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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The provision for income taxes was as follows:

Year Ended December 31	2019			2018			2017
Current
United States
Federal	$	16.7		$	17.2		$	211.7
State		2.5			10.8			8.4
Non-United States		243.6			181.9			168.6
Total current		262.8			209.9			388.7
Deferred
United States
Federal		(22.1	)		(7.5	)		(178.2	)
State		1.1			1.0			(0.8	)
Non-United States		(22.0	)		(5.4	)		(17.8	)
Total deferred		(43.0	)		(11.9	)		(196.8	)
Total provision	$	219.8		$	198.0		$	191.9

Income Tax Reconciliation

A tax reconciliation between taxes computed at the United States federal statutory rate of 21% for 2019 and 2018 and 35% for 2017 and the consolidated effective tax rate is as follows:

Year Ended December 31	2019			2018			2017
Income tax based on statutory rate	$	143.9		$	158.5		$	258.1
Increase (decrease) resulting from:
Non-United States tax rate difference:
French business tax⁽¹⁾		54.9			59.1			46.9
French CICE⁽²⁾		—			(39.9	)		(77.1	)
Other⁽¹⁾⁽²⁾		37.3			20.0			(28.6	)
Repatriation of non-United States earnings⁽²⁾⁽³⁾		(17.8	)		2.5			69.7
State income taxes, net of federal benefit		3.1			8.2			1.1
Change in valuation allowance		20.0			0.7			(6.9	)
Work Opportunity Tax Credit		(10.4	)		(8.8	)		(10.5	)
Foreign-Derived Intangible Income deduction		(11.9	)		(12.5	)		—
United States Tax Act and French tax reform⁽³⁾		—			3.2			(73.7	)
Goodwill impairment⁽⁴⁾		11.9			—			—
Gain related to Manpower Switzerland and Greater China transactions⁽⁵⁾		(22.8	)		—			—
Other, net		11.6			7.0			12.9
Tax provision	$	219.8		$	198.0		$	191.9

(1) The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $69.5, $74.8 and $72.1 for 2019, 2018 and 2017, respectively. The amounts in the table above of $54.9, $59.1 and $46.9 for 2019, 2018 and 2017, respectively, represent the French business tax expense net of the French tax benefit using the United States federal rate of 21% for 2019 and 2018 and 35% for 2017. Included in Other Non-United States tax rate differences are a benefit of $9.3 and $10.1 for 2019 and 2018, respectively, and an expense of $0.4 for 2017 related to the difference between the United States federal rate and the French tax rate applied to the respective gross amounts of the French business tax.

(2) The French CICE was a payroll tax credit that was tax-free for French tax purposes and increased French earnings. The amounts in the table above of $39.9 and $77.1 for 2018 and 2017, respectively, represent the French tax benefits using the United States federal rate of 21% for 2018 and 35% for 2017. Included in Other Non-United States tax rate differences are a benefit of $25.5 for 2018 and an expense of $1.3 for 2017 related to the difference between the United States federal rate and French tax rate applied to the respective gross French CICE amounts. In January 2019, the French government replaced the CICE subsidy with new subsidies that are taxable.

(3) Prior to the enactment of the Tax Act on December 22, 2017, we recorded $83.3 of tax expense in 2017 related to non-United States earnings that were deemed to be not permanently invested. This amount was included in the Repatriation of non-United States earnings consistent with prior years. As a result of the Tax Act, this $83.3 was reversed as we were no longer recording United States federal income tax expense on these earnings, and this tax benefit was included in the United States Tax Act and French tax reform benefit of $73.7.

(4) Non-deductible portion of the goodwill impairment charge recorded in Germany in June 2019.

(5) Non-taxable gains on the disposition of our previously held equity interest in Manpower Switzerland in April 2019 and the deconsolidation of ManpowerGroup Greater China Limited in July 2019.

Deferred Income Taxes Temporary Differences

Temporary differences, which give rise to the deferred taxes, are as follows:

December 31	2019			2018
Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance	$	12.8		$	13.8
Employee compensation payable		27.2			17.8
Pension and postretirement benefits		62.3			46.9
Intangible assets		(108.7	)		(102.1	)
Repatriation of non-United States earnings		(8.8	)		(15.3	)
Loans denominated in foreign currencies		(16.4	)		(19.6	)
Operating lease ROU assets		(115.8	)		—
Operating lease liabilities		118.1			—
Net operating losses		89.5			100.5
Other		135.0			97.4
Valuation allowance		(87.8	)		(72.4	)
Total future tax benefits	$	107.4		$	67.0
Deferred tax asset	$	126.2		$	99.3
Deferred tax liability		(18.8	)		(32.3	)
Total future tax benefits	$	107.4		$	67.0

Summary of Net Operating Loss Carryforwards

The net operating loss carryforwards expire as follows:

	United States Federal and Non-United States		United States State
2020	$	2.1	$	0.2
2021		5.3		3.0
2022		3.8		11.1
2023		3.9		9.8
2024		5.7		57.3
Thereafter		25.2		87.8
No expirations		353.4		—
Total net operating loss carryforwards	$	399.4	$	169.2

Summary of Unrecognized Tax Benefit Activity

The following table summarizes the activity related to our unrecognized tax benefits during 2019, 2018 and 2017:

	2019			2018			2017
Gross unrecognized tax benefits, beginning of year	$	32.2		$	46.1		$	23.8
Increases in prior year tax positions		35.7			11.4			27.1
Decreases in prior year tax positions		(2.6	)		(1.8	)		(1.2	)
Increases for current year tax positions		4.7			5.9			6.6
Expiration of statute of limitations and audit settlements		(4.1	)		(29.4	)		(10.2	)
Gross unrecognized tax benefits, end of year	$	65.9		$	32.2		$	46.1
Potential interest and penalties		3.6			2.0			20.4
Balance, end of year	$	69.5		$	34.2		$	66.5