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ManpowerGroup 2013 Annual Report Notes to Consolidated Financial Statements
60
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data
We hold a 49% interest in our Swiss franchise, which maintained an investment portfolio with a market value of $204.2 and
$192.5 as of December 31, 2013 and 2012, respectively. This portfolio is comprised of a wide variety of European and
United States debt and equity securities as well as various professionally-managed funds, all of which are classified as
available-for-sale. Our share of net realized gains and losses, and declines in value determined to be other-than-temporary,
are included in our Consolidated Statements of Operations. For the years ended December 31, 2013, 2012 and 2011,
realized gains totaled $3.6, $0.1 and $0.1, respectively, and realized losses totaled $1.4, $0.2 and $0.3, respectively. Our
share of net unrealized gains and unrealized losses that are determined to be temporary related to these investments are
included in accumulated other comprehensive income, with the offsetting amount increasing or decreasing our investment
in the franchise.
CAPITALIZED SOFTWARE FOR INTERNAL USE
We capitalize purchased software as well as internally developed software. Internal software development costs are
capitalized from the time the internal use software is considered probable of completion until the software is ready for use.
Business analysis, system evaluation, selection and software maintenance costs are expensed as incurred. Capitalized
software costs are amortized using the straight-line method over the estimated useful life of the software which ranges from
3 to 10 years. The net capitalized software balance of $4.6 and $10.6 as of December 31, 2013 and 2012, respectively, is
included in other assets in the Consolidated Balance Sheets. Amortization expense related to the capitalized software
costs was $5.6, $7.3 and $7.8 for 2013, 2012 and 2011, respectively.
PROPERTY AND EQUIPMENT
A summary of property and equipment as of December 31 is as follows:
2013 2012
Land $ 6.2 $ 6.8
Buildings 20.8 21.0
Furniture, fixtures, and autos 194.1 198.4
Computer equipment 168.1 169.2
Leasehold improvements 317.0 308.7
Property and equipment $ 706.2 $ 704.1
Property and equipment are stated at cost and are depreciated using primarily the straight-line method over the following
estimated useful lives: buildings — up to 40 years; furniture, fixtures, autos and computer equipment — 2 to 16 years;
leasehold improvements — lesser of life of asset or expected lease term. Expenditures for renewals and betterments are
capitalized whereas expenditures for repairs and maintenance are charged to income as incurred. Upon sale or disposition
of property and equipment, the difference between the unamortized cost and the proceeds is recorded as either a gain or
a loss and is included in our Consolidated Statements of Operations. Long-lived assets are evaluated for impairment in
accordance with the provisions of the accounting guidance on the impairment or disposal of long-lived assets.
DERIVATIVE FINANCIAL INSTRUMENTS
We account for our derivative instruments in accordance with the accounting guidance on derivative instruments and
hedging activities. Derivative instruments are recorded on the balance sheet as either an asset or liability measured at their
fair value. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the
hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge,
the effective portions of the changes in the fair value of the derivative are recorded as a component of accumulated other
comprehensive income and recognized in the Consolidated Statements of Operations when the hedged item affects
earnings. The ineffective portions of the changes in the fair value of cash flow hedges are recognized in earnings.