Company: KELYB
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000055135-25-000007
Chunk: 2

Company: KELLY SERVICES INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 2
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 exchange for those services.  Our revenues are recorded net of any sales, value added, or similar taxes collected from our customers.  We generate revenue from: the hourly sales of 

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

services by our temporary employees to customers ("staffing services" revenue), the recruiting of permanent employees for our customers ("permanent placement" revenue), and through our talent fulfillment and outcome-based activities ("talent solutions" and "outcome-based services" revenue).We record revenues from sales of services and the related direct costs in accordance with the accounting guidance on reporting revenue gross as a principal versus net as an agent.  When Kelly is the principal, we demonstrate control over the service by being primarily responsible to our customers for fulfilling the contractual promise to provide the service.  When Kelly does not demonstrate control over the service, which may be evident through the arrangement of other contingent labor suppliers and/or service providers to perform services for the customer or by Kelly not holding primary responsibility for the fulfillment of the contractual promise to provide services to the customer, the amounts billed to our customers are net of the amounts paid to the secondary suppliers/service providers and the net amount is recorded as revenues.Staffing Services RevenueStaffing services contracts are generally negotiated and invoiced on a per-hour or per-unit basis as the temporary staffing services are transferred to the customer.  Revenue from the majority of our staffing services continues to be recognized over time as the customer simultaneously receives and consumes the services we provide.  We have applied the practical expedient to recognize revenue for these services over the term of the agreement in proportion to the amount we have the right to invoice the customer.Permanent Placement RevenuePermanent placement revenue is recorded at the point in time the permanent placement candidate begins full-time employment.  On the candidate start date, the customer accepts the candidate and can direct the use of the candidate as well as obtains the significant risk and rewards of the candidate.  We consider this the point the control transfers to the customer.Outcome-Based Services RevenueBillings are generally negotiated and invoiced on a measure of time (hours, weeks, months) or per-unit basis for our services performed.  We continue to recognize revenue from the majority of our outcome-based services over time as the customer simultaneously receives and consumes the services we provide.  For the majority of our outcome-based services, we have applied the practical expedient to recognize revenue for these services over the term of the agreement in