ManpowerGroup 2013 Annual Report Download - page 70

ManpowerGroup 2013 Annual Report Notes to Consolidated Financial Statements
68
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data
Included in non-United States tax rate difference is a $5.9 benefit related to the French CICE payroll tax credit because the
CICE credit is tax-free for French tax purposes. The tax benefit related to the CICE credit in excess of the $5.9 is offset by
a related increase in United States tax expense. For United States tax purposes, certain French earnings impacted by the
CICE credit are treated as a deemed dividend resulting in an immediate United States tax expense.
Deferred income taxes are recorded on temporary differences at the tax rate expected to be in effect when the temporary
differences reverse. Temporary differences, which gave rise to the deferred taxes, were as follows:
December 31 2013 2012
Current Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance $ 17.9 $ 11.8
Employee compensation payable 26.5 20.3
Pension and postretirement benefits (4.7) (3.0)
Other 29.3 32.5
Valuation allowance (15.7) (4.9)
53.3 56.7
Noncurrent Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance 19.7 19.9
Pension and postretirement benefits 54.9 58.7
Intangible assets (122.1) (118.1)
Net operating losses 151.0 149.0
Other 70.3 82.7
Valuation allowance (111.4) (126.2)
62.4 66.0
Total future tax benefits $ 115.7 $ 122.7
Current tax asset $ 66.2 $ 60.6
Current tax liability (4.4) (3.9)
Noncurrent tax asset 68.2 84.4
Noncurrent tax liability (14.3) (18.4)
Total future tax benefits $ 115.7 $ 122.7
The current tax liability is recorded in accrued liabilities, the noncurrent tax asset is recorded in other assets and the
noncurrent tax liability is recorded in other long-term liabilities in the Consolidated Balance Sheets.
We have United States Federal and non-United States net operating loss carryforwards and United States state net
operating loss carryforwards totaling $498.9 and $358.8, respectively, as of December 31, 2013. The net operating loss
carryforwards expire as follows:
United States Federal
and Non-United States
United States —
State
2014 $ 5.8 $ 7.7
2015 14.7 4.0
2016 9.9 3.1
2017 8.9 7.7
2018 9.1 —
Thereafter 113.1 336.3
No expirations 337.4 —
Total net operating loss carryforwards $498.9 $358.8
We have recorded a deferred tax asset of $151.0 as of December 31, 2013, for the benefit of these net operating losses.
Realization of this asset is dependent on generating sufficient taxable income prior to the expiration of the loss carryforwards.
A related valuation allowance of $113.4 has been recorded as of December 31, 2013, as management believes that
realization of certain net operating loss carryforwards is unlikely.
Pretax income of non-United States operations was $298.1, $234.6 and $395.5 in 2013, 2012 and 2011, respectively. We
have not provided United States income taxes or non-United States withholding taxes on $737.6 of unremitted earnings of
non-United States subsidiaries that are considered to be permanently invested. Deferred taxes are provided on $264.3 of
unremitted earnings of non-United States subsidiaries that may be remitted to the United States. As of December 31, 2013
and 2012, we have recorded a deferred tax liability of $16.7 and $15.7, respectively, related to these non-United States
earnings that may be remitted.