ManpowerGroup 2014 Annual Report Download - page 62

60
Notes to Consolidated Financial Statements
We determine the fair value of our deferred compensation plan assets, comprised of publicly traded securities, by using
market quotes as of the last day of the period. The fair value of the foreign currency forward contracts is measured at the
value from either directly or indirectly observable third parties.
The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and other current assets and
liabilities approximate their fair values because of the short-term nature of these instruments. The carrying value of our
variable-rate long-term debt approximates fair value. The fair value of the euro-denominated notes, as observable at
commonly quoted intervals (Level 2 inputs), was $471.6 and $520.1 as of December 31, 2014 and 2013, respectively,
compared to a carrying value of $423.4. and $480.9, respectively.
Goodwill and Other Intangible Assets
We have goodwill, finite-lived intangible assets and indefinite-lived intangible assets as follows:
2014 2013
December 31 Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
Goodwill
(1)
$ 1,075.2 $ — $ 1,075.2 $ 1,090.9 $ — $ 1,090.9
Intangible assets:
Finite-lived:
Technology $ 19.6 $ 19.6 $ — $ 19.6 $ 19.6 $ —
Franchise agreements 18.0 18.0 — 18.0 17.9 0.1
Customer relationships 359.9 225.6 134.3 351.5 196.4 155.1
Other 14.2 13.0 1.2 16.2 14.0 2.2
411.7 276.2 135.5 405.3 247.9 157.4
Indefinite-lived:
Tradenames
(2)
54.0 — 54.0 54.0 — 54.0
Reacquired franchise rights 97.3 — 97.3 97.7 — 97.7
151.3 — 151.3 151.7 — 151.7
Total intangible assets $ 563.0 $ 276.2 $ 286.8 $ 557.0 $247.9 $ 309.1
(1) Balances were net of accumulated impairment loss of $513.4 as of both December 31, 2014 and 2013.
(2) Balances were net of accumulated impairment loss of $139.5 as of both December 31, 2014 and 2013.
Amortization expense related to intangibles was $33.4, $34.1 and $36.7 in 2014, 2013 and 2012, respectively. Amortization
expense expected in each of the next five years related to acquisitions completed as of December 31, 2014 is as follows:
2015 — $29.5, 2016 — $26.3, 2017 — $23.0, 2018 — $20.2 and 2019 — $15.9. The weighted-average useful lives of the
technology, franchise agreements, customer relationships and other are 5, 10, 14 and 3 years, respectively. The tradenames
have been assigned an indefinite life based on our expectation of renewing the tradenames, as required, without material
modifications and at a minimal cost, and our expectation of positive cash flows beyond the foreseeable future. The
reacquired franchise rights result from our franchise acquisitions in the United States and Canada completed prior to 2009.
In accordance with the accounting guidance on goodwill and other intangible assets, we perform an annual impairment test
of goodwill at our reporting unit level and indefinite-lived intangible assets at our unit of account level during the third
quarter, or more frequently if events or circumstances change that would more likely than not reduce the fair value of our
reporting units below their carrying value.
We performed our annual impairment test of our goodwill and indefinite-lived intangible assets during the third quarter
of 2014, 2013 and 2012, and there was no impairment of our goodwill or indefinite-lived intangible as a result of our
annual tests.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data