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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

The provision for income taxes was as follows:

Year Ended December 31		2021				2020				2019
Current
United States
Federal		$	20.2			$	5.2			$	16.7
State			3.3				4.5				2.5
Non-United States			163.5				124.6				243.6
Total current			187.0				134.3				262.8
Deferred
United States
Federal			5.8				(11.0	)			(22.1	)
State			2.4				(4.9	)			1.1
Non-United States			(9.5	)			5.5				(22.0	)
Total deferred			(1.3	)			(10.4	)			(43.0	)
Total provision		$	185.7			$	123.9			$	219.8

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		2021				2020				2019
Income tax based on statutory rate		$	119.3			$	31.0			$	143.9
Increase (decrease) resulting from:
Non-United States tax rate difference:
French business tax(1)			26.7				43.7				54.9
Other(2)			22.2				9.7				37.3
Repatriation of non-United States earnings			5.7				(2.0	)			(17.8	)
State income taxes, net of federal benefit			5.0				(1.3	)			3.1
Change in valuation allowance(3)			22.0				48.5				20.0
Work Opportunity Tax Credit(4)			(10.9	)			(4.9	)			(10.4	)
Foreign-Derived Intangible Income deduction			(10.7	)			(8.8	)			(11.9	)
Goodwill impairment(5)			—				13.4				11.9
Gain related to Manpower Switzerland and Greater China transactions(6)			—				—				(22.8	)
Other, net			6.4				(5.4	)			11.6
Tax provision		$	185.7			$	123.9			$	219.8

(1)The French business tax is allowed as a deduction for French income tax purposes. The gross amount of the French business tax was $33.7, $55.3 and $69.5 for 2021, 2020 and 2019, respectively. The amounts in the table above of $26.7, $43.7 and $54.9 for 2021, 2020 and 2019, respectively, represent the French business tax expense net of the French tax benefit using the United States federal rate of 21%. 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 is reflected in our 2021 Consolidated Financial Statements.

(2)Included in Other Non-United States tax rate differences is the impact of all Non-United States pre-tax earnings and permanent tax differences at the local statutory tax rate versus the United States federal rate of 21%. This includes benefits of $2.5, $6.1 and $9.3 for 2021, 2020 and 2019, 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 deduction previously mentioned.

(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. Additional losses incurred in 2021 in Germany resulted in an increase in valuation allowance of $20.1.

(4)The Work Opportunity Tax Credit is currently authorized until 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		2021				2020
Future Income Tax Benefits (Expense)
Accrued payroll taxes and insurance		$	22.5			$	32.2
Employee compensation payable			38.9				26.2
Pension and postretirement benefits			77.9				79.1
Intangible assets			(135.7	)			(113.6	)
Repatriation of non-United States earnings			(16.1	)			(10.0	)
Loans denominated in foreign currencies			—				13.5
Operating lease ROU assets			(96.3	)			(106.2	)
Operating lease liabilities			99.5				112.0
Net operating losses			129.4				136.2
Other			163.9				127.9
Valuation allowance			(167.1	)			(149.4	)
Total future tax benefits		$	116.9			$	147.9
Deferred tax asset		$	135.0			$	165.7
Deferred tax liability			(18.1	)			(17.8	)
Total future tax benefits		$	116.9			$	147.9

Summary of Net Operating Loss Carryforwards

The net operating loss carryforwards expire as follows:

		United States Federal and Non-United States				United States State
2022		$	2.7			$	5.4
2023			2.7				8.5
2024			5.3				38.6
2025			5.5				5.3
2026			1.0				9.9
Thereafter			7.5				70.6
No expirations			620.0				23.6
Total net operating loss carryforwards		$	644.7			$	161.9

Summary of Unrecognized Tax Benefit Activity

The following table summarizes the activity related to our unrecognized tax benefits during 2021, 2020 and 2019:

		2021				2020				2019
Gross unrecognized tax benefits, beginning of year		$	60.9			$	65.9			$	32.2
Increases in prior year tax positions			4.6				1.4				35.7
Decreases in prior year tax positions			(0.4	)			(4.1	)			(2.6	)
Increases for current year tax positions			9.0				3.2				4.7
Expiration of statute of limitations and audit settlements			(6.8	)			(5.5	)			(4.1	)
Gross unrecognized tax benefits, end of year		$	67.3			$	60.9			$	65.9
Potential interest and penalties			4.5				3.6				3.6
Balance, end of year		$	71.8			$	64.5			$	69.5

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