ManpowerGroup 2012 Annual Report Download - page 61

PROPERTY AND EQUIPMENT
A summary of property and equipment as of December 31 is as follows:
2012 2011
Land $ 6.8 $ 7.3
Buildings 21.0 21.5
Furniture, fixtures, and autos 198.4 194.9
Computer equipment 169.2 164.4
Leasehold improvements 308.7 297.5
Property and equipment $ 704.1 $ 685.6
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, fixtures, autos and computer 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-United States 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 December 2012, November 2011 and December 2010, the Board of Directors authorized the repurchase of 8.0 million,
3.0 million and 3.0 million shares of our common stock, respectively. 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 2012, we repurchased a
total of 3.6 million shares, comprised of 0.6 million shares under the 2010 authorization and 3.0 million shares under the
2011 authorization, at a total cost of $138.2. In 2011, we repurchased a total of 2.6 million shares, composed of 0.2 million
shares under the 2007 authorization and 2.4 million shares under the 2010 authorization, at a total cost of $104.5. In 2010,
we repurchased 0.9 million shares of common stock at a total cost of $34.8 under the 2007 authorization. As of December
31, 2012, there were no shares remaining under the 2011, 2010 or 2007 authorization. No purchases were made under the
2012 authorization.
During 2012, 2011 and 2010, the Board of Directors declared total cash dividends of $0.86, $0.80, and $0.74 per share,
respectively, resulting in total dividend payments of $67.8, $65.1 and $60.8, respectively.
CASH AND CASH EQUIVALENTS
We consider all highly liquid investments with an original maturity of three months or less when purchased to be
cash equivalents.
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Notes to Consolidated Financial Statements ManpowerGroup 2012 Annual Report