ManpowerGroup 2004 Annual Report Download - page 74

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2004 Annual Report MANPOWER INC.72
The calculation of Net Earnings Per Share – Diluted for the years ended December 31, 2004, 2003 and 2002 does not
include certain stock option grants because the exercise price for these options is greater than the average market
price of the common shares during that year. The number, exercise prices and weighted-average remaining life of these
antidilutive options is as follows:
2004 2003 2002
Shares (in thousands) 7217 207
Exercise price ranges $48 - $49 $37- $44 $36- $41
Weighted-average remaining life 9.1 years 7.3 years 5.6 years
04.
INCOME TAXES
The provision for income taxes consists of:
Year Ended December 31 2004 2003 2002
Current
United States:
Federal $ 29.9 $ 1.0 $ 3.4
State 3.7 0.7 (0.3)
Foreign 99.0 95.7 61.0
Total current 132.6 97.4 64.1
Deferred
United States:
Federal 12.0 (4.5) 8.0
State 0.9 0.3 0.7
Foreign (21.7) (8.8) 2.0
Total deferred (8.8) (13.0) 10.7
Total provision $ 123.8 $ 84.4 $ 74.8
A reconciliation between taxes computed at the United States Federal statutory tax rate of 35% and the consolidated
effective tax rate is as follows:
Year Ended December 31 2004 2003 2002
Income tax based on statutory rate $ 129.3 $ 77.7 $ 65.8
Increase (decrease) resulting from:
Foreign tax rate differences 9.2 7.7 4.5
Tax effect of foreign earnings (12.2) (6.8) 0.7
Change in valuation reserve (1.1) 6.3 5.6
Reversal of tax contingency reserve (8.0) ——
Other, net 6.6 (0.5) (1.8)
Total provision $ 123.8 $ 84.4 $ 74.8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data