ManpowerGroup 2013 Annual Report Download - page 60

ManpowerGroup 2013 Annual Report Notes to Consolidated Financial Statements
58
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data
INCOME TAXES
We account for income taxes in accordance with the accounting guidance on income taxes. Deferred tax assets and
liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying
amounts of existing assets and liabilities and their respective tax basis, and net operating loss and tax credit carryforwards.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. We record a valuation allowance against
deferred tax assets for which utilization of the asset is not likely.
FAIR VALUE MEASUREMENTS
The assets and liabilities measured and recorded at fair value on a recurring basis were as follows:
Fair Value Measurements Using Fair Value Measurements Using
Quoted
Prices in
Active
Markets for
Identical
Significant
Other
Observable
Significant
Unobservable
Quoted
Prices in
Active
Markets for
Identical
Significant
Other
Observable
Significant
Unobservable
December 31,
2013
Assets
(Level 1)
Inputs
(Level 2)
Inputs
(Level 3)
December 31,
2012
Assets
(Level 1)
Inputs
(Level 2)
Inputs
(Level 3)
Assets
Foreign currency forward
contracts $ 0.3 $ — $0.3 $ — $ 0.1 $ — $0.1 $ —
Deferred compensation
plan assets 71.6 71.6 — — 58.7 58.7 — —
$71.9 $71.6 $0.3 $ — $58.8 $58.7 $0.1 $ —
We determine the fair value of our deferred compensation plan assets, comprised of publicly traded securities, by using
market quotes as of the last day of the period. The fair value of the foreign currency forward contracts is measured at the
value from either directly or indirectly observable third parties.
The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and other current assets and
liabilities approximate their fair values because of the short-term nature of these instruments. The carrying value of our
variable-rate long-term debt approximates fair value. The fair value of the euro-denominated notes, as observable at
commonly quoted intervals (Level 2 inputs), was $520.1 and $778.8 as of December 31, 2013 and 2012, respectively,
compared to a carrying value of $480.9 and $725.5, respectively.
GOODWILL AND OTHER INTANGIBLE ASSETS
We have goodwill, finite-lived intangible assets and indefinite-lived intangible assets as follows:
2013 2012
December 31 Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
Goodwill
(1)
$ 1,090.9 $ — $ 1,090.9 $ 1,041.3 $ — $ 1,041.3
Intangible assets:
Finite-lived:
Technology $ 19.6 $ 19.6 $ — $ 19.6 $ 19.6 $ —
Franchise agreements 18.0 17.9 0.1 18.0 16.1 1.9
Customer relationships 351.5 196.4 155.1 339.0 165.1 173.9
Other 16.2 14.0 2.2 15.2 12.4 2.8
405.3 247.9 157.4 391.8 213.2 178.6
Indefinite-lived:
Tradenames
(2)
54.0 — 54.0 54.0 — 54.0
Reacquired franchise rights 97.7 — 97.7 98.0 — 98.0
151.7 — 151.7 152.0 — 152.0
Total intangible assets $ 557.0 $247.9 $ 309.1 $ 543.8 $213.2 $ 330.6
(1) Balances were net of accumulated impairment loss of $513.4 as of both December 31, 2013 and 2012.
(2) Balances were net of accumulated impairment loss of $139.5 as of both December 31, 2013 and 2012.