v3.24.2
Segment Information and Enterprise Reporting
 12 Months Ended
May 25, 2024
Segment Reporting [Abstract]  
Segment Information and Enterprise Reporting Segment Information and Enterprise Reporting
As discussed in Note 2 — Summary of Significant Accounting Policies, from May 29, 2022 to May 31, 2022, the Company had three operating segments – RGP, Sitrick and taskforce. Upon completing the sale of the taskforce operating segment, effective May 31, 2022, the Company’s operating segments consist of RGP and Sitrick. RGP is the Company’s only reportable segment. Sitrick does not individually meet the quantitative thresholds to qualify as a reportable segment. Therefore, Sitrick is disclosed as Other Segments. Prior-period comparative segment information was not restated. See Note 2 – Summary of Significant Accounting Policies for further discussion about the Company’s operating and reportable segments.
The tables below reflect the operating results of the Company’s segments consistent with the management and performance measurement system utilized by the Company. Performance measurement is based on segment Adjusted EBITDA, a non-GAAP measure. Adjusted EBITDA is defined as net income before amortization expense, depreciation expense, interest and income taxes plus or minus stock-based compensation expense, technology transformation costs, goodwill impairment, restructuring costs, and contingent consideration adjustments. Adjusted EBITDA at the segment level excludes certain shared corporate administrative costs that are not practical to allocate. The Company’s CODM does not evaluate segments using asset information.
The following table discloses the Company’s revenue and Adjusted EBITDA by segment for all periods presented (in thousands):
For the Years Ended
May 25,
2024		May 27,
2023		May 28,
2022
Revenue:
RGP$622,895$764,511$764,350
Other Segments (1)
9,90611,13240,668
Total revenue$632,801$775,643$805,018
Adjusted EBITDA:
RGP$84,677$132,377$134,187
Other Segments(676)1,1793,527
Reconciling items (2)
(32,518)(33,362)(34,583)
Total Adjusted EBITDA (3)
$51,483$100,194$103,131
(1)Amounts reported for the year ended May 27, 2023 include Sitrick and an immaterial amount from taskforce from May 29, 2022 through May 31, 2022, the completion date of the sale. Amounts previously reported for the year ended May 28, 2022 included the Sitrick and taskforce operating segments.
(2)Reconciling items are generally comprised of unallocated corporate administrative costs, including management and board compensation, corporate support function costs and other general corporate costs that are not allocated to segments.
(3)A reconciliation of the Company’s net income to Adjusted EBITDA on a consolidated basis is presented below.
The table below represents a reconciliation of the Company’s net income to Adjusted EBITDA for all periods presented (in thousands):
For the Years Ended
May 25,
2024		May 27,
2023		May 28,
2022
Net income$21,034 $54,359 $67,175 
Adjustments:
Amortization expense5,378 5,018 4,908 
Depreciation expense 3,050 3,539 3,575 
Interest expense, net(1,064)552 1,064 
Income tax expense (benefit) 8,795 18,259 15,793 
EBITDA37,193 81,727 92,515 
Stock-based compensation expense5,732 9,521 8,168 
Technology transformation costs (1)
6,901 6,355 1,449 
Goodwill impairment (2)
- 2,955 - 
Acquisition costs (3)
1,970 - - 
Restructuring costs (4)
4,087 (364)833 
Contingent consideration adjustment(4,400)- 166 
Adjusted EBITDA$51,483 $100,194 $103,131 
(1)Technology transformation costs represent costs included in net income related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based enterprise resource planning system and talent
acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized.
(2)The effect of the goodwill impairment charge recognized during the year ended May 27, 2023 was related to Sitrick's operating segment.
(3)Acquisition costs primarily represent one-time costs included in net income related to the Company’s acquisitions, which include fees paid to the Company’s brokers and other professional services firms. See Note 3 – Acquisitions and Dispositions in the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for further discussion.
(4)The Company initiated the cost reduction plan (the “U.S. Restructuring Plan”) in October 2023 and substantially completed the U.S. Restructuring Plan during fiscal 2024. In addition, the Company substantially completed its global restructuring and business transformation plans in North America, Asia Pacific and Europe in fiscal 2021 and the remaining accrued restructuring liability was released in fiscal 2023.
The table below represents the Company’s revenue and long-lived assets by geographic location (in thousands):
Revenue for the Years Ended
Long-Lived Assets (1) as of
May 25,
2024		May 27,
2023		May 28
2022		May 25,
2024		May 27,
2023
United States$519,869 $664,515 $663,980 $13,343 $28,377 
International112,932 111,128 141,038 2,319 2,859 
Total$632,801 $775,643 $805,018 $15,662 $31,236 
(1)Long-lived assets are comprised of property and equipment and ROU assets.