ManpowerGroup 2004 Annual Report Download - page 84

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2004 Annual Report MANPOWER INC.82
We use a December 31 measurement date for this plan. The discount rate used in the measurement of the benefit
obligation was 5.8% and 6.3% in 2004 and 2003, respectively. The discount rate used in the measurement of net periodic
benefit cost was 6.3%, 6.5%, and 7.5% in 2004, 2003 and 2002, respectively. The components of net periodic benefit
cost for this plan are as follows:
Year Ended December 31 2004 2003 2002
Service cost $ 0.4 $ 0.4 $ 0.3
Interest cost 1.3 1.3 1.3
Amortization of unrecognized gain (0.5) (0.6) (1.0)
$ 1.2 $ 1.1 $ 0.6
The health care cost trend rate was assumed to be 10.0% for 2004, decreasing gradually to 5.5% for the years 2009
and beyond. Assumed health care cost trend rates have a significant effect on the amounts reported. A one-percentage
point change in the assumed health care cost trend rate would have the following effects:
1% Increase 1% Decrease
Effect on total of service and interest cost components $ 0.2 $ (0.2)
Effect on postretirement benefit obligation 3.2 (2.8)
Plan Contributions and Benefit Payments
We plan to contribute $17.9 to our defined benefit plans and $1.2 to our retiree health care plan in 2005. Projected
benefit payments from the plans as of December 31, 2004 are estimated as follows:
Year Pension Retiree
Plans Health
2005 $ 7.4 $ 1.2
2006 7.5 1.2
2007 8.2 1.2
2008 8.0 1.3
2009 8.5 1.3
2010-2014 51.3 7.6
Defined Contribution Plans
We have defined contribution plans covering substantially all permanent United States employees and various other
employees throughout the world. Employees may generally elect to contribute a portion of their salary to the plans and we
match a portion of their contribution up to a maximum percentage of the employee’s salary. In addition, profit sharing
contributions are made to certain U.S. plans if a targeted earnings level is reached in the United States. The total expense
for our match and any profit sharing contributions was $14.2, $7.9, and $6.9 for 2004, 2003, and 2002, respectively.
Deferred Compensation Plans
In February 2004, we established the Senior Management Performance-Based Deferred Compensation Plan. The plan
is intended to focus our corporate executives on the achievement of certain annual operating goals, shareholder value
creation, and execution of our business strategies over the longer term by aligning company executives’ interests with
shareholders’ interests. Under the plan, incentives are focused on improving our Net Earnings Per Share – Diluted and
economic profit. Participation in the plan is determined annually by a Committee of the Board of Directors. Deferred
compensation benefits are earned by participants for the plan year based on our attainment of certain established goals
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data