ManpowerGroup 2004 Annual Report Download - page 75

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MANPOWER INC. 2004 Annual Report73
Deferred income taxes are recorded on temporary differences at the tax rate expected to be in effect when the temporary
differences reverse. Temporary differences, which gave rise to the deferred tax assets, are as follows:
Year Ended December 31 2004 2003
Current Future Income Tax Benefits
Accrued payroll taxes and insurance $ 15.9 $ 16.9
Employee compensation payable 23.6 20.6
Pension and postretirement benefits 4.7 13.6
Other 52.6 55.5
Valuation allowance (0.3) (5.2)
96.5 101.4
Noncurrent Future Income Tax Benefits
Accrued payroll taxes and insurance 36.1 27.4
Pension and postretirement benefits 34.3 30.6
Intangible assets (a) (131.5) —
Net operating losses and other 174.2 90.5
Valuation allowance (53.0) (28.9)
60.1 119.6
Total future tax benefits $ 156.6 $ 221.0
(a) See note 2 for further information.
The noncurrent future income tax benefits have been classified as Other Assets in the consolidated balance sheets.
We have U.S. Federal and foreign net operating loss carryforwards and U.S. state net operating loss carryforwards
totaling $291.6 and $176.0, respectively as of December 31, 2004. The net operating loss carryforwards expire as follows:
Year U.S. Federal
and Foreign U.S. State
2005 $ 0.4 $ 53.3
2006 1.4 15.2
2007 0.9 10.1
2008 2.5 10.7
2009 4.3 9.2
Thereafter 79.8 77.5
No expiration 202.3 —
Total net operating loss carryforwards $ 291.6 $ 176.0
We have recorded a deferred tax asset of $108.3 as of December 31, 2004, for the benefit of these net operating
losses. Realization of this asset is dependent on generating sufficient taxable income prior to the expiration of the loss
carryforwards. A valuation allowance of $53.3 has been recorded as of December 31, 2004, as management believes
that realization of certain loss carryforwards and other deferred tax assets is unlikely. During 2004, we reversed a $16.7
valuation allowance on certain loss carryforwards that are expected to be utilized as a result of certain internal corporate
restructurings and transactions.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data