ManpowerGroup 2008 Annual Report Download - page 53

51Manpower Annual Report 2008 Notes to Consolidated Financial Statements
SHAREHOLDERS’ EQUITY
In August 2007, October 2006 and 2005, the Board of Directors authorized the repurchase of 5.0 million shares of our
common stock, not to exceed a total purchase price of $400.0, $325.0 and $250.0, respectively. Share repurchases may be
made from time to time and may be implemented through a variety of methods, including open market purchases, block
transactions, privately negotiated transactions, accelerated share repurchase programs, forward repurchase agreements or
similar facilities. Under the 2007 authorization, we have repurchased 2.2 million and 1.7 million shares of common stock
during 2008 and 2007, respectively, at a total cost of $112.2 and $105.7 during 2008 and 2007, respectively. There are 1.1
million shares, at a cost of up to $182.1, remaining authorized for repurchase under this authorization as of December 31,
2008. Under the 2006 authorization, we repurchased 4.4 million shares of common stock at a total cost of $325.0 during
2007. Under the 2005 authorization, we repurchased 4.3 million shares at a total cost of $250.0 during 2005 and the first eight
months of 2006.
STATEMENT OF CASH FLOWS
We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash
equivalents.
RECENTLY ISSUED ACCOUNTING STANDARDS
In December 2008, the FASB issued FASB Staff Position No. FAS 132(R)-1, “Employers’ Disclosures about Postretirement
Benefit Plan Assets” (“FSP FAS132(R)-1”). FSP FAS132(R)-1 requires additional disclosures about plan assets of a defined
benefit pension or other postretirement plan. FSP FAS132(R)-1 will be effective for us in 2009.
In December 2007, the FASB issued Statement No. 141 (revised 2007), “Business Combinations” (“SFAS 141(R)”). SFAS
141(R) changes the requirements for an acquirer’s recognition and measurement of the assets acquired and the liabilities
assumed in a business combination. SFAS 141(R) is effective for us in 2009. The impact of SFAS 141(R) is dependent on the
level of future acquisitions.
In April 2008, the FASB issued FASB Staff Position No. FAS 142-3, “Determination of the Useful Life of Intangible Assets”
(“FSP FAS 142-3”). FSP FAS 142-3 amends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset under SFAS 142, “Goodwill and Other
Intangible Assets.” FSP FAS 142-3 is effective for us in 2009 and must be applied prospectively. We do not expect the
adoption of this statement to have a material impact on our consolidated financial statements.
The FASB issued Statement No. 157 “Fair Value Measurements” (“SFAS 157”) in September 2006. SFAS 157 defines fair
value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and
expands disclosures about fair value measurements. Subsequently in February 2008, the FASB issued FASB Staff Position
No. FAS 157-1, “Application of FASB Statement No. 157 to FASB Statement No. 13 and Other Accounting Pronouncements
That Address Fair Value Measurements for Purposes of Lease Classification or Measurement under Statement 13” (“FSP
FAS 157-1”) and FASB Staff Position No. FAS 157-2, “Partial Deferral of the Effective Date of Statement 157” (“FSP FAS
157-2”). FSP FAS 157-1 removed leasing transactions accounted for under Statement No. 13 and related guidance from the
scope of SFAS 157. FSP FAS 157-2 deferred the effective date of SFAS 157 for all nonfinancial assets and nonfinancial
liabilities to fiscal years beginning after November 15, 2008. We implemented SFAS 157 for financial assets and financial
liabilities effective January 1, 2008 with no material impact on our consolidated financial statements. We are currently
assessing the impact of SFAS 157 for nonfinancial assets and nonfinancial liabilities on our financial statements. (See Fair Value
Instruments of Note 1 for further information about our fair value measurements as of December 31, 2008.)
In December 2006, we adopted Statement No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (“SFAS 158”). Under its measurement
date provisions, SFAS 158 requires us to measure the funded status of our defined benefit and retiree medical plans as of the
balance sheet date in 2008, rather than as of an earlier measurement date. We adopted the measurement date provisions as
of December 31, 2008. The net impact of the measurement date change was a $1.7 decrease in pension asset, which was
accounted for as a $0.1 increase in Retained Earnings and a $1.8 decrease in Accumulated Other Comprehensive (Loss)
Income on our consolidated balance sheet. See the consolidated statements of shareholders’ equity for the effect of applying
the provisions.