rhi-20200423
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
 ____________________
FORM 8-K
 ____________________
 CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 23, 2020
 ____________________
Robert Half International Inc.
(Exact name of registrant as specified in its charter)
____________________
 
Delaware 01-10427 94-1648752
(State or other jurisdiction
of incorporation)
 (Commission
File Number)
 (IRS Employer
Identification No.)
 
2884 Sand Hill Road,Menlo Park,CA 94025
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (650) 234-6000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, Par Value $.001 per ShareRHINew York Stock Exchange
NO CHANGE
(Former name or former address, if changed since last report.)
 ____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).  Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  




Item 2.02Results of Operations and Financial Condition.
On April 23, 2020, Robert Half International Inc. issued a press release reporting earnings for the first fiscal quarter of 2020. A copy of the press release is attached hereto as Exhibit 99.1.
The foregoing information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such future filing.

Item 5.02.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e)  On April 23, 2020, as part of a series of measures to better enable the Company to weather the extraordinary business challenges occasioned by the global coronavirus (COVID-19) pandemic, the Company’s President and CEO, Mr. M. Keith Waddell, agreed by irrevocable waiver to effect a temporary reduction in his base salary. Effective with the payroll period commencing April 26, 2020, Mr. Waddell has agreed to forgo receipt of 100% of his base salary through and including the last payroll period beginning in the Company’s current fiscal year.

Mr. Waddell’s salary waiver will not modify other rights under any agreements that are determined by reference to his base salary; such provisions will continue to be applied based on the base salary in effect prior to the waiver. Additionally, the reduction is not intended to reduce any Company employee benefit provided to Mr. Waddell that is determined by reference to his base salary, except as may be required at law or contract with a third party provider.
Item 9.01Financial Statements and Exhibits.
(d)           Exhibits
Exhibit    Description
99.1    
104
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 Robert Half International Inc.
Date: April 23, 2020
 By: 
/s/    Michael C. Buckley         
 Name: Michael C. Buckley
 Title: Executive Vice President, Chief Financial Officer


Document

Exhibit 99.1
FOR IMMEDIATE RELEASE
 
Contact
 M. Keith Waddell
President and Chief Executive Officer
(650) 234-6000

ROBERT HALF REPORTS FIRST-QUARTER FINANCIAL RESULTS

MENLO PARK, Calif., April 23, 2020 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the first quarter ended March 31, 2020.
For the quarter ended March 31, 2020, net income was $90 million, or $.79 per share, on revenues of $1.507 billion. Net income for the prior year’s first quarter was $110 million, or $.93 per share, on revenues of $1.469 billion.
M. Keith Waddell, president and CEO of Robert Half, said, “While our financial results through the first half of March were strong and above plan, the second half of March began to reflect the COVID-19 impact on our business, particularly our staffing operations. Our Robert Half Technology and Robert Half Management Resources divisions turned in solid results in the first quarter, notwithstanding this.”
Commenting on the company’s Protiviti subsidiary, Waddell said, “Protiviti had another very strong quarter, posting double-digit, year-on-year revenue gains for the eighth consecutive quarter. Protiviti saw broad strength across its diversified service offerings, including internal audit, technology consulting and regulatory compliance consulting, as well as services provided jointly with staffing.
“Return on invested capital for the company was 32 percent in the first quarter,” Waddell said.
Robert Half management will conduct a conference call today at 5 p.m. EDT. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number to listen to today’s conference call is 877-814-0475 (+1-706-643-9224 outside the United States). The password is “Robert Half.”
A taped recording of this call will be available for replay beginning at approximately 8 p.m. EDT today and ending at 11:59 p.m. EDT on June 2. The dial-in number for the replay is 855-859-2056 (+1-404-537-3406 outside the United States). To access the replay, enter conference ID# 9287368. The conference call also will be archived in audio format on the company’s website at www.roberthalf.com/investor-center.

Founded in 1948, Robert Half is the world’s first and largest specialized staffing firm and a recognized leader in professional consulting and staffing services. The company’s specialized staffing divisions include Accountemps®, Robert Half® Finance & Accounting and Robert Half® Management Resources, for temporary, full-time and senior-level project professionals, respectively, in the fields of accounting and finance; OfficeTeam®, for highly skilled administrative support professionals; Robert Half® Technology, for project and full-time technology professionals; Robert Half® Legal, for project and full-time staffing of lawyers, paralegals and legal support personnel; and The Creative Group®, for creative, digital, marketing, advertising and public relations professionals. Robert Half also is the parent company of Protiviti®, a global consulting firm that provides clients with consulting solutions in finance, technology, operations, data, analytics, governance, risk and internal audit.
Robert Half has staffing and consulting operations in more than 400 locations worldwide.

Certain information contained in this press release and its attachments may be deemed forward-looking statements regarding events and financial trends that may affect the company’s future operating results or financial positions. These statements may be identified by words such as “estimate”, “forecast”, “project”, “plan”, “intend”, “believe”, “expect”, “anticipate”, or variations or negatives thereof, or by similar or comparable words or phrases. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements.






These risks and uncertainties include, but are not limited to, the following: changes to or new interpretations of U.S. or international tax regulations; the global financial and economic situation; the duration and impact of the COVID-19 pandemic and efforts to mitigate its spread; changes in levels of unemployment and other economic conditions in the United States or foreign countries where the company does business, or in particular regions or industries; reduction in the supply of candidates for temporary employment or the company’s ability to attract candidates; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the company’s services; on the company’s ability to maintain its margins; the possibility of the company incurring liability for its activities, including the activities of its temporary employees, or for events impacting its temporary employees on clients’ premises; the possibility that adverse publicity could impact the company’s ability to attract and retain clients and candidates; the success of the company in attracting, training, and retaining qualified management personnel and other staff employees; the company’s ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the company’s reliance on short-term contracts for a significant percentage of its business; litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the company’s SEC filings; the ability of the company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the additional costs the company will incur as a result of healthcare reform legislation may adversely affect the company’s profit margins or the demand for the company’s services; the possibility that the company’s computer and communications hardware and software systems could be damaged or their service interrupted; and the possibility that the company may fail to maintain adequate financial and management controls and as a result suffer errors in its financial reporting.
Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities.
Because long-term contracts are not a significant part of the company’s business, future results cannot be reliably predicted by considering past trends or extrapolating past results. The company undertakes no obligation to update information contained in this release.
A copy of this release is available at www.roberthalf.com/investor-center.
 
ATTACHED
 
Summary of Operations
 
Supplemental Financial Information
 
Non-GAAP Financial Measures

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ROBERT HALF INTERNATIONAL INC.
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
 
 Quarter
Ended March 31,
 20202019
 (Unaudited)
Service revenues$1,506,691  $1,468,530  
Costs of services895,974  860,942  
Gross margin610,717  607,588  
Selling, general and administrative expenses479,573  461,359  
Amortization of intangible assets338  342  
Interest income, net(957) (1,496) 
Income before income taxes131,763  147,383  
Provision for income taxes41,848  37,585  
Net income$89,915  $109,798  
Diluted net income per share$.79  $.93  
 
Shares:
Basic113,187  117,068  
Diluted113,858  117,966  

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ROBERT HALF INTERNATIONAL INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
 
                                                                      Quarter Ended March 31,
 20202019
 (Unaudited)
SERVICE REVENUES:
Accountemps
$480,441  31.9 %$483,473  32.9 %
OfficeTeam
239,036  15.9 %252,035  17.2 %
Robert Half Technology
183,423  12.2 %171,928  11.7 %
Robert Half Management Resources
189,220  12.5 %177,191  12.1 %
Robert Half Finance & Accounting
120,489  8.0 %131,562  8.9 %
Protiviti
294,082  19.5 %252,341  17.2 %
Total
$1,506,691  100.0 %$1,468,530  100.0 %
GROSS MARGIN:
Temporary and consultant staffing
$412,996  37.8 %$412,465  38.0 %
Permanent placement staffing
120,280  99.8 %131,308  99.8 %
Risk consulting and internal audit services
77,441  26.3 %63,815  25.3 %
Total
$610,717  40.5 %$607,588  41.4 %
OPERATING INCOME:
Temporary and consultant staffing
$93,764  8.6 %$106,018  9.8 %
Permanent placement staffing
10,911  9.1 %21,557  16.4 %
Risk consulting and internal audit services
26,469  9.0 %18,654  7.4 %
Total$131,144  8.7 %$146,229  10.0 %
SELECTED CASH FLOW INFORMATION:
Depreciation
$15,913  $15,652  
Capital expenditures
$14,276  $12,670  
Open market repurchases of common stock (shares)
983781

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ROBERT HALF INTERNATIONAL INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
 
 March 31,
 20202019
 (Unaudited)
SELECTED BALANCE SHEET INFORMATION:
Cash and cash equivalents$249,914  $269,645  
Accounts receivable, less allowances$853,529  $826,366  
Total assets$2,274,852  $2,204,607  
Total current liabilities$913,354  $900,730  
Notes payable, less current portion$181  $404  
Total stockholders’ equity$1,129,925  $1,077,029  

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ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES
The financial results of Robert Half International Inc. (the “Company”) are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the U.S. Securities and Exchange Commission (“SEC”). To help readers understand the Company’s financial performance, the Company supplements its GAAP financial results with revenue growth rates derived from non-GAAP revenue amounts.
Variations in the Company’s financial results include the impact of changes in foreign currency exchange rates, billing days, and certain intercompany adjustments. The Company provides “as adjusted” revenue growth calculations to remove the impact of these items. These calculations show the year-over-year revenue growth rates for the Company’s lines of business on both a reported basis and also on an as-adjusted basis for global, U.S., and international operations. This information is presented for each of the six most recent quarters. The Company has provided this data because it focuses on the Company’s revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The Company expresses year-over-year revenue changes as calculated percentages using the same number of billing days, constant currency exchange rates, and certain intercompany adjustments.
The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies may calculate such financial results differently. The Company’s non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual revenue growth derived from revenue amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.
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ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATES (%) (UNAUDITED):
 
 Year-Over-Year Growth Rates
(As Reported)
Non-GAAP Year-Over-Year Growth Rates
(As Adjusted)
 201820192020201820192020
 Q4Q1Q2Q3Q4Q1Q4Q1Q2Q3Q4Q1
Global
Accountemps
8.42.51.32.10.6-0.68.75.62.81.61.1-1.3
OfficeTeam
4.0-3.5-2.70.3-3.8-5.24.1-0.4-1.2-0.1-3.2-5.9
RH Technology
11.47.44.64.96.46.711.410.76.44.87.25.7
RH Management Resources
4.12.14.69.26.16.89.114.312.012.99.46.3
Temporary and consultant staffing
7.11.71.43.21.30.78.06.23.73.42.20.0
Permanent placement staffing
12.88.44.33.80.4-8.413.512.36.23.40.9-9.0
Total staffing7.62.41.73.31.2-0.38.56.94.03.42.1-1.0
Protiviti
22.821.516.618.315.716.519.217.313.814.614.115.5
Total10.15.24.15.93.82.610.38.55.65.44.31.9
United States
Temporary and consultant staffing
7.43.43.55.73.02.06.35.13.84.53.20.5
Permanent placement staffing
16.410.06.66.53.0-4.915.311.86.95.33.2-6.3
Total staffing8.14.03.85.83.01.37.15.74.14.53.2-0.2
Protiviti
17.614.914.717.517.321.316.416.815.116.217.519.5
Total9.75.75.67.95.64.78.77.46.06.65.73.2
International
Temporary and consultant staffing
6.1-3.7-5.9-5.0-4.8-3.814.110.23.1-0.2-1.0-1.9
Permanent placement staffing
5.64.9-0.6-2.1-5.3-15.910.412.84.4-0.6-4.1-14.6
Total staffing6.0-2.5-5.1-4.6-4.8-5.613.610.53.3-0.3-1.5-3.7
Protiviti
45.148.823.221.210.41.329.518.99.49.33.32.4
Total11.23.7-1.0-0.7-2.2-4.416.011.94.41.4-0.6-2.7
The non-GAAP financial measures included in the table above adjust for the following items:
Foreign Currency Translation. The “As Reported” revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates. In order to calculate “Constant Currency” revenue growth rates, as reported amounts are retranslated using foreign exchange rates from the prior year’s comparable period.
Billing Days. The “As Reported” revenue growth rates are based upon reported revenues. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all lines of business. In order to remove the fluctuations caused by comparable periods having different billing days, the company calculates “same billing day” revenue growth rates by dividing each comparative period’s reported revenues by the calculated number of billing days for that period to arrive at a “per billing day” amount. The “same billing day” growth rates are then calculated based upon the “per billing day” amounts.
Intercompany Adjustments. The “As Reported” revenue growth rates are based upon reported revenues. In order to remove the fluctuations caused by the impact of certain intercompany adjustments, applicable comparative period revenues are reclassified to conform with the current period presentation.
The term “As Adjusted” means that the impact of different billing days, constant currency fluctuations, and certain intercompany adjustments are removed from the revenue growth rate calculation. A reconciliation of the non-GAAP year-over-year revenue growth rates to the “As Reported” year-over-year revenue growth rates is included herein on Pages 8-10.
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ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Revenue Growth – GLOBAL
 Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019 Q1 2020
Accountemps
As Reported8.4  2.5  1.3  2.1  0.6  -0.6  
Billing Days Impact-0.7  1.4  0.3  -1.3  0.0  -1.5  
Currency Impact1.0  1.7  1.2  0.8  0.5  0.8  
As Adjusted8.7  5.6  2.8  1.6  1.1  -1.3  
OfficeTeam
As Reported4.0  -3.5  -2.7  0.3  -3.8  -5.2  
Billing Days Impact-0.7  1.3  0.2  -1.4  0.0  -1.3  
Currency Impact0.8  1.8  1.3  1.0  0.6  0.6  
As Adjusted4.1  -0.4  -1.2  -0.1  -3.2  -5.9  
Robert Half Technology
As Reported11.4  7.4  4.6  4.9  6.4  6.7  
Billing Days Impact-0.9  1.4  0.3  -1.4  0.1  -1.5  
Currency Impact0.7  1.2  0.9  0.6  0.3  0.5  
Intercompany Adjustments0.2  0.7  0.6  0.7  0.4  —  
As Adjusted11.4  10.7  6.4  4.8  7.2  5.7  
Robert Half Management Resources
As Reported4.1  2.1  4.6  9.2  6.1  6.8  
Billing Days Impact-0.8  1.5  0.2  -1.5  0.0  -1.5  
Currency Impact1.4  2.8  2.0  1.3  0.8  1.0  
Intercompany Adjustments4.4  7.9  5.2  3.9  2.5  —  
As Adjusted9.1  14.3  12.0  12.9  9.4  6.3  
Temporary and consultant staffing
As Reported7.1  1.7  1.4  3.2  1.3  0.7  
Billing Days Impact-0.8  1.4  0.2  -1.3  0.0  -1.4  
Currency Impact1.0  1.8  1.3  0.9  0.5  0.7  
Intercompany Adjustments0.7  1.3  0.8  0.6  0.4  —  
As Adjusted8.0  6.2  3.7  3.4  2.2  0.0  
Permanent placement staffing
As Reported12.8  8.4  4.3  3.8  0.4  -8.4  
Billing Days Impact-0.7  1.4  0.2  -1.4  0.0  -1.4  
Currency Impact1.4  2.5  1.7  1.0  0.5  0.8  
As Adjusted13.5  12.3  6.2  3.4  0.9  -9.0  
Total staffing
As Reported7.6  2.4  1.7  3.3  1.2  -0.3  
Billing Days Impact-0.7  1.4  0.3  -1.4  0.0  -1.4  
Currency Impact1.0  1.9  1.3  0.9  0.5  0.7  
Intercompany Adjustments0.6  1.2  0.7  0.6  0.4  —  
As Adjusted8.5  6.9  4.0  3.4  2.1  -1.0  
Protiviti
As Reported22.8  21.5  16.6  18.3  15.7  16.5  
Billing Days Impact-0.8  1.5  0.3  -1.4  0.1  -1.6  
Currency Impact0.9  1.7  1.2  0.8  0.3  0.6  
Intercompany Adjustments-3.7  -7.4  -4.3  -3.1  -2.0  —  
As Adjusted19.2  17.3  13.8  14.6  14.1  15.5  
Total
As Reported10.1  5.2  4.1  5.9  3.8  2.6  
Billing Days Impact-0.8  1.4  0.2  -1.4  0.0  -1.4  
Currency Impact1.0  1.9  1.3  0.9  0.5  0.7  
As Adjusted10.3  8.5  5.6  5.4  4.3  1.9  
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ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
 
Year-Over-Year Revenue Growth – UNITED STATES
 Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019 Q1 2020
Temporary and consultant staffing
As Reported7.4  3.4  3.5  5.7  3.0  2.0  
Billing Days Impact-1.1  1.7  0.3  -1.2  0.2  -1.5  
Currency Impact—  —  —  —  —  —  
As Adjusted6.3  5.1  3.8  4.5  3.2  0.5  
Permanent placement staffing
As Reported16.4  10.0  6.6  6.5  3.0  -4.9  
Billing Days Impact-1.1  1.8  0.3  -1.2  0.2  -1.4  
Currency Impact—  —  —  —  —  —  
As Adjusted15.3  11.8  6.9  5.3  3.2  -6.3  
Total staffing
As Reported8.1  4.0  3.8  5.8  3.0  1.3  
Billing Days Impact-1.0  1.7  0.3  -1.3  0.2  -1.5  
Currency Impact—  —  —  —  —  —  
As Adjusted7.1  5.7  4.1  4.5  3.2  -0.2  
Protiviti
As Reported17.6  14.9  14.7  17.5  17.3  21.3  
Billing Days Impact-1.2  1.9  0.4  -1.3  0.2  -1.8  
Currency Impact—  —  —  —  —  —  
As Adjusted16.4  16.8  15.1  16.2  17.5  19.5  
Total
As Reported9.7  5.7  5.6  7.9  5.6  4.7  
Billing Days Impact-1.0  1.7  0.4  -1.3  0.1  -1.5  
Currency Impact—  —  —  —  —  —  
As Adjusted8.7  7.4  6.0  6.6  5.7  3.2  

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ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
 
Year-Over-Year Revenue Growth – INTERNATIONAL
 Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019 Q1 2020
Temporary and consultant staffing
As Reported6.1  -3.7  -5.9  -5.0  -4.8  -3.8  
Billing Days Impact0.4  0.4  -0.2  -1.6  -0.4  -1.4  
Currency Impact4.4  8.1  5.7  3.8  2.4  3.3  
Intercompany Adjustments3.2  5.4  3.5  2.6  1.8  —  
As Adjusted14.1  10.2  3.1  -0.2  -1.0  -1.9  
Permanent placement staffing
As Reported5.6  4.9  -0.6  -2.1  -5.3  -15.9  
Billing Days Impact0.5  0.3  -0.2  -1.5  -0.4  -1.1  
Currency Impact4.3  7.6  5.2  3.0  1.6  2.4  
As Adjusted10.4  12.8  4.4  -0.6  -4.1  -14.6  
Total staffing
As Reported6.0  -2.5  -5.1  -4.6  -4.8  -5.6