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ManpowerGroup | Annual Report 2014 47
As of December 31, 2014, we had outstanding $423.4 million in principal amount of euro-denominated notes (€350.0
million). The note has been designated as a hedge of our net investment in subsidiaries with a euro-functional currency.
Since our net investment in these subsidiaries exceeds the respective amount of the designated borrowing, translation
gains or losses related to the borrowing is included as a component of accumulated other comprehensive (loss) income.
Shareholders’ equity increased by $36.1 million, net of tax, due to changes in accumulated other comprehensive (loss)
income during the year due to the currency impact on these designated borrowings.
Interest Rates — Our exposure to market risk for changes in interest rates relates primarily to our variable rate long-term
debt obligations. We have historically managed interest rates through the use of a combination of fixed- and variable-rate
borrowings and interest rate swap agreements. As of December 31, 2014, we had the following fixed- and variable-rate
borrowings:
(in millions) Amount
Weighted-
Average
Interest Rate
(1)
Variable-rate borrowings $ 43.3 15.8%
Fixed-rate borrowings 425.8 4.5
Total debt $ 469.1 5.5%
(1) The rates are impacted by currency exchange rate movements.
Sensitivity Analysis — The following tables summarize our debt and derivative instruments that are sensitive to foreign
currency exchange rate and interest rate movements. All computations below are based on the United States dollar spot
rate as of December 31, 2014 and 2013. The exchange rate computations assume a 10% appreciation or 10% depreciation
of the euro and British pound to the United States dollar.
The hypothetical impact on 2014 and 2013 earnings and accumulated other comprehensive (loss) income of the stated
change in rates is as follows:
2014 (in millions) Movements In Exchange Rates
Market Sensitive Instrument 10% Depreciation 10% Appreciation
Euro notes:
€350.0, 4.51% Notes due June 2018 $42.3
(1)
$(42.3)
(1)
Forward contracts:
£2.7 to $4.3 0.4 (0.4)
2013 (in millions) Movements In Exchange Rates
Market Sensitive Instrument 10% Depreciation 10% Appreciation
Euro notes:
€350.0, 4.51% Notes due June 2018 $48.1
(1)
$(48.1)
(1)
Forward contracts:
£7.8 to $12.5 1.3 (1.3)
(1) Exchange rate movements are recorded through accumulated other comprehensive (loss) income as these instruments have been
designated as an economic hedge of our net investment in subsidiaries with a euro-functional currency.
Management’s Discussion & Analysis