Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 67

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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1.4 million addition of goodwill, which was allocated to the SET reportable segment (see Acquisitions and Disposition footnote).During the first quarter of 2025, the Company changed its reportable segments as discussed in the Segment Disclosures footnote, which included moving MRP's Sevenstep business from the SET reportable segment to the ETM reportable segment as part of the broader integration of MRP.  Concurrent with this change in reportable segments, the Company reallocated $22.3 million of goodwill related to the Sevenstep business formerly in the SET reportable segment to the ETM reportable segment using a relative fair value approach.Science, Engineering & TechnologyEducationEnterprise Talent ManagementTotalBalance as of year-end 2023$111.3 $39.8 $— $151.1 Additions222.9 3.0 — 225.9 Impairment adjustments(72.8)— — (72.8)Balance as of year-end 2024261.4 42.8 — 304.2 Adjustments— (0.1)— (0.1)Reallocation(22.3)— 22.3 — Balance as of first quarter-end 2025$239.1 $42.7 $22.3 $304.1 

8. DebtRevolving Credit FacilityThe Company has a $150.0 million, five-year revolving credit facility (the “Facility”), with a termination date of May 29, 2029.  The Facility is available to be used to fund working capital, acquisitions and general corporate needs.  The Facility is secured by certain assets of the Company, excluding U.S. trade accounts receivable.At the end of the first quarter of 2025, there were $30.0 million of long-term borrowings on the term benchmark line under the Facility and a remaining borrowing capacity of $120.0 million.  The rate for these borrowings, which varies based on the Company's leverage ratio as defined in the agreement, includes either (i) the Prime rate plus the applicable margin for the floating line or (ii) a term SOFR for 1-, 3-, or 6-months dependent on the interest election plus a 0.10% margin and the applicable margin for the term benchmark line.  At year-end 2024, there were $40.0 million of long-term