Annual report pursuant to Section 13 and 15(d)

Segment Disclosures

v3.20.4
Segment Disclosures
12 Months Ended
Nov. 01, 2020
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. 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.

In June 2019, the Company exited its customer care solutions business, which was reported as a part of the Corporate and Other category. This exit allowed the Company to further strengthen its focus on its core staffing business and align its resources to streamline operations, improve cost competitiveness and increase profitability. The Company’s other non-reportable businesses continued to be combined and disclosed with corporate services under the category Corporate and Other.

Segment operating income (loss) is comprised of segment net revenue less cost of services, selling, administrative and other operating costs, 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 November 1, 2020
Total North American Staffing  International Staffing North American
MSP
Corporate and Other Eliminations
Net revenue $ 822,055  $ 689,095  $ 95,308  $ 37,915  $ 674  $ (937)
Cost of services 694,204  586,255  79,087  29,471  328  (937)
Gross margin 127,851  102,840  16,221  8,444  346   
Selling, administrative and other operating costs 137,666  85,776  14,484  5,370  32,036  — 
Restructuring and severance costs 2,641  883  338  —  1,420  — 
Impairment charges 16,913  1,859  —  —  15,054  — 
Operating income (loss) (29,369) 14,322  1,399  3,074  (48,164)  
Other income (expense), net (3,173)
Income tax provision 1,045 
Net loss $ (33,587)
  Year Ended November 3, 2019
Total North American Staffing  International Staffing North American MSP Corporate and Other (1) Eliminations (2)
Net revenue $ 997,090  $ 830,947  $ 114,377  $ 39,010  $ 15,320  $ (2,564)
Cost of services 844,527  708,824  95,552  28,324  14,391  (2,564)
Gross margin 152,563  122,123  18,825  10,686  929   
Selling, administrative and other operating costs 157,052  103,437  15,422  5,595  32,598  — 
Restructuring and severance costs 4,656  719  510  68  3,359  — 
Impairment charges 688  —  —  684  — 
Operating income (loss) (9,833) 17,963  2,893  5,023  (35,712)  
Other income (expense), net (4,375)
Income tax provision 978 
Net loss $ (15,186)

(1) Revenues are primarily derived from Volt Customer Care Solutions business through June 7, 2019.
(2) The majority of intersegment sales results from North American Staffing providing resources to Volt Customer Care Solutions business.

Assets of the Company by reportable segment are summarized in the following table (in thousands):
November 1, 2020 November 3, 2019
Assets:
North American Staffing $ 105,516  $ 109,067 
International Staffing 26,989  30,327 
North American MSP 24,742  19,196 
Corporate & Other 84,598  59,414 
Total Assets $ 241,845  $ 218,004 

Sales to external customers and long-lived assets of the Company by geographic area are as follows (in thousands):
  Year Ended
  November 1, 2020 November 3, 2019
Net Revenue:
Domestic $ 722,985  $ 878,095 
International 99,070  118,995 
Total Net Revenue $ 822,055  $ 997,090 
November 1, 2020 November 3, 2019
Long-Lived Assets: (1)
Domestic $ 44,500  $ 24,525 
International 2,774  1,365 
Total Long-Lived Assets $ 47,274  $ 25,890 
(1) Long-lived assets in Fiscal 2020 includes the ROU assets resulting from the adoption of ASC 842, Leases.

Capital expenditures and depreciation and amortization by the Company’s operating segments are as follows (in thousands):
Year Ended
  November 1, 2020 November 3, 2019
Capital Expenditures:
North American Staffing $ 474  $ 415 
International Staffing 292  315 
North American MSP 372  295 
Corporate & Other 4,130  8,028 
Total Capital Expenditures $ 5,268  $ 9,053 
Depreciation and Amortization:
North American Staffing $ 339  $ 415 
International Staffing 322  281 
North American MSP 152  50 
Corporate & Other 7,168  6,209 
Total Depreciation and Amortization $ 7,981  $ 6,955