Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 21

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 data).Restricted StockSharesWeighted Average Grant Date Fair ValueNonvested at year-end 20241,061 $19.79 Granted615 13.45 Vested(310)19.64 Forfeited(31)19.33 Nonvested at first quarter-end 20251,335 $16.91 

12. Other Income (Expense), NetIncluded in other income (expense), net for the first quarter of 2025 and 2024 are the following: First Quarter20252024(In millions of dollars)Interest income$0.8 $2.8 Interest expense(4.0)(0.5)Other— (0.5)Other income (expense), net$(3.2)$1.8 

23 

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

13. Income TaxesIncome tax expense was $1.8 million for the first quarter of 2025 and $4.0 million for the first quarter of 2024.  The quarterly variance primarily relates to changes in pretax income.The Company's tax expense is affected by recurring items, such as the amount of pretax income and its mix by jurisdiction, U.S. work opportunity credits and the change in cash surrender value of tax-exempt investments in life insurance policies.  It is also affected by discrete items that may occur in any given period but are not consistent from period to period, such as tax law changes, changes in judgment regarding the realizability of deferred tax assets and the tax effects of stock compensation.The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.  The Company continues to monitor its partial foreign tax credit valuation allowance for potential changes in the near term.

14. ContingenciesThe Company is continuously engaged in litigation, threatened litigation, claims, audits or investigations arising in the ordinary course of its business, such as matters alleging employment discrimination, wage and hour violations, claims for indemnification or liability, violations of privacy rights, anti-competition regulations, commercial and contractual disputes, and tax-related matters which could result in a material adverse outcome.  The Company records accruals for loss contingencies when the Company believes it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.  Such accr