Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.20.1
Revenue Recognition
6 Months Ended
May 03, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Revenue Recognition

Revenue Recognition

All of the Company’s revenue and trade receivables are generated from contracts with customers. Revenue is recognized when control of the promised services is transferred to the Company's customers at an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company's revenue is recorded net of any sales or other similar taxes collected from its customers.

Revenue Service Types

Staffing Services
Volt’s primary service is providing contingent (temporary) workers to its customers. These services are primarily provided through direct agreements with customers, and Volt provides these services using its employees and, in some cases, by subcontracting with other vendors of contingent workers. Volt’s costs in providing these services consist of the wages and benefits provided to the contingent workers as well as the recruiting costs, payroll department costs and other administrative costs.

Direct Placement Services
Direct placement services include providing qualified candidates to the Company's customers to hire on a permanent basis. Direct placement revenue is recognized net of a reserve for permanent placement candidates that do not remain with the customer through the contingency period, which is typically 60 days or less. This contingency is estimated based on historical data and recorded as a refund liability.

Managed Service Programs ("MSP")
The Company's MSP programs provide comprehensive solutions for delivery of contingent labor for assignment to customers, including supplier and worker sourcing, selecting, qualifying, on/off-boarding, time and expense recordation, reporting and approved invoicing and payment processing procedures. The Company’s fee for these MSP services is a fixed percentage of the staffing services spend that is managed through the program.

Disaggregation of Revenues

The following table presents our segment revenues disaggregated by service type (in thousands):
 
Three Months Ended May 3, 2020
Segment
Total
North American Staffing
International Staffing
North American
MSP
Corporate and Other
Eliminations
Service Revenues:
 
 
 
 
 
 
Staffing Services
$
199,443

$
171,966

$
21,499

$
6,137

$
187

$
(346
)
Direct Placement Services
3,151

1,420

875

856



Managed Service Programs
4,681


1,929

2,752



 
$
207,275

$
173,386

$
24,303

$
9,745

$
187

$
(346
)
 
 
 
 
 
 
 
Geographical Markets:
 
 
 
 
 
 
Domestic
$
181,870

$
172,548

$

$
9,648

$

$
(326
)
International
25,405

838

24,303

97

187

(20
)
 
$
207,275

$
173,386

$
24,303

$
9,745

$
187

$
(346
)
 
Three Months Ended April 28, 2019
Segment
Total
North American Staffing
International Staffing
North American
MSP
Corporate and Other (1)
Eliminations
Service Revenues:
 
 
 
 
 
 
Staffing Services
$
239,406

$
206,771

$
26,953

$
5,776

$
174

$
(268
)
Direct Placement Services
3,601

2,100

1,179

674


(352
)
Managed Service Programs
3,806


677

3,129



Call Center Services
5,257




5,257


 
$
252,070

$
208,871

$
28,809

$
9,579

$
5,431

$
(620
)
 
 
 
 
 
 
 
Geographical Markets:
 
 
 
 
 
 
Domestic
$
222,146

$
208,049

$

$
9,439

$
5,257

$
(599
)
International
29,924

822

28,809

140

174

(21
)
 
$
252,070

$
208,871

$
28,809

$
9,579

$
5,431

$
(620
)

 
Six Months Ended May 3, 2020
Segment
Total
North American Staffing
International Staffing
North American
MSP
Corporate and Other
Eliminations
Service Revenues:
 
 
 
 
 
 
Staffing Services
$
409,486

$
352,829

$
45,106

$
11,931

$
390

$
(770
)
Direct Placement Services
6,368

2,952

1,883

1,533



Managed Service Programs
9,187


3,537

5,650



 
$
425,041

$
355,781

$
50,526

$
19,114

$
390

$
(770
)
 
 
 
 
 
 
 
Geographical Markets:
 
 
 
 
 
 
Domestic
$
372,553

$
354,316

$

$
18,966

$

$
(729
)
International
52,488

1,465

50,526

148

390

(41
)
 
$
425,041

$
355,781

$
50,526

$
19,114

$
390

$
(770
)


 
Six Months Ended April 28, 2019
Segment
Total
North American Staffing
International Staffing
North American
MSP
Corporate and Other (1)
Eliminations
Service Revenues:
 
 
 
 
 
 
Staffing Services
$
478,139

$
416,405

$
51,586

$
10,385

$
346

$
(583
)
Direct Placement Services
6,954

4,314

2,042

1,376


(778
)
Managed Service Programs
7,482


1,447

6,035



Call Center Services
12,931




12,931


 
$
505,506

$
420,719

$
55,075

$
17,796

$
13,277

$
(1,361
)
 
 
 
 
 
 
 
Geographical Markets:
 
 
 
 
 
 
Domestic
$
448,300

$
419,157

$

$
17,531

$
12,931

$
(1,319
)
International
57,206

1,562

55,075

265

346

(42
)
 
$
505,506

$
420,719

$
55,075

$
17,796

$
13,277

$
(1,361
)

(1) Includes the revenues from Volt's Customer Care Solutions business through the time of exit in June 2019

Unsatisfied Performance Obligations

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which they will recognize revenue at the amount to which it has the right to invoice for services performed. Unsatisfied performance obligations for contracts not meeting the aforementioned criteria are immaterial.

Accounts Receivable, Contract Assets and Contract Liabilities

The Company records accounts receivable when its right to consideration becomes unconditional and records a sales allowance as a liability. As of May 3, 2020, the change in the reserve balance from November 3, 2019 was minimal. Contract assets primarily relate to the Company's rights to consideration for services provided that are conditional on satisfaction of future performance obligations. The Company records contract liabilities when payments are made or due prior to the related performance obligations being satisfied. The current portion of contract liabilities is included in Accrued insurance and other in the Condensed Consolidated Balance Sheets. The Company does not have any material contract assets or long-term contract liabilities as of May 3, 2020 and November 3, 2019.

Economic Factors

The Company's operations are subject to variations in the economic condition and regulatory environment in their jurisdictions of operations. Adverse economic conditions may severely reduce the demand for the Company’s services and directly impact the revenue. In addition, the Company faces risks in complying with various legal requirements and unpredictable changes in both U.S. and foreign regulations which may have a financial impact on the business and operations.

The global spread of COVID-19, or coronavirus, has created significant volatility, uncertainty and global macroeconomic disruption. This was due to related government actions, non-governmental agency recommendations and public perceptions, and disruption in global economic and labor market conditions. Our business, results of operations and financial condition have been and may continue to be adversely impacted by the coronavirus pandemic, and future adverse impacts could be material and are difficult to predict.