ManpowerGroup 2014 Annual Report Download - page 60

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Notes to Consolidated Financial Statements
In our outplacement business, we recognize revenues from individual programs and for large projects over the estimated
period in which services are rendered to candidates. In our consulting business, revenues are recognized upon the
performance of the service under the consulting service contract. For performance-based contracts, we defer recognizing
revenues until the performance criteria have been met.
The amounts billed for outplacement, consulting services and performance-based contracts in excess of the amount
recognized as revenues are recorded as deferred revenue and included in accrued liabilities for the current portion and
other long-term liabilities for the long-term portion in our Consolidated Balance Sheets. As of December 31, 2014 and 2013,
the current portion of deferred revenue was $35.5 and $48.5, respectively, and the long-term portion of deferred revenue
was zero and $10.0, respectively. The decrease in these amounts is primarily related to a client contract that ended in 2014.
We record revenues from sales of services and the related direct costs in accordance with the accounting guidance on
reporting revenue gross as a principal versus net as an agent. In situations where we act as a principal in the transaction,
we report gross revenues and cost of services. When we act as an agent, we report the revenues on a net basis. Amounts
billed to clients for out-of-pocket or other cost reimbursements are included in revenues from services, and the related
costs are included in cost of services.
Allowance for Doubtful Accounts
We have an allowance for doubtful accounts recorded as an estimate of the accounts receivable balance that may not be
collected. This allowance is calculated on an entity-by-entity basis with consideration for historical write-off experience, the
current aging of receivables and a specific review for potential bad debts. Items that affect this balance mainly include bad
debt expense and the write-off of accounts receivable balances.
Bad debt expense is recorded as selling and administrative expenses in our Consolidated Statements of Operations and
was $18.9, $24.1 and $29.2 in 2014, 2013 and 2012, respectively. Factors that would cause this provision to increase
primarily relate to increased bankruptcies by our clients and other difficulties collecting amounts billed. On the other hand,
an improved write-off experience and aging of receivables would result in a decrease to the provision. Write-offs were
$15.8, $26.4 and $23.2 for 2014, 2013 and 2012, respectively.
Advertising Costs
We expense production costs of advertising as they are incurred. Advertising expenses were $25.7, $22.3 and $27.2 in
2014, 2013 and 2012, respectively.
Restructuring Costs
We recorded net restructuring costs of $89.4 and $48.8 in 2013 and 2012, respectively, in selling and administrative
expenses, primarily related to severances and office closures and consolidations in multiple countries and territories. These
expenses are net of reversals of previous accruals resulting mainly from larger-than-estimated cost savings from subleasing
and lease buyouts. During 2014, we made payments of $35.5 out of our restructuring reserve. We expect a majority of the
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data