Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 14

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 million.  The investment was measured using the measurement alternative for equity investments without a readily determinable fair value 

17 

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

and had a carrying value of $6.4 million as of year-end 2024 and at the time of the sale, representing total cost plus observable price changes to date. As a result, the sale had no impact on other income (expense), net in the consolidated statements of earnings in the first quarter of 2025.

6. Integration, Realignment and Restructuring2025 ActionsIn the first quarter of 2025, the Company launched various initiatives aimed at integrating MRP and other prior acquisitions, combining operating segments, and further aligning processes and technology across the Company.  The costs incurred related to these integration and realignment initiatives totaled $10.7 million during the first quarter of 2025.  The integration and realignment costs consisted of $5.3 million of IT-related charges, $4.4 million of severance and $1.0 million of fees and other costs to execute the initiatives.  The severance costs incurred as a part of these efforts are accounted for in accordance with ASC 712 Compensation - Nonretirement Postemployment Benefits.  The integration and realignment costs are recorded in selling, general and administrative (“SG&A”) expenses in the consolidated statements of earnings.The integration and realignment costs included in SG&A are detailed below (in millions of dollars):First Quarter 2025IT-related ChargesSeveranceFees and OtherTotalEnterprise Talent Management$— $2.7 $— $2.7 Science, Engineering & Technology— 1.1 — 1.1 Corporate5.3 0.6 1.0 6.9 Total$5.3 $4.4 $1.0 $10.7 2024 ActionsIn the first quarter of 2024, the Company incurred $2.3 million of restructuring charges and transformation fees as a continuation of the comprehensive transformation initiative that was announced in the second quarter of 2023.  The transformation activities included $1.1 million of severance and $1.2 million of costs to execute the transformation through the use of an external consultant.  The Company's 2024 restructuring actions are complete with no remaining liability as of