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56 Notes to Consolidated Financial Statements Manpower Annual Report 2008
Notes To Consolidated Financial Statements
in millions, except per share data
OTHER STOCK PLANS
Under the 1990 Employee Stock Purchase Plan, designated employees meeting certain service requirements may purchase
shares of our common stock through payroll deductions. These shares may be purchased at the lesser of 85% of their fair
market value at the beginning or end of each year.
The fair value of each share purchased under the plan is estimated using the Black-Scholes option-pricing model and the
following weighted-average assumptions:
Year Ended December 31 2008 2007 2006
Average risk-free interest rate 3.2% 5.0% 4.4%
Expected dividend yield 1.2% 0.9% 1.1%
Expected volatility 30.0% 27.0% 30.0%
Expected term (years) 1.0 1.0 1.0
These assumptions are determined using the same methodology applied in determining the assumptions used in calculating
the fair value of our stock options.
We recognized expense of $1.8, $3.0 and $2.6 for shares purchased under the plan in 2008, 2007 and 2006, respectively.
We also maintain the Savings Related Share Option Scheme for U.K. employees with at least one year of service. The
employees are offered the opportunity to obtain an option for a specified number of shares of common stock at not less than
85% of its market value on the day prior to the offer to participate in the plan. Options vest after either three, five or seven
years, but may lapse earlier. Funds used to purchase the shares are accumulated through specified payroll deductions over a
60-month period. We recognized expense of $0.5, $0.2 and $0.3 for shares purchased under the plan in 2008, 2007 and
2006, respectively.
04.
Earnings Per Share
The calculation of Net Earnings Per Share – Basic is as follows:
Year Ended December 31 2008 2007 2006
Net earnings from continuing operations $ 218.9 $ 484.7 $ 305.7
Income from discontinued operations, net of taxes — — 92.3
Net earnings available to common shareholders $ 218.9 $ 484.7 $ 398.0
Weighted-average common shares outstanding 78.7 83.1 86.2
Net earnings per share from continuing operations – basic $ 2.78 $ 5.83 $ 3.55
Net earnings per share from discontinued operations – basic — — 1.07
Total $ 2.78 $ 5.83 $ 4.62
The calculation of Net Earnings Per Share – Diluted is as follows:
Year Ended December 31 2008 2007 2006
Net earnings from continuing operations $ 218.9 $ 484.7 $ 305.7
Income from discontinued operations, net of taxes — — 92.3
Net earnings available to common shareholders $ 218.9 $ 484.7 $ 398.0
Weighted-average common shares outstanding 78.7 83.1 86.2
Effect of restricted stock grants 0.3 0.2 0.3
Effect of dilutive securities – stock options 0.7 1.3 1.2
79.7 84.6 87.7
Net earnings per share from continuing operations – diluted $ 2.75 $ 5.73 $ 3.48
Net earnings per share from discontinued operations – diluted — — 1.06
Total $ 2.75 $ 5.73 $ 4.54