Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 14

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 14
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 relation to the costs capitalized.

3. Credit LossesThe rollforward of our allowance for credit losses related to trade accounts receivable, which is recorded in trade accounts receivable, less allowance in the consolidated balance sheet, is as follows (in millions of dollars):December Year to Date202420232022Allowance for credit losses:Beginning balance$8.0 $7.7 $9.4 Current period provision0.6 2.1 1.3 Currency exchange effects(0.3)0.3 (0.2)Disposition of EMEA staffing operations(2.4)— — Write-offs(1.0)(2.1)(2.8)Ending balance$4.9 $8.0 $7.7 Write-offs are presented net of recoveries, which were not material for December year-to-date 2024, 2023 and 2022. As of year-end 2024, the Company has a receivable of $16.4 million related to the sale of our EMEA staffing operations (see Acquisitions and Dispositions footnote). The Company has determined that no credit loss provision is required on this receivable as it is considered collectible. There were no long-term customer receivables in 2024, 2023 and 2022.  No allowances related to other receivables were material for December year-to-date 2024, 2023 and 2022.

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

4. Acquisitions and DispositionsAcquisitionsChildren's Therapy CenterOn November 13, 2024, Kelly Services USA, LLC ("KSU"), a wholly owned subsidiary of the Company, acquired 100% of the issued and outstanding limited liability company interests of Children's Therapy Center ("CTC").  CTC specializes in occupational, physical, and speech therapy for children and will expand the Company's growth opportunities in therapeutic services.  Under terms of the purchase agreement, the purchase price of $3.3 million was adjusted for cash held by CTC at the closing date and estimated working capital adjustments, resulting in the company paying cash of $3.1 million.  Goodwill generated from the acquisition of $3.0 million was primarily attributable to expanding market potential and was assigned to the Education operating segment (see Goodwill and Intangible Assets footnote).