Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 03, 2022 | May 02, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-1088 | |
Entity Registrant Name | KELLY SERVICES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-1510762 | |
Entity Address, Address Line One | 999 West Big Beaver Road | |
Entity Address, City or Town | Troy | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48084 | |
City Area Code | 248 | |
Local Phone Number | 362-4444 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --01-01 | |
Amendment Flag | false | |
Entity Central Index Key | 0000055135 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,560,502 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,357,146 | |
NASDAQ Global Market | Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common | |
Trading Symbol | KELYA | |
Security Exchange Name | NASDAQ | |
NASDAQ Global Market | Class B Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common | |
Trading Symbol | KELYB | |
Security Exchange Name | NASDAQ |
Contingencies
Contingencies | 3 Months Ended |
Apr. 03, 2022 | |
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 2022 and year-end 2021, the gross accrual for litigation costs amounted to $1.8 million and $1.4 million, respectively. 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 in the consolidated balance sheet. At first quarter-end 2022, the related insurance receivables amounted to $0.6 million. At year-end 2021, there were no related insurance receivables. The Company estimates the aggregate range of reasonably possible losses, in excess of amounts accrued, is $0.5 million to $9.1 million as of first quarter-end 2022. This range includes matters where a liability has been accrued but it is reasonably possible that the ultimate loss may exceed the amount accrued and for matters where a loss is believed to be reasonably possible, but a liability has not been accrued. The aggregate range only represents matters in which we are currently able to estimate a range of loss and does not represent our maximum loss exposure. The estimated range is subject to significant judgment and a variety of assumptions and only based upon currently available information. For other matters, we are currently not able to estimate the reasonably possible loss or range of loss. While the ultimate outcome of these matters cannot be predicted with certainty, we believe that the resolution of any such proceedings will not have a material adverse effect on our financial condition, results of operations or cash flows. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Apr. 03, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In October 2021, the FASB issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, to require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations that occur after the effective date. We early adopted this standard in the first quarter of 2022 and the adoption did not have a material impact to our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 was effective for the Company in the first quarter of fiscal 2021. The adoption of this standard did not have a material impact to our consolidated financial statements. In January 2020, the FASB issued ASU 2020-01 which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The adoption of this standard did not have a material impact to our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 simplifying various aspects related to the accounting for income taxes. The guidance removes exceptions to the general principles in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The adoption of this standard did not have a material impact to our consolidated financial statements. Not Yet Adopted Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures. |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Revenue from services | $ 1,296.4 | $ 1,205.9 |
Cost of services | 1,037.8 | 992.6 |
Gross profit | 258.6 | 213.3 |
Selling, general and administrative expenses | 235.2 | 202.7 |
Earnings (loss) from operations | 23.4 | 10.6 |
Gain (loss) on investment in Persol Holdings | (67.2) | 30 |
Loss on currency translation from liquidation of subsidiary | (20.4) | 0 |
Other income (expense), net | 2.8 | (3.4) |
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | (61.4) | 37.2 |
Income tax expense (benefit) | (13) | 10.5 |
Net earnings (loss) before equity in net earnings (loss) of affiliate | (48.4) | 26.7 |
Equity in net earnings (loss) of affiliate | 0.8 | (1.1) |
Net earnings (loss) | $ (47.6) | $ 25.6 |
Basic earnings (loss) per share (in dollars per share) | $ (1.23) | $ 0.65 |
Diluted earnings (loss) per share (in dollars per share) | $ (1.23) | $ 0.64 |
Average shares outstanding (millions): | ||
Basic (in shares) | 38.6 | 39.3 |
Diluted (in shares) | 38.6 | 39.5 |
Service | ||
Revenue from services | $ 1,296.4 | $ 1,205.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ (47.6) | $ 25.6 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments, net of tax expense of $0.1 and $0.5, respectively | (9.9) | (13.6) |
Less: Reclassification adjustments included in net earnings (loss) - liquidation of Japan subsidiary | 20.4 | 0 |
Less: Reclassification adjustments included in net earnings (loss) - equity method investment and other | 2.5 | 0 |
Foreign currency translation adjustments | 13 | (13.6) |
Other comprehensive income (loss) | 13 | (13.6) |
Comprehensive income (loss) | $ (34.6) | $ 12 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax expense (benefit) | $ 0.1 | $ 0.5 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Current Assets | ||
Cash and equivalents | $ 230.3 | $ 112.7 |
Trade accounts receivable, less allowances of $12.2 and $12.6, respectively | 1,523.8 | 1,423.2 |
Prepaid expenses and other current assets | 72.2 | 52.8 |
Total current assets | 1,826.3 | 1,588.7 |
Property and equipment: | ||
Property and equipment | 201.9 | 205.1 |
Accumulated depreciation | (169.9) | (169.8) |
Net property and equipment | 32 | 35.3 |
Operating lease right-of-use assets | 71.8 | 75.8 |
Deferred taxes | 303.6 | 302.8 |
Goodwill | 155.8 | 114.8 |
Investment in Persol Holdings | 0 | 264.3 |
Investment in equity affiliate | 0 | 123.4 |
Other assets | 396.1 | 389.1 |
Total noncurrent assets | 959.3 | 1,305.5 |
Total Assets | 2,785.6 | 2,894.2 |
Current Liabilities | ||
Short-term borrowings | 0.2 | 0 |
Accounts payable and accrued liabilities | 711.6 | 687.2 |
Operating lease liabilities | 16.1 | 17.5 |
Accrued payroll and related taxes | 338.9 | 318.4 |
Accrued workers’ compensation and other claims | 20.4 | 20.8 |
Income and other taxes | 109.1 | 51.3 |
Total current liabilities | 1,196.3 | 1,095.2 |
Noncurrent Liabilities | ||
Operating lease liabilities | 58.7 | 61.4 |
Accrued payroll and related taxes | 0 | 57.6 |
Accrued workers’ compensation and other claims | 36.4 | 37 |
Accrued retirement benefits | 205.1 | 220 |
Other long-term liabilities | 15.6 | 86.8 |
Total noncurrent liabilities | 315.8 | 462.8 |
Commitments and contingencies (see Contingencies footnote) | ||
Treasury stock, at cost | ||
Paid-in capital | 22.8 | 23.9 |
Earnings invested in the business | 1,239.9 | 1,315 |
Accumulated other comprehensive income (loss) | (14.7) | (27.7) |
Total stockholders’ equity | 1,273.5 | 1,336.2 |
Total Liabilities and Stockholders’ Equity | 2,785.6 | 2,894.2 |
Class A Common Stock | ||
Capital stock, $1.00 par value | ||
Common stock, value | 35.1 | 36.7 |
Treasury stock, at cost | ||
Treasury stock, value | (12.4) | (14.5) |
Class B Common Stock | ||
Capital stock, $1.00 par value | ||
Common stock, value | 3.4 | 3.4 |
Treasury stock, at cost | ||
Treasury stock, value | $ (0.6) | $ (0.6) |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Allowance for trade accounts receivables | $ 12.2 | $ 12.6 |
Class A Common Stock | ||
Capital stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 100 | 100 |
Common stock, shares issued (in shares) | 35.1 | 36.7 |
Treasury stock, common stock (in shares) | 0.6 | 0.7 |
Class B Common Stock | ||
Capital stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 10 | 10 |
Common stock, shares issued (in shares) | 3.4 | 3.4 |
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 StockCapital Stock, Class A 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 (Loss) |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jan. 03, 2021 | $ 36.7 | $ 3.4 | $ (16.5) | $ (0.6) | $ 21.3 | $ 1,162.9 | $ (4.2) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net issuance of stock awards | 1.4 | 0 | (0.7) | ||||||
Net earnings (loss) | $ 25.6 | 25.6 | |||||||
Dividends | 0 | ||||||||
Other comprehensive income (loss), net of tax | (13.6) | (13.6) | |||||||
Share retirement | $ 0 | 0 | |||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 04, 2021 | 1,215.7 | 36.7 | 3.4 | (15.1) | (0.6) | 20.6 | 1,188.5 | (17.8) | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Earnings invested in the business | 1,315 | ||||||||
Stockholders' Equity Attributable to Parent, Beginning Balance at Jan. 02, 2022 | 1,336.2 | 36.7 | 3.4 | (14.5) | (0.6) | 23.9 | 1,315 | (27.7) | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net issuance of stock awards | 2.1 | 0 | (1.1) | ||||||
Net earnings (loss) | (47.6) | (47.6) | |||||||
Dividends | (1.9) | ||||||||
Other comprehensive income (loss), net of tax | 13 | 13 | |||||||
Share retirement | (1.6) | (25.6) | |||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 03, 2022 | 1,273.5 | $ 35.1 | $ 3.4 | $ (12.4) | $ (0.6) | $ 22.8 | $ 1,239.9 | $ (14.7) | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Earnings invested in the business | $ 1,239.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (47.6) | $ 25.6 |
Adjustments to reconcile net earnings (loss) to net cash from operating activities: | ||
Depreciation and amortization | 7.5 | 5.9 |
Operating lease asset amortization | 5 | 5.2 |
Provision for credit losses and sales allowances | 0.8 | (0.1) |
Stock-based compensation | 2.1 | 1.4 |
(Gain) loss on investment in Persol Holdings | 67.2 | (30) |
Loss on currency translation from liquidation of subsidiary | 20.4 | 0 |
Gain on foreign currency remeasurement | (5.5) | 0 |
Equity in net (earnings) loss of PersolKelly Pte. Ltd. | (0.8) | 1.1 |
Other, net | 0.8 | 1.3 |
Changes in operating assets and liabilities, net of acquisitions | (156) | 0.1 |
Net cash (used in) from operating activities | (106.1) | 10.5 |
Cash flows from investing activities: | ||
Capital expenditures | (1.7) | (2.7) |
Acquisition of companies, net of cash received | (58.3) | 0 |
Proceeds from company-owned life insurance | 0 | 10.4 |
Proceeds from sale of Persol Holdings investment | 196.9 | 0 |
Proceeds from sale of equity method investment | 119.5 | 0 |
Other investing activities | 0.7 | 0.2 |
Net cash from investing activities | 257.1 | 7.9 |
Cash flows from financing activities: | ||
Net change in short-term borrowings | 0.2 | 0.8 |
Financing lease payments | (0.3) | (0.2) |
Dividend payments | (1.9) | 0 |
Payments of tax withholding for stock awards | (0.8) | (0.5) |
Buyback of common shares | (27.2) | 0 |
Contingent consideration payments | (0.7) | 0 |
Net cash (used in) from financing activities | (30.7) | 0.1 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (1.7) | (1.4) |
Net change in cash, cash equivalents and restricted cash | 118.6 | 17.1 |
Cash, cash equivalents and restricted cash at beginning of period | 119.5 | 228.1 |
Cash, cash equivalents and restricted cash at end of period | 238.1 | 245.2 |
Cash and cash equivalents | 230.3 | 239.4 |
Restricted cash included in prepaid expenses and other current assets | 0.4 | 0.2 |
Restricted cash included in other assets | $ 7.4 | $ 5.6 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Apr. 03, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 2, 2022, the Company acquired 100% of the membership interests of Pediatric Therapeutic Services for $82.1 million of cash, subject to working capital adjustments. Pediatric Therapeutic Services is a specialty firm that provides and manages various state and federally mandated in-school therapy services and will be included in our Education segment. The related acquisition costs incurred through the end of the first quarter, which are included in other income (expense), net in the consolidated statements of earnings, were $0.3 million. The initial accounting for the business combination is incomplete at the time of this filing due to the limited amount of time since the acquisition date and the ongoing status of the valuation. Therefore, it is impracticable for the Company to provide the major classes of assets acquired and liabilities assumed or pro forma revenue and earnings. Subsequent to the end of the first quarter, Management initiated plans to actively explore an orderly transition of our operations in Russia in full compliance with International and Russian law. Such a transition may result in a loss up to the carrying value of our net assets in Russia. As of the end of the first quarter of 2022, assets in Russia totaled $28.4 million, liabilities totaled $13.0 million and accumulated other comprehensive loss totaled $10.1 million. For the year ended January 2, 2022, revenue in Russia was $132.2 million and earnings from operations were $5.3 million. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 03, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe 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 January 2, 2022, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 17, 2022 (the 2021 consolidated financial statements). There were no changes in accounting policies as disclosed in the Form 10-K, with the exception of those described in the New Accounting Pronouncements footnote. The Company’s first fiscal quarter ended on April 3, 2022 (2022) and April 4, 2021 (2021), each of which contained 13 weeks. |
Revenue
Revenue | 3 Months Ended |
Apr. 03, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Disaggregated by Service Type Kelly has five operating segments: Professional & Industrial (“P&I”), Science, Engineering & Technology (“SET”), Education, Outsourcing & Consulting Group ("Outsourcing & Consulting," "OCG") and International. Other than OCG, each segment delivers talent through staffing services, permanent placement or outcome-based services. Our OCG segment delivers talent solutions including managed service provider ("MSP"), payroll process outsourcing ("PPO"), recruitment process outsourcing ("RPO"), and talent advisory services. International also delivers RPO talent solutions within its local markets. The following table presents our segment revenues disaggregated by service type (in millions of dollars): First Quarter 2022 2021 Professional & Industrial Staffing services $ 334.9 $ 352.5 Permanent placement 10.2 4.9 Outcome-based services 99.2 110.2 Total Professional & Industrial 444.3 467.6 Science, Engineering & Technology Staffing services 220.6 186.2 Permanent placement 8.0 4.8 Outcome-based services 88.5 63.7 Total Science, Engineering & Technology 317.1 254.7 Education Staffing services 171.9 110.8 Permanent placement 1.5 0.8 Total Education 173.4 111.6 Outsourcing & Consulting Talent solutions 109.1 99.3 Total Outsourcing & Consulting 109.1 99.3 International Staffing services 241.7 265.6 Permanent placement 6.9 5.5 Talent solutions 4.2 1.8 Total International 252.8 272.9 Total Intersegment (0.3) (0.2) Total Revenue from Services $ 1,296.4 $ 1,205.9 Revenue Disaggregated by Geography Our operations are subject to different economic and regulatory environments depending on geographic location. Our P&I and Education segments operate in the Americas region, our SET segment operates in the Americas and Europe regions, and OCG operates in the Americas, Europe and Asia-Pacific regions. The International segment includes Europe and our Mexico operations, which are included in the Americas region. The below table presents our revenues disaggregated by geography (in millions of dollars): First Quarter 2022 2021 Americas United States $ 956.6 $ 858.5 Canada 39.1 34.1 Puerto Rico 27.6 24.2 Mexico 10.3 34.6 Total Americas Region 1,033.6 951.4 Europe Switzerland 55.0 52.7 France 54.6 54.3 Portugal 41.9 43.7 Russia 29.7 32.6 Italy 19.5 18.1 United Kingdom 15.0 17.0 Other 36.3 27.8 Total Europe Region 252.0 246.2 Total Asia-Pacific Region 10.8 8.3 Total Kelly Services, Inc. $ 1,296.4 $ 1,205.9 The below table presents our SET, OCG and International segment revenues disaggregated by geographic region (in millions of dollars): First Quarter 2022 2021 Science, Engineering & Technology Americas $ 313.8 $ 253.2 Europe 3.3 1.5 Total Science, Engineering & Technology $ 317.1 $ 254.7 Outsourcing & Consulting Americas $ 92.3 $ 84.8 Europe 6.0 6.2 Asia-Pacific 10.8 8.3 Total Outsourcing & Consulting $ 109.1 $ 99.3 International Americas $ 10.1 $ 34.3 Europe 242.7 238.6 Total International $ 252.8 $ 272.9 Deferred Costs Deferred fulfillment costs, which are included in prepaid expenses and other current assets in the consolidated balance sheet, were $1.7 million as of first quarter-end 2022 and $1.3 million as of year-end 2021. Amortization expense for the deferred costs for the first quarter of 2022 was $1.9 million and in the first quarter of 2021 was $6.8 million. |
Credit Losses
Credit Losses | 3 Months Ended |
Apr. 03, 2022 | |
Credit Loss [Abstract] | |
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): First Quarter 2022 2021 Allowance for credit losses: Beginning balance $ 9.4 $ 9.8 Current period provision 0.4 (0.2) Currency exchange effects (0.1) (0.2) Write-offs (1.2) (0.3) Ending balance $ 8.5 $ 9.1 Write-offs are presented net of recoveries, which were not material for first quarter-end 2022 and 2021. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 03, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions In the first quarter of 2022, the Company acquired Rocket Power Holdings LLC and Rocket Power Ops LLC (collectively, "RocketPower"), as detailed below. In the second quarter of 2021, the Company acquired Softworld, Inc. ("Softworld"), as detailed below. RocketPower On March 7, 2022, the Company acquired 100% of the issued and outstanding membership interests of RocketPower for a purchase price of $59.3 million. RocketPower is a leading provider of RPO and other outsourced talent solutions to U.S. high-tech companies. This acquisition will expand OCG's RPO solution and delivery offering and enhance the specialty RPO strategy and expertise within the high-tech industry. Under terms of the purchase agreement, the purchase price was adjusted for cash held by RocketPower at the closing date and estimated working capital adjustments resulting in the Company paying cash of $61.8 million. Total consideration includes $1.1 million of additional consideration that is payable to the seller in 2023 related to employee retention credits and contingent consideration with an estimated fair value of $0.6 million related to an earnout payment with a maximum potential cash payment of $31.8 million in the event certain financial metrics are met per the terms of the agreement. The initial fair value of the earnout was established using a Black Scholes model (see Fair Value Measurements footnote). The earnout is expected to be paid in 2023 and 2024 after each earn-out year pursuant to the terms of the purchase agreement. The total consideration is as follows (in millions of dollars): Cash consideration paid $ 61.8 Additional consideration payable 1.1 Contingent consideration 0.6 Total consideration $ 63.5 Due to the limited amount of time that has passed since acquiring RocketPower, the purchase price allocation for this acquisition is preliminary and could change. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition (in millions of dollars): Cash $ 3.5 Trade accounts receivable 6.9 Prepaid expenses and other current assets 1.8 Net property and equipment 0.1 Goodwill 41.0 Intangibles 15.8 Accounts payable and accrued liabilities, current (2.9) Accrued payroll and related taxes, current (1.5) Other long-term liabilities (1.2) Total consideration, including working capital adjustments $ 63.5 The fair value of the acquired receivables represents the contractual value. Included in the assets purchased in the RocketPower acquisition was $15.8 million of intangible assets, made up of $7.5 million in customer relationships, $6.6 million associated with RocketPower's trade names and $1.7 million for non-compete agreements. Customer relationships will be amortized over three years with no residual value, trade names will be amortized over 10 years with no residual value, and the non-compete agreements will be amortized over six years with no residual value. Goodwill generated from the acquisition was primarily attributable to expected synergies from combining operations and expanding market potential and was assigned to the OCG operating segment (see Goodwill footnote). The amount of goodwill expected to be deductible for tax purposes is approximately $28.0 million. RocketPower's results of operations will be included in the OCG segment in 2022 on a one-month lag. Accordingly, for the first quarter-end 2022, our consolidated revenues and net earnings did not include any results from RocketPower. Pro forma results of operations for this acquisition have not been presented as it is not material to the consolidated statements of earnings. Softworld On April 5, 2021, the Company acquired 100% of the shares of Softworld for a purchase price of $215.0 million. Softworld is a leading technology staffing and workforce solutions firm that serves clients across several end-markets, including financial services, life sciences, aerospace, defense, insurance, retail and IT consulting. This acquisition is intended to expand our capabilities, scale and solution set in our technology specialty. Under terms of the purchase agreement, the purchase price was adjusted for cash held by Softworld at the closing date and estimated working capital adjustments resulting in the Company paying cash of $220.4 million. Total consideration includes $2.6 million of additional consideration that is payable to the seller in 2022. In the third quarter of 2021, the Company received cash for a post-close working capital adjustment of $6.0 million. The total consideration is as follows (in millions of dollars): Cash consideration paid $ 220.4 Additional consideration payable 2.6 Net working capital adjustment (6.0) Total consideration $ 217.0 As of first quarter-end 2022, the purchase price allocation for this acquisition is final. Our consolidated revenue from services and earnings from operations for the first quarter of 2022 included $37.9 million and $3.5 million, respectively, from Softworld. Goodwill generated from the acquisition was primarily attributable to expanding market potential and the expected revenue synergies and was assigned to the SET operating segment (see Goodwill footnote). All of the goodwill is expected to be deductible for tax purposes. |
Investment in Persol Holdings
Investment in Persol Holdings | 3 Months Ended |
Apr. 03, 2022 | |
Investment in Persol Holdings [Abstract] | |
Investment in Persol Holdings | Investment in Persol Holdings Prior to February 2022, the Company had a yen-denominated investment through the Company's subsidiary, Kelly Services Japan, Inc., in the common stock of Persol Holdings Co., Ltd. ("Persol Holdings"), the 100% owner of Persol Asia Pacific Pte. Ltd., the Company’s joint venture partner in PersolKelly Pte. Ltd. (the "JV"). In February 2022, the Company's board approved a series of transactions that ended the cross-shareholding agreement with Persol Holdings. On February 14, 2022, the Company repurchased 1,576,169 Class A and 1,475 Class B common shares held by Persol Holdings for $27.2 million. The purchase price was based on the average closing price of the last five business days prior to the transaction. The shares were subsequently retired and returned to an authorized, unissued status. In accordance with the Company's policy, the amount paid to repurchase the shares in excess of par value of $25.6 million was recorded to earnings invested in the business on the consolidated balance sheet at the time of the share retirement. On February 15, 2022, Kelly Services Japan, Inc. sold the investment in the common stock of Persol Holdings in an open-market transaction for proceeds of $196.9 million, net of transaction fees. As our investment was a noncontrolling interest in Persol Holdings, the investment was recorded at fair value based on the quoted market price of Persol Holdings stock on the Tokyo Stock Exchange through the date of the transaction (see Fair Value Measurements footnote). The $67.2 million loss in the first quarter of 2022 recorded in gain (loss) on investment in Persol Holdings in the consolidated statements of earnings included $52.4 million for losses related to changes in fair value up to the date of the transaction and $14.8 million for the discount from the market price on the date of the sale and transaction costs. The gain on the investment of $30.0 million in the first quarter 2021 was recorded in gain (loss) on investment in Persol Holdings in the consolidated statements of earnings. Subsequent to the transaction discussed above, the Company commenced the dissolution process of its Kelly Services Japan, Inc. subsidiary, which was considered substantially liquidated as of first quarter-end 2022. As a result, the Company recognized a $20.4 million cumulative translation adjustment loss in the first quarter of 2022, which is recorded in loss on currency translation from liquidation of subsidiary in the consolidated statements of earnings. The Company also recognized a $5.5 million foreign exchange gain related to U.S.-denominated cash equivalents held by Kelly Services Japan, Inc. following the sale of the Persol Holdings shares and prior to a dividend payment to the Company in the first quarter of 2022. The foreign exchange gain is recorded in other income (expense), net in the consolidated statements of earnings. |
Investment in PersolKelly Pte L
Investment in PersolKelly Pte Ltd. | 3 Months Ended |
Apr. 03, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in PersolKelly Pte Ltd. | Investment in PersolKelly Pte. Ltd. Prior to February 2022, the Company had a 49% ownership interest in the JV (see Investment in Persol Holdings footnote above), a staffing services business operating in ten geographies in the Asia-Pacific region. On February 14, 2022, the Company entered into an agreement to sell 95% of the Company's shares in the JV to Persol Asia Pacific Pte. Ltd. On March 1, 2022, the Company received cash proceeds of $119.5 million. The carrying value of the shares sold was $117.6 million. In addition, the Company had $1.9 million of accumulated other comprehensive income representing the Company's share of the JV's other comprehensive income over time related to the shares sold that was realized upon the sale, offsetting the $1.9 million gain that resulted from the proceeds in excess of the carrying value. The operating results of the Company’s interest in the JV were accounted for on a one-quarter lag under the equity method and were reported in equity in net earnings (loss) of affiliate in the consolidated statements of earnings through the date of the sale. Such amounts were earnings of $0.8 million in the first quarter of 2022 and a loss of $1.1 million in the first quarter of 2021. After the sale, the Company has a 2.5% ownership interest in the JV and has discontinued its use of equity method accounting. The remaining investment will be accounted for as an equity investment without a readily determinable fair value (see Fair Value Measurements footnote). The equity investment, included in other assets on the Company’s consolidated balance sheet, totaled $6.4 million as of first quarter-end 2022 and the investment in equity affiliate on the Company's consolidated balance sheet totaled $123.4 million as of year-end 2021. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Trade accounts receivable, short-term borrowings, accounts payable, accrued liabilities and accrued payroll and related taxes approximate their fair values due to the short-term maturities of these assets and liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities measured at fair value on a recurring basis as of first quarter-end 2022 and year-end 2021 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. As of First Quarter-End 2022 Description Total Level 1 Level 2 Level 3 (In millions of dollars) Money market funds $ 122.3 $ 122.3 $ — $ — Investment in Persol Holdings — — — — Total assets at fair value $ 122.3 $ 122.3 $ — $ — Brazil indemnification $ (2.9) $ — $ — $ (2.9) Greenwood/Asher earnout (2.3) — — (2.3) RocketPower earnout (0.6) — — (0.6) Total liabilities at fair value $ (5.8) $ — $ — $ (5.8) As of Year-End 2021 Description Total Level 1 Level 2 Level 3 (In millions of dollars) Money market funds $ 96.3 $ 96.3 $ — $ — Investment in Persol Holdings 264.3 264.3 — — Total assets at fair value $ 360.6 $ 360.6 $ — $ — Brazil indemnification $ (2.4) $ — $ — $ (2.4) Greenwood/Asher earnout (4.6) — — (4.6) Total liabilities at fair value $ (7.0) $ — $ — $ (7.0) Money market funds represent investments in money market funds that hold government securities, of which $7.3 million as of first quarter-end 2022 and $6.5 million as of year-end 2021, 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 2022 and year-end 2021 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. On February 15, 2022, Kelly Services Japan, Inc. sold the investment in the common stock of Persol Holdings in an open-market transaction. The valuation of the investment was based on the quoted market price of Persol Holdings stock on the Tokyo Stock Exchange as of year-end 2021, and the related changes in fair value were recorded in the consolidated statements of earnings (see Investment in Persol Holdings footnote). The cost of this yen-denominated investment, which fluctuated based on foreign exchange rates, was $18.0 million at year-end 2021. As of first quarter-end 2022 and year-end 2021, the Company had an indemnification liability of $2.9 million and $2.4 million, respectively, in other long-term liabilities on 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 2022, the Company recognized an increase of $0.5 million to the indemnification liability related to exchange rate fluctuations in other income (expense), net in the consolidated statements of earnings. The Company recorded an earnout liability relating to the 2020 acquisition of Greenwood/Asher, totaling $2.3 million at first quarter-end 2022 in accounts payable and accrued liabilities and $4.6 million at year-end 2021 with $2.3 million in accounts payable and accrued liabilities and $2.3 million in other long-term liabilities in the consolidated balance sheet. The initial valuation of the earnout liability was established using a Black Scholes model and represented the fair value and is considered a Level 3 liability. During the first quarter of 2022, the Company paid the year one portion of the earnout totaling $2.3 million. In the consolidated statements of cash flows, $0.7 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. The Company recorded an earnout liability relating to the 2022 acquisition of RocketPower, totaling $0.6 million at first quarter-end 2022 with $0.5 million in accounts payable and accrued liabilities and $0.1 million in other long-term liabilities in the consolidated balance sheet (see Acquisitions footnote). The maximum total cash payments which may be due related to the earnout liability is $31.8 million. The initial valuation of the earnout liability was established using a Black Scholes model and represents the fair value and is considered a Level 3 liability. Equity Investment Without Readily Determinable Fair Value On March 1, 2022, the Company sold the majority of its investment in the JV (see Investment in PersolKelly Pte. Ltd. footnote), with the remaining 2.5% interest now being 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 sale of the shares of the JV represented an observable transaction requiring the Company to calculate the current fair value based on the purchase price of the shares, in which the resulting adjustment was not material. The investment totaled $6.4 million as of first quarter-end 2022, representing total cost plus observable price changes to date. Prior to April 2021, the Company had a minority investment in Business Talent Group, LLC, which was included in other assets in the consolidated balance sheet. The investment was also measured using the measurement alternative for equity investments without a readily determinable fair value as described above. In the second quarter of 2021, BTG entered into a merger agreement which resulted in all of the Company's shares of BTG being automatically canceled upon approval of the merger and resulted in the receipt of $5.0 million in cash, which was equal to the carrying value and purchase price of the BTG investment. Prior to March 2021, the Company had a minority investment in Kenzie Academy Inc., which was included in other assets in the consolidated balance sheet. The investment was also measured using the measurement alternative for equity investments without a readily determinable fair value as described above. On March 8, 2021, Kenzie entered into a transaction to sell its assets. As of the date of the sale, the investment had a carrying value of $1.4 million, representing total cost plus observable price changes to date. In the first quarter of 2021, the asset was written down as a result of the sale and the loss of $1.4 million was recorded in other income (expense), net in the consolidated statements of earnings. |
Restructuring
Restructuring | 3 Months Ended |
Apr. 03, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the first quarter of 2022, the Company took restructuring actions designed to increase efficiency. There were no restructuring charges incurred in the first quarter of 2021. Restructuring costs incurred in the first quarter of 2022 totaled $1.7 million and were recorded entirely in SG&A expenses in the consolidated statements of earnings, as detailed below (in millions of dollars): Severance Costs Lease Termination Costs Total Professional & Industrial $ 0.1 $ 0.2 $ 0.3 Education 0.4 — 0.4 Outsourcing & Consulting 0.2 — 0.2 Corporate 0.8 — 0.8 Total $ 1.5 $ 0.2 $ 1.7 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): Balance as of year-end 2021 $ 2.9 Additions charged to Professional & Industrial 0.3 Additions charged to Outsourcing & Consulting 0.2 Additions charged to Education 0.4 Additions charged to Corporate 0.8 Reductions for cash payments related to all restructuring activities (2.0) Balance as of first quarter-end 2022 $ 2.6 The remaining balance of $2.6 million as of first quarter-end 2022 primarily represents severance costs, and the majority is expected to be paid by second quarter-end 2022. No material adjustments are expected to be recorded. |
Goodwill
Goodwill | 3 Months Ended |
Apr. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill as of first quarter-end 2022 are included in the table below. The goodwill resulting from the acquisition of RocketPower during the first quarter of 2022 (see Acquisitions footnote) was allocated to the OCG reportable segment. As of Additions to Goodwill Impairment Adjustments As of First (In millions of dollars) Science, Engineering & Technology $ 111.3 $ — $ — $ 111.3 Education 3.5 — — 3.5 Outsourcing & Consulting — 41.0 — 41.0 Total $ 114.8 $ 41.0 $ — $ 155.8 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Apr. 03, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
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 2022 and 2021 are included in the table below. Amounts in parentheses indicate debits. Reclassification adjustments out of accumulated other comprehensive income (loss) related to the liquidation of the Japan subsidiary, as shown in the table below, were recorded in the loss on currency translation from liquidation of subsidiary line item in the consolidated statements of earnings. Reclassification adjustments out of accumulated other comprehensive income (loss) related to the equity method investment and other, as shown in the table below, which includes $1.9 million related to the investment in PersolKelly Pte. Ltd., were recorded in the other income (expense), net line item in the consolidated statement of earnings. See Investment in PersolKelly Pte. Ltd. footnote for more details. First Quarter 2022 2021 (In millions of dollars) Foreign currency translation adjustments: Beginning balance $ (25.0) $ (0.8) Other comprehensive income (loss) before reclassifications (9.9) (13.6) Amounts reclassified from accumulated other comprehensive income (loss) - liquidation of Japan subsidiary 20.4 — Amounts reclassified from accumulated other comprehensive income (loss) - equity method investment and other 2.5 — Net current-period other comprehensive income (loss) 13.0 (13.6) Ending balance (12.0) (14.4) Pension liability adjustments: Beginning balance (2.7) (3.4) Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) — — Net current-period other comprehensive income (loss) — — Ending balance (2.7) (3.4) Total accumulated other comprehensive income (loss) $ (14.7) $ (17.8) |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Apr. 03, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The reconciliation of basic and diluted earnings (loss) per share on common stock for the first quarter 2022 and 2021 follows (in millions of dollars except per share data): First Quarter 2022 2021 Net earnings (loss) $ (47.6) $ 25.6 Less: earnings allocated to participating securities — (0.2) Net earnings (loss) available to common shareholders $ (47.6) $ 25.4 Average shares outstanding (millions): Basic 38.6 39.3 Dilutive share awards — 0.2 Diluted 38.6 39.5 Basic earnings (loss) per share $ (1.23) $ 0.65 Diluted earnings (loss) per share $ (1.23) $ 0.64 Potentially dilutive shares outstanding are primarily related to deferred common stock related to the non-employee directors deferred compensation plan for the first quarter of 2021. Dividends paid per share for Class A and Class B common stock were $0.05 for the first quarter 2022 and $0.00 for the first quarter 2021. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 03, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation For the first quarter of 2022, the Company recognized stock compensation expense of $2.1 million, and a related tax benefit of $0.3 million. For the first quarter of 2021, the Company recognized stock compensation expense of $1.4 million, and a related tax benefit of $0.1 million. Performance Shares During the first quarter of 2022, 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, which will be satisfied with the issuance of shares out of treasury stock, 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: 2022, 2023 and 2024, 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 2025 after approval of the financial results by the Compensation Committee, if not forfeited by the recipient. No dividends are paid on these performance shares. A summary of the status of all nonvested performance shares at target as of first quarter-end 2022 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 2019 and a portion of the 2021 financial measure performance shares that did not vest because actual achievement was below the threshold level and resulted in no payout. Financial Measure Shares Weighted Average Grant Date Fair Value Nonvested at year-end 2021 708 $ 20.03 Granted 186 21.19 Vested (48) 22.55 Forfeited (6) 16.81 Vesting adjustment (142) 24.45 Nonvested at first quarter-end 2022 698 $ 19.39 Restricted Stock A summary of the status of nonvested restricted stock as of first quarter-end 2022 and changes during this period is presented as follows below (in thousands of shares except per share data). Shares Weighted Average Grant Date Fair Value Nonvested at year-end 2021 403 $ 21.24 Granted 259 21.74 Vested (96) 22.34 Forfeited (22) 22.43 Nonvested at first quarter-end 2022 544 $ 21.24 |
Other Income (Expense), Net
Other Income (Expense), Net | 3 Months Ended |
Apr. 03, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Included in other income (expense), net for the first quarter 2022 and 2021 are the following: First Quarter 2022 2021 (In millions of dollars) Interest income $ 0.1 $ 0.1 Interest expense (0.6) (0.6) Foreign exchange gains (losses) 4.7 (0.2) Other (1.4) (2.7) Other income (expense), net $ 2.8 $ (3.4) Included in foreign exchange gains (losses) for the first quarter of 2022 is a $5.5 million foreign exchange gain on a U.S. dollar-denominated cash balance held by the Company's Japan entity (see Investment in Persol Holdings footnote). Included in Other for the first quarter of 2021 is a loss from the sale of the assets related to our minority investment in Kenzie Academy (see Fair Value Measurements footnote) and transaction-related expenses from the April 2021 acquisition of Softworld (see Acquisitions footnote). |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit was $13.0 million for the first quarter of 2022 and income tax expense was $10.5 million for the first quarter of 2021. These amounts were impacted by changes in the fair value of the Company's investment in Persol Holdings, which resulted in a benefit of $18.4 million and a charge of $9.2 million for the first quarter of 2022 and 2021, respectively. The quarterly amounts are also impacted by changes in earnings from operations. Our tax expense is affected by recurring items, such as the amount of pretax income and its mix by jurisdiction, U.S. work opportunity credits and the change in cash surrender value of tax exempt investments in life insurance policies. It is also affected by discrete items that may occur in any given period but are not consistent from period to period, such as tax law changes, changes in judgment regarding the realizability of deferred tax assets, the tax effects of stock compensation, and changes in the fair value of the Company's investment in Persol Holdings, which are treated as discrete since they cannot be estimated. The 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. At this time, we have no valuation allowance against our Mexican deferred tax asset of $3.9 million, though it is possible this may change as we continue to assess the impacts of the new labor laws effective as of the third quarter of 2021 on our Mexican business operations throughout the remainder of the year. |
Segment Disclosures
Segment Disclosures | 3 Months Ended |
Apr. 03, 2022 | |
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 five reportable segments, (1) Professional & Industrial, (2) Science, Engineering & Technology, (3) Education, (4) Outsourcing & Consulting, and (5) International, reflect the specialty services the Company provides to customers and represent how the business is organized internally. Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services. 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 (loss) before taxes and equity in net earnings (loss) of affiliate, for the first quarter 2022 and 2021. 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. First Quarter 2022 2021 (In millions of dollars) Revenue from Services: Professional & Industrial $ 444.3 $ 467.6 Science, Engineering & Technology 317.1 254.7 Education 173.4 111.6 Outsourcing & Consulting 109.1 99.3 International 252.8 272.9 Less: Intersegment revenue (0.3) (0.2) Consolidated Total $ 1,296.4 $ 1,205.9 First Quarter 2022 2021 (In millions of dollars) Earnings (loss) from Operations: Professional & Industrial gross profit $ 83.1 $ 75.9 Professional & Industrial SG&A expenses (71.4) (69.4) Professional & Industrial earnings (loss) from operations 11.7 6.5 Science, Engineering & Technology gross profit 73.8 53.2 Science, Engineering & Technology SG&A expenses (53.2) (35.7) Science, Engineering & Technology earnings (loss) from operations 20.6 17.5 Education gross profit 26.6 17.2 Education SG&A expenses (18.6) (14.2) Education earnings (loss) from operations 8.0 3.0 Outsourcing & Consulting gross profit 37.3 31.3 Outsourcing & Consulting SG&A expenses (34.3) (28.4) Outsourcing & Consulting earnings (loss) from operations 3.0 2.9 International gross profit 37.8 35.7 International SG&A expenses (33.2) (33.1) International earnings (loss) from operations 4.6 2.6 Corporate (24.5) (21.9) Consolidated Total 23.4 10.6 Gain (loss) on investment in Persol Holdings (67.2) 30.0 Loss on currency translation from liquidation of subsidiary (20.4) — Other income (expense), net 2.8 (3.4) Earnings (loss) before taxes and equity in net earnings (loss) of affiliate $ (61.4) $ 37.2 Depreciation and amortization expense included in SG&A expenses by segment above are as follows: First Quarter 2022 2021 (In millions of dollars) Depreciation and amortization: Professional & Industrial $ 1.1 $ 1.4 Science, Engineering & Technology 3.1 1.0 Education 0.8 1.0 Outsourcing & Consulting 0.2 0.2 International 0.5 0.5 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Apr. 03, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted In October 2021, the FASB issued Accounting Standards Update ("ASU") 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, to require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations that occur after the effective date. We early adopted this standard in the first quarter of 2022 and the adoption did not have a material impact to our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 was effective for the Company in the first quarter of fiscal 2021. The adoption of this standard did not have a material impact to our consolidated financial statements. In January 2020, the FASB issued ASU 2020-01 which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The adoption of this standard did not have a material impact to our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 simplifying various aspects related to the accounting for income taxes. The guidance removes exceptions to the general principles in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The adoption of this standard did not have a material impact to our consolidated financial statements. Not Yet Adopted 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. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our segment revenues disaggregated by service type (in millions of dollars): First Quarter 2022 2021 Professional & Industrial Staffing services $ 334.9 $ 352.5 Permanent placement 10.2 4.9 Outcome-based services 99.2 110.2 Total Professional & Industrial 444.3 467.6 Science, Engineering & Technology Staffing services 220.6 186.2 Permanent placement 8.0 4.8 Outcome-based services 88.5 63.7 Total Science, Engineering & Technology 317.1 254.7 Education Staffing services 171.9 110.8 Permanent placement 1.5 0.8 Total Education 173.4 111.6 Outsourcing & Consulting Talent solutions 109.1 99.3 Total Outsourcing & Consulting 109.1 99.3 International Staffing services 241.7 265.6 Permanent placement 6.9 5.5 Talent solutions 4.2 1.8 Total International 252.8 272.9 Total Intersegment (0.3) (0.2) Total Revenue from Services $ 1,296.4 $ 1,205.9 The below table presents our revenues disaggregated by geography (in millions of dollars): First Quarter 2022 2021 Americas United States $ 956.6 $ 858.5 Canada 39.1 34.1 Puerto Rico 27.6 24.2 Mexico 10.3 34.6 Total Americas Region 1,033.6 951.4 Europe Switzerland 55.0 52.7 France 54.6 54.3 Portugal 41.9 43.7 Russia 29.7 32.6 Italy 19.5 18.1 United Kingdom 15.0 17.0 Other 36.3 27.8 Total Europe Region 252.0 246.2 Total Asia-Pacific Region 10.8 8.3 Total Kelly Services, Inc. $ 1,296.4 $ 1,205.9 The below table presents our SET, OCG and International segment revenues disaggregated by geographic region (in millions of dollars): First Quarter 2022 2021 Science, Engineering & Technology Americas $ 313.8 $ 253.2 Europe 3.3 1.5 Total Science, Engineering & Technology $ 317.1 $ 254.7 Outsourcing & Consulting Americas $ 92.3 $ 84.8 Europe 6.0 6.2 Asia-Pacific 10.8 8.3 Total Outsourcing & Consulting $ 109.1 $ 99.3 International Americas $ 10.1 $ 34.3 Europe 242.7 238.6 Total International $ 252.8 $ 272.9 |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
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): First Quarter 2022 2021 Allowance for credit losses: Beginning balance $ 9.4 $ 9.8 Current period provision 0.4 (0.2) Currency exchange effects (0.1) (0.2) Write-offs (1.2) (0.3) Ending balance $ 8.5 $ 9.1 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Business Combinations [Abstract] | |
Business Combination, Schedule of Purchase Price | The total consideration is as follows (in millions of dollars): Cash consideration paid $ 61.8 Additional consideration payable 1.1 Contingent consideration 0.6 Total consideration $ 63.5 Cash consideration paid $ 220.4 Additional consideration payable 2.6 Net working capital adjustment (6.0) Total consideration $ 217.0 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition (in millions of dollars): Cash $ 3.5 Trade accounts receivable 6.9 Prepaid expenses and other current assets 1.8 Net property and equipment 0.1 Goodwill 41.0 Intangibles 15.8 Accounts payable and accrued liabilities, current (2.9) Accrued payroll and related taxes, current (1.5) Other long-term liabilities (1.2) Total consideration, including working capital adjustments $ 63.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on Recurring Basis | As of First Quarter-End 2022 Description Total Level 1 Level 2 Level 3 (In millions of dollars) Money market funds $ 122.3 $ 122.3 $ — $ — Investment in Persol Holdings — — — — Total assets at fair value $ 122.3 $ 122.3 $ — $ — Brazil indemnification $ (2.9) $ — $ — $ (2.9) Greenwood/Asher earnout (2.3) — — (2.3) RocketPower earnout (0.6) — — (0.6) Total liabilities at fair value $ (5.8) $ — $ — $ (5.8) As of Year-End 2021 Description Total Level 1 Level 2 Level 3 (In millions of dollars) Money market funds $ 96.3 $ 96.3 $ — $ — Investment in Persol Holdings 264.3 264.3 — — Total assets at fair value $ 360.6 $ 360.6 $ — $ — Brazil indemnification $ (2.4) $ — $ — $ (2.4) Greenwood/Asher earnout (4.6) — — (4.6) Total liabilities at fair value $ (7.0) $ — $ — $ (7.0) |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring costs incurred in the first quarter of 2022 totaled $1.7 million and were recorded entirely in SG&A expenses in the consolidated statements of earnings, as detailed below (in millions of dollars): Severance Costs Lease Termination Costs Total Professional & Industrial $ 0.1 $ 0.2 $ 0.3 Education 0.4 — 0.4 Outsourcing & Consulting 0.2 — 0.2 Corporate 0.8 — 0.8 Total $ 1.5 $ 0.2 $ 1.7 |
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): Balance as of year-end 2021 $ 2.9 Additions charged to Professional & Industrial 0.3 Additions charged to Outsourcing & Consulting 0.2 Additions charged to Education 0.4 Additions charged to Corporate 0.8 Reductions for cash payments related to all restructuring activities (2.0) Balance as of first quarter-end 2022 $ 2.6 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Net Carrying Amount of Goodwill | The changes in the carrying amount of goodwill as of first quarter-end 2022 are included in the table below. The goodwill resulting from the acquisition of RocketPower during the first quarter of 2022 (see Acquisitions footnote) was allocated to the OCG reportable segment. As of Additions to Goodwill Impairment Adjustments As of First (In millions of dollars) Science, Engineering & Technology $ 111.3 $ — $ — $ 111.3 Education 3.5 — — 3.5 Outsourcing & Consulting — 41.0 — 41.0 Total $ 114.8 $ 41.0 $ — $ 155.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
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 2022 and 2021 are included in the table below. Amounts in parentheses indicate debits. Reclassification adjustments out of accumulated other comprehensive income (loss) related to the liquidation of the Japan subsidiary, as shown in the table below, were recorded in the loss on currency translation from liquidation of subsidiary line item in the consolidated statements of earnings. Reclassification adjustments out of accumulated other comprehensive income (loss) related to the equity method investment and other, as shown in the table below, which includes $1.9 million related to the investment in PersolKelly Pte. Ltd., were recorded in the other income (expense), net line item in the consolidated statement of earnings. See Investment in PersolKelly Pte. Ltd. footnote for more details. First Quarter 2022 2021 (In millions of dollars) Foreign currency translation adjustments: Beginning balance $ (25.0) $ (0.8) Other comprehensive income (loss) before reclassifications (9.9) (13.6) Amounts reclassified from accumulated other comprehensive income (loss) - liquidation of Japan subsidiary 20.4 — Amounts reclassified from accumulated other comprehensive income (loss) - equity method investment and other 2.5 — Net current-period other comprehensive income (loss) 13.0 (13.6) Ending balance (12.0) (14.4) Pension liability adjustments: Beginning balance (2.7) (3.4) Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) — — Net current-period other comprehensive income (loss) — — Ending balance (2.7) (3.4) Total accumulated other comprehensive income (loss) $ (14.7) $ (17.8) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | The reconciliation of basic and diluted earnings (loss) per share on common stock for the first quarter 2022 and 2021 follows (in millions of dollars except per share data): First Quarter 2022 2021 Net earnings (loss) $ (47.6) $ 25.6 Less: earnings allocated to participating securities — (0.2) Net earnings (loss) available to common shareholders $ (47.6) $ 25.4 Average shares outstanding (millions): Basic 38.6 39.3 Dilutive share awards — 0.2 Diluted 38.6 39.5 Basic earnings (loss) per share $ (1.23) $ 0.65 Diluted earnings (loss) per share $ (1.23) $ 0.64 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Performance Shares and Restricted Stock | A summary of the status of all nonvested performance shares at target as of first quarter-end 2022 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 2019 and a portion of the 2021 financial measure performance shares that did not vest because actual achievement was below the threshold level and resulted in no payout. Financial Measure Shares Weighted Average Grant Date Fair Value Nonvested at year-end 2021 708 $ 20.03 Granted 186 21.19 Vested (48) 22.55 Forfeited (6) 16.81 Vesting adjustment (142) 24.45 Nonvested at first quarter-end 2022 698 $ 19.39 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Performance Shares and Restricted Stock | A summary of the status of nonvested restricted stock as of first quarter-end 2022 and changes during this period is presented as follows below (in thousands of shares except per share data). Shares Weighted Average Grant Date Fair Value Nonvested at year-end 2021 403 $ 21.24 Granted 259 21.74 Vested (96) 22.34 Forfeited (22) 22.43 Nonvested at first quarter-end 2022 544 $ 21.24 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expense), Net | Included in other income (expense), net for the first quarter 2022 and 2021 are the following: First Quarter 2022 2021 (In millions of dollars) Interest income $ 0.1 $ 0.1 Interest expense (0.6) (0.6) Foreign exchange gains (losses) 4.7 (0.2) Other (1.4) (2.7) Other income (expense), net $ 2.8 $ (3.4) |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
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 (loss) before taxes and equity in net earnings (loss) of affiliate, for the first quarter 2022 and 2021. 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. First Quarter 2022 2021 (In millions of dollars) Revenue from Services: Professional & Industrial $ 444.3 $ 467.6 Science, Engineering & Technology 317.1 254.7 Education 173.4 111.6 Outsourcing & Consulting 109.1 99.3 International 252.8 272.9 Less: Intersegment revenue (0.3) (0.2) Consolidated Total $ 1,296.4 $ 1,205.9 |
Segment Earnings From Operations | First Quarter 2022 2021 (In millions of dollars) Earnings (loss) from Operations: Professional & Industrial gross profit $ 83.1 $ 75.9 Professional & Industrial SG&A expenses (71.4) (69.4) Professional & Industrial earnings (loss) from operations 11.7 6.5 Science, Engineering & Technology gross profit 73.8 53.2 Science, Engineering & Technology SG&A expenses (53.2) (35.7) Science, Engineering & Technology earnings (loss) from operations 20.6 17.5 Education gross profit 26.6 17.2 Education SG&A expenses (18.6) (14.2) Education earnings (loss) from operations 8.0 3.0 Outsourcing & Consulting gross profit 37.3 31.3 Outsourcing & Consulting SG&A expenses (34.3) (28.4) Outsourcing & Consulting earnings (loss) from operations 3.0 2.9 International gross profit 37.8 35.7 International SG&A expenses (33.2) (33.1) International earnings (loss) from operations 4.6 2.6 Corporate (24.5) (21.9) Consolidated Total 23.4 10.6 Gain (loss) on investment in Persol Holdings (67.2) 30.0 Loss on currency translation from liquidation of subsidiary (20.4) — Other income (expense), net 2.8 (3.4) Earnings (loss) before taxes and equity in net earnings (loss) of affiliate $ (61.4) $ 37.2 |
Depreciation and Amortization by Segment | Depreciation and amortization expense included in SG&A expenses by segment above are as follows: First Quarter 2022 2021 (In millions of dollars) Depreciation and amortization: Professional & Industrial $ 1.1 $ 1.4 Science, Engineering & Technology 3.1 1.0 Education 0.8 1.0 Outsourcing & Consulting 0.2 0.2 International 0.5 0.5 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - USD ($) $ in Millions | May 02, 2022 | Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 |
Subsequent Event [Line Items] | ||||
Assets | $ 2,785.6 | $ 2,894.2 | ||
Accumulated other comprehensive income (loss) | (14.7) | (27.7) | ||
Revenue | 1,296.4 | $ 1,205.9 | ||
Net earnings (loss) | (47.6) | 25.6 | ||
Earnings (loss) from operations | 23.4 | 10.6 | ||
Russia | ||||
Subsequent Event [Line Items] | ||||
Assets | 28.4 | |||
Liabilities | 13 | |||
Accumulated other comprehensive income (loss) | 10.1 | |||
Revenue | $ 29.7 | $ 32.6 | 132.2 | |
Earnings (loss) from operations | $ 5.3 | |||
Subsequent Event | Pediatric Therapeutic Services | ||||
Subsequent Event [Line Items] | ||||
Ownership percentage acquired | 100.00% | |||
Purchase price paid at closing | $ 82.1 | |||
Acquisition related costs | $ 0.3 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenues by Service Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,296.4 | $ 1,205.9 |
Professional & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 444.3 | 467.6 |
Science, Engineering & Technology | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 317.1 | 254.7 |
Education | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 173.4 | 111.6 |
Outsourcing & Consulting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 109.1 | 99.3 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 252.8 | 272.9 |
Staffing Services | Professional & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 334.9 | 352.5 |
Staffing Services | Science, Engineering & Technology | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 220.6 | 186.2 |
Staffing Services | Education | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 171.9 | 110.8 |
Staffing Services | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 241.7 | 265.6 |
Permanent Placement | Professional & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10.2 | 4.9 |
Permanent Placement | Science, Engineering & Technology | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8 | 4.8 |
Permanent Placement | Education | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1.5 | 0.8 |
Permanent Placement | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6.9 | 5.5 |
Outcome-Based Services | Professional & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 99.2 | 110.2 |
Outcome-Based Services | Science, Engineering & Technology | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 88.5 | 63.7 |
Talent Solutions | Outsourcing & Consulting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 109.1 | 99.3 |
Talent Solutions | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4.2 | 1.8 |
Less: Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ (0.3) | $ (0.2) |
Revenue - Revenue by Country (D
Revenue - Revenue by Country (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,296.4 | $ 1,205.9 | |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 956.6 | 858.5 | |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 39.1 | 34.1 | |
Puerto Rico | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 27.6 | 24.2 | |
Mexico | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10.3 | 34.6 | |
Total Americas Region | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,033.6 | 951.4 | |
Switzerland | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 55 | 52.7 | |
France | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 54.6 | 54.3 | |
Portugal | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 41.9 | 43.7 | |
Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 29.7 | 32.6 | $ 132.2 |
Italy | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 19.5 | 18.1 | |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 15 | 17 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 36.3 | 27.8 | |
Total Europe Region | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 252 | 246.2 | |
Total Asia-Pacific Region | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 10.8 | $ 8.3 |
Revenue - Disaggregation of R_2
Revenue - Disaggregation of Revenues by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,296.4 | $ 1,205.9 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,033.6 | 951.4 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10.8 | 8.3 |
Science, Engineering & Technology | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 317.1 | 254.7 |
Science, Engineering & Technology | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 313.8 | 253.2 |
Science, Engineering & Technology | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3.3 | 1.5 |
Outsourcing & Consulting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 109.1 | 99.3 |
Outsourcing & Consulting | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 92.3 | 84.8 |
Outsourcing & Consulting | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6 | 6.2 |
Outsourcing & Consulting | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10.8 | 8.3 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 252.8 | 272.9 |
International | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10.1 | 34.3 |
International | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 242.7 | $ 238.6 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - Deferred Fulfillment Costs - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Revenue from Contract with Customer [Line Items] | |||
Capitalized contract cost, net | $ 1.7 | $ 1.3 | |
Capitalized contract cost, amortization | $ 1.9 | $ 6.8 |
Credit Losses - Allowance for C
Credit Losses - Allowance for Credit Losses Related to Trade Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Allowance for credit losses: | ||
Beginning balance | $ 9.4 | $ 9.8 |
Current period provision | 0.4 | (0.2) |
Currency exchange effects | (0.1) | (0.2) |
Write-offs | (1.2) | (0.3) |
Ending balance | $ 8.5 | $ 9.1 |
Credit Losses - Narrative (Deta
Credit Losses - Narrative (Details) $ in Millions | Apr. 04, 2021USD ($) |
Other Assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Financing receivable, allowance for credit loss | $ 10.9 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Mar. 07, 2022 | Apr. 05, 2021 | Apr. 03, 2022 | Oct. 03, 2021 | Apr. 04, 2021 |
Business Acquisition [Line Items] | |||||
Revenue | $ 1,296.4 | $ 1,205.9 | |||
Earnings (loss) from operations | 23.4 | $ 10.6 | |||
RocketPower | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage acquired | 100.00% | ||||
Purchase price of acquisition | $ 59.3 | ||||
Purchase price paid at closing | 61.8 | ||||
Additional consideration payable | 1.1 | ||||
Intangibles | 15.8 | ||||
Business acquisition, goodwill, expected tax deductible amount | 28 | ||||
Contingent consideration, maximum | 31.8 | 31.8 | |||
Business Combination, Contingent Consideration, Liability | 0.6 | ||||
RocketPower | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Intangibles | $ 7.5 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | ||||
RocketPower | Noncompete Agreements | |||||
Business Acquisition [Line Items] | |||||
Intangibles | $ 1.7 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 6 years | ||||
RocketPower | Trade Names | |||||
Business Acquisition [Line Items] | |||||
Intangibles | $ 6.6 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||||
Softworld, Inc. | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage acquired | 100.00% | ||||
Purchase price of acquisition | $ 215 | ||||
Purchase price paid at closing | 220.4 | ||||
Additional consideration payable | 2.6 | ||||
Net working capital adjustment | $ 6 | $ 6 | |||
Revenue | 37.9 | ||||
Earnings (loss) from operations | $ 3.5 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price (Details) - USD ($) $ in Millions | Mar. 07, 2022 | Apr. 05, 2021 | Oct. 03, 2021 |
RocketPower | |||
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 61.8 | ||
Additional consideration payable | 1.1 | ||
Contingent consideration | 0.6 | ||
Total consideration, including working capital adjustments | $ 63.5 | ||
Softworld, Inc. | |||
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 220.4 | ||
Additional consideration payable | 2.6 | ||
Net working capital adjustment | (6) | $ (6) | |
Total consideration, including working capital adjustments | $ 217 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Assumed and Liabilities Acquired (Details) - USD ($) $ in Millions | Mar. 07, 2022 | Apr. 03, 2022 | Jan. 02, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 155.8 | $ 114.8 | |
RocketPower | |||
Business Acquisition [Line Items] | |||
Cash | $ 3.5 | ||
Trade accounts receivable | 6.9 | ||
Prepaid expenses and other current assets | 1.8 | ||
Net property and equipment | 0.1 | ||
Goodwill | 41 | ||
Intangibles | 15.8 | ||
Accounts payable and accrued liabilities, current | (2.9) | ||
Accrued payroll and related taxes, current | (1.5) | ||
Other long-term liabilities | (1.2) | ||
Total consideration, including working capital adjustments | $ 63.5 |
Investment in Persol Holdings -
Investment in Persol Holdings - Narrative (Details) - USD ($) $ in Millions | Feb. 15, 2022 | Feb. 14, 2022 | Feb. 15, 2022 | Apr. 03, 2022 | Apr. 04, 2021 |
Schedule of Equity Method Investments [Line Items] | |||||
Stock repurchased during period, amount in excess of par value | $ 25.6 | ||||
Proceeds from sale of Persol Holdings investment | $ 196.9 | $ 0 | |||
Gain (loss) on investment in Persol Holdings | (67.2) | 30 | |||
Loss on currency translation from liquidation of subsidiary | (20.4) | 0 | |||
Foreign currency transaction gain | 5.5 | 0 | |||
Equity Securities, FV-NI, Gain (Loss) | $ (52.4) | $ 30 | |||
Persol Holdings Investment | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Stock repurchased during period, value | $ 27.2 | ||||
Proceeds from sale of Persol Holdings investment | $ 196.9 | ||||
Gain (loss) on investment in Persol Holdings | (67.2) | ||||
Equity Securities, FV-NI, Gain (Loss) | $ (14.8) | ||||
Persol Holdings Investment | Class A Common Stock | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Stock repurchased during period, shares | 1,576,169 | ||||
Persol Holdings Investment | Class B Common Stock | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Stock repurchased during period, shares | 1,475 | ||||
Kelly Services Japan, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Loss on currency translation from liquidation of subsidiary | 20.4 | ||||
Foreign currency transaction gain | $ 5.5 |
Investment in PersolKelly Pte_2
Investment in PersolKelly Pte Ltd. (Details) $ in Millions | Mar. 01, 2022USD ($) | Mar. 01, 2022USD ($) | Apr. 03, 2022USD ($)geography | Apr. 04, 2021USD ($) | Feb. 14, 2022 | Jan. 02, 2022USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||
Number of geographies in which entity operates | geography | 10 | |||||
Investment in equity affiliate | $ 0 | $ 123.4 | ||||
Accumulated other comprehensive income (loss) | (14.7) | $ (27.7) | ||||
Equity in net earnings (loss) of affiliate | $ 0.8 | 0.8 | $ (1.1) | |||
Equity securities without readily determinable fair value, with changes in fair value in net income | 6.4 | |||||
Proceeds from sale of equity method investment | $ 119.5 | $ 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (1.9) | |||||
PersolKelly Pte. Ltd. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 2.50% | 2.50% | 2.50% | 49.00% | ||
Equity method investment, amount sold, percentage | 95.00% | 95.00% | ||||
Equity method investment, amount sold | $ 117.6 | |||||
Proceeds from sale of equity method investment | 119.5 | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 1.9 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Investment in Persol Holdings | $ 0 | $ 264.3 |
Measured on Recurring Basis | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 122.3 | 96.3 |
Investment in Persol Holdings | 0 | 264.3 |
Total assets at fair value | 122.3 | 360.6 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Brazil indemnification | (2.9) | (2.4) |
Total liabilities at fair value | (5.8) | (7) |
Measured on Recurring Basis | Greenwood/Asher | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Earnout, fair value | (2.3) | (4.6) |
Measured on Recurring Basis | RocketPower | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Earnout, fair value | (0.6) | |
Measured on Recurring Basis | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 122.3 | 96.3 |
Investment in Persol Holdings | 0 | 264.3 |
Total assets at fair value | 122.3 | 360.6 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Brazil indemnification | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Measured on Recurring Basis | Level 1 | Greenwood/Asher | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Earnout, fair value | 0 | 0 |
Measured on Recurring Basis | Level 1 | RocketPower | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Earnout, fair value | 0 | |
Measured on Recurring Basis | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 0 | 0 |
Investment in Persol Holdings | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Brazil indemnification | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Measured on Recurring Basis | Level 2 | Greenwood/Asher | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Earnout, fair value | 0 | 0 |
Measured on Recurring Basis | Level 2 | RocketPower | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Earnout, fair value | 0 | |
Measured on Recurring Basis | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 0 | 0 |
Investment in Persol Holdings | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Brazil indemnification | (2.9) | (2.4) |
Total liabilities at fair value | (5.8) | (7) |
Measured on Recurring Basis | Level 3 | Greenwood/Asher | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Earnout, fair value | (2.3) | $ (4.6) |
Measured on Recurring Basis | Level 3 | RocketPower | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Earnout, fair value | $ (0.6) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Feb. 15, 2022 | Apr. 03, 2022 | Jul. 04, 2021 | Apr. 04, 2021 | Jan. 02, 2022 | Mar. 07, 2022 | Mar. 01, 2022 | Feb. 14, 2022 | Mar. 08, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Payment for contingent consideration liability, financing activities | $ 0.7 | $ 0 | |||||||
Investment in equity affiliate | 0 | $ 123.4 | |||||||
Proceeds from sale of Persol Holdings investment | 196.9 | $ 0 | |||||||
Equity securities without readily determinable fair value, with changes in fair value in net income | 6.4 | ||||||||
Brazil | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Indemnification liabilities, expense (income) | 0.5 | ||||||||
Brazil | Maximum | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Indemnification liabilities | 8.8 | ||||||||
Greenwood/Asher | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Payment for contingent consideration liability, financing activities | 0.7 | ||||||||
RocketPower | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Business Combination, Contingent Consideration, Liability | $ 0.6 | ||||||||
Contingent consideration, maximum | $ 31.8 | $ 31.8 | |||||||
Persol Holdings Investment | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Cost of equity securities | 18 | ||||||||
Proceeds from sale of Persol Holdings investment | $ 196.9 | ||||||||
Business Talent Group, LLC | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Proceeds from sale of Persol Holdings investment | $ 5 | ||||||||
Kenzie Academy Inc. | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Equity securities without readily determinable fair value, with changes in fair value in net income | 1.4 | $ 1.4 | |||||||
Debt and equity securities, realized gain (loss) | (1.4) | ||||||||
PersolKelly Pte. Ltd. | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Equity method investment, ownership percentage | 2.50% | 2.50% | 49.00% | ||||||
Other Assets | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Money market funds | $ 7.3 | 6.5 | |||||||
Level 3 | Brazil | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Indemnification liability | 2.9 | 2.4 | |||||||
Level 3 | Greenwood/Asher | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Business Combination, Contingent Consideration, Liability | 2.3 | 4.6 | |||||||
Payment for contingent consideration liability, financing activities | 2.3 | ||||||||
Level 3 | RocketPower | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Business Combination, Contingent Consideration, Liability | 0.6 | ||||||||
Level 3 | Other Long Term Liabilities | Greenwood/Asher | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Business Combination, Contingent Consideration, Liability | 2.3 | ||||||||
Level 3 | Other Long Term Liabilities | RocketPower | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Business Combination, Contingent Consideration, Liability | 0.1 | ||||||||
Level 3 | Accounts Payable and Accrued Liabilities | Greenwood/Asher | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Business Combination, Contingent Consideration, Liability | $ 2.3 | ||||||||
Level 3 | Accounts Payable and Accrued Liabilities | RocketPower | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Business Combination, Contingent Consideration, Liability | $ 0.5 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Jan. 02, 2022 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring costs | $ 1.7 | |
Restructuring accrual | $ 2.6 | $ 2.9 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring and Related Costs (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2022USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Severance Costs | $ 1.5 |
Lease Termination Costs | 0.2 |
Total | 1.7 |
Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Severance Costs | 0.8 |
Lease Termination Costs | 0 |
Total | 0.8 |
Professional & Industrial | |
Restructuring Cost and Reserve [Line Items] | |
Severance Costs | 0.1 |
Lease Termination Costs | 0.2 |
Total | 0.3 |
Education | |
Restructuring Cost and Reserve [Line Items] | |
Severance Costs | 0.4 |
Lease Termination Costs | 0 |
Total | 0.4 |
Outsourcing & Consulting | |
Restructuring Cost and Reserve [Line Items] | |
Severance Costs | 0.2 |
Lease Termination Costs | 0 |
Total | $ 0.2 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2022USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 2.9 |
Restructuring costs | 1.7 |
Reductions for cash payments related to all restructuring activities | (2) |
Ending balance | 2.6 |
Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 0.8 |
Professional & Industrial | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 0.3 |
Outsourcing & Consulting | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 0.2 |
Education | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 0.4 |
Goodwill - Changes in the Net C
Goodwill - Changes in the Net Carrying Amount of Goodwill (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2022USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 114.8 |
Additions to Goodwill | 41 |
Impairment Adjustments | 0 |
Goodwill, ending balance | 155.8 |
Science, Engineering & Technology | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 111.3 |
Additions to Goodwill | 0 |
Impairment Adjustments | 0 |
Goodwill, ending balance | 111.3 |
Education | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 3.5 |
Additions to Goodwill | 0 |
Impairment Adjustments | 0 |
Goodwill, ending balance | 3.5 |
Outsourcing & Consulting | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 0 |
Additions to Goodwill | 41 |
Impairment Adjustments | 0 |
Goodwill, ending balance | $ 41 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | Mar. 01, 2022 | Apr. 03, 2022 | Apr. 04, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (1.9) | ||
Equity Method Investment and Other | Foreign currency translation adjustments: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (2.5) | $ 0 | |
PersolKelly Pte. Ltd. | Equity Method Investment and Other | Foreign currency translation adjustments: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (1.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Details) - USD ($) $ in Millions | Mar. 01, 2022 | Apr. 03, 2022 | Apr. 04, 2021 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 1,336.2 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 1.9 | ||
Other comprehensive income (loss) | 13 | $ (13.6) | |
Stockholders' Equity Attributable to Parent, Ending Balance | 1,273.5 | 1,215.7 | |
Foreign currency translation adjustments: | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Stockholders' Equity Attributable to Parent, Beginning Balance | (25) | (0.8) | |
Other comprehensive income (loss) before reclassifications | (9.9) | (13.6) | |
Other comprehensive income (loss) | 13 | (13.6) | |
Stockholders' Equity Attributable to Parent, Ending Balance | (12) | (14.4) | |
Foreign currency translation adjustments: | Liquidation of Subsidiary | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 20.4 | 0 | |
Foreign currency translation adjustments: | Equity Method Investment and Other | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 2.5 | 0 | |
Pension liability adjustments: | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Stockholders' Equity Attributable to Parent, Beginning Balance | (2.7) | (3.4) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | |
Stockholders' Equity Attributable to Parent, Ending Balance | (2.7) | (3.4) | |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Stockholders' Equity Attributable to Parent, Beginning Balance | (27.7) | (4.2) | |
Other comprehensive income (loss) | 13 | (13.6) | |
Stockholders' Equity Attributable to Parent, Ending Balance | $ (14.7) | $ (17.8) |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Earnings Per Share [Abstract] | ||
Net earnings (loss) | $ (47.6) | $ 25.6 |
Less: earnings allocated to participating securities | 0 | (0.2) |
Net earnings (loss) available to common shareholders | $ (47.6) | $ 25.4 |
Average shares outstanding (millions): | ||
Basic (in shares) | 38.6 | 39.3 |
Dilutive share awards (in shares) | 0 | 0.2 |
Diluted (in shares) | 38.6 | 39.5 |
Basic earnings (loss) per share on common stock (in dollars per share) | $ (1.23) | $ 0.65 |
Diluted earnings (loss) per share on common stock (in dollars per share) | $ (1.23) | $ 0.64 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - $ / shares | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Class A Common Stock | ||
Dividends Payable [Line Items] | ||
Dividends per share (in dollars per share) | $ 0.05 | $ 0 |
Class B Common Stock | ||
Dividends Payable [Line Items] | ||
Dividends per share (in dollars per share) | $ 0.05 | $ 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense (benefit) | $ 2.1 | $ 1.4 |
Related tax benefit (expense) | $ 0.3 | $ 0.1 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares that can be earned, percentage | 200.00% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Nonvested Performance Shares (Details) - Financial Measure Performance Shares shares in Thousands | 3 Months Ended |
Apr. 03, 2022$ / sharesshares | |
Shares | |
Nonvested, beginning balance (in shares) | shares | 708 |
Granted (in shares) | shares | 186 |
Vested (in shares) | shares | (48) |
Forfeited (in shares) | shares | (6) |
Vesting adjustment (in shares) | shares | (142) |
Nonvested, ending balance (in shares) | shares | 698 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 20.03 |
Granted (in dollars per share) | $ / shares | 21.19 |
Vested (in dollars per share) | $ / shares | 22.55 |
Forfeited (in dollars per share) | $ / shares | 16.81 |
Vesting adjustment (in dollars per share) | $ / shares | 24.45 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 19.39 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Nonvested Restricted Stock (Details) - Restricted Stock shares in Thousands | 3 Months Ended |
Apr. 03, 2022$ / sharesshares | |
Shares | |
Nonvested, beginning balance (in shares) | shares | 403 |
Granted (in shares) | shares | 259 |
Vested (in shares) | shares | (96) |
Forfeited (in shares) | shares | (22) |
Nonvested, ending balance (in shares) | shares | 544 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 21.24 |
Granted (in dollars per share) | $ / shares | 21.74 |
Vested (in dollars per share) | $ / shares | 22.34 |
Forfeited (in dollars per share) | $ / shares | 22.43 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 21.24 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Schedule of Other Nonoperating Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 0.1 | $ 0.1 |
Interest expense | (0.6) | (0.6) |
Foreign exchange gains (losses) | 4.7 | (0.2) |
Other expense | (1.4) | (2.7) |
Other income (expense), net | $ 2.8 | $ (3.4) |
Other Income (Expense), Net - N
Other Income (Expense), Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Other Income (Expense) [Line Items] | ||
Foreign currency transaction gain | $ 5.5 | $ 0 |
Kelly Services Japan, Inc. | ||
Other Income (Expense) [Line Items] | ||
Foreign currency transaction gain | $ 5.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Income Taxes [Line Items] | ||
Income tax expense (benefit) | $ (13) | $ 10.5 |
Mexico | ||
Income Taxes [Line Items] | ||
Deferred tax asset | 3.9 | |
Persol Holdings | ||
Income Taxes [Line Items] | ||
Income tax expense (benefit) | $ (18.4) | $ 9.2 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - USD ($) $ in Millions | Apr. 03, 2022 | Jan. 02, 2022 |
Loss Contingencies [Line Items] | ||
Accrual for litigation costs | $ 1.8 | $ 1.4 |
Loss Contingency, Receivable | 0.6 | $ 0 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, portion not accrued | 0.5 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, portion not accrued | $ 9.1 |
Segment Disclosures - Narrative
Segment Disclosures - Narrative (Details) | 3 Months Ended |
Apr. 03, 2022segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Disclosures - Segment R
Segment Disclosures - Segment Revenue From Service (Details) - Service - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Revenue from Services | ||
Segment revenue from services | $ 1,296.4 | $ 1,205.9 |
Less: Intersegment revenue | ||
Revenue from Services | ||
Segment revenue from services | (0.3) | (0.2) |
Professional & Industrial | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | 444.3 | 467.6 |
Science, Engineering & Technology | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | 317.1 | 254.7 |
Education | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | 173.4 | 111.6 |
Outsourcing & Consulting | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | 109.1 | 99.3 |
International | Reporting Segments | ||
Revenue from Services | ||
Segment revenue from services | $ 252.8 | $ 272.9 |
Segment Disclosures - Segment E
Segment Disclosures - Segment Earnings (loss) From Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Earnings (loss) from Operations | ||
Gross profit | $ 258.6 | $ 213.3 |
SG&A expenses | (235.2) | (202.7) |
Earnings (loss) from operations | 23.4 | 10.6 |
Gain (loss) on investment in Persol Holdings | (67.2) | 30 |
Loss on currency translation from liquidation of subsidiary | (20.4) | 0 |
Other income (expense), net | 2.8 | (3.4) |
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate | (61.4) | 37.2 |
Corporate | ||
Earnings (loss) from Operations | ||
Earnings (loss) from operations | (24.5) | (21.9) |
Professional & Industrial | Reporting Segments | ||
Earnings (loss) from Operations | ||
Gross profit | 83.1 | 75.9 |
SG&A expenses | (71.4) | (69.4) |
Earnings (loss) from operations | 11.7 | 6.5 |
Science, Engineering & Technology | Reporting Segments | ||
Earnings (loss) from Operations | ||
Gross profit | 73.8 | 53.2 |
SG&A expenses | (53.2) | (35.7) |
Earnings (loss) from operations | 20.6 | 17.5 |
Education | Reporting Segments | ||
Earnings (loss) from Operations | ||
Gross profit | 26.6 | 17.2 |
SG&A expenses | (18.6) | (14.2) |
Earnings (loss) from operations | 8 | 3 |
Outsourcing & Consulting | Reporting Segments | ||
Earnings (loss) from Operations | ||
Gross profit | 37.3 | 31.3 |
SG&A expenses | (34.3) | (28.4) |
Earnings (loss) from operations | 3 | 2.9 |
International | Reporting Segments | ||
Earnings (loss) from Operations | ||
Gross profit | 37.8 | 35.7 |
SG&A expenses | (33.2) | (33.1) |
Earnings (loss) from operations | $ 4.6 | $ 2.6 |
Segment Disclosures - Depreciat
Segment Disclosures - Depreciation and Amortization Expense Included in SG&A Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Earnings (loss) from Operations | ||
Depreciation and amortization | $ 7.5 | $ 5.9 |
Professional & Industrial | ||
Earnings (loss) from Operations | ||
Depreciation and amortization | 1.1 | 1.4 |
Science, Engineering & Technology | ||
Earnings (loss) from Operations | ||
Depreciation and amortization | 3.1 | 1 |
Education | ||
Earnings (loss) from Operations | ||
Depreciation and amortization | 0.8 | 1 |
Outsourcing & Consulting | ||
Earnings (loss) from Operations | ||
Depreciation and amortization | 0.2 | 0.2 |
International | ||
Earnings (loss) from Operations | ||
Depreciation and amortization | $ 0.5 | $ 0.5 |