ManpowerGroup 2014 Annual Report Download - page 65

ManpowerGroup | Annual Report 2014 63
Notes to Consolidated Financial Statements
Our euro-denominated notes are accounted for as a hedge of our net investment in our subsidiaries with a euro-functional
currency. Since our net investment in these subsidiaries exceeds the amount of the related borrowings, all translation gains
or losses related to these borrowings are included as a component of accumulated other comprehensive (loss) income.
Shareholders’ Equity
We currently have authorization from our board of directors to repurchase 8.0 million shares of our common stock. Share
repurchases may be made from time to time through a variety of methods, including open market purchases, block
transactions, privately negotiated transactions, accelerated share repurchase programs, forward repurchase agreements
or similar facilities. We repurchased 2.0 million shares at a cost of $143.5 in 2014. No repurchases were made in 2013.
In 2012, we repurchased a total of 3.6 million shares under previous authorizations at a total cost of $138.2. As of December
2014, there were 6.0 million shares remaining authorized for repurchase under this authorization and no shares remaining
under any previous authorizations.
During 2014, 2013 and 2012, the Board of Directors declared total cash dividends of $0.98, $0.92 and $0.86 per share,
respectively, resulting in total dividend payments of $77.3, $72.0 and $67.8, respectively.
Cash and Cash Equivalents
We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash
equivalents.
Payroll Tax Credit
In January 2013, the French government passed legislation, Credit d’Impôt pour la Compétitivité et l’Emploi (“CICE”),
effective January 1, 2013, that provides payroll tax credits based on a percentage of wages paid to employees receiving
less than two-and-a-half times the French minimum wage. The payroll tax credit was equal to 4% of eligible wages in 2013
and 6% of eligible wages in 2014 and beyond. The CICE payroll tax credit is accounted for as a reduction of our cost of
services in the period earned.
The payroll tax credit is creditable against our current French income tax payable, with any remaining amount being paid
after three years. Given the amount of our current income taxes payable, we would generally receive the vast majority of
these payroll tax credits after the three-year period. In December 2013, we entered into an agreement to sell a portion of
the credits earned in 2013 for net proceeds of $104.0. We derecognized these receivables upon the sale as the terms of the
agreement are such that the transaction qualifies for sale treatment according to the accounting guidance on the transfer and
servicing of assets. The discount on the sale of this receivable was recorded as a reduction of the 2013 payroll tax credits
in cost of services.
Recently Issued Accounting Standards
In March 2013, the FASB issued new accounting guidance on cumulative translation adjustment. The new guidance
requires that currency translation adjustments should be released into net income only if the sale of a foreign subsidiary
results in the complete liquidation of the entity. For an equity method investment that is a foreign entity, a pro rata portion of
the currency translation adjustments should be released into net income upon a partial sale of such an equity method
investment. The new guidance also clarifies that the sale of an investment in a foreign entity includes both (1) events that
result in the loss of a controlling financial interest in the foreign entity and (2) events that result in an acquirer’s obtaining
control of an acquiree in which it held an equity interest immediately before the acquisition date, otherwise known as a
“step acquisition.” Accordingly, the cumulative translation adjustment should be released into net income upon the
occurrence of those events. We adopted this guidance effective January 1, 2014. There was no impact of this adoption on
our Consolidated Financial Statements.