ManpowerGroup 2011 Annual Report Download - page 34

32 ManpowerGroup 2011 Annual Report Management’s Discussion & Analysis
MANAGEMENT’S DISCUSSION & ANALYSIS
of financial condition and results of oper ations
Amounts rep resen t 2 010
Pe rcen ta ges rep resen t 20 10 c ompar ed to 2 00 9
Reported
Amount
(in millions)
Reported Variance
Im pact of Currency
Variance
in Constant
Currency
Impact of
Acquisitions
(In Constant
Currency)
Organic
Constant
Currency
Variance
Revenues from Services
Americas:
United States $ 2,783.4 55.8 % –% 55.8% 33.4% 22.4%
Other Americas 1,265.5 30.8 6.4 24.4 – 24.4
4,048.9 47.1 2.3 44.8 21.7 23.1
Southern Europe:
France 5,208.6 11.4 (6.6) 18.0 – 18.0
Italy 1,044.2 9.8 (6.2) 16.0 – 16.0
Other Southern Europe 698.9 18.3 (1.9) 20.2 – 20.2
6,951.7 11.8 (6.1) 17.9 – 17.9
Northern Europe 5,344.1 11.8 (2.1) 13.9 – 13.9
APME 2,147.2 24.3 9.8 14.5 – 14.5
Right Management 374.6 (33.0) 0.8 (33.8) – (33.8)
ManpowerGroup $ 18,866.5 17.6% (1.6)% 19.2% 3.7% 15.5%
Gross Profit — ManpowerGroup $ 3,245.4 15.2% (1.2)% 16.4% 5.3% 11.1%
Operating Unit Profit
Americas:
United States $ 42.8 203.3% –% 203.3% 62.0% 141.3%
Other Americas 36.5 81.4 8.5 72.9 – 72.9
79.3 472.2 8.0 464.2 120.6 343.6
Southern Europe:
France 47.1 126.4 (23.7) 150.1 – 150.1
Italy 47.5 70.2 (11.9) 82.1 – 82.1
Other Southern Europe 7.2 N/A – N/A – N/A
101.8 138.8 (18.5) 157.3 – 157.3
Northern Europe 150.2 267.9 (13.7) 281.6 – 281.6
APME 47.2 78.4 14.8 63.6 – 63.6
Right Management 3.5 (96.9) 1.1 (98.0) – (98.0)
Operating Loss — ManpowerGroup $ (122.0) (392.6)% (25.7)% (366.9)% 10.3% (377.2)%
Cash Sources And Uses
Cash used to fund our operations is primarily generated through operating activities and provided by our existing credit
facilities. We believe that our available cash and our existing credit facilities are sufficient to cover our cash needs for the
foreseeable future. We assess and monitor our liquidity and capital resources globally. We use a global cash pooling
arrangement, intercompany lending, and some local credit lines to meet funding needs and allocate our capital resources
among our various entities. We anticipate cash repatriations to the United States from certain international subsidiaries
and have provided for deferred taxes related to those foreign earnings not considered to be permanently invested. As of
December 31, 2011 we have identified approximately $363.4 million of non-U.S. funds that we plan to repatriate. We may
repatriate additional funds in the future as cash needs arise.
Our principal ongoing cash needs are to finance working capital, capital expenditures, debt payments, interest expense,
share repurchases, dividends and acquisitions. Working capital is primarily in the form of trade receivables, which generally
increase as revenues increase. The amount of financing necessary to support revenue growth depends on receivables
turnover, which differs in each market where we operate.
Cash provided by operating activities was $69.2 million, $182.1 million and $414.3 million for 2011, 2010 and 2009. The
decrease in cash generated from operating activities in 2011 from 2010 was primarily attributable to increased working
capital needs as a result of the growth in the business, a 1.6 day increase in our Days Sales Outstanding (“DSO”) and timing
of tax payments. Changes in operating assets and liabilities utilized approximately $367.6 million of cash in 2011 and
$76.4 million in 2010 as compared to providing cash of $239.4 million in 2009. This cash usage in 2011 was primarily due to
the increase in accounts receivable as a result of the growth in our business and timing of tax payments.