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 ¨ |
(Do not check if a smaller reporting company) | Emerging growth company ¨ |
Shares Outstanding | |||
Class | at August 2, 2017 | ||
Common Stock, $.01 par value | 66,734,410 |
June 30, | December 31, | ||||||
2017 | 2016 | ||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 573.1 | $ | 598.5 | |||
Accounts receivable, less allowance for doubtful accounts of $108.4 and $98.2, respectively | 4,927.4 | 4,413.1 | |||||
Prepaid expenses and other assets | 120.6 | 121.3 | |||||
Total current assets | 5,621.1 | 5,132.9 | |||||
OTHER ASSETS: | |||||||
Goodwill | 1,291.9 | 1,239.9 | |||||
Intangible assets, less accumulated amortization of $322.0 and $299.8, respectively | 290.3 | 294.4 | |||||
Other assets | 781.3 | 759.7 | |||||
Total other assets | 2,363.5 | 2,294.0 | |||||
PROPERTY AND EQUIPMENT: | |||||||
Land, buildings, leasehold improvements and equipment | 606.4 | 567.0 | |||||
Less: accumulated depreciation and amortization | 451.5 | 419.7 | |||||
Net property and equipment | 154.9 | 147.3 | |||||
Total assets | $ | 8,139.5 | $ | 7,574.2 |
June 30, | December 31, | ||||||
2017 | 2016 | ||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 2,172.3 | $ | 1,914.4 | |||
Employee compensation payable | 192.6 | 208.1 | |||||
Accrued liabilities | 405.6 | 398.6 | |||||
Accrued payroll taxes and insurance | 664.6 | 649.2 | |||||
Value added taxes payable | 485.8 | 448.7 | |||||
Short-term borrowings and current maturities of long-term debt | 435.8 | 39.8 | |||||
Total current liabilities | 4,356.7 | 3,658.8 | |||||
OTHER LIABILITIES: | |||||||
Long-term debt | 454.8 | 785.6 | |||||
Other long-term liabilities | 728.6 | 683.4 | |||||
Total other liabilities | 1,183.4 | 1,469.0 | |||||
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 116,137,258 and 115,115,748 shares, respectively | 1.2 | 1.2 | |||||
Capital in excess of par value | 3,278.6 | 3,227.2 | |||||
Retained earnings | 2,420.5 | 2,291.3 | |||||
Accumulated other comprehensive loss | (324.7 | ) | (426.1 | ) | |||
Treasury stock at cost, 49,435,848 and 48,146,658 shares, respectively | (2,863.6 | ) | (2,731.7 | ) | |||
Total ManpowerGroup shareholders’ equity | 2,512.0 | 2,361.9 | |||||
Noncontrolling interests | 87.4 | 84.5 | |||||
Total shareholders’ equity | 2,599.4 | 2,446.4 | |||||
Total liabilities and shareholders’ equity | $ | 8,139.5 | $ | 7,574.2 |
3 Months Ended | 6 Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues from services | $ | 5,174.8 | $ | 5,022.1 | $ | 9,932.0 | $ | 9,609.8 | |||||||
Cost of services | 4,313.1 | 4,161.4 | 8,282.5 | 7,975.3 | |||||||||||
Gross profit | 861.7 | 860.7 | 1,649.5 | 1,634.5 | |||||||||||
Selling and administrative expenses | 667.1 | 664.7 | 1,327.9 | 1,306.8 | |||||||||||
Operating profit | 194.6 | 196.0 | 321.6 | 327.7 | |||||||||||
Interest and other expenses | 10.4 | 10.3 | 25.3 | 23.0 | |||||||||||
Earnings before income taxes | 184.2 | 185.7 | 296.3 | 304.7 | |||||||||||
Provision for income taxes | 67.2 | 70.3 | 104.9 | 117.6 | |||||||||||
Net earnings | $ | 117.0 | $ | 115.4 | $ | 191.4 | $ | 187.1 | |||||||
Net earnings per share – basic | $ | 1.74 | $ | 1.61 | $ | 2.83 | $ | 2.59 | |||||||
Net earnings per share – diluted | $ | 1.72 | $ | 1.60 | $ | 2.80 | $ | 2.57 | |||||||
Weighted average shares – basic | 67.4 | 71.6 | 67.5 | 72.2 | |||||||||||
Weighted average shares – diluted | 68.0 | 72.3 | 68.3 | 72.9 |
3 Months Ended | 6 Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net earnings | $ | 117.0 | $ | 115.4 | $ | 191.4 | $ | 187.1 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments | 93.8 | (40.2 | ) | 134.1 | 21.9 | ||||||||||
Translation adjustments on net investment hedge, net of income taxes of $(18.4), $6.4, $(21.7) and $(5.6), respectively | (33.0 | ) | 11.2 | (38.7 | ) | (10.2 | ) | ||||||||
Translation adjustments of long-term intercompany loans | (1.2 | ) | (23.5 | ) | 2.3 | (43.1 | ) | ||||||||
Unrealized gain on investments, net of income taxes of $0.1, $0.2, $0.6 and $0.1, respectively | 0.6 | 0.8 | 3.0 | 0.5 | |||||||||||
Defined benefit pension plans and retiree health care plan, net of income taxes of $0.2, $0.0, $0.2 and $(0.3), respectively | 0.5 | 0.1 | 0.7 | (0.4 | ) | ||||||||||
Total other comprehensive income (loss) | 60.7 | (51.6 | ) | 101.4 | (31.3 | ) | |||||||||
Comprehensive income | $ | 177.7 | $ | 63.8 | $ | 292.8 | $ | 155.8 |
6 Months Ended | |||||||
June 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net earnings | $ | 191.4 | $ | 187.1 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 40.7 | 42.6 | |||||
Deferred income taxes | 26.1 | 29.8 | |||||
Provision for doubtful accounts | 10.0 | 9.2 | |||||
Share-based compensation | 14.8 | 14.9 | |||||
Excess tax benefit on exercise of share-based awards | — | (0.1 | ) | ||||
Changes in operating assets and liabilities, excluding the impact of acquisitions: | |||||||
Accounts receivable | (258.8 | ) | (182.8 | ) | |||
Other assets | 36.0 | 62.9 | |||||
Other liabilities | 87.8 | 98.5 | |||||
Cash provided by operating activities | 148.0 | 262.1 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures | (25.5 | ) | (30.8 | ) | |||
Acquisitions of businesses, net of cash acquired | (21.2 | ) | (41.2 | ) | |||
Proceeds from the sale of investments, property and equipment | 3.1 | 2.4 | |||||
Cash used in investing activities | (43.6 | ) | (69.6 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net change in short-term borrowings | (4.2 | ) | (15.0 | ) | |||
Repayments of long-term debt | (0.2 | ) | (6.0 | ) | |||
Payments of contingent consideration for acquisitions | (12.9 | ) | (2.9 | ) | |||
Proceeds from share-based awards and other equity transactions | 34.1 | 1.9 | |||||
Other share-based award transactions | (16.3 | ) | (3.2 | ) | |||
Repurchases of common stock | (115.8 | ) | (290.5 | ) | |||
Dividends paid | (62.2 | ) | (60.8 | ) | |||
Cash used in financing activities | (177.5 | ) | (376.5 | ) | |||
Effect of exchange rate changes on cash | 47.7 | (0.2 | ) | ||||
Change in cash and cash equivalents | (25.4 | ) | (184.2 | ) | |||
Cash and cash equivalents, beginning of year | 598.5 | 730.5 | |||||
Cash and cash equivalents, end of period | $ | 573.1 | $ | 546.3 | |||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||
Interest paid | $ | 22.7 | $ | 22.8 | |||
Income taxes paid, net | $ | 56.4 | $ | 53.5 |
Americas(1) | Southern Europe(2) | Northern Europe | APME | Right Management | Corporate | Total | |||||||||||||||||||||
Balance, January 1, 2017 | $ | 0.4 | $ | 1.3 | $ | 2.6 | $ | 0.1 | $ | 0.1 | $ | — | $ | 4.5 | |||||||||||||
Severance costs | 5.8 | — | 15.6 | 0.9 | 1.4 | 1.0 | 24.7 | ||||||||||||||||||||
Office closure costs and other | 0.5 | — | 8.2 | 0.5 | 0.6 | — | 9.8 | ||||||||||||||||||||
Costs paid or utilized | (0.5 | ) | — | (7.9 | ) | (1.0 | ) | — | (0.1 | ) | (9.5 | ) | |||||||||||||||
Balance, June 30, 2017 | $ | 6.2 | $ | 1.3 | $ | 18.5 | $ | 0.5 | $ | 2.1 | $ | 0.9 | $ | 29.5 |
3 Months Ended | 6 Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net earnings available to common shareholders | $ | 117.0 | $ | 115.4 | $ | 191.4 | $ | 187.1 | ||||||||
Weighted-average common shares outstanding (in millions) | ||||||||||||||||
Weighted-average common shares outstanding - basic | 67.4 | 71.6 | 67.5 | 72.2 | ||||||||||||
Effect of dilutive securities - stock options | 0.2 | 0.3 | 0.2 | 0.3 | ||||||||||||
Effect of other share-based awards | 0.4 | 0.4 | 0.6 | 0.4 | ||||||||||||
Weighted-average common shares outstanding - diluted | 68.0 | 72.3 | 68.3 | 72.9 | ||||||||||||
Net earnings per share - basic | $ | 1.74 | $ | 1.61 | $ | 2.83 | $ | 2.59 | ||||||||
Net earnings per share - diluted | $ | 1.72 | $ | 1.60 | $ | 2.80 | $ | 2.57 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
Goodwill(1) | $ | 1,291.9 | $ | — | $ | 1,291.9 | $ | 1,239.9 | $ | — | $ | 1,239.9 | |||||||||||
Intangible assets: | |||||||||||||||||||||||
Finite-lived: | |||||||||||||||||||||||
Customer relationships | $ | 442.6 | $ | 308.7 | $ | 133.9 | $ | 426.2 | $ | 287.2 | $ | 139.0 | |||||||||||
Other | 18.8 | 13.3 | 5.5 | 17.2 | 12.6 | 4.6 | |||||||||||||||||
461.4 | 322.0 | 139.4 | 443.4 | 299.8 | 143.6 | ||||||||||||||||||
Indefinite-lived: | |||||||||||||||||||||||
Tradenames(2) | 52.0 | — | 52.0 | 52.0 | — | 52.0 | |||||||||||||||||
Reacquired franchise rights | 98.9 | — | 98.9 | 98.8 | — | 98.8 | |||||||||||||||||
150.9 | — | 150.9 | 150.8 | — | 150.8 | ||||||||||||||||||
Total intangible assets | $ | 612.3 | $ | 322.0 | $ | 290.3 | $ | 594.2 | $ | 299.8 | $ | 294.4 |
Americas(1) | Southern Europe(2) | Northern Europe | APME | Right Management | Corporate(3) | Total | |||||||||||||||||||||
Balance, January 1, 2017 | $ | 516.4 | $ | 97.0 | $ | 421.9 | $ | 77.0 | $ | 62.1 | $ | 65.5 | $ | 1,239.9 | |||||||||||||
Goodwill acquired | — | 9.4 | 0.1 | — | — | — | 9.5 | ||||||||||||||||||||
Currency and other impacts | 1.5 | 9.6 | 27.7 | 3.7 | — | — | 42.5 | ||||||||||||||||||||
Balance, June 30, 2017 | $ | 517.9 | $ | 116.0 | $ | 449.7 | $ | 80.7 | $ | 62.1 | $ | 65.5 | $ | 1,291.9 |
June 30, | January 1, | ||||||
2017 | 2017 | ||||||
United States | $ | 532.0 | $ | 532.0 | |||
Germany | 129.0 | 121.4 | |||||
Netherlands | 120.4 | 110.9 | |||||
United Kingdom | 86.0 | 81.4 | |||||
France | 72.6 | 66.8 | |||||
Right Management | 62.1 | 62.1 | |||||
Other reporting units | 289.8 | 265.3 | |||||
Total goodwill | $ | 1,291.9 | $ | 1,239.9 |
Defined Benefit Pension Plans | |||||||||||||||
3 Months Ended | 6 Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Service cost | $ | 2.4 | $ | 1.8 | $ | 4.8 | $ | 3.4 | |||||||
Interest cost | 2.8 | 3.0 | 5.5 | 6.0 | |||||||||||
Expected return on assets | (2.6 | ) | (3.0 | ) | (5.2 | ) | (5.9 | ) | |||||||
Other | 0.7 | 0.3 | 1.3 | 0.6 | |||||||||||
Total benefit cost | $ | 3.3 | $ | 2.1 | $ | 6.4 | $ | 4.1 |
Retiree Health Care Plan | |||||||||||||||
3 Months Ended | 6 Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest cost | $ | 0.2 | $ | 0.2 | $ | 0.3 | $ | 0.4 | |||||||
Prior service credit | (0.2 | ) | (0.2 | ) | (0.3 | ) | (0.4 | ) | |||||||
Total benefit cost | $ | — | $ | — | $ | — | $ | — |
June 30, | December 31, | ||||||
2017 | 2016 | ||||||
Foreign currency translation | $ | (155.0 | ) | $ | (289.1 | ) | |
Translation (loss) gain on net investment hedge, net of income taxes of $(10.5) and $11.2, respectively | (13.9 | ) | 24.8 | ||||
Translation loss on long-term intercompany loans | (131.4 | ) | (133.7 | ) | |||
Unrealized gain on investments, net of income taxes of $4.8 and $4.2, respectively | 21.6 | 18.6 | |||||
Defined benefit pension plans, net of income taxes of $(27.5) and $(27.8), respectively | (49.5 | ) | (50.4 | ) | |||
Retiree health care plan, net of income taxes of $2.0 and $2.1, respectively | 3.5 | 3.7 | |||||
Accumulated other comprehensive loss | $ | (324.7 | ) | $ | (426.1 | ) |
3 Months Ended | 6 Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest expense | $ | 9.1 | $ | 9.2 | $ | 18.4 | $ | 18.7 | |||||||
Interest income | (1.2 | ) | (0.8 | ) | (2.2 | ) | (1.5 | ) | |||||||
Foreign exchange losses | 0.2 | 0.7 | 0.3 | 1.6 | |||||||||||
Miscellaneous expenses, net | 2.3 | 1.2 | 8.8 | 4.2 | |||||||||||
Interest and other expenses | $ | 10.4 | $ | 10.3 | $ | 25.3 | $ | 23.0 |
Fair Value Measurements Using | |||||||||||||||
June 30, 2017 | 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 | $ | 94.4 | $ | 94.4 | $ | — | $ | — | |||||||
Foreign currency forward contracts | 0.1 | — | 0.1 | — | |||||||||||
$ | 94.5 | $ | 94.4 | $ | 0.1 | $ | — | ||||||||
Liabilities | |||||||||||||||
Foreign currency forward contracts | $ | 0.1 | $ | — | $ | 0.1 | $ | — | |||||||
$ | 0.1 | $ | — | $ | 0.1 | $ | — |
Fair Value Measurements Using | |||||||||||||||
December 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 | $ | 86.8 | $ | 86.8 | $ | — | $ | — | |||||||
$ | 86.8 | $ | 86.8 | $ | — | $ | — | ||||||||
Liabilities | |||||||||||||||
Foreign currency forward contracts | $ | 0.2 | $ | — | $ | 0.2 | $ | — | |||||||
$ | 0.2 | $ | — | $ | 0.2 | $ | — |
3 Months Ended | 6 Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues from services: | |||||||||||||||
Americas: | |||||||||||||||
United States (a) | $ | 671.3 | $ | 725.3 | $ | 1,332.8 | $ | 1,428.4 | |||||||
Other Americas | 385.6 | 355.7 | 750.3 | 698.5 | |||||||||||
1,056.9 | 1,081.0 | 2,083.1 | 2,126.9 | ||||||||||||
Southern Europe: | |||||||||||||||
France | 1,356.3 | 1,252.2 | 2,493.8 | 2,331.0 | |||||||||||
Italy | 366.5 | 299.8 | 660.9 | 562.9 | |||||||||||
Other Southern Europe | 412.9 | 379.4 | 784.9 | 725.2 | |||||||||||
2,135.7 | 1,931.4 | 3,939.6 | 3,619.1 | ||||||||||||
Northern Europe | 1,281.7 | 1,322.3 | 2,520.4 | 2,536.2 | |||||||||||
APME | 643.4 | 614.6 | 1,275.8 | 1,190.8 | |||||||||||
Right Management | 57.1 | 72.8 | 113.1 | 136.8 | |||||||||||
Consolidated (b) | $ | 5,174.8 | $ | 5,022.1 | $ | 9,932.0 | $ | 9,609.8 | |||||||
Operating unit profit: (c) | |||||||||||||||
Americas: | |||||||||||||||
United States | $ | 44.6 | $ | 40.0 | $ | 71.0 | $ | 62.8 | |||||||
Other Americas | 13.0 | 13.8 | 25.4 | 25.4 | |||||||||||
57.6 | 53.8 | 96.4 | 88.2 | ||||||||||||
Southern Europe: | |||||||||||||||
France | 70.2 | 67.5 | 120.3 | 114.7 | |||||||||||
Italy | 27.6 | 22.8 | 45.8 | 38.9 | |||||||||||
Other Southern Europe | 12.5 | 12.0 | 25.2 | 20.4 | |||||||||||
110.3 | 102.3 | 191.3 | 174.0 | ||||||||||||
Northern Europe | 32.9 | 37.8 | 44.2 | 70.3 | |||||||||||
APME | 23.3 | 22.2 | 43.4 | 41.5 | |||||||||||
Right Management | 8.5 | 14.5 | 17.3 | 24.0 | |||||||||||
232.6 | 230.6 | 392.6 | 398.0 | ||||||||||||
Corporate expenses | (29.6 | ) | (25.6 | ) | (54.2 | ) | (52.3 | ) | |||||||
Intangible asset amortization expense | (8.4 | ) | (9.0 | ) | (16.8 | ) | (18.0 | ) | |||||||
Operating profit | 194.6 | 196.0 | 321.6 | 327.7 | |||||||||||
Interest and other expenses | (10.4 | ) | (10.3 | ) | (25.3 | ) | (23.0 | ) | |||||||
Earnings before income taxes | $ | 184.2 | $ | 185.7 | $ | 296.3 | $ | 304.7 |
(a) | In the United States, where a majority of our franchises operate, revenues from services included fees received from the related franchise offices of $3.6 for both the three months ended June 30, 2017 and 2016, and $7.1 and $7.0 for the six months ended June 30, 2017 and 2016, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $155.6 and $170.9 for the three months ended June 30, 2017 and 2016, respectively, and $323.3 and $331.7 for the six months ended June 30, 2017 and 2016, respectively. |
(b) | Our consolidated revenues from services include fees received from our franchise offices of $5.8 and $5.7 for the three months ended June 30, 2017 and 2016, respectively, and $11.1 and $10.9 for the six months ended June 30, 2017 and 2016, respectively. These fees are primarily based on revenues generated by the franchise offices, which were $247.3 and $261.2 for the three months ended June 30, 2017 and 2016, respectively, and $486.4 and $489.0 for the six months ended June 30, 2017 and 2016, 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) | 2017 | 2016 | Variance | Constant Currency Variance | |||||||||
Revenues from services | $ | 5,174.8 | $ | 5,022.1 | 3.0 | % | 5.6 | % | |||||
Cost of services | 4,313.1 | 4,161.4 | 3.6 | 6.3 | |||||||||
Gross profit | 861.7 | 860.7 | 0.1 | 2.5 | |||||||||
Gross profit margin | 16.7 | % | 17.1 | % | |||||||||
Selling and administrative expenses | 667.1 | 664.7 | 0.3 | 2.8 | |||||||||
Operating profit | 194.6 | 196.0 | (0.7 | ) | 1.4 | ||||||||
Operating profit margin | 3.8 | % | 3.9 | % | |||||||||
Interest and other expenses | 10.4 | 10.3 | 1.6 | ||||||||||
Earnings before income taxes | 184.2 | 185.7 | (0.8 | ) | 1.2 | ||||||||
Provision for income taxes | 67.2 | 70.3 | (4.4 | ) | |||||||||
Effective income tax rate | 36.5 | % | 37.8 | % | |||||||||
Net earnings | $ | 117.0 | $ | 115.4 | 1.4 | 3.4 | |||||||
Net earnings per share – diluted | $ | 1.72 | $ | 1.60 | 7.5 | 9.4 | |||||||
Weighted average shares – diluted | 68.0 | 72.3 | (5.8 | )% |
• | increased demand for services in several of our markets within Southern Europe and Northern Europe, where in constant currency revenues increased 12.9% (10.6% as reported) and 2.3% (-3.1% as reported; 0.9% in organic constant currency), respectively. This included a constant currency revenue increase in France of 11.0% (8.3% as reported) primarily due to solid growth in the staffing market and Proservia business, and a constant currency revenue increase in Italy of 25.2% (22.2% as reported) due to increased demand for our Manpower staffing services and a 21.9% increase (25.0% in constant currency) in the permanent recruitment business. We also experienced constant currency revenue growth in Germany, the Netherlands, the Nordics, Spain and Belgium of 10.1%, 18.4%, 6.7%, 9.1% and 2.9%, respectively (7.5%, 15.5%, 1.6%, 6.6% and 0.4%, respectively, as reported; 9.9%, 4.6% and 0.8% in organic constant currency in the Netherlands, the Nordics and Spain, respectively); |
• | revenue increase in APME of 5.2% in constant currency (4.7% as reported) primarily due to an increase in our staffing/interim revenues, a 4.8% constant currency increase (4.0% as reported) in our permanent recruitment business, and an increase in our ManpowerGroup Solutions business: and |
• | our acquisitions in Southern Europe and Northern Europe, which added approximately 0.6% revenue growth to our consolidated results; partially offset by |
• | a revenue decrease in the United States of 7.4% primarily driven by a decline in demand for our Manpower staffing services, mainly due to the prolonged weakness in the manufacturing sector of the economy, a decrease in our Experis interim services, specifically within the IT sector due to decreased demand at several large clients, and a decrease in our ManpowerGroup Solutions business due to a specific client loss and roll off of certain project work; |
• | decreased demand for services at Right Management, where revenues decreased 19.8% in constant currency (-21.6% as reported), including a 17.9% constant currency decrease (-20.0% as reported) in our outplacement services as well as a 25.6% constant currency decline (-26.7% as reported) in our talent management business; |
• | a 2.6% decrease due to the impact of changes in currency exchange rates; and |
• | the unfavorable impact of approximately 2.0% due to one fewer billing day in the quarter. |
• | a 30 basis point (-0.30%) unfavorable impact from the decline in our Manpower staffing margin in organic constant currency due primarily to changes in business mix, particularly in France, Italy and the United Kingdom; and |
• | a 20 basis point (-0.20%) unfavorable impact from decreased demand in both our outplacement and talent management businesses at Right Management, and decreased margins in our Proservia business, primarily in France; partially offset by |
• | a 10 basis point (0.10%) increase due to the impact on business mix of the changes in currency exchange rates. |
• | restructuring costs of $10.5 million; |
• | a 13.6% increase in constant currency (11.1% as reported; 11.7% in organic constant currency) in consulting costs primarily related to certain technology projects and back-office and delivery-model optimization activities; and |
• | the additional recurring selling and administrative costs of $5.8 million incurred as a result of the acquisitions in Southern Europe and Northern Europe; partially offset by |
• | a 2.5% decrease due to the impact of changes in the currency exchange rates. |
(in millions, except per share data) | 2017 | 2016 | Variance | Constant Currency Variance | |||||||||
Revenues from services | $ | 9,932.0 | $ | 9,609.8 | 3.4 | % | 6.1 | % | |||||
Cost of services | 8,282.5 | 7,975.3 | 3.9 | 6.7 | |||||||||
Gross profit | 1,649.5 | 1,634.5 | 0.9 | 3.5 | |||||||||
Gross profit margin | 16.6 | % | 17.0 | % | |||||||||
Selling and administrative expenses | 1,327.9 | 1,306.8 | 1.6 | 4.2 | |||||||||
Operating profit | 321.6 | 327.7 | (1.9 | ) | 0.4 | ||||||||
Operating profit margin | 3.2 | % | 3.4 | % | |||||||||
Interest and other expenses | 25.3 | 23.0 | 10.2 | ||||||||||
Earnings before income taxes | 296.3 | 304.7 | (2.8 | ) | (0.5 | ) | |||||||
Provision for income taxes | 104.9 | 117.6 | (10.8 | ) | |||||||||
Effective income tax rate | 35.4 | % | 38.6 | % | |||||||||
Net earnings | $ | 191.4 | $ | 187.1 | 2.3 | 4.6 | |||||||
Net earnings per share – diluted | $ | 2.80 | $ | 2.57 | 8.9 | 11.3 | |||||||
Weighted average shares – diluted | 68.3 | 72.9 | (6.4 | )% |
• | increased demand for services in several of our markets within Southern Europe and Northern Europe, where in constant currency revenues increased 11.8% (8.9% as reported) and 5.4% (-0.6% as reported; 3.9% in organic constant currency), respectively. This included a constant currency revenue increase in France of 10.2% (7.0% as reported) primarily due to the strong growth in our large client accounts within the staffing market and growth in our Proservia business and a constant currency revenue increase in Italy of 20.9% (17.4% as reported) due to increased demand for our Manpower staffing services and a 20.5% increase (24.1% in constant currency) in the permanent recruitment business. We also experienced constant currency revenue growth in Germany, the Netherlands, the Nordics, Spain and Belgium of 13.2%, 25.9%, 9.3%, 7.8% and 7.7%, respectively (9.9%, 22.2%, 5.4%, 4.7% and 4.5%, respectively, as reported; 16.3%, 6.9% and 2.4% in organic constant currency in the Netherlands, the Nordics and Spain, respectively); |
• | revenue increase in APME of 6.5% in constant currency (7.1% as reported) primarily due to an increase in our staffing/interim revenues, an increase in our ManpowerGroup Solutions business and 7.6% constant currency increase (8.2% as reported) in our permanent recruitment business; and |
• | our acquisitions in Southern Europe and Northern Europe, which added approximately 0.5% revenue growth to our consolidated results; partially offset by |
• | a revenue decrease in the United States of 6.7% primarily driven by a decline in demand for our Manpower staffing services, mainly due to the prolonged weakness in the manufacturing sector of the economy, a decrease in our Experis interim services, specifically within the IT sector due to decreased demand at several large clients, and a decrease in our ManpowerGroup Solutions business due to a specific client loss and roll off of certain project work; |
• | decreased demand for services at Right Management, where revenues decreased 15.4% in constant currency (-17.3% as reported), including a 14.0% constant currency decrease (-16.0% as reported) in our outplacement services as well as a 20.8% constant currency decline (-22.1% as reported) in our talent management business; and |
• | a 2.7% decrease due to the impact of changes in currency exchange rates. |
• | a 20 basis point (-0.20%) unfavorable impact from the decline in our Manpower staffing margin in organic constant currency due primarily to changes in business mix, particularly in France, Italy and the United Kingdom; and |
• | a 20 basis point (-0.20%) unfavorable impact from decreased demand in both our outplacement and talent management businesses at Right Management, and decreased margins in our Proservia business, primarily in France. |
• | restructuring costs of $34.5 million incurred in the first half of 2017, comprised of $6.3 million in the Americas, $23.8 million in Northern Europe, $1.4 million in APME, $2.0 million in Right Management and $1.0 million in corporate expenses; |
• | a 10.8% increase in constant currency (8.1% as reported; 9.0% in organic constant currency) in consulting costs primarily related to certain technology projects and back-office and delivery-model optimization activities; |
• | a 0.4% increase in constant currency (-2.0% as reported) in organic salary-related costs primarily because of additional headcount to support the increased demand for our services specifically in Southern Europe, Northern Europe and APME; and |
• | the additional recurring selling and administrative costs of $10.4 million incurred as a result of the acquisitions in Southern Europe and Northern Europe; partially offset by |
• | a 2.6% decrease due to the impact of changes in the currency exchange rates. |
3 Months Ended June 30, 2017 Compared to 2016 | ||||||||||||||||||
Reported Amount(a) | Reported Variance | Impact of Currency | Constant Currency Variance | Impact of Acquisitions (In Constant Currency) | Organic Constant Currency Variance | |||||||||||||
Revenues from services: | ||||||||||||||||||
Americas: | ||||||||||||||||||
United States | $ | 671.3 | (7.4 | )% | — | % | (7.4 | )% | — | % | (7.4 | )% | ||||||
Other Americas | 385.6 | 8.3 | (2.3 | ) | 10.6 | — | 10.6 | |||||||||||
1,056.9 | (2.2 | ) | (0.7 | ) | (1.5 | ) | — | (1.5 | ) | |||||||||
Southern Europe: | ||||||||||||||||||
France | 1,356.3 | 8.3 | (2.7 | ) | 11.0 | — | 11.0 | |||||||||||
Italy | 366.5 | 22.2 | (3.0 | ) | 25.2 | — | 25.2 | |||||||||||
Other Southern Europe | 412.9 | 8.8 | (0.9 | ) | 9.7 | 3.1 | 6.6 | |||||||||||
2,135.7 | 10.6 | (2.3 | ) | 12.9 | 0.6 | 12.3 | ||||||||||||
Northern Europe | 1,281.7 | (3.1 | ) | (5.4 | ) | 2.3 | 1.4 | 0.9 | ||||||||||
APME | 643.4 | 4.7 | (0.5 | ) | 5.2 | — | 5.2 | |||||||||||
Right Management | 57.1 | (21.6 | ) | (1.8 | ) | (19.8 | ) | — | (19.8 | ) | ||||||||
Consolidated | $ | 5,174.8 | 3.0 | (2.6 | ) | 5.6 | 0.6 | 5.0 | ||||||||||
Gross Profit | $ | 861.7 | 0.1 | (2.4 | ) | 2.5 | 0.6 | 1.9 | ||||||||||
Selling and Administrative Expense | $ | 667.1 | 0.3 | (2.5 | ) | 2.8 | 0.9 | 1.9 | ||||||||||
Operating Profit | $ | 194.6 | (0.7 | ) | (2.1 | ) | 1.4 | (0.4 | ) | 1.8 |
(a) | In millions for the three months ended June 30, 2017. |
6 Months Ended June 30, 2017 Compared to 2016 | ||||||||||||||||||
Reported Amount(a) | Reported Variance | Impact of Currency | Constant Currency Variance | Impact of Acquisitions (In Constant Currency) | Organic Constant Currency Variance | |||||||||||||
Revenues from services: | ||||||||||||||||||
Americas: | ||||||||||||||||||
United States | $ | 1,332.8 | (6.7 | )% | — | % | (6.7 | )% | — | % | (6.7 | )% | ||||||
Other Americas | 750.3 | 7.4 | (2.2 | ) | 9.6 | — | 9.6 | |||||||||||
2,083.1 | (2.1 | ) | (0.8 | ) | (1.3 | ) | — | (1.3 | ) | |||||||||
Southern Europe: | ||||||||||||||||||
France | 2,493.8 | 7.0 | (3.2 | ) | 10.2 | — | 10.2 | |||||||||||
Italy | 660.9 | 17.4 | (3.5 | ) | 20.9 | — | 20.9 | |||||||||||
Other Southern Europe | 784.9 | 8.2 | (1.5 | ) | 9.7 | 2.0 | 7.7 | |||||||||||
3,939.6 | 8.9 | (2.9 | ) | 11.8 | 0.4 | 11.4 | ||||||||||||
Northern Europe | 2,520.4 | (0.6 | ) | (6.0 | ) | 5.4 | 1.5 | 3.9 | ||||||||||
APME | 1,275.8 | 7.1 | 0.6 | 6.5 | — | 6.5 | ||||||||||||
Right Management | 113.1 | (17.3 | ) | (1.9 | ) | (15.4 | ) | — | (15.4 | ) | ||||||||
Consolidated | $ | 9,932.0 | 3.4 | (2.7 | ) | 6.1 | 0.5 | 5.6 | ||||||||||
Gross Profit | $ | 1,649.5 | 0.9 | (2.6 | ) | 3.5 | 0.6 | 2.9 | ||||||||||
Selling and Administrative Expenses | $ | 1,327.9 | 1.6 | (2.6 | ) | 4.2 | 0.8 | 3.4 | ||||||||||
Operating Profit | $ | 321.6 | (1.9 | ) | (2.3 | ) | 0.4 | (0.6 | ) | 1.0 |
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 | |||||||||
April 1 - 30, 2017 | 180,325 | $ | 99.75 | 180,325 | 3,994,496 | |||||||
May 1 - 31, 2017 | 6,471 | (1) | $ | — | — | 3,994,496 | ||||||
June 1 - 30, 2017 | 386,126 | $ | 105.66 | 386,126 | 3,608,370 | |||||||
Total | 572,922 | $ | 103.78 | 566,451 | 3,608,370 |
(1) | 6,471 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. |
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 June 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements. |
ManpowerGroup Inc. | ||
(Registrant) | ||
Date: August 4, 2017 | ||
/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 | |
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 June 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements. |
6 Months Ended | ||||
June 30, 2017 | ||||
Earnings: | ||||
Earnings before income taxes | $ | 296.3 | ||
Fixed charges | 47.7 | |||
$ | 344.0 | |||
Fixed charges: | ||||
Interest (expensed or capitalized) | $ | 18.4 | ||
Estimated interest portion of rent expense | 29.3 | |||
$ | 47.7 | |||
Ratio of earnings to fixed charges | 7.2 |
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Earnings: | |||||||||||||||||||
Earnings before income taxes | $ | 701.3 | $ | 660.7 | $ | 681.6 | $ | 475.5 | $ | 368.4 | |||||||||
Fixed charges | 93.0 | 118.4 | 133.6 | 159.7 | 165.1 | ||||||||||||||
$ | 794.3 | $ | 779.1 | $ | 815.2 | $ | 635.2 | $ | 533.5 | ||||||||||
Fixed charges: | |||||||||||||||||||
Interest (expensed or capitalized) | $ | 38.1 | $ | 38.6 | $ | 35.1 | $ | 43.2 | $ | 42.5 | |||||||||
Estimated interest portion of rent expense | 54.9 | 79.8 | 98.5 | 116.5 | 122.6 | ||||||||||||||
$ | 93.0 | $ | 118.4 | $ | 133.6 | $ | 159.7 | $ | 165.1 | ||||||||||
Ratio of earnings to fixed charges | 8.5 | 6.6 | 6.1 | 4.0 | 3.2 |
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 June 30, 2017 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 June 30, 2017 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 |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Aug. 02, 2017 |
|
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 | 66,734,410 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
CURRENT ASSETS: | ||
Allowance for doubtful accounts | $ 108.4 | $ 98.2 |
OTHER ASSETS: | ||
Accumulated amortization on intangible assets | $ 322.0 | $ 299.8 |
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) | 116,137,258 | 115,115,748 |
Treasury stock at cost (in shares) | 49,435,848 | 48,146,658 |
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Statement [Abstract] | ||||
Revenues from services | $ 5,174.8 | $ 5,022.1 | $ 9,932.0 | $ 9,609.8 |
Cost of services | 4,313.1 | 4,161.4 | 8,282.5 | 7,975.3 |
Gross profit | 861.7 | 860.7 | 1,649.5 | 1,634.5 |
Selling and administrative expenses | 667.1 | 664.7 | 1,327.9 | 1,306.8 |
Operating profit | 194.6 | 196.0 | 321.6 | 327.7 |
Interest and other expenses | 10.4 | 10.3 | 25.3 | 23.0 |
Earnings before income taxes | 184.2 | 185.7 | 296.3 | 304.7 |
Provision for income taxes | 67.2 | 70.3 | 104.9 | 117.6 |
Net earnings | $ 117.0 | $ 115.4 | $ 191.4 | $ 187.1 |
Net earnings per share - basic (in dollars per share) | $ 1.74 | $ 1.61 | $ 2.83 | $ 2.59 |
Net earnings per share - diluted (in dollars per share) | $ 1.72 | $ 1.60 | $ 2.80 | $ 2.57 |
Weighted average shares - basic (in shares) | 67.4 | 71.6 | 67.5 | 72.2 |
Weighted average shares - diluted (in shares) | 68.0 | 72.3 | 68.3 | 72.9 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 117.0 | $ 115.4 | $ 191.4 | $ 187.1 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 93.8 | (40.2) | 134.1 | 21.9 |
Translation adjustments on net investment hedge, net of income taxes of $(18.4), $6.4, $(21.7) and $(5.6), respectively | (33.0) | 11.2 | (38.7) | (10.2) |
Translation adjustments of long-term intercompany loans | (1.2) | (23.5) | 2.3 | (43.1) |
Unrealized gain on investments, net of income taxes of $0.1, $0.2, $0.6 and $0.1, respectively | 0.6 | 0.8 | 3.0 | 0.5 |
Defined benefit pension plans and retiree health care plan, net of income taxes of $0.2, $0.0, $0.2 and $(0.3), respectively | 0.5 | 0.1 | 0.7 | (0.4) |
Total other comprehensive income (loss) | 60.7 | (51.6) | 101.4 | (31.3) |
Comprehensive income | $ 177.7 | $ 63.8 | $ 292.8 | $ 155.8 |
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Other comprehensive income (loss): | ||||
Income tax expense (benefit) on translation adjustments on net investment hedge | $ (18.4) | $ 6.4 | $ (21.7) | $ (5.6) |
Income tax expense (benefit) on unrealized gain on investments | 0.1 | 0.2 | 0.6 | 0.1 |
Income tax expense (benefit) on defined benefit pension plans and retiree health care plan | $ 0.2 | $ 0.0 | $ 0.2 | $ (0.3) |
Basis of Presentation and Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
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 2016 Annual Report to Shareholders. The information furnished reflects all adjustments that, in the opinion of management, were necessary for a fair statement of the Consolidated Financial Statements for the periods presented. Such adjustments were of a normal recurring nature, unless otherwise disclosed. Payroll Tax Credit In March 2017 and March 2016, we entered into an agreement to sell a portion of our French payroll tax credits earned in 2016 and 2015, respectively, for net proceeds of $143.5 (€133.0) and $143.1 (€129.9), respectively. 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. The discount on the sale of these receivables was recorded in cost of services as a reduction of the payroll tax credits earned in the respective year. 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 |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers. The core principle of this amendment 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 ("modified retrospective approach"). We are currently working through an adoption plan and completed a preliminary analysis of how we currently recognize revenue compared to the accounting treatment required under the new guidance. We will complete our adoption plan in the second half of 2017. This plan includes a review of client contracts and revenue transactions to determine the impact of the accounting treatment under the new guidance, evaluation of the adoption method, and completing a rollout plan for the new guidance. Additionally, we are in the process of assessing the impact of the new standard on our disclosures and internal controls. Based on our preliminary analysis, we currently do not believe the adoption of this guidance will have a material impact on our Consolidated Financial Statements. We will continue to evaluate the impact of this guidance on our Consolidated Financial Statements, disclosures, and internal controls. Our preliminary assessments are subject to change. We plan to adopt the new guidance beginning January 1, 2018 and presently expect to use the modified retrospective approach. In January 2016, the FASB issued new accounting guidance on financial instruments. The new guidance requires equity investments (except those accounted for under the equity method of accounting or to those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This new guidance impacts the accounting for our Swiss franchise's investment portfolio. Upon adoption in January 2018, we will recognize the cumulative unrealized gains or losses in our retained earnings, and subsequently, we will recognize all the fair value adjustments on the investment portfolio in the current period earnings, as opposed to other comprehensive loss. As of June 30, 2017 and December 31, 2016, we had an unrecognized gain on investments, net of income taxes, of $21.6 and $18.6, respectively, recorded in accumulated other comprehensive loss. In February 2016, the FASB issued new accounting guidance on leases. The new guidance requires that a lessee recognize assets and liabilities on the balance sheet for leases with lease terms 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 June 2016, the FASB issued new accounting guidance on financial instruments. The new guidance requires an application of an impairment model known as the current expected credit loss ("CECL") model to certain financial instruments. Using the CECL model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions, and forecasted information rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. The new guidance is effective for us in 2020. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. In August 2016, the FASB issued new accounting guidance on the cash flow statement. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance is effective for us in 2018. We do not expect the adoption of this guidance to have an impact on our Consolidated Financial Statements. In October 2016, the FASB issued new accounting guidance on tax accounting for intra-entity asset transfers. Under current GAAP, the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use, which is an exception to the principle that generally requires comprehensive recognition of current and deferred income taxes. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, an entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, and any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized even though the pre-tax effects of that transaction are eliminated in consolidation. The guidance is effective for us in 2018. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued new guidance that simplifies the accounting for goodwill impairment. The new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. We adopted this guidance effective April 1, 2017, and it will be applied to our annual impairment test in the third quarter. Adoption of this guidance had no impact on our second quarter or year-to-date Consolidated Financial Statements. In March 2017, the FASB issued new guidance on the presentation of net periodic pension and postretirement benefit cost ("net benefit cost"). Under current GAAP, net benefit cost is reported as an employee cost within operating income. The amendment requires bifurcation of net benefit cost. The service cost component will be presented with other employee compensation cost in operating income, or capitalized in assets in rare circumstances. The other components will be reported separately outside of operations, and will not be eligible for capitalization. The guidance is effective for us in 2018, and should be applied retrospectively. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. For the six months ended June 30, 2017, the service cost component was $4.8 and the net other components was $1.6. For the year ended December 31, 2016, the service cost component was $8.0 and the net other components was a credit of $4.6. In May 2017, the FASB issued new guidance on share-based payment awards. The new guidance clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective for us in 2018. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. |
Share-Based Compensation Plans |
6 Months Ended |
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Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans During the three months ended June 30, 2017 and 2016, we recognized share-based compensation expense of $7.6 and $7.7, respectively, and $14.8 and $14.9 for the six months ended June 30, 2017 and 2016, respectively. The expense relates to stock options, deferred stock, restricted stock and performance share units. We recognize share-based compensation expense in selling and administrative expenses on a straight-line basis over the service period of each award. Consideration received from share-based awards was $36.1 and $3.6 for the six months ended June 30, 2017 and 2016, respectively. In March 2016, the FASB issued new accounting guidance on share-based payments. The new guidance requires all excess tax benefits and tax deficiencies from share-based compensation to be recognized as income tax expense or benefit in the income statement rather than capital in excess of par value. The requirement to record the benefit or deficiency within the provision of income taxes is effective on a prospective basis. The guidance also requires the excess tax benefit or deficiency to be classified as an operating activity rather than a financing activity on our Consolidated Statements of Cash Flows. To eliminate diversity in practice, the guidance also requires that cash payments to tax authorities in connection with shares withheld to meet employees' statutory tax withholding requirements are to be included retrospectively, for all periods presented, as financing activities on our Consolidated Statements of Cash Flows, consistent with our methodology. We adopted the new guidance effective January 1, 2017, and the impact of the adoption of this guidance resulted in a $4.4 favorable impact on net earnings, or $0.06 per share, for the first half of 2017. |
Acquisitions |
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Jun. 30, 2017 | |
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 $21.2 and $41.2 for the six months ended June 30, 2017 and 2016, respectively. In addition, during the six months ended June 30, 2017, we made payments of $12.9 for contingent consideration related to previous acquisitions, $10.3 of which related to our 2015 acquisition of 7S in Germany. During the six months ended June 30, 2016, we made payments of $2.9 for contingent consideration related to previous acquisitions. |
Restructuring Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | Restructuring Costs We recorded net restructuring costs of $34.5 during the six months ended June 30, 2017 in selling and administrative expenses, primarily related to severances and office closures and consolidations in multiple countries and territories. During the six months ended June 30, 2017, we made payments of $9.5 out of our restructuring reserve. We expect a majority of the remaining $29.5 reserve will be paid by the end of 2017. Changes in the restructuring reserve by reportable segment and Corporate are shown below.
(1) Balances related to the United States were $0.4 and $4.2 as of January 1, 2017 and June 30, 2017, respectively. (2) Balances related to France were $1.3 as of both January 1, 2017 and June 30, 2017. Italy had no restructuring reserves recorded as of either January 1, 2017 or June 30, 2017. |
Income Taxes |
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Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded income tax expense at an effective rate of 36.5% for the three months ended June 30, 2017, as compared to an effective rate of 37.8% for the three months ended June 30, 2016. The 2017 rate was favorably impacted by the release of certain valuation allowances reflecting the expected realization of deferred tax assets due to sustained profitability. The 36.5% effective tax rate in the quarter was higher than the United States Federal statutory rate of 35% due primarily to the French business tax, expected repatriations, valuation allowances and other permanent items. We recorded income tax expense at an effective rate of 35.4% for the six months ended June 30, 2017, as compared to an effective rate of 38.6% for the six months ended June 30, 2016. The 2017 rate was favorably impacted by the adoption of the new accounting guidance for share-based payments effective January 1, 2017 (see Note 3 to the Consolidated Financial Statements for further information), the tax benefit related to the favorable settlement of an audit and the release of certain valuation allowances. We currently expect an annual effective tax rate of approximately 36% to 37% as these benefits will partly offset the impact of the French business tax, expected repatriations, valuation allowances and other permanent items for the year. As of June 30, 2017, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $38.1 that would favorably affect the effective tax rate if recognized. As of December 31, 2016, we had gross unrecognized tax benefits related to various tax jurisdictions, including interest and penalties, of $44.0. The reduction in this amount is the result of the settlement of the audit noted above resulting in the recognition of tax benefits claimed in the years subject to examination. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. We conduct business globally in various 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 2016 for our major operations in France, Germany, Japan, the United Kingdom and the United States. As of June 30, 2017, we were subject to tax audits in Austria, Canada, Denmark, Germany, Italy, Portugal 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 0.1 million and 0.4 million share-based awards excluded from the calculation of net earnings per share – diluted for the three months ended June 30, 2017 and 2016, respectively, and the calculation of net earnings per share – diluted for the six months ended June 30, 2017 and 2016, respectively, because their impact was anti-dilutive. |
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 June 30, 2017 and December 31, 2016. (2) Balances were net of accumulated impairment loss of $139.5 as of both June 30, 2017 and December 31, 2016. Total consolidated amortization expense related to intangible assets for the remainder of 2017 is expected to be $17.5 and in each of the next five years is expected to be as follows: 2018 - $32.1, 2019 - $27.8, 2020 - $22.7, 2021 - $12.0 and 2022 - $8.7. Changes in the carrying value of goodwill by reportable segment and Corporate were as follows:
(1) Balances related to the United States were $476.5 as of both January 1, 2017 and June 30, 2017. (2) Balances related to France were $66.8 and $72.6 as of January 1, 2017 and June 30, 2017, respectively. Balances related to Italy were $4.4 and $4.7 as of January 1, 2017 and June 30, 2017, respectively. (3) 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 and six months ended June 30, 2017, contributions made to our pension plans were $3.8 and $5.2, respectively, and contributions made to our retiree health care plan were $0.2 and $0.5, respectively. During 2017, we expect to make total contributions of approximately $9.0 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 attributable to these noncontrolling interests were $2.2 and $2.1 for the three months ended June 30, 2017 and 2016, respectively, and $4.4 and $3.7 for the six months ended June 30, 2017 and 2016, respectively, which were recorded as expenses in interest and other expenses in our Consolidated Statements of Operations. Dividends On May 2, 2017 and May 3, 2016, the Board of Directors declared a semi-annual cash dividend of $0.93 and $0.86 per share, respectively. The 2017 dividends were paid on June 15, 2017 to shareholders of record on June 1, 2017. The 2016 dividends were paid on June 15, 2016 to shareholders of record on June 1, 2016. Share Repurchases In both July 2016 and October 2015, the Board of Directors authorized the repurchase of 6.0 million shares of our common stock. Share repurchases may be made from time to time through a variety of methods, including open market purchases, block transactions, privately negotiated transactions or similar facilities. During the six months of 2017, we repurchased a total of 1.1 million shares at a cost of $115.8 under the 2016 authorization. During the six months of 2016, we repurchased 3.8 million shares at a cost of $290.5 under the 2015 authorization. As of June 30, 2017, there were 3.6 million shares remaining authorized for repurchase under the 2016 authorization and no shares remaining under the 2015 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. In accordance with the 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 ($454.3) notes due September 2022 and the €350.0 ($399.5) notes due June 2018 was designated as a hedge of our net investment in our foreign subsidiaries with a Euro-functional currency as of June 30, 2017. For this portion of the Euro-denominated notes, the gain or loss associated with foreign currency translation is recorded as a component of accumulated other comprehensive loss, net of taxes. As of June 30, 2017 and December 31, 2016, we had an unrealized loss of $9.7 and an unrealized gain of $29.0, respectively, included in accumulated other comprehensive loss, net of taxes, as the net investment hedge was deemed effective. As our €350.0 ($399.5) notes are due within the next twelve months, these notes were included in short-term borrowings and current maturities of long-term debt as of June 30, 2017, but were included in long-term debt as of December 31, 2016. On occasion, forward contracts are designated as a hedge of our net investment in our foreign subsidiaries. We had a translation loss of $4.2 as of both June 30, 2017 and December 31, 2016, 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. We recorded no gain or loss and a loss of $0.7 for the three months ended June 30, 2017 and 2016, respectively, and a gain of $0.1 and a loss of $1.3 for the six months ended June 30, 2017 and 2016, 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 June 30, 2017 and December 31, 2016 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 $899.5 and $831.6 as of June 30, 2017 and December 31, 2016, respectively, compared to a carrying value of $853.8 and $785.2, respectively. |
Segment Data |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data | Segment Data 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. 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 ManpowerGroup Solutions (Recruitment Process Outsourcing (RPO), TAPFIN - Managed Service Provider (MSP), Proservia and Talent Based Outsourcing (TBO)), recruitment and assessment, and training and development. The Right Management segment revenues are derived from career management and talent management services. Segment revenues represent sales to external clients. We provide services to a wide variety of clients, none of which individually comprise a significant portion of revenues for us as a whole. Due to the nature of our business, we generally do not have export sales.
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Contingencies |
6 Months Ended |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies On April 26, 2017, the sellers of 7S Group GmbH ("7S"), a company we acquired in 2015, initiated a process under the acquisition agreement to dispute the contingent consideration related to the acquisition and are claiming an additional $23.8 (€20.8), plus interest. We believe no further amounts are due and intend to vigorously dispute their claims through this process. We are currently not able to predict the outcome of this process or the timing of any resolution and consequently no amounts have been recorded in the Consolidated Financial Statements. |
Basis of Presentation and Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2017 | |
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 2016 Annual Report to Shareholders. The information furnished reflects all adjustments that, in the opinion of management, were necessary for a fair statement of the Consolidated Financial Statements for the periods presented. Such adjustments were of a normal recurring nature, unless otherwise disclosed. Payroll Tax Credit In March 2017 and March 2016, we entered into an agreement to sell a portion of our French payroll tax credits earned in 2016 and 2015, respectively, for net proceeds of $143.5 (€133.0) and $143.1 (€129.9), respectively. 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. The discount on the sale of these receivables was recorded in cost of services as a reduction of the payroll tax credits earned in the respective year. 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) |
6 Months Ended |
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Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers. The core principle of this amendment 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 ("modified retrospective approach"). We are currently working through an adoption plan and completed a preliminary analysis of how we currently recognize revenue compared to the accounting treatment required under the new guidance. We will complete our adoption plan in the second half of 2017. This plan includes a review of client contracts and revenue transactions to determine the impact of the accounting treatment under the new guidance, evaluation of the adoption method, and completing a rollout plan for the new guidance. Additionally, we are in the process of assessing the impact of the new standard on our disclosures and internal controls. Based on our preliminary analysis, we currently do not believe the adoption of this guidance will have a material impact on our Consolidated Financial Statements. We will continue to evaluate the impact of this guidance on our Consolidated Financial Statements, disclosures, and internal controls. Our preliminary assessments are subject to change. We plan to adopt the new guidance beginning January 1, 2018 and presently expect to use the modified retrospective approach. In January 2016, the FASB issued new accounting guidance on financial instruments. The new guidance requires equity investments (except those accounted for under the equity method of accounting or to those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This new guidance impacts the accounting for our Swiss franchise's investment portfolio. Upon adoption in January 2018, we will recognize the cumulative unrealized gains or losses in our retained earnings, and subsequently, we will recognize all the fair value adjustments on the investment portfolio in the current period earnings, as opposed to other comprehensive loss. As of June 30, 2017 and December 31, 2016, we had an unrecognized gain on investments, net of income taxes, of $21.6 and $18.6, respectively, recorded in accumulated other comprehensive loss. In February 2016, the FASB issued new accounting guidance on leases. The new guidance requires that a lessee recognize assets and liabilities on the balance sheet for leases with lease terms 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 June 2016, the FASB issued new accounting guidance on financial instruments. The new guidance requires an application of an impairment model known as the current expected credit loss ("CECL") model to certain financial instruments. Using the CECL model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions, and forecasted information rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. The new guidance is effective for us in 2020. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. In August 2016, the FASB issued new accounting guidance on the cash flow statement. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance is effective for us in 2018. We do not expect the adoption of this guidance to have an impact on our Consolidated Financial Statements. In October 2016, the FASB issued new accounting guidance on tax accounting for intra-entity asset transfers. Under current GAAP, the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use, which is an exception to the principle that generally requires comprehensive recognition of current and deferred income taxes. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, an entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, and any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized even though the pre-tax effects of that transaction are eliminated in consolidation. The guidance is effective for us in 2018. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued new guidance that simplifies the accounting for goodwill impairment. The new guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. We adopted this guidance effective April 1, 2017, and it will be applied to our annual impairment test in the third quarter. Adoption of this guidance had no impact on our second quarter or year-to-date Consolidated Financial Statements. In March 2017, the FASB issued new guidance on the presentation of net periodic pension and postretirement benefit cost ("net benefit cost"). Under current GAAP, net benefit cost is reported as an employee cost within operating income. The amendment requires bifurcation of net benefit cost. The service cost component will be presented with other employee compensation cost in operating income, or capitalized in assets in rare circumstances. The other components will be reported separately outside of operations, and will not be eligible for capitalization. The guidance is effective for us in 2018, and should be applied retrospectively. We are currently assessing the impact of the adoption of this guidance on our Consolidated Financial Statements. For the six months ended June 30, 2017, the service cost component was $4.8 and the net other components was $1.6. For the year ended December 31, 2016, the service cost component was $8.0 and the net other components was a credit of $4.6. In May 2017, the FASB issued new guidance on share-based payment awards. The new guidance clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective for us in 2018. We do not expect the adoption of this guidance to have a material impact on our Consolidated Financial Statements. |
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 $0.4 and $4.2 as of January 1, 2017 and June 30, 2017, respectively. (2) Balances related to France were $1.3 as of both January 1, 2017 and June 30, 2017. Italy had no restructuring reserves recorded as of either January 1, 2017 or June 30, 2017. |
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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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2017 and December 31, 2016. (2) Balances were net of accumulated impairment loss of $139.5 as of both June 30, 2017 and December 31, 2016. |
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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 $476.5 as of both January 1, 2017 and June 30, 2017. (2) Balances related to France were $66.8 and $72.6 as of January 1, 2017 and June 30, 2017, respectively. Balances related to Italy were $4.4 and $4.7 as of January 1, 2017 and June 30, 2017, respectively. (3) 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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 June 30, 2017 and December 31, 2016 were as follows:
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Segment Data (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information |
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Basis of Presentation and Accounting Policies - Payroll Tax Credit (Details) € in Millions, $ in Millions |
1 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2017
EUR (€)
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2016
EUR (€)
|
|
Accounting Policies [Abstract] | ||||
Net proceeds from sale of tax credits | $ 143.5 | € 133.0 | $ 143.1 | € 129.9 |
Recently Issued Accounting Standards (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
|
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Unrealized gain on investments, net of income taxes | $ 21.6 | $ 18.6 |
Service cost | 4.8 | 8.0 |
Other components of net benefit cost | $ 1.6 | $ (4.6) |
Share-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation expense | $ 7.6 | $ 7.7 | $ 14.8 | $ 14.9 |
Consideration received from share-based awards | $ 36.1 | $ 3.6 | ||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options [Line Items] | ||||
Net earnings per share - diluted | $ 1.72 | $ 1.60 | $ 2.80 | $ 2.57 |
ASU 2016-09 [Member] | ||||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options [Line Items] | ||||
Income tax benefit related to share-based compensation awards | $ 4.4 | |||
Net earnings per share - diluted | $ 0.06 |
Acquisitions (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Business Acquisition [Line Items] | ||
Total cash consideration paid for acquisitions, net of cash acquired | $ 21.2 | $ 41.2 |
Payments of contingent consideration for acquisitions | 12.9 | $ 2.9 |
7S Group GmbH | ||
Business Acquisition [Line Items] | ||
Payments of contingent consideration for acquisitions | $ 10.3 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate (as percent) | 36.50% | 37.80% | 35.40% | 38.60% | |
U.S. Federal statutory rate (as percent) | 35.00% | ||||
Gross unrecognized tax benefits, including interest and penalties | $ 38.1 | $ 38.1 | $ 44.0 | ||
Minimum | |||||
Income Tax [Line Items] | |||||
Expected annual effective income tax rate (as percent) | 36.00% | ||||
Maximum | |||||
Income Tax [Line Items] | |||||
Expected annual effective income tax rate (as percent) | 37.00% |
Goodwill and Other Intangible Assets - Goodwill by Reporting Unit (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 1,291.9 | $ 1,239.9 |
United States | ||
Goodwill [Line Items] | ||
Goodwill | 532.0 | 532.0 |
Germany | ||
Goodwill [Line Items] | ||
Goodwill | 129.0 | 121.4 |
Netherlands | ||
Goodwill [Line Items] | ||
Goodwill | 120.4 | 110.9 |
United Kingdom | ||
Goodwill [Line Items] | ||
Goodwill | 86.0 | 81.4 |
France | ||
Goodwill [Line Items] | ||
Goodwill | 72.6 | 66.8 |
Right Management | ||
Goodwill [Line Items] | ||
Goodwill | 62.1 | 62.1 |
Other reporting units | ||
Goodwill [Line Items] | ||
Goodwill | $ 289.8 | $ 265.3 |
Retirement Plans (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Net Periodic Benefit Cost | |||||
Service cost | $ 4.8 | $ 8.0 | |||
Defined Benefit Pension Plans | |||||
Net Periodic Benefit Cost | |||||
Service cost | $ 2.4 | $ 1.8 | 4.8 | $ 3.4 | |
Interest cost | 2.8 | 3.0 | 5.5 | 6.0 | |
Expected return on assets | (2.6) | (3.0) | (5.2) | (5.9) | |
Other | 0.7 | 0.3 | 1.3 | 0.6 | |
Total benefit cost | 3.3 | 2.1 | 6.4 | 4.1 | |
Contributions to pension plans | 3.8 | 5.2 | |||
Estimated employer contribution to pension plans during current fiscal year | 9.0 | ||||
Retiree Health Care Plan | |||||
Net Periodic Benefit Cost | |||||
Interest cost | 0.2 | 0.2 | 0.3 | 0.4 | |
Prior service credit | (0.2) | (0.2) | (0.3) | (0.4) | |
Total benefit cost | 0.0 | $ 0.0 | 0.0 | $ 0.0 | |
Contributions to retiree health care plan | $ 0.2 | $ 0.5 |
Shareholders' Equity - Noncontrolling Interests (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Equity [Abstract] | ||||
Net earnings attributable to noncontrolling interests | $ 2.2 | $ 2.1 | $ 4.4 | $ 3.7 |
Shareholders' Equity - Dividends (Details) - $ / shares |
Jun. 15, 2017 |
May 02, 2017 |
Jun. 15, 2016 |
May 03, 2016 |
---|---|---|---|---|
Dividends [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.93 | $ 0.86 | ||
Dividends paid (in dollars per share) | $ 0.93 | $ 0.86 |
Shareholders' Equity - Share Repurchases (Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jul. 28, 2016 |
Oct. 29, 2015 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased during period (in shares) | 1,100,000 | 3,800,000 | ||
Total cost of shares repurchased | $ 115.8 | $ 290.5 | ||
2016 Authorization | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares authorized to be repurchased (in shares) | 6,000,000 | |||
Shares remaining authorized for repurchase (in shares) | 3,600,000 | |||
2015 Authorization | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares authorized to be repurchased (in shares) | 6,000,000 | |||
Shares remaining authorized for repurchase (in shares) | 0 |
Interest and Other Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Other Nonoperating Income (Expense) [Abstract] | ||||
Interest expense | $ 9.1 | $ 9.2 | $ 18.4 | $ 18.7 |
Interest income | (1.2) | (0.8) | (2.2) | (1.5) |
Foreign exchange losses | 0.2 | 0.7 | 0.3 | 1.6 |
Miscellaneous expenses, net | 2.3 | 1.2 | 8.8 | 4.2 |
Interest and other expenses | $ 10.4 | $ 10.3 | $ 25.3 | $ 23.0 |
Contingencies (Details) € in Millions |
Apr. 26, 2017
USD ($)
|
Apr. 26, 2017
EUR (€)
|
Jun. 30, 2017
USD ($)
|
---|---|---|---|
Commitments and Contingencies Disclosure [Abstract] | |||
Loss contingency, additional consideration sought from the seller of 7S | $ 23,800,000 | € 20.8 | |
Loss contingency, estimate of possible additional payment for 7S | $ 0 |