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Segment Disclosures | 12 Months Ended
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Dec. 29, 2024
Segment Reporting [Abstract] |
Segment Disclosures | 23. Segment Disclosures The Company’s operating segments, which also represent its reportable 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 four reportable segments in 2024, (1) Professional & Industrial (P&I), (2) Science, Engineering & Technology (SET), (3) Education (EDU), and (4) Outsourcing & Consulting (OCG), reflect the specialty services the Company provides to customers and represent how the business is organized internally. Prior to 2024, the Company also had an International operating segment. Beginning in the first quarter of 2024, the Company's organizational structure no longer includes the International segment following the sale of the EMEA staffing operations in January 2024. Our Mexico operations, which were previously in our International segment, are now included in the Professional & Industrial segment. Professional & Industrial segment information for the prior years has been recast to conform to the new structure. Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services. P&I delivers staffing, outcome-based and permanent placement services, providing administrative, accounting and finance, light industrial and contact center staffing and other workforce solutions in the U.S. and Canada, including our KellyConnect and Skilled Professional Solutions products. SET provides highly specialized skills to a variety of industries through staffing, outcome-based, talent solutions, and permanent placement services. SET is focused on science and clinical research, engineering, technology and telecommunications specialties predominantly in the U.S. and Canada and includes MRP, Softworld, NextGen and Global Technology Associates ("GTA") brands. EDU delivers high quality education and therapy services talent through staffing, permanent placement and executive search services to Pre-K-12 school districts and education organizations across the U.S. and includes Teachers On Call, Greenwood/Asher and PTS brands. OCG provides global talent supply chain and workforce solutions, including MSP, RPO, PPO and executive coaching programs to customers on a global basis and includes our RocketPower brand. The Company utilizes a shared services approach for certain enterprise functions including IT, human resources, legal and finance support in the US and Canada. Expenses incurred to 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. Certain expenses related to incentive compensation, law and risk management, certain finance and accounting functions, executive management and corporate campus facilities do not directly benefit a specific operating segment and are not included in the segment results. These costs, as well as costs related to acquisition integration and transformation activities and disposition transition expenses, are included in Corporate expenses in the following tables. In addition to the change in our segment structure in the first quarter of 2024, we reassessed the allocation of corporate expenses to the operating segments and allocated additional costs which are attributable to the business from corporate. In the first quarter of 2024, the Company changed the segment profitability measure from earnings from operations to a business unit profit measure that excludes depreciation and amortization. This change provides management with greater visibility into the financial performance of the segments and how they contribute to the Company's overall performance. The CODM leverages the business unit profit measure during the annual budgeting and forecasting processes, as well as to assess segment profitability, guide resource allocation, and evaluate the alignment of compensation plans with strategic goals. The following tables present information about the reported revenue from services of the Company by reportable segment, along with a reconciliation to earnings (loss) before taxes and equity in net earnings of affiliate, for 2024, 2023 and 2022. Asset information by reportable segment is not presented, since the Company does not produce such information internally nor does it use such information to manage its business. Prior periods have been recast to reflect the current period allocation method and new segment profitability measurement. The update had no impact on the consolidated financial information.
Fiscal Year Ended December 29, 2024
(In millions of dollars) | P&I |  | SET |  | EDU |  | OCG |  |  |  | Inter-Segment |  | Consolidated
Revenue from services | $ | 1,470.7 |  |  | $ | 1,422.8 |  |  | $ | 972.3 |  |  | $ | 468.3 |  |  |  |  | $ | (2.3) |  |  | $ | 4,331.8 |
Cost of services(1) | 1,209.4 |  |  | 1,087.2 |  |  | 832.5 |  |  | 322.4 |  |  |  |  | (2.3) |  |  | 3,449.2 |
Direct salaries(2) | 141.2 |  | 170.5 |  |  | 60.5 |  |  | 104.3 |  |  |  |  |  |  |
Other segment expenses(3) | 85.4 |  |  | 75.3 |  |  | 35.4 |  |  | 35.9 |  |  |  |  |  |  |
SG&A expenses | 226.6 |  |  | 245.8 |  |  | 95.9 |  |  | 140.2 |  |  |  |  | — |  |  | 708.5 |
Goodwill impairment charge | — |  |  | 72.8 |  |  | — |  |  | — |  |  |  |  | — |  |  | 72.8 |
Business unit profit (loss) | $ | 34.7 |  |  | $ | 17.0 |  |  | $ | 43.9 |  |  | $ | 5.7 |  |  |  |  | $ | — |  |  | $ | 101.3 |
Corporate SG&A |  |  |  |  |  |  |  |  |  |  |  |  | (58.4) |
Asset impairment charge |  |  |  |  |  |  |  |  |  |  |  |  | (13.5) |
Gain on sale of assets |  |  |  |  |  |  |  |  |  |  |  |  | 5.4 |
Gain on sale of EMEA staffing operations |  |  |  |  |  |  |  |  |  |  |  |  | 1.6 |
Depreciation and amortization(4) |  |  |  |  |  |  |  |  |  |  |  |  | (51.5) |
Consolidated earnings from operations |  |  |  |  |  |  |  |  |  |  |  | (15.1) |
Other income (expense), net |  |  |  |  |  |  |  |  |  |  |  |  | (6.8) |
Earnings before taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | (21.9) |
(1) Cost of services are those costs directly associated with the earning of revenue. The primary examples of these types of costs are temporary employee wages, along with other employee related costs, including associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay and health insurance, and workers’ compensation costs. These costs differ fundamentally from SG&A expenses in that they arise specifically from the action of providing our services to customers whereas SG&A costs are incurred regardless of whether or not we place temporary employees with our customers. (2) Direct salaries refers to the compensation expenses for employees directly related to the Company’s operations and service delivery. These expenses include salaries, related payroll taxes, various benefits and performance-based incentives and bonuses for these employees. (3) For each reportable segment, the other segment expense category includes: •P&I - Shared services costs for IT, human resources, legal and finance support, facilities and equipment-related costs, other professional services and overhead expenses, and operational software licenses. •SET - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs, and operational software licenses. •EDU - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs, and operational software licenses. •OCG - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, operational software licenses, and facilities and equipment-related costs. (4) Represents total company depreciation and amortization of intangibles, including the amortization of hosted software.
Fiscal Year Ended December 31, 2023
(In millions of dollars) | P&I |  | SET |  | EDU |  | OCG |  | International |  | Inter-Segment |  | Consolidated
Revenue from services | $ | 1,539.5 |  |  | $ | 1,190.8 |  |  | $ | 841.9 |  |  | $ | 454.7 |  |  | $ | 812.1 |  |  | $ | (3.3) |  |  | $ | 4,835.7 |
Cost of services(1) | 1,262.4 |  |  | 918.8 |  |  | 713.2 |  |  | 291.2 |  |  | 692.0 |  |  | (3.3) |  |  | 3,874.3 |
Direct salaries(2) | 163.5 |  | 127.1 |  |  | 59.6 |  |  | 116.6 |  |  | 83.6 |  |  |  |  |
Other segment expenses(3) | 97.3 |  | 69.8 |  |  | 32.8 |  |  | 42.7 |  |  | 38.4 |  |  |  |  |
SG&A expenses | 260.8 |  | 196.9 |  | 92.4 |  | 159.3 |  | 122.0 |  | — |  |  | 831.4 |
Asset impairment charge | 0.3 |  | 0.1 |  |  | — |  |  | 2.0 |  |  | — |  |  | — |  |  | 2.4 |
Business unit profit (loss) | $ | 16.0 |  |  | $ | 75.0 |  |  | $ | 36.3 |  |  | $ | 2.2 |  |  | $ | (1.9) |  |  | $ | — |  |  | $ | 127.6 |
Corporate SG&A |  |  |  |  |  |  |  |  |  |  |  |  | (63.2) |
Depreciation and amortization(4) |  |  |  |  |  |  |  |  |  |  |  |  | (40.1) |
Consolidated earnings from operations |  |  |  |  |  |  |  |  |  |  |  | 24.3 |
Other income (expense), net |  |  |  |  |  |  |  |  |  |  |  |  | 0.6 |
Earnings before taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 24.9 |
(1) Cost of services are those costs directly associated with the earning of revenue. The primary examples of these types of costs are temporary employee wages, along with other employee related costs, including associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay and health insurance, and workers’ compensation costs. These costs differ fundamentally from SG&A expenses in that they arise specifically from the action of providing our services to customers whereas SG&A costs are incurred regardless of whether or not we place temporary employees with our customers. (2) Direct salaries refers to the compensation expenses for employees directly related to the Company’s operations and service delivery. These expenses include salaries, related payroll taxes, various benefits and performance-based incentives and bonuses for these employees. In the International segment, this includes costs related to IT, human resources, legal and finance costs incurred in the foreign subsidiaries. (3) For each reportable segment, the other segment expense category includes: •P&I - Shared services costs for IT, human resources, legal and finance support, facilities and equipment-related costs, other professional services and overhead expenses, and operational software licenses. •SET - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs, and operational software licenses. •EDU - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs, and operational software licenses. •OCG - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, operational software licenses, and facilities and equipment-related costs. •International - Facilities and equipment-related costs, other professional services and overhead expenses, shared services costs for IT, human resources, legal and finance support, and operational software licenses. (4) Represents total company depreciation and amortization of intangibles, including the amortization of hosted software.
Fiscal Year Ended January 1, 2023
(In millions of dollars) | P&I |  | SET |  | EDU |  | OCG |  | International |  | Inter-Segment |  | Consolidated
Revenue from services | $ | 1,709.9 |  |  | $ | 1,265.4 |  |  | $ | 636.2 |  |  | $ | 468.0 |  |  | $ | 887.0 |  |  | $ | (1.1) |  |  | $ | 4,965.4 |
Cost of services(1) | 1,396.8 |  |  | 968.4 |  |  | 535.9 |  |  | 298.4 |  |  | 755.2 |  |  | (1.1) |  |  | 3,953.6 |
Direct salaries(2) | 185.1 |  | 141.7 |  |  | 50.8 |  |  | 114.8 |  |  | 85.1 |  |  |  |  |
Other segment expenses(3) | 108.4 |  | 76.3 |  |  | 30.7 |  |  | 39.8 |  |  | 41.4 |  |  |  |  |
SG&A expenses | 293.5 |  | 218.0 |  | 81.5 |  | 154.6 |  | 126.5 |  | — |  |  | 874.1 |
Goodwill impairment charge | — |  |  | — |  |  | — |  |  | 41.0 |  |  | — |  |  | — |  |  | 41.0 |
Business unit profit (loss) | $ | 19.6 |  |  | $ | 79.0 |  |  | $ | 18.8 |  |  | $ | (26.0) |  |  | $ | 5.3 |  |  | $ | — |  |  | $ | 96.7 |
Corporate SG&A |  |  |  |  |  |  |  |  |  |  |  |  | (32.3) |
Loss on disposal |  |  |  |  |  |  |  |  |  |  |  |  | (18.7) |
Gain on sale of assets |  |  |  |  |  |  |  |  |  |  |  |  | 6.2 |
Depreciation and amortization(4) |  |  |  |  |  |  |  |  |  |  |  |  | (37.1) |
Consolidated earnings from operations |  |  |  |  |  |  |  |  |  |  |  | 14.8 |
Loss on investment in Persol Holdings |  |  |  |  |  |  |  |  |  | (67.2) |
Loss on currency translation from liquidation of subsidiary |  |  |  |  |  |  |  |  |  |  |  |  | (20.4) |
Other income (expense), net |  |  |  |  |  |  |  |  |  |  |  |  | 1.6 |
Loss before taxes and equity in net earnings of affiliate |  |  |  |  |  |  |  | $ | (71.2) |
(1) Cost of services are those costs directly associated with the earning of revenue. The primary examples of these types of costs are temporary employee wages, along with other employee related costs, including associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay and health insurance, and workers’ compensation costs. These costs differ fundamentally from SG&A expenses in that they arise specifically from the action of providing our services to customers whereas SG&A costs are incurred regardless of whether or not we place temporary employees with our customers. (2) Direct salaries refers to the compensation expenses for employees directly related to the Company’s operations and service delivery. These expenses include salaries, related payroll taxes, various benefits and performance-based incentives and bonuses for these employees. In the International segment, this includes costs related to IT, human resources, legal and finance costs incurred in the foreign subsidiaries. (3) For each reportable segment, the other segment expense category includes: •P&I - Shared services costs for IT, human resources, legal and finance support, facilities and equipment-related costs, other professional services and overhead expenses, and operational software licenses. •SET - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, and facilities and equipment-related costs. •EDU - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, and facilities and equipment-related costs. •OCG - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs, and operational software licenses. •International - Facilities and equipment-related costs, other professional services and overhead expenses, shared services costs for IT, human resources, legal and finance support, and operational software licenses. (4) Represents total company depreciation and amortization of intangibles, including the amortization of hosted software. Depreciation and amortization expense is included in SG&A expenses in our consolidated statements of earnings. Depreciation and amortization expense amounts below include amortization of hosted software, which are excluded in the presentation of depreciation and amortization in our consolidated statements of cash flows. The depreciation and amortization amounts by segment are as follows:
| 2024 |  | 2023 |  | 2022
| (In millions of dollars)
Depreciation and amortization: |  |  |  |  |
Professional & Industrial | $ | 9.5 |  |  | $ | 8.0 |  |  | $ | 7.7 |
Science, Engineering & Technology | 26.1 |  |  | 16.1 |  |  | 15.4 |
Education | 8.3 |  |  | 7.7 |  |  | 6.2 |
Outsourcing & Consulting | 7.6 |  |  | 5.9 |  |  | 4.8 |
International | — |  |  | 2.4 |  |  | 2.7 |
A summary of revenue from services by geographic area for 2024, 2023 and 2022 follows:
| 2024 |  | 2023 |  | 2022
| (In millions of dollars)
Revenue from Services: |  |  |  |  |
United States | $ | 3,876.9 |  |  | $ | 3,555.8 |  |  | $ | 3,671.5 |
Foreign | 454.9 |  |  | 1,279.9 |  |  | 1,293.9 |
Total | $ | 4,331.8 |  |  | $ | 4,835.7 |  |  | $ | 4,965.4 |
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 2024 and 2023 follows:
| 2024 |  | 2023
| (In millions of dollars)
Long-Lived Assets: |  |  |
United States | $ | 70.1 |  |  | $ | 68.4 |
Foreign | 2.8 |  |  | 21.6 |
Total | $ | 72.9 |  |  | $ | 90.0 |
Long-lived assets represent property and equipment and ROU assets. In 2023 the amount includes $18.4 million of held for sale assets. No single foreign country’s long-lived assets represented more than 10% of the consolidated long-lived assets of the Company.

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