Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 85

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 cover certain losses.  When losses exceed the applicable policy deductible and realization of recovery of the loss from existing insurance policies is deemed probable, the Company records receivables from the insurance company for the excess amount, which are included in prepaid expenses and other current assets and other assets in the consolidated balance sheet.  At third quarter-end 2025 and year-end 2024, there were no related insurance receivables.The Company estimates the aggregate range of reasonably possible losses, in excess of amounts accrued, is zero to $1.7 million as of third quarter-end 2025.  This range includes matters where a liability has been accrued but it is reasonably possible that the ultimate loss may exceed the amount accrued and for matters where a loss is believed to be reasonably possible, but a liability has not been accrued.  The aggregate range only represents matters in which the Company is currently able to estimate a range of loss and does not represent the maximum loss exposure.  The estimated range is subject to significant judgment and a variety of assumptions and only based upon currently available information.  For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss.While the ultimate outcome of these matters cannot be predicted with certainty, the Company believes that the resolution of any such proceedings will not have a material adverse effect on the Company's financial condition, results of operations or cash flows.

16. Segment DisclosuresThe Company’s operating segments, which also represent its reportable segments, are based on the organizational structure for which financial results are regularly evaluated by the Company’s chief operating decision-maker (“CODM”, the Company’s CEO) to determine resource allocation and assess performance.  In the first quarter of 2025, the Company modified its reportable segments.  The Company’s three reportable segments: (1) Enterprise Talent Management, (2) Science, Engineering & Technology, and (3) Education, reflect the specialty services the Company provides to customers and represent how the business is organized internally.  Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services.The Company combined its former P&I and OCG segments into the ETM segment in the first quarter of 2025, responding to a shift in customer demand toward integrated workforce solutions and enabling a more streamlined and efficient go-to-market approach.  The Company also realigned certain customers from the SET segment to the ETM segment to support this integrated strategy.  Also in the first quarter of 2025, the Company moved