ManpowerGroup 2012 Annual Report Download - page 76

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RETIREE HEALTH CARE PLAN
We provide medical and dental benefits to certain eligible retired employees in the United States. Due to the nature of the
plan, there are no plan assets. The reconciliation of the changes in the plan’s benefit obligation and the statement of the
funded status of the plan were as follows:
Year Ended December 31 2012 2011
Change in Benefit Obligation
Benefit obligation, beginning of year $ 28.5 $ 25.5
Service cost 0.1 0.1
Interest cost 1.3 1.3
Actuarial loss 3.2 3.3
Benefits paid (1.9) (1.9)
Plan participant contributions 0.2 0.1
Retiree drug subsidy reimbursement 0.1 0.1
Benefit obligation, end of year $ 31.5 $ 28.5
Funded Status at End of Year
Funded status, end of year $ (31.5) $ (28.5)
Amounts Recognized
Current liabilities $ (1.8) $ (1.6)
Noncurrent liabilities (29.7) (26.9)
Net amount recognized $ (31.5) $ (28.5)
The amount recognized in accumulated other comprehensive income, net of tax, consisted of a net loss of $2.7 and $0.7
in 2012 and 2011, respectively.
The discount rate used in the measurement of the benefit obligation was 3.9% and 4.8% in 2012 and 2011, respectively.
The discount rate used in the measurement of net periodic benefit cost was 4.8%, 5.3% and 5.7% in 2012, 2011 and 2010,
respectively. The components of net periodic benefit cost for this plan were as follows:
Year Ended December 31 2012 2011 2010
Net Periodic Benefit Cost
Service cost $ 0.1 $ 0.1 $ 0.1
Interest cost 1.3 1.3 1.4
Net gain —— (0.1)
Net periodic benefit cost 1.4 1.4 1.4
Other Changes in Plan Assets and Benefit Obligations Recognized
in Other Comprehensive Loss
Net loss 3.2 3.3 1.1
Amortization of net gain —— 0.1
Total recognized in other comprehensive loss 3.2 3.3 1.2
Total recognized in net periodic benefit cost and other comprehensive loss $ 4.6 $ 4.7 $ 2.6
The estimated net loss for the retiree health care plan that will be amortized from accumulated other comprehensive loss
into net periodic benefit cost during 2013 is $0.3.
The health care cost trend rate was assumed to remain flat at 7.5% through 2013, then grading to an ultimate rate of 5.0%
in 2020. Assumed health care cost trend rates have a significant effect on the amounts reported. A one-percentage point
change in the assumed health care cost trend rate would have the following effects:
1% Increase 1% Decrease
Effect on total of service and interest cost components $0.2 $(0.2)
Effect on benefit obligation 4.1 (3.5)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data
74 ManpowerGroup 2012 Annual Report Notes to Consolidated Financial Statements