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51
Manpower 2007 Annual Report
Notes to Consolidated Financial Statements
We conduct business globally in 80 countries and territories. Accordingly, we are routinely audited by the various tax jurisdictions
in which we operate. Generally, the tax years that remain subject to examination are 2004 through 2007 for our major operations
in the U.S., France, the U.K., Germany, Italy and Japan. As of December 31, 2007, we are subject to tax audits in France, the
U.K. and the U.S., and we believe that resolution of such audits would not have a material impact on earnings.
06.
Accounts Receivable Securitization
We and certain of our U.S. subsidiaries have an agreement (the “Receivables Facility”) with a fi nancial institution whereby we
may transfer on a continuous basis an interest in all eligible trade accounts receivable. Pursuant to the Receivables Facility, we
formed Ironwood Capital Corporation (“ICC”), a wholly owned, special purpose, bankruptcy-remote subsidiary that is fully
consolidated in our fi nancial statements. ICC was formed for the sole purpose of transferring receivables that we and certain of
our subsidiaries generate. Under the Receivables Facility, we and certain of our subsidiaries, irrevocably and without recourse,
may transfer all of our accounts receivable to ICC. ICC, in turn, subject to certain conditions, may from time to time transfer an
undivided interest in these receivables and is permitted to receive advances of up to $200.0 for the transfer of such undivided
interest. In July 2007, we amended the Receivables Facility to extend its maturity to July 2008 and reduce the fees for the
facility. All other terms remain substantially unchanged.
Under the Receivables Facility, ICC has the ability to repurchase, in full or in part, the accounts receivable it transferred to the
third party. Therefore, transfers made do not qualify for sale accounting, and accordingly, the receivables transferred to the third
party remain on our consolidated balance sheet with the corresponding advance being recorded as debt and amounts charged
on outstanding borrowings during the year are recorded as interest expense. No amounts were advanced under this facility as
of December 31, 2007 and 2006.
Fees associated with the amounts advanced were $0.3, $0.4, and $0.4 in 2007, 2006 and 2005, respectively, and were
recorded as Other Expense in the consolidated statements of operations.
07.
Goodwill
Changes in the carrying value of goodwill by reportable segment are as follows:
United States France Other EMEA Italy
Jefferson
Wells
Right
Management
Other
Operations Total
Balance, December 31, 2005 $ 81.1 $ — $ 191.9 $ 1.7 $ 149.2 $ 448.6 $ 51.4 $ 923.9
Goodwill acquired throughout the year 0.4 — 1.5 — 0.6 14.0 — 16.5
Currency impact and other — — 25.7 — 0.0 6.1 0.4 32.2
Balance, December 31, 2006 $ 81.5 $ — $ 219.1 $ 1.7 $ 149.8 $ 468.7 $ 51.8 $ 972.6
Goodwill acquired throughout the year 34.2 0.2 2.0 — — 7.1 18.1 61.7
Currency impact and other — — 5.5 0.2 — 0.8 5.2 11.6
Balance, December 31, 2007 $ 115.7 $ 0.2 $ 226.6 $ 1.9 $ 149.8 $ 476.6 $ 75.1 $ 1,045.9
There were no signifi cant reductions to goodwill as a result of dispositions or impairments during 2007 or 2006.