Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 18

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 18
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 combining operations and expanding market potential and was assigned to the OCG operating segment.  In 2022, changes in market conditions triggered interim impairment tests for both long-lived assets and goodwill, resulting in the Company recording a goodwill impairment charge of $41.0 million (see Goodwill and Intangible Assets footnote).DispositionsDisposition of EMEA Staffing OperationsOn January 2, 2024, the Company completed the sale of its EMEA staffing operations ("disposal group"), which was included in the Company's International operating segment, to Gi Group Holdings S.P.A. ("Gi").  Upon closing, the Company received cash proceeds of $110.6 million, or $77.1 million net of cash disposed, which is included in investing activities in the consolidated statements of cash flows.  The Company expects to receive additional net cash proceeds to reflect the cash-free, debt-free transaction basis, as well as working capital and other adjustments.  The Company will not receive any proceeds from the contingent consideration opportunity associated with the transaction.  In the first quarter of 2024, the Company recorded a euro-denominated receivable from Gi of $26.9 million representing the adjustments that were determinable and expected to be received.  In the second quarter of 2024, the Company recorded negative working capital and other adjustments of $10.1 million, which reduced the net receivable from Gi to $16.8 million.  As of year-end 2024, the net receivable is $16.4 million, with the change of $0.4 million from the second quarter reflecting foreign currency remeasurements.  The Company is actively reconciling the receivable in accordance with the purchase agreement and expects it to be settled upon completion of this process.  The receivable is included in prepaid expenses and other current assets in the consolidated balance sheet and included in the gain on the transaction.  The total gain on the transaction at year-end 2024 is $1.6 million, which is recorded in the gain on sale of EMEA staffing operations in the consolidated statements of earnings.The disposal group did not meet the requirements to be classified as discontinued operations as the sale did not have a material effect on the Company's operations and did not represent a strategic shift in the Company's strategy.  As of December 31, 2023, the disposal group was classified as held for sale and held at its carrying value.  Our consolidated earnings from operations in 2023 included