Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 27

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 27
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 to nonrecurring fair value measurement.  We performed our annual impairment test for goodwill in the fourth quarter of each year and for long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.Refer to the Goodwill and Intangible Assets footnote for additional details on impairment charges related to years-ended 2024 and 2022.  There were no goodwill or intangible asset impairment charges recorded in 2023.The various inputs to the fair value models are considered level 3.  Refer to the Significant Accounting Policies footnote for additional details on the valuation methodologies and inputs used to measure fair value.

8. Restructuring and Transformation Activities2024 ActionsRestructuring and transformation charges for the year-ended 2024 were $6.1 million as a continuation of the actions that were announced in the second quarter of 2023 as part of the comprehensive transformation initiative.  The transformation activities 

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KELLY SERVICES, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

consisted of $3.0 million of severance charges and $3.1 million of costs to execute the transformation.  The severance and transformation costs are recorded in SG&A expenses in the consolidated statements of earnings.Additionally, in 2024, the Company recognized an impairment charge of $13.5 million primarily for certain ROU assets related to our leased headquarters facility reflecting adjustments as to how we are utilizing the building as a part of our ongoing transformation efforts.  The impairment charges related to the ROU assets are recorded in the asset impairment charge in the consolidated statements of earnings.The restructuring and transformation costs included in SG&A are detailed below for December year-to-date 2024 (in millions of dollars):Severance CostsTransformation CostsTotalProfessional & Industrial$0.3 $— $0.3 Science, Engineering & Technology0.3 — 0.3 Outsourcing & Consulting0.4 — 0.4 Corporate2.0 3.1 5.1 Total$3.0 $3.1 $6.1 2023 ActionsIn the first quarter of 2023, the Company undertook restructuring actions to further our cost management efforts in response to the demand levels and to reflect a repositioning of our P&I staffing business to better capitalize on opportunities in local markets. Restructuring costs incurred in the first quarter of