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Notes to Consolidated Financial Statements ManpowerGroup 2011 Annual Report 65
We conduct business globally in 80 countries and territories. We are routinely audited by the tax authorities of the various
tax jurisdictions in which we operate. Generally, the tax years that could be subject to examination are 2008 and 2009 for
our major operations in Germany, Italy, France, Japan, U.S. and United Kingdom. As of December 31, 2011, we are subject
to tax audits in France, Belgium, Denmark, Austria, Italy, Spain, Norway and the United States. We believe that the
resolution of these audits will not have a material impact on earnings.
06.
Goodwill
Changes in the carrying value of Goodwill by reportable segment and Corporate were as follows. This presentation reflects
the realignment of our segments. See Note 14 for further information.
Americas
(1 )
Southern
Europe
(2) Northern
Europe A PME Right
Management(3) Corporate(3),(4),(5) Total
(5)
Balance, January 1, 2010 $ 173.4 $ 21.1 $ 272.9 $ 58.9 $ 150.7 $ 282.1 $ 959.1
Goodwill acquired 290.6 13.2 – 0.2 3.8 – 307.8
Currency impact and other 1.5 (1.2) (7.8) 5.8 0.5 – (1.2)
Impairment charge – – – – (94.4) (217.2) (311.6)
Balance, December 31, 2010 465.5 33.1 265.1 64.9 60.6 64.9 954.1
Goodwill acquired – 26.8 – 13.0 – – 39.8
Currency impact and other (3.7 ) (0.4 ) (4.4) (0.4 ) (0.3 ) – (9.2)
Balance, December 31, 2011 $ 461.8 $ 59.5 $ 260.7 $ 77.5 $ 60.3 $ 64.9 $ 984.7
(1) Balances related to United States were $160.3, $451.7 and $448.3 as of January 1, 2010, December 31, 2010 and December 31, 2011, respectively.
(2) Balances related to France were $7.1, $15.8 and $42.1 as of January 1, 2010, December 31, 2010 and December 31, 2011, respectively. Balances related
to Italy were $4.9, $4.6 and $5.4 as of January 1, 2010, December 31, 2010 and December 31, 2011, respectively.
(3) For further information on the goodwill impairment charges, see Note 1 to the Consolidated Financial Statements. The 2010 goodwill impairment charge
for Right Management impacted both Corporate ($184.5) and Right Management ($94.4).
(4) The majority of the Corporate balance as of December 31, 2011 relates to goodwill attributable to our acquisition of Jefferson Wells ($55.5) which is now
part of the United States reporting unit. For purposes of monitoring our total assets by segment, we do not allocate the Corporate balance to the
respective reportable segments. We do, however, include these balances within the appropriate reporting units for our goodwill impairment testing. See
the table below for the breakout of goodwill balances by reporting unit.
(5) Balances were net of accumulated impairment loss of $201.8 as of January 1, 2010 and $513.4 as of both December 31, 2010 and December 31, 2011.
The 2010 goodwill impairment charge for Jefferson Wells impacted only Corporate ($32.7).
Goodwill balances by reporting unit were as follows:
December 31 2011 2010
United States $ 503.8 $ 507.2
Elan 123.8 123.2
Netherlands (Vitae) 79.3 81.9
Right Management 60.3 60.6
Other reporting units 217.5 181.2
Total goodwill $ 984.7 $ 954.1
07.
Debt
Information concerning Short-term borrowings was as follows:
December 31 2011 2010
Short-term borrowings $ 42.4 $ 28.0
Weighted-average interest rates 11.9 % 7.0%