Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 62

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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6.4 $— $— Total assets at fair value$6.4 $6.4 $— $— Interest rate swaps$(0.4)$— $(0.4)$— EMEA staffing indemnification(2.0)— — (2.0)Brazil indemnification(1.7)— — (1.7)Total liabilities at fair value$(4.1)$— $(0.4)$(3.7)Money Market FundsMoney market funds represent investments in money market funds that hold government securities, all of which are restricted as to use as of first quarter-end 2025 and year-end 2024, and are included in other assets in the consolidated balance sheet.  These restricted funds represent cash balances that are required to be maintained to fund disability claims in California.  The valuations of money market funds are based on quoted market prices of those accounts as of the respective period end.Forward ContractsOn February 8, 2024, the Company entered into a foreign currency forward contract with a notional amount of €17.0 million to manage the foreign currency risk associated with expected additional proceeds related to the sale of the Company's EMEA staffing operations (see Acquisitions and Disposition footnote).  The expected proceeds were recorded as a euro-denominated receivable which was remeasured quarterly.  The forward contract was designated as a fair value hedge, with the mark-to-market changes of the forward contract offsetting the mark-to-market changes of the receivable in the gain on sale of EMEA staffing operations in the consolidated statements of earnings.  The contract was valued using observable inputs, such as foreign currency exchange rates, and was considered a level 2 liability.  In the fourth quarter of 2024, the Company settled the contract with a $0.4 million cash payment and recognized a corresponding loss of $0.4 million on the contract.  Accordingly, as of year-end 2024, there was no asset or liability related to this forward contract.  On November 2, 2023, the Company entered into a foreign currency forward contract with a notional amount of €90.0 million to manage the foreign currency risk associated with the sale of the EMEA staffing operations, which was completed on January 2, 2024.  This contract was not designated as a hedging instrument; therefore, it was marked-to-market and the changes in fair value were recognized in earnings.