Note 4 - Restructuring

12 Months Ended

Dec. 30, 2012

Restructuring and Related Activities Disclosure [Text Block]

4. Restructuring

In December 2012, the Chief Executive Officer of Kelly Services, Inc. authorized a restructuring plan for our EMEA Commercial operations (“2012 Plan”).  The 2012 Plan was the result of management’s strategic review of operations in EMEA, which identified under-performing locations and the opportunity for operational cost savings.

Restructuring costs incurred in 2012 totaled income of $0.9 million.  This amount is comprised of the following: $2.0 million of severance and lease termination costs for EMEA Commercial operations which are in the process of closure or consolidation under the 2012 Plan, and income of $2.9 million related to revisions of the estimated lease termination costs for EMEA Commercial branches that closed in prior years (“Prior Years’ Plans”).  Restructuring costs incurred in 2011 amounted to expense of $2.8 million and relate to restructuring costs under the Prior Years’ Plans.  Restructuring costs incurred in 2010 amounted to expense of $7.2 million and primarily related to severance costs for the corporate headquarters and severance and lease termination costs for branches in the EMEA Commercial and APAC Commercial segments that were in the process of closure at the end of 2009.  These costs were reported as a component of SG&A expenses.

A summary of our balance sheet accrual related to the global restructuring costs follows (in millions of dollars):

Balance as of year-end 2010	$	4.7
Amounts charged to operations - Prior Years' Plans		2.8
Reductions for cash payments		(3.0	)
Balance as of year-end 2011		4.5
Amounts credited to operations - Prior Years' Plans		(2.9	)
Amounts charged to operations - 2012 Plan		2.0
Reductions for cash payments		(1.2	)
Balance as of year-end 2012	$	2.4

The remaining balance of $2.4 million as of year-end 2012 represents primarily severance and future lease payments and is expected to be paid by 2015.  On a quarterly basis, the Company reassesses the accrual associated with restructuring costs and adjusts it as necessary.