Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 28

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 28
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 2023 related to these efforts totaled $5.7 million, which included $4.6 million of severance and $1.1 million of lease termination and other expenses and were recorded entirely in SG&A expenses in the consolidated statements of earnings.In the second quarter of 2023, the Company announced a comprehensive transformation initiative that included actions to further streamline the Company's operating model to enhance organizational efficiency and effectiveness. The total costs incurred related to these transformation activities in 2023 totaled $32.2 million. The transformation activities included $17.7 million of costs to execute the transformation initiatives through the use of an external consultant, severance of $11.6 million, a $2.4 million impairment charge for ROU assets related to an unoccupied office space lease and $0.5 million of lease termination costs. The impairment charge related to the ROU assets was recorded in the asset impairment charge in the consolidated statements of earnings. The costs to execute, the severance, and lease termination costs were recorded in SG&A expenses in the consolidated statements of earnings, as detailed further below.In connection with the sale of our EMEA staffing operations in the first quarter of 2024 (see Acquisitions and Dispositions footnote), there was an additional amount of severance costs for $3.1 million incurred in the fourth quarter of 2023 that was related to the sale and recorded in SG&A expenses in the consolidated statements of earnings and included in the table below.The restructuring and transformation costs incurred in 2023 and included in SG&A are detailed below (in millions of dollars):Severance CostsLease Termination Costs, Transformation and OtherTotalProfessional & Industrial$6.0 $0.7 $6.7 Science, Engineering & Technology1.3 0.3 1.6 Education1.0 — 1.0 Outsourcing & Consulting3.0 — 3.0 International3.3 — 3.3 Corporate4.7 18.3 23.0 Total$19.3 $19.3 $38.6 

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

2022 ActionsIn the first quarter of 2022, the Company took restructuring actions designed to increase efficiency.  Restructuring costs incurred in 2022 totaled $1.7