Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 80

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 sale, the net carrying value of the assets was a credit balance of $1.0 million, resulting in a gain on the sale of $5.5 million which was recorded in gain on sale of assets in the consolidated statements of earnings.  The sale was a part of the Company's ongoing strategy to further optimize its operating model.

13. Other Income (Expense), Net Included in other income (expense), net for the second quarter of 2025 and 2024 are the following: Second QuarterJune Year-to-Date 2025202420252024(In millions of dollars)Interest income$0.9 $2.3 $1.7 $5.1 Interest expense(3.5)(2.1)(7.5)(2.6)Other0.3 (6.7)0.3 (7.2)Other income (expense), net$(2.3)$(6.5)$(5.5)$(4.7)

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

25 

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

14. Income TaxesIncome tax expense was $0.9 million for the second quarter of 2025 and $1.1 million for the second quarter of 2024.  Income tax expense was $2.7 million for June year-to-date 2025 and $5.1 million for June year-to-date 2024.  The quarterly variance was driven by changes in pretax income, changes in the valuation allowance on the tax benefit from the EMEA staffing operations sale, and 2024 non-deductible acquisition costs.  The year-to-date variance was driven by changes in pretax income and 2024 non-deductible acquisition costs.The Company's tax 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 tax-exempt 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, changes in judgment regarding the realizability of deferred tax assets and the