Segment Disclosures

12 Months Ended

Jan. 01, 2017

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 CODM (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”) 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 Company regularly assesses its organizational structure, product/service offerings and information evaluated by the CODM to determine whether any changes have occurred that would impact its segment reporting structure.  The completion of the TS Kelly Asia Pacific joint venture transaction (see Investment in TS Kelly Asia Pacific footnote) and the results of its annual strategic review will likely change how the Company allocates resources and analyzes performance, which may result in a change to the Company’s segment reporting in 2017.

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 before taxes and equity in net earnings (loss) of affiliate, for 2016, 2015 and 2014. Segment information for 2016 is impacted by the transfer of the APAC Commercial, APAC PT and certain OCG businesses to TS Kelly Asia Pacific in the third quarter of 2016 as noted above. Additionally, OCG segment SG&A expenses for 2016 include a $2.8 million out-of-period adjustment recorded in the fourth quarter related to certain aged accounts receivable recorded prior to 2015 at a subsidiary in Germany. The correction did not have a material effect on any of the periods impacted.

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.

	2016			2015			2014
	(In millions of dollars)
Revenue from Services:
Americas Commercial	$	2,548.0		$	2,604.3		$	2,609.6
Americas PT	947.1			971.9			956.0
Total Americas Commercial and PT	3,495.1			3,576.2			3,565.6
EMEA Commercial	769.3			773.5			894.7
EMEA PT	168.8			171.5			190.3
Total EMEA Commercial and PT	938.1			945.0			1,085.0
APAC Commercial	170.7			347.2			351.8
APAC PT	18.3			40.5			40.4
Total APAC Commercial and PT	189.0			387.7			392.2
OCG	706.4			673.8			586.8
Less: Intersegment revenue	(51.8		)	(64.5		)	(66.9		)
Consolidated Total	$	5,276.8		$	5,518.2		$	5,562.7

	2016			2015			2014
	(In millions of dollars)
Earnings from Operations:
Americas Commercial gross profit	$	402.4		$	400.3		$	379.6
Americas PT gross profit	162.7			165.0			155.9
Americas Region gross profit	565.1			565.3			535.5
Americas Region SG&A expenses	(457.1		)	(456.6		)	(446.8		)
Americas Region Earnings from Operations	108.0			108.7			88.7
EMEA Commercial gross profit	103.9			106.6			130.6
EMEA PT gross profit	34.2			36.6			42.9
EMEA Region gross profit	138.1			143.2			173.5
EMEA Region SG&A expenses	(124.9		)	(129.2		)	(161.4		)
EMEA Region Earnings from Operations	13.2			14.0			12.1
APAC Commercial gross profit	23.3			45.3			47.5
APAC PT gross profit	5.0			10.5			12.7
APAC Region gross profit	28.3			55.8			60.2
APAC Region SG&A expenses	(22.7		)	(46.7		)	(57.7		)
APAC Region Earnings from Operations	5.6			9.1			2.5
OCG gross profit	179.3			160.6			143.6
OCG SG&A expenses	(153.4		)	(132.1		)	(127.3		)
OCG Earnings from Operations	25.9			28.5			16.3
Less: Intersegment gross profit	(4.5		)	(4.6		)	(4.4		)
Less: Intersegment SG&A expenses	4.5			4.6			4.4
Net Intersegment Activity	—			—			—
Corporate	(89.5		)	(93.6		)	(97.7		)
Consolidated Total	63.2			66.7			21.9
Gain on investment in TS Kelly Asia Pacific	87.2			—			—
Other Expense, Net	(0.7		)	(3.5		)	(2.8		)
Earnings before taxes and equity in net earnings (loss) of affiliate	$	149.7		$	63.2		$	19.1

A summary of revenue from services by geographic area for 2016, 2015 and 2014 follows:

	2016		2015		2014
	(In millions of dollars)
Revenue From Services:
United States	$	3,722.5	$	3,705.2	$	3,535.8
International	1,554.3		1,813.0		2,026.9
Total	$	5,276.8	$	5,518.2	$	5,562.7

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 2016 and 2015 follows:

	2016		2015
	(In millions of dollars)
Long-Lived Assets:
United States	$	69.5	$	75.8
International	11.3		13.1
Total	$	80.8	$	88.9

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.