XML 50 R32.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Schedule of provision for income taxes | The provision for income taxes was as follows:
Year Ended December 31 |  | 2020 |  |  | 2019 |  |  | 2018 |
Current |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 5.2 |  |  | $ | 16.7 |  |  | $ | 17.2 |
State |  |  | 4.5 |  |  |  | 2.5 |  |  |  | 10.8 |
Non-United States |  |  | 124.6 |  |  |  | 243.6 |  |  |  | 181.9 |
Total current |  |  | 134.3 |  |  |  | 262.8 |  |  |  | 209.9 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (11.0 | ) |  |  | (22.1 | ) |  |  | (7.5 | )
State |  |  | (4.9 | ) |  |  | 1.1 |  |  |  | 1.0 |
Non-United States |  |  | 5.5 |  |  |  | (22.0 | ) |  |  | (5.4 | )
Total deferred |  |  | (10.4 | ) |  |  | (43.0 | ) |  |  | (11.9 | )
Total provision |  | $ | 123.9 |  |  | $ | 219.8 |  |  | $ | 198.0 |
Income Tax Reconciliation | A tax reconciliation between taxes computed at the United States federal statutory rate of 21% and the consolidated effective tax rate is as follows:
Year Ended December 31 |  | 2020 |  |  | 2019 |  |  | 2018 |
Income tax based on statutory rate |  | $ | 31.0 |  |  | $ | 143.9 |  |  | $ | 158.5 |
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Non-United States tax rate difference: |  |  |  |  |  |  |  |  |  |  |  |
French business tax(1) |  |  | 43.7 |  |  |  | 54.9 |  |  |  | 59.1 |
French CICE(2) |  |  | — |  |  |  | — |  |  |  | (39.9 | )
Other(1)(2) |  |  | 9.7 |  |  |  | 37.3 |  |  |  | 20.0 |
Repatriation of non-United States earnings |  |  | (2.0 | ) |  |  | (17.8 | ) |  |  | 2.5 |
State income taxes, net of federal benefit |  |  | (1.3 | ) |  |  | 3.1 |  |  |  | 8.2 |
Change in valuation allowance(3) |  |  | 48.5 |  |  |  | 20.0 |  |  |  | 0.7 |
Work Opportunity Tax Credit(4) |  |  | (4.9 | ) |  |  | (10.4 | ) |  |  | (8.8 | )
Foreign-Derived Intangible Income deduction |  |  | (8.8 | ) |  |  | (11.9 | ) |  |  | (12.5 | )
United States Tax Act and French tax reform |  |  | — |  |  |  | — |  |  |  | 3.2 |
Goodwill impairment(5) |  |  | 13.4 |  |  |  | 11.9 |  |  |  | — |
Gain related to Manpower Switzerland and Greater China transactions(6) |  |  | — |  |  |  | (22.8 | ) |  |  | — |
Other, net |  |  | (5.4 | ) |  |  | 11.6 |  |  |  | 7.0 |
Tax provision |  | $ | 123.9 |  |  | $ | 219.8 |  |  | $ | 198.0 |
(1) The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $55.3, $69.5 and $74.8 for 2020, 2019 and 2018, respectively. The amounts in the table above of $43.7, $54.9 and $59.1 for 2020, 2019 and 2018, respectively, represent the French business tax expense net of the French tax benefit using the United States federal rate of 21%. Included in Other Non-United States tax rate differences are benefits of $6.1, $9.3 and $10.1 for 2020, 2019 and 2018, respectively, related to the difference between the United States federal rate and the French tax rate applied to the respective gross amounts of the French business tax. In December 2020, the French Parliament approved the Finance Bill for 2021 which lowered the business tax rate from 1.5% to 0.75%. The benefit of this tax rate reduction will be reflected in our 2021 Consolidated Financial Statements. (2) The French CICE was a payroll tax credit that was tax-free for French tax purposes and increased French earnings. The amount in the table above of $39.9 for 2018 represents the French tax benefit using the United States federal rate of 21%. Included in Other Non-United States tax rate differences is a benefit of $25.5 for 2018 related to the difference between the United States federal rate and French tax rate applied to the respective gross French CICE amount. In January 2019, the French government replaced the CICE subsidy with new subsidies that are taxable. (3) In 2020, we determined that it was more likely than not that certain deferred tax assets in Germany and the Netherlands would not be realized and recorded income tax expense of $36.9 and $8.1, respectively, to establish valuation allowances. (4) In December 2020, the Consolidation Appropriations Act, 2021 was signed into law, which includes a five-year extension of the Work Opportunity Tax Credit through December 31, 2025. (5) Non-deductible portion of the goodwill impairment charges recorded in Germany in June 2020 and 2019. (6) Non-taxable gains on the disposition of our previously held equity interest in Manpower Switzerland in April 2019 and the deconsolidation of ManpowerGroup Greater China Limited in July 2019.
Deferred Income Taxes Temporary Differences | Temporary differences, which give rise to the deferred taxes, are as follows:
December 31 |  | 2020 |  |  | 2019 |
Future Income Tax Benefits (Expense) |  |  |  |  |  |  |  |
Accrued payroll taxes and insurance |  | $ | 32.2 |  |  | $ | 12.8 |
Employee compensation payable |  |  | 26.2 |  |  |  | 27.2 |
Pension and postretirement benefits |  |  | 79.1 |  |  |  | 62.3 |
Intangible assets |  |  | (113.6 | ) |  |  | (108.7 | )
Repatriation of non-United States earnings |  |  | (10.0 | ) |  |  | (8.8 | )
Loans denominated in foreign currencies |  |  | 13.5 |  |  |  | (16.4 | )
Operating lease ROU assets |  |  | (106.2 | ) |  |  | (115.8 | )
Operating lease liabilities |  |  | 112.0 |  |  |  | 118.1 |
Net operating losses |  |  | 136.2 |  |  |  | 89.5 |
Other |  |  | 127.9 |  |  |  | 135.0 |
Valuation allowance |  |  | (149.4 | ) |  |  | (87.8 | )
Total future tax benefits |  | $ | 147.9 |  |  | $ | 107.4 |
Deferred tax asset |  | $ | 165.7 |  |  | $ | 126.2 |
Deferred tax liability |  |  | (17.8 | ) |  |  | (18.8 | )
Total future tax benefits |  | $ | 147.9 |  |  | $ | 107.4 |
Summary of Net Operating Loss Carryforwards | The net operating loss carryforwards expire as follows:
|  | United States Federal and Non-United States |  |  | United States State |
2021 |  | $ | 5.2 |  |  | $ | 4.6 |
2022 |  |  | 6.7 |  |  |  | 5.0 |
2023 |  |  | 3.9 |  |  |  | 9.8 |
2024 |  |  | 7.2 |  |  |  | 55.9 |
2025 |  |  | 20.7 |  |  |  | 5.6 |
Thereafter |  |  | 49.6 |  |  |  | 85.5 |
No expirations |  |  | 565.3 |  |  |  | 0.8 |
Total net operating loss carryforwards |  | $ | 658.6 |  |  | $ | 167.2 |
Summary of Unrecognized Tax Benefit Activity | The following table summarizes the activity related to our unrecognized tax benefits during 2020, 2019 and 2018:
|  | 2020 |  |  | 2019 |  |  | 2018 |
Gross unrecognized tax benefits, beginning of year |  | $ | 65.9 |  |  | $ | 32.2 |  |  | $ | 46.1 |
Increases in prior year tax positions |  |  | 1.4 |  |  |  | 35.7 |  |  |  | 11.4 |
Decreases in prior year tax positions |  |  | (4.1 | ) |  |  | (2.6 | ) |  |  | (1.8 | )
Increases for current year tax positions |  |  | 3.2 |  |  |  | 4.7 |  |  |  | 5.9 |
Expiration of statute of limitations and audit settlements |  |  | (5.5 | ) |  |  | (4.1 | ) |  |  | (29.4 | )
Gross unrecognized tax benefits, end of year |  | $ | 60.9 |  |  | $ | 65.9 |  |  | $ | 32.2 |
Potential interest and penalties |  |  | 3.6 |  |  |  | 3.6 |  |  |  | 2.0 |
Balance, end of year |  | $ | 64.5 |  |  | $ | 69.5 |  |  | $ | 34.2 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration