Segment Data

Effective January 1, 2018, we adopted new accounting guidance on the presentation of net benefit cost. Under the new guidance, we are required to present non-service cost components of net benefit cost in interest and other expenses, as opposed to selling and administrative expenses. All previously reported results have been restated to conform to the current year presentation.

We are organized and managed primarily on a geographic basis, with Right Management currently operating as a separate global business unit. Each country and business unit generally has its own distinct operations and management team, providing services under our global brands, and maintains its own financial reports. We have an executive sponsor for each global brand who is responsible for ensuring the integrity and consistency of delivery locally. Each operation reports directly or indirectly through a regional manager, to a member of executive management. Given this reporting structure, all of our operations have been segregated into the following reporting segments: Americas, which includes United States and Other Americas; Southern Europe, which includes France, Italy and Other Southern Europe; Northern Europe; APME; and Right Management.

The Americas, Southern Europe, Northern Europe and APME segments derive a significant majority of their revenues from our staffing and interim services. The remaining revenues within these segments are derived from our outcome-based solutions and consulting services, permanent recruitment services and other services. The Right Management segment revenues are derived from outplacement and talent management services. Segment revenues represent sales to external clients. We provide services to a wide variety of clients, none of which individually comprise a significant portion of revenues for us as a whole. Due to the nature of our business, we generally do not have export sales.



	3 Months Ended
	March 31,
	2018			2017
Revenues from services:
Americas:
United States (a)	$	616.3		$	661.5
Other Americas	406.3			364.7
	1,022.6			1,026.2
Southern Europe:
France	1,424.0			1,137.5
Italy	413.6			294.4
Other Southern Europe	474.4			372.0
	2,312.0			1,803.9

Northern Europe	1,417.6			1,238.7
APME	720.2			632.4
Right Management	50.0			56.0
Consolidated (b)	$	5,522.4		$	4,757.2

Operating unit profit: (c)
Americas:
United States	$	26.7		$	26.3
Other Americas	16.2			12.4
	42.9			38.7
Southern Europe:
France	57.7			50.6
Italy	25.2			18.2
Other Southern Europe	14.8			12.7
	97.7			81.5

Northern Europe	16.6			11.8
APME	25.9			20.1
Right Management	6.4			8.8
	189.5			160.9
Corporate expenses	(26.8		)	(24.6		)
Intangible asset amortization expense	(8.9		)	(8.4		)
Operating profit	153.8			127.9
Interest and other expenses	(16.1		)	(15.8		)
Earnings before income taxes	$	137.7		$	112.1

(a)

In the United States, where a majority of our franchises operate, revenues from services included fees received from the related franchise offices of $3.2 and $3.5 for the three months ended March 31, 2018 and 2017, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $149.0 and $167.7 for the three months ended March 31, 2018 and 2017, respectively.


(b)	Our consolidated revenues from services include fees received from our franchise offices of $5.2 and $5.3 for the three months ended March 31, 2018 and 2017, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $236.8 and $239.1 for the three months ended March 31, 2018 and 2017, respectively.

(c)

We evaluate segment performance based on operating unit profit (“OUP”), which is equal to segment revenues less cost of services and branch and national headquarters operating costs. This profit measure does not include goodwill and intangible asset impairment charges or amortization of intangibles related to acquisitions, corporate expenses, interest and other income and expense amounts or income taxes.