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

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 directly associated with the earning of revenue.  The primary examples of these types of costs are temporary employee wages, along with other employee related costs, including associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay and health insurance, and workers’ compensation costs.  These costs differ fundamentally from SG&A expenses in that they arise specifically from the action of providing the Company's services to customers whereas SG&A costs are incurred regardless of whether or not the Company places temporary employees with its customers.(2)  Direct salaries refers to the compensation expenses for employees directly related to the Company’s operations and service delivery.  These expenses include salaries, related payroll taxes, severance, various benefits and performance-based incentives and bonuses for these employees.(3)  For each reportable segment, the other segment expense category includes:

26 

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

•ETM and SET - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs, and operational software licenses. •EDU - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, operational software licenses, and facilities and equipment-related costs.(4)  Represents total company depreciation and amortization of intangibles, including the amortization of hosted software.Depreciation and amortization expense is included in SG&A expenses in the consolidated statements of earnings.  Depreciation and amortization expense amounts below include amortization of implementation costs for hosted software, which are excluded in the presentation of depreciation and amortization in the consolidated statements of cash flows.  The depreciation and amortization amounts by segment are as follows:First Quarter20252024(In millions of dollars)Depreciation and amortization:Enterprise Talent Management$3.2 $4.2 Science, Engineering & Technology7.5 4.0 Education2.1 2.0 

16. New Accounting PronouncementsRecently Issued Accounting Pronouncements Not Yet AdoptedIn November 2024, the FASB issued ASU 2024-03, Comprehensive income (Topic 220): Disaggregation of Income Statement Expenses. This ASU requires additional information about certain expense categories in the notes to financial statements. The new guidance will be effective for annual periods beginning after December 15, 2026, with early adoption permitted. The Company