XML 85 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Data
 12 Months Ended
Dec. 31, 2011
Segment Data [Abstract]  
Segment Data
14.
Segment Data
 
Effective January 1, 2011, we created a new organizational structure in Europe in order to elevate our service quality throughout Europe, the Middle East and Africa. Other Southern Europe and Northern Europe, previously reported in Other EMEA, are now separate reportable segments. France, Italy and Other Southern Europe are aggregated into our Southern Europe reportable segment. All previously reported results have been restated to conform to the current year presentation. Additionally, we changed the name of our Asia Pacific reportable segment to Asia Pacific Middle East (“APME”); the results of this reportable segment have not been restated as only the name has changed.
 
We are organized and managed primarily on a geographic basis, with the exception of Right Management, which is operated as a separate global business unit. Each country and business unit primarily has its own distinct operations, is managed locally by its own management team and maintains its own financial reports. Each operation reports directly or indirectly through a regional manager, to a member of executive management. Given this reporting structure, all of our operations have been segregated into the following reporting segments: Americas, which includes United States and Other Americas; Southern Europe, which includes France, Italy and Other Southern Europe; Northern Europe; APME; and Right Management.
 
The Americas, Southern Europe, Northern Europe and APME segments derive a significant majority of their revenues from the placement of contingent workers. The remaining revenues within these segments are derived from other workforce solutions and services, including recruitment and assessment, training and development, and ManpowerGroup Solutions. ManpowerGroup Solutions includes Talent Based Outsourcing (TBO), Managed Services Provider (MSP), Recruitment Process Outsourcing (RPO), Borderless Talent Solutions (BTS) and Strategic Workforce Consulting (SWC). The Right Management segment revenues are derived from career management and workforce consulting services. Segment revenues represent sales to external clients. Due to the nature of our business, we generally do not have export sales. We provide services to a wide variety of clients, none of which individually comprise a significant portion of revenues for us as a whole.
 
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate performance based on Operating unit profit, which is equal to segment revenues less direct costs and branch and national headquarters operating costs. This profit measure does not include goodwill and intangible asset impairment charges or amortization of Intangible assets related to acquisitions, interest and other income and expense amounts or income taxes.
 
Total assets for the segments are reported after the elimination of investments in subsidiaries and intercompany accounts.
 
 
Year Ended December 31  2011   2010   2009  
Revenues from Services(a)             
Americas:             
 United States(b) $ 3,137.3  $ 2,783.4  $ 1,786.0  
 Other Americas  1,512.1   1,265.5   967.3  
   4,649.4   4,048.9   2,753.3  
Southern Europe:             
 France  6,179.1   5,208.6   4,675.5  
 Italy  1,255.8   1,044.2   950.8  
 Other Southern Europe  776.9   698.9   590.9  
   8,211.8   6,951.7   6,217.2  
Northern Europe  6,159.4   5,344.1   4,780.8  
APME  2,661.7   2,147.2   1,728.0  
Right Management  323.7   374.6   559.4  
  $ 22,006.0  $ 18,866.5  $ 16,038.7  
Operating Unit Profit (Loss)             
Americas:             
 United States $ 94.1  $ 42.8  $ (41.4)
 Other Americas  47.8   36.5   20.1  
   141.9   79.3   (21.3)
Southern Europe:             
 France  85.2   47.1   20.8  
 Italy  74.1   47.5   27.9  
 Other Southern Europe  10.8   7.2   (6.1)
   170.1   101.8   42.6  
Northern Europe  212.6   150.2   40.8  
APME  78.8   47.2   26.5  
Right Management  (1.4)  3.5   113.4  
   602.0   382.0   202.0  
Corporate expenses  (123.1)  (101.2)  (77.4)
Goodwill and intangible asset impairment charges  –   (428.8)  (61.0)
Intangible asset amortization expense(c)  (38.9)  (39.3)  (21.9)
Reclassification of French business tax(d)  84.2   65.3   –  
Interest and other expenses  (44.3)  (43.2)  (64.6)
Earnings (loss) before income taxes $ 479.9  $ (165.2) $ (22.9)

(a)
Further breakdown of Revenues from services by geographical region is as follows:

Revenues from Services  2011   2010   2009  
United States $ 3,254.6  $ 2,940.1  $ 2,059.4  
France  6,201.9   5,240.7   4,710.3  
Italy  1,277.1   1,065.0   967.8  
United Kingdom  1,880.4   1,822.2   1,738.0  
Total Foreign  18,751.4   15,926.4   13,979.3  

(b)
The U.S. revenues above represent revenues from our company-owned branches and franchise fees received from our franchise operations, which are discussed further on the financial highlights page.
(c)
Intangible asset amortization related to acquisitions was excluded from operating costs within the reportable segments and corporate expenses, and shown separately.
(d)
The French business tax, as disclosed in Note 5 to the Consolidated Financial Statements, is reported in Provision for income taxes rather than in Cost of services, in accordance with the current accounting guidance on income taxes. However, we view this tax as operational in nature. Accordingly, the financial information reviewed internally continues to include the French business tax within the Operating unit profit of our France reportable segment. Therefore, we have shown the amount of the French business tax above to reconcile to our Earnings (loss) before income taxes.
 
Year Ended December 31  2011   2010   2009  
Depreciation and Amortization Expense             
Americas:             
 United States $ 13.5  $ 15.4  $ 12.6  
 Other Americas  4.0   3.7   3.7  
   17.5   19.1   16.3  
Southern Europe:             
 France  12.4   12.6   15.3  
 Italy  3.3   3.8   4.4  
 Other Southern Europe  2.7   2.9   3.4  
   18.4   19.3   23.1  
Northern Europe  17.0   18.3   21.2  
APME  5.1   4.6   5.6  
Right Management  5.9   7.3   9.1  
Corporate  1.6   2.2   –  
Amortization of intangible assets(a)  38.9   39.3   21.9  
  $ 104.4  $ 110.1  $ 97.2  
Earnings from Equity Investments             
Americas:             
 United States $ –  $ –  $ –  
 Other Americas  –   –   –  
   –   –   –  
Southern Europe:             
 France  (0.4)  (0.6)  (0.9)
 Italy  –   –   –  
 Other Southern Europe  –   –   –  
   (0.4)  (0.6)  (0.9)
Northern Europe  4.3   5.2   3.3  
APME  –   –   0.6  
Right Management  –   –   –  
  $ 3.9  $ 4.6  $ 3.0  

(a)
Intangible asset amortization related to acquisitions was excluded from operating costs within the reportable segments and corporate expenses, and shown separately.

 
Year Ended December 31  2011   2010   2009  
Total Assets             
Americas:             
 United States $ 1,429.9  $ 1,361.4  $ 630.7  
 Other Americas  291.8   257.6   218.9  
   1,721.7   1,619.0   849.6  
Southern Europe:             
 France  1,822.7   1,826.0   2,220.1  
 Italy  301.3   271.3   239.7  
 Other Southern Europe  170.3   170.6   162.7  
   2,294.3   2,267.9   2,622.5  
Northern Europe  1,714.3   1,682.2   1,398.0  
APME  472.4   395.1   314.4  
Right Management  75.7   86.1   228.7  
Corporate(a)  621.3   679.4   800.6  
  $ 6,899.7  $ 6,729.7  $ 6,213.8  
Equity Investments             
Americas:             
 United States $ –  $ –  $ –  
 Other Americas  –   –   –  
   –   –   –  
Southern Europe:             
 France  0.1   0.4   1.1  
 Italy  –   –   –  
 Other Southern Europe  –   –   –  
   0.1   0.4   1.1  
Northern Europe  75.0   70.5   64.0  
APME  0.8   0.7   0.4  
Right Management  –   –   –  
  $ 75.9  $ 71.6  $ 65.5  

(a)
Corporate assets include assets that were not used in the operations of any segment, the most significant of which were purchased intangibles and cash.
 
 
Year Ended December 31  2011   2010   2009 
Long-Lived Assets(a)             
Americas:             
 United States $ 35.5  $ 39.7  $ 37.3  
 Other Americas  10.5   9.7   9.1  
   46.0   49.4   46.4  
Southern Europe:             
 France  46.0   43.2   42.1  
 Italy  7.9   7.7   8.6  
 Other Southern Europe  8.5   8.9   10.4  
   62.4   59.8   61.1  
Northern Europe  43.3   45.3   52.2  
APME  23.3   17.8   13.9  
Right Management  11.4   15.9   21.4  
Corporate  2.5   4.0   6.0  
  $ 188.9  $ 192.2  $ 201.0  
Additions to Long-Lived Assets            
Americas:             
 United States $ 10.0  $ 6.4  $ 3.5  
 Other Americas  5.5   3.7   2.2  
   15.5   10.1   5.7  
Southern Europe:             
 France  16.4   18.8   5.7  
 Italy  3.7   3.6   1.6  
 Other Southern Europe  3.1   2.0   1.8  
   23.2   24.4   9.1  
Northern Europe  18.4   13.7   10.8  
APME  5.5   7.2   2.2  
Right Management  2.3   2.9   6.3  
Corporate  –   0.2   1.0  
  $ 64.9  $ 58.5  $ 35.1  

(a)
Further breakdown of Long-lived assets by geographical region was as follows:
 
Long-Lived Assets 2011   2010  2009  
United States $ 41.1  $ 48.2  $ 50.8  
France  48.1   45.8   45.1  
Italy  8.1   8.1   9.3  
United Kingdom  12.9   15.3   16.7  
Total Foreign  147.8   144.0   150.2