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45
Manpower 2007 Annual Report
Notes to Consolidated Financial Statements
A summary of stock option activity is as follows:
Shares (000)
Wtd. Avg.
Exercise Price
Per Share
Wtd. Avg.
Remaining
Contractual
Term (years)
Aggregate
Intrinsic Value
(in millions)
Outstanding, January 1, 2005 5,136 $ 33
Granted 1,236 44
Exercised (774) 30 $ 12
Expired or cancelled (269) 36
Outstanding, December 31, 2005 5,329 $ 36 6.9 $ 56
Exercisable, December 31, 2005 2,640 $ 32 5.6 $ 39
Outstanding, January 1, 2006 5,329 $ 36
Granted 958 53
Exercised (1,525) 33 $ 41
Expired or cancelled (265) 43
Outstanding, December 31, 2006 4,497 $ 41 6.9 $ 154
Exercisable, December 31, 2006 2,159 $ 34 5.4 $ 88
Outstanding, January 1, 2007 4,497 $ 41
Granted 835 77
Exercised (703) 36 $ 31
Expired or cancelled (250)51
Outstanding, December 31, 2007 4,379 $ 48 6.5 $ 40
Exercisable, December 31, 2007 2,300 $ 37 5.1 $ 45
Options outstanding and exercisable as of December 31, 2007 are as follows:
Options Outstanding Options Exercisable
Exercise Price Shares (000)
Weighted-
Average
Remaining
Contractual Life
(years)
Weighted-
Average Exercise
Price Shares (000)
Weighted
Average Exercise
Price
$9 – $37 1,289 3.7 $ 31 1,289 $ 31
$38 – $44 1,389 6.5 44 760 43
$45 – $53 891 7.8 52 251 51
$54 – $93 810 9.1 77 — —
4,379 6.5 $ 48 2,300 $ 37
We have recognized expense of $13.3 and $13.0 related to stock options for the years ended December 31, 2007 and 2006,
respectively. The total fair value of options vested during the same periods were $12.8 and $15.9, respectively. As of
December 31, 2007, total unrecognized compensation cost was approximately $24.8, net of estimated forfeitures, which we
expect to recognize over a weighted-average period of approximately 1.8 years.
We estimated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model and the
following assumptions:
Year Ended December 31 2007 2006 2005
Average risk-free interest rate 4.8%4.7% 3.8%
Expected dividend yield 0.9% 1.1% 0.9%
Expected volatility 27.0% 30.0% 30.0%
Expected term (years) 4.7 5.0 4.7
The average risk-free interest rate is based on the fi ve-year U.S. Treasury security rate in effect as of the grant date. The
expected dividend yield is based on the expected annual dividend as a percentage of the market value of our common stock as
of the grant date. We determined expected volatility using a weighted average of daily historical volatility (weighted 40 percent)
of our stock price over the past fi ve years and implied volatility (weighted 60 percent) based upon exchange traded options for