ManpowerGroup 2013 Annual Report Download - page 63

Notes to Consolidated Financial Statements ManpowerGroup 2013 Annual Report 61
FOREIGN CURRENCY TRANSLATION
The financial statements of our non-United States subsidiaries have been translated in accordance with the accounting
guidance on foreign currency translation. Under the accounting guidance, asset and liability accounts are translated at the
current exchange rate and income statement items are translated at the weighted-average exchange rate for the year. The
resulting translation adjustments are recorded as a component of accumulated other comprehensive income, which is
included in shareholders’ equity.
Our euro-denominated notes are accounted for as a hedge of our net investment in our subsidiaries with a euro-functional
currency. Since our net investment in these subsidiaries exceeds the amount of the related borrowings, all translation gains
or losses related to these borrowings are included as a component of accumulated other comprehensive income.
SHAREHOLDERS’ EQUITY
In December 2012 and November 2011, the Board of Directors authorized the repurchase of 8.0 million and 3.0 million
shares of our common stock, respectively. Share repurchases may be made from time to time through a variety of methods,
including open market purchases, block transactions, privately negotiated transactions, accelerated share repurchase
programs, forward repurchase agreements or similar facilities. No repurchases were made in 2013. In 2012, we repurchased
a total of 3.6 million shares, comprised of 0.6 million shares under a previous authorization and 3.0 million shares under the
2011 authorization, at a total cost of $138.2. In 2011, we repurchased a total of 2.6 million shares under previous
authorizations at a total cost of $104.5. As of December 31, 2013, there were 8.0 million shares remaining authorized for
repurchase under the 2012 authorization and no shares remaining under any previous authorizations.
During 2013, 2012 and 2011, the Board of Directors declared total cash dividends of $0.92, $0.86 and $0.80 per share,
respectively, resulting in total dividend payments of $72.0, $67.8 and $65.1, respectively.
CASH AND CASH EQUIVALENTS
We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash
equivalents.
PAYROLL TAX CREDIT
In January 2013, the French government passed legislation, Credit d’Impôt pour la Compétitivité et l’Emploi (“CICE”),
effective January 1, 2013, that provides payroll tax credits based on a percentage of wages paid to employees receiving
less than two-and-a-half times the French minimum wage. The payroll tax credit is equal to 4% of eligible wages in 2013
and increases to 6% of eligible wages starting in 2014. The CICE payroll tax credit is accounted for as a reduction of our
cost of services in the period earned.
The payroll tax credit is creditable against our current income tax payable, with any remaining amount being paid after
three years. Given the amount of our current income taxes payable, we would generally receive the vast majority of these
payroll tax credits after the three-year period. However, we entered into an agreement in December 2013 to sell a portion
of the credits earned in 2013 for net proceeds of $104.0. We derecognized these receivables upon sale date as the terms
of the agreement are such that the transaction qualifies for sale treatment according to the accounting guidance on the
transfer and servicing of assets. The discount on the sale of this receivable was recorded as a reduction of the 2013 payroll
tax credits in cost of services.