Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 26

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 26
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 fair value and was considered a level 3 liability.  During the first quarter of 2023, the Company paid the remaining earnout liability totaling $3.3 million, representing the year two portion of the earnout.  In the consolidated statements of cash flows, $1.4 million of the payment was reflected as a financing activity representing the initial fair value of the earnout, with the remainder flowing through operating activities.  There was no remaining earnout liability as of year-end 2023.  During the first quarter of 2022, the Company paid the year one portion of the earnout totaling $2.3 million.  In the consolidated statements of cash flows, $0.7 million is reflected as a financing activity representing the initial fair value of the earnout, with the remainder flowing through operating activities.Equity Investments Without Readily Determinable Fair ValueIn 2022, the Company invested in equity securities with an initial investment of $0.4 million which was included in other assets in the consolidated balance sheet. This investment is measured using the measurement alternative for equity investments without a readily determinable fair value. The measurement alternative represents cost, less impairment, plus or minus observable price changes.  In the fourth quarter of 2024, the Company entered into a transaction to sell a portion of its shares with a carrying value of $0.1 million, representing total cost plus observable price changes to date. As a result of the sale, the Company recorded a gain of $0.6 million in other income (expense), net in the consolidated statements of earnings.  Additionally, as a result of the sale, the value of the remaining investment was remeasured to $3.5 million based on observable prices changes and an unrealized gain of $3.2 million was recorded in other income (expense), net in the consolidated statements of earnings.The Company holds a 2.5% interest in PersolKelly Pte. Ltd. (see Investment in PersolKelly Pte. Ltd. footnote) which is measured using the measurement alternative for equity investments without a readily determinable fair value.  The investment totaled $6.4 million as of year-end 2024 and 2023, representing total cost plus observable price changes to date.Assets Measured at Fair Value on a Nonrecurring BasisIn addition to assets that are recorded at fair value on a recurring basis, annual and interim impairment tests may subject our reporting units with goodwill and long-lived assets