Company Quick10K Filing
Kelly Services
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 39 $999
10-Q 2019-11-06 Quarter: 2019-09-29
10-Q 2019-08-07 Quarter: 2019-06-30
10-Q 2019-05-09 Quarter: 2019-03-31
10-K 2019-02-14 Annual: 2018-12-30
10-Q 2018-11-07 Quarter: 2018-09-30
10-Q 2018-08-08 Quarter: 2018-07-01
10-Q 2018-05-10 Quarter: 2018-04-01
10-K 2018-02-20 Annual: 2017-12-31
10-Q 2017-11-08 Quarter: 2017-10-01
10-Q 2017-08-09 Quarter: 2017-07-02
10-Q 2017-05-11 Quarter: 2017-04-02
10-K 2017-02-17 Annual: 2017-01-01
10-Q 2016-11-09 Quarter: 2016-10-02
10-Q 2016-08-10 Quarter: 2016-07-03
10-Q 2016-05-11 Quarter: 2016-04-03
10-K 2016-02-18 Annual: 2016-01-03
10-Q 2015-11-04 Quarter: 2015-09-27
10-Q 2015-08-05 Quarter: 2015-06-28
10-Q 2015-05-06 Quarter: 2015-03-29
10-K 2015-02-12 Annual: 2014-12-28
10-Q 2014-11-05 Quarter: 2014-09-28
10-Q 2014-08-06 Quarter: 2014-06-29
10-Q 2014-05-07 Quarter: 2014-03-30
10-K 2014-02-13 Annual: 2013-12-29
10-Q 2013-11-06 Quarter: 2013-09-29
10-Q 2013-08-07 Quarter: 2013-06-30
10-Q 2013-05-08 Quarter: 2013-03-31
10-K 2013-02-14 Annual: 2012-12-30
10-Q 2012-11-07 Quarter: 2012-09-30
10-Q 2012-08-08 Quarter: 2012-07-01
10-Q 2012-05-09 Quarter: 2012-04-01
10-K 2012-02-16 Annual: 2012-01-01
10-Q 2011-11-09 Quarter: 2011-10-02
10-Q 2011-08-10 Quarter: 2011-07-03
10-Q 2011-05-11 Quarter: 2011-04-03
10-K 2011-02-17 Annual: 2011-01-02
10-Q 2010-11-10 Quarter: 2010-10-03
10-Q 2010-08-11 Quarter: 2010-07-04
10-Q 2010-05-12 Quarter: 2010-04-04
10-K 2010-02-18 Annual: 2010-01-03
8-K 2019-12-05 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-11-06 Earnings, Exhibits
8-K 2019-08-09 Officers
8-K 2019-08-07 Earnings, Exhibits
8-K 2019-08-05 Officers, Regulation FD, Exhibits
8-K 2019-05-10 Shareholder Vote
8-K 2019-05-06 Earnings, Exhibits
8-K 2019-03-01 Officers
8-K 2019-02-13 Earnings, Exhibits
8-K 2018-11-07 Earnings, Exhibits
8-K 2018-11-06 Amend Bylaw, Exhibits
8-K 2018-10-09 Control
8-K 2018-09-17 Officers, Exhibits
8-K 2018-08-21 Officers
8-K 2018-08-08 Earnings, Exhibits
8-K 2018-05-10 Earnings, Exhibits
8-K 2018-05-09 Amend Bylaw, Shareholder Vote, Exhibits
8-K 2018-03-07 Officers, Amend Bylaw, Exhibits
8-K 2018-02-01 Earnings, Exhibits
KELYA 2019-09-29
Part I. Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-14 a2019929-10xqxexh14.htm
EX-31.1 a2019929-10qxexh311.htm
EX-31.2 a2019929-10qxexh312.htm
EX-32.1 a2019929-10qxexh321.htm
EX-32.2 a2019929-10qxexh322.htm

Kelly Services Earnings 2019-09-29

KELYA 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
ICFI 1,393 1,414 747 1,419 506 65 122 1,675 36% 13.8 5%
HURN 1,117 1,115 546 916 284 25 73 1,415 31% 19.3 2%
KELYA 999 2,542 1,274 5,507 989 115 149 957 18% 6.4 5%
NCI 957 908 252 807 211 98 215 867 26% 4.0 11%
TBI 855 1,095 480 2,471 663 67 123 808 27% 6.6 6%
RMR 699 663 134 619 0 169 218 322 0% 1.5 26%
BBSI 627 834 697 934 205 48 66 413 22% 6.3 6%
AMEH 615 568 163 499 138 46 102 558 28% 5.5 8%
HCKT 544 191 60 278 98 19 32 532 35% 16.8 10%
CCRN 310 397 232 800 51 -72 -27 356 6% -13.2 -18%

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 29, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-1088
KELLY SERVICES, INC.
---------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
 
38-1510762
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

999 West Big Beaver Road, Troy, Michigan 48084
-------------------------------------------------------------------------------
(Address of principal executive offices)  (Zip Code)

(248) 362-4444
----------------------------------------------------------------------
(Registrant’s telephone number, including area code)

No Change
-----------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:
Title of each
class
Trading
Symbols
Name of each exchange
on which registered
Class A Common
KELYA
NASDAQ Global Market
Class B Common
KELYB
NASDAQ Global Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for shorter period that the registrant was required to submit and post such files).
Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer (Do not check if a smaller reporting company)
Smaller reporting company
Emerging growth company
 
 

1


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes No
At October 28, 2019, 35,683,604 shares of Class A and 3,428,863 shares of Class B common stock of the Registrant were outstanding.

2


KELLY SERVICES, INC. AND SUBSIDIARIES 
 
Page Number
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
(In millions of dollars except per share data)
 
 
13 Weeks Ended
 
39 Weeks Ended
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
Revenue from services
$
1,267.7

 
$
1,342.4

 
$
4,017.8

 
$
4,099.2

 
 
 
 
 
 
 
 
Cost of services
1,040.0

 
1,103.3

 
3,294.5

 
3,381.4

 
 
 
 
 
 
 
 
Gross profit
227.7

 
239.1

 
723.3

 
717.8

 
 
 
 
 
 
 
 
Selling, general and administrative expenses
210.6

 
217.2

 
666.9

 
663.5

 
 
 
 
 
 
 
 
Gain on sale of assets

 

 
12.3

 

 
 
 
 
 
 
 
 
Earnings from operations
17.1

 
21.9

 
68.7

 
54.3

 
 
 
 
 
 
 
 
Gain (loss) on investment in Persol Holdings
(39.3
)
 
15.8

 
35.1

 
(13.0
)
 
 
 
 
 
 
 
 
Other income (expense), net
(0.2
)
 
(0.7
)
 
(1.1
)
 
(1.8
)
 
 
 
 
 
 
 
 
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate
(22.4
)
 
37.0

 
102.7

 
39.5

 
 
 
 
 
 
 
 
Income tax expense (benefit)
(12.8
)
 
5.9

 
6.3

 
(3.3
)
 
 
 
 
 
 
 
 
Net earnings (loss) before equity in net earnings (loss) of affiliate
(9.6
)
 
31.1

 
96.4

 
42.8

 
 
 
 
 
 
 
 
Equity in net earnings (loss) of affiliate
(0.9
)
 
2.0

 
(1.0
)
 
4.0

 
 
 
 
 
 
 
 
Net earnings (loss)
$
(10.5
)
 
$
33.1

 
$
95.4

 
$
46.8

 
 
 
 
 
 
 
 
Basic earnings (loss) per share
$
(0.27
)
 
$
0.84

 
$
2.42

 
$
1.20

Diluted earnings (loss) per share
$
(0.27
)
 
$
0.84

 
$
2.41

 
$
1.19

 
 
 
 
 
 
 
 
Average shares outstanding (millions):
 
 
 
 
 

 
 

Basic
39.1

 
38.8

 
39.0

 
38.7

Diluted
39.1

 
38.9

 
39.2

 
38.8

 
See accompanying unaudited Notes to Consolidated Financial Statements.

4


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(In millions of dollars)
 
 
13 Weeks Ended
 
39 Weeks Ended
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
Net earnings (loss)
$
(10.5
)
 
$
33.1

 
$
95.4

 
$
46.8

 
 
 
 
 
 
 
 
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Foreign currency translation adjustments, net of tax benefit of $0.2, $0.9, $0.1 and $0.3, respectively
(6.2
)
 
(7.0
)
 
(0.8
)
 
(7.8
)
Less: Reclassification adjustments included in net earnings

 

 

 

Foreign currency translation adjustments
(6.2
)
 
(7.0
)
 
(0.8
)
 
(7.8
)
 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(6.2
)
 
(7.0
)
 
(0.8
)
 
(7.8
)
 
 
 
 
 
 
 
 
Comprehensive income (loss)
$
(16.7
)
 
$
26.1

 
$
94.6

 
$
39.0

 
See accompanying unaudited Notes to Consolidated Financial Statements.

5


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS 
(UNAUDITED)
(In millions) 
 
September 29,
2019
 
December 30,
2018
Assets
 
 
 
Current Assets
 
 
 
Cash and equivalents
$
22.8

 
$
35.3

Trade accounts receivable, less allowances of $12.2 and $13.2, respectively
1,262.3

 
1,293.3

Prepaid expenses and other current assets
80.7

 
71.9

Total current assets
1,365.8

 
1,400.5

 
 
 
 
Noncurrent Assets
 
 
 
Property and equipment:
 
 
 
Property and equipment
297.3

 
294.7

Accumulated depreciation
(214.6
)
 
(208.4
)
Net property and equipment
82.7

 
86.3

Operating lease right-of-use assets
62.2

 

Deferred taxes
221.0

 
198.7

Goodwill
127.8

 
107.3

Investment in Persol Holdings
174.9

 
135.1

Investment in equity affiliate
120.4

 
121.3

Other assets
321.5

 
265.2

Total noncurrent assets
1,110.5

 
913.9

 
 
 
 
Total Assets
$
2,476.3

 
$
2,314.4

See accompanying unaudited Notes to Consolidated Financial Statements.


6


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS 
(UNAUDITED)
(In millions) 
 
September 29,
2019
 
December 30,
2018
Liabilities and Stockholders’ Equity
 
 
 
Current Liabilities
 
 
 
Short-term borrowings
$
17.5

 
$
2.2

Accounts payable and accrued liabilities
484.6

 
540.6

Operating lease liabilities
19.8

 

Accrued payroll and related taxes
285.3

 
266.0

Accrued workers’ compensation and other claims
25.1

 
26.0

Income and other taxes
67.7

 
62.7

Total current liabilities
900.0

 
897.5

 
 
 
 
Noncurrent Liabilities
 
 
 
Operating lease liabilities
45.3

 

Accrued workers’ compensation and other claims
48.7

 
50.5

Accrued retirement benefits
179.0

 
162.9

Other long-term liabilities
55.5

 
44.0

Total noncurrent liabilities
328.5

 
257.4

 
 
 
 
Commitments and contingencies (see Contingencies footnote)


 


 
 
 
 
Stockholders’ Equity
 
 
 
Capital stock, $1.00 par value
 
 
 
Class A common stock, 100.0 shares authorized; 36.6 shares issued at 2019 and 2018
36.6

 
36.6

Class B common stock, 10.0 shares authorized; 3.5 shares issued at 2019 and 2018
3.5

 
3.5

Treasury stock, at cost
 
 
 
Class A common stock, 1.0 shares at 2019 and 1.2 shares at 2018
(20.7
)
 
(25.4
)
Class B common stock
(0.6
)
 
(0.6
)
Paid-in capital
22.3

 
24.4

Earnings invested in the business
1,224.6

 
1,138.1

Accumulated other comprehensive income (loss)
(17.9
)
 
(17.1
)
Total stockholders’ equity
1,247.8

 
1,159.5

 
 
 
 
Total Liabilities and Stockholders’ Equity
$
2,476.3

 
$
2,314.4

See accompanying unaudited Notes to Consolidated Financial Statements.

7


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
(In millions of dollars)
 
13 Weeks Ended
 
39 Weeks Ended
 
September 29,
2019
 
September 30,
2018
 
September 29,
2019
 
September 30,
2018
Capital Stock
 
 
 
 
 
 
 
Class A common stock
 
 
 
 
 
 
 
Balance at beginning of period
$
36.6

 
$
36.6

 
$
36.6

 
$
36.6

Conversions from Class B

 

 

 

Balance at end of period
36.6

 
36.6

 
36.6

 
36.6

 
 
 
 
 
 
 
 
Class B common stock
 
 
 
 
 
 
 
Balance at beginning of period
3.5

 
3.5

 
3.5

 
3.5

Conversions to Class A

 

 

 

Balance at end of period
3.5

 
3.5

 
3.5

 
3.5

 
 
 
 
 
 
 
 
Treasury Stock
 
 
 
 
 
 
 
Class A common stock
 
 
 
 
 
 
 
Balance at beginning of period
(20.9
)
 
(26.8
)
 
(25.4
)
 
(34.6
)
Net issuance of stock awards
0.2

 
0.1

 
4.7

 
7.9

Balance at end of period
(20.7
)
 
(26.7
)
 
(20.7
)
 
(26.7
)
 
 
 
 
 
 
 
 
Class B common stock
 
 
 
 
 
 
 
Balance at beginning of period
(0.6
)
 
(0.6
)
 
(0.6
)
 
(0.6
)
Net issuance of stock awards

 

 

 

Balance at end of period
(0.6
)
 
(0.6
)
 
(0.6
)
 
(0.6
)
 
 
 
 
 
 
 
 
Paid-in Capital
 
 
 
 
 
 
 
Balance at beginning of period
23.2

 
23.4

 
24.4

 
32.2

Net issuance of stock awards
(0.9
)
 
1.6

 
(2.1
)
 
(7.2
)
Balance at end of period
22.3

 
25.0

 
22.3

 
25.0

 
 
 
 
 
 
 
 
Earnings Invested in the Business
 
 
 
 
 
 
 
Balance at beginning of period
1,238.1

 
1,134.8

 
1,138.1

 
983.6

Cumulative-effect adjustment from adoption of ASU 2016-01, Financial Instruments

 

 

 
140.0

Cumulative-effect adjustment from adoption of ASU 2014-09, Revenue

 

 

 
3.4

Net earnings (loss)
(10.5
)
 
33.1

 
95.4

 
46.8

Dividends
(3.0
)
 
(2.9
)
 
(8.9
)
 
(8.8
)
Balance at end of period
1,224.6

 
1,165.0

 
1,224.6

 
1,165.0

 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
Balance at beginning of period
(11.7
)
 
(10.0
)
 
(17.1
)
 
130.8

Cumulative-effect adjustment from adoption of ASU 2016-01, Financial Instruments

 

 

 
(140.0
)
Other comprehensive income (loss), net of tax
(6.2
)
 
(7.0
)
 
(0.8
)
 
(7.8
)
Balance at end of period
(17.9
)
 
(17.0
)
 
(17.9
)
 
(17.0
)
 
 
 
 
 
 
 
 
Stockholders’ Equity at end of period
$
1,247.8

 
$
1,185.8

 
$
1,247.8

 
$
1,185.8

See accompanying unaudited Notes to Consolidated Financial Statements.

8


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In millions of dollars)
 
39 Weeks Ended
 
September 29,
2019
 
September 30,
2018
Cash flows from operating activities:
 
 
 
Net earnings
$
95.4

 
$
46.8

Adjustments to reconcile net earnings to net cash from operating activities:
 
 
 
Depreciation and amortization
23.8

 
19.5

Operating lease asset amortization
16.9

 

Provision for bad debts
3.2

 
1.3

Stock-based compensation
4.7

 
6.7

(Gain) loss on investment in Persol Holdings
(35.1
)
 
13.0

(Gain) loss on sale of assets
(12.3
)
 

Equity in net (earnings) loss of PersolKelly Asia Pacific
1.0

 
(4.0
)
Other, net
(1.0
)
 
(1.0
)
Changes in operating assets and liabilities, net of acquisitions
(22.4
)
 
(49.0
)
 
 
 
 
Net cash from operating activities
74.2

 
33.3

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(13.8
)
 
(17.9
)
Acquisition of companies, net of cash received
(86.4
)
 

Investment in equity securities
(1.0
)
 
(5.0
)
Loans to equity affiliate
(4.4
)
 
(2.9
)
Proceeds from sale of assets
13.8

 

Proceeds from company-owned life insurance
3.0

 

Other investing activities

 
(0.8
)
 
 
 
 
Net cash used in investing activities
(88.8
)
 
(26.6
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Net change in short-term borrowings
15.2

 
(1.9
)
Financing lease payments
(0.4
)
 

Dividend payments
(8.9
)
 
(8.8
)
Payments of tax withholding for stock awards
(2.3
)
 
(6.3
)
 
 
 
 
Net cash from (used in) financing activities
3.6

 
(17.0
)
 
 
 
 
Effect of exchange rates on cash, cash equivalents and restricted cash
(0.5
)
 
(0.7
)
 
 
 
 
Net change in cash, cash equivalents and restricted cash
(11.5
)
 
(11.0
)
Cash, cash equivalents and restricted cash at beginning of period
40.1

 
36.9

 
 
 
 
Cash, cash equivalents and restricted cash at end of period (1)
$
28.6

 
$
25.9








9


KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(UNAUDITED)
(In millions of dollars)

(1) The following table provides a reconciliation of cash, cash equivalents and restricted cash to the amounts reported in our consolidated balance sheets:
 
39 Weeks Ended
 
September 29,
2019
 
September 30,
2018
Reconciliation of cash, cash equivalents and restricted cash:
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
22.8

 
$
20.8

Restricted cash included in prepaid expenses and other current assets
0.8

 
0.5

Noncurrent assets:
 
 
 
Restricted cash included in other assets
5.0

 
4.6

Cash, cash equivalents and restricted cash at end of period
$
28.6

 
$
25.9

See accompanying unaudited Notes to Consolidated Financial Statements.

10


KELLY SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.  Basis of Presentation
The accompanying unaudited consolidated financial statements of Kelly Services, Inc. (the “Company,” “Kelly,” “we” or “us”) have been prepared in accordance with Rule 10-01 of Regulation S-X and do not include all the information and notes required by generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, necessary for a fair statement of the results of the interim periods, have been made. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. The unaudited consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 30, 2018, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 14, 2019 (the 2018 consolidated financial statements). The Company’s third fiscal quarter ended on September 29, 2019 (2019) and September 30, 2018 (2018), each of which contained 13 weeks. The corresponding September year to date periods for 2019 and 2018 each contained 39 weeks.

Certain reclassifications have been made to the prior year’s consolidated financial statements to conform to the current year’s presentation.

2.  Revenue
Adoption of ASC Topic 606, Revenue from Contracts with Customers
On January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605.

We recorded a net increase to opening earnings invested in the business of $3.4 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606. The impact is primarily driven by the deferral of contract costs related to our customer contracts of $5.2 million, partially offset by deferring revenue billed at a point in time for services performed over time of $0.6 million and a deferred tax liability of $1.2 million. As of and for year to date 2018, the consolidated financial statements were not materially impacted as a result of the application of Topic 606 compared to Topic 605.

Revenue Recognition
Revenues are recognized when control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Our revenues are recorded net of any sales, value added, or similar taxes collected from our customers. We generate revenue from: the hourly sales of services by our temporary employees to customers (“staffing solutions” revenue), the recruiting of permanent employees for our customers (“permanent placement” revenue), and through our talent fulfillment and outcome-based activities (“talent solutions” and “outcome-based services” revenue).

Staffing Solutions Revenue
Staffing solutions can be branch-delivered (Americas and EMEA regions) or centrally delivered (within Global Talent Solutions “GTS”). Our Americas Staffing segment is organized to deliver services in a number of specialty staffing solutions, which are summarized as: commercial, specialized professional/technical “PT” and educational staffing.

Permanent Placement Revenue
Permanent placement solutions can be branch-delivered (Americas and EMEA regions) or centrally delivered (within GTS). Our permanent placement revenue is recorded when the permanent placement candidate begins full-time employment. On the candidate start date, the customer accepts the candidate and can direct the use of the candidate as well as obtains the significant risk and rewards of the candidate.  As such, we consider this the point the control transfers to the customer.

Talent Solutions and Outcome-Based Services Revenue
In addition to centrally delivered staffing services, our GTS segment also includes talent solutions (contingent workforce outsourcing “CWO”, payroll process outsourcing “PPO” and recruitment process outsourcing “RPO”) and outcome-based services (business process outsourcing “BPO”, KellyConnect, career transition/outplacement services and talent advisory services).


11

KELLY SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(UNAUDITED)

The following table presents our segment revenues disaggregated by service type (in millions):
 
 
Third Quarter
 
September Year to Date
 
 
2019
 
2018
 
2019
 
2018
Branch-Delivered Staffing
 
 
 
 
 
 
 
 
Americas Staffing
 
 
 
 
 
 
 
 
Staffing Solutions
 
 
 
 
 
 
 
 
Commercial
 
$
366.8

 
$
424.3

 
$
1,143.4

 
$
1,237.2

Educational Staffing
 
57.5

 
57.7

 
314.5

 
297.8

Professional/Technical
 
83.2

 
68.8

 
256.0

 
206.3

Permanent Placement
 
8.5

 
11.0

 
26.2

 
28.8

Total Americas Staffing
 
516.0

 
561.8

 
1,740.1

 
1,770.1

 
 
 
 
 
 
 
 
 
International Staffing
 
 
 
 
 
 
 
 
Staffing Solutions
 
246.8

 
270.4

 
760.7

 
826.4

Permanent Placement
 
6.1

 
6.8

 
19.2

 
22.1

Total International Staffing
 
252.9

 
277.2

 
779.9

 
848.5

 
 
 
 
 
 
 
 
 
Global Talent Solutions
 
 
 
 
 
 
 
 
Talent Fulfillment
 
 
 
 
 
 
 
 
Staffing Solutions
 
251.2

 
279.0

 
765.0

 
851.5

Permanent Placement
 
0.5

 
0.6

 
1.3

 
1.4

Talent Solutions
 
91.2

 
94.0

 
274.2

 
267.9

Total Talent Fulfillment
 
342.9

 
373.6

 
1,040.5

 
1,120.8

 
 
 
 
 
 
 
 
 
Outcome-Based Services
 
159.6

 
134.0

 
468.9

 
373.3

Total Global Talent Solutions
 
502.5

 
507.6

 
1,509.4

 
1,494.1

 
 
 
 
 
 
 
 
 
Total Intersegment
 
(3.7
)
 
(4.2
)
 
(11.6
)
 
(13.5
)
 
 
 
 
 
 
 
 
 
Total Revenue from Services
 
$
1,267.7

 
$
1,342.4

 
$
4,017.8

 
$
4,099.2




12

KELLY SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(UNAUDITED)

Our operations are subject to different economic and regulatory environments depending on geographic location. Our GTS segment operates in the Americas, EMEA and APAC regions. In the third quarter of 2019 and 2018, GTS made up $485.0 million and $490.4 million in total Americas, respectively, $10.0 million and $11.0 million in total EMEA, respectively, and the entire balance in APAC. For September year to date in 2019 and 2018, GTS made up $1,457.8 million and $1,442.9 million in total Americas, respectively, $32.0 million and $34.3 million in total EMEA, respectively, and the entire balance in APAC.

The below table presents our revenues disaggregated by geography (in millions):
 
 
Third Quarter
 
September Year to Date
 
 
2019
 
2018
 
2019
 
2018
Americas
 
 
 
 
 
 
 
 
United States
 
$
903.2

 
$
942.5

 
$
2,913.4

 
$
2,898.4

Canada
 
34.6

 
37.0

 
100.8

 
107.6

Mexico
 
32.4

 
32.3

 
89.6

 
92.7

Puerto Rico
 
18.8

 
28.2

 
57.6

 
74.2

Brazil
 
8.4

 
8.1

 
25.1

 
26.6

Total Americas
 
997.4

 
1,048.1

 
3,186.5

 
3,199.5

 
 
 
 
 
 
 
 
 
EMEA
 
 
 
 
 
 
 
 
France
 
59.7

 
68.8

 
188.6

 
212.7

Switzerland
 
50.6

 
53.8

 
150.0

 
156.3

Portugal
 
44.0

 
48.2

 
135.5

 
150.5

Russia
 
29.9

 
24.0

 
84.1

 
75.7

United Kingdom
 
24.9

 
28.1

 
81.6

 
85.6

Italy
 
18.5

 
18.3

 
59.8

 
58.1

Germany
 
11.5

 
13.8

 
32.5

 
45.0

Ireland
 
7.1

 
11.3

 
28.1

 
34.3

Other
 
16.6

 
21.8

 
51.5

 
64.6

Total EMEA
 
262.8

 
288.1

 
811.7

 
882.8

 
 
 
 
 
 
 
 
 
Total APAC
 
7.5

 
6.2

 
19.6

 
16.9

 
 
 
 
 
 
 
 
 
Total Kelly Services, Inc.
 
$
1,267.7

 
$
1,342.4

 
$
4,017.8

 
$