Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 50

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 50
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.9)State income taxes, net of federal benefit(2.7)(0.9)1.6 Foreign tax rate differential0.9 4.6 1.6 U.S. work opportunity credits(7.8)(8.5)(10.7)Life insurance cash surrender value(6.2)(6.5)7.8 Foreign items0.3 3.0 0.1 Foreign-derived intangible income deduction(3.0)(2.3)(2.3)Sale of foreign subsidiaries0.4 — 3.9 Foreign business taxes— 1.1 1.8 Change in deferred tax realizability(0.4)4.4 — Non-deductible expenses2.1 0.7 — Uncertain tax positions— (0.3)0.1 Stock compensation0.4 0.7 0.6 Outside basis difference on held for sale assets— (13.1)— MRP earnout liability revaluation(0.7)— — Non-deductible goodwill impairment— — 2.7 Other— 0.4 (0.2)Total$(21.3)$(11.5)$(7.9)Our tax benefit or expense is affected by recurring items, such as the amount of pretax income and its mix by jurisdiction, U.S. work opportunity credits and the change in cash surrender value of non-taxable investments in life insurance policies.  It is also affected by discrete items that may occur in any given period but are not consistent from period to period, such as tax law changes or changes in judgment regarding the realizability of deferred tax assets.Several items have contributed to the variance in our income tax benefit over the last three years.  2024 benefited from lower pretax earnings, which included an $18.5 million benefit from the impairment of tax-deductible goodwill and a $6.2 million benefit from tax-exempt life insurance cash surrender value gains.  2023 benefited from recording a $15.0 million federal and state benefit on the outside basis difference in held for sale assets, and a $6.5 million benefit from tax-exempt life insurance cash surrender value gains.  2022 benefited from lower pretax earnings, which included benefits of $16.9 million from changes in the fair value of the Company's investment in