Investment in Persol Holdings

6 Months Ended

Jun. 30, 2019

Investment in Persol Holdings [Abstract]

Investment in Persol Holdings

Investment in Persol Holdings

The Company has a yen-denominated investment in the common stock of Persol Holdings, a leading integrated human resource company in Japan and the Company’s joint venture partner in PersolKelly Asia Pacific. As our investment is a noncontrolling interest in Persol Holdings, this investment is recorded at fair value based on the quoted market price of Persol Holdings stock on the Tokyo Stock Exchange as of the period end (see Fair Value Measurements footnote). The Company adopted ASU 2016-01 and as a result, effective January 1, 2018, all changes in fair value on the investment are recognized in net earnings which previously were recorded in other comprehensive income (loss). A cumulative catch-up adjustment of the prior net unrealized gains previously recorded in other comprehensive income (loss), and in accumulated other comprehensive income (loss), a component of stockholders’ equity, was recorded in earnings invested in the business as of January 1, 2018 for $140.0 million, net of $69.9 million of taxes.

For the second quarter and June year to date 2019, a gain on the investment of $61.2 million and $74.4 million, respectively, was recorded in gain (loss) on investment in Persol Holdings in the consolidated statements of earnings. For the second quarter and June year to date 2018, a loss on the investment of $52.5 million and $28.8 million, respectively, was recorded in gain (loss) on investment in Persol Holdings in the consolidated statements of earnings.