Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 9

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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Allowance for credit losses:Beginning balance$4.9 $8.0 Current period provision3.4 1.0 Currency exchange effects0.1 (0.2)Disposition of EMEA staffing operations— (2.4)Write-offs(0.7)(0.7)Ending balance$7.7 $5.7 Write-offs are presented net of recoveries, which were not material for third quarter-end 2025 or 2024.  As of second quarter-end 2024, the Company had a receivable of $16.8 million related to the sale of the EMEA staffing operations (see Acquisitions and Disposition footnote); it was subsequently settled in the second quarter of 2025.  No other allowances related to other receivables were material as of third quarter-end 2025 or 2024.

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

4. Acquisitions and DispositionAcquisitionsChildren's Therapy CenterOn November 13, 2024, Kelly Services USA, LLC (“KSU”), a wholly owned subsidiary of the Company, acquired 100% of the issued and outstanding limited liability company interests of Children's Therapy Center (“CTC”).  CTC specializes in occupational, physical, and speech therapy for children and expands the Company's growth opportunities in therapeutic services.  Under terms of the purchase agreement, the purchase price of $3.3 million was adjusted for cash held by CTC at the closing date and estimated working capital adjustments, resulting in the company paying cash of $3.1 million.  In the first quarter of 2025, the Company received a post-close net working capital adjustment of $0.1 million. Goodwill generated from the acquisition of $2.9 million, net of the net working capital adjustment, was primarily attributable to expanding market potential and was assigned to the Education operating segment (see Goodwill footnote).  CTC's results of operations are included in the Education segment.Motion Recruitment PartnersOn May 31, 2024, the Company indirectly acquired 100% of the equity interests in Motion Recruitment Partners, LLC (“MRP”) by way of a merger with MRP Merger Sub, Inc. (“Merger Sub”), a newly-formed, wholly owned subsidiary of the Company, with and into MRP Topco (“Topco”), the