ManpowerGroup 2012 Annual Report Download - page 75

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Our plans’ investment policies are to optimize the long-term return on plan assets at an acceptable level of risk and to
maintain careful control of the risk level within each asset class. Our long-term objective is to minimize plan expenses and
contributions by outperforming plan liabilities. We have historically used a balanced portfolio strategy based primarily on a
target allocation of equity securities and fixed-income instruments, which vary by location. These target allocations, which
are similar to the 2012 allocations, are determined based on the favorable risk tolerance characteristics of the plan and, at
times, may be adjusted within a specified range to advance our overall objective.
The fair value of our pension plan assets are primarily determined by using market quotes and other relevant information
that is generated by market transactions involving identical or comparable assets. The fair value of our pension plan assets
by asset category was as follows:
United States Plans Non-United States Plans
Fair Value Measurements Using Fair Value Measurements Using
December 31,
2012
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) December 31,
2012
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Asset Category
Cash and cash equivalents
(1)
$ 1.8 $ 1.8 $ — $— $ 2.6 $ 2.6 $ — $—
Equity securities:
United States companies 16.1 16.1 — — — — — —
International companies — — — — 72.8 72.8 — —
Fixed income securities:
Government bonds
(2)
18.1 — 18.1 — — — — —
Guaranteed insurance
contracts — — — — 112.9 — 112.9 —
Other types of investments:
Unitized funds
(3)
— — — — 101.3 101.3 — —
Real estate funds — — — — 6.8 — 6.8 —
$36.0 $17.9 $18.1 $— $296.4 $176.7 $119.7 $—
(1) This category includes a prime obligations money market portfolio.
(2) This category includes United States Treasury/Federal agency securities and foreign government securities.
(3) This category includes investments in approximately 80% fixed income securities and 20% equity.
United States Plans Non-United States Plans
Fair Value Measurements Using Fair Value Measurements Using
December 31,
2011
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) December 31,
2011
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Asset Category
Cash and cash equivalents
(1)
$ 1.8 $ 1.8 $ — $— $ 1.5 $ 1.5 $ — $—
Equity securities:
United States companies 15.4 15.4 — — — — — —
International companies — — — — 57.9 57.9 — —
Fixed income securities:
Government bonds
(2)
17.5 — 17.5 — — — — —
Corporate bonds — — — — 59.4 — 59.4 —
Guaranteed insurance
contracts — — — — 38.4 — 38.4 —
Other types of investments:
Unitized funds
(3)
— — — — 87.9 87.9 — —
Real estate funds — — — — 5.3 — 5.3 —
$34.7 $17.2 $17.5 $— $250.4 $147.3 $103.1 $—
(1) This category includes a prime obligations money market portfolio.
(2) This category includes United States Treasury/Federal agency securities and foreign government securities.
(3) This category includes investments in approximately 80% fixed income securities, 10% equity and 10% cash and cash equivalents.
73
Notes to Consolidated Financial Statements ManpowerGroup 2012 Annual Report