Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 6

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 6
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10.9 22.6  5yearsLeasehold improvements6.5 13.1 HQ: 15 yearsBranches: Lesser of the lease or 5 yearsTotal property and equipment$140.0 $165.9  The property and equipment at cost for 2023 in the table above includes $27.8 million of assets held for sale (see Acquisitions and Dispositions footnote).  The Company capitalizes external costs and internal payroll costs directly incurred in the development of software for internal use as required by the Internal-Use Software Subtopic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC").  Work in process represents capitalized costs for internal-use software not yet in service. Depreciation expense was $12.5 million for 2024, $12.4 million for 2023 and $13.6 million for 2022. Cloud Computing Arrangements The Company has cloud computing arrangements that are comprised of internal-use software platforms that are accounted for as service contracts.  The Company does not have the ability to take possession of the software without significant penalty nor can the Company run the software on its own hardware or contract with another party unrelated to the vendor to host the software.  Implementation costs associated with these cloud computing arrangements are capitalized when incurred during the application development phase.  Amortization is calculated on a straight-line basis and is a component of SG&A expenses in our consolidated statements of earnings.  Amortization expense was $11.6 million for 2024, $6.9 million for 2023, and $4.2 million for 2022.  The related accumulated amortization totaled $23.5 million in 2024 and $14.2 million in 2023, of which $2.3 million was held for sale.  Capitalized amounts related to such arrangements are recorded within prepaid and other current assets and non-current other assets in the consolidated balance sheet.  The Company had $4.5 million as of year-end 2024 and $4.9 million, of which $0.1 million was held for sale, as of year-end 2023 recorded in prepaid expenses and other current assets in the consolidated balance sheet.  The Company had $41.4 million as of year-end 2024 and $27.3 million, of which $3.4 million was held for sale, as of year-end 2023 recorded in