ManpowerGroup 2006 Annual Report Download - page 61

Manpower฀2006฀Annual฀Report ฀ 57
Notes฀to฀Consolidated฀Financial฀Statements฀
We฀plan฀to฀contribute฀$19.1฀to฀our฀pension฀plans฀and฀$1.5฀to฀our฀retiree฀health฀care฀plan฀in฀2007.฀Projected฀benefit฀payments฀
from฀the฀plans฀as฀of฀December฀31,฀2006฀are฀estimated฀as฀follows:
Year Pension฀Plans Retiree฀Health
2007 $฀ 9.1 $฀ 1.5
2008 9.2 1.6
2009 9.9 1.6
2010 10.0 1.7
2011 10.9 1.7
2012-2016 65.7 8.8
Total $฀ 114.8 $฀ 16.9
We฀adopted฀SFAS฀158฀as฀of฀December฀31,฀2006฀(see฀Note฀1฀for฀further฀discussion).฀The฀incremental฀effect฀of฀adopting฀the฀
statement฀on฀individual฀line฀items฀in฀the฀consolidated฀balance฀sheet฀as฀of฀December฀31,฀2006฀is฀as฀follows:
Before฀Adoption฀
of฀SFAS฀158 Adjustment
After฀Adoption฀of฀
SFAS฀158
Future฀income฀tax฀benefits $฀ 65.7 $฀ 0.7 $฀ 66.4
Total฀current฀assets 4,681.3฀ 0.7฀ 4,682.0฀
Intangible฀assets,฀net 321.1฀ (0.1) 321.0฀
Other฀assets 327.8฀ 8.6฀ 336.4฀
Total฀assets $฀ 6,504.9฀ $฀ 9.2฀ $฀ 6,514.1฀
Accrued฀liabilities $฀ 558.5฀ $฀ 3.6 $฀ 562.1฀
Total฀current฀liabilities 2,878.0฀ 3.6 2,881.6฀
Other฀long-term฀liabilities 354.8฀ 12.3 367.1฀
Total฀other฀liabilities 1,146.0฀ 12.3 1,158.3฀
Accumulated฀other฀comprehensive฀income฀(loss) 127.3฀ (6.7฀) 120.6฀
Total฀shareholders’฀equity 2,480.9฀ (6.7฀) 2,474.2฀
Total฀liabilities฀and฀shareholders’฀equity $฀ 6,504.9฀ $฀ 9.2 $฀ ฀6,514.1฀
Defined฀Contribution฀Plans
We฀have฀defined฀contribution฀plans฀covering฀substantially฀all฀permanent฀U.S.฀employees฀and฀various฀other฀employees฀throughout฀
the฀world.฀Employees฀may฀elect฀to฀contribute฀a฀portion฀of฀their฀salary฀to฀the฀plans฀and฀we฀match฀a฀portion฀of฀their฀contributions฀
up฀to฀a฀maximum฀percentage฀of฀the฀employee’s฀salary.฀In฀addition,฀profit฀sharing฀contributions฀are฀made฀if฀a฀targeted฀earnings฀
level฀is฀reached.฀The฀total฀expense฀for฀our฀match฀and฀any฀profit฀sharing฀contributions฀was฀$20.6,฀$22.9฀and฀$14.2฀for฀2006,฀
2005฀and฀2004,฀respectively.
We฀have฀the฀Senior฀Management฀Performance-Based฀Deferred฀Compensation฀Plan,฀which฀was฀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.฀Participation฀in฀the฀plan฀
was฀determined฀annually฀by฀a฀committee฀of฀the฀Board฀of฀Directors฀and฀benefits฀were฀earned฀by฀participants฀for฀the฀plan฀year฀
based฀on฀our฀attainment฀of฀certain฀established฀goals.฀The฀plan฀was฀frozen฀effective฀February฀1,฀2006,฀and฀no฀benefits฀were฀
earned฀in฀2006.฀Any฀deferred฀benefits฀earn฀interest฀based฀on฀the฀effective฀yield฀on฀a฀fixed฀10-year฀U.S.฀Treasury฀note฀at฀the฀฀
beginning฀of฀each฀year.฀Participants฀become฀vested฀in฀the฀deferred฀benefits฀if฀they฀are฀still฀employed฀by฀Manpower฀when฀they฀
reach฀age฀50฀with฀15฀years฀of฀service,฀when฀they฀reach฀age฀62,฀or฀in฀certain฀other฀circumstances.฀There฀was฀approximately฀
$0.2,฀$1.4฀and฀$1.4฀earned฀under฀this฀plan฀in฀2006,฀2005฀and฀2004,฀respectively.
We฀also฀maintain฀a฀non-qualified฀deferred฀compensation฀plan฀for฀certain฀employees฀at฀Right฀Management.฀Under฀the฀plan,฀
participants฀may฀defer฀from฀their฀pre-tax฀income,฀up฀to฀a฀maximum฀of฀15%฀of฀their฀total฀compensation.฀A฀matching฀contribution฀
is฀made฀of฀25%฀of฀the฀participating฀employees’฀contributions฀to฀the฀plan.฀Additional฀contributions฀are฀made฀to฀the฀plan฀if฀certain฀
internal฀financial฀targets฀are฀met.฀No฀additional฀contributions฀were฀made฀to฀the฀plan฀in฀2006,฀2005฀and฀2004.฀Contributions฀vest฀
at฀33.3%฀over฀a฀three-year฀period฀from฀the฀employee’s฀date฀of฀hire.฀Our฀contributions฀were฀$0.1,฀$0.2฀and฀$0.2฀for฀2006,฀2005฀฀฀฀฀
and฀2004,฀respectively.