ManpowerGroup 2014 Annual Report Download - page 30

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28
We recorded an income tax expense at an effective rate of 37.3% in 2014, as compared to an effective rate of 39.4% in
2013. The 2014 rate was favorably impacted by a change in the overall mix of earnings, primarily an increase in non-U.S.
income, and a deemed repatriation. The 37.3% effective tax rate was higher than the United States Federal statutory rate of
35% due primarily to the French business tax, repatriations, valuation allowances and other permanent items.
Net earnings per share — diluted was $5.30 in 2014 compared to $3.62 in 2013. Foreign currency exchange rates
unfavorably impacted net earnings per share — diluted by approximately $0.10 in 2014.
Weighted average shares — diluted increased 1.5% to 80.7 million in 2014 from 79.6 million in 2013. This increase was due
to shares issued as a result of exercises and vesting of share-based awards in 2014 and the dilutive effect of share-based
awards because of the increase in our average share price, partially offset by the impact of share repurchases completed
in 2014.
Consolidated Results — 2013 Compared to 2012
The following table presents selected consolidated financial data for 2013 as compared to 2012.
(in millions, except per share data) 2013 2012
Reported
Variance
Variance in
Constant
Currency
Variance in
Organic Constant
Currency
Revenues from services $ 20,250.5 $ 20,678.0 (2.1)% (2.1)% (2.4)%
Cost of services 16,883.8 17,236.0 (2.0) (2.0)
Gross profit 3,366.7 3,442.0 (2.2) (2.1) (2.4)
Gross profit margin 16.6% 16.6%
Selling and administrative expenses 2,854.8 3,030.3 (5.8) (5.7) (6.0)
Selling and administrative expenses as a % of revenues 14.1% 14.7%
Operating profit 511.9 411.7 24.3 24.3 23.8
Operating profit margin 2.5% 2.0%
Net interest expense 33.4 35.2 (5.0)
Other expenses 3.0 8.1 (63.0)
Earnings before income taxes 475.5 368.4 29.1 28.9
Provision for income taxes 187.5 170.8 9.8
Effective income tax rate 39.4% 46.4%
Net earnings $ 288.0 $ 197.6 45.8 46.4
Net earnings per share — diluted $ 3.62 $ 2.47 46.6 47.0
Weighted average shares — diluted 79.6 80.1 (0.7)%
The year-over-year decrease in revenues from services of 2.1% (–2.1% in constant currency and –2.4% in organic constant
currency) was attributed to:
• decreased demand for services in several of our markets within the Americas, Southern Europe and Northern Europe,
where revenues decreased 1.9% (–0.5% in constant currency), 0.2% (–3.6% in constant currency and –3.9% in organic
constant currency) and 0.6% (–1.7% in constant currency and –2.3% in organic constant currency), respectively;
• revenue declines in our larger markets of France and Italy of 5.8% (–6.0% in organic constant currency) and 0.3% in
constant currency, respectively, due to the current economic environments in those countries;
Management’s Discussion & Analysis
MANAGEMENT’S DISCUSSION & ANALYSIS
of financial condition and results of operations