TrueBlue (TBI) 10-Q 30 Oct 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 01, 2017	Oct. 16, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	TBI
Entity Registrant Name	TrueBlue, Inc.
Entity Central Index Key	768,899
Current Fiscal Year End Date	--12-31
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		41,361,507

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 01, 2017	Jan. 01, 2017
Current assets:
Cash and cash equivalents	$ 35,055	$ 34,970
Accounts receivable, net of allowance for doubtful accounts of $5,741 and $5,160	380,473	352,606
Prepaid expenses, deposits and other current assets	18,923	21,373
Income tax receivable	5,945	18,854
Total current assets	440,396	427,803
Property and equipment, net	63,079	63,998
Restricted cash and investments	244,173	231,193
Deferred income taxes, net	1,037	6,770
Goodwill	226,771	224,223
Intangible assets, net	109,963	125,671
Other assets, net	46,931	50,787
Total assets	1,132,350	1,130,445
Current liabilities:
Accounts payable and other accrued expenses	67,364	66,758
Accrued wages and benefits	79,607	79,782
Current portion of workers’ compensation claims reserve	76,406	79,126
Contingent consideration	0	21,600
Current portion of long-term debt	23,422	2,267
Other current liabilities	1,408	1,602
Total current liabilities	248,207	251,135
Workers’ compensation claims reserve, less current portion	202,929	198,225
Long-term debt, less current portion	111,408	135,362
Other long-term liabilities	26,033	20,544
Total liabilities	588,577	605,266
Commitments and contingencies (Note 5)
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; 41,339 and 42,171 shares issued and outstanding	1	1
Accumulated other comprehensive loss	(6,880)	(11,433)
Retained earnings	550,652	536,611
Total shareholders’ equity	543,773	525,179
Total liabilities and shareholders’ equity	$ 1,132,350	$ 1,130,445

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Oct. 01, 2017	Jan. 01, 2017
Allowance for doubtful accounts	$ 5,741	$ 5,160
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	41,339,000	42,171,000
Common stock, shares outstanding	41,339,000	42,171,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2017	Sep. 23, 2016	Oct. 01, 2017	Sep. 23, 2016
Revenue from services	$ 660,780	$ 697,097	$ 1,839,146	$ 2,015,689
Cost of services	488,761	518,702	1,372,418	1,516,858
Gross profit	172,019	178,395	466,728	498,831
Selling, general and administrative expense	131,552	134,679	378,150	401,090
Depreciation and amortization	11,189	11,690	34,650	34,673
Goodwill and intangible asset impairment charge	0	4,275	0	103,544
Income (loss) from operations	29,278	27,751	53,928	(40,476)
Interest expense	(1,365)	(1,721)	(3,893)	(5,430)
Interest and other income	1,146	854	3,903	2,657
Interest and other income (expense), net	(219)	(867)	10	(2,773)
Income (loss) before tax expense	29,059	26,884	53,938	(43,249)
Income tax expense (benefit)	7,838	3,455	14,909	(9,911)
Net income (loss)	$ 21,221	$ 23,429	$ 39,029	$ (33,338)
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.52	$ 0.56	$ 0.94	$ (0.80)
Diluted (in dollars per share)	$ 0.51	$ 0.56	$ 0.94	$ (0.80)
Weighted average shares outstanding:
Basic (in shares)	41,046	41,762	41,420	41,651
Diluted (in shares)	41,276	42,056	41,671	41,651
Other comprehensive income:
Total other comprehensive income, net of tax	$ 1,567	$ 2,031	$ 4,553	$ 4,287
Comprehensive income (loss)	22,788	25,460	43,582	(29,051)
Foreign currency translation adjustment
Other comprehensive income:
Foreign currency translation adjustment	1,143	1,247	3,483	3,341
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Other comprehensive income:
Unrealized gain on investments, net of tax	$ 424	$ 784	$ 1,070	$ 946

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2017	Sep. 23, 2016
Cash flows from operating activities:
Net income (loss)	$ 39,029	$ (33,338)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	34,650	34,673
Goodwill and intangible asset impairment charge	0	103,544
Provision for doubtful accounts	6,321	6,361
Stock-based compensation	6,161	7,443
Deferred income taxes	4,890	(23,874)
Other operating activities	2,563	5,603
Changes in operating assets and liabilities, net of effects of acquisition of business:
Accounts receivable	(34,198)	102,722
Income tax receivable	12,788	4,018
Other assets	6,306	(3,563)
Accounts payable and other accrued expenses	(784)	(3,764)
Accrued wages and benefits	(176)	(3,254)
Workers’ compensation claims reserve	1,985	11,938
Other liabilities	1,086	4,740
Net cash provided by operating activities	80,621	213,249
Cash flows from investing activities:
Capital expenditures	(16,303)	(17,766)
Acquisition of business	0	(71,863)
Change in restricted cash and cash equivalents	8,623	732
Purchases of restricted investments	(36,015)	(35,940)
Maturities of restricted investments	15,042	12,273
Net cash used in investing activities	(28,653)	(112,564)
Cash flows from financing activities:
Payments for Repurchase of Common Stock	(29,371)	0
Net proceeds from stock option exercises and employee stock purchase plans	1,179	1,183
Common stock repurchases for taxes upon vesting of restricted stock	(2,956)	(2,692)
Net change in Revolving Credit Facility	(1,099)	(104,586)
Payments on debt	(1,700)	(1,700)
Payment of contingent consideration at acquisition date fair value	(18,300)	0
Other	0	20
Net cash used in financing activities	(52,247)	(107,775)
Effect of exchange rate changes on cash and cash equivalents	364	2,090
Net change in cash and cash equivalents	85	(5,000)
Cash and cash equivalents, beginning of period	34,970	29,781
Cash and cash equivalents, end of period	35,055	24,781
Supplemental Cash Flow Information [Abstract]
Interest	2,612	3,071
Income taxes	(2,972)	8,801
Property, plant, and equipment purchased but not yet paid	2,863	2,244
Non-cash acquisition adjustments	$ 0	$ 3,783

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Oct. 01, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “Company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 1, 2017 . The results of operations for the thirty-nine weeks ended October 1, 2017 , are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period. Goodwill and indefinite-lived intangible assets We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our second fiscal quarter, and more frequently if an event occurs or circumstances change that would indicate impairment may exist. These events or circumstances could include a significant change in the business climate,operating performance indicators, competition, customer engagement, legal factors, or sale or disposition of a significant portion of a reporting unit. We monitor the existence of potential impairment indicators throughout the fiscal year. Based on our annual goodwill impairment test performed as of the first day of our second fiscal quarter, all reporting units’ fair values were substantially in excess of their respective carrying values. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. Accordingly, no impairment loss was recognized for the thirty-nine weeks ended October 1, 2017 . Based on our test performed in the prior year, we recorded a goodwill impairment charge of $65.9 million for the thirty-nine weeks ended September 23, 2016 . We performed our annual indefinite-lived intangible asset impairment test as of the first day of our second fiscal quarter and determined that the estimated fair values exceeded the carrying amounts for both of our indefinite-lived trade names. Accordingly, no impairment loss was recognized for the thirty-nine weeks ended October 1, 2017 . Based on our test performed in the prior year, we recorded an impairment charge of $4.5 million for the thirty-nine weeks ended September 23, 2016 . Acquired intangible assets and other long-lived assets We generally record acquired intangible assets that have finite useful lives, such as customer relationships and trade names/trademarks, 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. Based on our review there was no impairment loss recognized for the thirty-nine weeks ended October 1, 2017 . In the prior year, we recorded an impairment to our acquired trade names/trademarks intangible assets of $4.3 million during the thirteen weeks ended September 23, 2016 , and also recorded an impairment to our customer relationships intangible assets of $28.9 million during the first half of fiscal 2016. Stock repurchases During the thirteen weeks ended October 1, 2017, we repurchased the remaining $13.9 million available under our $75.0 million share repurchase program. Under this program we repurchased and retired 4.8 million shares of our common stock at an average share price of $15.52 , which excludes commissions. On September 15, 2017, our Board of Directors authorized a $100 million share repurchase program of our outstanding common stock. The share repurchase program does not obligate us to acquire any particular amount of common stock and does not have an expiration date. There have been no repurchases under this new program during the thirteen weeks ended October 1, 2017 . Recently adopted accounting standards 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, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We early adopted this guidance for our fiscal 2017 annual impairment test. The adoption of the new standard did not have any impact to our consolidated financial statements. Recently issued accounting pronouncements not yet adopted In May 2017, the FASB issued guidance to provide clarity and reduce diversity in practice when accounting for a change to the terms or conditions of share-based payment awards. The objective is to reduce the scope of transactions that would require modification accounting. Disclosure requirements remain unchanged. 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 and do not expect the adoption to have a material impact on our 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 $8.6 million and $0.7 million for the thirty-nine weeks ended October 1, 2017 and September 23, 2016 , 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 asset 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 to have a material impact on our financial statements. In August 2016, the FASB issued guidance 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 should be applied using the retrospective transition method, if practicable. We plan to adopt this guidance on the effective date and do not expect the adoption to have a material impact on our 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 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 financial statements and expect that, upon adoption, a majority of our operating lease commitments will be recognized on our Consolidated Balance Sheets as operating lease liabilities and right-of-use assets. We do not expect the adoption to have a material impact on the pattern of expense recognition in our Consolidated Statements of Operations and Comprehensive Income. 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 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 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). We expect to adopt the guidance using the modified retrospective approach. We established a cross-functional implementation team consisting of representatives from our business segments and various departments. We utilized 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 making appropriate changes to our business processes, and controls to support recognition and disclosure under the new standard. We are substantially complete with our evaluation of the potential impact that adopting the new standard will have on our financial statements. Revenue from substantially all of our contracts with customers will continue to be recognized over time as services are rendered. We do not anticipate the adoption of this guidance will have a material impact on our financial reporting other than expanded disclosures. Other accounting standards that have been issued 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 financial statements upon adoption. 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.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Oct. 01, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	FAIR VALUE MEASUREMENT Our assets and liabilities measured at fair value on a recurring basis consisted of the following: October 1, 2017 (in thousands) 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) $ 35,055 $ 35,055 $ — $ — Restricted cash and cash equivalents (1) 59,788 59,788 — — Other restricted assets (2) 21,115 21,115 — — Restricted investments classified as held-to-maturity 165,053 — 165,053 — January 1, 2017 (in thousands) 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 (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 Insourcing Solutions Corporation (“SIMOS”), which was estimated using a probability-adjusted discounted cash flow model. 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 thirty-nine weeks ended October 1, 2017 : (in thousands) Fair value measurement at beginning of period $ 21,600 Accretion on contingent consideration 900 Payment of contingent consideration (22,500 ) Fair value measurement at end of period $ — During the second quarter of 2017, we paid $22.5 million relating to the contingent consideration associated with our acquisition of SIMOS. The purchase price fair value of the contingent consideration of $18.3 million is reflected in cash flows used in financing activities and the remaining balance of $4.2 million is recognized in cash flows used in operating activities as a decrease in Other assets and liabilities. The preliminary achievement of the defined performance milestone occurred in the fourth quarter of 2016; however, the final determination was subject to a verification period through the payout date in the second quarter of 2017. Amortization of the present value discount was recorded in Interest expense on the Consolidated Statements of Operations and Comprehensive Income (Loss). There were no material transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the thirty-nine weeks ended October 1, 2017 or September 23, 2016 .

RESTRICTED CASH AND INVESTMENTS

RESTRICTED CASH AND INVESTMENTS	9 Months Ended
	Oct. 01, 2017
Restricted Cash and Investments [Abstract]
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 debt 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 for the thirteen and thirty-nine weeks ended October 1, 2017 . The following is a summary of our restricted cash and investments: (in thousands) October 1, January 1, Cash collateral held by insurance carriers $ 29,122 $ 34,910 Cash and cash equivalents held in Trust 30,666 32,841 Investments held in Trust 163,270 146,517 Other (1) 21,115 16,925 Total restricted cash and investments $ 244,173 $ 231,193 (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: October 1, 2017 (in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Municipal debt securities $ 76,373 $ 1,561 $ (233 ) $ 77,701 Corporate debt securities 81,395 572 (166 ) 81,801 Agency mortgage-backed securities 4,502 36 (13 ) 4,525 U.S. government and agency securities 1,000 26 — 1,026 $ 163,270 $ 2,195 $ (412 ) $ 165,053 January 1, 2017 (in thousands) 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 The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows: October 1, 2017 (in thousands) Amortized Cost Fair Value Due in one year or less $ 16,796 $ 16,816 Due after one year through five years 83,156 83,764 Due after five years through ten years 63,318 64,473 $ 163,270 $ 165,053 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.

WORKERS' COMPENSATION INSURANCE

WORKERS' COMPENSATION INSURANCE AND RESERVES	9 Months Ended
	Oct. 01, 2017
Workers' Compensation Insurance and Reserves [Abstract]
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. 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% at October 1, 2017 and January 1, 2017 . Payments made against self-insured claims are made over a weighted average period of approximately 4.5 years at October 1, 2017 . The table below presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented ( in thousands ): (in thousands) October 1, January 1, Undiscounted workers’ compensation reserve $ 295,969 $ 292,169 Less discount on workers’ compensation reserve 16,634 14,818 Workers' compensation reserve, net of discount 279,335 277,351 Less current portion 76,406 79,126 Long-term portion $ 202,929 $ 198,225 Payments made against self-insured claims were $48.2 million and $55.6 million for the thirty-nine weeks ended October 1, 2017 and September 23, 2016 , 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 $50.7 million and $52.9 million as of October 1, 2017 and January 1, 2017 , respectively. The discounted receivables from insurance companies, net of valuation allowance, were $45.7 million and $48.9 million as of October 1, 2017 and January 1, 2017 , respectively, and are included in Other assets, net on the accompanying Consolidated Balance Sheets. Workers’ compensation expense of $22.1 million and $23.4 million was recorded in Cost of services for the thirteen weeks ended October 1, 2017 and September 23, 2016 , respectively. Workers’ compensation expense of $64.2 million and $72.1 million was recorded in Cost of services for the thirty-nine weeks ended October 1, 2017 and September 23, 2016 , respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Oct. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Workers’ compensation commitments We have provided our insurance carriers and certain states with commitments in the form and amounts listed below: (in thousands) October 1, January 1, Cash collateral held by workers’ compensation insurance carriers $ 28,343 $ 28,066 Cash and cash equivalents held in Trust 30,666 32,841 Investments held in Trust 163,270 146,517 Letters of credit (1) 7,748 7,982 Surety bonds (2) 19,524 20,440 Total collateral commitments $ 249,551 $ 235,846 (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. 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.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Oct. 01, 2017
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes we make a cumulative adjustment. Our quarterly tax provision and our quarterly estimate of our annual effective tax rate are subject to variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss by jurisdiction, tax credits, audit developments, changes in law, regulations and administrative practices, and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items, tax credits, and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. Except as required under U.S. tax law, we do not provide for U.S. taxes on undistributed earnings of our foreign subsidiaries since we consider those earnings to be permanently invested outside of the U.S. Our effective tax rate for the thirty-nine weeks ended October 1, 2017 was 27.6% . The difference between the statutory federal income tax rate of 35.0% and our effective income tax rate results primarily from the federal Work Opportunity Tax Credit. This tax credit is designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates. Other differences between the statutory federal income tax rate of 35.0% and our effective tax rate result from state and foreign income taxes, certain non-deductible expenses, tax exempt interest, and tax effects of share based compensation.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Oct. 01, 2017
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NET INCOME (LOSS) PER SHARE Diluted common shares were calculated as follows: Thirteen weeks ended Thirty-nine weeks ended (in thousands, except per share amounts) October 1, September 23, October 1, September 23, Net income (loss) $ 21,221 $ 23,429 $ 39,029 $ (33,338 ) Weighted average number of common shares used in basic net income (loss) per common share 41,046 41,762 41,420 41,651 Dilutive effect of non-vested restricted stock 230 294 251 — Weighted average number of common shares used in diluted net income (loss) per common share 41,276 42,056 41,671 41,651 Net income (loss) per common share: Basic $ 0.52 $ 0.56 $ 0.94 $ (0.80 ) Diluted $ 0.51 $ 0.56 $ 0.94 $ (0.80 ) Anti-dilutive shares 354 302 388 521

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	9 Months Ended
	Oct. 01, 2017
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in the balance of each component of accumulated other comprehensive loss during the reporting periods were as follows: Thirteen weeks ended October 1, 2017 September 23, 2016 (in thousands) Balance at beginning of period Current period other comprehensive income Balance at end of period Balance at beginning of period Current period other comprehensive income Balance at end of period Foreign currency translation adjustment $ (9,344 ) $ 1,143 $ (8,201 ) $ (11,420 ) $ 1,247 $ (10,173 ) Unrealized gain (loss) on investments (1) 897 424 1,321 (337 ) 784 447 Total other comprehensive income (loss), net of tax $ (8,447 ) $ 1,567 $ (6,880 ) $ (11,757 ) $ 2,031 $ (9,726 ) Thirty-nine weeks ended October 1, 2017 September 23, 2016 (in thousands) Balance at beginning of period Current period other comprehensive income Balance at end of period Balance at beginning of period Current period other comprehensive income Balance at end of period Foreign currency translation adjustment $ (11,684 ) $ 3,483 $ (8,201 ) $ (13,514 ) $ 3,341 $ (10,173 ) Unrealized gain (loss) on investments (1) 251 1,070 1,321 (499 ) 946 447 Total other comprehensive income (loss), net of tax $ (11,433 ) $ 4,553 $ (6,880 ) $ (14,013 ) $ 4,287 $ (9,726 ) (1) Consists of deferred compensation plan accounts, which are comprised of mutual funds classified as available-for-sale securities. The tax impact on unrealized gain (loss) on available-for-sale securities was de minimis for the thirteen and thirty-nine weeks ended October 1, 2017 and September 23, 2016 , respectively. There were no material reclassifications out of accumulated other comprehensive loss during the thirteen weeks ended October 1, 2017 or September 23, 2016 , nor during the thirty-nine weeks ended October 1, 2017 or September 23, 2016 .

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Oct. 01, 2017
Segment Reporting [Abstract]
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. Our service lines, which are our operating segments, and our 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 retail, manufacturing, warehousing, logistics, energy, construction, hospitality, and other industries. 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 | SMX : Exclusive recruitment and on-premise management of a facility’s contingent industrial workforce; • SIMOS Insourcing Solutions : On-premise management and recruitment of warehouse/distribution operations; • Centerline Drivers : Recruitment and management of temporary and dedicated drivers to the transportation and distribution industries; and • PlaneTechs : Recruitment and on-premise management of skilled mechanics and technicians 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 primary measures of segment performance: revenue from services and segment earnings before interest, taxes, depreciation and amortization (“Segment EBITDA”). Segment EBITDA includes net sales to third parties, related cost of sales, selling, general and administrative expenses, and goodwill and intangible impairment charges directly attributable to the reportable segment together with certain allocated corporate general and administrative expenses. Segment EBITDA excludes unallocated corporate general and administrative expenses. The following table presents a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended Thirty-nine weeks ended (in thousands) October 1, September 23, October 1, September 23, Revenue from services: PeopleReady $ 414,995 $ 435,783 $ 1,118,331 $ 1,198,067 PeopleManagement 196,835 216,834 581,408 682,605 PeopleScout 48,950 44,480 139,407 135,017 Total Company $ 660,780 $ 697,097 $ 1,839,146 $ 2,015,689 The following table presents a reconciliation of Segment EBITDA to income (loss) before tax expense: Thirteen weeks ended Thirty-nine weeks ended (in thousands) October 1, September 23, October 1, September 23, Segment EBITDA (1): PeopleReady $ 28,572 $ 34,100 $ 57,448 $ 75,198 PeopleManagement 6,940 3,520 18,759 (70,218 ) PeopleScout 10,277 8,358 29,071 12,527 45,789 45,978 105,278 17,507 Corporate unallocated (5,322 ) (6,537 ) (16,700 ) (23,310 ) Depreciation and amortization (11,189 ) (11,690 ) (34,650 ) (34,673 ) Income (loss) from operations 29,278 27,751 53,928 (40,476 ) Interest and other income (expense), net (219 ) (867 ) 10 (2,773 ) Income (loss) before tax expense $ 29,059 $ 26,884 $ 53,938 $ (43,249 ) (1) Segment EBITDA was previously referred to as segment income (loss) from operations. This change had no impact on the amounts reported. Asset information by reportable segment is not presented since we do not manage our segments on a balance sheet basis.

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Oct. 01, 2017
Accounting Policies [Abstract]
Basis of presentation	Financial statement preparation The accompanying unaudited consolidated financial statements (“financial statements”) of TrueBlue, Inc. (the “Company,” “TrueBlue,” “we,” “us,” and “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 1, 2017 . The results of operations for the thirty-nine weeks ended October 1, 2017 , are not necessarily indicative of the results expected for the full fiscal year or for any other fiscal period.
Goodwill and intangible assets	Goodwill and indefinite-lived intangible assets We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our second fiscal quarter, and more frequently if an event occurs or circumstances change that would indicate impairment may exist. These events or circumstances could include a significant change in the business climate,operating performance indicators, competition, customer engagement, legal factors, or sale or disposition of a significant portion of a reporting unit. We monitor the existence of potential impairment indicators throughout the fiscal year. Based on our annual goodwill impairment test performed as of the first day of our second fiscal quarter, all reporting units’ fair values were substantially in excess of their respective carrying values. We consider a reporting unit’s fair value to be substantially in excess of its carrying value at a 20% premium or greater. Accordingly, no impairment loss was recognized for the thirty-nine weeks ended October 1, 2017 . Based on our test performed in the prior year, we recorded a goodwill impairment charge of $65.9 million for the thirty-nine weeks ended September 23, 2016 . We performed our annual indefinite-lived intangible asset impairment test as of the first day of our second fiscal quarter and determined that the estimated fair values exceeded the carrying amounts for both of our indefinite-lived trade names. Accordingly, no impairment loss was recognized for the thirty-nine weeks ended October 1, 2017 . Based on our test performed in the prior year, we recorded an impairment charge of $4.5 million for the thirty-nine weeks ended September 23, 2016 .
Intangible assets, finite-lived	Acquired intangible assets and other long-lived assets We generally record acquired intangible assets that have finite useful lives, such as customer relationships and trade names/trademarks, 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. Based on our review there was no impairment loss recognized for the thirty-nine weeks ended October 1, 2017 . In the prior year, we recorded an impairment to our acquired trade names/trademarks intangible assets of $4.3 million during the thirteen weeks ended September 23, 2016 , and also recorded an impairment to our customer relationships intangible assets of $28.9 million during the first half of fiscal 2016.
Treasury stock policy [Policy Text Block]	Stock repurchases During the thirteen weeks ended October 1, 2017, we repurchased the remaining $13.9 million available under our $75.0 million share repurchase program. Under this program we repurchased and retired 4.8 million shares of our common stock at an average share price of $15.52 , which excludes commissions. On September 15, 2017, our Board of Directors authorized a $100 million share repurchase program of our outstanding common stock. The share repurchase program does not obligate us to acquire any particular amount of common stock and does not have an expiration date. There have been no repurchases under this new program during the thirteen weeks ended October 1, 2017 .
New accounting pronouncements and changes in accounting principles	Recently adopted accounting standards 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, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We early adopted this guidance for our fiscal 2017 annual impairment test. The adoption of the new standard did not have any impact to our consolidated financial statements. Recently issued accounting pronouncements not yet adopted In May 2017, the FASB issued guidance to provide clarity and reduce diversity in practice when accounting for a change to the terms or conditions of share-based payment awards. The objective is to reduce the scope of transactions that would require modification accounting. Disclosure requirements remain unchanged. 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 and do not expect the adoption to have a material impact on our 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 $8.6 million and $0.7 million for the thirty-nine weeks ended October 1, 2017 and September 23, 2016 , 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 asset 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 to have a material impact on our financial statements. In August 2016, the FASB issued guidance 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 should be applied using the retrospective transition method, if practicable. We plan to adopt this guidance on the effective date and do not expect the adoption to have a material impact on our 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 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 financial statements and expect that, upon adoption, a majority of our operating lease commitments will be recognized on our Consolidated Balance Sheets as operating lease liabilities and right-of-use assets. We do not expect the adoption to have a material impact on the pattern of expense recognition in our Consolidated Statements of Operations and Comprehensive Income. 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 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 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). We expect to adopt the guidance using the modified retrospective approach. We established a cross-functional implementation team consisting of representatives from our business segments and various departments. We utilized 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 making appropriate changes to our business processes, and controls to support recognition and disclosure under the new standard. We are substantially complete with our evaluation of the potential impact that adopting the new standard will have on our financial statements. Revenue from substantially all of our contracts with customers will continue to be recognized over time as services are rendered. We do not anticipate the adoption of this guidance will have a material impact on our financial reporting other than expanded disclosures. Other accounting standards that have been issued 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 financial statements upon adoption.
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.

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Oct. 01, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	Our assets and liabilities measured at fair value on a recurring basis consisted of the following: October 1, 2017 (in thousands) 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) $ 35,055 $ 35,055 $ — $ — Restricted cash and cash equivalents (1) 59,788 59,788 — — Other restricted assets (2) 21,115 21,115 — — Restricted investments classified as held-to-maturity 165,053 — 165,053 — January 1, 2017 (in thousands) 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 (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 Insourcing Solutions Corporation (“SIMOS”), which was estimated using a probability-adjusted discounted cash flow model.
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 thirty-nine weeks ended October 1, 2017 : (in thousands) Fair value measurement at beginning of period $ 21,600 Accretion on contingent consideration 900 Payment of contingent consideration (22,500 ) Fair value measurement at end of period $ —

RESTRICTED CASH AND INVESTMEN17

RESTRICTED CASH AND INVESTMENTS (Tables)	9 Months Ended
	Oct. 01, 2017
Restricted Cash and Investments [Abstract]
Schedule of restricted cash and investments	The following is a summary of our restricted cash and investments: (in thousands) October 1, January 1, Cash collateral held by insurance carriers $ 29,122 $ 34,910 Cash and cash equivalents held in Trust 30,666 32,841 Investments held in Trust 163,270 146,517 Other (1) 21,115 16,925 Total restricted cash and investments $ 244,173 $ 231,193 (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: October 1, 2017 (in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Municipal debt securities $ 76,373 $ 1,561 $ (233 ) $ 77,701 Corporate debt securities 81,395 572 (166 ) 81,801 Agency mortgage-backed securities 4,502 36 (13 ) 4,525 U.S. government and agency securities 1,000 26 — 1,026 $ 163,270 $ 2,195 $ (412 ) $ 165,053 January 1, 2017 (in thousands) 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
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: October 1, 2017 (in thousands) Amortized Cost Fair Value Due in one year or less $ 16,796 $ 16,816 Due after one year through five years 83,156 83,764 Due after five years through ten years 63,318 64,473 $ 163,270 $ 165,053

WORKERS' COMPENSATION INSURAN18

WORKERS' COMPENSATION INSURANCE AND RESERVES (Tables)	9 Months Ended
	Oct. 01, 2017
Workers' Compensation Insurance and Reserves [Abstract]
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 ( in thousands ): (in thousands) October 1, January 1, Undiscounted workers’ compensation reserve $ 295,969 $ 292,169 Less discount on workers’ compensation reserve 16,634 14,818 Workers' compensation reserve, net of discount 279,335 277,351 Less current portion 76,406 79,126 Long-term portion $ 202,929 $ 198,225

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Oct. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
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) October 1, January 1, Cash collateral held by workers’ compensation insurance carriers $ 28,343 $ 28,066 Cash and cash equivalents held in Trust 30,666 32,841 Investments held in Trust 163,270 146,517 Letters of credit (1) 7,748 7,982 Surety bonds (2) 19,524 20,440 Total collateral commitments $ 249,551 $ 235,846 (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.

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Oct. 01, 2017
Earnings Per Share [Abstract]
Schedule of adjusted net income and diluted common shares	Diluted common shares were calculated as follows: Thirteen weeks ended Thirty-nine weeks ended (in thousands, except per share amounts) October 1, September 23, October 1, September 23, Net income (loss) $ 21,221 $ 23,429 $ 39,029 $ (33,338 ) Weighted average number of common shares used in basic net income (loss) per common share 41,046 41,762 41,420 41,651 Dilutive effect of non-vested restricted stock 230 294 251 — Weighted average number of common shares used in diluted net income (loss) per common share 41,276 42,056 41,671 41,651 Net income (loss) per common share: Basic $ 0.52 $ 0.56 $ 0.94 $ (0.80 ) Diluted $ 0.51 $ 0.56 $ 0.94 $ (0.80 ) Anti-dilutive shares 354 302 388 521

ACCUMULATED OTHER COMPREHENSI21

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	9 Months Ended
	Oct. 01, 2017
Equity [Abstract]
Schedule of Comprehensive Loss	Changes in the balance of each component of accumulated other comprehensive loss during the reporting periods were as follows: Thirteen weeks ended October 1, 2017 September 23, 2016 (in thousands) Balance at beginning of period Current period other comprehensive income Balance at end of period Balance at beginning of period Current period other comprehensive income Balance at end of period Foreign currency translation adjustment $ (9,344 ) $ 1,143 $ (8,201 ) $ (11,420 ) $ 1,247 $ (10,173 ) Unrealized gain (loss) on investments (1) 897 424 1,321 (337 ) 784 447 Total other comprehensive income (loss), net of tax $ (8,447 ) $ 1,567 $ (6,880 ) $ (11,757 ) $ 2,031 $ (9,726 ) Thirty-nine weeks ended October 1, 2017 September 23, 2016 (in thousands) Balance at beginning of period Current period other comprehensive income Balance at end of period Balance at beginning of period Current period other comprehensive income Balance at end of period Foreign currency translation adjustment $ (11,684 ) $ 3,483 $ (8,201 ) $ (13,514 ) $ 3,341 $ (10,173 ) Unrealized gain (loss) on investments (1) 251 1,070 1,321 (499 ) 946 447 Total other comprehensive income (loss), net of tax $ (11,433 ) $ 4,553 $ (6,880 ) $ (14,013 ) $ 4,287 $ (9,726 ) (1) Consists of deferred compensation plan accounts, which are comprised of mutual funds classified as available-for-sale securities. The tax impact on unrealized gain (loss) on available-for-sale securities was de minimis for the thirteen and thirty-nine weeks ended October 1, 2017 and September 23, 2016 , respectively.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Oct. 01, 2017
Segment Reporting [Abstract]
Schedule of Segment Information	The following table presents a reconciliation of segment revenue from services to total company revenue: Thirteen weeks ended Thirty-nine weeks ended (in thousands) October 1, September 23, October 1, September 23, Revenue from services: PeopleReady $ 414,995 $ 435,783 $ 1,118,331 $ 1,198,067 PeopleManagement 196,835 216,834 581,408 682,605 PeopleScout 48,950 44,480 139,407 135,017 Total Company $ 660,780 $ 697,097 $ 1,839,146 $ 2,015,689 The following table presents a reconciliation of Segment EBITDA to income (loss) before tax expense: Thirteen weeks ended Thirty-nine weeks ended (in thousands) October 1, September 23, October 1, September 23, Segment EBITDA (1): PeopleReady $ 28,572 $ 34,100 $ 57,448 $ 75,198 PeopleManagement 6,940 3,520 18,759 (70,218 ) PeopleScout 10,277 8,358 29,071 12,527 45,789 45,978 105,278 17,507 Corporate unallocated (5,322 ) (6,537 ) (16,700 ) (23,310 ) Depreciation and amortization (11,189 ) (11,690 ) (34,650 ) (34,673 ) Income (loss) from operations 29,278 27,751 53,928 (40,476 ) Interest and other income (expense), net (219 ) (867 ) 10 (2,773 ) Income (loss) before tax expense $ 29,059 $ 26,884 $ 53,938 $ (43,249 ) (1) Segment EBITDA was previously referred to as segment income (loss) from operations. This change had no impact on the amounts reported.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Millions	3 Months Ended		6 Months Ended	9 Months Ended		74 Months Ended
	Oct. 01, 2017	Sep. 23, 2016	Jun. 24, 2016	Oct. 01, 2017	Sep. 23, 2016	Oct. 01, 2017	Sep. 15, 2017	Jul. 25, 2011
Goodwill, impairment loss		$ 65,900,000
Impairment of Intangible assets		4,500,000
Stock repurchase program, authorized amount								$ 75,000,000
Stock repurchased and retired during period (in dollars per share)						$ 15.52
Change in restricted cash and cash equivalents				$ 8,623,000	$ 732,000
Minimum
Percentage of fair value in excess of carrying amount	20.00%			20.00%		20.00%
Common Stock
Stock repurchased and retired during period	$ 13,900,000
Stock repurchase program, authorized amount							$ 100,000,000
Stock repurchased and retired during period (in shares)						4.8
Trade name/trademarks
Impairment of intangible assets, finite-lived		$ 4,300,000
Customer relationships
Impairment of intangible assets, finite-lived			$ 28,900,000

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands	Oct. 01, 2017	Jan. 01, 2017
Fair Value Measurement [Line Items]
Other restricted assets	$ 21,115	$ 16,925
Restricted investments classified as held-to-maturity	165,053	145,953
Contingent consideration	0	21,600
Total Fair Value
Fair Value Measurement [Line Items]
Cash and cash equivalents	35,055	34,970
Total Fair Value | Restricted Assets
Fair Value Measurement [Line Items]
Restricted cash and cash equivalents	59,788	67,751
Other restricted assets	21,115	16,925
Restricted investments classified as held-to-maturity	165,053	145,953
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurement [Line Items]
Cash and cash equivalents	35,055	34,970
Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted Assets
Fair Value Measurement [Line Items]
Restricted cash and cash equivalents	59,788	67,751
Other restricted assets	21,115	16,925
Restricted investments classified as held-to-maturity	0	0
Significant Other Observable Inputs (Level 2)
Fair Value Measurement [Line Items]
Cash and cash equivalents	0	0
Significant Other Observable Inputs (Level 2) | Restricted Assets
Fair Value Measurement [Line Items]
Restricted cash and cash equivalents	0	0
Other restricted assets	0	0
Restricted investments classified as held-to-maturity	165,053	145,953
Significant Unobservable Inputs (Level 3)
Fair Value Measurement [Line Items]
Cash and cash equivalents	0	0
Significant Unobservable Inputs (Level 3) | Restricted Assets
Fair Value Measurement [Line Items]
Restricted cash and cash equivalents	0	0
Other restricted assets	0	0
Restricted investments classified as held-to-maturity	$ 0	0
SIMOS Insourcing Solutions Corporation | Total Fair Value
Fair Value Measurement [Line Items]
Contingent consideration		21,600
SIMOS Insourcing Solutions Corporation | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurement [Line Items]
Contingent consideration		0
SIMOS Insourcing Solutions Corporation | Significant Other Observable Inputs (Level 2)
Fair Value Measurement [Line Items]
Contingent consideration		0
SIMOS Insourcing Solutions Corporation | Significant Unobservable Inputs (Level 3)
Fair Value Measurement [Line Items]
Contingent consideration		$ 21,600

FAIR VALUE MEASUREMENT Changes

FAIR VALUE MEASUREMENT Changes in Fair Value of Recurring Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details) - SIMOS Insourcing Solutions Corporation - Significant Unobservable Inputs (Level 3) - Contingent Consideration - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jul. 02, 2017	Oct. 01, 2017	Jan. 01, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Accretion on contingent consideration		$ 900
Payment of contingent consideration	$ (22,500)	(22,500)
Total Fair Value
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value measurement at beginning of period			$ 21,600
Fair value measurement at end of period		$ 0

FAIR VALUE MEASUREMENT - Narrat

FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jul. 02, 2017	Oct. 01, 2017	Sep. 23, 2016
Business Acquisition, Contingent Consideration [Line Items]
Payment of contingent consideration at acquisition date fair value		$ (18,300)	$ 0
Other liabilities		$ 1,086	$ 4,740
SIMOS Insourcing Solutions Corporation
Business Acquisition, Contingent Consideration [Line Items]
Payment of contingent consideration at acquisition date fair value	$ (18,300)
Other liabilities	$ 4,200

RESTRICTED CASH AND INVESTMEN27

RESTRICTED CASH AND INVESTMENTS (Details) - USD ($) $ in Thousands	Oct. 01, 2017	Jan. 01, 2017
Restricted Cash and Investments [Line Items]
Cash collateral held by insurance carriers	$ 29,122	$ 34,910
Cash and cash equivalents held in Trust	30,666	32,841
Investments held in Trust	163,270	146,517
Other	21,115	16,925
Restricted cash and investments	244,173	231,193
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
Gross Unrealized Gain	2,195	685
Gross Unrealized Loss	(412)	(1,249)
Fair Value	165,053	145,953
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
Fair Value	165,053	145,953
Municipal debt securities
Restricted Cash and Investments [Line Items]
Investments held in Trust	76,373	71,618
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
Gross Unrealized Gain	1,561	443
Gross Unrealized Loss	(233)	(865)
Fair Value	77,701	71,196
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
Fair Value	77,701	71,196
Corporate debt securities
Restricted Cash and Investments [Line Items]
Investments held in Trust	81,395	68,934
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
Gross Unrealized Gain	572	212
Gross Unrealized Loss	(166)	(352)
Fair Value	81,801	68,794
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
Fair Value	81,801	68,794
Agency mortgage-backed securities
Restricted Cash and Investments [Line Items]
Investments held in Trust	4,502	5,965
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
Gross Unrealized Gain	36	30
Gross Unrealized Loss	(13)	(32)
Fair Value	4,525	5,963
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
Fair Value	4,525	$ 5,963
U.S. government and agency securities
Restricted Cash and Investments [Line Items]
Investments held in Trust	1,000
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
Gross Unrealized Gain	26
Gross Unrealized Loss	0
Fair Value	1,026
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
Fair Value	1,026
Restricted Cash and Investments [Member]
Restricted Cash and Investments [Line Items]
Investments held in Trust	163,270
Held-to-maturity Securities, Reconciliation to Fair Value [Abstract]
Fair Value	165,053
Held-to-maturity Securities, Investment Maturities, Amortized Cost [Abstract]
Due in one year or less	16,796
Due after one year through five years	83,156
Due after five years through ten years	63,318
Held-to-maturity Securities, Investment Maturities, Fair Value [Abstract]
Due in one year or less	16,816
Due after one year through five years	83,764
Due after five years through ten years	64,473
Fair Value	$ 165,053

WORKERS' COMPENSATION INSURAN28

WORKERS' COMPENSATION INSURANCE AND RESERVES - Reconciliation of Workers' Compensation Claims Reserve (Details) - USD ($) $ in Thousands	Oct. 01, 2017	Jan. 01, 2017
Workers' Compensation Insurance and Reserves [Abstract]
Undiscounted workers’ compensation reserve	$ 295,969	$ 292,169
Less discount on workers’ compensation reserve	16,634	14,818
Workers' compensation reserve, net of discount	279,335	277,351
Less current portion	76,406	79,126
Long-term portion	$ 202,929	$ 198,225

WORKERS' COMPENSATION INSURAN29

WORKERS' COMPENSATION INSURANCE AND RESERVES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 01, 2017	Sep. 23, 2016	Oct. 01, 2017	Sep. 23, 2016	Jan. 01, 2017
Workers' Compensation Deductible Limit [Line Items]
Workers' compensation claim deductible limit			$ 2
Weighted average period - claim payments below deductible limit			4 years 6 months
Payments made against self-insured claims			$ 48.2	$ 55.6
Weighted average period - claim payments and receivables above deductible limit			15 years
Excess claims	$ 50.7		$ 50.7		$ 52.9
Workers' compensation claim receivables net of valuation allowance	45.7		45.7		$ 48.9
Workers' compensation expense	$ 22.1	$ 23.4	$ 64.2	$ 72.1
Below limit
Workers' Compensation Deductible Limit [Line Items]
Weighted average rate			1.60%		1.60%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Workers' Compensation Commitments (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2017	Jan. 01, 2017
Workers' Compensation Commitments [Line Items]
Cash collateral held by workers’ compensation insurance carriers	$ 28,343	$ 28,066
Cash and cash equivalents held in Trust	30,666	32,841
Investments held in Trust	163,270	146,517
Letters of credit	7,748	7,982
Surety bonds	19,524	20,440
Total collateral commitments	$ 249,551	$ 235,846
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

INCOME TAXES - Narrative (Deta

INCOME TAXES - Narrative (Details)	9 Months Ended
	Oct. 01, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	27.60%
Income tax expense (benefit) based on statutory rate	35.00%

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2017	Sep. 23, 2016	Oct. 01, 2017	Sep. 23, 2016
Earnings Per Share [Abstract]
Net income (loss)	$ 21,221	$ 23,429	$ 39,029	$ (33,338)
Weighted average number of common shares used in basic net income (loss) per common share	41,046	41,762	41,420	41,651
Dilutive effect of non-vested restricted stock	230	294	251	0
Weighted average number of common shares used in diluted net income (loss) per common share	41,276	42,056	41,671	41,651
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.52	$ 0.56	$ 0.94	$ (0.80)
Diluted (in dollars per share)	$ 0.51	$ 0.56	$ 0.94	$ (0.80)
Anti-dilutive shares	354	302	388	521

ACCUMULATED OTHER COMPREHENSI33

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2017	Sep. 23, 2016	Oct. 01, 2017	Sep. 23, 2016
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance at beginning of period	$ (8,447)	$ (11,757)	$ (11,433)	$ (14,013)
Total other comprehensive income, net of tax	1,567	2,031	4,553	4,287
Balance at end of period	(6,880)	(9,726)	(6,880)	(9,726)
Foreign currency translation adjustment
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance at beginning of period	(9,344)	(11,420)	(11,684)	(13,514)
Foreign currency translation adjustment, net of tax	1,143	1,247	3,483	3,341
Balance at end of period	(8,201)	(10,173)	(8,201)	(10,173)
Unrealized gain (loss) on marketable securities
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance at beginning of period	897	(337)	251	(499)
Unrealized gain (loss) on investments, net of tax	424	784	1,070	946
Balance at end of period	$ 1,321	$ 447	$ 1,321	$ 447

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2017	Sep. 23, 2016	Oct. 01, 2017	Sep. 23, 2016
Segment Reporting Information [Line Items]
Revenue	$ 660,780	$ 697,097	$ 1,839,146	$ 2,015,689
Segment EBITDA	45,789	45,978	105,278	17,507
Corporate unallocated	131,552	134,679	378,150	401,090
Depreciation and amortization	(11,189)	(11,690)	(34,650)	(34,673)
Income (loss) from operations	29,278	27,751	53,928	(40,476)
Interest and other income (expense), net	(219)	(867)	10	(2,773)
Income (loss) before tax expense	29,059	26,884	53,938	(43,249)
Corporate Segment
Segment Reporting Information [Line Items]
Corporate unallocated	(5,322)	(6,537)	(16,700)	(23,310)
PeopleReady
Segment Reporting Information [Line Items]
Revenue	414,995	435,783	1,118,331	1,198,067
Segment EBITDA	28,572	34,100	57,448	75,198
PeopleManagement
Segment Reporting Information [Line Items]
Revenue	196,835	216,834	581,408	682,605
Segment EBITDA	6,940	3,520	18,759	(70,218)
PeopleScout
Segment Reporting Information [Line Items]
Revenue	48,950	44,480	139,407	135,017
Segment EBITDA	$ 10,277	$ 8,358	$ 29,071	$ 12,527