Assets and Liabilities Held for Sale

6 Months Ended

Jul. 03, 2016

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale

Assets and Liabilities Held for Sale

On July 4, 2016, the Company and Temp Holdings Co., Ltd. (“Temp Holdings”), completed a transaction to expand their existing North Asia joint venture, TS Kelly Workforce Solutions. A new joint venture, TS Kelly Asia Pacific, has been formed by combining the Company’s Asia Pacific staffing operations with businesses of Temp Holdings. Under the agreement, Temp Holdings owns 51% of the expanded joint venture, and the Company owns the remaining 49% (see Subsequent Event footnote for further discussion). During the second quarter of 2016, the transaction met the criteria to be classified as held for sale and the assets and liabilities must be recorded at the lower of the carrying value or fair value less costs to sell.

Accordingly, the Company has presented the assets and liabilities of its Asia Pacific staffing operations (the “disposal group”) as held for sale on the consolidated balance sheet as of July 3, 2016. The disposal group is composed of two reportable segments, Asia Pacific Commercial and Asia Pacific Professional and Technical. The disposal group was recorded at the carrying value as the fair value less costs to sell exceeded the carrying value. The assets and liabilities classified as held for sale are 100% of the disposal group, however, the Company will retain a 49% interest in TS Kelly Asia Pacific, which it will record as an equity method investment on the consolidated balance sheet.

The following table presents information related to the major classes of assets and liabilities that are classified as held for sale in the consolidated balance sheet (in millions):

ASSETS	July 3, 2016
Cash and equivalents	$	18.1
Trade accounts receivable, less allowance of $1.5	62.2
Prepaid expenses and other current assets	7.8
Net property and equipment	1.4
Noncurrent deferred taxes	0.7
Goodwill, net	2.0
Other assets	1.8
Total current assets held for sale	$	94.0
LIABILITIES
Accounts payable and accrued liabilities	$	17.9
Accrued payroll and related taxes	21.2
Accrued insurance	0.3
Income and other taxes	7.8
Accrued retirement benefits	0.5
Other long-term liabilities	0.3
Total current liabilities held for sale	$	48.0

The Company has recorded these assets and liabilities of the disposal group in the current assets held for sale and current liabilities held for sale lines on the consolidated balance sheet, as the disposal group was sold on July 4, 2016. The disposal group did not meet the criteria in the applicable guidance to be classified as discontinued operations.