Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 3

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 3
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 proportion to the amount we have the right to invoice the customer.Talent Solutions RevenueTalent Solutions services include: overall program management of our client’s contingent workforce, external vendors and/or independent contractors, end-to-end talent acquisition, and payroll outsourcing.  Billings are generally negotiated and invoiced as a fee-based commission contingent on the amount of services managed through the program, a monthly management fee, measure of time (hours), or a per-unit basis for our services performed.  We continue to recognize revenue for talent solution services over time as the customer simultaneously receives and consumes the services we provide.  We have applied the practical expedient to recognize revenue for these services over the term of the agreement in proportion to the amount we have the right to invoice the customer.Variable ConsiderationCertain customers may receive cash-based incentives or credits, which are accounted for as a form of variable consideration.  We estimate these amounts based on the expected or likely amount to be provided to customers and reduce revenues recognized to the extent that it is probable that a significant reversal of such adjustment will not occur.  Provisions for sales allowances (billing adjustments related to errors, service issues and compromises on billing disputes), based on historical experience, are recognized at the time the related sale is recognized as a reduction in revenue from services.Payment TermsCustomer payments are typically due within 60 days of invoicing, but may be shorter or longer depending on contract terms.  Management does not assess whether a contract has a significant financing component if the expectation at contract inception is that the period between payment by the customer and the transfer of the services to the customer will be less than one year.  We do not have any significant financing components or extended payment terms.Deferred RevenueItems which are billed to the customer at a point in time, rather than billed over time as the services are delivered to the customer, are assessed for potential revenue deferral.  At this time, the balance of the contract liability as well as the amount of revenue recognized in the reporting period that was included in the deferred revenue balance at the beginning of the period is not material.

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

Deferred CostsOccasionally, fulfillment costs are incurred after obtaining a contract in order to generate a resource that will be used to provide our services.  These costs are considered incremental and recoverable costs to fulfill our contract with the customer.  These costs to fulfill a contract are deferred and then amortized on a straight-line