Note 11. Segment Disclosures

6 Months Ended

Jul. 01, 2012

Segment Reporting Disclosure [Text Block]

11.  Segment Disclosures

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

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

The following tables present information about the reported revenue from services and gross profit of the Company by segment, along with a reconciliation to consolidated earnings before taxes, for the 13 and 26 weeks ended 2012 and 2011.  Asset information by reportable segment is not presented, since the Company does not produce such information internally, nor does it use such data to manage its business.  Our segments themselves did not change from prior periods, however, effective with the first quarter of 2012, we changed the manner in which we evaluate and internally report segments, such that our primary measure of segment performance is now gross profit.  Historically, our primary measure of segment performance was gross profit less an allocation of SG&A expenses.  We revised the prior period’s segment results to conform to the current manner in which we evaluate segment performance.

	13 Weeks Ended						26 Weeks Ended
	2012			2011			2012			2011
	(In millions of dollars)						(In millions of dollars)
Revenue from Services:
Americas Commercial	$	668.6		$	670.3		$	1,337.9		$	1,323.6
Americas PT		262.4			247.7			512.5			488.3
Total Americas Commercial and PT		931.0			918.0			1,850.4			1,811.9
EMEA Commercial		213.7			258.8			426.7			490.3
EMEA PT		41.6			45.8			83.8			87.2
Total EMEA Commercial and PT		255.3			304.6			510.5			577.5
APAC Commercial		84.3			102.3			172.6			202.0
APAC PT		12.8			13.5			25.6			25.0
Total APAC Commercial and PT		97.1			115.8			198.2			227.0
OCG		91.4			74.0			178.1			142.2
Less: Intersegment revenue		(8.7	)		(6.6	)		(16.3	)		(13.7	)
Consolidated Total	$	1,366.1		$	1,405.8		$	2,720.9		$	2,744.9

	13 Weeks Ended						26 Weeks Ended
	2012			2011			2012			2011
	(In millions of dollars)						(In millions of dollars)
Earnings from Operations:
Americas Commercial gross profit	$	97.7		$	93.3		$	195.7		$	185.3
Americas PT gross profit		39.7			35.9			79.9			71.9
Americas Region gross profit		137.4			129.2			275.6			257.2
Americas Region SG&A expenses		(99.0	)		(95.8	)		(201.9	)		(198.6	)
Americas Region Earnings from Operations		38.4			33.4			73.7			58.6
EMEA Commercial gross profit		34.2			42.3			67.7			79.5
EMEA PT gross profit		10.9			12.4			22.2			23.4
EMEA Region gross profit		45.1			54.7			89.9			102.9
EMEA Region SG&A expenses		(39.7	)		(46.7	)		(84.2	)		(96.6	)
EMEA Region Earnings from Operations		5.4			8.0			5.7			6.3
APAC Commercial gross profit		12.5			14.3			25.6			27.8
APAC PT gross profit		5.3			5.6			10.5			10.6
APAC Region gross profit		17.8			19.9			36.1			38.4
APAC Region SG&A expenses		(19.0	)		(20.3	)		(38.7	)		(39.3	)
APAC Region Earnings from Operations		(1.2	)		(0.4	)		(2.6	)		(0.9	)
OCG gross profit		23.7			19.0			46.8			36.0
OCG SG&A expenses		(22.8	)		(19.8	)		(45.4	)		(39.2	)
OCG Earnings from Operations		0.9			(0.8	)		1.4			(3.2	)
Corporate		(19.7	)		(18.9	)		(39.7	)		(37.9	)
Consolidated Total		23.8			21.3			38.5			22.9
Other Expense, Net		(0.5	)		(0.7	)		(1.1	)		(1.1	)
Earnings Before Taxes	$	23.3		$	20.6		$	37.4		$	21.8