Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 51

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 51
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 Persol Holdings and $7.1 million from the impairment of tax-deductible goodwill.  These benefits were offset by a $7.8 million charge from tax exempt life insurance cash surrender value losses.  

90

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

Foreign items include foreign tax credits, foreign non-deductible expenses and non-taxable income.  Foreign business taxes include the French business tax and other taxes based on revenue less certain expenses and are classified as income taxes under ASC 740.  Provision has not been made for additional income taxes on an estimated $65.6 million of foreign subsidiary undistributed earnings which are indefinitely reinvested.  If these earnings were to be repatriated, the Company could be subject to foreign withholding tax, federal and state income tax, net of federal benefit, and income taxes on foreign exchange gains or losses, of $4.7 million. The new Organization for Economic Cooperation and Development ("OECD") Pillar Two global minimum tax rules became effective in 2024 in several jurisdictions in which the Company does business. This did not have a material impact to the Company in 2024.A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions of dollars): 202420232022Balance at beginning of the year$0.6 $0.5 $0.6 Additions for prior years’ tax positions— 0.3 — Reductions for prior years’ tax positions— — — Additions for settlements— — — Reductions for settlements— — — Reductions for expiration of statutes(0.1)(0.2)(0.1)Balance at end of the year$0.5 $0.6 $0.5 If the $0.5 million in 2024, $0.6 million in 2023 and $0.5 million in 2022 of unrecognized tax benefits were recognized, they would have a favorable effect of $0.4 million in 2024, $0.5 million in 2023 and $0.4 million in 2022 on income tax expense.The Company recognizes both interest and penalties as part of the income tax provision.  The Company recognized an insignificant benefit in 2024 and $0.1 million of expense in 2023, for interest and penalties.