Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 64

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 64
---
 $1.8 million as of year-end 2024.  Amortization expense for the deferred costs in the second quarter and June year-to-date 2025 was $0.6 million and $1.8 million, respectively. Amortization expense for the deferred costs in the second quarter and June year-to-date 2024 was $1.7 million and $4.1 million, respectively. 

14 

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

3. Credit LossesThe rollforward of the Company's allowance for credit losses related to trade accounts receivable, which is recorded in trade accounts receivable, less allowance in the consolidated balance sheet, is as follows (in millions of dollars):June Year-to-Date 20252024Allowance for credit losses:Beginning balance$4.9 $8.0 Current period provision2.7 0.4 Currency exchange effects0.1 (0.2)Disposition of EMEA staffing operations— (2.4)Write-offs(0.3)(0.6)Ending balance$7.4 $5.2 Write-offs are presented net of recoveries, which were not material for second quarter-end 2025 or 2024.  As of second quarter-end 2024, the Company had a receivable of $16.8 million related to the sale of the EMEA staffing operations (see Acquisitions and Disposition footnote).  The Company determined that no credit loss provision was required on this receivable as it was considered collectible; it was subsequently settled in the second quarter of 2025.  No other allowances related to other receivables were material as of second quarter-end 2025 or 2024.

4. Acquisitions and DispositionAcquisitionsChildren's Therapy CenterOn November 13, 2024, Kelly Services USA, LLC (“KSU”), a wholly owned subsidiary of the Company, acquired 100% of the issued and outstanding limited liability company interests of Children's Therapy Center (“CTC”).  CTC specializes in occupational, physical, and speech therapy for children and expands the Company's growth opportunities in therapeutic services.  Under terms of the purchase agreement, the purchase price of $3.3 million was adjusted for cash held by CTC at the closing date and estimated working capital adjustments, resulting in the company