TRUEBLUE, INC., 10-K filed on 2/24/2017
Annual Report
Document and Entity Information (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Feb. 1, 2017
Jun. 24, 2016
Document and Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Jan. 01, 2017 
 
 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus
FY 
 
 
Trading Symbol
TBI 
 
 
Entity Registrant Name
TrueBlue, Inc. 
 
 
Entity Central Index Key
0000768899 
 
 
Current Fiscal Year End Date
--01-01 
 
 
Entity Well-Known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
42,183,239 
 
Entity Public Float
 
 
$ 753,764 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Current assets:
 
 
Cash and cash equivalents
$ 34,970 
$ 29,781 
Accounts receivable, net of allowance for doubtful accounts of $5,160 and $5,902
352,606 
461,476 
Prepaid expenses, deposits and other current assets
21,373 
23,553 
Income tax receivable
18,854 
28,155 
Total current assets
427,803 
542,965 
Property and equipment, net
63,998 
57,530 
Restricted cash and investments
231,193 
188,412 
Deferred income taxes, net
6,770 
0 
Goodwill
224,223 
268,495 
Intangible assets, net
125,671 
153,859 
Other assets, net
50,787 
48,181 
Total assets
1,130,445 
1,259,442 
Current liabilities:
 
 
Accounts payable and other accrued expenses
66,758 
69,727 
Accrued wages and benefits
79,782 
86,070 
Current portion of workers' compensation claims reserve
79,126 
69,308 
Contingent consideration
21,600 
0 
Other current liabilities
3,869 
2,871 
Total current liabilities
251,135 
227,976 
Workers’ compensation claims reserve, less current portion
198,225 
196,972 
Long-term debt, less current portion
135,362 
243,397 
Deferred income taxes, net
0 
19,499 
Other long-term liabilities
20,544 
36,025 
Total liabilities
605,266 
723,869 
Commitments and contingencies
   
   
Shareholders’ equity:
 
 
Preferred stock, $0.131 par value, 20,000 shares authorized; No shares issued and outstanding
0 
0 
Common stock, no par value, 100,000 shares authorized; 42,171 and 42,024 shares issued and outstanding
1 
1 
Accumulated other comprehensive loss
(11,433)
(14,013)
Retained earnings
536,611 
549,585 
Total shareholders’ equity
525,179 
535,573 
Total liabilities and shareholders’ equity
$ 1,130,445 
$ 1,259,442 
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Allowance for doubtful accounts
$ 5,160 
$ 5,902 
Preferred stock, par value (in dollars per share)
$ 0.131 
$ 0.131 
Preferred stock, shares authorized
20,000,000 
20,000,000 
Preferred stock, shares issued
0 
0 
Preferred stock, shares outstanding
0 
0 
Common stock, par value (in dollars per share)
$ 0 
$ 0 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
42,171,000 
42,024,000 
Common stock, shares outstanding
42,171,000 
42,024,000 
CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Revenue from services
$ 2,750,640 
$ 2,695,680 
$ 2,174,045 
Cost of services
2,070,922 
2,060,007 
1,637,066 
Gross profit
679,718 
635,673 
536,979 
Selling, general and administrative expense
546,477 
495,988 
425,777 
Depreciation and amortization
46,692 
41,843 
29,474 
Goodwill and intangible asset impairment charge
103,544 
0 
0 
Income (loss) from operations
(16,995)
97,842 
81,728 
Interest expense
(7,166)
(4,160)
(3,156)
Interest and other income
3,821 
2,765 
3,272 
Interest and other income (expense), net
(3,345)
(1,395)
116 
Income (loss) before tax expense
(20,340)
96,447 
81,844 
Income tax expense (benefit)
(5,089)
25,200 
16,169 
Net income (loss)
(15,251)
71,247 
65,675 
Net income (loss) per common share:
 
 
 
Basic (in dollars per share)
$ (0.37)
$ 1.73 
$ 1.61 
Diluted (in dollars per share)
$ (0.37)
$ 1.71 
$ 1.59 
Weighted average shares outstanding:
 
 
 
Basic (in shares)
41,648 
41,226 
40,734 
Diluted (in shares)
41,648 
41,622 
41,176 
Other comprehensive income (loss):
 
 
 
Total other comprehensive income (loss), net of tax
2,580 
(14,884)
(1,162)
Comprehensive income (loss)
(12,671)
56,363 
64,513 
Foreign currency translation adjustment
 
 
 
Other comprehensive income (loss):
 
 
 
Foreign currency translation adjustment, net of tax
1,830 
(14,362)
(1,281)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
 
 
 
Other comprehensive income (loss):
 
 
 
Unrealized gain (loss) on investments, net of tax
$ 750 
$ (522)
$ 119 
CONSOLIDATED STATEMENTS OF SHARHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
In Thousands, unless otherwise specified
Total
Common stock
Retained earnings
Accumulated other comprehensive income
Beginning balance at Dec. 27, 2013
$ 393,360 
$ 1 
$ 391,326 
$ 2,033 
Beginning balance (in shares) at Dec. 27, 2013
 
41,085 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Net income (loss)
65,675 
 
65,675 
 
Other Comprehensive Income (Loss), Net of Tax
(1,162)
 
 
(1,162)
Issuances under equity plans, including tax benefits (in shares)
 
445 
 
 
Issuances under equity plans, including tax benefits
410 
 
410 
 
Stock-based compensation
11,051 
 
11,051 
 
Ending balance at Dec. 26, 2014
469,334 
1 
468,462 
871 
Ending balance (in shares) at Dec. 26, 2014
 
41,530 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Net income (loss)
71,247 
 
71,247 
 
Other Comprehensive Income (Loss), Net of Tax
(14,884)
 
 
(14,884)
Issuances under equity plans, including tax benefits (in shares)
 
494 
 
 
Issuances under equity plans, including tax benefits
(1,227)
 
(1,227)
 
Stock-based compensation
11,103 
 
11,103 
 
Ending balance at Dec. 25, 2015
535,573 
1 
549,585 
(14,013)
Ending balance (in shares) at Dec. 25, 2015
42,024 
42,024 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
Net income (loss)
(15,251)
 
(15,251)
 
Other Comprehensive Income (Loss), Net of Tax
2,580 
 
 
2,580 
Purchases and retirement of common stock (in shares)
 
(332)
 
 
Purchases and retirement of common stock
(5,748)
 
(5,748)
 
Issuances under equity plans, including tax benefits (in shares)
 
445 
 
 
Issuances under equity plans, including tax benefits
(1,338)
 
(1,338)
 
Stock-based compensation (in shares)
 
34 
 
 
Stock-based compensation
9,363 
 
9,363 
 
Ending balance at Jan. 01, 2017
$ 525,179 
$ 1 
$ 536,611 
$ (11,433)
Ending balance (in shares) at Jan. 01, 2017
42,171 
42,171 
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Cash flows from operating activities:
 
 
 
Net income (loss)
$ (15,251)
$ 71,247 
$ 65,675 
Adjustments to reconcile net income (loss) to net cash from operating activities:
 
 
 
Depreciation and amortization
46,692 
41,843 
29,474 
Goodwill and intangible asset impairment charge
103,544 
0 
0 
Provision for doubtful accounts
8,308 
7,132 
11,815 
Stock-based compensation
9,363 
11,103 
11,051 
Deferred income taxes
(25,355)
5,176 
12,663 
Other operating activities
7,910 
446 
898 
Changes in operating assets and liabilities:
 
 
 
Accounts receivable
112,785 
(89,474)
(77,629)
Income tax receivable
9,450 
(16,678)
(5,696)
Other assets
470 
(6,398)
(7,361)
Accounts payable and other accrued expenses
(4,101)
23,261 
(8,683)
Accrued wages and benefits
(7,313)
12,203 
12,069 
Workers’ compensation claims reserve
11,070 
14,736 
1,579 
Other liabilities
4,182 
(2,525)
1,670 
Net cash provided by operating activities
261,754 
72,072 
47,525 
Cash flows from investing activities:
 
 
 
Capital expenditures
(29,042)
(18,394)
(16,918)
Acquisitions of businesses
(72,476)
(67,500)
(305,876)
Purchases of marketable securities
0 
0 
(25,057)
Sales and maturities of marketable securities
0 
1,500 
44,167 
Change in restricted cash and cash equivalents
(19,773)
18,374 
(9,283)
Purchases of restricted investments
(37,173)
(51,516)
(18,196)
Maturities of restricted investments
15,248 
12,510 
12,726 
Net cash used in investing activities
(143,216)
(105,026)
(318,437)
Cash flows from financing activities:
 
 
 
Purchases and retirement of common stock
(5,748)
0 
0 
Net proceeds from stock option exercises and employee stock purchase plans
1,542 
1,563 
2,191 
Common stock repurchases for taxes upon vesting of restricted stock
(2,851)
(3,869)
(3,114)
Net change in revolving credit facility
(105,579)
46,091 
171,994 
Payments on debt
(2,456)
(2,078)
(2,267)
Other
(29)
1,079 
978 
Net cash provided by (used in) financing activities
(115,121)
42,786 
169,782 
Effect of exchange rate changes on cash and cash equivalents
1,772 
283 
(1,207)
Net change in cash and cash equivalents
5,189 
10,115 
(102,337)
CASH AND CASH EQUIVALENTS, beginning of period
29,781 
19,666 
122,003 
CASH AND CASH EQUIVALENTS, end of period
34,970 
29,781 
19,666 
Retained earnings
 
 
 
Cash flows from operating activities:
 
 
 
Net income (loss)
$ (15,251)
$ 71,247 
$ 65,675 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant Accounting Policies [Text Block]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of business
TrueBlue, Inc. (“TrueBlue,” “we,” “us,” and “our”) is a leading provider of specialized workforce solutions and services, helping clients improve growth and performance by providing contingent staffing, recruitment process outsourcing ("RPO") solutions, and management of contingent staffing. Our workforce solutions meet clients’ needs for a reliable, efficient workforce in a wide variety of industries. Through our workforce solutions, we help businesses be more productive and we connect people to work each year. We are headquartered in Tacoma, Washington.
Commencing in the fourth quarter of 2016, we changed our internal reporting structure to better align our operations with customer needs. As a result of this change, our former Staffing Services reportable segment has been separated into two reportable segments, PeopleReady and PeopleManagement. The PeopleReady reportable segment represents our PeopleReady operating segment and the PeopleManagement reportable segment consists of the Staff Management | SMX ("Staff Management"), SIMOS, PlaneTechs, and Centerline operating segments. In addition, our former Managed Services reportable segment has been renamed PeopleScout, which consists of the PeopleScout and PeopleScout Managed Service Provider operating segments.
We operate our workforce solutions through three reportable segments, PeopleReady, PeopleManagement, and PeopleScout. For additional information on our segments see Note 17: Segment Information.
Basis of presentation
The consolidated financial statements include the accounts of TrueBlue and all of its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The consolidated financial statements include the results of operations and cash flows of the RPO business of Aon Hewitt from the acquisition date to January 1, 2017, and not from any prior periods. For additional information see Note 2: Acquisitions.
Reclassifications
Certain reclassifications have been made to prior year balances in order to conform to the current year's presentation, including reclassifications related to our change in reportable segments.
Fiscal period end

During the fourth fiscal quarter of 2016, we changed our week-ending date from Friday to the following Sunday in order to better align our week-ending date with that of our customers. On December 15, 2016, we changed our fiscal period end day from the last Friday to the Sunday closest to the last day of December. Our fiscal quarters will also end on the Sunday closet to the last day in March, June, and September. This change is effective with our fiscal year ended January 1, 2017. In prior years, the consolidated financial statements were presented with the last day of the fiscal year ending on the last Friday of December. The change in fiscal year end and quarter end will not have a material effect on the comparability of the periods presented.

The consolidated financial statements are presented on a 52/53-week fiscal year end basis, with the last day of the fiscal year currently ending on the Sunday closest to the last day of December. In fiscal years consisting of 53 weeks, the final quarter will consist of 14 weeks while in 52-week years all quarters will consist of 13 weeks. The three most recent years ended on January 1, 2017, December 25, 2015, and December 26, 2014. Our 2016 fiscal year contained 53 weeks, with the 53rd week falling in our fourth fiscal quarter, while our 2015 and 2014 fiscal years contained 52 weeks.
Revenue recognition

Revenue is recognized at the time the service is provided by the temporary worker. Revenue from permanent placement services is recognized at the time the permanent placement candidate begins full-time employment. Revenue from other staffing fee-based services is recognized when the services are provided. Revenue also includes billable travel and other reimbursable costs. Customer discounts or other incentives are recognized in the period the related revenue is earned. Revenues are reported net of sales, use, or other transaction taxes collected from customers and remitted to taxing authorities.
We record revenue on a gross basis as a principal versus on a net basis as an agent in the Consolidated Statements of Operations and Comprehensive Income (Loss). We have determined that gross reporting as a principal is the appropriate treatment based upon the following key factors:
•
We maintain the direct contractual relationship with the customer.
•
We have discretion in selecting and assigning the temporary worker to a particular job and establishing their billing rate.
•
We bear the risk and rewards of the transaction, including credit risk, if the customer fails to pay for services performed.
Cost of services
Cost of services refers to costs directly associated with the earning of revenue and primarily includes wages and related payroll taxes and workers’ compensation expenses. Cost of services also includes billable travel as well as other reimbursable and non-reimbursable expenses.
Advertising costs
Advertising costs consist primarily of print and other promotional activities. We expense advertisements as of the first date the advertisements take place. Advertising expenses included in Selling, general and administrative expenses were $7.8 million, $9.1 million, and $6.2 million in 2016, 2015, and 2014, respectively.
Cash, cash equivalents, and marketable securities
We consider all highly liquid instruments purchased with an original maturity of three months or less at date of purchase to be cash equivalents. Investments with original maturities greater than three months are classified as marketable securities. We do not buy and hold securities principally for the purpose of selling them in the near future. Our investment policy is focused on the preservation of capital, liquidity, and return. From time to time, we may sell certain securities but the objective is generally not to generate profits on short-term differences in price. We manage our cash equivalents and marketable securities as a single portfolio of highly liquid securities.
Accounts receivable and allowance for doubtful accounts
Accounts receivable are recorded at the invoiced amount. We establish an allowance for doubtful accounts for estimated losses resulting from the failure of our customers to make required payments. The allowance for doubtful accounts is determined based on current collection efforts, historical collection trends, write-off experience, customer credit risk, and current economic data. The allowance for doubtful accounts is reviewed quarterly and represents our best estimate of the amount of probable credit losses. Past due balances are written off when it is probable the receivable will not be collected. Our allowance for doubtful accounts was $5.2 million and $5.9 million as of January 1, 2017 and December 25, 2015, respectively.
Restricted cash and investments
Cash and investments pledged as collateral and restricted to use for workers' compensation insurance programs are included as Restricted cash and investments on our Consolidated Balance Sheets. Our investments consist of highly rated investment grade debt securities, which are rated A1/P1 or higher for short-term securities and A- or higher for long-term securities, by nationally recognized statistical rating organizations. We have the positive intent and ability to hold all these restricted investments until maturity in accordance with our investment policy and, accordingly, all of our restricted investments are classified as held-to-maturity. In the event that an investment is downgraded, it is replaced with a highly rated investment grade security. We review for impairment on a quarterly basis and do not consider temporary unrealized losses to be an impairment.
We have an agreement with AIG and the Bank of New York Mellon creating a trust ("Trust"), which holds the majority of our collateral obligations under existing workers' compensation insurance policies. Placing the collateral in the Trust allows us to manage the investment of the assets and provides greater protection of those assets.
Fair value of financial instruments and investments
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For assets and liabilities recorded or disclosed at fair value on a recurring basis, we determine fair value based on the following:
Level 1: The carrying value of cash and cash equivalents and mutual funds approximates fair value because of the short-term nature of these instruments. Inputs are valued using quoted market prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices in active markets for identical assets and liabilities. Instead we use quoted prices for similar instruments in active markets or quoted prices or we estimate the fair value using a variety of valuation methodologies, which include observable inputs for comparable instruments and unobservable inputs. Our investments consist of highly rated investment grade debt securities, which are rated A1/P1 or higher for short-term securities and A- or higher for long-term securities, by nationally recognized statistical rating organizations.
Level 3: For assets and liabilities with unobservable inputs, we typically rely on management's estimates of assumptions that market participants would use in pricing the asset or liability.
The carrying value of our cash and cash equivalents and restricted cash approximates fair value because of the short-term maturity of those instruments. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions.
The carrying value of our accounts receivable, accounts payable and other accrued expenses, and accrued wages and benefits approximates fair value due to their short-term nature. We also hold certain restricted investments which collateralize workers' compensation programs and are classified as held-to-maturity and carried at amortized cost on our Consolidated Balance Sheets.
Certain items such as goodwill and other intangible assets are recognized or disclosed at fair value on a non-recurring basis. We determine the fair value of these items using Level 3 inputs, as described in the related sections below.
Property and equipment
Property and equipment are recorded at cost. We compute depreciation using the straight-line method over the estimated useful lives of the assets as follows:
 
Years
Buildings
40
Computers and software
3 - 10  
Furniture and equipment
3 - 10  

Leasehold improvements are amortized over the shorter of the related non-cancelable lease term, which is typically 90 days, or their estimated useful lives.
Non-capital expenditures associated with opening new locations are expensed as incurred.
When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss, net of proceeds, is reflected on the Consolidated Statements of Operations and Comprehensive Income (Loss).
Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated.
Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, from three to ten years. A subsequent addition, modification, or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality or extends its useful life. Software maintenance and training costs are expensed in the period incurred.
Leases
We conduct our branch office operations from leased locations. Many leases require payment of real estate taxes, insurance, and common area maintenance, in addition to rent. The terms of our lease agreements generally range from three to five years with options to cancel, typically within 90 days of notification.
For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the minimum lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.
Cash or lease incentives received upon entering into certain leases ("tenant allowances") are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.
Finite-lived intangible assets
Intangible assets primarily consist of identifiable finite-lived intangible assets acquired through acquisitions and include trade names/trademarks, customer relationships, non-compete agreements, and acquired technology. We amortize intangible assets using the straight-line method over their useful lives. We amortize non-compete covenants using the straight-line method over the lives of the related agreements.

Goodwill
Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. If necessary, we reassign goodwill using a relative fair value allocation approach. We test for goodwill impairment at the reporting unit level. We consider our service lines to be our reporting units for goodwill impairment testing. At the time of our annual impairment test, our service lines were Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, Centerline, Staff Management, SIMOS, PeopleScout, hrX, and PeopleScout MSP. The impairment test involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the fair value exceeds carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. The implied fair value of the reporting unit’s goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value.
Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of operating and macroeconomic changes on each reporting unit. The fair value of each reporting unit is estimated using a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. The primary market multiples we compare to are revenue and earnings before interest, taxes, depreciation, and amortization. These combined fair values are then reconciled to our aggregate market value of our shares of common stock on the date of valuation, while considering a reasonable control premium.
We consider a reporting unit’s fair value to be substantially in excess of its carrying value at 20% or greater. We base fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates.
We performed our annual goodwill impairment analysis and recorded a goodwill impairment charge of $65.9 million in fiscal 2016 with respect to the Staff Management, PlaneTechs, and hrX reporting units. Refer to Note 6: Goodwill and Intangible Assets for further details.
There were no goodwill impairment charges recorded during fiscal 2015 or 2014.
Long-lived asset impairment
Long-lived assets include property and equipment and indefinite-lived intangible assets. Property and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. We have determined that no triggering events have occurred during the period that would require us to perform an impairment test over property and equipment. We have indefinite-lived intangible assets related to our Staff Management and PeopleScout trade names. We test our trade names annually for impairment, and when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of each of our trade names. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. Management uses considerable judgment to determine key assumptions, including projected revenue, royalty rates and appropriate discount rates. We performed our annual indefinite-lived intangible asset impairment test as the first day of our second fiscal quarter and determined that the estimated fair values exceeded the carrying amounts of the PeopleScout reporting unit indefinite-lived trade name and accordingly no impairment loss was recognized.

During fiscal 2016, we recognized an impairment loss on long-lived assets of $37.7 million due to a change in scope of services by Staff Management for our largest customer, as well as a change to the organizational and reporting structure of our Labor Ready, Spartan Staffing, and CLP Resources service lines, which were combined and re-branded as PeopleReady. Refer to Note 6: Goodwill and Intangible Assets for further details.
There were no long-lived asset impairment charges recorded during fiscal 2015 or 2014.
Business combinations
We account for our business acquisitions using the purchase method of accounting in accordance with ASC 805, Business Combinations. The fair value of the net assets acquired and the results of the acquired business are included in the financial statements from the acquisition date forward. We are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property and equipment, intangible assets, useful lives of property and equipment, and amortizable lives for acquired intangible assets. Any excess of the purchase consideration over the identified fair value of the assets and liabilities acquired is recognized as goodwill. Goodwill acquired in business combinations is assigned to the reporting unit(s) expected to benefit from the combination as of the acquisition date. We estimate the fair value of acquired assets and liabilities as of the date of the acquisition based on information available at that time. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change between the preliminary allocation and the final allocation. Any changes to these estimates may have a material impact on our operating results or financial condition.
All acquisition-related costs are expensed as incurred and recorded in Selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). Additionally, we recognize liabilities for anticipated restructuring costs that will be necessary due to the elimination of excess capacity, redundant assets, or unnecessary functions and record them as Selling, general, and administrative expense.
Workers’ compensation claims reserves
We maintain reserves for workers’ compensation claims using actuarial estimates of the future cost of claims and related expenses. These estimates include claims that have been reported but not settled and claims that have been incurred but not reported. These reserves, which reflect potential liabilities to be paid in future periods based on estimated payment patterns, are discounted to estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments, which are evaluated on a quarterly basis. We evaluate the reserves regularly throughout the year and make adjustments accordingly. If the actual cost of such claims and related expenses exceeds the amounts estimated, additional reserves may be required. Changes in reserve estimates are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss) in the period when the changes in estimates are made.
Our workers’ compensation reserves include estimated expenses related to claims above our self-insured limits (“excess claims”) and a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance companies. We discount the liability and its corresponding receivable to its estimated net present value using the “risk-free” rates associated with the actuarially determined weighted average lives of our excess claims. When appropriate, based on our best estimate, we record a valuation allowance against the insurance receivable to reflect amounts that may not be realized.
Legal contingency reserves and regulatory liabilities
From time to time we are subject to compliance audits by federal, state and local authorities relating to a variety of regulations including wage and hour laws, taxes, workers’ compensation, immigration, and safety. In addition, we are subject to legal proceedings in the ordinary course of our operations. We establish reserves for contingent legal and regulatory liabilities when management determines that it is probable that a legal claim will result in an adverse outcome and the amount of liability can be reasonably estimated. To the extent that an insurance company is contractually obligated to reimburse us for a liability, we record a receivable for the amount of the probable reimbursement. We evaluate our reserve regularly throughout the year and make adjustments as needed. If the actual outcome of these matters is different than expected, an adjustment is charged or credited to expense in the period the outcome occurs or the period in which the estimate changes.
Income taxes and related valuation allowance
We account for income taxes by recording taxes payable or receivable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. These expected future tax consequences are measured based on provisions of tax law as currently enacted; the effects of future changes in tax laws are not anticipated. Future tax law changes, such as changes to the federal and state corporate tax rates and the mix of states and their taxable income, could have a material impact on our financial condition or results of operations. When appropriate, we record a valuation allowance against deferred tax assets to offset future tax benefits that may not be realized. In determining whether a valuation allowance is appropriate, we consider whether it is more likely than not that all or some portion of our deferred tax assets will not be realized, based in part upon management’s judgments regarding future events and past operating results. Based on that analysis, we have determined that a valuation allowance is appropriate for certain net operating losses and tax credits that we expect will not be utilized within the permitted carry forward periods as of January 1, 2017 and December 25, 2015.
Stock-based compensation
Under various plans, officers, employees, and non-employee directors have received or may receive grants of stock, restricted stock awards, performance share units, or options to purchase common stock. We also have an employee stock purchase plan.
Compensation expense for restricted stock awards and performance share units is generally recognized on a straight-line basis over the vesting period, based on the stock’s fair market value on the grant date. For restricted stock and performance share unit grants issued with performance conditions, compensation expense is recognized over each vesting period based on assessment of the likelihood of meeting these conditions. We recognize compensation expense for only the portion of restricted stock and performance share units that is expected to vest, rather than record forfeitures when they occur. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in the future periods. We determine the fair value of options to purchase common stock using the Black-Scholes valuation model, which requires the input of subjective assumptions. We recognize expense over the service period for options that are expected to vest and record adjustments to compensation expense at the end of the service period if actual forfeitures differ from original estimates.
Foreign currency
Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date. Revenues and expenses for each subsidiary are translated to U.S. dollars using a weighted average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in other comprehensive income ("OCI") where applicable. Currency gains and losses on intercompany loans intended to be a permanent investments in international subsidiaries are included, net of tax, in OCI.
Purchases and retirement of our common stock

We may purchase our common stock under a program authorized by our Board of Directors. Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on the Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our Retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to Retained earnings until such time as the reduction to Retained earnings due to stock repurchases has been recovered.
Net income (loss) per share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares include the dilutive effects of vested and non-vested restricted stock, performance share units, and shares issued under the employee stock purchase plan, except where their inclusion would be anti-dilutive.
Anti-dilutive shares primarily include non-vested restricted stock, and performance share units for which the sum of the assumed proceeds, including unrecognized compensation expense, exceeds the average stock price during the periods presented. Anti-dilutive shares associated with our stock options relate to those stock options with an exercise price higher than the average market value of our stock during the periods presented.
Use of estimates
Preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Estimates in our financial statements include, but are not limited to, purchase accounting, allowance for doubtful accounts, estimates for asset and goodwill impairments, stock-based performance awards, assumptions underlying self-insurance reserves, contingent legal and regulatory liabilities, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions.
Recently adopted accounting standards

Effective December 26, 2015, we early adopted the accounting standard that simplified the balance sheet disclosure of deferred income taxes retrospectively to all periods presented. This guidance requires deferred tax liabilities and assets to be classified as non-current on the Consolidated Balance Sheets. The guidance is effective for annual periods beginning after December 15, 2016, and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The adoption of this standard did not have a material impact to our financial statements.

Recently issued accounting pronouncements not yet adopted

In January 2017, the Financial Accounting Standards Board ("FASB") issued guidance to simplify the subsequent measurement of goodwill by eliminating the requirement to perform a Step 2 impairment test to compute the implied fair value of goodwill. Instead, companies will only compare the fair value of a reporting unit to its carrying value (Step 1) and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized may not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This amended guidance is effective for fiscal years and interim periods beginning after December 15, 2019 (Q1 2020 for TrueBlue), with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We plan to early adopt this guidance for our annual impairment test as of the first day of our fiscal second quarter of 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In November 2016, the FASB issued guidance to amend the presentation of restricted cash and restricted cash equivalents on the statement of cash flows. The standard requires restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amended guidance is effective for fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue), with early adoption permitted. We plan to adopt this guidance on the effective date. Changes in restricted cash and cash equivalents recorded in cash flows from investing were $19.8 million, $18.4 million, and $9.3 million for fiscal 2016, 2015, and 2014, respectively.

In October 2016, FASB issued guidance on the accounting for income tax effects of intercompany sales or transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity sale or transfer of an asset other than inventory when the sale or transfer occurs, rather than when the assets has been sold to an outside party. This guidance is effective for fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue), with early adoption permitted. The guidance will require a modified retrospective application with a cumulative catch-up adjustment to opening retained earnings. We plan to adopt this guidance on the effective date and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In August 2016, the FASB issued an accounting standards update relating to how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. The update is intended to reduce the existing diversity in practice. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 (Q1 2018 for TrueBlue), with early adoption permitted, including adoption in an interim period. The adoption of the amendment should be applied using the retrospective transition method, if practicable. We plan to adopt this amendment on the effective date and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In June 2016, the FASB issued guidance on accounting for credit losses on financial instruments. This guidance sets forth a current expected credit loss model which requires measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and some off-balance sheet exposures, as well as trade account receivables. This guidance is effective for fiscal years beginning after December 15, 2019 (Q1 2020 for TrueBlue) with early adoption permitted no sooner than Q1 2019. A modified retrospective approach is required for all investments, except debt securities for which an other-than-temporary impairment had been recognized prior to the effective date, which will require a prospective transition approach. We plan to adopt this guidance on the effective date and are currently assessing the impact of the adoption of this guidance on our consolidated financial statements.

In March 2016, the FASB issued guidance to improve employee share-based payment accounting. The simplifications include income tax consequences, classification of awards as equity or liabilities, and classification within the statement of cash flows. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016 (Q1 2017 for TrueBlue), and early adoption is permitted. We plan to adopt the guidance on the effective date. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued guidance on lease accounting. The new guidance will continue to classify leases as either finance or operating and will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with classification affecting the pattern of expense recognition in the statement of income. This guidance is effective for annual and interim periods beginning after December 15, 2018 (Q1 2019 for TrueBlue), and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. We plan to adopt the guidance on the effective date. We are currently evaluating the impact of this guidance on our consolidated financial statements and expect that a majority of our operating lease commitments will be recognized on our Consolidated Balance Sheets as operating lease liabilities and right-of-use assets upon adoption. We do not expect the adoption of this guidance to have a material impact on the pattern of expense recognition in our Consolidated Statements of Operations and Comprehensive Income (Loss).

In January 2016, the FASB issued guidance on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance is effective for annual and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). Early adoption of the amendments in the guidance is not permitted, with limited exceptions, and should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We plan to adopt the guidance on the effective date. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
 
In May 2014, the FASB issued guidance outlining a single comprehensive model for accounting for revenue arising from contracts with customers which supersedes the current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments as well as assets recognized from costs incurred to obtain or fulfill a contract. The guidance provides two methods of initial adoption: retrospective for all periods presented (full retrospective), or through a cumulative adjustment in the year of adoption (modified retrospective). Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1) clarification of the implementation guidance on principal versus agent considerations; 2) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance; and 3) additional guidance and practical expedients in response to identified implementation issues. The effective date is for annual and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue), and we expect to adopt the guidance using the modified retrospective approach.

We established a cross-functional implementation team consisting of representatives from across our business segments and various departments. We are utilizing a bottoms-up approach to analyze the impact of the standard on our various revenue streams by reviewing our current contracts with customers, accounting policies, and business practices to identify potential differences that would result from applying the requirements of the new standard. We are in the process of identifying appropriate changes to our business processes, systems, and controls to support recognition and disclosure under the new standard.

We have been closely monitoring FASB activity related to the new standard to conclude on specific interpretive issues. During 2016, we made significant progress toward completing our evaluation of the potential impact that adopting the new standard will have on our consolidated financial statements. Revenue on the majority of our contracts with customers will continue to be recognized over time as services are rendered. The impact of adopting this new guidance primarily relates to deferring contract costs and estimating variable consideration when the estimation will not result in the reversal of that revenue in subsequent periods. Therefore, we do not anticipate this will have a material impact on our financial reporting other than expanded disclosures. However, the full extent of the impact is subject to the completion of our assessment.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our consolidated financial statements upon adoption.
ACQUISITIONS
Acquisitions
ACQUISITIONS

2016 Acquisition

Effective January 4, 2016, we acquired certain assets and assumed certain liabilities of the recruitment process outsourcing ("RPO") business of Aon Hewitt for a cash purchase price of $72.5 million, net of the final working capital adjustment. We amended our existing credit facility to temporarily increase the borrowing capacity by $30.0 million, which was used to fund the acquisition. The RPO business of Aon Hewitt broadens our PeopleScout RPO services and has been fully integrated into our PeopleScout service line, which is part of our PeopleScout reportable segment.

We incurred acquisition and integration-related costs of $6.6 million in connection with the acquisition of the RPO business of Aon Hewitt, which are included in Selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss) and Cash flows from operating activities on the Consolidated Statements of Cash Flows for the year ended January 1, 2017.

The following table reflects our final allocation of the purchase price (in thousands):
 
Purchase Price Allocation
Cash purchase price, net of working capital adjustment (1)
$
72,476

 
 
Purchase price allocated as follows:
 
Accounts receivable
$
12,272

Prepaid expenses, deposits and other current assets (1)
894

Customer relationships
34,900

Technologies
400

  Total assets acquired
48,466

 
 
Accrued wages and benefits
1,025

Other long-term liabilities
456

  Total liabilities assumed
1,481

 
 
Net identifiable assets acquired
46,985

Goodwill (2)
25,491

Total consideration allocated (1)
$
72,476


(1)
The final purchase price allocation was adjusted for the final working capital adjustment.
(2)
Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers, and future cash flows after the acquisition of the RPO business of Aon Hewitt. Goodwill is deductible for income tax purposes over 15 years as of January 4, 2016.

Intangible assets include identifiable intangible assets for customer relationships and developed technologies. We estimated the fair value of the acquired identifiable intangible assets, which are subject to amortization, using the income approach for customer relationships and the cost approach for developed technologies. No residual value is estimated for any of the intangible assets.

The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of January 4, 2016 (in thousands, except for estimated useful lives, in years):
 
Estimated Fair Value
 
Estimated Useful Lives in Years
Customer relationships
$
34,900

 
9.0
Technologies
400

 
3.0
Total acquired identifiable intangible assets
$
35,300

 
 


The acquired assets and assumed liabilities of the RPO business of Aon Hewitt are included on our Consolidated Balance Sheets as of January 1, 2017, and the results of its operations and cash flows are reported on our Consolidated Statements of Operations and Comprehensive Income (Loss) and Consolidated Statements of Cash Flows for the period from January 4, 2016 to January 1, 2017.

The amount of revenue from the RPO business of Aon Hewitt included in our Consolidated Statements of Operations and Comprehensive Income (Loss) was $66.5 million for the period from the acquisition date to January 1, 2017. The acquired operations have been fully integrated with our existing PeopleScout operations. The nature of the customers and the services provided by PeopleScout and the former RPO business of Aon Hewitt are now the same. Accordingly, subsequent to merging our operations, it is not possible to segregate and to reasonably estimate the operating expenses related exclusively to the former RPO business of Aon Hewitt.

The acquisition of the RPO business of Aon Hewitt was not material to our consolidated results of operations and as such, pro forma financial information was not required.

2015 Acquisition

Effective December 1, 2015, we acquired SIMOS Insourcing Solutions Corporation ("SIMOS"), an Atlanta-based provider of on-premise workforce management solutions for a cash purchase price of $66.6 million, net of the final working capital adjustment, which was funded by our existing credit facility. An additional cash payment between zero and $22.5 million of contingent consideration is payable in mid-2017, depending on SIMOS achieving a fiscal 2016 earnings before interest, taxes, depreciation and amortization target ("EBITDA target"). Actual results must be in excess of 87.5% of the EBITDA target before any amount is earned. The final undiscounted fair value of the contingent consideration as of the acquisition date was determined to be $21.1 million. Using a risk adjusted weighted average cost of capital of 10.0%, the present value of the contingent consideration was estimated to be $18.3 million, as of the acquisition date. The contingent consideration liability was based on a probability weighted fair value measurement using unobservable inputs (Level 3) which rely on management's estimates of assumptions that market participants would use in pricing the liability. The valuation is judgmental in nature and involves the use of significant estimates and assumptions in forecasting fiscal 2016 results. SIMOS broadens our on-premise contingent staffing solution, which is part of our PeopleManagement reportable segment. As of January 1, 2017, the fair value of the contingent consideration payable is $21.6 million. Refer to Note 3: Fair Value Measurement for further details regarding the contingent consideration payable.

The following table reflects our final allocation of the purchase price (in thousands):
 
Purchase Price Allocation
Purchase price:
 
Cash purchase price, net of working capital adjustment
$
66,603

Contingent consideration
18,300

Total consideration
$
84,903

 
 
Purchase price allocated as follows:
 
Accounts receivable (1)
$
19,207

Prepaid expenses, deposits and other current assets
461

Property and equipment
464

Customer relationships
39,000

Trade name/trademarks
800

Technologies
100

Restricted cash
4,277

Other non-current assets
2,439

  Total assets acquired
66,748

 
 
Accounts payable and other accrued expenses
3,741

Accrued wages and benefits
4,075

Workers' compensation liability
8,520

  Total liabilities assumed
16,336

 
 
Net identifiable assets acquired
50,412

Goodwill (2)
34,491

Total consideration allocated
$
84,903


(1)
The gross contractual amount of accounts receivable was $19.3 million of which $0.1 million was estimated to be uncollectible.
(2)
Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers, and future cash flows after the acquisition of SIMOS. Goodwill is deductible for income tax purposes over 15 years as of December 1, 2015.

Intangible assets include identifiable intangible assets for customer relationships, trade name/trademarks, and developed technologies. We estimated the fair value of the acquired identifiable intangible assets, which are subject to amortization, using the income approach for customer relationships and trade name/trademarks, and the cost approach for developed technologies. The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of December 1, 2015 (in thousands, except for estimated useful lives, in years):
 
Estimated Fair Value
 
Estimated Useful Lives in Years
Customer relationships
$
39,000

 
9.0
Trade name/trademarks
800

 
3.0
Technologies
100

 
2.0
Total acquired identifiable intangible assets
$
39,900

 
 


2014 Acquisition

Effective June 30, 2014, we completed the acquisition of all of the outstanding equity interests of Seaton, a Chicago-based corporation, for a cash purchase price of approximately $305.9 million, net of cash acquired. The Seaton acquisition added a full service line of on-premise blue-collar staffing, complementary service offerings in recruitment process outsourcing, and managed services provider solutions. We have continued to manage and support Seaton's operations from Chicago.

Effective June 30, 2014, we entered into a Second Amended and Restated Revolving Credit Agreement for a secured revolving credit facility ("Revolving Credit Facility") of up to a maximum of $300.0 million, of which $187.0 million was used to fund a portion of the Seaton acquisition price. See Note 8: Long-term Debt, for details of our Revolving Credit Facility.

We incurred acquisition and integration-related costs of $3.8 million and $5.2 million during the years ended December 25, 2015 and December 26, 2014, respectively. These costs are included in Selling, general and administrative expense in the Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating activities in the Consolidated Statements of Cash Flows.
Purchase price allocation
We have completed the allocation of the purchase price, net of cash acquired, to the assets acquired and liabilities assumed based on fair value assessments. The following information reflects our allocation of the purchase price (in thousands):
 
Purchase Price Allocation
Accounts receivable (1)
$
94,571

Prepaid expenses, deposits and other current assets
7,111

Property and equipment
6,957

Other non-current assets
7,848

Restricted cash
1,227

Intangible assets
117,100

  Total assets acquired
234,814

 
 
Accounts payable and other accrued expenses
28,916

Accrued wages and benefits
18,528

Workers' compensation claims reserve
26,433

Deferred tax liability
13,514

Other long-term liabilities
1,163

  Total liabilities assumed
88,554

 
 
Net identifiable assets acquired
146,260

Goodwill (2)
159,616

  Net assets acquired
$
305,876


(1)
The gross contractual amount of accounts receivable was $96.7 million of which $2.1 million was estimated to be uncollectible.
(2)
Goodwill is attributable to the acquired workforce, the expected synergies, and future cash flows after the acquisition of Seaton. Synergies consist primarily of increasing service capacity through acquiring workforce and facilities, increasing market share and economies of scale, increasing operational efficiency and expertise, and leveraging technology investments.

Intangible assets include identifiable intangible assets for customer relationships and trade name/trademarks. We estimated the fair value of the acquired identifiable intangible assets, which are subject to amortization using the income approach. The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of June 30, 2014 (in thousands, except for estimated useful lives, in years):
 
Estimated Fair Value
 
Weighted Average Estimated Useful Lives in Years
Trade name/trademarks
$
10,500

 
Indefinite
Trade name/trademarks
300

 
4.0
Technologies
18,300

 
4.6
Customer relationships
88,000

 
9.7
Total intangible assets
$
117,100

 
 


The acquired assets and liabilities assumed of Seaton are included in our Consolidated Balance Sheets as of December 26, 2014 and the results of its operations and cash flows are reported in our Consolidated Statements of Operations and Comprehensive Income (Loss) and Consolidated Statements of Cash Flows for the period from June 30, 2014 to December 26, 2014.

The amount of revenue and income from operations of Seaton included in our Consolidated Statements of Operations and Comprehensive Income (Loss) were $394.4 million and $13.6 million, respectively, for the period from the acquisition date to December 26, 2014. Income from operations for the period from the acquisition date to December 26, 2014 includes amortization expense of $6.3 million for acquired finite-lived intangible assets and developed technology.
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT

Assets and liabilities measured at fair value on a recurring basis
Our assets and liabilities measured at fair value on a recurring basis consisted of the following (in thousands):
 
January 1, 2017
 
Total Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Financial assets:
 
 
 
 
 
 
 
Cash and cash equivalents (1)
$
34,970

 
$
34,970

 
$
—

 
$
—

Restricted cash and cash equivalents (1)
67,751

 
67,751

 
—

 
—

Other restricted assets (2)
16,925

 
16,925

 
—

 
—

Restricted investments classified as held-to-maturity
145,953

 
—

 
145,953

 
—

 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
Contingent consideration (3)
21,600

 
—

 
—

 
21,600

 
December 25, 2015
 
Total Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Financial assets:
 
 
 
 
 
 
 
Cash and cash equivalents (1)
$
29,781

 
$
29,781

 
$
—

 
$
—

Restricted cash and cash equivalents (1)
49,680

 
49,680

 
—

 
—

Other restricted assets (2)
11,944

 
11,944

 
—

 
—

Restricted investments classified as held to maturity
128,245

 
—

 
128,245

 
—

 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
Contingent consideration (3)
19,300

 
—

 
—

 
19,300


(1)
Cash equivalents and restricted cash equivalents consist of money market funds, deposits, and investments with original maturities of three months or less.
(2)
Other restricted assets primarily consist of deferred compensation plan accounts, which are comprised of mutual funds classified as available-for-sale securities.
(3)
The estimated fair value of the contingent consideration associated with the acquisition of SIMOS, which was estimated using a probability-adjusted discounted cash flow model. Refer to Note 2: Acquisitions for further details regarding the SIMOS acquisition.

The following table presents the change in the estimated fair value of our liability for contingent consideration measured using significant unobservable inputs (Level 3) for the year ended January 1, 2017, as follows (in thousands):
Fair value measurement at beginning of period
 
$
19,300

Contingent consideration liability adjustment recorded for final purchase price valuation
 
(1,000
)
Final purchase price valuation
 
18,300

Adjustment to fair value measurement
 
1,300

Accretion on contingent consideration
 
2,000

Fair value measurement at end of period
 
$
21,600


Our liability for contingent consideration represents the future payment of additional consideration for the acquisition of SIMOS. We recognized an increase in the fair value of our contingent liability of $1.3 million due to the preliminary achievement of the defined performance milestone as of the fourth quarter of 2016. The final determination is subject to a verification period through the payout date in June 2017. Changes in the fair value of the contingent consideration are recorded in Selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). Amortization of the present value discount is recorded in Interest expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). The contingent consideration liability is payable in June 2017 and therefore classified as current on the accompanying Consolidated Balance Sheets. As of December 25, 2015, the contingent consideration liability was included in Other long-term liabilities.

There were no material transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the year ended December 25, 2015.

Assets measured at fair value on a nonrecurring basis

We measure certain non-financial assets on a non-recurring basis, including goodwill and certain intangible assets. As a result of those measurements, we recognized impairment charges of $103.5 million during the years ended January 1, 2017, as follows (in thousands):
 
January 1, 2017
 
 
 
Total Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total Impairment Loss
Goodwill
$
42,629

 
$
—

 
$
—

 
$
42,629

 
$
(65,869
)
Customer relationships
11,100

 
—

 
—

 
11,100

 
(28,900
)
Trade names/trademarks
3,600

 
—

 
—

 
3,600

 
(8,775
)
Total
$
57,329

 
 
 
 
 
 
 
$
(103,544
)


Goodwill, finite-lived customer relationships and trade names/trademarks intangible assets, and indefinite-lived intangible trade names/trademarks intangible assets with a total carrying value of $160.8 million were written down to their fair value of $57.3 million, resulting in an impairment charge of $103.5 million, which was recorded in earnings for the year ended January 1, 2017. Refer to Note 6: Goodwill and Intangible Assets for additional details on the impairment charges and valuation methodologies.
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS
RESTRICTED CASH AND INVESTMENTS

Restricted cash and investments consist principally of collateral that has been provided or pledged to insurance carriers for workers' compensation and state workers' compensation programs. Our insurance carriers and certain state workers' compensation programs require us to collateralize a portion of our workers' compensation obligation. The collateral typically takes the form of cash and cash equivalents and highly rated investment grade securities, primarily in municipal debt securities, corporate debt securities, and asset-backed securities. The majority of our collateral obligations are held in a trust at the Bank of New York Mellon ("Trust"). Our investments have not resulted in any other-than-temporary impairments.
The following is a summary of our restricted cash and investments (in thousands):
 
January 1,
2017
 
December 25,
2015
Cash collateral held by insurance carriers
$
34,910

 
$
23,634

Cash and cash equivalents held in Trust
32,841

 
26,046

Investments held in Trust
146,517

 
126,788

Other (1)
16,925

 
11,944

Total restricted cash and investments
$
231,193

 
$
188,412


(1)
Primarily consists of deferred compensation plan accounts, which are comprised of mutual funds classified as available-for-sale securities.
The following tables present fair value disclosures for our held-to-maturity investments, which are carried at amortized cost (in thousands):
 
January 1, 2017
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal debt securities
$
71,618

 
$
443

 
$
(865
)
 
$
71,196

Corporate debt securities
68,934

 
212

 
(352
)
 
68,794

Agency mortgage-backed securities
5,965

 
30

 
(32
)
 
5,963

 
$
146,517

 
$
685

 
$
(1,249
)
 
$
145,953

 
December 25, 2015
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal debt securities
$
67,948

 
$
1,345

 
$
(4
)
 
$
69,289

Corporate debt securities
50,462

 
226

 
(152
)
 
50,536

Agency mortgage-backed securities
8,378

 
73

 
(31
)
 
8,420

 
$
126,788

 
$
1,644

 
$
(187
)
 
$
128,245


The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows (in thousands):
 
January 1, 2017
 
Amortized Cost
 
Fair Value
Due in one year or less
$
15,640

 
$
15,666

Due after one year through five years
73,973

 
73,941

Due after five years through ten years
56,904

 
56,346

 
$
146,517

 
$
145,953


Actual maturities may differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without penalty. We have no significant concentrations of counterparties in our held-to-maturity investment portfolio.
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET

Property and equipment are stated at cost and consist of the following (in thousands):
 
January 1,
2017
 
December 25,
2015
Buildings and land
$
35,514

 
$
32,258

Computers and software
130,317

 
126,003

Furniture and equipment
12,262

 
12,362

Construction in progress
12,073

 
4,757

Gross property and equipment
190,166

 
175,380

Less accumulated depreciation
(126,168
)
 
(117,850
)
Property and equipment, net
$
63,998

 
$
57,530


Capitalized software costs, net of accumulated depreciation, were $19.2 million and $24.6 million as of January 1, 2017 and December 25, 2015, respectively, excluding amounts in Construction in progress. Construction in progress consists primarily of purchased and internally-developed software.

Depreciation expense of property and equipment totaled $21.6 million, $21.9 million, and $17.4 million for the years ended January 1, 2017, December 25, 2015, and December 26, 2014, respectively.
GOODWILL AND INTANGIBLE ASSETS
Goodwill and Intangible Assets
GOODWILL AND INTANGIBLE ASSETS
Goodwill

The following table reflects changes in the carrying amount of goodwill by our new reportable segments (in thousands):

 
PeopleReady
 
PeopleManagement
 
PeopleScout
 
Total Company
Balance at December 26, 2014
 
 
 
 
 
 
 
Goodwill before impairment
$
106,304

 
$
64,875

 
$
116,886

 
$
288,065

Accumulated impairment loss
(46,210
)
 
—

 
—

 
(46,210
)
Goodwill, net
60,094

 
64,875

 
116,886

 
241,855

 
 
 
 
 
 
 
 
Acquired goodwill
—

 
39,102

 
—

 
39,102

Foreign currency translation
—

 
—

 
(12,462
)
 
(12,462
)
 
 
 
 
 
 
 
 
Balance at December 25, 2015
 
 
 
 
 
 
 
Goodwill before impairment
106,304

 
103,977

 
104,424

 
314,705

Accumulated impairment loss
(46,210
)
 
—

 
—

 
(46,210
)
Goodwill, net
60,094

 
103,977

 
104,424

 
268,495

 
 
 
 
 
 
 


Acquired goodwill and other (1)
—

 
(3,831
)
 
25,491

 
21,660

Impairment loss
—

 
(50,700
)
 
(15,169
)
 
(65,869
)
Foreign currency translation
—

 
—

 
(63
)
 
(63
)
 
 
 
 
 
 
 
 
Balance at January 1, 2017
 
 
 
 
 
 
 
Goodwill before impairment
106,304

 
100,146

 
129,852

 
336,302

Accumulated impairment loss
(46,210
)
 
(50,700
)
 
(15,169
)
 
(112,079
)
Goodwill, net
$
60,094

 
$
49,446

 
$
114,683

 
$
224,223



(1) Effective January 4, 2016, we acquired the RPO business of Aon Hewitt, which has been integrated into our PeopleScout service line, and is part of our PeopleScout reportable segment. Accordingly, the goodwill associated with the acquisition has been assigned to our PeopleScout reportable segment based on our preliminary purchase price allocation. For additional information see Note 2: Acquisitions. Effective December 1, 2015, we acquired SIMOS, which is part of our PeopleManagement reportable segment. The amount presented includes year-to-date adjustments to the preliminary SIMOS purchase accounting for goodwill.
Refer to Note 17: Segment Information for further details regarding our change in reportable segments during fiscal 2016.

Intangible assets

Finite-lived intangibles

The following table presents our purchased finite-lived intangible assets (in thousands):
 
January 1, 2017
 
December 25, 2015
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Finite-lived intangible assets (1):
 
 
 
 
 
 
 
 
 
 
 
Customer relationships (2)
$
165,725

 
$
(54,676
)
 
$
111,049

 
$
161,376

 
$
(36,846
)
 
$
124,530

Trade names/trademarks (3)
4,378

 
(3,385
)
 
993

 
5,179

 
(3,447
)
 
1,732

Non-compete agreements
1,400

 
(1,097
)
 
303

 
1,800

 
(1,177
)
 
623

Technologies
17,009

 
(9,683
)
 
7,326

 
17,310

 
(6,536
)
 
10,774

Total finite-lived intangible assets
$
188,512

 
$
(68,841
)
 
$
119,671

 
$
185,665

 
$
(48,006
)
 
$
137,659


(1)
Excludes assets that are fully amortized.
(2)
Balance at January 1, 2017, is net of impairment loss of $28.9 million.
(3)
Balance at January 1, 2017, is net of impairment loss of $4.3 million.

Finite-lived intangible assets include customer relationships and technologies of $34.9 million and $0.4 million, respectively, based on our preliminary purchase price allocation relating to our acquisition of the RPO business of Aon Hewitt. Refer to Note 2: Acquisitions, for additional information regarding this acquisition.

Amortization expense of our finite-lived intangible assets was $25.1 million, $19.9 million, and $12.0 million for the years ended January 1, 2017, December 25, 2015, and December 26, 2014, respectively.
The following table provides the estimated future amortization of finite-lived intangible assets as of January 1, 2017 (in thousands):
2017
$
19,939

2018
19,339

2019
18,058

2020
16,156

2021
12,842

Thereafter
33,337

Total future amortization
$
119,671


Indefinite-lived intangibles

We also held indefinite-lived trade names/trademarks of $6.0 million and $16.2 million as of January 1, 2017 and December 25, 2015, respectively. We began amortizing $5.7 million of previously indefinite-lived trade names over their remaining estimated useful lives of three years, which commenced as of December 26, 2015. In addition, we recorded an impairment charge of $4.5 million, which is discussed in detail below.

Impairments

We evaluate goodwill annually for impairment at the reporting unit level and whenever circumstances occur indicating that goodwill might be impaired. These events or circumstances could include a significant change in the business climate, operating performance indicators, competition, loss of customers, or sale or disposition of a significant portion of a reporting unit. We monitor the existence of potential impairment indicators throughout the fiscal year.

Annual impairment test
The impairment test involves comparing the fair value of each reporting unit to its carrying value, including goodwill. We consider our service lines to be our reporting units for goodwill impairment testing. Our service lines are Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, Centerline, Staff Management, SIMOS, PeopleScout, hrX, and Staff Management (MSP). Fair value reflects the price that a market participant would be willing to pay in a potential sale of the reporting unit. If the fair value exceeds carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure the possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. The implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value.

Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of operating and macroeconomic changes on each reporting unit. The fair value of each reporting unit is estimated using a combination of a discounted cash flow methodology and the market valuation approach using publicly traded company multiples in similar businesses. This analysis required significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. The weighted average cost of capital used in our most recent annual impairment test was risk-adjusted to reflect the specific risk profile of the reporting units and ranged from 12% to 17%. The combined fair values for all reporting units were then reconciled to our aggregate market value of our shares of common stock on the date of valuation, while considering a reasonable control premium.

We performed our annual goodwill impairment analysis as of the first day of our fiscal second quarter of 2016 and recorded a goodwill impairment charge of $65.9 million for the thirteen weeks ended June 24, 2016 with respect to the Staff Management, PlaneTechs, and hrX reporting units as follows:

•
Staff Management (Exclusive recruitment and on-premise management of a facility's contingent industrial workforce) - As reported in our first quarter Form 10-Q for fiscal year 2016, in April 2016, we were notified by our largest customer, Amazon of its plans to reduce the use of contingent labor and realign its contingent labor vendors for warehousing. Our largest customer announced it would be reducing the use of our services for its warehouse fulfillment centers in the United States and focusing our services on its planned expansion of distribution service sites to a national network for delivery direct to the customer. Our largest customer represented approximately $354 million, or 13.1%, of total company revenues for the fiscal year ended December 25, 2015, and $106 million, or 8.0%, of total company revenues for the twenty-six weeks ended June 24, 2016, and $125 million, or 10.4%, for the comparable period in the prior year. We estimated that the change in scope of our services would decrease revenues for the second half of 2016 by approximately $125 million, compared to the prior year. As a result, we lowered our future expectations, which resulted in a goodwill impairment of $33.7 million.

•
PlaneTechs (Skilled mechanics and technicians to the aviation and transportation industries) - Year-to-date revenues have declined in excess of 30% compared to the prior year as significant projects have been completed for a major aviation customer and its supply chain and anticipated projects did not occur to the extent expected. PlaneTechs has been diversifying from providing services to one primary customer without offsetting growth in the broader aviation and transportation marketplace. As a result of significantly underperforming against current year expectations and increased future uncertainty, we lowered our future expectations, which resulted in a goodwill impairment of $17.0 million.

•
hrX (Outsourced recruitment of permanent employees on behalf of clients) - Sales of this service line include our internally developed applicant tracking software (“ATS”). Actual stand-alone ATS sales and service were $3.4 million for fiscal 2015 and have recently declined. ATS sales and prospects have underperformed against our expectations. As a result of underperforming against our current year expectations and increased future uncertainty in customer demand, we lowered our future expectations, which resulted in a goodwill impairment of $15.2 million.

We generally record acquired intangible assets that have finite useful lives, such as customer relationships, in connection with business combinations. We review intangible assets that have finite useful lives and other long-lived assets whenever an event or change in circumstances indicates that the carrying value of the asset may not be recoverable. Factors considered important that could result in an impairment review include, but are not limited to, significant underperformance relative to historical or planned operating results, or significant changes in business strategies. We estimate the recoverability of these assets by comparing the carrying amount of the asset to the future undiscounted cash flows that we expect the asset to generate. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset (if any) are less than the carrying value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on discounted cash flow analysis or other valuation techniques. With the change in scope of services by Staff Management to our largest customer, we lowered our future expectations, which was the primary trigger of an impairment to our acquired customer relationships intangible asset of $28.9 million. Considerable management judgment was necessary to determine key assumptions, including projected revenue and an appropriate discount rate of 13%. Actual future results could vary from our estimates.

We have indefinite-lived intangible assets related to our Staff Management and PeopleScout trade names. We test our trade names/trademarks annually for impairment and when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of our trade names. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess. We used a royalty rate of 10% and a discount rate of 17% in our valuation. Considerable management judgment is necessary to determine key assumptions, including projected revenue, royalty rates, and appropriate discount rates. With the change in scope of services to our largest customer, we have lowered our future expectations, which was the primary trigger of an impairment to the acquired trade name of Staff Management of $4.5 million.

Interim impairment test

In August 2016, we were notified by our largest customer that they will no longer be using our contingent labor services to help expand their delivery stations to distribute and deliver their products directly to their customers. As a result, we expected minimal, if any, revenue activity in Q4 2016 and beyond for our largest customer's delivery stations business. We plan to continue to service their Canadian fulfillment centers. The loss of providing contingent labor services to expand our largest customer's delivery stations was deemed to be a triggering event for purposes of assessing goodwill and the customer relationship definite-lived intangible asset for impairment during the third quarter of 2016. Accordingly, we performed a goodwill impairment test for our Staff Management reporting unit using a blended income and market approach. Considerable management judgment was necessary to determine key assumptions, including estimated future revenues and discount rate. We estimated future revenues from our largest customer of approximately $30 million for 2017 and modest growth rates thereafter. We used a higher discount rate of 25% for Amazon due to the uncertainties associated with this customer, which resulted in a blended discount rate of 15% for Staff Management.

Determining the fair value of our Staff Management reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of recent changes. The fair value of this reporting unit is estimated using a combination of a discounted cash flow methodology and the market valuation approach using publicly traded company multiples in similar businesses. This analysis required significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of this reporting unit.

The estimated fair value of our Staff Management reporting unit was in excess of its carrying value by 20%. This reporting unit also continues to include limited services to our largest customer. As such, we believe this reporting unit carries more risk of future impairment when compared to our other reporting units. Should our largest customer discontinue the use of our services entirely and the rest of Staff Management continues to perform in line with management's current expectations and valuation assumptions, this would not result in a goodwill impairment; however, it would reduce the excess estimated fair value of this reporting unit over its carrying value to less than 20%. The Staff Management reporting unit has goodwill of $10.6 million as of September 23, 2016 and January 1, 2017. We will continue to closely monitor the operational performance of the Staff Management reporting unit as it relates to goodwill impairment.

Spartan and CLP Resources: In the third quarter of fiscal 2016, we finalized the changes to the organizational and reporting structure of our Labor Ready, Spartan Staffing, and CLP Resources service lines. The combined service lines were re-branded as PeopleReady. As a result, we have combined these service lines into one and have recognized an impairment charge of $4.3 million for the remaining net book value of the Spartan and CLP Resources trade name/trademarks intangible assets as of September 23, 2016.
There were no goodwill or intangible asset impairment charges recorded during fiscal 2015 or 2014.
WORKERS' COMPENSATION INSURANCE AND RESERVES
WORKERS' COMPENSATION INSURANCE AND RESERVES
WORKERS’ COMPENSATION INSURANCE AND RESERVES

We provide workers’ compensation insurance for our temporary and permanent employees. The majority of our current workers’ compensation insurance policies cover claims for a particular event above a $2.0 million deductible limit, on a “per occurrence” basis. This results in our being substantially self-insured.
For workers’ compensation claims originating in Washington, North Dakota, Ohio, Wyoming, Canada, and Puerto Rico (our “monopolistic jurisdictions”), we pay workers’ compensation insurance premiums and obtain full coverage under government-administered programs (with the exception of our PeopleReady service lines in the state of Ohio where we have a self-insured policy). Accordingly, because we are not the primary obligor, our financial statements do not reflect the liability for workers’ compensation claims in these monopolistic jurisdictions. Our workers’ compensation reserve is established using estimates of the future cost of claims and related expenses that have been reported but not settled, as well as those that have been incurred but not reported.
Our workers’ compensation reserve for claims below the deductible limit is discounted to its estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. The weighted average discount rate was 1.6% and 1.8% at January 1, 2017 and December 25, 2015, respectively. Payments made against self-insured claims are made over a weighted average period of approximately 4.5 years at January 1, 2017.
The table below presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers' compensation reserve for the periods presented as follows (in thousands):
 
January 1,
2017
 
December 25,
2015
Undiscounted workers’ compensation reserve
$
292,169

 
$
284,306

Less discount on workers' compensation reserve
14,818

 
18,026

Workers' compensation reserve, net of discount
277,351

 
266,280

Less current portion
79,126

 
69,308

Long-term portion
$
198,225

 
$
196,972


Payments made against self-insured claims were $73.6 million, $70.7 million, and $60.6 million for the years ended January 1, 2017, December 25, 2015, and December 26, 2014, respectively.
Our workers’ compensation reserve includes estimated expenses related to claims above our self-insured limits (“excess claims”), and we record a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance carriers. We discount this reserve and corresponding receivable to its estimated net present value using the discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred. The claim payments are made and the corresponding reimbursements from our insurance carriers are received over an estimated weighted average period of approximately 15 years. The discounted workers’ compensation reserve for excess claims was $52.9 million and $49.0 million as of January 1, 2017 and December 25, 2015, respectively. The discounted receivables from insurance companies, net of valuation allowance, were $48.9 million and $45.2 million as of January 1, 2017 and December 25, 2015, respectively, and are included in Other assets, net on the accompanying Consolidated Balance Sheets.
Management evaluates the adequacy of the workers’ compensation reserves in conjunction with an independent quarterly actuarial assessment. Factors considered in establishing and adjusting these reserves include, among other things:
•
changes in medical and time loss (“indemnity”) costs;
•
changes in mix between medical only and indemnity claims;
•
regulatory and legislative developments impacting benefits and settlement requirements;
•
type and location of work performed;
•
impact of safety initiatives; and
•
positive or adverse development of claims.
The table below presents the estimated future payout of our discounted workers' compensation claims reserve for the next five years and thereafter as of January 1, 2017 (in thousands):
2017
$
79,126

2018
43,882

2019
25,220

2020
15,464

2021
9,979

Thereafter
50,750

Sub-total
224,421

Excess claims (1)
52,930

Total
$
277,351

(1)
Estimated expenses related to claims above our self-insured limits for which we have a corresponding receivable for the insurance coverage based on contractual policy agreements.
Workers’ compensation expense consists primarily of changes in self-insurance reserves net of changes in discount, monopolistic jurisdictions’ premiums, insurance premiums, and other miscellaneous expenses. Workers’ compensation expense of $94.0 million, $98.2 million, and $77.5 million was recorded in Cost of services for the years ended January 1, 2017, December 25, 2015, and December 26, 2014, respectively.
LONG-TERM DEBT
Long-term Debt
LONG-TERM DEBT

The components of our borrowings were as follows (in thousands):
 
 
January 1,
2017
 
December 25,
2015
Revolving Credit Facility
 
$
112,507

 
$
218,086

Term Loan
 
25,122

 
27,578

Total debt
 
137,629

 
245,664

Less current portion
 
2,267

 
2,267

Long-term debt, less current portion
 
$
135,362

 
$
243,397



Revolving Credit Facility

Effective June 30, 2014, we entered into a Second Amended and Restated Revolving Credit Agreement for a secured revolving credit facility of $300.0 million with Bank of America, N.A., Wells Fargo Bank, National Association, HSBC and PNC Capital Markets LLC ("Revolving Credit Facility"). The Revolving Credit Facility, which matures June 30, 2019, amended and restated our previous credit facility.

The maximum amount we can borrow under the Revolving Credit Facility is subject to certain borrowing limits. Specifically, we are limited to the sum of 90% of our eligible billed accounts receivable, plus 85% of our eligible unbilled accounts receivable limited to 15% of all our eligible receivables, plus the value of our Tacoma headquarters office building. The real estate lending limit is $17.4 million, and is reduced by $0.4 million on the first day of each calendar quarter. As of January 1, 2017, the Tacoma headquarters office building liquidation value totaled $13.1 million. The borrowing limit is further reduced by the sum of a reserve in an amount equal to the payroll and payroll taxes for our temporary employees for one payroll cycle and certain other reserves, if deemed applicable. Each borrowing has a stated maturity of 90 days or less. At January 1, 2017, $256.4 million was available under the Revolving Credit Facility, $112.5 million was utilized as a draw on the facility, and $8.3 million was utilized by outstanding standby letters of credit, leaving $135.6 million available for additional borrowings. The letters of credit are primarily used to collateralize a portion of our workers' compensation obligation.

On January 4, 2016, in connection with the acquisition of the RPO business of Aon Hewitt, we entered into a Third Amendment ("Amendment") to our Second Amended and Restated Credit Agreement dated June 30, 2014. The Amendment provided for a temporary $30.0 million increase to our existing $300.0 million revolving line of credit, for a total of $330.0 million. The temporary increase expired in $10.0 million increments on April 1, May 1, and June 1 of 2016.

The Amendment also reduced the minimum excess liquidity requirement from $37.5 million to $10.0 million, which increased to $19.3 million, $28.6 million, and $37.5 million on April 1, May 1, and June 1 of 2016, respectively. Excess liquidity is an amount equal to the unused borrowing capacity under the Revolving Credit Facility plus certain unrestricted cash, cash equivalents, and marketable securities. We are required to satisfy a fixed charge coverage ratio in the event we do not meet the excess liquidity requirement. The additional amount available to borrow at January 1, 2017 was $135.6 million and the amount of cash and cash equivalents under control agreements was $27.9 million, for a total of $163.5 million, which was well in excess of the $37.5 million liquidity requirement in effect on January 1, 2017. We are currently in compliance with all covenants related to the Revolving Credit Facility.

Under the terms of the Revolving Credit Facility, we pay a variable rate of interest on funds borrowed that is based on London Interbank Offered Rate (LIBOR) plus an applicable spread between 1.25% and 2.00%. Alternatively, at our option, we may pay interest based upon a base rate plus an applicable spread between 0.25% and 1.00%. The applicable spread is determined by certain liquidity to debt ratios. The base rate is the greater of the prime rate (as announced by Bank of America), the federal funds rate plus 0.50%, or the one-month LIBOR rate plus 1.00%. At January 1, 2017, the applicable spread on LIBOR was 1.50% and the applicable spread on the base rate was 0.625%. As of January 1, 2017, the weighted average interest rate on outstanding borrowings was 2.13%.

A fee of 0.375% is applied against the Revolving Credit Facility's unused borrowing capacity when utilization is less than 25%, or 0.25% when utilization is greater than or equal to 25%. Letters of credit are priced at the margin in effect for LIBOR loans, plus a fronting fee of 0.125%.

Obligations under the Revolving Credit Facility are guaranteed by TrueBlue and material U.S. domestic subsidiaries, and are secured by a pledge of substantially all of the assets of TrueBlue and material U.S. domestic subsidiaries. The Revolving Credit Facility has variable rate interest and approximates fair value as of January 1, 2017 and December 25, 2015.
Term loan agreement
On February 4, 2013, we entered into an unsecured Term Loan Agreement (“Term Loan”) with Synovus Bank in the principal amount of $34.0 million. The Term Loan has a five-year maturity with fixed monthly principal payments, which total $2.3 million annually based on a loan amortization term of 15 years. Interest accrues at the one-month LIBOR index rate plus an applicable spread of 1.50%, which is paid in addition to the principal payments. At our discretion, we may elect to extend the term of the Term Loan by five consecutive one-year extensions. At January 1, 2017, the interest rate for the Term Loan was 2.70%.
At January 1, 2017 and December 25, 2015, the remaining balance of the Term Loan was $25.1 million and $27.6 million, respectively, of which $2.3 million is current and is included in Other current liabilities on our Consolidated Balance Sheets. The Term Loan has variable rate interest and approximates fair value as of January 1, 2017 and December 25, 2015.
The scheduled principal payments for debt are as follows (in thousands):
2017
$
2,267

2018
22,855

Total
$
25,122


Our obligations under the Term Loan may be accelerated upon the occurrence of an event of default under the Term Loan, which includes customary events of default, as well as cross-defaults related to indebtedness under our Revolving Credit Facility and other Term Loan specific defaults. The Term Loan contains customary negative covenants applicable to the Company and our subsidiaries such as indebtedness, certain dispositions of property, the imposition of restrictions on payments under the Term Loan, and other Term Loan specific covenants. We are currently in compliance with all covenants related to the Term Loan.
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

Workers’ compensation commitments
Our insurance carriers and certain state workers’ compensation programs require us to collateralize a portion of our workers’ compensation obligation, for which they become responsible should we become insolvent. The collateral typically takes the form of cash and cash equivalents, highly rated investment grade debt securities, letters of credit, and/or surety bonds. On a regular basis these entities assess the amount of collateral they will require from us relative to our workers' compensation obligation. The majority of our collateral obligations are held in the Trust.
We have provided our insurance carriers and certain states with commitments in the form and amounts listed below (in thousands):
 
January 1,
2017
 
December 25,
2015
Cash collateral held by workers' compensation insurance carriers
$
28,066

 
$
23,133

Cash and cash equivalents held in Trust
32,841

 
26,046

Investments held in Trust
146,517

 
126,788

Letters of credit (1)
7,982

 
4,520

Surety bonds (2)
20,440

 
17,946

Total collateral commitments
$
235,846

 
$
198,433



(1)
We have agreements with certain financial institutions to issue letters of credit as collateral.
(2)
Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which are determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days' notice.
Operating leases

We have contractual commitments in the form of operating leases related to office space and equipment. Future non-cancelable minimum lease payments under our operating lease commitments as of January 1, 2017 are as follows for each of the next five years and thereafter (in thousands):
2017
$
6,729

2018
6,056

2019
5,365

2020
4,593

2021
2,787

Thereafter
602

Total future non-cancelable minimum lease payments
$
26,132


Operating leases are generally renewed in the normal course of business, and most of the options are negotiated at the time of renewal. However, for the majority of our office space leases, we have the right to cancel the lease, typically within 90 days of notification. Accordingly, we have not included the leases with these cancellation provisions in our disclosure of future minimum lease payments. Total rent expense for 2016, 2015, and 2014 was $26.5 million, $23.1 million, and $23.0 million, respectively.
Purchase obligations
Purchase obligations include agreements to purchase goods and services in the ordinary course of business that are enforceable, legally binding, and specify all significant terms. Purchase obligations do not include agreements that are cancelable without significant penalty. We had $11.6 million of purchase obligations as of January 1, 2017, of which $7.6 million are expected to be paid in 2017.
Legal contingencies and developments
We are involved in various proceedings arising in the normal course of conducting business. We believe the liabilities included in our financial statements reflect the probable loss that can be reasonably estimated. The resolution of those proceedings is not expected to have a material effect on our results of operations or financial condition.
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY
Common stock
In July 2011, our Board of Directors approved a program to repurchase $75.0 million of our outstanding common stock. As of January 1, 2017, $29.4 million remained available for repurchase of common stock under the current authorization, which has no expiration date.
Under our authorized stock repurchase program, we repurchased 0.3 million shares of our common stock during 2016 for a total amount of $5.8 million including commissions. During 2015 we did not repurchase any shares of our common stock under our authorized stock repurchase program.
Shares of common stock outstanding include shares of unvested restricted stock. Unvested restricted stock included in reportable shares outstanding was 0.7 million shares as of January 1, 2017 and December 25, 2015.
Preferred stock
We have authorized 20 million shares of blank check preferred stock. The blank check preferred stock is issuable in one or more series, each with such designations, preferences, rights, qualifications, limitations and restrictions as our Board of Directors may determine and set forth in supplemental resolutions at the time of issuance, without further shareholder action. The initial series of blank check preferred stock authorized by the Board of Directors was designated as Series A Preferred Stock. We had no outstanding shares of preferred stock in any of the years presented.
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

We record stock-based compensation expense for restricted and unrestricted stock awards, performance share units, and shares purchased under an employee stock purchase plan.
Our 2016 Omnibus Incentive Plan, effective May 11, 2016 (“Incentive Plan"), provides for the issuance or delivery of up to 1.54 million shares of our common stock over the full term of the Incentive Plan.

Restricted and unrestricted stock awards and performance share units
Under the Incentive Plan, restricted stock awards are granted to executive officers and key employees and vest annually over three or four years. Unrestricted stock awards granted to our Board of Directors vest immediately. Restricted and unrestricted stock-based compensation expense is calculated based on the grant-date market value. We recognize compensation expense on a straight-line basis over the vesting period, net of estimated forfeitures.
Performance share units have been granted to executive officers and certain key employees. Vesting of the performance share units is contingent upon the achievement of revenue and profitability growth goals at the end of each three-year performance period. Each performance share unit is equivalent to one share of common stock. Compensation expense is calculated based on the grant-date market value of our stock and is recognized ratably over the performance period for the performance share units which are expected to vest. Our estimate of the performance units expected to vest is reviewed and adjusted as appropriate each quarter.

Restricted and unrestricted stock awards and performance share units activity for the years ended January 1, 2017, was as follows (shares in thousands):
 
Shares
 
Weighted- average grant-date price
Non-vested at beginning of period
1,218

 
$
22.63

Granted
602

 
$
21.53

Vested
(508
)
 
$
21.02

Forfeited
(103
)
 
$
21.79

Non-vested at the end of the period
1,209

 
$
22.76


The weighted average grant-date price of restricted and unrestricted stock awards and performance share units granted during the years 2016, 2015, and 2014 was $21.53, $23.03, and $26.02, respectively. As of January 1, 2017, total unrecognized stock-based compensation expense related to non-vested restricted stock was approximately $10.4 million, which is estimated to be recognized over a weighted average period of 1.6 years. As of January 1, 2017, total unrecognized stock-based compensation expense related to performance share units was approximately $1.6 million, which is estimated to be recognized over a weighted average period of 1.6 years. The total fair value of restricted shares vested during 2016, 2015, and 2014 was $6.6 million, $6.2 million, and $4.9 million, respectively. The total fair value of performance shares vested during 2016, 2015, and 2014 was $3.3 million, $4.0 million, and $2.1 million, respectively.
Stock options
Our Incentive Plan provides for both nonqualified stock options and incentive stock options (collectively, “stock options”) for directors, officers, and certain employees. We issue new shares of common stock upon exercise of stock options. All of our stock options are vested and expire if not exercised within seven years from the date of grant. Stock option activity was de minimis for fiscal years 2016, 2015, and 2014.
Employee Stock Purchase Plan

Our Employee Stock Purchase Plan (“ESPP”) reserves for purchase 1.0 million shares of common stock. The plan allows eligible employees to contribute up to 10% of their earnings toward the monthly purchase of the Company's common stock. The employee's purchase price is 85% of the lesser of the fair market value of shares on either the first day or the last day of each month. We consider our ESPP to be a component of our stock-based compensation and accordingly we recognize compensation expense over the requisite service period for stock purchases made under the plan. The requisite service period begins on the enrollment date and ends on the purchase date, the duration of which is one month.
The following table summarizes transactions under our ESPP from fiscal years 2016, 2015, and 2014 (shares in thousands):
 
Shares  
 
Average price per  
share
Issued during fiscal year 2016
87

 
$
17.51

Issued during fiscal year 2015
68

 
$
20.65

Issued during fiscal year 2014
64

 
$
21.55


Stock-based compensation expense
Total stock-based compensation expense, which is included in Selling, general and administrative expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), was $9.4 million for fiscal year 2016, and $11.1 million for fiscal years 2015 and 2014, respectively. The related tax benefit was $3.3 million in 2016 and $3.9 million in 2015 and 2014.
DEFINED CONTRIBUTION PLANS
DEFINED CONTRIBUTION PLANS
DEFINED CONTRIBUTION PLANS

We offer both qualified and non-qualified defined contribution plans to eligible employees. Participating employees may elect to defer and contribute a portion of their eligible compensation. The plans offer discretionary matching contributions. The liability for the non-qualified plans was $17.8 million and $12.9 million as of January 1, 2017 and December 25, 2015, respectively. The current and non-current portion of the deferred compensation liability is included in Other current liabilities and Other long-term liabilities, respectively, on our Consolidated Balance Sheets, and is largely offset by restricted investments recorded in Restricted cash and investments on our Consolidated Balance Sheets. The expense for our qualified and non-qualified deferred compensation plans, including our discretionary matching contributions, totaled $2.8 million for 2016 and 2015, respectively, and $2.0 million for 2014, and is recorded in Selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss).
INCOME TAXES
Income Taxes
INCOME TAXES

The provision for income taxes is comprised of the following (in thousands):
 
2016
 
2015
 
2014
Current taxes:
 
 
 
 
 
Federal
$
12,082

 
$
12,665

 
$
(161
)
State
5,448

 
5,611

 
2,614

Foreign
2,677

 
1,882

 
951

Total current taxes
20,207


20,158


3,404

Deferred taxes:
 
 
 
 
 
Federal
(20,693
)
 
4,963

 
10,198

State
(4,064
)
 
81

 
2,481

Foreign
(539
)
 
(2
)
 
86

Total deferred taxes
(25,296
)

5,042


12,765

Provision for income taxes
$
(5,089
)

$
25,200


$
16,169


The items accounting for the difference between income taxes computed at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations and Comprehensive Income (Loss) are as follows (in thousands, except percentages):
 
2016
 
%
 
2015
 
%
 
2014
 
%
Income tax expense (benefit) based on statutory rate
$
(7,119
)
 
35.0
 %
 
$
33,745

 
35.0
 %
 
$
28,641

 
35.0
 %
Increase (decrease) resulting from:
 
 
 
 
 
 
 
 
 
 
 
State income taxes, net of federal benefit
1,373

 
(6.8
)
 
4,175

 
4.3

 
3,213

 
3.9

Tax credits, net
(17,141
)
 
84.3

 
(14,483
)
 
(15.0
)
 
(18,564
)
 
(22.6
)
Non-deductible goodwill impairment charge
17,694

 
(87.0
)
 
—

 
—

 
—

 
—

Non-deductible/non-taxable items
630

 
(3.1
)
 
2,456

 
2.5

 
1,983

 
2.4

Foreign taxes
993

 
(4.8
)
 
(933
)
 
(1.0
)
 
1,037

 
1.3

Other, net
(1,519
)
 
7.4

 
240

 
0.3

 
(141
)
 
(0.2
)
Total taxes on income (loss)
$
(5,089
)
 
25.0
 %
 
$
25,200

 
26.1
 %
 
$
16,169

 
19.8
 %


Our effective tax rate for fiscal 2016 was 25.0%. The principal difference between the statutory federal income tax rate of 35.0% and our effective income tax rate results primarily from non-deductible goodwill impairment and federal Work Opportunity Tax Credit ("WOTC"). This tax credit is designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates. In December of 2015, WOTC was restored through 2019 as a result of the Protecting Americans from Tax Hikes Act of 2015. We recognized $6.0 million of tax benefits from prior year WOTC. We also recognized $17.7 million of tax detriment from non-deductible goodwill impairment. Other differences between the statutory federal income tax rate of 35.0% and our effective tax rate of 25.0% result from state and foreign income taxes and certain non-deductible expenses.


The components of deferred tax assets and liabilities were as follows (in thousands):
 
2016
 
2015
Deferred tax assets:
 
 
 
Allowance for doubtful accounts
$
1,970

 
$
2,295

Accounts payable and other accrued expenses
8,577

 
4,896

Net operating loss carryforwards
2,287

 
2,385

Tax credit carryforwards
2,835

 
8,315

Accrued wages and benefits
9,470

 
10,791

Deferred compensation
7,003

 
5,156

Other
1,090

 
1,057

Total
33,232


34,895

Valuation allowance
(2,266
)
 
(3,227
)
Total deferred tax asset, net of valuation allowance
30,966


31,668

Deferred tax liabilities:
 
 
 
Prepaid expenses, deposits and other current assets
(2,697
)
 
(3,141
)
Depreciation and amortization
(18,330
)
 
(44,383
)
Workers’ compensation
(3,169
)
 
(3,643
)
Total deferred tax liabilities
(24,196
)

(51,167
)
Net deferred tax (liabilities) asset, end of year
$
6,770

 
$
(19,499
)

Deferred taxes related to our foreign currency translation were de minimis for 2016, 2015, and 2014.

The following table summarizes our net operating losses (“NOLs”) and credit carryforwards along with their respective valuation allowance as of January 1, 2017 (in thousands):
 
Carryover Tax Benefit
 
Valuation Allowance
 
Expected Benefit
 
Year Expiration Begins
Year-end tax attributes:
 
 
 
 
 
 
 
Federal WOTCs
$
1,419

 
$
—

 
$
1,419

 
2024
State NOLs
1,093

 
—

 
1,093

 
Various
Foreign NOLs
1,194

 
(1,194
)
 
—

 
Various
California Enterprise Zone credits (1)
1,416

 
(1,072
)
 
344

 
2023
Total
$
5,122

 
$
(2,266
)
 
$
2,856

 
 
(1)
The California Enterprise Zone credits fully expire in 2023.
Our ability to utilize WOTC that carryforward from the Seaton acquisition is limited by Sec. 382 of the Internal Revenue Code. However, pursuant to Notice 2003-65, 2003-40 IRB 747, this limit is increased in the five post-acquisition years by Seaton’s net unrealized built-in gains. We expect to utilize the remaining Seaton federal WOTC carryover of approximately $1.4 million in 2017.
Pre-tax income from operations outside the U.S. was $3.1 million ($12.1 million loss with impairment), $7.1 million, and $3.1 million in 2016, 2015, and 2014, respectively. We have not provided for deferred U.S. income taxes relating to undistributed foreign earnings of $18.6 million as we consider those earning to be permanently invested. Determination of the unrecognized deferred tax liability that would be incurred if such amounts were repatriated is not practicable.
As of January 1, 2017, our liability for unrecognized tax benefits was $2.2 million. If recognized, $1.5 million would impact our effective tax rate. We do not believe the amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the year ended January 1, 2017. This liability is recorded in Other non-current liabilities on our Consolidated Balance Sheets. In general, the tax years 2013 through 2015 remain open to examination by the major taxing jurisdictions where we conduct business.
The following table summarizes the activity related to our unrecognized tax benefits (in thousands):
 
2016
 
2015
 
2014
Balance, beginning of fiscal year
$
2,195

 
$
2,039

 
$
2,035

Increases for tax positions related to the current year
348

 
436

 
389

Reductions due to lapsed statute of limitations
(301
)
 
(280
)
 
(385
)
Balance, end of fiscal year
$
2,242

 
$
2,195

 
$
2,039


We recognize interest and penalties related to unrecognized tax benefits within Income tax expense on the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). Accrued interest and penalties are included within Other long-term liabilities on the Consolidated Balance Sheets. Related to the unrecognized tax benefits noted above, we accrued a de minimis amount for interest and penalties during fiscal 2016 and, in total, as of January 1, 2017, have recognized a liability for penalties of $0.2 million and interest of $0.9 million.
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE

Diluted common shares were calculated as follows (in thousands, except per share amounts):
 
Years ended
 
2016
 
2015
 
2014
Net income (loss)
$
(15,251
)
 
$
71,247

 
$
65,675

 
 
 
 
 
 
Weighted average number of common shares used in basic net income (loss) per common share
41,648

 
41,226

 
40,734

Dilutive effect of non-vested restricted stock
—

 
396

 
442

Weighted average number of common shares used in diluted net income (loss) per common share
41,648

 
41,622


41,176

Net income (loss) per common share:
 
 
 
 
 
Basic
$
(0.37
)
 
$
1.73

 
$
1.61

Diluted
$
(0.37
)
 
$
1.71

 
$
1.59

 
 
 
 
 
 
Anti-dilutive shares
—

 
89

 
58

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) is reflected as a net increase (decrease) to shareholders’ equity and consists of foreign currency translation adjustments and the unrealized gains and losses, net of taxes, on available-for-sale securities. Changes in the balance of each component of accumulated other comprehensive income (loss) during the years ended January 1, 2017 and December 25, 2015 were as follows (in thousands):
 
Foreign currency translation adjustment (1)
 
Unrealized gain (loss) on investments (2)
 
Total other comprehensive income (loss), net of tax
Balance at December 26, 2014
$
848

 
$
23

 
$
871

Current-period other comprehensive loss
(14,362
)
 
(522
)
 
(14,884
)
Balance at December 25, 2015
(13,514
)
 
(499
)
 
(14,013
)
Current-period other comprehensive income
1,830

 
750

 
2,580

Balance at January 1, 2017
$
(11,684
)
 
$
251

 
$
(11,433
)

(1)
During 2015, we made a U.S. tax election for our Australian subsidiary that caused our permanent intercompany loan to be settled for tax purposes, resulting in a tax impact of $3.0 million on foreign currency translation adjustments. The tax impact on foreign currency translation adjustments for fiscal years 2016 and 2014 was de minimis.
(2)
Consists of deferred compensation plan accounts, which are comprised of mutual funds classified as available-for-sale securities. The tax impact on unrealized gain on available-for-sale securities was de minimis for fiscal years 2016, 2015, and 2014.

There were no material reclassifications out of accumulated other comprehensive loss during the fiscal periods presented.
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION
SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental disclosure of cash flow information (in thousands):
 
Years ended
 
2016
 
2015
 
2014
Cash paid during the period for:
 
 
 
 
 
Interest
$
4,083

 
$
3,504

 
$
2,483

Income taxes
10,312

 
34,401

 
9,140

As of January 1, 2017, December 25, 2015, and December 26, 2014, we had acquired $1.5 million, $0.3 million, and $1.0 million, respectively, of property and equipment on account that was not yet paid. In fiscal 2015, we recorded $19.3 million of contingent consideration in connection with our SIMOS acquisition, which will be payable in 2017. In fiscal 2016, we finalized our fair value assessment of our acquisition of SIMOS and recorded net year-to-date non-cash adjustments to finalize the SIMOS purchase accounting of $3.8 million, with corresponding adjustments to goodwill. These are considered non-cash investing items.
SEGMENT INFORMATION
SEGMENT INFORMATION
SEGMENT INFORMATION

Commencing in the fourth quarter of 2016, we changed our internal reporting structure to better align our operations with customer needs and how our chief operating decision maker, our Chief Executive Officer, currently evaluates financial results to determine resource allocation and assess performance. As a result of this change, our former Staffing Services reportable segment has been separated into two reportable segments, PeopleReady and PeopleManagement, and our former Managed Services reportable segment has been renamed PeopleScout. In addition, we changed our methodology for allocating certain corporate costs to our segments, which decreased our corporate unallocated expenses. The prior year amounts have been recast to reflect this change for consistency purposes.

In the second quarter of fiscal 2016, we finalized the changes to the organizational and reporting structure of our PeopleScout and hrX service lines. As a result, we have combined these service lines and they no longer represent separate operating units. At the end of the third quarter of fiscal 2016, we finalized the changes to the organizational and reporting structure of our Labor Ready, Spartan Staffing, and CLP Resources retail branch service lines. The combined service lines were re-branded as PeopleReady. As a result, we have combined these service lines and they no longer represent separate operating units.

Effective January 4, 2016, our PeopleScout service line acquired certain assets and assumed certain liabilities of the RPO business of Aon Hewitt, which expands our RPO service offering. The RPO business of Aon Hewitt has been integrated into our PeopleScout service line, which is part of our PeopleScout reportable segment. Effective December 1, 2015, we acquired SIMOS, which broadens our on-premise contingent staffing solution and is part of our PeopleManagement reportable segment. Effective June 30, 2014, we acquired Seaton, which added a full service line of on-premise blue-collar staffing, complementary service offerings in recruitment process outsourcing, and managed services provider solutions.

Our service lines, which are our operating segments, and reportable segments are described below:

Our PeopleReady reportable segment provides blue-collar contingent staffing through the PeopleReady service line. PeopleReady provides on-demand and skilled labor in the manufacturing, logistics, and energy construction industries, as well as building and plant maintenance.
Our PeopleManagement reportable segment provides primarily on-premise contingent staffing and on-premise management of those contingent staffing services through the following operating segments, which we aggregated into one reportable segment in accordance with U.S. GAAP:
•
Staff Management: Exclusive recruitment and on-premise management of a facility's contingent industrial workforce;
•
SIMOS: On-premise management and recruitment of a facility's contingent industrial workforce;
•
Centerline Drivers: Recruitment and management of temporary and dedicated drivers to the transportation and distribution industries; and
•
PlaneTechs: Skilled mechanics and technicians, including on-premise management thereof, to the aviation and transportation industries.

Our PeopleScout reportable segment provides high-volume permanent employee recruitment process outsourcing and management of outsourced labor service providers through the following operating segments, which we aggregated into one reportable segment in accordance with U.S. GAAP:
•
PeopleScout: Outsourced recruitment of permanent employees on behalf of clients; and
•
PeopleScout MSP: Management of multiple third party staffing vendors on behalf of clients.

We have two measures of segment performance: revenue from services and income from operations. Income from operations for each segment includes net sales to third parties, related cost of sales, and operating expenses directly attributable to the segment. Costs excluded from segment income from operations include various corporate general and administrative expenses, depreciation and amortization expense, and interest and other expense, net. Asset information by reportable segment is not presented since we do not manage our segments on a balance sheet basis. There are no material internal revenue transactions between our reporting segments.

Revenue from services and income (loss) from operations associated with our segments were as follows (in thousands):
 
2016
 
2015
 
2014
Revenue from services
 
 
 
 
 
PeopleReady
$
1,629,455

 
$
1,625,817

 
$
1,534,547

PeopleManagement
940,453

 
965,331

 
591,366

PeopleScout
180,732

 
104,532

 
48,132

Total Company
$
2,750,640

 
$
2,695,680


$
2,174,045

 
 
 
 
 
 
Income (loss) from operations
 
 
 
 
 
PeopleReady
$
101,270

 
$
123,899

 
$
105,731

PeopleManagement
(60,452
)
 
36,512

 
28,828

PeopleScout
19,116

 
9,324

 
3,074

Depreciation and amortization
(46,692
)
 
(41,843
)
 
(29,474
)
Corporate unallocated
(30,237
)
 
(30,050
)
 
(26,431
)
Total Company
(16,995
)
 
97,842


81,728

Interest and other income (expense), net
(3,345
)
 
(1,395
)
 
116

Income (loss) before tax expense
$
(20,340
)
 
$
96,447


$
81,844



Our international operations are primarily in Canada and Australia. Revenues by region were as follows (in thousands, except percentages):
 
2016
 
2015
 
2014
United States
$
2,644,414

 
96.1
%
 
$
2,603,085

 
96.6
%
 
$
2,096,958

 
96.5
%
International operations
106,226

 
3.9
%
 
92,595

 
3.4
%
 
77,087

 
3.5
%
Total revenue from services
$
2,750,640

 
100.0
%
 
$
2,695,680

 
100.0
%
 
$
2,174,045

 
100.0
%


No single customer represented more than 10% of total Company revenue for fiscal 2016 nor 2014. One customer represented 13.1% of total Company revenue for fiscal 2015. Customer concentration for our reportable segments is as follows:

•
No single customer represented more than 10% of our PeopleReady reportable segment revenue for fiscal 2016, 2015, or 2014.
•
One customer represented 18.2%, 36.7%, and 30.6% of our PeopleManagement reportable segment revenue in fiscal 2016, 2015, and 2014, respectively.
•
Two customers represented 12.8% and 10.0%, respectively of our PeopleScout reportable segment revenue for fiscal 2016. Two customers represented 10.6% and 10.2%, respectively of our PeopleScout reportable segment revenue for fiscal 2015, which were different from those in fiscal 2016. No single customer represented more than 10% of our PeopleScout reportable segment revenue for fiscal 2014.

Net property and equipment located in international operations was approximately 7% and 2% of total property and equipment as of January 1, 2017 and December 25, 2015, respectively.
SELECTED QUARTERLY FINANCIAL DATA (Notes)
Selected Quarterly Financial Data
SELECTED QUARTERLY FINANCIAL DATA (unaudited; in thousands, except per share data)
 
First
 
Second
 
Third
 
Fourth
2016
 
 
 
 
 
 
 
Revenue from services
$
645,980

 
$
672,612

 
$
697,097

 
$
734,951

Cost of services
495,468

 
502,688

 
518,702

 
554,064

Gross profit
150,512

 
169,924

 
178,395

 
180,887

Selling, general and administrative expenses
130,624

 
135,787

 
134,679

 
145,387

Depreciation and amortization
11,289

 
11,694

 
11,690

 
12,019

Goodwill and intangible asset impairment charge
—

 
99,269

 
4,275

 
—

Income (loss) from operations
8,599

 
(76,826
)
 
27,751

 
23,481

Interest expense
(1,969
)
 
(1,740
)
 
(1,721
)
 
(1,736
)
Interest and other income
950

 
853

 
854

 
1,164

Interest expense, net
(1,019
)
 
(887
)
 
(867
)
 
(572
)
Income (loss) before tax expense
7,580

 
(77,713
)
 
26,884

 
22,909

Income tax expense (benefit)
612

 
(13,978
)
 
3,455

 
4,822

Net income (loss)
$
6,968

 
$
(63,735
)
 
$
23,429

 
$
18,087

Net income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
0.17

 
$
(1.53
)
 
$
0.56

 
$
0.43

Diluted
$
0.17

 
$
(1.53
)
 
$
0.56

 
$
0.43

2015
 
 
 
 
 
 
 
Revenue from services
$
573,315

 
$
627,714

 
$
683,918

 
$
810,733

Cost of services
443,479

 
475,748

 
515,051

 
625,729

Gross profit
129,836

 
151,966

 
168,867

 
185,004

Selling, general and administrative expenses
111,593

 
117,859

 
125,117

 
141,419

Depreciation and amortization
10,520

 
10,397

 
10,498

 
10,428

Income from operations
7,723

 
23,710

 
33,252

 
33,157

Interest expense
(1,166
)
 
(881
)
 
(933
)
 
(1,180
)
Interest and other income
632

 
679

 
567

 
887

Interest expense, net
(534
)
 
(202
)
 
(366
)
 
(293
)
Income before tax expense
7,189

 
23,508

 
32,886

 
32,864

Income tax expense
1,473

 
6,235

 
12,796

 
4,696

Net income
$
5,716

 
$
17,273

 
$
20,090

 
$
28,168

Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.14

 
$
0.42

 
$
0.49

 
$
0.68

Diluted
$
0.14

 
$
0.42

 
$
0.48

 
$
0.67

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

We evaluated events and transactions occurring after the balance sheet date through the date the financial statements were issued, and identified no other events that were subject to recognition or disclosure.
Schedule II - Valuation and Qualifying Accounts (Notes)
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]
FINANCIAL STATEMENT SCHEDULES
Schedule II, Valuation and Qualifying Accounts (in thousands)
Allowance for doubtful accounts activity was as follows:
 
 
2016
 
2015
 
2014
Balance, beginning of the year
$
5,902

 
$
7,603

 
$
5,710

Charged to expense
8,171

 
7,132

 
11,815

Write-offs
(8,913
)
 
(8,833
)
 
(9,922
)
Balance, end of year
$
5,160

 
$
5,902

 
$
7,603

Insurance receivable valuation allowance activity was as follows:
 
 
2016
 
2015
 
2014
Balance, beginning of the year
$
3,874

 
$
3,933

 
$
5,652

Charged to expense
207

 
48

 
—

Release of allowance
(62
)
 
(107
)
 
(1,719
)
Balance, end of year
$
4,019

 
$
3,874

 
$
3,933

Income tax valuation allowance activity was as follows:
 
 
2016
 
2015
 
2014
Balance, beginning of the year
$
3,227

 
$
2,844

 
$
844

Acquisition
—

 
—

 
2,068

Charged to expense
579

 
383

 
(68
)
Release of allowance
(1,540
)
 
—

 
—

Balance, end of year
$
2,266

 
$
3,227

 
$
2,844

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
Basis of presentation 
Basis of presentation
The consolidated financial statements include the accounts of TrueBlue and all of its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The consolidated financial statements include the results of operations and cash flows of the RPO business of Aon Hewitt from the acquisition date to January 1, 2017, and not from any prior periods. For additional information see Note 2: Acquisitions.
Reclassifications 
Reclassifications
Certain reclassifications have been made to prior year balances in order to conform to the current year's presentation, including reclassifications related to our change in reportable segments.
Fiscal period end 
Fiscal period end

During the fourth fiscal quarter of 2016, we changed our week-ending date from Friday to the following Sunday in order to better align our week-ending date with that of our customers. On December 15, 2016, we changed our fiscal period end day from the last Friday to the Sunday closest to the last day of December. Our fiscal quarters will also end on the Sunday closet to the last day in March, June, and September. This change is effective with our fiscal year ended January 1, 2017. In prior years, the consolidated financial statements were presented with the last day of the fiscal year ending on the last Friday of December. The change in fiscal year end and quarter end will not have a material effect on the comparability of the periods presented.

The consolidated financial statements are presented on a 52/53-week fiscal year end basis, with the last day of the fiscal year currently ending on the Sunday closest to the last day of December. In fiscal years consisting of 53 weeks, the final quarter will consist of 14 weeks while in 52-week years all quarters will consist of 13 weeks. The three most recent years ended on January 1, 2017, December 25, 2015, and December 26, 2014. Our 2016 fiscal year contained 53 weeks, with the 53rd week falling in our fourth fiscal quarter, while our 2015 and 2014 fiscal years contained 52 weeks.
Revenue recognition 
Revenue recognition

Revenue is recognized at the time the service is provided by the temporary worker. Revenue from permanent placement services is recognized at the time the permanent placement candidate begins full-time employment. Revenue from other staffing fee-based services is recognized when the services are provided. Revenue also includes billable travel and other reimbursable costs. Customer discounts or other incentives are recognized in the period the related revenue is earned. Revenues are reported net of sales, use, or other transaction taxes collected from customers and remitted to taxing authorities.
We record revenue on a gross basis as a principal versus on a net basis as an agent in the Consolidated Statements of Operations and Comprehensive Income (Loss). We have determined that gross reporting as a principal is the appropriate treatment based upon the following key factors:
•
We maintain the direct contractual relationship with the customer.
•
We have discretion in selecting and assigning the temporary worker to a particular job and establishing their billing rate.
•
We bear the risk and rewards of the transaction, including credit risk, if the customer fails to pay for services performed.
Cost of services 
Cost of services
Cost of services refers to costs directly associated with the earning of revenue and primarily includes wages and related payroll taxes and workers’ compensation expenses. Cost of services also includes billable travel as well as other reimbursable and non-reimbursable expenses.
Advertising cost 
Advertising costs
Advertising costs consist primarily of print and other promotional activities. We expense advertisements as of the first date the advertisements take place. Advertising expenses included in Selling, general and administrative expenses were $7.8 million, $9.1 million, and $6.2 million in 2016, 2015, and 2014, respectively.
Cash, cash equivalents, and marketable securities 
Cash, cash equivalents, and marketable securities
We consider all highly liquid instruments purchased with an original maturity of three months or less at date of purchase to be cash equivalents. Investments with original maturities greater than three months are classified as marketable securities. We do not buy and hold securities principally for the purpose of selling them in the near future. Our investment policy is focused on the preservation of capital, liquidity, and return. From time to time, we may sell certain securities but the objective is generally not to generate profits on short-term differences in price. We manage our cash equivalents and marketable securities as a single portfolio of highly liquid securities.
Accounts receivable and allowance for doubtful accounts 
Accounts receivable and allowance for doubtful accounts
Accounts receivable are recorded at the invoiced amount. We establish an allowance for doubtful accounts for estimated losses resulting from the failure of our customers to make required payments. The allowance for doubtful accounts is determined based on current collection efforts, historical collection trends, write-off experience, customer credit risk, and current economic data. The allowance for doubtful accounts is reviewed quarterly and represents our best estimate of the amount of probable credit losses. Past due balances are written off when it is probable the receivable will not be collected. Our allowance for doubtful accounts was $5.2 million and $5.9 million as of January 1, 2017 and December 25, 2015, respectively.
Restricted cash and investments 
Restricted cash and investments
Cash and investments pledged as collateral and restricted to use for workers' compensation insurance programs are included as Restricted cash and investments on our Consolidated Balance Sheets. Our investments consist of highly rated investment grade debt securities, which are rated A1/P1 or higher for short-term securities and A- or higher for long-term securities, by nationally recognized statistical rating organizations. We have the positive intent and ability to hold all these restricted investments until maturity in accordance with our investment policy and, accordingly, all of our restricted investments are classified as held-to-maturity. In the event that an investment is downgraded, it is replaced with a highly rated investment grade security. We review for impairment on a quarterly basis and do not consider temporary unrealized losses to be an impairment.
We have an agreement with AIG and the Bank of New York Mellon creating a trust ("Trust"), which holds the majority of our collateral obligations under existing workers' compensation insurance policies. Placing the collateral in the Trust allows us to manage the investment of the assets and provides greater protection of those assets.
Fair value of financial instruments and investments 
Fair value of financial instruments and investments
Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For assets and liabilities recorded or disclosed at fair value on a recurring basis, we determine fair value based on the following:
Level 1: The carrying value of cash and cash equivalents and mutual funds approximates fair value because of the short-term nature of these instruments. Inputs are valued using quoted market prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices in active markets for identical assets and liabilities. Instead we use quoted prices for similar instruments in active markets or quoted prices or we estimate the fair value using a variety of valuation methodologies, which include observable inputs for comparable instruments and unobservable inputs. Our investments consist of highly rated investment grade debt securities, which are rated A1/P1 or higher for short-term securities and A- or higher for long-term securities, by nationally recognized statistical rating organizations.
Level 3: For assets and liabilities with unobservable inputs, we typically rely on management's estimates of assumptions that market participants would use in pricing the asset or liability.
The carrying value of our cash and cash equivalents and restricted cash approximates fair value because of the short-term maturity of those instruments. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions.
The carrying value of our accounts receivable, accounts payable and other accrued expenses, and accrued wages and benefits approximates fair value due to their short-term nature. We also hold certain restricted investments which collateralize workers' compensation programs and are classified as held-to-maturity and carried at amortized cost on our Consolidated Balance Sheets.
Certain items such as goodwill and other intangible assets are recognized or disclosed at fair value on a non-recurring basis. We determine the fair value of these items using Level 3 inputs, as described in the related sections below.
Property and equipment 
Property and equipment
Property and equipment are recorded at cost. We compute depreciation using the straight-line method over the estimated useful lives of the assets as follows:
 
Years
Buildings
40
Computers and software
3 - 10  
Furniture and equipment
3 - 10  

Leasehold improvements are amortized over the shorter of the related non-cancelable lease term, which is typically 90 days, or their estimated useful lives.
Non-capital expenditures associated with opening new locations are expensed as incurred.
When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss, net of proceeds, is reflected on the Consolidated Statements of Operations and Comprehensive Income (Loss).
Repairs and maintenance costs are charged directly to expense as incurred. Major renewals or replacements that substantially extend the useful life of an asset are capitalized and depreciated.
Costs associated with the acquisition or development of software for internal use are capitalized and amortized over the expected useful life of the software, from three to ten years. A subsequent addition, modification, or upgrade to internal-use software is capitalized to the extent that it enhances the software's functionality or extends its useful life. Software maintenance and training costs are expensed in the period incurred.
Leases 
Leases
We conduct our branch office operations from leased locations. Many leases require payment of real estate taxes, insurance, and common area maintenance, in addition to rent. The terms of our lease agreements generally range from three to five years with options to cancel, typically within 90 days of notification.
For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the minimum lease term. We record any difference between the straight-line rent amounts and amounts payable under the leases as part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.
Cash or lease incentives received upon entering into certain leases ("tenant allowances") are recognized on a straight-line basis as a reduction to rent from the date we take possession of the property through the end of the initial lease term. We record the unamortized portion of tenant allowances as a part of deferred rent, in accrued liabilities or long-term liabilities, as appropriate.
Finite-lived intangible assets 
Finite-lived intangible assets
Intangible assets primarily consist of identifiable finite-lived intangible assets acquired through acquisitions and include trade names/trademarks, customer relationships, non-compete agreements, and acquired technology. We amortize intangible assets using the straight-line method over their useful lives. We amortize non-compete covenants using the straight-line method over the lives of the related agreements.

Goodwill 
Goodwill
Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. If necessary, we reassign goodwill using a relative fair value allocation approach. We test for goodwill impairment at the reporting unit level. We consider our service lines to be our reporting units for goodwill impairment testing. At the time of our annual impairment test, our service lines were Labor Ready, Spartan Staffing, CLP Resources, PlaneTechs, Centerline, Staff Management, SIMOS, PeopleScout, hrX, and PeopleScout MSP. The impairment test involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the fair value exceeds carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. The implied fair value of the reporting unit’s goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value.
Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of operating and macroeconomic changes on each reporting unit. The fair value of each reporting unit is estimated using a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. We also identify similar publicly traded companies and develop a correlation, referred to as a multiple, to apply to the operating results of the reporting units. The primary market multiples we compare to are revenue and earnings before interest, taxes, depreciation, and amortization. These combined fair values are then reconciled to our aggregate market value of our shares of common stock on the date of valuation, while considering a reasonable control premium.
We consider a reporting unit’s fair value to be substantially in excess of its carrying value at 20% or greater. We base fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates.
We performed our annual goodwill impairment analysis and recorded a goodwill impairment charge of $65.9 million in fiscal 2016 with respect to the Staff Management, PlaneTechs, and hrX reporting units. Refer to Note 6: Goodwill and Intangible Assets for further details.
There were no goodwill impairment charges recorded during fiscal 2015 or 2014.
Long-lived asset impairment 
Long-lived asset impairment
Long-lived assets include property and equipment and indefinite-lived intangible assets. Property and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. We have determined that no triggering events have occurred during the period that would require us to perform an impairment test over property and equipment. We have indefinite-lived intangible assets related to our Staff Management and PeopleScout trade names. We test our trade names annually for impairment, and when indications of potential impairment exist. We utilize the relief from royalty method to determine the fair value of each of our trade names. If the carrying value exceeds the fair value, we recognize an impairment loss in an amount equal to the excess, not to exceed the carrying value. Management uses considerable judgment to determine key assumptions, including projected revenue, royalty rates and appropriate discount rates. We performed our annual indefinite-lived intangible asset impairment test as the first day of our second fiscal quarter and determined that the estimated fair values exceeded the carrying amounts of the PeopleScout reporting unit indefinite-lived trade name and accordingly no impairment loss was recognized.

During fiscal 2016, we recognized an impairment loss on long-lived assets of $37.7 million due to a change in scope of services by Staff Management for our largest customer, as well as a change to the organizational and reporting structure of our Labor Ready, Spartan Staffing, and CLP Resources service lines, which were combined and re-branded as PeopleReady. Refer to Note 6: Goodwill and Intangible Assets for further details.
There were no long-lived asset impairment charges recorded during fiscal 2015 or 2014.
Business combinations 
Business combinations
We account for our business acquisitions using the purchase method of accounting in accordance with ASC 805, Business Combinations. The fair value of the net assets acquired and the results of the acquired business are included in the financial statements from the acquisition date forward. We are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the reporting period. Estimates are used in accounting for, among other things, the fair value of acquired net operating assets, property and equipment, intangible assets, useful lives of property and equipment, and amortizable lives for acquired intangible assets. Any excess of the purchase consideration over the identified fair value of the assets and liabilities acquired is recognized as goodwill. Goodwill acquired in business combinations is assigned to the reporting unit(s) expected to benefit from the combination as of the acquisition date. We estimate the fair value of acquired assets and liabilities as of the date of the acquisition based on information available at that time. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change between the preliminary allocation and the final allocation. Any changes to these estimates may have a material impact on our operating results or financial condition.
All acquisition-related costs are expensed as incurred and recorded in Selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). Additionally, we recognize liabilities for anticipated restructuring costs that will be necessary due to the elimination of excess capacity, redundant assets, or unnecessary functions and record them as Selling, general, and administrative expense.
Workers' compensation claims reserves 
Workers’ compensation claims reserves
We maintain reserves for workers’ compensation claims using actuarial estimates of the future cost of claims and related expenses. These estimates include claims that have been reported but not settled and claims that have been incurred but not reported. These reserves, which reflect potential liabilities to be paid in future periods based on estimated payment patterns, are discounted to estimated net present value using discount rates based on average returns of “risk-free” U.S. Treasury instruments, which are evaluated on a quarterly basis. We evaluate the reserves regularly throughout the year and make adjustments accordingly. If the actual cost of such claims and related expenses exceeds the amounts estimated, additional reserves may be required. Changes in reserve estimates are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss) in the period when the changes in estimates are made.
Our workers’ compensation reserves include estimated expenses related to claims above our self-insured limits (“excess claims”) and a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance companies. We discount the liability and its corresponding receivable to its estimated net present value using the “risk-free” rates associated with the actuarially determined weighted average lives of our excess claims. When appropriate, based on our best estimate, we record a valuation allowance against the insurance receivable to reflect amounts that may not be realized.
Legal contingency reserves and regulatory liabilities 
Legal contingency reserves and regulatory liabilities
From time to time we are subject to compliance audits by federal, state and local authorities relating to a variety of regulations including wage and hour laws, taxes, workers’ compensation, immigration, and safety. In addition, we are subject to legal proceedings in the ordinary course of our operations. We establish reserves for contingent legal and regulatory liabilities when management determines that it is probable that a legal claim will result in an adverse outcome and the amount of liability can be reasonably estimated. To the extent that an insurance company is contractually obligated to reimburse us for a liability, we record a receivable for the amount of the probable reimbursement. We evaluate our reserve regularly throughout the year and make adjustments as needed. If the actual outcome of these matters is different than expected, an adjustment is charged or credited to expense in the period the outcome occurs or the period in which the estimate changes.
Income taxes and related valuation allowance 
Income taxes and related valuation allowance
We account for income taxes by recording taxes payable or receivable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. These expected future tax consequences are measured based on provisions of tax law as currently enacted; the effects of future changes in tax laws are not anticipated. Future tax law changes, such as changes to the federal and state corporate tax rates and the mix of states and their taxable income, could have a material impact on our financial condition or results of operations. When appropriate, we record a valuation allowance against deferred tax assets to offset future tax benefits that may not be realized. In determining whether a valuation allowance is appropriate, we consider whether it is more likely than not that all or some portion of our deferred tax assets will not be realized, based in part upon management’s judgments regarding future events and past operating results. Based on that analysis, we have determined that a valuation allowance is appropriate for certain net operating losses and tax credits that we expect will not be utilized within the permitted carry forward periods as of January 1, 2017 and December 25, 2015.
Share-based compensation 
Stock-based compensation
Under various plans, officers, employees, and non-employee directors have received or may receive grants of stock, restricted stock awards, performance share units, or options to purchase common stock. We also have an employee stock purchase plan.
Compensation expense for restricted stock awards and performance share units is generally recognized on a straight-line basis over the vesting period, based on the stock’s fair market value on the grant date. For restricted stock and performance share unit grants issued with performance conditions, compensation expense is recognized over each vesting period based on assessment of the likelihood of meeting these conditions. We recognize compensation expense for only the portion of restricted stock and performance share units that is expected to vest, rather than record forfeitures when they occur. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in the future periods. We determine the fair value of options to purchase common stock using the Black-Scholes valuation model, which requires the input of subjective assumptions. We recognize expense over the service period for options that are expected to vest and record adjustments to compensation expense at the end of the service period if actual forfeitures differ from original estimates.
Foreign currency 
Foreign currency
Our consolidated financial statements are reported in U.S. dollars. Assets and liabilities of international subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at the exchange rates in effect on the balance sheet date. Revenues and expenses for each subsidiary are translated to U.S. dollars using a weighted average rate for the relevant reporting period. Translation adjustments resulting from this process are included, net of tax, in other comprehensive income ("OCI") where applicable. Currency gains and losses on intercompany loans intended to be a permanent investments in international subsidiaries are included, net of tax, in OCI.
Purchases and retirement of our common stock 
Purchases and retirement of our common stock

We may purchase our common stock under a program authorized by our Board of Directors. Under applicable Washington State law, shares purchased are not displayed separately as treasury stock on the Consolidated Balance Sheets and are treated as authorized but unissued shares. It is our accounting policy to first record these purchases as a reduction to our common stock account. Once the common stock account has been reduced to a nominal balance, remaining purchases are recorded as a reduction to our Retained earnings. Furthermore, activity in our common stock account related to stock-based compensation is also recorded to Retained earnings until such time as the reduction to Retained earnings due to stock repurchases has been recovered.
Net income (loss) per share 
Net income (loss) per share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares include the dilutive effects of vested and non-vested restricted stock, performance share units, and shares issued under the employee stock purchase plan, except where their inclusion would be anti-dilutive.
Anti-dilutive shares primarily include non-vested restricted stock, and performance share units for which the sum of the assumed proceeds, including unrecognized compensation expense, exceeds the average stock price during the periods presented. Anti-dilutive shares associated with our stock options relate to those stock options with an exercise price higher than the average market value of our stock during the periods presented.
Use of estimates 
Use of estimates
Preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Estimates in our financial statements include, but are not limited to, purchase accounting, allowance for doubtful accounts, estimates for asset and goodwill impairments, stock-based performance awards, assumptions underlying self-insurance reserves, contingent legal and regulatory liabilities, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions.
New Accounting Pronouncements and Changes in Accounting Principles 
Recently adopted accounting standards

Effective December 26, 2015, we early adopted the accounting standard that simplified the balance sheet disclosure of deferred income taxes retrospectively to all periods presented. This guidance requires deferred tax liabilities and assets to be classified as non-current on the Consolidated Balance Sheets. The guidance is effective for annual periods beginning after December 15, 2016, and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The adoption of this standard did not have a material impact to our financial statements.

Recently issued accounting pronouncements not yet adopted

In January 2017, the Financial Accounting Standards Board ("FASB") issued guidance to simplify the subsequent measurement of goodwill by eliminating the requirement to perform a Step 2 impairment test to compute the implied fair value of goodwill. Instead, companies will only compare the fair value of a reporting unit to its carrying value (Step 1) and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized may not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This amended guidance is effective for fiscal years and interim periods beginning after December 15, 2019 (Q1 2020 for TrueBlue), with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We plan to early adopt this guidance for our annual impairment test as of the first day of our fiscal second quarter of 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In November 2016, the FASB issued guidance to amend the presentation of restricted cash and restricted cash equivalents on the statement of cash flows. The standard requires restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amended guidance is effective for fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue), with early adoption permitted. We plan to adopt this guidance on the effective date. Changes in restricted cash and cash equivalents recorded in cash flows from investing were $19.8 million, $18.4 million, and $9.3 million for fiscal 2016, 2015, and 2014, respectively.

In October 2016, FASB issued guidance on the accounting for income tax effects of intercompany sales or transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity sale or transfer of an asset other than inventory when the sale or transfer occurs, rather than when the assets has been sold to an outside party. This guidance is effective for fiscal years and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue), with early adoption permitted. The guidance will require a modified retrospective application with a cumulative catch-up adjustment to opening retained earnings. We plan to adopt this guidance on the effective date and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In August 2016, the FASB issued an accounting standards update relating to how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. The update is intended to reduce the existing diversity in practice. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 (Q1 2018 for TrueBlue), with early adoption permitted, including adoption in an interim period. The adoption of the amendment should be applied using the retrospective transition method, if practicable. We plan to adopt this amendment on the effective date and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In June 2016, the FASB issued guidance on accounting for credit losses on financial instruments. This guidance sets forth a current expected credit loss model which requires measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and some off-balance sheet exposures, as well as trade account receivables. This guidance is effective for fiscal years beginning after December 15, 2019 (Q1 2020 for TrueBlue) with early adoption permitted no sooner than Q1 2019. A modified retrospective approach is required for all investments, except debt securities for which an other-than-temporary impairment had been recognized prior to the effective date, which will require a prospective transition approach. We plan to adopt this guidance on the effective date and are currently assessing the impact of the adoption of this guidance on our consolidated financial statements.

In March 2016, the FASB issued guidance to improve employee share-based payment accounting. The simplifications include income tax consequences, classification of awards as equity or liabilities, and classification within the statement of cash flows. This guidance is effective for fiscal years and interim periods beginning after December 15, 2016 (Q1 2017 for TrueBlue), and early adoption is permitted. We plan to adopt the guidance on the effective date. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In February 2016, the FASB issued guidance on lease accounting. The new guidance will continue to classify leases as either finance or operating and will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with classification affecting the pattern of expense recognition in the statement of income. This guidance is effective for annual and interim periods beginning after December 15, 2018 (Q1 2019 for TrueBlue), and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. We plan to adopt the guidance on the effective date. We are currently evaluating the impact of this guidance on our consolidated financial statements and expect that a majority of our operating lease commitments will be recognized on our Consolidated Balance Sheets as operating lease liabilities and right-of-use assets upon adoption. We do not expect the adoption of this guidance to have a material impact on the pattern of expense recognition in our Consolidated Statements of Operations and Comprehensive Income (Loss).

In January 2016, the FASB issued guidance on the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance is effective for annual and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue). Early adoption of the amendments in the guidance is not permitted, with limited exceptions, and should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We plan to adopt the guidance on the effective date. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
 
In May 2014, the FASB issued guidance outlining a single comprehensive model for accounting for revenue arising from contracts with customers which supersedes the current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments as well as assets recognized from costs incurred to obtain or fulfill a contract. The guidance provides two methods of initial adoption: retrospective for all periods presented (full retrospective), or through a cumulative adjustment in the year of adoption (modified retrospective). Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1) clarification of the implementation guidance on principal versus agent considerations; 2) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance; and 3) additional guidance and practical expedients in response to identified implementation issues. The effective date is for annual and interim periods beginning after December 15, 2017 (Q1 2018 for TrueBlue), and we expect to adopt the guidance using the modified retrospective approach.

We established a cross-functional implementation team consisting of representatives from across our business segments and various departments. We are utilizing a bottoms-up approach to analyze the impact of the standard on our various revenue streams by reviewing our current contracts with customers, accounting policies, and business practices to identify potential differences that would result from applying the requirements of the new standard. We are in the process of identifying appropriate changes to our business processes, systems, and controls to support recognition and disclosure under the new standard.

We have been closely monitoring FASB activity related to the new standard to conclude on specific interpretive issues. During 2016, we made significant progress toward completing our evaluation of the potential impact that adopting the new standard will have on our consolidated financial statements. Revenue on the majority of our contracts with customers will continue to be recognized over time as services are rendered. The impact of adopting this new guidance primarily relates to deferring contract costs and estimating variable consideration when the estimation will not result in the reversal of that revenue in subsequent periods. Therefore, we do not anticipate this will have a material impact on our financial reporting other than expanded disclosures. However, the full extent of the impact is subject to the completion of our assessment.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our consolidated financial statements upon adoption.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Estimated Useful Lives of Property and Equipment (Tables)
Property, Plant and Equipment [Table Text Block]
We compute depreciation using the straight-line method over the estimated useful lives of the assets as follows:
 
Years
Buildings
40
Computers and software
3 - 10  
Furniture and equipment
3 - 10  
Property and equipment are stated at cost and consist of the following (in thousands):
 
January 1,
2017
 
December 25,
2015
Buildings and land
$
35,514

 
$
32,258

Computers and software
130,317

 
126,003

Furniture and equipment
12,262

 
12,362

Construction in progress
12,073

 
4,757

Gross property and equipment
190,166

 
175,380

Less accumulated depreciation
(126,168
)
 
(117,850
)
Property and equipment, net
$
63,998

 
$
57,530

ACQUISITIONS (Tables)
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed 
The following table reflects our final allocation of the purchase price (in thousands):
 
Purchase Price Allocation
Cash purchase price, net of working capital adjustment (1)
$
72,476

 
 
Purchase price allocated as follows:
 
Accounts receivable
$
12,272

Prepaid expenses, deposits and other current assets (1)
894

Customer relationships
34,900

Technologies
400

  Total assets acquired
48,466

 
 
Accrued wages and benefits
1,025

Other long-term liabilities
456

  Total liabilities assumed
1,481

 
 
Net identifiable assets acquired
46,985

Goodwill (2)
25,491

Total consideration allocated (1)
$
72,476


(1)
The final purchase price allocation was adjusted for the final working capital adjustment.
(2)
Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers, and future cash flows after the acquisition of the RPO business of Aon Hewitt. Goodwill is deductible for income tax purposes over 15 years as of January 4, 2016.
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination 
The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of January 4, 2016 (in thousands, except for estimated useful lives, in years):
 
Estimated Fair Value
 
Estimated Useful Lives in Years
Customer relationships
$
34,900

 
9.0
Technologies
400

 
3.0
Total acquired identifiable intangible assets
$
35,300

 
 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed 
The following table reflects our final allocation of the purchase price (in thousands):
 
Purchase Price Allocation
Purchase price:
 
Cash purchase price, net of working capital adjustment
$
66,603

Contingent consideration
18,300

Total consideration
$
84,903

 
 
Purchase price allocated as follows:
 
Accounts receivable (1)
$
19,207

Prepaid expenses, deposits and other current assets
461

Property and equipment
464

Customer relationships
39,000

Trade name/trademarks
800

Technologies
100

Restricted cash
4,277

Other non-current assets
2,439

  Total assets acquired
66,748

 
 
Accounts payable and other accrued expenses
3,741

Accrued wages and benefits
4,075

Workers' compensation liability
8,520

  Total liabilities assumed
16,336

 
 
Net identifiable assets acquired
50,412

Goodwill (2)
34,491

Total consideration allocated
$
84,903


(1)
The gross contractual amount of accounts receivable was $19.3 million of which $0.1 million was estimated to be uncollectible.
(2)
Goodwill represents the expected synergies with our existing business, the acquired assembled workforce, potential new customers, and future cash flows after the acquisition of SIMOS. Goodwill is deductible for income tax purposes over 15 years as of December 1, 2015.
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination 
The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of December 1, 2015 (in thousands, except for estimated useful lives, in years):
 
Estimated Fair Value
 
Estimated Useful Lives in Years
Customer relationships
$
39,000

 
9.0
Trade name/trademarks
800

 
3.0
Technologies
100

 
2.0
Total acquired identifiable intangible assets
$
39,900

 
 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed 
The following information reflects our allocation of the purchase price (in thousands):
 
Purchase Price Allocation
Accounts receivable (1)
$
94,571

Prepaid expenses, deposits and other current assets
7,111

Property and equipment
6,957

Other non-current assets
7,848

Restricted cash
1,227

Intangible assets
117,100

  Total assets acquired
234,814

 
 
Accounts payable and other accrued expenses
28,916

Accrued wages and benefits
18,528

Workers' compensation claims reserve
26,433

Deferred tax liability
13,514

Other long-term liabilities
1,163

  Total liabilities assumed
88,554

 
 
Net identifiable assets acquired
146,260

Goodwill (2)
159,616

  Net assets acquired
$
305,876


(1)
The gross contractual amount of accounts receivable was $96.7 million of which $2.1 million was estimated to be uncollectible.
(2)
Goodwill is attributable to the acquired workforce, the expected synergies, and future cash flows after the acquisition of Seaton. Synergies consist primarily of increasing service capacity through acquiring workforce and facilities, increasing market share and economies of scale, increasing operational efficiency and expertise, and leveraging technology investments.
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] 
The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of June 30, 2014 (in thousands, except for estimated useful lives, in years):
 
Estimated Fair Value
 
Weighted Average Estimated Useful Lives in Years
Trade name/trademarks
$
10,500

 
Indefinite
Trade name/trademarks
300

 
4.0
Technologies
18,300

 
4.6
Customer relationships
88,000

 
9.7
Total intangible assets
$
117,100

 
 
FAIR VALUE MEASUREMENT (Tables)
Fair Value Measurements, Recurring and Nonrecurring 
Our assets and liabilities measured at fair value on a recurring basis consisted of the following (in thousands):
 
January 1, 2017
 
Total Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Financial assets:
 
 
 
 
 
 
 
Cash and cash equivalents (1)
$
34,970

 
$
34,970

 
$
—

 
$
—

Restricted cash and cash equivalents (1)
67,751

 
67,751

 
—

 
—

Other restricted assets (2)
16,925

 
16,925

 
—

 
—

Restricted investments classified as held-to-maturity
145,953

 
—

 
145,953

 
—

 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
Contingent consideration (3)
21,600

 
—

 
—

 
21,600

 
December 25, 2015
 
Total Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Financial assets:
 
 
 
 
 
 
 
Cash and cash equivalents (1)
$
29,781

 
$
29,781

 
$
—

 
$
—

Restricted cash and cash equivalents (1)
49,680

 
49,680

 
—

 
—

Other restricted assets (2)
11,944

 
11,944

 
—

 
—

Restricted investments classified as held to maturity
128,245

 
—

 
128,245

 
—

 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
Contingent consideration (3)
19,300

 
—

 
—

 
19,300


(1)
Cash equivalents and restricted cash equivalents consist of money market funds, deposits, and investments with original maturities of three months or less.
(2)
Other restricted assets primarily consist of deferred compensation plan accounts, which are comprised of mutual funds classified as available-for-sale securities.
(3)
The estimated fair value of the contingent consideration associated with the acquisition of SIMOS, which was estimated using a probability-adjusted discounted cash flow model. Refer to Note 2: Acquisitions for further details regarding the SIMOS acquisition.

We measure certain non-financial assets on a non-recurring basis, including goodwill and certain intangible assets. As a result of those measurements, we recognized impairment charges of $103.5 million during the years ended January 1, 2017, as follows (in thousands):
 
January 1, 2017
 
 
 
Total Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total Impairment Loss
Goodwill
$
42,629

 
$
—

 
$
—

 
$
42,629

 
$
(65,869
)
Customer relationships
11,100

 
—

 
—

 
11,100

 
(28,900
)
Trade names/trademarks
3,600

 
—

 
—

 
3,600

 
(8,775
)
Total
$
57,329

 
 
 
 
 
 
 
$
(103,544
)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation 
The following table presents the change in the estimated fair value of our liability for contingent consideration measured using significant unobservable inputs (Level 3) for the year ended January 1, 2017, as follows (in thousands):
Fair value measurement at beginning of period
 
$
19,300

Contingent consideration liability adjustment recorded for final purchase price valuation
 
(1,000
)
Final purchase price valuation
 
18,300

Adjustment to fair value measurement
 
1,300

Accretion on contingent consideration
 
2,000

Fair value measurement at end of period
 
$
21,600

RESTRICTED CASH AND INVESTMENTS (Tables)
Schedule of restricted cash and investments 
The following is a summary of our restricted cash and investments (in thousands):
 
January 1,
2017
 
December 25,
2015
Cash collateral held by insurance carriers
$
34,910

 
$
23,634

Cash and cash equivalents held in Trust
32,841

 
26,046

Investments held in Trust
146,517

 
126,788

Other (1)
16,925

 
11,944

Total restricted cash and investments
$
231,193

 
$
188,412


(1)
Primarily consists of deferred compensation plan accounts, which are comprised of mutual funds classified as available-for-sale securities.
Schedule of held-to-maturity investments 
The following tables present fair value disclosures for our held-to-maturity investments, which are carried at amortized cost (in thousands):
 
January 1, 2017
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal debt securities
$
71,618

 
$
443

 
$
(865
)
 
$
71,196

Corporate debt securities
68,934

 
212

 
(352
)
 
68,794

Agency mortgage-backed securities
5,965

 
30

 
(32
)
 
5,963

 
$
146,517

 
$
685

 
$
(1,249
)
 
$
145,953

 
December 25, 2015
 
Amortized Cost
 
Gross Unrealized Gain
 
Gross Unrealized Loss
 
Fair Value
Municipal debt securities
$
67,948

 
$
1,345

 
$
(4
)
 
$
69,289

Corporate debt securities
50,462

 
226

 
(152
)
 
50,536

Agency mortgage-backed securities
8,378

 
73

 
(31
)
 
8,420

 
$
126,788

 
$
1,644

 
$
(187
)
 
$
128,245

Schedule of held-to-maturity investments by contractual maturity 
The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows (in thousands):
 
January 1, 2017
 
Amortized Cost
 
Fair Value
Due in one year or less
$
15,640

 
$
15,666

Due after one year through five years
73,973

 
73,941

Due after five years through ten years
56,904

 
56,346

 
$
146,517

 
$
145,953

PROPERTY AND EQUIPMENT, NET (Tables)
Schedule of property and equipment
We compute depreciation using the straight-line method over the estimated useful lives of the assets as follows:
 
Years
Buildings
40
Computers and software
3 - 10  
Furniture and equipment
3 - 10  
Property and equipment are stated at cost and consist of the following (in thousands):
 
January 1,
2017
 
December 25,
2015
Buildings and land
$
35,514

 
$
32,258

Computers and software
130,317

 
126,003

Furniture and equipment
12,262

 
12,362

Construction in progress
12,073

 
4,757

Gross property and equipment
190,166

 
175,380

Less accumulated depreciation
(126,168
)
 
(117,850
)
Property and equipment, net
$
63,998

 
$
57,530

GOODWILL AND INTANGIBLE ASSETS (Tables)
Schedule of Goodwill 
The following table reflects changes in the carrying amount of goodwill by our new reportable segments (in thousands):

 
PeopleReady
 
PeopleManagement
 
PeopleScout
 
Total Company
Balance at December 26, 2014
 
 
 
 
 
 
 
Goodwill before impairment
$
106,304

 
$
64,875

 
$
116,886

 
$
288,065

Accumulated impairment loss
(46,210
)
 
—

 
—

 
(46,210
)
Goodwill, net
60,094

 
64,875

 
116,886

 
241,855

 
 
 
 
 
 
 
 
Acquired goodwill
—

 
39,102

 
—

 
39,102

Foreign currency translation
—

 
—

 
(12,462
)
 
(12,462
)
 
 
 
 
 
 
 
 
Balance at December 25, 2015
 
 
 
 
 
 
 
Goodwill before impairment
106,304

 
103,977

 
104,424

 
314,705

Accumulated impairment loss
(46,210
)
 
—

 
—

 
(46,210
)
Goodwill, net
60,094

 
103,977

 
104,424

 
268,495

 
 
 
 
 
 
 


Acquired goodwill and other (1)
—

 
(3,831
)
 
25,491

 
21,660

Impairment loss
—

 
(50,700
)
 
(15,169
)
 
(65,869
)
Foreign currency translation
—

 
—

 
(63
)
 
(63
)
 
 
 
 
 
 
 
 
Balance at January 1, 2017
 
 
 
 
 
 
 
Goodwill before impairment
106,304

 
100,146

 
129,852

 
336,302

Accumulated impairment loss
(46,210
)
 
(50,700
)
 
(15,169
)
 
(112,079
)
Goodwill, net
$
60,094

 
$
49,446

 
$
114,683

 
$
224,223



(1) Effective January 4, 2016, we acquired the RPO business of Aon Hewitt, which has been integrated into our PeopleScout service line, and is part of our PeopleScout reportable segment. Accordingly, the goodwill associated with the acquisition has been assigned to our PeopleScout reportable segment based on our preliminary purchase price allocation. For additional information see Note 2: Acquisitions. Effective December 1, 2015, we acquired SIMOS, which is part of our PeopleManagement reportable segment. The amount presented includes year-to-date adjustments to the preliminary SIMOS purchase accounting for goodwill.
Schedule of finite-lived intangible assets 
The following table presents our purchased finite-lived intangible assets (in thousands):
 
January 1, 2017
 
December 25, 2015
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Finite-lived intangible assets (1):
 
 
 
 
 
 
 
 
 
 
 
Customer relationships (2)
$
165,725

 
$
(54,676
)
 
$
111,049

 
$
161,376

 
$
(36,846
)
 
$
124,530

Trade names/trademarks (3)
4,378

 
(3,385
)
 
993

 
5,179

 
(3,447
)
 
1,732

Non-compete agreements
1,400

 
(1,097
)
 
303

 
1,800

 
(1,177
)
 
623

Technologies
17,009

 
(9,683
)
 
7,326

 
17,310

 
(6,536
)
 
10,774

Total finite-lived intangible assets
$
188,512

 
$
(68,841
)
 
$
119,671

 
$
185,665

 
$
(48,006
)
 
$
137,659


(1)
Excludes assets that are fully amortized.
(2)
Balance at January 1, 2017, is net of impairment loss of $28.9 million.
(3)
Balance at January 1, 2017, is net of impairment loss of $4.3 million.

Schedule of estimated future amortization of definite-lived intangible assets 
The following table provides the estimated future amortization of finite-lived intangible assets as of January 1, 2017 (in thousands):
2017
$
19,939

2018
19,339

2019
18,058

2020
16,156

2021
12,842

Thereafter
33,337

Total future amortization
$
119,671

WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables)
Reconciliation of workers' compensation claims reserve 
The table below presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers' compensation reserve for the periods presented as follows (in thousands):
 
January 1,
2017
 
December 25,
2015
Undiscounted workers’ compensation reserve
$
292,169

 
$
284,306

Less discount on workers' compensation reserve
14,818

 
18,026

Workers' compensation reserve, net of discount
277,351

 
266,280

Less current portion
79,126

 
69,308

Long-term portion
$
198,225

 
$
196,972

Estimated future payout of our discounted workers' compensation claims 
The table below presents the estimated future payout of our discounted workers' compensation claims reserve for the next five years and thereafter as of January 1, 2017 (in thousands):
2017
$
79,126

2018
43,882

2019
25,220

2020
15,464

2021
9,979

Thereafter
50,750

Sub-total
224,421

Excess claims (1)
52,930

Total
$
277,351

(1)
Estimated expenses related to claims above our self-insured limits for which we have a corresponding receivable for the insurance coverage based on contractual policy agreements.
LONG-TERM DEBT (Tables)
Schedule of Long-term Debt Instruments 
The components of our borrowings were as follows (in thousands):
 
 
January 1,
2017
 
December 25,
2015
Revolving Credit Facility
 
$
112,507

 
$
218,086

Term Loan
 
25,122

 
27,578

Total debt
 
137,629

 
245,664

Less current portion
 
2,267

 
2,267

Long-term debt, less current portion
 
$
135,362

 
$
243,397

Contractual Obligation, Fiscal Year Maturity Schedule 
The scheduled principal payments for debt are as follows (in thousands):
2017
$
2,267

2018
22,855

Total
$
25,122

COMMITMENTS AND CONTINGENCIES (Tables)
Schedule of workers’ compensation collateral commitments 
We have provided our insurance carriers and certain states with commitments in the form and amounts listed below (in thousands):
 
January 1,
2017
 
December 25,
2015
Cash collateral held by workers' compensation insurance carriers
$
28,066

 
$
23,133

Cash and cash equivalents held in Trust
32,841

 
26,046

Investments held in Trust
146,517

 
126,788

Letters of credit (1)
7,982

 
4,520

Surety bonds (2)
20,440

 
17,946

Total collateral commitments
$
235,846

 
$
198,433



(1)
We have agreements with certain financial institutions to issue letters of credit as collateral.
(2)
Our surety bonds are issued by independent insurance companies on our behalf and bear annual fees based on a percentage of the bond, which are determined by each independent surety carrier. These fees do not exceed 2.0% of the bond amount, subject to a minimum charge. The terms of these bonds are subject to review and renewal every one to four years and most bonds can be canceled by the sureties with as little as 60 days' notice.
Schedule of future minimum lease payments for operating leases 
Future non-cancelable minimum lease payments under our operating lease commitments as of January 1, 2017 are as follows for each of the next five years and thereafter (in thousands):
2017
$
6,729

2018
6,056

2019
5,365

2020
4,593

2021
2,787

Thereafter
602

Total future non-cancelable minimum lease payments
$
26,132

STOCK-BASED COMPENSATION (Tables)
Schedule of restricted and unrestricted stock and performance share units activity 
Restricted and unrestricted stock awards and performance share units activity for the years ended January 1, 2017, was as follows (shares in thousands):
 
Shares
 
Weighted- average grant-date price
Non-vested at beginning of period
1,218

 
$
22.63

Granted
602

 
$
21.53

Vested
(508
)
 
$
21.02

Forfeited
(103
)
 
$
21.79

Non-vested at the end of the period
1,209

 
$
22.76

Schedule of share-based compensation, employee stock purchase plan 
The following table summarizes transactions under our ESPP from fiscal years 2016, 2015, and 2014 (shares in thousands):
 
Shares  
 
Average price per  
share
Issued during fiscal year 2016
87

 
$
17.51

Issued during fiscal year 2015
68

 
$
20.65

Issued during fiscal year 2014
64

 
$
21.55

INCOME TAXES (Tables)
Schedule of Components of Income Tax Expense (Benefit) 
The provision for income taxes is comprised of the following (in thousands):
 
2016
 
2015
 
2014
Current taxes:
 
 
 
 
 
Federal
$
12,082

 
$
12,665

 
$
(161
)
State
5,448

 
5,611

 
2,614

Foreign
2,677

 
1,882

 
951

Total current taxes
20,207


20,158


3,404

Deferred taxes:
 
 
 
 
 
Federal
(20,693
)
 
4,963

 
10,198

State
(4,064
)
 
81

 
2,481

Foreign
(539
)
 
(2
)
 
86

Total deferred taxes
(25,296
)

5,042


12,765

Provision for income taxes
$
(5,089
)

$
25,200


$
16,169

Schedule of Effective Income Tax Rate Reconciliation 
The items accounting for the difference between income taxes computed at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations and Comprehensive Income (Loss) are as follows (in thousands, except percentages):
 
2016
 
%
 
2015
 
%
 
2014
 
%
Income tax expense (benefit) based on statutory rate
$
(7,119
)
 
35.0
 %
 
$
33,745

 
35.0
 %
 
$
28,641

 
35.0
 %
Increase (decrease) resulting from:
 
 
 
 
 
 
 
 
 
 
 
State income taxes, net of federal benefit
1,373

 
(6.8
)
 
4,175

 
4.3

 
3,213

 
3.9

Tax credits, net
(17,141
)
 
84.3

 
(14,483
)
 
(15.0
)
 
(18,564
)
 
(22.6
)
Non-deductible goodwill impairment charge
17,694

 
(87.0
)
 
—

 
—

 
—

 
—

Non-deductible/non-taxable items
630

 
(3.1
)
 
2,456

 
2.5

 
1,983

 
2.4

Foreign taxes
993

 
(4.8
)
 
(933
)
 
(1.0
)
 
1,037

 
1.3

Other, net
(1,519
)
 
7.4

 
240

 
0.3

 
(141
)
 
(0.2
)
Total taxes on income (loss)
$
(5,089
)
 
25.0
 %
 
$
25,200

 
26.1
 %
 
$
16,169

 
19.8
 %
Schedule of Deferred Tax Assets and Liabilities 
The components of deferred tax assets and liabilities were as follows (in thousands):
 
2016
 
2015
Deferred tax assets:
 
 
 
Allowance for doubtful accounts
$
1,970

 
$
2,295

Accounts payable and other accrued expenses
8,577

 
4,896

Net operating loss carryforwards
2,287

 
2,385

Tax credit carryforwards
2,835

 
8,315

Accrued wages and benefits
9,470

 
10,791

Deferred compensation
7,003

 
5,156

Other
1,090

 
1,057

Total
33,232


34,895

Valuation allowance
(2,266
)
 
(3,227
)
Total deferred tax asset, net of valuation allowance
30,966


31,668

Deferred tax liabilities:
 
 
 
Prepaid expenses, deposits and other current assets
(2,697
)
 
(3,141
)
Depreciation and amortization
(18,330
)
 
(44,383
)
Workers’ compensation
(3,169
)
 
(3,643
)
Total deferred tax liabilities
(24,196
)

(51,167
)
Net deferred tax (liabilities) asset, end of year
$
6,770

 
$
(19,499
)
Summary of Tax Credit Carryforwards 
The following table summarizes our net operating losses (“NOLs”) and credit carryforwards along with their respective valuation allowance as of January 1, 2017 (in thousands):
 
Carryover Tax Benefit
 
Valuation Allowance
 
Expected Benefit
 
Year Expiration Begins
Year-end tax attributes:
 
 
 
 
 
 
 
Federal WOTCs
$
1,419

 
$
—

 
$
1,419

 
2024
State NOLs
1,093

 
—

 
1,093

 
Various
Foreign NOLs
1,194

 
(1,194
)
 
—

 
Various
California Enterprise Zone credits (1)
1,416

 
(1,072
)
 
344

 
2023
Total
$
5,122

 
$
(2,266
)
 
$
2,856

 
 
(1)
The California Enterprise Zone credits fully expire in 2023.
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward 
The following table summarizes the activity related to our unrecognized tax benefits (in thousands):
 
2016
 
2015
 
2014
Balance, beginning of fiscal year
$
2,195

 
$
2,039

 
$
2,035

Increases for tax positions related to the current year
348

 
436

 
389

Reductions due to lapsed statute of limitations
(301
)
 
(280
)
 
(385
)
Balance, end of fiscal year
$
2,242

 
$
2,195

 
$
2,039

NET INCOME PER SHARE (Tables)
Schedule of adjusted net income and diluted common shares
Diluted common shares were calculated as follows (in thousands, except per share amounts):
 
Years ended
 
2016
 
2015
 
2014
Net income (loss)
$
(15,251
)
 
$
71,247

 
$
65,675

 
 
 
 
 
 
Weighted average number of common shares used in basic net income (loss) per common share
41,648

 
41,226

 
40,734

Dilutive effect of non-vested restricted stock
—

 
396

 
442

Weighted average number of common shares used in diluted net income (loss) per common share
41,648

 
41,622


41,176

Net income (loss) per common share:
 
 
 
 
 
Basic
$
(0.37
)
 
$
1.73

 
$
1.61

Diluted
$
(0.37
)
 
$
1.71

 
$
1.59

 
 
 
 
 
 
Anti-dilutive shares
—

 
89

 
58

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)
Schedule of Comprehensive Income (Loss)
Changes in the balance of each component of accumulated other comprehensive income (loss) during the years ended January 1, 2017 and December 25, 2015 were as follows (in thousands):
 
Foreign currency translation adjustment (1)
 
Unrealized gain (loss) on investments (2)
 
Total other comprehensive income (loss), net of tax
Balance at December 26, 2014
$
848

 
$
23

 
$
871

Current-period other comprehensive loss
(14,362
)
 
(522
)
 
(14,884
)
Balance at December 25, 2015
(13,514
)
 
(499
)
 
(14,013
)
Current-period other comprehensive income
1,830

 
750

 
2,580

Balance at January 1, 2017
$
(11,684
)
 
$
251

 
$
(11,433
)

(1)
During 2015, we made a U.S. tax election for our Australian subsidiary that caused our permanent intercompany loan to be settled for tax purposes, resulting in a tax impact of $3.0 million on foreign currency translation adjustments. The tax impact on foreign currency translation adjustments for fiscal years 2016 and 2014 was de minimis.
(2)
Consists of deferred compensation plan accounts, which are comprised of mutual funds classified as available-for-sale securities. The tax impact on unrealized gain on available-for-sale securities was de minimis for fiscal years 2016, 2015, and 2014.

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
Schedule of supplemental cash flow information
Supplemental disclosure of cash flow information (in thousands):
 
Years ended
 
2016
 
2015
 
2014
Cash paid during the period for:
 
 
 
 
 
Interest
$
4,083

 
$
3,504

 
$
2,483

Income taxes
10,312

 
34,401

 
9,140

SEGMENT INFORMATION (Tables)
Schedule of Segment Information 
Revenue from services and income (loss) from operations associated with our segments were as follows (in thousands):
 
2016
 
2015
 
2014
Revenue from services
 
 
 
 
 
PeopleReady
$
1,629,455

 
$
1,625,817

 
$
1,534,547

PeopleManagement
940,453

 
965,331

 
591,366

PeopleScout
180,732

 
104,532

 
48,132

Total Company
$
2,750,640

 
$
2,695,680


$
2,174,045

 
 
 
 
 
 
Income (loss) from operations
 
 
 
 
 
PeopleReady
$
101,270

 
$
123,899

 
$
105,731

PeopleManagement
(60,452
)
 
36,512

 
28,828

PeopleScout
19,116

 
9,324

 
3,074

Depreciation and amortization
(46,692
)
 
(41,843
)
 
(29,474
)
Corporate unallocated
(30,237
)
 
(30,050
)
 
(26,431
)
Total Company
(16,995
)
 
97,842


81,728

Interest and other income (expense), net
(3,345
)
 
(1,395
)
 
116

Income (loss) before tax expense
$
(20,340
)
 
$
96,447


$
81,844

Revenue from External Customers by Geographic Areas [Table Text Block] 
Our international operations are primarily in Canada and Australia. Revenues by region were as follows (in thousands, except percentages):
 
2016
 
2015
 
2014
United States
$
2,644,414

 
96.1
%
 
$
2,603,085

 
96.6
%
 
$
2,096,958

 
96.5
%
International operations
106,226

 
3.9
%
 
92,595

 
3.4
%
 
77,087

 
3.5
%
Total revenue from services
$
2,750,640

 
100.0
%
 
$
2,695,680

 
100.0
%
 
$
2,174,045

 
100.0
%
SELECTED QUARTERLY FINANCIAL DATA (Tables)
Schedule of Quarterly Financial Information
SELECTED QUARTERLY FINANCIAL DATA (unaudited; in thousands, except per share data)
 
First
 
Second
 
Third
 
Fourth
2016
 
 
 
 
 
 
 
Revenue from services
$
645,980

 
$
672,612

 
$
697,097

 
$
734,951

Cost of services
495,468

 
502,688

 
518,702

 
554,064

Gross profit
150,512

 
169,924

 
178,395

 
180,887

Selling, general and administrative expenses
130,624

 
135,787

 
134,679

 
145,387

Depreciation and amortization
11,289

 
11,694

 
11,690

 
12,019

Goodwill and intangible asset impairment charge
—

 
99,269

 
4,275

 
—

Income (loss) from operations
8,599

 
(76,826
)
 
27,751

 
23,481

Interest expense
(1,969
)
 
(1,740
)
 
(1,721
)
 
(1,736
)
Interest and other income
950

 
853

 
854

 
1,164

Interest expense, net
(1,019
)
 
(887
)
 
(867
)
 
(572
)
Income (loss) before tax expense
7,580

 
(77,713
)
 
26,884

 
22,909

Income tax expense (benefit)
612

 
(13,978
)
 
3,455

 
4,822

Net income (loss)
$
6,968

 
$
(63,735
)
 
$
23,429

 
$
18,087

Net income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
0.17

 
$
(1.53
)
 
$
0.56

 
$
0.43

Diluted
$
0.17

 
$
(1.53
)
 
$
0.56

 
$
0.43

2015
 
 
 
 
 
 
 
Revenue from services
$
573,315

 
$
627,714

 
$
683,918

 
$
810,733

Cost of services
443,479

 
475,748

 
515,051

 
625,729

Gross profit
129,836

 
151,966

 
168,867

 
185,004

Selling, general and administrative expenses
111,593

 
117,859

 
125,117

 
141,419

Depreciation and amortization
10,520

 
10,397

 
10,498

 
10,428

Income from operations
7,723

 
23,710

 
33,252

 
33,157

Interest expense
(1,166
)
 
(881
)
 
(933
)
 
(1,180
)
Interest and other income
632

 
679

 
567

 
887

Interest expense, net
(534
)
 
(202
)
 
(366
)
 
(293
)
Income before tax expense
7,189

 
23,508

 
32,886

 
32,864

Income tax expense
1,473

 
6,235

 
12,796

 
4,696

Net income
$
5,716

 
$
17,273

 
$
20,090

 
$
28,168

Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.14

 
$
0.42

 
$
0.49

 
$
0.68

Diluted
$
0.14

 
$
0.42

 
$
0.48

 
$
0.67

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies (Details) (USD $)
0 Months Ended 12 Months Ended
Mar. 26, 2016
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Advertising Expense
 
$ 7,800,000 
$ 9,100,000 
$ 6,200,000 
Allowance for doubtful accounts
 
5,160,000 
5,902,000 
 
Operating leases, maximum period afforded to each party to cancel lease agreements
 
90 days 
 
 
Impairment loss
65,869,000 
65,869,000 
0 
0 
Impairment of Long-Lived Assets Held-for-use
 
37,700,000 
0 
0 
Increase (Decrease) in Restricted Cash
 
$ 19,773,000 
$ (18,374,000)
$ 9,283,000 
Minimum
 
 
 
 
Operating Leases, Renewal Option Period
 
3 years 
 
 
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount
 
20.00% 
 
 
Maximum
 
 
 
 
Operating Leases, Renewal Option Period
 
5 years 
 
 
Building and Building Improvements
 
 
 
 
Property, Plant and Equipment, Useful Life
 
40 years 
 
 
Furniture and equipment |
Minimum
 
 
 
 
Property, Plant and Equipment, Useful Life
 
3 years 
 
 
Furniture and equipment |
Maximum
 
 
 
 
Property, Plant and Equipment, Useful Life
 
10 years 
 
 
Computers and software |
Minimum
 
 
 
 
Property, Plant and Equipment, Useful Life
 
3 years 
 
 
Computers and software |
Maximum
 
 
 
 
Property, Plant and Equipment, Useful Life
 
10 years 
 
 
ACQUISITIONS Aon Narrative (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Jan. 4, 2016
Aon Hewitt
Jan. 1, 2017
Aon Hewitt
Jan. 1, 2017
Aon Hewitt
Jun. 1, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
May 1, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Apr. 1, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 4, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
Business combination, pro forma information, revenue of acquiree since acquisition date, actual
 
 
 
 
$ 66,500,000 
 
 
 
 
 
Cash purchase price, net of working capital adjustment (1)
72,476,000 
67,500,000 
305,876,000 
72,476,000 
 
 
 
 
 
 
Line of credit facility, increase (decrease), Net
 
 
 
 
 
 
(10,000,000.0)
10,000,000 
10,000,000 
30,000,000.0 
Acquisition-Related and integration costs associated with a business combination
 
 
 
 
 
$ 6,600,000 
 
 
 
 
ACQUISITIONS Aon Purchase Price Allocation (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 0 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Jan. 4, 2016
Aon Hewitt
Jan. 4, 2016
Aon Hewitt
Jan. 4, 2016
Customer relationships
Aon Hewitt
Jan. 4, 2016
Technologies
Aon Hewitt
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Cash purchase price, net of working capital adjustment (1)
$ 72,476 
$ 67,500 
$ 305,876 
$ 72,476 
 
 
 
Accounts receivable
 
 
 
 
12,272 
 
 
Prepaid expenses, deposits and other current assets
 
 
 
 
894 
 
 
Intangible Assets
 
 
 
 
35,300 
34,900 
400 
Total assets acquired
 
 
 
 
48,466 
 
 
Accrued wages and benefits
 
 
 
 
1,025 
 
 
Other long-term liabilities
 
 
 
 
456 
 
 
Total liabilities assumed
 
 
 
 
1,481 
 
 
Net identifiable assets acquired
 
 
 
 
46,985 
 
 
Goodwill
$ 224,223 
$ 268,495 
$ 241,855 
 
$ 25,491 
 
 
Goodwill, expected tax deductible amount, Period
 
 
 
15 years 
 
 
 
ACQUISITIONS Aon Intangible Assets (Details) (Aon Hewitt, USD $)
In Thousands, unless otherwise specified
0 Months Ended
Jan. 4, 2016
Jan. 4, 2016
Business Acquisition [Line Items]
 
 
Estimated Fair Value
$ 35,300 
$ 35,300 
Customer relationships
 
 
Business Acquisition [Line Items]
 
 
Estimated Fair Value
 
34,900 
Estimated Useful Lives in Years
9 years 
 
Technologies
 
 
Business Acquisition [Line Items]
 
 
Estimated Fair Value
 
$ 400 
Estimated Useful Lives in Years
3 years 
 
ACQUISITIONS (SIMOS Narrative) (Details) (USD $)
0 Months Ended
Dec. 1, 2015
Jan. 1, 2017
Dec. 25, 2015
Dec. 1, 2015
Business Acquisition [Line Items]
 
 
 
 
Contingent consideration
 
$ 21,600,000 
$ 0 
 
SIMOS Insourcing Solutions Corporation
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Cash purchase price, net of working capital adjustment
66,600,000 
 
 
 
EBITDA target threshold
 
 
 
87.50% 
Contingent consideration
 
 
 
18,300,000 
Minimum |
SIMOS Insourcing Solutions Corporation
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Contingent consideration
0 
 
 
0 
Maximum |
SIMOS Insourcing Solutions Corporation
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Contingent consideration
22,500,000 
 
 
22,500,000 
Significant Unobservable Inputs (Level 3) |
SIMOS Insourcing Solutions Corporation
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Contingent consideration, liability
 
 
 
21,100,000 
Discount rate
10.00% 
 
 
 
Contingent consideration
 
21,600,000 
19,300,000 
 
Total Fair Value |
SIMOS Insourcing Solutions Corporation
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
Contingent consideration
 
$ 21,600,000 
$ 19,300,000 
 
ACQUISITIONS (SIMOS Purchase Price Allocation) (Details) (USD $)
0 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Dec. 1, 2015
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Customer relationships
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Trademarks and Trade Names [Member]
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Technologies
SIMOS Insourcing Solutions Corporation
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
Cash purchase price, net of working capital adjustment
 
 
 
$ 66,603,000 
 
 
 
 
Contingent consideration
21,600,000 
0 
 
 
18,300,000 
 
 
 
Total consideration
 
 
 
84,903,000 
 
 
 
 
Accounts receivable
 
 
 
 
19,207,000 
 
 
 
Prepaid expenses, deposits and other current assets
 
 
 
 
461,000 
 
 
 
Property and equipment
 
 
 
 
464,000 
 
 
 
Estimated Fair Value
 
 
 
 
39,900,000 
39,000,000 
800,000 
100,000 
Restricted cash
 
 
 
 
4,277,000 
 
 
 
Other non-current assets
 
 
 
 
2,439,000 
 
 
 
Total assets acquired
 
 
 
 
66,748,000 
 
 
 
Accounts payable and other accrued expenses
 
 
 
 
3,741,000 
 
 
 
Accrued wages and benefits
 
 
 
 
4,075,000 
 
 
 
Workers' compensation liability
 
 
 
 
8,520,000 
 
 
 
Total liabilities assumed
 
 
 
 
16,336,000 
 
 
 
Net identifiable assets acquired
 
 
 
 
50,412,000 
 
 
 
Goodwill
224,223,000 
268,495,000 
241,855,000 
 
34,491,000 
 
 
 
Acquired receivables
 
 
 
 
19,300,000 
 
 
 
Acquired receivables, estimated uncollectible
 
 
 
 
$ 100,000 
 
 
 
Goodwill, expected tax deductible amount, Period
 
 
 
15 years 
 
 
 
 
ACQUISITIONS (SIMOS Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
0 Months Ended 3 Months Ended 0 Months Ended 0 Months Ended
Dec. 1, 2015
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Customer relationships
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Customer relationships
SIMOS Insourcing Solutions Corporation
Mar. 25, 2016
Trade name/trademarks
Dec. 1, 2015
Trade name/trademarks
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Trade name/trademarks
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Technologies
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Technologies
SIMOS Insourcing Solutions Corporation
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
Estimated Fair Value
$ 39,900 
 
$ 39,000 
 
 
$ 800 
 
$ 100 
Estimated Useful Lives in Years
 
9 years 
 
3 years 
3 years 
 
2 years 
 
ACQUISITIONS (Seaton Narrative) (Details) (USD $)
0 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2014
Staffing Solutions Holdings, Inc. (Seaton)
Dec. 26, 2014
Staffing Solutions Holdings, Inc. (Seaton)
Dec. 25, 2015
Staffing Solutions Holdings, Inc. (Seaton)
Dec. 26, 2014
Staffing Solutions Holdings, Inc. (Seaton)
Jan. 4, 2016
Revolving Credit Facility
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Jun. 30, 2014
Revolving Credit Facility
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Jun. 30, 2014
Revolving Credit Facility
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Staffing Solutions Holdings, Inc. (Seaton)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Cash purchase price, net of working capital adjustment
$ 305,900,000 
 
 
 
 
 
 
Revolving Credit Facility, maximum borrowing capacity
 
 
 
 
330,000,000.0 
300,000,000.0 
 
Cash from credit facility used in business acquisition
 
 
 
 
 
 
187,000,000 
Acquisition-Related and integration Costs Associated with a Business Combination
 
 
3,800,000 
5,200,000 
 
 
 
Business combination, pro forma information, revenue of acquiree since acquisition date, actual
 
394,400,000 
 
 
 
 
 
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual
 
13,600,000 
 
 
 
 
 
Depreciation and amortization of acquired company
 
$ 6,300,000 
 
 
 
 
 
ACQUISITIONS (Seaton Purchase Price Allocation) (Details) (USD $)
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Jun. 30, 2014
Staffing Solutions Holdings, Inc. (Seaton)
Business Acquisition [Line Items]
 
 
 
 
Accounts receivable
 
 
 
$ 94,571,000 
Prepaid expenses, deposits and other current assets
 
 
 
7,111,000 
Property and equipment
 
 
 
6,957,000 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets
 
 
 
7,848,000 
Restricted cash
 
 
 
1,227,000 
Estimated Fair Value
 
 
 
117,100,000 
Total assets acquired
 
 
 
234,814,000 
Accounts payable and other accrued expenses
 
 
 
28,916,000 
Accrued wages and benefits
 
 
 
18,528,000 
Workers' compensation claims reserve
 
 
 
26,433,000 
Deferred tax liability
 
 
 
13,514,000 
Other long-term liabilities
 
 
 
1,163,000 
Total liabilities assumed
 
 
 
88,554,000 
Net identifiable assets acquired
 
 
 
146,260,000 
Goodwill
224,223,000 
268,495,000 
241,855,000 
159,616,000 
Net assets acquired
 
 
 
305,876,000 
Acquired receivables
 
 
 
96,700,000 
Acquired receivables, estimated uncollectible
 
 
 
$ 2,100,000 
ACQUISITIONS (Seaton Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 0 Months Ended
Jun. 30, 2014
Staffing Solutions Holdings, Inc. (Seaton)
Jun. 30, 2014
Trade name/trademarks
Staffing Solutions Holdings, Inc. (Seaton)
Mar. 25, 2016
Trade name/trademarks
Jun. 30, 2014
Trade name/trademarks
Staffing Solutions Holdings, Inc. (Seaton)
Jun. 30, 2014
Technologies
Staffing Solutions Holdings, Inc. (Seaton)
Jun. 30, 2014
Customer relationships
Staffing Solutions Holdings, Inc. (Seaton)
Business Acquisition [Line Items]
 
 
 
 
 
 
Estimated Fair Value
 
$ 10,500 
 
 
 
 
Estimated Fair Value
 
 
 
300 
18,300 
88,000 
Estimated Useful Lives in Years
 
 
3 years 
4 years 
4 years 7 months 
9 years 8 months 
Estimated Fair Value
$ 117,100 
 
 
 
 
 
FAIR VALUE MEASUREMENT (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Jan. 1, 2017
Total Fair Value
Dec. 25, 2015
Total Fair Value
Jan. 1, 2017
Total Fair Value
Restricted Assets
Dec. 25, 2015
Total Fair Value
Restricted Assets
Jan. 1, 2017
Quoted Prices in Active Markets for Identical Assets (Level 1)
Dec. 25, 2015
Quoted Prices in Active Markets for Identical Assets (Level 1)
Jan. 1, 2017
Quoted Prices in Active Markets for Identical Assets (Level 1)
Restricted Assets
Dec. 25, 2015
Quoted Prices in Active Markets for Identical Assets (Level 1)
Restricted Assets
Jan. 1, 2017
Significant Other Observable Inputs (Level 2)
Dec. 25, 2015
Significant Other Observable Inputs (Level 2)
Jan. 1, 2017
Significant Other Observable Inputs (Level 2)
Restricted Assets
Dec. 25, 2015
Significant Other Observable Inputs (Level 2)
Restricted Assets
Jan. 1, 2017
Significant Unobservable Inputs (Level 3)
Dec. 25, 2015
Significant Unobservable Inputs (Level 3)
Jan. 1, 2017
Significant Unobservable Inputs (Level 3)
Restricted Assets
Dec. 25, 2015
Significant Unobservable Inputs (Level 3)
Restricted Assets
Dec. 1, 2015
SIMOS Insourcing Solutions Corporation
Jan. 1, 2017
SIMOS Insourcing Solutions Corporation
Total Fair Value
Dec. 25, 2015
SIMOS Insourcing Solutions Corporation
Total Fair Value
Jan. 1, 2017
SIMOS Insourcing Solutions Corporation
Significant Unobservable Inputs (Level 3)
Dec. 25, 2015
SIMOS Insourcing Solutions Corporation
Significant Unobservable Inputs (Level 3)
Fair Value Measurement [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
$ 34,970 
$ 29,781 
 
 
$ 34,970 
$ 29,781 
 
 
$ 0 
$ 0 
 
 
$ 0 
$ 0 
 
 
 
 
 
 
 
Restricted cash and cash equivalents
 
 
 
 
67,751 
49,680 
 
 
67,751 
49,680 
 
 
0 
0 
 
 
0 
0 
 
 
 
 
 
Other restricted assets
16,925 
11,944 
 
 
16,925 
11,944 
 
 
16,925 
11,944 
 
 
0 
0 
 
 
0 
0 
 
 
 
 
 
Restricted investments classified as held-to-maturity
145,953 
128,245 
 
 
145,953 
128,245 
 
 
0 
0 
 
 
145,953 
128,245 
 
 
0 
0 
 
 
 
 
 
Contingent consideration
$ 21,600 
$ 0 
 
 
 
 
$ 0 
$ 0 
 
 
$ 0 
$ 0 
 
 
 
 
 
 
$ 18,300 
$ 21,600 
$ 19,300 
$ 21,600 
$ 19,300 
FAIR VALUE MEASUREMENT Changes in Fair Value of Recurring Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details) (SIMOS Insourcing Solutions Corporation [Member], Significant Unobservable Inputs (Level 3), Fair Value by Liability Class [Domain], USD $)
In Thousands, unless otherwise specified
0 Months Ended 12 Months Ended
Dec. 1, 2015
Jan. 1, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Contingent consideration liability adjustment recorded for final purchase price valuation
$ (1,000)
 
Adjustment to fair value measurement
 
1,300 
Accretion on contingent consideration
 
2,000 
Total Fair Value
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Fair value measurement at beginning of period
19,300 
 
Final purchase price valuation
18,300 
 
Fair value measurement at end of period
$ 18,300 
$ 21,600 
FAIR VALUE MEASUREMENT Assets Measured at Fair Value on a Nonrecurring Basis (Details) (USD $)
0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Mar. 26, 2016
Jan. 1, 2017
Sep. 23, 2016
Jun. 24, 2016
Mar. 25, 2016
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Jan. 1, 2017
Quoted Prices in Active Markets for Identical Assets (Level 1)
Jan. 1, 2017
Significant Other Observable Inputs (Level 2)
Jan. 1, 2017
Significant Unobservable Inputs (Level 3)
Jan. 1, 2017
Total Fair Value
Mar. 26, 2016
Customer relationships
Jan. 1, 2017
Customer relationships
Jan. 1, 2017
Customer relationships
Quoted Prices in Active Markets for Identical Assets (Level 1)
Jan. 1, 2017
Customer relationships
Significant Other Observable Inputs (Level 2)
Jan. 1, 2017
Customer relationships
Significant Unobservable Inputs (Level 3)
Jan. 1, 2017
Customer relationships
Total Fair Value
Sep. 23, 2016
Trade name/trademarks
Jan. 1, 2017
Trade name/trademarks
Jan. 1, 2017
Trade name/trademarks
Quoted Prices in Active Markets for Identical Assets (Level 1)
Jan. 1, 2017
Trade name/trademarks
Significant Other Observable Inputs (Level 2)
Jan. 1, 2017
Trade name/trademarks
Significant Unobservable Inputs (Level 3)
Jan. 1, 2017
Trade name/trademarks
Total Fair Value
Fair Value Measurement [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill and intangible assets, gross
 
$ 160,800,000 
 
 
 
$ 160,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
 
 
 
 
 
 
 
 
0 
0 
42,629,000 
42,629,000 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment loss
(65,869,000)
 
 
 
 
(65,869,000)
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
11,100,000 
11,100,000 
 
 
 
 
 
 
Impairment of intangible assets, finite-lived
 
 
 
 
 
 
 
 
 
 
 
 
(28,900,000)
(28,900,000)
 
 
 
 
(4,300,000)
 
 
 
 
 
Trade names/trademarks
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
3,600,000 
3,600,000 
Impairment of intangible assets, indefinite-lived
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(8,775,000)
 
 
 
 
Goodwill and intangible assets, fair value
 
57,300,000 
 
 
 
57,300,000 
 
 
 
 
 
57,329,000 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill and intangible asset impairment charge
 
$ 0 
$ (4,275,000)
$ (99,269,000)
$ 0 
$ (103,544,000)
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RESTRICTED CASH AND INVESTMENTS (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Restricted Cash and Investments [Line Items]
 
 
Cash collateral held by insurance carriers
$ 34,910 
$ 23,634 
Cash and cash equivalents held in Trust
32,841 
26,046 
Investments held in Trust
146,517 
126,788 
Other
16,925 
11,944 
Restricted cash and investments
231,193 
188,412 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Gross Unrealized Gain
685 
1,644 
Gross Unrealized Loss
(1,249)
(187)
Fair Value
145,953 
128,245 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
145,953 
128,245 
Municipal debt securities
 
 
Restricted Cash and Investments [Line Items]
 
 
Investments held in Trust
71,618 
67,948 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Gross Unrealized Gain
443 
1,345 
Gross Unrealized Loss
(865)
(4)
Fair Value
71,196 
69,289 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
71,196 
69,289 
Corporate debt securities
 
 
Restricted Cash and Investments [Line Items]
 
 
Investments held in Trust
68,934 
50,462 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Gross Unrealized Gain
212 
226 
Gross Unrealized Loss
(352)
(152)
Fair Value
68,794 
50,536 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
68,794 
50,536 
Agency mortgage-backed securities
 
 
Restricted Cash and Investments [Line Items]
 
 
Investments held in Trust
5,965 
8,378 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Gross Unrealized Gain
30 
73 
Gross Unrealized Loss
(32)
(31)
Fair Value
5,963 
8,420 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Fair Value
5,963 
8,420 
Restricted Cash and Investments [Member]
 
 
Restricted Cash and Investments [Line Items]
 
 
Investments held in Trust
146,517 
 
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
 
 
Fair Value
145,953 
 
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract]
 
 
Due in one year or less
15,640 
 
Due after one year through five years
73,973 
 
Due after five years through ten years
56,904 
 
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
 
 
Due in one year or less
15,666 
 
Due after one year through five years
73,941 
 
Due after five years through ten years
56,346 
 
Fair Value
$ 145,953 
 
PROPERTY AND EQUIPMENT, NET (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
$ 190,166 
$ 175,380 
Less accumulated depreciation and amortization
(126,168)
(117,850)
Property and equipment, net
63,998 
57,530 
Buildings and land
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
35,514 
32,258 
Computers and software
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
130,317 
126,003 
Furniture and equipment
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
12,262 
12,362 
Construction in progress
 
 
Property and Equipment, Net, by Type [Abstract]
 
 
Property and equipment, gross
$ 12,073 
$ 4,757 
PROPERTY AND EQUIPMENT, NET (NARRATIVE) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Property, Plant and Equipment [Line Items]
 
 
 
Capitalized computer software, net
$ 19.2 
$ 24.6 
 
Depreciation expense
$ 21.6 
$ 21.9 
$ 17.4 
- Changes in Carrying Amount of Goodwill (Details) (USD $)
0 Months Ended 12 Months Ended
Mar. 26, 2016
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Goodwill [Line Items]
 
 
 
 
Goodwill before impairment
 
$ 336,302,000 
$ 314,705,000 
$ 288,065,000 
Accumulated impairment loss
 
(112,079,000)
(46,210,000)
(46,210,000)
Goodwill, net
 
224,223,000 
268,495,000 
241,855,000 
Acquired goodwill and other
 
21,660,000 
39,102,000 
 
Impairment loss
(65,869,000)
(65,869,000)
0 
0 
Foreign currency translation
 
(63,000)
(12,462,000)
 
PeopleReady
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill before impairment
 
106,304,000 
106,304,000 
106,304,000 
Accumulated impairment loss
 
(46,210,000)
(46,210,000)
(46,210,000)
Goodwill, net
 
60,094,000 
60,094,000 
60,094,000 
Acquired goodwill and other
 
0 
0 
 
Impairment loss
 
0 
 
 
Foreign currency translation
 
0 
0 
 
PeopleManagement
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill before impairment
 
100,146,000 
103,977,000 
64,875,000 
Accumulated impairment loss
 
(50,700,000)
0 
0 
Goodwill, net
 
49,446,000 
103,977,000 
64,875,000 
Acquired goodwill and other
 
(3,831,000)
39,102,000 
 
Impairment loss
 
(50,700,000)
 
 
Foreign currency translation
 
0 
0 
 
PeopleScout
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill before impairment
 
129,852,000 
104,424,000 
116,886,000 
Accumulated impairment loss
 
(15,169,000)
0 
0 
Goodwill, net
 
114,683,000 
104,424,000 
116,886,000 
Acquired goodwill and other
 
25,491,000 
0 
 
Impairment loss
 
15,169,000 
 
 
Foreign currency translation
 
$ (63,000)
$ (12,462,000)
 
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Other Than Goodwill (Details) (USD $)
In Thousands, unless otherwise specified
0 Months Ended 12 Months Ended 0 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Mar. 26, 2016
Customer relationships
Jan. 1, 2017
Customer relationships
Dec. 25, 2015
Customer relationships
Sep. 23, 2016
Trade names/trademarks (3)
Jan. 1, 2017
Trade names/trademarks (3)
Dec. 25, 2015
Trade names/trademarks (3)
Jan. 1, 2017
Non-compete agreements
Dec. 25, 2015
Non-compete agreements
Jan. 1, 2017
Technologies
Dec. 25, 2015
Technologies
Amortizable intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Gross Carrying Amount
$ 188,512 
$ 185,665 
 
$ 165,725 
$ 161,376 
 
$ 4,378 
$ 5,179 
$ 1,400 
$ 1,800 
$ 17,009 
$ 17,310 
Accumulated Amortization
(68,841)
(48,006)
 
(54,676)
(36,846)
 
(3,385)
(3,447)
(1,097)
(1,177)
(9,683)
(6,536)
Net Carrying Amount
119,671 
137,659 
 
111,049 
124,530 
 
993 
1,732 
303 
623 
7,326 
10,774 
Impairment of intangible assets, finite-lived
 
 
28,900 
28,900 
 
4,300 
 
 
 
 
 
 
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
2017
19,939 
 
 
 
 
 
 
 
 
 
 
 
2018
19,339 
 
 
 
 
 
 
 
 
 
 
 
2019
18,058 
 
 
 
 
 
 
 
 
 
 
 
2020
16,156 
 
 
 
 
 
 
 
 
 
 
 
2021
12,842 
 
 
 
 
 
 
 
 
 
 
 
Thereafter
33,337 
 
 
 
 
 
 
 
 
 
 
 
Net Carrying Amount
$ 119,671 
$ 137,659 
 
$ 111,049 
$ 124,530 
 
$ 993 
$ 1,732 
$ 303 
$ 623 
$ 7,326 
$ 10,774 
GOODWILL AND INTANGIBLE ASSETS - Narrative Finite Intangibles (Details) (USD $)
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Jan. 4, 2016
Aon Hewitt
Jan. 4, 2016
Aon Hewitt
Customer relationships
Jan. 4, 2016
Aon Hewitt
Technologies
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
 
 
Intangible Assets
 
 
 
$ 35,300,000 
$ 34,900,000 
$ 400,000 
Amortization of intangible assets
$ 25,100,000 
$ 19,900,000 
$ 12,000,000 
 
 
 
GOODWILL AND INTANGIBLE ASSETS - Narrative Indefinite-lived Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended
Mar. 26, 2016
Trade name/trademarks
Jan. 1, 2017
Trade name/trademarks
Dec. 25, 2015
Trade name/trademarks
Mar. 25, 2016
Trade name/trademarks
Jan. 1, 2017
CLP and Spartan [Member]
Trade name/trademarks
Indefinite-lived Intangible Assets [Line Items]
 
 
 
 
 
Indefinite-lived trade name/trademarks
 
$ 6.0 
$ 16.2 
 
$ 5.7 
Estimated Useful Lives in Years
 
 
 
3 years 
 
Impairment of intangible assets, indefinite-lived
$ 4.5 
 
 
 
 
GOODWILL AND INTANGIBLE ASSETS - Narrative Impairment (Details) (USD $)
0 Months Ended 6 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 6 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Mar. 26, 2016
Jan. 1, 2017
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Jan. 1, 2017
Minimum
Jan. 1, 2017
Maximum
Jan. 1, 2017
PeopleManagement
Dec. 25, 2015
PeopleManagement
Dec. 26, 2014
PeopleManagement
Jan. 1, 2017
PeopleScout
Dec. 25, 2015
PeopleScout
Dec. 26, 2014
PeopleScout
Sep. 23, 2016
Staff Management SMX [Member]
Jan. 1, 2017
Staff Management SMX [Member]
Mar. 26, 2016
Staff Management SMX [Member]
PeopleManagement
Mar. 26, 2016
PlaneTechs
PeopleManagement
Jun. 24, 2016
PlaneTechs
Sales Revenue, Net
Mar. 26, 2016
hrX
PeopleScout
Dec. 25, 2015
hrX
Sales Revenue, Net
Sep. 23, 2016
Amazon [Member]
Staff Management SMX [Member]
Jun. 24, 2016
Amazon [Member]
Customer Concentration Risk
Sales Revenue, Net
Jun. 26, 2015
Amazon [Member]
Customer Concentration Risk
Sales Revenue, Net
Dec. 25, 2015
Amazon [Member]
Customer Concentration Risk
Sales Revenue, Net
Mar. 26, 2016
Customer relationships
Jan. 1, 2017
Customer relationships
Mar. 26, 2016
Trade name/trademarks
Jan. 1, 2017
Fiscal 2017 [Domain]
Amazon [Member]
Staff Management SMX [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Cost of Capital
 
 
 
 
 
12.00% 
17.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment loss
$ (65,869,000)
 
$ (65,869,000)
$ 0 
$ 0 
 
 
$ (50,700,000)
 
 
$ 15,169,000 
 
 
 
 
$ (33,700,000)
$ (17,000,000)
 
$ (15,200,000)
 
 
 
 
 
 
 
 
 
Sales Revenue, Goods, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,400,000 
 
106,000,000 
125,000,000 
354,000,000 
 
 
 
 
Concentration Risk, Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.00% 
10.40% 
13.10% 
 
 
 
 
Decrease in Revenue, Due to Forecasted Transaction
 
125,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Revenue, Services, Percent of Revenue, Decline
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30.00% 
 
 
 
 
 
 
 
 
 
 
Impairment of intangible assets, finite-lived
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28,900,000 
28,900,000 
 
 
Discount rate
 
 
 
 
 
 
 
 
 
 
 
 
 
15.00% 
 
 
 
 
 
 
25.00% 
 
 
 
13.00% 
 
17.00% 
 
Fair value inputs, royalty rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.00% 
 
Impairment of intangible assets, indefinite-lived
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,500,000 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30,000,000 
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount
 
 
 
 
 
20.00% 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, Gross
 
$ 336,302,000 
$ 336,302,000 
$ 314,705,000 
$ 288,065,000 
 
 
$ 100,146,000 
$ 103,977,000 
$ 64,875,000 
$ 129,852,000 
$ 104,424,000 
$ 116,886,000 
 
$ 10,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Workers' Compensation Deductible Limit [Line Items]
 
 
Undiscounted workers’ compensation reserve
$ 292,169 
$ 284,306 
Less discount on workers' compensation reserve
14,818 
18,026 
Workers' compensation reserve, net of discount
277,351 
266,280 
Less current portion
79,126 
69,308 
Long-term portion
$ 198,225 
$ 196,972 
WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Workers' Compensation Deductible Limit [Line Items]
 
 
 
Workers' compensation claim deductible limit
$ 2.0 
 
 
Weighted average period - claim payments below deductible limit
4 years 5 months 24 days 
 
 
Payments made against self-insured claims
73.6 
70.7 
60.6 
Weighted average period - claim payments and receivables above deductible limit
15 years 
 
 
Excess claims
52.9 
49.0 
 
Workers' compensation claim receivables net of valuation allowance
48.9 
45.2 
 
Workers' compensation expense
$ 94.0 
$ 98.2 
$ 77.5 
Below limit
 
 
 
Workers' Compensation Deductible Limit [Line Items]
 
 
 
Weighted average rate
1.60% 
1.80% 
 
WORKERS' COMPENSATION INSURANCE AND RESERVES -Estimated future payout (Details) (USD $)
Jan. 1, 2017
Dec. 25, 2015
Workers' Compensation Insurance and Reserves [Abstract]
 
 
2017
$ 79,126,000 
 
2018
43,882,000 
 
2019
25,220,000 
 
2020
15,464,000 
 
2021
9,979,000 
 
Thereafter
50,750,000 
 
Sub-total
224,421,000 
 
Excess claims
52,900,000 
49,000,000 
Total
$ 277,351,000 
 
LONG-TERM DEBT Summary of long-term debt (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Debt Instrument [Line Items]
 
 
Total
$ 137,629 
$ 245,664 
Long-term debt, less current portion
135,362 
243,397 
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
 
 
Debt Instrument [Line Items]
 
 
Total
112,507 
218,086 
Synovus Bank
 
 
Debt Instrument [Line Items]
 
 
Total
25,122 
27,578 
Long-term debt, current maturities
$ 2,267 
$ 2,267 
LONG-TERM DEBT Revolving Credit Facility Narrative (Details) (USD $)
0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 4 Months Ended 0 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Jun. 30, 2014
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Jan. 1, 2017
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Dec. 25, 2015
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Jun. 1, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
May 1, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Apr. 1, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 4, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 1, 2017
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 4, 2016
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Percent of Eligible Billed Accounts Receivable
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Percent of Eligible Unbilled Accounts Receivable
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Percent of Eligible Accounts Receivable
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Liquidation Value of Tacoma Headquarters Office Building
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 1, 2017
Liquidation Value of Tacoma Headquarters Office Building
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 1, 2017
Revolving Credit Facility, Liquidity Requirement Component
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
London Interbank Offered Rate (LIBOR)
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 1, 2017
London Interbank Offered Rate (LIBOR)
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Base rate [Member]
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 1, 2017
Base rate [Member]
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
May 1, 2016
Minimum
Revolving Credit Facility, Liquidity Requirement Component
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Apr. 1, 2016
Minimum
Revolving Credit Facility, Liquidity Requirement Component
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jan. 4, 2016
Minimum
Revolving Credit Facility, Liquidity Requirement Component
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Minimum
Revolving Credit Facility, Liquidity Requirement Component
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Sep. 23, 2016
Minimum
Revolving Credit Facility, Liquidity Requirement Component
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Minimum
London Interbank Offered Rate (LIBOR)
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Minimum
Base rate [Member]
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Maximum
London Interbank Offered Rate (LIBOR)
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Maximum
Base rate [Member]
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Less than 25% utilization [Member]
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Jun. 30, 2014
Greater than or equal to 25% utilization [Member]
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Revolving Credit Facility
Revolving Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility, maximum borrowing capacity
 
 
 
 
 
 
 
 
 
$ 300,000,000.0 
 
$ 330,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility borrowing limits, percent of accounts receivable
 
 
 
 
 
 
 
 
 
 
 
 
90.00% 
85.00% 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility borrowing limits, liquidation value requirement, pledged real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility borrowing limits, quarterly reduction, liquidation value of pledged real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility borrowing limits, liquidation value of pledged real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, current borrowing capacity
 
 
 
 
 
 
 
 
 
 
256,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
137,629,000 
245,664,000 
 
112,507,000 
218,086,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, amount outstanding
 
 
 
 
 
 
 
 
 
 
8,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, remaining borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
135,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, increase (decrease), Net
 
 
 
 
 
(10,000,000.0)
10,000,000 
10,000,000 
30,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, liquidity requirement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28,600,000 
19,300,000 
10,000,000 
37,500,000 
37,500,000 
 
 
 
 
 
 
Revolving credit facility, cash and cash equivalents under control agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, total liquidity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 163,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.25% 
0.25% 
2.00% 
1.00% 
 
 
Revolving credit facility, additional base rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
1.50% 
0.50% 
0.625% 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, interest rate description
 
 
one-month 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, interest rate at period end
 
 
 
2.13% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility, unused capacity, commitment fee percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.375% 
0.25% 
Revolving credit facility,, utilization threshold
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit, additional basis rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.125% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT Term Loan Agreement (Details) (USD $)
0 Months Ended 0 Months Ended 0 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Feb. 4, 2013
Synovus Bank
extension
Jan. 1, 2017
Synovus Bank
Dec. 25, 2015
Synovus Bank
Feb. 4, 2013
Synovus Bank
Feb. 4, 2013
Synovus Bank
London Interbank Offered Rate (LIBOR)
Jan. 1, 2017
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Dec. 25, 2015
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Jun. 1, 2016
Revolving Credit Facility
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
May 1, 2016
Revolving Credit Facility
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Apr. 1, 2016
Revolving Credit Facility
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Jan. 4, 2016
Revolving Credit Facility
Bank of America, N.A. and Wells Fargo Capital Finance, LLC
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, face amount
 
 
 
 
 
$ 34,000,000 
 
 
 
 
 
 
 
Debt Instrument, term
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, periodic payment, principal
 
 
2,300,000 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, amortization term
 
 
15 years 
 
 
 
 
 
 
 
 
 
 
Term Loan, interest rate description
 
 
one-month 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, basis spread on variable rate
 
 
 
 
 
 
1.50% 
 
 
 
 
 
 
Debt Instrument, number of extensions available to company
 
 
5 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, extension period
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, interest rate at period end
 
 
 
2.70% 
 
 
 
 
 
 
 
 
 
Total
137,629,000 
245,664,000 
 
25,122,000 
27,578,000 
 
 
112,507,000 
218,086,000 
 
 
 
 
Long-term debt, current maturities
 
 
 
2,267,000 
2,267,000 
 
 
 
 
 
 
 
 
Line of credit facility, increase (decrease), Net
 
 
 
 
 
 
 
 
 
$ (10,000,000.0)
$ 10,000,000 
$ 10,000,000 
$ 30,000,000.0 
LONG-TERM DEBT Future Debt Payment Schedule (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Debt Instrument [Line Items]
 
 
Total
$ 137,629 
$ 245,664 
Synovus Bank
 
 
Debt Instrument [Line Items]
 
 
2017
2,267 
 
2018
22,855 
 
Total
$ 25,122 
$ 27,578 
COMMITMENTS AND CONTINGENCIES - Workers' Compensation Commitments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Workers' Compensation Commitments [Line Items]
 
 
Cash collateral held by workers' compensation insurance carriers
$ 28,066 
$ 23,133 
Cash and cash equivalents held in Trust
32,841 
26,046 
Investments held in Trust
146,517 
126,788 
Letters of credit
7,982 
4,520 
Surety bonds
20,440 
17,946 
Total collateral commitments
$ 235,846 
$ 198,433 
Surety bonds annual fee limit, % of bond amount
2.00% 
 
Surety bonds required cancellation notice
60 days 
 
Minimum
 
 
Workers' Compensation Commitments [Line Items]
 
 
Surety bonds review and renewal period if elected
1 year 
 
Maximum
 
 
Workers' Compensation Commitments [Line Items]
 
 
Surety bonds review and renewal period if elected
4 years 
 
COMMITMENTS AND CONTINGENCIES -Operating Leases (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Commitments and Contingencies Disclosure [Abstract]
 
2017
$ 6,729 
2018
6,056 
2019
5,365 
2020
4,593 
2021
2,787 
Thereafter
602 
Total future non-cancelable minimum lease payments
$ 26,132 
COMMITMENTS AND CONTINGENCIES Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Long-term Purchase Commitment [Line Items]
 
 
 
Operating leases, maximum period afforded to each party to cancel lease agreements
90 days 
 
 
Operating leases, rent expense
$ 26.5 
$ 23.1 
$ 23.0 
Purchase obligation
11.6 
 
 
Purchase obligation, due in next twelve months
$ 7.6 
 
 
STOCKHOLDERS' EQUITY (Details) (USD $)
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Jul. 31, 2011
Class of Stock [Line Items]
 
 
 
Stock Repurchased and Retired During Period, Value
$ 5,748,000 
 
 
Preferred stock, shares authorized
20,000,000 
20,000,000 
 
Common stock
 
 
 
Class of Stock [Line Items]
 
 
 
Stock repurchase program, authorized amount
 
 
75,000,000.0 
Stock repurchase program, remaining authorized repurchase amount (in shares)
29,400,000 
 
 
Purchases and retirement of common stock (in shares)
300,000 
 
 
Stock Repurchased and Retired During Period, Value
$ 5,800,000 
 
 
Shares, Unvested Restricted Stock Included in Shares Outstanding, Shares
700,000 
700,000 
 
STOCK-BASED COMPENSATION - Restricted and Unrestricted Stock and Performance Share Units (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Jan. 1, 2017
Restricted stock
Dec. 25, 2015
Restricted stock
Dec. 26, 2014
Restricted stock
Jan. 1, 2017
Performance shares
Dec. 25, 2015
Performance shares
Dec. 26, 2014
Performance shares
Jan. 1, 2017
Minimum
Restricted stock
Jan. 1, 2017
Maximum
Restricted stock
May 11, 2016
Incentive Plan
Share-based Compensation by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Non-vested at beginning of period (in shares)
1,218,000 
 
 
 
 
 
 
 
 
 
 
 
Granted (in shares)
602,000 
 
 
 
 
 
 
 
 
 
 
 
Vested (in shares)
(508,000)
 
 
 
 
 
 
 
 
 
 
 
Forfeited (in shares)
(103,000)
 
 
 
 
 
 
 
 
 
 
 
Non-vested at the end of the period (in shares)
1,209,000 
1,218,000 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
Non-vested at start of the period (in dollars per share)
$ 22.63 
 
 
 
 
 
 
 
 
 
 
 
Granted (in dollars per share)
$ 21.53 
$ 23.03 
$ 26.02 
 
 
 
 
 
 
 
 
 
Vested (in dollars per share)
$ 21.02 
 
 
 
 
 
 
 
 
 
 
 
Forfeited (in dollars per share)
$ 21.79 
 
 
 
 
 
 
 
 
 
 
 
Non-vested at end of the period (in dollars per share)
$ 22.76 
$ 22.63 
 
 
 
 
 
 
 
 
 
 
Shares authorized for issuance (in shares)
 
 
 
 
 
 
 
 
 
 
 
1,540,000 
Vesting period
 
 
 
 
 
 
3 years 
 
 
3 years 
4 years 
 
Number of common stock shares represented by each performance share (in shares)
1 
 
 
 
 
 
 
 
 
 
 
 
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options
 
 
 
$ 10.4 
 
 
$ 1.6 
 
 
 
 
 
Unrecognized stock-based compensation expense, period for recognition
 
 
 
1 year 7 months 24 days 
 
 
1 year 6 months 28 days 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value
 
 
 
$ 6.6 
$ 6.2 
$ 4.9 
$ 3.3 
$ 4.0 
$ 2.1 
 
 
 
STOCK-BASED COMPENSATION - Stock Option (Details) (Stock Option)
12 Months Ended
Jan. 1, 2017
Stock Option
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Option Expiration Period
7 years 
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) (Employee stock purchase plan, USD $)
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Employee stock purchase plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
ESPP shares reserved for purchase (in shares)
1,000,000 
 
 
Maximum employee subscription rate
10.00% 
 
 
Purchase price of common stock, percent of market value
85.00% 
 
 
Employee stock purchase plan requisite service period
1 month 
 
 
Stock issued during period (in shares)
87,000 
68,000 
64,000 
Proceeds from Issuance of shares under incentive and share-based compensation plans (in dollars per share)
$ 17.51 
$ 20.65 
$ 21.55 
STOCK-BASED COMPENSATION - Stock-based compensation expense (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Total stock-based compensation expense
$ 9.4 
$ 11.1 
$ 11.1 
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense
$ 3.3 
$ 3.9 
$ 3.9 
DEFINED CONTRIBUTION PLANS (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Compensation and Retirement Disclosure [Abstract]
 
 
 
Deferred compensation liability, current and noncurrent
$ 17.8 
$ 12.9 
 
Deferred compensation arrangement with individual, compensation expense
$ 2.8 
$ 2.8 
$ 2.0 
INCOME TAXES - Narrative (Details) (USD $)
12 Months Ended 12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Dec. 27, 2013
Jan. 1, 2017
Work Opportunity Tax Credit
Staffing Solutions Holdings, Inc. (Seaton)
Federal WOTCs
Dec. 31, 2017
Scenario, Forecast [Member]
Work Opportunity Tax Credit
Staffing Solutions Holdings, Inc. (Seaton)
Federal WOTCs
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
Effective income tax rate reconciliation, percent
25.00% 
26.10% 
19.80% 
 
 
 
Income tax expense (benefit) based on statutory rate
35.00% 
35.00% 
35.00% 
 
 
 
Discrete tax benefits
$ 6,000,000 
 
 
 
 
 
Deferred tax assets, goodwill and intangible assets
17,700,000 
 
 
 
 
 
Expected Benefit
2,856,000 
 
 
 
1,419,000 
1,400,000 
Foreign income tax expense (benefit)
3,100,000 
7,100,000 
3,100,000 
 
 
 
Foreign income tax expense (benefit), impairment loss
12,100,000 
 
 
 
 
 
Undistributed earnings of foreign subsidiaries
18,600,000 
 
 
 
 
 
Unrecognized tax benefits
2,200,000 
2,195,000 
2,039,000 
2,035,000 
 
 
Unrecognized tax benefits that would impact effective tax rate
1,500,000 
 
 
 
 
 
Unrecognized tax benefits, income tax penalties accrued
200,000 
 
 
 
 
 
Unrecognized tax benefits, interest on income taxes accrued
$ 900,000 
 
 
 
 
 
INCOME TAXES INCOME TAXES - Provision for Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 1, 2017
Sep. 23, 2016
Jun. 24, 2016
Mar. 25, 2016
Dec. 25, 2015
Sep. 25, 2015
Jun. 26, 2015
Mar. 27, 2015
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Current taxes:
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
$ 12,082 
$ 12,665 
$ (161)
State
 
 
 
 
 
 
 
 
5,448 
5,611 
2,614 
Foreign
 
 
 
 
 
 
 
 
2,677 
1,882 
951 
Total current taxes
 
 
 
 
 
 
 
 
20,207 
20,158 
3,404 
Deferred taxes:
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
 
 
(20,693)
4,963 
10,198 
State
 
 
 
 
 
 
 
 
(4,064)
81 
2,481 
Foreign
 
 
 
 
 
 
 
 
(539)
(2)
86 
Total deferred taxes
 
 
 
 
 
 
 
 
(25,296)
5,042 
12,765 
Income tax expense (benefit)
$ 4,822 
$ 3,455 
$ (13,978)
$ 612 
$ 4,696 
$ 12,796 
$ 6,235 
$ 1,473 
$ (5,089)
$ 25,200 
$ 16,169 
INCOME TAXES INCOME TAXES - Income Tax Reconciliation (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 1, 2017
Sep. 23, 2016
Jun. 24, 2016
Mar. 25, 2016
Dec. 25, 2015
Sep. 25, 2015
Jun. 26, 2015
Mar. 27, 2015
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Income Tax Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit) based on statutory rate
 
 
 
 
 
 
 
 
$ (7,119)
$ 33,745 
$ 28,641 
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation, Adjustments to Statutory Income Tax [Abstract]
 
 
 
 
 
 
 
 
 
 
 
State income taxes, net of federal benefit
 
 
 
 
 
 
 
 
1,373 
4,175 
3,213 
Tax credits, net
 
 
 
 
 
 
 
 
(17,141)
(14,483)
(18,564)
Non-deductible goodwill impairment charge
 
 
 
 
 
 
 
 
17,694 
0 
0 
Non-deductible/non-taxable items
 
 
 
 
 
 
 
 
630 
2,456 
1,983 
Foreign taxes
 
 
 
 
 
 
 
 
993 
(933)
1,037 
Other, net
 
 
 
 
 
 
 
 
(1,519)
240 
(141)
Total taxes on income (loss)
$ 4,822 
$ 3,455 
$ (13,978)
$ 612 
$ 4,696 
$ 12,796 
$ 6,235 
$ 1,473 
$ (5,089)
$ 25,200 
$ 16,169 
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation, Adjustments to Statutory Income Tax Rate [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit) based on statutory rate
 
 
 
 
 
 
 
 
35.00% 
35.00% 
35.00% 
Effective Income Tax Rate Reconciliation, Percent [Abstract]
 
 
 
 
 
 
 
 
 
 
 
State income taxes, net of federal benefit
 
 
 
 
 
 
 
 
(6.80%)
4.30% 
3.90% 
Tax credits, net
 
 
 
 
 
 
 
 
84.30% 
(15.00%)
(22.60%)
Non-deductible goodwill impairment charge
 
 
 
 
 
 
 
 
(87.00%)
0.00% 
0.00% 
Non-deductible/non-taxable items
 
 
 
 
 
 
 
 
(3.10%)
2.50% 
2.40% 
Foreign taxes
 
 
 
 
 
 
 
 
(4.80%)
(1.00%)
1.30% 
Other, net
 
 
 
 
 
 
 
 
7.40% 
0.30% 
(0.20%)
Total taxes on income (loss)
 
 
 
 
 
 
 
 
25.00% 
26.10% 
19.80% 
INCOME TAXES INCOME TAXES - Deferred Tax Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 1, 2017
Dec. 25, 2015
Deferred tax assets:
 
 
Allowance for doubtful accounts
$ 1,970 
$ 2,295 
Accounts payable and other accrued expenses
8,577 
4,896 
Net operating loss carryforwards
2,287 
2,385 
Tax credit carryforwards
2,835 
8,315 
Accrued wages and benefits
9,470 
10,791 
Deferred compensation
7,003 
5,156 
Deferred compensation
1,090 
1,057 
Other
33,232 
34,895 
Valuation allowance
(2,266)
(3,227)
Total deferred tax asset, net of valuation allowance
30,966 
31,668 
Deferred tax liabilities:
 
 
Prepaid expenses, deposits and other current assets
(2,697)
(3,141)
Depreciation and amortization
(18,330)
(44,383)
Workers’ compensation
(3,169)
(3,643)
Total deferred tax liabilities
(24,196)
(51,167)
Net deferred tax asset, end of year
6,770 
 
Net deferred tax liabilities, end of year
 
$ (19,499)
INCOME TAXES INCOME TAXES - Net Operating Losses and Credit Carryforwards (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Operating Loss Carryforwards [Line Items]
 
Carryover Tax Benefit
$ 5,122 
Valuation Allowance
(2,266)
Expected Benefit
2,856 
State and Local Jurisdiction
 
Operating Loss Carryforwards [Line Items]
 
Carryover Tax Benefit
1,416 
Valuation Allowance
(1,072)
Expected Benefit
344 
Staffing Solutions Holdings, Inc. (Seaton) |
Work Opportunity Tax Credit |
Federal WOTCs
 
Operating Loss Carryforwards [Line Items]
 
Carryover Tax Benefit
1,419 
Valuation Allowance
0 
Expected Benefit
1,419 
Staffing Solutions Holdings, Inc. (Seaton) |
Net Operating Losses |
State and Local Jurisdiction
 
Operating Loss Carryforwards [Line Items]
 
Carryover Tax Benefit
1,093 
Valuation Allowance
0 
Expected Benefit
1,093 
Staffing Solutions Holdings, Inc. (Seaton) |
Net Operating Losses |
Foreign NOLs
 
Operating Loss Carryforwards [Line Items]
 
Carryover Tax Benefit
1,194 
Valuation Allowance
(1,194)
Expected Benefit
$ 0 
INCOME TAXES INCOME TAXES - Unrecognized Tax Benefits Roll Forward (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Balance, beginning of fiscal year
$ 2,195 
$ 2,039 
$ 2,035 
Increases for tax positions related to the current year
348 
436 
389 
Reductions due to lapsed statute of limitations
(301)
(280)
(385)
Balance, end of fiscal year
$ 2,200 
$ 2,195 
$ 2,039 
NET INCOME PER SHARE (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 1, 2017
Sep. 23, 2016
Jun. 24, 2016
Mar. 25, 2016
Dec. 25, 2015
Sep. 25, 2015
Jun. 26, 2015
Mar. 27, 2015
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$ 18,087 
$ 23,429 
$ (63,735)
$ 6,968 
$ 28,168 
$ 20,090 
$ 17,273 
$ 5,716 
$ (15,251)
$ 71,247 
$ 65,675 
Weighted average number of common shares used in basic net income (loss) per common share
 
 
 
 
 
 
 
 
41,648 
41,226 
40,734 
Dilutive effect of non-vested restricted stock
 
 
 
 
 
 
 
 
0 
396 
442 
Weighted average number of common shares used in diluted net income (loss) per common share
 
 
 
 
 
 
 
 
41,648 
41,622 
41,176 
Net income (loss) per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per share)
$ 0.43 
$ 0.56 
$ (1.53)
$ 0.17 
$ 0.68 
$ 0.49 
$ 0.42 
$ 0.14 
$ (0.37)
$ 1.73 
$ 1.61 
Diluted (in dollars per share)
$ 0.43 
$ 0.56 
$ (1.53)
$ 0.17 
$ 0.67 
$ 0.48 
$ 0.42 
$ 0.14 
$ (0.37)
$ 1.71 
$ 1.59 
Anti-dilutive shares
 
 
 
 
 
 
 
 
0 
89 
58 
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $)
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
 
 
 
Balance at beginning of period
$ (14,013,000)
$ 871,000 
 
Current-period other comprehensive income
2,580,000 
(14,884,000)
(1,162,000)
Balance at end of period
(11,433,000)
(14,013,000)
871,000 
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax, Portion Attributable to Parent
 
3,000,000 
 
Foreign currency translation adjustment
 
 
 
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
 
 
 
Balance at beginning of period
(13,514,000)
848,000 
 
Foreign currency translation adjustment, net of tax
1,830,000 
(14,362,000)
(1,281,000)
Balance at end of period
(11,684,000)
(13,514,000)
848,000 
Unrealized gain (loss) on marketable securities
 
 
 
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
 
 
 
Balance at beginning of period
(499,000)
23,000 
 
Unrealized gain (loss) on investments, net of tax
750,000 
(522,000)
119,000 
Balance at end of period
$ 251,000 
$ (499,000)
$ 23,000 
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $)
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Dec. 1, 2015
SIMOS Insourcing Solutions Corporation
Jan. 1, 2017
SIMOS Insourcing Solutions Corporation
Significant Unobservable Inputs (Level 3)
Dec. 25, 2015
SIMOS Insourcing Solutions Corporation
Significant Unobservable Inputs (Level 3)
Jan. 1, 2017
Total Fair Value
SIMOS Insourcing Solutions Corporation
Dec. 25, 2015
Total Fair Value
SIMOS Insourcing Solutions Corporation
Dec. 1, 2015
Total Fair Value
Contingent Consideration [Member]
SIMOS Insourcing Solutions Corporation
Significant Unobservable Inputs (Level 3)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
Property, plant and equipment on account that was not yet paid
$ 1,500,000 
$ 300,000 
$ 1,000,000 
 
 
 
 
 
 
Fair value measurement at beginning of period
 
 
 
 
 
 
 
 
19,300,000 
Contingent consideration
21,600,000 
0 
 
18,300,000 
21,600,000 
19,300,000 
21,600,000 
19,300,000 
 
Business combination, provisional information, initial accounting incomplete, adjustment, consideration transferred
3,800,000 
 
 
 
 
 
 
 
 
Cash paid during the period for:
 
 
 
 
 
 
 
 
 
Interest
4,083,000 
3,504,000 
2,483,000 
 
 
 
 
 
 
Income taxes
$ 10,312,000 
$ 34,401,000 
$ 9,140,000 
 
 
 
 
 
 
SEGMENT INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 1, 2017
Sep. 23, 2016
Jun. 24, 2016
Mar. 25, 2016
Dec. 25, 2015
Sep. 25, 2015
Jun. 26, 2015
Mar. 27, 2015
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
$ 734,951 
$ 697,097 
$ 672,612 
$ 645,980 
$ 810,733 
$ 683,918 
$ 627,714 
$ 573,315 
$ 2,750,640 
$ 2,695,680 
$ 2,174,045 
Income (loss) from operations
23,481 
27,751 
(76,826)
8,599 
33,157 
33,252 
23,710 
7,723 
(16,995)
97,842 
81,728 
Depreciation and amortization
(12,019)
(11,690)
(11,694)
(11,289)
(10,428)
(10,498)
(10,397)
(10,520)
(46,692)
(41,843)
(29,474)
Interest and other income (expense), net
(572)
(867)
(887)
(1,019)
(293)
(366)
(202)
(534)
(3,345)
(1,395)
116 
Income before tax expense
22,909 
26,884 
(77,713)
7,580 
32,864 
32,886 
23,508 
7,189 
(20,340)
96,447 
81,844 
Corporate Segment
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
 
 
 
 
 
 
 
 
(30,237)
(30,050)
(26,431)
PeopleReady
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
1,629,455 
1,625,817 
1,534,547 
Income (loss) from operations
 
 
 
 
 
 
 
 
101,270 
123,899 
105,731 
PeopleManagement
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
940,453 
965,331 
591,366 
Income (loss) from operations
 
 
 
 
 
 
 
 
(60,452)
36,512 
28,828 
PeopleScout
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
 
 
 
 
 
 
 
180,732 
104,532 
48,132 
Income (loss) from operations
 
 
 
 
 
 
 
 
$ 19,116 
$ 9,324 
$ 3,074 
SEGMENT INFORMATION SEGMENT GEOGRAPHICAL (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 1, 2017
Sep. 23, 2016
Jun. 24, 2016
Mar. 25, 2016
Dec. 25, 2015
Sep. 25, 2015
Jun. 26, 2015
Mar. 27, 2015
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue from services
$ 734,951 
$ 697,097 
$ 672,612 
$ 645,980 
$ 810,733 
$ 683,918 
$ 627,714 
$ 573,315 
$ 2,750,640 
$ 2,695,680 
$ 2,174,045 
Sales Revenue, Services, Percent of Revenue
 
 
 
 
 
 
 
 
100.00% 
100.00% 
100.00% 
UNITED STATES
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue from services
 
 
 
 
 
 
 
 
2,644,414 
2,603,085 
2,096,958 
Sales Revenue, Services, Percent of Revenue
 
 
 
 
 
 
 
 
96.10% 
96.60% 
96.50% 
Outside of United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Revenue from services
 
 
 
 
 
 
 
 
$ 106,226 
$ 92,595 
$ 77,087 
Sales Revenue, Services, Percent of Revenue
 
 
 
 
 
 
 
 
3.90% 
3.40% 
3.50% 
SEGMENT INFORMATION Narrative (Details)
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Outside of United States [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net Property and Equipment Percent
7.00% 
2.00% 
 
Customer A [Member] |
Customer Concentration Risk |
Sales Revenue, Segment [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Concentration Risk, Percentage
 
13.10% 
 
Customer A [Member] |
Customer Concentration Risk |
Sales Revenue, Segment [Member] |
PeopleManagement
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Concentration Risk, Percentage
18.20% 
36.70% 
30.60% 
Customer B [Member] |
Customer Concentration Risk |
Sales Revenue, Segment [Member] |
PeopleScout
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Concentration Risk, Percentage
12.80% 
 
 
Customer C [Member] |
Customer Concentration Risk |
Sales Revenue, Segment [Member] |
PeopleScout
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Concentration Risk, Percentage
10.00% 
 
 
Customer D [Member] |
Customer Concentration Risk |
Sales Revenue, Segment [Member] |
PeopleScout
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Concentration Risk, Percentage
 
10.60% 
 
Customer E [Member] |
Customer Concentration Risk |
Sales Revenue, Segment [Member] |
PeopleScout
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Concentration Risk, Percentage
 
10.20% 
 
SELECTED QUARTERLY FINANCIAL DATA (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 1, 2017
Sep. 23, 2016
Jun. 24, 2016
Mar. 25, 2016
Dec. 25, 2015
Sep. 25, 2015
Jun. 26, 2015
Mar. 27, 2015
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Selected Quarterly Financial Information [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Revenue from services
$ 734,951 
$ 697,097 
$ 672,612 
$ 645,980 
$ 810,733 
$ 683,918 
$ 627,714 
$ 573,315 
$ 2,750,640 
$ 2,695,680 
$ 2,174,045 
Cost of services
554,064 
518,702 
502,688 
495,468 
625,729 
515,051 
475,748 
443,479 
2,070,922 
2,060,007 
1,637,066 
Gross profit
180,887 
178,395 
169,924 
150,512 
185,004 
168,867 
151,966 
129,836 
679,718 
635,673 
536,979 
Selling, general and administrative expense
145,387 
134,679 
135,787 
130,624 
141,419 
125,117 
117,859 
111,593 
546,477 
495,988 
425,777 
Depreciation and amortization
12,019 
11,690 
11,694 
11,289 
10,428 
10,498 
10,397 
10,520 
46,692 
41,843 
29,474 
Goodwill and intangible asset impairment charge
0 
4,275 
99,269 
0 
 
 
 
 
103,544 
0 
0 
Income (loss) from operations
23,481 
27,751 
(76,826)
8,599 
33,157 
33,252 
23,710 
7,723 
(16,995)
97,842 
81,728 
Interest expense
(1,736)
(1,721)
(1,740)
(1,969)
(1,180)
(933)
(881)
(1,166)
(7,166)
(4,160)
(3,156)
Interest and other income
1,164 
854 
853 
950 
887 
567 
679 
632 
3,821 
2,765 
3,272 
Interest and other income (expense), net
(572)
(867)
(887)
(1,019)
(293)
(366)
(202)
(534)
(3,345)
(1,395)
116 
Income (loss) before tax expense
22,909 
26,884 
(77,713)
7,580 
32,864 
32,886 
23,508 
7,189 
(20,340)
96,447 
81,844 
Income tax expense (benefit)
4,822 
3,455 
(13,978)
612 
4,696 
12,796 
6,235 
1,473 
(5,089)
25,200 
16,169 
Net income (loss)
$ 18,087 
$ 23,429 
$ (63,735)
$ 6,968 
$ 28,168 
$ 20,090 
$ 17,273 
$ 5,716 
$ (15,251)
$ 71,247 
$ 65,675 
Basic (in dollars per share)
$ 0.43 
$ 0.56 
$ (1.53)
$ 0.17 
$ 0.68 
$ 0.49 
$ 0.42 
$ 0.14 
$ (0.37)
$ 1.73 
$ 1.61 
Diluted (in dollars per share)
$ 0.43 
$ 0.56 
$ (1.53)
$ 0.17 
$ 0.67 
$ 0.48 
$ 0.42 
$ 0.14 
$ (0.37)
$ 1.71 
$ 1.59 
Schedule II - Valuation and Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 1, 2017
Dec. 25, 2015
Dec. 26, 2014
Dec. 27, 2013
Allowance for Doubtful Accounts [Member]
 
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
 
Balance, beginning of the year
$ 5,160 
$ 5,902 
$ 7,603 
$ 5,710 
Charged to expense
8,171 
7,132 
11,815 
 
Release of allowance or Write-offs
(8,913)
(8,833)
(9,922)
 
Balance, end of the year
5,160 
5,902 
7,603 
5,710 
Allowance for Receivable from Insurance Provider [Member]
 
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
 
Balance, beginning of the year
4,019 
3,874 
3,933 
5,652 
Charged to expense
207 
48 
0 
 
Release of allowance or Write-offs
(62)
(107)
(1,719)
 
Balance, end of the year
4,019 
3,874 
3,933 
5,652 
Valuation Allowance of Deferred Tax Assets [Member]
 
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
 
Balance, beginning of the year
2,266 
3,227 
2,844 
844 
Charged to expense
579 
383 
(68)
 
Release of allowance or Write-offs
(1,540)
0 
0 
 
Acquisition
0 
0 
2,068 
 
Balance, end of the year
$ 2,266 
$ 3,227 
$ 2,844 
$ 844