Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 9

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 9
---
 future revenue growth rates, profit margins and discount rates.  Prior to the sale of the majority of our investment in our equity affiliate, we evaluated our equity method investment on a quarterly basis or whenever events or circumstances indicated the carrying amount may be other-than-temporarily impaired.  If we had concluded that there was an other-than-temporary impairment of our equity method investment, we would have adjusted our carrying amount of our investment to the adjusted fair value.We evaluate our equity securities measured under the measurement alternative for indicators of impairment on a quarterly basis and whenever observable price changes occur.  The measurement alternative represents cost, less impairment, plus or minus observable price changes.  Quarterly, we also confirm the securities still qualify to be measured in accordance with the measurement alternative.  The value of the securities will be adjusted for any increases or decreases as a result of an observable price change.Accounts Payable Included in accounts payable balances are book overdrafts, which are outstanding checks in excess of funds on deposit.  Such amounts totaled $5.1 million and $1.2 million at year-end 2024 and 2023, respectively.Accrued Payroll and Related Taxes Included in current accrued payroll and related taxes are book overdrafts, which are outstanding checks in excess of funds on deposit.  Such amounts totaled $11.4 million and $9.6 million at year-end 2024 and 2023, respectively.  Payroll taxes for temporary employees are recognized proportionately to direct wages for interim periods based on expected full-year amounts.  

63

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

Income Taxes The Company accounts for income taxes using the liability method.  Under this method, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts.  Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.The U.S. work opportunity credit is allowed for wages earned by employees in certain targeted groups.  The actual amount of creditable wages in a particular period is estimated, since the credit is only available once an employee reaches a minimum employment period and the employee’s inclusion in a targeted group is certified by the applicable state.  As these events often occur after the period the wages are earned, judgment is required in determining the amount of work opportunity credits accrued for in each period