Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 32

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 temporary employees with its customers.(2)  Direct salaries refers to the compensation expenses for employees directly related to the Company’s operations and service delivery.  These expenses include salaries, related payroll taxes, severance, various benefits and performance-based incentives and bonuses for these employees.(3)  For both third quarter and September year-to-date 2024, other segment expenses for each reportable segment included:•Shared services costs for IT, human resources, legal and finance support, other professional services and overhead expenses, facilities and equipment-related costs, and operational software licenses.(4)  Represents total company depreciation and amortization of intangibles, including the amortization of hosted software.

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

Depreciation and amortization expense is included in SG&A expenses in the consolidated statements of earnings.  Depreciation and amortization expense amounts below include amortization of implementation costs for hosted software, which are excluded in the presentation of depreciation and amortization in the consolidated statements of cash flows.  The depreciation and amortization amounts by segment are as follows:Third QuarterSeptember Year-to-Date 2025202420252024(in millions)Depreciation and amortization:Enterprise Talent Management$2.5 $4.4 $8.4 $13.4 Science, Engineering & Technology8.0 8.0 23.2 17.6 Education2.1 2.1 6.3 6.2 

17. New Accounting PronouncementsRecently Issued Accounting Pronouncements Not Yet AdoptedIn September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU simplifies and modernizes guidance for internal-use software by clarifying capitalization thresholds, improving comparability and reducing judgment diversity across all software development methodologies. This ASU is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU allows for a practical expedient