ManpowerGroup 2014 Annual Report Download - page 50

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48
The hypothetical changes in the fair value of our market sensitive instruments due to changes in interest rates, and changes
in foreign currency exchange rates for the forward contracts, are as follows:
As of December 31, 2014
Market Sensitive Instrument (in millions) 10% Decrease 10% Increase
Fixed-rate debt:
€350.0, 4.51% Notes due June 2018 $47.2
(1)
$(47.2)
(1)
Forward contracts:
£2.7 to $4.3 0.4 (0.4)
As of December 31, 2013
Market Sensitive Instrument (in millions) 10% Decrease 10% Increase
Fixed-rate debt:
€350.0, 4.51% Notes due June 2018 $52.0
(1)
$(52.0)
(1)
Forward contracts:
£7.8 to $12.5 1.3 (1.3)
(1) This change in fair value is not recorded in the Consolidated Financial Statements; however, disclosure of the fair value is included in
Note 1 to the Consolidated Financial Statements.
Impact of Economic Conditions
One of the principal attractions of using workforce solutions and service providers is to maintain a flexible supply of labor to
meet changing economic conditions. Therefore, the industry has been and remains sensitive to economic cycles. To help
minimize the effects of these economic cycles, we offer clients a continuum of services to meet their needs throughout the
business cycle. We believe that the breadth of our operations and the diversity of our service mix cushion us against the
impact of an adverse economic cycle in any single country or industry. However, adverse economic conditions in any of our
largest markets, or in several markets simultaneously, would have a material impact on our consolidated financial results.
Legal Regulations
The workforce solutions and services industry is closely regulated in all of the major markets in which we operate except
the United States and Canada. Many countries and territories impose licensing or registration requirements and substantive
restrictions on employment services, either on the provider of recruitment services or the ultimate client company, or
minimum benefits to be paid to the temporary employee either during or following the temporary assignment. Regulations
also may restrict the length of assignments, the type of work permitted or the occasions on which contingent workers may
be used. Changes in applicable laws or regulations have occurred in the past and are expected in the future to affect the
extent to which workforce solutions and services firms may operate. These changes could impose additional costs, taxes,
record keeping or reporting requirements; restrict the tasks to which contingent workers may be assigned; limit the duration
of or otherwise impose restrictions on the nature of the relationship (with us or the client); or otherwise adversely affect the
industry. All of our other service lines are currently not regulated.
In many markets, the existence or absence of collective bargaining agreements with labor organizations has a significant
impact on our operations and the ability of clients to utilize our services. In some markets, labor agreements are structured
on a national or industry-wide (rather than a company-by-company) basis. Changes in these collective bargaining
agreements have occurred in the past, are expected to occur in the future, and may have a material impact on the
operations of workforce solutions and services firms, including us.
Management’s Discussion & Analysis
MANAGEMENT’S DISCUSSION & ANALYSIS
of financial condition and results of operations