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63
Notes to Consolidated Financial Statements Manpower 2009 Annual Report
Under our Amended Revolving Credit Agreement, we have a ratings-based pricing grid which determines the facility fee and
the credit spread that we add to the applicable interbank borrowing rate on all borrowings. At our current credit ratings, the
facility fee is 45 bps, and the credit spread is 255 bps. Any further downgrades from the credit agencies would unfavorably
impact our facility fees and result in additional costs ranging from approximately $0.6 to $1.3 annually. As of December 31,
2009, the interest rate under the agreement was Libor plus 2.55% (for U.S. Dollar borrowings, or alternative base rate for
foreign currency borrowings). We had no borrowings under this amended credit agreement as of December 31, 2009.
On October 16, 2009, we repaid the €100.0 ($146.4) borrowings outstanding under our revolving credit agreement, and
terminated the related interest rate swap agreements. As a result, we incurred approximately $7.5 in fees classifi ed as
interest expense, which was recorded in the third quarter.
DEBT MATURITIES
The maturities of Long-term debt payable within each of the four years subsequent to December 31, 2010 are as follows:
2011 – $0.5, 2012 – $429.4, 2013 – $285.7, and 2014 – none.
09.
Retirement And Deferred Compensation Plans
DEFINED BENEFIT PLANS
We sponsor several qualifi ed and nonqualifi ed pension plans covering permanent employees. The reconciliation of the
changes in the plans’ benefi t obligations and the fair value of plan assets and the funded status of the plans are as follows:
U.S. Plans Non-U.S. Plans
Year Ended December 31 2009 2008 2009 2008
Change in Benefi t Obligation
Benefi t obligation, beginning of year $ 49.3 $ 49.8 $ 208.8 $ 243.8
Service cost – 0.1 11.1 14.3
Interest cost 3.0 3.6 11.1 12.3
Plan amendments – –(1.4 ) 10.5
Curtailments – –(19.4 ) –
Transfers – –(0.4 ) (0.8)
Actuarial loss (gain) 3.7 0.8 – (26.3)
Plan participant contributions – –2.3 2.8
Benefi ts paid (4.3 ) (5.0) (6.6 ) (6.6)
Currency exchange rate changes – –20.1 (41.2)
Benefi t obligation, end of year $ 51.7 $ 49.3 $ 225.6 $ 208.8
Change in Plan Assets
Fair value of plan assets, beginning of year $ 30.3 $ 41.9 $ 175.8 $ 195.9
Actual return on plan assets 6.2 (9.7) 16.5 (10.1)
Curtailments – –(16.7 ) –
Transfers – –(1.1 ) (0.1)
Plan participant contributions – –2.3 2.8
Company contributions 2.8 3.1 12.9 31.1
Benefi ts paid (4.3 ) (5.0) (6.6 ) (6.6)
Currency exchange rate changes – –17.5 (37.2)
Fair value of plan assets, end of year $ 35.0 $ 30.3 $ 200.6 $ 175.8
Funded Status at End of Year
Funded status, end of year $ (16.7 ) $ (19.0) $ (25.0) $ (33.0)
Amounts Recognized
Noncurrent assets $ 13.9 $ 0.4 $ 24.0 $ 15.4
Current liabilities (2.4 ) (1.7) (0.5 ) (0.5)
Noncurrent liabilities (28.2 ) (17.7) (48.5 ) (47.9)
Net amount recognized $ (16.7 ) $ (19.0) $ (25.0 ) $ (33.0)
Effective January 1, 2009, we terminated our defi ned benefi t plan in Japan and replaced it with a defi ned contribution plan,
resulting in a curtailment and settlement gain of $4.3.