Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 26

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 whether it will again be extended. In the event the program is not renewed, we will continue to receive credits for qualified employees hired prior to 2026.

26 

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

15. ContingenciesThe Company is continuously engaged in litigation, threatened litigation, claims, audits or investigations arising in the ordinary course of its business, such as matters alleging employment discrimination, wage and hour violations, claims for indemnification or liability, violations of privacy rights, anti-competition regulations, commercial and contractual disputes, and tax-related matters, which could result in a material adverse outcome.  The Company records accruals for loss contingencies when the Company believes it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.  Such accruals are recorded in accounts payable and accrued liabilities and in accrued workers’ compensation and other claims in the consolidated balance sheet.  At second quarter-end 2025 and year-end 2024, the gross accrual for litigation costs amounted to $1.8 million and $1.5 million, respectively.The Company maintains insurance coverage which may 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 second 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 $0.1 million to $2.3 million as of second 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