. We also determined that unremitted earnings of our foreign subsidiaries should no longer remain subject to an indefinite reinvestment assertion and recorded a $0.4 million deferred tax liability related to foreign withholding taxes. U.S. and international components of income (loss) before tax expense (benefit) was as follows: Years ended (in thousands) 2018 2017 2016 U.S. $ 73,051 $ 69,119 $ (8,221 ) International 2,612 8,431 (12,119 ) Income (loss) before tax expense (benefit) $ 75,663 $ 77,550 $ (20,340 ) The components of deferred tax assets and liabilities were as follows: (in thousands) December 30, December 31, Deferred tax assets: Allowance for doubtful accounts $ 1,049 $ 876 Workers’ compensation 4,162 1,420 Accounts payable and other accrued expenses 3,957 4,000 Net operating loss carryforwards 2,103 2,388 Tax credit carryforwards 1,562 1,615 Accrued wages and benefits 7,016 4,644 Deferred compensation 5,438 4,484 Other 636 841 Total 25,923 20,268 Valuation allowance (2,079 ) (2,508 ) Total deferred tax asset, net of valuation allowance 23,844 17,760 Deferred tax liabilities: Prepaid expenses, deposits and other current assets (2,054 ) (2,096 ) Depreciation and amortization (17,402 ) (11,881 ) Total deferred tax liabilities (19,456 ) (13,977 ) Net deferred tax asset, end of year $ 4,388 $ 3,783 Deferred taxes related to our foreign currency translation were de minimis for fiscal 2018 , 2017 and 2016 . The following table summarizes our net operating losses (“NOLs”) and credit carryforwards along with their respective valuation allowance as of December 30, 2018 : (in thousands) Carryover tax benefit Valuation allowance Expected benefit Year expiration begins Year-end tax attributes: State NOLs $ 1,373 $ — $ 1,373 Various Foreign NOLs 730 (730 ) — Various California Enterprise Zone credits 1,562 (1,349 ) 213 2023 Total $ 3,665 $ (2,079 ) $ 1,586 As of December 30, 2018 , our liability for unrecognized tax benefits was $2.2 million . If recognized, $1.7 million would impact our effective tax rate. We do not believe the amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the year ended December 30, 2018 . This liability is recorded in other non-current liabilities on our Consolidated Balance Sheets. In general, the tax years 2015 through 2017 remain open to examination by the major taxing jurisdictions where we conduct business. The following table summarizes the activity related to our unrecognized tax benefits: Years ended (in thousands) 2018 2017 2016 Balance, beginning of fiscal year $ 2,210 $ 2,242 $ 2,195 Increases for tax positions related to the current year 377 356 348 Reductions due to lapsed statute of limitations (397 ) (388 ) (301 ) Balance, end of fiscal year $ 2,190 $ 2,210 $ 2,242 We recognize interest and penalties related to unrecognized tax benefits within income tax expense on the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). Accrued interest and penalties are included within other long-term liabilities on the Consolidated Balance Sheets. Related to the unrecognized tax benefits noted above, we accrued a de minimis amount for interest and penalties during fiscal 2018 and, in total, as of December 30, 2018 , have recognized a liability for penalties of $0.2 million and interest of $1.0 million . |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 30, 2018 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Diluted common shares were calculated as follows: Years ended (in thousands, except per share data) 2018 2017 2016 Net income (loss) $ 65,754 $ 55,456 $ (15,251 ) Weighted average number of common shares used in basic net income (loss) per common share 39,985 41,202 41,648 Dilutive effect of non-vested restricted stock 290 239 — Weighted average number of common shares used in diluted net income (loss) per common share 40,275 41,441 41,648 Net income (loss) per common share: Basic $ 1.64 $ 1.35 $ (0.37 ) Diluted $ 1.63 $ 1.34 $ (0.37 ) Anti-dilutive shares 538 418 — |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 30, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in the balance of each component of accumulated other comprehensive loss during the reporting periods were as follows: Years ended December 30, 2018 December 31, 2017 (in thousands) Foreign currency translation adjustment, net of tax (2) Unrealized gain on investments, net of tax (1) Total other comprehensive (loss), net of tax Foreign currency translation adjustment, net of tax (2) 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 (loss) (6,320 ) — (6,320 ) 3,355 1,274 4,629 Change in accounting standard cumulative-effect adjustment (3) — (1,525 ) (1,525 ) — — — Balance at end of period $ (14,649 ) $ — $ (14,649 ) $ (8,329 ) $ 1,525 $ (6,804 ) (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 year ended December 31, 2017 . (2) The tax impact on foreign currency translation adjustments for fiscal years 2018 and 2017 was de minimis. (3) 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 year ended December 31, 2017 . For additional information, see Note 1: Summary of Significant Accounting Policies . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 30, 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 : 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 business within our PeopleManagement reportable segment. For additional information, see Note 3: Acquisitions 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 through PeopleScout. 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: Acquisitions 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: Years ended (in thousands) December 30, December 31, January 1, Revenue from services: PeopleReady $ 1,522,076 $ 1,511,360 $ 1,629,455 PeopleManagement 728,254 807,273 940,453 PeopleScout 248,877 190,138 180,732 Total company $ 2,499,207 $ 2,508,771 $ 2,750,640 The following table presents a reconciliation of Segment profit to income before tax expense: Years ended (in thousands) December 30, December 31, January 1, Segment profit: PeopleReady $ 85,998 $ 79,044 $ 109,063 PeopleManagement 21,627 27,216 27,557 PeopleScout 47,383 39,354 34,285 155,008 145,614 170,905 Corporate unallocated (26,066 ) (20,968 ) (23,583 ) Goodwill and intangible asset impairment charge — — (103,544 ) Work Opportunity Tax Credit processing fees (985 ) (805 ) (1,858 ) Acquisition/integration costs (2,672 ) — (6,654 ) Other costs (10,317 ) (162 ) (5,569 ) Depreciation and amortization (41,049 ) (46,115 ) (46,692 ) Income (loss) from operations 73,919 77,564 (16,995 ) Interest and other income (expense), net 1,744 (14 ) (3,345 ) Income (loss) before tax expense (benefit) $ 75,663 $ 77,550 $ (20,340 ) Asset information by reportable segment is not presented since we do not manage our segments on a balance sheet basis. Our international operations are primarily in Canada, Australia and the United Kingdom. Revenue by region was as follows: Years ended (in thousands, except percentages) 2018 % 2017 % 2016 % United States $ 2,369,024 94.8 % $ 2,387,992 95.2 % $ 2,644,414 96.1 % International operations 130,183 5.2 120,779 4.8 106,226 3.9 Total revenue from services $ 2,499,207 100.0 % $ 2,508,771 100.0 % $ 2,750,640 100.0 % No single client represented more than 10% of total company revenue for fiscal 2018 , 2017 or 2016 . Client concentration for our reportable segments is as follows: • No single client represented more than 10.0% of our PeopleReady reportable segment revenue for fiscal 2018 , 2017 , or 2016 . • No single client represented more than 10.0% of our PeopleManagement reportable segment revenue for fiscal 2018 , or 2017 . One client represented 18.2% of our PeopleManagement reportable segment revenue for fiscal 2016 . • One client represented 13.3% of our PeopleScout reportable segment revenue for fiscal 2018 , two clients represented 14.4% and 10.1% , respectively for fiscal 2017 and 12.8% and 10.0% , respectively for fiscal 2016 . Net property and equipment located in international operations was approximately 7.3% and 9.1% of total property and equipment as of December 30, 2018 and December 31, 2017 , respectively. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 30, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per share data) First Second Third Fourth 2018 Revenue from services $ 554,388 $ 614,301 $ 680,371 $ 650,147 Cost of services 411,120 448,717 496,053 477,717 Gross profit 143,268 165,584 184,318 172,430 Selling, general and administrative expense 125,763 134,207 145,382 145,280 Depreciation and amortization 10,090 10,101 10,586 10,272 Income from operations 7,415 21,276 28,350 16,878 Interest expense (890 ) (1,355 ) (1,357 ) (1,279 ) Interest and other income 3,094 387 1,017 2,127 Interest and other income (expense), net 2,204 (968 ) (340 ) 848 Income before tax expense 9,619 20,308 28,010 17,726 Income tax expense 864 2,576 3,630 2,839 Net income $ 8,755 $ 17,732 $ 24,380 $ 14,887 Net income per common share: Basic $ 0.22 $ 0.44 $ 0.61 $ 0.38 Diluted $ 0.22 $ 0.44 $ 0.61 $ 0.37 2017 Revenue from services $ 568,244 $ 610,122 $ 660,780 $ 669,625 Cost of services 428,815 454,842 488,761 501,880 Gross profit 139,429 155,280 172,019 167,745 Selling, general and administrative expense 121,844 124,754 131,552 132,644 Depreciation and amortization 11,174 12,287 11,189 11,465 Income from operations 6,411 18,239 29,278 23,636 Interest expense (1,232 ) (1,296 ) (1,365 ) (1,601 ) Interest and other income 1,306 1,451 1,146 1,577 Interest and other income (expense), net 74 155 (219 ) (24 ) Income before tax expense 6,485 18,394 29,059 23,612 Income tax expense 1,811 5,260 7,838 7,185 Net income $ 4,674 $ 13,134 $ 21,221 $ 16,427 Net income per common share: Basic $ 0.11 $ 0.32 $ 0.52 $ 0.41 Diluted $ 0.11 $ 0.31 $ 0.51 $ 0.40 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | FINANCIAL STATEMENT SCHEDULES Schedule II, Valuation and Qualifying Accounts Allowance for doubtful accounts activity was as follows: (in thousands) 2018 2017 2016 Balance, beginning of the year $ 4,344 $ 5,160 $ 5,902 Charged to expense 9,785 6,903 8,171 Write-offs (9,103 ) (7,719 ) (8,913 ) Balance, end of year $ 5,026 $ 4,344 $ 5,160 Insurance receivable valuation allowance activity was as follows: (in thousands) 2018 2017 2016 Balance, beginning of the year $ 3,778 $ 4,019 $ 3,874 Charged to expense 120 1,153 207 Release of allowance (584 ) (1,394 ) (62 ) Balance, end of year $ 3,314 $ 3,778 $ 4,019 Income tax valuation allowance activity was as follows: (in thousands) 2018 2017 2016 Balance, beginning of the year $ 2,508 $ 2,266 $ 3,227 Charged to expense — 2 579 Transition to the U.S. Tax Cuts and Jobs Act — 240 — Release of allowance (429 ) — (1,540 ) Balance, end of year $ 2,079 $ 2,508 $ 2,266 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements include the accounts of TrueBlue and all of its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Fiscal period end | Fiscal period end The consolidated financial statements are presented on a 52/53-week fiscal year-end basis, with the last day of the fiscal year ending on the Sunday closest to the last day of December. In fiscal years consisting of 53 weeks, the final quarter will consist of 14 weeks while fiscal years consisting of 52 weeks, all quarters will consist of 13 weeks. The fiscal year ended 2016 included 53 weeks, with the 53rd week falling in our fourth quarter. All other years presented include 52 weeks. |
Revenue recognition | 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 notice 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, 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 on the Consolidated Statements of Operations and Comprehensive Income (Loss). 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 demonstrate control over the services provided to our clients by being the employer of record for the individuals performing the service. • We establish our worker’s billing rate. Contingent staffing We recognize revenue for our PeopleReady and PeopleManagement 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 PeopleScout 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. |
Cost of services | Cost of services Cost of services refers to costs directly associated with the earning of revenue and primarily includes wages and related payroll taxes and workers’ compensation expenses. Cost of services also includes billable travel as well as other reimbursable and non-reimbursable expenses. |
Advertising cost | Advertising costs Advertising costs consist primarily of print and other promotional activities. We expense advertisements as of the first date the advertisements take place. Advertising expenses included in selling, general and administrative expense were $8.1 million , $7.3 million and $7.8 million in fiscal 2018 , 2017 and 2016 , respectively. |
Cash, cash equivalents, and marketable securities | Cash, cash equivalents and marketable securities We consider all highly liquid instruments purchased with an original maturity of three months or less at date of purchase to be cash equivalents. Investments with original maturities greater than three months are classified as marketable securities. We do not buy and hold securities principally for the purpose of selling them in the near future. Our investment policy is focused on the preservation of capital, liquidity and return. From time to time, we may sell certain securities but the objective is not to generate profits on short-term differences in price. We manage our cash equivalents and marketable securities as a single portfolio of highly liquid securities. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the invoiced amount. We establish an allowance for doubtful accounts for estimated losses resulting from the failure of our clients to make required payments. The allowance for doubtful accounts is determined based on current collection efforts, historical collection trends, write-off experience, client credit risk and current economic data. The allowance for doubtful accounts is reviewed quarterly and represents our best estimate of the amount of probable credit losses. Past due balances are written off when it is probable the receivable will not be collected. |
Restricted cash and investments | Restricted cash and investments Cash and investments pledged as collateral and restricted to use for workers’ compensation insurance programs are included as restricted cash and investments on our Consolidated Balance Sheets. Our investments consist of highly-rated investment grade debt securities, which are rated A1/P1 or higher for short-term securities and A or higher for long-term securities, by nationally recognized rating organizations. We have the positive intent and ability to hold our restricted investments until maturity in accordance with our investment policy and, accordingly, all of our restricted investments are classified as held-to-maturity. In the event that an investment is downgraded, it is replaced with a highly-rated investment grade security. We review for impairment on a quarterly basis and do not consider temporary unrealized losses to be an impairment. We have an agreement with American International Group, Inc. and the Bank of New York Mellon Corporation creating a trust (“Trust”), which holds the majority of our collateral obligations under existing workers’ compensation insurance policies. Placing the collateral in the Trust allows us to manage the investment of the assets and provides greater protection of those assets. |
Fair value of financial instruments and investments | Fair value of financial instruments and investments Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For assets and liabilities recorded or disclosed at fair value on a recurring basis, we determine fair value based on the following: • Level 1: The carrying value of cash and cash equivalents and mutual funds approximates fair value because of the short-term nature of these instruments. Inputs are valued using quoted market prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices in active markets for identical assets and liabilities are used. We use quoted prices for similar instruments in active markets or quoted prices or we estimate the fair value using a variety of valuation methodologies, which include observable inputs for comparable instruments and unobservable inputs. • Level 3: For assets and liabilities with unobservable inputs, we typically rely on management’s estimates of assumptions that market participants would use in pricing the asset or liability. The carrying value of our cash and cash equivalents and restricted cash approximates fair value because of the short-term maturity of those instruments. We hold mutual funds classified as available-for-sale to support our deferred compensation liability, which are carried at fair value based on quoted market prices in active markets for identical assets. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions. The carrying value of our accounts receivable, accounts payable and other accrued expenses, and accrued wages and benefits approximates fair value due to their short-term nature. We also hold certain restricted investments which collateralize workers’ compensation programs and are classified as held-to-maturity and carried at amortized cost on our Consolidated Balance Sheets. Certain items such as goodwill and other intangible assets are recognized or disclosed at fair value on a non-recurring basis. We determine the fair value of these items using level 3 inputs. |
Property and equipment | Property and equipment Property and equipment are recorded at cost. We compute depreciation using the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 40 Computers and software 3 - 10 Furniture and equipment 3 - 10 Leasehold improvements are amortized over the shorter of the related non-cancelable lease term or their estimated useful lives. Non-capital expenditures associated with opening new locations are expensed as incurred. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss, net of proceeds, is reflected on the Consolidated Statements of Operations and Comprehensive Income (Loss). Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated. Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, from three to ten years. A subsequent addition, modification or upgrade to internal-use software is capitalized to the extent that it enhances the software’s functionality or extends its useful life. Software maintenance and training costs are expensed in the period incurred. |
Leases | Leases We conduct our branch office operations from leased locations. We also lease office spaces for our centralized support functions, vehicles and equipment. Many leases require payment of property taxes, insurance and common area maintenance, in addition to rent. The terms of our lease agreements generally range from three to five years, majority containing options to renew or cancel with 90 days notice. Operating lease expense is included within selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss). For operating leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the minimum lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. Cash or lease incentives received upon entering into certain operating leases (“tenant allowances”) are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate. |
Intangible assets and other long-lived assets | Intangible assets and other long-lived assets Long-lived assets include property and equipment, and finite-lived intangible assets. These assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. We have indefinite-lived intangible assets related to our Staff Management | SMX (“Staff Management”) and PeopleScout trade names. We test our trade names annually for impairment, and when indications of potential impairment exist. |
Goodwill | Goodwill We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our second quarter, or 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, operating performance indicators, competition, client engagement, legal factors or sale or disposition of a significant portion of a reporting unit. We monitor the existence of potential impairment indicators throughout the fiscal year. |
Long-lived asset impairment | . |
Business combinations | Business combinations We account for our business acquisitions using the acquisition method of accounting. The fair value of the net assets acquired and the results of the acquired business are included in the financial statements from the acquisition date forward. We are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property and equipment, intangible assets, useful lives of property and equipment, and amortizable lives for acquired intangible assets. Any excess of the purchase consideration over the identified fair value of the assets and liabilities acquired is recognized as goodwill. Goodwill acquired in business combinations is assigned to the reporting unit(s) expected to benefit from the combination as of the acquisition date. We estimate the fair value of acquired assets and liabilities as of the date of the acquisition based on information available at that time. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change between the preliminary allocation and the final allocation. All acquisition-related costs are expensed as incurred and recorded in selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). Additionally, we recognize liabilities for anticipated restructuring costs that will be necessary due to the elimination of excess capacity, redundant assets or unnecessary functions, and record them as selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). |
Workers' compensation claims reserves | Workers’ compensation claims reserves We maintain reserves for workers’ compensation claims using actuarial estimates of the future cost of claims and related expenses. These estimates include claims that have been reported but not settled and claims that have been incurred but not reported. These reserves, which reflect potential liabilities to be paid in future periods based on estimated payment patterns, are discounted to estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments, which are evaluated on a quarterly basis. We evaluate the reserves regularly throughout the year and make adjustments accordingly. If the actual cost of such claims and related expenses exceeds the amounts estimated, additional reserves may be required. Changes in reserve estimates are reflected on the Consolidated Statements of Operations and Comprehensive Income (Loss) in the period when the changes in estimates are made. Our workers’ compensation reserves include estimated expenses related to claims above our self-insured limits (“excess claims”) and a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance companies. We discount the liability and its corresponding receivable to its estimated net present value using the “risk-free” rates associated with the actuarially determined weighted average lives of our excess claims. When appropriate, based on our best estimate, we record a valuation allowance against the insurance receivable to reflect amounts that may not be realized. |
Legal contingency reserves and regulatory liabilities | Legal contingency reserves and regulatory liabilities From time to time we are subject to compliance audits by federal, state and local authorities relating to a variety of regulations including wage and hour laws, taxes, workers’ compensation, immigration and safety. In addition, we are subject to legal proceedings in the ordinary course of our operations. We establish accruals for contingent legal and regulatory liabilities when management determines that it is probable that a legal claim will result in an adverse outcome and the amount of liability can be reasonably estimated. We evaluate our reserve regularly throughout the year and make adjustments as needed. If the actual outcome of these matters is different than expected, an adjustment is charged or credited to expense in the period the outcome occurs or the period in which the estimate changes. |
Income taxes and related valuation allowance | Income taxes and related valuation allowance We account for income taxes by recording taxes payable or receivable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. These expected future tax consequences are measured based on provisions of tax law as currently enacted; the effects of future changes in tax laws are not anticipated. Future tax law changes, such as changes to the federal and state corporate tax rates and the mix of states and their taxable income, could have a material impact on our financial condition or results of operations. When appropriate, we record a valuation allowance against deferred tax assets to offset future tax benefits that may not be realized. In determining whether a valuation allowance is appropriate, we consider whether it is more likely than not that all or some portion of our deferred tax assets will not be realized, based in part upon management’s judgments regarding future events and past operating results. Based on that analysis, we have determined that a valuation allowance is appropriate for certain net operating losses and tax credits that we expect will not be utilized within the permitted carryforward periods as of December 30, 2018 and December 31, 2017 . A significant driver of fluctuations in our effective income tax rate is the Work Opportunity Tax Credit (“WOTC”). WOTC is designed to encourage hiring of workers from certain disadvantaged targeted categories, and is generally calculated as a percentage of wages over a twelve month period up to worker maximum by targeted category. Based on historical results and business trends, we estimate the amount of WOTC we expect to earn related to wages of the current year. However, the estimate is subject to variation because 1) a small percentage of our workers qualify for one or more of the many targeted categories; 2) the targeted categories are subject to different incentive credit rates and limitations; 3) credits fluctuate depending on economic conditions and qualified worker retention periods; and 4) state and federal offices can delay their credit certification processing and have inconsistent certification rates. We recognize additional prior year hiring credits if credits in excess of original estimates have been certified by government offices. |
Deferred compensation plan | Deferred compensation plan We offer a non-qualified defined contribution plan (the “Plan”) to eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation. The Plan allows participants to direct their account based on the investment options determined by TrueBlue and offers discretionary matching contributions. The current portion of the deferred compensation liability is included in other current liabilities on our Consolidated Balance Sheets. The total deferred compensation liability is largely offset by deferred compensation mutual funds classified as available-for-sale recorded in restricted cash and investments on our Consolidated Balance Sheets. These mutual funds are measured at fair value, with changes in market value recognized in selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Stock-based compensation | Stock-based compensation Under various plans, officers, employees and non-employee directors have received or may receive grants of stock, restricted stock awards, performance share units or options to purchase common stock. We also have an employee stock purchase plan ("ESPP"). Compensation expense for restricted stock awards and performance share units is generally recognized on a straight-line basis over the vesting period, based on the stock’s fair market value on the grant date. For restricted stock and performance share unit grants issued with performance conditions, compensation expense is recognized over each vesting period based on assessment of the likelihood of meeting these conditions. We recognize compensation expense for only the portion of restricted stock and performance share units that is expected to vest, rather than record forfeitures when they occur. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in the future periods. |
Foreign currency | Foreign currency Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date. Revenues and expenses for each subsidiary are translated to U.S. dollars using a weighted average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in other comprehensive income (“OCI”), when applicable. Currency gains and losses on intercompany loans with international subsidiaries are included, net of tax, in OCI. |
Purchases and retirement of our common stock | Purchases and retirement of our common stock We purchase our common stock under a program authorized by our Board of Directors. Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on the Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to retained earnings until such time as the reduction to retained earnings due to stock repurchases has been recovered. |
Net income (loss) per share | Net income (loss) per share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares include the dilutive effects of vested and non-vested restricted stock, performance share units and shares issued under the ESPP, except where their inclusion would be anti-dilutive. Anti-dilutive shares primarily include non-vested restricted stock and performance share units for which the sum of the assumed proceeds, including unrecognized compensation expense, exceeds the average stock price during the periods presented. Anti-dilutive shares associated with our stock options relate to those stock options with an exercise price higher than the average market value of our stock during the periods presented. |
Use of estimates | Use of estimates Preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Estimates in our financial statements include, but are not limited to, purchase accounting, allowance for doubtful accounts, estimates for asset and goodwill impairments, stock-based performance awards, assumptions underlying self-insurance reserves, contingent legal and regulatory liabilities, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions. |
New Accounting Pronouncements and Changes in Accounting Principles | Recently adopted accounting standards Stock compensation 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. Business combinations 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. Restricted cash and cash equivalents 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 on our Consolidated Statements of Cash Flows, and the $21.5 million and $19.8 million previously presented in the investing section for the years ended December 31, 2017 and January 1, 2017, respectively, are now included when reconciling the beginning-of-period and end-of-period cash, cash equivalents and restricted cash shown on our Consolidated Statements of Cash Flows. Accounting for income taxes - intra-entity asset transfers 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. Statement of cash flows classification 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 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. Financial instruments – recognition, measurement, presentation, and disclosure 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 on our Consolidated Statements of Operation and Comprehensive Income (Loss). Revenue from contracts with customers In May 2014, the FASB issued guidance outlining a single comprehensive model for accounting for revenue arising from contracts with clients, which supersedes the previous revenue recognition accounting guidance. The guidance was effective for annual and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). This guidance required 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. 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 previous accounting guidance. The adoption of this new guidance did not have a material impact on our consolidated financial statements as of the adoption date, or for the year ended December 30, 2018 , except for expanded disclosures. Recently issued accounting pronouncements not yet adopted Intangibles-goodwill and other-internal-use software In August 2018, the FASB issued guidance on accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. This new standard is intended to reduce complexity for the accounting for costs of implementing a cloud computing service arrangement. The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Currently, we expense internal development labor as incurred. The new guidance will require those costs to be capitalized with the related amortization recorded in selling, general and administrative expense. In addition, capitalized development costs are required to be recorded as a prepaid asset (other asset) rather than a fixed asset, and license fees incurred during the development period should be expensed as incurred. We intend to early adopt the standard prospectively in Q1 2019, which will not have an impact on our consolidated financial statements. Leases 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 most operating leases on the balance sheet as right-of-use assets and lease liabilities. This guidance is effective for annual and interim periods beginning after December 15, 2018 (Q1 2019 for TrueBlue), with early adoption permitted. In July 2018, the FASB amended the standard to provide transition relief for comparative reporting, allowing companies to adopt the provisions of the new standard using a modified retrospective transition method on the adoption date, with a cumulative-effect adjustment to retained earnings recorded on the date of adoption. We have elected to adopt the standard using the transition relief provided in the July amendment. In preparation for adoption of the standard, we have implemented internal controls and key system functionality to enable the preparation of financial information. We expect adoption of the standard to result in the recognition of operating lease right-of-use assets of approximately $33 million and corresponding lease liabilities of approximately $34 million as of the first day of our fiscal first quarter in 2019. The difference between the right-of-use asset and lease liability relates to the existing deferred rent liability associated with the leases to be capitalized. The existing deferred rent liability, which is the difference between the straight-line lease expense and cash paid, will reduce the right-of-use asset, upon adoption. Our accounting for capital leases will remain substantially unchanged. Adoption of the standard will not have a material impact on our Consolidated Statements of Operation and Comprehensive Income (Loss). Financial instruments – credit losses In June 2016, the FASB issued guidance on accounting for credit losses on financial instruments. This guidance sets forth a current expected credit loss model, which requires measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This guidance replaces the incurred loss impairment methodology under current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We will be required to use a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for annual and interim periods beginning after December 15, 2019 (Q1 2020 for TrueBlue) with early adoption permitted no sooner than Q1 2019. A modified retrospective approach is required for all investments, except debt securities for which an other-than-temporary impairment had been recognized prior to the effective date, which will require a prospective transition approach. We plan to adopt this guidance on the effective date and are currently evaluating the impact of this standard on our consolidated financial statements, including accounting policies, processes and systems. Other 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Estimated Useful Lives of Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | We compute depreciation using the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 40 Computers and software 3 - 10 Furniture and equipment 3 - 10 Property and equipment are stated at cost and consist of the following: (in thousands) December 30, December 31, Buildings and land $ 41,300 $ 37,672 Computers and software 154,724 149,835 Furniture and equipment 16,632 15,527 Construction in progress 8,350 7,157 Gross property and equipment 221,006 210,191 Less accumulated depreciation (163,335 ) (150,028 ) Property and equipment, net $ 57,671 $ 60,163 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | The following table presents our revenue disaggregated by major source: Year ended December 30, 2018 (in thousands) PeopleReady PeopleManagement PeopleScout Consolidated Revenue from services: Contingent staffing $ 1,522,076 $ 728,254 $ — $ 2,250,330 Human resource outsourcing — — 248,877 248,877 Total company $ 1,522,076 $ 728,254 $ 248,877 $ 2,499,207 |
ACQUISITIONS AND DIVESTITURE (T
ACQUISITIONS AND DIVESTITURE (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
TMP [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table reflects our final 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 clients and future cash flows after the acquisition of TMP, and is non-deductible for income tax purposes. |
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 |
Aon Hewitt | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table reflects our final allocation of the purchase price: (in thousands) Purchase price allocation Cash purchase price, net of working capital adjustment $ 72,476 Purchase price allocated as follows: Accounts receivable $ 12,272 Prepaid expenses, deposits and other current assets 894 Customer relationships 34,900 Technologies 400 Total assets acquired 48,466 Accrued wages and benefits 1,025 Other long-term liabilities 456 Total liabilities assumed 1,481 Net identifiable assets acquired 46,985 Goodwill (1) 25,491 Total consideration allocated $ 72,476 (1) Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new clients and future cash flows after the acquisition of the RPO business of Aon Hewitt. Goodwill is deductible for income tax purposes over 15 years as of January 4, 2016. |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of January 4, 2016: (in thousands, except for estimated useful lives, in years) Estimated fair value Estimated useful lives in years Customer relationships $ 34,900 9 Technologies 400 3 Total acquired identifiable intangible assets $ 35,300 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Our assets and liabilities measured at fair value on a recurring basis consisted of the following: December 30, 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 $ 46,988 $ 46,988 $ — $ — Restricted cash and cash equivalents 55,462 55,462 — — Cash, cash equivalents and restricted cash (1) $ 102,450 $ 102,450 $ — $ — Deferred compensation mutual funds classified as available-for-sale $ 23,363 $ 23,363 $ — $ — Municipal debt securities $ 76,690 $ — $ 76,690 $ — Corporate debt securities 75,432 — 75,432 — Agency mortgage-backed securities 2,531 — 2,531 — U.S. government and agency securities 988 — 988 — Restricted investments classified as held-to-maturity $ 155,641 $ — $ 155,641 $ — 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. |
Fair Value Measurements, Nonrecurring [Table Text Block] | As a result of those measurements, we recognized impairment charges of $103.5 million during the year ended January 1, 2017, as follows: January 1, 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) Total impairment loss Goodwill $ 42,629 $ — $ — $ 42,629 $ (65,869 ) Customer relationships 11,100 — — 11,100 (28,900 ) Trade names/trademarks 3,600 — — 3,600 (8,775 ) Total $ 57,329 $ — $ — $ 57,329 $ (103,544 ) |
RESTRICTED CASH AND INVESTMEN_2
RESTRICTED CASH AND INVESTMENTS (Tables) | 12 Months Ended |
Dec. 30, 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) December 30, December 31, Cash collateral held by insurance carriers $ 24,182 $ 22,926 Restricted cash and cash equivalents 28,021 16,113 Restricted investments classified as held-to-maturity 156,618 171,752 Deferred compensation mutual funds, classified as available-for-sale 23,363 22,428 Other restricted cash and cash equivalents 3,259 6,012 Total restricted cash and investments $ 235,443 $ 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 as of December 30, 2018 and December 31, 2017 , were as follows: December 30, 2018 (in thousands) Amortized cost Gross unrealized gain Gross unrealized loss Fair value Municipal debt securities $ 76,750 $ 456 $ (516 ) $ 76,690 Corporate debt securities 76,310 30 (908 ) 75,432 Agency mortgage-backed securities 2,559 5 (33 ) 2,531 U.S. government and agency securities 999 — (11 ) 988 $ 156,618 $ 491 $ (1,468 ) $ 155,641 December 31, 2017 (in thousands) Amortized cost Gross unrealized gain Gross unrealized loss 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 $ 171,752 $ 1,324 $ (838 ) $ 172,238 |
Schedule of Unrealized Loss on Investments [Table Text Block] | 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 December 30, 2018 and December 31, 2017 , were as follows: December 30, 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 $ 12,803 $ (74 ) $ 22,638 $ (442 ) $ 35,441 $ (516 ) Corporate debt securities 22,567 (277 ) 44,463 (631 ) 67,030 (908 ) Agency mortgage-backed securities 385 — 1,375 (33 ) 1,760 (33 ) U.S. government and agency securities 988 (11 ) — — 988 (11 ) Total held-to-maturity investments $ 36,743 $ (362 ) $ 68,476 $ (1,106 ) $ 105,219 $ (1,468 ) 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: December 30, 2018 (in thousands) Amortized cost Fair value Due in one year or less $ 27,158 $ 27,014 Due after one year through five years 86,606 86,107 Due after five years through ten years 42,854 42,520 $ 156,618 $ 155,641 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | We compute depreciation using the straight-line method over the estimated useful lives of the assets as follows: Years Buildings 40 Computers and software 3 - 10 Furniture and equipment 3 - 10 Property and equipment are stated at cost and consist of the following: (in thousands) December 30, December 31, Buildings and land $ 41,300 $ 37,672 Computers and software 154,724 149,835 Furniture and equipment 16,632 15,527 Construction in progress 8,350 7,157 Gross property and equipment 221,006 210,191 Less accumulated depreciation (163,335 ) (150,028 ) Property and equipment, net $ 57,671 $ 60,163 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 30, 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 January 1, 2017 Goodwill before impairment $ 106,304 $ 100,146 $ 129,852 $ 336,302 Accumulated impairment loss (46,210 ) (50,700 ) (15,169 ) (112,079 ) Goodwill, net 60,094 49,446 114,683 224,223 Foreign currency translation — — 2,471 2,471 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 — — (3,959 ) (3,959 ) Balance at December 30, 2018 Goodwill before impairment 106,304 81,092 144,970 332,366 Accumulated impairment loss (46,210 ) (33,700 ) (15,169 ) (95,079 ) Goodwill, net $ 60,094 $ 47,392 $ 129,801 $ 237,287 (1) Effective March 12, 2018, we entered divested our PlaneTechs business. 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: Acquisitions and Divestiture . (2) Effective June 12, 2018, we acquired TMP Holdings LTD, through PeopleScout. Accordingly, the goodwill associated with the acquisition has been assigned to our PeopleScout reportable segment based on our final purchase price allocation. For additional information, see Note 3: Acquisitions and Divestiture . |
Schedule of finite-lived intangible assets | The following table presents our purchased finite-lived intangible assets: December 30, 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 $ 153,704 $ (70,887 ) $ 82,817 $ 148,114 $ (53,801 ) $ 94,313 Trade names/trademarks 2,580 (1,069 ) 1,511 4,149 (3,736 ) 413 Non-compete agreements — — — 1,400 (1,377 ) 23 Technologies 9,800 (8,720 ) 1,080 17,500 (13,588 ) 3,912 Total finite-lived intangible assets $ 166,084 $ (80,676 ) $ 85,408 $ 171,163 $ (72,502 ) $ 98,661 (1) Excludes assets that are fully amortized. |
Schedule of estimated future amortization of definite-lived intangible assets | The following table provides the estimated future amortization of finite-lived intangible assets as of December 30, 2018 : (in thousands) 2019 $ 18,986 2020 17,354 2021 14,049 2022 13,201 2023 11,593 Thereafter 10,225 Total future amortization $ 85,408 |
WORKERS' COMPENSATION INSURAN_2
WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
Reconciliation of workers' compensation claims reserve | The table below presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented as follows: (in thousands) December 30, December 31, Undiscounted workers’ compensation reserve $ 284,625 $ 293,600 Less discount on workers’ compensation reserve 18,179 19,277 Workers’ compensation reserve, net of discount 266,446 274,323 Less current portion 76,421 77,218 Long-term portion $ 190,025 $ 197,105 |
Estimated future payout of our discounted workers' compensation claims | The table below presents the estimated future payout of our discounted workers’ compensation claims reserve for the next five years and thereafter as of December 30, 2018 : (in thousands) 2019 $ 76,421 2020 41,654 2021 23,690 2022 15,236 2023 10,309 Thereafter 50,907 Sub-total 218,217 Excess claims (1) 48,229 Total $ 266,446 (1) Estimated expenses related to claims above our self-insured limits for which we have a corresponding receivable for the insurance coverage based on contractual policy agreements. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The components of our borrowings were as follows: (in thousands) December 30, December 31, Revolving Credit Facility $ 80,000 $ 95,900 Term Loan — 22,856 Total debt 80,000 118,756 Less current portion — 2,267 Long-term debt, less current portion $ 80,000 $ 116,489 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 30, 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) December 30, December 31, Cash collateral held by workers’ compensation insurance carriers $ 22,264 $ 22,148 Cash and cash equivalents held in Trust 28,021 16,113 Investments held in Trust 156,618 171,752 Letters of credit (1) 6,691 7,748 Surety bonds (2) 21,881 19,829 Total collateral commitments $ 235,475 $ 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. |
Schedule of future minimum lease payments for operating leases | Future non-cancelable minimum lease payments under our operating lease commitments as of December 30, 2018 are as follows for each of the next five years and thereafter: (in thousands) 2019 $ 8,337 2020 7,192 2021 4,990 2022 2,442 2023 1,324 Thereafter 699 Total future non-cancelable minimum lease payments $ 24,984 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of restricted and unrestricted stock and performance share units activity | Restricted and unrestricted stock awards and performance share units activity for the year ended December 30, 2018 , was as follows: (shares in thousands) Shares Weighted- average grant-date price Non-vested at beginning of period 1,321 $ 23.50 Granted 719 $ 26.87 Vested (428 ) $ 24.29 Forfeited (296 ) $ 23.01 Non-vested at the end of the period 1,316 $ 26.05 |
Schedule of share-based compensation, employee stock purchase plan | The following table summarizes transactions under our ESPP from fiscal 2018 , 2017 and 2016 : (shares in thousands) Shares Average price per share Issued during fiscal 2018 68 $ 22.17 Issued during fiscal 2017 72 $ 20.43 Issued during fiscal 2016 87 $ 17.51 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is comprised of the following: Years ended (in thousands) 2018 2017 2016 Current taxes: Federal $ 5,088 $ 12,134 $ 12,082 State 5,208 3,979 5,448 Foreign 1,542 3,545 2,677 Total current taxes 11,838 19,658 20,207 Deferred taxes: Federal (1,283 ) 3,645 (20,693 ) State 120 (195 ) (4,064 ) Foreign (766 ) (1,014 ) (539 ) Total deferred taxes (1,929 ) 2,436 (25,296 ) Provision for income taxes $ 9,909 $ 22,094 $ (5,089 ) |
Schedule of Effective Income Tax Rate Reconciliation | The items accounting for the difference between income taxes computed at the statutory federal income tax rate and income taxes reported on the Consolidated Statements of Operations and Comprehensive Income (Loss) are as follows: Years ended (in thousands, except percentages) 2018 % 2017 % 2016 % Income tax expense (benefit) based on statutory rate $ 15,889 21.0 % $ 27,140 35.0 % $ (7,119 ) 35.0 % Increase (decrease) resulting from: State income taxes, net of federal benefit 3,826 5.1 2,667 3.4 1,373 (6.8 ) Tax credits, net (12,303 ) (16.3 ) (9,964 ) (12.9 ) (17,141 ) 84.3 Transition to the U.S. Tax Cuts and Job Act (194 ) (0.3 ) 2,466 3.2 — — Non-deductible goodwill impairment charge — — — — 17,694 (87.0 ) Non-deductible/non-taxable items 1,191 1.6 1,157 1.5 630 (3.1 ) Foreign taxes 735 1.0 (342 ) (0.4 ) 993 (4.8 ) Other, net 765 1.0 (1,030 ) (1.3 ) (1,519 ) 7.4 Total taxes on income (loss) $ 9,909 13.1 % $ 22,094 28.5 % $ (5,089 ) 25.0 % |
Schedule of Income before Income Tax, Domestic and Foreign | U.S. and international components of income (loss) before tax expense (benefit) was as follows: Years ended (in thousands) 2018 2017 2016 U.S. $ 73,051 $ 69,119 $ (8,221 ) International 2,612 8,431 (12,119 ) Income (loss) before tax expense (benefit) $ 75,663 $ 77,550 $ (20,340 ) |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows: (in thousands) December 30, December 31, Deferred tax assets: Allowance for doubtful accounts $ 1,049 $ 876 Workers’ compensation 4,162 1,420 Accounts payable and other accrued expenses 3,957 4,000 Net operating loss carryforwards 2,103 2,388 Tax credit carryforwards 1,562 1,615 Accrued wages and benefits 7,016 4,644 Deferred compensation 5,438 4,484 Other 636 841 Total 25,923 20,268 Valuation allowance (2,079 ) (2,508 ) Total deferred tax asset, net of valuation allowance 23,844 17,760 Deferred tax liabilities: Prepaid expenses, deposits and other current assets (2,054 ) (2,096 ) Depreciation and amortization (17,402 ) (11,881 ) Total deferred tax liabilities (19,456 ) (13,977 ) Net deferred tax asset, end of year $ 4,388 $ 3,783 |
Summary of Tax Credit Carryforwards | The following table summarizes our net operating losses (“NOLs”) and credit carryforwards along with their respective valuation allowance as of December 30, 2018 : (in thousands) Carryover tax benefit Valuation allowance Expected benefit Year expiration begins Year-end tax attributes: State NOLs $ 1,373 $ — $ 1,373 Various Foreign NOLs 730 (730 ) — Various California Enterprise Zone credits 1,562 (1,349 ) 213 2023 Total $ 3,665 $ (2,079 ) $ 1,586 |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward | The following table summarizes the activity related to our unrecognized tax benefits: Years ended (in thousands) 2018 2017 2016 Balance, beginning of fiscal year $ 2,210 $ 2,242 $ 2,195 Increases for tax positions related to the current year 377 356 348 Reductions due to lapsed statute of limitations (397 ) (388 ) (301 ) Balance, end of fiscal year $ 2,190 $ 2,210 $ 2,242 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of net income and diluted common shares | Diluted common shares were calculated as follows: Years ended (in thousands, except per share data) 2018 2017 2016 Net income (loss) $ 65,754 $ 55,456 $ (15,251 ) Weighted average number of common shares used in basic net income (loss) per common share 39,985 41,202 41,648 Dilutive effect of non-vested restricted stock 290 239 — Weighted average number of common shares used in diluted net income (loss) per common share 40,275 41,441 41,648 Net income (loss) per common share: Basic $ 1.64 $ 1.35 $ (0.37 ) Diluted $ 1.63 $ 1.34 $ (0.37 ) Anti-dilutive shares 538 418 — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | Changes in the balance of each component of accumulated other comprehensive loss during the reporting periods were as follows: Years ended December 30, 2018 December 31, 2017 (in thousands) Foreign currency translation adjustment, net of tax (2) Unrealized gain on investments, net of tax (1) Total other comprehensive (loss), net of tax Foreign currency translation adjustment, net of tax (2) 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 (loss) (6,320 ) — (6,320 ) 3,355 1,274 4,629 Change in accounting standard cumulative-effect adjustment (3) — (1,525 ) (1,525 ) — — — Balance at end of period $ (14,649 ) $ — $ (14,649 ) $ (8,329 ) $ 1,525 $ (6,804 ) (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 year ended December 31, 2017 . (2) The tax impact on foreign currency translation adjustments for fiscal years 2018 and 2017 was de minimis. (3) 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 year ended December 31, 2017 . For additional information, see Note 1: Summary of Significant Accounting Policies . |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table presents a reconciliation of segment revenue from services to total company revenue: Years ended (in thousands) December 30, December 31, January 1, Revenue from services: PeopleReady $ 1,522,076 $ 1,511,360 $ 1,629,455 PeopleManagement 728,254 807,273 940,453 PeopleScout 248,877 190,138 180,732 Total company $ 2,499,207 $ 2,508,771 $ 2,750,640 The following table presents a reconciliation of Segment profit to income before tax expense: Years ended (in thousands) December 30, December 31, January 1, Segment profit: PeopleReady $ 85,998 $ 79,044 $ 109,063 PeopleManagement 21,627 27,216 27,557 PeopleScout 47,383 39,354 34,285 155,008 145,614 170,905 Corporate unallocated (26,066 ) (20,968 ) (23,583 ) Goodwill and intangible asset impairment charge — — (103,544 ) Work Opportunity Tax Credit processing fees (985 ) (805 ) (1,858 ) Acquisition/integration costs (2,672 ) — (6,654 ) Other costs (10,317 ) (162 ) (5,569 ) Depreciation and amortization (41,049 ) (46,115 ) (46,692 ) Income (loss) from operations 73,919 77,564 (16,995 ) Interest and other income (expense), net 1,744 (14 ) (3,345 ) Income (loss) before tax expense (benefit) $ 75,663 $ 77,550 $ (20,340 ) |
Revenue from External Customers by Geographic Areas [Table Text Block] | Our international operations are primarily in Canada, Australia and the United Kingdom. Revenue by region was as follows: Years ended (in thousands, except percentages) 2018 % 2017 % 2016 % United States $ 2,369,024 94.8 % $ 2,387,992 95.2 % $ 2,644,414 96.1 % International operations 130,183 5.2 120,779 4.8 106,226 3.9 Total revenue from services $ 2,499,207 100.0 % $ 2,508,771 100.0 % $ 2,750,640 100.0 % |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per share data) First Second Third Fourth 2018 Revenue from services $ 554,388 $ 614,301 $ 680,371 $ 650,147 Cost of services 411,120 448,717 496,053 477,717 Gross profit 143,268 165,584 184,318 172,430 Selling, general and administrative expense 125,763 134,207 145,382 145,280 Depreciation and amortization 10,090 10,101 10,586 10,272 Income from operations 7,415 21,276 28,350 16,878 Interest expense (890 ) (1,355 ) (1,357 ) (1,279 ) Interest and other income 3,094 387 1,017 2,127 Interest and other income (expense), net 2,204 (968 ) (340 ) 848 Income before tax expense 9,619 20,308 28,010 17,726 Income tax expense 864 2,576 3,630 2,839 Net income $ 8,755 $ 17,732 $ 24,380 $ 14,887 Net income per common share: Basic $ 0.22 $ 0.44 $ 0.61 $ 0.38 Diluted $ 0.22 $ 0.44 $ 0.61 $ 0.37 2017 Revenue from services $ 568,244 $ 610,122 $ 660,780 $ 669,625 Cost of services 428,815 454,842 488,761 501,880 Gross profit 139,429 155,280 172,019 167,745 Selling, general and administrative expense 121,844 124,754 131,552 132,644 Depreciation and amortization 11,174 12,287 11,189 11,465 Income from operations 6,411 18,239 29,278 23,636 Interest expense (1,232 ) (1,296 ) (1,365 ) (1,601 ) Interest and other income 1,306 1,451 1,146 1,577 Interest and other income (expense), net 74 155 (219 ) (24 ) Income before tax expense 6,485 18,394 29,059 23,612 Income tax expense 1,811 5,260 7,838 7,185 Net income $ 4,674 $ 13,134 $ 21,221 $ 16,427 Net income per common share: Basic $ 0.11 $ 0.32 $ 0.52 $ 0.41 Diluted $ 0.11 $ 0.31 $ 0.51 $ 0.40 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Advertising expense | $ 8,100 | $ 7,300 | $ 7,800 |
Change in restricted cash | 21,500 | $ 19,800 | |
Change in accounting standard cumulative-effect adjustment | $ (1,525) | 0 | |
Operating leases, maximum period afforded to each party to cancel lease agreements | 90 days | ||
Building and Building Improvements | |||
Useful life | 40 years | ||
Minimum | |||
Operating leases, renewal option period | 3 years | ||
Minimum | Computers and software | |||
Useful life | 3 years | ||
Minimum | Furniture and equipment | |||
Useful life | 3 years | ||
Maximum [Member] | |||
Operating leases, renewal option period | 5 years | ||
Maximum [Member] | Computers and software | |||
Useful life | 10 years | ||
Maximum [Member] | Furniture and equipment | |||
Useful life | 10 years | ||
Unrealized gain on investments, net of tax | |||
Change in accounting standard cumulative-effect adjustment | $ (1,525) | $ 0 | |
Accounting Standards Update 2016-02 | |||
Operating Lease, Right-of-Use Asset | 33,000 | ||
Operating Lease, Liability | $ 34,000 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | $ 650,147 | $ 680,371 | $ 614,301 | $ 554,388 | $ 669,625 | $ 660,780 | $ 610,122 | $ 568,244 | $ 2,499,207 | $ 2,508,771 | $ 2,750,640 |
PeopleReady | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | 1,522,076 | 1,511,360 | 1,629,455 | ||||||||
PeopleManagement | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | 728,254 | 807,273 | 940,453 | ||||||||
PeopleScout | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | 248,877 | $ 190,138 | $ 180,732 | ||||||||
Contingent staffing | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | 2,250,330 | ||||||||||
Contingent staffing | PeopleReady | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | 1,522,076 | ||||||||||
Contingent staffing | PeopleManagement | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | 728,254 | ||||||||||
Human resource outsourcing | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | 248,877 | ||||||||||
Human resource outsourcing | PeopleScout | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue from services | $ 248,877 |
ACQUISITIONS AND DIVESTITURE TM
ACQUISITIONS AND DIVESTITURE TMP (Details) - USD ($) $ in Thousands | Jun. 12, 2018 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Business Acquisition [Line Items] | |||||||||||||
Cash purchase price, net of working capital adjustment | $ 22,742 | $ 0 | $ 72,476 | ||||||||||
Acquisition/integration costs | 2,672 | 0 | 6,654 | ||||||||||
Goodwill | $ 237,287 | $ 226,694 | $ 237,287 | 237,287 | 226,694 | 224,223 | |||||||
Revenue from services | $ 650,147 | $ 680,371 | $ 614,301 | $ 554,388 | $ 669,625 | $ 660,780 | $ 610,122 | $ 568,244 | $ 2,499,207 | $ 2,508,771 | $ 2,750,640 | ||
TMP [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash purchase price, net of working capital adjustment | $ 22,742 | ||||||||||||
Cash Acquired from Acquisition | 7,000 | ||||||||||||
Acquisition/integration costs | 2,700 | ||||||||||||
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 | $ 31,000 | ||||||||||||
Customer relationships | TMP [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible Assets | 6,286 | ||||||||||||
Trade name/trademarks | TMP [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible Assets | $ 1,738 | ||||||||||||
Estimated useful life in years | 14 years | ||||||||||||
Employer Branding [Member] | Customer relationships | TMP [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Estimated useful life in years | 3 years | ||||||||||||
RPO [Member] | Customer relationships | TMP [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Estimated useful life in years | 7 years |
ACQUISITIONS AND DIVESTITURE Pl
ACQUISITIONS AND DIVESTITURE PlaneTechs (Details) - USD ($) $ in Thousands | Mar. 12, 2018 | Mar. 12, 2018 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Noncash or Part Noncash Divestitures [Line Items] | |||||||||||||
Divestiture of business | $ 10,587 | $ 0 | $ 0 | ||||||||||
Divestiture non-cash consideration | 798 | 0 | 0 | ||||||||||
Revenue from services | $ 650,147 | $ 680,371 | $ 614,301 | $ 554,388 | $ 669,625 | $ 660,780 | $ 610,122 | $ 568,244 | 2,499,207 | $ 2,508,771 | $ 2,750,640 | ||
PlaneTechs | |||||||||||||
Noncash or Part Noncash Divestitures [Line Items] | |||||||||||||
Divestiture of business | $ 11,400 | ||||||||||||
Divestiture, Amount of Consideration Received | 8,500 | ||||||||||||
Divestiture non-cash consideration | $ 1,600 | ||||||||||||
Debt Instrument, Periodic Payment | 100 | ||||||||||||
Gain on Disposition of Assets | $ 700 | ||||||||||||
Revenue from services | $ 8,000 |
ACQUISITIONS AND DIVESTITURE (A
ACQUISITIONS AND DIVESTITURE (Aon Narrative) (Details) - USD ($) $ in Thousands | Jan. 04, 2016 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 01, 2017 |
Business Acquisition [Line Items] | |||||||||||||
Cash purchase price, net of working capital adjustment | $ 22,742 | $ 0 | $ 72,476 | ||||||||||
Acquisition-Related and integration costs associated with a business combination | 2,672 | 0 | 6,654 | ||||||||||
Revenue from services | $ 650,147 | $ 680,371 | $ 614,301 | $ 554,388 | $ 669,625 | $ 660,780 | $ 610,122 | $ 568,244 | $ 2,499,207 | $ 2,508,771 | $ 2,750,640 | ||
Aon Hewitt | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash purchase price, net of working capital adjustment | $ 72,476 | ||||||||||||
Acquisition-Related and integration costs associated with a business combination | $ 6,600 | ||||||||||||
Revenue from services | $ 66,500 | ||||||||||||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Line of credit facility, increase (decrease), Net | $ 30,000 |
ACQUISITIONS AND DIVESTITURE _2
ACQUISITIONS AND DIVESTITURE (Aon Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Jan. 04, 2016 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Business Acquisition [Line Items] | ||||
Cash purchase price, net of working capital adjustment | $ 22,742 | $ 0 | $ 72,476 | |
Goodwill | $ 237,287 | $ 226,694 | $ 224,223 | |
Aon Hewitt | ||||
Business Acquisition [Line Items] | ||||
Cash purchase price, net of working capital adjustment | $ 72,476 | |||
Accounts receivable | 12,272 | |||
Prepaid expenses, deposits and other current assets | 894 | |||
Intangible Assets | 35,300 | |||
Total assets acquired | 48,466 | |||
Accrued wages and benefits | 1,025 | |||
Other long-term liabilities | 456 | |||
Total liabilities assumed | 1,481 | |||
Net identifiable assets acquired | 46,985 | |||
Goodwill | $ 25,491 | |||
Goodwill, expected tax deductible amount, Period | 15 years | |||
Customer relationships | Aon Hewitt | ||||
Business Acquisition [Line Items] | ||||
Intangible Assets | $ 34,900 | |||
Technologies | Aon Hewitt | ||||
Business Acquisition [Line Items] | ||||
Intangible Assets | $ 400 |
ACQUISITIONS AND DIVESTITURE _3
ACQUISITIONS AND DIVESTITURE (Aon Intangible Assets) (Details) - Aon Hewitt $ in Thousands | Jan. 04, 2016USD ($) |
Business Acquisition [Line Items] | |
Estimated fair value | $ 35,300 |
Customer relationships | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 34,900 |
Estimated useful life in years | 9 years |
Technologies | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 400 |
Estimated useful life in years | 3 years |
FAIR VALUE MEASUREMENT RECURRIN
FAIR VALUE MEASUREMENT RECURRING (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 25, 2015 |
Fair Value Measurement [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 102,450 | $ 73,831 | $ 103,222 | $ 79,811 |
Deferred compensation mutual funds classified as available-for-sale | 23,363 | 22,428 | ||
Restricted investments classified as held-to-maturity | 155,641 | 172,238 | ||
Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value Measurement [Line Items] | ||||
Cash and cash equivalents | 46,988 | 28,780 | ||
Significant other observable inputs (level 2) | ||||
Fair Value Measurement [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Significant unobservable inputs (level 3) | ||||
Fair Value Measurement [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Municipal debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 76,690 | 83,366 | ||
Corporate debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 75,432 | 83,791 | ||
Agency mortgage-backed securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 2,531 | 4,062 | ||
U.S. government and agency securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 988 | 1,019 | ||
Restricted Assets | Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted cash and cash equivalents | 55,462 | 45,051 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 102,450 | 73,831 | ||
Deferred compensation mutual funds classified as available-for-sale | 23,363 | 22,428 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | Significant other observable inputs (level 2) | ||||
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 classified as available-for-sale | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 155,641 | 172,238 | ||
Restricted Assets | Significant unobservable inputs (level 3) | ||||
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 classified as available-for-sale | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | Municipal debt securities | Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | Municipal debt securities | Significant other observable inputs (level 2) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 76,690 | 83,366 | ||
Restricted Assets | Municipal debt securities | Significant unobservable inputs (level 3) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | Corporate debt securities | Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | Corporate debt securities | Significant other observable inputs (level 2) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 75,432 | 83,791 | ||
Restricted Assets | Corporate debt securities | Significant unobservable inputs (level 3) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | Agency mortgage-backed securities | Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | Agency mortgage-backed securities | Significant other observable inputs (level 2) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 2,531 | 4,062 | ||
Restricted Assets | Agency mortgage-backed securities | Significant unobservable inputs (level 3) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | U.S. government and agency securities | Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Restricted Assets | U.S. government and agency securities | Significant other observable inputs (level 2) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 988 | 1,019 | ||
Restricted Assets | U.S. government and agency securities | Significant unobservable inputs (level 3) | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value Measurement [Line Items] | ||||
Cash and cash equivalents | 46,988 | 28,780 | ||
Estimate of Fair Value Measurement [Member] | Restricted Assets | ||||
Fair Value Measurement [Line Items] | ||||
Restricted cash and cash equivalents | 55,462 | 45,051 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 102,450 | 73,831 | ||
Deferred compensation mutual funds classified as available-for-sale | 23,363 | 22,428 | ||
Restricted investments classified as held-to-maturity | 155,641 | 172,238 | ||
Estimate of Fair Value Measurement [Member] | Restricted Assets | Municipal debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 76,690 | 83,366 | ||
Estimate of Fair Value Measurement [Member] | Restricted Assets | Corporate debt securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 75,432 | 83,791 | ||
Estimate of Fair Value Measurement [Member] | Restricted Assets | Agency mortgage-backed securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | 2,531 | 4,062 | ||
Estimate of Fair Value Measurement [Member] | Restricted Assets | U.S. government and agency securities | ||||
Fair Value Measurement [Line Items] | ||||
Restricted investments classified as held-to-maturity | $ 988 | $ 1,019 |
FAIR VALUE MEASUREMENT FAIR VAL
FAIR VALUE MEASUREMENT FAIR VALUE MEASURMENT NONRECURRING (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Fair Value Measurement, Nonrecurring [Line Items] | |||
Goodwill, Impairment Loss | $ 65,869 | ||
Goodwill and intangible assets, fair value | 57,329 | ||
Goodwill and intangible asset impairment | $ 0 | $ 0 | (103,544) |
Quoted prices in active markets for identical assets (level 1) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Goodwill, Fair Value Disclosure | 0 | ||
Goodwill and intangible assets, fair value | 0 | ||
Significant other observable inputs (level 2) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Goodwill, Fair Value Disclosure | 0 | ||
Goodwill and intangible assets, fair value | 0 | ||
Significant unobservable inputs (level 3) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Goodwill, Fair Value Disclosure | 42,629 | ||
Goodwill and intangible assets, fair value | 57,329 | ||
Customer relationships | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | 28,900 | ||
Customer relationships | Quoted prices in active markets for identical assets (level 1) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | ||
Customer relationships | Significant other observable inputs (level 2) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | ||
Customer relationships | Significant unobservable inputs (level 3) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Finite-lived Intangible Assets, Fair Value Disclosure | 11,100 | ||
Trade name/trademarks | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 8,775 | ||
Trade name/trademarks | Trade name/trademarks | Quoted prices in active markets for identical assets (level 1) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | 0 | ||
Trade name/trademarks | Trade name/trademarks | Significant other observable inputs (level 2) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | 0 | ||
Trade name/trademarks | Trade name/trademarks | Significant unobservable inputs (level 3) | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | 3,600 | ||
Estimate of Fair Value Measurement [Member] | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Goodwill, Fair Value Disclosure | 42,629 | ||
Estimate of Fair Value Measurement [Member] | Customer relationships | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Finite-lived Intangible Assets, Fair Value Disclosure | 11,100 | ||
Estimate of Fair Value Measurement [Member] | Trade name/trademarks | Trade name/trademarks | |||
Fair Value Measurement, Nonrecurring [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 3,600 |
FAIR VALUE MEASUREMENT NARRATIV
FAIR VALUE MEASUREMENT NARRATIVE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Fair Value Disclosures [Abstract] | |||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ (103,544) |
Goodwill and intangible assets | 160,800 | ||
Goodwill and intangible assets, fair value | $ 57,329 |
RESTRICTED CASH AND INVESTMEN_3
RESTRICTED CASH AND INVESTMENTS (Details) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security | |
Restricted Cash and Investments [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 93 | 83 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 36,743 | $ 73,392 |
Cash collateral held by insurance carriers | 24,182 | 22,926 |
Cash and cash equivalents held in Trust | 28,021 | 16,113 |
Investments held in Trust | 156,618 | 171,752 |
Deferred compensation mutual funds classified as available-for-sale | 23,363 | 22,428 |
Other | 3,259 | 6,012 |
Restricted cash and investments | 235,443 | 239,231 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 491 | 1,324 |
Gross Unrealized Loss | (1,468) | (838) |
Fair Value | 155,641 | 172,238 |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 155,641 | 172,238 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (362) | (445) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 68,476 | 20,600 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,106) | (393) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 105,219 | 93,992 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (1,468) | (838) |
Unrealized loss | 3,400 | |
Municipal debt securities | ||
Restricted Cash and Investments [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 12,803 | 23,078 |
Investments held in Trust | 76,750 | 82,770 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 456 | 974 |
Gross Unrealized Loss | (516) | (378) |
Fair Value | 76,690 | 83,366 |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 76,690 | 83,366 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (74) | (124) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 22,638 | 9,631 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (442) | (254) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 35,441 | 32,709 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (516) | (378) |
Corporate debt securities | ||
Restricted Cash and Investments [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 22,567 | 48,952 |
Investments held in Trust | 76,310 | 83,916 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 30 | 309 |
Gross Unrealized Loss | (908) | (434) |
Fair Value | 75,432 | 83,791 |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 75,432 | 83,791 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (277) | (311) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 44,463 | 10,081 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (631) | (123) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 67,030 | 59,033 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (908) | (434) |
Agency mortgage-backed securities | ||
Restricted Cash and Investments [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 385 | 1,362 |
Investments held in Trust | 2,559 | 4,066 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 5 | 22 |
Gross Unrealized Loss | (33) | (26) |
Fair Value | 2,531 | 4,062 |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 2,531 | 4,062 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (10) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,375 | 888 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (33) | (16) |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 1,760 | 2,250 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (33) | (26) |
U.S. government and agency securities | ||
Restricted Cash and Investments [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 988 | |
Investments held in Trust | 999 | 1,000 |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Gross Unrealized Gain | 0 | 19 |
Gross Unrealized Loss | (11) | 0 |
Fair Value | 988 | 1,019 |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Fair Value | 988 | $ 1,019 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (11) | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 988 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (11) | |
Restricted Cash and Investments | ||
Restricted Cash and Investments [Line Items] | ||
Investments held in Trust | 156,618 | |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | ||
Fair Value | 155,641 | |
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract] | ||
Due in one year or less | 27,158 | |
Due after one year through five years | 86,606 | |
Due after five years through ten years | 42,854 | |
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract] | ||
Due in one year or less | 27,014 | |
Due after one year through five years | 86,107 | |
Due after five years through ten years | 42,520 | |
Fair Value | $ 155,641 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Property and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 221,006 | $ 210,191 |
Less accumulated depreciation and amortization | (163,335) | (150,028) |
Property and equipment, net | 57,671 | 60,163 |
Buildings and land | ||
Property and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 41,300 | 37,672 |
Computers and software | ||
Property and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 154,724 | 149,835 |
Furniture and equipment | ||
Property and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 16,632 | 15,527 |
Construction in progress | ||
Property and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 8,350 | $ 7,157 |
PROPERTY AND EQUIPMENT, NET (NA
PROPERTY AND EQUIPMENT, NET (NARRATIVE) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized computer software, net | $ 19.4 | $ 21.9 | |
Depreciation expense | $ 20.3 | $ 24.7 | $ 21.6 |
- Changes in Carrying Amount of
- Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Goodwill [Line Items] | |||
Gross Carrying Amount | $ 166,084 | $ 171,163 | |
Accumulated Amortization | (80,676) | (72,502) | |
Finite-Lived Intangible Assets, Net | 85,408 | 98,661 | |
Goodwill before impairment | 332,366 | 338,773 | $ 336,302 |
Accumulated impairment loss | (95,079) | (112,079) | (112,079) |
Goodwill, net | 237,287 | 226,694 | 224,223 |
Foreign currency translation | (3,959) | 2,471 | |
Goodwill, Written off Related to Sale of Business Unit | (19,054) | ||
Goodwill, Other Increase (Decrease) | 17,000 | ||
Acquired goodwill and other | 16,606 | ||
PeopleReady | |||
Goodwill [Line Items] | |||
Goodwill before impairment | 106,304 | 106,304 | 106,304 |
Accumulated impairment loss | (46,210) | (46,210) | (46,210) |
Goodwill, net | 60,094 | 60,094 | 60,094 |
Foreign currency translation | 0 | ||
PeopleManagement | |||
Goodwill [Line Items] | |||
Goodwill before impairment | 81,092 | 100,146 | 100,146 |
Accumulated impairment loss | (33,700) | (50,700) | (50,700) |
Goodwill, net | 47,392 | 49,446 | 49,446 |
Foreign currency translation | 0 | ||
Goodwill, Written off Related to Sale of Business Unit | (19,054) | ||
Goodwill, Other Increase (Decrease) | 17,000 | ||
PeopleScout | |||
Goodwill [Line Items] | |||
Goodwill before impairment | 144,970 | 132,323 | 129,852 |
Accumulated impairment loss | (15,169) | (15,169) | (15,169) |
Goodwill, net | 129,801 | 117,154 | $ 114,683 |
Foreign currency translation | (3,959) | $ 2,471 | |
Acquired goodwill and other | $ 16,606 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | |
Amortizable intangible assets: | |||
Gross Carrying Amount | $ 166,084 | $ 171,163 | |
Accumulated Amortization | (80,676) | (72,502) | |
Net carrying amount | 85,408 | 98,661 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,019 | 18,986 | ||
2,020 | 17,354 | ||
2,021 | 14,049 | ||
2,022 | 13,201 | ||
2,023 | 11,593 | ||
Thereafter | 10,225 | ||
Net carrying amount | 85,408 | 98,661 | |
Customer relationships | |||
Amortizable intangible assets: | |||
Gross Carrying Amount | 153,704 | 148,114 | |
Accumulated Amortization | (70,887) | (53,801) | |
Net carrying amount | 82,817 | 94,313 | |
Impairment of Intangible Assets, Finite-lived | $ 28,900 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net carrying amount | 82,817 | 94,313 | |
Trade names/trademarks | |||
Amortizable intangible assets: | |||
Gross Carrying Amount | 2,580 | 4,149 | |
Accumulated Amortization | (1,069) | (3,736) | |
Net carrying amount | 1,511 | 413 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net carrying amount | 1,511 | 413 | |
Non-compete agreements | |||
Amortizable intangible assets: | |||
Gross Carrying Amount | 0 | 1,400 | |
Accumulated Amortization | 0 | (1,377) | |
Net carrying amount | 0 | 23 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net carrying amount | 0 | 23 | |
Technologies | |||
Amortizable intangible assets: | |||
Gross Carrying Amount | 9,800 | 17,500 | |
Accumulated Amortization | (8,720) | (13,588) | |
Net carrying amount | 1,080 | 3,912 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Net carrying amount | $ 1,080 | $ 3,912 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative Finite Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jun. 12, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 20,800 | $ 21,400 | $ 25,100 | |
TMP [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets | $ 8,024 | |||
TMP [Member] | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets | 6,286 | |||
TMP [Member] | Trade name/trademarks | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets | $ 1,738 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 30, 2018 | Dec. 31, 2017 |
Trade name/trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trade name/trademarks | $ 6 | $ 6 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Narrative Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Goodwill [Line Items] | |||||||||||
Goodwill, Impairment Loss | $ 65,869 | ||||||||||
Revenue from services | $ 650,147 | $ 680,371 | $ 614,301 | $ 554,388 | $ 669,625 | $ 660,780 | $ 610,122 | $ 568,244 | $ 2,499,207 | $ 2,508,771 | $ 2,750,640 |
Minimum | |||||||||||
Goodwill [Line Items] | |||||||||||
Weighted average cost of capital | 12.00% | ||||||||||
Maximum | |||||||||||
Goodwill [Line Items] | |||||||||||
Weighted average cost of capital | 17.00% | ||||||||||
Trade name/trademarks | |||||||||||
Goodwill [Line Items] | |||||||||||
Impairment of intangible assets, indefinite-lived | $ 4,500 | ||||||||||
Servicing Asset, Measurement Input | 0.170 | ||||||||||
Fair value inputs, royalty rate | 10.00% | ||||||||||
Customer relationships | |||||||||||
Goodwill [Line Items] | |||||||||||
Impairment of Intangible Assets, Finite-lived | $ 28,900 | ||||||||||
Servicing Asset, Measurement Input | 0.130 | ||||||||||
CLP and Spartan | Trade name/trademarks | |||||||||||
Goodwill [Line Items] | |||||||||||
Impairment of Intangible Assets, Finite-lived | $ 4,300 | ||||||||||
Customer Concentration Risk | Amazon | Sales Revenue, Net | |||||||||||
Goodwill [Line Items] | |||||||||||
Revenue from services | 125,000 | ||||||||||
PeopleManagement | |||||||||||
Goodwill [Line Items] | |||||||||||
Revenue from services | 728,254 | 807,273 | 940,453 | ||||||||
PeopleManagement | Staff Management SMX | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill, Impairment Loss | 33,700 | ||||||||||
PeopleManagement | PlaneTechs | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill, Impairment Loss | 17,000 | ||||||||||
PeopleScout | |||||||||||
Goodwill [Line Items] | |||||||||||
Revenue from services | $ 248,877 | $ 190,138 | 180,732 | ||||||||
PeopleScout | hrX | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill, Impairment Loss | $ 15,200 |
WORKERS' COMPENSATION INSURAN_3
WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Workers' Compensation Deductible Limit [Line Items] | ||
Undiscounted workers’ compensation reserve | $ 284,625 | $ 293,600 |
Less discount on workers' compensation reserve | 18,179 | 19,277 |
Workers' compensation reserve, net of discount | 266,446 | 274,323 |
Less current portion | 76,421 | 77,218 |
Long-term portion | $ 190,025 | $ 197,105 |
WORKERS' COMPENSATION INSURAN_4
WORKERS' COMPENSATION INSURANCE AND RESERVES -Estimated future payout (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Workers' Compensation Insurance and Reserves [Abstract] | ||
2,019 | $ 76,421 | |
2,020 | 41,654 | |
2,021 | 23,690 | |
2,022 | 15,236 | |
2,023 | 10,309 | |
Thereafter | 50,907 | |
Sub-total | 218,217 | |
Excess claims | 48,229 | $ 48,800 |
Total | $ 266,446 |
WORKERS' COMPENSATION INSURAN_5
WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Workers' Compensation Deductible Limit [Line Items] | |||
Workers' compensation claim deductible limit | $ 2,000 | ||
Weighted average period - claim payments below deductible limit | 4 years 6 months | ||
Payments made against self-insured claims | $ 64,700 | $ 66,800 | $ 73,600 |
Weighted average period - claim payments and receivables above deductible limit | 16 years | ||
Excess claims | $ 48,229 | 48,800 | |
Workers' compensation claim receivables net of valuation allowance | 44,915 | 45,048 | |
Workers' compensation expense | $ 69,200 | $ 83,700 | $ 94,000 |
Below limit | |||
Workers' Compensation Deductible Limit [Line Items] | |||
Weighted average rate | 2.00% | 1.80% |
LONG-TERM DEBT Summary of long-
LONG-TERM DEBT Summary of long-term debt (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 80,000 | $ 118,756 |
Long-term debt, less current portion | 80,000 | 116,489 |
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | ||
Debt Instrument [Line Items] | ||
Total | 80,000 | 95,900 |
Synovus Bank | ||
Debt Instrument [Line Items] | ||
Total | 0 | 22,856 |
Long-term debt, current maturities | $ 0 | $ 2,267 |
LONG-TERM DEBT Long-Term Debt N
LONG-TERM DEBT Long-Term Debt Narrative (Details) - USD ($) $ in Thousands | Jul. 13, 2018 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Revolving Credit Facility [Line Items] | ||||
Total | $ 80,000 | $ 118,756 | ||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | 22,397 | 2,267 | $ 2,456 | |
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | ||||
Revolving Credit Facility [Line Items] | ||||
Total | 80,000 | 95,900 | ||
Revolving credit facility, interest rate description | one-month | |||
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 | |||
Line of Credit Facility, Maximum Borrowing Capacity, Subject To Lender Approval | $ 450,000 | |||
Total | 80,000 | |||
Revolving credit facility, amount outstanding | $ 6,900 | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 1.50% | |||
Revolving credit facility, additional base rate | 1.00% | 2.46% | ||
Revolving credit facility, interest rate at period end | 3.96% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | Base rate | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, additional base rate | 0.50% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | Minimum | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, unused capacity, commitment fee percentage | 0.25% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 1.25% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | Minimum | Base rate | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 0.25% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | Maximum | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, unused capacity, commitment fee percentage | 0.375% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 2.50% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | Maximum | Base rate | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 1.50% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Revolving Credit Facility | Revolving Credit Facility, Liquidity Requirement Component | ||||
Revolving Credit Facility [Line Items] | ||||
Revolving credit facility, remaining borrowing capacity | $ 213,100 | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Letter of Credit [Member] | London Interbank Offered Rate (LIBOR) | ||||
Revolving Credit Facility [Line Items] | ||||
Letters of credit, additional basis rate | 0.50% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Letter of Credit [Member] | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 1.00% | |||
Bank of America, N.A. and Wells Fargo Capital Finance, LLC | Letter of Credit [Member] | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Revolving Credit Facility [Line Items] | ||||
Debt Instrument, basis spread on variable rate | 2.25% | |||
Synovus Bank | ||||
Revolving Credit Facility [Line Items] | ||||
Total | 0 | $ 22,856 | ||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | $ 22,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Workers' Compensation Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018 | Dec. 31, 2017 | |
Workers' Compensation Commitments [Line Items] | ||
Cash collateral held by workers’ compensation insurance carriers | $ 22,264 | $ 22,148 |
Cash and cash equivalents held in Trust | 28,021 | 16,113 |
Investments held in Trust | 156,618 | 171,752 |
Letters of credit | 6,691 | 7,748 |
Surety bonds | 21,881 | 19,829 |
Total collateral commitments | $ 235,475 | $ 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 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES -Operating Leases (Details) $ in Thousands | Dec. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 8,337 |
2,020 | 7,192 |
2,021 | 4,990 |
2,022 | 2,442 |
2,023 | 1,324 |
Thereafter | 699 |
Total future non-cancelable minimum lease payments | $ 24,984 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, maximum period afforded to each party to cancel lease agreements | 90 days | ||
Operating leases, rent expense | $ 27.3 | $ 25.9 | $ 26.5 |
Purchase obligation | 28 | ||
Purchase obligation, due in next twelve months | $ 14.7 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Sep. 15, 2017 | |
Class of Stock [Line Items] | ||||
Purchases and retirement of common stock | $ 34,818,000 | $ 36,680,000 | $ 5,748,000 | |
Treasury stock acquired, average cost per share (in usd per share) | $ 25.40 | |||
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 | ||
Common stock | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 100,000,000 | |||
Purchases and retirement of common stock | $ 34,800,000 | |||
Unvested restricted stock included in shares outstanding (in shares) | 700 | 800 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | May 11, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common stock shares represented by each performance share (in shares) | 1 | |||
Granted (in dollars per share) | $ 26.87 | $ 25.45 | $ 21.53 | |
Total stock-based compensation expense | $ 13.9 | $ 7.7 | $ 9.4 | |
Tax benefit from compensation expense | 2.9 | 2.7 | 3.3 | |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation not yet recognized | $ 12.6 | |||
Unrecognized stock-based compensation expense, period for recognition | 1 year 8 months 12 days | |||
Vested in Period, fair value | $ 9.9 | 6.9 | 6.6 | |
Restricted stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Compensation not yet recognized | $ 3.8 | |||
Unrecognized stock-based compensation expense, period for recognition | 1 year 9 months 18 days | |||
Vested in Period, fair value | $ 0 | $ 2.9 | $ 3.3 | |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option expiration period | 7 years | |||
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
ESPP shares reserved for purchase (in shares) | 1,000,000 | |||
Maximum employee subscription rate | 10.00% | |||
Purchase price of common stock, percent of market value | 85.00% | |||
Employee stock purchase plan requisite service period | 1 month | |||
Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (in shares) | 1,540,000 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted and Unrestricted Stock and Performance Share Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Share-based Compensation by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested at beginning of period (in shares) | 1,321 | ||
Granted (in shares) | 719 | ||
Vested (in shares) | (428) | ||
Forfeited (in shares) | (296) | ||
Non-vested at the end of the period (in shares) | 1,316 | 1,321 | |
Share-based Compensation by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested at start of the period (in dollars per share) | $ 23.50 | ||
Granted (in dollars per share) | 26.87 | $ 25.45 | $ 21.53 |
Vested (in dollars per share) | 24.29 | ||
Forfeited (in dollars per share) | 23.01 | ||
Non-vested at end of the period (in dollars per share) | $ 26.05 | $ 23.50 |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - Employee stock purchase plan - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued during period (in shares) | 68 | 72 | 87 |
Proceeds from Issuance of shares under incentive and share-based compensation plans (in dollars per share) | $ 22.17 | $ 20.43 | $ 17.51 |
DEFINED CONTRIBUTION PLANS (Det
DEFINED CONTRIBUTION PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Retirement Benefits [Abstract] | |||
Deferred compensation liability, current and noncurrent | $ 25.4 | $ 24.1 | |
Deferred compensation arrangement with individual, compensation expense | $ 5.3 | $ 6.1 | $ 2.8 |
INCOME TAXES - Narrative (Deta
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 25, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, percent | 13.10% | 28.50% | 25.00% | |
Income tax expense (benefit) based on statutory rate | 21.00% | 35.00% | 35.00% | |
Tax benefits | $ 1,100 | |||
Undistributed foreign earnings | 400 | |||
Unrecognized tax benefits | 2,190 | $ 2,210 | $ 2,242 | $ 2,195 |
Unrecognized tax benefits that would impact effective tax rate | 1,700 | |||
Unrecognized tax benefits, income tax penalties accrued | 200 | |||
Unrecognized tax benefits, interest on income taxes accrued | $ 1,000 |
INCOME TAXES INCOME TAXES - Pro
INCOME TAXES INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Current taxes: | |||||||||||
Federal | $ 5,088 | $ 12,134 | $ 12,082 | ||||||||
State | 5,208 | 3,979 | 5,448 | ||||||||
Foreign | 1,542 | 3,545 | 2,677 | ||||||||
Total current taxes | 11,838 | 19,658 | 20,207 | ||||||||
Deferred taxes: | |||||||||||
Federal | (1,283) | 3,645 | (20,693) | ||||||||
State | 120 | (195) | (4,064) | ||||||||
Foreign | (766) | (1,014) | (539) | ||||||||
Total deferred taxes | (1,929) | 2,436 | (25,296) | ||||||||
Provision for income taxes | $ 2,839 | $ 3,630 | $ 2,576 | $ 864 | $ 7,185 | $ 7,838 | $ 5,260 | $ 1,811 | $ 9,909 | $ 22,094 | $ (5,089) |
INCOME TAXES INCOME TAXES - Inc
INCOME TAXES INCOME TAXES - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense (benefit) based on statutory rate | $ 15,889 | $ 27,140 | $ (7,119) | ||||||||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation, Adjustments to Statutory Income Tax [Abstract] | |||||||||||
State income taxes, net of federal benefit | 3,826 | 2,667 | 1,373 | ||||||||
Tax credits, net | (12,303) | (9,964) | (17,141) | ||||||||
Transition to the U.S. Tax Cuts and Job Act | (194) | 2,466 | 0 | ||||||||
Non-deductible goodwill impairment charge | 0 | 0 | 17,694 | ||||||||
Non-deductible/non-taxable items | 1,191 | 1,157 | 630 | ||||||||
Foreign taxes | 735 | (342) | 993 | ||||||||
Other, net | 765 | (1,030) | (1,519) | ||||||||
Total taxes on income (loss) | $ 2,839 | $ 3,630 | $ 2,576 | $ 864 | $ 7,185 | $ 7,838 | $ 5,260 | $ 1,811 | $ 9,909 | $ 22,094 | $ (5,089) |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation, Adjustments to Statutory Income Tax Rate [Abstract] | |||||||||||
Income tax expense (benefit) based on statutory rate | 21.00% | 35.00% | 35.00% | ||||||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
State income taxes, net of federal benefit | 5.10% | 3.40% | (6.80%) | ||||||||
Tax credits, net | (16.30%) | (12.90%) | 84.30% | ||||||||
Transition to the U.S. Tax Cuts and Job Act | (0.30%) | 3.20% | 0.00% | ||||||||
Non-deductible goodwill impairment charge | 0.00% | 0.00% | (87.00%) | ||||||||
Non-deductible/non-taxable items | 1.60% | 1.50% | (3.10%) | ||||||||
Foreign taxes | 1.00% | (0.40%) | (4.80%) | ||||||||
Other, net | 1.00% | (1.30%) | 7.40% | ||||||||
Total taxes on income (loss) | 13.10% | 28.50% | 25.00% |
INCOME TAXES INCOME TAXES - Com
INCOME TAXES INCOME TAXES - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 73,051 | $ 69,119 | $ (8,221) | ||||||||
International | 2,612 | 8,431 | (12,119) | ||||||||
Income (loss) before tax expense (benefit) | $ 17,726 | $ 28,010 | $ 20,308 | $ 9,619 | $ 23,612 | $ 29,059 | $ 18,394 | $ 6,485 | $ 75,663 | $ 77,550 | $ (20,340) |
INCOME TAXES INCOME TAXES - Def
INCOME TAXES INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 1,049 | $ 876 |
Workers’ compensation | 4,162 | 1,420 |
Accounts payable and other accrued expenses | 3,957 | 4,000 |
Net operating loss carryforwards | 2,103 | 2,388 |
Tax credit carryforwards | 1,562 | 1,615 |
Accrued wages and benefits | 7,016 | 4,644 |
Deferred compensation | 5,438 | 4,484 |
Other | 636 | 841 |
Total | 25,923 | 20,268 |
Valuation allowance | (2,079) | (2,508) |
Total deferred tax asset, net of valuation allowance | 23,844 | 17,760 |
Deferred tax liabilities: | ||
Prepaid expenses, deposits and other current assets | (2,054) | (2,096) |
Depreciation and amortization | (17,402) | (11,881) |
Total deferred tax liabilities | (19,456) | (13,977) |
Net deferred tax asset, end of year | $ 4,388 | $ 3,783 |
INCOME TAXES INCOME TAXES - N
INCOME TAXES INCOME TAXES - Net Operating Losses and Credit Carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 30, 2018USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Carryover tax benefit | $ 3,665 |
Valuation allowance | (2,079) |
Expected benefit | 1,586 |
State and Local Jurisdiction | |
Operating Loss Carryforwards [Line Items] | |
Carryover tax benefit | 1,562 |
Valuation allowance | (1,349) |
Expected benefit | 213 |
Staffing Solutions Holdings, Inc. (Seaton) | Net Operating Losses | State and Local Jurisdiction | |
Operating Loss Carryforwards [Line Items] | |
Carryover tax benefit | 1,373 |
Valuation allowance | 0 |
Expected benefit | 1,373 |
Staffing Solutions Holdings, Inc. (Seaton) | Net Operating Losses | Foreign NOLs | |
Operating Loss Carryforwards [Line Items] | |
Carryover tax benefit | 730 |
Valuation allowance | (730) |
Expected benefit | $ 0 |
INCOME TAXES INCOME TAXES - Unr
INCOME TAXES INCOME TAXES - Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of fiscal year | $ 2,210 | $ 2,242 | $ 2,195 |
Increases for tax positions related to the current year | 377 | 356 | 348 |
Reductions due to lapsed statute of limitations | (397) | (388) | (301) |
Balance, end of fiscal year | $ 2,190 | $ 2,210 | $ 2,242 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ 14,887 | $ 24,380 | $ 17,732 | $ 8,755 | $ 16,427 | $ 21,221 | $ 13,134 | $ 4,674 | $ 65,754 | $ 55,456 | $ (15,251) |
Weighted average number of common shares used in basic net income (loss) per common share | 39,985 | 41,202 | 41,648 | ||||||||
Dilutive effect of non-vested restricted stock | 290 | 239 | 0 | ||||||||
Weighted average number of common shares used in diluted net income (loss) per common share | 40,275 | 41,441 | 41,648 | ||||||||
Net income (loss) per common share: | |||||||||||
Basic (in dollars per share) | $ 0.38 | $ 0.61 | $ 0.44 | $ 0.22 | $ 0.41 | $ 0.52 | $ 0.32 | $ 0.11 | $ 1.64 | $ 1.35 | $ (0.37) |
Diluted (in dollars per share) | $ 0.37 | $ 0.61 | $ 0.44 | $ 0.22 | $ 0.40 | $ 0.51 | $ 0.31 | $ 0.11 | $ 1.63 | $ 1.34 | $ (0.37) |
Anti-dilutive shares | 538 | 418 | 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ (6,804) | $ (11,433) | |
Current period other comprehensive income (loss) | (6,320) | 4,629 | $ 2,580 |
Change in accounting standard cumulative-effect adjustment | (1,525) | 0 | |
Balance at end of period | (14,649) | (6,804) | (11,433) |
Foreign currency translation adjustment | |||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (8,329) | (11,684) | |
Current period other comprehensive income (loss) | (6,320) | 3,355 | 1,830 |
Change in accounting standard cumulative-effect adjustment | 0 | 0 | |
Balance at end of period | (14,649) | (8,329) | (11,684) |
Unrealized gain (loss) on investments | |||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Balance at beginning of period | 1,525 | 251 | |
Current period other comprehensive income (loss) | 0 | 1,274 | 750 |
Change in accounting standard cumulative-effect adjustment | (1,525) | 0 | |
Balance at end of period | $ 0 | $ 1,525 | $ 251 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | $ 650,147 | $ 680,371 | $ 614,301 | $ 554,388 | $ 669,625 | $ 660,780 | $ 610,122 | $ 568,244 | $ 2,499,207 | $ 2,508,771 | $ 2,750,640 |
Operating Profit (Loss) From Segments | 155,008 | 145,614 | 170,905 | ||||||||
Goodwill and intangible asset impairment charge | 0 | 0 | (103,544) | ||||||||
Work Opportunity Tax Credit processing fees | (985) | (805) | (1,858) | ||||||||
Acquisition/integration costs | 2,672 | 0 | 6,654 | ||||||||
Other costs | 10,317 | 162 | 5,569 | ||||||||
Depreciation and amortization | (10,272) | (10,586) | (10,101) | (10,090) | (11,465) | (11,189) | (12,287) | (11,174) | (41,049) | (46,115) | (46,692) |
Income (loss) from operations | 16,878 | 28,350 | 21,276 | 7,415 | 23,636 | 29,278 | 18,239 | 6,411 | 73,919 | 77,564 | (16,995) |
Interest and other income (expense), net | 848 | (340) | (968) | 2,204 | (24) | (219) | 155 | 74 | 1,744 | (14) | (3,345) |
Income before tax expense | $ 17,726 | $ 28,010 | $ 20,308 | $ 9,619 | $ 23,612 | $ 29,059 | $ 18,394 | $ 6,485 | 75,663 | 77,550 | (20,340) |
PeopleReady | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | 1,522,076 | 1,511,360 | 1,629,455 | ||||||||
Operating Profit (Loss) From Segments | 85,998 | 79,044 | 109,063 | ||||||||
PeopleManagement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | 728,254 | 807,273 | 940,453 | ||||||||
Operating Profit (Loss) From Segments | 21,627 | 27,216 | 27,557 | ||||||||
PeopleScout | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | 248,877 | 190,138 | 180,732 | ||||||||
Operating Profit (Loss) From Segments | 47,383 | 39,354 | 34,285 | ||||||||
Corporate Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate unallocated | (26,066) | $ (20,968) | $ (23,583) | ||||||||
Contingent staffing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | 2,250,330 | ||||||||||
Contingent staffing | PeopleReady | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | 1,522,076 | ||||||||||
Contingent staffing | PeopleManagement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | 728,254 | ||||||||||
Human resource outsourcing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | 248,877 | ||||||||||
Human resource outsourcing | PeopleScout | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | $ 248,877 |
SEGMENT INFORMATION SEGMENT GEO
SEGMENT INFORMATION SEGMENT GEOGRAPHICAL (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | $ 650,147 | $ 680,371 | $ 614,301 | $ 554,388 | $ 669,625 | $ 660,780 | $ 610,122 | $ 568,244 | $ 2,499,207 | $ 2,508,771 | $ 2,750,640 |
Revenue from sales, percent | 100.00% | 100.00% | 100.00% | ||||||||
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | $ 2,369,024 | $ 2,387,992 | $ 2,644,414 | ||||||||
Revenue from sales, percent | 94.80% | 95.20% | 96.10% | ||||||||
International operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue from services | $ 130,183 | $ 120,779 | $ 106,226 | ||||||||
Revenue from sales, percent | 5.20% | 4.80% | 3.90% |
SEGMENT INFORMATION Narrative (
SEGMENT INFORMATION Narrative (Details) | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
International operations | |||
Segment Reporting Information [Line Items] | |||
Net property and equipment, percent | 7.30% | 9.10% | |
Customer A | Customer Concentration Risk | Sales Revenue, Segment | PeopleManagement | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 18.20% | ||
Customer B | Customer Concentration Risk | Sales Revenue, Segment | PeopleScout | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13.30% | ||
Customer C | Customer Concentration Risk | Sales Revenue, Segment | PeopleScout | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 14.40% | 12.80% | |
Customer D | Customer Concentration Risk | Sales Revenue, Segment | PeopleScout | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10.10% | 10.00% |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenue from services | $ 650,147 | $ 680,371 | $ 614,301 | $ 554,388 | $ 669,625 | $ 660,780 | $ 610,122 | $ 568,244 | $ 2,499,207 | $ 2,508,771 | $ 2,750,640 |
Cost of services | 477,717 | 496,053 | 448,717 | 411,120 | 501,880 | 488,761 | 454,842 | 428,815 | 1,833,607 | 1,874,298 | 2,070,922 |
Gross profit | 172,430 | 184,318 | 165,584 | 143,268 | 167,745 | 172,019 | 155,280 | 139,429 | 665,600 | 634,473 | 679,718 |
Selling, general and administrative expense | 145,280 | 145,382 | 134,207 | 125,763 | 132,644 | 131,552 | 124,754 | 121,844 | 550,632 | 510,794 | 546,477 |
Depreciation and amortization | 10,272 | 10,586 | 10,101 | 10,090 | 11,465 | 11,189 | 12,287 | 11,174 | 41,049 | 46,115 | 46,692 |
Income (loss) from operations | 16,878 | 28,350 | 21,276 | 7,415 | 23,636 | 29,278 | 18,239 | 6,411 | 73,919 | 77,564 | (16,995) |
Interest expense | (1,279) | (1,357) | (1,355) | (890) | (1,601) | (1,365) | (1,296) | (1,232) | (4,881) | (5,494) | (7,166) |
Interest and other income | 2,127 | 1,017 | 387 | 3,094 | 1,577 | 1,146 | 1,451 | 1,306 | 6,625 | 5,480 | 3,821 |
Interest and other income (expense), net | 848 | (340) | (968) | 2,204 | (24) | (219) | 155 | 74 | 1,744 | (14) | (3,345) |
Income (loss) before tax expense (benefit) | 17,726 | 28,010 | 20,308 | 9,619 | 23,612 | 29,059 | 18,394 | 6,485 | 75,663 | 77,550 | (20,340) |
Income tax expense (benefit) | 2,839 | 3,630 | 2,576 | 864 | 7,185 | 7,838 | 5,260 | 1,811 | 9,909 | 22,094 | (5,089) |
Net income (loss) | $ 14,887 | $ 24,380 | $ 17,732 | $ 8,755 | $ 16,427 | $ 21,221 | $ 13,134 | $ 4,674 | $ 65,754 | $ 55,456 | $ (15,251) |
Basic (in dollars per share) | $ 0.38 | $ 0.61 | $ 0.44 | $ 0.22 | $ 0.41 | $ 0.52 | $ 0.32 | $ 0.11 | $ 1.64 | $ 1.35 | $ (0.37) |
Diluted (in dollars per share) | $ 0.37 | $ 0.61 | $ 0.44 | $ 0.22 | $ 0.40 | $ 0.51 | $ 0.31 | $ 0.11 | $ 1.63 | $ 1.34 | $ (0.37) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 25, 2015 | |
Allowance for Doubtful Accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of the year | $ 5,026 | $ 4,344 | $ 5,160 | $ 5,902 |
Charged to expense | 9,785 | 6,903 | 8,171 | |
Release of allowance or Write-offs | (9,103) | (7,719) | (8,913) | |
Balance, end of the year | 5,026 | 4,344 | 5,160 | |
Allowance for Receivable from Insurance Provider | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of the year | 3,314 | 3,778 | 4,019 | 3,874 |
Charged to expense | 120 | 1,153 | 207 | |
Release of allowance or Write-offs | (584) | (1,394) | (62) | |
Balance, end of the year | 3,314 | 3,778 | 4,019 | |
Valuation Allowance of Deferred Tax Assets | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of the year | 2,079 | 2,508 | 2,266 | $ 3,227 |
Charged to expense | 0 | 2 | 579 | |
Release of allowance or Write-offs | (429) | 0 | (1,540) | |
Transition to the U.S. Tax Cuts and Jobs Act | 0 | 240 | 0 | |
Balance, end of the year | $ 2,079 | $ 2,508 | $ 2,266 |