Annual report pursuant to Section 13 and 15(d)

Segment Disclosures

v3.21.4
Segment Disclosures
12 Months Ended
Oct. 31, 2021
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.

Segment operating income (loss) is comprised of segment net revenue less cost of services, selling, administrative and other operating costs, restructuring and severance costs and impairment charges. 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 31, 2021
Total North American Staffing  International Staffing North American
MSP
Corporate and Other Eliminations
Net revenue $ 885,393  $ 738,767  $ 106,963  $ 39,312  $ 456  $ (105)
Cost of services 741,871  623,346  86,716  31,655  259  (105)
Gross margin 143,522  115,421  20,247  7,657  197   
Selling, administrative and other operating costs 135,427  82,449  15,956  5,409  31,613  — 
Restructuring and severance costs 2,839  (57) 213  130  2,553  — 
Impairment charges 424  —  —  —  424  — 
Operating income (loss) 4,832  33,029  4,078  2,118  (34,393)  
Other income (expense), net (2,055)
Income tax provision 1,403 
Net income $ 1,374 
  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)

Assets of the Company by reportable segment are summarized in the following table (in thousands):

October 31, 2021 November 1, 2020
Assets:
North American Staffing $ 107,599  $ 105,516 
International Staffing 32,358  26,989 
North American MSP 30,137  24,742 
Corporate & Other 90,010  84,598 
Total Assets $ 260,104  $ 241,845 

Sales to external customers and long-lived assets of the Company by geographic area are as follows (in thousands):
  Year Ended
  October 31, 2021 November 1, 2020
Net Revenue:
Domestic $ 774,093  $ 722,985 
International 111,300  99,070 
Total Net Revenue $ 885,393  $ 822,055 
October 31, 2021 November 1, 2020
Long-Lived Assets:    
Domestic $ 37,579  $ 44,500 
International 2,399  2,774 
Total Long-Lived Assets $ 39,978  $ 47,274 

Capital expenditures and depreciation and amortization by the Company’s operating segments are as follows (in thousands):
Year Ended
  October 31, 2021 November 1, 2020
Capital Expenditures:
North American Staffing $ 102  $ 474 
International Staffing 63  292 
North American MSP 140  372 
Corporate & Other 2,807  4,130 
Total Capital Expenditures $ 3,112  $ 5,268 
Depreciation and Amortization:
North American Staffing $ 289  $ 339 
International Staffing 306  322 
North American MSP 314  152 
Corporate & Other 6,651  7,168 
Total Depreciation and Amortization $ 7,560  $ 7,981