Revenue

12 Months Ended

Dec. 29, 2019

Revenue from Contract with Customer [Abstract]

Adoption of ASC Topic 606, Revenue from Contracts with Customers

On January 1, 2018, we adopted 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 Disaggregated by Service Type

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 solutions can be branch-delivered (Americas and EMEA regions) or centrally delivered (within GTS). 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 table below presents our segment revenues disaggregated by service type (in millions).



	December Year to Date
	2019		2018
Branch-Delivered Staffing
Americas Staffing
Staffing Solutions
Commercial	$	1,502.3	$	1,679.6
Education	451.9		428.0
Professional/Technical	332.4		272.2
Permanent Placement	33.5		37.9
Total Americas Staffing	2,320.1		2,417.7

International Staffing
Staffing Solutions	1,001.1		1,087.7
Permanent Placement	24.8		28.9
Total International Staffing	1,025.9		1,116.6

Global Talent Solutions
Talent Fulfillment
Staffing Solutions	1,015.5		1,117.6
Permanent Placement	1.8		1.9
Talent Solutions	365.8		362.8
Total Talent Fulfillment	1,383.1		1,482.3

Outcome-Based Services	641.4		515.1
Total Global Talent Solutions	2,024.5		1,997.4

Total Intersegment	(14.9)		(17.8)

Total Revenue from Services	$	5,355.6	$	5,513.9

Revenue Disaggregated by Geography

Our operations are subject to different economic and regulatory environments depending on geographic location. Our GTS segment operates in Americas, EMEA and APAC regions. For 2019 and 2018, GTS made up $1,955.5 million and $1,929.3 million in total Americas, respectively, $42.1 million and $45.9 million in total EMEA, respectively, and the entire balance in APAC.

The below table presents our revenues disaggregated by geography (in millions):


	December Year to Date
	2019		2018
Americas
United States	$	3,892.5	$	3,930.0
Canada	136.1		142.4
Mexico	123.6		125.0
Puerto Rico	74.6		96.6
Brazil	34.1		35.2
Total Americas	4,260.9		4,329.2

EMEA
France	248.6		278.9
Switzerland	200.7		212.7
Portugal	179.8		196.9
Russia	117.6		100.4
United Kingdom	103.1		108.8
Italy	75.9		77.5
Germany	41.6		57.1
Ireland	33.1		44.6
Other	67.5		85.6
Total EMEA	1,067.9		1,162.5







Total APAC	26.8		22.2

Total Kelly Services, Inc.	$	5,355.6	$	5,513.9

Deferred Costs

Deferred sales commissions, which are included in other assets in the consolidated balance sheet, were $1.5 million as of year-end 2019 and $2.3 million as of 2018. Amortization expense for the deferred costs was $1.6 million for 2019 and $1.7 million for 2018. As of year-end 2019, there was no impairment loss in relation to the costs capitalized.

Deferred fulfillment costs, which are included in prepaid expenses and other current assets in the consolidated balance sheet, were $3.6 million as of year-end 2019 and $3.0 million as of 2018. Amortization expense for the deferred costs was $14.6 million for 2019 and $13.0 million for 2018. As of year-end 2019, there was no impairment loss in relation to the costs capitalized.