Investment in Equity Affiliate

3 Months Ended

Apr. 01, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investment in Equity Affiliate

Investment in Equity Affiliate

The Company has a 49% ownership interest in PersolKelly Asia Pacific. The operating results of the Company’s interest in PersolKelly Asia Pacific are accounted for on a one-quarter lag under the equity method and are reported in the equity in net earnings (loss) of affiliate in the consolidated statement of earnings. This investment is evaluated for indicators of impairment on a periodic basis or whenever events or circumstances indicate the carrying amount may be other-than-temporarily impaired. If we conclude that there is an other-than-temporary impairment of this equity investment, we will adjust the carrying amount of the investment to the current fair value.

The investment in equity affiliate on the Company’s consolidated balance sheet totaled $118.9 million as of first quarter-end 2018 and $117.4 million as of year-end 2017. The net amount due to PersolKelly Asia Pacific, a related party, was $2.2 million as of the first quarter-end 2018 and $2.3 million as of year-end 2017. The amount included in trade accounts payable for staffing services provided by PersolKelly Asia Pacific as a supplier to CWO programs was $1.1 million as of first quarter-end 2018 and $2.5 million as of year-end 2017.