DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 28, 2021 | Apr. 12, 2021 | |
Entity Addresses [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 28, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-14543 | |
Entity Registrant Name | TrueBlue, Inc. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1287341 | |
Entity Address, Address Line One | 1015 A Street | |
Entity Address, City or Town | Tacoma | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98402 | |
City Area Code | 253 | |
Local Phone Number | 383-9101 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | TBI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Stock Shares Outstanding (in shares) | 35,471,339 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000768899 | |
Current Fiscal Year End Date | --12-26 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 88,006 | $ 62,507 |
Accounts receivable, net of allowance of $2,462 and $2,921 | 260,108 | 278,343 |
Prepaid expenses and other current assets | 29,436 | 26,137 |
Income tax receivable | 6,461 | 11,898 |
Total current assets | 384,011 | 378,885 |
Property and equipment, net | 76,109 | 71,734 |
Restricted cash and investments | 231,178 | 240,534 |
Deferred income taxes, net | 35,058 | 30,019 |
Goodwill | 94,937 | 94,873 |
Intangible assets, net | 27,101 | 28,929 |
Operating lease right-of-use assets, net | 60,101 | 65,940 |
Workers’ compensation claims receivable, net | 53,547 | 52,934 |
Other assets, net | 17,395 | 16,729 |
Total assets | 979,437 | 980,577 |
Current liabilities: | ||
Accounts payable and other accrued expenses | 48,168 | 58,447 |
Accrued wages and benefits | 126,906 | 122,657 |
Current portion of workers’ compensation claims reserve | 62,005 | 66,007 |
Current operating lease liabilities | 13,308 | 13,938 |
Other current liabilities | 8,102 | 7,918 |
Total current liabilities | 258,489 | 268,967 |
Workers’ compensation claims reserve, less current portion | 191,989 | 189,486 |
Long-term deferred compensation liabilities | 26,470 | 26,361 |
Long-term operating lease liabilities | 53,657 | 54,797 |
Other long-term liabilities | 3,205 | 3,776 |
Total liabilities | 533,810 | 543,387 |
Commitments and contingencies (Note 6) | ||
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; 35,474 and 35,493 shares issued and outstanding | 1 | 1 |
Accumulated other comprehensive loss | (14,332) | (14,828) |
Retained earnings | 459,958 | 452,017 |
Total shareholders’ equity | 445,627 | 437,190 |
Total liabilities and shareholders’ equity | $ 979,437 | $ 980,577 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Allowance for credit loss | $ 2,462 | $ 2,921 |
Preferred stock, par value (in dollars per share) | $ 0.131 | $ 0.131 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 35,474,000 | 35,493,000 |
Common stock, shares outstanding | 35,474,000 | 35,493,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Income Statement [Abstract] | ||
Revenue from services | $ 458,706 | $ 494,252 |
Cost of services | 348,132 | 368,093 |
Gross profit | 110,574 | 126,159 |
Selling, general and administrative expense | 97,401 | 117,381 |
Depreciation and amortization | 6,962 | 9,094 |
Goodwill and intangible asset impairment charge | 0 | 175,189 |
Income (loss) from operations | 6,211 | (175,505) |
Interest and other income (expense), net | 575 | 263 |
Income (loss) before tax expense (benefit) | 6,786 | (175,242) |
Income tax expense (benefit) | (112) | (24,748) |
Net income (loss) | $ 6,898 | $ (150,494) |
Net income (loss) per common share: | ||
Basic (in dollars per share) | $ 0.20 | $ (4.04) |
Diluted (in dollars per share) | $ 0.20 | $ (4.04) |
Weighted average shares outstanding: | ||
Basic (in shares) | 34,674 | 37,255 |
Diluted (in shares) | 35,066 | 37,255 |
Other Comprehensive Income (Loss): | ||
Foreign currency translation adjustment | $ 496 | $ (6,625) |
Comprehensive income (loss) | $ 7,394 | $ (157,119) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 6,898 | $ (150,494) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 6,962 | 9,094 |
Goodwill and intangible asset impairment charge | 0 | 175,189 |
Allowance for credit losses | 207 | 3,289 |
Stock-based compensation | 3,343 | 1,508 |
Deferred income taxes | (5,002) | (23,432) |
Non-cash lease expense | 3,920 | 3,763 |
Other operating activities | (438) | 5,375 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 18,025 | 45,407 |
Income tax receivable | 4,910 | 435 |
Operating lease right-of-use asset | 3,501 | 0 |
Other assets | (4,578) | 5,958 |
Accounts payable and other accrued expenses | (9,633) | (28,443) |
Accrued wages and benefits | 4,249 | (11,733) |
Workers’ compensation claims reserve | (1,499) | (2,163) |
Operating lease liabilities | (3,320) | (3,811) |
Other liabilities | 338 | (2,334) |
Net cash provided by operating activities | 27,883 | 27,608 |
Cash flows from investing activities: | ||
Capital expenditures | (10,003) | (7,028) |
Purchases of restricted available-for-sale investments | (14) | (1,149) |
Sales of restricted available-for-sale investments | 452 | 1,269 |
Maturities of restricted held-to-maturity investments | 6,371 | 6,168 |
Net cash used in investing activities | (3,194) | (740) |
Cash flows from financing activities: | ||
Purchases and retirement of common stock | 0 | (52,348) |
Net proceeds from employee stock purchase plans | 255 | 323 |
Common stock repurchases for taxes upon vesting of restricted stock | (2,555) | (1,792) |
Net change in revolving credit facility | 0 | 256,400 |
Other | (94) | (508) |
Net cash provided by (used in) financing activities | (2,394) | 202,075 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 262 | (1,738) |
Net change in cash, cash equivalents and restricted cash | 22,557 | 227,205 |
Cash, cash equivalents and restricted cash, beginning of period | 118,612 | 92,371 |
Cash, cash equivalents and restricted cash, end of period | 141,169 | 319,576 |
Supplemental Disclosure of Cash Flow Information [Abstract] | ||
Interest | 477 | 394 |
Income taxes | (20) | (1,751) |
Operating lease liabilities | 4,142 | 4,440 |
Property and equipment purchased but not yet paid | 702 | 322 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,453 | $ 2,422 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 28, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future periods. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 27, 2020. The results of operations for the thirteen weeks ended March 28, 2021 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. Reclassifications Certain previously reported immaterial prior year amounts have been reclassified within current liabilities on our Consolidated Balance Sheets to conform to current year presentation. Recently adopted accounting standards There were no new accounting pronouncements adopted during the period that had an impact on our financial statements. Recently issued accounting pronouncements not yet adopted There are no accounting pronouncements which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Assets measured at fair value on a recurring basis Our assets measured at fair value on a recurring basis consisted of the following: March 28, 2021 (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) Cash and cash equivalents $ 88,006 $ 88,006 $ — $ — Restricted cash and cash equivalents 53,163 53,163 — — Cash, cash equivalents and restricted cash (1) $ 141,169 $ 141,169 $ — $ — Municipal debt securities $ 68,720 $ — $ 68,720 $ — Corporate debt securities 79,754 — 79,754 — Agency mortgage-backed securities 365 — 365 — U.S. government and agency securities 1,097 — 1,097 — Restricted investments classified as held-to-maturity (2) $ 149,936 $ — $ 149,936 $ — Deferred compensation investments (3) $ 5,821 $ 5,821 $ — $ — December 27, 2020 (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) Cash and cash equivalents $ 62,507 $ 62,507 $ — $ — Restricted cash and cash equivalents 56,105 56,105 — — Cash, cash equivalents and restricted cash (1) $ 118,612 $ 118,612 $ — $ — Municipal debt securities $ 70,723 $ — $ 70,723 $ — Corporate debt securities 85,937 — 85,937 — Agency mortgage-backed securities 512 — 512 — U.S. government and agency securities 1,124 — 1,124 — Restricted investments classified as held-to-maturity (2) $ 158,296 $ — $ 158,296 $ — Deferred compensation investments (3) $ 5,915 $ 5,915 $ — $ — (1) Cash, cash equivalents and restricted cash include money market funds and deposits. (2) Refer to Note 3 : Restricted Cash and Investments for additional details on our held-to-maturity debt securities. (3) Deferred compensation investments consist of mutual funds and money market funds. Refer to Note 3 : Restricted Cash and Investments for additional details on these investments. |
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS | 3 Months Ended |
Mar. 28, 2021 | |
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) March 28, December 27, Cash collateral held by insurance carriers $ 26,745 $ 26,025 Cash and cash equivalents held in Trust 25,586 29,410 Investments held in Trust 145,244 152,247 Deferred compensation investments 5,821 5,915 Company owned life insurance policies 26,950 26,267 Other restricted cash and cash equivalents 832 670 Total restricted cash and investments $ 231,178 $ 240,534 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 March 28, 2021 and December 27, 2020, were as follows: March 28, 2021 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 65,840 $ 2,880 $ — $ 68,720 Corporate debt securities 78,056 1,974 (276) 79,754 Agency mortgage-backed securities 351 14 — 365 U.S. government and agency securities 997 100 — 1,097 Total held-to-maturity investments $ 145,244 $ 4,968 $ (276) $ 149,936 December 27, 2020 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 67,287 $ 3,436 $ — $ 70,723 Corporate debt securities 83,467 2,511 (41) 85,937 Agency mortgage-backed securities 493 19 — 512 U.S. government and agency securities 1,000 124 — 1,124 Total held-to-maturity investments $ 152,247 $ 6,090 $ (41) $ 158,296 The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: March 28, 2021 (in thousands) Amortized cost Fair value Due in one year or less $ 22,519 $ 22,675 Due after one year through five years 109,541 113,285 Due after five years through ten years 13,184 13,976 Total held-to-maturity investments $ 145,244 $ 149,936 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. Deferred compensation investments and company owned life insurance policies We hold mutual funds, money market funds and company owned life insurance policies to support our deferred compensation liability. Unrealized gains and losses related to these investments still held at March 28, 2021 and March 29, 2020, included in selling general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows: Thirteen weeks ended (in thousands) March 28, March 29, Unrealized gains (losses) $ 877 $ (4,841) |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 3 Months Ended |
Mar. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION Accounts receivable allowance The activity related to the allowance for accounts receivable was as follows: Thirteen weeks ended (in thousands) March 28, March 29, Beginning balance $ 2,921 $ 4,288 Cumulative-effect adjustment (1) — 524 Current period provision 207 3,289 Write-offs (669) (1,699) Foreign currency translation 3 (23) Ending balance $ 2,462 $ 6,379 (1) As a result of our adoption of the accounting standard for credit losses, we recognized a cumulative-effect adjustment to our account receivable allowance of $0.5 million as of the beginning of the first quarter of 2020. Prepaid expenses and other current assets (in thousands) March 28, December 27, Prepaid software agreements $ 9,637 $ 8,643 Other prepaid expenses 9,105 8,631 Other current assets 10,694 8,863 Prepaid expenses and other current assets $ 29,436 $ 26,137 Accrued wages and benefits (in thousands) March 28, December 27, Deferred employer payroll tax $ 58,230 $ 55,420 Other accrued wages and benefits 68,676 67,237 Accrued wages and benefits $ 126,906 $ 122,657 On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief and Economic Security Act, which among other things, provided employer payroll tax credits for wages paid to employees who were unable to work during the COVID-19 outbreak. Additionally, we were allowed to delay payments for the employer portion of social security taxes (6.2% of taxable wages) incurred between March 27, 2020 and December 31, 2020, for both our temporary associates and permanent employees. We anticipate the deferred amount will be paid by September 15, 2021. |
WORKERS' COMPENSATION INSURANCE
WORKERS' COMPENSATION INSURANCE AND RESERVES | 3 Months Ended |
Mar. 28, 2021 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
WORKERS' COMPENSATION INSURANCE AND RESERVES | WORKERS’ COMPENSATION INSURANCE AND RESERVES We provide workers’ compensation insurance for our associates and permanent employees. The majority of our current workers’ compensation insurance policies cover claims for a particular event above a $2.0 million deductible limit, on a “per occurrence” basis. This results in our being substantially self-insured. Our workers’ compensation reserve for claims below the deductible limit is discounted to its estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. The weighted average discount rate was 1.7% and 1.8% at March 28, 2021 and December 27, 2020, respectively. Payments made against self-insured claims are made over a weighted average period of approximately 5.5 years as of March 28, 2021. The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented: (in thousands) March 28, December 27, Undiscounted workers’ compensation reserve $ 271,593 $ 273,502 Less discount on workers’ compensation reserve 17,599 18,009 Workers’ compensation reserve, net of discount 253,994 255,493 Less current portion 62,005 66,007 Long-term portion $ 191,989 $ 189,486 Payments made against self-insured claims were $11.2 million and $14.6 million for the thirteen weeks ended March 28, 2021 and March 29, 2020, 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 March 28, 2021 and December 27, 2020, the weighted average rate was 1.2% and 1.3%, respectively. The claim payments are made and the corresponding reimbursements from our insurance carriers are received over an estimated weighted average period of approximately 17 years. The discounted workers’ compensation reserve for excess claims was $54.6 million and $54.0 million, and the corresponding gross receivable for the insurance on excess claims was $53.6 million and $52.9 million as of March 28, 2021 and December 27, 2020, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Workers’ compensation commitments We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) March 28, December 27, Cash collateral held by workers’ compensation insurance carriers $ 22,434 $ 22,253 Cash and cash equivalents held in Trust 25,586 29,410 Investments held in Trust 145,244 152,247 Letters of credit (1) 6,095 6,095 Surety bonds (2) 20,831 20,616 Total collateral commitments $ 220,190 $ 230,621 (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 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 amounts recorded are immaterial and resolution of those proceedings are not expected to have a material effect on our results of operations, financial condition nor cash flows. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 28, 2021 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDER’S EQUITY | SHAREHOLDERS’ EQUITY Changes in the balance of each component of shareholders’ equity during the reporting periods were as follows: Thirteen weeks ended (in thousands) March 28, March 29, Common stock shares Beginning balance 35,493 38,593 Purchases and retirement of common stock — (2,930) Net issuance under equity plans, including tax benefits (23) 415 Stock-based compensation 4 50 Ending balance 35,474 36,128 Common stock amount Beginning balance $ 1 $ 1 Current period activity — — Ending balance 1 1 Retained earnings Beginning balance 452,017 639,210 Net income (loss) 6,898 (150,494) Purchases and retirement of common stock (1) — (52,346) Net issuance under equity plans, including tax benefits (2,300) (1,471) Stock-based compensation 3,343 1,507 Change in accounting standard cumulative-effect adjustment (2) — (602) Ending balance 459,958 435,804 Accumulated other comprehensive loss Beginning balance, net of tax (14,828) (13,238) Foreign currency translation adjustment 496 (6,625) Ending balance, net of tax (14,332) (19,863) Total shareholders’ equity ending balance $ 445,627 $ 415,942 (1) Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on our 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. (2) As a result of our adoption of the accounting standard for credit losses, we recognized a cumulative-effect adjustment to retained earnings of $0.6 million in the first quarter of 2020. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | TAXES Our income tax provision or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate and, if our estimated tax rate changes, we make a cumulative adjustment. Our quarterly tax provision and quarterly estimate of our annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting our full year pre-tax income and loss by jurisdiction, tax credits, government audit developments, changes in laws, regulations and administrative practices, and relative changes in expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items, tax credits, and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. Our effective tax rate benefit for the thirteen weeks ended March 28, 2021 was 1.7%. The difference between the statutory federal income tax rate of 21% and our effective income tax rate results primarily from the federal Work Opportunity Tax Credit (“WOTC”). WOTC is designed to encourage employers to hire workers from certain targeted groups with higher than |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 3 Months Ended |
Mar. 28, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Diluted common shares were calculated as follows: Thirteen weeks ended (in thousands, except per share data) March 28, March 29, Net income (loss) $ 6,898 $ (150,494) Weighted average number of common shares used in basic net income (loss) per common share 34,674 37,255 Dilutive effect of non-vested restricted stock 392 — Weighted average number of common shares used in diluted net income (loss) per common share 35,066 37,255 Net income (loss) per common share: Basic $ 0.20 $ (4.04) Diluted $ 0.20 $ (4.04) Anti-dilutive shares 345 602 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 28, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our operating segments 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, retail, waste and recycling, energy, hospitality, and general labor. Our PeopleManagement reportable segment provides contingent labor and outsourced industrial workforce solutions, primarily on-site at the client’s facility, through the following operating segments, which we have aggregated into one reportable segment in accordance with U.S. GAAP: • On-Site : On-site management and recruitment for the contingent industrial workforce of manufacturing, warehouse, and distribution facilities; and • Centerline : Recruitment and management of contingent and dedicated commercial drivers to the transportation and distribution industries. Our PeopleScout reportable segment provides high-volume, permanent employee recruitment process outsourcing, employer branding services 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 RPO : Outsourced recruitment of permanent employees on behalf of clients and employer branding services; and • PeopleScout MSP : Management of multiple third-party staffing vendors on behalf of clients. The following table presents our revenue disaggregated by major source and segment and a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended (in thousands) March 28, March 29, Revenue from services: Contingent staffing PeopleReady $ 260,392 $ 299,294 PeopleManagement 151,754 141,614 Human resource outsourcing PeopleScout 46,560 53,344 Total company $ 458,706 $ 494,252 The following table presents a reconciliation of segment profit to income (loss) before tax expense (benefit): Thirteen weeks ended (in thousands) March 28, March 29, Segment profit (loss): PeopleReady $ 11,860 $ 7,655 PeopleManagement 3,116 (314) PeopleScout 4,037 2,508 Total segment profit 19,013 9,849 Corporate unallocated (5,619) (5,209) Work Opportunity Tax Credit processing fees (135) (135) Amortization of software as a service assets (673) (552) Goodwill and intangible asset impairment charge — (175,189) Workforce reduction costs (70) (1,308) COVID-19 government subsidies, net 1,743 — Other benefits (costs) (1,086) 6,133 Depreciation and amortization (6,962) (9,094) Income (loss) from operations 6,211 (175,505) Interest expense and other income, net 575 263 Income (loss) before tax expense (benefit) $ 6,786 $ (175,242) Asset information by reportable segment is not presented since we do not manage our segments on a balance sheet basis. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 28, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future periods. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 27, 2020. The results of operations for the thirteen weeks ended March 28, 2021 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. |
Recently adopted accounting standards and recently issued accounting pronouncements not yet adopted | Recently adopted accounting standards There were no new accounting pronouncements adopted during the period that had an impact on our financial statements. Recently issued accounting pronouncements not yet adopted There are no accounting pronouncements which have not yet been adopted that are expected to have a significant impact on our financial statements and related disclosures. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Our assets measured at fair value on a recurring basis consisted of the following: March 28, 2021 (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) Cash and cash equivalents $ 88,006 $ 88,006 $ — $ — Restricted cash and cash equivalents 53,163 53,163 — — Cash, cash equivalents and restricted cash (1) $ 141,169 $ 141,169 $ — $ — Municipal debt securities $ 68,720 $ — $ 68,720 $ — Corporate debt securities 79,754 — 79,754 — Agency mortgage-backed securities 365 — 365 — U.S. government and agency securities 1,097 — 1,097 — Restricted investments classified as held-to-maturity (2) $ 149,936 $ — $ 149,936 $ — Deferred compensation investments (3) $ 5,821 $ 5,821 $ — $ — December 27, 2020 (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) Cash and cash equivalents $ 62,507 $ 62,507 $ — $ — Restricted cash and cash equivalents 56,105 56,105 — — Cash, cash equivalents and restricted cash (1) $ 118,612 $ 118,612 $ — $ — Municipal debt securities $ 70,723 $ — $ 70,723 $ — Corporate debt securities 85,937 — 85,937 — Agency mortgage-backed securities 512 — 512 — U.S. government and agency securities 1,124 — 1,124 — Restricted investments classified as held-to-maturity (2) $ 158,296 $ — $ 158,296 $ — Deferred compensation investments (3) $ 5,915 $ 5,915 $ — $ — (1) Cash, cash equivalents and restricted cash include money market funds and deposits. (2) Refer to Note 3 : Restricted Cash and Investments for additional details on our held-to-maturity debt securities. (3) Deferred compensation investments consist of mutual funds and money market funds. Refer to Note 3 : Restricted Cash and Investments for additional details on these investments. |
RESTRICTED CASH AND INVESTMEN_2
RESTRICTED CASH AND INVESTMENTS (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
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) March 28, December 27, Cash collateral held by insurance carriers $ 26,745 $ 26,025 Cash and cash equivalents held in Trust 25,586 29,410 Investments held in Trust 145,244 152,247 Deferred compensation investments 5,821 5,915 Company owned life insurance policies 26,950 26,267 Other restricted cash and cash equivalents 832 670 Total restricted cash and investments $ 231,178 $ 240,534 |
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 March 28, 2021 and December 27, 2020, were as follows: March 28, 2021 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 65,840 $ 2,880 $ — $ 68,720 Corporate debt securities 78,056 1,974 (276) 79,754 Agency mortgage-backed securities 351 14 — 365 U.S. government and agency securities 997 100 — 1,097 Total held-to-maturity investments $ 145,244 $ 4,968 $ (276) $ 149,936 December 27, 2020 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Municipal debt securities $ 67,287 $ 3,436 $ — $ 70,723 Corporate debt securities 83,467 2,511 (41) 85,937 Agency mortgage-backed securities 493 19 — 512 U.S. government and agency securities 1,000 124 — 1,124 Total held-to-maturity investments $ 152,247 $ 6,090 $ (41) $ 158,296 |
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: March 28, 2021 (in thousands) Amortized cost Fair value Due in one year or less $ 22,519 $ 22,675 Due after one year through five years 109,541 113,285 Due after five years through ten years 13,184 13,976 Total held-to-maturity investments $ 145,244 $ 149,936 |
Schedule of unrealized gain (loss) on equity investments | Unrealized gains and losses related to these investments still held at March 28, 2021 and March 29, 2020, included in selling general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows: Thirteen weeks ended (in thousands) March 28, March 29, Unrealized gains (losses) $ 877 $ (4,841) |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for credit losses | The activity related to the allowance for accounts receivable was as follows: Thirteen weeks ended (in thousands) March 28, March 29, Beginning balance $ 2,921 $ 4,288 Cumulative-effect adjustment (1) — 524 Current period provision 207 3,289 Write-offs (669) (1,699) Foreign currency translation 3 (23) Ending balance $ 2,462 $ 6,379 (1) As a result of our adoption of the accounting standard for credit losses, we recognized a cumulative-effect adjustment to our account receivable allowance of $0.5 million as of the beginning of the first quarter of 2020. |
Prepaid expenses and other current assets | Prepaid expenses and other current assets (in thousands) March 28, December 27, Prepaid software agreements $ 9,637 $ 8,643 Other prepaid expenses 9,105 8,631 Other current assets 10,694 8,863 Prepaid expenses and other current assets $ 29,436 $ 26,137 |
Accrued wages and benefits | Accrued wages and benefits (in thousands) March 28, December 27, Deferred employer payroll tax $ 58,230 $ 55,420 Other accrued wages and benefits 68,676 67,237 Accrued wages and benefits $ 126,906 $ 122,657 |
WORKERS' COMPENSATION INSURAN_2
WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Workers' Compensation Insurance and Reserves [Abstract] | |
Reconciliation of workers' compensation claims reserve | The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented: (in thousands) March 28, December 27, Undiscounted workers’ compensation reserve $ 271,593 $ 273,502 Less discount on workers’ compensation reserve 17,599 18,009 Workers’ compensation reserve, net of discount 253,994 255,493 Less current portion 62,005 66,007 Long-term portion $ 191,989 $ 189,486 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
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) March 28, December 27, Cash collateral held by workers’ compensation insurance carriers $ 22,434 $ 22,253 Cash and cash equivalents held in Trust 25,586 29,410 Investments held in Trust 145,244 152,247 Letters of credit (1) 6,095 6,095 Surety bonds (2) 20,831 20,616 Total collateral commitments $ 220,190 $ 230,621 (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 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Shareholders' Equity [Abstract] | |
Schedule of Stockholders Equity | Changes in the balance of each component of shareholders’ equity during the reporting periods were as follows: Thirteen weeks ended (in thousands) March 28, March 29, Common stock shares Beginning balance 35,493 38,593 Purchases and retirement of common stock — (2,930) Net issuance under equity plans, including tax benefits (23) 415 Stock-based compensation 4 50 Ending balance 35,474 36,128 Common stock amount Beginning balance $ 1 $ 1 Current period activity — — Ending balance 1 1 Retained earnings Beginning balance 452,017 639,210 Net income (loss) 6,898 (150,494) Purchases and retirement of common stock (1) — (52,346) Net issuance under equity plans, including tax benefits (2,300) (1,471) Stock-based compensation 3,343 1,507 Change in accounting standard cumulative-effect adjustment (2) — (602) Ending balance 459,958 435,804 Accumulated other comprehensive loss Beginning balance, net of tax (14,828) (13,238) Foreign currency translation adjustment 496 (6,625) Ending balance, net of tax (14,332) (19,863) Total shareholders’ equity ending balance $ 445,627 $ 415,942 (1) Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on our 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. (2) As a result of our adoption of the accounting standard for credit losses, we recognized a cumulative-effect adjustment to retained earnings of $0.6 million in the first quarter of 2020. |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of net income (loss) and diluted common shares | Diluted common shares were calculated as follows: Thirteen weeks ended (in thousands, except per share data) March 28, March 29, Net income (loss) $ 6,898 $ (150,494) Weighted average number of common shares used in basic net income (loss) per common share 34,674 37,255 Dilutive effect of non-vested restricted stock 392 — Weighted average number of common shares used in diluted net income (loss) per common share 35,066 37,255 Net income (loss) per common share: Basic $ 0.20 $ (4.04) Diluted $ 0.20 $ (4.04) Anti-dilutive shares 345 602 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 28, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following table presents our revenue disaggregated by major source and segment and a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended (in thousands) March 28, March 29, Revenue from services: Contingent staffing PeopleReady $ 260,392 $ 299,294 PeopleManagement 151,754 141,614 Human resource outsourcing PeopleScout 46,560 53,344 Total company $ 458,706 $ 494,252 The following table presents a reconciliation of segment profit to income (loss) before tax expense (benefit): Thirteen weeks ended (in thousands) March 28, March 29, Segment profit (loss): PeopleReady $ 11,860 $ 7,655 PeopleManagement 3,116 (314) PeopleScout 4,037 2,508 Total segment profit 19,013 9,849 Corporate unallocated (5,619) (5,209) Work Opportunity Tax Credit processing fees (135) (135) Amortization of software as a service assets (673) (552) Goodwill and intangible asset impairment charge — (175,189) Workforce reduction costs (70) (1,308) COVID-19 government subsidies, net 1,743 — Other benefits (costs) (1,086) 6,133 Depreciation and amortization (6,962) (9,094) Income (loss) from operations 6,211 (175,505) Interest expense and other income, net 575 263 Income (loss) before tax expense (benefit) $ 6,786 $ (175,242) |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 | Mar. 29, 2020 | Dec. 29, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ 141,169 | $ 118,612 | $ 319,576 | $ 92,371 |
Restricted investments classified as held-to-maturity | 149,936 | 158,296 | ||
Deferred compensation investments | 5,821 | 5,915 | ||
Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 68,720 | 70,723 | ||
Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 79,754 | 85,937 | ||
Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 365 | 512 | ||
U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 1,097 | 1,124 | ||
Fair value, recurring | Total fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 88,006 | 62,507 | ||
Fair value, recurring | Total fair value | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 53,163 | 56,105 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 141,169 | 118,612 | ||
Restricted investments classified as held-to-maturity | 149,936 | 158,296 | ||
Deferred compensation investments | 5,821 | 5,915 | ||
Fair value, recurring | Total fair value | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 68,720 | 70,723 | ||
Fair value, recurring | Total fair value | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 79,754 | 85,937 | ||
Fair value, recurring | Total fair value | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 365 | 512 | ||
Fair value, recurring | Total fair value | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 1,097 | 1,124 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 88,006 | 62,507 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 53,163 | 56,105 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 141,169 | 118,612 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Deferred compensation investments | 5,821 | 5,915 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Quoted prices in active markets for identical assets (level 1) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant other observable inputs (level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 0 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 149,936 | 158,296 | ||
Deferred compensation investments | 0 | 0 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 68,720 | 70,723 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 79,754 | 85,937 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 365 | 512 | ||
Fair value, recurring | Significant other observable inputs (level 2) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 1,097 | 1,124 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash and cash equivalents | 0 | 0 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 0 | ||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Deferred compensation investments | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Municipal debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | Agency mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | 0 | 0 | ||
Fair value, recurring | Significant unobservable inputs (level 3) | Restricted assets | U.S. government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted investments classified as held-to-maturity | $ 0 | $ 0 |
RESTRICTED CASH AND INVESTMEN_3
RESTRICTED CASH AND INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2021 | Mar. 29, 2020 | Dec. 27, 2020 | |
Restricted Cash and Investments [Line Items] | |||
Cash collateral held by insurance carriers | $ 26,745 | $ 26,025 | |
Cash and cash equivalents held in Trust | 25,586 | 29,410 | |
Investments held in Trust | 145,244 | 152,247 | |
Deferred compensation investments | 5,821 | 5,915 | |
Company owned life insurance policies | 26,950 | 26,267 | |
Other restricted cash and cash equivalents | 832 | 670 | |
Restricted cash and investments | 231,178 | 240,534 | |
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||
Amortized cost of held-to-maturity investments | 145,244 | 152,247 | |
Gross unrealized gains | 4,968 | 6,090 | |
Gross unrealized losses | (276) | (41) | |
Fair value | 149,936 | 158,296 | |
Held-to-maturity securities, amortized cost [Abstract] | |||
Amortized cost of held-to-maturity investments | 145,244 | 152,247 | |
Held-to-maturity securities, fair value [Abstract] | |||
Fair value | 149,936 | 158,296 | |
Unrealized gains (losses) on Investments | (877) | $ (4,841) | |
Municipal debt securities | |||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||
Amortized cost of held-to-maturity investments | 65,840 | 67,287 | |
Gross unrealized gains | 2,880 | 3,436 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 68,720 | 70,723 | |
Held-to-maturity securities, amortized cost [Abstract] | |||
Amortized cost of held-to-maturity investments | 65,840 | 67,287 | |
Held-to-maturity securities, fair value [Abstract] | |||
Fair value | 68,720 | 70,723 | |
Corporate debt securities | |||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||
Amortized cost of held-to-maturity investments | 78,056 | 83,467 | |
Gross unrealized gains | 1,974 | 2,511 | |
Gross unrealized losses | (276) | (41) | |
Fair value | 79,754 | 85,937 | |
Held-to-maturity securities, amortized cost [Abstract] | |||
Amortized cost of held-to-maturity investments | 78,056 | 83,467 | |
Held-to-maturity securities, fair value [Abstract] | |||
Fair value | 79,754 | 85,937 | |
Agency mortgage-backed securities | |||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||
Amortized cost of held-to-maturity investments | 351 | 493 | |
Gross unrealized gains | 14 | 19 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 365 | 512 | |
Held-to-maturity securities, amortized cost [Abstract] | |||
Amortized cost of held-to-maturity investments | 351 | 493 | |
Held-to-maturity securities, fair value [Abstract] | |||
Fair value | 365 | 512 | |
U.S. government and agency securities | |||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||
Amortized cost of held-to-maturity investments | 997 | 1,000 | |
Gross unrealized gains | 100 | 124 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 1,097 | 1,124 | |
Held-to-maturity securities, amortized cost [Abstract] | |||
Amortized cost of held-to-maturity investments | 997 | 1,000 | |
Held-to-maturity securities, fair value [Abstract] | |||
Fair value | 1,097 | $ 1,124 | |
Restricted cash and investments | |||
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract] | |||
Amortized cost of held-to-maturity investments | 145,244 | ||
Fair value | 149,936 | ||
Held-to-maturity securities, amortized cost [Abstract] | |||
Due in one year or less | 22,519 | ||
Due after one year through five years | 109,541 | ||
Due after five years through ten years | 13,184 | ||
Amortized cost of held-to-maturity investments | 145,244 | ||
Held-to-maturity securities, fair value [Abstract] | |||
Due in one year or less | 22,675 | ||
Due after one year through five years | 113,285 | ||
Due after five years through ten years | 13,976 | ||
Fair value | $ 149,936 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION - Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 28, 2021 | Mar. 29, 2020 | Dec. 27, 2020 | Dec. 29, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 2,462 | $ 6,379 | $ 2,921 | $ 4,288 |
Allowance for credit losses | 207 | 3,289 | ||
Write-offs | (669) | (1,699) | ||
Foreign currency translation | 3 | (23) | ||
Ending balance | $ 2,462 | $ 6,379 | ||
Cumulative-effect adjustment | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 0 | $ 524 |
SUPPLEMENTAL BALANCE SHEET IN_4
SUPPLEMENTAL BALANCE SHEET INFORMATION - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid software agreements | $ 9,637 | $ 8,643 |
Other prepaid expenses | 9,105 | 8,631 |
Other current assets | 10,694 | 8,863 |
Prepaid expenses and other current assets | $ 29,436 | $ 26,137 |
SUPPLEMENTAL BALANCE SHEET IN_5
SUPPLEMENTAL BALANCE SHEET INFORMATION - Accrued wages and benefits (Details) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred employer payroll tax | $ 58,230 | $ 55,420 |
Other accrued wages and benefits | 68,676 | 67,237 |
Accrued wages and benefits | $ 126,906 | $ 122,657 |
WORKERS' COMPENSATION INSURAN_3
WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) - USD ($) $ in Thousands | Mar. 28, 2021 | Dec. 27, 2020 |
Workers' Compensation Insurance and Reserves [Abstract] | ||
Undiscounted workers’ compensation reserve | $ 271,593 | $ 273,502 |
Less discount on workers’ compensation reserve | 17,599 | 18,009 |
Workers' compensation reserve, net of discount | 253,994 | 255,493 |
Less current portion | 62,005 | 66,007 |
Long-term portion | $ 191,989 | $ 189,486 |
WORKERS' COMPENSATION INSURAN_4
WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 28, 2021 | Mar. 29, 2020 | Jun. 28, 2020 | Dec. 27, 2020 | |
Workers' Compensation Deductible Limit [Line Items] | ||||
Workers' compensation claim deductible limit | $ 2 | |||
Weighted average period for claim payments below deductible limit | 5 years 6 months | |||
Payments made against self-insured claims | $ 11.2 | $ 14.6 | ||
Weighted average period for claim payments and receivables above deductible limit | 17 years | |||
Workers' compensation reserve for excess claims | $ 54.6 | $ 54 | ||
Worker's compensation receivable for excess claims | 53.6 | $ 52.9 | ||
Workers compensation expense | $ 10.1 | $ 14.3 | ||
Below limit | ||||
Workers' Compensation Deductible Limit [Line Items] | ||||
Workers' compensation discount | 1.70% | 1.80% | ||
Above Limit | ||||
Workers' Compensation Deductible Limit [Line Items] | ||||
Workers' compensation discount | 1.20% | 1.30% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Dec. 27, 2020 | |
Workers' Compensation Commitments [Line Items] | ||
Cash collateral held by workers’ compensation insurance carriers | $ 22,434 | $ 22,253 |
Cash and cash equivalents held in Trust | 25,586 | 29,410 |
Investments held in Trust | 145,244 | 152,247 |
Letters of credit | 6,095 | 6,095 |
Surety bonds | 20,831 | 20,616 |
Total collateral commitments | $ 220,190 | $ 230,621 |
Surety bonds annual fee limit as a percentage 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 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 28, 2021 | Mar. 29, 2020 | Dec. 27, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 35,493 | ||
Ending balance (in shares) | 35,474 | ||
Beginning balance | $ 437,190 | ||
Net income (loss) | 6,898 | $ (150,494) | |
Change in accounting standard cumulative-effect adjustment | 459,958 | $ 452,017 | |
Foreign currency translation adjustment | 496 | (6,625) | |
Ending balance, net of tax | $ 445,627 | $ 415,942 | |
Common stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 35,493 | 38,593 | |
Purchases and retirement of common stock (in shares) | 0 | 2,930 | |
Net issuances under equity plans, including tax benefits (in shares) | (23) | 415 | |
Stock-based compensation (in shares) | 4 | 50 | |
Ending balance (in shares) | 35,474 | 36,128 | |
Beginning balance | $ 1 | $ 1 | |
Ending balance, net of tax | 1 | 1 | |
Retained earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 452,017 | 639,210 | |
Net income (loss) | 6,898 | (150,494) | |
Purchases and retirement of common stock | 0 | (52,346) | |
Net issuance under equity plans, including tax benefits | (2,300) | (1,471) | |
Stock-based compensation | 3,343 | 1,507 | |
Ending balance, net of tax | 459,958 | 435,804 | |
Retained earnings | Cumulative-effect adjustment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Change in accounting standard cumulative-effect adjustment | 0 | (602) | |
Accumulated other comprehensive loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (14,828) | (13,238) | |
Foreign currency translation adjustment | 496 | (6,625) | |
Ending balance, net of tax | $ (14,332) | $ (19,863) |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended |
Mar. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Effective income tax rate | (1.70%) |
Statutory federal income tax rate | 21.00% |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 6,898 | $ (150,494) |
Weighted average number of common shares used in basic net income (loss) per common share | 34,674 | 37,255 |
Dilutive effect of non-vested restricted stock | 392 | 0 |
Weighted average number of common shares used in diluted net income (loss) per common share | 35,066 | 37,255 |
Net income (loss) per common share: | ||
Basic (in dollars per share) | $ 0.20 | $ (4.04) |
Diluted (in dollars per share) | $ 0.20 | $ (4.04) |
Anti-dilutive shares | 345 | 602 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2021 | Mar. 29, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 458,706 | $ 494,252 |
Segment profit | 19,013 | 9,849 |
Work Opportunity Tax Credit processing fees | (135) | (135) |
Amortization of software as a service assets | (673) | (552) |
Goodwill and intangible asset impairment charge | 0 | (175,189) |
Workforce reduction costs | (70) | (1,308) |
COVID-19 government subsidies, net | 1,743 | 0 |
Other benefits (costs) | (1,086) | 6,133 |
Depreciation and amortization | (6,962) | (9,094) |
Income (loss) from operations | 6,211 | (175,505) |
Interest expense and other income, net | 575 | 263 |
Income (loss) before tax expense (benefit) | 6,786 | (175,242) |
PeopleReady | ||
Segment Reporting Information [Line Items] | ||
Segment profit | 11,860 | 7,655 |
PeopleManagement | ||
Segment Reporting Information [Line Items] | ||
Segment profit | 3,116 | (314) |
PeopleScout | ||
Segment Reporting Information [Line Items] | ||
Segment profit | 4,037 | 2,508 |
Corporate unallocated | ||
Segment Reporting Information [Line Items] | ||
Corporate unallocated | (5,619) | (5,209) |
Contingent staffing | PeopleReady | ||
Segment Reporting Information [Line Items] | ||
Revenue | 260,392 | 299,294 |
Contingent staffing | PeopleManagement | ||
Segment Reporting Information [Line Items] | ||
Revenue | 151,754 | 141,614 |
Human resource outsourcing | PeopleScout | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 46,560 | $ 53,344 |