Segment Disclosures

3 Months Ended

Mar. 29, 2020

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

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

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

Corporate expenses that directly support the operating units have been allocated to Americas Staffing, GTS and International Staffing based on work effort, volume or, in the absence of a readily available measurement process, proportionately based on gross profit realized. Unallocated corporate expenses include those related to incentive compensation, law and risk management, certain finance and accounting functions, executive management, corporate campus facilities, IT production support, certain legal costs and expenses related to corporate initiatives that do not directly benefit a specific operating segment. Consistent with the information provided to and evaluated by the CODM, the goodwill impairment charge in the first quarter of 2020 is included in Corporate expenses.

The following tables present information about the reported revenue from services and gross profit of the Company by segment, along with a reconciliation to consolidated earnings (loss) before taxes and equity in net earnings (loss) of affiliate, for the first quarter 2020 and 2019. 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.


	First Quarter
	2020		2019
	(In millions of dollars)
Revenue from Services:

Americas Staffing	$	533.4	$	626.5
Global Talent Solutions	503.2		501.0
International Staffing	227.6		258.9

Less: Intersegment revenue	(3.1)		(3.8)

Consolidated Total	$	1,261.1	$	1,382.6


	First Quarter
	2020		2019
	(In millions of dollars)
Earnings (loss) from Operations:

Americas Staffing gross profit	$	93.6	$	117.2
Americas Staffing SG&A expenses	(93.5)		(101.2)
Americas Staffing Earnings from Operations	0.1		16.0

Global Talent Solutions gross profit	100.2		100.4
Global Talent Solutions SG&A expenses	(73.7)		(74.7)
Global Talent Solutions Earnings from Operations	26.5		25.7

International Staffing gross profit	29.9		34.6
International Staffing SG&A expenses	(29.3)		(31.3)
International Staffing Earnings from Operations	0.6		3.3

Less: Intersegment gross profit	(0.4)		(0.6)
Less: Intersegment SG&A expenses	0.4		0.6
Net Intersegment Activity	—		—

Corporate	(139.0)		(28.2)
Consolidated Total	(111.8)		16.8
Gain (loss) on investment in Persol Holdings	(77.8)		13.2
Other income (expense), net	1.7		(1.1)

Earnings (loss) before taxes and equity in net earnings (loss) of affiliate	$	(187.9)	$	28.9