Annual report pursuant to Section 13 and 15(d)

Segment Disclosures

v3.10.0.1
Segment Disclosures
12 Months Ended
Oct. 28, 2018
Segment Reporting [Abstract]  
Segment Disclosures
Segment Disclosures

We report our segment data in accordance with the provisions of ASC 280, Segment Reporting, aligning with the way the Company evaluates its business performance and manages its operations.

During the fourth quarter of fiscal 2018, in accordance with ASC 280, the Company determined that its North American Managed Service Program (“MSP”) meets the criteria to be presented as a reportable segment. To provide period over period comparability, the Company has recast the prior period North American MSP segment data to conform to the current presentation in the prior period. This change did not have any impact on the consolidated financial results for any period presented. Our current reportable segments are (i) North American Staffing, (ii) International Staffing and (iii) North American MSP. The non-reportable businesses are combined and disclosed with corporate services under the category Corporate and Other.

The Company sold the quality assurance business from within the Technology Outsourcing Services and Solutions segment on October 27, 2017, leaving the Company's call center services as the remaining activity within that segment. The Company has renamed the operating segment Volt Customer Care Solutions and its results are now reported as part of the Corporate and Other category, as it does not meet the criteria for a reportable segment under ASC 280. To provide period over period comparability, the Company has recast the prior period Technology Outsourcing Services and Solutions segment data to conform to the current presentation within the Corporate and Other category in the prior period. This change did not have any impact on the consolidated financial results for any period presented. In addition, Corporate and Other also included our previously owned Maintech, Incorporated (“Maintech”) business in the first six months of fiscal 2017.

Segment operating income (loss) is comprised of segment net revenue less cost of services, selling, administrative and other operating costs, settlement and impairment charges and restructuring and severance costs. The Company allocates to the segments all operating costs except for costs not directly related to the operating activities such as corporate-wide general and administrative costs. These costs are not allocated because doing so would not enhance the understanding of segment operating performance and are not used by management to measure segment performance.

Financial data concerning the Company’s segment revenue and operating income (loss) as well as results from Corporate and Other are summarized in the following tables (in thousands):
 
Year Ended October 28, 2018
 
Total
 
North American Staffing
 
 International Staffing
 
North American
MSP
 
Corporate and Other (1)
 
Eliminations (2)
Net revenue
$
1,039,170

 
$
860,544

 
$
117,351

 
$
29,986

 
$
35,228

 
$
(3,939
)
Cost of services
885,492

 
735,050

 
98,640

 
22,637

 
33,104

 
(3,939
)
Gross margin
153,678

 
125,494

 
18,711

 
7,349

 
2,124

 

 


 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
173,337

 
112,459

 
15,986

 
5,571

 
39,321

 

Restructuring and severance costs
8,242

 
932

 
328

 
145

 
6,837

 

Settlement and impairment charges
506

 

 

 

 
506

 

Operating income (loss)
(28,407
)
 
12,103

 
2,397

 
1,633

 
(44,540
)
 

Other income (expense), net
(3,320
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
958

 
 
 
 
 
 
 
 
 
 
Net loss
$
(32,685
)
 
 
 
 
 
 
 
 
 
 


 
Year Ended October 29, 2017
 
Total
 
North American Staffing
 
 International Staffing
 
North American MSP
 
Corporate and Other (1)
 
Eliminations (2)
Net revenue
$
1,194,436

 
$
919,260

 
$
119,762

 
$
36,783

 
$
125,089

 
$
(6,458
)
Cost of services
1,007,041

 
782,405

 
101,064

 
29,309

 
100,721

 
(6,458
)
Gross margin
187,395

 
136,855

 
18,698

 
7,474

 
24,368

 

 


 
 
 
 
 
 
 
 
 
 
Selling, administrative and other operating costs
197,130

 
119,320

 
15,836

 
4,861

 
57,113

 

Restructuring and severance costs
1,379

 
382

 
14

 

 
983

 

Gain from divestitures
(51,971
)
 

 

 

 
(51,971
)
 

Settlement and impairment charges
1,694

 

 

 

 
1,694

 

Operating income
39,163

 
17,153

 
2,848

 
2,613

 
16,549

 

Other income (expense), net
(6,950
)
 
 
 
 
 
 
 
 
 
 
Income tax provision
3,388

 
 
 
 
 
 
 
 
 
 
Net income from continuing operations
28,825

 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations, net of income taxes
(1,693
)
 
 
 
 
 
 
 
 
 
 
Net income
$
27,132

 
 
 
 
 
 
 
 
 
 

(1) Revenues are primarily derived from Volt Customer Care Solutions. In addition, fiscal 2017 included our previously owned quality assurance business as well as our information technology infrastructure services through the date of sale of Maintech in March 2017.
(2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions and our previously owned quality assurance business.


Assets of the Company by reportable operating segment are summarized in the following table (in thousands):
 
October 28,
2018
 
October 29,
2017
Assets:
 
 
 
North American Staffing
$
121,510

 
$
128,695

International Staffing
27,765

 
36,773

North American MSP
20,194

 
28,296

Corporate & Other
67,227

 
91,045

Total Assets
$
236,696

 
$
284,809



Sales to external customers and long-lived assets of the Company by geographic area are as follows (in thousands):
 
Year Ended
 
October 28,
2018
 
October 29,
2017
Net Revenue:
 
 
 
Domestic
$
916,561

 
$
1,036,567

International, principally Europe
122,609

 
157,869

Total Net Revenue
$
1,039,170

 
$
1,194,436

 
October 28,
2018
 
October 29,
2017
Long-Lived Assets:
 
 
 
Domestic
$
23,274

 
$
27,777

International
1,118

 
1,344

Total Long-Lived Assets
$
24,392

 
$
29,121



Capital expenditures and depreciation and amortization by the Company’s operating segments are as follows (in thousands):
 
Year Ended
 
October 28,
2018
 
October 29,
2017
Capital Expenditures:
 
 
 
North American Staffing
$
340

 
$
279

International Staffing
207

 
144

North American MSP
28

 
7

Corporate & Other
2,990

 
8,882

Total Capital Expenditures
$
3,565

 
$
9,312

 
 
 
 
Depreciation and Amortization:
 
 
 
North American Staffing
$
464

 
$
543

International Staffing
359

 
374

North American MSP
9

 
7

Corporate & Other
6,377

 
7,101

Total Depreciation and Amortization
$
7,209

 
$
8,025