Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 23

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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  Intersegment revenue represents revenue earned between the reportable segments and is eliminated from total segment revenue from services.The Company combined its former P&I and OCG segments into the ETM segment in the first quarter of 2025, responding to a shift in customer demand toward integrated workforce solutions and enabling a more streamlined and efficient go-to-market approach.  The Company also realigned certain customers from the SET segment to the ETM segment to support this integrated strategy.  Also in the first quarter of 2025, the Company moved MRP's Sevenstep business from the SET segment to the ETM segment as part of the broader integration of MRP.  The 2024 ETM and SET segment information has been recast to conform to the new structure.The Company adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, in the fourth quarter of 2024 and included the relevant interim disclosures retrospectively for 2024.  The following tables present information about the reported revenue from services of the Company by reportable segment, along with a reconciliation to earnings before taxes, for the first quarter of 2025 and 2024.  Asset information by reportable segment is not presented since the Company does not produce such information internally nor does it use such information to manage its business.First Quarter 2025(In millions of dollars)ETMSETEducationInter-SegmentConsolidatedRevenue from services$534.0 $322.4 $309.0 $(0.5)$1,164.9 Cost of services(1)426.0 240.1 262.8 (0.5)928.4 Direct salaries(2)68.5 50.6 16.4 Other segment expenses(3)32.7 18.3 10.5 SG&A expenses101.2 68.9 26.9 — 197.0 Business unit profit (loss)$6.8 $13.4 $19.3 $— $39.5 Corporate SG&A$(15.9)Depreciation and amortization(4)(12.8)Consolidated earnings from operations10.8 Other income (expense), net(3.2)Earnings before taxes$7.6 (1)  Cost of services are those costs directly associated with the earning of revenue.  The primary examples of