ManpowerGroup 2011 Annual Report Download - page 57

Notes to Consolidated Financial Statements ManpowerGroup 2011 Annual Report 55
CAPITALIZED SOFTWARE FOR INTERNAL USE
We capitalize purchased software as well as internally developed software. Internal software development costs are
capitalized from the time the internal use software is considered probable of completion until the software is ready for use.
Business analysis, system evaluation, selection and software maintenance costs are expensed as incurred. Capitalized
software costs are amortized using the straight-line method over the estimated useful life of the software which ranges
from 2 to 7 years. The net capitalized software balance of $14.4 and $21.8 as of December 31, 2011 and 2010, respectively,
is included in Other assets in the Consolidated Balance Sheets. Amortization expense related to the capitalized software
costs was $7.8, $11.6 and $10.7 for 2011, 2010 and 2009, respectively.
PROPERTY AND EQUIPMENT
A summary of Property and equipment as of December 31 is as follows:
2011 2010
Land $ 7.3 $ 7.1
Buildings 21.5 19.5
Furniture, fixtures, and autos 194.9 197.0
Computer equipment 164.4 168.0
Leasehold improvements 297.5 297.2
Property and equipment $ 685.6 $ 688.8
Property and equipment are stated at cost and are depreciated using primarily the straight-line method over the following
estimated useful lives: buildings — up to 40 years; furniture and equipment — 2 to 16 years; leasehold improvements —
lesser of life of asset or expected lease term. Expenditures for renewals and betterments are capitalized whereas
expenditures for repairs and maintenance are charged to income as incurred. Upon sale or disposition of property and
equipment, the difference between the unamortized cost and the proceeds is recorded as either a gain or a loss and is
included in our Consolidated Statements of Operations. Long-lived assets are evaluated for impairment in accordance
with the provisions of the accounting guidance on the impairment or disposal of long-lived assets.
DERIVATIVE FINANCIAL INSTRUMENTS
We account for our derivative instruments in accordance with the accounting guidance on derivative instruments and
hedging activities. Derivative instruments are recorded on the balance sheet as either an asset or liability measured at their
fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the
hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge,
the effective portions of the changes in the fair value of the derivative are recorded as a component of Accumulated other
comprehensive income and recognized in the Consolidated Statements of Operations when the hedged item affects
earnings. The ineffective portions of the changes in the fair value of cash flow hedges are recognized in earnings.
FOREIGN CURRENCY TRANSLATION
The financial statements of our non-U.S. subsidiaries have been translated in accordance with the accounting guidance
on foreign currency translation. Under the accounting guidance, asset and liability accounts are translated at the current
exchange rate and income statement items are translated at the weighted-average exchange rate for the year. The resulting
translation adjustments are recorded as a component of Accumulated other comprehensive income, which is included in
Shareholders’ equity.
Certain foreign-currency-denominated borrowings are accounted for as a hedge of our net investment in our subsidiaries
with the related functional currencies. Since our net investment in these subsidiaries exceeds the amount of the related
borrowings, all translation gains or losses related to these borrowings are included as a component of Accumulated other
comprehensive income.
SHAREHOLDERS’ EQUITY
In November 2011, the Board of Directors authorized the repurchase of an additional 3.0 million shares of our common
stock. This authorization was in addition to the 2010 authorization to repurchase 3.0 million shares of our common stock
and the 2007 authorization to repurchase 5.0 million shares of our common stock, not to exceed a total purchase price of
$400.0. Share repurchases may be made from time to time through a variety of methods, including open market purchases,
block transactions, privately negotiated transactions, accelerated share repurchase programs, forward repurchase
agreements or similar facilities. In 2011, we repurchased a total of 2.6 million shares, composed of 0.2 million shares under