Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 02, 2017 | Jul. 31, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | KELLY SERVICES INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 55,135 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jul. 2, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,871,144 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,437,643 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Income Statement [Abstract] | ||||
Revenue from services | $ 1,333.6 | $ 1,375.5 | $ 2,623.3 | $ 2,724.6 |
Cost of services | 1,104.8 | 1,145 | 2,162.9 | 2,261.4 |
Gross profit | 228.8 | 230.5 | 460.4 | 463.2 |
Selling, general and administrative expenses | 208.5 | 220.6 | 423.7 | 438.6 |
Earnings from operations | 20.3 | 9.9 | 36.7 | 24.6 |
Other expense, net | 0.5 | 0 | 2.1 | 0.9 |
Earnings before taxes and equity in net earnings (loss) of affiliate | 19.8 | 9.9 | 34.6 | 23.7 |
Income tax expense | 1.5 | 0.8 | 4.2 | 3.5 |
Net earnings before equity in net earnings (loss) of affiliate | 18.3 | 9.1 | 30.4 | 20.2 |
Equity in net earnings (loss) of affiliate | 0.4 | (0.2) | 0.5 | (0.1) |
Net earnings | $ 18.7 | $ 8.9 | $ 30.9 | $ 20.1 |
Basic earnings per share (in dollars per share) | $ 0.48 | $ 0.23 | $ 0.79 | $ 0.52 |
Diluted earnings per share (in dollars per share) | 0.47 | 0.23 | 0.78 | 0.51 |
Dividends per share (in dollars per share) | $ 0.075 | $ 0.075 | $ 0.15 | $ 0.125 |
Average shares outstanding (millions): | ||||
Basic (in shares) | 38.3 | 38 | 38.3 | 38 |
Diluted (in shares) | 38.8 | 38.3 | 38.7 | 38.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 18.7 | $ 8.9 | $ 30.9 | $ 20.1 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments, net of tax expense of $0.0, tax benefit of $0.1, tax expense of $0.1 and $0.1, respectively | 6.9 | (0.6) | 12.6 | 11.3 |
Less: Reclassification adjustments included in net earnings | 0 | 0 | 0 | (0.3) |
Foreign currency translation adjustments | 6.9 | (0.6) | 12.6 | 11 |
Unrealized gains on investment, net of tax expense of $0.4, $7.7, $9.0 and $3.7, respectively | 0.9 | 15.6 | 19.8 | 7.5 |
Other comprehensive income | 7.8 | 15 | 32.4 | 18.5 |
Comprehensive income | $ 26.5 | $ 23.9 | $ 63.3 | $ 38.6 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax expense (benefit) | $ 0 | $ (0.1) | $ 0.1 | $ 0.1 |
Unrealized gains (losses) on investments, tax expense (benefit) | $ 0.4 | $ 7.7 | $ 9 | $ 3.7 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 02, 2017 | Jan. 01, 2017 |
CURRENT ASSETS: | ||
Cash and equivalents | $ 60.8 | $ 29.6 |
Trade accounts receivable, less allowances of $12.7 and $12.5, respectively | 1,188.1 | 1,138.3 |
Prepaid expenses and other current assets | 61.8 | 46.7 |
Total current assets | 1,310.7 | 1,214.6 |
Property and equipment: | ||
Property and equipment | 280.3 | 270 |
Accumulated depreciation | (198.8) | (189.2) |
Net property and equipment | 81.5 | 80.8 |
Deferred taxes | 185.8 | 180.1 |
Goodwill | 88.4 | 88.4 |
Investment in equity affiliate | 115.2 | 114.8 |
Other assets | 402.5 | 349.4 |
Total noncurrent assets | 873.4 | 813.5 |
TOTAL ASSETS | 2,184.1 | 2,028.1 |
CURRENT LIABILITIES: | ||
Short-term borrowings | 0.7 | 0 |
Accounts payable and accrued liabilities | 476.1 | 455.1 |
Accrued payroll and related taxes | 286.4 | 241.5 |
Accrued insurance | 22.8 | 23.4 |
Income and other taxes | 57 | 51.1 |
Total current liabilities | 843 | 771.1 |
NONCURRENT LIABILITIES: | ||
Accrued insurance | 44.2 | 45.5 |
Accrued retirement benefits | 170.1 | 157.4 |
Other long-term liabilities | 53.4 | 42.1 |
Total noncurrent liabilities | 267.7 | 245 |
Commitments and contingencies (see contingencies footnote) | ||
Treasury stock, at cost | ||
Paid-in capital | 31.1 | 28.6 |
Earnings invested in the business | 948.7 | 923.6 |
Accumulated other comprehensive income | 91.1 | 58.7 |
Total stockholders’ equity | 1,073.4 | 1,012 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,184.1 | 2,028.1 |
Class A Common Stock | ||
Capital stock, $1.00 par value | ||
Common stock, value | 36.6 | 36.6 |
Treasury stock, at cost | ||
Treasury stock, value | (37) | (38.4) |
Class B Common Stock | ||
Capital stock, $1.00 par value | ||
Common stock, value | 3.5 | 3.5 |
Treasury stock, at cost | ||
Treasury stock, value | $ (0.6) | $ (0.6) |
Consolidated Balance Sheets (U6
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jul. 02, 2017 | Jan. 01, 2017 |
Allowance for trade accounts receivables | $ 12.7 | $ 12.5 |
Class A Common Stock | ||
Capital stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 36.6 | 36.6 |
Treasury stock, common stock (in shares) | 1.8 | 1.9 |
Class B Common Stock | ||
Capital stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 3.5 | 3.5 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common StockCapital Stock, Class A common stock | Common StockCapital Stock, Class B common stock | Treasury StockTreasury Stock, Class A common stock | Treasury StockTreasury Stock, Class B common stock | Paid-in Capital | Earnings Invested in the Business | Accumulated Other Comprehensive Income |
Beginning balance at Jan. 03, 2016 | $ 36.6 | $ 3.5 | $ (43.7) | $ (0.6) | $ 25.4 | $ 813.5 | $ 60.7 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock and other | 2.2 | 0 | 2.7 | |||||
Net earnings | $ 20.1 | 20.1 | ||||||
Dividends | (4.8) | |||||||
Other comprehensive income, net of tax | 18.5 | 18.5 | ||||||
Ending balance at Jul. 03, 2016 | 934.1 | 36.6 | 3.5 | (41.5) | (0.6) | 28.1 | 828.8 | 79.2 |
Beginning balance at Apr. 03, 2016 | 36.6 | 3.5 | (43.1) | (0.6) | 27.4 | 822.8 | 64.2 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock and other | 1.6 | 0 | 0.7 | |||||
Net earnings | 8.9 | 8.9 | ||||||
Dividends | (2.9) | |||||||
Other comprehensive income, net of tax | 15 | 15 | ||||||
Ending balance at Jul. 03, 2016 | 934.1 | 36.6 | 3.5 | (41.5) | (0.6) | 28.1 | 828.8 | 79.2 |
Beginning balance at Jan. 01, 2017 | 1,012 | 36.6 | 3.5 | (38.4) | (0.6) | 28.6 | 923.6 | 58.7 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock and other | 1.4 | 0 | 2.5 | |||||
Net earnings | 30.9 | 30.9 | ||||||
Dividends | (5.8) | |||||||
Other comprehensive income, net of tax | 32.4 | 32.4 | ||||||
Ending balance at Jul. 02, 2017 | 1,073.4 | 36.6 | 3.5 | (37) | (0.6) | 31.1 | 948.7 | 91.1 |
Beginning balance at Apr. 02, 2017 | 36.6 | 3.5 | (37.5) | (0.6) | 31.5 | 932.9 | 83.3 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of restricted stock and other | 0.5 | 0 | (0.4) | |||||
Net earnings | 18.7 | 18.7 | ||||||
Dividends | (2.9) | |||||||
Other comprehensive income, net of tax | 7.8 | 7.8 | ||||||
Ending balance at Jul. 02, 2017 | $ 1,073.4 | $ 36.6 | $ 3.5 | $ (37) | $ (0.6) | $ 31.1 | $ 948.7 | $ 91.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Cash flows from operating activities: | ||
Net earnings | $ 30.9 | $ 20.1 |
Noncash adjustments: | ||
Depreciation and amortization | 10.6 | 10.9 |
Provision for bad debts | 2.9 | 3.5 |
Stock-based compensation | 3.6 | 4.5 |
Other, net | (0.5) | (0.7) |
Changes in operating assets and liabilities | (3.5) | 2.9 |
Net cash from operating activities | 44 | 41.2 |
Cash flows from investing activities: | ||
Capital expenditures | (7.3) | (4.3) |
Other investing activities | (0.1) | (0.4) |
Net cash used in investing activities | (7.4) | (4.7) |
Cash flows from financing activities: | ||
Net change in short-term borrowings | 0.7 | (29.1) |
Dividend payments | (5.8) | (4.8) |
Other financing activities | (0.1) | 0.2 |
Net cash used in financing activities | (5.2) | (33.7) |
Effect of exchange rates on cash and equivalents | (0.2) | 6.4 |
Net change in cash and equivalents | 31.2 | 9.2 |
Less: cash balance included in current assets held for sale | 0 | 18.1 |
Cash and equivalents at beginning of period | 29.6 | 42.2 |
Cash and equivalents at end of period | $ 60.8 | $ 33.3 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 02, 2017 | |
Accounting Policies [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 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 January 1, 2017 , included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 17, 2017 (the 2016 consolidated financial statements). The Company’s second fiscal quarter ended on July 2, 2017 ( 2017 ) and July 3, 2016 ( 2016 ), each of which contained 13 weeks. The corresponding June year to date periods for 2017 and 2016 each contained 26 weeks. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain reclassifications have been made to the prior years’ consolidated financial statements to conform to the current year’s presentation. |
Investment in TS Kelly Asia Pac
Investment in TS Kelly Asia Pacific | 6 Months Ended |
Jul. 02, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in TS Kelly Asia Pacific | Investment in TS Kelly Asia Pacific The Company has a 49% ownership interest in TS Kelly Asia Pacific. The operating results of the Company’s interest in TS Kelly Asia Pacific are accounted for on a one-quarter lag under the equity method and are reported in the equity in net earnings (loss) of affiliate in the consolidated statement of earnings. These operating results include the operating results of the Company’s interest in TS Kelly Workforce Solutions, a previous joint venture in which the Company held a 49% interest, which was transferred to TS Kelly Asia Pacific during the first quarter of 2017. As of the second quarter-end 2016, the Company presented the assets and liabilities of its Asia Pacific staffing operations as held for sale on the consolidated balance sheet which were subsequently included in the formation of TS Kelly Asia Pacific. The investment in equity affiliate on the Company’s consolidated balance sheet totaled $115.2 million as of second quarter-end 2017 and $114.8 million as of year-end 2016 . The net amount due to TS Kelly Asia Pacific, a related party, was $1.6 million as of the second quarter-end 2017 and $1.1 million as of year-end 2016 . The amount included in trade accounts payable for staffing services provided by TS Kelly Asia Pacific as a supplier to CWO programs was $3.6 million as of second quarter-end 2017 and $3.1 million as of year-end 2016 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 02, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Trade accounts receivable, short-term borrowings, accounts payable, accrued liabilities and accrued payroll and related taxes approximate their fair values due to the short-term maturities of these assets and liabilities. Assets Measured at Fair Value on a Recurring Basis The following tables present assets measured at fair value on a recurring basis on the consolidated balance sheet as of second quarter-end 2017 and year-end 2016 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. Fair Value Measurements on a Recurring Basis Description Total Level 1 Level 2 Level 3 (In millions of dollars) Money market funds $ 38.5 $ 38.5 $ — $ — Available-for-sale investment 170.7 170.7 — — Total assets at fair value $ 209.2 $ 209.2 $ — $ — Fair Value Measurements on a Recurring Basis Description Total Level 1 Level 2 Level 3 (In millions of dollars) Money market funds $ 4.0 $ 4.0 $ — $ — Available-for-sale investment 141.2 141.2 — — Total assets at fair value $ 145.2 $ 145.2 $ — $ — Money market funds as of second quarter-end 2017 represents investments in money market accounts, of which $34.5 million is included in cash and equivalents on the consolidated balance sheet and $4.0 million is restricted as to use and included in other assets on the consolidated balance sheet. Money market funds as of year-end 2016 represent investments in money market accounts, all of which are restricted as to use and included in other assets on the consolidated balance sheet. The valuations of money market funds were based on quoted market prices of those accounts as of the respective period end. Available-for-sale investment represents the Company’s investment in Persol Holdings (formerly Temp Holdings), the Company’s joint venture partner in TS Kelly Asia Pacific, and is included in other assets on the consolidated balance sheet. The valuation is based on the quoted market price of Persol Holdings stock on the Tokyo Stock Exchange as of the period end. The unrealized gain, net of tax, of $0.9 million for the second quarter of 2017 and $15.6 million for the second quarter of 2016 was recorded in other comprehensive income, and in accumulated other comprehensive income, a component of stockholders’ equity. The unrealized gain, net of tax, of $19.8 million for June year to date 2017 and $7.5 million for June year to date 2016 was recorded in other comprehensive income, as well as in accumulated other comprehensive income. The cost of this yen-denominated investment, which fluctuates based on foreign exchange rates, was $18.4 million as of the second quarter-end 2017 and $17.7 million at year-end 2016 . Assets Measured at Fair Value on a Nonrecurring Basis We test goodwill for impairment annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. Generally accepted accounting principles require that goodwill be tested for impairment at a reporting unit level. We have determined that our reporting units are the same as our operating and reportable segments. The realignment of the Company’s operations into three reportable segments effective with the first quarter of 2017 (see Goodwill and Segment Disclosures footnotes) resulted in a change in our reporting units. As a result, we completed a step one quantitative test for our new reporting units with goodwill. We determined the estimated fair value of each reporting unit tested exceeded its related carrying value. As a result of these quantitative assessments, we determined it was more likely than not that the fair value of each of the reporting units was in excess of its carrying value. |
Restructuring
Restructuring | 6 Months Ended |
Jul. 02, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the first quarter of 2017, the Company took restructuring actions in Global Talent Solutions and Americas Staffing to optimize service delivery models and deliver cost savings in 2017. Restructuring costs incurred in the first quarter of 2017 totaled $2.4 million . Global Talent Solutions incurred $2.0 million and Americas Staffing incurred $0.4 million . All costs, which are primarily severance costs, were recorded entirely in selling, general and administrative (“SG&A”) expenses in the consolidated statement of earnings. A summary of the global restructuring balance sheet accrual, primarily included in accrued payroll and related taxes, is detailed below (in millions of dollars). Balance as of year-end 2016 $ 0.5 Additions charged to Global Talent Solutions 2.0 Additions charged to Americas Staffing 0.4 Reductions for cash payments related to all restructuring activities (0.7 ) Balance as of first quarter-end 2017 2.2 Reductions for cash payments related to all restructuring activities (1.3 ) Balance as of second quarter-end 2017 $ 0.9 The remaining balance of $0.9 million as of second quarter-end 2017 represents primarily severance costs, and the majority is expected to be paid during 2017. No material adjustments are expected to be recorded. |
Goodwill
Goodwill | 6 Months Ended |
Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As discussed in the Segment Disclosures footnote, during the first quarter of 2017 the Company’s chief operating decision maker (“CODM”) changed the way he regularly reviews information for purposes of allocating resources and assessing performance, which resulted in a change in our operating segments and reporting units. We allocated goodwill to our new reporting units using a relative fair value approach. In addition, as discussed in the Fair Value Measurements footnote, we completed an assessment of any potential goodwill impairment for all reporting units with goodwill and determined that no impairment existed. The changes in the carrying amount of goodwill for the second quarter-end 2017 are included in the table below. As of Year-End 2016 As of Second Quarter-End 2017 Goodwill, Accumulated Impairment Losses Goodwill, Allocation of Goodwill Goodwill (In millions of dollars) Americas Commercial $ 40.0 $ (16.4 ) $ 23.6 $ (23.6 ) $ — Americas PT 37.9 — 37.9 (37.9 ) — EMEA Commercial 50.4 (50.4 ) — — — EMEA PT 22.0 (22.0 ) — — — APAC Commercial 12.1 (12.1 ) — — — APAC PT — — — — — OCG 26.9 — 26.9 (26.9 ) — Americas Staffing — — — 25.9 25.9 Global Talent Solutions — — — 62.5 62.5 International Staffing — — — — — $ 189.3 $ (100.9 ) $ 88.4 $ — $ 88.4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jul. 02, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income by component, net of tax, for the second quarter and June year to date 2017 and 2016 are included in the tables below. Amounts in parentheses indicate debits. Reclassification adjustments out of accumulated other comprehensive income, as shown in the tables below, were recorded in the other expense, net line item in the consolidated statement of earnings. Second Quarter 2017 Foreign Unrealized Pension Total (In millions of dollars) Beginning balance $ (17.6 ) $ 102.7 $ (1.8 ) $ 83.3 Other comprehensive income before reclassifications 6.9 0.9 — 7.8 Amounts reclassified from accumulated other comprehensive income — — — — Net current-period other comprehensive income 6.9 0.9 — 7.8 Ending balance $ (10.7 ) $ 103.6 $ (1.8 ) $ 91.1 June Year to Date 2017 Foreign Unrealized Pension Total (In millions of dollars) Beginning balance $ (23.3 ) $ 83.8 $ (1.8 ) $ 58.7 Other comprehensive income before reclassifications 12.6 19.8 — 32.4 Amounts reclassified from accumulated other comprehensive income — — — — Net current-period other comprehensive income 12.6 19.8 — 32.4 Ending balance $ (10.7 ) $ 103.6 $ (1.8 ) $ 91.1 Second Quarter 2016 Foreign Unrealized Pension Total (In millions of dollars) Beginning balance $ (11.0 ) $ 76.8 $ (1.6 ) $ 64.2 Other comprehensive income (loss) before reclassifications (0.6 ) 15.6 — 15.0 Amounts reclassified from accumulated other comprehensive income — — — — Net current-period other comprehensive income (loss) (0.6 ) 15.6 — 15.0 Ending balance $ (11.6 ) $ 92.4 $ (1.6 ) $ 79.2 June Year to Date 2016 Foreign Currency Translation Adjustments Unrealized Gains and Losses on Investment Pension Liability Adjustments Total (In millions of dollars) Beginning balance $ (22.6 ) $ 84.9 $ (1.6 ) $ 60.7 Other comprehensive income before reclassifications 11.3 7.5 — 18.8 Amounts reclassified from accumulated other comprehensive income (0.3 ) — — (0.3 ) Net current-period other comprehensive income 11.0 7.5 — 18.5 Ending balance $ (11.6 ) $ 92.4 $ (1.6 ) $ 79.2 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 02, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The reconciliation of basic and diluted earnings per share on common stock for the second quarter and June year to date 2017 and 2016 follows (in millions of dollars except per share data): Second Quarter June Year to Date 2017 2016 2017 2016 Net earnings $ 18.7 $ 8.9 $ 30.9 $ 20.1 Less: earnings allocated to participating securities (0.3 ) (0.2 ) (0.6 ) (0.5 ) Net earnings available to common shareholders $ 18.4 $ 8.7 $ 30.3 $ 19.6 Average shares outstanding (millions): Basic 38.3 38.0 38.3 38.0 Dilutive share awards 0.5 0.3 0.4 0.2 Diluted 38.8 38.3 38.7 38.2 Basic earnings per share $ 0.48 $ 0.23 $ 0.79 $ 0.52 Diluted earnings per share $ 0.47 $ 0.23 $ 0.78 $ 0.51 Potentially dilutive shares outstanding are primarily related to performance shares for the second quarter and June year to date 2017 and 2016 . Stock options excluded from the computation of diluted earnings per share due to their anti-dilutive effect for the second quarter and June year to date 2016 were not significant, and all remaining stock options expired in the second quarter 2016. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation During the second quarter of 2017, our former President and Chief Executive Officer retired, which resulted in forfeitures of performance shares and restricted stock awards. For the second quarter 2017 and 2016 , respectively, the Company recognized a stock compensation benefit of $0.2 million and expense of $2.3 million , and related tax expense of $0.1 million and tax benefit of $0.9 million . For June year to date 2017 and 2016 , respectively, the Company recognized stock compensation expense of $4.2 million and $5.2 million , and related tax benefits of $1.8 million and $2.0 million . Performance Shares During 2017, the Company granted performance awards associated with the Company’s Class A stock to certain senior officers. The payment of performance shares, which will be satisfied with the issuance of shares out of treasury stock, is contingent upon the achievement of specific performance goals 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 a three -year performance period and will cliff vest after the approval by the Compensation Committee, if not forfeited by the recipient. No dividends are paid on these performance shares. Financial measure performance goals may be earned upon the achievement of two financial goals and have a weighted average grant date fair value of $21.07 . For each of the two financial measures, there are annual goals set in February of each year, with the total award payout based on a cumulative average of the 2017, 2018 and 2019 goals. Accordingly, the Company remeasures the fair value of the 2017 financial measure performance shares each reporting period until the 2019 goals are set, after which the fair value will be fixed for the remaining performance period. As of second quarter-end 2017 , for the performance shares granted in 2017 and 2016, the current fair value for the financial measure performance shares was $21.58 and $21.57 , respectively. Total shareholder return (“TSR”) performance shares may be earned based on the Company’s TSR relative to the S&P SmallCap 600 Index. The TSR performance shares have an estimated fair value of $20.16 , which was computed using a Monte Carlo simulation model incorporating assumptions for inputs of expected stock price volatility, dividend yield and risk-free interest rate. A summary of the status of all nonvested performance shares at target as of second quarter-end 2017 and year-to-date changes, which includes the impact of forfeitures related to the retirement of the Company’s former President and Chief Executive Officer, is presented as follows (in thousands of shares except per share data): Financial Measure Performance Shares TSR Performance Shares Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Nonvested at year-end 2016 499 $ 19.17 208 $ 17.49 Granted 286 21.32 101 20.16 Vested — — — — Forfeited (182 ) 20.32 (65 ) 18.99 Nonvested at second quarter-end 2017 603 $ 19.70 244 $ 18.20 Restricted Stock A summary of the status of nonvested restricted stock as of second quarter-end 2017 and year-to-date changes, which includes the impact of forfeitures related to the retirement of the Company’s former President and Chief Executive Officer, is presented as follows (in thousands of shares except per share data): Shares Weighted Average Grant Date Fair Value Nonvested at year-end 2016 653 $ 16.58 Granted 189 21.90 Vested (74 ) 17.25 Forfeited (163 ) 16.91 Nonvested at second quarter-end 2017 605 $ 18.07 |
Other Expense, Net
Other Expense, Net | 6 Months Ended |
Jul. 02, 2017 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net Included in other expense, net for the second quarter and June year to date 2017 and 2016 are the following: Second Quarter June Year to Date 2017 2016 2017 2016 (In millions of dollars) Interest income $ 0.2 $ — $ 0.3 $ 0.1 Interest expense (0.6 ) (0.9 ) (1.1 ) (1.8 ) Dividend income 0.7 0.6 0.7 0.6 Foreign exchange loss (0.8 ) 0.3 (2.0 ) 0.2 Other expense, net $ (0.5 ) $ — $ (2.1 ) $ (0.9 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $1.5 million and $0.8 million (with effective tax rates of 7.6% and 8.1% ) for the second quarter of 2017 and 2016 , respectively, and $4.2 million and $3.5 million (with effective tax rates of 12.2% and 14.8% ) for June year to date 2017 and 2016 , respectively. 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 non-taxable 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, or changes in judgment regarding the realizability of deferred tax assets. Income tax expense in the second quarter of 2017 benefited from the release of a valuation allowance in Norway and from increases in the cash surrender value of life insurance policies. There could be an income tax benefit from a valuation allowance release of approximately $5 million in the near term if future taxable income is sufficient to make it more likely than not that deferred tax assets will be realizable in certain jurisdictions. |
Contingencies
Contingencies | 6 Months Ended |
Jul. 02, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is a party to a pending nationwide class action lawsuit entitled Hillson et.al. v Kelly Services. The suit alleges that current and former temporary employees of Kelly Services are entitled to monetary damages for violation of the Fair Credit Reporting Act requirement that the notice and disclosure form provided to employees for purposes of conducting a background screening be a standalone document. On April 20, 2016, the parties entered into a formal settlement agreement. A court hearing was held on August 2, 2017 to consider final approval for settlement. We await the Court’s ruling. In light of amounts previously expensed and anticipated recoveries from third parties, Kelly recorded an accrual in the fourth quarter of 2015 of $4.1 million (in accounts payable and accrued liabilities on the consolidated balance sheet) to reflect the expected cost of the tentative settlement. The Company is continuously engaged in litigation arising in the ordinary course of its business, such as matters alleging employment discrimination, alleging wage and hour violations or enforcing the restrictive covenants in the Company’s employment agreements. The Company has experienced an increase in its litigation volume, including cases where claimants seek class action certification. While there is no expectation that any of these matters will have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is always subject to inherent uncertainty and the Company is not able to reasonably predict if any matter will be resolved in a manner that is materially adverse to the Company. |
Segment Disclosures
Segment Disclosures | 6 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Segment Disclosures | Segment Disclosures The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the CODM to determine resource allocation and assess performance. During the first quarter of 2017, the Company’s CODM, who was previously the Company’s Chief Executive Officer (“CEO”) and Chief Operating Officer, was determined to be the Company’s CEO. The Company regularly assesses its organizational structure, product/service offerings and information evaluated by the CODM to determine whether any changes have occurred that would impact its segment reporting structure. During the first quarter of 2017, the Company realigned its business into three reportable segments, which reflect how the Company delivers services to customers and how its business is organized internally. These segments are: (1) Americas Staffing, (2) Global Talent Solutions (“GTS”), and (3) International Staffing. Accordingly, prior year’s segment information was recast to conform to the current presentation. Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services. Americas Staffing represents the Company’s branch-delivered staffing business in the U.S., Canada, Puerto Rico, Mexico and Brazil. International Staffing represents the EMEA region branch-delivered staffing business, as well as the Company’s APAC region staffing business prior to the transaction to form the TS Kelly Asia Pacific joint venture in July 2016. Americas Staffing and International Staffing both deliver temporary staffing, as well as direct-hire placement services, in office-clerical, educational, light industrial and professional and technical specialties within their geographic regions. GTS combines the delivery structure of the Company’s outsourcing and consulting group and centrally delivered staffing business. It reflects the trend of customers towards the adoption of holistic talent supply chain solutions which combine contingent labor, full-time hiring and outsourced services. GTS includes centrally delivered staffing, recruitment process outsourcing (“RPO”), contingent workforce outsourcing (“CWO”), business process outsourcing (“BPO”), payroll process outsourcing (“PPO”), executive placement, career transition/outplacement services and advisory services. Corporate expenses that directly support the operating units have been allocated to Americas Staffing, GTS and International Staffing based on work effort, volume or, in the absence of a readily available measurement process, proportionately based on gross profit realized. In connection with the realignment of the segment structure, we reassessed the allocation of corporate expenses to the operating segments and updated the allocation method for corporate expenses which do not have a readily available measurement from revenue to gross profit. Prior periods have been recast to reflect the current period allocation method. 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 segment, along with a reconciliation to consolidated earnings before taxes and equity in net earnings (loss) of affiliate, for the second quarter and June year to date 2017 and 2016 . Asset information by reportable segment is not presented, since the Company does not produce such information internally nor does it use such data to manage its business. Second Quarter June Year to Date 2017 2016 2017 2016 (In millions of dollars) Revenue from Services: Americas Staffing $ 575.6 $ 542.4 $ 1,148.7 $ 1,096.5 Global Talent Solutions 505.5 500.6 992.8 991.5 International Staffing 256.8 337.3 490.4 646.3 Less: Intersegment revenue (4.3 ) (4.8 ) (8.6 ) (9.7 ) Consolidated Total $ 1,333.6 $ 1,375.5 $ 2,623.3 $ 2,724.6 Second Quarter June Year to Date 2017 2016 2017 2016 (In millions of dollars) Earnings from Operations: Americas Staffing gross profit $ 103.8 $ 97.2 $ 209.1 $ 197.9 Americas Staffing SG&A expenses (83.4 ) (81.6 ) (167.5 ) (165.2 ) Americas Staffing Earnings from Operations 20.4 15.6 41.6 32.7 Global Talent Solutions gross profit 88.7 85.7 179.2 171.0 Global Talent Solutions SG&A expenses (73.4 ) (71.8 ) (148.6 ) (143.4 ) Global Talent Solutions Earnings from Operations 15.3 13.9 30.6 27.6 International Staffing gross profit 36.8 48.6 73.2 96.4 International Staffing SG&A expenses (32.7 ) (44.6 ) (63.9 ) (85.8 ) International Staffing Earnings from Operations 4.1 4.0 9.3 10.6 Less: Intersegment gross profit (0.5 ) (1.0 ) (1.1 ) (2.1 ) Less: Intersegment SG&A expenses 0.5 1.0 1.1 2.1 Net Intersegment Activity — — — — Corporate (19.5 ) (23.6 ) (44.8 ) (46.3 ) Consolidated Total 20.3 9.9 36.7 24.6 Other Expense, Net (0.5 ) — (2.1 ) (0.9 ) Earnings before taxes and equity in net earnings (loss) of affiliate $ 19.8 $ 9.9 $ 34.6 $ 23.7 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jul. 02, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09 clarifying when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. It does not change the accounting for modifications. The ASU is effective prospectively for reporting periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. We do not expect the adoption of this ASU will have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 simplifying the accounting for goodwill impairment for all entities. The new guidance eliminates the requirement to calculate the implied fair value of goodwill (Step 2 of the current two-step goodwill impairment test under ASC 350). Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (Step 1 of the current two-step goodwill impairment test). The ASU is effective prospectively for reporting periods beginning after December 15, 2019, with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. We are currently evaluating the impact of the new guidance on our goodwill impairment testing process and consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 amending the presentation of restricted cash within the statement of cash flows. The new guidance requires that restricted cash be included within cash and cash equivalents on the statement of cash flows. The ASU is effective retrospectively for reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of the new guidance and we do not expect it to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 clarifying how entities should classify certain cash receipts and payments on the statement of cash flows. The new guidance addresses classification of cash flows related to the following transactions: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies; 6) distributions received from equity method investees; and 7) beneficial interests in securitization transaction. ASU 2016-15 also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 and requires retrospective application. Early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13 amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model which is a new impairment model based on expected losses. Under this model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions and forecasted information rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019 with early adoption permitted for annual reporting periods beginning after December 15, 2018. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. This ASU applies to trade accounts receivable and may have an impact on our calculation of the allowance for uncollectible accounts receivable. In March 2016, the FASB issued ASU 2016-09 amending several aspects of share-based payment accounting. This guidance requires all excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled, with prospective application required. The guidance also changes the classification of such tax benefits or tax deficiencies on the statement of cash flows from a financing activity to an operating activity, with retrospective or prospective application allowed. Additionally, the guidance requires the classification of employee taxes paid when an employer withholds shares for tax-withholding purposes as a financing activity on the statement of cash flows, with retrospective application required. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. We adopted this guidance effective January 2, 2017, and the adoption did not have a material effect on our financial statements. In February 2016, the FASB issued ASU 2016-02 amending the existing accounting standards for lease accounting and requiring lessees to recognize lease assets and lease liabilities for all leases with lease terms of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S. Generally Accepted Accounting Principles (“GAAP”), the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective application. Early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. As our branch operations are primarily conducted in leased facilities, this ASU will likely have a material impact on our balance sheet, may have a material impact to our statement of earnings and will require us to disclose additional information about our leasing activities. We established a cross-functional implementation team to further assess the impact of the standard. In January 2016, the FASB issued ASU 2016-01 amending the current guidance for how entities measure certain equity investments, the accounting for financial liabilities under the fair value option, and the presentation and disclosure requirements relating to financial instruments. The new guidance requires entities to use fair value measurement for equity investments in unconsolidated entities, excluding equity method investments, and to recognize the changes in fair value in net income at the end of each reporting period. Under the new standard, for any financial liabilities in which the fair value option has been elected, the changes in fair value due to instrument-specific credit risk must be recognized separately in other comprehensive income. Presentation and disclosure requirements under the new guidance require public business entities to use the exit price when measuring the fair value of financial instruments measured at amortized cost. In addition, financial assets and liabilities must now be presented separately in the notes to the financial statements and grouped by measurement category and form of financial asset. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is only permitted for the financial liability provision. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. We expect to implement the standard with the modified retrospective method and the cumulative reclassification adjustment between other comprehensive income and retained earnings on the consolidated balance sheet is expected to be material. This standard will impact how we recognize changes in the fair value of our available-for-sale investment and could have a material impact on our financial statements. In May 2014, the FASB issued new revenue recognition guidance under ASU 2014-09 that will supersede the existing revenue recognition guidance under U.S. GAAP. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. In July 2015, the FASB deferred the effective date by one year (ASU 2015-14). This ASU will now be effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1) clarification of the implementation guidance on principal versus agent considerations (ASU 2016-08); 2) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance (ASU 2016-10); 3) rescission of several SEC Staff Announcements that are codified in Topic 605 (ASU 2016-11); 4) additional guidance and practical expedients in response to identified implementation issues (ASU 2016-12); and 5) technical corrections and improvements (ASU 2016-20). The new standard will be effective for us beginning January 1, 2018. We established a cross-functional implementation team consisting of representatives from across our business segments and various departments. We utilized a bottoms-up approach to analyze the impact of the standard on our various revenue streams by reviewing our current contracts with customers, accounting policies and business practices to identify potential differences that would result from applying the requirements of the new standard. In addition, we identified, and are in the process of implementing, appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new standard. We have been closely monitoring FASB activity related to the new standard to conclude on specific interpretive issues. During 2016 and 2017, we have made significant progress toward completing our evaluation of the potential impact that adopting the new standard will have on our consolidated results of operations, consolidated financial position and cash flows. We expect to implement the standard with the modified retrospective approach beginning January 1, 2018, which recognizes the cumulative effect of application recognized on that date. Revenue on the majority of our contracts with customers will continue to be recognized over time as services are rendered. The impact of adopting ASU 2014-09 primarily relates to deferring contract costs and estimating positive variable (or contingent) consideration, subject to constraint. Additionally, we anticipate expanded disclosures around the nature, amount, timing and uncertainty of revenue and cash flows arising from our contracts with customers. 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. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jul. 02, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09 clarifying when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. It does not change the accounting for modifications. The ASU is effective prospectively for reporting periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. We do not expect the adoption of this ASU will have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04 simplifying the accounting for goodwill impairment for all entities. The new guidance eliminates the requirement to calculate the implied fair value of goodwill (Step 2 of the current two-step goodwill impairment test under ASC 350). Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (Step 1 of the current two-step goodwill impairment test). The ASU is effective prospectively for reporting periods beginning after December 15, 2019, with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. We are currently evaluating the impact of the new guidance on our goodwill impairment testing process and consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 amending the presentation of restricted cash within the statement of cash flows. The new guidance requires that restricted cash be included within cash and cash equivalents on the statement of cash flows. The ASU is effective retrospectively for reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of the new guidance and we do not expect it to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 clarifying how entities should classify certain cash receipts and payments on the statement of cash flows. The new guidance addresses classification of cash flows related to the following transactions: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies; 6) distributions received from equity method investees; and 7) beneficial interests in securitization transaction. ASU 2016-15 also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 and requires retrospective application. Early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13 amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model which is a new impairment model based on expected losses. Under this model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions and forecasted information rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019 with early adoption permitted for annual reporting periods beginning after December 15, 2018. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. This ASU applies to trade accounts receivable and may have an impact on our calculation of the allowance for uncollectible accounts receivable. In March 2016, the FASB issued ASU 2016-09 amending several aspects of share-based payment accounting. This guidance requires all excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled, with prospective application required. The guidance also changes the classification of such tax benefits or tax deficiencies on the statement of cash flows from a financing activity to an operating activity, with retrospective or prospective application allowed. Additionally, the guidance requires the classification of employee taxes paid when an employer withholds shares for tax-withholding purposes as a financing activity on the statement of cash flows, with retrospective application required. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. We adopted this guidance effective January 2, 2017, and the adoption did not have a material effect on our financial statements. In February 2016, the FASB issued ASU 2016-02 amending the existing accounting standards for lease accounting and requiring lessees to recognize lease assets and lease liabilities for all leases with lease terms of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S. Generally Accepted Accounting Principles (“GAAP”), the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective application. Early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. As our branch operations are primarily conducted in leased facilities, this ASU will likely have a material impact on our balance sheet, may have a material impact to our statement of earnings and will require us to disclose additional information about our leasing activities. We established a cross-functional implementation team to further assess the impact of the standard. In January 2016, the FASB issued ASU 2016-01 amending the current guidance for how entities measure certain equity investments, the accounting for financial liabilities under the fair value option, and the presentation and disclosure requirements relating to financial instruments. The new guidance requires entities to use fair value measurement for equity investments in unconsolidated entities, excluding equity method investments, and to recognize the changes in fair value in net income at the end of each reporting period. Under the new standard, for any financial liabilities in which the fair value option has been elected, the changes in fair value due to instrument-specific credit risk must be recognized separately in other comprehensive income. Presentation and disclosure requirements under the new guidance require public business entities to use the exit price when measuring the fair value of financial instruments measured at amortized cost. In addition, financial assets and liabilities must now be presented separately in the notes to the financial statements and grouped by measurement category and form of financial asset. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is only permitted for the financial liability provision. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. We expect to implement the standard with the modified retrospective method and the cumulative reclassification adjustment between other comprehensive income and retained earnings on the consolidated balance sheet is expected to be material. This standard will impact how we recognize changes in the fair value of our available-for-sale investment and could have a material impact on our financial statements. In May 2014, the FASB issued new revenue recognition guidance under ASU 2014-09 that will supersede the existing revenue recognition guidance under U.S. GAAP. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. In July 2015, the FASB deferred the effective date by one year (ASU 2015-14). This ASU will now be effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1) clarification of the implementation guidance on principal versus agent considerations (ASU 2016-08); 2) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance (ASU 2016-10); 3) rescission of several SEC Staff Announcements that are codified in Topic 605 (ASU 2016-11); 4) additional guidance and practical expedients in response to identified implementation issues (ASU 2016-12); and 5) technical corrections and improvements (ASU 2016-20). The new standard will be effective for us beginning January 1, 2018. We established a cross-functional implementation team consisting of representatives from across our business segments and various departments. We utilized a bottoms-up approach to analyze the impact of the standard on our various revenue streams by reviewing our current contracts with customers, accounting policies and business practices to identify potential differences that would result from applying the requirements of the new standard. In addition, we identified, and are in the process of implementing, appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new standard. We have been closely monitoring FASB activity related to the new standard to conclude on specific interpretive issues. During 2016 and 2017, we have made significant progress toward completing our evaluation of the potential impact that adopting the new standard will have on our consolidated results of operations, consolidated financial position and cash flows. We expect to implement the standard with the modified retrospective approach beginning January 1, 2018, which recognizes the cumulative effect of application recognized on that date. Revenue on the majority of our contracts with customers will continue to be recognized over time as services are rendered. The impact of adopting ASU 2014-09 primarily relates to deferring contract costs and estimating positive variable (or contingent) consideration, subject to constraint. Additionally, we anticipate expanded disclosures around the nature, amount, timing and uncertainty of revenue and cash flows arising from our contracts with customers. 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on Recurring Basis | Fair Value Measurements on a Recurring Basis Description Total Level 1 Level 2 Level 3 (In millions of dollars) Money market funds $ 38.5 $ 38.5 $ — $ — Available-for-sale investment 170.7 170.7 — — Total assets at fair value $ 209.2 $ 209.2 $ — $ — Fair Value Measurements on a Recurring Basis Description Total Level 1 Level 2 Level 3 (In millions of dollars) Money market funds $ 4.0 $ 4.0 $ — $ — Available-for-sale investment 141.2 141.2 — — Total assets at fair value $ 145.2 $ 145.2 $ — $ — |
Restructuring Restructuring (Ta
Restructuring Restructuring (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Balance Sheet Accrual | A summary of the global restructuring balance sheet accrual, primarily included in accrued payroll and related taxes, is detailed below (in millions of dollars). Balance as of year-end 2016 $ 0.5 Additions charged to Global Talent Solutions 2.0 Additions charged to Americas Staffing 0.4 Reductions for cash payments related to all restructuring activities (0.7 ) Balance as of first quarter-end 2017 2.2 Reductions for cash payments related to all restructuring activities (1.3 ) Balance as of second quarter-end 2017 $ 0.9 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Net Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the second quarter-end 2017 are included in the table below. As of Year-End 2016 As of Second Quarter-End 2017 Goodwill, Accumulated Impairment Losses Goodwill, Allocation of Goodwill Goodwill (In millions of dollars) Americas Commercial $ 40.0 $ (16.4 ) $ 23.6 $ (23.6 ) $ — Americas PT 37.9 — 37.9 (37.9 ) — EMEA Commercial 50.4 (50.4 ) — — — EMEA PT 22.0 (22.0 ) — — — APAC Commercial 12.1 (12.1 ) — — — APAC PT — — — — — OCG 26.9 — 26.9 (26.9 ) — Americas Staffing — — — 25.9 25.9 Global Talent Solutions — — — 62.5 62.5 International Staffing — — — — — $ 189.3 $ (100.9 ) $ 88.4 $ — $ 88.4 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
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 by component, net of tax, for the second quarter and June year to date 2017 and 2016 are included in the tables below. Amounts in parentheses indicate debits. Reclassification adjustments out of accumulated other comprehensive income, as shown in the tables below, were recorded in the other expense, net line item in the consolidated statement of earnings. Second Quarter 2017 Foreign Unrealized Pension Total (In millions of dollars) Beginning balance $ (17.6 ) $ 102.7 $ (1.8 ) $ 83.3 Other comprehensive income before reclassifications 6.9 0.9 — 7.8 Amounts reclassified from accumulated other comprehensive income — — — — Net current-period other comprehensive income 6.9 0.9 — 7.8 Ending balance $ (10.7 ) $ 103.6 $ (1.8 ) $ 91.1 June Year to Date 2017 Foreign Unrealized Pension Total (In millions of dollars) Beginning balance $ (23.3 ) $ 83.8 $ (1.8 ) $ 58.7 Other comprehensive income before reclassifications 12.6 19.8 — 32.4 Amounts reclassified from accumulated other comprehensive income — — — — Net current-period other comprehensive income 12.6 19.8 — 32.4 Ending balance $ (10.7 ) $ 103.6 $ (1.8 ) $ 91.1 Second Quarter 2016 Foreign Unrealized Pension Total (In millions of dollars) Beginning balance $ (11.0 ) $ 76.8 $ (1.6 ) $ 64.2 Other comprehensive income (loss) before reclassifications (0.6 ) 15.6 — 15.0 Amounts reclassified from accumulated other comprehensive income — — — — Net current-period other comprehensive income (loss) (0.6 ) 15.6 — 15.0 Ending balance $ (11.6 ) $ 92.4 $ (1.6 ) $ 79.2 June Year to Date 2016 Foreign Currency Translation Adjustments Unrealized Gains and Losses on Investment Pension Liability Adjustments Total (In millions of dollars) Beginning balance $ (22.6 ) $ 84.9 $ (1.6 ) $ 60.7 Other comprehensive income before reclassifications 11.3 7.5 — 18.8 Amounts reclassified from accumulated other comprehensive income (0.3 ) — — (0.3 ) Net current-period other comprehensive income 11.0 7.5 — 18.5 Ending balance $ (11.6 ) $ 92.4 $ (1.6 ) $ 79.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
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 second quarter and June year to date 2017 and 2016 follows (in millions of dollars except per share data): Second Quarter June Year to Date 2017 2016 2017 2016 Net earnings $ 18.7 $ 8.9 $ 30.9 $ 20.1 Less: earnings allocated to participating securities (0.3 ) (0.2 ) (0.6 ) (0.5 ) Net earnings available to common shareholders $ 18.4 $ 8.7 $ 30.3 $ 19.6 Average shares outstanding (millions): Basic 38.3 38.0 38.3 38.0 Dilutive share awards 0.5 0.3 0.4 0.2 Diluted 38.8 38.3 38.7 38.2 Basic earnings per share $ 0.48 $ 0.23 $ 0.79 $ 0.52 Diluted earnings per share $ 0.47 $ 0.23 $ 0.78 $ 0.51 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Performance Shares and Restricted Stock | A summary of the status of nonvested restricted stock as of second quarter-end 2017 and year-to-date changes, which includes the impact of forfeitures related to the retirement of the Company’s former President and Chief Executive Officer, is presented as follows (in thousands of shares except per share data): Shares Weighted Average Grant Date Fair Value Nonvested at year-end 2016 653 $ 16.58 Granted 189 21.90 Vested (74 ) 17.25 Forfeited (163 ) 16.91 Nonvested at second quarter-end 2017 605 $ 18.07 A summary of the status of all nonvested performance shares at target as of second quarter-end 2017 and year-to-date changes, which includes the impact of forfeitures related to the retirement of the Company’s former President and Chief Executive Officer, is presented as follows (in thousands of shares except per share data): Financial Measure Performance Shares TSR Performance Shares Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Nonvested at year-end 2016 499 $ 19.17 208 $ 17.49 Granted 286 21.32 101 20.16 Vested — — — — Forfeited (182 ) 20.32 (65 ) 18.99 Nonvested at second quarter-end 2017 603 $ 19.70 244 $ 18.20 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | Included in other expense, net for the second quarter and June year to date 2017 and 2016 are the following: Second Quarter June Year to Date 2017 2016 2017 2016 (In millions of dollars) Interest income $ 0.2 $ — $ 0.3 $ 0.1 Interest expense (0.6 ) (0.9 ) (1.1 ) (1.8 ) Dividend income 0.7 0.6 0.7 0.6 Foreign exchange loss (0.8 ) 0.3 (2.0 ) 0.2 Other expense, net $ (0.5 ) $ — $ (2.1 ) $ (0.9 ) |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Segment Revenue Per Service | Second Quarter June Year to Date 2017 2016 2017 2016 (In millions of dollars) Revenue from Services: Americas Staffing $ 575.6 $ 542.4 $ 1,148.7 $ 1,096.5 Global Talent Solutions 505.5 500.6 992.8 991.5 International Staffing 256.8 337.3 490.4 646.3 Less: Intersegment revenue (4.3 ) (4.8 ) (8.6 ) (9.7 ) Consolidated Total $ 1,333.6 $ 1,375.5 $ 2,623.3 $ 2,724.6 |
Segment Earnings From Operations | Second Quarter June Year to Date 2017 2016 2017 2016 (In millions of dollars) Earnings from Operations: Americas Staffing gross profit $ 103.8 $ 97.2 $ 209.1 $ 197.9 Americas Staffing SG&A expenses (83.4 ) (81.6 ) (167.5 ) (165.2 ) Americas Staffing Earnings from Operations 20.4 15.6 41.6 32.7 Global Talent Solutions gross profit 88.7 85.7 179.2 171.0 Global Talent Solutions SG&A expenses (73.4 ) (71.8 ) (148.6 ) (143.4 ) Global Talent Solutions Earnings from Operations 15.3 13.9 30.6 27.6 International Staffing gross profit 36.8 48.6 73.2 96.4 International Staffing SG&A expenses (32.7 ) (44.6 ) (63.9 ) (85.8 ) International Staffing Earnings from Operations 4.1 4.0 9.3 10.6 Less: Intersegment gross profit (0.5 ) (1.0 ) (1.1 ) (2.1 ) Less: Intersegment SG&A expenses 0.5 1.0 1.1 2.1 Net Intersegment Activity — — — — Corporate (19.5 ) (23.6 ) (44.8 ) (46.3 ) Consolidated Total 20.3 9.9 36.7 24.6 Other Expense, Net (0.5 ) — (2.1 ) (0.9 ) Earnings before taxes and equity in net earnings (loss) of affiliate $ 19.8 $ 9.9 $ 34.6 $ 23.7 |
Investment in TS Kelly Asia P31
Investment in TS Kelly Asia Pacific (Details) - USD ($) $ in Millions | Jul. 02, 2017 | Jan. 01, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Investment in equity affiliate | $ 115.2 | $ 114.8 |
Accounts payable and accrued liabilities | $ 476.1 | 455.1 |
TS Kelly Asia Pacific | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Due to TS Kelly Asia Pacific | $ 1.6 | 1.1 |
TS Kelly Workforce Solutions | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
TS Kelly Asia Pacific | ||
Schedule of Equity Method Investments [Line Items] | ||
Accounts payable and accrued liabilities | $ 3.6 | $ 3.1 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - Measured on Recurring Basis - USD ($) $ in Millions | Jul. 02, 2017 | Jan. 01, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 38.5 | $ 4 |
Available-for-sale investment | 170.7 | 141.2 |
Total assets at fair value | 209.2 | 145.2 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 38.5 | 4 |
Available-for-sale investment | 170.7 | 141.2 |
Total assets at fair value | 209.2 | 145.2 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Available-for-sale investment | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Available-for-sale investment | 0 | 0 |
Total assets at fair value | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017USD ($) | Jul. 03, 2016USD ($) | Jul. 02, 2017USD ($)segment | Jul. 03, 2016USD ($) | Jan. 01, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) on available-for-sale investments, net of tax | $ 0.9 | $ 15.6 | $ 19.8 | $ 7.5 | |
Number of reporting segments | segment | 3 | ||||
Temp Holdings Investment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) on available-for-sale investments, net of tax | 0.9 | $ 15.6 | $ 19.8 | $ 7.5 | |
Cost of available-for-sale investments | 18.4 | 18.4 | $ 17.7 | ||
Cash and Cash Equivalents | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Money market funds | 34.5 | 34.5 | |||
Other Assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Money market funds | $ 4 | $ 4 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 02, 2017 | Jul. 02, 2017 | Jan. 01, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 2.4 | ||
Restructuring accrual | 2.2 | $ 0.9 | $ 0.5 |
Global Talent Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 2 | ||
Severance costs | 2 | ||
Americas Staffing | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0.4 | ||
Severance costs | $ 0.4 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 02, 2017 | Apr. 02, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 2.2 | $ 0.5 |
Additions charged | 2.4 | |
Reductions for cash payments related to all restructuring activities | (1.3) | (0.7) |
Ending balance | $ 0.9 | 2.2 |
Americas Staffing | ||
Restructuring Reserve [Roll Forward] | ||
Additions charged | 0.4 | |
Global Talent Solutions | ||
Restructuring Reserve [Roll Forward] | ||
Additions charged | $ 2 |
Goodwill - Changes in the Net C
Goodwill - Changes in the Net Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 02, 2017 | Jan. 01, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, Gross | $ 189.3 | |
Accumulated Impairment Losses | (100.9) | |
Allocation of Goodwill | $ 0 | |
Goodwill | 88.4 | 88.4 |
Americas Commercial | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 40 | |
Accumulated Impairment Losses | (16.4) | |
Allocation of Goodwill | (23.6) | |
Goodwill | 0 | 23.6 |
Americas PT | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 37.9 | |
Accumulated Impairment Losses | 0 | |
Allocation of Goodwill | (37.9) | |
Goodwill | 0 | 37.9 |
EMEA Commercial | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 50.4 | |
Accumulated Impairment Losses | (50.4) | |
Allocation of Goodwill | 0 | |
Goodwill | 0 | 0 |
EMEA PT | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 22 | |
Accumulated Impairment Losses | (22) | |
Allocation of Goodwill | 0 | |
Goodwill | 0 | 0 |
APAC Commercial | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 12.1 | |
Accumulated Impairment Losses | (12.1) | |
Allocation of Goodwill | 0 | |
Goodwill | 0 | 0 |
APAC PT | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 0 | |
Accumulated Impairment Losses | 0 | |
Allocation of Goodwill | 0 | |
Goodwill | 0 | 0 |
OCG | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 26.9 | |
Accumulated Impairment Losses | 0 | |
Allocation of Goodwill | (26.9) | |
Goodwill | 0 | 26.9 |
Americas Staffing | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 0 | |
Accumulated Impairment Losses | 0 | |
Allocation of Goodwill | 25.9 | |
Goodwill | 25.9 | 0 |
Global Talent Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 0 | |
Accumulated Impairment Losses | 0 | |
Allocation of Goodwill | 62.5 | |
Goodwill | 62.5 | 0 |
International Staffing | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 0 | |
Accumulated Impairment Losses | 0 | |
Allocation of Goodwill | 0 | |
Goodwill | $ 0 | $ 0 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income by Component, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,012 | |||
Other comprehensive income | $ 7.8 | $ 15 | 32.4 | $ 18.5 |
Ending balance | 1,073.4 | 934.1 | 1,073.4 | 934.1 |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (17.6) | (11) | (23.3) | (22.6) |
Other comprehensive income (loss) before reclassifications | 6.9 | (0.6) | 12.6 | 11.3 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | (0.3) |
Other comprehensive income | 6.9 | (0.6) | 12.6 | 11 |
Ending balance | (10.7) | (11.6) | (10.7) | (11.6) |
Unrealized Gains and Losses on Investment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 102.7 | 76.8 | 83.8 | 84.9 |
Other comprehensive income (loss) before reclassifications | 0.9 | 15.6 | 19.8 | 7.5 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income | 0.9 | 15.6 | 19.8 | 7.5 |
Ending balance | 103.6 | 92.4 | 103.6 | 92.4 |
Pension Liability Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1.8) | (1.6) | (1.8) | (1.6) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance | (1.8) | (1.6) | (1.8) | (1.6) |
Accumulated Other Comprehensive Income | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 83.3 | 64.2 | 58.7 | 60.7 |
Other comprehensive income (loss) before reclassifications | 7.8 | 15 | 32.4 | 18.8 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | (0.3) |
Other comprehensive income | 7.8 | 15 | 32.4 | 18.5 |
Ending balance | $ 91.1 | $ 79.2 | $ 91.1 | $ 79.2 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 18.7 | $ 8.9 | $ 30.9 | $ 20.1 |
Less: earnings allocated to participating securities | (0.3) | (0.2) | (0.6) | (0.5) |
Net earnings available to common shareholders | $ 18.4 | $ 8.7 | $ 30.3 | $ 19.6 |
Average shares outstanding (millions): | ||||
Basic (in shares) | 38.3 | 38 | 38.3 | 38 |
Dilutive share awards (in shares) | 0.5 | 0.3 | 0.4 | 0.2 |
Diluted (in shares) | 38.8 | 38.3 | 38.7 | 38.2 |
Basic earnings per share on common stock (in dollars per share) | $ 0.48 | $ 0.23 | $ 0.79 | $ 0.52 |
Diluted earnings per share on common stock (in dollars per share) | $ 0.47 | $ 0.23 | $ 0.78 | $ 0.51 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 15, 2017 | Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | Jan. 01, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ (0.2) | $ 2.3 | $ 4.2 | $ 5.2 | ||
Related tax benefit | $ (0.1) | $ 0.9 | $ 1.8 | $ 2 | ||
Performance shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Performance Shares, Financial Goals | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 21.07 | |||||
TSR Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 18.20 | $ 18.20 | $ 17.49 | |||
Monte Carlo Fair Value | TSR Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 20.16 | |||||
Maximum shares eligible to earn [Member] | Performance shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | |||||
2017 grant [Member] | Performance Shares, Financial Goals | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | 21.58 | 21.58 | ||||
2016 grant [Member] | Performance Shares, Financial Goals | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 21.57 | $ 21.57 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Nonvested Performance Shares (Details) shares in Thousands | 6 Months Ended |
Jul. 02, 2017$ / sharesshares | |
Financial Measure Performance Shares | |
Shares | |
Nonvested at year-end (in shares) | shares | 499 |
Granted (in shares) | shares | 286 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (182) |
Nonvested at second quarter-end (in shares) | shares | 603 |
Weighted Average Grant Date Fair Value | |
Nonvested at year-end (in dollars per share) | $ / shares | $ 19.17 |
Granted (in dollars per share) | $ / shares | 21.32 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 20.32 |
Nonvested at second quarter-end (in dollars per share) | $ / shares | $ 19.70 |
TSR Performance Shares | |
Shares | |
Nonvested at year-end (in shares) | shares | 208 |
Granted (in shares) | shares | 101 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (65) |
Nonvested at second quarter-end (in shares) | shares | 244 |
Weighted Average Grant Date Fair Value | |
Nonvested at year-end (in dollars per share) | $ / shares | $ 17.49 |
Granted (in dollars per share) | $ / shares | 20.16 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 18.99 |
Nonvested at second quarter-end (in dollars per share) | $ / shares | $ 18.20 |
Stock-Based Compensation - Sc41
Stock-Based Compensation - Schedule of Nonvested Restricted Stock (Details) - Restricted Stock (RSUs) shares in Thousands | 6 Months Ended |
Jul. 02, 2017$ / sharesshares | |
Shares | |
Nonvested at year-end (in shares) | shares | 653 |
Granted (in shares) | shares | 189 |
Vested (in shares) | shares | (74) |
Forfeited (in shares) | shares | (163) |
Nonvested at second quarter-end (in shares) | shares | 605 |
Weighted Average Grant Date Fair Value | |
Nonvested at year-end (in dollars per share) | $ / shares | $ 16.58 |
Granted (in dollars per share) | $ / shares | 21.90 |
Vested (in dollars per share) | $ / shares | 17.25 |
Forfeited (in dollars per share) | $ / shares | 16.91 |
Nonvested at second quarter-end (in dollars per share) | $ / shares | $ 18.07 |
Other Expense, Net - Schedule o
Other Expense, Net - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 0.2 | $ 0 | $ 0.3 | $ 0.1 |
Interest expense | (0.6) | (0.9) | (1.1) | (1.8) |
Dividend income | 0.7 | 0.6 | 0.7 | 0.6 |
Foreign exchange loss | (0.8) | 0.3 | (2) | 0.2 |
Other expense, net | $ (0.5) | $ 0 | $ (2.1) | $ (0.9) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1.5 | $ 0.8 | $ 4.2 | $ 3.5 |
Effective tax rate | 7.60% | 8.10% | 12.20% | 14.80% |
Potential future valuation allowance release | $ 5 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) $ in Millions | Jan. 03, 2016USD ($) |
Hillson et. al. Case | |
Loss Contingencies [Line Items] | |
Accrual for litigation costs | $ 4.1 |
Segment Disclosures - Narrative
Segment Disclosures - Narrative (Details) | 6 Months Ended |
Jul. 02, 2017segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Segment Disclosures - Segment R
Segment Disclosures - Segment Revenue Per Service (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Revenue from Services | ||||
Segment revenue from services | $ 1,333.6 | $ 1,375.5 | $ 2,623.3 | $ 2,724.6 |
Less: Intersegment revenue | ||||
Revenue from Services | ||||
Segment revenue from services | (4.3) | (4.8) | (8.6) | (9.7) |
Americas Staffing | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 575.6 | 542.4 | 1,148.7 | 1,096.5 |
Global Talent Solutions | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | 505.5 | 500.6 | 992.8 | 991.5 |
International Staffing | Reporting Segments | ||||
Revenue from Services | ||||
Segment revenue from services | $ 256.8 | $ 337.3 | $ 490.4 | $ 646.3 |
Segment Disclosures - Segment E
Segment Disclosures - Segment Earnings From Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Earnings from Operations | ||||
Gross profit | $ 228.8 | $ 230.5 | $ 460.4 | $ 463.2 |
SG&A expenses | (208.5) | (220.6) | (423.7) | (438.6) |
Earnings from operations | 20.3 | 9.9 | 36.7 | 24.6 |
Other Expense, Net | (0.5) | 0 | (2.1) | (0.9) |
Earnings before taxes and equity in net earnings (loss) of affiliate | 19.8 | 9.9 | 34.6 | 23.7 |
Less: Intersegment | ||||
Earnings from Operations | ||||
Gross profit | (0.5) | (1) | (1.1) | (2.1) |
SG&A expenses | 0.5 | 1 | 1.1 | 2.1 |
Earnings from operations | 0 | 0 | 0 | 0 |
Corporate | ||||
Earnings from Operations | ||||
Earnings from operations | (19.5) | (23.6) | (44.8) | (46.3) |
Americas Staffing | Reporting Segments | ||||
Earnings from Operations | ||||
Gross profit | 103.8 | 97.2 | 209.1 | 197.9 |
SG&A expenses | (83.4) | (81.6) | (167.5) | (165.2) |
Earnings from operations | 20.4 | 15.6 | 41.6 | 32.7 |
Global Talent Solutions | Reporting Segments | ||||
Earnings from Operations | ||||
Gross profit | 88.7 | 85.7 | 179.2 | 171 |
SG&A expenses | (73.4) | (71.8) | (148.6) | (143.4) |
Earnings from operations | 15.3 | 13.9 | 30.6 | 27.6 |
International Staffing | Reporting Segments | ||||
Earnings from Operations | ||||
Gross profit | 36.8 | 48.6 | 73.2 | 96.4 |
SG&A expenses | (32.7) | (44.6) | (63.9) | (85.8) |
Earnings from operations | $ 4.1 | $ 4 | $ 9.3 | $ 10.6 |