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ManpowerGroup | Annual Report 2014 75
Notes to Consolidated Financial Statements
The Amended Agreement contains customary restrictive covenants pertaining to our management and operations,
including limitations on the amount of subsidiary debt that we may incur and limitations on our ability to pledge assets, as
well as financial covenants requiring, among other things, that we comply with a leverage ratio (net Debt-to-EBITDA) of not
greater than 3.5 to 1 and a fixed charge coverage ratio of not less than 1.5 to 1. The Amended Agreement also contains
customary events of default, including, among others, payment defaults, material inaccuracy of representations and
warranties, covenant defaults, bankruptcy or involuntary proceedings, certain monetary and non-monetary judgments,
change of control and customary ERISA defaults.
As defined in the Amended Agreement, we had a net Debt-to-EBITDA ratio of 0.21 to 1 (compared to the maximum
allowable ratio of 3.5 to 1) and a Fixed Charge Coverage ratio of 4.25 to 1 (compared to the minimum required ratio of
1.5 to 1) as of December 31, 2014.
Debt Maturities
The maturities of long-term debt payable within each of the four years subsequent to December 31, 2015 are as follows:
2016 — $0.4, 2017 — $0.0, 2018 — $423.4, 2019 — $0.0.
Note 08. Retirement and Deferred Compensation Plans
For all of our United States defined benefit and retiree health care plans, we adopted the Society of Actuaries’ RP-2014
mortality table with MP-2014 projection scale in determining the plans’ benefit obligations as of December 31, 2014.
Defined Benefit Plans
We sponsor several qualified and nonqualified pension plans covering permanent employees. The reconciliation of the
changes in the plans’ benefit obligations and the fair value of plan assets and the funded status of the plans are as follows:
United States Plans Non-United States Plans
Year Ended December 31 2014 2013 2014 2013
Change in Benefit Obligation
Benefit obligation, beginning of year $ 53.8 $ 61.9 $ 331.6 $ 315.2
Service cost ——8.3 8.7
Interest cost 2.4 2.2 13.4 12.6
Curtailments ———(3.4)
Transfers ——1.1 (0.3)
Actuarial loss (gain) 4.5 (5.9) 77.5 (0.6)
Plan participant contributions ——0.3 0.4
Benefits paid (4.1) (4.4) (6.9) (6.7)
Currency exchange rate changes ——(39.9) 5.7
Benefit obligation, end of year $ 56.6 $ 53.8 $ 385.4 $ 331.6