(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page Number | |||||
13 Weeks Ended | |||||||||||
March 31, 2024 | April 2, 2023 | ||||||||||
Revenue from services | $ | $ | |||||||||
Cost of services | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative expenses | |||||||||||
Gain on sale of EMEA staffing operations | ( | ||||||||||
Earnings from operations | |||||||||||
Gain on forward contract | |||||||||||
Other income (expense), net | |||||||||||
Earnings before taxes | |||||||||||
Income tax expense | |||||||||||
Net earnings | $ | $ | |||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ | |||||||||
Average shares outstanding (millions): | |||||||||||
Basic | |||||||||||
Diluted |
13 Weeks Ended | |||||||||||
March 31, 2024 | April 2, 2023 | ||||||||||
Net earnings | $ | $ | |||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments, net of tax benefit of $0.0, and tax expense of $0.0, respectively | ( | ||||||||||
Less: Reclassification adjustments included in net earnings | ( | ||||||||||
Foreign currency translation adjustments | ( | ||||||||||
Pension liability adjustments, net of tax benefit of $0.4 | |||||||||||
Less: Reclassification adjustments included in net earnings | |||||||||||
Pension liability adjustments | |||||||||||
Other comprehensive income (loss) | ( | ||||||||||
Comprehensive income (loss) | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowances of $8.8 and $8.4 respectively | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Assets 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 | |||||||||||
Retirement plan assets | |||||||||||
Goodwill, net | |||||||||||
Intangibles, net | |||||||||||
Other assets | |||||||||||
Total noncurrent assets | |||||||||||
Total Assets | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Operating lease liabilities | |||||||||||
Accrued payroll and related taxes | |||||||||||
Accrued workers’ compensation and other claims | |||||||||||
Income and other taxes | |||||||||||
Liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
Noncurrent Liabilities | |||||||||||
Operating lease liabilities | |||||||||||
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 million shares authorized; 35.2 million shares issued at 2024 and 2023 | |||||||||||
Class B common stock, 10.0 million shares authorized; 3.3 million shares issued at 2024 and 2023 | |||||||||||
Treasury stock, at cost | |||||||||||
Class A common stock, 3.0 million shares at 2024 and 3.2 million shares at 2023 | ( | ( | |||||||||
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 | |||||||||||
March 31, 2024 | April 2, 2023 | ||||||||||
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 and other | |||||||||||
Purchase of treasury stock | ( | ||||||||||
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 | |||||||||||
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 | $ | $ |
13 Weeks Ended | |||||||||||
March 31, 2024 | April 2, 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | $ | |||||||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||||||
Gain on sale of EMEA staffing operations | ( | ||||||||||
Depreciation and amortization | |||||||||||
Operating lease asset amortization | |||||||||||
Provision for credit losses and sales allowances | |||||||||||
Stock-based compensation | |||||||||||
Gain on sale of equity securities | ( | ||||||||||
Gain on forward contract | ( | ||||||||||
Other, net | ( | ( | |||||||||
Changes in operating assets and liabilities, net of acquisition | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sale of EMEA staffing operations, net of cash disposed | |||||||||||
Payment for settlement of forward contract | ( | ||||||||||
Proceeds from 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 | ( | ( | |||||||||
Buyback of common shares | ( | ||||||||||
Contingent consideration payments | ( | ||||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | ( | ( | |||||||||
Net change in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period (1) | $ | $ |
13 Weeks Ended | |||||||||||
March 31, 2024 | April 2, 2023 | ||||||||||
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 | $ | $ |
First Quarter | ||||||||||||||
2024 | 2023 | |||||||||||||
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 | $ | $ |
First Quarter | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Americas | |||||||||||||||||
United States | $ | $ | |||||||||||||||
Canada | |||||||||||||||||
Puerto Rico | |||||||||||||||||
Mexico | |||||||||||||||||
Total Americas Region | |||||||||||||||||
Europe | |||||||||||||||||
Switzerland | |||||||||||||||||
France | |||||||||||||||||
Portugal | |||||||||||||||||
Italy | |||||||||||||||||
Other | |||||||||||||||||
Total Europe Region | |||||||||||||||||
Total Asia-Pacific Region | |||||||||||||||||
Total Kelly Services, Inc. | $ | $ |
First Quarter | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Science, Engineering & Technology | |||||||||||||||||
Americas | $ | $ | |||||||||||||||
Europe | |||||||||||||||||
Total Science, Engineering & Technology | $ | $ | |||||||||||||||
Outsourcing & Consulting | |||||||||||||||||
Americas | $ | $ | |||||||||||||||
Europe | |||||||||||||||||
Asia-Pacific | |||||||||||||||||
Total Outsourcing & Consulting | $ | $ | |||||||||||||||
International | |||||||||||||||||
Europe | $ | $ | |||||||||||||||
Total International | $ | $ |
First Quarter | |||||||||||
2024 | 2023 | ||||||||||
Allowance for credit losses: | |||||||||||
Beginning balance | $ | $ | |||||||||
Current period provision | |||||||||||
Currency exchange effects | ( | ||||||||||
Disposition of EMEA staffing operations | ( | ||||||||||
Write-offs | ( | ||||||||||
Ending balance | $ | $ |
Assets divested | ||||||||
Cash and equivalents | $ | |||||||
Trade accounts receivable, net | ||||||||
Prepaid expenses and other current assets | ||||||||
Property and equipment, net | ||||||||
Operating lease right-of-use assets | ||||||||
Deferred taxes | ||||||||
Other assets | ||||||||
Assets divested | ||||||||
Liabilities divested | ||||||||
Accounts payable and accrued liabilities | ( | |||||||
Operating lease liabilities, current | ( | |||||||
Accrued payroll and related taxes | ( | |||||||
Income and other taxes | ( | |||||||
Operating lease liabilities, noncurrent | ( | |||||||
Accrued retirement benefits | ( | |||||||
Other long-term liabilities | ( | |||||||
Liabilities divested | ( | |||||||
Disposal group, net | $ |
As of First Quarter-End 2024 | ||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In millions of dollars) | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
Foreign currency forward contract, net | ||||||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
Brazil indemnification | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
EMEA staffing indemnification | ( | ( | ||||||||||||||||||||||||
Total liabilities at fair value | $ | ( | $ | $ | $ | ( |
As of Year-End 2023 | ||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
(In millions of dollars) | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
Brazil indemnification | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Foreign currency forward contract, net | ( | ( | ||||||||||||||||||||||||
Total liabilities at fair value | $ | ( | $ | $ | ( | $ | ( |
Severance Costs | Transformation Costs | Total | |||||||||||||||
Professional & Industrial | $ | $ | $ | ||||||||||||||
Outsourcing & Consulting | |||||||||||||||||
Corporate | |||||||||||||||||
Total | $ | $ | $ |
Severance Costs | Lease Termination Costs, Transformation and Other | Total | |||||||||||||||
Professional & Industrial | $ | $ | $ | ||||||||||||||
Science, Engineering & Technology | |||||||||||||||||
Education | |||||||||||||||||
Outsourcing & Consulting | |||||||||||||||||
International | |||||||||||||||||
Corporate | |||||||||||||||||
Total | $ | $ | $ |
Balance as of year-end 2023 | $ | ||||
Accruals | |||||
Reductions for cash payments | ( | ||||
Disposition of EMEA staffing operations | ( | ||||
Accrual adjustments | ( | ||||
Balance as of first quarter-end 2024 | $ | ||||
First Quarter | |||||||||||
2024 | 2023 | ||||||||||
(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) | $ | ( | $ | ( | |||||||
First Quarter | |||||||||||
2024 | 2023 | ||||||||||
Net earnings | $ | $ | |||||||||
Less: earnings allocated to participating securities | ( | ( | |||||||||
Net earnings available to common shareholders | $ | $ | |||||||||
Average shares outstanding (millions): | |||||||||||
Basic | |||||||||||
Dilutive share awards | |||||||||||
Diluted | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ |
Financial Measure Performance Shares | |||||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Nonvested at year-end 2023 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | |||||||||||
Vesting adjustment | ( | ||||||||||
Nonvested at first quarter-end 2024 | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Nonvested at year-end 2023 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Nonvested at first quarter-end 2024 | $ | ||||||||||
First Quarter | |||||||||||
2024 | 2023 | ||||||||||
(In millions of dollars) | |||||||||||
Interest income | $ | $ | |||||||||
Interest expense | ( | ( | |||||||||
Foreign exchange gains (losses) | ( | ||||||||||
Other | ( | ||||||||||
Other income (expense), net | $ | $ |
First Quarter | |||||||||||
2024 | 2023 | ||||||||||
(In millions of dollars) | |||||||||||
Revenue from Services: | |||||||||||
Professional & Industrial | $ | $ | |||||||||
Science, Engineering & Technology | |||||||||||
Education | |||||||||||
Outsourcing & Consulting | |||||||||||
International | |||||||||||
Less: Intersegment revenue | ( | ( | |||||||||
Consolidated Total | $ | $ |
First Quarter | |||||||||||
2024 | 2023 | ||||||||||
(In millions of dollars) | |||||||||||
Business Unit Profit (Loss): | |||||||||||
Professional & Industrial gross profit | $ | $ | |||||||||
Professional & Industrial SG&A expenses excluding depreciation and amortization | ( | ( | |||||||||
Professional & Industrial Profit (Loss) | ( | ||||||||||
Science, Engineering & Technology gross profit | |||||||||||
Science, Engineering & Technology SG&A expenses excluding depreciation and amortization | ( | ( | |||||||||
Science, Engineering & Technology Profit (Loss) | |||||||||||
Education gross profit | |||||||||||
Education SG&A expenses excluding depreciation and amortization | ( | ( | |||||||||
Education Profit (Loss) | |||||||||||
Outsourcing & Consulting gross profit | |||||||||||
Outsourcing & Consulting SG&A expenses excluding depreciation and amortization | ( | ( | |||||||||
Outsourcing & Consulting Profit (Loss) | ( | ( | |||||||||
International gross profit | |||||||||||
International SG&A expenses excluding depreciation and amortization | ( | ||||||||||
International Profit (Loss) | ( | ||||||||||
Corporate | ( | ( | |||||||||
Gain on sale of EMEA staffing operations | |||||||||||
Depreciation and amortization | ( | ( | |||||||||
Consolidated earnings from operations | |||||||||||
Gain on forward contract | |||||||||||
Other income (expense), net | |||||||||||
Earnings before taxes | $ | $ |
First Quarter | |||||||||||
2024 | 2023 | ||||||||||
(In millions of dollars) | |||||||||||
Depreciation and amortization: | |||||||||||
Professional & Industrial | $ | $ | |||||||||
Science, Engineering & Technology | |||||||||||
Education | |||||||||||
Outsourcing & Consulting | |||||||||||
International |
First Quarter | ||||||||||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||||||||
Revenue from services | $ | 1,045.1 | $ | 1,268.3 | (17.6) | % | ||||||||||||||||||||
Gross profit | 205.7 | 254.1 | (19.1) | |||||||||||||||||||||||
SG&A expenses excluding restructuring, depreciation, and amortization | 178.0 | 227.3 | (21.7) | |||||||||||||||||||||||
Restructuring charges | 2.3 | 6.6 | (64.7) | |||||||||||||||||||||||
Total SG&A expenses excluding depreciation and amortization | 180.3 | 233.9 | (22.9) | |||||||||||||||||||||||
Depreciation and amortization | 10.2 | 9.5 | 7.7 | |||||||||||||||||||||||
Total SG&A expenses | 190.5 | 243.4 | (21.7) | |||||||||||||||||||||||
Gain on sale of EMEA staffing operations | (11.6) | — | NM | |||||||||||||||||||||||
Earnings from operations | 26.8 | 10.7 | 150.2 | |||||||||||||||||||||||
Gain on forward contract | 1.2 | — | NM | |||||||||||||||||||||||
Other income (expense), net | 1.8 | 2.0 | (8.8) | |||||||||||||||||||||||
Earnings before taxes | 29.8 | 12.7 | 134.6 | |||||||||||||||||||||||
Income tax expense | 4.0 | 1.8 | 128.0 | |||||||||||||||||||||||
Net earnings | $ | 25.8 | $ | 10.9 | 135.7 | % | ||||||||||||||||||||
Gross profit rate | 19.7 | % | 20.0 | % | (0.3) | pts. | ||||||||||||||||||||
First Quarter | ||||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||
Revenue from Services: | ||||||||||||||||||||
Professional & Industrial | $ | 358.4 | $ | 402.6 | (11.0) | % | ||||||||||||||
Science, Engineering & Technology | 289.3 | 306.4 | (5.6) | |||||||||||||||||
Education | 289.9 | 249.4 | 16.2 | |||||||||||||||||
Outsourcing & Consulting | 108.0 | 114.6 | (5.7) | |||||||||||||||||
International | — | 195.8 | (100.0) | |||||||||||||||||
Less: Intersegment revenue | (0.5) | (0.5) | — | |||||||||||||||||
Consolidated Total | $ | 1,045.1 | $ | 1,268.3 | (17.6) | % |
First Quarter | ||||||||||||||||||||
2024 | 2023 | Change | ||||||||||||||||||
Gross Profit: | ||||||||||||||||||||
Professional & Industrial | $ | 63.9 | $ | 72.2 | (11.7) | % | ||||||||||||||
Science, Engineering & Technology | 64.4 | 71.3 | (9.6) | |||||||||||||||||
Education | 42.1 | 39.3 | 7.1 | |||||||||||||||||
Outsourcing & Consulting | 35.3 | 41.6 | (15.0) | |||||||||||||||||
International | — | 29.7 | (100.0) | |||||||||||||||||
Consolidated Total | $ | 205.7 | $ | 254.1 | (19.1) | % | ||||||||||||||
Gross Profit Rate: | ||||||||||||||||||||
Professional & Industrial | 17.8 | % | 18.0 | % | (0.2) | pts. | ||||||||||||||
Science, Engineering & Technology | 22.3 | 23.3 | (1.0) | |||||||||||||||||
Education | 14.5 | 15.8 | (1.3) | |||||||||||||||||
Outsourcing & Consulting | 32.7 | 36.3 | (3.6) | |||||||||||||||||
International | — | 15.2 | (15.2) | |||||||||||||||||
Consolidated Total | 19.7 | % | 20.0 | % | (0.3) | pts. | ||||||||||||||
First Quarter | ||||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||
SG&A Expenses (excluding depreciation and amortization): | ||||||||||||||||||||
Professional & Industrial | $ | 58.0 | $ | 73.4 | (20.9) | % | ||||||||||||||
Science, Engineering & Technology | 46.2 | 52.8 | (12.5) | |||||||||||||||||
Education | 24.0 | 23.9 | 0.3 | |||||||||||||||||
Outsourcing & Consulting | 37.1 | 41.7 | (11.1) | |||||||||||||||||
International | — | 30.4 | (100.0) | |||||||||||||||||
Corporate expenses | 15.0 | 11.7 | 28.4 | |||||||||||||||||
Consolidated Total | $ | 180.3 | $ | 233.9 | (22.9) | % | ||||||||||||||
First Quarter | ||||||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||||||
Business Unit Profit (Loss) | ||||||||||||||||||||
Professional & Industrial | $ | 5.9 | $ | (1.2) | NM | % | ||||||||||||||
Science, Engineering & Technology | 18.2 | 18.5 | (1.3) | |||||||||||||||||
Education | 18.1 | 15.4 | 17.7 | |||||||||||||||||
Outsourcing & Consulting | (1.8) | (0.1) | NM | |||||||||||||||||
International | — | (0.7) | 100.0 | |||||||||||||||||
Business Unit Profit (Loss) | 40.4 | 31.9 | 26.8 | |||||||||||||||||
Corporate | (15.0) | (11.7) | (28.3) | |||||||||||||||||
Gain on sale of EMEA staffing operations | 11.6 | — | NM | |||||||||||||||||
Depreciation and amortization | (10.2) | (9.5) | 7.7 | |||||||||||||||||
Consolidated Total Earnings from Operations | $ | 26.8 | $ | 10.7 | 150.2 | % |
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) | ||||||||||||||||||||||
January 1, 2024 through February 4, 2024 | 1,523 | $ | 20.29 | — | $ | — | ||||||||||||||||||||
February 5, 2024 through March 3, 2024 | 71,010 | 21.90 | — | $ | — | |||||||||||||||||||||
March 4, 2024 through March 31, 2024 | 12,921 | 24.48 | — | $ | — | |||||||||||||||||||||
Total | 85,454 | $ | 22.26 | — |
Exhibit No. | Description | |||||||
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: May 9, 2024 | |||||
/s/ Olivier G. Thirot | |||||
Olivier G. Thirot | |||||
Executive Vice President and | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
Date: May 9, 2024 | |||||
/s/ Laura S. Lockhart | |||||
Laura S. Lockhart | |||||
Vice President, Corporate Controller | |||||
and Chief Accounting Officer | |||||
(Principal Accounting Officer) |
Date: May 9, 2024 | ||||||||||||||
/s/ Peter W. Quigley | ||||||||||||||
Peter W. Quigley | ||||||||||||||
President and Chief Executive Officer |
Date: May 9, 2024 | ||||||||||||||
/s/ Olivier G. Thirot | ||||||||||||||
Olivier G. Thirot | ||||||||||||||
Executive Vice President and Chief Financial Officer |
Date: May 9, 2024 | ||||||||||||||
/s/ Peter W. Quigley | ||||||||||||||
Peter W. Quigley | ||||||||||||||
President and Chief Executive Officer |
Date: May 9, 2024 | ||||||||||||||
/s/ Olivier G. Thirot | ||||||||||||||
Olivier G. Thirot | ||||||||||||||
Executive Vice President and Chief Financial Officer |
Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
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 first quarter-end 2024 and year-end 2023, the gross accrual for litigation costs amounted to $4.4 million and $6.4 million, respectively, of which $1.5 million was held for sale at year-end 2023. The Company maintains insurance coverage which may cover certain losses. When losses exceed the applicable policy deductible and realization of recovery of the loss from existing insurance policies is deemed probable, the Company records receivables from the insurance company for the excess amount, which are included in prepaid expenses and other current assets and other assets in the consolidated balance sheet. At first quarter-end 2024 and year-end 2023, the related insurance receivables amounted to $0.2 million. The Company estimates the aggregate range of reasonably possible losses, in excess of amounts accrued, is $0.1 million to $7.8 million as of first quarter-end 2024. 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.
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New Accounting Pronouncements |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Not Yet Adopted In October 2023, the FASB issued Accounting Standards Update ("ASU") 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative, which modifies several disclosure and presentation requirements in the FASB accounting standard codification to align them with the SEC regulations. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption permitted, by June 30, 2027. For any amendments in which the SEC has not yet removed the applicable requirement from their regulations by June 30, 2027, the pending content of the related amendment in the FASB codification will not be effective. We do not expect this update to have a material impact to our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires all public companies to provide more enhanced disclosures for significant segment expenses. This ASU is effective for annual reporting periods beginning after December 15, 2024, 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 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments to enhance income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This ASU is effective for annual reporting periods beginning after December 15, 2024, 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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Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Income Statement [Abstract] | ||
Revenue from services | $ 1,045.1 | $ 1,268.3 |
Cost of services | 839.4 | 1,014.2 |
Gross profit | 205.7 | 254.1 |
Selling, general and administrative expenses | 190.5 | 243.4 |
Gain on sale of EMEA staffing operations | (11.6) | 0.0 |
Earnings from operations | 26.8 | 10.7 |
Gain on forward contract | 1.2 | 0.0 |
Other income (expense), net | 1.8 | 2.0 |
Earnings before taxes | 29.8 | 12.7 |
Income tax expense | 4.0 | 1.8 |
Net earnings | $ 25.8 | $ 10.9 |
Basic earnings per share (in dollars per share) | $ 0.71 | $ 0.29 |
Diluted earnings per share (in dollars per share) | $ 0.70 | $ 0.29 |
Average shares outstanding (millions): | ||
Basic (in shares) | 35.4 | 37.1 |
Diluted (in shares) | 35.8 | 37.4 |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 25.8 | $ 10.9 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments, net of tax benefit of $0.0, and tax expense of $0.0, respectively | (0.5) | 2.3 |
Less: Reclassification adjustments included in net earnings | (0.6) | 0.0 |
Foreign currency translation adjustments | (1.1) | 2.3 |
Pension liability adjustments, net of tax benefit of $0.4 | 0.0 | 0.0 |
Less: Reclassification adjustments included in net earnings | 0.4 | 0.0 |
Pension liability adjustments | 0.4 | 0.0 |
Other comprehensive income (loss) | (0.7) | 2.3 |
Comprehensive income (loss) | $ 25.1 | $ 13.2 |
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax expense (benefit) | $ 0.0 | $ 0.0 |
Pension liability adjustments, tax expense (benefit) | $ (0.4) | $ 0.0 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Allowance for trade accounts receivables | $ 8.8 | $ 8.4 |
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) | 35.2 | 35.2 |
Treasury stock, common stock (in shares) | 3.0 | 3.2 |
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) | 3.3 | 3.3 |
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions |
Total |
Capital Stock
Capital Stock, Class A common stock
|
Capital Stock
Capital Stock, Class B common stock
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Treasury Stock
Treasury Stock, Class A common stock
|
Treasury Stock
Treasury Stock, Class B common stock
|
Paid-in Capital |
Earnings Invested in the Business |
Accumulated Other Comprehensive Income (Loss) |
---|---|---|---|---|---|---|---|---|
Beginning balance at Jan. 01, 2023 | $ 35.1 | $ 3.4 | $ (19.5) | $ (0.6) | $ 28.0 | $ 1,216.3 | $ (8.5) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Conversions from Class B and to Class A | 0.1 | (0.1) | ||||||
Net issuance of stock awards and other | 3.1 | 0.0 | (1.6) | |||||
Purchase of treasury stock | (18.3) | |||||||
Net earnings | $ 10.9 | 10.9 | ||||||
Dividends | (2.8) | |||||||
Other comprehensive income (loss), net of tax | 2.3 | 2.3 | ||||||
Ending balance at Apr. 02, 2023 | 1,247.8 | 35.2 | 3.3 | (34.7) | (0.6) | 26.4 | 1,224.4 | (6.2) |
Beginning balance at Dec. 31, 2023 | 1,253.7 | 35.2 | 3.3 | (56.7) | (0.6) | 30.6 | 1,241.7 | 0.2 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Conversions from Class B and to Class A | 0.0 | 0.0 | ||||||
Net issuance of stock awards and other | 4.2 | 0.0 | (3.5) | |||||
Purchase of treasury stock | 0.0 | |||||||
Net earnings | 25.8 | 25.8 | ||||||
Dividends | (2.7) | |||||||
Other comprehensive income (loss), net of tax | (0.7) | (0.7) | ||||||
Ending balance at Mar. 31, 2024 | $ 1,276.8 | $ 35.2 | $ 3.3 | $ (52.5) | $ (0.6) | $ 27.1 | $ 1,264.8 | $ (0.5) |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2024 | |
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 31, 2023, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 20, 2024 (the 2023 consolidated financial statements). There were no changes in accounting policies as disclosed in the Form 10-K. The Company’s first fiscal quarter ended on March 31, 2024 and April 2, 2023, each of which contained 13 weeks. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year's presentation. Specifically, as discussed in the Segment Disclosures footnote, the Company has made a change to its reportable segments during the first quarter of 2024. We have also reclassified the presentation of our retirement plan assets, which represents our investment in life insurance contracts, and intangibles, net from the other assets line item to separate line items within our consolidated balance sheet.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Revenue Disaggregated by Service Type In 2024, Kelly has four operating segments: Professional & Industrial (“P&I”), Science, Engineering & Technology (“SET”), Education, and Outsourcing & Consulting Group ("Outsourcing & Consulting," "OCG"). Prior to 2024, the Company also had an International operating segment (see Segment Disclosures footnote). The 2023 P&I segment information has been recast to conform to the new structure. 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 of dollars):
Revenue Disaggregated by Geography Our operations are subject to different economic and regulatory environments depending on geographic location. Our P&I and Education segments operate in the Americas region, our SET segment operates in the Americas and Europe regions, and OCG operates in the Americas, Europe and Asia-Pacific regions. In 2023, our International segment included our staffing operations in Europe as well as Mexico, which is included in the Americas region. After the sale of the Company's EMEA staffing operations in January 2024 (see Disposition footnote), the Mexico operations, which were previously in our International segment, are now included in our P&I segment. The below table presents our revenues disaggregated by geography (in millions of dollars):
The below table presents revenues from our SET, OCG and former International segment, which previously included our Mexico operations, disaggregated by geographic region, (in millions of dollars):
Deferred Costs Deferred fulfillment costs, which are included in prepaid expenses and other current assets in the consolidated balance sheet, were $2.3 million as of first quarter-end 2024 and $3.4 million as of year-end 2023. Amortization expense for the deferred costs in the first quarter of 2024 and 2023 was $2.4 million.
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Credit Losses |
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Credit Losses | Credit Losses The rollforward of our allowance for credit losses related to trade accounts receivable, which is recorded in trade accounts receivable, less allowance in the consolidated balance sheet, is as follows (in millions of dollars):
Write-offs are presented net of recoveries, which were not material for first quarter-end 2024 or 2023. As of first quarter-end 2024, the Company has a receivable of $26.9 million related to the sale of our EMEA staffing operations (see Disposition footnote). The Company has determined that no credit loss provision is required on this receivable as it is considered collectible. No other allowances related to other receivables were material as of first quarter-end 2024 or 2023.
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Disposition |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposition | Disposition On January 2, 2024, the Company completed the sale of its EMEA staffing operations ("disposal group"), which was included in the Company's International operating segment, to Gi Group Holdings S.P.A. ("Gi"). Upon closing, the Company received cash proceeds of $110.6 million, or $77.1 million net of cash disposed, which is included in investing activities in the consolidated statements of cash flows. The total gain on the transaction as of the first quarter-end 2024 is $11.6 million, which is recorded in the gain on sale of EMEA staffing operations in the consolidated statements of earnings. The Company expects to receive additional cash proceeds to reflect the cash-free, debt-free transaction basis, as well as working capital and other adjustments. The Company does not expect to receive any proceeds from the contingent consideration opportunity associated with the transaction. Included in the gain as of first-quarter end 2024, the Company has recorded a euro-denominated receivable from Gi of $26.9 million representing the adjustments that are determinable and is expected to be received in the third quarter of 2024. The receivable is included in prepaid expenses and other current assets in the consolidated balance sheet. The disposal group did not meet the requirements to be classified as discontinued operations as the sale did not have a material effect on the Company's operations and did not represent a strategic shift in the Company's strategy. Our consolidated earnings from operations for the first quarter of 2023 included a loss of $1.3 million from the EMEA staffing operations. The major classes of divested assets and liabilities were as follows (in millions of dollars):
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Fair Value Measurements |
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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 first quarter-end 2024 and year-end 2023 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 Money market funds represent investments in money market funds that hold government securities, of which $7.6 million as of first quarter-end 2024 and $8.0 million as of year-end 2023 are restricted as to use and are included in other assets in the consolidated balance sheet. The money market funds that are restricted as to use account for the majority of our restricted cash balance and represents cash balances that are required to be maintained to fund disability claims in California. The remaining money market funds as of first quarter-end 2024 and year-end 2023 are included in cash and equivalents in the consolidated balance sheet. The valuations of money market funds are based on quoted market prices of those accounts as of the respective period end. Forward contracts On February 8, 2024, the Company entered into a foreign currency forward contract with a notional amount of €17.0 million to manage the foreign currency risk associated with the additional expected proceeds in the third quarter of 2024 related to the sale of our EMEA staffing operations (see Disposition footnote). The expected proceeds are recorded as a euro-denominated receivable which is remeasured each period. The forward contract was designated as a fair value hedge, with the mark-to-market changes of the forward contract offsetting the mark-to-market changes of the receivable in the gain on sale of EMEA staffing operations in the consolidated statements of earnings. The contract was valued using observable inputs, such as foreign currency exchange rates, and is considered a level 2 liability. The Company recorded an unrealized gain of $0.1 million for the first quarter 2024 with a net receivable associated with the forward contract of $0.1 million recorded in prepaid expenses and other current assets on the consolidated balance sheet. On November 2, 2023, the Company entered into a foreign currency forward contract with a notional amount of €90.0 million to manage the foreign currency risk associated with the sale of our EMEA staffing operations, which was completed on January 2, 2024. This contract was not designated as a hedging instrument; therefore, it was marked-to-market and the changes in fair value were recognized in earnings. The Company's foreign currency forward contract was valued using observable inputs, such as foreign currency exchange rates, and is considered a level 2 liability. The Company recorded an unrealized loss of $3.6 million for the year ended 2023 and had a net liability associated with the forward contract of $3.6 million as of year-end 2023. The Company settled the forward contract on January 5, 2024 for $2.4 million of cash. Accordingly, the Company recognized a gain of $1.2 million in the first quarter of 2024 in gain on forward contract on the consolidated statements of earnings, which partially offsets the $3.6 million loss recognized in 2023, for a total loss of $2.4 million on the contract. Indemnification liabilities During the first quarter of 2024, the Company recorded an indemnification liability for $2.1 million relating to the sale of our EMEA staffing operations in January 2024. The liability is included in other long-term liabilities in the consolidated balance sheet and the expense is included in the gain on sale of EMEA staffing operations in the consolidated statements of earnings. As part of the sale, the Company agreed to indemnify the buyer for losses and costs incurred in connection with certain events or occurrences for an indefinite term. The Company's maximum exposure under these indemnifications is not estimable at this time due to uncertainties to potential outcomes and the facts and circumstances involved in the agreement. Management believes the risk of material exposure is remote. The valuation of the indemnification liability was established using a discounted cash flow methodology based on probability weighted-average cash flows discounted by weighted-average cost of capital. The valuation, which represents the fair value, is considered a level 3 liability, and is measured on a recurring basis. As of first quarter-end 2024, the Company had an indemnification liability totaling $2.9 million with $0.1 million in accounts payable and accrued liabilities and $2.8 million in other long-term liabilities, and $3.0 million at year-end 2023, with $0.1 million in accounts payable and accrued liabilities and $2.9 million in other long-term liabilities in the consolidated balance sheet related to the 2020 sale of the Brazil operations. As part of the sale, the Company 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. The valuation of the indemnification liability was established using a discounted cash flow methodology based on probability weighted-average cash flows discounted by weighted-average cost of capital. The valuation, which represents the fair value, is considered a level 3 liability, and is being measured on a recurring basis. During the first quarter of 2024 and 2023 the Company recognized a decrease of $0.1 million and an increase of $0.1 million, respectively, to the indemnification liability related to exchange rate fluctuations in other income (expense), net in the consolidated statements of earnings. Earnout liability The Company had previously recorded an earnout liability relating to the 2020 acquisition of Greenwood/Asher. The initial valuation of the earnout liability was established using a Black Scholes model and represented the fair value and was considered a level 3 liability. During the first quarter of 2023, the Company paid the remaining earnout liability totaling $3.3 million, representing the year two portion of the earnout. In the consolidated statements of cash flows, $1.4 million of the payment is reflected as a financing activity representing the initial fair value of the earnout, with the remainder flowing through operating activities. Equity Investment Without Readily Determinable Fair Value On March 1, 2022, the Company sold the majority of its investment in PersolKelly Pte. Ltd. (the "JV"). Prior to February 2022, the Company had a 49% ownership interest in the JV, a staffing services business currently operating in ten geographies in the Asia-Pacific region. The Company holds a 2.5% interest in the JV, which 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 investment totaled $6.4 million as of first quarter-end 2024, representing total cost plus observable price changes to date.
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Restructuring and Transformation Activities |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Transformation Activities | Restructuring and Transformation Activities 2024 Actions In the first quarter of 2024, the Company incurred $2.3 million of restructuring charges and transformation fees as a continuation of the actions that were announced in the second quarter of 2023 as part of the comprehensive transformation initiative. The transformation activities include $1.1 million of severance and $1.2 million of costs to execute the transformation through the use of an external consultant. The severance and transformation costs are recorded in selling, general and administrative ("SG&A") expenses in the consolidated statements of earnings. The restructuring and transformation costs included in SG&A are detailed below for the first quarter of 2024 (in millions of dollars):
2023 Actions In the first quarter of 2023, the Company undertook restructuring actions to further our cost management efforts in response to the current demand levels and reflect a repositioning of our P&I staffing business to better capitalize on opportunities in local markets. Restructuring costs incurred in the first quarter of 2023 totaled $6.6 million and were recorded entirely in SG&A expenses in the consolidated statements of earnings. The restructuring and transformation costs included in SG&A are detailed below for the first quarter of 2023 (in millions of dollars):
Accrual Summary 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 $4.7 million as of first quarter-end 2024 primarily represents the costs to execute the transformation initiatives and severance costs, and the majority is expected to be paid by the end of 2024. No material adjustments are expected to be recorded.
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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 first quarter 2024 and 2023 are included in the table below. Amounts in parentheses indicate debits.
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Earnings Per Share |
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Earnings Per Share | Earnings Per Share The reconciliation of basic and diluted earnings per share on common stock for the first quarter 2024 and 2023 follows (in millions of dollars except per share data):
Potentially dilutive share awards are related to deferred common stock related to the non-employee directors deferred compensation plan and performance shares for the first quarter of 2024 and 2023 (see Stock-Based Compensation footnote for a description of performance shares). Dividends paid per share for Class A and Class B common stock were $0.075 for the first quarter of 2024 and 2023. In November 2022, the Company's board of directors authorized a $50.0 million Class A share repurchase program, which was completed in August 2023. During the first quarter of 2023, the Company repurchased 1,099,728 shares for $18.3 million. A total of 2,971,471 shares were repurchased under the share repurchase program at an average price of $16.83 per share.
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation For the first quarter of 2024, the Company recognized stock compensation expense of $2.8 million and a related tax benefit of $0.7 million. For the first quarter of 2023, the Company recognized stock compensation expense of $3.1 million and a related tax benefit of $0.3 million. Performance Shares 2024 Grant During the first quarter of 2024, the Company granted performance share awards associated with the Company’s Class A common stock to certain senior officers. The payment of performance share awards is contingent upon the achievement of specific revenue growth and earnings before interest, taxes, depreciation and amortization ("EBITDA") margin performance goals ("financial measure performance share awards") over a stated period of time. The maximum number of performance shares that may be earned is 200% of the target shares originally granted. These awards have three one-year performance periods: 2024, 2025 and 2026, with the payout for each performance period based on separate financial measure goals that are set in February of each of the three performance periods. Earned shares during each performance period will cliff vest in February 2027 after approval of the financial results by the Compensation Committee, if not forfeited by the recipient. No dividends are paid on these performance shares. 2021 Grant In December 2021, the Compensation Committee approved a retention-based grant of 308,000 financial measure performance awards to certain senior officers which may be earned upon achievement of three financial goals over a performance period beginning in fiscal 2022 through the third quarter of 2024, with each goal having a unique projected achievement date. Each goal can be earned independent of the other two goals. Any shares earned during the performance period will cliff-vest three years after achievement of the respective performance goals and approval of the financial results by the Compensation Committee. On May 7, 2024, the Compensation Committee confirmed the actual performance achievement for the final financial goal related to the 2021 retention-based grant, which was not achieved before the end of the performance period and resulted in no payout. A summary of the status of all nonvested performance shares at target as of first quarter-end 2024 and changes during this period is presented as follows below (in thousands of shares except per share data). The vesting adjustment in the table below represents the 2021 financial measure performance shares that did not vest because actual achievement was below the threshold level and resulted in no payout.
Restricted Stock A summary of the status of nonvested restricted stock as of first quarter-end 2024 and changes during this period is presented as follows below (in thousands of shares except per share data).
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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 first quarter 2024 and 2023 are the following:
Included in Other for the first quarter of 2023 is a gain of $2.0 million for the receipt of earnout proceeds in connection with an investment that was sold in 2021.
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Income Taxes |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $4.0 million for the first quarter of 2024 and $1.8 million for the first quarter of 2023. The quarterly variance primarily relates to changes in pretax income. 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 and the tax effects of stock compensation. The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.
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Segment Disclosures |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Disclosures | Segment Disclosures The Company’s operating segments, which also represent its reporting segments, are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision-maker ("CODM", the Company’s CEO) to determine resource allocation and assess performance. The Company’s four reportable segments in 2024, (1) Professional & Industrial, (2) Science, Engineering & Technology, (3) Education, and (4) Outsourcing & Consulting, reflect the specialty services the Company provides to customers and represent how the business is organized internally. Prior to 2024, the Company also had an International operating segment. Beginning in the first quarter of 2024, the Company's organizational structure no longer includes the International segment following the sale of the EMEA staffing operations in January 2024. Our Mexico operations, which were previously in our International segment, are now included in the Professional & Industrial segment. Professional & Industrial segment information for the prior year has been recast to conform to the new structure. Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services. In addition to the change in our segment structure in the first quarter of 2024, we reassessed the allocation of corporate expenses to the operating segments and allocated additional costs which are attributable to the business from corporate. In the first quarter of 2024, the Company changed the primary segment profitability measure from earnings from operations to a business unit profit measure that excludes depreciation and amortization. This change will provide management greater visibility into the financial performance of the segments and how they contribute to the Company's overall performance. Prior periods have been recast to reflect the current period allocation method and new segment profitability measurement. The update had no impact on the consolidated financial information. The following tables present information about the reported revenue from services and gross profit of the Company by reportable segment, along with a reconciliation to earnings before taxes, for the first quarter of 2024 and 2023. Asset information by reportable segment is not presented, since the Company does not produce such information internally nor does it use such information to manage its business.
Depreciation and amortization expense is included in SG&A expenses in our consolidated statements of earnings. Depreciation and amortization expense amounts below include amortization of implementation costs for hosted software, which are excluded in the presentation of depreciation and amortization in our consolidated statements of cash flows. The depreciation and amortization amounts by segment are as follows:
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Subsequent Event |
3 Months Ended |
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Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On May 2, 2024, the Company, MRP Merger Sub, Inc. (“Merger Sub”), a newly-formed, wholly owned subsidiary of the Company, MRP Topco (“Topco”), the indirect parent company of Motion Recruitment Partners, LLC (“Motion”), and Littlejohn Fund V, L.P. (“Littlejohn”), in its capacity as the securityholders’ representative, entered into an Agreement and Plan of Merger (the “Merger Agreement”) whereby the Company would indirectly acquire 100% of the equity interests in Motion by way of a merger of Merger Sub with and into Topco, with Topco surviving the merger (the “Merger”). The Company will pay cash at close of $425.0 million, subject to adjustments for working capital and to reflect the cash-free, debt-free transaction basis. Additional cash consideration of up to $60.0 million may be due under the terms of an earnout provision. The earnout payment would be due in the second quarter of 2025 and is based on a multiple of gross profit in excess of an agreed-upon amount during the earnout period. The transaction is expected to close in the second quarter of 2024, subject to regulatory approvals and other customary closing conditions.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2024 |
Apr. 02, 2023 |
|
Pay vs Performance Disclosure | ||
Net earnings | $ 25.8 | $ 10.9 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 31, 2023, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 20, 2024 (the 2023 consolidated financial statements). There were no changes in accounting policies as disclosed in the Form 10-K. The Company’s first fiscal quarter ended on March 31, 2024 and April 2, 2023, each of which contained 13 weeks.
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Reclassifications | Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year's presentation. Specifically, as discussed in the Segment Disclosures footnote, the Company has made a change to its reportable segments during the first quarter of 2024. We have also reclassified the presentation of our retirement plan assets, which represents our investment in life insurance contracts, and intangibles, net from the other assets line item to separate line items within our consolidated balance sheet. |
New Accounting Pronouncements | New Accounting Pronouncements Not Yet Adopted In October 2023, the FASB issued Accounting Standards Update ("ASU") 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative, which modifies several disclosure and presentation requirements in the FASB accounting standard codification to align them with the SEC regulations. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption permitted, by June 30, 2027. For any amendments in which the SEC has not yet removed the applicable requirement from their regulations by June 30, 2027, the pending content of the related amendment in the FASB codification will not be effective. We do not expect this update to have a material impact to our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires all public companies to provide more enhanced disclosures for significant segment expenses. This ASU is effective for annual reporting periods beginning after December 15, 2024, 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 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments to enhance income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This ASU is effective for annual reporting periods beginning after December 15, 2024, 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) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents our segment revenues disaggregated by service type (in millions of dollars):
The below table presents our revenues disaggregated by geography (in millions of dollars):
The below table presents revenues from our SET, OCG and former International segment, which previously included our Mexico operations, disaggregated by geographic region, (in millions of dollars):
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Credit Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | The rollforward of our allowance for credit losses related to trade accounts receivable, which is recorded in trade accounts receivable, less allowance in the consolidated balance sheet, is as follows (in millions of dollars):
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Disposition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | The major classes of divested assets and liabilities were as follows (in millions of dollars):
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Assets Measured on Recurring Basis | The following tables present assets and liabilities measured at fair value on a recurring basis as of first quarter-end 2024 and year-end 2023 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.
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Restructuring and Transformation Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The restructuring and transformation costs included in SG&A are detailed below for the first quarter of 2024 (in millions of dollars):
The restructuring and transformation costs included in SG&A are detailed below for the first quarter of 2023 (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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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 first quarter 2024 and 2023 are included in the table below. Amounts in parentheses indicate debits.
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share | The reconciliation of basic and diluted earnings per share on common stock for the first quarter 2024 and 2023 follows (in millions of dollars except per share data):
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Performance Shares | A summary of the status of all nonvested performance shares at target as of first quarter-end 2024 and changes during this period is presented as follows below (in thousands of shares except per share data). The vesting adjustment in the table below represents the 2021 financial measure performance shares that did not vest because actual achievement was below the threshold level and resulted in no payout.
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Schedule of Nonvested Restricted Stock | A summary of the status of nonvested restricted stock as of first quarter-end 2024 and changes during this period is presented as follows below (in thousands of shares except per share data).
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Other Income (Expense), Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Income (Expense), Net | Included in other income (expense), net for the first quarter 2024 and 2023 are the following:
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Segment Disclosures (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Revenue from Services | The following tables present information about the reported revenue from services and gross profit of the Company by reportable segment, along with a reconciliation to earnings before taxes, for the first quarter of 2024 and 2023. Asset information by reportable segment is not presented, since the Company does not produce such information internally nor does it use such information to manage its business.
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Segment Business Unit Profit (Loss) |
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Depreciation and Amortization by Segment | Depreciation and amortization expense is included in SG&A expenses in our consolidated statements of earnings. Depreciation and amortization expense amounts below include amortization of implementation costs for hosted software, which are excluded in the presentation of depreciation and amortization in our consolidated statements of cash flows. The depreciation and amortization amounts by segment are as follows:
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Revenue - Narrative (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024
USD ($)
segment
|
Apr. 02, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
Revenue from Contract with Customer [Line Items] | |||
Number of operating segments | segment | 4 | ||
Deferred Fulfillment Costs | |||
Revenue from Contract with Customer [Line Items] | |||
Capitalized contract cost, net | $ 2.3 | $ 3.4 | |
Capitalized contract cost, amortization | $ 2.4 | $ 2.4 |
Revenue - Revenue by Country (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,045.1 | $ 1,268.3 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,022.8 | 1,047.7 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 933.6 | 959.2 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 45.4 | 44.9 |
Puerto Rico | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 24.9 | 26.9 |
Mexico | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 18.9 | 16.7 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10.8 | 209.7 |
Switzerland | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1.1 | 52.9 |
France | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.0 | 47.8 |
Portugal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.0 | 44.4 |
Italy | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.0 | 16.9 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9.7 | 47.7 |
Total Asia-Pacific Region | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 11.5 | $ 10.9 |
Credit Losses - Allowance for Credit Losses Related to Trade Accounts Receivable (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Allowance for credit losses: | ||
Beginning balance | $ 8.0 | $ 7.7 |
Current period provision | 0.4 | 0.8 |
Currency exchange effects | (0.1) | 0.1 |
Disposition of EMEA staffing operations | (2.4) | 0.0 |
Write-offs | 0.0 | (0.8) |
Ending balance | $ 5.9 | $ 7.8 |
Credit Losses - Narrative (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Credit Loss [Abstract] | |
Other receivables | $ 26.9 |
Disposition - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jan. 02, 2024 |
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of EMEA staffing operations, net of cash disposed | $ 77.1 | $ 0.0 | |
Gain on sale of EMEA staffing operations | 11.6 | 0.0 | |
Other receivables | 26.9 | ||
Disposal Group, Not Discontinued Operations | EMEA Staffing Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from divestiture of business | $ 110.6 | ||
Proceeds from sale of EMEA staffing operations, net of cash disposed | $ 77.1 | ||
Gain on sale of EMEA staffing operations | 11.6 | ||
Other receivables | $ 26.9 | ||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 1.3 |
Disposition - Divested Assets and Liabilities (Details) - EMEA Staffing Operations - Disposal Group, Not Discontinued Operations $ in Millions |
Jan. 02, 2024
USD ($)
|
---|---|
Assets divested | |
Cash and equivalents | $ 33.5 |
Trade accounts receivable, net | 202.8 |
Prepaid expenses and other current assets | 29.0 |
Property and equipment, net | 4.2 |
Operating lease right-of-use assets | 14.2 |
Deferred taxes | 4.1 |
Other assets | 5.4 |
Assets divested | 293.2 |
Liabilities divested | |
Accounts payable and accrued liabilities | (24.5) |
Operating lease liabilities, current | 5.7 |
Accrued payroll and related taxes | (91.6) |
Income and other taxes | (32.9) |
Operating lease liabilities, noncurrent | 8.9 |
Accrued retirement benefits | 1.7 |
Other long-term liabilities | 4.6 |
Liabilities divested | (169.9) |
Disposal group, net | $ 123.3 |
Restructuring and Transformation Activities - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
Dec. 31, 2023 |
|
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ 2.3 | $ 6.6 | |
Severance costs | 1.1 | 4.6 | |
Other restructuring costs | 1.2 | $ 2.0 | |
Restructuring accrual | $ 4.7 | $ 15.1 |
Restructuring and Transformation Activities - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | $ 1.1 | $ 4.6 |
Other Restructuring Costs | 1.2 | 2.0 |
Restructuring charges | 2.3 | 6.6 |
Professional & Industrial | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | 0.1 | 2.7 |
Other Restructuring Costs | 0.0 | 0.3 |
Restructuring charges | 0.1 | 3.0 |
Outsourcing & Consulting | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | 0.6 | 0.6 |
Other Restructuring Costs | 0.0 | 0.0 |
Restructuring charges | 0.6 | 0.6 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | 0.4 | 0.2 |
Other Restructuring Costs | 1.2 | 1.6 |
Restructuring charges | $ 1.6 | $ 1.8 |
Restructuring and Transformation Activities - Restructuring Reserve (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 15.1 | |
Restructuring charges | 2.3 | $ 6.6 |
Reductions for cash payments | (11.0) | |
Disposition of EMEA staffing operations | (1.5) | |
Accrual adjustments | (0.2) | |
Ending balance | $ 4.7 |
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Earnings Per Share [Abstract] | ||
Net earnings | $ 25.8 | $ 10.9 |
Less: earnings allocated to participating securities, basic | (0.6) | (0.2) |
Less: earnings allocated to participating securities, diluted | (0.6) | (0.2) |
Net earnings (loss) available to common shareholders, basic | 25.2 | 10.7 |
Net earnings (loss) available to common shareholders, diluted | $ 25.2 | $ 10.7 |
Average shares outstanding (millions): | ||
Basic (in shares) | 35.4 | 37.1 |
Dilutive share awards (in shares) | 0.4 | 0.3 |
Diluted (in shares) | 35.8 | 37.4 |
Basic earnings (loss) per share on common stock (in dollars per share) | $ 0.71 | $ 0.29 |
Diluted earnings (loss) per share on common stock (in dollars per share) | $ 0.70 | $ 0.29 |
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
Aug. 24, 2023 |
Nov. 09, 2022 |
|
Dividends Payable [Line Items] | ||||
Buyback of common shares | $ 0.0 | $ 18.3 | ||
Class A Common Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends per share (in dollars per share) | $ 0.075 | $ 0.075 | ||
Stock repurchase program, authorized amount | $ 50.0 | |||
Shares repurchased (in shares) | 1,099,728 | 2,971,471 | ||
Buyback of common shares | $ 18.3 | |||
Shares acquired, average cost per share (in dollars per share) | $ 16.83 | |||
Class B Common Stock | ||||
Dividends Payable [Line Items] | ||||
Dividends per share (in dollars per share) | $ 0.075 | $ 0.075 |
Stock-Based Compensation - Schedule of Nonvested Performance Shares (Details) - Financial Measure Performance Shares shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Shares | |
Nonvested, beginning balance (in shares) | shares | 674 |
Granted (in shares) | shares | 170 |
Vested (in shares) | shares | (136) |
Forfeited (in shares) | shares | 0 |
Vesting adjustment (in shares) | shares | (28) |
Nonvested, ending balance (in shares) | shares | 680 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 17.49 |
Granted (in dollars per share) | $ / shares | 19.96 |
Vested (in dollars per share) | $ / shares | 18.88 |
Forfeited (in dollars per share) | $ / shares | 0 |
Vesting adjustment (in dollars per share) | $ / shares | 15.76 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 18.41 |
Stock-Based Compensation - Schedule of Nonvested Restricted Stock (Details) - Restricted Stock shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Shares | |
Nonvested, beginning balance (in shares) | shares | 784 |
Granted (in shares) | shares | 356 |
Vested (in shares) | shares | (197) |
Forfeited (in shares) | shares | (32) |
Nonvested, ending balance (in shares) | shares | 911 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 18.52 |
Granted (in dollars per share) | $ / shares | 20.81 |
Vested (in dollars per share) | $ / shares | 18.63 |
Forfeited (in dollars per share) | $ / shares | 18.63 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 19.39 |
Other Income (Expense), Net - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Other Income and Expenses [Abstract] | ||
Interest income | $ 2.8 | $ 1.4 |
Interest expense | (0.5) | (0.8) |
Foreign exchange gains (losses) | 0.0 | (0.7) |
Other expense | (0.5) | |
Other income | 2.1 | |
Other income (expense), net | $ 1.8 | $ 2.0 |
Other Income (Expense), Net - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Other Income (Expense) [Line Items] | ||
Proceeds from equity securities | $ 0.0 | $ 2.0 |
Business Talent Group, LLC | ||
Other Income (Expense) [Line Items] | ||
Proceeds from equity securities | $ 2.0 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 4.0 | $ 1.8 |
Contingencies - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Loss Contingencies [Line Items] | ||
Accrual for litigation costs | $ 4.4 | $ 6.4 |
Loss contingency, receivable | 0.2 | 0.2 |
Disposal Group, Held-for-Sale, Not Discontinued Operations | EMEA Staffing Operations | ||
Loss Contingencies [Line Items] | ||
Disposal group, including discontinued operations, loss contingency accrual | $ 1.5 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, portion not accrued | 0.1 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, portion not accrued | $ 7.8 |
Segment Disclosures - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Disclosures - Segment Revenue From Service (Details) - Service - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Revenue from Services | ||
Segment revenue from services | $ 1,045.1 | $ 1,268.3 |
Less: Intersegment revenue | ||
Revenue from Services | ||
Segment revenue from services | (0.5) | (0.5) |
Professional & Industrial | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | 358.4 | 402.6 |
Science, Engineering & Technology | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | 289.3 | 306.4 |
Education | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | 289.9 | 249.4 |
Outsourcing & Consulting | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | 108.0 | 114.6 |
International | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | $ 0.0 | $ 195.8 |
Segment Disclosures - Depreciation and Amortization Expense Included in SG&A Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Apr. 02, 2023 |
|
Earnings (loss) from Operations | ||
Depreciation and amortization: | $ 10.2 | $ 9.5 |
Professional & Industrial | ||
Earnings (loss) from Operations | ||
Depreciation and amortization: | 2.4 | 1.8 |
Science, Engineering & Technology | ||
Earnings (loss) from Operations | ||
Depreciation and amortization: | 4.1 | 3.8 |
Education | ||
Earnings (loss) from Operations | ||
Depreciation and amortization: | 2.0 | 1.9 |
Outsourcing & Consulting | ||
Earnings (loss) from Operations | ||
Depreciation and amortization: | 1.7 | 1.4 |
International | ||
Earnings (loss) from Operations | ||
Depreciation and amortization: | $ 0.0 | $ 0.6 |
Subsequent Events (Details) - Motion Recruitment Partners, LLC - Forecast - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 29, 2025 |
|
Subsequent Event [Line Items] | ||
Ownership percentage acquired | 100.00% | |
Purchase price paid at closing | $ 425.0 | |
Business combination, contingent consideration, liability | $ 60.0 |
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