Note 18 - Segment Disclosures

12 Months Ended

Dec. 30, 2012

Segment Reporting Disclosure [Text Block]

18.  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 2012, 2011 and 2010.  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.

	2012			2011			2010
	(In millions of dollars)
Revenue from Services:
Americas Commercial	$	2,642.4		$	2,660.9		$	2,428.2
Americas PT		1,029.7			982.8			889.0
Total Americas Commercial and PT		3,672.1			3,643.7			3,317.2
EMEA Commercial		854.6			990.1			872.0
EMEA PT		168.3			178.9			147.6
Total EMEA Commercial and PT		1,022.9			1,169.0			1,019.6
APAC Commercial		343.2			397.6			355.3
APAC PT		51.6			51.4			32.5
Total APAC Commercial and PT		394.8			449.0			387.8
OCG		396.1			317.3			254.8
Less: Intersegment revenue		(35.4	)		(28.0	)		(29.1	)
Consolidated Total	$	5,450.5		$	5,551.0		$	4,950.3

	2012			2011			2010
	(In millions of dollars)
Earnings from Operations:
Americas Commercial gross profit	$	388.2		$	375.3		$	353.6
Americas PT gross profit		159.7			147.8			139.9
Americas Region gross profit		547.9			523.1			493.5
Americas Region SG&A expenses		(405.8	)		(396.4	)		(367.9	)
Americas Region Earnings from Operations		142.1			126.7			125.6
EMEA Commercial gross profit		133.8			160.3			140.8
EMEA PT gross profit		43.0			47.4			38.7
EMEA Region gross profit		176.8			207.7			179.5
EMEA Region SG&A expenses		(168.1	)		(189.7	)		(169.9	)
EMEA Region asset impairments		-			-			(1.5	)
EMEA Region Earnings from Operations		8.7			18.0			8.1
APAC Commercial gross profit		50.1			55.7			48.4
APAC PT gross profit		21.0			20.6			13.8
APAC Region gross profit		71.1			76.3			62.2
APAC Region SG&A expenses		(73.4	)		(77.0	)		(62.5	)
APAC Region Loss from Operations		(2.3	)		(0.7	)		(0.3	)
OCG gross profit		104.0			78.8			54.1
OCG SG&A expenses		(95.4	)		(81.4	)		(71.7	)
OCG Earnings (Loss) from Operations		8.6			(2.6	)		(17.6	)
Corporate		(84.8	)		(83.7	)		(77.7	)
Consolidated Total		72.3			57.7			38.1
Other Expense, Net		3.5			0.1			5.4
Earnings From Continuing Operations Before Taxes	$	68.8		$	57.6		$	32.7

A summary of revenue from services by geographic area for 2012, 2011 and 2010 follows:

	2012		2011		2010
	(In millions of dollars)
Revenue From Services:
Domestic	$	3,464.2	$	3,445.4	$	3,121.9
International		1,986.3		2,105.6		1,828.4
Total	$	5,450.5	$	5,551.0	$	4,950.3

Foreign revenue is based on the country in which the legal subsidiary is domiciled.  No single foreign country’s revenue was material to the consolidated revenues of the Company.  Revenue from no single customer was material to the consolidated revenues of the Company.

A summary of long-lived assets information by geographic area as of year-end 2012 and 2011 follows:

	2012		2011
	(In millions of dollars)
Long-Lived Assets:
Domestic	$	72.1	$	72.9
International		17.8		17.7
Total	$	89.9	$	90.6

Long-lived assets include primarily property and equipment.  No single foreign country’s long-lived assets were material to the consolidated long-lived assets of the Company.