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MANPOWER INC. 2004 Annual Report71
Other acquisitions
The total cash consideration net of cash acquired, for acquisitions other than RMC was $(14.7), $6.7, and $33.5 in 2004,
2003 and 2002, respectively. The 2004 amount includes cash acquired of $28.7. In addition to the cash consideration,
in 2003 and 2002 we acquired ownership interests in certain U.S. franchises in exchange for approximately 13,000 and
592,000 shares, respectively, of our common stock, which had an aggregate market value of $0.7 and $21.9, respectively,
at the dates of acquisition.
In connection with a European acquisition completed during the first quarter of 2004, we established a reserve of $16.7
for severance and other exit costs related to the acquired company. These expenses are being funded by the inflow of
cash that resulted from the acquisition. Since the date of the acquisition, there has been $15.9 paid from this reserve.
03.
EARNINGS PER SHARE
During September 2004, the EITF issued EITF 04-8, which requires the effect of contingently convertible debt securities
with a market price trigger to be included in the calculation of diluted earnings per share, using the “if-converted”
method, regardless of whether the market price trigger has been met. EITF 04-8 also requires restatement of previously
reported earnings. Our unsecured zero-coupon convertible debentures, issued August 17, 2001 have such a feature,
and therefore we have restated Net Earnings Per Share-Diluted for all periods presented.
Net Earnings Per Share – Diluted restated for EITF 04-8 is as follows:
Year Ended December 31 2004 2003 2002
Net Earnings per Share – Diluted
As reported $2.59$ 1.74 $ 1.46
Restated 2.59 1.69 1.42
The calculation of Net Earnings Per Share is as follows:
Year Ended December 31 2004 2003 2002
Net earnings available to common shareholders $ 245.7 $ 137.7 $ 113.2
Weighted-average common shares outstanding (in millions) 88.9 77.7 76.4
$2.76$ 1.77 $ 1.48
The calculation of Net Earnings Per Share – Diluted is as follows:
Year Ended December 31 2004 2003 2002
Net earnings $ 245.7 $ 137.7 $ 113.2
Add: Amortization related to convertible debt, net of taxes 4.8 6.4 5.9
Net earnings available to common shareholders $ 250.5 $ 144.1 $ 119.1
Weighted-average common shares outstanding (in millions) 88.9 77.7 76.4
Effect of dilutive securities – stock options (in millions) 1.8 1.6 1.3
Effect of convertible debentures (in millions) 6.1 6.1 6.1
96.8 85.4 83.8
$2.59$ 1.69 $ 1.42
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data