Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 58

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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$510.9 $504.9 Europe7.7 7.7 Asia-Pacific15.4 11.5 Total Enterprise Talent Management$534.0 $524.1 Science, Engineering & TechnologyAmericas$320.5 $228.5 Europe1.9 3.1 Total Science, Engineering & Technology$322.4 $231.6 Deferred Costs

Deferred fulfillment costs, which are included in prepaid expenses and other current assets in the consolidated balance sheet, were $0.7 million as of first quarter-end 2025 and $1.8 million as of year-end 2024.  Amortization expense for these deferred costs in the first quarter of 2025 was $1.2 million and in the first quarter of 2024 was $2.4 million. 

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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):First Quarter20252024Allowance for credit losses:Beginning balance$4.9 $8.0 Current period provision2.3 0.4 Currency exchange effects— (0.1)Disposition of EMEA staffing operations— (2.4)Write-offs(0.2)— Ending balance$7.0 $5.9 Write-offs are presented net of recoveries, which were not material for first quarter-end 2025 or 2024.  As of first quarter-end 2025, the Company has a receivable of $17.0 million related to the sale of the EMEA staffing operations (see Acquisitions and Disposition footnote).  The Company has determined that no credit loss provision is required on this receivable as it is considered collectible.  No other allowances related to other receivables were material as of first 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 (“