v3.26.1
Segment Disclosures
 3 Months Ended
Mar. 29, 2026
Segment Reporting [Abstract]  
Segment Disclosures
13. Segment Disclosures

The Company’s operating segments, which also represent its reportable segments, are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision-maker (“CODM”, the Company’s CEO) to determine resource allocation and assess performance. The Company’s three reportable segments: (1) ETM, (2) SET and (3) Education, reflect the specialty services the Company provides to customers and represent how the business is organized internally. Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services.

In the first quarter of 2026, the Company aligned government customers from the ETM segment to the SET segment to better position the services within the Company’s segment structure. The 2025 ETM and SET segment information has been recast to conform to the new alignment.

The following tables present information about the reported revenue from services of the Company by reportable segment, along with a reconciliation to earnings before taxes, for the first quarter of 2026 and 2025. Asset information by reportable segment is not presented since the Company does not produce such information internally nor does it use such information to manage its business.
First Quarter 2026
ETMSETEducationInter-SegmentTotal
Revenue from services$459.2 $289.2 $294.1 $(1.8)$1,040.7 
Cost of services(1)
373.6 217.4 255.1 (1.8)844.3 
Gross profit85.6 71.8 39.0 — 196.4 
Direct salaries(2)
59.640.5 16.6 
Other segment expenses(3)
27.317.1 10.1 
SG&A expenses86.957.626.7— 171.2 
Asset impairment charge— 2.2 — 2.2 
Business unit profit (loss)$(1.3)$12.0 $12.3 $— $23.0 
Corporate SG&A(16.4)
Depreciation and amortization(4)
(11.7)
Consolidated earnings (loss) from operations(5.1)
Other income (expense), net(1.6)
Earnings (loss) before taxes$(6.7)
First Quarter 2025
ETMSETEducationInter-SegmentTotal
Revenue from services$529.1 $327.3 $309.0 $(0.5)$1,164.9 
Cost of services(1)
421.8 244.3 262.8 (0.5)928.4 
Gross profit107.3 83.0 46.2 — 236.5 
Direct salaries(2)
68.350.8 16.4 
Other segment expenses(3)
32.718.3 10.5 
SG&A expenses101.069.126.9— 197.0 
Business unit profit (loss)$6.3 $13.9 $19.3 $— $39.5 
Corporate SG&A(15.9)
Depreciation and amortization(4)
(12.8)
Consolidated earnings (loss) from operations10.8 
Other income (expense), net(3.2)
Earnings (loss) before taxes$7.6 
(1) Cost of services are those costs directly associated with the earning of revenue. The primary examples of these types of costs are temporary employee wages, along with other employee related costs, including associated payroll taxes, temporary employee benefits, such as service bonus, holiday pay, health insurance and workers’ compensation costs. These costs differ fundamentally from SG&A expenses in that they arise specifically from the action of providing the Company's services to customers whereas SG&A costs are incurred regardless of whether or not the Company places temporary employees with the Company's customers.

(2) Direct salaries refers to the compensation expenses for employees directly related to the Company’s operations and service delivery. These expenses include salaries, related payroll taxes, various benefits and performance-based incentives and bonuses for these employees.

(3) Other segment expenses includes shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs and operational software licenses.

(4) Represents total company depreciation and amortization of intangibles, including the amortization of hosted software.

Depreciation and amortization expense is included in SG&A expenses in the consolidated statements of earnings. Depreciation and amortization expense amounts below include amortization of implementation costs for hosted software, which are excluded in the presentation of depreciation and amortization in the consolidated statements of cash flows. The depreciation and amortization amounts by segment are as follows:

First Quarter
20262025
Depreciation and amortization:
Enterprise Talent Management$2.2 $3.2 
Science, Engineering & Technology7.4 7.5 
Education2.1 2.1