KELLY SERVICES INCKELYA
KELLY SERVICES INC Segments Disclosure
19. Segment Disclosures
The Company’s operating segments, which also represent its reportable 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. In the first quarter of 2025, the Company modified its reportable segments. The Company’s three reportable segments: (1) ETM, (2) SET and (3) Education, 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 Company combined its former P&I and OCG segments into the ETM segment in the first quarter of 2025, responding to a shift in customer demand toward integrated workforce solutions and enabling a more streamlined and efficient go-to-market approach. The Company also realigned certain customers from the SET segment to the ETM segment to support this integrated strategy. Also in the first quarter of 2025, the Company moved MRP's Sevenstep business from the SET segment to the ETM segment as part of the broader integration of MRP. The 2024 and 2023 ETM and SET segment information has been recast to conform to the new structure.
Prior to 2024, the Company also had an International operating segment. Beginning in the first quarter of 2024, the Company's organizational structure no longer includes the International segment following the sale of the EMEA staffing operations in January 2024. The Company's Mexico operations, which were previously in the Company's International segment, were included in P&I before the first quarter of 2025 and are now included in the ETM segment.
ETM delivers staffing, outcome-based and permanent placement services, providing administrative, accounting and finance, light industrial and contact center staffing and other workforce solutions in the U.S. and Canada, including the Company's KellyConnect and Skilled Professional Solutions products. ETM also provides global talent supply chain and workforce solutions, including MSP, RPO, PPO and executive coaching programs to customers on a global basis and includes the Company's RocketPower and Sevenstep brands. SET provides highly specialized skills to a variety of industries through staffing, outcome-based and permanent placement services. SET is focused on science and clinical research, engineering, technology and telecommunications specialties predominantly in the U.S. and Canada and includes MRP, Softworld, NextGen and Global Technology Associates brands. Education delivers high quality education and therapy services talent through staffing, permanent placement and executive search services to Pre-K-12 school districts and education organizations across the U.S. and includes Teachers On Call, Greenwood/Asher and PTS brands.
The Company utilizes a shared services approach for certain enterprise functions including IT, human resources, legal and finance support in the US and Canada. Expenses incurred to directly support the operating units have been allocated to ETM, SET and Education based on work effort, volume or, in the absence of a readily available measurement process, proportionately based on gross profit realized. Certain expenses related to incentive compensation, law and risk management, certain finance and accounting functions, executive management and corporate campus facilities do not directly benefit a specific operating segment and are not included in the segment results. These costs, as well as costs related to acquisition integration and transformation activities and disposition transition expenses, are included in Corporate expenses in the following tables. In addition to the change in the Company's segment structure in the first quarter of 2025, the Company reassessed the allocation of corporate expenses to the operating segments and allocated additional costs which are attributable to the business from corporate.
In the first quarter of 2024, the Company changed the segment profitability measure from earnings from operations to a business unit profit measure that excludes depreciation and amortization. This change provides management with greater visibility into the financial performance of the segments and how they contribute to the Company's overall performance. The CODM leverages the business unit profit measure during the annual budgeting and forecasting processes, as well as to assess segment profitability, guide resource allocation and evaluate the alignment of compensation plans with strategic goals.
The following tables present information about the reported revenue from services of the Company by reportable segment, along with a reconciliation to earnings (loss) before taxes, for 2025, 2024 and 2023. Asset information by reportable segment is not presented, since the Company does not produce such information internally nor does it use such information to manage its business.
| December Year-to-Date 2025 | |||||||||||||||||
| ETM | SET | Education | Inter-Segment | Total | |||||||||||||
| Revenue from services | $ | 2,005.5 | $ | 1,240.4 | $ | 1,010.7 | $ | (5.7) | $ | 4,250.9 | |||||||
Cost of services(1) | 1,612.7 | 927.2 | 863.7 | (5.7) | 3,397.9 | ||||||||||||
Direct salaries(2) | 248.8 | 182.3 | 60.8 | ||||||||||||||
Other segment expenses(3) | 124.2 | 64.8 | 40.2 | ||||||||||||||
| SG&A expenses | 373.0 | 247.1 | 101.0 | 721.1 | |||||||||||||
| Goodwill impairment charge | — | 102.0 | — | 102.0 | |||||||||||||
| Business unit profit (loss) | $ | 19.8 | $ | (35.9) | $ | 46.0 | $ | 29.9 | |||||||||
| Corporate SG&A | (53.8) | ||||||||||||||||
| Gain on sale of assets | 1.0 | ||||||||||||||||
| Gain on sale of EMEA staffing operations | 4.1 | ||||||||||||||||
Depreciation and amortization(4) | (51.0) | ||||||||||||||||
| Consolidated earnings (loss) from operations | (69.8) | ||||||||||||||||
| Other income (expense), net | (9.0) | ||||||||||||||||
| Earnings (loss) before taxes | $ | (78.8) | |||||||||||||||
| December Year-to-Date 2024 | |||||||||||||||||
| ETM | SET | Education | Inter-Segment | Total | |||||||||||||
| Revenue from services | $ | 2,196.1 | $ | 1,165.7 | $ | 972.3 | $ | (2.3) | $ | 4,331.8 | |||||||
Cost of services(1) | 1,751.2 | 867.8 | 832.5 | (2.3) | 3,449.2 | ||||||||||||
Direct salaries(2) | 254.5 | 161.5 | 60.5 | ||||||||||||||
Other segment expenses(3) | 131.4 | 65.2 | 35.4 | ||||||||||||||
| SG&A expenses | 385.9 | 226.7 | 95.9 | 708.5 | |||||||||||||
| Goodwill impairment charge | — | 72.8 | — | 72.8 | |||||||||||||
| Business unit profit (loss) | $ | 59.0 | $ | (1.6) | $ | 43.9 | $ | 101.3 | |||||||||
| Corporate SG&A | (58.4) | ||||||||||||||||
| Asset impairment charge | (13.5) | ||||||||||||||||
| Gain on sale of EMEA staffing operations | 1.6 | ||||||||||||||||
| Gain on sale of assets | 5.4 | ||||||||||||||||
Depreciation and amortization(4) | (51.5) | ||||||||||||||||
| Consolidated earnings (loss) from operations | (15.1) | ||||||||||||||||
| Other income (expense), net | (6.8) | ||||||||||||||||
| Earnings (loss) before taxes | $ | (21.9) | |||||||||||||||
| December Year-to-Date 2023 | ||||||||||||||||||||
| ETM | SET | Education | International | Inter-Segment | Total | |||||||||||||||
| Revenue from services | $ | 2,214.4 | $ | 970.6 | $ | 841.9 | $ | 812.1 | $ | (3.3) | $ | 4,835.7 | ||||||||
Cost of services(1) | 1,748.7 | 723.7 | 713.2 | 692.0 | (3.3) | 3,874.3 | ||||||||||||||
Direct salaries(2) | 285.3 | 121.9 | 59.6 | 83.6 | ||||||||||||||||
Other segment expenses(3) | 146.9 | 62.9 | 32.8 | 38.4 | ||||||||||||||||
| SG&A expenses | 432.2 | 184.8 | 92.4 | 122.0 | 831.4 | |||||||||||||||
| Asset impairment charge | 2.3 | 0.1 | — | — | 2.4 | |||||||||||||||
| Business unit profit (loss) | $ | 31.2 | $ | 62.0 | $ | 36.3 | $ | (1.9) | $ | 127.6 | ||||||||||
| Corporate SG&A | (63.2) | |||||||||||||||||||
Depreciation and amortization(4) | (40.1) | |||||||||||||||||||
| Consolidated earnings from operations | 24.3 | |||||||||||||||||||
| Other income (expense), net | 0.6 | |||||||||||||||||||
| Earnings before taxes | $ | 24.9 | ||||||||||||||||||
(1) Cost of services are those costs directly associated with the earning of revenue. The primary examples of these types of costs are temporary employee wages, along with other employee related costs, including associated payroll taxes, temporary employee benefits, such as service bonus, holiday pay, health insurance and workers’ compensation costs. These costs differ fundamentally from SG&A expenses in that they arise specifically from the action of providing the Company's services to customers whereas SG&A costs are incurred regardless of whether or not the Company places temporary employees with the Company's customers.
(2) Direct salaries refers to the compensation expenses for employees directly related to the Company’s operations and service delivery. These expenses include salaries, related payroll taxes, various benefits and performance-based incentives and bonuses for these employees. In the International segment, this includes costs related to IT, human resources, legal and finance costs incurred in the foreign subsidiaries.
(3) Other segment expenses includes shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs and operational software licenses.
(4) Represents total company depreciation and amortization of intangibles, including the amortization of hosted software.
Depreciation and amortization expense is included in SG&A expenses in the Company's consolidated statements of earnings. Depreciation and amortization expense amounts below include amortization of hosted software, which are excluded in the presentation of depreciation and amortization in the Company's consolidated statements of cash flows. The depreciation and amortization amounts by segment are as follows:
| 2025 | 2024 | 2023 | |||||||||
| Depreciation and amortization: | |||||||||||
| Enterprise Talent Management | $ | 11.4 | $ | 17.6 | $ | 14.3 | |||||
| Science, Engineering & Technology | 31.2 | 25.6 | 15.7 | ||||||||
| Education | 8.4 | 8.3 | 7.7 | ||||||||
| International | — | — | 2.4 | ||||||||
A summary of revenue from services by geographic area was as follows:
| 2025 | 2024 | 2023 | |||||||||
| Revenue from Services: | |||||||||||
| United States | $ | 3,807.9 | $ | 3,876.9 | $ | 3,555.8 | |||||
| Foreign | 443.0 | 454.9 | 1,279.9 | ||||||||
| Total | $ | 4,250.9 | $ | 4,331.8 | $ | 4,835.7 | |||||
Foreign revenue is based on the country in which the legal subsidiary is domiciled. No single foreign country’s revenue represented more than 10% of the consolidated revenues of the Company. No single customer represented more than 10% of the consolidated revenues of the Company.
A summary of long-lived assets information by geographic area was as follows:
| 2025 | 2024 | |||||||
| Long-Lived Assets: | ||||||||
| United States | $ | 60.1 | $ | 70.1 | ||||
| Foreign | 3.3 | 2.8 | ||||||
| Total | $ | 63.4 | $ | 72.9 | ||||
Long-lived assets represent property and equipment and ROU assets. No single foreign country’s long-lived assets represented more than 10% of the consolidated long-lived assets of the Company.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 17, 2022 | |
| 2021 | Feb 18, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 18, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.