1. Summary of Significant Accounting Policies

Nature of Operations Kelly Services, Inc. is a global workforce solutions provider operating throughout the world.

Fiscal Year The Company’s fiscal year ends on the Sunday nearest to December 31. The three most recent years ended on January 1, 2012 (2011, which contained 52 weeks), January 2, 2011 (2010, which contained 52 weeks) and January 3, 2010 (2009, which contained 53 weeks). Period costs included in selling, general and administrative (“SG&A”) expenses are recorded on a calendar-year basis.

Principles of Consolidation The consolidated financial statements include the accounts and operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s operations in Brazil, which were acquired in the fourth quarter of 2011, are accounted for on a one-month lag. Any material transactions in the intervening period are disclosed or accounted for in the current reporting period.

Available-For-Sale Investment Available-for-sale investments are carried at fair value with the unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Realized losses and declines in value below cost judged to be other-than-temporary on such securities are included as a component of asset impairments expense in the consolidated statement of earnings. The fair values of available-for-sale investments are based on quoted market prices.

Foreign Currency Translation All of the Company’s international subsidiaries use their local currency as their functional currency. Revenue and expense accounts of foreign subsidiaries are translated to U.S. dollars at average exchange rates, while assets and liabilities are translated to U.S. dollars at year-end exchange rates. Resulting translation adjustments, net of deferred taxes, where applicable, are reported as accumulated foreign currency adjustments in stockholders’ equity and are recorded as a component of accumulated other comprehensive income.

Revenue Recognition Revenue from services is recognized as services are provided by the temporary or contract employees. Revenue from permanent placement services is recognized at the time the permanent placement candidate begins full-time employment. Revenue from other fee-based consulting services is recognized when the services are provided. Provisions for sales allowances, based on historical experience, are recognized at the time the related sale is recognized as a reduction in revenue from services.

Allowance for Uncollectible Accounts Receivable The Company records an allowance for uncollectible accounts receivable based on historical loss experience, customer payment patterns and current economic trends. The reserve for sales allowances, as discussed above, is also included in the allowance for uncollectible accounts receivable. The Company reviews the adequacy of the allowance for uncollectible accounts receivable on a quarterly basis and, if necessary, increases or decreases the balance by recording a charge or credit to SG&A expenses.

Cost of Services 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 associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay, and workers’ compensation costs. These costs differ fundamentally from SG&A expenses in that they arise specifically from the action of providing our services to customers whereas SG&A costs are incurred regardless of whether or not we place temporary employees with our customers.

Advertising Expenses Advertising expenses from continuing operations, which are expensed as incurred and are included in SG&A expenses, were $7.5 million in 2011, $7.0 million in 2010 and $7.1 million in 2009.

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the accounting for the allowance for uncollectible accounts receivable, workers’ compensation, goodwill and long-lived asset impairment, litigation costs and income taxes. Actual results could differ materially from those estimates.

Cash and Equivalents Cash and equivalents are stated at fair value. The Company considers securities with original maturities of three months or less to be cash and equivalents.

Property and Equipment Property and equipment are stated at cost and are depreciated over their estimated useful lives, principally by the straight-line method. Cost and estimated useful lives of property and equipment by function are as follows:

Category		2011				2010				Life
		(In millions of dollars)
Land		$	3.8			$	3.8			—
Work in process			8.6				7.0			—
Buildings and improvements			55.5				55.2			15 to 45 years
Computer hardware and software			190.0				183.4			3 to 12 years
Equipment, furniture and fixtures			33.6				33.9			5 years
Leasehold improvements			35.4				36.0			The lesser of the life of the lease or 5 years.
Total property and equipment		$	326.9			$	319.3

The Company capitalizes external costs and internal payroll costs incurred in the development of software for internal use as required by the Internal-Use Software Subtopic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Work in process represents capitalized costs for internal use software not yet in service and is included in property and equipment on the consolidated balance sheet. Depreciation expense from continuing operations was $28.9 million for 2011, $31.3 million for 2010 and $36.0 million for 2009.

Operating Leases The Company recognizes rent expense on a straight-line basis over the lease term. This includes the impact of both scheduled rent increases and free or reduced rents (commonly referred to as “rent holidays”). The Company records allowances provided by landlords for leasehold improvements as deferred rent in the consolidated balance sheet and as operating cash flows in the consolidated statement of cash flows.

Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Purchased intangible assets with definite lives are recorded at estimated fair value at the date of acquisition and are amortized over their respective useful lives (from 3 to 15 years) on an accelerated basis commensurate with the related cash flows.

Impairment of Long-Lived Assets and Intangible Assets The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When estimated undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its estimated fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or estimated fair value less cost to sell.

We test goodwill for impairment at the reporting unit level annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. We have determined that our reporting units are the same as our operating and reportable segments based on our organizational structure and the financial information that is provided to and reviewed by management. Goodwill is tested for impairment using a two-step process. In the first step, the estimated fair value of a reporting unit is compared to its carrying value. If the estimated fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is not considered impaired and no further testing is required.

If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of a reporting unit, a second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference.

Accounts Payable Included in accounts payable are outstanding checks in excess of funds on deposit. Such amounts totaled $18.9 million and $10.2 million at year-end 2011 and 2010, respectively.

Accrued Payroll and Related Taxes Included in accrued payroll and related taxes are outstanding checks in excess of funds on deposit. Such amounts totaled $6.6 million and $6.4 million at year-end 2011 and 2010, respectively. Payroll taxes for temporary employees are recognized proportionately to direct wages for interim periods based on expected full-year amounts.

Income Taxes The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are provided 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.

Uncertain tax positions that are taken or expected to be taken in a tax return are recognized in the financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement.

Interest and penalties related to income taxes are accounted for as income tax expense.

Stock-Based Compensation The Company may grant restricted stock awards, stock options (both incentive and nonqualified), stock appreciation rights and performance awards to key employees utilizing the Company’s Class A stock. The Company utilizes the market price on the date of grant as the fair market value for restricted stock awards and estimates the fair value of stock option awards on the date of grant using an option-pricing model. The value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods in SG&A expense in the Company’s consolidated statements of earnings.

Earnings Per Share Restricted stock awards that entitle their holders to receive nonforfeitable dividends before vesting are considered participating securities and, therefore, included in the calculation of earnings per share using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under this method, earnings from continuing operations (or net earnings) is reduced by the amount of dividends declared, and the remaining undistributed earnings is allocated to common stock and participating securities based on the proportion of each class’s weighted average shares outstanding to the total weighted average shares outstanding. The calculation of diluted earnings per share includes the effect of potential common shares outstanding in the average weighted shares outstanding.

Workers’ Compensation The Company establishes accruals for workers’ compensation claims utilizing actuarial methods to estimate the undiscounted future cash payments that will be made to satisfy the claims. The estimates are based both on historical experience as well as current legal, economic and regulatory factors. The Company regularly updates its estimates, and the ultimate cost of these claims may be greater than or less than the established accrual. During 2011, the Company revised its estimate of the cost of outstanding workers’ compensation claims and, accordingly, reduced expense by $5.6 million. This compares to adjustments reducing prior year workers’ compensation claims by $5.2 million in 2010 and $2.8 million in 2009.

2. Fair Value Measurements

Trade accounts receivable, accounts payable, accrued liabilities, accrued payroll and related taxes and short-term borrowings approximate their fair values due to the short-term maturities of these assets and liabilities.

Assets Measured at Fair Value on a Recurring Basis

The following tables present the assets carried at fair value as of January 1, 2012 and January 2, 2011 on the consolidated balance sheet by fair value hierarchy level, as described below.

		Fair Value Measurements on a Recurring Basis
		As of January 1, 2012
Description		Total				Level 1				Level 2				Level 3
		(In millions of dollars)
Money market funds		$	2.0			$	2.0			$	—			$	—
Available-for-sale investment			27.1				27.1				—				—
Total assets at fair value		$	29.1			$	29.1			$	—			$	—

		Fair Value Measurements on a Recurring Basis
		As of January 2, 2011
Description		Total				Level 1				Level 2				Level 3
		(In millions of dollars)
Money market funds		$	4.1			$	4.1			$	—			$	—
Available-for-sale investment			27.8				27.8				—				—
Forward exchange contracts, net			0.7				—				0.7				—
Total assets at fair value		$	32.6			$	31.9			$	0.7			$	—

Level 1 measurements consist of 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.

Money market funds as of January 1, 2012 represent investments in money market accounts, all of which are restricted cash and are included in prepaid expenses and other current assets on the consolidated balance sheet. Money market funds as of January 2, 2011 represent investments in money market accounts, of which $2.9 million is included in cash and equivalents and $1.2 million of restricted cash is included in prepaid expenses and other current assets on the consolidated balance sheet. The valuations were based on quoted market prices of those accounts as of the respective period end.

Available-for-sale investment represents the Company’s investment in Temp Holdings Co., Ltd. (“Temp Holdings”) and is included in other assets on the consolidated balance sheet. The valuation is based on the quoted market price of Temp Holdings stock on the Tokyo Stock Exchange as of the period end. The unrealized loss of $2.1 million pretax and net of tax for the year ended January 1, 2012 and unrealized gain of $1.0 million pretax and net of tax for the year ended January 2, 2011 was recorded in other comprehensive income, as well as in accumulated other comprehensive income, a component of stockholders’ equity.

During 2010, the Company entered into two forward foreign currency exchange contracts to offset the variability in exchange rates on its yen-denominated debt. One contract matured in May, 2011 and the other contract matured in November, 2010. During the first quarter of 2011, the yen-denominated debt was paid in full. As a result, the Company entered into an additional forward foreign currency exchange contract during the first quarter of 2011 to offset the remaining open contract that was purchased during 2010.

Prior to maturity, these contracts, which were included in prepaid expenses and other current assets on the consolidated balance sheet, were valued using market exchange rates and were not designated as hedging instruments. Accordingly, gains and losses resulting from recording the foreign exchange contracts at fair value were reported in other expense, net on the consolidated statement of earnings, and amounted to a minor loss for the year ended January 1, 2012 and a gain of $1.6 million for the year ended January 2, 2011.

The two aforementioned forward currency exchange contracts, one to buy Japanese yen with a U.S. dollar equivalent of $6.1 million and one to sell Japanese yen with a U.S. dollar equivalent of $6.8 million, matured in May, 2011. At January 1, 2012, the Company had no open forward foreign currency exchange contracts. At January 2, 2011, the Company had one open forward foreign currency exchange contract with an expiration date of less than one year to buy foreign currencies with a U.S. dollar equivalent of $6.1 million.

During 2011, the Company entered into one non-deliverable forward foreign currency exchange contract to economically hedge the anticipated acquisition of Tradição by selling U.S. dollars and buying Brazilian real that matured on October 13, 2011. The acquisition was deferred until November 16, 2011, and the forward settled upon maturity with the counterparty. The resulting gain of $0.4 million was reported in other expense, net on the consolidated statement of earnings for the year ended January 1, 2012. As of the year end January 1, 2012, the Company had no open forward foreign currency exchange contracts. The Company does not use financial instruments for trading or speculative purposes.

Assets Measured at Fair Value on a Nonrecurring Basis

We completed our annual impairment test for all reporting units in the fourth quarter for the fiscal year ended January 1, 2012 and January 2, 2011 and determined that goodwill was not impaired. The estimated fair value of each reporting unit exceeded its related carrying value. During the second quarter of 2010, continuing operating losses in the Company’s OCG reporting unit were deemed to be a triggering event for purposes of assessing goodwill for impairment. Accordingly, we tested goodwill related to OCG and determined that OCG goodwill was not impaired.

Our analysis used significant assumptions by segment, including: expected future revenue and expense growth rates, profit margins, cost of capital, discount rate and forecasted capital expenditures. Our revenue projections assumed near-term growth consistent with current year results, followed by long-term modest growth. Assumptions and estimates about future cash flows and discount rates are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and internal forecasts. For example, a 10% reduction in our growth rate assumptions would not result in the estimated fair value falling below book value for any of our segments.

In the second quarter of 2009, due to significantly worse than anticipated economic conditions and the impacts to our business, we revised our internal forecasts for all of our segments, which we deemed to be a triggering event for purposes of assessing goodwill for impairment. Accordingly, goodwill at all of our reporting units was tested for impairment in the second quarter of 2009. As a result, we recorded a goodwill impairment loss of $50.5 million, of which $16.4 million related to the Americas Commercial reporting unit, $22.0 million related to the EMEA PT reporting unit and $12.1 million related to the APAC Commercial reporting unit. The expense was recorded in the asset impairments line on the consolidated statement of earnings.

We evaluate long-lived assets, including intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, based on estimated undiscounted future cash flows. In 2010, management assessed the viability of certain incomplete software projects in Europe and the U.S. Based on the estimated costs to complete, management terminated the projects and recorded impairment charges of $2.0 million. After the impairment charges, the remaining balance related to these software projects was zero, which represented the fair value at January 2, 2011.

The Company’s estimates as of June 28, 2009 resulted in a $2.1 million reduction in the carrying value of long-lived assets and intangible assets in Japan. Additionally, the Company’s estimates as of September 27, 2009 resulted in a $0.5 million reduction in the carrying value of long-lived assets and intangible assets in Europe.

3. Acquisitions

To establish the Company’s presence in the Brazilian market, we acquired the stock of Tradição Planejamento e Tecnologia de Serviços S.A. and Tradição Tecnologia e Serviços Ltda. (collectively, “Tradição”), a national service provider in Brazil, during the fourth quarter of 2011 for $6.6 million in cash. Tradição will be included as a business unit in the Americas Commercial operating segment. The purchase price allocation for this acquisition, which is based on the fair value of assets acquired and liabilities assumed, is preliminary and could change, subject to the completion of the asset valuation, which is ongoing as of the date of this filing.

The operating results of Tradição will be accounted for on a one-month lag; accordingly, Kelly’s consolidated financial statements for 2011 do not include operating results for Tradição. Proforma financial information related to the acquisition is not presented due to immateriality. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition.

Current assets		$	6.3
Goodwill			22.9
Identified intangibles			5.3
Other noncurrent assets			0.7
Current liabilities			(14.4	)
Noncurrent liabilities			(14.2	)
Total purchase price		$	6.6

Included in the assets purchased was approximately $2.3 million of intangible assets associated with customer lists. These assets will be amortized over approximately 7 years based on the expected cash flows and will have no residual value.

During 2009, we made the following payments: $5.7 million earnout payment related to the 2007 acquisition of access AG, $1.0 million related to the 2007 acquisition of CGR/seven LLC, $0.6 million earnout payment related to the 2006 acquisition of The Ayers Group and $0.2 million earnout payment related to the 2008 acquisition of Toner Graham.

4. Restructuring

Restructuring costs incurred in 2011 amounted to $2.8 million and primarily relate to adjustments to estimated lease termination costs for EMEA Commercial branches that closed in prior years. Restructuring costs incurred in 2010 totaled $7.2 million and primarily related to severance costs for the corporate headquarters and severance and lease termination costs for branches in the EMEA Commercial and APAC Commercial segments that were in the process of closure at the end of 2009. Restructuring costs totaled $29.9 million in 2009 and primarily related to global severance, lease terminations, asset write-offs and other miscellaneous costs incurred in connection with the reduction of approximately 1,900 permanent employees and the consolidation, sale or closure of approximately 240 branch locations. These costs were reported as a component of SG&A expenses. Total costs incurred since July 2008 for the restructuring program amounted to $46.4 million.

A summary of our balance sheet accrual related to the global restructuring costs follows (in millions of dollars):

Balance as of January 3, 2010		$	12.7
Amounts charged to operations			7.2
Noncash charges			(0.1	)
Reductions for cash payments			(15.1	)
Balance as of January 2, 2011			4.7
Amounts charged to operations			2.8
Reductions for cash payments			(3.0	)
Balance as of January 1, 2012		$	4.5

The remaining balance of $4.5 million as of January 1, 2012 represents primarily severance and future lease payments and is expected to be paid by 2018. On a quarterly basis, the Company reassesses the accrual associated with restructuring costs and adjusts it as necessary.

5. Goodwill

There were no changes in the net carrying amount of goodwill for the fiscal year 2010. The changes in the net carrying amount of goodwill for the fiscal year 2011 are included in the table below. See Acquisitions footnote for a description of additions to goodwill in fiscal 2011.

		Goodwill,				Accumulated												Goodwill,				Accumulated				Goodwill,
		Gross				Impairment				Additions								Gross				Impairment				Net
		as of				Losses as of				to				Impairment				as of				Losses as of				as of
		Jan. 2, 2011				Jan. 2, 2011				Goodwill				Losses				Jan. 1, 2012				Jan. 1, 2012				Jan. 1, 2012
		(In millions of dollars)
Americas
Americas Commercial		$	16.4			$	(16.4	)		$	22.9			$	—			$	39.3			$	(16.4	)		$	22.9
Americas PT			39.2				—				—				—				39.2				—				39.2
Total Americas			55.6				(16.4	)			22.9				—				78.5				(16.4	)			62.1
EMEA
EMEA Commercial			50.4				(50.4	)			—				—				50.4				(50.4	)			—
EMEA PT			22.0				(22.0	)			—				—				22.0				(22.0	)			—
Total EMEA			72.4				(72.4	)			—				—				72.4				(72.4	)			—
APAC
APAC Commercial			12.1				(12.1	)			—				—				12.1				(12.1	)			—
APAC PT			1.8				—				—				—				1.8				—				1.8
Total APAC			13.9				(12.1	)			—				—				13.9				(12.1	)			1.8
OCG			26.3				—				—				—				26.3				—				26.3
Consolidated Total		$	168.2			$	(100.9	)		$	22.9			$	—			$	191.1			$	(100.9	)		$	90.2

6. Other Assets

Included in other assets are the following:

		2011				2010
		(In millions of dollars)
Deferred compensation plan (See Retirement Benefits footnote)		$	88.2			$	87.8
Available-for-sale investment (See Fair Value Measurements footnote)			27.1				27.8
Workers’ compensation receivable			15.1				14.3
Intangibles, net of accumulated amortization of $20.2 million and $18.1 million, respectively			11.9				9.1
Other			9.8				15.5
Other assets		$	152.1			$	154.5

Intangible amortization expense was $2.5 million, $3.6 million and $4.9 million in 2011, 2010 and 2009, respectively.

7. Debt

Short-Term Debt

On March 31, 2011, the Company entered into an agreement with its lenders to amend and restate its existing secured $90 million, three-year revolving credit facility (the “Facility”). The amendment increased the capacity of the Facility to $150 million, and extended the term of the Facility to March 31, 2016 from September 28, 2012. The Facility allows for borrowings in various currencies and is used to fund working capital, acquisitions, and general corporate needs.

The interest rate applicable to borrowings under the Facility at January 1, 2012 was 200 basis points over the London InterBank Offering Rate (“LIBOR”) in addition to a facility fee of 25 basis points. LIBOR rates vary by currency. The Company may also borrow using rates based on the Prime Rate; these loans have shorter notice periods and interest periods. At January 1, 2012, the prime-rate based loans were available to the Company at the Prime Rate plus 100 basis points in addition to the facility fee of 25 basis points.

At January 1, 2012, borrowings under the Facility were $6.2 million, with an interest rate of 2.90%, and the Facility had a remaining capacity of $143.8 million. In connection with the refinancing, certain of the Facility’s financial covenants and restrictions were amended and are described below, all of which were met at January 1, 2012:

•

The Company must not allow its ratio of earnings before interest, taxes, depreciation, amortization and certain cash and non-cash charges that are non-recurring in nature (“EBITDA”) to interest expense (“Interest Coverage Ratio”) for the last twelve months to be below 4.0 to 1.0 as of the end of any fiscal quarter ending prior to the fourth quarter of 2012 and 5.0 to 1.0 thereafter.

•

The Company must keep its ratio of total indebtedness to the sum of net worth and total indebtedness below 0.4 to 1.0 at all times.

•

Dividends, stock buybacks and similar transactions are limited based on the Interest Coverage Ratio. When the Interest Coverage Ratio is below 5.0 to 1.0, the Company may pay up to $20 million in aggregate over the four most recent fiscal quarters including the current quarter; when the Interest Coverage Ratio is above 5.0 to 1.0, the Company may pay up to $30 million in aggregate over the four most recent fiscal quarters including the current quarter.

•

The Company must adhere to other operating restrictions relating to the conduct of business, such as certain limitations on asset sales and the type and scope of investments.

At January 2, 2011, there were no borrowings under the Facility.

On March 31, 2011, the Company and Kelly Receivables Funding, LLC, a wholly owned bankruptcy remote special purpose subsidiary of the Company (the “Receivables Entity”), amended the Receivables Purchase Agreement related to the $100 million securitization facility (“Securitization Facility”). The amendment (i) extended the term of the Securitization Facility from 364 days to three years, (ii) reduced borrowing costs, and (iii) increased the capacity from $100 to $150 million. The Receivables Purchase Agreement will terminate December 4, 2014, unless terminated earlier pursuant to its terms.

Under the Securitization Facility, the Company will sell certain trade receivables and related rights (“Receivables”), on a revolving basis, to the Receivables Entity. The Receivables Entity may from time to time sell an undivided variable percentage ownership interest in the Receivables. The Securitization Facility also allows for the issuance of standby letters of credit (“SBLC”). The Securitization Facility contains a cross-default clause that could result in termination if defaults occur under our other loan agreements. The Securitization Facility also contains certain restrictions based on the performance of the Receivables.

As of January 1, 2012, the Securitization Facility carried $84.0 million of short-term borrowings at a rate of 1.43% and $50.1 million of SBLCs related to workers’ compensation. The interest rate applicable to borrowings under the Securitization Facility at January 1, 2012 was 55 basis points over the cost of commercial paper, in addition to a facility fee of 60 basis points. As of January 1, 2012, the remaining capacity on the Facility was $15.9 million.

As of January 2, 2011, the Securitization Facility carried $17.0 million of short-term borrowings at a rate of 1.57%, SBLCs related to workers’ compensation of $45.7 million and remaining capacity of $37.3 million.

The Receivables Entity’s sole business consists of the purchase or acceptance through capital contributions of trade accounts receivable and related rights from the Company. As described above, the Receivables Entity may retransfer these receivables or grant a security interest in those receivables under the terms and conditions of the Receivables Purchase Agreement. The Receivables Entity is a separate legal entity with its own creditors who would be entitled, if it were ever liquidated, to be satisfied out of its assets prior to any assets or value in the Receivables Entity becoming available to its equity holders. The assets of the Receivables Entity are not available to pay creditors of the Company or any of its other subsidiaries. The assets and liabilities of the Receivables Entity are included in the consolidated financial statements of the Company.

Subsequent to the acquisition of Tradição in November, 2011 (see Acquisitions footnote), the Company established an unsecured, uncommitted revolving line of credit for the Brazilian entities, which used the facility to pay off existing short-term debt. Included in financing activities in the Company’s consolidated statement of cash flows for 2011 are short-term borrowings of $6.1 million and repayment of debt of $5.4 million to reflect this activity.

The Company had unsecured, uncommitted short-term local credit facilities, including the Brazilian facility described above, that totaled $15.9 million as of January 1, 2012. Borrowings under these lines totaled $6.1 million and $0.1 million at year-end 2011 and 2010, respectively. The interest rate for these borrowings was 13.4% at January 1, 2012 and 5.0% at January 2, 2011.

Long-Term Debt

The Company had a three-year syndicated term loan facility comprised of 9 million euros and 5 million U.K. pounds, and a five-year, 6 billion yen-denominated loan agreement, all of which had a maturity date of October 3, 2011. In March, 2011, the Company fully paid these loans, using borrowings from the revolving credit facility and Securitization Facility.

As of January 2, 2011, the U.S. dollar amount outstanding on the euro and U.K. pound facility, which fluctuated based on foreign exchange rates, totaled approximately $19.7 million, all of which was classified as current, and carried an interest rate which ranged from 4.24% to 4.44%. As of January 2, 2011, the U.S. dollar amount outstanding on the yen-denominated loan balance, which also fluctuated based on foreign exchange rates, totaled approximately $42.0 million, all of which was classified as current, and carried an interest rate of 3.7%.

8. Retirement Benefits

The Company provides a qualified defined contribution plan covering substantially all U.S.-based full-time employees, except officers and certain other management employees. Upon approval by the Board of Directors, a discretionary contribution based on eligible wages may be funded annually. Discretionary contributions, which were suspended in 2009, were reinstated in 2010. The plan also offers a savings feature with Company matching contributions. Company matching contributions were suspended as of October, 2009, and were reinstated effective January, 2011. Assets of this plan are held by an independent trustee for the sole benefit of participating employees.

A nonqualified deferred compensation plan is provided for officers and certain other management employees. Upon approval by the Board of Directors, a discretionary contribution based on eligible wages may be made annually. Discretionary contributions, which were suspended in 2009, were reinstated in 2010. This plan also includes provisions for salary deferrals and Company matching contributions. Company matching contributions were suspended as of February, 2009 and were reinstated effective January, 2011.

The liability for the nonqualified plan was $91.7 million and $88.0 million as of year-end 2011 and 2010, respectively, and is included in current accrued payroll and related taxes and noncurrent accrued retirement benefits. The cost of participants’ earnings on this liability, which were included in SG&A expenses, were losses of $0.9 million in 2011, and earnings of $9.0 million in 2010 and $13.6 million in 2009. In connection with the administration of this plan, the Company has purchased company-owned variable universal life insurance policies insuring the lives of certain officers and key employees. The cash surrender value of these policies, which is based primarily on investments in mutual funds and can only be used for payment of the Company’s obligations related to the non-qualified deferred compensation plan noted above, was $88.2 million and $87.8 million at year-end 2011 and 2010, respectively. The cash surrender value of these insurance policies are included in other assets and are restricted for the specific use of funding this plan. Earnings on these assets, which were included in SG&A expenses, were losses of $1.8 million in 2011, and earnings of $10.1 million in 2010 and $13.8 million in 2009.

The net expense for retirement benefits for both the qualified and nonqualified deferred compensation plans, including Company matching and discretionary contributions, totaled $9.9 million in 2011, $0.6 million in 2010 and $0.6 million in 2009.

In addition, the Company also has several defined benefit pension plans in locations outside of the United States. The total projected benefit obligation, assets and unfunded liability for these plans as of January 1, 2012 were $12.8 million, $7.0 million and $5.8 million, respectively. The total projected benefit obligation, assets and unfunded liability for these plans as of January 2, 2011 were $11.9 million, $7.6 million and $4.3 million, respectively. Total pension expense for these plans was $0.9 million, $0.8 million and $1.0 million in 2011, 2010 and 2009, respectively. Pension contributions and the amount of accumulated other comprehensive income expected to be recognized in 2012 are not significant.

9. Stockholders’ Equity

Common Stock

The authorized capital stock of the Company is 100,000,000 shares of Class A common stock and 10,000,000 shares of Class B common stock. Class A shares have no voting rights and are not convertible. Class B shares have voting rights and are convertible by the holder into Class A shares on a share-for-share basis at any time. Both classes of stock have identical rights in the event of liquidation.

Class A shares and Class B shares are both entitled to receive dividends, subject to the limitation that no cash dividend on the Class B shares may be declared unless the Board of Directors declares an equal or larger cash dividend on the Class A shares. As a result, a cash dividend may be declared on the Class A shares without declaring a cash dividend on the Class B shares.

During 2011, the Company made dividend payments totaling $3.8 million.

On May 11, 2010, the Company sold 1,576,169 shares of Kelly’s Class A common stock to Temp Holdings. The shares were sold in a private transaction at $15.42 per share, which was the average of the closing prices of the Class A common stock for the five days from May 3, 2010 through May 7, 2010, and represented 4.8 percent of the outstanding Class A shares after the completion of the sale. As part of this transaction, Kelly added a representative of Temp Holdings to Kelly’s Board of Directors.

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income at year-end 2011 and 2010 were as follows:

		2011				2010
		(in millions of dollars)
Cumulative translation adjustments, net of tax benefit of $2.7 million in 2011 and $2.1 million in 2010		$	19.3			$	28.9
Unrealized gain on marketable securities			0.5				2.6
Pension liability, net of tax benefit of $0.1 million in 2011 and $0.2 million in 2010			(3.6	)			(2.5	)
		$	16.2			$	29.0

10. Earnings Per Share

The reconciliation of basic earnings per share on common stock for the year ended January 1, 2012 and January 2, 2011 follows (in millions of dollars except per share data). A reconciliation for 2009 is not applicable, since an allocation of the net loss in that year to participating securities would have an anti-dilutive effect on basic and diluted per share amounts.

		2011				2010
Earnings from continuing operations		$	64.9			$	26.1
Less: Earnings allocated to participating securities			(1.5	)			(0.3	)
Earnings from continuing operations available to common shareholders		$	63.4			$	25.8
Loss from discontinued operations		$	(1.2	)		$	—
Less: Loss allocated to participating securities			—				—
Loss from discontinued operations available to common shareholders		$	(1.2	)		$	—
Net earnings		$	63.7			$	26.1
Less: Earnings allocated to participating securities			(1.5	)			(0.3	)
Net earnings available to common shareholders		$	62.2			$	25.8
Basic earnings (loss) per share on common stock:
Earnings from continuing operations		$	1.72			$	0.71
Loss from discontinued operations		$	(0.03	)		$	—
Net earnings		$	1.69			$	0.71
Diluted earnings (loss) per share on common stock:
Earnings from continuing operations		$	1.72			$	0.71
Loss from discontinued operations		$	(0.03	)		$	—
Net earnings		$	1.69			$	0.71
Average common shares outstanding (millions)
Basic			36.8				36.1
Diluted			36.8				36.1

Due to the fact that there were no potentially dilutive common shares outstanding during the period, the computations of basic and diluted earnings per share on common stock are the same for 2011, 2010 and 2009. Stock options representing 0.6 million, 0.7 million and 0.9 million shares for 2011, 2010 and 2009, respectively, were excluded from the computation of diluted earnings (loss) per share due to their anti-dilutive effect.

We have presented earnings per share for our two classes of common stock on a combined basis. This presentation is consistent with the earnings per share computations that result for each class of common stock utilizing the two-class method as described in ASC Topic 260, “Earnings Per Share”. The two-class method is an earnings allocation formula which determines earnings per share for each class of common stock according to the dividends declared (or accumulated) and participation rights in the undistributed earnings.

In applying the two class method, we have determined that the undistributed earnings should be allocated to each class on a pro rata basis after consideration of all of the participation rights of the Class B shares (including voting and conversion rights) and our history of paying dividends equally to each class of common stock on a per share basis.

The Company’s Restated Certificate of Incorporation allows the Board of Directors to declare a cash dividend to Class A shares without declaring equal dividends to the Class B shares. Class B shares’ voting and conversion rights, however, effectively allow the Class B shares to participate in dividends equally with Class A shares on a per share basis.

The Class B shares are the only shares with voting rights. The Class B shareholders are therefore able to exercise voting control with respect to all matters requiring stockholder approval, including the election of or removal of directors. The Board of Directors has historically declared and the Company historically has paid equal per share dividends on both the Class A and Class B shares. Each class has participated equally in all dividends declared since 1987.

In addition, Class B shares are convertible, at the option of the holder, into Class A shares on a one for one basis. As a result, Class B shares can participate equally in any dividends declared on the Class A shares by exercising their conversion rights.

11. Stock-Based Compensation

Under the Equity Incentive Plan (the “Plan”), the Company may grant stock options (both incentive and nonqualified), stock appreciation rights, restricted stock awards and performance awards to key employees utilizing the Company’s Class A stock. The Plan provides that the maximum number of shares available for grants is 10 percent of the outstanding Class A stock, adjusted for Plan activity over the preceding five years. Shares available for future grants at January 1, 2012 under the Plan were 1,856,966. The Company issues shares out of treasury stock to satisfy stock-based awards. The Company has no intent to repurchase additional shares for the purpose of satisfying stock-based awards.

In 2011, 2010 and 2009, the Company recognized stock-based compensation cost of $5.7 million, $4.2 million and $6.0 million, respectively, as well as related tax benefits of $2.2 million, $1.6 million and $2.3 million, respectively.

Restricted Stock Awards

Restricted stock awards, which typically vest over a period of 3 to 5 years, are issued to certain key employees and are subject to forfeiture until the end of an established restriction period. The Company utilizes the market price on the date of grant as the fair market value of restricted stock awards and expenses the fair value on a straight-line basis over the vesting period.

A summary of the status of nonvested restricted stock awards under the Plan as of the year ended January 1, 2012 and changes during this period is presented as follows:

						Weighted
						Average
		Restricted				Grant Date
		Stock				Fair Value
Nonvested at January 2, 2011			708,405			$	18.85
Granted			464,800				16.84
Vested			(236,065	)			20.60
Forfeited			(29,150	)			17.62
Nonvested at January 1, 2012			907,990			$	17.41

As of January 1, 2012, unrecognized compensation cost related to unvested restricted shares totaled $13.0 million. The weighted average period over which this cost is expected to be recognized is approximately two years. The weighted average grant date fair value per share of restricted stock awards granted during 2011, 2010 and 2009 was $16.84, $18.08 and $12.82, respectively. The total fair market value of restricted shares vested during 2011, 2010 and 2009 was $3.7 million, $3.4 million and $2.8 million, respectively.

Stock Options

Under the terms of the Plan, stock options may not be granted at prices less than the fair market value on the date of grant, nor for a term exceeding 10 years, and typically vest over 3 years. The Company expenses the fair value of stock option grants on a straight-line basis over the vesting period. No stock options were granted in 2011, 2010 and 2009.

A summary of the status of stock option grants under the Plan as of the year ended January 1, 2012 and changes during this period is presented as follows:

										Weighted
						Weighted				Average
						Average				Remaining				Aggregate
						Exercise				Contractual				Intrinsic
		Options				Price				Term (Years)				Value
Outstanding at January 2, 2011			645,036			$	25.32
Granted			—				—
Exercised			—				—
Forfeited			—				—
Expired			(129,337	)			24.96
Outstanding at January 1, 2012			515,699			$	25.41				1.64			$	—
Options exercisable at January 1, 2012			515,699			$	25.41				1.64			$	—

The table above includes 51,000 of non-employee director shares outstanding at January 1, 2012.

As of January 1, 2012, there was no unrecognized compensation cost related to unvested stock options. No stock options were exercised in 2011, 2010 and 2009.

Windfall tax benefits, which were included in the “Sale of stock and other financing activities” component of net cash from financing activities in the consolidated statement of cash flows, were insignificant for 2011, 2010 and 2009.

12. Other Expense, Net

Included in other expense, net are the following:

		2011				2010				2009
		(In millions of dollars)
Interest income		$	1.0			$	0.8			$	1.3
Interest expense			(3.4	)			(5.7	)			(4.1	)
Dividend income			0.5				0.4				0.6
Foreign exchange gains (losses)			1.5				(1.2	)			(0.5	)
Other			0.3				0.3				0.5
Other expense, net		$	(0.1	)		$	(5.4	)		$	(2.2	)

Dividend income includes dividends earned on the Company’s investment in Temp Holdings (see Fair Value Measurements footnote). Included in foreign exchange gains in 2011 is a $1.6 million net gain related to the release into earnings of accumulated currency translation adjustments upon the substantially complete liquidation of certain subsidiaries. The disposals of these operations were not reported in discontinued operations due to immateriality.

13. Income Taxes

Earnings (loss) from continuing operations before taxes for the years 2011, 2010 and 2009 were taxed under the following jurisdictions:

		2011				2010				2009
		(in million of dollars)
Domestic		$	36.7			$	27.3			$	(56.8	)
Foreign			20.9				5.4				(91.5	)
Total		$	57.6			$	32.7			$	(148.3	)

The provision for income taxes from continuing operations was as follows:

		2011				2010				2009
		(in millions of dollars)
Current tax expense:
U.S. federal		$	5.2			$	6.2			$	(14.0	)
U.S. state and local			1.8				0.6				0.9
Foreign			13.0				9.1				0.9
Total current			20.0				15.9				(12.2	)
Deferred tax expense:
U.S. federal			(33.3	)			(11.3	)			(21.6	)
U.S. state and local			1.1				(0.3	)			(3.3	)
Foreign			4.9				2.3				(6.1	)
Total deferred			(27.3	)			(9.3	)			(31.0	)
Total provision		$	(7.3	)		$	6.6			$	(43.2	)

Deferred taxes are comprised of the following:

		2011				2010
		(in millions of dollars)
Depreciation and amortization		$	(10.4	)		$	(8.9	)
Employee compensation and benefit plans			48.4				49.4
Workers’ compensation			26.7				26.9
Unrealized loss on securities			8.3				7.7
Loss carryforwards			53.5				46.7
Credit Carryforwards			68.6				39.5
Other, net			(1.4	)			(6.6	)
Valuation allowance			(65.4	)			(52.5	)
Net deferred tax assets		$	128.3			$	102.2

The deferred tax balance is classified in the consolidated balance sheet as:

		2011				2010
		(in millions of dollars)
Current assets, deferred tax		$	38.2			$	22.4
Noncurrent deferred tax asset			94.1				84.0
Current liabilities, income and other taxes			(1.8	)			(1.5	)
Noncurrent liabilities, other long-term liabilities			(2.2	)			(2.7	)
		$	128.3			$	102.2

The differences between income taxes from continuing operations for financial reporting purposes and the U.S. statutory rate of 35% are as follows:

		2011				2010				2009
		(in millions of dollars)
Income tax based on statutory rate		$	20.2			$	11.4			$	(51.9	)
State income taxes, net of federal benefit			1.9				0.2				(1.6	)
General business credits			(28.5	)			(11.7	)			(11.8	)
Life insurance cash surrender value			0.9				(3.3	)			(4.6	)
Impairment			—				0.2				15.6
Restructuring			1.0				0.8				4.9
Foreign items			(1.5	)			0.8				5.7
Foreign business taxes			4.7				4.5				0.4
Worthless stock			(7.7	)			(0.9	)			(3.6	)
Non-deductible compensation			1.5				1.1				1.2
Change in deferred tax realizability			(0.6	)			3.0				—
Other, net			0.8				0.5				2.5
Total		$	(7.3	)		$	6.6			$	(43.2	)

General business credits primarily represent U.S. work opportunity credits and, in 2011 only, HIRE Act retention credits of $11.3 million. Foreign business taxes are taxes based on revenue less certain expenses and are classified as income taxes under ASC Topic 740 (“ASC 740”), Income Taxes. The lower 2009 amount is primarily due to the French business tax, which had been classified as a component of SG&A expenses prior to 2010. The French government changed the business tax from an asset-based tax to an income-based tax, thereby requiring the classification of this tax as an income tax beginning in 2010.

The Company has U.S. general business credit carryforwards of $66.9 million which will expire from 2028 to 2031 and foreign tax credit carryforwards of $1.7 million which will expire from 2019 to 2021. The net tax effect of state and foreign loss carryforwards at January 1, 2012 totaled $53.5 million, which expire as follows (in millions of dollars):

Year		Amount
2012-2014		$	1.2
2015-2017			2.9
2018-2021			3.3
2022-2026			5.6
2027-2031			1.7
No expiration			38.8
Total		$	53.5

The Company has established a valuation allowance for loss carryforwards and future deductible items in certain foreign jurisdictions. The valuation allowance is determined in accordance with the provisions of ASC 740, which requires an assessment of both negative and positive evidence when measuring the need for a valuation allowance. The Company’s foreign losses in recent periods in these jurisdictions represented sufficient negative evidence to require a valuation allowance under ASC 740. The Company intends to maintain a valuation allowance until sufficient positive evidence exists to support realization of the foreign deferred tax assets.

Provision has not been made for U.S. or additional foreign income taxes on an estimated $30.5 million of undistributed earnings of foreign subsidiaries, which are permanently reinvested. If these earnings were to be repatriated, the Company would be subject to additional U.S. income taxes, adjusted for foreign credits. It is not practical to determine the income tax liability that might be incurred if these earnings were repatriated.

Deferred income taxes recorded in other comprehensive income include:

		2011				2010				2009
		(in millions of dollars)
Cumulative translation adjustments		$	1.8			$	(0.3	)		$	(3.5	)
Pension liability			0.1				(0.3	)			0.1
Total		$	1.9			$	(0.6	)		$	(3.4	)

In the fourth quarter of 2009, an adjustment was made to deferred taxes to correct an immaterial error related to years prior to 2007. This caused the income tax benefit to be reduced by $1.7 million, and other comprehensive income to be reduced by $1.5 million.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

		2011				2010				2009
		(in millions of dollars)
Balance at beginning of the year		$	8.5			$	8.9			$	4.6
Additions based on tax positions related to the current year			—				—				4.8
Additions for prior years’ tax positions			0.2				0.1				0.4
Reductions for prior years’ tax positions			(0.8	)			(0.3	)			(0.4	)
Additions for settlements			0.2				—				—
Reductions for settlements			(0.2	)			—				(0.2	)
Reductions for expiration of statutes			(0.1	)			(0.2	)			(0.3	)
Balance at end of the year		$	7.8			$	8.5			$	8.9

If the $7.8 million in 2011, $8.5 million in 2010 and $8.9 million in 2009 of unrecognized tax benefits were recognized, they would have a favorable effect of $6.7 million in 2011, $7.3 million in 2010 and $7.6 million in 2009 on the effective tax rate.

The Company recognizes both interest and penalties as part of the income tax provision. The Company recognized expense of $0.1 million in 2011 and $0.1 million in 2010 and a benefit of $0.2 million in 2009 for interest and penalties. At year end, accrued interest and penalties were $0.5 million in 2011 and $0.6 million in 2010.

The Company files income tax returns in the U.S. and in various states and foreign countries. The tax periods open to examination by the major taxing jurisdictions to which the Company is subject include the U.S. for fiscal years 2006 through 2011, Canada for fiscal years 2004 through 2011 and France for fiscal years 2009 through 2011.

The Company and its subsidiaries have various other income tax returns in the process of examination, administrative appeals or litigation. The unrecognized tax benefit and related interest and penalty balances include approximately $1.0 million for 2011 and $1.6 million for 2010 related to tax positions which are reasonably possible to change within the next twelve months due to income tax audits, settlements and statute expirations.

14. Supplemental Cash Flow Information

Changes in operating assets and liabilities, net of acquisitions, as disclosed in the statements of cash flows, for the fiscal years 2011, 2010 and 2009, respectively, were as follows:

		2011				2010				2009
		(in millions of dollars)
(Increase) decrease in trade accounts receivable		$	(148.5	)		$	(95.5	)		$	116.6
(Increase) decrease in prepaid expenses and other current assets			(4.7	)			25.0				(9.2	)
Increase (decrease) in accounts payable and accrued liabilities			58.9				0.4				(59.0	)
Increase (decrease) in accrued payroll and related taxes			34.3				36.0				(41.9	)
Increase in accrued insurance			0.2				7.0				4.5
Increase (decrease) in income and other taxes			4.8				9.4				(2.0	)
Total changes in operating assets and liabilities		$	(55.0	)		$	(17.7	)		$	9.0

The Company paid interest of $2.9 million, $6.1 million and $4.2 million in 2011, 2010 and 2009, respectively. The Company paid income taxes of $21.5 million in 2011 and received a refund of income taxes of $7.8 million in 2010 and $9.4 million in 2009.

15. Commitments

The Company conducts its field operations primarily from leased facilities. The following is a schedule by fiscal year of future minimum commitments under operating leases as of January 1, 2012 (in millions of dollars):

Fiscal year:
2012		$	45.6
2013			30.7
2014			17.8
2015			10.4
2016			5.8
Later years			5.4
Total		$	115.7

Lease expense from continuing operations for fiscal 2011, 2010 and 2009 amounted to $50.5 million, $50.1 million and $56.8 million, respectively.

In addition to operating lease agreements, the Company has entered into unconditional purchase obligations totaling $18.3 million. These obligations relate primarily to voice and data communications services which the Company expects to utilize generally within the next two fiscal years, in the ordinary course of business. The Company has no material unrecorded commitments, losses, contingencies or guarantees associated with any related parties or unconsolidated entities.

16. Contingencies

The Company is awaiting final court approval of a settlement of a single class action, Fuller v. Kelly Services, Inc. and Kelly Home Care Services, Inc. pending in the Superior Court of California, Los Angeles, which involves a claim for monetary damages by current and former temporary employees in the State of California. The claims are related to alleged misclassification of personal attendants as exempt and not entitled to overtime compensation under state law and alleged technical violations of a state law governing the content of employee pay stubs. A $1.2 million after tax charge relating to the settlement was recognized in discontinued operations during the second quarter of 2011.

During the fourth quarter of 2011, the Company paid $1.9 million to settle a previous legal matter, Sullivan v. Kelly Services, Inc., which had been pending in the U.S. District Court Southern District of California. The Company established a reserve for this case in 2010.

The Company is continuously engaged in litigation arising in the ordinary course of its business, typically matters alleging employment discrimination, alleging wage and hour violations or enforcing the restrictive covenants in the Company’s employment agreements. While there is no expectation that any of these matters will have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is always subject to inherent uncertainty and the Company is not able to reasonably predict if any matter will be resolved in a manner that is materially adverse to the Company.

The accrual for litigation costs at year-end 2011 and 2010 amounted to $4.5 million and $3.6 million, respectively, and is included in accounts payable and accrued liabilities on the consolidated balance sheet.

17. Segment Disclosures

The Company’s segments are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision maker to determine resource allocation and assess performance. The Company’s seven reporting segments are: (1) Americas Commercial, (2) Americas Professional and Technical (“Americas PT”), (3) Europe, Middle East and Africa Commercial (“EMEA Commercial”), (4) Europe, Middle East and Africa Professional and Technical (“EMEA PT”), (5) Asia Pacific Commercial (“APAC Commercial”), (6) Asia Pacific Professional and Technical (“APAC PT”) and (7) Outsourcing and Consulting Group (“OCG”).

The Commercial business segments within the Americas, EMEA and APAC regions represent traditional office services, contact-center staffing, marketing, electronic assembly, light industrial and substitute teachers. The PT segments encompass a wide range of highly skilled temporary employees, including scientists, financial professionals, attorneys, engineers, IT specialists and healthcare workers. OCG includes recruitment process outsourcing (“RPO”), contingent workforce outsourcing (“CWO”), business process outsourcing (“BPO”), payroll process outsourcing (“PPO”), executive placement and career transition/outplacement services. Corporate expenses that directly support the operating units have been allocated to the seven segments based on a work effort, volume or, in the absence of a readily available measurement process, proportionately based on revenue from services. Included in Corporate is $0.5 million in 2010 and $53.1 million in 2009 related to asset impairment charges (see Fair Value Measurements footnote).

The following tables present information about the reported revenue from services and earnings from operations of the Company for the fiscal years 2011, 2010 and 2009. Asset information by reportable segment is not reported, since the Company does not produce such information internally nor does it use such data to manage its business.

		2011				2010				2009
		(In millions of dollars)
Revenue from Services:
Americas Commercial		$	2,660.9			$	2,428.2			$	1,980.3
Americas PT			982.8				889.0				792.6
Total Americas Commercial and PT			3,643.7				3,317.2				2,772.9
EMEA Commercial			990.1				872.0				895.2
EMEA PT			178.9				147.6				141.9
Total EMEA Commercial and PT			1,169.0				1,019.6				1,037.1
APAC Commercial			397.6				355.3				284.9
APAC PT			51.4				32.5				25.4
Total APAC Commercial and PT			449.0				387.8				310.3
OCG			317.3				254.8				219.9
Less: Intersegment revenue			(28.0	)			(29.1	)			(25.4	)
Consolidated Total		$	5,551.0			$	4,950.3			$	4,314.8

		2011				2010				2009
		(In millions of dollars)
Earnings (Loss) from Operations:
Americas Commercial		$	83.9			$	79.3			$	10.3
Americas PT			42.8				46.3				23.2
Total Americas Commercial and PT			126.7				125.6				33.5
EMEA Commercial			13.8				6.3				(25.7	)
EMEA PT			4.2				1.8				(2.8	)
Total EMEA Commercial and PT			18.0				8.1				(28.5	)
APAC Commercial			1.9				2.8				(4.6	)
APAC PT			(2.6	)			(3.1	)			(1.5	)
Total APAC Commercial and PT			(0.7	)			(0.3	)			(6.1	)
OCG			(2.6	)			(17.6	)			(11.8	)
Corporate			(83.7	)			(77.7	)			(133.2	)
Consolidated Total		$	57.7			$	38.1			$	(146.1	)