Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 16

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 was measured using the measurement alternative for equity investments without a readily determinable fair value 

18 

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

and had a carrying value of $6.4 million as of year-end 2024 and at the time of the sale, representing total cost plus observable price changes to date. As a result, the sale had no impact on other income (expense), net in the consolidated statements of earnings.

6. Integration, Realignment and Restructuring2025 ActionsIn the first quarter of 2025, the Company launched various initiatives aimed at integrating MRP and other prior acquisitions, combining operating segments, and further aligning processes and technology across the Company.  The costs incurred related to these integration and realignment initiatives totaled $6.1 million and $16.8 million during the second quarter and June year-to-date 2025, respectively.  For the second quarter 2025, integration and realignment costs consisted of $1.7 million of IT-related charges, $2.1 million of severance and $2.3 million of fees and other costs to execute the initiatives.  For June year-to-date 2025, integration and realignment costs consisted of $7.0 million of IT-related charges, $6.5 million of severance and $3.3 million of fees and other costs to execute the initiatives.  The severance costs incurred as a part of these efforts are primarily accounted for in accordance with ASC 712 Compensation - Nonretirement Postemployment Benefits.  The integration and realignment costs are recorded in selling, general and administrative (“SG&A”) expenses in the consolidated statements of earnings.The integration and realignment costs included in SG&A are detailed below for the second quarter and June year-to-date 2025 (in millions of dollars):Second Quarter 2025IT-related ChargesSeveranceFees and OtherTotalEnterprise Talent Management$— $1.0 $0.1 $1.1 Science, Engineering & Technology0.1 0.9 — 1.0 Education— 0.1 — 0.1 Corporate1.6 0.1 2.2 3.9 Total$1.7 $2.1 $2.3 $6.1 June Year-to-Date 2025IT-related ChargesSeverance