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Notes to Consolidated Financial Statements ManpowerGroup 2011 Annual Report 63
A reconciliation between taxes computed at the U.S. Federal statutory rate of 35% and the consolidated effective tax rate
was as follows:
Yea r E n ded De cem ber 31 2 011 2010 2009
Income tax based on statutory rate $ 168.0 $ (57.8) $ (8.0)
Increase (decrease) resulting from:
State income taxes, net of Federal benefit 5.2 (0.6) 2.9
Non-U.S. tax rate difference(1) 40.6 38.7 3.3
Repatriation of non-U.S. earnings 11.1 (4.8) (37.2)
Change in valuation reserve (3.3 ) 11.7 10.6
Non-deductible goodwill impairment charge – 109.1 21.4
Other, net 6.7 2.1 (4.9)
Non-deductible competition investigation in France – – (1.8)
Tax provision $ 228.3 $ 98.4 $ (13.7)
(1) Included above in the impact of the non-U.S. tax rate difference was the French business tax, which has been classified as a component of income tax
beginning in January 2010, in accordance with the current accounting guidance on income taxes. Prior to January 2010, the French business tax had
been presented as non-income tax and included as a component of Cost of services. The French government changed the business tax from an asset-
based tax to an income-based tax, thereby requiring the classification of this tax as income tax effective January 1, 2010.
Deferred income taxes are recorded on temporary differences at the tax rate expected to be in effect when the temporary
differences reverse. Temporary differences, which gave rise to the deferred taxes, were as follows:
Yea r E n ded De cem ber 31 2011 2010
Current Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance $ 10.7 $ 9.7
Employee compensation payable 26.8 22.3
Pension and postretirement benefits (5.6 ) (1.8)
Other 22.0 29.5
Valuation allowance (2.9 ) –
51.0 59.7
Noncurrent Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance 22.5 20.4
Pension and postretirement benefits 55.0 50.4
Intangible assets(1) (126.4 ) (125.7)
Net operating losses(1) 144.9 182.9
Other(1) 103.5 105.7
Valuation allowance (116.3 ) (123.2)
83.2 110.5
Total future tax benefits $ 134.2 $ 170.2
Current tax asset $ 52.4 $ 59.7
Current tax liability (1.4 ) –
Noncurrent tax asset 102.7 128.1
Noncurrent tax liability (19.5 ) (17.6)
Total future tax benefits $ 134.2 $ 170.2
(1) The 2010 amounts originally presented above for Intangible assets, Net operating losses and Other have been revised by ($91.3), ($14.4) and $105.7,
respectively, to correct the prior year presentation. This change did not affect the deferred tax assets and liabilities reported in the 2010 Consolidated
Balance Sheet.
The current tax liability is recorded in Accrued liabilities, the noncurrent tax asset is recorded in Other assets and the
noncurrent tax liability is recorded in Other long-term liabilities in the Consolidated Balance Sheets.