(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 | ||||||
☒ | 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 | ||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | September 27, 2020 | September 29, 2019 | ||||||||||||||||||||
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 | ||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | September 27, 2020 | September 29, 2019 | ||||||||||||||||||||
Net earnings (loss) | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax expense of $0.4, tax benefit of $0.2, tax expense of $0.0 and tax benefit of $0.1, respectively | ( | ( | |||||||||||||||||||||
Less: Reclassification adjustments included in net earnings | ( | ( | |||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | ( | $ |
September 27, 2020 | December 29, 2019 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowances of $11.4 and $12.9, respectively | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Properties held for sale | |||||||||||
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 | $ | $ |
September 27, 2020 | December 29, 2019 | ||||||||||
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; 36.6 shares issued at 2020 and 2019 | |||||||||||
Class B common stock, 10.0 shares authorized; 3.5 shares issued at 2020 and 2019 | |||||||||||
Treasury stock, at cost | |||||||||||
Class A common stock, 0.8 shares at 2020 and 1.0 shares at 2019 | ( | ( | |||||||||
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 | ||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | September 27, 2020 | September 29, 2019 | ||||||||||||||||||||
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 | |||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||
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) loss 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 | |||||||||||
Loans to equity affiliate | ( | ||||||||||
Investment in equity securities | ( | ( | |||||||||
Other investing activities | |||||||||||
Net cash from (used in) 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 | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash (used in) from 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 | |||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||
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 | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Total International | ||||||||||||||||||||||||||
Total Intersegment | ( | ( | ( | ( | ||||||||||||||||||||||
Total Revenue from Services | $ | $ | $ | $ |
Third Quarter | September Year to Date | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||
Mexico | ||||||||||||||||||||||||||
Puerto Rico | ||||||||||||||||||||||||||
Brazil | ||||||||||||||||||||||||||
Total Americas Region | ||||||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||
Switzerland | ||||||||||||||||||||||||||
France | ||||||||||||||||||||||||||
Portugal | ||||||||||||||||||||||||||
Russia | ||||||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||
Italy | ||||||||||||||||||||||||||
Germany | ||||||||||||||||||||||||||
Ireland | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total Europe Region | ||||||||||||||||||||||||||
Total Asia-Pacific Region | ||||||||||||||||||||||||||
Total Kelly Services, Inc. | $ | $ | $ | $ |
Third Quarter | September Year to Date | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
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 | |||||
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 | |||||
2020 | |||||
Allowance for credit losses: | |||||
Beginning balance | $ | ||||
Impact of adopting ASC 326 | |||||
Current period provision | |||||
Currency exchange effects | ( | ||||
Ending Balance | $ |
Cash | $ | ||||
Trade accounts receivable | |||||
Other current assets | |||||
Property and equipment | |||||
Goodwill | |||||
Intangibles | |||||
Other noncurrent assets | |||||
Current liabilities | ( | ||||
Noncurrent liabilities | ( | ||||
Assets acquired net of liabilities assumed | $ |
As of Third Quarter-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 | ( | ( | ||||||||||||||||||||||||
Insight earnout | ( | ( | ||||||||||||||||||||||||
Total liabilities at fair value | $ | ( | $ | $ | $ | ( |
As of Year-End 2019 | ||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In millions of dollars) | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
Investment in Persol Holdings | ||||||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ |
Lease Termination Costs | Severance Costs | Total | |||||||||||||||
Professional & Industrial | $ | $ | $ | ||||||||||||||
Science, Engineering & Technology | |||||||||||||||||
Education | |||||||||||||||||
International | |||||||||||||||||
Corporate | |||||||||||||||||
Total | $ | $ | $ |
Balance as of year-end 2019 | $ | ||||
Additions charged to Professional & Industrial | |||||
Additions charged to Science, Engineering & Technology | |||||
Additions charged to Education | |||||
Additions charged to International | |||||
Additions charged to Corporate | |||||
Reductions for lease termination costs related to fixed assets | ( | ||||
Reductions for cash payments related to all restructuring activities | ( | ||||
Balance as of first quarter-end 2020 | |||||
Reductions for cash payments related to all restructuring activities | ( | ||||
Accrual adjustments | ( | ||||
Balance as of second quarter-end 2020 | |||||
Reductions for cash payments related to all restructuring activities | ( | ||||
Accrual adjustments | ( | ||||
Balance as of third quarter-end 2020 | $ | ||||
As of Year-End 2019 | Additions to Goodwill | Impairment Adjustments | As of Second Quarter-End 2020 | ||||||||||||||||||||
(In millions of dollars) | |||||||||||||||||||||||
Americas Staffing | $ | $ | $ | ( | $ | ||||||||||||||||||
Global Talent Solutions | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
Third Quarter | September Year to Date | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(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 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
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 2019 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Vesting adjustment | ( | ||||||||||||||||||||||
Nonvested at third quarter-end 2020 | $ | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Nonvested at year-end 2019 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Nonvested at third quarter-end 2020 | $ | ||||||||||
Third Quarter | September Year to Date | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(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 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(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 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(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 | ( | ( | |||||||||||||||||||||
Less: Intersegment gross profit | |||||||||||||||||||||||
Less: Intersegment SG&A expenses | |||||||||||||||||||||||
Net Intersegment activity | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from services | $ | 1,038.2 | $ | 1,267.7 | (18.1) | % | $ | 3,274.6 | $ | 4,017.8 | (18.5) | % | |||||||||||||||||||||||||||||||||||||||||
Gross profit | 191.0 | 227.7 | (16.1) | 603.5 | 723.3 | (16.6) | |||||||||||||||||||||||||||||||||||||||||||||||
SG&A expenses excluding restructuring charges | 193.5 | 210.7 | (8.1) | 582.6 | 661.3 | (11.9) | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring charges | (0.1) | (0.1) | 68.5 | 8.4 | 5.6 | 49.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Total SG&A expenses | 193.4 | 210.6 | (8.2) | 591.0 | 666.9 | (11.4) | |||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment charge | — | — | — | 147.7 | — | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of assets | — | — | — | 32.1 | 12.3 | 161.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from operations | (2.4) | 17.1 | NM | (103.1) | 68.7 | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on investment in Persol Holdings | 16.8 | (39.3) | NM | (31.4) | 35.1 | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (0.7) | (0.2) | (286.4) | 3.6 | (1.1) | 421.4 | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | 13.7 | (22.4) | NM | (130.9) | 102.7 | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (1.2) | (12.8) | 90.9 | (36.5) | 6.3 | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Equity in net earnings (loss) of affiliate | 1.8 | (0.9) | NM | (1.0) | (1.0) | (1.8) | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | $ | 16.7 | $ | (10.5) | NM | $ | (95.4) | $ | 95.4 | NM | |||||||||||||||||||||||||||||||||||||||||||
Gross profit rate | 18.4 | % | 18.0 | % | 0.4 | pts. | 18.4 | % | 18.0 | % | 0.4 | pts. | |||||||||||||||||||||||||||||||||||||||||
Conversion rate | (1.3) | 7.5 | (8.8) | (17.1) | 9.5 | (26.6) | |||||||||||||||||||||||||||||||||||||||||||||||
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Revenue from Services: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | 446.5 | $ | 538.0 | (17.0) | % | $ | 1,346.7 | $ | 1,668.7 | (19.3) | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 244.0 | 285.2 | (14.4) | 761.5 | 859.7 | (11.4) | |||||||||||||||||||||||||||||||||||
Education | 27.5 | 57.1 | (51.8) | 195.1 | 313.9 | (37.8) | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 87.9 | 94.4 | (7.0) | 261.0 | 282.3 | (7.6) | |||||||||||||||||||||||||||||||||||
International | 232.4 | 293.4 | (20.8) | 710.6 | 893.6 | (20.5) | |||||||||||||||||||||||||||||||||||
Less: Intersegment revenue | (0.1) | (0.4) | (69.6) | (0.3) | (0.4) | (31.9) | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | 1,038.2 | $ | 1,267.7 | (18.1) | % | $ | 3,274.6 | $ | 4,017.8 | (18.5) | % |
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Gross Profit: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | 77.1 | $ | 91.8 | (16.1) | % | $ | 241.1 | $ | 291.6 | (17.3) | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 50.7 | 58.3 | (13.1) | 156.0 | 171.8 | (9.3) | |||||||||||||||||||||||||||||||||||
Education | 4.1 | 8.6 | (51.1) | 28.8 | 49.9 | (42.2) | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 29.1 | 29.5 | (1.5) | 87.1 | 90.7 | (4.0) | |||||||||||||||||||||||||||||||||||
International | 30.0 | 39.5 | (23.9) | 90.5 | 119.3 | (24.1) | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | 191.0 | $ | 227.7 | (16.1) | % | $ | 603.5 | $ | 723.3 | (16.6) | % | |||||||||||||||||||||||||||||
Gross Profit Rate: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | 17.3 | % | 17.1 | % | 0.2 | pts. | 17.9 | % | 17.5 | % | 0.4 | pts. | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 20.8 | 20.4 | 0.4 | 20.5 | 20.0 | 0.5 | |||||||||||||||||||||||||||||||||||
Education | 15.2 | 15.0 | 0.2 | 14.8 | 15.9 | (1.1) | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 33.1 | 31.3 | 1.8 | 33.4 | 32.2 | 1.2 | |||||||||||||||||||||||||||||||||||
International | 12.9 | 13.5 | (0.6) | 12.7 | 13.3 | (0.6) | |||||||||||||||||||||||||||||||||||
Consolidated Total | 18.4 | % | 18.0 | % | 0.4 | pts. | 18.4 | % | 18.0 | % | 0.4 | pts. | |||||||||||||||||||||||||||||
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
SG&A Expenses: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | 65.3 | $ | 77.6 | (15.8) | % | $ | 210.4 | $ | 246.9 | (14.8) | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 31.3 | 36.0 | (13.0) | 99.1 | 111.4 | (11.1) | |||||||||||||||||||||||||||||||||||
Education | 11.6 | 13.8 | (15.5) | 37.7 | 41.5 | (9.1) | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 25.4 | 29.1 | (12.7) | 79.1 | 90.9 | (13.0) | |||||||||||||||||||||||||||||||||||
International | 39.9 | 35.3 | 13.1 | 101.4 | 107.2 | (5.4) | |||||||||||||||||||||||||||||||||||
Corporate expenses | 19.9 | 18.8 | 5.3 | 63.3 | 69.0 | (8.3) | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | 193.4 | $ | 210.6 | (8.2) | % | $ | 591.0 | $ | 666.9 | (11.4) | % | |||||||||||||||||||||||||||||
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Restructuring Charges Included in SG&A Expenses: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | (0.1) | $ | (0.1) | (24.7) | % | $ | 4.3 | $ | 5.2 | (18.8) | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | — | — | — | 0.5 | 0.4 | 45.2 | |||||||||||||||||||||||||||||||||||
Education | — | — | — | 0.8 | — | NM | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
International | — | — | — | 1.1 | — | NM | |||||||||||||||||||||||||||||||||||
Corporate expenses | — | — | — | 1.7 | — | NM | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | (0.1) | $ | (0.1) | 68.5 | % | $ | 8.4 | $ | 5.6 | 49.1 | % |
Third Quarter | September Year to Date | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) from Operations: | |||||||||||||||||||||||||||||||||||||||||
Professional & Industrial | $ | 11.8 | $ | 14.2 | (17.6) | % | $ | 30.7 | $ | 44.7 | (31.4) | % | |||||||||||||||||||||||||||||
Science, Engineering & Technology | 19.4 | 22.3 | (13.2) | 56.9 | 60.4 | (5.9) | |||||||||||||||||||||||||||||||||||
Education | (7.5) | (5.2) | (43.2) | (8.9) | 8.4 | NM | |||||||||||||||||||||||||||||||||||
Outsourcing & Consulting | 3.7 | 0.4 | NM | 8.0 | (0.2) | NM | |||||||||||||||||||||||||||||||||||
International | (9.9) | 4.2 | NM | (10.9) | 12.1 | NM | |||||||||||||||||||||||||||||||||||
Corporate | (19.9) | (18.8) | (5.3) | (178.9) | (56.7) | (215.1) | |||||||||||||||||||||||||||||||||||
Consolidated Total | $ | (2.4) | $ | 17.1 | NM | $ | (103.1) | $ | 68.7 | 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) | ||||||||||||||||||||||
June 29, 2020 through August 2, 2020 | 167 | $ | 15.56 | — | $ | — | ||||||||||||||||||||
August 3, 2020 through August 30, 2020 | 1,618 | 17.13 | — | $ | — | |||||||||||||||||||||
August 31, 2020 through September 27, 2020 | 210 | 16.87 | — | $ | — | |||||||||||||||||||||
Total | 1,995 | $ | 16.97 | — |
Exhibit No. | Description | |||||||
Code of Business Conduct and Ethics, revised August 2020. | ||||||||
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 5, 2020 | |||||
/s/ Olivier G. Thirot | |||||
Olivier G. Thirot | |||||
Executive Vice President and | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
Date: November 5, 2020 | |||||
/s/ Laura S. Lockhart | |||||
Laura S. Lockhart | |||||
Vice President, Corporate Controller | |||||
and Chief Accounting Officer | |||||
(Principal Accounting Officer) |
Contacts | ||||||||
Kelly Services’ Business Conduct & Ethics Reporting Program | 877-978-0049 | https://www.integrity-helpline.com/kellyservices.jsp or for Europe: https://kellyserviceseu.alertline.com/gcs/welcome | ||||||
Sara Hennig, Vice President, Internal Audit | 248-244-4825 | Sara.Hennig@kellyservices.com | ||||||
Vanessa Williams, Senior Vice President and General Counsel | 248-963-5561 | vanessa.williams@kellyservices.com | ||||||
Jim Polehna, Senior Vice President, Corporate Secretary and Investor Relations | 248-244-4586 | polehjm@kellyservices.com | ||||||
Amy Bouque, Senior Vice President and Chief Human Resources Officer | 248-744-3606 | amy.bouque@kellyservices.com |
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 | ||||||
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 5, 2020 | ||||||||||||||
/s/ Peter W. Quigley | ||||||||||||||
Peter W. Quigley | ||||||||||||||
President and Chief Executive Officer |
Date: November 5, 2020 | ||||||||||||||
/s/ Olivier G. Thirot | ||||||||||||||
Olivier G. Thirot | ||||||||||||||
Executive Vice President and Chief Financial Officer |
Date: November 5, 2020 | ||||||||||||||
/s/ Peter W. Quigley | ||||||||||||||
Peter W. Quigley | ||||||||||||||
President and Chief Executive Officer |
Date: November 5, 2020 | ||||||||||||||
/s/ Olivier G. Thirot | ||||||||||||||
Olivier G. Thirot | ||||||||||||||
Executive Vice President and Chief Financial Officer |
Contingencies |
9 Months Ended |
---|---|
Sep. 27, 2020 | |
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 2020 and year-end 2019, the gross accrual for litigation costs amounted to $0.8 million and $9.9 million, respectively. The decrease in the gross accrual from year-end 2019 was due to cash payments made and the liabilities related to our Brazil operations which were sold during 2020. The Company maintains insurance coverage which may cover certain claims. When claims exceed the applicable policy deductible and realization of recovery of the claim 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 2020 and year-end 2019, the related insurance receivables amounted to $0.0 million and $4.1 million, respectively. The Company estimates the aggregate range of reasonably possible losses, in excess of amounts accrued, is $0.0 million to $1.4 million as of third quarter-end 2020. 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 |
---|---|
Sep. 27, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those annual periods, with early adoption permitted. Entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively. We adopted this guidance prospectively effective December 30, 2019. In accordance with the standard, we present capitalized implementation costs incurred in a hosting arrangement that is a service contract as other assets on our consolidated balance sheet. This presentation is consistent with the presentation of the prepayment of fees for the hosting arrangement. We recognized $0.3 million of amortization expense for capitalized implementation costs incurred in hosting arrangements September year to date 2020 as a component of SG&A expenses in our consolidated statements of earnings. We recognized $3.6 million of payments for capitalized implementation costs September year to date 2020 in the same manner as payments made for fees associated with the related hosting arrangements as a component of net cash from operating activities in our consolidated statements of cash flows. The Company's cloud computing arrangements are comprised of internal-use software platforms accounted for as service contracts. The Company does not have the ability to take possession of the software without significant penalty nor can the Company run the software on its own hardware or contract with another party unrelated to the vendor to host the software. In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), as clarified in ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2018-19, amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. Under this model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions and forecasted information rather than the prior methodology of delaying recognition of credit losses until it is probable a loss has been incurred. The standard also requires additional quantitative and qualitative disclosures regarding credit risk inherent in a reporting entity's portfolio, how management monitors this risk, management's estimate of expected credit losses, and the changes in the estimate that has taken place during the period. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019 with early adoption permitted for annual reporting periods beginning after December 15, 2018. We adopted this ASU using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures, as applicable. Results for reporting periods beginning after December 30, 2019 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We recorded a decrease to retained earnings of $0.7 million, net of tax, in the first quarter 2020 for the cumulative effect of adopting ASC 326. Related disclosures have been updated throughout the financial statements and footnotes. In August 2018, the FASB issued ASU 2018-13 which eliminates, adds and modifies certain fair value measurement disclosures. The ASU is effective for annual reporting periods beginning after December 15, 2019, 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. Not Yet Adopted In January 2020, the FASB issued 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. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. 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. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. 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 Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Revenue from services | $ 1,038.2 | $ 1,267.7 | $ 3,274.6 | $ 4,017.8 |
Cost of services | 847.2 | 1,040.0 | 2,671.1 | 3,294.5 |
Gross profit | 191.0 | 227.7 | 603.5 | 723.3 |
Selling, general and administrative expenses | 193.4 | 210.6 | 591.0 | 666.9 |
Goodwill impairment charge | 0.0 | 0.0 | 147.7 | 0.0 |
Gain on sale of assets | 0.0 | 0.0 | (32.1) | (12.3) |
Earnings (loss) from operations | (2.4) | 17.1 | (103.1) | 68.7 |
Gain (loss) on investment in Persol Holdings | 16.8 | (39.3) | (31.4) | 35.1 |
Other income (expense), net | (0.7) | (0.2) | 3.6 | (1.1) |
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | 13.7 | (22.4) | (130.9) | 102.7 |
Income Tax Expense (Benefit) | (1.2) | (12.8) | (36.5) | 6.3 |
Net earnings (loss) before equity in net earnings (loss) of affiliate | 14.9 | (9.6) | (94.4) | 96.4 |
Equity in net earnings (loss) of affiliate | 1.8 | (0.9) | (1.0) | (1.0) |
Net earnings (loss) | $ 16.7 | $ (10.5) | $ (95.4) | $ 95.4 |
Basic earnings (loss) per share (in dollars per share) | $ 0.42 | $ (0.27) | $ (2.43) | $ 2.42 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.42 | $ (0.27) | $ (2.43) | $ 2.41 |
Average shares outstanding (millions): | ||||
Basic (in shares) | 39.3 | 39.1 | 39.3 | 39.0 |
Diluted (in shares) | 39.4 | 39.1 | 39.3 | 39.2 |
Service | ||||
Revenue from services | $ 1,038.2 | $ 1,267.7 | $ 3,274.6 | $ 4,017.8 |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 16.7 | $ (10.5) | $ (95.4) | $ 95.4 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments, net of tax expense of $0.4, tax benefit of $0.2, tax expense of $0.0 and tax benefit of $0.1, respectively | 5.1 | (6.2) | 0.4 | (0.8) |
Less: Reclassification adjustments included in net earnings | (1.5) | 0.0 | (1.5) | 0.0 |
Foreign currency translation adjustments | 3.6 | (6.2) | (1.1) | (0.8) |
Other comprehensive income (loss) | 3.6 | (6.2) | (1.1) | (0.8) |
Comprehensive income (loss) | $ 20.3 | $ (16.7) | $ (96.5) | $ 94.6 |
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
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Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax expense (benefit) | $ 0.4 | $ (0.2) | $ 0.0 | $ (0.1) |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Sep. 27, 2020 |
Dec. 29, 2019 |
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Allowance for trade accounts receivables | $ 11.4 | $ 12.9 |
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) | 36.6 | 36.6 |
Treasury stock, common stock (in shares) | 0.8 | 1.0 |
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) | 3.5 | 3.5 |
Basis of Presentation |
9 Months Ended |
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Sep. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The 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 December 29, 2019, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 13, 2020 (the 2019 consolidated financial statements). The Company’s third fiscal quarter ended on September 27, 2020 (2020) and September 29, 2019 (2019), each of which contained 13 weeks. The corresponding September year to date periods for 2020 and 2019 each contained 39 weeks. Noncurrent accrued payroll and related taxes of $75.7 million in the consolidated balance sheet as of third quarter-end 2020 represent deferred U.S. payroll tax payments as allowed by COVID-19 economic relief legislation. Approximately half of the balance is expected to be paid by the end of fiscal 2021, with the remaining amount expected to be paid by the end of fiscal 2022. As discussed in the Segment Disclosures footnote, the Company has changed its reportable segments during the third quarter of 2020. As a result, certain reclassifications have been made to the prior year's financial statements to conform to the current year's presentation.
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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” formerly Commercial), 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. The following table presents our segment revenues disaggregated by service type (in millions):
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 operations were sold in August 2020 (see Acquisitions and Disposition footnote). The below table presents our revenues disaggregated by geography (in millions):
The below table presents our SET, OCG and International segment revenues disaggregated by geographic region (in millions):
Deferred Costs Deferred sales commissions, which are included in other assets in the consolidated balance sheet, were $1.0 million as of third quarter-end 2020 and $1.5 million as of year-end 2019. 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. Amortization expense for the deferred costs for the third quarter and September year to date 2019 was $0.4 million and $1.3 million, respectively. Deferred fulfillment costs, which are included in prepaid expenses and other current assets in the consolidated balance sheet, were $4.0 million as of third quarter-end 2020 and $3.6 million as of year-end 2019. 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. Amortization expense for the deferred costs for the third quarter and September year to date 2019 was $3.8 million and $10.3 million, respectively.
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Credit Losses |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Losses | Credit Losses On 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. Results for reporting periods beginning after December 30, 2019 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. As a result of adopting this guidance, we have updated our accounting policies as follows. Allowance for Uncollectible Accounts Receivable The Company records an allowance for uncollectible accounts receivable, billed and unbilled, based on historical loss experience, customer payment patterns, current economic trends, and reasonable and supportable forecasts, as applicable. The reserve for sales allowances is also included in the allowance for uncollectible accounts receivable. The Company estimates the current expected credit losses by applying internally developed loss rates to all outstanding receivable balances by aging category. Accounts receivable are written-off against the allowance when they are deemed uncollectible. The Company reviews the adequacy of the allowance for uncollectible accounts receivable on a quarterly basis and, if necessary, increases or decreases the balance by recording a charge or credit to selling, general and administrative ("SG&A") expenses for the portion of the adjustment relating to uncollectible accounts receivable, and a charge or credit to revenue from services for the portion of the adjustment relating to sales allowances. Allowance for Credit Losses - Other Financial Assets The Company measures expected credit losses on qualified financial assets that do not result from revenue transactions using a probability of default method by type of financing receivable. The estimate of expected credit losses considers credit ratings, financial data, historical write-off experience, current conditions, and reasonable and supportable forecasts, as applicable, to estimate the risk of loss. We are exposed to credit losses primarily through our sales of workforce solution services to customers. We establish an allowance for estimated credit losses in the current period resulting from the failure of our customers to make required payments on their trade accounts receivable in future periods. We pool such assets by geography and other similar risk characteristics, such as accounts in collection, and apply an aging method to estimate future credit losses utilizing inputs such as historical write-off experience, customer payment patterns, current collection data, and reasonable and supportable forecasts, as applicable. Credit risk with respect to accounts receivable is limited due to short payment terms. The Company also performs ongoing credit evaluations using applicable credit ratings of its customers to help analyze credit risk. We monitor ongoing credit exposure through frequent review of past due accounts (based on the payment terms of the contract) and follow-up with customers, as appropriate. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. We are engaged in litigation with a customer over a disputed accounts receivable balance of approximately $10 million for certain services rendered more than five years ago, which is 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 have appealed. Upon receiving the ruling, we increased our allowance for credit losses by $9.2 million to reflect the likelihood of collection, which is recorded in other assets in the consolidated balance sheet. We are also exposed to credit losses from our loan to PersolKelly Pte. Ltd. and other receivables measured at amortized cost. No other allowances related to the loan or other receivables were material for September year to date 2020. See Investment in PersolKelly Pte. Ltd. footnote for more information on the loan to PersolKelly Pte. Ltd. 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):
Write-offs are presented net of recoveries, which were not material for September year to date 2020. The rollforward of our allowance for credit losses related to the long-term customer receivable, which is recorded in other assets in the consolidated balance sheet, is as follows (in millions):
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Acquisitions and Disposition |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Disposition | Acquisitions and Disposition Acquisitions In the first quarter of 2020, Kelly Services USA, LLC, a wholly owned subsidiary of the Company, acquired Insight Workforce Solutions LLC and its affiliate, Insight EDU LLC (collectively, "Insight"), as detailed below. In the first quarter of 2019, the Company acquired NextGen Global Resources LLC (“NextGen”) and Global Technology Associates, LLC (“GTA”), as detailed below. We have accounted for these acquisitions under ASC 805, Business Combinations. Insight On January 14, 2020, Kelly Services USA, LLC 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 includes 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). In the third quarter of 2020, the earnout was revalued, resulting in an increase to the liability of $0.5 million. In the second quarter of 2020, the Company paid a working capital adjustment of $0.1 million. The purchase price allocation for this acquisition is preliminary and could change. This acquisition will increase our market share in the education staffing market in the U.S. Insight's results of operations are included in the Education segment. Pro forma results of operations for this acquisition have not been presented as it is not material to the consolidated statements of earnings. 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 Insight acquisition was approximately $10.6 million of intangible assets, made up entirely of customer relationships. The fair value of the customer relationships was determined using the multi-period excess earnings method. The customer relationships will be amortized over 10 years with no residual value. Goodwill generated from the acquisition was primarily attributable to the expected synergies from combining operations and expanding market potential, and was assigned to the Americas Staffing reporting unit (see Goodwill footnote). The amount of goodwill expected to be deductible for tax purposes is approximately $18.6 million. NextGen Global Resources On January 2, 2019, the Company acquired 100% of the membership interests of NextGen, a leading provider of telecommunications staffing solutions, for a purchase price of $51.0 million. Under terms of the purchase agreement, the purchase price was adjusted for cash held by NextGen at the closing date and estimated working capital adjustments resulting in the Company paying cash of $54.3 million. Due to the date of the acquisition, the third quarter and September year to date 2019 actual results represent the third quarter and September year to date 2019 pro forma results. Goodwill generated from this acquisition was primarily attributable to the market potential as a staffing solutions provider to the expanding telecommunications industry, and was assigned to the Americas Staffing reporting unit (see Goodwill footnote). Global Technology Associates On January 2, 2019, in a separate transaction, the Company acquired 100% of the membership interests of GTA, a leading provider of engineering, technology and business consulting solutions in the telecommunications industry, for a purchase price of $34.0 million. Under terms of the purchase agreement, the purchase price was adjusted for cash held by GTA at the closing date and estimated working capital adjustments resulting in the Company paying cash of $35.7 million. Due to the date of the acquisition, the third quarter and September year to date 2019 actual results represent the third quarter and September year to date 2019 pro forma results. Goodwill generated from this acquisition is primarily attributable to the market potential as a solutions provider to the expanding telecommunications industry, and was assigned to the GTS reporting unit (see Goodwill footnote). As noted above, goodwill related to these acquisitions was assigned to the Americas Staffing and GTS reporting units and 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). 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 represents the fair value of the liability (see Fair Value Measurements footnote) and completely offset the gain on the sale.
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Investment in Persol Holdings |
9 Months Ended |
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Sep. 27, 2020 | |
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 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 $16.8 million and a loss on the investment of $31.4 million in the third quarter and September year to date 2020, respectively, and a loss on the investment of $39.3 million and a gain on the investment of $35.1 million in the third quarter and September year to date 2019, respectively, was recorded in gain (loss) on investment in Persol Holdings in the consolidated statements of earnings. |
Investment in PersolKelly Pte Ltd. |
9 Months Ended |
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Sep. 27, 2020 | |
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 solutions business operating in eight 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 a gain of $1.8 million and a loss of $1.0 million in the third quarter and September year to date 2020, respectively, and a loss of $0.9 million and $1.0 million in the third quarter and September year to date 2019, respectively. This investment is evaluated for indicators of impairment on a periodic 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 $115.6 million as of third quarter-end 2020 and $117.2 million as of year-end 2019. The net amount due from the JV, a related party, was $10.9 million as of the third quarter-end 2020 and as of year-end 2019. The Company made loans, proportionate to its 49% ownership, to the JV for $7.0 million in 2018 and an additional $4.4 million in 2019 to fund working capital requirements as a result of their sustained revenue growth. The loans, which are outstanding as of third quarter-end 2020, are included in the net amounts due from the JV. Subsequent to the third quarter of 2020, the JV repaid $5.6 million of the outstanding loan balance; therefore, as of the third quarter-end 2020, $5.6 million of the loan balance is included in prepaid expenses and other current assets, and the remaining balance is included in other assets in the consolidated balance sheet. The carrying value of the loans approximates the fair value based on market interest rates. Accrued interest receivable, which is included in prepaid expenses and other current assets in the consolidated balance sheet, was not material at third quarter-end 2020 and year-end 2019. 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 trade accounts payable in the consolidated balance sheet, are not material. Expected credit losses are estimated over the contractual term of the loans. The required allowance is based on current and projected financial information from the JV, market-specific information and other relevant data available to the Company, as applicable. The allowance was not material at the third quarter-end 2020. The Company has accrued interest receivable from our loan to the JV. If applicable, we write off the uncollectible accrued interest receivable balance related to our loan to the JV within the same quarter the interest is determined to be uncollectible, which is considered timely. As such, an allowance for credit losses is not deemed necessary. Any write offs, if necessary, are recorded by reversing interest income. 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 2020 and year-end 2019 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 as of third quarter-end 2020 and year-end 2019 represent investments in money market funds that hold government securities, of which $5.3 million and $4.9 million, respectively, are restricted as to use and 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 valuations of money market funds are based on quoted market prices of those accounts as of the respective period end. The increase in money market funds from year-end 2019 was the result of higher cash and cash equivalent balances as of the end of the third quarter from an increase in cash flows from operations. 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 $19.6 million as of the third quarter-end 2020 and $18.9 million at year-end 2019. As of third quarter-end 2020, the Company had an indemnification liability of $2.5 million 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 will be measured on a recurring basis. During the third quarter and September year to date 2020, the Company recognized $2.5 million in expenses related to the indemnification liability in other income (expense), net in the consolidated statements of earnings. In connection with the first quarter 2020 acquisition of Insight, the Company has recorded an earnout liability totaling $2.1 million as of third quarter-end 2020 in accounts payable and accrued liabilities in the consolidated balance sheet (see Acquisitions and Disposition footnote). The valuation of the earnout liability was initially established using a Monte Carlo simulation and represents the fair value and is considered a level 3 liability. The Company recognized $0.5 million of expense related to the earnout liability in the third quarter of 2020, in SG&A expenses in the consolidated statements of earnings. Equity Investment Without Readily Determinable Fair Value The Company has a minority investment in Business Talent Group, LLC, which is included in other assets in the consolidated balance sheet. This investment is 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. The carrying amount of $5.0 million as of the third quarter-end 2020 and year-end 2019 represents the purchase price. There have been no observable price changes to the carrying amount or impairments. The Company also has a minority investment in Kenzie Academy Inc., which is included in other assets in the consolidated balance sheet. This investment is also measured using the measurement alternative for equity investments without a readily determinable fair value as described above. The investment totaled $1.4 million as of the third quarter-end 2020 and $1.3 million at year-end 2019, representing total cost plus observable price changes to date. 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 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 later in 2020 and to align the U.S. branch network facilities footprint with a more technology-enabled service delivery methodology. Restructuring costs incurred in 2020 totaled $8.4 million and are 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 $0.7 million as of third quarter-end 2020 primarily represents severance costs, and the majority is expected to be paid by the end of 2020. 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. See impairment adjustments in the table below. 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 June year to date 2020 are included in the table below. See Acquisitions and Disposition footnote for a description of the addition to goodwill in the first quarter of 2020. Due to the complete write-off of goodwill in the first quarter of 2020, reallocation of goodwill to the new reporting units as part of the third quarter 2020 change in segment reporting (see Segment Disclosures footnote) was not necessary. There were no additions to goodwill during the third quarter of 2020.
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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 2020 and 2019 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 2020 and 2019 follows (in millions of dollars except per share data):
Potentially dilutive shares outstanding are primarily related to performance shares for the third quarter and September year to date 2020 and 2019. Dividends paid per share for Class A and Class B common stock were $0.00 for the third quarter 2020, $0.075 for the third quarter 2019 and September year to date 2020, and $0.225 for September year to date 2019.
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation For the third quarter of 2020, the Company recognized stock compensation expense of $0.5 million, and related tax benefit of $0.2 million. For the third quarter of 2019, the Company recognized stock compensation benefit of $0.5 million, and related tax benefit of $0.4 million. For September year to date 2020, the Company recognized stock compensation expense of $2.9 million, and related tax benefit of $0.2 million. For September year to date 2019, the Company recognized stock compensation expense of $4.7 million, and related tax benefit of $1.1 million. Performance Shares A summary of the status of all nonvested performance shares at target as of third quarter-end 2020 and year-to-date changes is presented as follows below (in thousands of shares except per share data). There has been no grant of performance shares since year-end 2019. The majority of the vested shares in the table below is related to the 2017 performance share grant, which cliff-vested after approval from the Compensation Committee during the first quarter of 2020. The majority of the forfeited shares in the table below is related to the separation of two former senior officers during the third quarter of 2020. The vesting adjustment in the table below represents the 2017 Total Shareholder Return ("TSR") performance shares that did not vest because actual achievement was below the threshold level and resulted in no payout.
2018 Grant Update For the 2018 financial measure performance awards, the annual goals are set in February of each year, with the total award payout for 2018 grants based on a cumulative measure of the 2018, 2019 and 2020 goals. Accordingly, the Company remeasures the fair value of the 2018 financial measure performance shares each reporting period until the third year goals are set, after which the grant date fair value will be fixed for the remaining performance period. During the first quarter 2020, the final year of goals was set for the performance shares granted in 2018 and the grant date fair value for the 2018 financial measure performance shares was set at $17.35 per share. The grant date fair value per share will remain fixed for the remaining performance period. Restricted Stock A summary of the status of nonvested restricted stock as of third quarter-end 2020 and year-to-date changes is presented as follows below (in thousands of shares except per share data). The majority of the restricted stock granted related to new hires in the first quarter of 2020.
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Sale of Assets |
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Sep. 27, 2020 | |
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 of the third quarter 2020 as the Company has concluded the receivables are collectible. The net cash proceeds related to the sale are included in operating activities in the consolidated statements of cash flows and the fees related to the sale are 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 is recorded in gain on sale of assets in the consolidated statements of earnings. The Company leased back the headquarters buildings on the same date; see the Leases footnote for discussion of the sale and leaseback transaction. Gain on sale of assets of $12.3 million in the second quarter of 2019 primarily represents the sale of unused land located near the Company headquarters, and includes the excess of the $11.7 million sale proceeds over the cost of the parcel. The gain on sale of assets also includes proceeds of $2.1 million from the transfer of customer contracts related to the Company's legal specialty operations to a third party during the second quarter of 2019.
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Other Income (Expense), Net |
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Other Income (Expense), Net | Other Income (Expense), Net Included in other income (expense), net for the third quarter and September year to date 2020 and 2019 are the following:
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Income Taxes |
9 Months Ended |
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Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit was $1.2 million and $12.8 million for the third quarter of 2020 and 2019, respectively. Income tax benefit was $36.5 million and expense was $6.3 million for September year to date 2020 and 2019, 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 $5.2 million for the third quarter of 2020 and a benefit of $9.6 million for September year to date 2020, compared to a benefit of $12.1 million for the third quarter of 2019 and a charge of $10.7 million for September year to date 2019. September year to date 2020 includes a tax benefit of $23.0 million on the impairment of goodwill and a second quarter tax benefit of $7.7 million from Brazil outside basis differences. September year to date 2019 includes a second quarter net benefit of $10.4 million from valuation allowance changes in the United Kingdom and Germany. 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 impairment of goodwill in the first quarter of 2020, the recording of deferred taxes on Brazil outside basis differences in the second quarter of 2020, and the valuation allowance changes in the second quarter of 2019 were treated as discrete items. The work opportunity credit program is a temporary provision in the U.S. tax law and expires for employees hired after 2020. While the program has routinely been extended, it is uncertain whether it will again be extended. In the event the program is not renewed, we will continue to receive credits for qualified employees hired prior to 2021. The impact of the current economic slow-down resulting from the COVID-19 crisis did not change our judgment on the realizability of deferred tax assets or our plans to repatriate cash from foreign subsidiaries.
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Leases |
9 Months Ended |
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Sep. 27, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and financing leases for field offices and various equipment. Our leases have remaining lease terms of one year to 15 years. We determine if an arrangement is a lease at inception. At the beginning of the first quarter of 2019, we adopted ASC 842, Leases, using an optional transition method which allowed us to adopt the new lease standard at the adoption date, as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of earnings invested in the business in the period of adoption. We recorded $74.1 million of right-of-use (“ROU”) assets within operating lease right-of-use assets, $19.8 million of current lease liabilities within operating lease liabilities, current and $54.3 million of noncurrent lease liabilities within operating lease liabilities, noncurrent in the consolidated balance sheet on the date of adoption. No adjustment to the beginning balance of earnings invested in the business was necessary as a result of adopting this standard. During the first quarter 2020, the Company sold its main headquarters building and entered into a leaseback agreement, which is accounted for as an operating lease. As of first quarter-end 2020, we recognized $37.6 million of ROU assets within operating lease right-of-use assets, $1.2 million of current lease liabilities within operating lease liabilities, current and $36.1 million of noncurrent lease liabilities within operating lease liabilities, noncurrent in the consolidated balance sheet, with a discount rate of 4.8% over a 15-year lease term related to this lease. The sale and leaseback obligation matures as follows: $0.8 million in fiscal 2020, remaining; $3.3 million in fiscal 2021; $3.3 million in fiscal 2022; $3.4 million in fiscal 2023; $3.4 million in fiscal 2024; $3.4 million in fiscal 2025 and $34.0 million thereafter.
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Leases | Leases The Company has operating and financing leases for field offices and various equipment. Our leases have remaining lease terms of one year to 15 years. We determine if an arrangement is a lease at inception. At the beginning of the first quarter of 2019, we adopted ASC 842, Leases, using an optional transition method which allowed us to adopt the new lease standard at the adoption date, as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of earnings invested in the business in the period of adoption. We recorded $74.1 million of right-of-use (“ROU”) assets within operating lease right-of-use assets, $19.8 million of current lease liabilities within operating lease liabilities, current and $54.3 million of noncurrent lease liabilities within operating lease liabilities, noncurrent in the consolidated balance sheet on the date of adoption. No adjustment to the beginning balance of earnings invested in the business was necessary as a result of adopting this standard. During the first quarter 2020, the Company sold its main headquarters building and entered into a leaseback agreement, which is accounted for as an operating lease. As of first quarter-end 2020, we recognized $37.6 million of ROU assets within operating lease right-of-use assets, $1.2 million of current lease liabilities within operating lease liabilities, current and $36.1 million of noncurrent lease liabilities within operating lease liabilities, noncurrent in the consolidated balance sheet, with a discount rate of 4.8% over a 15-year lease term related to this lease. The sale and leaseback obligation matures as follows: $0.8 million in fiscal 2020, remaining; $3.3 million in fiscal 2021; $3.3 million in fiscal 2022; $3.4 million in fiscal 2023; $3.4 million in fiscal 2024; $3.4 million in fiscal 2025 and $34.0 million thereafter.
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Segment Disclosures |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Disclosures | Segment Disclosures Beginning in the third quarter of 2020, the Company adopted a new operating model reflecting the Company's focus on delivering specialty talent solutions. The Company’s new 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. Professional & Industrial specializes in delivering professional and industrial talent to customers including staffing, KellyConnect, and outcome-based solutions in the Americas region. Science, Engineering & Technology delivers both staffing and outcome-based solutions in the specialty areas of science, technology, telecom and engineering primarily in the U.S. and Canada. Education primarily specializes in K-12 substitute teachers and support staff, as well as some early childhood and higher education support, in the Americas region. Outsourcing & Consulting is focused on providing RPO, MSP and PPO solutions in the Americas, Europe and Asia-Pacific regions. International provides talent to customers across all specialties primarily through staffing services within Europe as well as Brazil and Mexico in the Americas region. Our Brazil operations were sold in August 2020 (see Acquisitions and Disposition footnote). Corporate expenses that directly support the operating units have been allocated to Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International based on work effort, volume or, in the absence of a readily available measurement process, proportionately based on gross profit realized. Unallocated corporate expenses include those related to incentive compensation, law and risk management, certain finance and accounting functions, executive management, corporate campus facilities, IT production support, certain legal costs and expenses related to corporate initiatives that do not directly benefit a specific operating segment. Consistent with the information provided to and evaluated by the CODM, the goodwill impairment charge in the first quarter of 2020 is included in Corporate expenses. The following tables present information about the reported revenue from services and gross profit of the Company by segment, along with a reconciliation to earnings (loss) before taxes and equity in net earnings (loss) of affiliate, for the third quarter and September year to date 2020 and 2019 based on the new operating model. Prior year reportable segment results were recast to align with the current presentation. 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.
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Subsequent Event |
9 Months Ended |
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Sep. 27, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventIn October 2020, management made the decision to begin reducing staffing levels in all segments and Corporate through involuntary terminations. Restructuring charges of approximately $4-$5 million for severance and related benefits to be paid to impacted employees will be recognized as a charge to SG&A expenses in the fourth quarter of 2020. |
New Accounting Pronouncements (Policies) |
9 Months Ended |
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Sep. 27, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those annual periods, with early adoption permitted. Entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively. We adopted this guidance prospectively effective December 30, 2019. In accordance with the standard, we present capitalized implementation costs incurred in a hosting arrangement that is a service contract as other assets on our consolidated balance sheet. This presentation is consistent with the presentation of the prepayment of fees for the hosting arrangement. We recognized $0.3 million of amortization expense for capitalized implementation costs incurred in hosting arrangements September year to date 2020 as a component of SG&A expenses in our consolidated statements of earnings. We recognized $3.6 million of payments for capitalized implementation costs September year to date 2020 in the same manner as payments made for fees associated with the related hosting arrangements as a component of net cash from operating activities in our consolidated statements of cash flows. The Company's cloud computing arrangements are comprised of internal-use software platforms accounted for as service contracts. The Company does not have the ability to take possession of the software without significant penalty nor can the Company run the software on its own hardware or contract with another party unrelated to the vendor to host the software. In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), as clarified in ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2018-19, amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. Under this model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions and forecasted information rather than the prior methodology of delaying recognition of credit losses until it is probable a loss has been incurred. The standard also requires additional quantitative and qualitative disclosures regarding credit risk inherent in a reporting entity's portfolio, how management monitors this risk, management's estimate of expected credit losses, and the changes in the estimate that has taken place during the period. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019 with early adoption permitted for annual reporting periods beginning after December 15, 2018. We adopted this ASU using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures, as applicable. Results for reporting periods beginning after December 30, 2019 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We recorded a decrease to retained earnings of $0.7 million, net of tax, in the first quarter 2020 for the cumulative effect of adopting ASC 326. Related disclosures have been updated throughout the financial statements and footnotes. In August 2018, the FASB issued ASU 2018-13 which eliminates, adds and modifies certain fair value measurement disclosures. The ASU is effective for annual reporting periods beginning after December 15, 2019, 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. Not Yet Adopted In January 2020, the FASB issued 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. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. 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. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. 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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Sep. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents our segment revenues disaggregated by service type (in millions):
The below table presents our revenues disaggregated by geography (in millions):
The below table presents our SET, OCG and International segment revenues disaggregated by geographic region (in millions):
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Credit Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
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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 is recorded in other assets in the consolidated balance sheet, is as follows (in millions):
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Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Fair Value Measurements (Tables) |
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Sep. 27, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2020 totaled $8.4 million and are 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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Sep. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Net Carrying Amount of 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. See impairment adjustments in the table below. 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 June year to date 2020 are included in the table below. See Acquisitions and Disposition footnote for a description of the addition to goodwill in the first quarter of 2020. Due to the complete write-off of goodwill in the first quarter of 2020, reallocation of goodwill to the new reporting units as part of the third quarter 2020 change in segment reporting (see Segment Disclosures footnote) was not necessary. There were no additions to goodwill during the third quarter of 2020.
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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 2020 and 2019 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 2020 and 2019 follows (in millions of dollars except per share data):
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 2020 and year-to-date changes is presented as follows below (in thousands of shares except per share data). There has been no grant of performance shares since year-end 2019. The majority of the vested shares in the table below is related to the 2017 performance share grant, which cliff-vested after approval from the Compensation Committee during the first quarter of 2020. The majority of the forfeited shares in the table below is related to the separation of two former senior officers during the third quarter of 2020. The vesting adjustment in the table below represents the 2017 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 2020 and year-to-date changes is presented as follows below (in thousands of shares except per share data). The majority of the restricted stock granted related to new hires in the first quarter of 2020.
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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 2020 and 2019 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 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 2020 and 2019 based on the new operating model. Prior year reportable segment results were recast to align with the current presentation. 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.
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Segment Earnings From Operations |
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Basis of Presentation - Narrative (Details) - USD ($) $ in Millions |
Sep. 27, 2020 |
Dec. 29, 2019 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payroll and related taxes | $ 75.7 | $ 0.0 |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
Dec. 29, 2019 |
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Deferred Sales Commissions | |||||
Revenue from Contract with Customer [Line Items] | |||||
Capitalized contract cost | $ 1.0 | $ 1.0 | $ 1.5 | ||
Capitalized contract cost, amortization | 0.2 | $ 0.4 | 0.8 | $ 1.3 | |
Deferred Fulfillment Costs | |||||
Revenue from Contract with Customer [Line Items] | |||||
Capitalized contract cost | 4.0 | 4.0 | $ 3.6 | ||
Capitalized contract cost, amortization | $ 5.3 | $ 3.8 | $ 14.9 | $ 10.3 |
Credit Losses - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 27, 2020 |
Dec. 29, 2019 |
|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loss contingency, damages sought, value | $ 10.0 | |
Financing Receivable, Allowance for Credit Loss | 10.9 | $ 1.0 |
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 Trade Accounts Receivable (Details) $ in Millions |
9 Months Ended |
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Sep. 27, 2020
USD ($)
| |
Allowance for credit losses: | |
Beginning balance | $ 9.7 |
Impact of adopting ASC 326 | 0.3 |
Current period provision | 1.2 |
Currency exchange effects | (0.2) |
Write-offs | (1.6) |
Ending balance | $ 9.4 |
Credit Losses - Allowance for Credit Losses Related to the Long-Term Customer Receivable (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 27, 2020
USD ($)
| |
Allowance for credit losses: | |
Beginning balance | $ 1.0 |
Impact of adopting ASC 326 | 0.7 |
Current period provision | 9.5 |
Currency exchange effects | (0.3) |
Ending balance | $ 10.9 |
Acquisitions and Disposition - Acquisitions Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Jan. 14, 2020 |
Jan. 02, 2019 |
Jun. 28, 2020 |
Sep. 27, 2020 |
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Insight | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage acquired | 100.00% | |||
Purchase price of acquisition | $ 34.5 | |||
Purchase price paid at closing | 38.1 | |||
Contingent consideration, liability | 1.6 | $ 0.5 | ||
Payments for previous acquisition | $ 0.1 | |||
Intangible assets acquired | $ 10.6 | |||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | |||
Business acquisition, goodwill, expected tax deductible amount | $ 18.6 | |||
NextGen Global Resources LLC | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage acquired | 100.00% | |||
Purchase price of acquisition | $ 51.0 | |||
Purchase price paid at closing | $ 54.3 | |||
Global Technology Associates, LLC | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage acquired | 100.00% | |||
Purchase price of acquisition | $ 34.0 | |||
Purchase price paid at closing | $ 35.7 |
Acquisitions and Disposition - Fair Value of Assets Assumed and Liabilities Acquired (Details) - USD ($) $ in Millions |
Sep. 27, 2020 |
Jun. 28, 2020 |
Jan. 14, 2020 |
Dec. 29, 2019 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill, net | $ 0.0 | $ 0.0 | $ 127.8 | |
Insight | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1.8 | |||
Trade accounts receivable | 9.6 | |||
Other current assets | 0.2 | |||
Property and equipment | 0.2 | |||
Goodwill, net | 19.9 | |||
Intangibles | 10.6 | |||
Other noncurrent assets | 0.2 | |||
Current liabilities | (2.6) | |||
Noncurrent liabilities | (0.1) | |||
Assets acquired net of liabilities assumed | $ 39.8 |
Acquisitions and Disposition - Disposition Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Aug. 18, 2020 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of Brazil, net of cash disposed | $ 1.2 | $ 0.0 | |
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 | ||
---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Investment in Persol Holdings [Abstract] | ||||
Gain (loss) on investment in Persol Holdings | $ 16.8 | $ (39.3) | $ (31.4) | $ 35.1 |
Restructuring - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Sep. 27, 2020 |
Jun. 28, 2020 |
Mar. 29, 2020 |
Dec. 29, 2019 |
|
Restructuring and Related Activities [Abstract] | ||||
Restructuring costs | $ 8.4 | |||
Restructuring accrual | $ 0.7 | $ 1.6 | $ 3.9 | $ 0.3 |
Restructuring - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2019 |
Sep. 27, 2020 |
|
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 | $ 4.4 | 4.3 |
Science, Engineering & Technology | ||
Restructuring Cost and Reserve [Line Items] | ||
Lease Termination Costs | 0.5 | |
Severance Costs | 0.0 | |
Total | 0.5 | 0.5 |
Education | ||
Restructuring Cost and Reserve [Line Items] | ||
Lease Termination Costs | 0.1 | |
Severance Costs | 0.7 | |
Total | 0.9 | 0.8 |
International | ||
Restructuring Cost and Reserve [Line Items] | ||
Lease Termination Costs | 0.7 | |
Severance Costs | 0.4 | |
Total | 1.1 | 1.1 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Lease Termination Costs | 0.0 | |
Severance Costs | 1.7 | |
Total | $ 1.8 | $ 1.7 |
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 27, 2020 |
Jun. 28, 2020 |
Mar. 31, 2019 |
Sep. 27, 2020 |
|
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 1.6 | $ 3.9 | $ 0.3 | |
Additions charged | 8.4 | |||
Reductions for lease termination costs related to fixed assets | $ (0.6) | |||
Reductions for cash payments related to all restructuring activities | (0.8) | (2.1) | (4.5) | |
Accrual adjustments | (0.1) | (0.2) | ||
Ending balance | $ 0.7 | $ 1.6 | 0.7 | |
Professional & Industrial | ||||
Restructuring Reserve [Roll Forward] | ||||
Additions charged | 4.4 | 4.3 | ||
Science, Engineering & Technology | ||||
Restructuring Reserve [Roll Forward] | ||||
Additions charged | 0.5 | 0.5 | ||
Education | ||||
Restructuring Reserve [Roll Forward] | ||||
Additions charged | 0.9 | 0.8 | ||
International | ||||
Restructuring Reserve [Roll Forward] | ||||
Additions charged | 1.1 | 1.1 | ||
Corporate | ||||
Restructuring Reserve [Roll Forward] | ||||
Additions charged | $ 1.8 | $ 1.7 |
Goodwill - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 27, 2020 |
Mar. 29, 2020 |
Sep. 29, 2019 |
Jun. 28, 2020 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill impairment charge | $ 0.0 | $ 147.7 | $ 0.0 | $ 147.7 | $ 147.7 | $ 0.0 |
Goodwill - Changes in the Net Carrying Amount of Goodwill (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 27, 2020 |
Mar. 29, 2020 |
Sep. 29, 2019 |
Jun. 28, 2020 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | $ 0.0 | $ 127.8 | $ 127.8 | $ 127.8 | ||
Additions to Goodwill | 19.9 | |||||
Goodwill, Impairment Loss | 0.0 | (147.7) | $ 0.0 | (147.7) | (147.7) | $ 0.0 |
Goodwill, ending balance | 0.0 | 0.0 | 0.0 | |||
Americas Staffing | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 0.0 | 58.5 | 58.5 | 58.5 | ||
Additions to Goodwill | 19.9 | |||||
Goodwill, Impairment Loss | (78.4) | |||||
Goodwill, ending balance | 0.0 | |||||
Global Talent Solutions | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | $ 0.0 | $ 69.3 | 69.3 | $ 69.3 | ||
Additions to Goodwill | 0.0 | |||||
Goodwill, Impairment Loss | (69.3) | |||||
Goodwill, ending balance | $ 0.0 |
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 | ||
---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Earnings Per Share [Abstract] | ||||
Net earnings (loss) | $ 16.7 | $ (10.5) | $ (95.4) | $ 95.4 |
Less: earnings allocated to participating securities | (0.2) | 0.0 | 0.0 | (1.0) |
Net earnings (loss) available to common shareholders | $ 16.5 | $ (10.5) | $ (95.4) | $ 94.4 |
Average shares outstanding (millions): | ||||
Basic (in shares) | 39.3 | 39.1 | 39.3 | 39.0 |
Dilutive share awards (in shares) | 0.1 | 0.0 | 0.0 | 0.2 |
Diluted (in shares) | 39.4 | 39.1 | 39.3 | 39.2 |
Basic earnings (loss) per share on common stock (in dollars per share) | $ 0.42 | $ (0.27) | $ (2.43) | $ 2.42 |
Diluted earnings (loss) per share on common stock (in dollars per share) | $ 0.42 | $ (0.27) | $ (2.43) | $ 2.41 |
Earnings (Loss) Per Share - Narrative (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Class A Common Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends per share (in dollars per share) | $ 0.00 | $ 0.075 | $ 0.075 | $ 0.225 |
Class B Common Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends per share (in dollars per share) | $ 0.00 | $ 0.075 | $ 0.075 | $ 0.225 |
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
Mar. 29, 2020 |
Dec. 29, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense (benefit) | $ 0.5 | $ (0.5) | $ 2.9 | $ 4.7 | ||
Related tax benefit (expense) | $ 0.2 | $ 0.4 | $ 0.2 | $ 1.1 | ||
Financial Measure Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 22.32 | $ 22.32 | $ 24.21 | |||
2018 grant | Financial Measure Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 17.35 |
Stock-Based Compensation - Schedule of Nonvested Restricted Stock (Details) - Restricted Stock shares in Thousands |
9 Months Ended |
---|---|
Sep. 27, 2020
$ / shares
shares
| |
Shares | |
Nonvested, beginning balance (in shares) | shares | 360 |
Granted (in shares) | shares | 64 |
Vested (in shares) | shares | (114) |
Forfeited (in shares) | shares | (30) |
Nonvested, ending balance (in shares) | shares | 280 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 24.92 |
Granted (in dollars per share) | $ / shares | 14.69 |
Vested (in dollars per share) | $ / shares | 24.07 |
Forfeited (in dollars per share) | $ / shares | 24.64 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 22.91 |
Sale of Assets - Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 20, 2020
USD ($)
headquarters
|
Sep. 27, 2020
USD ($)
|
Jun. 28, 2020
USD ($)
|
Sep. 29, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
Sep. 27, 2020
USD ($)
|
Sep. 29, 2019
USD ($)
|
|
Sale of Assets [Line Items] | |||||||
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 transaction, gross proceeds | $ 58.5 | ||||||
Sale leaseback transaction, net proceeds | 55.5 | ||||||
Properties held-for-sale | 23.4 | ||||||
Gain on sale on properties | $ 32.1 | ||||||
Proceeds from sale of assets | $ 55.5 | $ 13.8 | |||||
Gain on sale of assets | $ 0.0 | $ 0.0 | $ 12.3 | $ 32.1 | $ 12.3 | ||
Land | |||||||
Sale of Assets [Line Items] | |||||||
Proceeds from sale of assets | 11.7 | ||||||
Transfer of customer contracts | |||||||
Sale of Assets [Line Items] | |||||||
Proceeds from sale of assets | $ 2.1 |
Other Income (Expense), Net - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Other Income and Expenses [Abstract] | ||||
Interest income | $ 0.1 | $ 0.4 | $ 0.5 | $ 0.8 |
Interest expense | (0.5) | (0.9) | (2.2) | (3.2) |
Dividend income | 0.0 | 0.0 | 1.3 | 1.3 |
Foreign exchange gains (losses) | (0.2) | 0.3 | 3.5 | (0.4) |
Other income | 0.5 | 0.4 | ||
Other expense | (0.1) | 0.0 | ||
Other income (expense), net | $ (0.7) | $ (0.2) | $ 3.6 | $ (1.1) |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Income Taxes [Line Items] | ||||
Income tax expense (benefit) | $ (1.2) | $ (12.8) | $ (36.5) | $ 6.3 |
Outside basis difference | (7.7) | |||
Increase (decrease) in valuation allowance | (10.4) | |||
Persol Holdings | ||||
Income Taxes [Line Items] | ||||
Income tax expense (benefit) | $ 5.2 | $ (12.1) | (9.6) | $ 10.7 |
Goodwill | ||||
Income Taxes [Line Items] | ||||
Income tax expense (benefit) | $ (23.0) |
Contingencies - Narrative (Details) - USD ($) $ in Millions |
Sep. 27, 2020 |
Dec. 29, 2019 |
---|---|---|
Loss Contingencies [Line Items] | ||
Accrual for litigation costs | $ 0.8 | $ 9.9 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, portion not accrued | 0.0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, portion not accrued | 1.4 | |
Prepaid Expenses and Other Current Assets | ||
Loss Contingencies [Line Items] | ||
Insurance recoveries | $ 0.0 | $ 4.1 |
Segment Disclosures - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 27, 2020
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 | ||
---|---|---|---|---|
Sep. 27, 2020 |
Sep. 29, 2019 |
Sep. 27, 2020 |
Sep. 29, 2019 |
|
Revenue from Services | ||||
Segment revenue from services | $ 1,038.2 | $ 1,267.7 | $ 3,274.6 | $ 4,017.8 |
Less: Intersegment revenue | ||||
Revenue from Services | ||||
Segment revenue from services | (0.1) | (0.4) | (0.3) | (0.4) |
Professional & Industrial | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 446.5 | 538.0 | 1,346.7 | 1,668.7 |
Science, Engineering & Technology | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 244.0 | 285.2 | 761.5 | 859.7 |
Education | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 27.5 | 57.1 | 195.1 | 313.9 |
Outsourcing & Consulting | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 87.9 | 94.4 | 261.0 | 282.3 |
International | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | $ 232.4 | $ 293.4 | $ 710.6 | $ 893.6 |
New Accounting Pronouncements (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 27, 2020 |
Jun. 28, 2020 |
Dec. 29, 2019 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Earnings invested in the business | $ 1,139.5 | $ 1,238.6 | |
Accounting Standards Update 2018-15 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Hosting arrangement, service contract, implementation cost, expense, amortization | 0.3 | ||
Payments for hosting arrangement, service contract | $ 3.6 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Earnings invested in the business | $ (0.7) |
Subsequent Event (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Jan. 03, 2021 |
Sep. 27, 2020 |
|
Subsequent Event [Line Items] | ||
Restructuring costs | $ 8.4 | |
Minimum | Forecast | ||
Subsequent Event [Line Items] | ||
Restructuring costs | $ 4.0 | |
Maximum | Forecast | ||
Subsequent Event [Line Items] | ||
Restructuring costs | $ 5.0 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |
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