ManpowerGroup 2007 Annual Report Download - page 46

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Manpower 2007 Annual Report
Notes to Consolidated Financial Statements
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 state-
ment shall be applied retrospectively for all periods presented. We are currently assessing the impact of the adoption of this
statement.
02.
Acquisitions And Discontinued Operations
From time to time, we acquire and invest in companies throughout the world, including franchises. The total cash consideration
paid for acquisitions was $122.8, primarily related to franchise acquisitions, $13.0 and $12.9 in 2007, 2006 and 2005, respectively.
Discontinued Operations
In January 2006, we sold a non-core payroll processing business in Sweden. In addition, in December 2006, we sold a
non-core facilities management services business in the Nordics. Pre-tax gains of $123.5 ($89.5 after tax, or $1.02 per share –
diluted) related to these sales were recorded in Income from Discontinued Operations in 2006. The cash proceeds from the
sales of these operations of $123.9 was received in 2006. Also in December 2006, we recorded a net loss of $1.7 on the
disposal of one of our Right Management subsidiaries. We have recorded the results of these operations as discontinued
operations for the years ended December 31, 2006 and 2005, respectively.
Summarized fi nancial information for the discontinued operations is as follows:
Year Ended December 31 2006 2005
Revenues from services $ 224.0 $ 235.0
Cost of services and Selling and administrative expenses 217.0 227.4
Earnings before income taxes 7.0 7.6
Provision for income taxes (2.5) (2.6)
Net gain on sale of businesses, net of income taxes of $34.0 87.8 —
Income from discontinued operations, net of income taxes $ 92.3 $ 5.0