ManpowerGroup 2013 Annual Report Download - page 64

ManpowerGroup 2013 Annual Report Notes to Consolidated Financial Statements
62
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data
RECENTLY ISSUED ACCOUNTING STANDARDS
In March 2013, the FASB issued new accounting guidance on cumulative translation adjustment. The new guidance
requires that currency translation adjustments should be released into net income only if the sale of a foreign subsidiary
results in the complete liquidation of the entity. For an equity method investment that is a foreign entity, a pro rata portion of
the currency translation adjustments should be released into net income upon a partial sale of such an equity method
investment. The new guidance also clarifies that the sale of an investment in a foreign entity includes both (1) events that
result in the loss of a controlling financial interest in the foreign entity and (2) events that result in an acquirer’s obtaining
control of an acquiree in which it held an equity interest immediately before the acquisition date, otherwise known as a
“step acquisition.” Accordingly, the cumulative translation adjustment should be released into net income upon the
occurrence of those events. The guidance is effective for us in 2014. We are currently assessing the impact of the adoption
of this guidance on our Consolidated Financial Statements.
In July 2013, the FASB issued new accounting guidance on presentation of an unrecognized tax benefit. The new guidance
requires that, in certain cases, an unrecognized tax benefit should be presented in the financial statements as a reduction
to the deferred tax asset when there is an existing net operating loss carryforward, a similar tax loss or an existing tax credit
carryforward. The guidance is effective for us in 2014. We are currently assessing the impact of the adoption of this
guidance on our Consolidated Financial Statements.
SUBSEQUENT EVENTS
We have evaluated events and transactions occurring after the balance sheet date through our filing date and noted no
events that are subject to recognition or disclosure.
02.
Acquisitions
From time to time, we acquire and invest in companies throughout the world, including franchises. The total cash
consideration paid for acquisitions, net of cash acquired, for the years ended December 31, 2013, 2012 and 2011 was
$46.3, $49.0 and $49.0, respectively. Goodwill and intangible assets resulting from the 2013 acquisitions, the majority of which
took place in the United Kingdom and Norway, were $52.2 and $10.1, respectively, as of December 31, 2013. Goodwill and
intangible assets resulting from the 2012 acquisitions were $46.2 and $7.6 as of December 31, 2012, respectively.
On April 16, 2012, we acquired Damilo Group (“Damilo”), a French firm specializing in IT design solutions, for total
consideration, net of cash acquired, of €21.2 ($28.0). Goodwill arising from this transaction was €30.8 ($40.6). The
assumed liabilities and acquired assets, net of goodwill, related intangible assets and cash arising from the transaction
were €33.8 ($44.6) and €17.9 ($23.6), respectively. The related intangible assets were €6.3 ($8.0), €5.8 ($7.6) and €5.0
($6.8) as of April 16, 2012, December 31, 2012 and December 31, 2013, respectively.
In 2011, we acquired the shares and voting rights of Proservia SA (“Proservia”), a provider of information technology and
systems engineering solutions in France. The purchase price was €14.89 ($19.93) per share. The total consideration, net of
cash acquired, was €21.6 ($29.4). Goodwill arising from this transaction was €20.7 ($27.7). The related intangible assets
were €9.4 ($12.4) and €8.1 ($11.2) as of December 31, 2012 and 2013, respectively.