Wisconsin | 39-1672779 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | |
100 Manpower Place | ||
Milwaukee, Wisconsin | 53212 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer ¨ |
Non-accelerated filer ¨ | Smaller reporting company ¨ |
Shares Outstanding | |||
Class | at May 4, 2016 | ||
Common Stock, $.01 par value | 71,493,356 |
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 747.6 | $ | 730.5 | |||
Accounts receivable, less allowance for doubtful accounts of $102.1 and $98.1, respectively | 4,308.3 | 4,243.0 | |||||
Prepaid expenses and other assets | 128.2 | 119.0 | |||||
Total current assets | 5,184.1 | 5,092.5 | |||||
OTHER ASSETS: | |||||||
Goodwill | 1,275.6 | 1,257.4 | |||||
Intangible assets, less accumulated amortization of $277.7 and $266.6, respectively | 321.7 | 326.5 | |||||
Other assets | 612.6 | 694.0 | |||||
Total other assets | 2,209.9 | 2,277.9 | |||||
PROPERTY AND EQUIPMENT: | |||||||
Land, buildings, leasehold improvements and equipment | 611.9 | 585.4 | |||||
Less: accumulated depreciation and amortization | 457.8 | 438.3 | |||||
Net property and equipment | 154.1 | 147.1 | |||||
Total assets | $ | 7,548.1 | $ | 7,517.5 |
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 1,819.9 | $ | 1,659.2 | |||
Employee compensation payable | 172.9 | 211.4 | |||||
Accrued liabilities | 461.2 | 483.7 | |||||
Accrued payroll taxes and insurance | 542.6 | 613.8 | |||||
Value added taxes payable | 424.8 | 438.7 | |||||
Short-term borrowings and current maturities of long-term debt | 29.6 | 44.2 | |||||
Total current liabilities | 3,451.0 | 3,451.0 | |||||
OTHER LIABILITIES: | |||||||
Long-term debt | 850.0 | 810.9 | |||||
Other long-term liabilities | 572.4 | 563.1 | |||||
Total other liabilities | 1,422.4 | 1,374.0 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
ManpowerGroup shareholders' equity | |||||||
Preferred stock, $.01 par value, authorized 25,000,000 shares, none issued | — | — | |||||
Common stock, $.01 par value, authorized 125,000,000 shares, issued 114,727,890 and 114,504,928 shares, respectively | 1.2 | 1.2 | |||||
Capital in excess of par value | 3,195.9 | 3,186.7 | |||||
Retained earnings | 2,037.7 | 1,966.0 | |||||
Accumulated other comprehensive loss | (265.7 | ) | (286.0 | ) | |||
Treasury stock at cost, 43,059,996 and 41,466,590 shares, respectively | (2,364.2 | ) | (2,243.2 | ) | |||
Total ManpowerGroup shareholders’ equity | 2,604.9 | 2,624.7 | |||||
Noncontrolling interests | 69.8 | 67.8 | |||||
Total shareholders’ equity | 2,674.7 | 2,692.5 | |||||
Total liabilities and shareholders’ equity | $ | 7,548.1 | $ | 7,517.5 |
3 Months Ended | |||||||||||
March 31, | |||||||||||
2016 | 2015 | ||||||||||
Revenues from services | $ | 4,587.7 | $ | 4,542.2 | |||||||
Cost of services | 3,813.9 | 3,780.2 | |||||||||
Gross profit | 773.8 | 762.0 | |||||||||
Selling and administrative expenses | 642.1 | 639.2 | |||||||||
Operating profit | 131.7 | 122.8 | |||||||||
Interest and other expenses | 12.7 | 10.6 | |||||||||
Earnings before income taxes | 119.0 | 112.2 | |||||||||
Provision for income taxes | 47.3 | 46.5 | |||||||||
Net earnings | $ | 71.7 | $ | 65.7 | |||||||
Net earnings per share – basic | $ | 0.98 | $ | 0.83 | |||||||
Net earnings per share – diluted | $ | 0.98 | $ | 0.83 | |||||||
Weighted average shares – basic | 72.8 | 78.7 | |||||||||
Weighted average shares – diluted | 73.5 | 79.6 |
3 Months Ended | |||||||||||
March 31, | |||||||||||
2016 | 2015 | ||||||||||
Net earnings | $ | 71.7 | $ | 65.7 | |||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | 62.1 | (156.1 | ) | ||||||||
Translation adjustments on net investment hedge, net of income taxes of $(12.0) and $16.9, respectively | (21.4 | ) | 30.1 | ||||||||
Translation adjustments of long-term intercompany loans | (19.6 | ) | 4.1 | ||||||||
Unrealized (loss) gain on investments, net of income taxes of $(0.1) and $0.4, respectively | (0.3 | ) | 1.7 | ||||||||
Defined benefit pension plans and retiree health care plan, net of income taxes of $(0.3) and $0.2, respectively | (0.5 | ) | 0.6 | ||||||||
Total other comprehensive income (loss) | 20.3 | (119.6 | ) | ||||||||
Comprehensive income (loss) | $ | 92.0 | $ | (53.9 | ) |
3 Months Ended | |||||||
March 31, | |||||||
2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net earnings | $ | 71.7 | $ | 65.7 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 21.3 | 18.7 | |||||
Deferred income taxes | 14.4 | 18.2 | |||||
Provision for doubtful accounts | 4.1 | 5.3 | |||||
Share-based compensation | 7.2 | 6.7 | |||||
Excess tax benefit on exercise of share-based awards | (0.1 | ) | (0.2 | ) | |||
Changes in operating assets and liabilities, excluding the impact of acquisitions: | |||||||
Accounts receivable | 44.2 | (54.3 | ) | ||||
Other assets | 90.0 | (68.2 | ) | ||||
Other liabilities | (88.2 | ) | 30.4 | ||||
Cash provided by operating activities | 164.6 | 22.3 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures | (16.6 | ) | (9.9 | ) | |||
Acquisitions of businesses, net of cash acquired | (13.8 | ) | (10.1 | ) | |||
Proceeds from the sale of investments, property and equipment | 0.4 | 0.3 | |||||
Cash used in investing activities | (30.0 | ) | (19.7 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net change in short-term borrowings | (9.9 | ) | 3.4 | ||||
Proceeds from long-term debt | — | 0.1 | |||||
Repayments of long-term debt | (5.9 | ) | (1.2 | ) | |||
Proceeds from share-based awards and other equity transactions | 2.4 | 12.2 | |||||
Other share-based award transactions, net | (3.2 | ) | (7.6 | ) | |||
Repurchases of common stock | (117.7 | ) | (39.6 | ) | |||
Cash used in financing activities | (134.3 | ) | (32.7 | ) | |||
Effect of exchange rate changes on cash | 16.8 | (41.5 | ) | ||||
Change in cash and cash equivalents | 17.1 | (71.6 | ) | ||||
Cash and cash equivalents, beginning of year | 730.5 | 699.2 | |||||
Cash and cash equivalents, end of period | $ | 747.6 | $ | 627.6 | |||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||
Interest paid | $ | 2.5 | $ | 3.6 | |||
Income taxes paid, net | $ | 5.4 | $ | 19.0 |
3 Months Ended March 31, | ||||||||||||
2016 | 2015 | |||||||||||
Shares Granted (thousands) | Wtd.-Avg. Per Share Fair Value | Shares Granted (thousands) | Wtd.-Avg. Per Share Fair Value | |||||||||
Stock Options | 166 | $ | 19.68 | 147 | $ | 21.66 | ||||||
Deferred Stock Units | 8 | 84.29 | 8 | 68.17 | ||||||||
Restricted Stock Units | 231 | 73.02 | 178 | 74.19 | ||||||||
Performance Share Units | 130 | 70.35 | 165 | 73.61 | ||||||||
Total Shares Granted | 535 | $ | 56.04 | 498 | $ | 58.36 |
Americas(1) | Southern Europe(2) | Northern Europe | APME | Right Management | Corporate | Total | |||||||||||||||||||||
Balance, January 1, 2016 | $ | 3.5 | $ | 1.7 | $ | 8.5 | $ | 1.7 | $ | 0.8 | $ | 0.2 | $ | 16.4 | |||||||||||||
Costs paid or utilized | (0.4 | ) | (0.1 | ) | (2.1 | ) | (0.7 | ) | (0.1 | ) | (0.1 | ) | (3.5 | ) | |||||||||||||
Balance, March 31, 2016 | $ | 3.1 | $ | 1.6 | $ | 6.4 | $ | 1.0 | $ | 0.7 | $ | 0.1 | $ | 12.9 |
3 Months Ended | ||||||||||||
March 31, | ||||||||||||
2016 | 2015 | |||||||||||
Net earnings available to common shareholders | $ | 71.7 | $ | 65.7 | ||||||||
Weighted-average common shares outstanding (in millions) | ||||||||||||
Weighted-average common shares outstanding - basic | 72.8 | 78.7 | ||||||||||
Effect of dilutive securities - stock options | 0.3 | 0.5 | ||||||||||
Effect of other share-based awards | 0.4 | 0.4 | ||||||||||
Weighted-average common shares outstanding - diluted | 73.5 | 79.6 | ||||||||||
Net earnings per share - basic | $ | 0.98 | $ | 0.83 | ||||||||
Net earnings per share - diluted | $ | 0.98 | $ | 0.83 |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
Goodwill(1) | $ | 1,275.6 | $ | — | $ | 1,275.6 | $ | 1,257.4 | $ | — | $ | 1,257.4 | |||||||||||
Intangible assets: | |||||||||||||||||||||||
Finite-lived: | |||||||||||||||||||||||
Customer relationships | $ | 431.1 | $ | 266.8 | $ | 164.3 | $ | 425.6 | $ | 256.7 | $ | 168.9 | |||||||||||
Other | 17.4 | 10.9 | 6.5 | 16.9 | 9.9 | 7.0 | |||||||||||||||||
448.5 | 277.7 | 170.8 | 442.5 | 266.6 | 175.9 | ||||||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||
Tradenames(2) | 54.0 | — | 54.0 | 54.0 | — | 54.0 | |||||||||||||||||
Reacquired franchise rights | 96.9 | — | 96.9 | 96.6 | — | 96.6 | |||||||||||||||||
150.9 | — | 150.9 | 150.6 | — | 150.6 | ||||||||||||||||||
Total intangible assets | $ | 599.4 | $ | 277.7 | $ | 321.7 | $ | 593.1 | $ | 266.6 | $ | 326.5 |
Americas(1) | Southern Europe(2)(3) | Northern Europe(3) | APME | Right Management | Corporate(4) | Total | |||||||||||||||||||||
Balance, January 1, 2016 | $ | 515.7 | $ | 97.2 | $ | 441.9 | $ | 75.6 | $ | 62.1 | $ | 64.9 | $ | 1,257.4 | |||||||||||||
Goodwill acquired | — | — | — | — | — | — | — | ||||||||||||||||||||
Currency and other impacts | 2.4 | 4.5 | 8.5 | 2.8 | — | — | 18.2 | ||||||||||||||||||||
Balance, March 31, 2016 | $ | 518.1 | $ | 101.7 | $ | 450.4 | $ | 78.4 | $ | 62.1 | $ | 64.9 | $ | 1,275.6 |
March 31, | January 1, | ||||||
2016 | 2016 | ||||||
United States | $ | 532.4 | $ | 532.4 | |||
Germany | 132.3 | 127.1 | |||||
Netherlands | 103.4 | 98.7 | |||||
United Kingdom | 99.1 | 101.1 | |||||
France | 72.3 | 69.0 | |||||
Right Management | 62.1 | 62.1 | |||||
Other reporting units | 274.0 | 267.0 | |||||
Total goodwill | $ | 1,275.6 | $ | 1,257.4 |
3 Months Ended March 31, | |||||||||||||||
Defined Benefit Pension Plans | Retiree Health Care Plan | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | 1.6 | $ | 1.8 | $ | — | $ | — | |||||||
Interest cost | 3.0 | 2.7 | 0.2 | 0.2 | |||||||||||
Expected return on assets | (2.9 | ) | (2.8 | ) | — | — | |||||||||
Other | 0.3 | 1.1 | (0.2 | ) | (0.2 | ) | |||||||||
Total benefit cost | $ | 2.0 | $ | 2.8 | $ | — | $ | — |
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
Foreign currency translation | $ | (147.1 | ) | $ | (209.2 | ) | |
Translation (loss) gain on net investment hedge, net of income taxes of $(9.2) and $2.8, respectively | (11.4 | ) | 10.0 | ||||
Translation loss on long-term intercompany loans | (95.1 | ) | (75.5 | ) | |||
Unrealized gain on investments, net of income taxes of $3.7 and $3.8, respectively | 16.7 | 17.0 | |||||
Defined benefit pension plans, net of income taxes of $(22.5) and $(22.3), respectively | (33.0 | ) | (32.6 | ) | |||
Retiree health care plan, net of income taxes of $2.3 and $2.4, respectively | 4.2 | 4.3 | |||||
Accumulated other comprehensive loss | $ | (265.7 | ) | $ | (286.0 | ) |
3 Months Ended | |||||||||||
March 31, | |||||||||||
2016 | 2015 | ||||||||||
Interest expense | $ | 9.5 | $ | 8.0 | |||||||
Interest income | (0.7 | ) | (0.5 | ) | |||||||
Foreign exchange losses | 0.9 | 0.7 | |||||||||
Miscellaneous expenses, net | 3.0 | 2.4 | |||||||||
Interest and other expenses | $ | 12.7 | $ | 10.6 |
Fair Value Measurements Using | |||||||||||||||
March 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets | |||||||||||||||
Deferred compensation plan assets | $ | 85.2 | $ | 85.2 | $ | — | $ | — | |||||||
$ | 85.2 | $ | 85.2 | $ | — | $ | — | ||||||||
Liabilities | |||||||||||||||
Foreign currency forward contracts | $ | 0.3 | $ | — | $ | 0.3 | $ | — | |||||||
$ | 0.3 | $ | — | $ | 0.3 | $ | — |
Fair Value Measurements Using | |||||||||||||||
December 31, 2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets | |||||||||||||||
Deferred compensation plan assets | $ | 84.1 | $ | 84.1 | $ | — | $ | — | |||||||
Foreign currency forward contracts | 0.1 | — | 0.1 | — | |||||||||||
$ | 84.2 | $ | 84.1 | $ | 0.1 | $ | — | ||||||||
Liabilities | |||||||||||||||
Foreign currency forward contracts | $ | 0.5 | $ | — | $ | 0.5 | $ | — | |||||||
$ | 0.5 | $ | — | $ | 0.5 | $ | — |
3 Months Ended | |||||||||||
March 31, | |||||||||||
2016 | 2015 | ||||||||||
Revenues from services: | |||||||||||
Americas: | |||||||||||
United States (a) | $ | 703.1 | $ | 725.1 | |||||||
Other Americas | 342.8 | 359.3 | |||||||||
1,045.9 | 1,084.4 | ||||||||||
Southern Europe: | |||||||||||
France | 1,078.8 | 1,040.8 | |||||||||
Italy | 263.1 | 270.1 | |||||||||
Other Southern Europe | 345.8 | 331.8 | |||||||||
1,687.7 | 1,642.7 | ||||||||||
Northern Europe | 1,213.9 | 1,217.7 | |||||||||
APME | 576.2 | 533.1 | |||||||||
Right Management | 64.0 | 64.3 | |||||||||
Consolidated (b) | $ | 4,587.7 | $ | 4,542.2 | |||||||
Operating unit profit: (c) | |||||||||||
Americas: | |||||||||||
United States | $ | 22.8 | $ | 17.4 | |||||||
Other Americas | 11.6 | 12.8 | |||||||||
34.4 | 30.2 | ||||||||||
Southern Europe: | |||||||||||
France | 47.2 | 50.3 | |||||||||
Italy | 16.1 | 14.0 | |||||||||
Other Southern Europe | 8.4 | 8.0 | |||||||||
71.7 | 72.3 | ||||||||||
Northern Europe | 32.5 | 30.0 | |||||||||
APME | 19.3 | 18.8 | |||||||||
Right Management | 9.5 | 5.6 | |||||||||
167.4 | 156.9 | ||||||||||
Corporate expenses | (26.7 | ) | (26.7 | ) | |||||||
Intangible asset amortization expense | (9.0 | ) | (7.4 | ) | |||||||
Operating profit | 131.7 | 122.8 | |||||||||
Interest and other expenses | (12.7 | ) | (10.6 | ) | |||||||
Earnings before income taxes | $ | 119.0 | $ | 112.2 |
(a) | In the United States, where a majority of our franchises operate, revenues from services included fees received from the related franchise offices of $3.4 for both the three months ended March 31, 2016 and 2015. These fees are primarily based on revenues generated by the franchise offices, which were $160.8 and $168.7 for the three months ended March 31, 2016 and 2015, respectively. |
(b) | Our consolidated revenues from services include fees received from our franchise offices of $5.2 and $5.5 for the three months ended March 31, 2016 and 2015, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $227.8 and $249.9 for the three months ended March 31, 2016 and 2015, respectively. |
(c) | We evaluate segment performance based on operating unit profit (“OUP”), which is equal to segment revenues less cost of services and branch and national headquarters operating costs. This profit measure does not include goodwill and intangible asset impairment charges or amortization of intangibles related to acquisitions, interest and other income and expense amounts or income taxes. |
(in millions, except per share data) | 2016 | 2015 | Variance | Constant Currency Variance | |||||||||
Revenues from services | $ | 4,587.7 | $ | 4,542.2 | 1.0 | % | 5.2 | % | |||||
Cost of services | 3,813.9 | 3,780.2 | 0.9 | 5.2 | |||||||||
Gross profit | 773.8 | 762.0 | 1.5 | 5.2 | |||||||||
Gross profit margin | 16.9 | % | 16.8 | % | |||||||||
Selling and administrative expenses | 642.1 | 639.2 | 0.5 | 4.0 | |||||||||
Operating profit | 131.7 | 122.8 | 7.2 | 11.2 | |||||||||
Operating profit margin | 2.9 | % | 2.7 | % | |||||||||
Interest and other expenses | 12.7 | 10.6 | 19.1 | ||||||||||
Earnings before income taxes | 119.0 | 112.2 | 6.1 | 9.9 | |||||||||
Provision for income taxes | 47.3 | 46.5 | 1.8 | ||||||||||
Effective income tax rate | 39.8 | % | 41.5 | % | |||||||||
Net earnings | $ | 71.7 | $ | 65.7 | 9.2 | 13.3 | |||||||
Net earnings per share – diluted | $ | 0.98 | $ | 0.83 | 18.1 | 21.7 | |||||||
Weighted average shares – diluted | 73.5 | 79.6 | -7.7 | % |
• | increased demand for services in several of our markets within Southern Europe and Northern Europe, where in constant currency revenues increased 4.5% (2.7% as reported) and 4.1% (-0.3% as reported; -3.6% in organic constant currency), respectively. This included a constant currency revenue increase in France of 5.5% (3.7% as reported) primarily due to the staffing market, which showed some growth. We also experienced constant currency revenue growth in Germany, Spain and the Netherlands of 51.7%, 17.4% and 6.1%, respectively (48.8%, 15.1% and 4.2%, respectively, as reported; 3.8% in organic constant currency in Germany); |
• | a revenue increase in APME of 12.1% in constant currency (8.1% as reported; 6.2% in organic constant currency) primarily due to an increase in our staffing/interim revenues, an increase in our ManpowerGroup Solutions business and 5.4% constant currency increase (-1.0% as reported; 1.3% in organic constant currency) in our permanent recruitment business; |
• | increased demand for services at Right Management, where revenues increased 2.3% in constant currency (-0.6% as reported), including a 10.0% constant currency increase (7.0% as reported) in our outplacement services, which was partially offset by a 19.4% constant currency decline (-21.9% as reported) in our talent management business; and |
• | our acquisitions in the Americas, Southern Europe, Northern Europe and APME, which added approximately 3.4% revenue growth to our consolidated results; partially offset by |
• | a revenue decrease in the United States of 3.0% primarily driven by a decline in demand for our staffing/interim services mainly in the industrial market, partially offset by solid growth in our permanent recruitment business and in our MSP and RPO offerings within the ManpowerGroup Solutions business; |
• | a revenue decrease in Italy of 2.6% (-0.8% in constant currency) as a result of reduced demand for our staffing/interim services due to softer economic growth; and |
• | a 4.2% decrease due to the impact of changes in the currency exchange rates. |
• | a 20 basis point (0.20%) favorable impact due to our acquisitions in the Americas, Southern Europe, Northern Europe and APME; |
• | a 10 basis point (0.10%) favorable impact due to the 6.1% organic constant currency growth (5.0% as reported; 9.4% in constant currency) in our permanent recruitment business; and |
• | a 10 basis point (0.10%) increase due to the impact on business mix of the changes in currency exchange rates; partially offset by |
• | a 20 basis point (-0.20%) unfavorable impact from the decline in our staffing/interim margin in organic constant currency due primarily to direct cost increases, such as the increase in complementary health care costs for our staffing/interim associates in France as a result of new legislation effective January 1, 2016, as well as changes in business mix; and |
• | a 10 basis point (-0.10%) decline from our other business offerings. |
• | the additional recurring selling and administrative costs incurred as a result of the acquisitions in the Americas, Southern Europe, Northern Europe and APME; and |
• | a 0.9% increase in constant currency (-2.4% as reported) in organic salary-related costs primarily because of additional headcount to support the increased demand for our services; partially offset by |
• | a 3.5% decrease due to the impact of changes in the currency exchange rates; and |
• | a decrease in organic non-personnel related costs as a result of a focus on driving productivity and efficiency throughout our business model. |
Reported Variance | Variance in Constant Currency | Organic Constant Currency Variance | ||||||
Canada | 40.1 | % | 54.7 | % | 2.3 | % | ||
Mexico | (7.6 | ) | 11.4 | N/A | ||||
Argentina | (20.9 | ) | 31.1 | N/A | ||||
Peru | 6.7 | 20.3 | N/A | |||||
Brazil | (17.7 | ) | 12.5 | N/A | ||||
Colombia | (20.1 | ) | 5.2 | N/A |
Reported Variance | Variance in Constant Currency | Organic Constant Currency Variance | ||||||
Germany | 48.8 | % | 51.7 | % | 3.8 | % | ||
Netherlands | 4.2 | 6.1 | N/A | |||||
Belgium | 8.2 | 10.3 | N/A | |||||
United Kingdom | (11.6 | ) | (6.5 | ) | N/A | |||
Nordics | (8.3 | ) | (3.9 | ) | N/A |
3 Months Ended March 31, 2016 Compared to 2015 | ||||||||||||||||||
Reported Amount(a) | Reported Variance | Impact of Currency | Variance in Constant Currency | Impact of Acquisition (In Constant Currency) | Organic Constant Currency Variance | |||||||||||||
Revenues from services: | ||||||||||||||||||
Americas: | ||||||||||||||||||
United States | $ | 703.1 | (3.0 | )% | — | % | (3.0 | )% | 1.0 | % | (4.0 | )% | ||||||
Other Americas | 342.8 | (4.6 | ) | (23.3 | ) | 18.7 | 6.3 | 12.4 | ||||||||||
1,045.9 | (3.6 | ) | (7.8 | ) | 4.2 | 2.8 | 1.4 | |||||||||||
Southern Europe: | ||||||||||||||||||
France | 1,078.8 | 3.7 | (1.8 | ) | 5.5 | — | 5.5 | |||||||||||
Italy | 263.1 | (2.6 | ) | (1.8 | ) | (0.8 | ) | — | (0.8 | ) | ||||||||
Other Southern Europe | 345.8 | 4.2 | (1.6 | ) | 5.8 | — | 5.8 | |||||||||||
1,687.7 | 2.7 | (1.8 | ) | 4.5 | — | 4.5 | ||||||||||||
Northern Europe | 1,213.9 | (0.3 | ) | (4.4 | ) | 4.1 | 7.7 | (3.6 | ) | |||||||||
APME | 576.2 | 8.1 | (4.0 | ) | 12.1 | 5.9 | 6.2 | |||||||||||
Right Management | 64.0 | (0.6 | ) | (2.9 | ) | 2.3 | — | 2.3 | ||||||||||
Consolidated | $ | 4,587.7 | 1.0 | (4.2 | ) | 5.2 | 3.4 | 1.8 | ||||||||||
Gross Profit | $ | 773.8 | 1.5 | (3.7 | ) | 5.2 | 4.3 | 0.9 | ||||||||||
Selling and Administrative Expense | $ | 642.1 | 0.5 | (3.5 | ) | 4.0 | 4.5 | (0.5 | ) | |||||||||
Operating Profit | $ | 131.7 | 7.2 | (4.0 | ) | 11.2 | 3.1 | 8.1 |
(a) | In millions for the three months ended March 31, 2016. |
ISSUER PURCHASES OF EQUITY SECURITIES | ||||||||||||
Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plan | Maximum number of shares that may yet be purchased | |||||||||
January 1 - 31, 2016 | 570,000 | $ | 77.44 | 570,000 | 4,773,048 | |||||||
February 1 - 29, 2016 | 834,267 | (1) | $ | 74.66 | 787,148 | 3,985,900 | ||||||
March 1 - 31, 2016 | 188,433 | $ | 78.11 | 188,433 | 3,797,467 | |||||||
Total | 1,592,700 | (1) | $ | 76.11 | 1,545,581 | 3,797,467 |
(1) | Includes 47,119 shares of common stock withheld by ManpowerGroup to satisfy tax withholding obligations on shares acquired by certain officers in settlement of restricted stock. |
(a) | preparation and/or review of tax returns, including sales and use tax, excise tax, income tax, local tax, property tax, and value-added tax; |
(b) | advice and assistance with respect to transfer pricing matters, as well as communicating with various taxing authorities regarding the requirements associated with royalties and inter-company pricing, and tax audits; and |
(c) | audit services with respect to certain procedures and certifications where required. |
10.1 | Amended and Restated ManpowerGroup Inc. Corporate Senior Management Annual Incentive Pool Plan, incorporated by reference to Appendix A-1 to the Proxy Statement on Schedule 14A filed on March 24, 2016 in connection with the 2016 Annual Meeting of the Shareholders of the Company. |
10.2 | Letter Agreement between John T. McGinnis and the Company dated as of November 17, 2015, incorporated by reference to the Company's Current Report on Form 8-K dated January 28, 2016. |
10.3 | Severance Agreement between John T. McGinnis and the Company dated as of February 15, 2016, incorporated by reference to the Company's Current Report on Form 8-K dated February 15, 2016. |
10.4 | Form of 2016 Performance Share Unit Agreement under 2011 Equity Incentive Plan of ManpowerGroup Inc. |
12.1 | Statement regarding Computation of Ratio of Earnings to Fixed Charges. |
31.1 | Certification of Jonas Prising, Chief Executive Officer, pursuant to Section 13a-14(a) of the Securities Exchange Act of 1934. |
31.2 | Certification of John T. McGinnis, Executive Vice President and Chief Financial Officer, pursuant to Section 13a-14(a) of the Securities Exchange Act of 1934. |
32.1 | Statement of Jonas Prising. Chief Executive Officer, pursuant to 18 U.S.C. ss. 1350. |
32.2 | Statement of John T. McGinnis, Executive Vice President and Chief Financial Officer, pursuant to 18 U.S.C. ss. 1350. |
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements. |
ManpowerGroup Inc. | ||
(Registrant) | ||
Date: May 6, 2016 | ||
/s/ John T. McGinnis | ||
John T. McGinnis | ||
Executive Vice President and Chief Financial Officer (Signing on behalf of the Registrant and as the Principal Financial Officer and Principal Accounting Officer) |
Exhibit No. | Description | |
10.1 | Amended and Restated ManpowerGroup Inc. Corporate Senior Management Annual Incentive Pool Plan, incorporated by reference to Appendix A-1 to the Proxy Statement on Schedule 14A filed on March 24, 2016 in connection with the 2016 Annual Meeting of the Shareholders of the Company. | |
10.2 | Letter Agreement between John T. McGinnis and the Company dated as of November 17, 2015, incorporated by reference to the Company's Current Report on Form 8-K dated January 28, 2016. | |
10.3 | Severance Agreement between John T. McGinnis and the Company dated as of February 15, 2016, incorporated by reference to the Company's Current Report on Form 8-K dated February 15, 2016. | |
10.4 | Form of 2016 Performance Share Unit Agreement under 2011 Equity Incentive Plan of ManpowerGroup Inc. | |
12.1 | Statement regarding Computation of Ratio of Earnings to Fixed Charges. | |
31.1 | Certification of Jonas Prising, Chief Executive Officer, pursuant to Section 13a-14(a) of the Securities Exchange Act of 1934. | |
31.2 | Certification of John T. McGinnis, Executive Vice President and Chief Financial Officer, pursuant to Section 13a-14(a) of the Securities Exchange Act of 1934. | |
32.1 | Statement of Jonas Prising. Chief Executive Officer, pursuant to 18 U.S.C. ss. 1350. | |
32.2 | Statement of John T. McGinnis, Executive Vice President and Chief Financial Officer, pursuant to 18 U.S.C. ss. 1350. | |
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements. |
a. | If a Triggering Event occurs during the Performance Period, upon the Employee’s termination of employment by the ManpowerGroup other than for Cause or upon the Employee’s voluntary termination of employment for Good Reason during the two-year period following the Triggering Event (but not later than the end of the Performance Period), Employee shall earn and/or become vested in the number of Performance Share Units that would have been earned if Employee had remained an Employee until the last day of the Performance Period (as determined by the Committee, taking into account (i) treatment of Participants with similar grants whose employment has continued beyond the Performance Period, (ii) revised Performance Goals, if any, as agreed to between the relevant parties to the Triggering Event, and (iii) the Corporation’s achievement toward the Performance Goals at the end of the Performance Period, if measurable after the Triggering Event). |
b. | If the Employee’s employment is terminated by the ManpowerGroup other than for Cause or if the Employee voluntarily terminated his or her employment for Good Reason during a Protected Period, upon a Triggering Event, Employee shall earn and become vested in the same number of Performance Share Units that would have been earned if Employee had remained employed until the date of the Triggering Event and was terminated immediately thereafter (i.e., in the manner covered under Section 5(a) above). |
a. | “Target Grant” means the number of Performance Share Units established for Employee to earn at Target OPMP. |
b. | “OPMP” means the Corporation’s annual operating profit divided by revenue from services, both determined in accordance with GAAP as reported on the Corporation’s audited financial statements, with adjustments to be made (a) to reverse the impact of a change in accounting method during the Performance Period or (b) for |
i. | goodwill impairment; |
ii. | nonrecurring restructuring gains or charges; and |
iii. | nonrecurring accrual adjustments pertaining to periods outside of the period of measurement. |
c. | “Performance Goal” means the OPMP targets for the Performance Period as set by the Administrator. |
d. | “Performance Period” means the 36-month period beginning on January 1, _____ and ending on December 31, ________. |
e. | “Service” means the period beginning on the date the Employee’s employment with the ManpowerGroup commences and ending on the date the Employee’s employment with the ManpowerGroup terminates. |
f. | “OP Dollar Gate” means the minimum average annual operating profit dollars that can be achieved during the Performance Period. Operating profit is determined in accordance with GAAP as reported on the Corporation’s audited financial statements, with adjustments to be made (a) to reverse the impact of a change in accounting method during the Performance Period or (b) for any of the following items that exceed $10 million in any year (the $10 million threshold to be measured separately for each item category): |
i. | goodwill impairment; |
ii. | nonrecurring restructuring gains or charges; and |
iii. | nonrecurring accrual adjustments pertaining to periods outside of the period of measurement. |
g. | “Qualified Retirement” will mean termination of the Employee’s employment on or after both of the following conditions have been met (or waived by the Committee): |
i. | Employee has attained age 55 and has completed 10 years of Service; and |
ii. | The Committee has approved a succession plan, as recommended by the Corporation’s CEO, for the Employee or with respect to his position. |
h. | “Regular Retirement” will mean termination of the Employee’s employment on or after the Employee has attained age 55 and has completed 10 years of Service, but at a time when the conditions required for a Qualified Retirement have not been met nor waived. |
i. | “Termination for “Cause” will mean termination of the Employee’s employment upon: |
i. | Employee’s repeated failure to perform his duties with the ManpowerGroup in a competent, diligent and satisfactory manner as determined by the Corporation’s Chief Executive Officer in his reasonable judgment; |
ii. | Employee’s failure or refusal to follow the reasonable instructions or direction of the Corporation’s Chief Executive Officer, which failure or refusal remains uncured, if subject to cure, to the reasonable satisfaction of the Corporation’s Chief Executive Officer for five (5) business days after receiving notice thereof from the Corporation’s Chief Executive Officer, or repeated failure or refusal to follow the reasonable instructions or directions of the Corporation’s Chief Executive Officer; |
iii. | any act by Employee of fraud, material dishonesty or material disloyalty involving the ManpowerGroup; |
iv. | any violation by Employee of a ManpowerGroup policy of material import (including, but not limited to, the Code of Business Conduct and Ethics, the Statement of Policy on Securities Trading, the Foreign Corrupt Practices Act Compliance Policy and policies included in the Employee Handbook); |
v. | any act by Employee of moral turpitude which is likely to result in discredit to or loss of business, reputation or goodwill of the ManpowerGroup; |
vi. | Employee’s chronic absence from work other than by reason of a serious health condition; |
vii. | Employee’s commissions of a crime the circumstances of which substantially relate to Employee’s employment duties with the ManpowerGroup; or |
viii. | the willful engaging by Employee in conduct which is demonstrably and materially injurious to the ManpowerGroup. |
ix. | For purposes of this Agreement, no act, or failure to act, on Employee’s part will be deemed “willful” unless done, or omitted to be done, by Employee not in good faith. |
j. | “Good Reason” will mean, without the Employee’s consent, the occurrence of any one or more of the following: |
i. | any material breach of any material obligation of the ManpowerGroup for the payment or provision of compensation or other benefits to Employee; |
ii. | a material diminution in Employee’s base salary |
iii. | a material diminution in Employee’s authority, duties or responsibilities, accompanied by a material reduction in Employee’s target bonus opportunity for a given fiscal year (as compared to the prior fiscal year), except where all senior level executives have similar proportionate reductions in their target bonus percentages; |
iv. | a material diminution in Employee’s authority, duties or responsibilities which is not accompanied by a material reduction in Employee’s target bonus opportunity but which diminution occurs within two years after the occurrence of a Triggering Event; |
v. | a material reduction in Employee’s target bonus opportunity for a given fiscal year (as compared to the prior fiscal year) which is not accompanied by a material diminution in Employee’s authority, duties or responsibilities, but which reduction occurs within two years after the occurrence of a Triggering Event; or |
vi. | Employee’s being required by the Corporation to materially change the location of his principal office; provided such new location is one in excess of fifty miles from the location of Employee’s principal office before such change. |
ManpowerGroup Inc. | ||
By: | ||
Richard Buchband, SVP General Counsel and Secretary |
Employee | ||
3 Months Ended | ||||
March 31, 2016 | ||||
Earnings: | ||||
Earnings before income taxes | $ | 119.0 | ||
Fixed charges | 23.3 | |||
$ | 142.3 | |||
Fixed charges: | ||||
Interest (expensed or capitalized) | $ | 9.5 | ||
Estimated interest portion of rent expense | 13.8 | |||
$ | 23.3 | |||
Ratio of earnings to fixed charges | 6.1 |
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Earnings: | |||||||||||||||||||
Earnings before income taxes | $ | 660.7 | $ | 681.6 | $ | 475.5 | $ | 368.4 | $ | 479.9 | |||||||||
Fixed charges | 118.4 | 133.6 | 159.7 | 165.1 | 170.2 | ||||||||||||||
$ | 779.1 | $ | 815.2 | $ | 635.2 | $ | 533.5 | $ | 650.1 | ||||||||||
Fixed charges: | |||||||||||||||||||
Interest (expensed or capitalized) | $ | 38.6 | $ | 35.1 | $ | 43.2 | $ | 42.5 | $ | 43.1 | |||||||||
Estimated interest portion of rent expense | 79.8 | 98.5 | 116.5 | 122.6 | 127.1 | ||||||||||||||
$ | 118.4 | $ | 133.6 | $ | 159.7 | $ | 165.1 | $ | 170.2 | ||||||||||
Ratio of earnings to fixed charges | 6.6 | 6.1 | 4.0 | 3.2 | 3.8 |
1. | I have reviewed this quarterly report on Form 10-Q of ManpowerGroup Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Jonas Prising | |
Jonas Prising |
1. | I have reviewed this quarterly report on Form 10-Q of ManpowerGroup Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ John T. McGinnis | |
John T. McGinnis |
1. | the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and |
2. | the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Jonas Prising | |
Jonas Prising |
1. | the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and |
2. | the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ John T. McGinnis | |
John T. McGinnis |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
May. 04, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ManpowerGroup Inc. | |
Entity Central Index Key | 0000871763 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 71,493,356 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 102.1 | $ 98.1 |
OTHER ASSETS: | ||
Accumulated amortization on intangible assets | $ 277.7 | $ 266.6 |
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, issued (in shares) | 114,727,890 | 114,504,928 |
Treasury stock at cost (in shares) | 43,059,996 | 41,466,590 |
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Statement [Abstract] | ||
Revenues from services | $ 4,587.7 | $ 4,542.2 |
Cost of services | 3,813.9 | 3,780.2 |
Gross profit | 773.8 | 762.0 |
Selling and administrative expenses | 642.1 | 639.2 |
Operating profit | 131.7 | 122.8 |
Interest and other expenses | 12.7 | 10.6 |
Earnings before income taxes | 119.0 | 112.2 |
Provision for income taxes | 47.3 | 46.5 |
Net earnings | $ 71.7 | $ 65.7 |
Net earnings per share - basic (in dollars per share) | $ 0.98 | $ 0.83 |
Net earnings per share - diluted (in dollars per share) | $ 0.98 | $ 0.83 |
Weighted average shares - basic (in shares) | 72.8 | 78.7 |
Weighted average shares - diluted (in shares) | 73.5 | 79.6 |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 71.7 | $ 65.7 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 62.1 | (156.1) |
Translation adjustments on net investment hedge, net of income taxes of $(12.0) and $16.9, respectively | (21.4) | 30.1 |
Translation adjustments of long-term intercompany loans | (19.6) | 4.1 |
Unrealized (loss) gain on investments, net of income taxes of $(0.1) and $0.4, respectively | (0.3) | 1.7 |
Defined benefit pension plans and retiree health care plan, net of income taxes of $(0.3) and $0.2, respectively | (0.5) | 0.6 |
Total other comprehensive income (loss) | 20.3 | (119.6) |
Comprehensive income (loss) | $ 92.0 | $ (53.9) |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Other comprehensive income (loss): | ||
Income tax expense (benefit) on translation adjustments on net investment hedge | $ (12.0) | $ 16.9 |
Income tax expense (benefit) on unrealized gain on investments | (0.1) | 0.4 |
Income tax expense on defined benefit pension plans and retiree health care plan | $ (0.3) | $ 0.2 |
Basis of Presentation and Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies Basis of Presentation Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although we believe that the disclosures are adequate to make the information presented not misleading. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our 2015 Annual Report to Shareholders. The information furnished reflects all adjustments that, in the opinion of management, were necessary for a fair statement of the results of operations for the periods presented. Such adjustments were of a normal recurring nature, unless otherwise disclosed. Payroll Tax Credit We entered into an agreement in March 2016 to sell a portion of our French payroll tax credits earned in 2015 for net proceeds of $143.1 (€129.9). We derecognized these receivables upon the sale date 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. Subsequent Events We have evaluated events and transactions occurring after the balance sheet date through our filing date and have accrued or disclosed, if appropriate. |
Recently Issued Accounting Standards |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued new accounting guidance on revenue from contracts with customers. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As amended, the new guidance is effective for us in 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, with early adoption permitted, but not before 2017. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. In September 2015, the FASB issued new accounting guidance on business combinations. The new guidance eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. It requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The prior period impact of the adjustment should be either presented separately on the face of the income statement or disclosed in the notes. We adopted this guidance effective January 1, 2016. There was no impact of this adoption on our Consolidated Financial Statements. In January 2016, the FASB issued new accounting guidance on financial instruments. The new guidance changes the accounting for equity investments, financial liability under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance is effective for us in 2018. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. In February 2016, the FASB issued new accounting guidance on leases. The new guidance requires that a lessee recognize on the balance sheet assets and liabilities for leases with lease terms of longer than 12 months. The recognition, measurement and presentation of lease expenses and cash flows by a lessee will depend on its classification as a finance or operating lease. The guidance also includes new disclosure requirements providing information on the amounts recorded in the financial statements. The new guidance is effective for us in 2019. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. In March 2016, the FASB issued new accounting guidance on equity method investments. The new guidance eliminates the requirement to retroactively adopt the equity method of accounting when an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The new guidance is effective for us in 2017. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued new accounting guidance on employee share-based payment accounting. The new guidance is intended to simplify various aspects of the accounting for employee share-based payments, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for us in 2017. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. |
Share-Based Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans During the three months ended March 31, 2016 and 2015, we recognized share-based compensation expense of $7.2 and $6.7, respectively. The expense relates to stock options, deferred stock, restricted stock and performance share units. Consideration received from share-based awards was $2.4 and $12.2 for the three months ended March 31, 2016 and 2015, respectively. We recognize share-based compensation expense in selling and administrative expenses on a straight-line basis over the service period of each award. Our annual grant of share-based compensation generally takes place during the first quarter of each fiscal year. The number of shares underlying grants to all employees and the weighted-average fair value per share for shares granted during the first quarter of 2016 and 2015 are presented in the table below:
|
Acquisitions |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions From time to time, we acquire and invest in companies throughout the world, including franchises. The total cash consideration for acquisitions, net of cash acquired, was $13.8 and $10.1 for the three months ended March 31, 2016 and 2015, respectively. |
Restructuring Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | Restructuring Costs During the three months ended March 31, 2016, we made payments of $3.5 out of our restructuring reserve that was created in 2013 and 2015. We expect a majority of the remaining $12.9 reserve will be paid by the end of 2016. Changes in the restructuring reserve by reportable segment and Corporate are shown below.
(1) Balances related to the United States were $2.9 and $2.4 as of January 1, 2016 and March 31, 2016, respectively. (2) Balances related to France were $1.5 and $1.6 as of January 1, 2016 and March 31, 2016, respectively. Italy had no restructuring reserves recorded as of either January 1, 2016 or March 31, 2016. |
Income Taxes |
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Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax expense at an effective rate of 39.8% for the three months ended March 31, 2016, as compared to an effective rate of 41.5% for the three months ended March 31, 2015. The 2016 rate was favorably impacted by the United States Work Opportunity Tax Credit ("WOTC"), which was enacted in December of 2015 and extends through 2019. The 39.8% effective tax rate in the quarter was higher than the United States Federal statutory rate of 35%, and we currently expect an annual effective tax rate of approximately 37% to 38%, due primarily to the French business tax, expected repatriations, valuation allowances and other permanent items. As of March 31, 2016, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $39.4. We had related tax benefits of $1.0, and the net amount of $38.4 would favorably impact the effective tax rate if recognized. As of December 31, 2015, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $38.9. We had related tax benefits of $1.0 for a net amount of $37.9. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. We conduct business globally in 80 countries and territories. We are routinely audited by the tax authorities of the various tax jurisdictions in which we operate. Generally, the tax years that could be subject to examination are 2009 through 2015 for our major operations in France, Germany, Italy, Japan, the United Kingdom and the United States. As of March 31, 2016, we are subject to tax audits in Austria, Canada, Denmark, France, Germany, Italy, Portugal, Spain and the United States. We believe that the resolution of these audits will not have a material impact on earnings. |
Net Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Earnings Per Share | Net Earnings Per Share The calculations of net earnings per share – basic and net earnings per share – diluted were as follows:
There were 0.4 million and 0.7 million share-based awards excluded from the calculation of net earnings per share – diluted for the three months ended March 31, 2016 and 2015, respectively, as the exercise prices for these awards was greater than the average market price of the common shares during the period. |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We have goodwill, finite-lived intangible assets and indefinite-lived intangible assets as follows:
(1) Balances were net of accumulated impairment loss of $513.4 as of both March 31, 2016 and December 31, 2015. (2) Balances were net of accumulated impairment loss of $139.5 as of both March 31, 2016 and December 31, 2015. Total consolidated amortization expense related to intangible assets for the remainder of 2016 is expected to be $27.0 and in each of the next five years is expected to be as follows: 2017 - $33.2, 2018 - $30.4, 2019 - $26.0, 2020 - $20.9 and 2021 - $10.1. Changes in the carrying value of goodwill by reportable segment and Corporate were as follows:
(1) Balances related to the United States were $476.9 as of both January 1, 2016 and March 31, 2016. (2) Balances related to France were $69.0 and $72.3 as of January 1, 2016 and March 31, 2016, respectively. Balances related to Italy were $4.5 and $4.7 as of January 1, 2016 and March 31, 2016, respectively. (3) Balance reflects the realignment of our organizational structure in Europe as of January 1, 2016. See Note 13 to the Consolidated Financial Statements for further information. (4) The majority of the Corporate balance relates to goodwill attributable to our acquisition of Jefferson Wells ($55.5) which is now part of the United States reporting unit. For purposes of monitoring our total assets by segment, we do not allocate the Corporate balance to the respective reportable segments as this is commensurate with how we operate our business. We do, however, include these balances within the appropriate reporting units for our goodwill impairment testing. See table below for the breakout of goodwill balances by reporting unit. Goodwill balances by reporting unit were as follows:
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Retirement Plans |
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Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | Retirement Plans The components of the net periodic benefit cost for our plans were as follows:
During the three months ended March 31, 2016, contributions made to our pension plans were $1.1 and contributions made to our retiree health care plan were $0.3. During 2016, we expect to make total contributions of approximately $11.6 to our pension plans and to fund our retiree health care payments as incurred. |
Shareholders' Equity |
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Shareholders' Equity | Shareholders’ Equity The components of accumulated other comprehensive loss, net of tax, were as follows:
Noncontrolling Interests Noncontrolling interests, included in total shareholders' equity in our Consolidated Balance Sheets, represent amounts related to majority-owned subsidiaries for which we have a controlling financial interest. Net earnings, net of tax, attributable to these noncontrolling interests were $1.6 for the three months ended March 31, 2016. Dividends On May 3, 2016 and April 28, 2015, the Board of Directors declared a semi-annual cash dividend of $0.86 and $0.80 per share, respectively. The 2016 dividends will be payable on June 15, 2016 to shareholders of record on June 1, 2016. The 2015 dividends were paid on June 15, 2015 to shareholders of record on June 1, 2015. Share Repurchases In October 2015 and December 2012, the Board of Directors authorized the repurchase of 6.0 million and 8.0 million shares of our common stock, respectively. Share repurchases may be made from time to time through a variety of methods, including open market purchases, block transactions, privately negotiated transactions or similar facilities. During the first quarter of 2016, we repurchased 1.5 million shares at a cost of $117.7 under the 2015 authorization. During the first quarter of 2015, we repurchased 0.5 million shares at a cost of $39.6 under the 2012 authorization. As of March 31, 2016, there were 3.8 million shares remaining authorized for repurchase under the 2015 authorization and no shares remaining under the 2012 authorization. |
Interest and Other Expenses |
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Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and Other Expenses | Interest and Other Expenses Interest and other expenses consisted of the following:
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Derivative Financial Instruments and Fair Value Measurements |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments and Fair Value Measurements | Derivative Financial Instruments and Fair Value Measurements We are exposed to various risks relating to our ongoing business operations. Among these risks are foreign currency exchange rate risk and interest rate risk, which can be managed through the use of derivative instruments. In certain circumstances, we enter into foreign currency forward exchange contracts (“forward contracts”) to reduce the effects of fluctuating foreign currency exchange rates on our cash flows denominated in foreign currencies. Our exposure to market risk for changes in interest rates relates primarily to our long-term debt obligations. We have historically managed interest rate risk through the use of a combination of fixed and variable rate borrowings and interest rate swap agreements. In accordance with accounting guidance on derivative instruments and hedging activities, we record all of our derivative instruments as either an asset or liability measured at their fair value. A portion of the €400.0 ($451.8) notes due September 2022 and the €350.0 ($397.3) notes due June 2018 was designated as a hedge of our net investment in our foreign subsidiaries with a euro-functional currency as of March 31, 2016. For derivatives designated as a hedge of the foreign currency exposure of a net investment in a foreign operation, the gain or loss associated with foreign currency translation is recorded as a component of accumulated other comprehensive loss, net of taxes. As of March 31, 2016 and December 31, 2015, we had an unrealized loss of $7.2 and an unrealized gain of $14.1, respectively, included in accumulated other comprehensive loss, net of taxes, as the net investment hedge was deemed effective. On occasion, forward contracts are designated as a hedge of our net investment in our foreign subsidiaries. As of March 31, 2016 and December 31, 2015, we had a translation loss of $4.2 and $4.1, respectively, included in accumulated other comprehensive loss, net of taxes, as the net investment hedge was deemed effective. For our forward contracts that are not designated as hedges, any gain or loss resulting from the change in fair value is recognized in the current period earnings. These gains or losses are offset by the exposure related to receivables and payables with our foreign subsidiaries and to interest due on our euro-denominated notes, which is paid annually in June and September. For the three months ended March 31, 2016 and 2015, we recorded a loss of $0.6 and a gain of $0.2, respectively, in interest and other expenses associated with those forward contracts, which offset the loss and gain recorded for the items noted above. The fair value measurements of those items recorded in our Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 were as follows:
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 inputs from third parties. The carrying value of long-term debt approximates fair value, except for the Euro-denominated notes. The fair value of the Euro-denominated notes, as observable at commonly quoted intervals (level 2 inputs), was $911.3 and $858.2 as of March 31, 2016 and December 31, 2015, respectively, compared to a carrying value of $849.1 and $810.2, respectively. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data | Segment Data Effective January 1, 2016, we realigned our organizational structure in Europe. As a result, Other Southern Europe now includes several countries that were previously reported in Northern Europe. All previously reported results have been restated to conform to the current year presentation. We are organized and managed primarily on a geographic basis, with Right Management currently operating as a separate global business unit. Each country and business unit generally has its own distinct operations and management team, providing services under our global brands, and maintains its own financial reports. We have an executive sponsor for each global brand who is responsible for ensuring the integrity and consistency of delivery locally. We develop and implement global workforce solutions for our clients that deliver the outcomes that help them achieve their business strategy. Each operation reports directly or indirectly through a regional manager, to a member of executive management. Given this reporting structure, all of our operations have been segregated into the following reporting segments: Americas, which includes United States and Other Americas; Southern Europe, which includes France, Italy and Other Southern Europe; Northern Europe; APME; and Right Management. The Americas, Southern Europe, Northern Europe and APME segments derive a significant majority of their revenues from the placement of contingent workers. The remaining revenues within these segments are derived from other workforce solutions and services, including recruitment and assessment, training and development, and ManpowerGroup Solutions. ManpowerGroup Solutions includes Recruitment Process Outsourcing (RPO), TAPFIN - Managed Service Provider (MSP), Proservia and Talent Based Outsourcing (TBO). The Right Management segment revenues are derived from career management and workforce consulting services. Segment revenues represent sales to external clients. Due to the nature of our business, we generally do not have export sales. We provide services to a wide variety of clients, none of which individually comprise a significant portion of revenues for us as a whole.
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Basis of Presentation and Accounting Policies (Policies) |
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Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although we believe that the disclosures are adequate to make the information presented not misleading. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements included in our 2015 Annual Report to Shareholders. The information furnished reflects all adjustments that, in the opinion of management, were necessary for a fair statement of the results of operations for the periods presented. Such adjustments were of a normal recurring nature, unless otherwise disclosed. Payroll Tax Credit We entered into an agreement in March 2016 to sell a portion of our French payroll tax credits earned in 2015 for net proceeds of $143.1 (€129.9). We derecognized these receivables upon the sale date 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. Subsequent Events We have evaluated events and transactions occurring after the balance sheet date through our filing date and have accrued or disclosed, if appropriate. |
Recently Issued Accounting Standards (Policies) |
3 Months Ended |
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Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued new accounting guidance on revenue from contracts with customers. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As amended, the new guidance is effective for us in 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, with early adoption permitted, but not before 2017. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. In September 2015, the FASB issued new accounting guidance on business combinations. The new guidance eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. It requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The prior period impact of the adjustment should be either presented separately on the face of the income statement or disclosed in the notes. We adopted this guidance effective January 1, 2016. There was no impact of this adoption on our Consolidated Financial Statements. In January 2016, the FASB issued new accounting guidance on financial instruments. The new guidance changes the accounting for equity investments, financial liability under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance is effective for us in 2018. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. In February 2016, the FASB issued new accounting guidance on leases. The new guidance requires that a lessee recognize on the balance sheet assets and liabilities for leases with lease terms of longer than 12 months. The recognition, measurement and presentation of lease expenses and cash flows by a lessee will depend on its classification as a finance or operating lease. The guidance also includes new disclosure requirements providing information on the amounts recorded in the financial statements. The new guidance is effective for us in 2019. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. In March 2016, the FASB issued new accounting guidance on equity method investments. The new guidance eliminates the requirement to retroactively adopt the equity method of accounting when an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The new guidance is effective for us in 2017. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued new accounting guidance on employee share-based payment accounting. The new guidance is intended to simplify various aspects of the accounting for employee share-based payments, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for us in 2017. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. |
Share-Based Compensation Plans (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Grants and Weighted-average Fair Value Per Share | The number of shares underlying grants to all employees and the weighted-average fair value per share for shares granted during the first quarter of 2016 and 2015 are presented in the table below:
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Restructuring Costs (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in restructuring reserve by reportable segment and Corporate | Changes in the restructuring reserve by reportable segment and Corporate are shown below.
(1) Balances related to the United States were $2.9 and $2.4 as of January 1, 2016 and March 31, 2016, respectively. (2) Balances related to France were $1.5 and $1.6 as of January 1, 2016 and March 31, 2016, respectively. Italy had no restructuring reserves recorded as of either January 1, 2016 or March 31, 2016. |
Net Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculations of net earnings per share basic and diluted | The calculations of net earnings per share – basic and net earnings per share – diluted were as follows:
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill and intangible assets | We have goodwill, finite-lived intangible assets and indefinite-lived intangible assets as follows:
(1) Balances were net of accumulated impairment loss of $513.4 as of both March 31, 2016 and December 31, 2015. (2) Balances were net of accumulated impairment loss of $139.5 as of both March 31, 2016 and December 31, 2015. |
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Changes in the carrying value of goodwill by reportable segment and Corporate | Changes in the carrying value of goodwill by reportable segment and Corporate were as follows:
(1) Balances related to the United States were $476.9 as of both January 1, 2016 and March 31, 2016. (2) Balances related to France were $69.0 and $72.3 as of January 1, 2016 and March 31, 2016, respectively. Balances related to Italy were $4.5 and $4.7 as of January 1, 2016 and March 31, 2016, respectively. (3) Balance reflects the realignment of our organizational structure in Europe as of January 1, 2016. See Note 13 to the Consolidated Financial Statements for further information. (4) The majority of the Corporate balance relates to goodwill attributable to our acquisition of Jefferson Wells ($55.5) which is now part of the United States reporting unit. For purposes of monitoring our total assets by segment, we do not allocate the Corporate balance to the respective reportable segments as this is commensurate with how we operate our business. We do, however, include these balances within the appropriate reporting units for our goodwill impairment testing. See table below for the breakout of goodwill balances by reporting unit. |
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Schedule of goodwill balances by reporting unit | Goodwill balances by reporting unit were as follows:
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Retirement Plans (Tables) |
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Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | The components of the net periodic benefit cost for our plans were as follows:
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Shareholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of accumulated other comprehensive loss, net of tax | The components of accumulated other comprehensive loss, net of tax, were as follows:
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Interest and Other Expenses (Tables) |
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Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of interest and other expenses | Interest and other expenses consisted of the following:
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Derivative Financial Instruments and Fair Value Measurements (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value measurements | The fair value measurements of those items recorded in our Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 were as follows:
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Segment Data (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information |
|
Basis of Presentation and Accounting Policies - Payroll Tax Credit (Details) - 1 months ended Mar. 31, 2016 € in Millions, $ in Millions |
USD ($) |
EUR (€) |
---|---|---|
Accounting Policies [Abstract] | ||
Proceeds from Sale of Other Receivables | $ 143.1 | € 129.9 |
Share-Based Compensation Plans (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation expense | $ 7.2 | $ 6.7 |
Consideration received from share-based awards | $ 2.4 | $ 12.2 |
Acquisitions (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Business Combinations [Abstract] | ||
Total cash consideration paid for acquisitions, net of cash acquired | $ 13.8 | $ 10.1 |
Income Taxes (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016
USD ($)
country
|
Mar. 31, 2015 |
Dec. 31, 2015
USD ($)
|
|
Income Tax Disclosure [Abstract] | |||
Effective income tax rate (as percent) | 39.80% | 41.50% | |
U.S. Federal statutory rate (as percent) | 35.00% | ||
Gross unrecognized tax benefits, including interest and penalties | $ 39.4 | $ 38.9 | |
Related tax benefits | 1.0 | 1.0 | |
Net unrecognized tax benefits | $ 38.4 | $ 37.9 | |
Number of countries and territories in which the Company operates | country | 80 | ||
Minimum | |||
Income Tax [Line Items] | |||
Expected annual effective income tax rate (as percent) | 37.00% | ||
Maximum | |||
Income Tax [Line Items] | |||
Expected annual effective income tax rate (as percent) | 38.00% |
Goodwill and Other Intangible Assets - Goodwill by Reporting Unit (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 1,275.6 | $ 1,257.4 |
United States | ||
Goodwill [Line Items] | ||
Goodwill | 532.4 | 532.4 |
Germany | ||
Goodwill [Line Items] | ||
Goodwill | 132.3 | 127.1 |
Netherlands | ||
Goodwill [Line Items] | ||
Goodwill | 103.4 | 98.7 |
United Kingdom | ||
Goodwill [Line Items] | ||
Goodwill | 99.1 | 101.1 |
France | ||
Goodwill [Line Items] | ||
Goodwill | 72.3 | 69.0 |
Right Management | ||
Goodwill [Line Items] | ||
Goodwill | 62.1 | 62.1 |
Other reporting units | ||
Goodwill [Line Items] | ||
Goodwill | $ 274.0 | $ 267.0 |
Retirement Plans (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Defined Benefit Pension Plans | ||
Defined Benefit Plans, Net Periodic Benefit Cost [Abstract] | ||
Service cost | $ 1.6 | $ 1.8 |
Interest cost | 3.0 | 2.7 |
Expected return on assets | (2.9) | (2.8) |
Other | 0.3 | 1.1 |
Total benefit cost | 2.0 | 2.8 |
Contributions to pension plans | 1.1 | |
Estimated employer contribution to pension plans during current fiscal year | 11.6 | |
Retiree Health Care Plan | ||
Defined Benefit Plans, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 0.0 | 0.0 |
Interest cost | 0.2 | 0.2 |
Expected return on assets | 0.0 | 0.0 |
Other | (0.2) | (0.2) |
Total benefit cost | 0.0 | $ 0.0 |
Contributions to retiree health care plan | $ 0.3 |
Shareholders' Equity - Noncontrolling Interests (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Equity [Abstract] | |
Net earnings, net of tax, attributable to noncontrolling interests | $ 1.6 |
Shareholders' Equity - Dividends (Details) - $ / shares |
May. 03, 2016 |
Jun. 15, 2015 |
Apr. 28, 2015 |
---|---|---|---|
Equity [Abstract] | |||
Dividends paid | $ 0.80 | ||
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.80 | ||
Subsequent event | |||
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.86 |
Shareholders' Equity - Share Repurchases (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Oct. 29, 2015 |
Dec. 12, 2012 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchased during period (in shares) | 1,500,000 | 500,000 | ||
Repurchases of common stock | $ 117.7 | $ 39.6 | ||
Common Stock Repurchase 2015 Authorization | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 6,000,000 | |||
Number of shares remaining authorized for repurchase | 3,800,000 | |||
Common Stock Repurchase 2012 Authorization | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 8,000,000 | |||
Number of shares remaining authorized for repurchase | 0 |
Interest and Other Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Other Nonoperating Income (Expense) [Abstract] | ||
Interest expense | $ 9.5 | $ 8.0 |
Interest income | (0.7) | (0.5) |
Foreign exchange losses | 0.9 | 0.7 |
Miscellaneous expenses, net | 3.0 | 2.4 |
Interest and other expenses | $ 12.7 | $ 10.6 |
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