Segment Disclosures

12 Months Ended

Dec. 29, 2019

The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the CODM (the Company’s CEO) to determine resource allocation and assess performance. The Company’s three reportable segments, (1) Americas Staffing, (2) GTS and (3) International Staffing, reflect how the Company delivers services to customers and how its business is organized internally. Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services.

Americas Staffing represents the Company’s branch-delivered staffing business in the U.S., Canada, Puerto Rico, Mexico and Brazil. International Staffing represents the EMEA region branch-delivered staffing business. Americas Staffing and International Staffing both deliver temporary staffing, as well as direct-hire placement services, in office/clerical, light industrial and professional and technical specialties within their geographic regions. Americas Staffing also includes educational staffing in the U.S.

GTS combines the delivery structure of the Company’s outsourcing and consulting group and centrally delivered staffing business. It reflects the trend of customers towards the adoption of holistic talent supply chain solutions which combine contingent labor, full-time hiring and outsourced services. GTS includes centrally delivered staffing, RPO, CWO, BPO, PPO, KellyConnect, career transition/outplacement services and talent advisory services.

Corporate expenses that directly support the operating units have been allocated to Americas Staffing, GTS and International Staffing based on work effort, volume or, in the absence of a readily available measurement process, proportionately based on gross profit realized. Unallocated corporate expenses include those related to incentive compensation, law and risk management, certain finance and accounting functions, executive management, corporate campus facilities, IT production support, certain legal costs and expenses related to corporate initiatives that do not benefit a specific operating segment.

The following tables present information about the reported revenue from services and gross profit of the Company by segment, along with a reconciliation to consolidated earnings (loss) before taxes and equity in net earnings (loss) of affiliate, for 2019, 2018 and 2017. Asset information by reportable segment is not presented, since the Company does not produce such information internally nor does it use such data to manage its business.


	2019		2018		2017
	(In millions of dollars)
Revenue from Services:
Americas Staffing	$	2,320.1	$	2,417.7	$	2,345.9
Global Talent Solutions	2,024.5		1,997.4		1,998.9
International Staffing	1,025.9		1,116.6		1,048.2

Less: Intersegment revenue	(14.9)		(17.8)		(18.6)

Consolidated Total	$	5,355.6	$	5,513.9	$	5,374.4


	2019		2018		2017
	(In millions of dollars)
Earnings from Operations:
Americas Staffing gross profit	$	429.5	$	441.3	$	429.1
Americas Staffing SG&A expenses	(372.7)		(364.2)		(346.4)
Americas Staffing Earnings from Operations	56.8		77.1		82.7

Global Talent Solutions gross profit	400.5		381.1		373.7
Global Talent Solutions SG&A expenses	(293.1)		(296.5)		(296.7)
Global Talent Solutions Earnings from Operations	107.4		84.6		77.0

International Staffing gross profit	140.5		152.3		153.7
International Staffing SG&A expenses	(125.3)		(132.3)		(131.6)
International Staffing Earnings from Operations	15.2		20.0		22.1

Less: Intersegment gross profit	(2.1)		(2.5)		(2.4)
Less: Intersegment SG&A expenses	2.1		2.5		2.4
Net Intersegment Activity	—		—		—

Corporate	(97.6)		(94.3)		(98.5)
Consolidated Total	81.8		87.4		83.3
Gain (loss) on investment in Persol Holdings	35.8		(96.2)		—

Other expense, net	(1.2)		(0.6)		(1.6)

Earnings (loss) before taxes and equity in net earnings (loss) of affiliate	$	116.4	$	(9.4)	$	81.7

A summary of revenue from services by geographic area for 2019, 2018 and 2017 follows:


	2019		2018		2017
	(In millions of dollars)
Revenue from Services:
United States	$	3,892.5	$	3,930.0	$	3,894.6
International	1,463.1		1,583.9		1,479.8

Total	$	5,355.6	$	5,513.9	$	5,374.4

Foreign revenue is based on the country in which the legal subsidiary is domiciled. No single foreign country’s revenue represented more than 10% of the consolidated revenues of the Company. No single customer represented more than 10% of the consolidated revenues of the Company.

A summary of long-lived assets information by geographic area as of year-end 2019 and 2018 follows:


	2019		2018
	(In millions of dollars)
Long-Lived Assets:
United States	$	73.1	$	76.8
International	30.4		9.5

Total	$	103.5	$	86.3

Long-lived assets represent property and equipment. No single foreign country’s long-lived assets represented more than 10% of the consolidated long-lived assets of the Company.