ManpowerGroup 2007 Annual Report Download - page 34

31Management’s Discussion & Analysis Manpower 2007 Annual Report
In December 2006, we adopted SFAS No. 158, “Employers’ Accounting for Defi ned Benefi t Pension and Other Postretirement
Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R), (“SFAS 158”). SFAS 158 requires that we recognize
the overfunded or underfunded status of our defi ned benefi t and retiree medical plans (our “Plans”) as an asset or liability in our
consolidated balance sheets, with changes in the funded status recognized through comprehensive income in the year in
which they occur. SFAS 158 also requires us to measure the funded status of our Plans as of the balance sheet date, rather than
as of an earlier measurement date, in 2008. We do not expect the change in measurement date to have a material impact on
our consolidated fi nancial statements.
In December 2007, the FASB issued Statement No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an
amendment of ARB No. 51” (“SFAS 160”). SFAS 160 requires (a) that noncontrolling (minority) interests be reported as a
component of shareholders’ equity, (b) that net income attributable to the parent and to the noncontrolling interest be separately
identifi ed in the consolidated statement of operations, (c) that changes in a parent’s ownership interest while the parent retains
its controlling interest be accounted for as equity transactions, (d) that any retained noncontrolling equity investment upon the
deconsolidation of a subsidiary be initially measured at fair value, and (e) that suffi cient disclosures are provided that clearly
identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. SFAS 160 is effective
for us in 2009 and shall be applied prospectively. However, the presentation and disclosure requirements of the statement shall
be applied retrospectively for all periods presented. We are currently assessing the impact of the adoption of this statement.
Forward-Looking Statements
Statements made in this annual report that are not statements of historical fact are forward-looking statements. All forward-
looking statements involve risks and uncertainties. The information under the heading “Forward-Looking Statements” in our
annual report on Form 10-K for the year ended December 31, 2007, which information is incorporated herein by reference,
provides cautionary statements identifying, for purposes of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, important factors that could cause our actual results to differ materially from those contained in the forward-looking
statements. Some or all of the factors identifi ed in our annual report on Form 10-K may be beyond our control. Forward-looking
statements can be identifi ed by words such as “expect,” “anticipate,” “intend,” “plan,” “may,” “believe,” “seek,” “estimate,” and
similar expressions. We caution that any forward-looking statement refl ects only our belief at the time the statement is made.
We undertake no obligation to update any forward-looking statements to refl ect subsequent events or circumstances.
MANAGEMENT REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
We are responsible for establishing and maintaining effective internal control over fi nancial reporting as defi ned in Rule 13a-15(f)
under the Securities Exchange Act of 1934. Our internal control over fi nancial reporting is a process designed to provide
reasonable assurance to management and the Board of Directors regarding the reliability of fi nancial reporting and the preparation
of fi nancial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over fi nancial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Under the supervision and with the participation of management, including our Chairman and Chief Executive Offi cer and our
Executive Vice President and Chief Financial Offi cer, we conducted an evaluation of the effectiveness of our internal control over
fi nancial reporting based on the framework in Internal Control–Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission. This evaluation included review of the documentation of controls, evaluation of the
design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. Based on
our evaluation we have concluded that our internal control over fi nancial reporting was effective as of December 31, 2007.
February 21, 2008