Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 65

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 be recognized as the earnout period has concluded. Equity Investment Without Readily Determinable Fair ValueIn 2022, the Company invested in equity securities with an initial investment of $0.4 million which was included in other assets in the consolidated balance sheet.  This investment is measured using the measurement alternative for equity investments without a readily determinable fair value.  The measurement alternative represents cost, less impairment, plus or minus observable price changes.  In the fourth quarter of 2024, the Company entered into a transaction to sell a portion of its shares and as a result of the sale, the value of the remaining investment was remeasured at $3.5 million as of year-end 2024.  As of first quarter-end 2025, the value of the investment is $3.5 million, representing total cost plus observable price changes to date.In the first quarter of 2025, the Company sold its 2.5% interest in PersolKelly Pte. Ltd. for cash proceeds of $6.4 million.  The investment was measured using the measurement alternative for equity investments without a readily determinable fair value 

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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