Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 24

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 these types of costs are temporary employee wages, along with other employee related costs, including associated payroll taxes, temporary employee benefits, such as service bonus and holiday pay and health insurance, and workers’ compensation costs.  These costs differ fundamentally from SG&A expenses in that they arise specifically from the action of providing the Company's services to customers whereas SG&A costs are incurred regardless of whether or not the Company places temporary employees with its customers.

25 

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

(2)  Direct salaries refers to the compensation expenses for employees directly related to the Company’s operations and service delivery.  These expenses include salaries, related payroll taxes, severance, various benefits and performance-based incentives and bonuses for these employees.(3)  For each reportable segment, the other segment expense category includes:•ETM and EDU - Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs, and operational software licenses.•SET - Shared services costs for IT, human resources, legal and finance support, operational software licenses, other professional services and overhead expenses, and facilities and equipment-related costs.(4)  Represents total company depreciation and amortization of intangibles, including the amortization of hosted software.First Quarter 2024(In millions of dollars)ETMSETEducationInter-SegmentConsolidatedRevenue from services$524.1 $231.6 $289.9 $(0.5)$1,045.1 Cost of services(1)417.9 174.2 247.8 (0.5)839.4 Direct salaries(2)64.829.0 15.1 Other segment expenses(3)33.314.2 8.9 SG&A expenses98.143.224.0— 165.3 Business unit profit (loss)$8.1 $14.2 $18.1 $— $40.4 Corporate SG&A$(15.0)Gain on sale of EMEA staffing operations11.6 Depreciation and amortization(4)(10.2)Consolidated earnings from operations26.8 Gain on forward contract1.2 Other income (expense), net1.8 Earnings before taxes$29.8 (1)  Cost of services are those costs