XML 50 R33.htm IDEA: XBRL DOCUMENT v3.20.4
Segment Disclosures
 12 Months Ended
Jan. 03, 2021
Segment Reporting [Abstract]  
Segment Disclosures Segment Disclosures
Beginning in the third quarter of 2020, the Company adopted a new operating model reflecting the Company's focus on delivering specialty talent solutions. The Company’s new operating segments, which also represent its reporting segments, are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision-maker ("CODM", the Company’s CEO) to determine resource allocation and assess performance. The Company’s five reportable segments, (1) Professional & Industrial, (2) Science, Engineering & Technology, (3) Education, (4) Outsourcing & Consulting, and (5) International, reflect the specialty services the Company provides to customers and represent how the business is organized internally. Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services.

Professional & Industrial delivers staffing, outcome-based and direct-hire services focused on office, Professional, Light Industrial and Contact Center specialties in the U.S. and Canada, including our KellyConnect product. Science, Engineering & Technology delivers both staffing and outcome-based solutions in the specialty areas of science, technology, telecom and engineering primarily in the U.S. and Canada. Education primarily specializes in K-12 substitute teachers and support staff, as well as early childhood and higher education support, in the U.S. Outsourcing & Consulting is focused on providing RPO, MSP and PPO solutions in the Americas, Europe and Asia-Pacific regions. International provides talent to customers across all specialties primarily through staffing services within Europe as well as Brazil and Mexico in the Americas region. Our Brazil operations were sold in August 2020 (see Acquisitions and Disposition footnote).

Corporate expenses that directly support the operating units have been allocated to Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International 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 directly benefit a specific operating segment. Consistent with the information provided to and evaluated by the CODM, the goodwill impairment charge in the first quarter of 2020 is included in Corporate expenses.

The following tables present information about the reported revenue from services and gross profit of the Company by segment, along with a reconciliation to earnings (loss) before taxes and equity in net earnings (loss) of affiliate, for 2020, 2019 and 2018 based on the new operating model. Prior year reportable segment results were recast to align with the current presentation. 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.
 202020192018
 (In millions of dollars)
Revenue from Services: 
Professional & Industrial$1,858.4 $2,213.4 $2,430.9 
Science, Engineering & Technology1,019.1 1,131.8 1,002.6 
Education286.9 450.7 428.5 
Outsourcing & Consulting363.5 377.7 377.1 
International988.6 1,182.5 1,275.2 
Less: Intersegment revenue(0.5)(0.5)(0.4)
Consolidated Total$4,516.0 $5,355.6 $5,513.9 
 202020192018
 (In millions of dollars)
Earnings (Loss) from Operations: 
Professional & Industrial gross profit$330.2 $388.4 $419.3 
Professional & Industrial SG&A expenses(288.6)(326.0)(338.4)
Professional & Industrial earnings (loss) from operations41.6 62.4 80.9 
Science, Engineering & Technology gross profit209.4 226.2 185.6 
Science, Engineering & Technology SG&A expenses(134.4)(146.7)(124.7)
Science, Engineering & Technology earnings (loss) from operations75.0 79.5 60.9 
Education gross profit42.2 72.0 70.7 
Education SG&A expenses(51.2)(56.2)(47.8)
Education earnings (loss) from operations(9.0)15.8 22.9 
Outsourcing & Consulting gross profit119.8 122.3 124.2 
Outsourcing & Consulting SG&A expenses(108.3)(119.3)(131.2)
Outsourcing & Consulting earnings (loss) from operations11.5 3.0 (7.0)
International gross profit126.0 159.5 172.4 
International SG&A expenses(134.9)(140.8)(148.6)
International earnings (loss) from operations(8.9)18.7 23.8 
Corporate(203.8)(97.6)(94.1)
Consolidated Total(93.6)81.8 87.4 
Gain (loss) on investment in Persol Holdings(16.6)35.8 (96.2)
Other income (expense), net3.4 (1.2)(0.6)
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate$(106.8)$116.4 $(9.4)

A summary of revenue from services by geographic area for 2020, 2019 and 2018 follows:
 202020192018
 (In millions of dollars)
Revenue from Services:   
United States$3,260.2 $3,892.5 $3,930.0 
Foreign1,255.8 1,463.1 1,583.9 
Total$4,516.0 $5,355.6 $5,513.9 

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 2020 and 2019 follows:

 20202019
 (In millions of dollars)
Long-Lived Assets:  
United States$94.7 $73.1 
Foreign29.5 30.4 
Total$124.2 $103.5 

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.