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Revenue | 9 Months Ended
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Sep. 29, 2019
Revenue from Contract with Customer [Abstract] |
Revenue | Revenue Adoption of ASC Topic 606, Revenue from Contracts with Customers On January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. We recorded a net increase to opening earnings invested in the business of $3.4 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606. The impact is primarily driven by the deferral of contract costs related to our customer contracts of $5.2 million, partially offset by deferring revenue billed at a point in time for services performed over time of $0.6 million and a deferred tax liability of $1.2 million. As of and for year to date 2018, the consolidated financial statements were not materially impacted as a result of the application of Topic 606 compared to Topic 605. Revenue Recognition Revenues are recognized when control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Our revenues are recorded net of any sales, value added, or similar taxes collected from our customers. We generate revenue from: the hourly sales of services by our temporary employees to customers (“staffing solutions” revenue), the recruiting of permanent employees for our customers (“permanent placement” revenue), and through our talent fulfillment and outcome-based activities (“talent solutions” and “outcome-based services” revenue). Staffing Solutions Revenue Staffing solutions can be branch-delivered (Americas and EMEA regions) or centrally delivered (within Global Talent Solutions “GTS”). Our Americas Staffing segment is organized to deliver services in a number of specialty staffing solutions, which are summarized as: commercial, specialized professional/technical “PT” and educational staffing. Permanent Placement Revenue Permanent placement solutions can be branch-delivered (Americas and EMEA regions) or centrally delivered (within GTS). Our permanent placement revenue is recorded when the permanent placement candidate begins full-time employment. On the candidate start date, the customer accepts the candidate and can direct the use of the candidate as well as obtains the significant risk and rewards of the candidate. As such, we consider this the point the control transfers to the customer. Talent Solutions and Outcome-Based Services Revenue In addition to centrally delivered staffing services, our GTS segment also includes talent solutions (contingent workforce outsourcing “CWO”, payroll process outsourcing “PPO” and recruitment process outsourcing “RPO”) and outcome-based services (business process outsourcing “BPO”, KellyConnect, career transition/outplacement services and talent advisory services). The following table presents our segment revenues disaggregated by service type (in millions):
|  | Third Quarter |  | September Year to Date
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Branch-Delivered Staffing |  |  |  |  |  |  |  |
Americas Staffing |  |  |  |  |  |  |  |
Staffing Solutions |  |  |  |  |  |  |  |
Commercial |  | $ | 366.8 |  |  | $ | 424.3 |  |  | $ | 1,143.4 |  |  | $ | 1,237.2 |
Educational Staffing |  | 57.5 |  |  | 57.7 |  |  | 314.5 |  |  | 297.8 |
Professional/Technical |  | 83.2 |  |  | 68.8 |  |  | 256.0 |  |  | 206.3 |
Permanent Placement |  | 8.5 |  |  | 11.0 |  |  | 26.2 |  |  | 28.8 |
Total Americas Staffing |  | 516.0 |  |  | 561.8 |  |  | 1,740.1 |  |  | 1,770.1 |
International Staffing |  |  |  |  |  |  |  |
Staffing Solutions |  | 246.8 |  |  | 270.4 |  |  | 760.7 |  |  | 826.4 |
Permanent Placement |  | 6.1 |  |  | 6.8 |  |  | 19.2 |  |  | 22.1 |
Total International Staffing |  | 252.9 |  |  | 277.2 |  |  | 779.9 |  |  | 848.5 |
Global Talent Solutions |  |  |  |  |  |  |  |
Talent Fulfillment |  |  |  |  |  |  |  |
Staffing Solutions |  | 251.2 |  |  | 279.0 |  |  | 765.0 |  |  | 851.5 |
Permanent Placement |  | 0.5 |  |  | 0.6 |  |  | 1.3 |  |  | 1.4 |
Talent Solutions |  | 91.2 |  |  | 94.0 |  |  | 274.2 |  |  | 267.9 |
Total Talent Fulfillment |  | 342.9 |  |  | 373.6 |  |  | 1,040.5 |  |  | 1,120.8 |
Outcome-Based Services |  | 159.6 |  |  | 134.0 |  |  | 468.9 |  |  | 373.3 |
Total Global Talent Solutions |  | 502.5 |  |  | 507.6 |  |  | 1,509.4 |  |  | 1,494.1 |
Total Intersegment |  | (3.7 | ) |  | (4.2 | ) |  | (11.6 | ) |  | (13.5 | )
Total Revenue from Services |  | $ | 1,267.7 |  |  | $ | 1,342.4 |  |  | $ | 4,017.8 |  |  | $ | 4,099.2 |
Our operations are subject to different economic and regulatory environments depending on geographic location. Our GTS segment operates in the Americas, EMEA and APAC regions. In the third quarter of 2019 and 2018, GTS made up $485.0 million and $490.4 million in total Americas, respectively, $10.0 million and $11.0 million in total EMEA, respectively, and the entire balance in APAC. For September year to date in 2019 and 2018, GTS made up $1,457.8 million and $1,442.9 million in total Americas, respectively, $32.0 million and $34.3 million in total EMEA, respectively, and the entire balance in APAC. The below table presents our revenues disaggregated by geography (in millions):
|  | Third Quarter |  | September Year to Date
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Americas |  |  |  |  |  |  |  |
United States |  | $ | 903.2 |  |  | $ | 942.5 |  |  | $ | 2,913.4 |  |  | $ | 2,898.4 |
Canada |  | 34.6 |  |  | 37.0 |  |  | 100.8 |  |  | 107.6 |
Mexico |  | 32.4 |  |  | 32.3 |  |  | 89.6 |  |  | 92.7 |
Puerto Rico |  | 18.8 |  |  | 28.2 |  |  | 57.6 |  |  | 74.2 |
Brazil |  | 8.4 |  |  | 8.1 |  |  | 25.1 |  |  | 26.6 |
Total Americas |  | 997.4 |  |  | 1,048.1 |  |  | 3,186.5 |  |  | 3,199.5 |
EMEA |  |  |  |  |  |  |  |
France |  | 59.7 |  |  | 68.8 |  |  | 188.6 |  |  | 212.7 |
Switzerland |  | 50.6 |  |  | 53.8 |  |  | 150.0 |  |  | 156.3 |
Portugal |  | 44.0 |  |  | 48.2 |  |  | 135.5 |  |  | 150.5 |
Russia |  | 29.9 |  |  | 24.0 |  |  | 84.1 |  |  | 75.7 |
United Kingdom |  | 24.9 |  |  | 28.1 |  |  | 81.6 |  |  | 85.6 |
Italy |  | 18.5 |  |  | 18.3 |  |  | 59.8 |  |  | 58.1 |
Germany |  | 11.5 |  |  | 13.8 |  |  | 32.5 |  |  | 45.0 |
Ireland |  | 7.1 |  |  | 11.3 |  |  | 28.1 |  |  | 34.3 |
Other |  | 16.6 |  |  | 21.8 |  |  | 51.5 |  |  | 64.6 |
Total EMEA |  | 262.8 |  |  | 288.1 |  |  | 811.7 |  |  | 882.8 |
Total APAC |  | 7.5 |  |  | 6.2 |  |  | 19.6 |  |  | 16.9 |
Total Kelly Services, Inc. |  | $ | 1,267.7 |  |  | $ | 1,342.4 |  |  | $ | 4,017.8 |  |  | $ | 4,099.2 |
Deferred Costs Deferred sales commissions are paid at initial contract inception and upon contract renewal by our sales team. Deferred sales commissions, which are included in other assets in the consolidated balance sheet, were $1.6 million as of third quarter-end 2019 and $2.3 million as of year-end 2018. Amortization expense for the deferred costs for the third quarter and September year to date 2019 was $0.4 million and $1.3 million, respectively. Amortization expense for the deferred costs for the third quarter and September year to date 2018 was $0.4 million and $1.2 million, respectively. Deferred fulfillment costs are incurred after obtaining a contract in order to generate a resource that will be used to provide our services. Deferred fulfillment costs, which are included in prepaid expenses and other current assets in the consolidated balance sheet, were $3.6 million as of third quarter-end 2019 and $3.0 million as of year-end 2018. Amortization expense for the deferred costs for the third quarter and September year to date 2019 was $3.8 million and $10.3 million, respectively. Amortization expense for the deferred costs for the third quarter and September year to date 2018 was $4.1 million and $8.7 million, respectively.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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