Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 26

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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29, 2024 in the consolidated statements of earnings.  The sale was a part of the Company's ongoing strategy to further optimize its operating model.

24 

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

13. Other Income (Expense), Net Included in other income (expense), net are the following (in millions): Third QuarterSeptember Year-to-Date 2025202420252024Interest income$1.0 $1.3 $2.7 $6.4 Interest expense(2.4)(4.5)(9.9)(7.1)Other(0.2)(1.2)0.1 (8.4)Other income (expense), net$(1.6)$(4.4)$(7.1)$(9.1)

Included in Other for September year-to-date 2024 is $7.8 million of transaction costs related to the acquisition of MRP (see Acquisitions and Disposition footnote). 

14. Income TaxesIncome tax expense was $46.4 million and income tax benefit was $2.6 million for the third quarter of 2025 and 2024, respectively.  Income tax expense was $49.1 million and $2.5 million for September year-to-date 2025 and 2024, respectively.  The quarterly and year-to-date variances were driven by the valuation allowance and goodwill impairment charges.The Company's interim tax provision is calculated using the estimated annual effective tax rate applied to year-to-date income, adjusted for 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 tax-exempt investments in life insurance policies.  It is also adjusted for discrete items that may occur in any given period but are not consistent from period to period, such as tax law changes, changes in judgment regarding the realizability of deferred tax assets and the tax effects of stock compensation.  The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.  In the third quarter of 2025, the Company recorded a net charge of $69.7 million to establish a valuation allowance against a portion of its work opportunity credit carryforwards. This allowance was established principally due to