10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934 For the fiscal year ended December 28, 2014

OR

[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from _________  to  __________ 

Commission file number 0-1088 

KELLY SERVICES, INC.

(Exact Name of Registrant as specified in its Charter)

Delaware	38-1510762
(State or other jurisdiction of	(IRS Employer Identification Number)
incorporation or organization)

999 West Big Beaver Road, Troy, Michigan	48084
(Address of Principal Executive Office)	(Zip Code)

(248) 362-4444

(Registrant's Telephone Number, Including Area Code)

Securities Registered Pursuant to Section 12(b) of the Act:
	Title of each class	Name of each exchange on which registered
	Class A Common	NASDAQ Global Market
	Class B Common	NASDAQ Global Market

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ]     No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ]     No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X]   No[ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. 

Large accelerated filer [ ]	Accelerated filer [X]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)	Smaller reporting company [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [ ] No [X]

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter, was approximately $521,767,042.

Registrant had 34,274,299 shares of Class A and 3,451,261 of Class B common stock, par value $1.00, outstanding as of February 1, 2015. 

Documents Incorporated by Reference

The proxy statement of the registrant with respect to its 2015 Annual Meeting of Stockholders is incorporated by reference in Part III.

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PART I

Unless the context otherwise requires, throughout this Annual Report on Form 10-K the words “Kelly,” “Kelly Services,” “the Company,” “we,” “us” and “our” refer to Kelly Services, Inc. and its consolidated subsidiaries.

ITEM 1. BUSINESS.

History and Development of Business

Founded by William R. Kelly in 1946, Kelly Services^® has developed innovative workforce solutions for customers in a variety of industries throughout our 68-year history. Our range of solutions has grown steadily over the years to match the changing needs of our customers.

We have evolved from a United States-based company concentrating primarily on traditional office staffing into a global workforce solutions leader offering a full breadth of specialty services. While ranking as one of the world’s largest scientific staffing providers, we also place professional and technical employees at all levels in engineering, IT, law and healthcare. These specialty services complement our expertise in office services, education, contact center, light industrial and electronic assembly staffing. As the human capital arena has become more complex, we have also developed a supply chain management approach to help many of the world’s largest companies plan for and manage their supply of talent. Innovative solutions supporting this approach span outsourcing, consulting, recruitment, career transition and vendor management services.

Geographic Breadth of Services

Headquartered in Troy, Michigan, we provide employment for approximately 555,000 employees annually to a variety of customers around the globe—including 97 of the Fortune 100™ companies.

Kelly provides workforce solutions to a diversified group of customers in three regions: the Americas,Europe, the Middle East, and Africa (“EMEA”), and Asia Pacific(“APAC”).

Description of Business Segments

Our operations are divided into seven principal business segments: Americas Commercial, Americas Professional and Technical (“Americas PT”), EMEA Commercial, EMEA Professional and Technical (“EMEA PT”), APAC Commercial, APAC Professional and Technical (“APAC PT”) and Outsourcing and Consulting Group (“OCG”).

Americas Commercial

Our Americas Commercial segment specialties include: Office, providing trained employees for data entry, clerical and administrative support roles across numerous industries; Contact Center, providing staff for contact centers, technical support hotlines and telemarketing units; Education, supplying schools nationwide with instructional and non-instructional employees; Marketing, providing support staff for seminars, sales and trade shows; Electronic Assembly, providing assemblers, quality control inspectors and technicians; and Light Industrial, placing maintenance workers, material handlers and assemblers. We also offer a temporary-to-hire service that provides customers and temporary staff the opportunity to evaluate their relationship before making a full-time employment decision, a direct-hire placement service and vendor on-site management.

Americas PT

Our Americas PT segment includes a number of specialty staffing services: Science, providing all levels of scientists and scientific and clinical research workforce solutions; Engineering, supplying engineering professionals across all disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality and telecommunications; Information Technology, placing IT specialists across all disciplines; Creative Services, placing creative talent in the spectrum of creative services positions; Finance and Accounting, serving the needs of corporate finance departments, accounting firms and financial institutions with all levels of financial professionals; Healthcare, providing all levels of healthcare specialists and professionals; and Law, placing legal professionals including attorneys, paralegals, contract administrators, compliance specialists and legal administrators. Our temporary-to-hire service, direct-hire placement service and vendor on-site management are also offered in this segment.

EMEA Commercial

Our EMEA Commercial segment provides a similar range of staffing services as described for our Americas Commercial segment above, including: Office, Contact Center and our temporary-to-hire service. Additional service areas include: Catering and Hospitality, providing chefs, porters and hospitality representatives; and Industrial, supplying manual workers to semi-skilled professionals in a variety of trade, non-trade and operational positions.

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EMEA PT

Our EMEA PT segment provides many of the same services as described for our Americas PT segment, including: Engineering, Finance and Accounting, Healthcare, IT and Science.

APAC Commercial

Our APAC Commercial segment offers a similar range of commercial staffing services as described for our Americas and EMEA Commercial segments above, through staffing solutions that include permanent placement, temporary staffing and temporary to full-time staffing.

APAC PT

Our APAC PT segment provides many of the same services as described for our Americas and EMEA PT segments, including: Engineering, IT and Science.

OCG

Our OCG segment delivers integrated talent management solutions to meet customer needs across multiple regions, skill sets and the entire spectrum of talent categories. Using talent supply chain strategies, we help customers manage their full-time and contingent labor spend, and gain access to service providers and quality talent at competitive rates with minimized risk. Services in this segment include: Contingent Workforce Outsourcing (“CWO”), providing globally managed service solutions that integrate supplier and vendor management technology partners to optimize contingent workforce spend; Business Process Outsourcing (“BPO”), offering full staffing and operational management of non-core functions or departments; Recruitment Process Outsourcing (“RPO”), offering end-to-end talent acquisition solutions, including customized recruitment projects; Independent Contractor Solutions, delivering evaluation, classification and risk management services that enable safe access to this critical talent pool; Payroll Process Outsourcing (“PPO”), providing centralized payroll processing solutions globally for our customers; Career Transition and Executive Coaching and Development; and Executive Search, providing leadership in executive placement in various regions throughout the world. 

Financial information regarding our industry segments is included in the Segment Disclosures note to our consolidated financial statements presented in Part II, Item 8 of this report.

Business Objectives

Kelly’s philosophy is rooted in our conviction that we can and do make a difference on a daily basis — for our customers, in the lives of our employees, in the local communities we serve and in our industry. Our vision is “to provide the world’s best workforce solutions.” We aspire to be a strategic business partner to our customers and strive to assist them in operating more efficient and profitable organizations. Our solutions are customized to benefit any scope or scale customers require. 

As the use of contingent labor, consultants and independent contractors becomes more prevalent and critical to the ongoing success of our customer base, our core competencies are refined to help them realize their respective business objectives. Kelly offers a comprehensive array of outsourcing and consulting services, as well as world-class staffing on a temporary, temporary-to-hire and direct placement basis. Kelly will continue to deliver the strategic expertise our customers need to transform their workforce challenges into opportunities.

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Business Operations

Service Marks

We own numerous service marks that are registered with the United States Patent and Trademark Office, the European Union Community Trademark Office and numerous individual country trademark offices.

Seasonality

Our quarterly operating results are affected by the seasonality of our customers’ businesses. Demand for staffing services historically has been lower during the first quarter, and typically increases during the remainder of the year.

Working Capital

Our working capital requirements are primarily generated from temporary employee payroll and customer accounts receivable. Since receipts from customers generally lag payroll to temporary employees, working capital requirements increase substantially in periods of growth. 

Customers

We are not dependent on any single customer or a limited segment of customers. In 2014, an estimated 51% of total Company revenue was attributed to 100 large customers. Our largest single customer accounted for approximately five percent of total revenue in 2014.

Government Contracts

Although we conduct business under various federal, state, and local government contracts, they do not account for a significant portion of our business. 

Competition

The worldwide temporary staffing industry is competitive and highly fragmented. In the United States, approximately 100 competitors operate nationally, and approximately 10,000 smaller companies compete in varying degrees at local levels. Additionally, several similar staffing companies compete globally. In 2014, our largest competitors were Adecco S.A., Randstad Holding N.V., ManpowerGroup Inc., Allegis Group and Recruit Holdings. 

Key factors that influence our success are quality of service, price and breadth of service. 

Quality of service is highly dependent on the availability of qualified, competent talent, and our ability to recruit, screen, train, retain and manage a pool of employees who match the skills required by particular customers. During an economic downturn, we must balance competitive pricing pressures with the need to retain a qualified workforce. Price competition in the staffing industry is intense — particularly for office clerical and light industrial personnel — and pricing pressure from customers and competitors continues to be significant. 

Breadth of service, or ability to manage staffing suppliers, has become more critical as customers seek “one-stop shopping” for all their staffing needs. Kelly's talent supply chain management approach seeks to address this requirement for our larger customers, enabling us to deliver talent wherever and whenever they need it around the world.

Environmental Concerns

Because we are involved in a service business, federal, state or local laws that regulate the discharge of materials into the environment do not materially impact us. 

Employees

We employ approximately 1,100 people at our corporate headquarters in Troy, Michigan, and approximately 7,200 staff members in our international network of branch offices. In 2014, we assigned approximately 555,000 temporary employees to a variety of customers around the globe.

While services may be provided inside the facilities of customers, we remain the employer of record for our temporary employees. We retain responsibility for employee assignments, the employer’s share of all applicable payroll taxes and the administration of the employee’s share of these taxes.

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Foreign Operations

For information regarding sales, earnings from operations and long-lived assets by domestic and foreign operations, please refer to the information presented in the Segment Disclosures note to our consolidated financial statements, presented in Part II, Item 8 of this report. 

Access to Company Information

We electronically file our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports with the Securities and Exchange Commission (“SEC”). The public may read and copy any of the reports that are filed with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website at www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically. 

We make available, free of charge, through our website, and by responding to requests addressed to our vice president of investor relations, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports. These reports are available as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. Our website address is: www.kellyservices.com. The information contained on our website, or on other websites linked to our website, is not part of this report.

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ITEM 1A. RISK FACTORS.

We operate in a highly competitive industry with low barriers to entry and may be unable to compete successfully against existing or new competitors. 

The worldwide staffing services market is highly competitive with limited barriers to entry. We compete in global, national, regional and local markets with full-service and specialized temporary staffing and consulting companies. While the majority of our competitors are significantly smaller than us, several competitors, including Adecco S.A., Randstad Holding N.V., ManpowerGroup Inc., Allegis Group and Recruit Holdings are considerably larger than we are and have substantial marketing and financial resources. Additionally, the emergence of on-line staffing platforms or other forms of disintermediation may pose a competitive threat to our services, which operate under a more traditional staffing business model. Price competition in the staffing industry is intense, particularly for the provision of office clerical and light industrial personnel. We expect that the level of competition will remain high, which could limit our ability to maintain or increase our market share or profitability. 

The number of customers distributing their staffing service purchases among a broader group of competitors continues to increase which, in some cases, may make it more difficult for us to obtain or retain customers. We also face the risk that our current or prospective customers may decide to provide similar services internally. As a result, there can be no assurance that we will not encounter increased competition in the future. 

Our business is significantly affected by fluctuations in general economic conditions.

Demand for staffing services is significantly affected by the general level of economic activity and employment in the United States and the other countries in which we operate. When economic activity increases, temporary employees are often added before full-time employees are hired. As economic activity slows, however, many companies reduce their use of temporary employees before laying off full-time employees. Significant swings in economic activity historically have had a disproportionate impact on staffing industry volumes. We may also experience more competitive pricing pressure during periods of economic downturn. A substantial portion of our revenues and earnings are generated by our business operations in the United States. Any significant economic downturn in the United States or certain other countries in which we operate could have a material adverse effect on our business, financial condition and results of operations.

We may not achieve the intended effects of our business strategy. 

As discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations, our business strategy focuses on driving growth in higher margin specialties -- in Americas PT and also within our growing OCG segment. During 2014 we launched a new PT recruiting model and added PT sales resources in the U.S. local market; finished centralizing our large accounts to enable improvements in productivity and profitability; and continued to invest in talent supply chain solutions that support our OCG growth strategy. While we expected that revenue growth would lag these investments and, consequently, affect our profitability in 2014, we expect revenue growth and profitability to accelerate in 2015.  If we are not successful in executing our strategy, we may not achieve either our stated goal of strong revenue growth in those segments or the intended productivity improvements, therefore negatively impacting future profitability. 

We are at risk of damage to our brand, which is important to our success.

Our success depends, in part, on the goodwill associated with our brand. Because we assign employees to work under the direction and supervision of our customer at work locations not under Kelly’s control, we are at risk of our employees engaging in unauthorized conduct that could harm our reputation. Our Kelly Educational Staffing product is particularly susceptible to this exposure. Although we take appropriate steps to manage this risk, we cannot eliminate the potential of an adverse event. An occurrence that damages Kelly’s reputation could cause the loss of current and future customers, additional regulatory scrutiny and liability to third parties.

If we fail to successfully develop new service offerings, we may be unable to retain our current customers and gain new customers and our revenues would decline. 

The process of developing new service offerings requires accurate anticipation of customers’ changing needs and emerging technological trends. This may require that we make long-term investments and commit significant resources before knowing whether these investments will eventually result in service offerings that achieve customer acceptance and generate the revenues required to provide desired returns. If we fail to accurately anticipate and meet our customers’ needs through the development of new service offerings, our competitive position could be weakened and that could materially adversely affect our results of operations and financial condition.

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As we increasingly offer services outside the realm of traditional staffing, including business process outsourcing, we are exposed to additional risks which could have a material adverse effect on our business. 

Our business strategy focuses on growing our outsourcing and consulting business, including business process outsourcing, where we provide operational management of our customers’ non-core functions or departments. This could expose us to certain risks unique to that business, including product liability or product recalls. Although we have internal vetting processes to control such risks, there is no assurance that these processes will be effective. Additionally, while we maintain insurance in types and amounts we believe are appropriate in light of the aforementioned exposures, there can also be no assurance that such insurance policies will remain available on reasonable terms or be sufficient in amount or scope of coverage. 

We are increasingly dependent on third parties for the execution of critical functions.

We do not maintain our own vendor management technology, and we have outsourced certain other critical applications or business processes to external providers including cloud-based services. We have elected to enter into supplier partnerships rather than establishing our own operations in some of the territories where our customers require our services. We exercise care in the selection and oversight of these providers and partners, and we take steps to ensure that suitable replacement services are available. However, the failure or inability to perform on the part of one or more of these critical suppliers or partners could cause significant disruptions and increased costs.

Past and future acquisitions may not be successful. 

From time to time, we acquire and invest in companies throughout the world. Acquisitions involve a number of risks, including the diversion of management’s attention from its existing operations, the failure to retain key personnel or customers of an acquired business, the failure to realize anticipated benefits such as cost savings and revenue enhancements, the potentially substantial transaction costs associated with acquisitions, the assumption of unknown liabilities of the acquired business and the inability to successfully integrate the business into our operations. Potential impairment losses could result if we overpay for an acquisition. There can be no assurance that any past or future acquired businesses will generate anticipated revenues or earnings. 

Investments in equity affiliates expose us to additional risks and uncertainties.

We participate, or may participate in the future, in certain investments in equity affiliates, such as joint ventures or other equity investments with strategic partners. These arrangements expose us to a number of risks, including the risk that the management of the combined venture may not be able to fulfill their performance obligations under the management agreements or that the joint venture parties may be incapable of providing the required financial support. Additionally, improper, illegal or unethical actions by the venture management could have a negative impact on the reputation of the venture and our company.

A loss of major customers could have a material adverse effect on our business.

Our business strategy is focused on serving large corporate customers through high volume global service agreements. While our strategy is intended to enable us to increase our revenues and earnings from our major corporate customers, the strategy also exposes us to increased risks arising from the possible loss of major customer accounts. The deterioration of the financial condition or business prospects of these customers could reduce their need for staffing and OCG services and result in a significant decrease in the revenues and earnings we derive from these customers. Since receipts from customers generally lag payroll to temporary employees, the bankruptcy of a major customer could have a material adverse impact on our ability to meet our working capital requirements. Additionally, most of our customer contracts can be terminated by the customer on short notice without penalty. Further, as a result of alleged contractual noncompliance, we could be excluded from participating in government contracts. This creates uncertainty with respect to the revenues and earnings we may recognize with respect to our customer contracts.

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We conduct a significant portion of our operations outside of the United States and we are subject to risks relating to our international business activities, including fluctuations in currency exchange rates and numerous legal and regulatory requirements. 

We conduct our business in most major staffing markets throughout the world. Our operations outside the United States are subject to risks inherent in international business activities, including:

• fluctuations in currency exchange rates;

• restrictions or limitations on the transfer of funds;

• varying economic and political conditions;

• differences in cultures and business practices;

• differences in employment and tax laws and regulations;

• differences in accounting and reporting requirements;

• differences in labor and market conditions;

• changing and, in some cases, complex or ambiguous laws and regulations;

• violations of U.S. Foreign Corrupt Practices Act and similar anti-corruption laws; and

• litigation and claims.

Our operations outside the United States are reported in the applicable local currencies and then translated into U.S. dollars at the applicable currency exchange rates for inclusion in our consolidated financial statements. Exchange rates for currencies of these countries may fluctuate in relation to the U.S. dollar and these fluctuations may have an adverse or favorable effect on our operating results when translating foreign currencies into U.S. dollars.

We depend on our ability to attract and retain qualified permanent full-time employees to lead complex talent supply chain sales solutions.

As we aim to expand the number of clients adopting a talent supply chain management approach in order to support our OCG growth strategy, we are highly reliant on individuals who possess specialized knowledge and skills to lead complex talent supply chain sales and operations.  There can be no assurance that qualified personnel will continue to be available.  Our success is increasingly dependent on our ability to attract and retain these experts.

We depend on our ability to attract and retain qualified temporary personnel (employed directly by us or through third-party suppliers).

We depend on our ability to attract qualified temporary personnel who possess the skills and experience necessary to meet the staffing requirements of our customers. We must continually evaluate our base of available qualified personnel to keep pace with changing customer needs. Competition for individuals with proven professional skills is intense, and demand for these individuals is expected to remain strong for the foreseeable future. There can be no assurance that qualified personnel will continue to be available in sufficient numbers and on terms of employment acceptable to us and our customers. Our success is substantially dependent on our ability to recruit and retain qualified temporary personnel.

We may be exposed to employment-related claims and losses, including class action lawsuits and collective actions, which could have a material adverse effect on our business.

We employ and assign personnel in the workplaces of other businesses. The risks of these activities include possible claims relating to:

•  discrimination and harassment;

• wrongful termination or retaliation;

• violations of employment rights related to employment screening or privacy issues;

• apportionment between us and our customer of legal obligations as an employer of temporary employees;

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• classification of workers as employees or independent contractors;

• employment of unauthorized workers;

• violations of wage and hour requirements;

• retroactive entitlement to employee benefits, including health insurance;

• failure to comply with leave policy requirements; and

• errors and omissions by our temporary employees, particularly for the actions of professionals such as attorneys, accountants, teachers and scientists.

We are also subject to potential risks relating to misuse of customer proprietary information, misappropriation of funds, death or injury to our employees, damage to customer facilities due to negligence of temporary employees, criminal activity and other similar occurrences. We may incur fines and other losses or negative publicity with respect to these risks. In addition, these occurrences may give rise to litigation, which could be time-consuming and expensive. In the U.S. and certain other countries in which we operate, new employment and labor laws and regulations have been proposed or adopted that may increase the potential exposure of employers to employment-related claims and litigation. Such laws and regulations are also arising with increasing frequency at the state and local level in the U.S. There can be no assurance that the corporate policies and practices we have in place to help reduce our exposure to these risks will be effective or that we will not experience losses as a result of these risks. Although we maintain insurance in types and amounts we believe are appropriate in light of the aforementioned exposures, there can also be no assurance that such insurance policies will remain available on reasonable terms or be sufficient in amount or scope of coverage. Additionally, should we have a material inability to produce records as a consequence of litigation or a government investigation, the cost or consequences of such matters could become much greater. 

Cyber attacks or other breaches of network or information technology security, as well as risks associated with compliance on data privacy, could have an adverseeffect on our systems, services, reputation and financial results.

We rely upon multiple information technology systems and networks, some of which are cloud-based or managed by third parties, to process, transmit and store electronic information and to manage or support a variety of critical business processes and activities. In the course of these activities we may store or process proprietary or confidential information concerning current, past or prospective employees as well as customers, vendors and suppliers. The secure operation of these systems, networks and processes is critical to our business operations. Moreover, our temporary employees may be exposed to, or have access to, similar information in the course of their customer assignments. We routinely experience cyber attacks, which may include the use of malware, computer viruses, social engineering schemes and other means of disruption or unauthorized access.

The actions we take to reduce the risk of impairments to our operations or systems and breaches of confidential, private or proprietary data may not be sufficient to prevent or repel future cyber events or other impairments of our networks or information technologies. An event involving the destruction or accidental or unauthorized release of sensitive information from systems related to our business, including cyber attacks or other security breaches as well as unauthorized actions by our employees, or a failure to comply with our obligations under various privacy laws and regulations, could result in damage to our reputation, fines, regulatory sanctions or interventions, contractual or financial liabilities, additional compliance costs, loss of employees or customers, and other forms of costs, losses or reimbursements, any of which could materially adversely affect our operations or financial condition. Our insurance coverage may not be sufficient to cover all such costs or consequences.

Damage to our key data centers could affect our ability to sustain critical business applications. 

Many business processes critical to our continued operation are housed in our data center situated within the corporate headquarters complex as well as regional data centers in Asia-Pacific and Europe. Those processes include, but are not limited to, payroll, customer reporting and order management. While we have taken steps to protect these operations and have developed remote recovery capabilities, the loss of a data center would create a substantial risk of business interruption. 

Our information technology projects may not yield their intended results. 

At the present time, we have a number of information technology projects in process or in the planning stages, including improvements to applicant onboarding and tracking systems, order management, billing and customer data analytics. Although the technology is intended to increase productivity and operating efficiencies, these projects may not yield their intended results. Any delays in completing, or an inability to successfully complete, these technology initiatives or an inability to achieve the anticipated efficiencies could adversely affect our operations, liquidity and financial condition. 

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Failure to maintain adequate financial and management processes and controls could lead to errors in our financial reporting.

Failure to maintain adequate financial and management processes and controls could lead to errors in our financial reporting. If our management is unable to certify the effectiveness of our internal controls or if our independent registered public accounting firm cannot render an opinion on the effectiveness of our internal controls over financial reporting, or if material weaknesses in our internal controls are identified, we could be subject to regulatory scrutiny and a loss of public confidence. In addition, if we do not maintain adequate financial and management personnel, processes and controls, we may not be able to accurately report our financial performance on a timely basis, which could have a negative effect on our stock price.

Impairment charges relating to our goodwill and long-lived assets could adversely affect our results of operations.

We regularly monitor our goodwill and long-lived assets for impairment indicators.  In conducting our goodwill impairment testing, we compare the fair value of each of our reporting units with goodwill to the related net book value.  In conducting our impairment analysis of long-lived assets, we compare the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values.  Changes in economic or operating conditions impacting our estimates and assumptions could result in the impairment of our goodwill or long-lived assets.  In the event that we determine that our goodwill or long-lived assets are impaired, we may be required to record a significant non-cash charge to earnings that could adversely affect our results of operations. 

Unexpected changes in claim trends on our workers’ compensation, disability and medical benefit plans may negatively impact our financial condition. 

We self-insure, or otherwise bear financial responsibility for, a significant portion of expected losses under our workers’ compensation program, disability and medical benefits claims. Unexpected changes in claim trends, including the severity and frequency of claims, actuarial estimates and medical cost inflation, could result in costs that are significantly different than initially reported. If future claims-related liabilities increase due to unforeseen circumstances, or if we must make unfavorable adjustments to accruals for prior accident years, our costs could increase significantly. There can be no assurance that we will be able to increase the fees charged to our customers in a timely manner and in a sufficient amount to cover increased costs as a result of any changes in claims-related liabilities.

The impact of recent U.S. healthcare legislation on our results of operations could be significant. 

In March 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the “Acts”) were signed into U.S. law. The Acts represent comprehensive U.S. healthcare reform legislation that, in addition to other provisions, subjects us to potential penalties unless we offer to our employees minimum essential healthcare coverage that is affordable and provides minimum value. In order to comply with the employer mandate provision of the Acts, we have begun offering health care coverage to all temporary and permanent employees eligible for coverage under the Acts. Designating employees as eligible is complex, and is subject to challenge by employees and the Internal Revenue Service. While we believe we have properly identified eligible employees, a later determination that we failed to offer the required health coverage to eligible employees could result in penalties that may materially harm our business. We cannot be certain that compliant insurance coverage will remain available to us on reasonable terms, and we could face additional risks arising from future changes to the Acts or changed interpretations of our obligations under the Acts. There can be no assurance that we will be able to recover all related costs through increased pricing to our customers or that they will be recovered in the period in which costs are incurred, and the net financial impact on our results of operations could be significant.

Our business is subject to extensive government regulation, which may restrict the types of employment services we are permitted to offer or result in additional or increased taxes, including payroll taxes or other costs that reduce our revenues and earnings.

The temporary employment industry is heavily regulated in many of the countries in which we operate. Changes in laws or government regulations may result in prohibition or restriction of certain types of employment services we are permitted to offer or the imposition of new or additional benefit, licensing or tax requirements that could reduce our revenues and earnings. In particular, we are subject to state unemployment taxes in the U.S., which typically increase during periods of increased levels of unemployment. We also receive benefits, such as the work opportunity income tax credit in the U.S., that regularly expire and may not be reinstated. There can be no assurance that we will be able to increase the fees charged to our customers in a timely manner and in a sufficient amount to fully cover increased costs as a result of any changes in laws or government regulations. Any future changes in laws or government regulations, or interpretations thereof, may make it more difficult or expensive for us to provide staffing services and could have a material adverse effect on our business, financial condition and results of operations.

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We may have additional tax or unclaimed property liabilities that exceed our estimates. 

We are subject to federal taxes and a multitude of state and local taxes in the U.S. and taxes in foreign jurisdictions. We are also subject to unclaimed or abandoned property (escheat) laws which require us to remit to certain U.S. government authorities the property of others held by us that has been unclaimed for a specified period of time, such as payroll checks issued to temporary employees. The demographics of our workforce and the visibility of our industry may make it more likely we become a target of government investigations, and we are regularly subject to audit by tax authorities. Although we believe our tax and unclaimed property estimates are reasonable, the final determination of audits and any related litigation could be materially different from our historical tax provisions and accruals. The results of an audit or litigation could materially harm our business.

Failure to maintain specified financial covenants in our bank credit facilities, or credit market events beyond our control, could adversely restrict our financial and operating flexibility and subject us to other risks, including risk of loss of access to capital markets.

Our bank credit facilities contain covenants that require us to maintain specified financial ratios and satisfy other financial conditions. During 2014, we met all of the covenant requirements. Our ability to continue to meet these financial covenants, particularly with respect to interest coverage (see Debt footnote in the notes to our consolidated financial statements), may not be assured.  If we default under this or any other of these requirements, the lenders could declare all outstanding borrowings, accrued interest and fees to be due and payable or significantly increase the cost of the facility.  In these circumstances, there can be no assurance that we would have sufficient liquidity to repay or refinance this indebtedness at favorable rates or at all. Events beyond our control could result in the failure of one or more of our banks, reducing our access to liquidity and potentially resulting in reduced financial and operating flexibility.  If broader credit markets were to experience dislocation, our potential access to other funding sources would be limited.

Our controlling stockholder exercises voting control over our company and has the ability to elect or remove from office all of our directors. 

Terence E. Adderley, the Executive Chairman and Chairman of the Board of our board of directors, and certain trusts with respect to which he acts as trustee or co-trustee, control approximately 93% of the outstanding shares of Kelly Class B common stock, which is the only class of our common stock entitled to voting rights. Mr. Adderley is therefore able to exercise voting control with respect to all matters requiring stockholder approval, including the election or removal from office of all members of the Board of Directors.

We are not subject to certain of the listing standards that normally apply to companies whose shares are quoted on the NASDAQ Global Market. 

Our Class A and Class B common stock are quoted on the NASDAQ Global Market. Under the listing standards of the NASDAQ Global Market, we are deemed to be a “controlled company” by virtue of the fact that Terence E. Adderley, the Executive Chairman and Chairman of the Board of our board of directors, and certain trusts of which he acts as trustee or co-trustee have voting power with respect to more than fifty percent of our outstanding voting stock. A controlled company is not required to have a majority of its board of directors comprised of independent directors. Director nominees are not required to be selected or recommended for the board’s selection by a majority of independent directors or a nominations committee comprised solely of independent directors, nor do the NASDAQ Global Market listing standards require a controlled company to certify the adoption of a formal written charter or board resolution, as applicable, addressing the nominations process. A controlled company is also exempt from NASDAQ Global Market’s requirements regarding the determination of officer compensation by a majority of independent directors or a compensation committee comprised solely of independent directors. A controlled company is required to have an audit committee composed of at least three directors who are independent as defined under the rules of both the Securities and Exchange Commission and the NASDAQ Global Market. The NASDAQ Global Market further requires that all members of the audit committee have the ability to read and understand fundamental financial statements and that at least one member of the audit committee possess financial sophistication. The independent directors must also meet at least twice a year in meetings at which only they are present. 

We currently comply with certain of the listing standards of the NASDAQ Global Market that do not apply to controlled companies. Our compliance is voluntary, however, and there can be no assurance that we will continue to comply with these standards in the future. 

12

Provisions in our certificate of incorporation and bylaws and Delaware law may delay or prevent an acquisition of our company. 

Our restated certificate of incorporation and bylaws contain provisions that could make it harder for a third party to acquire us without the consent of our board of directors. For example, if a potential acquirer were to make a hostile bid for us, the acquirer would not be able to call a special meeting of stockholders to remove our board of directors or act by written consent without a meeting. The acquirer would also be required to provide advance notice of its proposal to replace directors at any annual meeting, and would not be able to cumulate votes at a meeting, which would require the acquirer to hold more shares to gain representation on the board of directors than if cumulative voting were permitted.

Our board of directors also has the ability to issue additional shares of common stock which could significantly dilute the ownership of a hostile acquirer. In addition, Section 203 of the Delaware General Corporation Law limits mergers and other business combination transactions involving 15 percent or greater stockholders of Delaware corporations unless certain board or stockholder approval requirements are satisfied. These provisions and other similar provisions make it more difficult for a third party to acquire us without negotiation. 

Our board of directors could choose not to negotiate with an acquirer that it did not believe was in our strategic interests. If an acquirer is discouraged from offering to acquire us or prevented from successfully completing a hostile acquisition by these or other measures, our shareholders could lose the opportunity to sell their shares at a favorable price.

The holders of shares of our Class A common stock are not entitled to voting rights.

Under our certificate of incorporation, the holders of shares of our Class A common stock are not entitled to voting rights, except as otherwise required by Delaware law. As a result, Class A common stock holders do not have the right to vote for the election of directors or in connection with most other matters submitted for the vote of our stockholders.

Our stock price may be subject to significant volatility and could suffer a decline in value.

The market price of our common stock may be subject to significant volatility. We believe that many factors, including several which are beyond our control, have a significant effect on the market price of our common stock. These include:

• actual or anticipated variations in our quarterly operating results;

• announcements of new services by us or our competitors;

• announcements relating to strategic relationships or acquisitions;

• changes in financial estimates by securities analysts;

• changes in general economic conditions;

• actual or anticipated changes in laws and government regulations;

• commencement of, or involvement in, litigation;

• any major change in our board or management;

• changes in industry trends or conditions; and

• sales of significant amounts of our common stock or other securities in the market.

In addition, the stock market in general, and the NASDAQ Global Market in particular, have experienced significant price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of listed companies. These broad market and industry factors may seriously harm the market price of our common stock, regardless of our operating performance. In the past, securities class action litigation has often been instituted following periods of volatility in the market price of a company’s securities. A securities class action suit against us could result in substantial costs, potential liabilities and the diversion of our management’s attention and resources. Further, our operating results may be below the expectations of securities analysts or investors. In such event, the price of our common stock may decline.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

None.

13

ITEM 2. PROPERTIES.

We own our headquarters in Troy, Michigan, where corporate, subsidiary and divisional offices are currently located. The original headquarters building was purchased in 1977. Headquarters operations were expanded into additional buildings purchased in 1991, 1997 and 2001. 

The combined usable floor space in the headquarters complex is approximately 345,000 square feet. Our buildings are in good condition and are currently adequate for their intended purpose and use. We also own undeveloped land in Troy and northern Oakland County, Michigan.

Branch office business is conducted in leased premises with the majority of leases being fixed for terms of generally three to five years in the U.S. and Canada and five to ten years outside the U.S. and Canada. We own virtually all of the office furniture and the equipment used in our corporate headquarters and branch offices.

ITEM 3. LEGAL PROCEEDINGS.

During the fourth quarter of 2013, a Louisiana jury rendered an award of $4.4 million, pursuant to litigation brought by Robert and Margaret Ward against the Jefferson Parish School Board and Kelly Services. Under the verdict, Kelly’s share of the liability consisted of $2.7 million plus a portion of pre-and-post-judgment interest. In April 2014, Kelly reached an agreement with the plaintiffs pursuant to which Kelly and its primary insurer agreed to pay $1.0 million to the plaintiffs to satisfy the judgment against the primary insurer and Kelly, however, Kelly's umbrella/excess insurer elected to continue to appeal the decision. During the third quarter of 2014, plaintiffs reached a tentative settlement agreement which did not call for any additional financial contribution from Kelly. In January 2015, Plaintiffs filed a Satisfaction of Judgment with the Court, pursuant to an agreement reached with the excess insurer, thereby resolving this matter and foreclosing any further financial risk to Kelly. In light of this settlement, during the first quarter of 2015 Kelly expects to reduce its accrual for litigation costs, and the offsetting insurance receivable, by $1.7 million.

The Company is continuously engaged in litigation arising in the ordinary course of its business, typically matters alleging employment discrimination, alleging wage and hour violations or enforcing the restrictive covenants in the Company’s employment agreements.  While there is no expectation that any of these matters will have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is always subject to inherent uncertainty and the Company is not able to reasonably predict if any matter will be resolved in a manner that is materially adverse to the Company. 

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

14

PART II

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Market Information and Dividends

Our Class A and Class B common stock is traded on the NASDAQ Global Market under the symbols “KELYA” and “KELYB,” respectively. The high and low selling prices for our Class A common stock and Class B common stock as quoted by the NASDAQ Global Market and the dividends paid on the common stock for each quarterly period in the last two fiscal years are reported in the table below. Our ability to pay dividends is subject to compliance with certain financial covenants contained in our debt facilities, as described in the Debt footnote in the notes to our consolidated financial statements.

	Per share amounts (in dollars)
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Year
2014
Class A common
High	$	26.17	$	25.31	$	18.00	$	17.81	$	26.17
Low	22.50		17.05		14.86		14.74		14.74
Class B common
High	30.00		25.71		17.49		17.26		30.00
Low	21.56		17.00		16.04		14.33		14.33
Dividends	0.05		0.05		0.05		0.05		0.20
2013
Class A common
High	$	18.92	$	18.99	$	20.46	$	25.82	$	25.82
Low	15.04		16.32		17.28		18.37		15.04
Class B common
High	19.86		21.24		20.98		24.17		24.17
Low	15.50		16.54		17.56		19.01		15.50
Dividends	0.05		0.05		0.05		0.05		0.20

Holders

The number of holders of record of our Class A and Class B common stock were approximately 7,500 and 300, respectively, as of February 1, 2015. 

Recent Sales of Unregistered Securities 

None.

15

Issuer Purchases of Equity Securities

During the fourth quarter of 2014, we reacquired shares of our Class A common stock as follows:

Period	Total Number of Shares (or Units) Purchased	Average Price Paid per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs
					(in millions of dollars)
September 29, 2014 through November 2, 2014	37,065	$	15.37	—	$	—
November 3, 2014 through November 30, 2014	134	15.72		—	—
December 1, 2014 through December 28, 2014	28,659	15.20		—	—
Total	65,858	$	15.30	—

We may reacquire shares sold to cover taxes due upon the vesting of restricted stock held by employees. Accordingly, 65,858 shares were reacquired during the Company’s fourth quarter.

16

Performance Graph

The following graph compares the cumulative total return of our Class A common stock with that of the S&P 600 SmallCap Index and the S&P 1500 Human Resources and Employment Services Index for the five years ended December 31, 2014. The graph assumes an investment of $100 on December 31, 2009 and that all dividends were reinvested. 

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN

Assumes Initial Investment of $100

December 31, 2009 – December 31, 2014

	2009		2010		2011		2012		2013		2014
Kelly Services, Inc.	$	100.00	$	157.59	$	115.41	$	134.77	$	215.86	$	148.96
S&P SmallCap 600 Index	$	100.00	$	126.31	$	127.59	$	148.42	$	209.74	$	221.81
S&P 1500 Human Resources and Employment Services Index	$	100.00	$	115.67	$	97.74	$	109.43	$	193.11	$	193.81

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ITEM 6. SELECTED FINANCIAL DATA.

The following table summarizes selected financial information of Kelly Services, Inc. and its subsidiaries for each of the most recent five fiscal years. This table should be read in conjunction with the other financial information, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements included elsewhere in this report. The statement of earnings data for the 2011 and 2010 fiscal years as well as the balance sheet data as of 2012, 2011 and 2010 are derived from consolidated financial statements previously on file with the SEC. 

(In millions except per share amounts)	2014		2013		2012		2011			2010
Revenue from services	$	5,562.7	$	5,413.1	$	5,450.5	$	5,551.0		$	4,950.3
Earnings from continuing operations (1)	23.7		58.9		49.7		64.9			26.1
Earnings (loss) from discontinued operations, net of tax (2)	—		—		0.4		(1.2		)	—
Net earnings	23.7		58.9		50.1		63.7			26.1
Basic earnings per share:
Earnings from continuing operations	0.61		1.54		1.31		1.72			0.71
Earnings (loss) from discontinued operations	—		—		0.01		(0.03		)	—
Net earnings	0.61		1.54		1.32		1.69			0.71
Diluted earnings per share:
Earnings from continuing operations	0.61		1.54		1.31		1.72			0.71
Earnings (loss) from discontinued operations	—		—		0.01		(0.03		)	—
Net earnings	0.61		1.54		1.32		1.69			0.71
Dividends per share
Classes A and B common	0.20		0.20		0.20		0.10			—
Working capital	428.1		474.5		470.3		417.0			367.6
Total assets	1,917.9		1,798.6		1,635.7		1,541.7			1,368.4
Total noncurrent liabilities	224.1		214.0		172.4		168.3			153.6

(1) Included in results of continuing operations are asset impairments of $1.7 million in 2013, $3.1 million in 2012 and $2.0 million in 2010.

(2) Discontinued operations represent adjustments to assets and liabilities retained from the 2007 sale of Kelly Home Care.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Executive Overview

The Workforce Solutions Industry

The staffing industry has changed dramatically over the last decade – transformed by globalization, competitive consolidation and secular shifts in labor supply and demand.  Global employment trends are reshaping and redefining traditional employment models, sourcing strategies and human resource capability requirements. In response, the industry has accelerated its evolution from commercial into professional/technical and outsourced solutions. The broader workforce solutions industry has continued to transform to meet businesses’ growing demand for total workforce or talent supply chain management (“TSCM”) solutions. As clients’ workforce solutions strategies move up the maturity model, the TSCM concept seeks to manage all categories of talent (temporary, project-based, outsourced and full-time) and thus represents significant market potential.

The global workforce solutions market saw some acceleration during the second half of 2014, as economic growth gradually shifted in favor of the U.S. economy. Despite recent cyclical challenges, strategic clients are increasingly looking for global, flexible and holistic talent solutions that encompass all worker categories, driving adoption of our TSCM concept covering temporary staffing, Contingent Workforce Outsourcing ("CWO"), Recruitment Process Outsourcing ("RPO"), independent contractor management, strategic workforce planning and more.  Near-term demand for temporary staffing is now benefiting from improving labor market conditions in the U.S., while structural shifts toward higher-skilled, project-based professional/technical talent continue to represent long-term opportunities for the industry. In fact, professional/technical staffing is projected to steadily increase as a percent of the global market, with demand for specialty staffing projected to outpace commercial.  

While the outlook for 2015 is encouraging, years of economic under-performance are tempering expectations. The global economy is forecast to accelerate modestly in the short term, with both strengths and risks present in all regions.

Our Business

Kelly Services is a global workforce solutions company, serving customers of all sizes in a variety of industries. Our staffing operations are divided into three regions, Americas, EMEA and APAC, with commercial and professional/technical staffing businesses in each region. As the human capital arena has become more complex, we have also developed a suite of innovative solutions within our global OCG business. OCG delivers integrated talent management solutions to meet customer needs across the entire spectrum of talent categories. Using talent supply chain strategies, we help customers plan for and manage their acquisition of contingent and full-time labor, and gain access to service providers and quality talent at competitive rates with minimized risk.

We earn revenues from the hourly sales of services by our temporary employees to customers, as a result of recruiting permanent employees for our customers, and through our outsourcing activities. Our working capital requirements are primarily generated from temporary employee payroll and customer accounts receivable. The nature of our business is such that trade accounts receivable are our most significant financial asset. Average days sales outstanding varies within and outside the U.S., but is 54 days on a global basis. Since receipts from customers generally lag temporary employee payroll, working capital requirements increase substantially in periods of growth.

Our Strategy and Outlook 

Our long-term strategic objective is to create shareholder value by delivering a competitive profit from the best workforce solutions and talent in the industry. To achieve this, we are focused on the following key areas: 

• Maintain our core strengths in commercial staffing in key markets;

• Grow our professional and technical solutions;

• Enhance our position as a market-leading provider of talent supply chain management in our OCG segment;

• Capture permanent placement growth in selected specialties; and

• Lower our costs through deployment of efficient service delivery models.

19

Although our objectives remain clear, ongoing economic, political and fiscal disruptions have been a persistent drag on the global recovery and our business.  Recent economic and labor market trends have been more favorable and the outlook for 2015 is encouraging, but the global recovery remains historically weak and uneven.  Six years after the recession, our industry is still not experiencing the degree or patterns of growth typically seen at this point in a recovery cycle. 

At 0.4% for 2014, our return on sales ("ROS") reflects this economic pattern and remains well below our long-term goal of 4.0%. To make significant progress against our ROS goal and better leverage our business, we will need to see continued economic growth coupled with stronger demand for full-time and temporary labor in the sectors that Kelly supports.

In the meantime, we have remained focused on what we can control: executing a well-formed strategy with increased speed and precision, and making the necessary investments to advance that strategy. Kelly delivered solid operational performance in two key areas of our strategy in 2014.

• Total company revenue increased 3% (4% on a constant currency basis) year over year, reversing the decline we experienced in 2013. This revenue growth was helped by improving conditions in the U.S. along with the investments we made in our U.S. operations.

• We increased revenue in our OCG segment by 15% year over year, confirming that our direction aligns with increased market demand for consultative outsourced solutions. Growth was particularly strong in RPO and the fee-based CWO portion of the business, which continue to be key drivers of our strategic and financial progress.

With a firm commitment to growth and a clear plan for accelerating Kelly's strategy, in 2014 we made targeted investments

to adjust our operating models and increase the resources responsible for driving growth in higher margin specialties -- both in Americas PT and in our OCG segment. Specifically, we designed our investments to:

• Grow Americas PT staffing by: establishing nationally focused, product-specific recruiting centers for our IT, engineering, science and finance specialties in the U.S.; hiring additional PT recruiters and PT business development representatives in local U.S. markets; and leveraging our centralized large account delivery model to drive PT growth in large accounts across the Americas.

• Target rapid expansion of our OCG solutions on three fronts: expanding our global supplier network to transform Kelly’s delivery capabilities around the world; strengthening our talent supply chain analytics solution to meet the growing demand for workforce planning among our clients; and expanding our statement of work and independent contractor solutions to ensure we take full advantage of the trend toward project-based PT work.

• Ensure our technology capabilities support our growth initiatives, including: improving the end-to-end ordering process for large accounts using OCG solutions; and revamping our front-office systems to increase efficiency and productivity in our operations.

These investments are intended to achieve strong sales growth in 2015 in both OCG and our Americas PT segment, assuming continued growth in portions of the economy that rely on these services. As expected, in 2014, revenue growth lagged the scope of these investments and, consequently, our overall earnings were down on a year-over-year basis.

To bring additional efficiency to our operating models across the organization, on September 15, 2014, the Board of Directors of the Company approved a management simplification restructuring plan ("Plan") that we completed during the fourth quarter of 2014.

• In the Americas segment, we have:

◦ Streamlined our local U.S. field operations through the closure or consolidation of 52 branches.

◦ Simplified our centralized large account delivery structure.

◦ Flattened our U.S. management structure.

• In OCG, we have aligned resources more efficiently against areas that deliver rapid growth and return on investment.

• We downsized our headquarters operations.

Headcount reduction related to the above actions was over 100 permanent positions across our global workforce, including several senior leadership positions that were vacated at the end of December 2014. We expect that the total result of the Plan is to reduce our future SG&A expense growth by approximately $35 million.

20

Related to this Plan, we reported restructuring charges of $3.7 million, consisting entirely of severance costs, in the third quarter of 2014. Subsequent restructuring charges incurred in the fourth quarter totaled $6.2 million, and included additional severance cost of $3.9 million and lease termination costs of $2.3 million.

Restructuring charges under the Plan totaled $9.9 million, as detailed below, and were recorded entirely in corporate selling, general and administrative expenses.

	Severance Costs		Lease Termination Costs		Total
	(In millions of dollars)
Americas	$	1.7	$	2.3	$	4.0
OCG	1.3		—		1.3
Headquarters	4.6		—		4.6
Total	$	7.6	$	2.3	$	9.9

Even as we align our internal resources to meet market demand, we face external factors that impact our outlook. We have successfully begun offering healthcare coverage to eligible temporary employees in compliance with the employer mandate provision of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the “Acts”). The Acts represent comprehensive U.S. healthcare reform legislation that, in addition to other provisions, will subject us to potential penalties unless we offer to our employees minimum essential healthcare coverage that provides minimum value and is affordable. While it is still early in the adoption phase of the Acts' employer mandate provision, our initial price increases appear to be sufficient to cover implementation and operating costs.

Heading into 2015, we anticipate steady improvement in the U.S. and, to a lesser extent, globally, and we are seeing increased confidence among our large customers – though it remains to be seen whether that confidence will translate into significant, sustained job growth in the year ahead. Longer-term, we believe the trends in the staffing industry are positive: companies are relying more heavily on the use of flexible staffing models; there is growing acceptance of free agents and contractual employment by companies and talent alike; and companies are seeking more comprehensive workforce management solutions that lend themselves to Kelly’s talent supply chain management approach. This shift in demand for contingent labor and strategic solutions plays to our strengths and experience -- particularly serving large companies whose needs span the globe and cross multiple labor categories.

Financial Measures – Operating Margin and Constant Currency

Return on sales (earnings from operations divided by revenue from services) in the following tables is a ratio used to measure the Company’s pricing strategy and operating efficiency. Constant currency (“CC”) change amounts are non-GAAP measures. The CC change amounts in the following tables refer to the year-over-year percentage changes resulting from translating 2014 financial data into U.S. dollars using the same foreign currency exchange rates used to translate financial data for 2013. We believe that CC measurements are an important analytical tool to aid in understanding underlying operating trends without distortion due to currency fluctuations.

Realignment of Segments

Beginning in the first quarter of 2014, we realigned the project-based legal services business in our Americas PT segment to the OCG segment and recast the prior years' amounts to conform to the current presentation.

Staffing Fee-Based Income

Staffing fee-based income, which is included in revenue from services in the following tables, has a significant impact on gross profit rates. There are very low direct costs of services associated with staffing fee-based income. Therefore, increases or decreases in staffing fee-based income can have a disproportionate impact on gross profit rates.

21

Results of Operations

2014 versus 2013

Total Company

(Dollars in millions)

	2014			2013			Change			CC Change
Revenue from services	$	5,562.7		$	5,413.1		2.8	%		3.8	%
Staffing fee-based income	76.5			80.5			(5.2	)		(2.3	)
Gross profit	908.4			889.5			2.1			3.2
SG&A expenses excluding restructuring charges	874.5			832.9			5.0
Restructuring charges	12.0			1.6			NM
Total SG&A expenses	886.5			834.5			6.2			7.3
Asset impairments	—			1.7			(100.0	)
Earnings from operations	21.9			53.3			(59.1	)
Gross profit rate	16.3		%	16.4		%	(0.1	)	pts.
Expense rates (excluding restructuring charges):
% of revenue	15.7			15.4			0.3
% of gross profit	96.3			93.6			2.7
Return on sales	0.4			1.0			(0.6	)

Total Company revenue from services for 2014 was up 2.8% in comparison to the prior year, and 3.8% on a constant currency basis. This reflected growth in OCG, as well as increased bill rates in Americas Commercial and hours worked in the EMEA and APAC regions. Constant currency changes in revenue during 2014 were largely driven by changes in the Russian ruble, Canadian dollar, Australian dollar and Brazilian real.

The gross profit rate was down 10 basis points on a year-over-year basis. Decreases in the gross profit rate in EMEA, APAC and OCG were partially offset by an increase in the Americas gross profit rate.

Selling, general and administrative ("SG&A") expenses excluding restructuring costs increased 5.0% year over year as a result of investments in our PT and OCG businesses, as described more fully in the Executive Overview above, as well as merit increases. Included in SG&A expenses for 2013 is $3.0 million for a settlement with the state of Delaware related to an unclaimed property examination. Restructuring costs in 2014 include $9.9 million related to the Plan described in the Executive Overview above, $0.8 million of costs incurred for exiting the staffing business in Sweden, and $1.3 million related to closing branches in Australia and consolidating back office functions in Australia and New Zealand. Restructuring costs in 2013 primarily relate to severance costs incurred from the Company’s decision to exit the OCG executive search business operating in Germany.

Asset impairments in 2013 represent the write-off of the carrying value of long-lived assets related to the decision to exit the executive search business operating in Germany.

Income tax benefit for 2014 was $7.1 million, compared to a benefit of $10.1 million for 2013. The decrease in income tax benefit is primarily due to U.S. work opportunity credits, with 2013 including credits related to employees hired in 2012 due to the expiration of the credit for most employees hired after 2011, and retroactive reinstatement in January, 2013. Accordingly, we did not record work opportunity credits for most employees hired in 2012 until 2013, increasing 2013 credits by $9.3 million.  2014 income taxes were also impacted by lower pretax earnings.

The work opportunity credit program expired again at the end of 2014, and it is uncertain if or when it will be reinstated. The work opportunity credit program generates a significant tax benefit. Over the last three years, we generated approximately $16 million in credits per year. In the event the program is not renewed, we will receive credits for employees who work in 2015 but were hired in prior years. The credits related to employees hired in prior years have averaged approximately $3 million per year.

Diluted earnings per share for 2014 were $0.61, as compared to $1.54 for 2013.

22

Total Americas

(Dollars in millions)

	2014			2013			Change			CC Change
Revenue from services	$	3,565.6		$	3,513.4		1.5	%		2.2	%
Staffing fee-based income	30.0			27.7			8.0			9.1
Gross profit	535.5			525.3			2.0			2.6
Total SG&A expenses	446.8			419.8			6.5			7.1
Earnings from operations	88.7			105.5			(15.9	)
Gross profit rate	15.0		%	14.9		%	0.1		pts.
Expense rates:
% of revenue	12.5			11.9			0.6
% of gross profit	83.5			79.9			3.6
Return on sales	2.5			3.0			(0.5	)

The change in Americas revenue is primarily the result of a 2% increase in average bill rates. Americas represented 64% of total Company revenue for 2014 and 65% for 2013.

Revenue in our Commercial segment was up 3% and our PT revenue was down 1% in comparison to the prior year. The increase in revenue in Commercial was due to increased revenue in our educational staffing business as a result of new customer wins, partially offset by revenue decreases in our office clerical and light industrial businesses. In the PT segment, we continued to see declines in revenue in our IT and finance products, partially offset by growth in revenue in our science and engineering products.

The increase in the gross profit rate was due to customer mix in Commercial and improved pricing in PT, partially offset by higher workers' compensation cost. In Commercial, higher margin local business grew at a faster rate than large accounts. In PT, positive pricing adjustments for certain large customers drove an improvement in the gross profit rate.

SG&A expenses were up 6.5% in comparison to the prior year. This increase is attributable to last year's annual salary increases, increased incentive payments, additional recruiting and sourcing costs, and the planned investments for additional headcount in sales and recruiting staff, primarily for our PT segment. These investments are more fully described in the Executive Overview above. All of these increases were partially offset by the early benefits of our Plan, which is described in more detail in the Restructuring footnote. Included in SG&A expenses for 2013 is $3.0 million for a settlement with the state of Delaware related to an unclaimed property examination. The restructuring costs related to Americas as disclosed in the Restructuring footnote are included in Corporate SG&A expenses.

23

Total EMEA

(Dollars in millions)

	2014			2013			Change			CC Change
Revenue from services	$	1,085.0		$	1,057.2		2.6	%		4.0	%
Staffing fee-based income	30.8			34.8			(11.4	)		(7.3	)
Gross profit	173.5			176.2			(1.6	)		0.1
SG&A expenses excluding restructuring charges	160.6			164.3			(2.3	)
Restructuring charges	0.8			0.4			60.5
Total SG&A expenses	161.4			164.7			(2.1	)		(0.1	)
Earnings from operations	12.1			11.5			5.5
Gross profit rate	16.0		%	16.7		%	(0.7	)	pts.
Expense rates (excluding restructuring charges):
% of revenue	14.8			15.5			(0.7	)
% of gross profit	92.5			93.2			(0.7	)
Return on sales	1.1			1.1			—

The change in EMEA revenue from services reflected a 5% increase in hours worked, partially offset by a 1% decrease in average bill rates on a CC basis. The increase in hours was due primarily to Portugal, reflecting improved volume with existing customers, new customers and targeted investments. EMEA represented 20% of total Company revenue for both 2014 and 2013.

The EMEA gross profit rate decreased primarily due to a decline in staffing fee-based income and a decline in the temporary gross profit rates. These declines each negatively impacted the gross profit rate by approximately 45 basis points. Staffing fee-based income declined in both Commercial and PT due to the weak economic environment, especially during the second half of the year. Most countries posted declines, with the exception of France and Italy. The decline in the temporary gross profit rate was driven by unfavorable country mix and, to a lesser extent, customer mix, as well as the reversal of previously accrued training costs for temporary employees in the Netherlands in the second quarter of 2013. The effect of this reversal accounted for approximately 10 basis points. These declines were partially offset by the effect of the CICE tax credit in France. This credit, which is recorded in cost of services and totaled $8.3 million in 2014 and $5.5 million in 2013, improved the year-over-year gross profit rate by approximately 25 basis points.

SG&A expenses excluding restructuring declined due to headquarters cost reduction and operational productivity, partially offset by targeted PT investments in selected countries. Restructuring costs recorded in 2014 reflect costs incurred for exiting the staffing business in Sweden. Restructuring costs recorded in 2013 reflect favorable adjustments to prior restructuring costs, primarily in France and Italy.

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Total APAC

(Dollars in millions)

	2014			2013			Change			CC Change
Revenue from services	$	392.2		$	382.7		2.5	%		6.0	%
Staffing fee-based income	15.7			18.0			(13.1	)		(9.8	)
Gross profit	60.2			63.3			(4.8	)		(1.4	)
SG&A expenses excluding restructuring charges	56.4			60.2			(6.3	)
Restructuring charges	1.3			0.3			373.4
Total SG&A expenses	57.7			60.5			(4.5	)		(0.8	)
Earnings from operations	2.5			2.8			(11.0	)
Gross profit rate	15.4		%	16.5		%	(1.1	)	pts.
Expense rates (excluding restructuring charges):
% of revenue	14.4			15.7			(1.3	)
% of gross profit	93.6			95.1			(1.5	)
Return on sales	0.6			0.7			(0.1	)

The change in total APAC revenue from services reflected a 10% increase in hours worked, partially offset by a 3% decrease in average bill rates on a CC basis. The increase in hours worked was due to higher hours in India. The decrease in average bill rates was mainly due to country mix, with bill rates in India lower than the region's average. APAC revenue represented 7% of total Company revenue for both 2014 and 2013.

The decrease in the gross profit rate was due to decreases in temporary margins and staffing fee-based income, which reduced the gross profit rate by approximately 65 and 70 basis points, respectively. Staffing fee-based income decreased by 11% in Singapore, due to high staff turnover, and by 20% in Australia, due to the weaker economic climate. The reduction in temporary margins is due to the increasing proportion of large accounts that have lower margins, as well as the effect of favorable adjustments to workers' compensation reserves in Australia recorded in 2013. The favorable adjustments to workers' compensation reserves, which were recorded in cost of services, totaled $1.3 million and accounted for 30 basis points of the year-over-year decline in the APAC region gross profit rate. These decreases were partially offset by the effect of a wage credit in Singapore, which totaled $2.2 million in 2014 and $0.7 million in 2013. This amount, which was recorded in cost of services and represents additional credits received for 2013 and 2014, partially offset the year-over-year decline in the APAC region gross profit rate by approximately 40 basis points.

Restructuring charges in 2014 relate to costs for exiting branches in Australia and consolidating back office functions in Australia and New Zealand. The decline in SG&A expenses excluding restructuring costs was the result of consolidating the Australia and New Zealand management in the prior year and lower country headquarters costs across the region, partially offset by investments in Singapore, Malaysia and India.

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OCG

(Dollars in millions)

	2014			2013			Change			CC Change
Revenue from services	$	586.8		$	509.5		15.2	%		15.7	%
Gross profit	143.6			128.2			12.0			12.4
SG&A expenses excluding restructuring charges	127.3			110.6			15.1
Restructuring charges	—			0.9			(100.0	)
Total SG&A expenses	127.3			111.5			14.3			15.0
Asset impairments	—			1.7			(100.0	)
Earnings from operations	16.3			15.0			7.3
Gross profit rate	24.5		%	25.2		%	(0.7	)	pts.
Expense rates (excluding restructuring charges):
% of revenue	21.7			21.7			—
% of gross profit	88.7			86.3			2.4
Return on sales	2.8			3.0			(0.2	)

Revenue from services in the OCG segment increased during 2014 due to growth in all key practice areas: CWO, RPO and BPO practice areas. Revenue in CWO, which includes PPO, grew by 16% year over year, RPO revenue increased by 17% and BPO revenue grew by 16% year over year. The revenue growth was due to expansion of programs with existing and the acquisition of new customers. OCG revenue represented 11% of total Company revenue for 2014 and 9% for 2013.

The OCG gross profit rate decreased primarily in CWO and BPO, partially offset by an increase in RPO. CWO experienced growth in PPO, a lower margin business. The BPO gross profit rate declined due to a price decrease in one of our large accounts and customer mix in our legal managed project business, partly offset by improved gross profit rates in KellyConnect. The increase in the gross profit rate in RPO is due to favorable customer mix.

The increase in SG&A expenses excluding restructuring is primarily a result of costs associated with increased volume with existing customers, implementation costs of new customers and planned investments as more fully described in the Executive Overview above. Restructuring costs related to OCG as disclosed in the Restructuring footnote are included in Corporate SG&A expenses in 2014. Asset impairments and restructuring charges in 2013 represent costs associated with the Company’s decision to exit the executive search business operating in Germany.

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Results of Operations

2013 versus 2012

Total Company

(Dollars in millions)

	2013			2012			Change			CC Change
Revenue from services	$	5,413.1		$	5,450.5		(0.7	)%		(0.6	)%
Staffing fee-based income	80.5			90.1			(10.6	)		(9.6	)
Gross profit	889.5			896.6			(0.8	)		(0.6	)
SG&A expenses excluding restructuring charges	832.9			822.1			1.3
Restructuring charges	1.6			(0.9		)	278.7
Total SG&A expenses	834.5			821.2			1.6			1.8
Asset impairments	1.7			3.1			(47.1	)
Earnings from operations	53.3			72.3			(26.3	)
Gross profit rate	16.4		%	16.5		%	(0.1	)	pts.
Expense rates (excluding restructuring charges):
% of revenue	15.4			15.1			0.3
% of gross profit	93.6			91.7			1.9
Return on sales	1.0			1.3			(0.3	)

Total Company revenue for 2013 was down 1% in comparison to the prior year. This reflected a 4% decrease in hours worked, partially offset by a 3% increase in average bill rates. Hours decreased in our staffing business in all three regions. The decrease in the Americas and EMEA was due, in large part, to the economic uncertainty existing in both regions, while the decline in APAC was due to decisions we made to exit low-margin business in India. The improvement in average bill rates was primarily due to the mix of countries, particularly India, where we exited business with very low average bill rates.

Compared to 2012, the gross profit rate was down 10 basis points. Decreases in the gross profit rate in EMEA, APAC and OCG were partially offset by a slight increase in the Americas gross profit rate.

SG&A expenses increased 2% year over year. Included in SG&A expenses for 2013 is $3.0 million for a settlement with the state of Delaware related to unclaimed property examinations. Restructuring costs in 2013 primarily relate to severance costs incurred from the Company’s decision to exit the OCG executive search business operating in Germany. The total net restructuring benefit in 2012 included $2.9 million of favorable adjustments to prior restructuring costs in the U.K., partially offset by costs associated with restructuring actions taken in Italy, France and Ireland.

Asset impairments in 2013 represent the write-off of the carrying value of long-lived assets related to the decision to exit the executive search business operating in Germany. Asset impairments in 2012 represent the write-off of previously capitalized costs related to the decision to abandon the PeopleSoft billing system implementation.

Income tax benefit for 2013 was $10.1 million (-20.8% effective tax rate), compared to expense of $19.1 million (27.8%) for 2012. The U.S. work opportunity credit program was generally not available for employees hired in 2012, but was retroactively reinstated for 2012 and 2013 in January, 2013. Accordingly, we did not record work opportunity credits for most employees hired in 2012 until 2013. As a result, we recorded $9.3 million of 2012 work opportunity credits in the first quarter of 2013 and work opportunity credits recorded in 2013 were $18.3 million higher than in 2012.

The work opportunity credit program expired again at the end of 2013, and it is uncertain if or when it will be reinstated. The work opportunity credit program generates a significant tax benefit. Over the last three years, we generated approximately $15 million in credits per year. In the event the program is not renewed, we will receive credits for employees who work in 2014 but were hired in prior years. The credits related to employees hired in prior years have averaged about $3 million per year.

Other items that favorably impacted 2013 income taxes as compared to 2012 include strong 2013 tax-free returns on investments in company-owned variable universal life insurance policies that are used to fund non-qualified retirement plans, the favorable impact of a fourth quarter 2013 Mexico income tax law change on deferred tax balances, and lower 2013 pretax income. In 2012, the Company closed income tax examinations relating to prior years, resulting in a $5.1 million benefit.

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Diluted earnings from continuing operations per share for 2013 were $1.54, as compared to $1.31 for 2012.

Earnings from discontinued operations for 2012 represent adjustments to the estimated costs of litigation, net of tax, retained from the 2007 sale of the Kelly Home Care business unit.

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Total Americas

(Dollars in millions)

	2013			2012			Change			CC Change
Revenue from services	$	3,513.4		$	3,634.5		(3.3	)%		(3.1	)%
Staffing fee-based income	27.7			25.5			8.3			9.1
Gross profit	525.3			538.7			(2.5	)		(2.3	)
Total SG&A expenses	419.8			400.1			4.9			5.2
Earnings from operations	105.5			138.6			(24.0	)
Gross profit rate	14.9		%	14.8		%	0.1		pts.
Expense rates:
% of revenue	11.9			11.0			0.9
% of gross profit	79.9			74.3			5.6
Return on sales	3.0			3.8			(0.8	)

The change in Americas revenue represents a 4% decrease in hours worked, partially offset by a 1% increase in average bill rates. Americas represented 65% of total Company revenue in 2013 and 67% in 2012. 

Revenue in our Commercial segment was down 4% and our PT revenue declined 3% in comparison to the prior year. The change in revenue in Commercial is due to revenue decreases in our office clerical and electronic assembly products, somewhat offset by increased revenue in our educational staffing business. In the PT segment, we continued to see declines in revenue in our science, IT and finance products, partially offset by growth in revenue in our engineering and health care products.

The small increase in the gross profit rate was due primarily to the increase in staffing fee-based income. 

The increase in SG&A expenses was due to our investment in centralized operations staff to support our largest customers, investments in our technology infrastructure and the start of our investment in PT recruiters, coupled with a $3.0 million, one-time charge in the first quarter of 2013 relating to an unclaimed property settlement.

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Total EMEA

(Dollars in millions)

	2013			2012			Change			CC Change
Revenue from services	$	1,057.2		$	1,022.9		3.4	%		1.9	%
Staffing fee-based income	34.8			38.3			(8.8	)		(8.9	)
Gross profit	176.2			176.8			(0.2	)		(1.6	)
SG&A expenses excluding restructuring charges	164.3			169.0			(2.8	)
Restructuring charges	0.4			(0.9		)	156.6
Total SG&A expenses	164.7			168.1			(1.9	)		(3.3	)
Earnings from operations	11.5			8.7			32.9
Gross profit rate	16.7		%	17.3		%	(0.6	)	pts.
Expense rates (excluding restructuring charges):
% of revenue	15.5			16.5			(1.0	)
% of gross profit	93.2			95.6			(2.4	)
Return on sales	1.1			0.8			0.3

The change in EMEA revenue from services reflected a 3% increase in average bill rates on a CC basis, partially offset by a 1% decrease in hours worked. The increase in average bill rates was due to favorable country and customer mix. EMEA revenue represented 20% of total Company revenue in 2013 and 19% in 2012.

The EMEA gross profit rate decreased due to unfavorable customer mix, with revenue from large customers increasing by 7% on a CC basis and revenue from retail customers with higher margins decreasing 2% in comparison to the prior year. Additionally, the gross profit rate was impacted by the decline in staffing fee-based income. The effect of these decreases, which accounted for 110 basis points, was partially offset by the effect of the CICE tax credit in France. The CICE tax credit is related to a law which was introduced in 2013 to enhance the competitiveness of businesses in France. This credit of $5.5 million, which was recorded in cost of services, improved the reported gross profit rate by approximately 50 basis points. 

The decrease in SG&A expenses excluding restructuring charges was primarily due to a reduction of full-time employees. Restructuring costs recorded in 2013 reflect the adjustments to prior restructuring costs primarily in France and Italy. The total net restructuring benefit in 2012 included $2.9 million of favorable adjustments to prior restructuring costs in the U.K., partially offset by costs associated with restructuring actions taken in Italy, France and Ireland.

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Total APAC

(Dollars in millions)

	2013			2012			Change			CC Change
Revenue from services	$	382.7		$	394.8		(3.1	)%		0.1	%
Staffing fee-based income	18.0			26.3			(31.6	)		(28.7	)
Gross profit	63.3			71.1			(11.0	)		(7.7	)
SG&A expenses excluding restructuring charges	60.2			73.4			(18.1	)
Restructuring charges	0.3			—			NM
Total SG&A expenses	60.5			73.4			(17.7	)		(14.6	)
Earnings from operations	2.8			(2.3		)	NM
Gross profit rate	16.5		%	18.0		%	(1.5	)	pts.
Expense rates (excluding restructuring charges):
% of revenue	15.7			18.6			(2.9	)
% of gross profit	95.1			103.3			(8.2	)
Return on sales	0.7			(0.6		)	1.3

The change in total APAC revenue reflected a 12% increase in average bill rates on a CC basis, partially offset by a 9% decrease in hours worked. Excluding the 2012 results from the North Asia operations which were deconsolidated in the fourth quarter of 2012, APAC revenue declined 3% on a CC basis. The change in hours worked was due to declines in India where we exited lower margin business, and Malaysia, where the decrease reflected changing customer demand. The improvement in average bill rates was primarily due to the mix of countries, particularly the business we exited in India with very low average bill rates. APAC revenue represented 7% of total Company revenue in both 2013 and 2012. 

Excluding the North Asia operations from 2012 results, the APAC gross profit rate decreased 30 basis points. Temporary margins reduced the gross profit rate by 40 basis points, primarily due to pricing pressures for large accounts in Australia and New Zealand. Staffing fee-based income decreased 5% on a CC basis excluding the North Asia operations, and also negatively impacted the gross profit rate by 40 basis points. Fees declined in most countries in the APAC region, in comparison to the prior year. These decreases were partially offset by favorable adjustments to workers’ compensation reserves in Australia, along with the effect of a wage credit related to a new law enacted in Singapore to promote the training and development of its citizens and incentivize companies to increase employee wages. The favorable adjustments to workers’ compensation reserves, which were recorded in cost of services, totaled $1.3 million and added 30 basis points to the APAC region gross profit rate in 2013. The wage credit, which was also recorded in cost of services, totaled $0.7 million and added 20 basis points to the APAC region gross profit rate in 2013. 

SG&A expenses declined 5% on a CC basis, excluding the North Asia operations from 2012 results. This change was the result of consolidating Australia and New Zealand management and lower country headquarters costs across the region.

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OCG

(Dollars in millions)

	2013			2012			Change			CC Change
Revenue from services	$	509.5		$	433.7		17.5	%		17.8	%
Gross profit	128.2			113.2			13.2			13.5
SG&A expenses excluding restructuring charges	110.6			101.1			9.4
Restructuring charges	0.9			—			NM
Total SG&A expenses	111.5			101.1			10.2			10.4
Asset impairments	1.7			—			NM
Earnings from operations	15.0			12.1			24.4
Gross profit rate	25.2		%	26.1		%	(0.9	)	pts.
Expense rates (excluding restructuring charges):
% of revenue	21.7			23.3			(1.6	)
% of gross profit	86.3			89.2			(2.9	)
Return on sales	3.0			2.8			0.2

Revenue from services in the OCG segment increased during 2013 due primarily to growth in the BPO and CWO practice areas. Revenue in BPO grew by 30% year over year and revenue in CWO, which includes PPO, grew by 23%. These increases were partially offset by a decrease in RPO revenue of 4%. The revenue growth in BPO and CWO was due to both expansion of programs with existing customers and new customers. OCG revenue represented 9% of total Company revenue in 2013 and 8% in 2012.  

The OCG gross profit rate decreased primarily due to higher growth in our lower margin businesses, such as BPO and PPO. The increase in SG&A expenses excluding restructuring is primarily the result of support costs associated with increased volume with existing and new customers, mainly in BPO and CWO, including new customer implementations. Asset impairments and restructuring charges in 2013 represent costs associated with the Company’s decision to exit the executive search business operating in Germany.

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Results of Operations

Financial Condition

Historically, we have financed our operations through cash generated by operating activities and access to credit markets. Our working capital requirements are primarily generated from temporary employee payroll and customer accounts receivable. Since receipts from customers generally lag payroll to temporary employees, working capital requirements increase substantially in periods of growth. Conversely, when economic activity slows, working capital requirements may substantially decrease. As highlighted in the consolidated statements of cash flows, our liquidity and available capital resources are impacted by four key components: cash and equivalents, operating activities, investing activities and financing activities. 

Cash and Equivalents

Cash and equivalents totaled $83.1 million at year-end 2014, compared to $125.7 million at year-end 2013. As further described below, during 2014, we used $70.0 million of cash for operating activities, used $27.2 million of cash for investing activities and generated $56.6 million in cash from financing activities. The cash and equivalents balance at year-end 2014 was negatively impacted by $20.0 million related to payments we received at year-end 2013 from our OCG customers, most of which we paid out to suppliers during the first quarter of 2014.

Operating Activities

In 2014, we used $70.0 million of net cash for operating activities, as compared to generating $115.3 million in 2013 and $61.1 million in 2012. The change from 2013 to 2014 was primarily due to year-to-date growth in trade accounts receivable, along with the negative impact of the $20.0 million related to the timing of payments to suppliers noted above. The increase in trade accounts receivable was due to revenue growth, primarily during fourth quarter of 2014, and extended terms for certain large customers, as described below. Included in operating assets and liabilities and net cash from operating activities for 2013 is an increase of $4.8 million related to the correction of an error from prior periods. The change in operating activities from 2012 to 2013 was due to the impact of the $20.0 million related to the timing of supplier payments, the $4.8 million effect of the correction of the error from prior periods, and lower working capital requirements.

Trade accounts receivable totaled $1.1 billion at year-end 2014, compared to $1.0 billion at year-end 2013. Global days sales outstanding ("DSO") for the fourth quarter were 54 days for 2014, compared to 52 days for 2013. The increase in DSO is primarily due to the timing of our month-end cut-off as well as extended terms and invoicing complexities for certain large customers.

Our working capital position was $428.1 million at year-end 2014, a decrease of $46.4 million from year-end 2013. The current ratio (total current assets divided by total current liabilities) was 1.5 at year-end 2014 and 1.6 at year-end 2013.

Investing Activities

In 2014, we used $27.2 million of net cash for investing activities, compared to $20.8 million in 2013 and $28.1 million in 2012. Capital expenditures, which totaled $21.7 million in 2014, $20.0 million in 2013 and $21.5 million in 2012, primarily related to the Company’s technology programs in 2014 and 2013. 

In 2012, capital expenditures included costs for the implementation of the PeopleSoft payroll, billing and accounts receivable project. As a result of this project, which was completed in 2013, the Company implemented modules associated with payroll and accounts receivable in the U.S., Canada, Puerto Rico, the U.K. and Ireland, billing in the U.K. and Ireland and general ledger and fixed assets in the U.S., Puerto Rico and Canada. 

During 2012, we entered into an agreement with Temp Holdings Co., Ltd. (“Temp Holdings”) to form a venture, TS Kelly Workforce Solutions (“TS Kelly”), in order to expand both companies’ presence in North Asia. As part of this agreement, we contributed our operations in China, South Korea and Hong Kong for a 49% ownership interest in TS Kelly. The $6.6 million investment in 2012 represented a $1.8 million payment to TS Kelly, as well as the cash on hand at the operations we contributed. Our share of the operating results of TS Kelly is recorded on an equity basis beginning in the first quarter of 2013. Investment in equity affiliate of $5.7 million in 2014 represents our net cash payments to TS Kelly, which includes $4.8 million for the acquisition of a China-based staffing company.

In 2013, a cash payment of $1.4 million to TS Kelly was improperly classified in operating activities in the consolidated statements of cash flows, resulting in the understatement of operating activities and overstatement of investing activities in the consolidated statements of cash flows for 2013.

33

Financing Activities

In 2014, we generated $56.6 million of cash from financing activities, as compared to using $43.7 million in 2013 and using $39.4 million in 2012. Changes in net cash from financing activities are primarily related to short-term borrowing activities. Debt totaled $91.9 million at year-end 2014 compared to $28.3 million at year-end 2013. Debt-to-total capital is a common ratio to measure the relative capital structure and leverage of the Company. Our ratio of debt-to-total capital (total debt reported on the balance sheet divided by total debt plus stockholders’ equity) was 9.9% at year-end 2014 and 3.3% at year-end 2013. 

In 2014, the net change in short-term borrowings was primarily due to $60.0 million in additional borrowings on our securitization facility, used to fund our everyday operations, and $3.5 million in borrowings under the revolving line of credit in Brazil. In 2013, the net change in short-term borrowings was primarily due to $35.0 million of repayments on the securitization facility funded with net cash generated from operating activities. In 2012, the net change in short-term borrowings included $21.0 million and $6.2 million related to payments on the securitization facility and revolving credit facility, respectively.

Dividends paid per common share were $0.20 in 2014, 2013 and 2012. Payments of dividends are restricted by the financial covenants contained in our debt facilities. Details of this restriction are contained in the Debt footnote in the notes to our consolidated financial statements. 

Contractual Obligations and Commercial Commitments

Summarized below are our obligations and commitments to make future payments as of year-end 2014:

			Payment due by period
	Total		Less than 1 year		1-3 Years		3-5 Years		More than 5 years
	(In millions of dollars)
Operating leases	$	94.8	$	35.8	$	42.3	$	14.4	$	2.3
Short-term borrowings	91.9		91.9		—		—		—
Accrued insurance	70.8		26.9		20.5		8.5		14.9
Accrued retirement benefits	152.6		12.3		24.1		24.6		91.6
Other long-term liabilities	11.1		1.8		3.9		2.5		2.9
Uncertain income tax positions	2.8		0.3		1.4		0.3		0.8
Purchase obligations	25.9		16.9		8.1		0.9		—
Total	$	449.9	$	185.9	$	100.3	$	51.2	$	112.5

Purchase obligations above represent unconditional commitments relating primarily to voice and data communications services and online tools which we expect to utilize generally within the next two fiscal years, in the ordinary course of business. We have no material, unrecorded commitments, losses, contingencies or guarantees associated with any related parties or unconsolidated entities.

Liquidity 

We expect to meet our ongoing short- and long-term cash requirements principally through cash generated from operations, available cash and equivalents, securitization of customer receivables and committed unused credit facilities. Additional funding sources could include public or private bonds, asset-based lending, additional bank facilities, issuance of equity or other sources.

We utilize intercompany loans, dividends, capital contributions and redemptions to effectively manage our cash on a global basis. We periodically review our foreign subsidiaries’ cash balances and projected cash needs. As part of those reviews, we may identify cash that we feel should be repatriated to optimize the Company’s overall capital structure. At the present time, these reviews have not resulted in any specific plans to repatriate a majority of our international cash balances. We expect much of our international cash will be needed to fund working capital growth in our local operations. The majority of our international cash is concentrated in a cash pooling arrangement (the “Cash Pool”) and is available to fund general corporate needs internationally. The Cash Pool is a set of cash accounts maintained with a single bank that must, as a whole, maintain at

34

least a zero balance; individual accounts may be positive or negative. This allows countries with excess cash to invest and countries with cash needs to utilize the excess cash.

We manage our cash and debt very closely to optimize our capital structure. As our cash balances build, we tend to pay down debt as appropriate. Conversely, when working capital needs grow, we tend to use corporate cash and cash available in the Cash Pool first, and then access our borrowing facilities.

At year-end 2014, we had $199.6 million of available capacity on our $200.0 million revolving credit facility and $7.5 million of available capacity on our $150.0 million securitization facility. The securitization facility carried $88.0 million of short-term borrowings and $54.5 million of standby letters of credit related to workers’ compensation. Together, the revolving credit and securitization facilities provide the Company with committed funding capacity that may be used for general corporate purposes. While we believe these facilities will cover our working capital needs over the short term, if economic conditions or operating results change significantly, we may need to seek additional sources of funds. Throughout 2014 and as of the 2014 year end, we met the debt covenants related to our revolving credit facility and securitization facility.

At year-end 2014, we also had additional unsecured, uncommitted short-term credit facilities totaling $15.5 million, under which we had borrowed $3.5 million. Details of our debt facilities as of the 2014 year end are contained in the Debt footnote in the notes to our consolidated financial statements.

We monitor the credit ratings of our major banking partners on a regular basis. We also have regular discussions with them. Based on our reviews and communications, we believe the risk of one or more of our banks not being able to honor commitments is insignificant. We also review the ratings and holdings of our money market funds and other investment vehicles regularly to ensure high credit quality and access to our invested cash.

Critical Accounting Estimates 

We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States. In this process, it is necessary for us to make certain assumptions and related estimates affecting the amounts reported in the consolidated financial statements and the attached notes. Actual results can differ from assumed and estimated amounts. 

Critical accounting estimates are those that we believe require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Judgments and uncertainties affecting the application of those estimates may result in materially different amounts being reported under different conditions or using different assumptions. We consider the following estimates to be most critical in understanding the judgments involved in preparing our consolidated financial statements. 

Workers’ Compensation

In the U.S., we have a combination of insurance and self-insurance contracts under which we effectively bear the first $1.0 million of risk per single accident. There is no aggregate limitation on our per-risk exposure under these insurance and self-insurance programs. We establish accruals for workers’ compensation utilizing actuarial methods to estimate the undiscounted future cash payments that will be made to satisfy the claims, including an allowance for incurred-but-not-reported claims. This process includes establishing loss development factors, based on our historical claims experience as well as industry experience, and applying those factors to current claims information to derive an estimate of our ultimate claims liability. In preparing the estimates, we also consider the nature, frequency and severity of the claims; reserving practices of our third party claims administrators; performance of our medical cost management and return to work programs; changes in our territory and business line mix and current legal, economic and regulatory factors such as industry estimates of medical cost trends. Where appropriate, multiple generally accepted actuarial techniques are applied and tested in the course of preparing our estimates. When claims exceed the applicable loss limit or self-insured retention and realization of recovery of the claim from existing insurance policies is deemed probable, we record a receivable from the insurance company for the excess amount. 

We evaluate the accrual, and the underlying assumptions, regularly throughout the year and make adjustments as needed. The ultimate cost of these claims may be greater than or less than the established accrual. While we believe that the recorded amounts are reasonable, there can be no assurance that changes to our estimates will not occur due to limitations inherent in the estimation process. In the event we determine that a smaller or larger accrual is appropriate, we would record a credit or a charge to cost of services in the period in which we made such a determination. The accrual for workers’ compensation, net of related receivables which are included in prepaid expenses and other current assets and other assets in the consolidated balance sheet, was $57.6 million and $58.4 million at year-end 2014 and 2013, respectively. 

35

Income Taxes

Income tax expense is based on expected income and statutory tax rates in the various jurisdictions in which we operate. Judgment is required in determining our income tax expense. We establish accruals for uncertain tax positions under generally accepted accounting principles, which require that a position taken or expected to be taken in a tax return be recognized in the consolidated financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement.

Our effective tax rate includes the impact of accruals and changes to accruals that we consider appropriate, as well as related interest and penalties. A number of years may lapse before a particular matter, for which we have or have not established an accrual, is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe that our accruals are appropriate under generally accepted accounting principles. Favorable or unfavorable adjustments of the accrual for any particular issue would be recognized as an increase or decrease to our income tax expense in the period of a change in facts and circumstances. Our current tax accruals are presented in the consolidated balance sheet within income and other taxes and long-term tax accruals are presented in the consolidated balance sheet within other long-term liabilities. 

Tax laws require items to be included in the tax return at different times than the items are reflected in the consolidated financial statements. As a result, the income tax expense reflected in our consolidated financial statements is different than the liability reported in our tax return. Some of these differences are permanent, which are not deductible or taxable on our tax return, and some are temporary differences, which give rise to deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in our tax return in future years for which we have already recorded the tax benefit in our consolidated income statement. We establish valuation allowances for our deferred tax assets when the amount of expected future taxable income is not likely to support the use of the deduction or credit. Deferred tax liabilities generally represent items for which we have already taken a deduction on our tax return, but have not yet recognized as expense in our consolidated financial statements. Our net deferred tax asset is recorded using currently enacted tax laws, and may need to be adjusted in the event tax laws change. 

The U.S. work opportunity credit is allowed for wages earned by employees in certain targeted groups. The actual amount of creditable wages in a particular period is estimated, since the credit is only available once an employee reaches a minimum employment period and the employee’s inclusion in a targeted group is certified by the applicable state. As these events often occur after the period the wages are earned, judgment is required in determining the amount of work opportunity credits accrued for in each period. We evaluate the accrual regularly throughout the year and make adjustments as needed. 

Goodwill

We test goodwill for impairment annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. Generally accepted accounting principles require that goodwill be tested for impairment at a reporting unit level. We have determined that our reporting units are the same as our operating and reportable segments. If we have determined that it is more likely than not that the fair value for one or more reporting units is greater than their carrying value, we may use a qualitative assessment for the annual impairment test. 

In conducting the qualitative assessment, we assess the totality of relevant events and circumstances that affect the fair value or carrying value of the reporting unit. Such events and circumstances may include macroeconomic conditions, industry and competitive environment conditions, overall financial performance, reporting unit specific events and market considerations. We may also consider recent valuations of the reporting unit, including the magnitude of the difference between the most recent fair value estimate and the carrying value, as well as both positive and adverse events and circumstances, and the extent to which each of the events and circumstances identified may affect the comparison of a reporting unit’s fair value with its carrying value. 

For reporting units where the qualitative assessment is not used, goodwill is tested for impairment using a two-step process. In the first step, the estimated fair value of a reporting unit is compared to its carrying value. If the estimated fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is not considered impaired and no further testing is required. To derive the estimated fair value of reporting units, we primarily relied on an income approach. Under the income approach, estimated fair value is determined based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the reporting unit being measured. Estimated future cash flows are based on our internal projection model. Assumptions and estimates about future cash flows and discount rates are complex and often subjective. They can be affected by a variety of factors, including external

36

factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts.

If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of a reporting unit, a second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference. 

We completed our annual impairment test for all reporting units with goodwill in the fourth quarter for the fiscal year ended 2014 and 2013 and determined that goodwill was not impaired. In 2014, we elected to perform a step one quantitative assessment for the Americas Commercial, Americas PT, OCG and APAC PT reporting units. In 2013, we performed a qualitative assessment for the OCG and APAC PT reporting units, and a step one quantitative assessment for the Americas Commercial and Americas PT reporting units.

Our step one analysis used significant assumptions by segment, including: expected future revenue and expense growth rates, profit margins, cost of capital, discount rate and forecasted capital expenditures. Although we believe the assumptions and estimates we have made are reasonable and appropriate, different assumptions and estimates could materially impact our reported financial results. Different assumptions of the anticipated future results and growth from these businesses could result in an impairment charge, which would decrease operating income and result in lower asset values on our consolidated balance sheet. As a measure of sensitivity, the estimated fair values exceeded the carrying values by more than 25% for all four reporting units tested in 2014. In addition, reducing our revenue growth rate assumptions by the following amounts would not result in the estimated fair value falling below book value for these reporting units: 20% for Americas Commercial and Americas PT, 9% for OCG and 4% for APAC PT. For the step one analyses we performed in 2013, a 10% reduction in our revenue growth rate assumptions would not result in the estimated fair value falling below book value for those reporting units where we performed a step one quantitative test.

At year-end 2014 and 2013, total goodwill amounted to $90.3 million for each year (see the Goodwill footnote in the notes to our consolidated financial statements).

Litigation 

Kelly is subject to legal proceedings and claims arising out of the normal course of business. Kelly routinely assesses the likelihood of any adverse judgments or outcomes to these matters, as well as ranges of probable losses. A determination of the amount of the accruals required, if any, for these contingencies is made after analysis of each known issue. Development of the analysis includes consideration of many factors including: potential exposure, the status of proceedings, negotiations, discussions with our outside counsel, results of similar litigation and, in the case of class action lawsuits, participation rates. The required accruals may change in the future due to new developments in each matter. For further discussion, see the Contingencies footnote in the notes to our consolidated financial statements. At year-end 2014 and 2013, the gross accrual for litigation costs amounted to $5.7 million and $6.9 million, respectively, and related insurance recoveries totaled $1.7 million and $3.1 million, respectively. 

Allowance for Uncollectible Accounts Receivable

We make ongoing estimates relating to the collectibility of our trade accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. In determining the amount of the allowance, we consider our historical level of credit losses and apply percentages to certain aged receivable categories. We also make judgments about the creditworthiness of significant customers based on ongoing credit evaluations, and we monitor historical trends that might impact the level of credit losses in the future. Historically, losses from uncollectible accounts have not exceeded our allowance. Since we cannot predict with certainty future changes in the financial stability of our customers, actual future losses from uncollectible accounts may differ from our estimates. If the financial condition of our customers were to deteriorate, resulting in their inability to make payments, a larger allowance may be required. 

In the event we determined that a smaller or larger allowance was appropriate, we would record a credit or a charge to SG&A expenses in the period in which we made such a determination. In addition, for billing adjustments related to errors, service issues and compromises on billing disputes, we also include a provision for sales allowances, based on our historical experience, in our allowance for uncollectible accounts receivable. If sales allowances vary from our historical experience, an adjustment to the allowance may be required, and we would record a credit or charge to revenue from services in the period in which we made such a determination. As of year-end 2014 and 2013, the allowance for uncollectible accounts receivable was $10.7 million and $9.9 million, respectively.

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NEW ACCOUNTING PRONOUNCEMENTS 

See New Accounting Pronouncements footnote in the notes to our consolidated financial statements presented in Part II, Item 8 of this report for a description of new accounting pronouncements. 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this report are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, or which include words such as "expects,” "anticipates,” "intends,” “plans,” "believes,” “estimates,” or variations or negatives thereof or by similar or comparable words or phrases. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions by us that may be provided by management, including oral statements or other written materials released to the public, are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and assumptions about our company and economic and market factors in the countries in which we do business, among other things. These statements are not guarantees of future performance, and we have no specific intention to update these statements.

Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The principal important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to, competitive market pressures including pricing and technology introductions, changing market and economic conditions, our ability to achieve our business strategy, the risk of damage to our brand, our ability to successfully develop new service offerings, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, our increasing dependency on third parties for the execution of critical functions, the risks associated with past and future acquisitions, exposure to risks associated with investments in equity affiliates, material changes in demand from or loss of large corporate customers, risks associated with conducting business in foreign countries, including foreign currency fluctuations, availability of full-time employees to lead complex talent supply chain sales and operations, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, the risk of cyber attacks or other breaches of network or information technology security as well as risks associated with compliance on data privacy, our ability to sustain critical business applications through our key data centers, our ability to effectively implement and manage our information technology programs, our ability to maintain adequate financial and management processes and controls, impairment charges triggered by adverse industry or market developments, unexpected changes in claim trends on workers’ compensation, disability and medical benefit plans, the impact of the Patient Protection and Affordable Care Act on our business, the impact of changes in laws and regulations (including federal, state and international tax lawsand the expiration and/or reinstatement of the U.S. work opportunity credit program), the risk of additional tax or unclaimed property liabilities in excess of our estimates, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, and other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission.  Actual results may differ materially from any forward looking statements contained herein, and we have no intention to update these statements. Certain risk factors are discussed more fully under “Risk Factors” in Part I, Item 1A of this report.

38

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are exposed to foreign currency risk primarily due to our net investment in foreign subsidiaries, which conduct business in their local currencies. We may also utilize local currency-denominated borrowings. 

In addition, we are exposed to interest rate risks through our use of the multi-currency line of credit and other borrowings. A hypothetical fluctuation of 10% of market interest rates would not have had a material impact on 2014 earnings. 

Marketable equity investments, representing our available-for-sale investment in Temp Holdings, are stated at fair value and marked to market through stockholders’ equity, net of tax. Impairments in value below historical cost, if any, deemed to be other than temporary, would be expensed in the consolidated statement of earnings. See the Fair Value Measurements footnote in the notes to our consolidated financial statements of this Annual Report on Form 10-K for further discussion.

We are exposed to market risk as a result of our obligation to pay benefits under our nonqualified deferred compensation plan and our related investments in company-owned variable universal life insurance policies. The obligation to employees increases and decreases based on movements in the equity and debt markets. The investments in mutual funds, as part of the company-owned variable universal life insurance policies, are designed to mitigate, but not eliminate, this risk with offsetting gains and losses. 

Overall, our holdings and positions in market risk-sensitive instruments do not subject us to material risk.

39

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The financial statements and supplementary data required by this Item are set forth in the accompanying index on page 46 of this filing and are presented in pages 47-76.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES.

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures 

Based on their evaluation as of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) are effective. 

Management’s Report on Internal Control Over Financial Reporting

Management’s report on internal control over financial reporting is presented preceding the consolidated financial statements on page 47 of this report. 

Attestation Report of Independent Registered Public Accounting Firm 

PricewaterhouseCoopers LLP, independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting as of December 28, 2014, as stated in their report which appears herein. 

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during our fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  

ITEM 9B. OTHER INFORMATION.

None.

40

PART III

Information required by Part III with respect to Directors, Executive Officers and Corporate Governance (Item 10), Executive Compensation (Item 11), Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters (Item 12), Certain Relationships and Related Transactions, and Director Independence (Item 13) and Principal Accounting Fees and Services (Item 14), except as set forth under the titles "Executive Officers of the Registrant", which is included on page 41, and “Code of Business Conduct and Ethics,” which is included on page 42, (Item 10), and except as set forth under the title “Equity Compensation Plan Information,” which is included on page 42, (Item 12), is to be included in a definitive proxy statement filed not later than 120 days after the close of our fiscal year and the proxy statement, when filed, is incorporated in this report by reference.

ITEM 10. EXECUTIVE OFFICERS OF THE REGISTRANT.

Name/Office	Age	Served as an Officer Since	Business Experience During Last 5 Years
Carl T. Camden President and   Chief Executive Officer	60	1995	Served as officer of the Company.
George S. Corona Executive Vice President and   Chief Operating Officer	56	2000	Served as officer of the Company.
Patricia Little Executive Vice President and   Chief Financial Officer	54	2008	Served as officer of the Company.
Teresa S. Carroll Senior Vice President,   Global Solutions	49	2000	Served as officer of the Company.
Peter W. Quigley Senior Vice President and   General Counsel	53	2004	Served as officer of the Company.
Antonina M. Ramsey Senior Vice President	60	1992	Served as officer of the Company.
Natalia A. Shuman Senior Vice President and   General Manager,   EMEA / APAC	41	2007	Served as officer of the Company.
Olivier G. Thirot (1) Senior Vice President, Controller   and Chief Accounting Officer	53	2008	Served as officer of the Company.
Michael S. Webster (2) Executive Vice President and   General Manager, Americas	59	1996	Served as officer of the Company.

(1)    Mr. Thirot was appointed Senior Vice President, Controller and Chief Accounting Officer effective September 1, 2014.

(2)    Mr. Webster terminated employment with the Company effective December 31, 2014 and will not be replaced.

41

CODE OF BUSINESS CONDUCT AND ETHICS.

We have adopted a Code of Business Conduct and Ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer or controller or persons performing similar functions. The Code of Business Conduct and Ethics is included as Exhibit 14 in the Index to Exhibits on page 78. We have posted our Code of Business Conduct and Ethics on our website at www.kellyservices.com. We intend to post any changes in or waivers from our Code of Business Conduct and Ethics applicable to any of these officers on our website. 

ITEM 12. SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS.

Equity Compensation Plan Information

The following table shows the number of shares of our Class A common stock that may be issued upon the exercise of outstanding options, warrants and rights, the weighted-average exercise price of outstanding options, warrants and rights, and the number of securities remaining available for future issuance under our equity compensation plans as of the fiscal year end for 2014. 

	Number of securities to be issued upon exercise of outstanding options, warrants and rights	Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column) (2)
Equity compensation plans approved by security holders (1)	33,000	$	27.37	1,459,915
Equity compensation plans not approved by security holders (3)	—	—		—
Total	33,000	$	27.37	1,459,915

(1) The equity compensation plans approved by our stockholders include our Equity Incentive Plan, Non-Employee Directors Stock Option Plan and Non-Employee Directors Stock Plan. 

The number of shares to be issued upon exercise of outstanding options, warrants and rights excludes 1,192,550 of restricted stock granted to employees and not yet vested at December 28, 2014.

(2) The Equity Incentive Plan provides that the maximum number of shares available for grants, including stock options and restricted stock, is 10 percent of the outstanding Class A common stock, adjusted for plan activity over the preceding five years.

The Non-Employee Directors Stock Option Plan provides that the maximum number of shares available for settlement of options is 250,000 shares of Class A common stock.

The Non-Employee Directors Stock Plan provides that the maximum number of shares available for awards is one-quarter of one percent of the outstanding Class A common stock.

(3) We have no equity compensation plans that have not been approved by our stockholders.

42

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a) The following documents are filed as part of this report:

(1) Financial statements:

Management’s Report on Internal Control Over Financial Reporting

Report of Independent Registered Public Accounting Firm

Consolidated Statements of Earnings for the three fiscal years ended December 28, 2014

Consolidated Statements of Comprehensive Income for the three fiscal years ended December 28, 2014

Consolidated Balance Sheets at December 28, 2014 and December 29, 2013

Consolidated Statements of Stockholders' Equity for the three fiscal years ended December 28, 2014

Consolidated Statements of Cash Flows for the three fiscal years ended December 28, 2014

Notes to Consolidated Financial Statements

(2) Financial Statement Schedule -

For the three fiscal years ended December 28, 2014:

Schedule II - Valuation Reserves

All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

(3) The Exhibits are listed in the Index to Exhibits included beginning at page 77, which is incorporated herein by reference.

(b) The Index to Exhibits and required Exhibits are included following the Financial Statement Schedule beginning at page 77 of this filing.

(c) None.

43

SIGNATURES 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 12, 2015		KELLY SERVICES, INC.
		Registrant
	By	/s/ P. Little
		P. Little
		Executive Vice President and Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: February 12, 2015	*	T. E. Adderley
		T. E. Adderley
		Executive Chairman and Chairman of the Board and Director
Date: February 12, 2015	*	C. T. Camden
		C. T. Camden
		President, Chief Executive Officer and Director
		(Principal Executive Officer)
Date: February 12, 2015	*	C. M. Adderley
		C. M. Adderley
		Director
Date: February 12, 2015	*	R. S. Cubbin
		R. S. Cubbin
		Director
Date: February 12, 2015	*	J. E. Dutton
		J. E. Dutton
		Director
Date: February 12, 2015	*	T. B. Larkin
		T. B. Larkin
		Director
Date: February 12, 2015	*	C. L. Mallett, Jr.
		C. L. Mallett, Jr.
		Director
Date: February 12, 2015	*	L. A. Murphy
		L. A. Murphy
		Director
Date: February 12, 2015	*	D. R. Parfet
		D. R. Parfet
		Director
Date: February 12, 2015	*	B. J. White
		B. J. White
		Director

44

SIGNATURES (continued)

Date: February 12, 2015		/s/ P. Little
		P. Little
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
Date: February 12, 2015		/s/ O. G. Thirot
		O. G. Thirot
		Senior Vice President, Controller and Chief Accounting Officer
		(Principal Accounting Officer)
Date: February 12, 2015	*By	/s/ P. Little
		P. Little
		Attorney-in-Fact

45

KELLY SERVICES, INC. AND SUBSIDIARIES 

INDEX TO FINANCIAL STATEMENTS AND

SUPPLEMENTAL SCHEDULE

	Page Reference in Report on Form 10-K
Management’s Report on Internal Control Over Financial Reporting	47
Report of Independent Registered Public Accounting Firm	48
Consolidated Statements of Earnings for the three fiscal years ended December 28, 2014	49
Consolidated Statements of Comprehensive Income for the three fiscal years ended December 28, 2014	50
Consolidated Balance Sheets at December 28, 2014 and December 29, 2013	51
Consolidated Statements of Stockholders' Equity for the three fiscal years ended December 28, 2014	52
Consolidated Statements of Cash Flows for the three fiscal years ended December 28, 2014	53
Notes to Consolidated Financial Statements	54
Financial Statement Schedule - Schedule II - Valuation Reserves	76

46

Management’s Report on Internal Control Over Financial Reporting 

The management of Kelly Services, Inc. (the “Company”), is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

• Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company;

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may change.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of December 28, 2014. In making this assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). 

Based on our assessment, management determined that, as of December 28, 2014, the Company’s internal control over financial reporting was effective based on those criteria.

The effectiveness of the Company’s internal control over financial reporting as of December 28, 2014 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears on page 48.

47

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of Kelly Services, Inc.: 

In our opinion, the consolidated financial statements listed in the accompanying index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of Kelly Services, Inc. and its subsidiaries at December 28, 2014 and December 29, 2013, and the results of their operations and their cash flows for each of the three fiscal years in the period ended December 28, 2014 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the accompanying index under Item 15(a)(2) presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 28, 2014, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. 

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Detroit, Michigan

February 12, 2015

48

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

	2014			2013			2012
	(In millions of dollars except per share items)
Revenue from services	$	5,562.7		$	5,413.1		$	5,450.5
Cost of services	4,654.3			4,523.6			4,553.9
Gross profit	908.4			889.5			896.6
Selling, general and administrative expenses	886.5			834.5			821.2
Asset impairments	—			1.7			3.1
Earnings from operations	21.9			53.3			72.3
Other expense, net	5.3			4.5			3.5
Earnings from continuing operationsbefore taxes	16.6			48.8			68.8
Income tax (benefit) expense	(7.1		)	(10.1		)	19.1
Earnings from continuing operations	23.7			58.9			49.7
Earnings from discontinued operations, net of tax	—			—			0.4
Net earnings	$	23.7		$	58.9		$	50.1
Basic earnings per share
Earnings from continuing operations	$	0.61		$	1.54		$	1.31
Earnings from discontinued operations	—			—			0.01
Net earnings	$	0.61		$	1.54		$	1.32
Diluted earnings per share
Earnings from continuing operations	$	0.61		$	1.54		$	1.31
Earnings from discontinued operations	—			—			0.01
Net earnings	$	0.61		$	1.54		$	1.32
Dividends per share	$	0.20		$	0.20		$	0.20
Average shares outstanding (millions):
Basic	37.5			37.3			37.0
Diluted	37.5			37.3			37.0

See accompanying Notes to Consolidated Financial Statements.

49

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	2014			2013			2012
	(In millions of dollars)
Net earnings	$	23.7		$	58.9		$	50.1
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0.6 million and tax benefit of $0.0 million and $0.4 million, respectively	(20.2		)	(6.7		)	4.9
Less: Reclassification adjustments included in net earnings	(0.9		)	(0.1		)	0.7
Foreign currency translation adjustments	(21.1		)	(6.8		)	5.6
Unrealized gains on investment, net of tax expense of $8.2 million, $16.2 million and $0.0 million, respectively	11.5			31.2			13.1
Pension liability adjustments, net of tax expense of $0.0 million, $0.2 million and $0.0 million, respectively	(0.8		)	1.4			0.3
Less: Reclassification adjustments included in net earnings	0.1			0.2			0.2
Pension liability adjustments	(0.7		)	1.6			0.5
Other comprehensive (loss) income	(10.3		)	26.0			19.2
Comprehensive Income	$	13.4		$	84.9		$	69.3

See accompanying Notes to Consolidated Financial Statements.

50

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	2014			2013
	(In millions of dollars)
ASSETS
Current Assets:
Cash and equivalents	$	83.1		$	125.7
Trade accounts receivable, less allowances of $10.7 million and $9.9 million, respectively	1,122.8			1,023.1
Prepaid expenses and other current assets	47.9			52.2
Deferred taxes	34.4			35.5
Total current assets	1,288.2			1,236.5
Property and Equipment:
Property and equipment	360.0			350.5
Accumulated depreciation	(267.0		)	(258.5		)
Net property and equipment	93.0			92.0
Noncurrent Deferred Taxes	146.3			121.7
Goodwill, Net	90.3			90.3
Other Assets	300.1			258.1
Total Assets	$	1,917.9		$	1,798.6
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings	$	91.9		$	28.3
Accounts payable and accrued liabilities	364.0			342.4
Accrued payroll and related taxes	308.5			294.9
Accrued insurance	26.9			27.6
Income and other taxes	68.8			68.8
Total current liabilities	860.1			762.0
Noncurrent Liabilities:
Accrued insurance	43.9			46.0
Accrued retirement benefits	140.8			134.7
Other long-term liabilities	39.4			33.3
Total noncurrent liabilities	224.1			214.0
Commitments and contingencies (See Commitments and Contingencies footnotes)
Stockholders' Equity:
Capital stock, $1.00 par value
Class A common stock, shares issued 36.6 million at 2014 and 2013	36.6			36.6
Class B common stock, shares issued 3.5 million at 2014 and 2013	3.5			3.5
Treasury stock, at cost
Class A common stock, 2.4 million shares at 2014 and 2.7 million at 2013	(49.2		)	(55.6		)
Class B common stock	(0.6		)	(0.6		)
Paid-in capital	24.9			26.0
Earnings invested in the business	767.4			751.3
Accumulated other comprehensive income	51.1			61.4
Total stockholders' equity	833.7			822.6
Total Liabilities and Stockholders' Equity	$	1,917.9		$	1,798.6

See accompanying Notes to Consolidated Financial Statements.

51

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

	2014			2013			2012
	(In millions of dollars)
Capital Stock
Class A common stock
Balance at beginning of year	$	36.6		$	36.6		$	36.6
Conversions from Class B	—			—			—
Balance at end of year	36.6			36.6			36.6
Class B common stock
Balance at beginning of year	3.5			3.5			3.5
Conversions to Class A	—			—			—
Balance at end of year	3.5			3.5			3.5
Treasury Stock
Class A common stock
Balance at beginning of year	(55.6		)	(61.0		)	(66.3		)
Issuance of restricted stock and other	6.4			5.4			5.3
Balance at end of year	(49.2		)	(55.6		)	(61.0		)
Class B common stock
Balance at beginning of year	(0.6		)	(0.6		)	(0.6		)
Issuance of restricted stock and other	—			—			—
Balance at end of year	(0.6		)	(0.6		)	(0.6		)
Paid-in Capital
Balance at beginning of year	26.0			27.1			28.8
Issuance of restricted stock and other	(1.1		)	(1.1		)	(1.7		)
Balance at end of year	24.9			26.0			27.1
Earnings Invested in the Business
Balance at beginning of year	751.3			700.0			657.5
Net earnings	23.7			58.9			50.1
Dividends	(7.6		)	(7.6		)	(7.6		)
Balance at end of year	767.4			751.3			700.0
Accumulated Other Comprehensive Income
Balance at beginning of year	61.4			35.4			16.2
Other comprehensive income, net of tax	(10.3		)	26.0			19.2
Balance at end of year	51.1			61.4			35.4
Stockholders' Equity at end of year	$	833.7		$	822.6		$	741.0

See accompanying Notes to Consolidated Financial Statements.

52

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	2014			2013			2012
	(In millions of dollars)
Cash flows from operating activities:
Net earnings	$	23.7		$	58.9		$	50.1
Noncash adjustments:
Impairment of assets	—			1.7			3.1
Depreciation and amortization	21.7			20.4			22.3
Provision for bad debts	5.3			2.0			1.1
Stock-based compensation	5.3			3.8			4.8
Deferred income taxes	(26.8		)	(31.3		)	4.7
Other, net	(2.2		)	0.6			1.3
Changes in operating assets and liabilities	(97.0		)	59.2			(26.3		)
Net cash (used in) from operating activities	(70.0		)	115.3			61.1
Cash flows from investing activities:
Capital expenditures	(21.7		)	(20.0		)	(21.5		)
Investment in equity affiliate	(5.7		)	—			(6.6		)
Other investing activities	0.2			(0.8		)	—
Net cash used in investing activities	(27.2		)	(20.8		)	(28.1		)
Cash flows from financing activities:
Net change in short-term borrowings	63.9			(35.8		)	(31.9		)
Dividend payments	(7.6		)	(7.6		)	(7.6		)
Other financing activities	0.3			(0.3		)	0.1
Net cash from (used in) financing activities	56.6			(43.7		)	(39.4		)
Effect of exchange rates on cash and equivalents	(2.0		)	(1.4		)	1.7
Net change in cash and equivalents	(42.6		)	49.4			(4.7		)
Cash and equivalents at beginning of year	125.7			76.3			81.0
Cash and equivalents at end of year	$	83.1		$	125.7		$	76.3

See accompanying Notes to Consolidated Financial Statements.

53

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies 

Nature of Operations Kelly Services, Inc. is a global workforce solutions provider operating throughout the world.

Fiscal Year The Company’s fiscal year ends on the Sunday nearest to December 31. The three most recent years ended on December 28, 2014 (2014), December 29, 2013 (2013) and December 30, 2012 (2012), all of which contained 52 weeks. The Company’s operations in Brazil are accounted for on a one-month lag. The Company’s equity investment in TS Kelly Workforce Solutions is accounted for on a one-quarter lag (see Investment in Equity Affiliate footnote). Any material transactions in the intervening period are disclosed or accounted for in the current reporting period. Period costs included in selling, general and administrative (“SG&A”) expenses are recorded on a calendar-year basis. 

Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. 

Available-For-Sale Investment The Company’s available-for-sale investment, as further described in the Fair Value Measurements footnote, is carried at fair value with the unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Realized losses and declines in value below cost judged to be other-than-temporary are included as a component of asset impairments expense in the consolidated statement of earnings. The fair value of the available-for-sale investment is based on quoted market prices. 

Foreign Currency Translation All of the Company’s international subsidiaries use their local currency as their functional currency. Revenue and expense accounts of foreign subsidiaries are translated to U.S. dollars at average exchange rates, while assets and liabilities are translated to U.S. dollars at year-end exchange rates. Resulting translation adjustments, net of tax, where applicable, are reported as accumulated foreign currency translation adjustments in stockholders’ equity and are recorded as a component of accumulated other comprehensive income. 

Revenue Recognition Revenue from services is recognized as services are provided by the temporary or contract employees. Revenue from permanent placement services is recognized at the time the permanent placement candidate begins full-time employment. Revenue from other staffing fee-based consulting services is recognized when the services are provided. Provisions for sales allowances (billing adjustments related to errors, service issues and compromises on billing disputes), based on historical experience, are recognized at the time the related sale is recognized as a reduction in revenue from services. 

Allowance for Uncollectible Accounts Receivable The Company records an allowance for uncollectible accounts receivable based on historical loss experience, customer payment patterns and current economic trends. The reserve for sales allowances, as discussed above, is also included in the allowance for uncollectible accounts receivable. The Company reviews the adequacy of the allowance for uncollectible accounts receivable on a quarterly basis and, if necessary, increases or decreases the balance by recording a charge or credit to SG&A expenses for the portion of the adjustment relating to uncollectible accounts receivable, and a charge or credit to revenue from services for the portion of the adjustment relating to sales allowances.

Cost of Services 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 associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay, 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. 

Advertising Expenses Advertising expenses from continuing operations, which are expensed as incurred and are included in SG&A expenses, were $9.7 million in 2014, $8.9 million in 2013 and $8.5 million in 2012.

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the accounting for the allowance for uncollectible accounts receivable, workers’ compensation, goodwill and long-lived asset impairment, litigation costs and income taxes. Actual results could differ materially from those estimates.

Cash and Equivalents Cash and equivalents are stated at fair value. The Company considers securities with original maturities of three months or less to be cash and equivalents. 

Property and Equipment Property and equipment are stated at cost and are depreciated on a straight-line basis over their estimated useful lives. Cost and estimated useful lives of property and equipment by function are as follows:

54

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Category	2014		2013		Life
	(In millions of dollars)
Land	$	3.8	$	3.8		—
Work in process	6.9		4.4			—
Buildings and improvements	59.7		58.9		15	to	45 years
Computer hardware and software	221.7		215.7		3	to	12 years
Equipment, furniture and fixtures	34.1		33.6			5	years
Leasehold improvements	33.8		34.1		The lesser of the life of the lease or 5 years.
Total property and equipment	$	360.0	$	350.5

The Company capitalizes external costs and internal payroll costs directly incurred in the development of software for internal use as required by the Internal-Use Software Subtopic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Work in process represents capitalized costs for internal use software not yet in service. Depreciation expense was $20.3 million for 2014, $18.4 million for 2013 and $19.0 million for 2012.

Operating Leases The Company recognizes rent expense on a straight-line basis over the lease term. This includes the impact of both scheduled rent increases and free or reduced rents (commonly referred to as “rent holidays”). The Company records allowances provided by landlords for leasehold improvements as deferred rent in the consolidated balance sheet and as operating cash flows in the consolidated statements of cash flows.

Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Purchased intangible assets with definite lives are recorded at estimated fair value at the date of acquisition and are amortized over their respective useful lives (from 3 to 15 years) on a straight-line basis or, if appropriate, on an accelerated basis commensurate with the related cash flows.

Impairment of Long-Lived Assets and Intangible Assets The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When estimated undiscounted future cash flows will not be sufficient to recover the asset group’s carrying amount, in which the long-lived asset being tested for impairment resides, the asset is written down to its estimated fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or estimated fair value less cost to sell.

We test goodwill for impairment at the reporting unit level annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. We have determined that our reporting units are the same as our operating and reportable segments based on our organizational structure and the financial information that is provided to and reviewed by management. We may use a qualitative assessment for one or more reporting units for the annual goodwill impairment test if we have determined that it is more likely than not that the fair value of the reporting unit(s) is more than their carrying value.

For reporting units where the qualitative assessment is not used, goodwill is tested for impairment using a two-step process. In the first step, the estimated fair value of a reporting unit is compared to its carrying value. If the estimated fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is not considered impaired and no further testing is required.

If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of a reporting unit, a second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference.

Accounts Payable Included in accounts payable are outstanding checks in excess of funds on deposit. Such amounts totaled $28.7 million and $22.7 million at year-end 2014 and 2013, respectively. 

Accrued Payroll and Related Taxes Included in accrued payroll and related taxes are outstanding checks in excess of funds on deposit. Such amounts totaled $6.7 million and $4.0 million at year-end 2014 and 2013, respectively. Payroll taxes for temporary employees are recognized proportionately to direct wages for interim periods based on expected full-year amounts. 

55

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Income Taxes The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. 

The U.S. work opportunity credit is allowed for wages earned by employees in certain targeted groups. The actual amount of creditable wages in a particular period is estimated, since the credit is only available once an employee reaches a minimum employment period and the employee’s inclusion in a targeted group is certified by the applicable state. As these events often occur after the period the wages are earned, judgment is required in determining the amount of work opportunity credits accrued for in each period. We evaluate the accrual regularly throughout the year and make adjustments as needed.

Uncertain tax positions that are taken or expected to be taken in a tax return are recognized in the financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. 

Interest and penalties related to income taxes are accounted for as income tax expense. 

Stock-Based Compensation The Company may grant restricted stock awards and units (collectively, “restricted stock”), stock options (both incentive and nonqualified), stock appreciation rights and performance awards to key employees associated with the Company’s Class A stock. The Company utilizes the market price on the date of grant as the fair value for restricted stock and estimates the fair value of stock option awards on the date of grant using an option-pricing model. The value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods in SG&A expense in the Company’s consolidated statements of earnings. 

Earnings Per Share Restricted stock that entitle their holders to receive nonforfeitable dividends before vesting are considered participating securities and, therefore, are included in the calculation of earnings per share using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under this method, earnings from continuing operations (or net earnings) is reduced by the amount of dividends declared, and the remaining undistributed earnings is allocated to common stock and participating securities based on the proportion of each class’s weighted average shares outstanding to the total weighted average shares outstanding. The calculation of diluted earnings per share includes the effect of potential common shares outstanding in the average weighted shares outstanding.

Workers’ Compensation The Company establishes accruals for workers’ compensation claims utilizing actuarial methods to estimate the undiscounted future cash payments that will be made to satisfy the claims. The estimates are based both on historical experience as well as current legal, economic and regulatory factors. When claims exceed the applicable loss limit or self-insured retention and realization of recovery of the claim from existing insurance policies is deemed probable, the Company records a receivable from the insurance company for the excess amount. The receivable is included in prepaid expenses and other current assets and other assets in the consolidated balance sheet at year end. The Company regularly updates its estimates, and the ultimate cost of these claims may be greater than or less than the established accrual.

2. Fair Value Measurements 

Trade accounts receivable, accounts payable, accrued liabilities, accrued payroll and related taxes and short-term borrowings approximate their fair values due to the short-term maturities of these assets and liabilities. 

Assets Measured at Fair Value on a Recurring Basis

The following tables present the assets carried at fair value as of year-end 2014 and 2013 on the consolidated balance sheet by fair value hierarchy level, as described below. 

Level 1 measurements consist of unadjusted quoted prices in active markets for identical assets or liabilities.  Level 2 measurements include quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 3 measurements include significant unobservable inputs. 

56

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

	Fair Value Measurements on a Recurring Basis As of Year-End 2014
Description	Total		Level 1		Level 2		Level 3
	(In millions of dollars)
Money market funds	$	3.3	$	3.3	$	—	$	—
Available-for-sale investment	97.9		97.9		—		—
Total assets at fair value	$	101.2	$	101.2	$	—	$	—

	Fair Value Measurements on a Recurring Basis As of Year-End 2013
Description	Total		Level 1		Level 2		Level 3
	(In millions of dollars)
Money market funds	$	2.9	$	2.9	$	—	$	—
Available-for-sale investment	80.7		80.7		—		—
Total assets at fair value	$	83.6	$	83.6	$	—	$	—

Money market funds as of year-end 2014 and 2013 represent investments in money market accounts, all of which are restricted as to use and are included in other assets on the consolidated balance sheet as of year-end 2014 and 2013. The valuations were based on quoted market prices of those accounts as of the respective period end. 

Available-for-sale investment represents the Company’s investment in Temp Holdings Co., Ltd. (“Temp Holdings”) and is included in other assets on the consolidated balance sheet. The valuation is based on the quoted market price of Temp Holdings stock on the Tokyo Stock Exchange as of the period end. The unrealized gain, net of tax, of $11.5 million for the year ended 2014 and $30.1 million for the year ended 2013 were recorded in other comprehensive income, as well as in accumulated other comprehensive income, a component of stockholders’ equity. The cost of this yen-denominated investment, which fluctuates based on foreign exchange rates, was $17.2 million at year-end 2014 and $19.7 million at year-end 2013.

Assets Measured at Fair Value on a Nonrecurring Basis

We completed our annual impairment test for all reporting units in the fourth quarter for the fiscal years ended 2014 and 2013 and determined that goodwill was not impaired. 

In 2014, we elected to complete a step one quantitative test for all of our reporting units with goodwill. In 2013, we completed a step one quantitative test for the Americas Commercial and Americas PT reporting units. For both years, the estimated fair value of each reporting unit tested exceeded its related carrying value. In 2013, we completed a qualitative assessment for the annual goodwill impairment test for the OCG and APAC PT reporting units. As a result of these qualitative assessments, we determined it was more likely than not that the fair value of each of the reporting units was more than its carrying value.

During the second quarter of 2013, a triggering event for the evaluation of certain long-lived assets for impairment occurred as the Company made the decision to exit the executive search business operating in an asset group within Germany that was associated with the OCG business segment. Based on the Company’s estimates as of the 2013 second quarter end, a $1.7 million reduction in the carrying value of OCG intangible assets was recorded. The resulting expense was recorded in the asset impairments line on the consolidated statement of earnings. 

3. Restructuring

On September 15, 2014, the Board of Directors of the Company approved a management simplification restructuring plan (“Plan”) that was subsequently communicated to Kelly personnel in October 2014. The Plan was completed during the fourth quarter of 2014.

We began 2014 with a firm commitment to growth and a clear plan for accelerating Kelly’s strategic priorities through significant investments in our PT specialties, our OCG practices and our centralized approach to servicing large customers. We have executed these investments on schedule, and the Plan now brings additional efficiency to our operating models across the organization by:

57

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

• In the Americas segment, we have:

◦ Streamlined our local U.S. field operations through the closure or consolidation of 52 branches.

◦ Simplified our centralized large account delivery structure.

◦ Flattened our U.S. management structure.

• In OCG, we have aligned resources more efficiently against areas that deliver rapid growth and return on investment.

• We downsized our headquarters operations.

Headcount reduction related to the above actions totaled 112 permanent positions across our global workforce, including several senior leadership positions that were vacated at the end of December 2014. The headcount reduction related to the Americas segment was 40 positions recognized as contract termination costs, OCG headcount was reduced by 8 positions, also recognized as contract termination costs, and corporate headquarters was reduced by 64 positions, 53 of which were recognized as a one-time benefit and 11 of which were recognized as contract termination costs. These costs were recorded entirely in corporate SG&A expenses.

In addition to the Plan, in 2014, restructuring costs were incurred related primarily to exiting the staffing business in Sweden, exiting branches in Australia and consolidating back office functions in Australia and New Zealand. These were contract termination costs which were recorded in the EMEA and APAC regions in the segment footnote.

Restructuring costs incurred in 2014 totaled $12.0 million as detailed below.

	Severance Costs		Lease Termination Costs		Total
	(In millions of dollars)
Americas	$	1.7	$	2.3	$	4.0
OCG	1.3		—		1.3
Headquarters	4.6		—		4.6
Plan total	7.6		2.3		9.9
EMEA and APAC restructuring	0.9		1.2		2.1
Total restructuring	$	8.5	$	3.5	$	12.0

A summary of our global restructuring balance sheet accrual, primarily included in accrued payroll and related taxes, is detailed below (in millions of dollars). Restructuring activities in 2013 and the related year-end accrual were immaterial.

Balance as of year-end 2013	$	—
Additions charged to corporate under the Plan	9.9
Additions charged to EMEA and APAC operations	2.1
Reductions for cash payments related to all restructuring activities	(5.1		)
Balance as of year-end 2014	$	6.9

The remaining balance of $6.9 million as of year-end 2014 represents primarily severance costs and the majority is expected to be paid in 2015. No additional charges are expected to be incurred related to the Plan or to activities in Sweden, Australia and New Zealand.

4. Investment in Equity Affiliate

In 2012, we purchased the remaining 30% noncontrolling interest in our China subsidiaries, and recorded a charge to paid-in capital of $1.2 million for the difference between the carrying value of the noncontrolling interest and the fair value of the consideration provided. 

On July 24, 2012, we entered into an agreement with Temp Holdings to form a venture, TS Kelly Workforce Solutions (“TS Kelly”), in order to expand both companies’ presence in North Asia. On November 1, 2012, we contributed our China, Hong Kong and South Korea subsidiaries in exchange for a 49% ownership interest in TS Kelly. Consequently, we deconsolidated the operations of those entities and recorded a $5.1 million investment in other assets on the consolidated balance sheet, which

58

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

represented the estimated fair value of our ownership interest in TS Kelly at year-end 2012. The operating results of our interest in TS Kelly are accounted for on a one-quarter lag under the equity method; accordingly, our consolidated financial statements include operating results for TS Kelly beginning in 2013. Our 49% share of TS Kelly’s operating results is recorded in other expense, net in the consolidated statement of earnings (see Other Expense, Net footnote). 

In 2012, we recorded a loss of $0.7 million in other expense, net, which represented the difference between the carrying value of net assets contributed to the venture and the fair value of our retained investment in TS Kelly. As part of this transaction, we allocated a pro-rata share of goodwill related to the contributed entities in our APAC PT and OCG segments amounting to $0.6 million. 

The total investment in TS Kelly was $9.6 million as of year-end 2014 and $3.8 million as of year-end 2013. In 2014, we made net cash contributions and loans to TS Kelly totaling $5.7 million, which includes $4.8 million for the acquisition of a China-based staffing company. In 2013, we made a loan to TS Kelly of $1.4 million. The amount due to or due from TS Kelly was immaterial as of year-end 2014 and 2013.

5. Goodwill

The changes in the net carrying amount of goodwill for the fiscal years 2014 and 2013 are included in the tables below. Effective with the first quarter of 2014, the project-based legal services business in the Americas PT segment was reclassified to the OCG segment. Accordingly, the related portion of Americas PT goodwill was reclassified to OCG during the first quarter of 2014. Adjustments to Americas Commercial goodwill in 2013 represent acquisition adjustments related to changes in estimated tax liabilities assumed for the 2011 purchase of Brazilian operations.

	As of Year-End 2013								As of Year-End 2014
	Goodwill, Gross		Accumulated Impairment Losses			Adjustments to Goodwill			Goodwill, Gross		Accumulated Impairment Losses			Goodwill, Net
	(In millions of dollars)
Americas
Americas Commercial	$	40.0	$	(16.4	)	$	—		$	40.0	$	(16.4	)	$	23.6
Americas PT	39.2		—			(1.3		)	37.9		—			37.9
Total Americas	79.2		(16.4		)	(1.3		)	77.9		(16.4		)	61.5
EMEA
EMEA Commercial	50.4		(50.4		)	—			50.4		(50.4		)	—
EMEA PT	22.0		(22.0		)	—			22.0		(22.0		)	—
Total EMEA	72.4		(72.4		)	—			72.4		(72.4		)	—
APAC
APAC Commercial	12.1		(12.1		)	—			12.1		(12.1		)	—
APAC PT	1.4		—			—			1.4		—			1.4
Total APAC	13.5		(12.1		)	—			13.5		(12.1		)	1.4
OCG	26.1		—			1.3			27.4		—			27.4
Consolidated Total	$	191.2	$	(100.9	)	$	—		$	191.2	$	(100.9	)	$	90.3

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	As of Year-End 2012							As of Year-End 2013
	Goodwill, Gross		Accumulated Impairment Losses			Adjustments to Goodwill		Goodwill, Gross		Accumulated Impairment Losses			Goodwill, Net
	(In millions of dollars)
Americas
Americas Commercial	$	39.2	$	(16.4	)	$	0.8	$	40.0	$	(16.4	)	$	23.6
Americas PT	39.2		—			—		39.2		—			39.2
Total Americas	78.4		(16.4		)	0.8		79.2		(16.4		)	62.8
EMEA
EMEA Commercial	50.4		(50.4		)	—		50.4		(50.4		)	—
EMEA PT	22.0		(22.0		)	—		22.0		(22.0		)	—
Total EMEA	72.4		(72.4		)	—		72.4		(72.4		)	—
APAC
APAC Commercial	12.1		(12.1		)	—		12.1		(12.1		)	—
APAC PT	1.4		—			—		1.4		—			1.4
Total APAC	13.5		(12.1		)	—		13.5		(12.1		)	1.4
OCG	26.1		—			—		26.1		—			26.1
Consolidated Total	$	190.4	$	(100.9	)	$	0.8	$	191.2	$	(100.9	)	$	90.3

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Other Assets

Included in other assets are the following:

	2014		2013
	(In millions of dollars)
Deferred compensation plan (see Retirement Benefits footnote)	$	149.0	$	134.0
Available-for-sale investment (see Fair Value Measurements footnote)	97.9		80.7
Workers’ compensation receivable	11.5		13.4
Wage credit receivable	13.6		6.1
Intangibles, net of accumulated amortization of $17.8 million in 2014 and $17.7 million in 2013	2.7		4.3
Investment in equity affiliate (see Investment in Equity Affiliate footnote)	9.6		3.8
Other	15.8		15.8
Other assets	$	300.1	$	258.1

Intangible amortization expense, which is included in SG&A expenses, was $1.4 million, $2.0 million and $3.3 million in 2014, 2013 and 2012, respectively. Wage credit receivable is related to a tax law to enhance the competitiveness of businesses in France.

7. Debt

Short-Term Debt

The Company has a $200.0 million revolving credit facility (the "Facility") with a termination date of December 11, 2018. The Facility allows for borrowings in various currencies and is used to fund working capital, acquisitions, and general corporate needs.

At year-end 2014, borrowings under the Facility were $0.4 million with an interest rate of 3.75%, and the Facility had a remaining capacity of $199.6 million. At year-end 2013, there were no borrowings under the Facility and the remaining borrowing capacity was $200.0 million. To maintain availability of the funds, we pay a facility fee on the full amount of the Facility, regardless of usage. The facility fee varies based on the Company’s leverage ratio as defined in the agreement. At year-end 2014 and 2013, the Facility had a facility fee of 25 basis points. The Facility’s financial covenants and restrictions are described below, all of which were met at year-end 2014:

• We must maintain a certain minimum ratio of earnings before interest, taxes, depreciation, amortization and certain cash and non-cash charges that are non-recurring in nature (“EBITDA”) to interest expense (“Interest Coverage Ratio”) as of the end of any fiscal quarter.

• We must maintain a certain maximum ratio of total indebtedness to the sum of net worth and total indebtedness at all times.

• Dividends, stock buybacks and similar transactions are limited to certain maximum amounts.

• We must adhere to other operating restrictions relating to the conduct of business, such as certain limitations on asset sales and the type and scope of investments. 

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KELLY SERVICES, INC. AND SUBSIDIARIES

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The Company has a Receivables Purchase Agreement with Kelly Receivables Funding, LLC, a wholly owned bankruptcy remote special purpose subsidiary of the Company (the “Receivables Entity”), related to its $150 million, three-year, securitization facility (“Securitization Facility”). The Receivables Purchase Agreement will terminate December 9, 2016, unless terminated earlier pursuant to its terms.

Under the Securitization Facility, the Company will sell certain trade receivables and related rights (“Receivables”), on a revolving basis, to the Receivables Entity. The Receivables Entity may from time to time sell an undivided variable percentage ownership interest in the Receivables. The Securitization Facility also allows for the issuance of standby letters of credit (“SBLC”). The Securitization Facility contains a cross-default clause that could result in termination if defaults occur under our other loan agreements. The Securitization Facility also contains certain restrictions based on the performance of the Receivables. 

As of year-end 2014, the Securitization Facility carried $88.0 million of short-term borrowings at a rate of 0.57%, SBLCs of $54.5 million related to workers’ compensation at a rate of 0.40% and a remaining capacity of $7.5 million. As of year-end 2013, the Securitization Facility carried $28.0 million of short-term borrowings at a rate of 0.57%, SBLCs of $55.0 million related to workers’ compensation at a rate of 0.40% and a remaining capacity of $67.0 million. The rates above for short-term borrowings include the LIBOR interest rate and a utilization rate on the amount of our borrowings. The rates for the SBLCs represent a utilization rate on the outstanding amount of the SBLCs. In addition, we pay a facility fee of 40 basis points on the full amount of the Securitization Facility, regardless of usage.

The Receivables Entity’s sole business consists of the purchase or acceptance through capital contributions of trade accounts receivable and related rights from the Company. As described above, the Receivables Entity may retransfer these receivables or grant a security interest in those receivables under the terms and conditions of the Receivables Purchase Agreement. The Receivables Entity is a separate legal entity with its own creditors who would be entitled, if it were ever liquidated, to be satisfied out of its assets prior to any assets or value in the Receivables Entity becoming available to its equity holders. The assets of the Receivables Entity are not available to pay creditors of the Company or any of its other subsidiaries. The assets and liabilities of the Receivables Entity are included in the consolidated financial statements of the Company. 

The Company had total unsecured, uncommitted short-term local credit facilities of $15.5 million as of year-end 2014. Borrowings under these lines totaled $3.5 million and $0.3 million at year-end 2014 and 2013, respectively. The interest rate for these borrowings was 2.50% at year-end 2014 and 10.75% at year-end 2013.

8. Retirement Benefits

The Company provides a qualified defined contribution plan covering substantially all U.S.-based full-time employees, except officers and certain other employees. Upon approval by the Board of Directors, a discretionary contribution based on eligible wages may be funded annually. The plan also offers a savings feature with Company matching contributions. Assets of this plan are held by an independent trustee for the sole benefit of participating employees. 

A nonqualified plan is provided for officers and certain other employees. Upon approval by the Board of Directors, a discretionary contribution based on eligible wages may be made annually. This plan also includes provisions for salary deferrals and Company matching contributions. 

Effective January 1, 2015, the Board of Directors approved amendments to the qualified and unqualified defined contribution plans to increase Company matching contributions and eliminate the discretionary contributions.

In addition to the plans above, the Company also provides a qualified plan and a nonqualified plan to certain U.S.-based temporary employees. 

The liability for the nonqualified plans was $147.3 million and $135.6 million as of year-end 2014 and 2013, respectively, and is included in current accrued payroll and related taxes and noncurrent accrued retirement benefits. The cost of participants’ earnings on this liability, which were included in SG&A expenses, were earnings of $7.6 million in 2014, $15.7 million in 2013 and $10.2 million in 2012. In connection with the administration of these plans, the Company has purchased company-owned variable universal life insurance policies insuring the lives of certain officers and key employees. The cash surrender value of these policies, which is based primarily on investments in mutual funds and can only be used for payment of the Company’s obligations related to the non-qualified deferred compensation plan noted above, was $149.0 million and $134.0 million at year-end 2014 and 2013, respectively. The cash surrender value of these insurance policies is included in other assets. Tax-free earnings on these assets, which were included in SG&A expenses, were $7.3 million in 2014, $17.4 million in 2013 and $10.3 million in 2012. 

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KELLY SERVICES, INC. AND SUBSIDIARIES

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The net expense for retirement benefits for the qualified and nonqualified plans, including Company matching and discretionary contributions for full-time employees, totaled $6.1 million in 2014, $6.2 million in 2013 and $9.7 million in 2012. The expense related to retirement plan contributions for temporary employees is reimbursed by our customers. 

In addition, the Company also has several defined benefit pension plans in locations outside of the United States. The total projected benefit obligation, assets and unfunded liability for these plans as of year-end 2014 were $14.8 million, $9.5 million and $5.3 million, respectively. The total projected benefit obligation, assets and unfunded liability for these plans as of year-end 2013 were $13.7 million, $9.2 million and $4.5 million, respectively. Total pension expense for these plans was $0.9 million, $0.7 million and $1.1 million in 2014, 2013 and 2012, respectively. Pension contributions and the amount of accumulated other comprehensive income expected to be recognized in 2015 are not significant.

9. Stockholders’ Equity

Common Stock

The authorized capital stock of the Company is 100,000,000 shares of Class A common stock and 10,000,000 shares of Class B common stock. Class A shares have no voting rights and are not convertible. Class B shares have voting rights and are convertible by the holder into Class A shares on a share-for-share basis at any time. Both classes of stock have identical rights in the event of liquidation. 

Class A shares and Class B shares are both entitled to receive dividends, subject to the limitation that no cash dividend on the Class B shares may be declared unless the Board of Directors declares an equal or larger cash dividend on the Class A shares. As a result, a cash dividend may be declared on the Class A shares without declaring a cash dividend on the Class B shares. 

During 2014, 2013 and 2012, the Company made dividend payments totaling $7.6 million in each year.

Accumulated Other Comprehensive Income

The changes in accumulated other comprehensive income by component, net of tax, during 2014 and 2013 are included in the table below. Amounts in parentheses indicate debits.

	Foreign Currency Translation Adjustments				Unrealized Gains and Losses on Investment		Pension Liability Adjustments				Total
	(In millions of dollars)
Balance at year-end 2013	$	18.1			$	44.8	$	(1.5	)		$	61.4
Other comprehensive income (loss) before reclassifications	(20.2		)		11.5		(0.8		)		(9.5		)
Amounts reclassified from accumulated other comprehensive income	(0.9		)	(1)	—		0.1			(2)	(0.8		)
Net current-period other comprehensive income	(21.1		)		11.5		(0.7		)		(10.3		)
Balance at year-end 2014	$	(3.0	)		$	56.3	$	(2.2	)		$	51.1

(1) Amount was recorded in the other expense, net line item in the consolidated statement of earnings.

(2) Amount was recorded in the SG&A expenses line item in the consolidated statement of earnings.

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KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

	Foreign Currency Translation Adjustments				Unrealized Gains and Losses on Investment			Pension Liability Adjustments				Total
	(In millions of dollars)
Balance at year-end 2012	$	24.9			$	13.6		$	(3.1	)		$	35.4
Other comprehensive income (loss) before reclassifications	(6.7		)		31.2		(3)	1.4				25.9
Amounts reclassified from accumulated other comprehensive income	(0.1		)	(1)	—			0.2			(2)	0.1
Net current-period other comprehensive income	(6.8		)		31.2			1.6				26.0
Balance at year-end 2013	$	18.1			$	44.8		$	(1.5	)		$	61.4

(1) Amount was recorded in the other expense, net line item in the consolidated statement of earnings.

(2) Amount was recorded in the SG&A expenses line item in the consolidated statement of earnings.

(3) Includes utilization of a $1.1 million income tax valuation allowance relating to the Temp Holdings investment.

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KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

10. Earnings Per Share

The reconciliation of basic earnings per share on common stock for the year-end 2014, 2013 and 2012 follows (in millions of dollars except per share data).

	2014			2013			2012
Earnings from continuing operations	$	23.7		$	58.9		$	49.7
Less: Earnings allocated to participating securities	(0.7		)	(1.5		)	(1.3		)
Earnings from continuing operations available to common shareholders	$	23.0		$	57.4		$	48.4
Earnings from discontinued operations	$	—		$	—		$	0.4
Less: Earnings allocated to participating securities	—			—			—
Earnings from discontinued operations available to common shareholders	$	—		$	—		$	0.4
Net earnings	$	23.7		$	58.9		$	50.1
Less: Earnings allocated to participating securities	(0.7		)	(1.5		)	(1.3		)
Net earnings available to common shareholders	$	23.0		$	57.4		$	48.8
Basic earnings per share on common stock:
Earnings from continuing operations	$	0.61		$	1.54		$	1.31
Earnings from discontinued operations	$	—		$	—		$	0.01
Net earnings	$	0.61		$	1.54		$	1.32
Diluted earnings per share on common stock:
Earnings from continuing operations	$	0.61		$	1.54		$	1.31
Earnings from discontinued operations	$	—		$	—		$	0.01
Net earnings	$	0.61		$	1.54		$	1.32
Average common shares outstanding (millions)
Basic	37.5			37.3			37.0
Diluted	37.5			37.3			37.0

Due to the fact that there were no potentially dilutive common shares outstanding during the period, the computations of basic and diluted earnings per share on common stock are the same for 2014, 2013 and 2012. Stock options representing 0.1 million, 0.3 million and 0.4 million shares for 2014, 2013 and 2012, respectively, were excluded from the computation of diluted earnings (loss) per share due to their anti-dilutive effect. 

We have presented earnings per share for our two classes of common stock on a combined basis. This presentation is consistent with the earnings per share computations that result for each class of common stock utilizing the two-class method as described in ASC Topic 260, “Earnings Per Share”. The two-class method is an earnings allocation formula which determines earnings per share for each class of common stock according to the dividends declared (or accumulated) and participation rights in the undistributed earnings. 

In applying the two class method, we have determined that the undistributed earnings should be allocated to each class on a pro rata basis after consideration of all of the participation rights of the Class B shares (including voting and conversion rights) and our history of paying dividends equally to each class of common stock on a per share basis.

The Company’s Restated Certificate of Incorporation allows the Board of Directors to declare a cash dividend to Class A shares without declaring equal dividends to the Class B shares. Class B shares’ voting and conversion rights, however, effectively allow the Class B shares to participate in dividends equally with Class A shares on a per share basis. 

The Class B shares are the only shares with voting rights. The Class B shareholders are therefore able to exercise voting control with respect to all matters requiring stockholder approval, including the election of or removal of directors. The Board of

65

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Directors has historically declared and the Company historically has paid equal per share dividends on both the Class A and Class B shares. Each class has participated equally in all dividends declared since 1987.

In addition, Class B shares are convertible, at the option of the holder, into Class A shares on a one for one basis. As a result, Class B shares can participate equally in any dividends declared on the Class A shares by exercising their conversion rights. 

11. Stock-Based Compensation

Under the Equity Incentive Plan (the “Plan”), the Company may grant stock options (both incentive and nonqualified), stock appreciation rights, restricted stock and performance awards to key employees associated with the Company’s Class A stock. The Plan provides that the maximum number of shares available for grants is 10 percent of the outstanding Class A stock, adjusted for Plan activity over the preceding five years. Shares available for future grants at year-end 2014 under the Plan were 1,170,406. The Company issues shares out of treasury stock to satisfy stock-based awards. The Company presently has no intent to repurchase additional shares for the purpose of satisfying stock-based awards. 

The Company recognized stock-based compensation cost of $7.6 million in 2014 and $6.0 million in 2013 and 2012, as well as related tax benefits of $2.9 million in 2014 and $2.3 million in 2013 and 2012. 

Restricted Stock

Restricted stock, which typically vests over 4 years, is issued to certain key employees and is subject to forfeiture until the end of an established restriction period. The Company utilizes the market price of its Class A stock on the date of grant as the fair value of restricted stock and expenses the fair value on a straight-line basis over the vesting period.

A summary of the status of nonvested restricted stock under the Plan as of year-end 2014 and changes during this period is presented as follows:

	Restricted Stock		Weighted Average Grant Date Fair Value
Nonvested at year-end 2013	1,128,600		$	17.06
Granted	539,600		15.63
Vested	(423,925	)	16.92
Forfeited	(51,725	)	16.98
Nonvested at year-end 2014	1,192,550		$	16.47

As of year-end 2014, unrecognized compensation cost related to unvested restricted stock totaled $16.4 million. The weighted average period over which this cost is expected to be recognized is approximately two years. The weighted average grant date fair value per share of restricted stock granted during 2014, 2013 and 2012 was $15.63, $19.74 and $12.98, respectively. The total fair value of restricted stock, which vested during 2014, 2013 and 2012, was $7.1 million, $6.5 million and $4.1 million, respectively.

Stock Options

Under the terms of the Plan, stock options may not be granted at prices less than the fair value of the Company’s Class A stock on the date of grant, nor for a term exceeding 10 years, and typically vest over 3 years. The Company expenses the fair value of stock option grants on a straight-line basis over the vesting period. No stock options were granted in 2014, 2013 and 2012. 

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KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

A summary of the status of stock option grants under the Plan as of year-end 2014 and changes during this period is presented as follows:

	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at year-end 2013	162,613		$	27.84
Granted	—		—
Exercised	—		—
Forfeited	—		—
Expired	(129,613	)	27.96
Outstanding at year-end 2014	33,000		$	27.37	0.65	$	—
Options exercisable at year-end 2014	33,000		$	27.37	0.65	$	—

The table above includes 24,000 of non-employee director shares outstanding at year-end 2014.

As of year-end 2014, there was no unrecognized compensation cost related to unvested stock options. No stock options were exercised in 2014, 2013 and 2012. 

Windfall tax benefits, which were included in the “Other financing activities” component of net cash from financing activities in the consolidated statements of cash flows, totaled $0.4 million in 2014, $0.5 million for 2013 and was insignificant for 2012.

12. Other Expense, Net

Included in other expense, net are the following:

	2014			2013			2012
	(In millions of dollars)
Interest income	$	0.5		$	0.4		$	1.0
Interest expense	(3.0		)	(2.8		)	(3.4		)
Dividend income	0.7			0.6			0.6
Foreign exchange losses	(1.0		)	(1.5		)	(1.0		)
Net loss on equity investment (see Investment in Equity Affiliate footnote)	(2.5		)	(1.3		)	(0.7		)
Other	—			0.1			—
Other expense, net	$	(5.3	)	$	(4.5	)	$	(3.5	)

Dividend income includes dividends earned on the Company’s investment in Temp Holdings (see Fair Value Measurements footnote). 

13. Income Taxes

Earnings from continuing operations before taxes for the years 2014, 2013 and 2012 were taxed under the following jurisdictions: 

	2014		2013		2012
	(In million of dollars)
Domestic	$	5.9	$	35.1	$	56.3
Foreign	10.7		13.7		12.5
Total	$	16.6	$	48.8	$	68.8

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KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The provision for income taxes from continuing operations was as follows:

	2014			2013			2012
	(In millions of dollars)
Current tax expense:
U.S. federal	$	5.6		$	7.3		$	1.4
U.S. state and local	1.4			3.5			3.0
Foreign	12.7			10.4			10.0
Total current	19.7			21.2			14.4
Deferred tax expense:
U.S. federal	(22.0		)	(26.9		)	4.7
U.S. state and local	(0.4		)	(1.6		)	0.9
Foreign	(4.4		)	(2.8		)	(0.9		)
Total deferred	(26.8		)	(31.3		)	4.7
Total provision	$	(7.1	)	$	(10.1	)	$	19.1

Deferred taxes are comprised of the following:

	2014			2013
	(In millions of dollars)
Depreciation and amortization	$	(11.6	)	$	(10.4	)
Employee compensation and benefit plans	70.4			68.1
Workers’ compensation	21.6			22.8
Unrealized gain on securities	(23.7		)	(17.2		)
Loss carryforwards	47.2			49.4
Credit carryforwards	103.0			82.0
Other, net	8.2			0.2
Valuation allowance	(58.5		)	(56.3		)
Net deferred tax assets	$	156.6		$	138.6

The deferred tax balance is classified in the consolidated balance sheet as:

	2014			2013
	(In millions of dollars)
Current assets, deferred tax	$	34.4		$	35.5
Noncurrent deferred tax asset	146.3			121.7
Current liabilities, income and other taxes	(0.4		)	(0.4		)
Noncurrent liabilities, other long-term liabilities	(23.7		)	(18.2		)
	$	156.6		$	138.6

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KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The differences between income taxes from continuing operations for financial reporting purposes and the U.S. statutory rate of 35% are as follows:

	2014			2013			2012
	(In millions of dollars)
Income tax based on statutory rate	$	5.8		$	17.1		$	24.1
State income taxes, net of federal benefit	0.7			1.2			2.6
General business credits	(17.5		)	(26.2		)	(7.9		)
Life insurance cash surrender value	(2.2		)	(5.8		)	(3.4		)
Foreign items	(0.2		)	0.3			1.6
Foreign business taxes	4.2			3.9			4.5
Foreign tax law change	(2.2		)	(4.6		)	—
Non-deductible expenses	2.1			1.6			3.1
Change in deferred tax realizability	2.2			2.8			(0.7		)
Uncertain tax positions	—			—			(4.8		)
Other, net	—			(0.4		)	—
Total	$	(7.1	)	$	(10.1	)	$	19.1

General business credits primarily represent U.S. work opportunity credits. In 2012, the work opportunity credit was available only for veterans and pre-2012 hires. The full credit was retroactively reinstated on January 2, 2013, resulting in the inclusion of $9.3 million of tax benefits during 2013 that would have been recognized in 2012 if the law had been in effect. Foreign business taxes include the French business tax and other taxes based on revenue less certain expenses and are classified as income taxes under ASC Topic 740 (“ASC 740”), Income Taxes. The Company closed income tax examinations in 2012, resulting in a $5.1 million benefit, the majority of which is included in uncertain tax positions in the table above.

The Company has U.S. general business credit carryforwards of $100.8 million which will expire from 2031 to 2034, foreign tax credit carryforwards of $2.0 million that expire from 2022 to 2024 and $0.2 million of state credit carryforwards that expire from 2016 to 2034, or have no expiration. The net tax effect of state and foreign loss carryforwards at year-end 2014 totaled $47.2 million, which expire as follows (in millions of dollars): 

Year	Amount
2015-2017	$	1.9
2018-2020	2.5
2021-2024	1.2
2025-2031	0.3
No expiration	41.3
Total	$	47.2

The Company has established a valuation allowance for loss carryforwards and future deductible items in certain foreign jurisdictions, and for U.S. foreign tax credit carryforwards. The valuation allowance is determined in accordance with the provisions of ASC 740, which requires an assessment of both negative and positive evidence when measuring the need for a valuation allowance. The Company’s recent losses in these foreign jurisdictions, and its recent lack of adequate U.S. foreign source income to fully utilize foreign tax credit carryforwards, represented sufficient negative evidence to require a valuation allowance under ASC 740. The Company intends to maintain a valuation allowance until sufficient positive evidence exists to support realization of the foreign deferred tax assets.

Provision has not been made for U.S. or additional foreign income taxes on an estimated $111.2 million of undistributed earnings of foreign subsidiaries, which are permanently reinvested. If these earnings were to be repatriated, the Company would be subject to additional U.S. income taxes, adjusted for foreign tax credits. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be repatriated.

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KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 

	2014			2013			2012
	(In millions of dollars)
Balance at beginning of the year	$	2.8		$	2.9		$	7.8
Additions for prior years’ tax positions	—			—			0.4
Reductions for prior years’ tax positions	(0.4		)	(0.1		)	(5.3		)
Additions for settlements	—			—			—
Reductions for settlements	—			—			—
Reductions for expiration of statutes	—			—			—
Balance at end of the year	$	2.4		$	2.8		$	2.9

If the $2.4 million in 2014, $2.8 million in 2013 and $2.9 million in 2012 of unrecognized tax benefits were recognized, they would have a favorable effect of $1.5 million in 2014, $1.8 million in 2013 and $1.9 million in 2012 on income tax expense. 

The Company recognizes both interest and penalties as part of the income tax provision. The Company recognized expense of $0.1 million in 2014, expense of $0.1 million in 2013 and a benefit of $0.3 million in 2012 for interest and penalties. Accrued interest and penalties were $0.4 million at year-end 2014 and $0.3 million at year-end 2013. 

The Company files income tax returns in the U.S. and in various states and foreign countries. The tax periods open to examination by the major taxing jurisdictions to which the Company is subject include the U.S. for fiscal years 2010 through 2014, Canada for fiscal years 2007 through 2014, France for fiscal years 2012 through 2014, Mexico for fiscal years 2009 through 2014, Switzerland for fiscal years 2005 through 2014, and Russia for fiscal years 2012 through 2014. 

The Company and its subsidiaries have various income tax returns in the process of examination. The unrecognized tax benefit and related interest and penalty balances include approximately $0.3 million for 2014, related to tax positions which are reasonably possible to change within the next twelve months due to income tax audits, settlements and statute expirations.

14. Supplemental Cash Flow Information

Changes in operating assets and liabilities, net of acquisitions and the effect of deconsolidated entities, as disclosed in the statements of cash flows, for the fiscal years 2014, 2013 and 2012, respectively, were as follows: 

	2014			2013			2012
	(In millions of dollars)
Increase in trade accounts receivable	$	(155.4	)	$	(14.6	)	$	(57.9	)
Increase in prepaid expenses and other assets	(14.7		)	(11.8		)	(12.5		)
Increase in accounts payable and accrued liabilities	36.4			43.8			54.1
Increase in accrued payroll and related taxes	28.5			39.2			2.4
Decrease in accrued insurance	(2.7		)	(2.9		)	(8.7		)
Increase (decrease) in income and other taxes	10.9			5.5			(3.7		)
Total changes in operating assets and liabilities	$	(97.0	)	$	59.2		$	(26.3	)

The Company paid interest of $1.6 million, $2.0 million and $2.6 million in 2014, 2013 and 2012, respectively. The Company paid income taxes of $10.9 million in 2014, $16.9 million in 2013 and $18.8 million in 2012. 

During 2013, the Company determined that both cash and equivalents and accrued payroll and related taxes were understated by $4.8 million as of the 2012 year end. The Company determined that the impact of this error on the consolidated balance sheets and consolidated statements of cash flows was not material. As a result of correcting the error in 2013, changes in operating assets and liabilities and net cash from operating activities are both overstated by $4.8 million in the consolidated statements of cash flows for 2013. Additionally, in 2013, a cash payment of $1.4 million to TS Kelly was improperly classified in operating activities in the consolidated statements of cash flows, resulting in the understatement of operating activities and overstatement of investing activities in the consolidated statements of cash flows for 2013.

70

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

15. Commitments

The Company conducts its field operations primarily from leased facilities. The following is a schedule by fiscal year of future minimum commitments under operating leases as of year-end 2014 (in millions of dollars):

Fiscal year:
2015	$	35.8
2016	25.7
2017	16.6
2018	9.7
2019	4.7
Later years	2.3
Total	$	94.8

Lease expense from continuing operations for fiscal 2014, 2013 and 2012 amounted to $43.5 million, $45.6 million and $48.3 million, respectively. 

In addition to operating lease agreements, the Company has entered into noncancelable purchase obligations totaling $25.9 million. These obligations relate primarily to voice and data communications services and online tools which the Company expects to utilize generally within the next two fiscal years, in the ordinary course of business. The Company has no material unrecorded commitments, losses, contingencies or guarantees associated with any related parties or unconsolidated entities. See the Debt and Retirement Benefits footnotes for commitments related to debt and pension obligations. 

16. Contingencies

During the fourth quarter of 2013, a Louisiana jury rendered an award of $4.4 million, pursuant to litigation brought by Robert and Margaret Ward against the Jefferson Parish School Board and Kelly Services. Under the verdict, Kelly’s share of the liability consists of $2.7 million plus a portion of pre-and-post-judgment interest. During April 2014, Kelly reached an agreement with the plaintiffs pursuant to which Kelly and its primary insurer agreed to pay $1.0 million to the plaintiffs to satisfy the judgment against the primary insurer and Kelly, however, Kelly’s umbrella/excess insurer elected to continue to appeal the decision. In April 2014, Kelly paid $0.25 million of the settlement amount, which was previously accrued, and our primary insurer paid $0.75 million. Per the terms of the settlement with Kelly and its primary insurer, Plaintiffs must first exhaust all legal remedies to collect from our umbrella/excess insurer and its surety before pursuing Kelly for any remaining verdict amount that may be owed at the conclusion of the appellate process. In January 2015, Plaintiffs filed a Satisfaction of Judgment with the Court, pursuant to an agreement reached with the excess insurer, thereby resolving this matter and foreclosing any further financial risk to Kelly. In light of this settlement, during the first quarter of 2015 Kelly expects to reduce its accrual for litigation costs, and the offsetting insurance receivable, by $1.7 million.

The Company is continuously engaged in litigation arising in the ordinary course of its business, typically matters alleging employment discrimination, alleging wage and hour violations or enforcing the restrictive covenants in the Company’s employment agreements. While there is no expectation that any of these matters will have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is always subject to inherent uncertainty and the Company is not able to reasonably predict if any matter will be resolved in a manner that is materially adverse to the Company. At year-end 2014 and 2013, the gross accrual for litigation costs amounted to $5.7 million and $6.9 million, respectively, and related insurance recoveries totaled $1.7 million and $3.1 million, respectively.

17. Segment Disclosures

The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision makers (the Company's Chief Executive Officer and Chief Operating Officer) to determine resource allocation and assess performance. The Company’s seven reporting segments are: (1) Americas Commercial, (2) Americas Professional and Technical (“Americas PT”), (3) Europe, Middle East and Africa Commercial (“EMEA Commercial”), (4) Europe, Middle East and Africa Professional and Technical (“EMEA PT”), (5) Asia Pacific Commercial (“APAC Commercial”), (6) Asia Pacific Professional and Technical (“APAC PT”) and (7) Outsourcing and Consulting Group (“OCG”). 

71

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Commercial business segments within the Americas, EMEA and APAC regions represent traditional office services, contact-center staffing, marketing, electronic assembly, light industrial and, in the Americas, substitute teachers. The PT segments encompass a wide range of highly skilled temporary employees, including scientists, financial professionals, attorneys, engineers, IT specialists and healthcare workers. OCG includes recruitment process outsourcing (“RPO”), contingent workforce outsourcing (“CWO”), business process outsourcing (“BPO”), payroll process outsourcing (“PPO”), executive placement and career transition/outplacement services. Corporate expenses that directly support the operating units have been allocated to the Americas, EMEA and APAC regions and OCG based on a work effort, volume, or in the absence of a readily available measurement process, proportionately based on revenue from services. 

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 from continuing operations before taxes, for 2014, 2013 and 2012. 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. Effective with the first quarter of 2014, the project-based legal services business in the Americas PT segment was reclassified to the OCG segment and the prior periods were recast to conform to the current presentation.

	2014			2013			2012
	(In millions of dollars)
Revenue from Services:
Americas Commercial	$	2,609.6		$	2,545.6		$	2,642.4
Americas PT	956.0			967.8			992.1
Total Americas Commercial and PT	3,565.6			3,513.4			3,634.5
EMEA Commercial	894.7			877.5			854.6
EMEA PT	190.3			179.7			168.3
Total EMEA Commercial and PT	1,085.0			1,057.2			1,022.9
APAC Commercial	351.8			344.1			343.2
APAC PT	40.4			38.6			51.6
Total APAC Commercial and PT	392.2			382.7			394.8
OCG	586.8			509.5			433.7
Less: Intersegment revenue	(66.9		)	(49.7		)	(35.4		)
Consolidated Total	$	5,562.7		$	5,413.1		$	5,450.5

72

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

	2014			2013			2012
	(In millions of dollars)
Earnings from Operations:
Americas Commercial gross profit	$	379.6		$	370.2		$	388.2
Americas PT gross profit	155.9			155.1			150.5
Americas Region gross profit	535.5			525.3			538.7
Americas Region SG&A expenses	(446.8		)	(419.8		)	(400.1		)
Americas Region Earnings from Operations	88.7			105.5			138.6
EMEA Commercial gross profit	130.6			133.6			133.8
EMEA PT gross profit	42.9			42.6			43.0
EMEA Region gross profit	173.5			176.2			176.8
EMEA Region SG&A expenses	(161.4		)	(164.7		)	(168.1		)
EMEA Region Earnings from Operations	12.1			11.5			8.7
APAC Commercial gross profit	47.5			49.3			50.1
APAC PT gross profit	12.7			14.0			21.0
APAC Region gross profit	60.2			63.3			71.1
APAC Region SG&A expenses	(57.7		)	(60.5		)	(73.4		)
APAC Region Earnings (Loss) from Operations	2.5			2.8			(2.3		)
OCG gross profit	143.6			128.2			113.2
OCG SG&A expenses	(127.3		)	(111.5		)	(101.1		)
OCG asset impairments	—			(1.7		)	—
OCG Earnings from Operations	16.3			15.0			12.1
Less: Intersegment gross profit	(4.4		)	(3.5		)	(3.2		)
Less: Intersegment SG&A expenses	4.4			3.5			3.2
Net Intersegment Activity	—			—			—
Corporate	(97.7		)	(81.5		)	(84.8		)
Consolidated Total	21.9			53.3			72.3
Other Expense, Net	5.3			4.5			3.5
Earnings From Continuing Operations Before Taxes	$	16.6		$	48.8		$	68.8

A summary of revenue from services by geographic area for 2014, 2013 and 2012 follows:

	2014		2013		2012
	(In millions of dollars)
Revenue From Services:
Domestic	$	3,535.8	$	3,419.9	$	3,464.2
International	2,026.9		1,993.2		1,986.3
Total	$	5,562.7	$	5,413.1	$	5,450.5

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.

73

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

A summary of long-lived assets information by geographic area as of year-end 2014 and 2013 follows:

	2014		2013
	(In millions of dollars)
Long-Lived Assets:
Domestic	$	77.5	$	74.3
International	15.5		17.7
Total	$	93.0	$	92.0

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

18. New Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on operations and financial results. The amendments are effective prospectively for fiscal periods (and interim reporting periods within those years) beginning on or after December 15, 2014 (early adoption is permitted). The adoption of this guidance is not expected to have a material effect on our results of operations, financial position or liquidity.

In May 2014, the FASB issued new revenue recognition guidance under Accounting Standards Update (“ASU”) 2014-09 that will supersede the existing revenue recognition guidance under U.S. generally accepted accounting principles. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. This ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. Early adoption is not permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

In August 2014, the FASB issued ASU 2014-15 requiring management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern, which is currently performed by the external auditors. Management will be required to perform this assessment for both interim and annual reporting periods and must make certain disclosures if it concludes that substantial doubt exists. This ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. The adoption of this guidance is not expected to have a material effect on our financial statements.

19. Related Party Transactions

Terence E. Adderley, the Executive Chairman and Chairman of the Board of our board of directors, and certain trusts with respect to which he acts as trustee or co-trustee, control approximately 93% of the outstanding shares of Kelly Class B common stock, which is the only class of our common stock entitled to voting rights. There were no material transactions between the Company and Terence E. Adderley in 2014 or 2013.

74

KELLY SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

20. Selected Quarterly Financial Data (unaudited)

	Fiscal Year 2014
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Year
	(In millions of dollars except per share data)
Revenue from services	$	1,330.8	$	1,410.5	$	1,396.4	$	1,425.0	$	5,562.7
Gross profit	222.3		228.1		225.4		232.6		908.4
SG&A expenses	216.0		222.2		218.3		230.0		886.5
Restructuring charges included in SG&A expenses	—		1.8		4.0		6.2		12.0
Net earnings	2.5		2.8		1.4		17.0		23.7
Basic earnings per share (1)	0.07		0.07		0.03		0.44		0.61
Diluted earnings per share (1)	0.07		0.07		0.03		0.44		0.61
Dividends per share	0.05		0.05		0.05		0.05		0.20

	Fiscal Year 2013
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Year
	(In millions of dollars except per share data)
Revenue from services	$	1,314.8	$	1,366.9	$	1,345.6	$	1,385.8	$	5,413.1
Gross profit	216.9		220.7		220.4		231.5		889.5
SG&A expenses	209.8		202.6		200.2		221.9		834.5
Restructuring charges included in SG&A expenses	—		0.8		0.5		0.3		1.6
Asset impairments	—		1.7		—		—		1.7
Net earnings	12.9		10.0		18.8		17.2		58.9
Basic earnings per share (1)	0.34		0.26		0.49		0.45		1.54
Diluted earnings per share (1)	0.34		0.26		0.49		0.45		1.54
Dividends per share	0.05		0.05		0.05		0.05		0.20

(1) Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

75

KELLY SERVICES, INC. AND SUBSIDIARIES

SCHEDULE II - VALUATION RESERVES

(In millions of dollars)

			Additions
	Balance at beginning of year		Charged to costs and expenses	Charged to other accounts			Currency exchange effects		Deductions from reserves		Balance at end of year
Description
Fiscal year ended December 28, 2014
Reserve deducted in the balance sheet from the assets to which it applies -
Allowance for doubtful accounts	$	9.9	4.8	0.5		(1)	(1.9	)	(2.6	)	$	10.7
Deferred tax assets valuation allowance	$	56.3	7.5	—			(2.7	)	(2.6	)	$	58.5
Fiscal year ended December 29, 2013
Reserve deducted in the balance sheet from the assets to which it applies -
Allowance for doubtful accounts	$	10.4	2.5	(0.5	)	(1)	—		(2.5	)	$	9.9
Deferred tax assets valuation allowance	$	58.4	8.7	—			(1.1	)	(9.7	)	$	56.3
Fiscal year ended December 30, 2012
Reserve deducted in the balance sheet from the assets to which it applies -
Allowance for doubtful accounts	$	13.4	1.1	—			0.1		(4.2	)	$	10.4
Deferred tax assets valuation allowance	$	65.4	7.1	(0.1	)	(2)	0.2		(14.2	)	$	58.4

(1) Adjustment to provision for sales allowances charged to revenue from services.

(2) Allowance of companies acquired.

76

INDEX TO EXHIBITS REQUIRED BY ITEM 601 REGULATIONS S-K
Exhibit No.	Description
3.1	Restated Certificate of Incorporation, effective May 6, 2009 (Reference is made to Exhibit 3.1 to the Form 10-Q filed with the Commission on May 7, 2014, which is incorporated herein by reference).
3.2	By-laws, effective May 6, 2009 (Reference is made to Exhibit 3.2 to the Form 10-Q filed with the Commission on May 7, 2014, which is incorporated herein by reference).
10.1*	Kelly Services, Inc. Short-Term Incentive Plan, as amended and restated February 14, 2013 (Reference is made to Exhibit 10.1 to the Form 10-Q filed with the Commission on August 7, 2013, which is incorporated herein by reference).
10.2*	Kelly Services, Inc. Equity Incentive Plan, as amended and restated on December 31, 2011 (Reference is made to Exhibit 10.2 to the Form 10-Q filed with the Commission on August 8, 2012, which is incorporated herein by reference).
10.3*	Kelly Services, Inc. Executive Severance Plan dated April 4, 2006, as amended November 8, 2007 (Reference is made to Exhibit 10.3 to the Form 10-Q filed with the Commission on November 7, 2012, which is incorporated herein by reference).
10.4*	Kelly Services, Inc. Non-Employee Directors Stock Option Plan (Reference is made to Exhibit 10.4 to the Form 10-Q filed with the Commission on May 11, 2011, which is incorporated herein by reference).
10.5*	Kelly Services, Inc. 2008 Non-Employee Directors Stock Plan (Reference is made to Exhibit 10.5 to the Form 10-K filed with the Commission on February 14, 2013, which is incorporated herein by reference).
10.6	Amended and restated five-year, secured, revolving credit agreement, dated March 31, 2011 (Reference is made to Exhibit 10.6 to the Form 8-K filed with the Commission on April 6, 2011, which is incorporated herein by reference).
10.7*	Kelly Services, Inc. Performance Incentive Plan, as amended and restated on March 29, 1996 and April 14, 2000 (Reference is made to Exhibit 10 to the Form 10-Q for the quarterly period ended April 1, 2001, filed with the Commission on May 14, 2001, which is incorporated herein by reference).
10.8*	Form of Amendment to Performance Incentive Plan (Reference is made to Exhibit 10.1 to the Form 8-K filed with the Commission on November 9, 2006, which is incorporated herein by reference).
10.12*	Kelly Services, Inc. 2008 Management Retirement Plan – Post 2004 (Reference is made to Exhibit 10.12 to the Form 10-Q filed with the Commission on November 7, 2012, which is incorporated herein by reference).

77

	INDEX TO EXHIBITS REQUIRED BY ITEM 601, REGULATION S-K (continued)
Exhibit No.	Description
10.13*	First Amendment to the Kelly Services, Inc. 2008 Management Retirement Plan (Reference is made to Exhibit 10.13 to the Form 10-Q filed with the Commission on November 7, 2012, which is incorporated herein by reference).
10.14	Pledge and Security Agreement, dated September 28, 2009 (Reference is made to Exhibit 10.14 to the Form 8-K filed with the Commission on September 29, 2009, which is incorporated herein by reference).
10.15	Receivables Purchase Agreement, dated December 4, 2009 (Reference is made to Exhibit 10.17 to the Form 8-K filed with the Commission on December 9, 2009, which is incorporated herein by reference).
10.16	Receivables Purchase Agreement Amendment No. 2 (Reference is made to Exhibit 10.16 to the Form 8-K filed with the Commission on April 6, 2011, which is incorporated herein by reference).
10.17	Receivables Purchase Agreement Amendment No. 3 (Reference is made to Exhibit 10.17 to the Form 10-Q filed with the Commission on November 6, 2013, which is incorporated herein by reference).
10.18	First Amendment to Amended and Restated Credit Agreement, dated December 11, 2013 (Reference is made to Exhibit 10.18 to the Form 8-K filed with the Commission on December 13, 2013, which is incorporated herein by reference).
10.19	Annex A to First Amendment to Amended and Restated Credit Agreement, dated December 11, 2013 (Reference is made to Exhibit 10.19 to the Form 8-K filed with the Commission on December 13, 2013, which is incorporated herein by reference).
10.20	Receivables Purchase Agreement Amendment No. 4, dated December 11, 2013 (Reference is made to Exhibit 10.20 to the Form 8-K filed with the Commission on December 13, 2013, which is incorporate herein by reference).
10.21*	Amendment to Kelly Services, Inc. 2008 Management Retirement Plan. (Reference is made to Exhibit 10.21 to the Form 8-K filed with the commission on August 11, 2014, which is incorporated herein by reference.)
14	Code of Business Conduct and Ethics, adopted February 9, 2004, as amended on November 9, 2010 (Reference is made to Exhibit 14 to the Form 10-K filed with the Commission on February 17, 2011, which is incorporated herein by reference).
21	Subsidiaries of Registrant.
23	Consent of Independent Registered Public Accounting Firm.
24	Power of Attorney.

78

	INDEX TO EXHIBITS REQUIRED BY ITEM 601, REGULATION S-K (continued)
Exhibit No.	Description
31.1	Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended.
31.2	Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended.
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Indicates a management contract or compensatory plan or arrangement.

79

EX-21

Exhibit 21

SUBSIDIARIES OF REGISTRANT

Kelly Services, Inc.

Subsidiary	State/Jurisdiction of Incorporation	Business Name
Kelly Services (Canada), Ltd.	Canada	Kelly Services
Kelly Properties, LLC	Delaware	Kelly Properties
Kelly Receivables Funding, LLC	Delaware	Kelly Receivables Funding
Kelly Receivables Services, LLC	Delaware	Kelly Receivables Services
(a subsidiary of Kelly Properties, LLC)
Kelly Services (Ireland), Ltd.	Delaware	Kelly Services
(a subsidiary of Kelly Properties, LLC)
Kelly Services (UK) Ltd.	United Kingdom	Kelly Services, Ltd.
(a subsidiary of Kelly Services Management S.a.r.l.)
Kelly Payroll Services Limited	United Kingdom	Kelly Services, Ltd.
(a subsidiary of Kelly Services (UK) Ltd.)
Toner Graham Limited	United Kingdom	Toner Graham
(a subsidiary of Kelly Services (UK) Ltd.)
Kelly Services (Australia), Ltd.	Delaware	Kelly Services
Kelly Services (New Zealand), Ltd.	Delaware	Kelly Services
Kelly Services of Denmark, Inc.	Delaware	Kelly Services
Kelly Services (Nederland), B.V.	Netherlands	Kelly Services
Kelly Administratiekantoor, B.V.	Netherlands	Kelly Services
(a subsidiary of Kelly Services (Nederland) B.V.)
Kelly Managed Services (Nederland) B.V.	Netherlands	Kelly Services
(a subsidiary of Kelly Services (Nederland) B.V.)
Kelly Services Norge AS	Norway	Kelly Services
(a subsidiary of Kelly Services Management S.a.r.l.)
Kelly Services Management AS	Norway	Kelly Services
(a subsidiary of Kelly Services Norge AS)
Kelly Services Mexico, S.A. de C. V.	Mexico	Kelly Services
(a subsidiary of Kelly Services, Inc. and Kelly
Properties, LLC)

1

Exhibit 21

SUBSIDIARIES OF REGISTRANT (continued)

Kelly Services, Inc.

Subsidiary	State/Jurisdiction of Incorporation	Business Name
Opciones De Servicio En Mexico, S.A. de C.V.	Mexico	Kelly Services
(a subsidiary of Kelly Services Mexico, S.A. de
C.V. and Kelly Properties, LLC)
QSM, S.A. de C.V.	Mexico	Kelly Services
(a subsidiary of Kelly Services Mexico, S.A. de C.V. and Kelly Properties, LLC)
Kelly Services (Suisse), SA	Switzerland	Kelly Services
(a subsidiary of Kelly Services Management S.a.r.l.)
Kelly Services Management S.a.r.l.	Switzerland	Kelly Services
(a subsidiary of Kelly Services, Inc. and Kelly Properties, LLC)
Kelly Services Management SCS	France	Kelly Services
(a subsidiary of Kelly Services Management S.a.r.l. and Kelly Services (Suisse), SA)
Kelly Services France, S.A.S.	France	Kelly Services
(a subsidiary of Kelly Services Management SCS)
Kelly Services, S.A.S.	France	Kelly Services
(a subsidiary of Kelly Services France, S.A.S.)
Competences RH, S.a.r.l.	France	Competences RH
(a subsidiary of Kelly Services France, S.A.S.)
Kelly Services Luxembourg, S.a.r.l.	Luxembourg	Kelly Services
Kelly Outsourcing & Consulting Group, S.a.r.l.	Luxembourg	Kelly Services
(a subsidiary of Kelly Services Luxembourg, S.a.r.l.)
Kelly Services S.p.A.	Italy	Kelly Services
(a subsidiary of Kelly Services, Inc. and Kelly Properties, LLC)
Kelly Management Services, S.r.l.	Italy	Kelly Management Services
(a subsidiary of Kelly Services S.p.A.)
Kelly Services CIS, Inc.	Delaware	Kelly Services
LLC Kelly Services CIS	Russia	Kelly Services
(a subsidiary of Kelly Services Management Sarl)

2

Exhibit 21

SUBSIDIARIES OF REGISTRANT (continued)

Kelly Services, Inc.

Subsidiary	State/Jurisdiction of Incorporation	Business Name
LLC Kelly Services IT solutions	Russia	Kelly Services
(a subsidiary of LLC Kelly Services CIS and Kelly Services Management Sarl)
Kelly Services Deutschland GmbH	Germany	Kelly Services
access KellyOCG GmbH	Germany	access
(a subsidiary of Kelly Services Deutschland GmbH)
Kelly Services GmbH	Germany	Kelly Services
(a subsidiary of access KellyOCG GmbH)
access Recruiting Services GmbH	Austria	access
(a subsidiary of access KellyOCG GmbH)
Kelly Services Interim (Belgium) SPRL	Belgium	Kelly Services
(a subsidiary of Kelly Services, Inc. and Kelly Properties, LLC)
Kelly Services Outsourcing and Consulting Group SA/NV	Belgium	Kelly Services
(a subsidiary of Kelly Services Interim (Belgium) SPRL and Kelly Properties, LLC)
Kelly Services Sverige AB	Sweden	Kelly Services
Kelly Services AB	Sweden	Kelly Services
(a subsidiary of Kelly Services Sverige AB)
Kelly Services – Empressa De Trabalho Temporario, Unipessoal, Lda.	Portugal	Kelly Services
(a subsidiary of Kelly Services Management S.a.r.l.)
Kelly Services – Gestao De Processos, Lda.	Portugal	Kelly Services
(a subsidiary of Kelly Services – Empressa De Trabalho Temporario, Unipessoal, Lda. and Kelly Services, Inc.)
Kelly Services Healthcare Unipessoal, Lda.	Portugal	Kelly Services
(a subsidiary of Kelly Services – Gestao De Processos, Lda.)
Kelly Services Hungary Staffing, LLC	Hungary	Kelly Services
(a subsidiary of Kelly Services, Inc. and Kelly Properties, LLC)

3

Exhibit 21

SUBSIDIARIES OF REGISTRANT (continued)

Kelly Services, Inc.

Subsidiary	State/Jurisdiction of Incorporation	Business Name
Kelly Services Poland Sp.zo.o.	Poland	Talents
Kelly Services (Singapore) Pte. Ltd.	Singapore	Kelly Services
BTI Consultants Pte. Ltd.	Singapore	BTI Consultants
(a subsidiary of Kelly Services (Singapore) Pte. Ltd.)
P-Serv Pte. Ltd.	Singapore	P-Serv
(a subsidiary of Kelly Services (Singapore) Pte. Ltd.)
Eradekad SDN. BHD.	Malaysia	Kelly Services
Kelly Services (Malaysia), SDN. BHD.	Malaysia	Kelly Services
(a subsidiary of Eradekad SDN. BHD. and Kelly Services, Inc.)
Agensi Pekerjann Kelly Search (Malaysia), SDN. BHD	Malaysia	Kelly Services
(a subsidiary of Kelly Services (Malaysia), SDN. BHD.)
Agensi Pekerjaan BTI Consultants SDN. BHD.	Malaysia	BTI Consultants
(a subsidiary of Eradekad SDN. BHD. and Kelly Services, Inc.)
Era Tenage Sdn. Bhd	Malaysia	Kelly Services
Agensi Pekerjaan Kerjaya Sukses Sdn. Bhd	Malaysia	Kelly Services
BTI Consultants (India) Private Limited	India	BTI Consultants
(a subsidiary of Kelly Services, Inc. and Kelly Properties, LLC)
Kelly Services (India) Pvt. Ltd.	India	Kelly Services
(a subsidiary of BTI Consultants (India) Pvt. Ltd.)
Kelly Services Holding (Thailand) Co. Ltd.	Thailand	Kelly Services
(a subsidiary of Kelly Services, Inc., Kelly Properties, LLC, Kelly Services of Denmark, Inc., Kelly Services (New Zealand), Ltd., Kelly Services (Ireland), Ltd., Kelly Services (Australia), Ltd., and Chayamitra Capital Company Limited)

4

Exhibit 21

SUBSIDIARIES OF REGISTRANT (continued)

Kelly Services, Inc.

Subsidiary	State/Jurisdiction of Incorporation	Business Name
BTI Executive Placement (Thailand) Co. Ltd.	Thailand	BTI Consultants
(a subsidiary of Kelly Services Holding (Thailand) Co. Ltd., Kelly Services, Inc., Kelly Properties, LLC, Kelly Services of Denmark, Inc., Kelly Services (New Zealand), Ltd., Kelly Services (Ireland), Ltd., and Kelly Services (Australia), Ltd.)
Kelly Services Staffing & Recruitment (Thailand) Co., Ltd.	Thailand	Kelly Services
(a subsidiary of Kelly Services Holding (Thailand) Co., Ltd., Kelly Services, Inc., Kelly Properties, LLC, Kelly Services of Denmark, Inc., Kelly Services (New Zealand), Ltd., Kelly Services (Ireland), Ltd., and Kelly Services (Australia), Ltd.)
PT Kelly Services Indonesia Ltd.	Indonesia	BTI Consultants
(a subsidiary of Kelly Services, Inc. and Kelly Properties, LLC)
Kelly Services Japan, Inc.	Japan	Kelly Services
Kelly Investment and Consulting (Shanghai) Co., Ltd.	China	Kelly Investment and Consulting
Kelly Services Brasil Investimentos E Participacoes Ltda.	Brazil	Kelly Services
(a subsidiary of Kelly Services, Inc. and Kelly Properties, LLC)
Kelly Services Brasil Investimentos E Participacoes II Ltda.	Brazil	Kelly Services
(a subsidiary of Kelly Services, Inc. and Kelly Properties, LLC)
Tradição Planejamento e Tecnologia de Serviços S.A.	Brazil	Tradição
(a subsidiary of Kelly Services Brazil Investimentos E Participacoes II Ltda. and Kelly Services Brasil Investimentos E Participacoes Ltda.)
Tradição Tecnologia e Servicos Ltda.	Brazil	Tradição
(a subsidiary of Tradição Planejamento e Tecnologia de Serviços S.A. and Kelly Services Brasil Investimentos E Participacoes II Ltda.)

5

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-190512) and Form S‑8(Nos. 333-114837, 333-125091, 333-166798 and 333-201165) of Kelly Services, Inc. of our report dated February 12, 2015 relating to the financial statements, financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Detroit, Michigan

February 12, 2015

EX-24

Exhibit 24

POWER OF ATTORNEY

Each of the undersigned directors of Kelly Services, Inc. does hereby appoint Patricia Little and Peter W. Quigley, signing singly, his or her true and lawful attorneys, to execute for and on behalf of the undersigned Form 10-K Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ending December 28, 2014, to be filed with the Securities and Exchange Commission in Washington, D.C. under the provisions of the Securities Exchange Act of 1934, as amended, and any and all amendments to said Form 10-K whether said amendments add to, delete from, or otherwise alter the Form 10-K, or add to or withdraw any exhibit or exhibits, schedule or schedules to be filed therewith, and any and all instruments necessary or incidental in connection therewith, hereby granting unto said attorneys and each of them full power and authority to do and perform in the name and on behalf of each of the undersigned, and in any and all capacities, every act and thing whatsoever required or necessary to be done in the exercise of any of the rights and powers herein granted, as fully and to all intents and purposes as each of the undersigned might or could do in person, hereby ratifying and approving the acts of said attorneys and each of them.

IN WITNESS WHEREOF the undersigned have caused this Power of Attorney to be executed as of this 12^th day of February, 2015.

/s/ Terence E. Adderley

Terence E. Adderley

/s/ Carl T. Camden

Carl T. Camden

/s/ Carol M. Adderley

Carol M. Adderley

/s/ Robert S. Cubbin

Robert S. Cubbin

/s/ Jane E. Dutton

Jane E. Dutton

/s/ Terrence B. Larkin

Terrence B. Larkin

/s/ Conrad L. Mallett, Jr.

Conrad L. Mallett, Jr.

/s/ Leslie A. Murphy

Leslie A. Murphy

/s/ Donald R. Parfet

Donald R. Parfet

/s/ B. Joseph White

B. Joseph White

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Carl T. Camden, certify that:

1. I have reviewed this annual report on Form 10-K of Kelly Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 12, 2015
	/s/ Carl T. Camden
	Carl T. Camden
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Patricia Little, certify that:

1. I have reviewed this annual report on Form 10-K of Kelly Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 12, 2015
	/s/ Patricia Little
	Patricia Little
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Kelly Services, Inc. (the “Company”) on Form 10-K for the period ended December 28, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Carl T. Camden, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. 

Date: February 12, 2015
	/s/ Carl T. Camden
	Carl T. Camden
	President and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Kelly Services, Inc. and will be retained by Kelly Services, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Kelly Services, Inc. (the “Company”) on Form 10-K for the period ended December 28, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Patricia Little, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 12, 2015
	/s/ Patricia Little
	Patricia Little
	Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Kelly Services, Inc. and will be retained by Kelly Services, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Other Expense, Net (Tables)

12 Months Ended

Dec. 28, 2014

Other Income and Expenses [Abstract]

Schedule of Other Expense, Net

Included in other expense, net are the following:

	2014			2013			2012
	(In millions of dollars)
Interest income	$	0.5		$	0.4		$	1.0
Interest expense	(3.0		)	(2.8		)	(3.4		)
Dividend income	0.7			0.6			0.6
Foreign exchange losses	(1.0		)	(1.5		)	(1.0		)
Net loss on equity investment (see Investment in Equity Affiliate footnote)	(2.5		)	(1.3		)	(0.7		)
Other	—			0.1			—
Other expense, net	$	(5.3	)	$	(4.5	)	$	(3.5	)

XML

Goodwill - Changes in the Net Carrying Amount of Goodwill (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Goodwill [Roll Forward]
Goodwill, Gross	$ 191.2	$ 191.2	$ 190.4
Accumulated losses	(100.9)	(100.9)	(100.9)
Adjustments to goodwill	0	0.8
Goodwill, Net	90.3	90.3
Americas Commercial
Goodwill [Roll Forward]
Goodwill, Gross	40.0	40.0	39.2
Accumulated losses	(16.4)	(16.4)	(16.4)
Adjustments to goodwill	0	0.8
Goodwill, Net	23.6	23.6
Americas PT
Goodwill [Roll Forward]
Goodwill, Gross	37.9	39.2	39.2
Accumulated losses	0	0	0
Adjustments to goodwill	(1.3)	0
Goodwill, Net	37.9	39.2
Total Americas
Goodwill [Roll Forward]
Goodwill, Gross	77.9	79.2	78.4
Accumulated losses	(16.4)	(16.4)	(16.4)
Adjustments to goodwill	(1.3)	0.8
Goodwill, Net	61.5	62.8
EMEA Commercial
Goodwill [Roll Forward]
Goodwill, Gross	50.4	50.4	50.4
Accumulated losses	(50.4)	(50.4)	(50.4)
Adjustments to goodwill	0	0
Goodwill, Net	0	0
EMEA PT
Goodwill [Roll Forward]
Goodwill, Gross	22.0	22.0	22.0
Accumulated losses	(22.0)	(22.0)	(22.0)
Adjustments to goodwill	0	0
Goodwill, Net	0	0
Total EMEA
Goodwill [Roll Forward]
Goodwill, Gross	72.4	72.4	72.4
Accumulated losses	(72.4)	(72.4)	(72.4)
Adjustments to goodwill	0	0
Goodwill, Net	0	0
APAC Commercial
Goodwill [Roll Forward]
Goodwill, Gross	12.1	12.1	12.1
Accumulated losses	(12.1)	(12.1)	(12.1)
Adjustments to goodwill	0	0
Goodwill, Net	0	0
APAC PT
Goodwill [Roll Forward]
Goodwill, Gross	1.4	1.4	1.4
Accumulated losses	0	0	0
Adjustments to goodwill	0	0
Goodwill, Net	1.4	1.4
Total APAC
Goodwill [Roll Forward]
Goodwill, Gross	13.5	13.5	13.5
Accumulated losses	(12.1)	(12.1)	(12.1)
Adjustments to goodwill	0	0
Goodwill, Net	1.4	1.4
OCG
Goodwill [Roll Forward]
Goodwill, Gross	27.4	26.1	26.1
Accumulated losses	0	0	0
Adjustments to goodwill	1.3	0
Goodwill, Net	$ 27.4	$ 26.1

XML

Fair Value Measurements - Fair Value Measurements on a Recurring Basis (Details) (USD $) In Millions, unless otherwise specified	Dec. 28, 2014	Dec. 29, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 3.3	$ 2.9
Available-for-sale investment	97.9	80.7
Total assets at fair value	101.2	83.6
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	3.3	2.9
Available-for-sale investment	97.9	80.7
Total assets at fair value	101.2	83.6
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Available-for-sale investment	0	0
Total assets at fair value	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Available-for-sale investment	0	0
Total assets at fair value	$ 0	$ 0

XML

Income Taxes - Deferred Tax Balance Classified in Consolidated Balance Sheet (Details) (USD $) In Millions, unless otherwise specified	Dec. 28, 2014	Dec. 29, 2013
Income Taxes [Line Items]
Current assets, deferred tax	$ 34.4	$ 35.5
Noncurrent deferred tax asset	146.3	121.7
Deferred tax assets, net	156.6	138.6
Income and other taxes
Income Taxes [Line Items]
Current liabilities, income and other taxes	(0.4)	(0.4)
Other long-term liabilities
Income Taxes [Line Items]
Noncurrent liabilities, other long-term liabilities	$ (23.7)	$ (18.2)

XML

Other Assets - Narrative (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Other Assets [Abstract]
Intangible amortization expense	$ 1.4	$ 2.0	$ 3.3

XML

Commitments- Narrative (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Commitments and Contingencies Disclosure [Abstract]
Lease expense	$ 43.5	$ 45.6	$ 48.3
Noncancelable purchase obligations	$ 25.9
Obligation expected utilization period	2 years

XML

Summary of Significant Accounting Policies - Property and Equipment At Cost and Depreciable Useful Lives (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Property, Plant and Equipment [Line Items]
Property and Equipment:	$ 360.0	$ 350.5
Depreciation expense	20.3	18.4	19.0
Land
Property, Plant and Equipment [Line Items]
Property and Equipment:	3.8	3.8
Work in process
Property, Plant and Equipment [Line Items]
Property and Equipment:	6.9	4.4
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property and Equipment:	59.7	58.9
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	15 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	45 years
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and Equipment:	221.7	215.7
Computer hardware and software | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Computer hardware and software | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	12 years
Equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and Equipment:	34.1	33.6
Estimated useful life	5 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and Equipment:	$ 33.8	$ 34.1
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years

XML

Restructuring (Tables)

12 Months Ended

Dec. 28, 2014

Restructuring and Related Activities [Abstract]

Restructuring Costs Incurred

Restructuring costs incurred in 2014 totaled $12.0 million as detailed below.

	Severance Costs		Lease Termination Costs		Total
	(In millions of dollars)
Americas	$	1.7	$	2.3	$	4.0
OCG	1.3		—		1.3
Headquarters	4.6		—		4.6
Plan total	7.6		2.3		9.9
EMEA and APAC restructuring	0.9		1.2		2.1
Total restructuring	$	8.5	$	3.5	$	12.0

Summary of Restructuring Reserve

A summary of our global restructuring balance sheet accrual, primarily included in accrued payroll and related taxes, is detailed below (in millions of dollars). Restructuring activities in 2013 and the related year-end accrual were immaterial.

Balance as of year-end 2013	$	—
Additions charged to corporate under the Plan	9.9
Additions charged to EMEA and APAC operations	2.1
Reductions for cash payments related to all restructuring activities	(5.1		)
Balance as of year-end 2014	$	6.9

XML

Contingencies - Narrative (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Apr. 30, 2014	Dec. 29, 2013	Dec. 28, 2014
Loss Contingencies [Line Items]
Accrual for litigation costs		$ 6.9	$ 5.7
Estimated insurance recoveries		13.4	11.5
Judgement Against Jefferson Parish School Board And Kelly Service
Loss Contingencies [Line Items]
Loss contingency damages awarded		4.4
Litigation Settlement, Amount	(1.00)
Estimated insurance recoveries		3.1	1.7
Kelly Services Share
Loss Contingencies [Line Items]
Loss contingency damages awarded			2.7
Parent Company | Judgement Against Jefferson Parish School Board And Kelly Service
Loss Contingencies [Line Items]
Litigation Settlement, Amount	(0.25)
Primary Insurer | Judgement Against Jefferson Parish School Board And Kelly Service
Loss Contingencies [Line Items]
Litigation Settlement, Amount	$ (0.75)

XML

Income Taxes - Net Tax Effect of State and Foreign Loss Carryforwards (Details) (USD $) In Millions, unless otherwise specified	Dec. 28, 2014
Operating Loss Carryforwards [Line Items]
No expiration	$ 41.3
Total	47.2
2015-2017
Operating Loss Carryforwards [Line Items]
Total	1.9
2018-2020
Operating Loss Carryforwards [Line Items]
Total	2.5
2021-2024
Operating Loss Carryforwards [Line Items]
Total	1.2
2025-2031
Operating Loss Carryforwards [Line Items]
Total	$ 0.3

XML

Debt (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013
Short-term Debt [Line Items]
Short-term borrowings	$ 91.9	$ 28.3
The Facility | Revolving Line of Credit
Short-term Debt [Line Items]
Maximum borrowing capacity	200.0
Short-term borrowings	0.4	0
Remaining borrowing capacity	199.6	200.0
Commitment fee percentage (in basis points)	0.25%	0.25%
Interest rate	3.75%
Securitization Facility
Short-term Debt [Line Items]
Maximum borrowing capacity	150.0
Short-term borrowings	88.0	28.0
Remaining borrowing capacity	7.5	67.0
Interest rate	0.57%	0.57%
Securitization Facility | Standby Letter of Credit Related to Workers' Compensation
Short-term Debt [Line Items]
Interest rate	0.40%	0.40%
Letters of credit outstanding	54.5	55.0
Unsecured Uncommitted Short-term Local Credit Facilities
Short-term Debt [Line Items]
Maximum borrowing capacity	15.5
Short-term borrowings	$ 3.5	$ 0.3
Interest rate	2.50%	10.75%
Facility Fee | Securitization Facility
Short-term Debt [Line Items]
Commitment fee percentage (in basis points)	0.40%

XML

Supplemental Cash Flow Information- Narrative (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Interest paid	$ 1.6	$ 2.0	$ 2.6
Income taxes paid	10.9	16.9	18.8
Prior Year Understatement of Accrued Payroll and Related Taxes
Amount of misstatement in current year financial statements		4.8
Prior Year Understatement of Cash and Cash Equivalents
Amount of misstatement in current year financial statements		4.8
Prior Year Overstatement of Net Cash from Operating Activities
Amount of misstatement in current year financial statements		4.8
Prior Year Overstatement of Operating Assets and Liabilities
Amount of misstatement in current year financial statements		4.8
Prior Year Understatement of Net Cash from Operating Activities
Amount of misstatement in current year financial statements		1.4
Prior Year Understatement of Net Cash used in Investing Activities
Amount of misstatement in current year financial statements		$ 1.4

XML

Selected Quarterly Financial Data (unaudited) - Schedule of Quarterly Financial Information (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended																12 Months Ended
	Dec. 28, 2014		Sep. 28, 2014		Jun. 29, 2014		Mar. 30, 2014		Dec. 29, 2013		Sep. 29, 2013		Jun. 30, 2013		Mar. 31, 2013		Dec. 28, 2014		Dec. 29, 2013		Dec. 30, 2012
Quarterly Financial Information Disclosure [Abstract]
Revenue from services	$ 1,425.0		$ 1,396.4		$ 1,410.5		$ 1,330.8		$ 1,385.8		$ 1,345.6		$ 1,366.9		$ 1,314.8		$ 5,562.7		$ 5,413.1		$ 5,450.5
Gross profit	232.6		225.4		228.1		222.3		231.5		220.4		220.7		216.9		908.4		889.5		896.6
SG&A expenses	230.0		218.3		222.2		216.0		221.9		200.2		202.6		209.8		886.5		834.5		821.2
Restructuring charges included in SG&A expenses	6.2		4.0		1.8		0		0.3		0.5		0.8		0		12.0		1.6
Asset impairments									0		0		1.7		0		0		1.7		3.1
Net earnings	$ 17.0		$ 1.4		$ 2.8		$ 2.5		$ 17.2		$ 18.8		$ 10.0		$ 12.9		$ 23.7		$ 58.9		$ 50.1
Basic earnings per share (in dollars per share)	$ 0.44	[1]	$ 0.03	[1]	$ 0.07	[1]	$ 0.07	[1]	$ 0.45	[1]	$ 0.49	[1]	$ 0.26	[1]	$ 0.34	[1]	$ 0.61	[1]	$ 1.54	[1]	$ 1.32
Basic earnings per share (in dollars per share)	$ 0.44	[1]	$ 0.03	[1]	$ 0.07	[1]	$ 0.07	[1]	$ 0.45	[1]	$ 0.49	[1]	$ 0.26	[1]	$ 0.34	[1]	$ 0.61	[1]	$ 1.54	[1]	$ 1.32
Dividends per share (in dollars per share)	$ 0.05		$ 0.05		$ 0.05		$ 0.05		$ 0.05		$ 0.05		$ 0.05		$ 0.05		$ 0.20		$ 0.20		$ 0.20

[1] Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

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Segment Disclosures - Segment Revenue Per Service (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2014	Sep. 28, 2014	Jun. 29, 2014	Mar. 30, 2014	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Revenue from Services:
Segment revenue for service	$ 1,425.0	$ 1,396.4	$ 1,410.5	$ 1,330.8	$ 1,385.8	$ 1,345.6	$ 1,366.9	$ 1,314.8	$ 5,562.7	$ 5,413.1	$ 5,450.5
Less: Intersegment revenue
Revenue from Services:
Segment revenue for service									(66.9)	(49.7)	(35.4)
Americas Commercial
Revenue from Services:
Segment revenue for service									2,609.6	2,545.6	2,642.4
Americas PT
Revenue from Services:
Segment revenue for service									956.0	967.8	992.1
Total Americas Commercial and PT
Revenue from Services:
Segment revenue for service									3,565.6	3,513.4	3,634.5
EMEA Commercial
Revenue from Services:
Segment revenue for service									894.7	877.5	854.6
EMEA PT
Revenue from Services:
Segment revenue for service									190.3	179.7	168.3
Total EMEA Commercial and PT
Revenue from Services:
Segment revenue for service									1,085.0	1,057.2	1,022.9
APAC Commercial
Revenue from Services:
Segment revenue for service									351.8	344.1	343.2
APAC PT
Revenue from Services:
Segment revenue for service									40.4	38.6	51.6
Total APAC Commercial and PT
Revenue from Services:
Segment revenue for service									392.2	382.7	394.8
OCG
Revenue from Services:
Segment revenue for service									$ 586.8	$ 509.5	$ 433.7

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Schedule II - Valuation Reserves (Details) - Valuation Reserves (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014		Dec. 29, 2013		Dec. 30, 2012
Allowance for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of year	$ 9.9		$ 10.4		$ 13.4
Charged to costs and expenses	4.8		2.5		1.1
Charged to other accounts	0.5	[1]	(0.5)	[1]	0
Currency exchange effects	(1.9)		0		0.1
Deductions from reserves	(2.6)		(2.5)		(4.2)
Balance at end of year	10.7		9.9		10.4
Deferred tax assets valuation allowance
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of year	56.3		58.4		65.4
Charged to costs and expenses	7.5		8.7		7.1
Charged to other accounts	0		0		(0.1)	[2]
Currency exchange effects	(2.7)		(1.1)		0.2
Deductions from reserves	(2.6)		(9.7)		(14.2)
Balance at end of year	$ 58.5		$ 56.3		$ 58.4

[1] Adjustment to provision for sales allowances charged to revenue from services.

[2] Allowance of companies acquired.

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Commitments - Future Minimum Commitments Under Operating Leases (Details) (USD $) In Millions, unless otherwise specified	Dec. 28, 2014
Fiscal year:
2015	$ 35.8
2016	25.7
2017	16.6
2018	9.7
2019	4.7
Later years	2.3
Total	$ 94.8

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Income Taxes - Narrative (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			3 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012	Mar. 31, 2013	Jan. 01, 2012
Income Taxes [Line Items]
U.S. statutory rate	35.00%
Tax credits	$ 17.5	$ 26.2	$ 7.9
Tax examination benefit			5.1
Loss carryforwards	47.2	49.4
Undistributed earnings of foreign subsidiaries	111.2
Unrecognized tax benefits	2.4	2.8	2.9		7.8
Unrecognized tax benefits that would impact effective tax rate	1.5	1.8	1.9
Unrecognized tax benefits, interest on income taxes expense	0.1	0.1	(0.3)
Unrecognized tax benefits, interest on income taxes accrued	0.4	0.3
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit	0.3
General Business Tax Credit Carryforward
Income Taxes [Line Items]
Tax benefit recognized with enacted law				9.3
General business credit carryforward	100.8
Foreign Tax Credit Carryforward
Income Taxes [Line Items]
General business credit carryforward	2.0
State Credit Carryforward
Income Taxes [Line Items]
General business credit carryforward	$ 0.2

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Segment Disclosures

12 Months Ended

Dec. 28, 2014

Segment Reporting [Abstract]

Segment Disclosures

Segment Disclosures

The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision makers (the Company's Chief Executive Officer and Chief Operating Officer) to determine resource allocation and assess performance. The Company’s seven reporting segments are: (1) Americas Commercial, (2) Americas Professional and Technical (“Americas PT”), (3) Europe, Middle East and Africa Commercial (“EMEA Commercial”), (4) Europe, Middle East and Africa Professional and Technical (“EMEA PT”), (5) Asia Pacific Commercial (“APAC Commercial”), (6) Asia Pacific Professional and Technical (“APAC PT”) and (7) Outsourcing and Consulting Group (“OCG”). 

The Commercial business segments within the Americas, EMEA and APAC regions represent traditional office services, contact-center staffing, marketing, electronic assembly, light industrial and, in the Americas, substitute teachers. The PT segments encompass a wide range of highly skilled temporary employees, including scientists, financial professionals, attorneys, engineers, IT specialists and healthcare workers. OCG includes recruitment process outsourcing (“RPO”), contingent workforce outsourcing (“CWO”), business process outsourcing (“BPO”), payroll process outsourcing (“PPO”), executive placement and career transition/outplacement services. Corporate expenses that directly support the operating units have been allocated to the Americas, EMEA and APAC regions and OCG based on a work effort, volume, or in the absence of a readily available measurement process, proportionately based on revenue from services. 

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 from continuing operations before taxes, for 2014, 2013 and 2012. 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. Effective with the first quarter of 2014, the project-based legal services business in the Americas PT segment was reclassified to the OCG segment and the prior periods were recast to conform to the current presentation.

	2014			2013			2012
	(In millions of dollars)
Revenue from Services:
Americas Commercial	$	2,609.6		$	2,545.6		$	2,642.4
Americas PT	956.0			967.8			992.1
Total Americas Commercial and PT	3,565.6			3,513.4			3,634.5
EMEA Commercial	894.7			877.5			854.6
EMEA PT	190.3			179.7			168.3
Total EMEA Commercial and PT	1,085.0			1,057.2			1,022.9
APAC Commercial	351.8			344.1			343.2
APAC PT	40.4			38.6			51.6
Total APAC Commercial and PT	392.2			382.7			394.8
OCG	586.8			509.5			433.7
Less: Intersegment revenue	(66.9		)	(49.7		)	(35.4		)
Consolidated Total	$	5,562.7		$	5,413.1		$	5,450.5

	2014			2013			2012
	(In millions of dollars)
Earnings from Operations:
Americas Commercial gross profit	$	379.6		$	370.2		$	388.2
Americas PT gross profit	155.9			155.1			150.5
Americas Region gross profit	535.5			525.3			538.7
Americas Region SG&A expenses	(446.8		)	(419.8		)	(400.1		)
Americas Region Earnings from Operations	88.7			105.5			138.6
EMEA Commercial gross profit	130.6			133.6			133.8
EMEA PT gross profit	42.9			42.6			43.0
EMEA Region gross profit	173.5			176.2			176.8
EMEA Region SG&A expenses	(161.4		)	(164.7		)	(168.1		)
EMEA Region Earnings from Operations	12.1			11.5			8.7
APAC Commercial gross profit	47.5			49.3			50.1
APAC PT gross profit	12.7			14.0			21.0
APAC Region gross profit	60.2			63.3			71.1
APAC Region SG&A expenses	(57.7		)	(60.5		)	(73.4		)
APAC Region Earnings (Loss) from Operations	2.5			2.8			(2.3		)
OCG gross profit	143.6			128.2			113.2
OCG SG&A expenses	(127.3		)	(111.5		)	(101.1		)
OCG asset impairments	—			(1.7		)	—
OCG Earnings from Operations	16.3			15.0			12.1
Less: Intersegment gross profit	(4.4		)	(3.5		)	(3.2		)
Less: Intersegment SG&A expenses	4.4			3.5			3.2
Net Intersegment Activity	—			—			—
Corporate	(97.7		)	(81.5		)	(84.8		)
Consolidated Total	21.9			53.3			72.3
Other Expense, Net	5.3			4.5			3.5
Earnings From Continuing Operations Before Taxes	$	16.6		$	48.8		$	68.8

A summary of revenue from services by geographic area for 2014, 2013 and 2012 follows:

	2014		2013		2012
	(In millions of dollars)
Revenue From Services:
Domestic	$	3,535.8	$	3,419.9	$	3,464.2
International	2,026.9		1,993.2		1,986.3
Total	$	5,562.7	$	5,413.1	$	5,450.5

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 2014 and 2013 follows:

	2014		2013
	(In millions of dollars)
Long-Lived Assets:
Domestic	$	77.5	$	74.3
International	15.5		17.7
Total	$	93.0	$	92.0

Long-lived assets include primarily property and equipment. 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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Restructuring - Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2014	Sep. 28, 2014	Jun. 29, 2014	Mar. 30, 2014	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 28, 2014	Dec. 29, 2013
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses	$ 6.2	$ 4.0	$ 1.8	$ 0	$ 0.3	$ 0.5	$ 0.8	$ 0	$ 12.0	$ 1.6
Restructuring Reserve	6.9				0				6.9	0
Americas
Restructuring Cost and Reserve [Line Items]
Number of branches closed									52
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									9.9
2014 Management Simplification Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									9.9
2014 Management Simplification Restructuring Plan | SG&A Expenses
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated									112
2014 Management Simplification Restructuring Plan | Americas
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									4.0
2014 Management Simplification Restructuring Plan | Americas | SG&A Expenses
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated									40
2014 Management Simplification Restructuring Plan | OCG
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									1.3
2014 Management Simplification Restructuring Plan | OCG | SG&A Expenses
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated									8
2014 Management Simplification Restructuring Plan | Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									$ 4.6
2014 Management Simplification Restructuring Plan | Corporate | SG&A Expenses
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated									64
Number of positions eliminated recognized as a one-time benefit									53
Number of positions eliminated recognized as contract termination costs									11

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Commitments (Tables)

12 Months Ended

Dec. 28, 2014

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Commitments Under Operating Leases

The following is a schedule by fiscal year of future minimum commitments under operating leases as of year-end 2014 (in millions of dollars):

Fiscal year:
2015	$	35.8
2016	25.7
2017	16.6
2018	9.7
2019	4.7
Later years	2.3
Total	$	94.8

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Supplemental Cash Flow Information - Changes In Operating Assets And Liabilities, Net of Acquisitions (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Supplemental Cash Flow Elements [Abstract]
Increase in trade accounts receivable	$ (155.4)	$ (14.6)	$ (57.9)
Increase in prepaid expenses and other assets	(14.7)	(11.8)	(12.5)
Increase in accounts payable and accrued liabilities	36.4	43.8	54.1
Increase in accrued payroll and related taxes	28.5	39.2	2.4
Decrease in accrued insurance	(2.7)	(2.9)	(8.7)
Increase (decrease) in income and other taxes	10.9	5.5	(3.7)
Total changes in operating assets and liabilities	$ (97.0)	$ 59.2	$ (26.3)

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Earnings Per Share (Tables)

12 Months Ended

Dec. 28, 2014

Earnings Per Share [Abstract]

Common Stock Reconciliation of Basic and Diluted Earnings Per Share

	2014			2013			2012
Earnings from continuing operations	$	23.7		$	58.9		$	49.7
Less: Earnings allocated to participating securities	(0.7		)	(1.5		)	(1.3		)
Earnings from continuing operations available to common shareholders	$	23.0		$	57.4		$	48.4
Earnings from discontinued operations	$	—		$	—		$	0.4
Less: Earnings allocated to participating securities	—			—			—
Earnings from discontinued operations available to common shareholders	$	—		$	—		$	0.4
Net earnings	$	23.7		$	58.9		$	50.1
Less: Earnings allocated to participating securities	(0.7		)	(1.5		)	(1.3		)
Net earnings available to common shareholders	$	23.0		$	57.4		$	48.8
Basic earnings per share on common stock:
Earnings from continuing operations	$	0.61		$	1.54		$	1.31
Earnings from discontinued operations	$	—		$	—		$	0.01
Net earnings	$	0.61		$	1.54		$	1.32
Diluted earnings per share on common stock:
Earnings from continuing operations	$	0.61		$	1.54		$	1.31
Earnings from discontinued operations	$	—		$	—		$	0.01
Net earnings	$	0.61		$	1.54		$	1.32
Average common shares outstanding (millions)
Basic	37.5			37.3			37.0
Diluted	37.5			37.3			37.0

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Restructuring - Summary of Restructuring Reserve (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2014	Sep. 28, 2014	Jun. 29, 2014	Mar. 30, 2014	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 28, 2014	Dec. 29, 2013
Restructuring Reserve [Roll Forward]
Balance as of year-end				$ 0					$ 0
Additions charged to reserve	6.2	4.0	1.8	0	0.3	0.5	0.8	0	12.0	1.6
Reductions for cash payments									(5.1)
Balance as of year-end	6.9				0				6.9	0
EMEA and APAC
Restructuring Reserve [Roll Forward]
Additions charged to reserve									2.1
Corporate
Restructuring Reserve [Roll Forward]
Additions charged to reserve									$ 9.9

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Income Taxes - Earnings (Loss) From Continuing Operations Before Taxes Per Jurisdiction (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Income Tax Disclosure [Abstract]
Domestic	$ 5.9	$ 35.1	$ 56.3
Foreign	10.7	13.7	12.5
Total	$ 16.6	$ 48.8	$ 68.8

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Earnings Per Share - Narrative (Details) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount	0.1	0.3	0.4

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Summary of Significant Accounting Policies – Goodwill and Other Intangible Assets (Details)	12 Months Ended
	Dec. 28, 2014
Minimum
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	15 years

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 28, 2014

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies 

Nature of Operations Kelly Services, Inc. is a global workforce solutions provider operating throughout the world.

Fiscal Year The Company’s fiscal year ends on the Sunday nearest to December 31. The three most recent years ended on December 28, 2014 (2014), December 29, 2013 (2013) and December 30, 2012 (2012), all of which contained 52 weeks. The Company’s operations in Brazil are accounted for on a one-month lag. The Company’s equity investment in TS Kelly Workforce Solutions is accounted for on a one-quarter lag (see Investment in Equity Affiliate footnote). Any material transactions in the intervening period are disclosed or accounted for in the current reporting period. Period costs included in selling, general and administrative (“SG&A”) expenses are recorded on a calendar-year basis. 

Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. 

Available-For-Sale Investment The Company’s available-for-sale investment, as further described in the Fair Value Measurements footnote, is carried at fair value with the unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Realized losses and declines in value below cost judged to be other-than-temporary are included as a component of asset impairments expense in the consolidated statement of earnings. The fair value of the available-for-sale investment is based on quoted market prices. 

Foreign Currency Translation All of the Company’s international subsidiaries use their local currency as their functional currency. Revenue and expense accounts of foreign subsidiaries are translated to U.S. dollars at average exchange rates, while assets and liabilities are translated to U.S. dollars at year-end exchange rates. Resulting translation adjustments, net of tax, where applicable, are reported as accumulated foreign currency translation adjustments in stockholders’ equity and are recorded as a component of accumulated other comprehensive income. 

Revenue Recognition Revenue from services is recognized as services are provided by the temporary or contract employees. Revenue from permanent placement services is recognized at the time the permanent placement candidate begins full-time employment. Revenue from other staffing fee-based consulting services is recognized when the services are provided. Provisions for sales allowances (billing adjustments related to errors, service issues and compromises on billing disputes), based on historical experience, are recognized at the time the related sale is recognized as a reduction in revenue from services. 

Allowance for Uncollectible Accounts Receivable The Company records an allowance for uncollectible accounts receivable based on historical loss experience, customer payment patterns and current economic trends. The reserve for sales allowances, as discussed above, is also included in the allowance for uncollectible accounts receivable. The Company reviews the adequacy of the allowance for uncollectible accounts receivable on a quarterly basis and, if necessary, increases or decreases the balance by recording a charge or credit to SG&A expenses for the portion of the adjustment relating to uncollectible accounts receivable, and a charge or credit to revenue from services for the portion of the adjustment relating to sales allowances.

Cost of Services 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 associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay, 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. 

Advertising Expenses Advertising expenses from continuing operations, which are expensed as incurred and are included in SG&A expenses, were $9.7 million in 2014, $8.9 million in 2013 and $8.5 million in 2012.

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the accounting for the allowance for uncollectible accounts receivable, workers’ compensation, goodwill and long-lived asset impairment, litigation costs and income taxes. Actual results could differ materially from those estimates.

Cash and Equivalents Cash and equivalents are stated at fair value. The Company considers securities with original maturities of three months or less to be cash and equivalents. 

Property and Equipment Property and equipment are stated at cost and are depreciated on a straight-line basis over their estimated useful lives. Cost and estimated useful lives of property and equipment by function are as follows:

Category	2014		2013		Life
	(In millions of dollars)
Land	$	3.8	$	3.8		—
Work in process	6.9		4.4			—
Buildings and improvements	59.7		58.9		15	to	45 years
Computer hardware and software	221.7		215.7		3	to	12 years
Equipment, furniture and fixtures	34.1		33.6			5	years
Leasehold improvements	33.8		34.1		The lesser of the life of the lease or 5 years.
Total property and equipment	$	360.0	$	350.5

The Company capitalizes external costs and internal payroll costs directly incurred in the development of software for internal use as required by the Internal-Use Software Subtopic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Work in process represents capitalized costs for internal use software not yet in service. Depreciation expense was $20.3 million for 2014, $18.4 million for 2013 and $19.0 million for 2012.

Operating Leases The Company recognizes rent expense on a straight-line basis over the lease term. This includes the impact of both scheduled rent increases and free or reduced rents (commonly referred to as “rent holidays”). The Company records allowances provided by landlords for leasehold improvements as deferred rent in the consolidated balance sheet and as operating cash flows in the consolidated statements of cash flows.

Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Purchased intangible assets with definite lives are recorded at estimated fair value at the date of acquisition and are amortized over their respective useful lives (from 3 to 15 years) on a straight-line basis or, if appropriate, on an accelerated basis commensurate with the related cash flows.

Impairment of Long-Lived Assets and Intangible Assets The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When estimated undiscounted future cash flows will not be sufficient to recover the asset group’s carrying amount, in which the long-lived asset being tested for impairment resides, the asset is written down to its estimated fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or estimated fair value less cost to sell.

We test goodwill for impairment at the reporting unit level annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. We have determined that our reporting units are the same as our operating and reportable segments based on our organizational structure and the financial information that is provided to and reviewed by management. We may use a qualitative assessment for one or more reporting units for the annual goodwill impairment test if we have determined that it is more likely than not that the fair value of the reporting unit(s) is more than their carrying value.

For reporting units where the qualitative assessment is not used, goodwill is tested for impairment using a two-step process. In the first step, the estimated fair value of a reporting unit is compared to its carrying value. If the estimated fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is not considered impaired and no further testing is required.

If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of a reporting unit, a second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference.

Accounts Payable Included in accounts payable are outstanding checks in excess of funds on deposit. Such amounts totaled $28.7 million and $22.7 million at year-end 2014 and 2013, respectively. 

Accrued Payroll and Related Taxes Included in accrued payroll and related taxes are outstanding checks in excess of funds on deposit. Such amounts totaled $6.7 million and $4.0 million at year-end 2014 and 2013, respectively. Payroll taxes for temporary employees are recognized proportionately to direct wages for interim periods based on expected full-year amounts. 

Income Taxes The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. 

The U.S. work opportunity credit is allowed for wages earned by employees in certain targeted groups. The actual amount of creditable wages in a particular period is estimated, since the credit is only available once an employee reaches a minimum employment period and the employee’s inclusion in a targeted group is certified by the applicable state. As these events often occur after the period the wages are earned, judgment is required in determining the amount of work opportunity credits accrued for in each period. We evaluate the accrual regularly throughout the year and make adjustments as needed.

Uncertain tax positions that are taken or expected to be taken in a tax return are recognized in the financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. 

Interest and penalties related to income taxes are accounted for as income tax expense. 

Stock-Based Compensation The Company may grant restricted stock awards and units (collectively, “restricted stock”), stock options (both incentive and nonqualified), stock appreciation rights and performance awards to key employees associated with the Company’s Class A stock. The Company utilizes the market price on the date of grant as the fair value for restricted stock and estimates the fair value of stock option awards on the date of grant using an option-pricing model. The value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods in SG&A expense in the Company’s consolidated statements of earnings. 

Earnings Per Share Restricted stock that entitle their holders to receive nonforfeitable dividends before vesting are considered participating securities and, therefore, are included in the calculation of earnings per share using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under this method, earnings from continuing operations (or net earnings) is reduced by the amount of dividends declared, and the remaining undistributed earnings is allocated to common stock and participating securities based on the proportion of each class’s weighted average shares outstanding to the total weighted average shares outstanding. The calculation of diluted earnings per share includes the effect of potential common shares outstanding in the average weighted shares outstanding.

Workers’ Compensation The Company establishes accruals for workers’ compensation claims utilizing actuarial methods to estimate the undiscounted future cash payments that will be made to satisfy the claims. The estimates are based both on historical experience as well as current legal, economic and regulatory factors. When claims exceed the applicable loss limit or self-insured retention and realization of recovery of the claim from existing insurance policies is deemed probable, the Company records a receivable from the insurance company for the excess amount. The receivable is included in prepaid expenses and other current assets and other assets in the consolidated balance sheet at year end. The Company regularly updates its estimates, and the ultimate cost of these claims may be greater than or less than the established accrual.

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Earnings Per Share - Common Stock Reconciliation of Basic and Diluted Earnings Per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended																12 Months Ended
	Dec. 28, 2014		Sep. 28, 2014		Jun. 29, 2014		Mar. 30, 2014		Dec. 29, 2013		Sep. 29, 2013		Jun. 30, 2013		Mar. 31, 2013		Dec. 28, 2014		Dec. 29, 2013		Dec. 30, 2012
Earnings Per Share [Abstract]
Earnings from continuing operations																	$ 23.7		$ 58.9		$ 49.7
Less: Earnings allocated to participating securities																	(0.7)		(1.5)		(1.3)
Earnings from continuing operations available to common shareholders																	23.0		57.4		48.4
Earnings from discontinued operations																	0		0		0.4
Less: Earnings allocated to participating securities																	0		0		0
Earnings from discontinued operations available to common shareholders																	0		0		0.4
Net earnings	17.0		1.4		2.8		2.5		17.2		18.8		10.0		12.9		23.7		58.9		50.1
Less: Earnings allocated to participating securities																	(0.7)		(1.5)		(1.3)
Net earnings available to common shareholders																	$ 23.0		$ 57.4		$ 48.8
Earnings Per Share, Basic
Earnings from continuing operations (in dollars per share)																	$ 0.61		$ 1.54		$ 1.31
Earnings from discontinued operations (in dollars per share)																	$ 0.00		$ 0.00		$ 0.01
Net earnings (in dollars per share)	$ 0.44	[1]	$ 0.03	[1]	$ 0.07	[1]	$ 0.07	[1]	$ 0.45	[1]	$ 0.49	[1]	$ 0.26	[1]	$ 0.34	[1]	$ 0.61	[1]	$ 1.54	[1]	$ 1.32
Earnings Per Share, Diluted
Earnings from continuing operations (in dollars per share)																	$ 0.61		$ 1.54		$ 1.31
Earnings from discontinued operations																	$ 0.00		$ 0.00		$ 0.01
Net earnings (in dollars per share)	$ 0.44	[1]	$ 0.03	[1]	$ 0.07	[1]	$ 0.07	[1]	$ 0.45	[1]	$ 0.49	[1]	$ 0.26	[1]	$ 0.34	[1]	$ 0.61	[1]	$ 1.54	[1]	$ 1.32
Weighted Average Number of Shares Outstanding
Basic (in shares)																	37.5		37.3		37.0
Diluted (in shares)																	37.5		37.3		37.0

[1] Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

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Segment Disclosures (Tables)

12 Months Ended

Dec. 28, 2014

Segment Reporting [Abstract]

Segment Revenue Per Service

	2014			2013			2012
	(In millions of dollars)
Revenue from Services:
Americas Commercial	$	2,609.6		$	2,545.6		$	2,642.4
Americas PT	956.0			967.8			992.1
Total Americas Commercial and PT	3,565.6			3,513.4			3,634.5
EMEA Commercial	894.7			877.5			854.6
EMEA PT	190.3			179.7			168.3
Total EMEA Commercial and PT	1,085.0			1,057.2			1,022.9
APAC Commercial	351.8			344.1			343.2
APAC PT	40.4			38.6			51.6
Total APAC Commercial and PT	392.2			382.7			394.8
OCG	586.8			509.5			433.7
Less: Intersegment revenue	(66.9		)	(49.7		)	(35.4		)
Consolidated Total	$	5,562.7		$	5,413.1		$	5,450.5

Segment Earnings from Operations

	2014			2013			2012
	(In millions of dollars)
Earnings from Operations:
Americas Commercial gross profit	$	379.6		$	370.2		$	388.2
Americas PT gross profit	155.9			155.1			150.5
Americas Region gross profit	535.5			525.3			538.7
Americas Region SG&A expenses	(446.8		)	(419.8		)	(400.1		)
Americas Region Earnings from Operations	88.7			105.5			138.6
EMEA Commercial gross profit	130.6			133.6			133.8
EMEA PT gross profit	42.9			42.6			43.0
EMEA Region gross profit	173.5			176.2			176.8
EMEA Region SG&A expenses	(161.4		)	(164.7		)	(168.1		)
EMEA Region Earnings from Operations	12.1			11.5			8.7
APAC Commercial gross profit	47.5			49.3			50.1
APAC PT gross profit	12.7			14.0			21.0
APAC Region gross profit	60.2			63.3			71.1
APAC Region SG&A expenses	(57.7		)	(60.5		)	(73.4		)
APAC Region Earnings (Loss) from Operations	2.5			2.8			(2.3		)
OCG gross profit	143.6			128.2			113.2
OCG SG&A expenses	(127.3		)	(111.5		)	(101.1		)
OCG asset impairments	—			(1.7		)	—
OCG Earnings from Operations	16.3			15.0			12.1
Less: Intersegment gross profit	(4.4		)	(3.5		)	(3.2		)
Less: Intersegment SG&A expenses	4.4			3.5			3.2
Net Intersegment Activity	—			—			—
Corporate	(97.7		)	(81.5		)	(84.8		)
Consolidated Total	21.9			53.3			72.3
Other Expense, Net	5.3			4.5			3.5
Earnings From Continuing Operations Before Taxes	$	16.6		$	48.8		$	68.8

Summary of Revenue From Services by Geographic Area

A summary of revenue from services by geographic area for 2014, 2013 and 2012 follows:

	2014		2013		2012
	(In millions of dollars)
Revenue From Services:
Domestic	$	3,535.8	$	3,419.9	$	3,464.2
International	2,026.9		1,993.2		1,986.3
Total	$	5,562.7	$	5,413.1	$	5,450.5

Summary of Long-Lived Assets By Geographic Area

A summary of long-lived assets information by geographic area as of year-end 2014 and 2013 follows:

	2014		2013
	(In millions of dollars)
Long-Lived Assets:
Domestic	$	77.5	$	74.3
International	15.5		17.7
Total	$	93.0	$	92.0

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Schedule II - Valuation Reserves

12 Months Ended

Dec. 28, 2014

Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure

SCHEDULE II - VALUATION RESERVES

(In millions of dollars)

			Additions
	Balance at beginning of year		Charged to costs and expenses	Charged to other accounts			Currency exchange effects		Deductions from reserves		Balance at end of year
Description
Fiscal year ended December 28, 2014
Reserve deducted in the balance sheet from the assets to which it applies -
Allowance for doubtful accounts	$	9.9	4.8	0.5		(1)	(1.9	)	(2.6	)	$	10.7
Deferred tax assets valuation allowance	$	56.3	7.5	—			(2.7	)	(2.6	)	$	58.5
Fiscal year ended December 29, 2013
Reserve deducted in the balance sheet from the assets to which it applies -
Allowance for doubtful accounts	$	10.4	2.5	(0.5	)	(1)	—		(2.5	)	$	9.9
Deferred tax assets valuation allowance	$	58.4	8.7	—			(1.1	)	(9.7	)	$	56.3
Fiscal year ended December 30, 2012
Reserve deducted in the balance sheet from the assets to which it applies -
Allowance for doubtful accounts	$	13.4	1.1	—			0.1		(4.2	)	$	10.4
Deferred tax assets valuation allowance	$	65.4	7.1	(0.1	)	(2)	0.2		(14.2	)	$	58.4

(1) Adjustment to provision for sales allowances charged to revenue from services.

(2) Allowance of companies acquired.

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Selected Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 28, 2014

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (unaudited)

Selected Quarterly Financial Data (unaudited)

	Fiscal Year 2014
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Year
	(In millions of dollars except per share data)
Revenue from services	$	1,330.8	$	1,410.5	$	1,396.4	$	1,425.0	$	5,562.7
Gross profit	222.3		228.1		225.4		232.6		908.4
SG&A expenses	216.0		222.2		218.3		230.0		886.5
Restructuring charges included in SG&A expenses	—		1.8		4.0		6.2		12.0
Net earnings	2.5		2.8		1.4		17.0		23.7
Basic earnings per share (1)	0.07		0.07		0.03		0.44		0.61
Diluted earnings per share (1)	0.07		0.07		0.03		0.44		0.61
Dividends per share	0.05		0.05		0.05		0.05		0.20

	Fiscal Year 2013
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Year
	(In millions of dollars except per share data)
Revenue from services	$	1,314.8	$	1,366.9	$	1,345.6	$	1,385.8	$	5,413.1
Gross profit	216.9		220.7		220.4		231.5		889.5
SG&A expenses	209.8		202.6		200.2		221.9		834.5
Restructuring charges included in SG&A expenses	—		0.8		0.5		0.3		1.6
Asset impairments	—		1.7		—		—		1.7
Net earnings	12.9		10.0		18.8		17.2		58.9
Basic earnings per share (1)	0.34		0.26		0.49		0.45		1.54
Diluted earnings per share (1)	0.34		0.26		0.49		0.45		1.54
Dividends per share	0.05		0.05		0.05		0.05		0.20

(1) Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

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Other Assets - Schedule of Other Assets (Details) (USD $) In Millions, unless otherwise specified	Dec. 28, 2014	Dec. 29, 2013
Other Assets [Abstract]
Deferred compensation plan (see Retirement Benefits footnote)	$ 149.0	$ 134.0
Available-for-sale investment (see Fair Value Measurements footnote)	97.9	80.7
Workers’ compensation receivable	11.5	13.4
Wage credit receivable	13.6	6.1
Intangibles, net of accumulated amortization of $17.8 million in 2014 and $17.7 million in 2013	2.7	4.3
Investment in equity affiliate (see Investment in Equity Affiliate footnote)	9.6	3.8
Other	15.8	15.8
Other assets	300.1	258.1
Intangibles, accumulated amortization	$ 17.8	$ 17.7

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Selected Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Dec. 28, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

	Fiscal Year 2014
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Year
	(In millions of dollars except per share data)
Revenue from services	$	1,330.8	$	1,410.5	$	1,396.4	$	1,425.0	$	5,562.7
Gross profit	222.3		228.1		225.4		232.6		908.4
SG&A expenses	216.0		222.2		218.3		230.0		886.5
Restructuring charges included in SG&A expenses	—		1.8		4.0		6.2		12.0
Net earnings	2.5		2.8		1.4		17.0		23.7
Basic earnings per share (1)	0.07		0.07		0.03		0.44		0.61
Diluted earnings per share (1)	0.07		0.07		0.03		0.44		0.61
Dividends per share	0.05		0.05		0.05		0.05		0.20

	Fiscal Year 2013
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Year
	(In millions of dollars except per share data)
Revenue from services	$	1,314.8	$	1,366.9	$	1,345.6	$	1,385.8	$	5,413.1
Gross profit	216.9		220.7		220.4		231.5		889.5
SG&A expenses	209.8		202.6		200.2		221.9		834.5
Restructuring charges included in SG&A expenses	—		0.8		0.5		0.3		1.6
Asset impairments	—		1.7		—		—		1.7
Net earnings	12.9		10.0		18.8		17.2		58.9
Basic earnings per share (1)	0.34		0.26		0.49		0.45		1.54
Diluted earnings per share (1)	0.34		0.26		0.49		0.45		1.54
Dividends per share	0.05		0.05		0.05		0.05		0.20

(1) Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 28, 2014

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations Kelly Services, Inc. is a global workforce solutions provider operating throughout the world.

Fiscal Year

Fiscal Year The Company’s fiscal year ends on the Sunday nearest to December 31. The three most recent years ended on December 28, 2014 (2014), December 29, 2013 (2013) and December 30, 2012 (2012), all of which contained 52 weeks. The Company’s operations in Brazil are accounted for on a one-month lag. The Company’s equity investment in TS Kelly Workforce Solutions is accounted for on a one-quarter lag (see Investment in Equity Affiliate footnote). Any material transactions in the intervening period are disclosed or accounted for in the current reporting period. Period costs included in selling, general and administrative (“SG&A”) expenses are recorded on a calendar-year basis. 

Principles of Consolidation

Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated.

Available-For-Sale Investment

Available-For-Sale Investment The Company’s available-for-sale investment, as further described in the Fair Value Measurements footnote, is carried at fair value with the unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Realized losses and declines in value below cost judged to be other-than-temporary are included as a component of asset impairments expense in the consolidated statement of earnings. The fair value of the available-for-sale investment is based on quoted market prices.

Foreign Currency Translation

Foreign Currency Translation All of the Company’s international subsidiaries use their local currency as their functional currency. Revenue and expense accounts of foreign subsidiaries are translated to U.S. dollars at average exchange rates, while assets and liabilities are translated to U.S. dollars at year-end exchange rates. Resulting translation adjustments, net of tax, where applicable, are reported as accumulated foreign currency translation adjustments in stockholders’ equity and are recorded as a component of accumulated other comprehensive income.

Revenue Recognition

Revenue Recognition Revenue from services is recognized as services are provided by the temporary or contract employees. Revenue from permanent placement services is recognized at the time the permanent placement candidate begins full-time employment. Revenue from other staffing fee-based consulting services is recognized when the services are provided. Provisions for sales allowances (billing adjustments related to errors, service issues and compromises on billing disputes), based on historical experience, are recognized at the time the related sale is recognized as a reduction in revenue from services.

Allowance for Uncollectible Accounts Receivable

Allowance for Uncollectible Accounts Receivable The Company records an allowance for uncollectible accounts receivable based on historical loss experience, customer payment patterns and current economic trends. The reserve for sales allowances, as discussed above, is also included in the allowance for uncollectible accounts receivable. The Company reviews the adequacy of the allowance for uncollectible accounts receivable on a quarterly basis and, if necessary, increases or decreases the balance by recording a charge or credit to SG&A expenses for the portion of the adjustment relating to uncollectible accounts receivable, and a charge or credit to revenue from services for the portion of the adjustment relating to sales allowances.

Cost of Services

Cost of Services 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 associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay, 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.

Advertising Expenses

Advertising Expenses Advertising expenses from continuing operations, which are expensed as incurred and are included in SG&A expenses,

Use of Estimates

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the accounting for the allowance for uncollectible accounts receivable, workers’ compensation, goodwill and long-lived asset impairment, litigation costs and income taxes. Actual results could differ materially from those estimates.

Cash and Equivalents

Cash and Equivalents Cash and equivalents are stated at fair value. The Company considers securities with original maturities of three months or less to be cash and equivalents.

Property and Equipment

Property and Equipment Property and equipment are stated at cost and are depreciated on a straight-line basis over their estimated useful lives. Cost and estimated useful lives of property and equipment by function are as follows:

Category	2014		2013		Life
	(In millions of dollars)
Land	$	3.8	$	3.8		—
Work in process	6.9		4.4			—
Buildings and improvements	59.7		58.9		15	to	45 years
Computer hardware and software	221.7		215.7		3	to	12 years
Equipment, furniture and fixtures	34.1		33.6			5	years
Leasehold improvements	33.8		34.1		The lesser of the life of the lease or 5 years.
Total property and equipment	$	360.0	$	350.5

The Company capitalizes external costs and internal payroll costs directly incurred in the development of software for internal use as required by the Internal-Use Software Subtopic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Work in process represents capitalized costs for internal use software not yet in service. Depreciation expense was $20.3 million for 2014, $18.4 million for 2013 and $19.0 million for 2012.

Operating Leases

Operating Leases The Company recognizes rent expense on a straight-line basis over the lease term. This includes the impact of both scheduled rent increases and free or reduced rents (commonly referred to as “rent holidays”). The Company records allowances provided by landlords for leasehold improvements as deferred rent in the consolidated balance sheet and as operating cash flows in the consolidated statements of cash flows.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Purchased intangible assets with definite lives are recorded at estimated fair value at the date of acquisition and are amortized over their respective useful lives (from 3 to 15 years) on a straight-line basis or, if appropriate, on an accelerated basis commensurate with the related cash flows.

Impairment of Long-Lived Assets and Intangible Assets

Impairment of Long-Lived Assets and Intangible Assets The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When estimated undiscounted future cash flows will not be sufficient to recover the asset group’s carrying amount, in which the long-lived asset being tested for impairment resides, the asset is written down to its estimated fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or estimated fair value less cost to sell.

We test goodwill for impairment at the reporting unit level annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. We have determined that our reporting units are the same as our operating and reportable segments based on our organizational structure and the financial information that is provided to and reviewed by management. We may use a qualitative assessment for one or more reporting units for the annual goodwill impairment test if we have determined that it is more likely than not that the fair value of the reporting unit(s) is more than their carrying value.

For reporting units where the qualitative assessment is not used, goodwill is tested for impairment using a two-step process. In the first step, the estimated fair value of a reporting unit is compared to its carrying value. If the estimated fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is not considered impaired and no further testing is required.

If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of a reporting unit, a second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference.

Accounts Payable, Accrued Payroll and Related Taxes

Accounts Payable Included in accounts payable are outstanding checks in excess of funds on deposit. Such amounts totaled $28.7 million and $22.7 million at year-end 2014 and 2013, respectively. 

Accrued Payroll and Related Taxes Included in accrued payroll and related taxes are outstanding checks in excess of funds on deposit. Such amounts totaled $6.7 million and $4.0 million at year-end 2014 and 2013, respectively. Payroll taxes for temporary employees are recognized proportionately to direct wages for interim periods based on expected full-year amounts.

Income Taxes

Income Taxes The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. 

The U.S. work opportunity credit is allowed for wages earned by employees in certain targeted groups. The actual amount of creditable wages in a particular period is estimated, since the credit is only available once an employee reaches a minimum employment period and the employee’s inclusion in a targeted group is certified by the applicable state. As these events often occur after the period the wages are earned, judgment is required in determining the amount of work opportunity credits accrued for in each period. We evaluate the accrual regularly throughout the year and make adjustments as needed.

Uncertain tax positions that are taken or expected to be taken in a tax return are recognized in the financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. 

Interest and penalties related to income taxes are accounted for as income tax expense.

Stock-Based Compensation

Stock-Based Compensation The Company may grant restricted stock awards and units (collectively, “restricted stock”), stock options (both incentive and nonqualified), stock appreciation rights and performance awards to key employees associated with the Company’s Class A stock. The Company utilizes the market price on the date of grant as the fair value for restricted stock and estimates the fair value of stock option awards on the date of grant using an option-pricing model. The value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods in SG&A expense in the Company’s consolidated statements of earnings. 

Earnings Per Share

Earnings Per Share Restricted stock that entitle their holders to receive nonforfeitable dividends before vesting are considered participating securities and, therefore, are included in the calculation of earnings per share using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under this method, earnings from continuing operations (or net earnings) is reduced by the amount of dividends declared, and the remaining undistributed earnings is allocated to common stock and participating securities based on the proportion of each class’s weighted average shares outstanding to the total weighted average shares outstanding. The calculation of diluted earnings per share includes the effect of potential common shares outstanding in the average weighted shares outstanding.

Workers' Compensation

Workers’ Compensation The Company establishes accruals for workers’ compensation claims utilizing actuarial methods to estimate the undiscounted future cash payments that will be made to satisfy the claims. The estimates are based both on historical experience as well as current legal, economic and regulatory factors. When claims exceed the applicable loss limit or self-insured retention and realization of recovery of the claim from existing insurance policies is deemed probable, the Company records a receivable from the insurance company for the excess amount. The receivable is included in prepaid expenses and other current assets and other assets in the consolidated balance sheet at year end. The Company regularly updates its estimates, and the ultimate cost of these claims may be greater than or less than the established accrual.

Segment Disclosures

The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision makers (the Company's Chief Executive Officer and Chief Operating Officer) to determine resource allocation and assess performance. The Company’s seven reporting segments are: (1) Americas Commercial, (2) Americas Professional and Technical (“Americas PT”), (3) Europe, Middle East and Africa Commercial (“EMEA Commercial”), (4) Europe, Middle East and Africa Professional and Technical (“EMEA PT”), (5) Asia Pacific Commercial (“APAC Commercial”), (6) Asia Pacific Professional and Technical (“APAC PT”) and (7) Outsourcing and Consulting Group (“OCG”). 

The Commercial business segments within the Americas, EMEA and APAC regions represent traditional office services, contact-center staffing, marketing, electronic assembly, light industrial and, in the Americas, substitute teachers. The PT segments encompass a wide range of highly skilled temporary employees, including scientists, financial professionals, attorneys, engineers, IT specialists and healthcare workers. OCG includes recruitment process outsourcing (“RPO”), contingent workforce outsourcing (“CWO”), business process outsourcing (“BPO”), payroll process outsourcing (“PPO”), executive placement and career transition/outplacement services. Corporate expenses that directly support the operating units have been allocated to the Americas, EMEA and APAC regions and OCG based on a work effort, volume, or in the absence of a readily available measurement process, proportionately based on revenue from services. 

New Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on operations and financial results. The amendments are effective prospectively for fiscal periods (and interim reporting periods within those years) beginning on or after December 15, 2014 (early adoption is permitted). The adoption of this guidance is not expected to have a material effect on our results of operations, financial position or liquidity.

In May 2014, the FASB issued new revenue recognition guidance under Accounting Standards Update (“ASU”) 2014-09 that will supersede the existing revenue recognition guidance under U.S. generally accepted accounting principles. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. This ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. Early adoption is not permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

In August 2014, the FASB issued ASU 2014-15 requiring management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern, which is currently performed by the external auditors. Management will be required to perform this assessment for both interim and annual reporting periods and must make certain disclosures if it concludes that substantial doubt exists. This ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. The adoption of this guidance is not expected to have a material effect on our financial statements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2014

Accounting Policies [Abstract]

Property and Equipment At Cost and Depreciable Useful Lives

Cost and estimated useful lives of property and equipment by function are as follows:

Category	2014		2013		Life
	(In millions of dollars)
Land	$	3.8	$	3.8		—
Work in process	6.9		4.4			—
Buildings and improvements	59.7		58.9		15	to	45 years
Computer hardware and software	221.7		215.7		3	to	12 years
Equipment, furniture and fixtures	34.1		33.6			5	years
Leasehold improvements	33.8		34.1		The lesser of the life of the lease or 5 years.
Total property and equipment	$	360.0	$	350.5

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Cash flows from operating activities:
Net earnings	$ 23.7	$ 58.9	$ 50.1
Noncash adjustments:
Impairment of assets	0	1.7	3.1
Depreciation and amortization	21.7	20.4	22.3
Provision for bad debts	5.3	2.0	1.1
Stock-based compensation	5.3	3.8	4.8
Deferred income taxes	(26.8)	(31.3)	4.7
Other, net	(2.2)	0.6	1.3
Changes in operating assets and liabilities	(97.0)	59.2	(26.3)
Net cash (used in) from operating activities	(70.0)	115.3	61.1
Cash flows from investing activities:
Capital expenditures	(21.7)	(20.0)	(21.5)
Investment in equity affiliate	(5.7)	0	(6.6)
Other investing activities	0.2	(0.8)	0
Net cash used in investing activities	(27.2)	(20.8)	(28.1)
Cash flows from financing activities:
Net change in short-term borrowings	63.9	(35.8)	(31.9)
Dividend payments	(7.6)	(7.6)	(7.6)
Other financing activities	0.3	(0.3)	0.1
Net cash from (used in) financing activities	56.6	(43.7)	(39.4)
Effect of exchange rates on cash and equivalents	(2.0)	(1.4)	1.7
Net change in cash and equivalents	(42.6)	49.4	(4.7)
Cash and equivalents at beginning of year	125.7	76.3	81.0
Cash and equivalents at end of year	$ 83.1	$ 125.7	$ 76.3

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 28, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements on a Recurring Basis

	Fair Value Measurements on a Recurring Basis As of Year-End 2014
Description	Total		Level 1		Level 2		Level 3
	(In millions of dollars)
Money market funds	$	3.3	$	3.3	$	—	$	—
Available-for-sale investment	97.9		97.9		—		—
Total assets at fair value	$	101.2	$	101.2	$	—	$	—

	Fair Value Measurements on a Recurring Basis As of Year-End 2013
Description	Total		Level 1		Level 2		Level 3
	(In millions of dollars)
Money market funds	$	2.9	$	2.9	$	—	$	—
Available-for-sale investment	80.7		80.7		—		—
Total assets at fair value	$	83.6	$	83.6	$	—	$	—

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Segment Disclosures - Summary of Revenue From Services by Geographic Area (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2014	Sep. 28, 2014	Jun. 29, 2014	Mar. 30, 2014	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from services	$ 1,425.0	$ 1,396.4	$ 1,410.5	$ 1,330.8	$ 1,385.8	$ 1,345.6	$ 1,366.9	$ 1,314.8	$ 5,562.7	$ 5,413.1	$ 5,450.5
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from services									3,535.8	3,419.9	3,464.2
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from services									$ 2,026.9	$ 1,993.2	$ 1,986.3

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Income Taxes (Tables)

12 Months Ended

Dec. 28, 2014

Income Tax Disclosure [Abstract]

Earnings (Loss) From Continuing Operations Before Taxes Per Jurisdiction

Earnings from continuing operations before taxes for the years 2014, 2013 and 2012 were taxed under the following jurisdictions: 

	2014		2013		2012
	(In million of dollars)
Domestic	$	5.9	$	35.1	$	56.3
Foreign	10.7		13.7		12.5
Total	$	16.6	$	48.8	$	68.8

Provision for Income Taxes From Continuing Operations

The provision for income taxes from continuing operations was as follows:

	2014			2013			2012
	(In millions of dollars)
Current tax expense:
U.S. federal	$	5.6		$	7.3		$	1.4
U.S. state and local	1.4			3.5			3.0
Foreign	12.7			10.4			10.0
Total current	19.7			21.2			14.4
Deferred tax expense:
U.S. federal	(22.0		)	(26.9		)	4.7
U.S. state and local	(0.4		)	(1.6		)	0.9
Foreign	(4.4		)	(2.8		)	(0.9		)
Total deferred	(26.8		)	(31.3		)	4.7
Total provision	$	(7.1	)	$	(10.1	)	$	19.1

Deferred Taxes

Deferred taxes are comprised of the following:

	2014			2013
	(In millions of dollars)
Depreciation and amortization	$	(11.6	)	$	(10.4	)
Employee compensation and benefit plans	70.4			68.1
Workers’ compensation	21.6			22.8
Unrealized gain on securities	(23.7		)	(17.2		)
Loss carryforwards	47.2			49.4
Credit carryforwards	103.0			82.0
Other, net	8.2			0.2
Valuation allowance	(58.5		)	(56.3		)
Net deferred tax assets	$	156.6		$	138.6

The deferred tax balance is classified in the consolidated balance sheet as:

	2014			2013
	(In millions of dollars)
Current assets, deferred tax	$	34.4		$	35.5
Noncurrent deferred tax asset	146.3			121.7
Current liabilities, income and other taxes	(0.4		)	(0.4		)
Noncurrent liabilities, other long-term liabilities	(23.7		)	(18.2		)
	$	156.6		$	138.6

Differences Between Income Taxes From Continuing Operations and U.S. Statutory Rate

The differences between income taxes from continuing operations for financial reporting purposes and the U.S. statutory rate of 35% are as follows:

	2014			2013			2012
	(In millions of dollars)
Income tax based on statutory rate	$	5.8		$	17.1		$	24.1
State income taxes, net of federal benefit	0.7			1.2			2.6
General business credits	(17.5		)	(26.2		)	(7.9		)
Life insurance cash surrender value	(2.2		)	(5.8		)	(3.4		)
Foreign items	(0.2		)	0.3			1.6
Foreign business taxes	4.2			3.9			4.5
Foreign tax law change	(2.2		)	(4.6		)	—
Non-deductible expenses	2.1			1.6			3.1
Change in deferred tax realizability	2.2			2.8			(0.7		)
Uncertain tax positions	—			—			(4.8		)
Other, net	—			(0.4		)	—
Total	$	(7.1	)	$	(10.1	)	$	19.1

Net Tax Effect of State and Foreign Loss Carryforwards

The net tax effect of state and foreign loss carryforwards at year-end 2014 totaled $47.2 million, which expire as follows (in millions of dollars): 

Year	Amount
2015-2017	$	1.9
2018-2020	2.5
2021-2024	1.2
2025-2031	0.3
No expiration	41.3
Total	$	47.2

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 

	2014			2013			2012
	(In millions of dollars)
Balance at beginning of the year	$	2.8		$	2.9		$	7.8
Additions for prior years’ tax positions	—			—			0.4
Reductions for prior years’ tax positions	(0.4		)	(0.1		)	(5.3		)
Additions for settlements	—			—			—
Reductions for settlements	—			—			—
Reductions for expiration of statutes	—			—			—
Balance at end of the year	$	2.4		$	2.8		$	2.9

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Investment in Equity Affiliate (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012	Nov. 01, 2012
Schedule of Equity Method Investments [Line Items]
Ownership percentage by noncontrolling owners			30.00%
Paid-in capital charge for difference between carrying value of noncontrolling interest and fair value of consideration			$ 1.2
Equity method investments	9.6	3.8
Payments to Acquire Equity Method Investments	5.7	0	6.6
Loss representing difference between carrying value contributed and fair value of retained investment			0.7
Amount of pro-rata share of goodwill			0.6
TS Kelly
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage				49.00%
Equity method investments				5.1
China-based Staffing Company
Schedule of Equity Method Investments [Line Items]
Payments to Acquire Equity Method Investments	4.8
Prior Year Understatement of Net Cash from Operating Activities
Schedule of Equity Method Investments [Line Items]
Amount of misstatement in current year financial statements		$ 1.4

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Income Taxes - Differences Between Income Taxes From Continuing Operations and U.S. Statutory Rate (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Income Tax Disclosure [Abstract]
Income tax based on statutory rate	$ 5.8	$ 17.1	$ 24.1
State income taxes, net of federal benefit	0.7	1.2	2.6
General business credits	(17.5)	(26.2)	(7.9)
Life insurance cash surrender value	(2.2)	(5.8)	(3.4)
Foreign items	(0.2)	0.3	1.6
Foreign business taxes	4.2	3.9	4.5
Foreign tax law change	(2.2)	(4.6)	0
Non-deductible expenses	2.1	1.6	3.1
Change in deferred tax realizability	2.2	2.8	(0.7)
Uncertain tax positions	0	0	(4.8)
Other, net	0	(0.4)	0
Total provision	$ (7.1)	$ (10.1)	$ 19.1

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Consolidated Statements of Earnings (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2014		Dec. 29, 2013		Dec. 30, 2012
Income Statement [Abstract]
Revenue from services	$ 5,562.7		$ 5,413.1		$ 5,450.5
Cost of services	4,654.3		4,523.6		4,553.9
Gross profit	908.4		889.5		896.6
Selling, general and administrative expenses	886.5		834.5		821.2
Asset impairments	0		1.7		3.1
Earnings from operations	21.9		53.3		72.3
Other expense, net	5.3		4.5		3.5
Earnings from continuing operations before taxes	16.6		48.8		68.8
Income tax (benefit) expense	(7.1)		(10.1)		19.1
Earnings from continuing operations	23.7		58.9		49.7
Earnings from discontinued operations, net of tax	0		0		0.4
Net earnings	$ 23.7		$ 58.9		$ 50.1
Basic earnings per share
Earnings from continuing operations (in dollars per share)	$ 0.61		$ 1.54		$ 1.31
Earnings from discontinued operations (in dollars per share)	$ 0.00		$ 0.00		$ 0.01
Net earnings (in dollars per share)	$ 0.61	[1]	$ 1.54	[1]	$ 1.32
Diluted earnings per share
Earnings from continuing operations (in dollars per share)	$ 0.61		$ 1.54		$ 1.31
Earnings from discontinued operations (in dollars per share)	$ 0.00		$ 0.00		$ 0.01
Net earnings (in dollars per share)	$ 0.61	[1]	$ 1.54	[1]	$ 1.32
Dividends per share (in dollars per share)	$ 0.20		$ 0.20		$ 0.20
Average shares outstanding (millions):
Basic (in shares)	37.5		37.3		37.0
Diluted (in shares)	37.5		37.3		37.0

[1] Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

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Summary of Significant Accounting Policies - Narrative (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Accounting Policies [Abstract]
Advertising expense	$ 9.7	$ 8.9	$ 8.5
Short-term Debt [Line Items]
Accounts payable and accrued liabilities	364.0	342.4
Accrued payroll and related taxes	308.5	294.9
Bank Overdrafts
Short-term Debt [Line Items]
Accounts payable and accrued liabilities	28.7	22.7
Accrued payroll and related taxes	$ 6.7	$ 4.0

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Dec. 28, 2014	Dec. 29, 2013
Allowance for trade accounts receivable	$ 10.7	$ 9.9
Class A common stock
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares issued (in shares)	36.6	36.6
Treasury stock, Class A shares (in shares)	2.4	2.7
Class B common stock
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares issued (in shares)	3.5	3.5

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Stockholders' Equity - Narrative (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Class of Stock [Line Items]
Dividends	$ 7.6	$ 7.6	$ 7.6
Temp Holdings Investment
Class of Stock [Line Items]
Income tax valuation allowance		$ 1.1
Class A common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	100,000,000
Class B common stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	10,000,000

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Other Assets (Tables)

12 Months Ended

Dec. 28, 2014

Other Assets [Abstract]

Schedule of Other Assets

Included in other assets are the following:

	2014		2013
	(In millions of dollars)
Deferred compensation plan (see Retirement Benefits footnote)	$	149.0	$	134.0
Available-for-sale investment (see Fair Value Measurements footnote)	97.9		80.7
Workers’ compensation receivable	11.5		13.4
Wage credit receivable	13.6		6.1
Intangibles, net of accumulated amortization of $17.8 million in 2014 and $17.7 million in 2013	2.7		4.3
Investment in equity affiliate (see Investment in Equity Affiliate footnote)	9.6		3.8
Other	15.8		15.8
Other assets	$	300.1	$	258.1

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Stock-Based Compensation - Summary of Status of Stock Option Grants (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding at year-end 2013 (in shares)	162,613
Granted (in shares)	0	0	0
Exercised (in shares)	0	0	0
Forfeited (in shares)	0
Expired (in shares)	(129,613)
Outstanding at year-end 2014 (in shares)	33,000	162,613
Options exercisable at year-end (in shares)	33,000
Outstanding at year-end 2013 (in dollars per share)	$ 27.84
Granted (in dollars per share)	$ 0.00
Exercised (in dollars per share)	$ 0.00
Forfeited (in dollars per share)	$ 0.00
Expired (in dollars per share)	$ 27.96
Outstanding at year-end 2014 (in dollars per share)	$ 27.37	$ 27.84
Options exercisable at year-end (in dollars per share)	$ 27.37
Outstanding, remaining contractual term	7 months 24 days
Options exercisable, remaining contractual term	7 months 24 days
Outstanding, aggregate intrinsic value	$ 0
Exercisable, aggregate intrinsic value	$ 0

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Supplemental Cash Flow Information

12 Months Ended

Dec. 28, 2014

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Changes in operating assets and liabilities, net of acquisitions and the effect of deconsolidated entities, as disclosed in the statements of cash flows, for the fiscal years 2014, 2013 and 2012, respectively, were as follows: 

	2014			2013			2012
	(In millions of dollars)
Increase in trade accounts receivable	$	(155.4	)	$	(14.6	)	$	(57.9	)
Increase in prepaid expenses and other assets	(14.7		)	(11.8		)	(12.5		)
Increase in accounts payable and accrued liabilities	36.4			43.8			54.1
Increase in accrued payroll and related taxes	28.5			39.2			2.4
Decrease in accrued insurance	(2.7		)	(2.9		)	(8.7		)
Increase (decrease) in income and other taxes	10.9			5.5			(3.7		)
Total changes in operating assets and liabilities	$	(97.0	)	$	59.2		$	(26.3	)

The Company paid interest of $1.6 million, $2.0 million and $2.6 million in 2014, 2013 and 2012, respectively. The Company paid income taxes of $10.9 million in 2014, $16.9 million in 2013 and $18.8 million in 2012. 

During 2013, the Company determined that both cash and equivalents and accrued payroll and related taxes were understated by $4.8 million as of the 2012 year end. The Company determined that the impact of this error on the consolidated balance sheets and consolidated statements of cash flows was not material. As a result of correcting the error in 2013, changes in operating assets and liabilities and net cash from operating activities are both overstated by $4.8 million in the consolidated statements of cash flows for 2013. Additionally, in 2013, a cash payment of $1.4 million to TS Kelly was improperly classified in operating activities in the consolidated statements of cash flows, resulting in the understatement of operating activities and overstatement of investing activities in the consolidated statements of cash flows for 2013.

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 28, 2014

Stockholders' Equity Note [Abstract]

Changes in Accumulated Other Comprehensive Income by Component, Net of Tax

	Foreign Currency Translation Adjustments				Unrealized Gains and Losses on Investment		Pension Liability Adjustments				Total
	(In millions of dollars)
Balance at year-end 2013	$	18.1			$	44.8	$	(1.5	)		$	61.4
Other comprehensive income (loss) before reclassifications	(20.2		)		11.5		(0.8		)		(9.5		)
Amounts reclassified from accumulated other comprehensive income	(0.9		)	(1)	—		0.1			(2)	(0.8		)
Net current-period other comprehensive income	(21.1		)		11.5		(0.7		)		(10.3		)
Balance at year-end 2014	$	(3.0	)		$	56.3	$	(2.2	)		$	51.1

(1) Amount was recorded in the other expense, net line item in the consolidated statement of earnings.

(2) Amount was recorded in the SG&A expenses line item in the consolidated statement of earnings.

	Foreign Currency Translation Adjustments				Unrealized Gains and Losses on Investment			Pension Liability Adjustments				Total
	(In millions of dollars)
Balance at year-end 2012	$	24.9			$	13.6		$	(3.1	)		$	35.4
Other comprehensive income (loss) before reclassifications	(6.7		)		31.2		(3)	1.4				25.9
Amounts reclassified from accumulated other comprehensive income	(0.1		)	(1)	—			0.2			(2)	0.1
Net current-period other comprehensive income	(6.8		)		31.2			1.6				26.0
Balance at year-end 2013	$	18.1			$	44.8		$	(1.5	)		$	61.4

(1) Amount was recorded in the other expense, net line item in the consolidated statement of earnings.

(2) Amount was recorded in the SG&A expenses line item in the consolidated statement of earnings.

(3) Includes utilization of a $1.1 million income tax valuation allowance relating to the Temp Holdings investment.

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Contingencies

12 Months Ended

Dec. 28, 2014

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

During the fourth quarter of 2013, a Louisiana jury rendered an award of $4.4 million, pursuant to litigation brought by Robert and Margaret Ward against the Jefferson Parish School Board and Kelly Services. Under the verdict, Kelly’s share of the liability consists of $2.7 million plus a portion of pre-and-post-judgment interest. During April 2014, Kelly reached an agreement with the plaintiffs pursuant to which Kelly and its primary insurer agreed to pay $1.0 million to the plaintiffs to satisfy the judgment against the primary insurer and Kelly, however, Kelly’s umbrella/excess insurer elected to continue to appeal the decision. In April 2014, Kelly paid $0.25 million of the settlement amount, which was previously accrued, and our primary insurer paid $0.75 million. Per the terms of the settlement with Kelly and its primary insurer, Plaintiffs must first exhaust all legal remedies to collect from our umbrella/excess insurer and its surety before pursuing Kelly for any remaining verdict amount that may be owed at the conclusion of the appellate process. In January 2015, Plaintiffs filed a Satisfaction of Judgment with the Court, pursuant to an agreement reached with the excess insurer, thereby resolving this matter and foreclosing any further financial risk to Kelly. In light of this settlement, during the first quarter of 2015 Kelly expects to reduce its accrual for litigation costs, and the offsetting insurance receivable, by $1.7 million.

The Company is continuously engaged in litigation arising in the ordinary course of its business, typically matters alleging employment discrimination, alleging wage and hour violations or enforcing the restrictive covenants in the Company’s employment agreements. While there is no expectation that any of these matters will have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is always subject to inherent uncertainty and the Company is not able to reasonably predict if any matter will be resolved in a manner that is materially adverse to the Company. At year-end 2014 and 2013, the gross accrual for litigation costs amounted to $5.7 million and $6.9 million, respectively, and related insurance recoveries totaled $1.7 million and $3.1 million, respectively.

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Income Taxes - Provision for Income Taxes From Continuing Operations (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Current tax expense:
U.S. federal	$ 5.6	$ 7.3	$ 1.4
U.S. state and local	1.4	3.5	3.0
Foreign	12.7	10.4	10.0
Total current	19.7	21.2	14.4
Deferred tax expense:
U.S. federal	(22.0)	(26.9)	4.7
U.S. state and local	(0.4)	(1.6)	0.9
Foreign	(4.4)	(2.8)	(0.9)
Total deferred	(26.8)	(31.3)	4.7
Total provision	$ (7.1)	$ (10.1)	$ 19.1

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Consolidated Statements of Stockholders' Equity (USD $) In Millions, unless otherwise specified	Total	Class A common stock	Class B common stock	Class A common stock, Treasury Stock	Class B common stock, Treasury Stock	Paid-in Capital	Earnings Invested in the Business	Accumulated Other Comprehensive Income
Balance at beginning of year at Jan. 01, 2012		$ 36.6	$ 3.5	$ (66.3)	$ (0.6)	$ 28.8	$ 657.5	$ 16.2
Increase (Decrease) in Stockholders' Equity
Issuance of restricted stock and other				5.3	0
Issuance of restricted stock and other						(1.7)
Net earnings	50.1						50.1
Dividends	(7.6)						(7.6)
Other comprehensive income, net of tax	19.2							19.2
Balance at end of year at Dec. 30, 2012	741.0	36.6	3.5	(61.0)	(0.6)	27.1	700.0	35.4
Increase (Decrease) in Stockholders' Equity
Issuance of restricted stock and other				5.4	0
Issuance of restricted stock and other						(1.1)
Net earnings	58.9						58.9
Dividends	(7.6)						(7.6)
Other comprehensive income, net of tax	26.0							26.0
Balance at end of year at Dec. 29, 2013	822.6	36.6	3.5	(55.6)	(0.6)	26.0	751.3	61.4
Increase (Decrease) in Stockholders' Equity
Issuance of restricted stock and other				6.4	0
Issuance of restricted stock and other						(1.1)
Net earnings	23.7						23.7
Dividends	(7.6)						(7.6)
Other comprehensive income, net of tax	(10.3)							(10.3)
Balance at end of year at Dec. 28, 2014	$ 833.7	$ 36.6	$ 3.5	$ (49.2)	$ (0.6)	$ 24.9	$ 767.4	$ 51.1

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Statement of Comprehensive Income [Abstract]
Net earnings	$ 23.7	$ 58.9	$ 50.1
Other comprehensive income, net of tax:
Foreign currency translation adjustments, net of tax expense of $0.6 million and tax benefit of $0.0 million and $0.4 million, respectively	(20.2)	(6.7)	4.9
Less: Reclassification adjustments included in net earnings	(0.9)	(0.1)	0.7
Foreign currency translation adjustments	(21.1)	(6.8)	5.6
Unrealized gains on investment, net of tax expense of $8.2 million, $16.2 million and $0.0 million, respectively	11.5	31.2	13.1
Pension liability adjustments, net of tax expense of $0.0 million, $0.2 million and $0.0 million, respectively	(0.8)	1.4	0.3
Less: Reclassification adjustments included in net earnings	0.1	0.2	0.2
Pension liability adjustments	(0.7)	1.6	0.5
Other comprehensive (loss) income	(10.3)	26.0	19.2
Comprehensive Income	$ 13.4	$ 84.9	$ 69.3

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Stockholders' Equity

12 Months Ended

Dec. 28, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Common Stock

The authorized capital stock of the Company is 100,000,000 shares of Class A common stock and 10,000,000 shares of Class B common stock. Class A shares have no voting rights and are not convertible. Class B shares have voting rights and are convertible by the holder into Class A shares on a share-for-share basis at any time. Both classes of stock have identical rights in the event of liquidation. 

Class A shares and Class B shares are both entitled to receive dividends, subject to the limitation that no cash dividend on the Class B shares may be declared unless the Board of Directors declares an equal or larger cash dividend on the Class A shares. As a result, a cash dividend may be declared on the Class A shares without declaring a cash dividend on the Class B shares. 

During 2014, 2013 and 2012, the Company made dividend payments totaling $7.6 million in each year.

Accumulated Other Comprehensive Income

The changes in accumulated other comprehensive income by component, net of tax, during 2014 and 2013 are included in the table below. Amounts in parentheses indicate debits.

	Foreign Currency Translation Adjustments				Unrealized Gains and Losses on Investment		Pension Liability Adjustments				Total
	(In millions of dollars)
Balance at year-end 2013	$	18.1			$	44.8	$	(1.5	)		$	61.4
Other comprehensive income (loss) before reclassifications	(20.2		)		11.5		(0.8		)		(9.5		)
Amounts reclassified from accumulated other comprehensive income	(0.9		)	(1)	—		0.1			(2)	(0.8		)
Net current-period other comprehensive income	(21.1		)		11.5		(0.7		)		(10.3		)
Balance at year-end 2014	$	(3.0	)		$	56.3	$	(2.2	)		$	51.1

(1) Amount was recorded in the other expense, net line item in the consolidated statement of earnings.

(2) Amount was recorded in the SG&A expenses line item in the consolidated statement of earnings.

	Foreign Currency Translation Adjustments				Unrealized Gains and Losses on Investment			Pension Liability Adjustments				Total
	(In millions of dollars)
Balance at year-end 2012	$	24.9			$	13.6		$	(3.1	)		$	35.4
Other comprehensive income (loss) before reclassifications	(6.7		)		31.2		(3)	1.4				25.9
Amounts reclassified from accumulated other comprehensive income	(0.1		)	(1)	—			0.2			(2)	0.1
Net current-period other comprehensive income	(6.8		)		31.2			1.6				26.0
Balance at year-end 2013	$	18.1			$	44.8		$	(1.5	)		$	61.4

(1) Amount was recorded in the other expense, net line item in the consolidated statement of earnings.

(2) Amount was recorded in the SG&A expenses line item in the consolidated statement of earnings.

(3) Includes utilization of a $1.1 million income tax valuation allowance relating to the Temp Holdings investment.

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 28, 2014	Jun. 29, 2014	Feb. 01, 2015
Document Information [Line Items]
Entity Registrant Name	Kelly Services Inc
Document Type	10-K
Current Fiscal Year End Date	--12-28
Entity Public Float		$ 521,767,042
Amendment Flag	false
Entity Central Index Key	0000055135
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 28, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding			34,274,299
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding			3,451,261

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Earnings Per Share

12 Months Ended

Dec. 28, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The reconciliation of basic earnings per share on common stock for the year-end 2014, 2013 and 2012 follows (in millions of dollars except per share data).

	2014			2013			2012
Earnings from continuing operations	$	23.7		$	58.9		$	49.7
Less: Earnings allocated to participating securities	(0.7		)	(1.5		)	(1.3		)
Earnings from continuing operations available to common shareholders	$	23.0		$	57.4		$	48.4
Earnings from discontinued operations	$	—		$	—		$	0.4
Less: Earnings allocated to participating securities	—			—			—
Earnings from discontinued operations available to common shareholders	$	—		$	—		$	0.4
Net earnings	$	23.7		$	58.9		$	50.1
Less: Earnings allocated to participating securities	(0.7		)	(1.5		)	(1.3		)
Net earnings available to common shareholders	$	23.0		$	57.4		$	48.8
Basic earnings per share on common stock:
Earnings from continuing operations	$	0.61		$	1.54		$	1.31
Earnings from discontinued operations	$	—		$	—		$	0.01
Net earnings	$	0.61		$	1.54		$	1.32
Diluted earnings per share on common stock:
Earnings from continuing operations	$	0.61		$	1.54		$	1.31
Earnings from discontinued operations	$	—		$	—		$	0.01
Net earnings	$	0.61		$	1.54		$	1.32
Average common shares outstanding (millions)
Basic	37.5			37.3			37.0
Diluted	37.5			37.3			37.0

Due to the fact that there were no potentially dilutive common shares outstanding during the period, the computations of basic and diluted earnings per share on common stock are the same for 2014, 2013 and 2012. Stock options representing 0.1 million, 0.3 million and 0.4 million shares for 2014, 2013 and 2012, respectively, were excluded from the computation of diluted earnings (loss) per share due to their anti-dilutive effect. 

We have presented earnings per share for our two classes of common stock on a combined basis. This presentation is consistent with the earnings per share computations that result for each class of common stock utilizing the two-class method as described in ASC Topic 260, “Earnings Per Share”. The two-class method is an earnings allocation formula which determines earnings per share for each class of common stock according to the dividends declared (or accumulated) and participation rights in the undistributed earnings. 

In applying the two class method, we have determined that the undistributed earnings should be allocated to each class on a pro rata basis after consideration of all of the participation rights of the Class B shares (including voting and conversion rights) and our history of paying dividends equally to each class of common stock on a per share basis.

The Company’s Restated Certificate of Incorporation allows the Board of Directors to declare a cash dividend to Class A shares without declaring equal dividends to the Class B shares. Class B shares’ voting and conversion rights, however, effectively allow the Class B shares to participate in dividends equally with Class A shares on a per share basis. 

The Class B shares are the only shares with voting rights. The Class B shareholders are therefore able to exercise voting control with respect to all matters requiring stockholder approval, including the election of or removal of directors. The Board of Directors has historically declared and the Company historically has paid equal per share dividends on both the Class A and Class B shares. Each class has participated equally in all dividends declared since 1987.

In addition, Class B shares are convertible, at the option of the holder, into Class A shares on a one for one basis. As a result, Class B shares can participate equally in any dividends declared on the Class A shares by exercising their conversion rights.

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Segment Disclosures - Narrative (Details)	12 Months Ended
	Dec. 28, 2014
Segment Reporting [Abstract]
Number of reportable segments	7

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Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax expense (benefit)	$ 0.6	$ 0	$ (0.4)
Tax expense on unrealized gains (losses)	8.2	16.2	0
Pension liability adjustments, tax expense	$ 0	$ 0.2	$ 0

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Investment in Equity Affiliate

12 Months Ended

Dec. 28, 2014

Equity Method Investments and Joint Ventures [Abstract]

Investment in Equity Affiliate

Investment in Equity Affiliate

In 2012, we purchased the remaining 30% noncontrolling interest in our China subsidiaries, and recorded a charge to paid-in capital of $1.2 million for the difference between the carrying value of the noncontrolling interest and the fair value of the consideration provided. 

On July 24, 2012, we entered into an agreement with Temp Holdings to form a venture, TS Kelly Workforce Solutions (“TS Kelly”), in order to expand both companies’ presence in North Asia. On November 1, 2012, we contributed our China, Hong Kong and South Korea subsidiaries in exchange for a 49% ownership interest in TS Kelly. Consequently, we deconsolidated the operations of those entities and recorded a $5.1 million investment in other assets on the consolidated balance sheet, which represented the estimated fair value of our ownership interest in TS Kelly at year-end 2012. The operating results of our interest in TS Kelly are accounted for on a one-quarter lag under the equity method; accordingly, our consolidated financial statements include operating results for TS Kelly beginning in 2013. Our 49% share of TS Kelly’s operating results is recorded in other expense, net in the consolidated statement of earnings (see Other Expense, Net footnote). 

In 2012, we recorded a loss of $0.7 million in other expense, net, which represented the difference between the carrying value of net assets contributed to the venture and the fair value of our retained investment in TS Kelly. As part of this transaction, we allocated a pro-rata share of goodwill related to the contributed entities in our APAC PT and OCG segments amounting to $0.6 million. 

The total investment in TS Kelly was $9.6 million as of year-end 2014 and $3.8 million as of year-end 2013. In 2014, we made net cash contributions and loans to TS Kelly totaling $5.7 million, which includes $4.8 million for the acquisition of a China-based staffing company. In 2013, we made a loan to TS Kelly of $1.4 million. The amount due to or due from TS Kelly was immaterial as of year-end 2014 and 2013.

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Restructuring

12 Months Ended

Dec. 28, 2014

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

On September 15, 2014, the Board of Directors of the Company approved a management simplification restructuring plan (“Plan”) that was subsequently communicated to Kelly personnel in October 2014. The Plan was completed during the fourth quarter of 2014.

We began 2014 with a firm commitment to growth and a clear plan for accelerating Kelly’s strategic priorities through significant investments in our PT specialties, our OCG practices and our centralized approach to servicing large customers. We have executed these investments on schedule, and the Plan now brings additional efficiency to our operating models across the organization by:

• In the Americas segment, we have:

◦ Streamlined our local U.S. field operations through the closure or consolidation of 52 branches.

◦ Simplified our centralized large account delivery structure.

◦ Flattened our U.S. management structure.

• In OCG, we have aligned resources more efficiently against areas that deliver rapid growth and return on investment.

• We downsized our headquarters operations.

Headcount reduction related to the above actions totaled 112 permanent positions across our global workforce, including several senior leadership positions that were vacated at the end of December 2014. The headcount reduction related to the Americas segment was 40 positions recognized as contract termination costs, OCG headcount was reduced by 8 positions, also recognized as contract termination costs, and corporate headquarters was reduced by 64 positions, 53 of which were recognized as a one-time benefit and 11 of which were recognized as contract termination costs. These costs were recorded entirely in corporate SG&A expenses.

In addition to the Plan, in 2014, restructuring costs were incurred related primarily to exiting the staffing business in Sweden, exiting branches in Australia and consolidating back office functions in Australia and New Zealand. These were contract termination costs which were recorded in the EMEA and APAC regions in the segment footnote.

Restructuring costs incurred in 2014 totaled $12.0 million as detailed below.

	Severance Costs		Lease Termination Costs		Total
	(In millions of dollars)
Americas	$	1.7	$	2.3	$	4.0
OCG	1.3		—		1.3
Headquarters	4.6		—		4.6
Plan total	7.6		2.3		9.9
EMEA and APAC restructuring	0.9		1.2		2.1
Total restructuring	$	8.5	$	3.5	$	12.0

A summary of our global restructuring balance sheet accrual, primarily included in accrued payroll and related taxes, is detailed below (in millions of dollars). Restructuring activities in 2013 and the related year-end accrual were immaterial.

Balance as of year-end 2013	$	—
Additions charged to corporate under the Plan	9.9
Additions charged to EMEA and APAC operations	2.1
Reductions for cash payments related to all restructuring activities	(5.1		)
Balance as of year-end 2014	$	6.9

The remaining balance of $6.9 million as of year-end 2014 represents primarily severance costs and the majority is expected to be paid in 2015. No additional charges are expected to be incurred related to the Plan or to activities in Sweden, Australia and New Zealand.

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Commitments

12 Months Ended

Dec. 28, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments

Commitments

The Company conducts its field operations primarily from leased facilities. The following is a schedule by fiscal year of future minimum commitments under operating leases as of year-end 2014 (in millions of dollars):

Fiscal year:
2015	$	35.8
2016	25.7
2017	16.6
2018	9.7
2019	4.7
Later years	2.3
Total	$	94.8

Lease expense from continuing operations for fiscal 2014, 2013 and 2012 amounted to $43.5 million, $45.6 million and $48.3 million, respectively. 

In addition to operating lease agreements, the Company has entered into noncancelable purchase obligations totaling $25.9 million. These obligations relate primarily to voice and data communications services and online tools which the Company expects to utilize generally within the next two fiscal years, in the ordinary course of business. The Company has no material unrecorded commitments, losses, contingencies or guarantees associated with any related parties or unconsolidated entities. See the Debt and Retirement Benefits footnotes for commitments related to debt and pension obligations.

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Stock-Based Compensation

12 Months Ended

Dec. 28, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Under the Equity Incentive Plan (the “Plan”), the Company may grant stock options (both incentive and nonqualified), stock appreciation rights, restricted stock and performance awards to key employees associated with the Company’s Class A stock. The Plan provides that the maximum number of shares available for grants is 10 percent of the outstanding Class A stock, adjusted for Plan activity over the preceding five years. Shares available for future grants at year-end 2014 under the Plan were 1,170,406. The Company issues shares out of treasury stock to satisfy stock-based awards. The Company presently has no intent to repurchase additional shares for the purpose of satisfying stock-based awards. 

The Company recognized stock-based compensation cost of $7.6 million in 2014 and $6.0 million in 2013 and 2012, as well as related tax benefits of $2.9 million in 2014 and $2.3 million in 2013 and 2012. 

Restricted Stock

Restricted stock, which typically vests over 4 years, is issued to certain key employees and is subject to forfeiture until the end of an established restriction period. The Company utilizes the market price of its Class A stock on the date of grant as the fair value of restricted stock and expenses the fair value on a straight-line basis over the vesting period.

A summary of the status of nonvested restricted stock under the Plan as of year-end 2014 and changes during this period is presented as follows:

	Restricted Stock		Weighted Average Grant Date Fair Value
Nonvested at year-end 2013	1,128,600		$	17.06
Granted	539,600		15.63
Vested	(423,925	)	16.92
Forfeited	(51,725	)	16.98
Nonvested at year-end 2014	1,192,550		$	16.47

As of year-end 2014, unrecognized compensation cost related to unvested restricted stock totaled $16.4 million. The weighted average period over which this cost is expected to be recognized is approximately two years. The weighted average grant date fair value per share of restricted stock granted during 2014, 2013 and 2012 was $15.63, $19.74 and $12.98, respectively. The total fair value of restricted stock, which vested during 2014, 2013 and 2012, was $7.1 million, $6.5 million and $4.1 million, respectively.

Stock Options

Under the terms of the Plan, stock options may not be granted at prices less than the fair value of the Company’s Class A stock on the date of grant, nor for a term exceeding 10 years, and typically vest over 3 years. The Company expenses the fair value of stock option grants on a straight-line basis over the vesting period. No stock options were granted in 2014, 2013 and 2012. 

A summary of the status of stock option grants under the Plan as of year-end 2014 and changes during this period is presented as follows:

	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at year-end 2013	162,613		$	27.84
Granted	—		—
Exercised	—		—
Forfeited	—		—
Expired	(129,613	)	27.96
Outstanding at year-end 2014	33,000		$	27.37	0.65	$	—
Options exercisable at year-end 2014	33,000		$	27.37	0.65	$	—

The table above includes 24,000 of non-employee director shares outstanding at year-end 2014.

As of year-end 2014, there was no unrecognized compensation cost related to unvested stock options. No stock options were exercised in 2014, 2013 and 2012. 

Windfall tax benefits, which were included in the “Other financing activities” component of net cash from financing activities in the consolidated statements of cash flows, totaled $0.4 million in 2014, $0.5 million for 2013 and was insignificant for 2012.

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Segment Disclosures - Summary of Long-Lived Assets By Geographic Area (Details) (USD $) In Millions, unless otherwise specified	Dec. 28, 2014	Dec. 29, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 93.0	$ 92.0
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	77.5	74.3
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 15.5	$ 17.7

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Debt

12 Months Ended

Dec. 28, 2014

Debt Disclosure [Abstract]

Debt

Debt

Short-Term Debt

The Company has a $200.0 million revolving credit facility (the "Facility") with a termination date of December 11, 2018. The Facility allows for borrowings in various currencies and is used to fund working capital, acquisitions, and general corporate needs.

At year-end 2014, borrowings under the Facility were $0.4 million with an interest rate of 3.75%, and the Facility had a remaining capacity of $199.6 million. At year-end 2013, there were no borrowings under the Facility and the remaining borrowing capacity was $200.0 million. To maintain availability of the funds, we pay a facility fee on the full amount of the Facility, regardless of usage. The facility fee varies based on the Company’s leverage ratio as defined in the agreement. At year-end 2014 and 2013, the Facility had a facility fee of 25 basis points. The Facility’s financial covenants and restrictions are described below, all of which were met at year-end 2014:

• We must maintain a certain minimum ratio of earnings before interest, taxes, depreciation, amortization and certain cash and non-cash charges that are non-recurring in nature (“EBITDA”) to interest expense (“Interest Coverage Ratio”) as of the end of any fiscal quarter.

• We must maintain a certain maximum ratio of total indebtedness to the sum of net worth and total indebtedness at all times.

• Dividends, stock buybacks and similar transactions are limited to certain maximum amounts.

• We must adhere to other operating restrictions relating to the conduct of business, such as certain limitations on asset sales and the type and scope of investments. 

The Company has a Receivables Purchase Agreement with Kelly Receivables Funding, LLC, a wholly owned bankruptcy remote special purpose subsidiary of the Company (the “Receivables Entity”), related to its $150 million, three-year, securitization facility (“Securitization Facility”). The Receivables Purchase Agreement will terminate December 9, 2016, unless terminated earlier pursuant to its terms.

Under the Securitization Facility, the Company will sell certain trade receivables and related rights (“Receivables”), on a revolving basis, to the Receivables Entity. The Receivables Entity may from time to time sell an undivided variable percentage ownership interest in the Receivables. The Securitization Facility also allows for the issuance of standby letters of credit (“SBLC”). The Securitization Facility contains a cross-default clause that could result in termination if defaults occur under our other loan agreements. The Securitization Facility also contains certain restrictions based on the performance of the Receivables. 

As of year-end 2014, the Securitization Facility carried $88.0 million of short-term borrowings at a rate of 0.57%, SBLCs of $54.5 million related to workers’ compensation at a rate of 0.40% and a remaining capacity of $7.5 million. As of year-end 2013, the Securitization Facility carried $28.0 million of short-term borrowings at a rate of 0.57%, SBLCs of $55.0 million related to workers’ compensation at a rate of 0.40% and a remaining capacity of $67.0 million. The rates above for short-term borrowings include the LIBOR interest rate and a utilization rate on the amount of our borrowings. The rates for the SBLCs represent a utilization rate on the outstanding amount of the SBLCs. In addition, we pay a facility fee of 40 basis points on the full amount of the Securitization Facility, regardless of usage.

The Receivables Entity’s sole business consists of the purchase or acceptance through capital contributions of trade accounts receivable and related rights from the Company. As described above, the Receivables Entity may retransfer these receivables or grant a security interest in those receivables under the terms and conditions of the Receivables Purchase Agreement. The Receivables Entity is a separate legal entity with its own creditors who would be entitled, if it were ever liquidated, to be satisfied out of its assets prior to any assets or value in the Receivables Entity becoming available to its equity holders. The assets of the Receivables Entity are not available to pay creditors of the Company or any of its other subsidiaries. The assets and liabilities of the Receivables Entity are included in the consolidated financial statements of the Company. 

The Company had total unsecured, uncommitted short-term local credit facilities of $15.5 million as of year-end 2014. Borrowings under these lines totaled $3.5 million and $0.3 million at year-end 2014 and 2013, respectively. The interest rate for these borrowings was 2.50% at year-end 2014 and 10.75% at year-end 2013.

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Stockholders' Equity - Changes in Accumulated Other Comprehensive Income by Component, Net of Tax (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014		Dec. 29, 2013		Dec. 30, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at year-end	$ 61.4		$ 35.4
Other comprehensive income (loss) before reclassifications	(9.5)		25.9
Amounts reclassified from accumulated other comprehensive income	(0.8)		0.1
Net current-period other comprehensive income	(10.3)		26.0		19.2
Balance at year-end	51.1		61.4		35.4
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at year-end	18.1		24.9
Other comprehensive income (loss) before reclassifications	(20.2)		(6.7)
Amounts reclassified from accumulated other comprehensive income	(0.9)	[1]	(0.1)	[1]
Net current-period other comprehensive income	(21.1)		(6.8)
Balance at year-end	(3.0)		18.1
Unrealized Gains and Losses on Investment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at year-end	44.8		13.6
Other comprehensive income (loss) before reclassifications	11.5		31.2	[2]
Amounts reclassified from accumulated other comprehensive income	0		0
Net current-period other comprehensive income	11.5		31.2
Balance at year-end	56.3		44.8
Pension Liability Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at year-end	(1.5)		(3.1)
Other comprehensive income (loss) before reclassifications	(0.8)		1.4
Amounts reclassified from accumulated other comprehensive income	0.1	[3]	0.2	[3]
Net current-period other comprehensive income	(0.7)		1.6
Balance at year-end	$ (2.2)		$ (1.5)

[1] Amount was recorded in the other expense, net line item in the consolidated statement of earnings.

[2] Includes utilization of a $1.1 million income tax valuation allowance relating to the Temp Holdings investment.

[3] Amount was recorded in the SG&A expenses line item in the consolidated statement of earnings.

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Goodwill

12 Months Ended

Dec. 28, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The changes in the net carrying amount of goodwill for the fiscal years 2014 and 2013 are included in the tables below. Effective with the first quarter of 2014, the project-based legal services business in the Americas PT segment was reclassified to the OCG segment. Accordingly, the related portion of Americas PT goodwill was reclassified to OCG during the first quarter of 2014. Adjustments to Americas Commercial goodwill in 2013 represent acquisition adjustments related to changes in estimated tax liabilities assumed for the 2011 purchase of Brazilian operations.

	As of Year-End 2013								As of Year-End 2014
	Goodwill, Gross		Accumulated Impairment Losses			Adjustments to Goodwill			Goodwill, Gross		Accumulated Impairment Losses			Goodwill, Net
	(In millions of dollars)
Americas
Americas Commercial	$	40.0	$	(16.4	)	$	—		$	40.0	$	(16.4	)	$	23.6
Americas PT	39.2		—			(1.3		)	37.9		—			37.9
Total Americas	79.2		(16.4		)	(1.3		)	77.9		(16.4		)	61.5
EMEA
EMEA Commercial	50.4		(50.4		)	—			50.4		(50.4		)	—
EMEA PT	22.0		(22.0		)	—			22.0		(22.0		)	—
Total EMEA	72.4		(72.4		)	—			72.4		(72.4		)	—
APAC
APAC Commercial	12.1		(12.1		)	—			12.1		(12.1		)	—
APAC PT	1.4		—			—			1.4		—			1.4
Total APAC	13.5		(12.1		)	—			13.5		(12.1		)	1.4
OCG	26.1		—			1.3			27.4		—			27.4
Consolidated Total	$	191.2	$	(100.9	)	$	—		$	191.2	$	(100.9	)	$	90.3

	As of Year-End 2012							As of Year-End 2013
	Goodwill, Gross		Accumulated Impairment Losses			Adjustments to Goodwill		Goodwill, Gross		Accumulated Impairment Losses			Goodwill, Net
	(In millions of dollars)
Americas
Americas Commercial	$	39.2	$	(16.4	)	$	0.8	$	40.0	$	(16.4	)	$	23.6
Americas PT	39.2		—			—		39.2		—			39.2
Total Americas	78.4		(16.4		)	0.8		79.2		(16.4		)	62.8
EMEA
EMEA Commercial	50.4		(50.4		)	—		50.4		(50.4		)	—
EMEA PT	22.0		(22.0		)	—		22.0		(22.0		)	—
Total EMEA	72.4		(72.4		)	—		72.4		(72.4		)	—
APAC
APAC Commercial	12.1		(12.1		)	—		12.1		(12.1		)	—
APAC PT	1.4		—			—		1.4		—			1.4
Total APAC	13.5		(12.1		)	—		13.5		(12.1		)	1.4
OCG	26.1		—			—		26.1		—			26.1
Consolidated Total	$	190.4	$	(100.9	)	$	0.8	$	191.2	$	(100.9	)	$	90.3

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Other Assets

12 Months Ended

Dec. 28, 2014

Other Assets [Abstract]

Other Assets

Other Assets

Included in other assets are the following:

	2014		2013
	(In millions of dollars)
Deferred compensation plan (see Retirement Benefits footnote)	$	149.0	$	134.0
Available-for-sale investment (see Fair Value Measurements footnote)	97.9		80.7
Workers’ compensation receivable	11.5		13.4
Wage credit receivable	13.6		6.1
Intangibles, net of accumulated amortization of $17.8 million in 2014 and $17.7 million in 2013	2.7		4.3
Investment in equity affiliate (see Investment in Equity Affiliate footnote)	9.6		3.8
Other	15.8		15.8
Other assets	$	300.1	$	258.1

Intangible amortization expense, which is included in SG&A expenses, was $1.4 million, $2.0 million and $3.3 million in 2014, 2013 and 2012, respectively. Wage credit receivable is related to a tax law to enhance the competitiveness of businesses in France.

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Retirement Benefits

12 Months Ended

Dec. 28, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement Benefits

Retirement Benefits

The Company provides a qualified defined contribution plan covering substantially all U.S.-based full-time employees, except officers and certain other employees. Upon approval by the Board of Directors, a discretionary contribution based on eligible wages may be funded annually. The plan also offers a savings feature with Company matching contributions. Assets of this plan are held by an independent trustee for the sole benefit of participating employees. 

A nonqualified plan is provided for officers and certain other employees. Upon approval by the Board of Directors, a discretionary contribution based on eligible wages may be made annually. This plan also includes provisions for salary deferrals and Company matching contributions. 

Effective January 1, 2015, the Board of Directors approved amendments to the qualified and unqualified defined contribution plans to increase Company matching contributions and eliminate the discretionary contributions.

In addition to the plans above, the Company also provides a qualified plan and a nonqualified plan to certain U.S.-based temporary employees. 

The liability for the nonqualified plans was $147.3 million and $135.6 million as of year-end 2014 and 2013, respectively, and is included in current accrued payroll and related taxes and noncurrent accrued retirement benefits. The cost of participants’ earnings on this liability, which were included in SG&A expenses, were earnings of $7.6 million in 2014, $15.7 million in 2013 and $10.2 million in 2012. In connection with the administration of these plans, the Company has purchased company-owned variable universal life insurance policies insuring the lives of certain officers and key employees. The cash surrender value of these policies, which is based primarily on investments in mutual funds and can only be used for payment of the Company’s obligations related to the non-qualified deferred compensation plan noted above, was $149.0 million and $134.0 million at year-end 2014 and 2013, respectively. The cash surrender value of these insurance policies is included in other assets. Tax-free earnings on these assets, which were included in SG&A expenses, were $7.3 million in 2014, $17.4 million in 2013 and $10.3 million in 2012. 

The net expense for retirement benefits for the qualified and nonqualified plans, including Company matching and discretionary contributions for full-time employees, totaled $6.1 million in 2014, $6.2 million in 2013 and $9.7 million in 2012. The expense related to retirement plan contributions for temporary employees is reimbursed by our customers. 

In addition, the Company also has several defined benefit pension plans in locations outside of the United States. The total projected benefit obligation, assets and unfunded liability for these plans as of year-end 2014 were $14.8 million, $9.5 million and $5.3 million, respectively. The total projected benefit obligation, assets and unfunded liability for these plans as of year-end 2013 were $13.7 million, $9.2 million and $4.5 million, respectively. Total pension expense for these plans was $0.9 million, $0.7 million and $1.1 million in 2014, 2013 and 2012, respectively. Pension contributions and the amount of accumulated other comprehensive income expected to be recognized in 2015 are not significant.

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Stock-Based Compensation - Summary of Status of Nonvested Restricted Stock Awards and Units (Details) (USD $)	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested restricted stock at year-end 2013 (in shares)	1,128,600
Granted (in shares)	539,600
Vested (in shares)	(423,925)
Forfeited (in shares)	(51,725)
Nonvested restricted stock at year-end 2014 (in shares)	1,192,550	1,128,600
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Nonvested weighted average grant date fair value at year-end 2013 (in dollars per share)	$ 17.06
Granted (in dollars per share)	$ 15.63	$ 19.74	$ 12.98
Vested (in dollars per share)	$ 16.92
Forfeited (in dollars per share)	$ 16.98
Nonvested weighted average grant date fair value at year-end 2014 (in dollars per share)	$ 16.47	$ 17.06

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Related Party Transactions (Details) (Class B common stock, Executive Chairman and Chairman of the Board and Director, Terence E. Adderley)	Dec. 28, 2014
Class B common stock | Executive Chairman and Chairman of the Board and Director | Terence E. Adderley
Related Party Transaction [Line Items]
Ownership Percentage of Parent Company	93.00%

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Other Expense, Net - Schedule of Other Expense, Net (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Other Income and Expenses [Abstract]
Interest income	$ 0.5	$ 0.4	$ 1.0
Interest expense	(3.0)	(2.8)	(3.4)
Dividend income	0.7	0.6	0.6
Foreign exchange losses	(1.0)	(1.5)	(1.0)
Net loss on equity investment (see Investment in Equity Affiliate footnote)	(2.5)	(1.3)	(0.7)
Other	0	0.1	0
Other expense, net	$ (5.3)	$ (4.5)	$ (3.5)

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Stock-Based Compensation - Narrative (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan activity adjustment period	5 years
Number of shares available for grant (in shares)	1,170,406
Tax benefit	$ 2.9	$ 2.3	$ 2.3
Award vesting period	3 years
Unrecognized compensation cost, unvested restricted stock	16.4
Compensation cost not yet recognized, period for recognition	2 years
Grants in period (in dollars per share)	$ 15.63	$ 19.74	$ 12.98
Vested in period, fair value	7.1	6.5	4.1
Term to exercise stock option before expiration (not more than)	10 years
Grants in period (in shares)	0	0	0
Outstanding (in shares)	33,000	162,613
Unrecognized compensation cost, unvested stock options	0
Exercises in period (in shares)	0	0	0
Stock-based compensation cost
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation cost	7.6	6.0	6.0
Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)	24,000
Windfall
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess Tax Benefit from Share-based Compensation, Financing Activities	$ 0.4	$ 0.5
Minimum | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Class A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for grants	10.00%

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Goodwill (Tables)

12 Months Ended

Dec. 28, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the Net Carrying Amount of Goodwill

	As of Year-End 2013								As of Year-End 2014
	Goodwill, Gross		Accumulated Impairment Losses			Adjustments to Goodwill			Goodwill, Gross		Accumulated Impairment Losses			Goodwill, Net
	(In millions of dollars)
Americas
Americas Commercial	$	40.0	$	(16.4	)	$	—		$	40.0	$	(16.4	)	$	23.6
Americas PT	39.2		—			(1.3		)	37.9		—			37.9
Total Americas	79.2		(16.4		)	(1.3		)	77.9		(16.4		)	61.5
EMEA
EMEA Commercial	50.4		(50.4		)	—			50.4		(50.4		)	—
EMEA PT	22.0		(22.0		)	—			22.0		(22.0		)	—
Total EMEA	72.4		(72.4		)	—			72.4		(72.4		)	—
APAC
APAC Commercial	12.1		(12.1		)	—			12.1		(12.1		)	—
APAC PT	1.4		—			—			1.4		—			1.4
Total APAC	13.5		(12.1		)	—			13.5		(12.1		)	1.4
OCG	26.1		—			1.3			27.4		—			27.4
Consolidated Total	$	191.2	$	(100.9	)	$	—		$	191.2	$	(100.9	)	$	90.3

	As of Year-End 2012							As of Year-End 2013
	Goodwill, Gross		Accumulated Impairment Losses			Adjustments to Goodwill		Goodwill, Gross		Accumulated Impairment Losses			Goodwill, Net
	(In millions of dollars)
Americas
Americas Commercial	$	39.2	$	(16.4	)	$	0.8	$	40.0	$	(16.4	)	$	23.6
Americas PT	39.2		—			—		39.2		—			39.2
Total Americas	78.4		(16.4		)	0.8		79.2		(16.4		)	62.8
EMEA
EMEA Commercial	50.4		(50.4		)	—		50.4		(50.4		)	—
EMEA PT	22.0		(22.0		)	—		22.0		(22.0		)	—
Total EMEA	72.4		(72.4		)	—		72.4		(72.4		)	—
APAC
APAC Commercial	12.1		(12.1		)	—		12.1		(12.1		)	—
APAC PT	1.4		—			—		1.4		—			1.4
Total APAC	13.5		(12.1		)	—		13.5		(12.1		)	1.4
OCG	26.1		—			—		26.1		—			26.1
Consolidated Total	$	190.4	$	(100.9	)	$	0.8	$	191.2	$	(100.9	)	$	90.3

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Restructuring - Restructuring Costs Incurred (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2014	Sep. 28, 2014	Jun. 29, 2014	Mar. 30, 2014	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 28, 2014	Dec. 29, 2013
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses	$ 6.2	$ 4.0	$ 1.8	$ 0	$ 0.3	$ 0.5	$ 0.8	$ 0	$ 12.0	$ 1.6
Severance Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									8.5
Lease Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									3.5
EMEA and APAC
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									2.1
EMEA and APAC | Severance Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									0.9
EMEA and APAC | Lease Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									1.2
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									9.9
2014 Management Simplification Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									9.9
2014 Management Simplification Restructuring Plan | Severance Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									7.6
2014 Management Simplification Restructuring Plan | Lease Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									2.3
2014 Management Simplification Restructuring Plan | Americas
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									4.0
2014 Management Simplification Restructuring Plan | Americas | Severance Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									1.7
2014 Management Simplification Restructuring Plan | Americas | Lease Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									2.3
2014 Management Simplification Restructuring Plan | OCG
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									1.3
2014 Management Simplification Restructuring Plan | OCG | Severance Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									1.3
2014 Management Simplification Restructuring Plan | OCG | Lease Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									0
2014 Management Simplification Restructuring Plan | Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									4.6
2014 Management Simplification Restructuring Plan | Corporate | Severance Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									4.6
2014 Management Simplification Restructuring Plan | Corporate | Lease Termination Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges included in SG&A expenses									$ 0

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Income Taxes

12 Months Ended

Dec. 28, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Earnings from continuing operations before taxes for the years 2014, 2013 and 2012 were taxed under the following jurisdictions: 

	2014		2013		2012
	(In million of dollars)
Domestic	$	5.9	$	35.1	$	56.3
Foreign	10.7		13.7		12.5
Total	$	16.6	$	48.8	$	68.8

The provision for income taxes from continuing operations was as follows:

	2014			2013			2012
	(In millions of dollars)
Current tax expense:
U.S. federal	$	5.6		$	7.3		$	1.4
U.S. state and local	1.4			3.5			3.0
Foreign	12.7			10.4			10.0
Total current	19.7			21.2			14.4
Deferred tax expense:
U.S. federal	(22.0		)	(26.9		)	4.7
U.S. state and local	(0.4		)	(1.6		)	0.9
Foreign	(4.4		)	(2.8		)	(0.9		)
Total deferred	(26.8		)	(31.3		)	4.7
Total provision	$	(7.1	)	$	(10.1	)	$	19.1

Deferred taxes are comprised of the following:

	2014			2013
	(In millions of dollars)
Depreciation and amortization	$	(11.6	)	$	(10.4	)
Employee compensation and benefit plans	70.4			68.1
Workers’ compensation	21.6			22.8
Unrealized gain on securities	(23.7		)	(17.2		)
Loss carryforwards	47.2			49.4
Credit carryforwards	103.0			82.0
Other, net	8.2			0.2
Valuation allowance	(58.5		)	(56.3		)
Net deferred tax assets	$	156.6		$	138.6

The deferred tax balance is classified in the consolidated balance sheet as:

	2014			2013
	(In millions of dollars)
Current assets, deferred tax	$	34.4		$	35.5
Noncurrent deferred tax asset	146.3			121.7
Current liabilities, income and other taxes	(0.4		)	(0.4		)
Noncurrent liabilities, other long-term liabilities	(23.7		)	(18.2		)
	$	156.6		$	138.6

The differences between income taxes from continuing operations for financial reporting purposes and the U.S. statutory rate of 35% are as follows:

	2014			2013			2012
	(In millions of dollars)
Income tax based on statutory rate	$	5.8		$	17.1		$	24.1
State income taxes, net of federal benefit	0.7			1.2			2.6
General business credits	(17.5		)	(26.2		)	(7.9		)
Life insurance cash surrender value	(2.2		)	(5.8		)	(3.4		)
Foreign items	(0.2		)	0.3			1.6
Foreign business taxes	4.2			3.9			4.5
Foreign tax law change	(2.2		)	(4.6		)	—
Non-deductible expenses	2.1			1.6			3.1
Change in deferred tax realizability	2.2			2.8			(0.7		)
Uncertain tax positions	—			—			(4.8		)
Other, net	—			(0.4		)	—
Total	$	(7.1	)	$	(10.1	)	$	19.1

General business credits primarily represent U.S. work opportunity credits. In 2012, the work opportunity credit was available only for veterans and pre-2012 hires. The full credit was retroactively reinstated on January 2, 2013, resulting in the inclusion of $9.3 million of tax benefits during 2013 that would have been recognized in 2012 if the law had been in effect. Foreign business taxes include the French business tax and other taxes based on revenue less certain expenses and are classified as income taxes under ASC Topic 740 (“ASC 740”), Income Taxes. The Company closed income tax examinations in 2012, resulting in a $5.1 million benefit, the majority of which is included in uncertain tax positions in the table above.

The Company has U.S. general business credit carryforwards of $100.8 million which will expire from 2031 to 2034, foreign tax credit carryforwards of $2.0 million that expire from 2022 to 2024 and $0.2 million of state credit carryforwards that expire from 2016 to 2034, or have no expiration. The net tax effect of state and foreign loss carryforwards at year-end 2014 totaled $47.2 million, which expire as follows (in millions of dollars): 

Year	Amount
2015-2017	$	1.9
2018-2020	2.5
2021-2024	1.2
2025-2031	0.3
No expiration	41.3
Total	$	47.2

The Company has established a valuation allowance for loss carryforwards and future deductible items in certain foreign jurisdictions, and for U.S. foreign tax credit carryforwards. The valuation allowance is determined in accordance with the provisions of ASC 740, which requires an assessment of both negative and positive evidence when measuring the need for a valuation allowance. The Company’s recent losses in these foreign jurisdictions, and its recent lack of adequate U.S. foreign source income to fully utilize foreign tax credit carryforwards, represented sufficient negative evidence to require a valuation allowance under ASC 740. The Company intends to maintain a valuation allowance until sufficient positive evidence exists to support realization of the foreign deferred tax assets.

Provision has not been made for U.S. or additional foreign income taxes on an estimated $111.2 million of undistributed earnings of foreign subsidiaries, which are permanently reinvested. If these earnings were to be repatriated, the Company would be subject to additional U.S. income taxes, adjusted for foreign tax credits. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be repatriated.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 

	2014			2013			2012
	(In millions of dollars)
Balance at beginning of the year	$	2.8		$	2.9		$	7.8
Additions for prior years’ tax positions	—			—			0.4
Reductions for prior years’ tax positions	(0.4		)	(0.1		)	(5.3		)
Additions for settlements	—			—			—
Reductions for settlements	—			—			—
Reductions for expiration of statutes	—			—			—
Balance at end of the year	$	2.4		$	2.8		$	2.9

If the $2.4 million in 2014, $2.8 million in 2013 and $2.9 million in 2012 of unrecognized tax benefits were recognized, they would have a favorable effect of $1.5 million in 2014, $1.8 million in 2013 and $1.9 million in 2012 on income tax expense. 

The Company recognizes both interest and penalties as part of the income tax provision. The Company recognized expense of $0.1 million in 2014, expense of $0.1 million in 2013 and a benefit of $0.3 million in 2012 for interest and penalties. Accrued interest and penalties were $0.4 million at year-end 2014 and $0.3 million at year-end 2013. 

The Company files income tax returns in the U.S. and in various states and foreign countries. The tax periods open to examination by the major taxing jurisdictions to which the Company is subject include the U.S. for fiscal years 2010 through 2014, Canada for fiscal years 2007 through 2014, France for fiscal years 2012 through 2014, Mexico for fiscal years 2009 through 2014, Switzerland for fiscal years 2005 through 2014, and Russia for fiscal years 2012 through 2014. 

The Company and its subsidiaries have various income tax returns in the process of examination. The unrecognized tax benefit and related interest and penalty balances include approximately $0.3 million for 2014, related to tax positions which are reasonably possible to change within the next twelve months due to income tax audits, settlements and statute expirations.

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New Accounting Pronouncements

12 Months Ended

Dec. 28, 2014

Accounting Policies [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on operations and financial results. The amendments are effective prospectively for fiscal periods (and interim reporting periods within those years) beginning on or after December 15, 2014 (early adoption is permitted). The adoption of this guidance is not expected to have a material effect on our results of operations, financial position or liquidity.

In May 2014, the FASB issued new revenue recognition guidance under Accounting Standards Update (“ASU”) 2014-09 that will supersede the existing revenue recognition guidance under U.S. generally accepted accounting principles. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. This ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. Early adoption is not permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures.

In August 2014, the FASB issued ASU 2014-15 requiring management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern, which is currently performed by the external auditors. Management will be required to perform this assessment for both interim and annual reporting periods and must make certain disclosures if it concludes that substantial doubt exists. This ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. The adoption of this guidance is not expected to have a material effect on our financial statements.

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Fair Value Measurements - Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				12 Months Ended
	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gains on investment, net of tax					$ 11.5	$ 31.2	$ 13.1
Asset impairment charges	0	0	1.7	0	0	1.7	3.1
Temp Holdings Investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gains on investment, net of tax					11.5	30.1
Cost of investment	$ 19.7				$ 17.2	$ 19.7

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Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 28, 2014

Supplemental Cash Flow Elements [Abstract]

Changes In Operating Assets And Liabilities, Net of Acquisitions

Changes in operating assets and liabilities, net of acquisitions and the effect of deconsolidated entities, as disclosed in the statements of cash flows, for the fiscal years 2014, 2013 and 2012, respectively, were as follows: 

	2014			2013			2012
	(In millions of dollars)
Increase in trade accounts receivable	$	(155.4	)	$	(14.6	)	$	(57.9	)
Increase in prepaid expenses and other assets	(14.7		)	(11.8		)	(12.5		)
Increase in accounts payable and accrued liabilities	36.4			43.8			54.1
Increase in accrued payroll and related taxes	28.5			39.2			2.4
Decrease in accrued insurance	(2.7		)	(2.9		)	(8.7		)
Increase (decrease) in income and other taxes	10.9			5.5			(3.7		)
Total changes in operating assets and liabilities	$	(97.0	)	$	59.2		$	(26.3	)

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 28, 2014	Dec. 29, 2013
Current Assets:
Cash and equivalents	$ 83.1	$ 125.7
Trade accounts receivable, less allowances of $10.7 million and $9.9 million, respectively	1,122.8	1,023.1
Prepaid expenses and other current assets	47.9	52.2
Deferred taxes	34.4	35.5
Total current assets	1,288.2	1,236.5
Property and Equipment:
Property and Equipment:	360.0	350.5
Accumulated depreciation	(267.0)	(258.5)
Net property and equipment	93.0	92.0
Noncurrent Deferred Taxes	146.3	121.7
Goodwill, Net	90.3	90.3
Other Assets	300.1	258.1
Total Assets	1,917.9	1,798.6
Current Liabilities:
Short-term borrowings	91.9	28.3
Accounts payable and accrued liabilities	364.0	342.4
Accrued payroll and related taxes	308.5	294.9
Accrued insurance	26.9	27.6
Income and other taxes	68.8	68.8
Total current liabilities	860.1	762.0
Noncurrent Liabilities:
Accrued insurance	43.9	46.0
Accrued retirement benefits	140.8	134.7
Other long-term liabilities	39.4	33.3
Total noncurrent liabilities	224.1	214.0
Commitments and contingencies (See Commitments and Contingencies footnotes)
Treasury stock, at cost
Paid-in capital	24.9	26.0
Earnings invested in the business	767.4	751.3
Accumulated other comprehensive income	51.1	61.4
Total stockholders' equity	833.7	822.6
Total Liabilities and Stockholders' Equity	1,917.9	1,798.6
Class A common stock
Capital stock, $1.00 par value
Common stock, value	36.6	36.6
Treasury stock, at cost
Treasury stock, value	(49.2)	(55.6)
Total stockholders' equity	36.6	36.6
Class B common stock
Capital stock, $1.00 par value
Common stock, value	3.5	3.5
Treasury stock, at cost
Treasury stock, value	(0.6)	(0.6)
Total stockholders' equity	$ 3.5	$ 3.5

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Fair Value Measurements

12 Months Ended

Dec. 28, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements 

Trade accounts receivable, accounts payable, accrued liabilities, accrued payroll and related taxes and short-term borrowings approximate their fair values due to the short-term maturities of these assets and liabilities. 

Assets Measured at Fair Value on a Recurring Basis

The following tables present the assets carried at fair value as of year-end 2014 and 2013 on the consolidated balance sheet by fair value hierarchy level, as described below. 

Level 1 measurements consist of unadjusted quoted prices in active markets for identical assets or liabilities.  Level 2 measurements include quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 3 measurements include significant unobservable inputs. 

	Fair Value Measurements on a Recurring Basis As of Year-End 2014
Description	Total		Level 1		Level 2		Level 3
	(In millions of dollars)
Money market funds	$	3.3	$	3.3	$	—	$	—
Available-for-sale investment	97.9		97.9		—		—
Total assets at fair value	$	101.2	$	101.2	$	—	$	—

	Fair Value Measurements on a Recurring Basis As of Year-End 2013
Description	Total		Level 1		Level 2		Level 3
	(In millions of dollars)
Money market funds	$	2.9	$	2.9	$	—	$	—
Available-for-sale investment	80.7		80.7		—		—
Total assets at fair value	$	83.6	$	83.6	$	—	$	—

Money market funds as of year-end 2014 and 2013 represent investments in money market accounts, all of which are restricted as to use and are included in other assets on the consolidated balance sheet as of year-end 2014 and 2013. The valuations were based on quoted market prices of those accounts as of the respective period end. 

Available-for-sale investment represents the Company’s investment in Temp Holdings Co., Ltd. (“Temp Holdings”) and is included in other assets on the consolidated balance sheet. The valuation is based on the quoted market price of Temp Holdings stock on the Tokyo Stock Exchange as of the period end. The unrealized gain, net of tax, of $11.5 million for the year ended 2014 and $30.1 million for the year ended 2013 were recorded in other comprehensive income, as well as in accumulated other comprehensive income, a component of stockholders’ equity. The cost of this yen-denominated investment, which fluctuates based on foreign exchange rates, was $17.2 million at year-end 2014 and $19.7 million at year-end 2013.

Assets Measured at Fair Value on a Nonrecurring Basis

We completed our annual impairment test for all reporting units in the fourth quarter for the fiscal years ended 2014 and 2013 and determined that goodwill was not impaired. 

In 2014, we elected to complete a step one quantitative test for all of our reporting units with goodwill. In 2013, we completed a step one quantitative test for the Americas Commercial and Americas PT reporting units. For both years, the estimated fair value of each reporting unit tested exceeded its related carrying value. In 2013, we completed a qualitative assessment for the annual goodwill impairment test for the OCG and APAC PT reporting units. As a result of these qualitative assessments, we determined it was more likely than not that the fair value of each of the reporting units was more than its carrying value.

During the second quarter of 2013, a triggering event for the evaluation of certain long-lived assets for impairment occurred as the Company made the decision to exit the executive search business operating in an asset group within Germany that was associated with the OCG business segment. Based on the Company’s estimates as of the 2013 second quarter end, a $1.7 million reduction in the carrying value of OCG intangible assets was recorded. The resulting expense was recorded in the asset impairments line on the consolidated statement of earnings.

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Retirement Benefits (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Compensation and Retirement Disclosure [Abstract]
Liability for nonqualified plans	$ 147.3	$ 135.6
Earnings included in SG&A expenses	7.6	15.7	10.2
Deferred compensation plan	149.0	134.0
Tax-free earnings included in SG&A expenses	7.3	17.4	10.3
Net expense for retirement benefits	6.1	6.2	9.7
Benefit obligation	14.8	13.7
Fair value of plan assets	9.5	9.2
Unfunded liability	5.3	4.5
Pension expense	$ 0.9	$ 0.7	$ 1.1

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Segment Disclosures - Segment Earnings from Operations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended			6 Months Ended
	Dec. 28, 2014	Sep. 28, 2014	Jun. 29, 2014	Mar. 30, 2014	Dec. 29, 2013	Sep. 29, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012	Jun. 30, 2013
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit	$ 232.6	$ 225.4	$ 228.1	$ 222.3	$ 231.5	$ 220.4	$ 220.7	$ 216.9	$ 908.4	$ 889.5	$ 896.6
SG&A Expenses	(230.0)	(218.3)	(222.2)	(216.0)	(221.9)	(200.2)	(202.6)	(209.8)	(886.5)	(834.5)	(821.2)
OCG asset impairments					0	0	(1.7)	0	0	(1.7)	(3.1)
Earnings from Operations									21.9	53.3	72.3
Other Expense, Net									5.3	4.5	3.5
Earnings From Continuing Operations Before Taxes									16.6	48.8	68.8
Less: Intersegment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									(4.4)	(3.5)	(3.2)
SG&A Expenses									4.4	3.5	3.2
Earnings from Operations									0	0	0
Corporate
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Earnings from Operations									(97.7)	(81.5)	(84.8)
Americas Commercial
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									379.6	370.2	388.2
Americas PT
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									155.9	155.1	150.5
Americas
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									535.5	525.3	538.7
SG&A Expenses									(446.8)	(419.8)	(400.1)
Earnings from Operations									88.7	105.5	138.6
EMEA Commercial
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									130.6	133.6	133.8
EMEA PT
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									42.9	42.6	43.0
EMEA Region
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									173.5	176.2	176.8
SG&A Expenses									(161.4)	(164.7)	(168.1)
Earnings from Operations									12.1	11.5	8.7
APAC Commercial
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									47.5	49.3	50.1
APAC PT
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									12.7	14.0	21.0
APAC Region
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									60.2	63.3	71.1
SG&A Expenses									(57.7)	(60.5)	(73.4)
Earnings from Operations									2.5	2.8	(2.3)
OCG
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit									143.6	128.2	113.2
SG&A Expenses									(127.3)	(111.5)	(101.1)
OCG asset impairments									0	(1.7)	0	(1.7)
Earnings from Operations									$ 16.3	$ 15.0	$ 12.1

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Income Taxes - Deferred Taxes (Details) (USD $) In Millions, unless otherwise specified	Dec. 28, 2014	Dec. 29, 2013
Components of Deferred Tax Assets and Liabilities
Depreciation and amortization	$ (11.6)	$ (10.4)
Employee compensation and benefit plans	70.4	68.1
Workers’ compensation	21.6	22.8
Unrealized gain on securities	(23.7)	(17.2)
Loss carryforwards	47.2	49.4
Credit carryforwards	103.0	82.0
Other, net	8.2	0.2
Valuation allowance	(58.5)	(56.3)
Net deferred tax assets	$ 156.6	$ 138.6

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Related Party Transactions

12 Months Ended

Dec. 28, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Terence E. Adderley, the Executive Chairman and Chairman of the Board of our board of directors, and certain trusts with respect to which he acts as trustee or co-trustee, control approximately 93% of the outstanding shares of Kelly Class B common stock, which is the only class of our common stock entitled to voting rights. There were no material transactions between the Company and Terence E. Adderley in 2014 or 2013.

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Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2014	Dec. 29, 2013	Dec. 30, 2012
Income Tax Disclosure [Abstract]
Balance at beginning of the year	$ 2.8	$ 2.9	$ 7.8
Additions for prior years’ tax positions	0	0	0.4
Reductions for prior years’ tax positions	(0.4)	(0.1)	(5.3)
Additions for settlements	0	0	0
Reductions for settlements	0	0	0
Reductions for expiration of statutes	0	0	0
Balance at end of the year	$ 2.4	$ 2.8	$ 2.9

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 28, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Status of Nonvested Restricted Stock Awards and Units

A summary of the status of nonvested restricted stock under the Plan as of year-end 2014 and changes during this period is presented as follows:

	Restricted Stock		Weighted Average Grant Date Fair Value
Nonvested at year-end 2013	1,128,600		$	17.06
Granted	539,600		15.63
Vested	(423,925	)	16.92
Forfeited	(51,725	)	16.98
Nonvested at year-end 2014	1,192,550		$	16.47

Summary of Status of Stock Option Grants

A summary of the status of stock option grants under the Plan as of year-end 2014 and changes during this period is presented as follows:

	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at year-end 2013	162,613		$	27.84
Granted	—		—
Exercised	—		—
Forfeited	—		—
Expired	(129,613	)	27.96
Outstanding at year-end 2014	33,000		$	27.37	0.65	$	—
Options exercisable at year-end 2014	33,000		$	27.37	0.65	$	—

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Other Expense, Net

12 Months Ended

Dec. 28, 2014

Other Income and Expenses [Abstract]

Other Expense, Net

Other Expense, Net

Included in other expense, net are the following:

	2014			2013			2012
	(In millions of dollars)
Interest income	$	0.5		$	0.4		$	1.0
Interest expense	(3.0		)	(2.8		)	(3.4		)
Dividend income	0.7			0.6			0.6
Foreign exchange losses	(1.0		)	(1.5		)	(1.0		)
Net loss on equity investment (see Investment in Equity Affiliate footnote)	(2.5		)	(1.3		)	(0.7		)
Other	—			0.1			—
Other expense, net	$	(5.3	)	$	(4.5	)	$	(3.5	)

Dividend income includes dividends earned on the Company’s investment in Temp Holdings (see Fair Value Measurements footnote).