Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 4

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 4
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 basis over a period of benefit that we have determined to be the average length of assignment of the employees.  We determined the period of benefit by taking into consideration our customer contracts, attrition rates and other relevant factors.  Amortization expense is included in SG&A expenses in the consolidated statements of earnings.Unsatisfied Performance ObligationsIn accordance with the applicable guidance, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.Allowance for Credit Losses - Trade Accounts Receivable The Company records an allowance for uncollectible accounts receivable, billed and unbilled, based on historical loss experience, customer payment patterns, current economic trends, and reasonable and supportable forecasts, as applicable.  The reserve for sales allowances is also included in the allowance for uncollectible accounts receivable.  The Company estimates the current expected credit losses by applying internally developed loss rates to all outstanding receivable balances by aging category.  Accounts receivable are written-off against the allowance when they are deemed uncollectible.  The Company reviews the adequacy of the allowance for uncollectible accounts receivable on a quarterly basis and, if necessary, increases or decreases the balance by recording a charge or credit to SG&A expenses for the portion of the adjustment relating to uncollectible accounts receivable, and a charge or credit to revenue from services for the portion of the adjustment relating to sales allowances. We are exposed to credit losses primarily through our sales of workforce solution services to customers.  We establish an allowance for estimated credit losses in the current period resulting from the failure of our customers to make required payments on their trade accounts receivable in future periods.  We pool such assets by geography and other similar risk characteristics, such as accounts in collection, and apply an aging method to estimate future credit losses utilizing inputs such as historical write-off experience, customer payment patterns, current collection data, and reasonable and supportable forecasts, as applicable.  Credit risk with respect to accounts receivable is limited due to short payment terms. The Company also performs ongoing credit evaluations using applicable credit ratings of its customers to help analyze credit risk.  We monitor ongoing credit exposure through frequent review of past due accounts (based on the payment terms of the contract) and follow-up with customers, as appropriate.  We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables.Allow