ManpowerGroup 2012 Annual Report Download - page 58

INCOME TAXES
We account for income taxes in accordance with the accounting guidance on income taxes. Deferred tax assets and
liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying
amounts of existing assets and liabilities and their respective tax basis, and net operating loss and tax credit carryforwards.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. We record a valuation allowance against
deferred tax assets for which utilization of the asset is not likely.
FAIR VALUE MEASUREMENTS
The assets and liabilities measured and recorded at fair value on a recurring basis were as follows:
Fair Value Measurements Using Fair Value Measurements Using
Quoted
Prices in
Active
Markets for
Identical
Significant
Other
Observable Significant Unobservable
Quoted
Prices in
Active
Markets for
Identical
Significant
Other
Observable Significant Unobservable
December 31,
2012 Assets (Level 1) Inputs (Level 2) Inputs (Level 3) December 31, 2011 Assets (Level 1) Inputs (Level 2) Inputs (Level 3)
Assets
Available-for-sale securities $ — $ — $ — $— $ 0.4 $ 0.4 $ — $—
Foreign currency forward
contracts 0.1 — 0.1 — — — — —
Deferred compensation
plan assets 58.7 58.7 — — 45.2 45.2 — —
$58.8 $58.7 $0.1 $— $45.6 $45.6 $ — $—
Liabilities
Foreign currency forward
contracts $ — $ — $ — $— $ 0.3 $ — $0.3 $—
$ — $ — $ — $— $ 0.3 $ — $0.3 $—
We determine the fair value of our available-for-sale securities and deferred compensation plan assets, comprised of
publicly traded securities, by using market quotes as of the last day of the period. The fair value of the foreign currency
forward contracts are measured at the value from either directly or indirectly observable third parties.
The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and other current assets and
liabilities approximate their fair values because of the short-term nature of these instruments. The carrying value of long-
term debt approximates fair value, except for the euro-denominated notes. The fair value of the euro-denominated notes,
as determined by the quoted market prices, was $778.8 and $654.9 as of December 31, 2012 and 2011, respectively,
compared to a carrying value of $725.5 and $647.6, respectively.
We also measured certain non-financial assets on a non-recurring basis, including goodwill and tradenames. In 2010,
goodwill and tradenames with a carrying amount of $1,438.2 were written down to their fair value of $1,009.4, resulting in
an impairment charge of $428.8 and summarized as follows:
Fair Value Measurements Using
December 31,
2010
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs (Level 3) Total Losses
Goodwill $954.1 $— $— $954.1 $(311.6)
Tradenames 55.3 — — 55.3 (117.2)
$(428.8)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data
56 ManpowerGroup 2012 Annual Report Notes to Consolidated Financial Statements