Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 16

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 16
---
8 

68

KELLY SERVICES, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The purchase price allocation for this acquisition is preliminary and could change.  The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition (in millions of dollars):Cash and equivalents$12.6 Trade accounts receivable89.1 Prepaid expenses and other current assets8.5 Net property and equipment3.1 Operating lease right-of-use assets11.9 Goodwill222.9 Intangibles, net145.9 Other assets, noncurrent10.6 Accounts payable and accrued liabilities, current(12.1)Operating lease liabilities, current(4.0)Accrued payroll and related taxes, current(15.9)Income and other taxes, current(0.5)Operating lease liabilities, noncurrent(9.0)Other long-term liabilities(18.3)Total consideration, including working capital adjustments$444.8 The fair value of the acquired receivables represents the contractual value net of the allowance for potentially uncollectible accounts.  Included in the assets purchased in the MRP acquisition was $145.9 million of intangible assets, made up of $88.1 million in customer relationships, $56.5 million associated with MRP's trade names, and $1.3 million for non-compete agreements.  The customer relationships are amortized over 15 years with no residual value, the trade names are amortized over 10-15 years with no residual value, and the non-compete agreements are amortized over four years with no residual value.  Goodwill generated from the acquisition was primarily attributable to expanding market potential and the expected revenue and operational synergies and was assigned to the SET operating segment (see Goodwill and Intangible Assets footnote).  None of the goodwill generated from the acquisition is expected to be deductible for tax purposes.MRP's results of operations are included in the SET segment. For year-end 2024, our consolidated revenues and net earnings (loss) include $285.8 million and $4.2 million of earnings from MRP, respectively.Pro Forma InformationThe following unaudited pro forma information presents a summary of the operating results as if the MRP acquisition had been completed as of January 2, 2023 (in millions of dollars):20242023