Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

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Revenue Recognition
3 Months Ended
Jan. 30, 2022
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 January 30, 2022
Segment Total North American Staffing International Staffing North American
MSP
Corporate and Other Eliminations
Service Revenues:
Staffing Services $ 216,082  $ 188,666  $ 20,682  $ 6,729  $ 78  $ (73)
Direct Placement Services 4,868  2,530  1,876  462  —  — 
Managed Service Programs 5,978  —  3,460  2,518  —  — 
$ 226,928  $ 191,196  $ 26,018  $ 9,709  $ 78  $ (73)
Geographical Markets:
Domestic $ 199,856  $ 190,292  $ —  $ 9,637  $ —  $ (73)
International 27,072  904  26,018  72  78  — 
$ 226,928  $ 191,196  $ 26,018  $ 9,709  $ 78  $ (73)
Three Months Ended January 31, 2021
Segment Total North American Staffing International Staffing North American
MSP
Corporate and Other Eliminations
Service Revenues:
Staffing Services $ 209,269  $ 182,567  $ 19,995  $ 6,647  $ 119  $ (59)
Direct Placement Services 3,064  1,649  879  536  —  — 
Managed Service Programs 5,625  —  3,139  2,486  —  — 
$ 217,958  $ 184,216  $ 24,013  $ 9,669  $ 119  $ (59)
Geographical Markets:
Domestic $ 192,832  $ 183,297  $ —  $ 9,572  $ —  $ (37)
International 25,126  919  24,013  97  119  (22)
$ 217,958  $ 184,216  $ 24,013  $ 9,669  $ 119  $ (59)

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 maintains a sales allowance for any potential billing errors and service-related adjustments to the customer. As of January 30, 2022, the change in the reserve balance from October 31, 2021 was immaterial.

Contract assets primarily relate to the Company’s rights to consideration for services provided that are conditional on satisfaction of future performance obligations. Contract liabilities relate to payments that are received or due prior to the related performance obligations being satisfied. The Company does not have any material contract assets or long-term contract liabilities as of January 30, 2022 and October 31, 2021.

The Company may incur fulfillment costs after obtaining a contract related to the set up and implementation of customer-specific MSP programs. These costs are deferred and amortized over the expected period of benefit of the MSP services provided to the customer. Deferred fulfillment costs were immaterial as of January 30, 2022 and October 31, 2021.

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, created significant volatility, uncertainty and global macroeconomic disruption. Our business, results of operations and financial condition have been and may continue to be impacted by the ongoing coronavirus pandemic and related government actions, and any future adverse impacts could be material and are difficult to predict.