ManpowerGroup 2012 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2012 ManpowerGroup annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

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:
Year Ended December 31 2012 2011
Current Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance $ 11.8 $ 10.7
Employee compensation payable 20.3 26.8
Pension and postretirement benefits (3.0) (5.6)
Other 32.5 22.0
Valuation allowance (4.9) (2.9)
56.7 51.0
Noncurrent Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance 19.9 22.5
Pension and postretirement benefits 58.7 55.0
Intangible assets (118.1) (126.4)
Net operating losses 149.0 144.9
Other 82.7 103.5
Valuation allowance (126.2) (116.3)
66.0 83.2
Total future tax benefits $ 122.7 $ 134.2
Current tax asset $ 60.6 $ 52.4
Current tax liability (3.9) (1.4)
Noncurrent tax asset 84.4 102.7
Noncurrent tax liability (18.4) (19.5)
Total future tax benefits $ 122.7 $ 134.2
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.
We have United States Federal and non-United States net operating loss carryforwards and United States state net operating
loss carryforwards totaling $483.4 and $310.9, respectively, as of December 31, 2012. The net operating loss carryforwards
expire as follows:
United States Federal
and Non-United States United States —
State
2013 $ 1.9 $ 2.0
2014 7.0 7.6
2015 7.1 4.1
2016 10.5 2.9
2017 5.6 6.2
Thereafter 134.7 288.1
No expirations 316.6 —
Total net operating loss carryforwards $483.4 $310.9
We have recorded a deferred tax asset of $149.0 as of December 31, 2012, for the benefit of these net operating losses.
Realization of this asset is dependent on generating sufficient taxable income prior to the expiration of the loss carryforwards.
A related valuation allowance of $118.1 has been recorded as of December 31, 2012, as management believes that
realization of certain net operating loss carryforwards is unlikely.
Pretax income of non-United States operations was $234.6, $395.5 and $191.1 in 2012, 2011 and 2010, respectively. We
have not provided United States income taxes and non-United States withholding taxes on $594.8 of unremitted earnings of
non-United States subsidiaries that are considered to be reinvested indefinitely. Deferred taxes are provided on $341.1 of
unremitted earnings of non-United States subsidiaries that may be remitted to the United States. As of December 31, 2012
and 2011, we have recorded a deferred tax liability of $15.7 and $22.0, respectively, related to these non-United States
earnings that may be remitted.
67
Notes to Consolidated Financial Statements ManpowerGroup 2012 Annual Report