(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | |||||||||
Non-accelerated filer (Do not check if a smaller reporting company) | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page Number | |||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||
October 3, 2021 | September 27, 2020 | October 3, 2021 | September 27, 2020 | ||||||||||||||||||||
Revenue from services | $ | $ | $ | $ | |||||||||||||||||||
Cost of services | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Goodwill impairment charge | |||||||||||||||||||||||
Gain on sale of assets | ( | ||||||||||||||||||||||
Earnings (loss) from operations | ( | ( | |||||||||||||||||||||
Gain (loss) on investment in Persol Holdings | ( | ||||||||||||||||||||||
Other income (expense), net | ( | ( | ( | ||||||||||||||||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | ( | ||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | |||||||||||||||||||||
Net earnings (loss) before equity in net earnings (loss) of affiliate | ( | ||||||||||||||||||||||
Equity in net earnings (loss) of affiliate | ( | ||||||||||||||||||||||
Net earnings (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Basic earnings (loss) per share | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted earnings (loss) per share | $ | $ | $ | $ | ( | ||||||||||||||||||
Average shares outstanding (millions): | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||
October 3, 2021 | September 27, 2020 | October 3, 2021 | September 27, 2020 | ||||||||||||||||||||
Net earnings (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax expense of $0.1, $0.4, $0.5 and $0.0, respectively | ( | ( | |||||||||||||||||||||
Less: Reclassification adjustments included in net earnings (loss) | ( | ( | |||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ | ( |
October 3, 2021 | January 3, 2021 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowances of $12.3 and $13.3, respectively | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Noncurrent Assets | |||||||||||
Property and equipment: | |||||||||||
Property and equipment | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Net property and equipment | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deferred taxes | |||||||||||
Goodwill, net | |||||||||||
Investment in Persol Holdings | |||||||||||
Investment in equity affiliate | |||||||||||
Other assets | |||||||||||
Total noncurrent assets | |||||||||||
Total Assets | $ | $ |
October 3, 2021 | January 3, 2021 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Short-term borrowings | $ | $ | |||||||||
Accounts payable and accrued liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Accrued payroll and related taxes | |||||||||||
Accrued workers’ compensation and other claims | |||||||||||
Income and other taxes | |||||||||||
Total current liabilities | |||||||||||
Noncurrent Liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Accrued payroll and related taxes | |||||||||||
Accrued workers’ compensation and other claims | |||||||||||
Accrued retirement benefits | |||||||||||
Other long-term liabilities | |||||||||||
Total noncurrent liabilities | |||||||||||
Commitments and contingencies (see Contingencies footnote) | |||||||||||
Stockholders’ Equity | |||||||||||
Capital stock, $1.00 par value | |||||||||||
Class A common stock, 100.0 shares authorized; 36.7 shares issued at 2021 and 2020 | |||||||||||
Class B common stock, 10.0 shares authorized; 3.4 shares issued at 2021 and 2020 | |||||||||||
Treasury stock, at cost | |||||||||||
Class A common stock, 0.7 shares at 2021 and 0.8 shares at 2020 | ( | ( | |||||||||
Class B common stock | ( | ( | |||||||||
Paid-in capital | |||||||||||
Earnings invested in the business | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | $ |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||
October 3, 2021 | September 27, 2020 | October 3, 2021 | September 27, 2020 | ||||||||||||||||||||
Capital Stock | |||||||||||||||||||||||
Class A common stock | |||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Conversions from Class B | — | — | — | — | |||||||||||||||||||
Balance at end of period | |||||||||||||||||||||||
Class B common stock | |||||||||||||||||||||||
Balance at beginning of period | |||||||||||||||||||||||
Conversions to Class A | — | — | — | — | |||||||||||||||||||
Balance at end of period | |||||||||||||||||||||||
Treasury Stock | |||||||||||||||||||||||
Class A common stock | |||||||||||||||||||||||
Balance at beginning of period | ( | ( | ( | ( | |||||||||||||||||||
Net issuance of stock awards | |||||||||||||||||||||||
Balance at end of period | ( | ( | ( | ( | |||||||||||||||||||
Class B common stock | |||||||||||||||||||||||
Balance at beginning of period | ( | ( | ( | ( | |||||||||||||||||||
Net issuance of stock awards | |||||||||||||||||||||||
Balance at end of period | ( | ( | ( | ( | |||||||||||||||||||
Paid-in Capital | |||||||||||||||||||||||
Balance at beginning of period | |||||||||||||||||||||||
Net issuance of stock awards | ( | ||||||||||||||||||||||
Balance at end of period | |||||||||||||||||||||||
Earnings Invested in the Business | |||||||||||||||||||||||
Balance at beginning of period | |||||||||||||||||||||||
— | — | — | ( | ||||||||||||||||||||
Net earnings (loss) | ( | ||||||||||||||||||||||
Dividends | ( | ( | ( | ||||||||||||||||||||
Balance at end of period | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Balance at beginning of period | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Balance at end of period | ( | ( | ( | ( | |||||||||||||||||||
Stockholders’ Equity at end of period | $ | $ | $ | $ |
39 Weeks Ended | |||||||||||
October 3, 2021 | September 27, 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net earnings (loss) to net cash from operating activities: | |||||||||||
Goodwill impairment charge | |||||||||||
Deferred income taxes on goodwill impairment charge | ( | ||||||||||
Depreciation and amortization | |||||||||||
Operating lease asset amortization | |||||||||||
Provision for credit losses and sales allowances | |||||||||||
Stock-based compensation | |||||||||||
(Gain) loss on investment in Persol Holdings | ( | ||||||||||
Gain on sale of assets | ( | ||||||||||
Equity in net (earnings) loss of PersolKelly Pte. Ltd. | ( | ||||||||||
Other, net | |||||||||||
Changes in operating assets and liabilities, net of acquisitions | ( | ||||||||||
Net cash from operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sale of assets | |||||||||||
Acquisition of companies, net of cash received | ( | ( | |||||||||
Proceeds from company-owned life insurance | |||||||||||
Proceeds from sale of Brazil, net of cash disposed | |||||||||||
Proceeds from loans with equity affiliate | |||||||||||
Proceeds from (investment in) equity securities | ( | ||||||||||
Other investing activities | |||||||||||
Net cash (used in) from investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Net change in short-term borrowings | ( | ( | |||||||||
Financing lease payments | ( | ( | |||||||||
Dividend payments | ( | ( | |||||||||
Payments of tax withholding for stock awards | ( | ( | |||||||||
Contingent consideration payments | ( | ||||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | ( | ||||||||||
Net change in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period (1) | $ | $ |
39 Weeks Ended | |||||||||||
October 3, 2021 | September 27, 2020 | ||||||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash included in prepaid expenses and other current assets | |||||||||||
Noncurrent assets: | |||||||||||
Restricted cash included in other assets | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
Third Quarter | September Year to Date | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Professional & Industrial | ||||||||||||||||||||||||||
Staffing services | $ | $ | $ | $ | ||||||||||||||||||||||
Permanent placement | ||||||||||||||||||||||||||
Outcome-based services | ||||||||||||||||||||||||||
Total Professional & Industrial | ||||||||||||||||||||||||||
Science, Engineering & Technology | ||||||||||||||||||||||||||
Staffing services | ||||||||||||||||||||||||||
Permanent placement | ||||||||||||||||||||||||||
Outcome-based services | ||||||||||||||||||||||||||
Total Science, Engineering & Technology | ||||||||||||||||||||||||||
Education | ||||||||||||||||||||||||||
Staffing services | ||||||||||||||||||||||||||
Permanent placement | ||||||||||||||||||||||||||
Total Education | ||||||||||||||||||||||||||
Outsourcing & Consulting | ||||||||||||||||||||||||||
Talent solutions | ||||||||||||||||||||||||||
Total Outsourcing & Consulting | ||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||
Staffing services | ||||||||||||||||||||||||||
Permanent placement | ||||||||||||||||||||||||||
Talent solutions | ||||||||||||||||||||||||||
Total International | ||||||||||||||||||||||||||
Total Intersegment | ( | ( | ( | ( | ||||||||||||||||||||||
Total Revenue from Services | $ | $ | $ | $ |
Third Quarter | September Year to Date | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||
Puerto Rico | ||||||||||||||||||||||||||
Mexico | ||||||||||||||||||||||||||
Brazil | ||||||||||||||||||||||||||
Total Americas Region | ||||||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
France | ||||||||||||||||||||||||||
Switzerland | ||||||||||||||||||||||||||
Portugal | ||||||||||||||||||||||||||
Russia | ||||||||||||||||||||||||||
Italy | ||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||
Germany | ||||||||||||||||||||||||||
Ireland | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total Europe Region | ||||||||||||||||||||||||||
Total Asia-Pacific Region | ||||||||||||||||||||||||||
Total Kelly Services, Inc. | $ | $ | $ | $ |
Third Quarter | September Year to Date | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Science, Engineering & Technology | ||||||||||||||||||||||||||
Americas | $ | $ | $ | $ | ||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
Total Science, Engineering & Technology | $ | $ | $ | $ | ||||||||||||||||||||||
Outsourcing & Consulting | ||||||||||||||||||||||||||
Americas | $ | $ | $ | $ | ||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
Asia-Pacific | ||||||||||||||||||||||||||
Total Outsourcing & Consulting | $ | $ | $ | $ | ||||||||||||||||||||||
International | ||||||||||||||||||||||||||
Americas | $ | $ | $ | $ | ||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
Total International | $ | $ | $ | $ |
September Year to Date | |||||||||||
2021 | 2020 | ||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | $ | $ | |||||||||
Impact of adopting ASC 326 | |||||||||||
Current period provision | |||||||||||
Currency exchange effects | ( | ( | |||||||||
Write-offs | ( | ( | |||||||||
Ending balance | $ | $ |
September Year to Date | |||||||||||
2021 | 2020 | ||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | $ | $ | |||||||||
Impact of adopting ASC 326 | |||||||||||
Current period provision | |||||||||||
Currency exchange effects | ( | ||||||||||
Write-offs | ( | ||||||||||
Ending Balance | $ | $ |
Cash consideration paid | $ | ||||
Additional consideration payable | |||||
Net working capital adjustment | ( | ||||
Total consideration | $ |
Cash | $ | ||||
Trade accounts receivable | |||||
Prepaid expenses and other current assets | |||||
Net property and equipment | |||||
Operating lease right-of-use assets | |||||
Non-current deferred tax | |||||
Goodwill | |||||
Intangibles | |||||
Other assets, noncurrent | |||||
Accounts payable and accrued liabilities, current | ( | ||||
Operating lease liabilities, current | ( | ||||
Accrued payroll and related taxes, current | ( | ||||
Income and other taxes, current | ( | ||||
Operating lease liabilities, noncurrent | ( | ||||
Total consideration, including working capital adjustments | $ |
Third Quarter | September Year to Date | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Pro forma revenues | $ | $ | $ | $ | |||||||||||||||||||
Pro forma net earnings (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
As of Third Quarter-End 2021 | ||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In millions of dollars) | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
Investment in Persol Holdings | ||||||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
Brazil indemnification | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Greenwood/Asher earnout | ( | ( | ||||||||||||||||||||||||
Insight earnout | ||||||||||||||||||||||||||
Total liabilities at fair value | $ | ( | $ | $ | $ | ( |
As of Year-End 2020 | ||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In millions of dollars) | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
Investment in Persol Holdings | ||||||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
Brazil indemnification | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Greenwood/Asher earnout | ( | ( | ||||||||||||||||||||||||
Insight earnout | ( | ( | ||||||||||||||||||||||||
Total liabilities at fair value | $ | ( | $ | $ | $ | ( |
Lease Termination Costs | Severance Costs | Total | |||||||||||||||
Professional & Industrial | $ | $ | $ | ||||||||||||||
Science, Engineering & Technology | |||||||||||||||||
Education | |||||||||||||||||
International | |||||||||||||||||
Corporate | |||||||||||||||||
Total | $ | $ | $ |
Balance as of year-end 2020 | $ | ||||
Reductions for cash payments related to all restructuring activities | ( | ||||
Balance as of first quarter-end 2021 | |||||
Reductions for cash payments related to all restructuring activities | ( | ||||
Balance as of second quarter-end 2021 | |||||
Reductions for cash payments related to all restructuring activities | ( | ||||
Balance as of third quarter-end 2021 | $ | ||||
As of Year-End 2020 | Additions to Goodwill | Impairment Adjustments | As of Third Quarter-End 2021 | |||||||||||||||||||||||
(In millions of dollars) | ||||||||||||||||||||||||||
Science, Engineering & Technology | $ | $ | $ | $ | ||||||||||||||||||||||
Education | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Third Quarter | September Year to Date | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Ending balance | ( | ( | ( | ( | |||||||||||||||||||
Pension liability adjustments: | |||||||||||||||||||||||
Beginning balance | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||||||||||||
Net current-period other comprehensive income (loss) | |||||||||||||||||||||||
Ending balance | ( | ( | ( | ( | |||||||||||||||||||
Total accumulated other comprehensive income (loss) | $ | ( | $ | ( | $ | ( | $ | ( |
Third Quarter | September Year to Date | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net earnings (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Less: earnings allocated to participating securities | ( | ( | ( | ||||||||||||||||||||
Net earnings (loss) available to common shareholders | $ | $ | $ | $ | ( | ||||||||||||||||||
Average shares outstanding (millions): | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Dilutive share awards | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted earnings (loss) per share | $ | $ | $ | $ | ( |
Financial Measure Performance Shares | TSR Performance Shares | ||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Nonvested at year-end 2020 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Vesting adjustment | ( | ( | |||||||||||||||||||||
Nonvested at third quarter-end 2021 | $ | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Nonvested at year-end 2020 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Nonvested at third quarter-end 2021 | $ | ||||||||||
Third Quarter | September Year to Date | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||||||
Interest income | $ | $ | $ | $ | |||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Dividend income | |||||||||||||||||||||||
Foreign exchange gains (losses) | ( | ( | |||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||
Other Income (Expense), Net | $ | ( | $ | ( | $ | ( | $ |
Third Quarter | September Year to Date | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||||||
Revenue from Services: | |||||||||||||||||||||||
Professional & Industrial | $ | $ | $ | $ | |||||||||||||||||||
Science, Engineering & Technology | |||||||||||||||||||||||
Education | |||||||||||||||||||||||
Outsourcing & Consulting | |||||||||||||||||||||||
International | |||||||||||||||||||||||
Less: Intersegment revenue | ( | ( | ( | ( | |||||||||||||||||||
Consolidated Total | $ | $ | $ | $ |
Third Quarter | September Year to Date | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||||||
Earnings (loss) from Operations: | |||||||||||||||||||||||
Professional & Industrial gross profit | $ | $ | $ | $ | |||||||||||||||||||
Professional & Industrial SG&A expenses | ( | ( | ( | ( | |||||||||||||||||||
Professional & Industrial earnings (loss) from operations | |||||||||||||||||||||||
Science, Engineering & Technology gross profit | |||||||||||||||||||||||
Science, Engineering & Technology SG&A expenses | ( | ( | ( | ( | |||||||||||||||||||
Science, Engineering & Technology earnings (loss) from operations | |||||||||||||||||||||||
Education gross profit | |||||||||||||||||||||||
Education SG&A expenses | ( | ( | ( | ( | |||||||||||||||||||
Education earnings (loss) from operations | ( | ( | ( | ( | |||||||||||||||||||
Outsourcing & Consulting gross profit | |||||||||||||||||||||||
Outsourcing & Consulting SG&A expenses | ( | ( | ( | ( | |||||||||||||||||||
Outsourcing & Consulting earnings (loss) from operations | |||||||||||||||||||||||
International gross profit | |||||||||||||||||||||||
International SG&A expenses | ( | ( | ( | ( | |||||||||||||||||||
International earnings (loss) from operations | ( | ( | |||||||||||||||||||||
Corporate | ( | ( | ( | ( | |||||||||||||||||||
Consolidated Total | ( | ( | |||||||||||||||||||||
Gain (loss) on investment in Persol Holdings | ( | ||||||||||||||||||||||
Other income (expense), net | ( | ( | ( | ||||||||||||||||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | $ | $ | $ | $ | ( |
Third Quarter | September Year to Date | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||
Professional & Industrial | $ | $ | $ | $ | |||||||||||||||||||
Science, Engineering & Technology | |||||||||||||||||||||||
Education | |||||||||||||||||||||||
Outsourcing & Consulting | |||||||||||||||||||||||
International |
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from services | $ | 1,195.4 | $ | 1,038.2 | 15.1 | % | $ | 3,659.4 | $ | 3,274.6 | 11.8 | % | |||||||||||||||||||||||||||||||||||||||||
Gross profit | 228.9 | 191.0 | 19.8 | 673.2 | 603.5 | 11.5 | |||||||||||||||||||||||||||||||||||||||||||||||
SG&A expenses excluding restructuring charges | 220.0 | 193.5 | 13.7 | 640.0 | 582.6 | 9.8 | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges | (0.1) | (0.1) | (15.4) | (0.1) | 8.4 | (101.7) | |||||||||||||||||||||||||||||||||||||||||||||||
Total SG&A expenses | 219.9 | 193.4 | 13.7 | 639.9 | 591.0 | 8.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment charge | — | — | NM | — | 147.7 | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of assets | — | — | NM | — | 32.1 | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from operations | 9.0 | (2.4) | NM | 33.3 | (103.1) | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on investment in Persol Holdings | 35.5 | 16.8 | 112.0 | 71.8 | (31.4) | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (0.3) | (0.7) | 50.1 | (4.0) | 3.6 | (211.5) | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | 44.2 | 13.7 | 222.8 | 101.1 | (130.9) | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 11.1 | (1.2) | NM | 19.0 | (36.5) | 152.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity in net earnings (loss) of affiliate | 1.7 | 1.8 | (3.6) | 2.3 | (1.0) | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | $ | 34.8 | $ | 16.7 | 108.9 | % | $ | 84.4 | $ | (95.4) | NM | % | |||||||||||||||||||||||||||||||||||||||||
Gross profit rate | 19.2 | % | 18.4 | % | 0.8 | pts. | 18.4 | % | 18.4 | % | — | pts. | |||||||||||||||||||||||||||||||||||||||||
Conversion rate | 3.9 | (1.3) | 5.2 | 4.9 | (17.1) | 22.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||||||||
Revenue from Services: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | 452.6 | $ | 446.5 | 1.4 | % | $ | 1,386.7 | $ | 1,346.7 | 3.0 | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 306.2 | 244.0 | 25.5 | 859.1 | 761.5 | 12.8 | |||||||||||||||||||||||||||||||||||
Education | 66.6 | 27.5 | 142.1 | 284.1 | 195.1 | 45.6 | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 113.4 | 87.9 | 29.1 | 320.0 | 261.0 | 22.6 | |||||||||||||||||||||||||||||||||||
International | 256.8 | 232.4 | 10.5 | 810.1 | 710.6 | 14.0 | |||||||||||||||||||||||||||||||||||
Less: Intersegment revenue | (0.2) | (0.1) | 103.4 | (0.6) | (0.3) | 91.6 | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | 1,195.4 | $ | 1,038.2 | 15.1 | % | $ | 3,659.4 | $ | 3,274.6 | 11.8 | % |
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||||||
Gross Profit: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | 76.6 | $ | 77.1 | (0.5) | % | $ | 227.7 | $ | 241.1 | (5.5) | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 68.1 | 50.7 | 34.5 | 187.8 | 156.0 | 20.4 | |||||||||||||||||||||||||||||||||||
Education | 10.0 | 4.1 | 139.7 | 44.0 | 28.8 | 52.5 | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 37.3 | 29.1 | 27.9 | 103.4 | 87.1 | 18.7 | |||||||||||||||||||||||||||||||||||
International | 36.9 | 30.0 | 22.7 | 110.3 | 90.5 | 21.8 | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | 228.9 | $ | 191.0 | 19.8 | % | $ | 673.2 | $ | 603.5 | 11.5 | % | |||||||||||||||||||||||||||||
Gross Profit Rate: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | 16.9 | % | 17.3 | % | (0.4) | pts. | 16.4 | % | 17.9 | % | (1.5) | pts. | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 22.3 | 20.8 | 1.5 | 21.9 | 20.5 | 1.4 | |||||||||||||||||||||||||||||||||||
Education | 15.1 | 15.2 | (0.1) | 15.5 | 14.8 | 0.7 | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 32.8 | 33.1 | (0.3) | 32.3 | 33.4 | (1.1) | |||||||||||||||||||||||||||||||||||
International | 14.4 | 12.9 | 1.5 | 13.6 | 12.7 | 0.9 | |||||||||||||||||||||||||||||||||||
Consolidated Total | 19.2 | % | 18.4 | % | 0.8 | pts. | 18.4 | % | 18.4 | % | — | pts. | |||||||||||||||||||||||||||||
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||||||||
SG&A Expenses: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | 69.4 | $ | 65.3 | 6.2 | % | $ | 207.8 | $ | 210.4 | (1.2) | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 48.4 | 31.3 | 54.8 | 131.0 | 99.1 | 32.2 | |||||||||||||||||||||||||||||||||||
Education | 17.0 | 11.6 | 46.1 | 46.5 | 37.7 | 23.1 | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 30.7 | 25.4 | 20.5 | 89.2 | 79.1 | 12.6 | |||||||||||||||||||||||||||||||||||
International | 34.5 | 39.9 | (13.6) | 102.2 | 101.4 | 0.7 | |||||||||||||||||||||||||||||||||||
Corporate expenses | 19.9 | 19.9 | 0.8 | 63.2 | 63.3 | (0.1) | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | 219.9 | $ | 193.4 | 13.7 | % | $ | 639.9 | $ | 591.0 | 8.3 | % | |||||||||||||||||||||||||||||
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||||||||
Restructuring Charges Included in SG&A Expenses: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | — | $ | (0.1) | NM | % | $ | — | $ | 4.3 | NM | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | — | — | NM | — | 0.5 | NM | |||||||||||||||||||||||||||||||||||
Education | — | — | NM | — | 0.8 | NM | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | — | — | NM | — | — | NM | |||||||||||||||||||||||||||||||||||
International | — | — | NM | — | 1.1 | NM | |||||||||||||||||||||||||||||||||||
Corporate expenses | (0.1) | — | NM | (0.1) | 1.7 | (103.7) | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | (0.1) | $ | (0.1) | (15.4) | % | $ | (0.1) | $ | 8.4 | (101.7) | % |
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||||||||
Earnings (Loss) from Operations: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | 7.2 | $ | 11.8 | (38.1) | % | $ | 19.9 | $ | 30.7 | (34.9) | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 19.7 | 19.4 | 1.7 | 56.8 | 56.9 | (0.2) | |||||||||||||||||||||||||||||||||||
Education | (7.0) | (7.5) | 6.6 | (2.5) | (8.9) | 72.1 | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 6.6 | 3.7 | 79.1 | 14.2 | 8.0 | 79.0 | |||||||||||||||||||||||||||||||||||
International | 2.4 | (9.9) | NM | 8.1 | (10.9) | NM | |||||||||||||||||||||||||||||||||||
Corporate | (19.9) | (19.9) | (0.8) | (63.2) | (178.9) | 64.6 | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | 9.0 | $ | (2.4) | NM | % | $ | 33.3 | $ | (103.1) | NM | % |
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) | ||||||||||||||||||||||
July 5, 2021 through August 8, 2021 | 454 | $ | 22.52 | — | $ | — | ||||||||||||||||||||
August 9, 2021 through September 5, 2021 | 215 | 22.33 | — | $ | — | |||||||||||||||||||||
September 6, 2021 through October 3, 2021 | 172 | 20.37 | — | $ | — | |||||||||||||||||||||
Total | 841 | $ | 22.03 | — |
Exhibit No. | Description | |||||||
Letter Agreement Regarding 2021 LIBOR Cessation, dated October 25, 2021. | ||||||||
Code of Business Conduct and Ethics, revised August 2021. | ||||||||
Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended. | ||||||||
Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act, as amended. | ||||||||
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
KELLY SERVICES, INC. | |||||
Date: November 10, 2021 | |||||
/s/ Olivier G. Thirot | |||||
Olivier G. Thirot | |||||
Executive Vice President and | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
Date: November 10, 2021 | |||||
/s/ Laura S. Lockhart | |||||
Laura S. Lockhart | |||||
Vice President, Corporate Controller | |||||
and Chief Accounting Officer | |||||
(Principal Accounting Officer) |
COUNTRY | DIRECT ACCESS CODE | HOTLINE NUMBER | ||||||
Australia (Optus) | 1-800-551-155 | 877-978-0049 | ||||||
Australia (Telstra) | 1-800-881-011 | 877-978-0049 | ||||||
Austria / Österreich | 0800-200-288 | 877-978-0049 | ||||||
Belgium / België | 0-800-100-10 | 877-978-0049 | ||||||
Brazil / Brasil | 0800 890 0288 or 0800-8888-288 | 877-978-0049 | ||||||
China / 中国 | 108-888 (Beijing) or 108-11 (rest of China) | 877-978-0049 | ||||||
Canada | N/A | 877-978-0049 | ||||||
Denmark / Danmark | 8001-0010 | 877-978-0049 | ||||||
France | 0800-99-0011 or 0805-701-288 | 877-978-0049 | ||||||
Germany / Deutschland | 0-800-2255-288 | 877-978-0049 | ||||||
Hong Kong / 香港 | 800-96-1111 (HK Telephone) or 800-93-2266 (New World Telephone) | 877-978-0049 | ||||||
Hungary / Magyarország | 06 800-01111 | 877-978-0049 | ||||||
India / भारत | 000-117 | 877-978-0049 | ||||||
Indonesia / Republik Indonesia | 001-801-10 | 877-978-0049 | ||||||
Italy / Italia | 800-172-444 | 877-978-0049 | ||||||
Japan / 日本/ Nihon | 00 539-111 (KDDI); 0034-811-001 (NTT); 00-663-5111 (Softbank) | 877-978-0049 | ||||||
Luxembourg | 800 2 0111 | 877-978-0049 | ||||||
Malaysia / مليسيا | 1-800-80-0011 | 877-978-0049 | ||||||
Mexico / México | 01-800-288-2872 | 877-978-0049 | ||||||
Netherlands (Holland) / Nederland | 0800-022-9111 | 877-978-0049 | ||||||
New Zealand | 000-911 | 877-978-0049 | ||||||
Norway / Norge | 800-190-11 | 877-978-0049 |
COUNTRY | DIRECT ACCESS CODE | HOTLINE NUMBER | ||||||
Poland / Polska | 0-0-800-111-1111 | 877-978-0049 | ||||||
Portugal | 800-800-128 | 877-978-0049 | ||||||
Puerto Rico | N/A | 877-978-0049 | ||||||
Russia / Россия | 363-2400 (Moscow); 8^495-363-2400 (outside Moscow); 363-2400 (St. Petersburg); 8^812-363-2400 (outside St. Petersburg) | 877-978-0049 | ||||||
Singapore / 新加坡 / Singapuraf | 800-0111-111 (Sing Tel) or 80-0001-0001 (StarHub) | 877-978-0049 | ||||||
Spain / España | 900-99-00-11 | 877-978-0049 | ||||||
Sweden / Sverige | 020-799-111 | 877-978-0049 | ||||||
Switzerland / Suisse | 0-800-890011 | 877-978-0049 | ||||||
Thailand / ประเทศไทย | 1-800-0001-33 or 001-999-111-11 | 877-978-0049 | ||||||
United States | N/A | 877-978-0049 |
Date: November 10, 2021 | ||||||||||||||
/s/ Peter W. Quigley | ||||||||||||||
Peter W. Quigley | ||||||||||||||
President and Chief Executive Officer |
Date: November 10, 2021 | ||||||||||||||
/s/ Olivier G. Thirot | ||||||||||||||
Olivier G. Thirot | ||||||||||||||
Executive Vice President and Chief Financial Officer |
Date: November 10, 2021 | ||||||||||||||
/s/ Peter W. Quigley | ||||||||||||||
Peter W. Quigley | ||||||||||||||
President and Chief Executive Officer |
Date: November 10, 2021 | ||||||||||||||
/s/ Olivier G. Thirot | ||||||||||||||
Olivier G. Thirot | ||||||||||||||
Executive Vice President and Chief Financial Officer |
J
Contingencies |
9 Months Ended |
---|---|
Oct. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is continuously engaged in litigation, threatened litigation, claims, audits or investigations arising in the ordinary course of its business, such as matters alleging employment discrimination, wage and hour violations, claims for indemnification or liability, violations of privacy rights, anti-competition regulations, commercial and contractual disputes, and tax related matters which could result in a material adverse outcome. We record accruals for loss contingencies when we believe it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Such accruals are recorded in accounts payable and accrued liabilities and in accrued workers’ compensation and other claims in the consolidated balance sheet. At third quarter-end 2021 and year-end 2020, the gross accrual for litigation costs amounted to $1.1 million and $1.4 million, respectively. The Company maintains insurance coverage which may cover certain losses. When losses exceed the applicable policy deductible and realization of recovery of the loss from existing insurance policies is deemed probable, the Company records receivables from the insurance company for the excess amount, which are included in prepaid expenses and other current assets in the consolidated balance sheet. At third quarter-end 2021 and year-end 2020, there were no related insurance receivables. During the third quarter of 2021, the Company filed a claim, in excess of policy limits, under a representations and warranties insurance policy purchased by the Company in connection with the acquisition of Softworld. The claim asserts damages arising out of alleged breaches by the sellers of Softworld of certain representations and warranties contained in the purchase agreement relating to periods prior to the closing of the acquisition. The insurance policy’s coverage limit is $21.5 million. The Company reached a preliminary agreement with the insurer and continues to negotiate a final resolution of the claim. No insurance receivable has been recorded. The Company estimates the aggregate range of reasonably possible losses, in excess of amounts accrued, is $0.5 million to $4.3 million as of third quarter-end 2021. This range includes matters where a liability has been accrued but it is reasonably possible that the ultimate loss may exceed the amount accrued and for matters where a loss is believed to be reasonably possible, but a liability has not been accrued. The aggregate range only represents matters in which we are currently able to estimate a range of loss and does not represent our maximum loss exposure. The estimated range is subject to significant judgment and a variety of assumptions and only based upon currently available information. For other matters, we are currently not able to estimate the reasonably possible loss or range of loss. While the ultimate outcome of these matters cannot be predicted with certainty, we believe that the resolution of any such proceedings will not have a material adverse effect on our financial condition, results of operations or cash flows.
|
New Accounting Pronouncements |
9 Months Ended |
---|---|
Oct. 03, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In January 2020, the FASB issued Accounting Standards Update ("ASU") 2020-01 which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The adoption of this standard did not have a material impact to our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 simplifying various aspects related to the accounting for income taxes. The guidance removes exceptions to the general principles in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The adoption of this standard did not have a material impact to our consolidated financial statements. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.
|
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 34.8 | $ 16.7 | $ 84.4 | $ (95.4) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments, net of tax expense of $0.1, $0.4, $0.5 and $0.0, respectively | (3.5) | 5.1 | (15.1) | 0.4 |
Less: Reclassification adjustments included in net earnings (loss) | 0.0 | (1.5) | 0.0 | (1.5) |
Foreign currency translation adjustments | (3.5) | 3.6 | (15.1) | (1.1) |
Other comprehensive income (loss) | (3.5) | 3.6 | (15.1) | (1.1) |
Comprehensive income (loss) | $ 31.3 | $ 20.3 | $ 69.3 | $ (96.5) |
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax expense (benefit) | $ 0.1 | $ 0.4 | $ 0.5 | $ 0.0 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Oct. 03, 2021 |
Jan. 03, 2021 |
---|---|---|
Allowance for trade accounts receivables | $ 12.3 | $ 13.3 |
Class A Common Stock | ||
Capital stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, shares authorized (in shares) | 100.0 | 100.0 |
Common stock, shares issued (in shares) | 36.7 | 36.7 |
Treasury stock, common stock (in shares) | 0.7 | 0.8 |
Class B Common Stock | ||
Capital stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, shares authorized (in shares) | 10.0 | 10.0 |
Common stock, shares issued (in shares) | 3.4 | 3.4 |
Basis of Presentation |
9 Months Ended |
---|---|
Oct. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited consolidated financial statements of Kelly Services, Inc. (the “Company,” “Kelly,” “we” or “us”) have been prepared in accordance with Rule 10-01 of Regulation S-X and do not include all the information and notes required by generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the results of the interim periods, have been made. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. The unaudited consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended January 3, 2021, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 18, 2021 (the 2020 consolidated financial statements). The Company’s third fiscal quarter ended on October 3, 2021 (2021) and September 27, 2020 (2020), each of which contained 13 weeks. The corresponding September year to date periods for 2021 and 2020 each contained 39 weeks. |
Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Revenue Disaggregated by Service Type Kelly has five specialty segments: Professional & Industrial (“P&I”), Science, Engineering & Technology (“SET”), Education, Outsourcing & Consulting Group ("Outsourcing & Consulting," "OCG") and International. Other than OCG, each segment delivers talent through staffing services, permanent placement or outcome-based services. Our OCG segment delivers talent solutions including managed service provider ("MSP"), payroll process outsourcing ("PPO"), recruitment process outsourcing ("RPO"), and talent advisory services. International also delivers RPO talent solutions within its local markets. The following table presents our segment revenues disaggregated by service type (in millions of dollars):
Revenue Disaggregated by Geography Our operations are subject to different economic and regulatory environments depending on geographic location. Our P&I and Education segments operate in the Americas region, our SET segment operates in the Americas and Europe regions, and OCG operates in the Americas, Europe and Asia-Pacific regions. The International segment includes Europe and our Brazil and Mexico operations, which are included in the Americas region. Our Brazil staffing operations were sold in August 2020 (see Acquisitions and Disposition footnote). The below table presents our revenues disaggregated by geography (in millions of dollars):
The below table presents our SET, OCG and International segment revenues disaggregated by geographic region (in millions of dollars):
Deferred Costs Deferred sales commissions, which are included in other assets in the consolidated balance sheet, were $0.9 million as of third quarter-end 2021 and $1.0 million as of year-end 2020. Amortization expense for the deferred costs for the third quarter and September year to date 2021 was $0.2 million and $0.6 million, respectively. Amortization expense for the deferred costs for the third quarter and September year to date 2020 was $0.2 million and $0.8 million, respectively. Deferred fulfillment costs, which are included in prepaid expenses and other current assets in the consolidated balance sheet, were $2.6 million as of third quarter-end 2021 and $4.1 million as of year-end 2020. Amortization expense for the deferred costs for the third quarter and September year to date 2021 was $4.3 million and $16.4 million, respectively. Amortization expense for the deferred costs for the third quarter and September year to date 2020 was $5.3 million and $14.9 million, respectively.
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Credit Losses |
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Credit Losses | Credit LossesOn December 30, 2019, we adopted Accounting Standards Codification ("ASC") Topic 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures, as applicable. The rollforward of our allowance for credit losses related to trade accounts receivable, which is recorded in trade accounts receivable, less allowance in the consolidated balance sheet, is as follows (in millions of dollars):
Write-offs are presented net of recoveries, which were not material for September year to date 2021 and 2020. We have been engaged in litigation with a customer over a disputed accounts receivable balance for certain services rendered more than five years ago, which was recorded as a long-term receivable in other assets in the consolidated balance sheet. In September 2020, a ruling was issued in favor of the customer, which we appealed. Upon receiving the ruling, we increased our allowance for credit losses by $9.2 million in the third quarter of 2020 to reflect the likelihood of collection, which was recorded in other assets in the consolidated balance sheet. In September 2021, a final ruling in the case was entered in favor of the customer. As a result, in the third quarter of 2021, we wrote off the entire receivable balance with this customer, including $0.6 million not previously reserved. The unreserved portion was recorded in selling, general and administrative ("SG&A") expenses in the consolidated statements of earnings. The rollforward of our allowance for credit losses related to the long-term customer receivable, which was recorded in other assets in the consolidated balance sheet, is as follows (in millions of dollars):
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Acquisitions and Disposition |
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Acquisitions and Disposition | Acquisitions and Disposition Acquisitions In the second quarter of 2021, the Company acquired Softworld, Inc. ("Softworld"), as detailed below. In the fourth quarter of 2020, Kelly Services USA, LLC ("KSU"), a wholly owned subsidiary of the Company, acquired Greenwood/Asher & Associates, LLC ("Greenwood/Asher"), as detailed below. In the first quarter of 2020, KSU acquired Insight Workforce Solutions LLC and its affiliate, Insight EDU LLC (collectively, "Insight"), as detailed below. Softworld On April 5, 2021, the Company acquired 100% of the shares of Softworld for a purchase price of $215.0 million. Softworld is a leading technology staffing and workforce solutions firm that serves clients across several end-markets, including financial services, life sciences, aerospace, defense, insurance, retail and IT consulting. This acquisition will expand our capabilities, scale and solution set in our technology specialty. Under terms of the purchase agreement, the purchase price was adjusted for cash held by Softworld at the closing date and estimated working capital adjustments resulting in the Company paying cash of $220.4 million. Total consideration includes $2.6 million of additional consideration that is payable to the seller in 2022. In the third quarter of 2021, the Company received cash for a post-close working capital adjustment of $6.0 million. The total consideration is as follows (in millions of dollars):
Due to the limited amount of time that has passed since acquiring Softworld, the purchase price allocation for this acquisition is preliminary and could change. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition (in millions of dollars):
The fair value of the acquired receivables represents the contractual value. Included in the assets purchased in the Softworld acquisition was $79.4 million of intangible assets, made up of $54.9 million in customer relationships, $23.1 million associated with Softworld's trade names and trademarks, and $1.4 million for non-compete agreements. The customer relationships and trade names and trademarks will be amortized over 10 years with no residual value and the non-compete agreements will be amortized over five years with no residual value. Goodwill generated from the acquisition was primarily attributable to expanding market potential and the expected revenue synergies and was assigned to the SET operating segment (see Goodwill footnote). All of the goodwill is expected to be deductible for tax purposes. Softworld's results of operations are included in the SET segment in 2021. For the third quarter-end 2021, our consolidated revenues and net earnings included $33.7 million and $1.3 million from Softworld, respectively. For September year to date 2021, our consolidated revenues and net earnings included $64.1 million and $3.0 million, respectively, from Softworld. The date of the acquisition was the first day of our second quarter, therefore, our first quarter results do not include any revenue or earnings from Softworld. Pro Forma Information The following unaudited pro forma information presents a summary of the operating results as if the Softworld acquisition had been completed as of December 30, 2019 (in millions of dollars):
Due to the date of the acquisition, the third quarter 2021 pro forma results reflect actual results for the period. The pro forma results for September year to date 2021 and 2020 reflect amortization of the intangible assets of $2.0 million per quarter, a non-recurring adjustment to reclassify $1.3 million of transaction expenses from September year to date 2021 to September year to date 2020 and applicable taxes. The unaudited pro forma information presented has been prepared for comparative purposes only and is not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed date, nor is it necessarily an indication of future operating results. Greenwood/Asher On November 18, 2020, KSU acquired 100% of the membership interests of Greenwood/Asher, a premier specialty education executive search firm in the U.S., for a purchase price of $3.5 million. Under terms of the purchase agreement, the purchase price was adjusted for cash held by Greenwood/Asher at the closing date and estimated working capital adjustments resulting in the Company paying cash of $5.2 million. The purchase price of the acquisition also included contingent consideration with an estimated fair value of $2.1 million related to an earnout payment in the event certain conditions are met per the terms of the agreement. The initial fair value of the earnout was established using a Black Scholes model and the liability is recorded in accounts payable and accrued liabilities and other noncurrent liabilities in the consolidated balance sheet (see Fair Value Measurements footnote). The earnout is revalued quarterly, resulting in a decrease to the liability of $0.4 million in the first quarter of 2021 and an increase to the liability of $2.4 million in the third quarter of 2021. The earnout is expected to be paid in 2022 and 2023 after each earnout year pursuant to the terms of the purchase agreement. As of third quarter-end 2021, the purchase price allocation for this acquisition is final. Goodwill generated from the acquisition was primarily attributable to the expected synergies from combining operations and expanding market potential, and was assigned to the Education reporting unit (see Goodwill footnote). The amount of goodwill expected to be deductible for tax purposes is approximately $0.9 million. Insight On January 14, 2020, KSU acquired 100% of the membership interests of Insight, an educational staffing company in the U.S., for a purchase price of $34.5 million. Under terms of the purchase agreement, the purchase price was adjusted for cash held by Insight at the closing date and estimated working capital adjustments resulting in the Company paying cash of $38.1 million. The purchase price of the acquisition also included contingent consideration with an estimated fair value of $1.6 million related to an earnout payment in the event certain conditions are met per the terms of the agreement. The initial fair value of the earnout was established using a Monte Carlo simulation and the liability is recorded in accounts payable and accrued liabilities in the consolidated balance sheet (see Fair Value Measurements footnote). Subsequently, the earnout was revalued, resulting in a net increase to the liability of $0.1 million in 2020 and a further increase of $0.1 million in the second quarter of 2021. In the third quarter of 2021, the Company paid the final earnout amount of $1.8 million in cash. In our consolidated statements of cash flows, $1.6 million of the payment is reflected as a financing activity representing the initial fair value of the earnout, with the remainder flowing through operating activities. There is no remaining liability for the earnout as of third quarter-end 2021. In the second quarter of 2020, the Company paid a working capital adjustment of $0.1 million. As of year-end 2020, the purchase price allocation for this acquisition was final. Goodwill generated from the acquisition was primarily attributable to the expected synergies from combining operations and expanding market potential, and was assigned to the former Americas Staffing reporting unit. The goodwill related to this acquisition was included in the goodwill impairment charge taken in the first quarter of 2020. The goodwill impairment charge resulted from an interim goodwill impairment test triggered by declines in our common stock price as a result of negative market reaction to the COVID-19 crisis (see Goodwill footnote). The amount of goodwill expected to be deductible for tax purposes is approximately $20.4 million. Disposition On August 18, 2020, the Company sold its Brazil operations for a purchase price of $1.4 million. The Company received cash proceeds of $1.2 million, net of cash disposed. As a part of the transaction, the Company has agreed to indemnify the buyer for losses and costs incurred in connection with certain events or occurrences initiated within a six-year period after closing. The aggregate losses for which the Company will provide indemnification shall not exceed $8.8 million. Accordingly, the Company recorded an indemnification liability of $2.5 million in other long-term liabilities in the consolidated balance sheet, which represented the fair value of the liability at the time of disposition and completely offset the gain on the sale. The indemnification liability is revalued on a quarterly basis (see Fair Value Measurements footnote).
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Investment in Persol Holdings |
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Oct. 03, 2021 | |
Investment in Persol Holdings [Abstract] | |
Investment in Persol Holdings | Investment in Persol HoldingsThe Company has a yen-denominated investment through the Company's subsidiary, Kelly Services Japan, Inc., in the common stock of Persol Holdings Co., Ltd. ("Persol Holdings"), the 100% owner of Persol Asia Pacific Pte. Ltd., the Company’s joint venture partner in PersolKelly Pte. Ltd. (the "JV"). As our investment is a noncontrolling interest in Persol Holdings, this investment is recorded at fair value based on the quoted market price of Persol Holdings stock on the Tokyo Stock Exchange as of the period end (see Fair Value Measurements footnote). A gain on the investment of $35.5 million and $71.8 million in the third quarter and September year to date 2021, respectively, a gain on the investment of $16.8 million and a loss on the investment of $31.4 million in the third quarter and September year to date 2020, respectively, was recorded in gain (loss) on investment in Persol Holdings in the consolidated statements of earnings. |
Investment in PersolKelly Pte Ltd. |
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Oct. 03, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in PersolKelly Pte Ltd. | Investment in PersolKelly Pte. Ltd. The Company has a 49% ownership interest in the JV (see Investment in Persol Holdings footnote above), a staffing services business operating in ten geographies in the Asia-Pacific region. The operating results of the Company’s interest in the JV are accounted for on a one-quarter lag under the equity method and are reported in equity in net earnings (loss) of affiliate in the consolidated statements of earnings, which amounted to earnings of $1.7 million and $2.3 million in the third quarter and September year to date 2021, respectively, and earnings of $1.8 million and a loss of $1.0 million in the third quarter and September year to date 2020, respectively. This investment is evaluated for indicators of impairment on a quarterly basis or whenever events or circumstances indicate the carrying amount may be other-than-temporarily impaired. If we conclude that there is an other-than-temporary impairment of this equity investment, we will adjust the carrying amount of the investment to the current fair value. The investment in equity affiliate on the Company’s consolidated balance sheet totaled $122.0 million as of third quarter-end 2021 and $118.5 million as of year-end 2020. The net amount due to the JV, a related party, was not material as of the third quarter-end 2021 and the net amount due from the JV was $5.6 million as of year-end 2020. The Company made loans in prior years, proportionate to its 49% ownership, to the JV to fund working capital requirements as a result of its sustained revenue growth. In April 2021, the Company received $5.8 million from the JV for the outstanding balance of the loan. As of third quarter-end 2021, there is no outstanding loan balance or accrued interest receivable relating to the loan. Accrued interest receivable, which is included in prepaid expenses and other current assets in the consolidated balance sheet, was not material at year-end 2020. The JV is a supplier to certain MSP programs in the region and the amounts for services provided to the Company, which are included in accounts payable and accrued liabilities in the consolidated balance sheet, are not material. On April 1, 2020, 100% of the shares of Kelly Services Australia Pty Ltd and Kelly Services (New Zealand) Limited, both subsidiaries of the JV, were sold to an affiliate of Persol Holdings. The JV received proceeds of $17.5 million upon the sale and the Company received a direct royalty payment of $0.7 million.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Trade accounts receivable, short-term borrowings, accounts payable, accrued liabilities and accrued payroll and related taxes approximate their fair values due to the short-term maturities of these assets and liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities measured at fair value on a recurring basis as of third quarter-end 2021 and year-end 2020 in 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.
Money market funds represent investments in money market funds that hold government securities, of which $6.5 million as of third quarter-end 2021 and $5.1 million as of year-end 2020, are restricted as to use and are included in other assets in the consolidated balance sheet. The money market funds that are restricted as to use account for the majority of our restricted cash balance and represents cash balances that are required to be maintained to fund disability claims in California. The remaining money market funds as of year-end 2020 are included in cash and equivalents in the consolidated balance sheet. The valuations of money market funds are based on quoted market prices of those accounts as of the respective period end. The valuation of the investment in Persol Holdings is based on the quoted market price of Persol Holdings stock on the Tokyo Stock Exchange as of the period end, and the related changes in fair value are recorded in the consolidated statements of earnings (see Investment in Persol Holdings footnote). The cost of this yen-denominated investment, which fluctuates based on foreign exchange rates, was $18.6 million as of the third quarter-end 2021 and $20.1 million at year-end 2020. As of third quarter-end 2021 and year-end 2020, the Company had an indemnification liability of $2.5 million and $2.6 million, respectively, in other long-term liabilities on the consolidated balance sheet related to the sale of the Brazil operations (see Acquisitions and Disposition footnote). The valuation of the indemnification liability was established using a discounted cash flow methodology based on probability weighted-average cash flows discounted by weighted-average cost of capital. The valuation, which represents the fair value, is considered a Level 3 liability, and is being measured on a recurring basis. During year to date 2021, the Company recognized a decrease of $0.1 million to the indemnification liability related to exchange rate fluctuations in other income (expense), net in the consolidated statements of earnings. The Company recorded an earnout liability relating to the 2020 acquisition of Insight, totaling $1.7 million at year-end 2020 in accounts payable and accrued liabilities in the consolidated balance sheet (see Acquisitions and Disposition footnote). During the third quarter of 2021, the Company paid the earnout totaling $1.8 million. The valuation of the earnout liability was initially established using a Monte Carlo simulation and represented the fair value and was considered a Level 3 liability. The Company recorded an earnout liability relating to the 2020 acquisition of Greenwood/Asher, totaling $4.1 million at third quarter-end 2021 with $1.9 million in accounts payable and accrued liabilities and $2.2 million in other long-term liabilities in the consolidated balance sheet and $2.1 million at year-end 2020 in other long-term liabilities in the consolidated balance sheet (see Acquisitions and Disposition footnote). The initial valuation of the earnout liability was established using a Black Scholes model and represents the fair value and is considered a Level 3 liability. During year to date 2021, the Company recorded an increase of $2.0 million to the earnout liability in SG&A expenses in the consolidated statements of earnings. Equity Investment Without Readily Determinable Fair Value Prior to April 2021, the Company had a minority investment in Business Talent Group, LLC, which was included in other assets in the consolidated balance sheet. This investment was measured using the measurement alternative for equity investments without a readily determinable fair value. The measurement alternative represents cost, less impairment, plus or minus observable price changes. In the second quarter of 2021, BTG entered into a merger agreement which resulted in all of the Company's shares of BTG being automatically canceled upon approval of the merger and resulted in the receipt of $5.0 million in cash, which is equal to the carrying value and purchase price of the BTG investment. Prior to March 2021, the Company had a minority investment in Kenzie Academy Inc., which was included in other assets in the consolidated balance sheet. The investment was also measured using the measurement alternative for equity investments without a readily determinable fair value as described above. On March 8, 2021, Kenzie entered into a transaction to sell its assets. As of the date of the sale and year-end 2020, the investment had a carrying value of $1.4 million, representing total cost plus observable price changes to date. The asset was written down as a result of the sale and the loss of $1.4 million was recorded in other income (expense), net in the year to date consolidated statements of earnings. Assets Measured at Fair Value on a Nonrecurring Basis Due to the negative market reaction to the COVID-19 crisis, including declines in our common stock price, management determined that a triggering event occurred during the first quarter of 2020. We therefore performed an interim step one quantitative impairment test for both of our previous reporting units with goodwill. As a result of this quantitative assessment, we determined that the estimated fair value of the reporting units no longer exceeded the carrying value, and recorded a goodwill impairment charge of $147.7 million in the first quarter of 2020 (see Goodwill footnote).
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Restructuring |
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Restructuring | Restructuring There were no restructuring charges incurred for September year to date 2021. In the first quarter of 2020, the Company took restructuring actions to align costs with expected revenues, position the organization to adopt a new operating model in the third quarter of 2020 and to align the U.S. branch network facilities footprint with a more technology-enabled service delivery methodology. Restructuring costs incurred in September year to date 2020 totaled $8.4 million and were recorded entirely in SG&A expenses in the consolidated statements of earnings, as detailed below (in millions of dollars):
A summary of the global restructuring balance sheet accrual, included in accrued payroll and related taxes and accounts payable and accrued liabilities in the consolidated balance sheet, is detailed below (in millions of dollars):
The remaining balance of $0.2 million as of third quarter-end 2021 primarily represents severance costs, and the majority is expected to be paid by the second quarter-end 2022. No material adjustments are expected to be recorded.
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Goodwill |
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Goodwill | Goodwill The Company performs its annual goodwill impairment testing in the fourth quarter each year and regularly assesses whenever events or circumstances make it more likely than not that an impairment may have occurred. During the first quarter of 2020, negative market reaction to the COVID-19 crisis, including declines in our common stock price, caused our market capitalization to decline significantly compared to the fourth quarter of 2019, causing a triggering event. Therefore, we performed an interim step one quantitative test for our previous reporting units with goodwill, Americas Staffing and GTS, and determined that the estimated fair values of both reporting units no longer exceeded their carrying values. Based on the result of our interim goodwill impairment test as of the first quarter of 2020, we recorded a goodwill impairment charge of $147.7 million to write off goodwill for both reporting units. A portion of the goodwill balance was deductible for tax purposes. In performing the step one quantitative test and consistent with our prior practice, we determined the fair value of each reporting unit using the income approach, which is validated through reconciliation to observable market capitalization data. Under the income approach, estimated fair value is determined based on estimated future cash flows discounted by an estimated market participant 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 and reflects management’s outlook for the reporting units. Assumptions and estimates about future cash flows and discount rates are complex and often subjective. Our 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 and working capital. The changes in the carrying amount of goodwill as of September year to date 2021 are included in the table below. The goodwill resulting from the acquisition of Softworld during the second quarter of 2021 (see Acquisitions and Disposition footnote) was allocated to the SET reportable segment.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the third quarter and September year to date 2021 and 2020 are included in the table below. Amounts in parentheses indicate debits. Reclassification adjustments out of accumulated other comprehensive income (loss), as shown in the table below, were recorded in the other income (expense), net line item in the consolidated statements of earnings.
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Earnings (Loss) Per Share |
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Earnings (Loss) Per Share | Earnings (Loss) Per Share The reconciliation of basic and diluted earnings (loss) per share on common stock for the third quarter and September year to date 2021 and 2020 follows (in millions of dollars except per share data):
Potentially dilutive shares outstanding are primarily related to performance shares (see Stock-Based Compensation footnote for a description of performance shares) for the third quarter and September year to date 2021 and 2020. Dividends paid for Class A and Class B common stock were $0.05 for third quarter 2021 and September year to date 2021. Dividends paid per share for Class A and Class B common stock were $0.00 for third quarter 2020 and $0.075 for September year to date 2020.
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation For the third quarter of 2021, the Company recognized stock compensation expense of $1.2 million, and a related tax benefit of $0.2 million. For the third quarter of 2020, the Company recognized stock compensation expense of $0.5 million, and a related tax benefit of $0.2 million. For September year to date 2021, the Company recognized stock compensation expense of $4.0 million, and a related tax benefit of $0.6 million. For September year to date 2020, the Company recognized stock compensation expense of $2.9 million, and a related tax benefit of $0.2 million. Performance Shares During 2021, the Company granted performance share awards associated with the Company’s Class A common stock to certain senior officers. The payment of performance share awards, which will be satisfied with the issuance of shares out of treasury stock, is contingent upon the achievement of specific revenue growth and earnings before interest, taxes, depreciation and amortization ("EBITDA") margin performance goals ("financial measure performance share awards") over a stated period of time. The maximum number of performance shares that may be earned is 200% of the target shares originally granted. These awards have three one-year performance periods: 2021, 2022 and 2023, with the payout for each performance period based on separate financial measure goals that are set in February of each of the three performance periods. For the 2021 and 2022 performance periods, half of the shares earned in each respective performance period will vest after achievement of the respective performance goals for the year and approval of the financial results by the Compensation Committee, in early 2022 and 2023, respectively, if not forfeited by the recipient. The remaining half of the shares earned for the 2021 and 2022 performance periods will vest in early 2024, based on continuous employment. For the 2023 performance period, any shares earned will vest after achievement of the 2023 performance goals for the year and approval of the financial results by the Compensation Committee in early 2024, if not forfeited by the recipient. No dividends are paid on these performance shares. On May 18, 2021, the Compensation Committee approved a modification to the performance goals of our 2021 and 2020 financial measure performance awards to increase the goals to reflect the results of the acquisition of Softworld. We accounted for this change as a Type I modification under ASC 718 as the expectation of the achievement of certain performance conditions related to these awards remained a probable-to-probable post-modification. The Company did not record any incremental stock compensation expense since the fair value of the modified awards immediately after the modification was not greater than the fair value of the original awards immediately before the modification. All service-based vesting conditions were unaffected by the modification. A summary of the status of all nonvested performance shares at target as of third quarter-end 2021 and year-to-date changes is presented as follows below (in thousands of shares except per share data). The vesting adjustment in the table below represents the 2018 financial measure performance shares and the 2018 Total Shareholder Return ("TSR") performance shares that did not vest because actual achievement was below the threshold level and resulted in no payout.
Restricted Stock A summary of the status of nonvested restricted stock as of third quarter-end 2021 and year-to-date changes is presented as follows below (in thousands of shares except per share data).
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Sale of Assets |
9 Months Ended |
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Oct. 03, 2021 | |
Sale of Assets [Abstract] | |
Sale of Assets | Sale of Assets In the second quarter of 2020, the Company monetized wage subsidy receivables outside the U.S. for $16.9 million, net of fees and 5% retainer. The sale of these receivables was accounted for as a sale of financial assets with certain recourse provisions in which we derecognized the receivables. Although the sale of receivables is with recourse, the Company did not record a recourse obligation as the Company concluded the receivables were collectible. The net cash proceeds related to the sale were included in operating activities in the consolidated statements of cash flows and the fees related to the sale were included in SG&A expenses in the consolidated statements of earnings. On March 20, 2020, the Company sold three of our four headquarters properties for a purchase price of $58.5 million as a part of a sale and leaseback transaction. The properties included the parcels of land, together with all rights and easements, in addition to all improvements located on the land, including buildings. The Company received cash proceeds of $55.5 million, which was net of transaction expenses. As of the date of the sale, the properties had a combined net carrying amount of $23.4 million. The resulting gain on the sale of the assets was $32.1 million which was recorded in gain on sale of assets in the consolidated statements of earnings. The Company leased back the headquarters buildings on the same date.
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Other Income (Expense), Net |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net | Other Income (Expense), Net Included in other income (expense), net for the third quarter and September year to date 2021 and 2020 are the following:
Included in Other for September year to date 2021 is a loss from the sale of the assets related to our minority investment in Kenzie Academy (see Fair Value Measurements footnote) and transaction-related expenses from the April 2021 acquisition of Softworld (see Acquisitions and Disposition footnote).
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Income Taxes |
9 Months Ended |
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Oct. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $11.1 million and benefit was $1.2 million for the third quarter of 2021 and 2020, respectively. Income tax expense was $19.0 million and income tax benefit was $36.5 million for September year to date 2021 and 2020, respectively. These amounts were impacted by changes in the fair value of the Company's investment in Persol Holdings, which resulted in a charge of $10.9 million for the third quarter of 2021 and $22.0 million for September year to date 2021, compared to a charge of $5.2 million for the third quarter of 2020 and a benefit of $9.6 million for September year to date 2020. The second quarter of 2021 benefited $5.2 million from a change in United Kingdom tax rates, while the second quarter of 2020 benefited $7.7 million from Brazil outside basis differences. September year to date 2020 includes a tax benefit of $23.0 million on the impairment of goodwill. The quarterly and year-to-date amounts are also impacted by changes in earnings from operations. Our tax expense is affected by recurring items, such as the amount of pretax income and its mix by jurisdiction, U.S. work opportunity credits and the change in cash surrender value of tax exempt investments in life insurance policies. It is also affected by discrete items that may occur in any given period but are not consistent from period to period, such as tax law changes, changes in judgment regarding the realizability of deferred tax assets, the tax effects of stock compensation, and changes in the fair value of the Company's investment in Persol Holdings, which are treated as discrete since they cannot be estimated. The United Kingdom rate change benefit in the second quarter of 2021, impairment of goodwill in the first quarter of 2020 and the Brazil outside basis differences in the second quarter of 2020 were treated as discrete. The Company provides valuation allowances 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. At this time, we have no valuation allowance against our Mexican deferred tax asset of $4.3 million, though it is possible this may change as we continue to assess the impacts of the new labor laws effective as of the third quarter of 2021 on our Mexican business operations throughout the remainder of the year.
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Segment Disclosures |
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Segment Disclosures | Segment Disclosures The Company’s operating segments, which also represent its reporting segments, are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision-maker ("CODM", the Company’s CEO) to determine resource allocation and assess performance. The Company’s five reportable segments, (1) Professional & Industrial, (2) Science, Engineering & Technology, (3) Education, (4) Outsourcing & Consulting, and (5) International, reflect the specialty services the Company provides to customers and represent how the business is organized internally. Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services. Consistent with the information provided to and evaluated by the CODM, the goodwill impairment charge in the first quarter of 2020 was included in Corporate expenses. The following tables present information about the reported revenue from services and gross profit of the Company by reportable segment, along with a reconciliation to earnings (loss) before taxes and equity in net earnings (loss) of affiliate, for the third quarter and September year to date 2021 and 2020. Asset information by reportable segment is not presented, since the Company does not produce such information internally nor does it use such information to manage its business.
Depreciation and amortization expense included in SG&A expenses by segment above are as follows:
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New Accounting Pronouncements (Policies) |
9 Months Ended |
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Oct. 03, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In January 2020, the FASB issued Accounting Standards Update ("ASU") 2020-01 which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The adoption of this standard did not have a material impact to our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 simplifying various aspects related to the accounting for income taxes. The guidance removes exceptions to the general principles in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The adoption of this standard did not have a material impact to our consolidated financial statements. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents our segment revenues disaggregated by service type (in millions of dollars):
The below table presents our revenues disaggregated by geography (in millions of dollars):
The below table presents our SET, OCG and International segment revenues disaggregated by geographic region (in millions of dollars):
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Credit Losses (Tables) |
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Oct. 03, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | The rollforward of our allowance for credit losses related to trade accounts receivable, which is recorded in trade accounts receivable, less allowance in the consolidated balance sheet, is as follows (in millions of dollars):
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Financing Receivable, Allowance for Credit Loss | The rollforward of our allowance for credit losses related to the long-term customer receivable, which was recorded in other assets in the consolidated balance sheet, is as follows (in millions of dollars):
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Acquisitions and Disposition (Tables) |
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Oct. 03, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Schedule of Purchase Price | The total consideration is as follows (in millions of dollars):
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition (in millions of dollars):
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Business Acquisition, Pro Forma Information | The following unaudited pro forma information presents a summary of the operating results as if the Softworld acquisition had been completed as of December 30, 2019 (in millions of dollars):
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Fair Value Measurements (Tables) |
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Oct. 03, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Assets Measured on Recurring Basis |
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Restructuring (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | Restructuring costs incurred in September year to date 2020 totaled $8.4 million and were recorded entirely in SG&A expenses in the consolidated statements of earnings, as detailed below (in millions of dollars):
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Schedule of Restructuring Balance Sheet Accrual | A summary of the global restructuring balance sheet accrual, included in accrued payroll and related taxes and accounts payable and accrued liabilities in the consolidated balance sheet, is detailed below (in millions of dollars):
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Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Net Carrying Amount of Goodwill | The changes in the carrying amount of goodwill as of September year to date 2021 are included in the table below. The goodwill resulting from the acquisition of Softworld during the second quarter of 2021 (see Acquisitions and Disposition footnote) was allocated to the SET reportable segment.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income by Component, Net of Tax | The changes in accumulated other comprehensive income (loss) by component, net of tax, for the third quarter and September year to date 2021 and 2020 are included in the table below. Amounts in parentheses indicate debits. Reclassification adjustments out of accumulated other comprehensive income (loss), as shown in the table below, were recorded in the other income (expense), net line item in the consolidated statements of earnings.
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Earnings (Loss) Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share | The reconciliation of basic and diluted earnings (loss) per share on common stock for the third quarter and September year to date 2021 and 2020 follows (in millions of dollars except per share data):
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Stock-Based Compensation (Tables) |
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Performance Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Performance Shares and Restricted Stock | A summary of the status of all nonvested performance shares at target as of third quarter-end 2021 and year-to-date changes is presented as follows below (in thousands of shares except per share data). The vesting adjustment in the table below represents the 2018 financial measure performance shares and the 2018 Total Shareholder Return ("TSR") performance shares that did not vest because actual achievement was below the threshold level and resulted in no payout.
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Restricted Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Performance Shares and Restricted Stock | A summary of the status of nonvested restricted stock as of third quarter-end 2021 and year-to-date changes is presented as follows below (in thousands of shares except per share data).
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Other Income (Expense), Net (Tables) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Income (Expense), Net | Included in other income (expense), net for the third quarter and September year to date 2021 and 2020 are the following:
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Segment Disclosures (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Revenue from Services | The following tables present information about the reported revenue from services and gross profit of the Company by reportable segment, along with a reconciliation to earnings (loss) before taxes and equity in net earnings (loss) of affiliate, for the third quarter and September year to date 2021 and 2020. Asset information by reportable segment is not presented, since the Company does not produce such information internally nor does it use such information to manage its business.
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Segment Earnings From Operations |
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Depreciation and Amortization by Segment | Depreciation and amortization expense included in SG&A expenses by segment above are as follows:
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Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
Jan. 03, 2021 |
|
Deferred Sales Commissions | |||||
Revenue from Contract with Customer [Line Items] | |||||
Capitalized Contract Cost, Net | $ 0.9 | $ 0.9 | $ 1.0 | ||
Capitalized contract cost, amortization | 0.2 | $ 0.2 | 0.6 | $ 0.8 | |
Deferred Fulfillment Costs | |||||
Revenue from Contract with Customer [Line Items] | |||||
Capitalized Contract Cost, Net | 2.6 | 2.6 | $ 4.1 | ||
Capitalized contract cost, amortization | $ 4.3 | $ 5.3 | $ 16.4 | $ 14.9 |
Credit Losses - Allowance for Credit Losses Related to Trade Accounts Receivable (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Oct. 03, 2021 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Allowance for credit losses: | |||
Beginning balance | $ 9.8 | $ 9.7 | |
Impact of adopting ASC 326 | 0.0 | 0.3 | |
Current period provision | 0.8 | 1.2 | |
Currency exchange effects | (0.4) | (0.2) | |
Write-offs | $ (0.6) | (0.7) | (1.6) |
Ending balance | $ 9.5 | $ 9.5 | $ 9.4 |
Credit Losses - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 03, 2021 |
Oct. 03, 2021 |
Sep. 27, 2020 |
Jan. 03, 2021 |
Dec. 29, 2019 |
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Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss | $ 0.0 | $ 0.0 | $ 10.9 | $ 10.9 | $ 1.0 |
Write-off of unreserved portion | $ 0.6 | $ 0.7 | 1.6 | ||
Other Assets | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss | $ 9.2 |
Credit Losses - Allowance for Credit Losses Related to the Long-Term Customer Receivable (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Allowance for credit losses: | ||
Beginning balance | $ 10.9 | $ 1.0 |
Impact of adopting ASC 326 | 0.0 | 0.7 |
Current period provision | 0.6 | 9.5 |
Currency exchange effects | 0.0 | (0.3) |
Write-offs | (11.5) | 0.0 |
Ending balance | $ 0.0 | $ 10.9 |
Acquisitions and Disposition - Schedule of Purchase Price (Details) - Softworld, Inc. - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 05, 2021 |
Oct. 03, 2021 |
|
Business Acquisition [Line Items] | ||
Cash consideration paid | $ 220.4 | |
Additional consideration payable | 2.6 | |
Net working capital adjustment | (6.0) | $ (6.0) |
Total consideration, including working capital adjustments | $ 217.0 |
Acquisitions and Disposition - Fair Value of Assets Assumed and Liabilities Acquired (Details) - USD ($) $ in Millions |
Apr. 05, 2021 |
Oct. 03, 2021 |
Jan. 03, 2021 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 114.8 | $ 3.5 | |
Softworld, Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 1.4 | ||
Trade accounts receivable | 21.6 | ||
Prepaid expenses and other current assets | 3.3 | ||
Net property and equipment | 1.2 | ||
Operating lease right-of-use assets | 7.6 | ||
Non-current deferred tax | 5.9 | ||
Goodwill | 111.3 | ||
Intangibles | 79.4 | ||
Other assets, noncurrent | 1.2 | ||
Accounts payable and accrued liabilities, current | (2.5) | ||
Operating lease liabilities, current | (1.3) | ||
Accrued payroll and related taxes, current | (4.6) | ||
Income and other taxes, current | (1.2) | ||
Operating lease liabilities, noncurrent | (6.3) | ||
Total consideration, including working capital adjustments | $ 217.0 |
Acquisitions and Disposition - Pro Forma Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Business Acquisition [Line Items] | ||||
Pro forma revenues | $ 1,195.4 | $ 1,065.6 | $ 3,690.6 | $ 3,356.2 |
Pro forma net earnings (loss) | $ 34.8 | $ 17.5 | $ 86.0 | $ (95.3) |
Acquisitions and Disposition - Disposition Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Aug. 18, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of Brazil, net of cash disposed | $ 0.0 | $ 1.2 | |
Brazil | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Purchase price of disposition | $ 1.4 | ||
Proceeds from sale of Brazil, net of cash disposed | 1.2 | ||
Indemnification liabilities, range of outcomes, value, high | 8.8 | ||
Indemnification liability | $ 2.5 |
Investment in Persol Holdings - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Investment in Persol Holdings [Abstract] | ||||
Gain (loss) on investment in Persol Holdings | $ 35.5 | $ 16.8 | $ 71.8 | $ (31.4) |
Restructuring - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 27, 2020 |
Oct. 03, 2021 |
Jul. 04, 2021 |
Apr. 04, 2021 |
Jan. 03, 2021 |
|
Restructuring and Related Activities [Abstract] | |||||
Restructuring costs | $ 8.4 | ||||
Restructuring accrual | $ 0.2 | $ 0.6 | $ 1.5 | $ 3.5 |
Restructuring - Schedule of Restructuring and Related Costs (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 27, 2020
USD ($)
| |
Restructuring Cost and Reserve [Line Items] | |
Lease Termination Costs | $ 4.8 |
Severance Costs | 3.6 |
Total | 8.4 |
Professional & Industrial | |
Restructuring Cost and Reserve [Line Items] | |
Lease Termination Costs | 3.5 |
Severance Costs | 0.8 |
Total | 4.3 |
Science, Engineering & Technology | |
Restructuring Cost and Reserve [Line Items] | |
Lease Termination Costs | 0.5 |
Severance Costs | 0.0 |
Total | 0.5 |
Education | |
Restructuring Cost and Reserve [Line Items] | |
Lease Termination Costs | 0.1 |
Severance Costs | 0.7 |
Total | 0.8 |
International | |
Restructuring Cost and Reserve [Line Items] | |
Lease Termination Costs | 0.7 |
Severance Costs | 0.4 |
Total | 1.1 |
Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Lease Termination Costs | 0.0 |
Severance Costs | 1.7 |
Total | $ 1.7 |
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Oct. 03, 2021 |
Jul. 04, 2021 |
Apr. 04, 2021 |
|
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 0.6 | $ 1.5 | $ 3.5 |
Reductions for cash payments related to all restructuring activities | (0.4) | (0.9) | (2.0) |
Ending balance | $ 0.2 | $ 0.6 | $ 1.5 |
Goodwill - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Mar. 29, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill impairment charge | $ 0.0 | $ 0.0 | $ 147.7 | $ 0.0 | $ 147.7 |
Goodwill - Changes in the Net Carrying Amount of Goodwill (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Mar. 29, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | $ 3.5 | ||||
Additions to Goodwill | 111.3 | ||||
Impairment Adjustments | $ 0.0 | $ 0.0 | $ (147.7) | 0.0 | $ (147.7) |
Goodwill, ending balance | 114.8 | 114.8 | |||
Science, Engineering & Technology | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 0.0 | ||||
Additions to Goodwill | 111.3 | ||||
Impairment Adjustments | 0.0 | ||||
Goodwill, ending balance | 111.3 | 111.3 | |||
Education | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 3.5 | ||||
Additions to Goodwill | 0.0 | ||||
Impairment Adjustments | 0.0 | ||||
Goodwill, ending balance | $ 3.5 | $ 3.5 |
Earnings (Loss) Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Earnings Per Share [Abstract] | ||||
Net earnings (loss) | $ 34.8 | $ 16.7 | $ 84.4 | $ (95.4) |
Less: earnings allocated to participating securities | (0.4) | (0.2) | (0.8) | 0.0 |
Net earnings (loss) available to common shareholders | $ 34.4 | $ 16.5 | $ 83.6 | $ (95.4) |
Average shares outstanding (millions): | ||||
Basic (in shares) | 39.4 | 39.3 | 39.4 | 39.3 |
Dilutive share awards (in shares) | 0.1 | 0.1 | 0.1 | 0.0 |
Diluted (in shares) | 39.5 | 39.4 | 39.5 | 39.3 |
Basic earnings (loss) per share on common stock (in dollars per share) | $ 0.87 | $ 0.42 | $ 2.12 | $ (2.43) |
Diluted earnings (loss) per share on common stock (in dollars per share) | $ 0.87 | $ 0.42 | $ 2.12 | $ (2.43) |
Earnings (Loss) Per Share - Narrative (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Class A Common Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends per share (in dollars per share) | $ 0.05 | $ 0.00 | $ 0.05 | $ 0.075 |
Class B Common Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends per share (in dollars per share) | $ 0.05 | $ 0.00 | $ 0.05 | $ 0.075 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (benefit) | $ 1.2 | $ 0.5 | $ 4.0 | $ 2.9 |
Related tax benefit (expense) | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.2 |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares that can be earned, percentage | 200.00% |
Stock-Based Compensation - Schedule of Nonvested Restricted Stock (Details) - Restricted Stock shares in Thousands |
9 Months Ended |
---|---|
Oct. 03, 2021
$ / shares
shares
| |
Shares | |
Nonvested, beginning balance (in shares) | shares | 281 |
Granted (in shares) | shares | 216 |
Vested (in shares) | shares | (90) |
Forfeited (in shares) | shares | (21) |
Nonvested, ending balance (in shares) | shares | 386 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 22.74 |
Granted (in dollars per share) | $ / shares | 21.33 |
Vested (in dollars per share) | $ / shares | 23.36 |
Forfeited (in dollars per share) | $ / shares | 23.97 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 21.74 |
Sale of Assets - Narrative (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 20, 2020
USD ($)
headquarters
|
Jun. 28, 2020
USD ($)
|
|
Sale of Assets [Abstract] | ||
Proceeds from wage subsidy receivables, net of fees and retainers | $ 16.9 | |
Percentage of receivables held as retainer | 5.00% | |
Number of headquarters properties sold | headquarters | 3 | |
Number of headquarters properties | headquarters | 4 | |
Sale leaseback transactions, gross proceeds | $ 58.5 | |
Sale leaseback transaction, net proceeds | 55.5 | |
Properties held-for-sale | 23.4 | |
Gain on sale on properties | $ 32.1 |
Other Income (Expense), Net - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Other Income and Expenses [Abstract] | ||||
Interest income | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.5 |
Interest expense | (0.7) | (0.5) | (1.9) | (2.2) |
Dividend income | 0.0 | 0.0 | 1.0 | 1.3 |
Foreign exchange gains (losses) | 0.3 | (0.2) | (0.6) | 3.5 |
Other income | 0.0 | 0.5 | ||
Other expense | (0.1) | (2.7) | ||
Other Income (Expense), Net | $ (0.3) | $ (0.7) | $ (4.0) | $ 3.6 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Oct. 03, 2021 |
Jul. 04, 2021 |
Sep. 27, 2020 |
Jun. 28, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ 11.1 | $ (1.2) | $ 19.0 | $ (36.5) | ||
United Kingdom | ||||||
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ (5.2) | |||||
Brazil | ||||||
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ (7.7) | |||||
Mexico | ||||||
Income Taxes [Line Items] | ||||||
Deferred tax asset | 4.3 | 4.3 | ||||
Persol Holdings | ||||||
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ 10.9 | $ 5.2 | $ 22.0 | (9.6) | ||
Goodwill | ||||||
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ (23.0) |
Contingencies - Narrative (Details) - USD ($) $ in Millions |
Oct. 03, 2021 |
Jan. 03, 2021 |
---|---|---|
Loss Contingencies [Line Items] | ||
Accrual for litigation costs | $ 1.1 | $ 1.4 |
Insurance policy coverage limit | 21.5 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, portion not accrued | 0.5 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, portion not accrued | $ 4.3 |
Segment Disclosures - Narrative (Details) |
9 Months Ended |
---|---|
Oct. 03, 2021
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Disclosures - Segment Revenue From Service (Details) - Service - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Revenue from Services | ||||
Segment revenue from services | $ 1,195.4 | $ 1,038.2 | $ 3,659.4 | $ 3,274.6 |
Less: Intersegment revenue | ||||
Revenue from Services | ||||
Segment revenue from services | (0.2) | (0.1) | (0.6) | (0.3) |
Professional & Industrial | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 452.6 | 446.5 | 1,386.7 | 1,346.7 |
Science, Engineering & Technology | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 306.2 | 244.0 | 859.1 | 761.5 |
Education | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 66.6 | 27.5 | 284.1 | 195.1 |
Outsourcing & Consulting | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 113.4 | 87.9 | 320.0 | 261.0 |
International | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | $ 256.8 | $ 232.4 | $ 810.1 | $ 710.6 |
Segment Disclosures - Depreciation and Amortization Expense Included in SG&A Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Sep. 27, 2020 |
Oct. 03, 2021 |
Sep. 27, 2020 |
|
Earnings (loss) from Operations | ||||
Depreciation and amortization | $ 22.0 | $ 18.0 | ||
Professional & Industrial | ||||
Earnings (loss) from Operations | ||||
Depreciation and amortization | $ 1.3 | $ 1.4 | 4.1 | 4.1 |
Science, Engineering & Technology | ||||
Earnings (loss) from Operations | ||||
Depreciation and amortization | 3.2 | 1.0 | 7.5 | 3.1 |
Education | ||||
Earnings (loss) from Operations | ||||
Depreciation and amortization | 0.9 | 0.9 | 2.8 | 2.7 |
Outsourcing & Consulting | ||||
Earnings (loss) from Operations | ||||
Depreciation and amortization | 0.1 | 0.2 | 0.5 | 0.5 |
International | ||||
Earnings (loss) from Operations | ||||
Depreciation and amortization | $ 0.5 | $ 0.5 | $ 1.5 | $ 1.6 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |
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