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53Manpower Annual Report 2008 Notes to Consolidated Financial Statements
03.
Stock Compensation Plans
We account for share-based payments according to FASB Statement No. 123(R), “Share-Based Payment” (“SFAS 123(R)”).
During 2008, 2007 and 2006 we recognized approximately $21.1, $26.0 and $22.5, respectively, in share-based
compensation expense related to stock options, deferred stock, restricted stock, and the stock purchase plan, all of which is
recorded in Selling and Administrative Expenses. The total income tax benefit recognized related to share-based
compensation during 2008, 2007 and 2006 was $3.2, $3.3 and $3.0, respectively. Cash received from stock option exercises
for 2008, 2007 and 2006 was $12.2, $35.0 and $54.0, respectively. The excess income tax benefit recognized related to
share-based compensation awards, which is recorded in Capital in Excess of Par Value, for 2008, 2007 and 2006 was
approximately $0.3, $5.3 and $8.2, respectively. We recognize compensation expense on grants of share-based
compensation awards on a straight-line basis over the vesting period of each award.
STOCK OPTIONS
All share-based compensation is currently granted under our 2003 Equity Incentive Plan of Manpower Inc. (“2003 Plan”).
Options and stock appreciation rights are granted at a price not less than 100% of the fair market value of the common stock
at the date of grant. Generally, options are granted with a vesting period of up to four years and expire ten years from date of
grant. As of December 31, 2008, 2007 and 2006 no stock appreciation rights had been granted or were outstanding.
A summary of stock option activity is as follows:
Wtd. Avg. Aggregate
Wtd. Avg. Remaining Intrinsic
Exercise Price Contractual Value
Shares (000) Per Share Term (years) (in millions)
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
Exercisable, December 31, 2006 2,159 $ 34 5.4
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
Exercisable, December 31, 2007 2,300 $ 37 5.1
Outstanding, January 1, 2008 4,379 $ 48
Granted 980 56
Exercised (161) 36 $ 3
Expired or cancelled (171) 57
Outstanding, December 31, 2008 5,027 $ 50 6.2 $ 3
Exercisable, December 31, 2008 2,868 $ 42 4.8 $ 3
Options outstanding and exercisable as of December 31, 2008 are as follows:
Options Options
Outstanding Exercisable
Weighted-
Average
Remaining Weighted- Weighted-
Contractual Life Average Average
Exercise Price Shares (000) (years) Exercise Price Shares (000) Exercise Price
$9-$39 1,225 2.7 $ 32 1,225 $ 32
$40-$45 1,333 5.5 44 1,061 44
$46-$55 884 7.3 53 383 53
$56-$93 1,585 8.6 66 199 77
5,027 6.2 $ 50 2,868 $ 42
We have recognized expense of $14.0, $13.3 and $13.0 related to stock options for the years ended December 31, 2008,
2007 and 2006, respectively. The total fair value of options vested during the same periods were $12.5, $12.8 and $15.9,