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Note 2 - Fair Value Measurements
 12 Months Ended
Dec. 29, 2013
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

2. Fair Value Measurements


Trade accounts receivable, accounts payable, accrued liabilities, accrued payroll and related taxes and short-term borrowings approximate their fair values due to the short-term maturities of these assets and liabilities.


Assets Measured at Fair Value on a Recurring Basis


The following tables present the assets carried at fair value as of year-end 2013 and 2012 on the consolidated balance sheet by fair value hierarchy level, as described below.


Level 1 measurements consist of unadjusted quoted prices in active markets for identical assets or liabilities.  Level 2 measurements include quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 3 measurements include significant unobservable inputs.


   

Fair Value Measurements on a Recurring Basis

As of Year-End 2013

 
                                 

Description

 

Total

   

Level 1

   

Level 2

   

Level 3

 
   

(In millions of dollars)

 

Money market funds

  $ 2.9     $ 2.9     $ -     $ -  

Available-for-sale investment

    80.7       80.7       -       -  
                                 

Total assets at fair value

  $ 83.6     $ 83.6     $ -     $ -  

   

Fair Value Measurements on a Recurring Basis

As of Year-End 2012

 
                                 

Description

 

Total

   

Level 1

   

Level 2

   

Level 3

 
   

(In millions of dollars)

 

Money market funds

  $ 2.3     $ 2.3     $ -     $ -  

Available-for-sale investment

    37.7       37.7       -       -  
                                 

Total assets at fair value

  $ 40.0     $ 40.0     $ -     $ -  

Money market funds as of year-end 2013 and 2012 represent investments in money market accounts, all of which are restricted as to use and are included in other assets on the consolidated balance sheet as of year-end 2013 and prepaid expenses and other current assets as of year-end 2012. The valuations were based on quoted market prices of those accounts as of the respective period end.


Available-for-sale investment represents the Company’s investment in Temp Holdings Co., Ltd. (“Temp Holdings”) and is included in other assets on the consolidated balance sheet. The valuation is based on the quoted market price of Temp Holdings stock on the Tokyo Stock Exchange as of the period end. The unrealized gain of $30.1 million for the year ended 2013 and $13.1 million for the year ended 2012 were recorded in other comprehensive income, as well as in accumulated other comprehensive income, a component of stockholders’ equity. The cost of this yen-denominated investment, which fluctuates based on foreign exchange rates, was $19.7 million at year-end 2013 and $24.1 million at year-end 2012.


Assets Measured at Fair Value on a Nonrecurring Basis


We completed our annual impairment test for all reporting units in the fourth quarter for the fiscal years ended 2013 and 2012 and determined that goodwill was not impaired.


In 2013, we completed a qualitative assessment for the annual goodwill impairment test for the OCG and APAC PT reporting units. In 2012, we completed a qualitative assessment for the annual goodwill impairment test for the Americas Commercial and Americas PT reporting units. As a result of these qualitative assessments, we determined it was more likely than not that the fair value of each of the reporting units was more than its carrying value. In conducting the qualitative assessment, we assessed the totality of relevant events and circumstances that affect the fair value or carrying value of a reporting unit. Such events and circumstances included macroeconomic conditions, industry and competitive environment considerations, overall financial performance, reporting unit specific events and market considerations. We considered recent valuations of our reporting units, including the magnitude of the difference between the most recent fair value estimate and the carrying value. We considered both positive and adverse events and circumstances and assessed the extent to which each of the events and circumstances identified affected the comparison of a reporting unit's fair value with its carrying value.


In 2013, we completed a step one quantitative test for the Americas Commercial and Americas PT reporting units. In 2012, we completed a step one quantitative test for the OCG and APAC PT reporting units. For both years, the estimated fair value of each reporting unit tested exceeded its related carrying value. Our analysis used significant assumptions by segment, including: expected future revenue and expense growth rates, profit margins, cost of capital, discount rate and forecasted capital expenditures. For the step one analyses we performed in 2013, our revenue projections assumed modest growth. For the step one analyses we performed in 2012, our revenue projections assumed near-term growth consistent with current year results, followed by long-term modest growth. Assumptions and estimates about future cash flows and discount rates are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and internal forecasts. A 10% reduction in our revenue growth rate assumptions would not result in the estimated fair value falling below book value for those reporting units where we performed a step one quantitative test.


During the second quarter of 2013, a triggering event for the evaluation of certain long-lived assets for impairment occurred as the Company made the decision to exit the executive search business operating in an asset group within Germany that was associated with the OCG business segment. Based on the Company’s estimates as of the 2013 second quarter end, a $1.7 million reduction in the carrying value of OCG intangible assets was recorded. The resulting expense was recorded in the asset impairments line on the consolidated statement of earnings.


In 2012, management made the decision to abandon the PeopleSoft billing system implementation project in the U.S., Canada and Puerto Rico and accordingly, recorded impairment charges of $3.1 million representing previously capitalized costs associated with this project.