ManpowerGroup 2013 Annual Report Download - page 78

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ManpowerGroup 2013 Annual Report Notes to Consolidated Financial Statements
76
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data
The amount recognized in accumulated other comprehensive income, net of tax, consists of a net loss of $1.9 and a prior
service credit of $7.0 in 2013, and a net loss of $2.7 in 2012.
In June 2013, the Board of Directors approved an amendment related to the post-65 healthcare benefits of the plan that will
be effective as of July 1, 2014. The plan change includes the introduction of a Health Reimbursement Account for Medicare
eligible retirees and dependents. The plan change was communicated to retirees in October 2013, and the plan was
re-measured as of October 1, 2013 to reflect this amendment.
The discount rate used in the measurement of the benefit obligation was 4.7% and 3.9% in 2013 and 2012, respectively.
The discount rate used in the measurement of net periodic benefit cost was 3.9% (January through September) and 4.8%
(October through December), 4.8% and 5.3% in 2013, 2012 and 2011, respectively. The components of net periodic benefit
cost for this plan were as follows:
Year Ended December 31 2013 2012 2011
Net Periodic Benefit Cost
Service cost $ — $ 0.1 $ 0.1
Interest cost 1.1 1.3 1.3
Net loss 0.3 — —
Prior service credit (0.2) — —
Net periodic benefit cost 1.2 1.4 1.4
Other Changes in Plan Assets and Benefit Obligations Recognized
in Other Comprehensive Income (Loss)
Net (gain) loss (0.9) 3.2 3.3
Prior service credit (11.2) — —
Amortization of net (loss) gain (0.3) — —
Amortization of prior service credit 0.2 — —
Total recognized in other comprehensive income (loss) (12.2) 3.2 3.3
Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (11.0)$ 4.6 $ 4.7
The estimated net loss and prior service credit for the retiree health care plan that will be amortized from accumulated other
comprehensive income into net periodic benefit cost during 2014 is $0.1 and $0.8, respectively.
The health care cost trend rate was assumed to be 7.5% for 2013, decreasing gradually to an ultimate rate of 5.0% in 2020.
Assumed health care cost trend rates have a significant effect on the amounts reported. A one-percentage point change in
the assumed health care cost trend rate would have the following effects:
1% Increase 1% Decrease
Effect on total of service and interest cost components $0.1 $(0.1)
Effect on benefit obligation 0.2 (0.2)
FUTURE CONTRIBUTIONS AND PAYMENTS
During 2014, we plan to contribute $13.3 to our pension plans and to fund our retiree health care payments as incurred.
Projected benefit payments from the plans as of December 31, 2013 were estimated as follows:
Year Pension Plans
Retiree Health
Care Plan
2014 $ 11.6 $ 1.9
2015 12.2 1.6
2016 12.6 1.6
2017 13.9 1.5
2018 14.2 1.5
2019 – 2023 83.5 6.5
Total projected benefit payments $148.0 $14.6