ManpowerGroup 2013 Annual Report Download - page 59

Notes to Consolidated Financial Statements ManpowerGroup 2013 Annual Report 57
The amounts billed for outplacement, consulting services and performance-based contracts in excess of the amount
recognized as revenues are recorded as deferred revenue and included in accrued liabilities for the current portion and
other long-term liabilities for the long-term portion in our Consolidated Balance Sheets. As of December 31, 2013 and 2012,
the current portion of deferred revenue was $48.5 and $55.7, respectively, and the long-term portion of deferred revenue
was $10.0 and $17.1, respectively.
We record revenues from sales of services and the related direct costs in accordance with the accounting guidance on
reporting revenue gross as a principal versus net as an agent. In situations where we act as a principal in the transaction,
we report gross revenues and cost of services. When we act as an agent, we report the revenues on a net basis. Amounts
billed to clients for out-of-pocket or other cost reimbursements are included in revenues from services, and the related
costs are included in cost of services.
ALLOWANCE FOR DOUBTFUL ACCOUNTS
We have an allowance for doubtful accounts recorded as an estimate of the accounts receivable balance that may not be
collected. This allowance is calculated on an entity-by-entity basis with consideration for historical write-off experience, the
current aging of receivables and a specific review for potential bad debts. Items that affect this balance mainly include bad
debt expense and the write-off of accounts receivable balances.
Bad debt expense is recorded as selling and administrative expenses in our Consolidated Statements of Operations and
was $24.1, $29.2 and $25.9 in 2013, 2012 and 2011, respectively. Factors that would cause this provision to increase
primarily relate to increased bankruptcies by our clients and other difficulties collecting amounts billed. On the other hand,
an improved write-off experience and aging of receivables would result in a decrease to the provision. Write-offs were
$26.4, $23.2 and $25.0 for 2013, 2012 and 2011, respectively.
ADVERTISING COSTS
We expense production costs of advertising as they are incurred. Advertising expenses were $22.3, $27.2 and $34.0 in
2013, 2012 and 2011, respectively.
RESTRUCTURING COSTS
We recorded net restructuring costs of $89.4, $48.8 and $23.1 in 2013, 2012 and 2011, respectively, in selling and
administrative expenses, primarily related to severances and office closures and consolidations in multiple countries and
territories. These expenses are net of reversals of previous accruals resulting mainly from larger-than-estimated cost
savings from subleasing and lease buyouts. During 2013, we made payments of $82.4 out of our restructuring reserve. We
expect a majority of the remaining $48.4 reserve will be paid or utilized in 2014. Changes in the restructuring liability
balances for each reportable segment and Corporate are as follows:
Americas(1)
Southern
Europe(2)
Northern
Europe APME
Right
Management Corporate Total
Balance, January 1, 2012 $ 4.0 $ 4.2 $ 11.8 $ 1.2 $ 8.2 $ — $ 29.4
Severance costs, net 5.8 2.1 8.3 0.7 3.1 9.2 29.2
Office closure costs, net 4.0 1.7 4.9 — 7.8 1.2 19.6
Costs paid or utilized (9.3) (3.3) (9.4) (1.9) (12.5) (0.4) (36.8)
Balance, December 31, 2012 4.5 4.7 15.6 — 6.6 10.0 41.4
Severance costs, net 15.2 6.2 24.7 2.7 9.1 4.4 62.3
Office closure costs, net 2.8 1.6 14.3 3.5 4.9 — 27.1
Costs paid or utilized (15.7) (8.0) (32.4) (4.4) (8.3) (13.6) (82.4)
Balance, December 31, 2013 $ 6.8 $ 4.5 $ 22.2 $ 1.8 $ 12.3 $ 0.8 $ 48.4
(1) Balance related to United States was $3.3 as of January 1, 2012. In 2012, United States incurred $3.4 for severance costs and $4.0 for office closure
costs and paid/utilized $6.9, leaving a $3.8 liability as of December 31, 2012. In 2013, United States incurred $7.8 for severance costs and $1.8 for
office closure costs and paid/utilized $8.3, leaving a $5.1 liability as of December 31, 2013.
(2) Balance related to France was $3.5 as of January 1, 2012. In 2012, France incurred $1.7 for office closure costs and paid/utilized $1.4, leaving a $3.8
liability as of December 31, 2012. In 2013, France incurred $0.6 for severance costs and $1.6 for office closure costs and paid/utilized $2.5, leaving a
$3.5 liability as of December 31, 2013. Italy had a $0.4 liability as of January 1, 2012. In 2012, Italy incurred $0.7 for severance costs and paid $0.2,
leaving a $0.9 liability as of December 31, 2012. In 2013, Italy recorded severance costs of $3.4 and paid out $3.4, leaving a $0.9 liability as of
December 31, 2013.