Delaware | 001-14505 | 95-2623879 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
1900 Avenue of the Stars, Suite 2600 Los Angeles, California |
90067 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit 99.1 | Press Release, dated March 9, 2011. |
KORN/FERRY INTERNATIONAL (Registrant) |
||||
Date: March 9, 2011 | ||||
/s/ Michael A. DiGregorio | ||||
(Signature) | ||||
Name: | Michael A. DiGregorio | |||
Title: | Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |||
99.1 | Press release, dated March 9, 2011. |
| Third quarter fiscal 2011 fee revenue increased 27% to $186.5 million, compared to $146.8 million in the same quarter last year. |
| Q3 FY11 diluted earnings per share was $0.30, compared to diluted earnings per share of $0.17 in Q3 FY10. Excluding certain adjustments discussed below, diluted earnings per share was $0.11 in Q3 FY10. |
Third Quarter | Year to Date | |||||||||||||||
FY11 | FY10 | FY11 | FY10 | |||||||||||||
Fee revenue |
$ | 186.5 | $ | 146.8 | $ | 547.0 | $ | 403.7 | ||||||||
Total revenue |
$ | 194.1 | $ | 152.9 | $ | 570.5 | $ | 422.7 | ||||||||
Operating income (loss) |
$ | 20.5 | $ | 6.4 | $ | 59.6 | $ | (16.3 | ) | |||||||
Operating margin |
11.0 | % | 4.3 | % | 10.9 | % | (4.1 | )% | ||||||||
Net income (loss) |
$ | 13.9 | $ | 7.9 | $ | 38.5 | $ | (3.6 | ) | |||||||
Basic earnings (loss) per share |
$ | 0.31 | $ | 0.18 | $ | 0.86 | $ | (0.08 | ) | |||||||
Diluted earnings (loss) per share |
$ | 0.30 | $ | 0.17 | $ | 0.84 | $ | (0.08 | ) |
Third Quarter | Year to Date | |||||||||||||||
FY11 | FY10 | FY11 | FY10 | |||||||||||||
Operating income |
$ | 20.5 | $ | 6.0 | $ | 61.7 | $ | 4.2 | ||||||||
Operating margin |
11.0 | % | 4.1 | % | 11.3 | % | 1.1 | % | ||||||||
Net income |
$ | 13.9 | $ | 4.8 | $ | 39.8 | $ | 6.8 | ||||||||
Basic earnings per share |
$ | 0.31 | $ | 0.11 | $ | 0.88 | $ | 0.15 | ||||||||
Diluted earnings per share |
$ | 0.30 | $ | 0.11 | $ | 0.87 | $ | 0.15 |
(a) | Adjusted results are non-GAAP financial measures that exclude the following: |
Third Quarter | Year to Date | |||||||||||||||
FY11 | FY10 | FY11 | FY10 | |||||||||||||
Restructuring (reductions) charges |
$ | | $ | (0.3 | ) | $ | 2.1 | $ | 20.6 | |||||||
Certain tax adjustments (b) |
$ | | $ | (2.8 | ) | $ | | $ | (2.8 | ) |
(b) | Includes reversal of a reserve previously taken against an uncertain tax position and an increased valuation allowance related to cash repatriations and foreign tax credits. |
Third Quarter | Year to Date | |||||||||||||||
FY11 | FY10 | FY11 | FY10 | |||||||||||||
Fee revenue |
$ | 163.1 | $ | 129.2 | $ | 482.1 | $ | 353.8 | ||||||||
Total revenue |
$ | 169.6 | $ | 134.3 | $ | 501.5 | $ | 369.2 | ||||||||
Operating income |
$ | 29.1 | $ | 18.5 | $ | 80.7 | $ | 15.1 | ||||||||
Operating margin |
17.8 | % | 14.3 | % | 16.7 | % | 4.3 | % | ||||||||
Ending number of consultants |
474 | 483 | 474 | 483 | ||||||||||||
Average number of consultants |
475 | 490 | 475 | 486 | ||||||||||||
Engagements billed |
3,930 | 3,281 | 8,853 | 6,786 | ||||||||||||
New engagements (a) |
1,914 | 1,683 | 5,774 | 4,580 |
Third Quarter | Year to Date | |||||||||||||||
FY11 | FY10 | FY11 | FY10 | |||||||||||||
Operating income |
$ | 29.1 | $ | 18.5 | $ | 82.9 | $ | 38.5 | ||||||||
Operating margin |
17.8 | % | 14.3 | % | 17.2 | % | 10.9 | % |
(a) | Represents new engagements opened in the respective period. | |
(b) | Adjusted results are non-GAAP financial measures that exclude restructuring charges, net of recoveries, of $2.2 million and $23.4 million during the nine months ended January 31, 2011 and 2010, respectively (see attached reconciliations). There were no adjustments during the three months ended January 31, 2011 and 2010. |
Third Quarter | Year to Date | |||||||||||||||
FY11 | FY10 | FY11 | FY10 | |||||||||||||
Fee revenue |
$ | 23.4 | $ | 17.6 | $ | 64.9 | $ | 49.9 | ||||||||
Total revenue |
$ | 24.5 | $ | 18.6 | $ | 69.0 | $ | 53.5 | ||||||||
Operating income |
$ | 1.3 | $ | 0.6 | $ | 3.5 | $ | 2.4 | ||||||||
Operating margin |
5.4 | % | 3.2 | % | 5.3 | % | 4.7 | % |
Third Quarter | Year to Date | |||||||||||||||
FY11 | FY10 | FY11 | FY10 | |||||||||||||
Operating income (loss) |
$ | 1.3 | $ | 0.2 | $ | 3.4 | $ | (0.5 | ) | |||||||
Operating margin |
5.4 | % | 1.1 | % | 5.2 | % | (1.0 | )% |
(a) | Adjusted results are non-GAAP financial measures that exclude recoveries of restructuring charges of $0.1 million and $2.8 million during nine months ended January 31, 2011 and 2010, respectively. Adjusted results for the three months ended January 31, 2010 exclude recoveries of restructuring charges of $0.3 million (see attached reconciliations). There were no adjustments during the three months ended January 31, 2011. |
| adjusted operating income (loss) and operating margin, adjusted to exclude charges (recoveries) of restructuring charges, net; |
| adjusted net income (loss), adjusted to exclude charges (recoveries) of restructuring charges, net and certain tax adjustments; |
| adjusted basic and diluted earnings (loss) per share, adjusted to exclude charges (recoveries) of restructuring charges, net and certain tax adjustments; and |
| constant currency amounts that represent the outcome that would have resulted had exchange rates in the reported period been the same as those in effect in the comparable prior year period. |
Three Months Ended | Nine Months Ended | |||||||||||||||
January 31, | January 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(unaudited) | ||||||||||||||||
Fee revenue |
$ | 186,489 | $ | 146,742 | $ | 546,951 | $ | 403,690 | ||||||||
Reimbursed out-of-pocket engagement expenses |
7,620 | 6,158 | 23,524 | 19,054 | ||||||||||||
Total revenue |
194,109 | 152,900 | 570,475 | 422,744 | ||||||||||||
Compensation and benefits |
126,088 | 102,654 | 373,851 | 295,115 | ||||||||||||
General and administrative expenses |
31,534 | 31,635 | 87,512 | 86,853 | ||||||||||||
Out-of-pocket engagement expenses |
12,756 | 9,837 | 38,092 | 28,090 | ||||||||||||
Depreciation and amortization |
3,239 | 2,755 | 9,351 | 8,444 | ||||||||||||
Restructuring (reductions) charges, net |
| (364 | ) | 2,130 | 20,593 | |||||||||||
Total operating expenses |
173,617 | 146,517 | 510,936 | 439,095 | ||||||||||||
Operating income (loss) |
20,492 | 6,383 | 59,539 | (16,351 | ) | |||||||||||
Interest and other income, net |
1,547 | 893 | 895 | 5,364 | ||||||||||||
Income (loss) before provision (benefit) for income taxes
and equity in earnings of unconsolidated subsidiaries |
22,039 | 7,276 | 60,434 | (10,987 | ) | |||||||||||
Income tax provision (benefit) |
8,598 | (244 | ) | 23,407 | (6,730 | ) | ||||||||||
Equity in earnings of unconsolidated subsidiaries, net |
534 | 390 | 1,508 | 639 | ||||||||||||
Net income (loss) |
$ | 13,975 | $ | 7,910 | $ | 38,535 | $ | (3,618 | ) | |||||||
Earnings (loss) per common share: |
||||||||||||||||
Basic |
$ | 0.31 | $ | 0.18 | $ | 0.86 | $ | (0.08 | ) | |||||||
Diluted |
$ | 0.30 | $ | 0.17 | $ | 0.84 | $ | (0.08 | ) | |||||||
Weighted-average common shares outstanding: |
||||||||||||||||
Basic |
45,349 | 44,622 | 45,040 | 44,290 | ||||||||||||
Diluted |
46,720 | 45,811 | 46,026 | 44,290 | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
January 31, | January 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | % Change | 2011 | 2010 | % Change | |||||||||||||||||||||||||||
Fee Revenue: |
||||||||||||||||||||||||||||||||
Executive recruitment: |
||||||||||||||||||||||||||||||||
North America |
$ | 94,991 | $ | 70,187 | 35 | % | $ | 279,032 | $ | 193,709 | 44 | % | ||||||||||||||||||||
EMEA |
40,068 | 36,643 | 9 | % | 113,760 | 101,240 | 12 | % | ||||||||||||||||||||||||
Asia Pacific |
20,445 | 16,503 | 24 | % | 65,685 | 42,437 | 55 | % | ||||||||||||||||||||||||
South America |
7,638 | 5,829 | 31 | % | 23,602 | 16,396 | 44 | % | ||||||||||||||||||||||||
Total executive recruitment |
163,142 | 129,162 | 26 | % | 482,079 | 353,782 | 36 | % | ||||||||||||||||||||||||
Futurestep |
23,347 | 17,580 | 33 | % | 64,872 | 49,908 | 30 | % | ||||||||||||||||||||||||
Total fee revenue |
186,489 | 146,742 | 27 | % | 546,951 | 403,690 | 35 | % | ||||||||||||||||||||||||
Reimbursed out-of-pocket engagement expenses |
7,620 | 6,158 | 24 | % | 23,524 | 19,054 | 23 | % | ||||||||||||||||||||||||
Total revenue |
$ | 194,109 | $ | 152,900 | 27 | % | $ | 570,475 | $ | 422,744 | 35 | % | ||||||||||||||||||||
Margin | Margin | Margin | Margin | |||||||||||||||||||||||||||||
Adjusted Operating Income (Loss): (Excluding Restructuring Charges) |
||||||||||||||||||||||||||||||||
Executive recruitment: |
||||||||||||||||||||||||||||||||
North America |
$ | 21,650 | 22.8 | % | $ | 13,353 | 19.0 | % | $ | 60,580 | 21.7 | % | $ | 28,810 | 14.9 | % | ||||||||||||||||
EMEA |
3,360 | 8.4 | % | 2,935 | 8.0 | % | 9,066 | 8.0 | % | 5,909 | 5.8 | % | ||||||||||||||||||||
Asia Pacific |
2,487 | 12.2 | % | 1,203 | 7.3 | % | 7,117 | 10.8 | % | 2,239 | 5.3 | % | ||||||||||||||||||||
South America |
1,559 | 20.4 | % | 1,010 | 17.3 | % | 6,136 | 26.0 | % | 1,526 | 9.3 | % | ||||||||||||||||||||
Total executive recruitment |
29,056 | 17.8 | % | 18,501 | 14.3 | % | 82,899 | 17.2 | % | 38,484 | 10.9 | % | ||||||||||||||||||||
Futurestep |
1,268 | 5.4 | % | 191 | 1.1 | % | 3,341 | 5.2 | % | (483 | ) | (1.0 | %) | |||||||||||||||||||
Corporate (1) |
(9,832 | ) | (12,673 | ) | (24,571 | ) | (33,759 | ) | ||||||||||||||||||||||||
Total adjusted operating income (loss) |
$ | 20,492 | 11.0 | % | $ | 6,019 | 4.1 | % | $ | 61,669 | 11.3 | % | $ | 4,242 | 1.1 | % | ||||||||||||||||
Restructuring (Reductions) Charges, net: |
||||||||||||||||||||||||||||||||
Executive recruitment: |
||||||||||||||||||||||||||||||||
North America |
$ | | 0.0 | % | $ | | 0.0 | % | $ | (340 | ) | (0.1 | %) | $ | (1,279 | ) | (0.6 | %) | ||||||||||||||
EMEA |
| 0.0 | % | | 0.0 | % | 2,569 | 2.3 | % | 24,798 | 24.5 | % | ||||||||||||||||||||
Asia Pacific |
| 0.0 | % | | 0.0 | % | | 0.0 | % | 87 | 0.2 | % | ||||||||||||||||||||
South America |
| 0.0 | % | | 0.0 | % | | 0.0 | % | (173 | ) | (1.1 | %) | |||||||||||||||||||
Total executive recruitment |
| 0.0 | % | | 0.0 | % | 2,229 | 0.5 | % | 23,433 | 6.6 | % | ||||||||||||||||||||
Futurestep |
| 0.0 | % | (364 | ) | (2.1 | %) | (99 | ) | (0.1 | %) | (2,840 | ) | (5.7 | %) | |||||||||||||||||
Corporate |
| | | | ||||||||||||||||||||||||||||
Total restructuring (reductions) charges, net |
$ | | 0.0 | % | $ | (364 | ) | (0.2 | %) | $ | 2,130 | 0.4 | % | $ | 20,593 | 5.2 | % | |||||||||||||||
Margin | Margin | Margin | Margin | |||||||||||||||||||||||||||||
Operating Income (Loss): |
||||||||||||||||||||||||||||||||
Executive recruitment: |
||||||||||||||||||||||||||||||||
North America |
$ | 21,650 | 22.8 | % | $ | 13,353 | 19.0 | % | $ | 60,920 | 21.8 | % | $ | 30,089 | 15.5 | % | ||||||||||||||||
EMEA |
3,360 | 8.4 | % | 2,935 | 8.0 | % | 6,497 | 5.7 | % | (18,889 | ) | (18.7 | %) | |||||||||||||||||||
Asia Pacific |
2,487 | 12.2 | % | 1,203 | 7.3 | % | 7,117 | 10.8 | % | 2,152 | 5.1 | % | ||||||||||||||||||||
South America |
1,559 | 20.4 | % | 1,010 | 17.3 | % | 6,136 | 26.0 | % | 1,699 | 10.4 | % | ||||||||||||||||||||
Total executive recruitment |
29,056 | 17.8 | % | 18,501 | 14.3 | % | 80,670 | 16.7 | % | 15,051 | 4.3 | % | ||||||||||||||||||||
Futurestep |
1,268 | 5.4 | % | 555 | 3.2 | % | 3,440 | 5.3 | % | 2,357 | 4.7 | % | ||||||||||||||||||||
Corporate (1) |
(9,832 | ) | (12,673 | ) | (24,571 | ) | (33,759 | ) | ||||||||||||||||||||||||
Total operating income (loss) |
$ | 20,492 | 11.0 | % | $ | 6,383 | 4.3 | % | $ | 59,539 | 10.9 | % | $ | (16,351 | ) | (4.1 | %) | |||||||||||||||
(1) | Lower net expenses primarily related to the change in amounts due under deferred compensation plans determined by an increase (or decrease) in market values, and adjustment to the fair value of contingent consideration for a prior acquisition, totaling $1.1 million and $4.9 million during the three and nine months ended January 31, 2011 compared to the three and nine months ended January 31, 2010, respectively. |
January 31, | April 30, | |||||||
2011 | 2010 | |||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 181,309 | $ | 219,233 | ||||
Marketable securities |
19,949 | 4,114 | ||||||
Receivables due from clients, net of allowance for doubtful accounts
of $9,081 and $5,983, respectively |
137,408 | 107,215 | ||||||
Income taxes and other receivables |
11,859 | 6,292 | ||||||
Deferred income taxes |
16,251 | 20,844 | ||||||
Prepaid expenses and other assets |
27,898 | 23,166 | ||||||
Total current assets |
394,674 | 380,864 | ||||||
Marketable securities, non-current |
102,301 | 73,105 | ||||||
Property and equipment, net |
39,903 | 24,963 | ||||||
Cash surrender value of company owned life insurance policies, net of loans |
73,257 | 69,069 | ||||||
Deferred income taxes |
62,385 | 59,742 | ||||||
Goodwill |
176,988 | 172,273 | ||||||
Intangible assets, net |
23,697 | 25,425 | ||||||
Investments and other assets |
34,312 | 21,657 | ||||||
Total assets |
$ | 907,517 | $ | 827,098 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Accounts payable |
$ | 11,072 | $ | 11,148 | ||||
Income taxes payable |
11,786 | 6,323 | ||||||
Compensation and benefits payable |
143,037 | 131,550 | ||||||
Other accrued liabilities |
45,300 | 49,062 | ||||||
Total current liabilities |
211,195 | 198,083 | ||||||
Deferred compensation and other retirement plans |
128,552 | 123,794 | ||||||
Other liabilities |
24,518 | 13,879 | ||||||
Total liabilities |
364,265 | 335,756 | ||||||
Stockholders equity |
||||||||
Common stock: $0.01 par value, 150,000 shares authorized, 58,958 and
57,614 shares issued and 46,817 and 45,979 shares outstanding, respectively |
398,618 | 388,717 | ||||||
Retained earnings |
128,455 | 90,220 | ||||||
Accumulated other comprehensive income, net |
16,701 | 12,934 | ||||||
Stockholders equity |
543,774 | 491,871 | ||||||
Less: notes receivable from stockholders |
(522 | ) | (529 | ) | ||||
Total stockholders equity |
543,252 | 491,342 | ||||||
Total liabilities and stockholders equity |
$ | 907,517 | $ | 827,098 | ||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
January 31, 2011 | January 31, 2010 | |||||||||||||||||||||||
As Reported | Adjustments | As Adjusted | As Reported | Adjustments | As Adjusted | |||||||||||||||||||
Fee revenue |
$ | 186,489 | $ | 186,489 | $ | 146,742 | $ | 146,742 | ||||||||||||||||
Reimbursed out-of-pocket engagement expenses |
7,620 | 7,620 | 6,158 | 6,158 | ||||||||||||||||||||
Total revenue |
194,109 | 194,109 | 152,900 | 152,900 | ||||||||||||||||||||
Compensation and benefits |
126,088 | 126,088 | 102,654 | 102,654 | ||||||||||||||||||||
General and administrative expenses |
31,534 | 31,534 | 31,635 | 31,635 | ||||||||||||||||||||
Out-of-pocket engagement expenses |
12,756 | 12,756 | 9,837 | 9,837 | ||||||||||||||||||||
Depreciation and amortization |
3,239 | 3,239 | 2,755 | 2,755 | ||||||||||||||||||||
Restructuring reductions, net |
| | | (364 | ) | 364 | | |||||||||||||||||
Total operating expenses |
173,617 | | 173,617 | 146,517 | 364 | 146,881 | ||||||||||||||||||
Operating income |
20,492 | | 20,492 | 6,383 | (364 | ) | 6,019 | |||||||||||||||||
Interest and other income, net |
1,547 | 1,547 | 893 | 893 | ||||||||||||||||||||
Income before provision (benefit) for income taxes
and equity in earnings of unconsolidated subsidiaries |
22,039 | | 22,039 | 7,276 | (364 | ) | 6,912 | |||||||||||||||||
Income tax provision (benefit) (1) (2) |
8,598 | | 8,598 | (244 | ) | 2,698 | 2,454 | |||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net |
534 | 534 | 390 | 390 | ||||||||||||||||||||
Net income |
$ | 13,975 | $ | | $ | 13,975 | $ | 7,910 | $ | (3,062 | ) | $ | 4,848 | |||||||||||
Earnings per common share: |
||||||||||||||||||||||||
Basic |
$ | 0.31 | $ | 0.31 | $ | 0.18 | $ | 0.11 | ||||||||||||||||
Diluted |
$ | 0.30 | $ | 0.30 | $ | 0.17 | $ | 0.11 | ||||||||||||||||
Weighted-average common shares outstanding: |
||||||||||||||||||||||||
Basic |
45,349 | 45,349 | 44,622 | 44,622 | ||||||||||||||||||||
Diluted |
46,720 | 46,720 | 45,811 | 45,811 | ||||||||||||||||||||
Explanation of Non-GAAP Adjustments | ||
(1) | Calculated using an annual effective tax rate of 39% and 36%, adjusted for the three months ended January 31, 2011 and 2010, respectively. | |
(2) | The three months ended January 31, 2010 includes reversal of a reserve previously taken against an uncertain tax position and an increased valuation allowance related to cash repatriations and foreign tax credits. |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
January 31, 2011 | January 31, 2010 | |||||||||||||||||||||||
As Reported | Adjustments | As Adjusted | As Reported | Adjustments | As Adjusted | |||||||||||||||||||
Fee revenue |
$ | 546,951 | $ | 546,951 | $ | 403,690 | $ | 403,690 | ||||||||||||||||
Reimbursed out-of-pocket engagement expenses |
23,524 | 23,524 | 19,054 | 19,054 | ||||||||||||||||||||
Total revenue |
570,475 | 570,475 | 422,744 | 422,744 | ||||||||||||||||||||
Compensation and benefits |
373,851 | 373,851 | 295,115 | 295,115 | ||||||||||||||||||||
General and administrative expenses |
87,512 | 87,512 | 86,853 | 86,853 | ||||||||||||||||||||
Out-of-pocket engagement expenses |
38,092 | 38,092 | 28,090 | 28,090 | ||||||||||||||||||||
Depreciation and amortization |
9,351 | 9,351 | 8,444 | 8,444 | ||||||||||||||||||||
Restructuring charges, net |
2,130 | (2,130 | ) | | 20,593 | (20,593 | ) | | ||||||||||||||||
Total operating expenses |
510,936 | (2,130 | ) | 508,806 | 439,095 | (20,593 | ) | 418,502 | ||||||||||||||||
Operating income (loss) |
59,539 | 2,130 | 61,669 | (16,351 | ) | 20,593 | 4,242 | |||||||||||||||||
Interest and other income, net |
895 | 895 | 5,364 | 5,364 | ||||||||||||||||||||
Income (loss) before provision (benefit) for income taxes
and equity in earnings of unconsolidated subsidiaries |
60,434 | 2,130 | 62,564 | (10,987 | ) | 20,593 | 9,606 | |||||||||||||||||
Income tax provision (benefit) (1) (2) |
23,407 | 821 | 24,228 | (6,730 | ) | 10,140 | 3,410 | |||||||||||||||||
Equity in earnings of unconsolidated subsidiaries, net |
1,508 | 1,508 | 639 | 639 | ||||||||||||||||||||
Net income (loss) |
$ | 38,535 | $ | 1,309 | $ | 39,844 | $ | (3,618 | ) | $ | 10,453 | $ | 6,835 | |||||||||||
Earnings (loss) per common share: |
||||||||||||||||||||||||
Basic |
$ | 0.86 | $ | 0.88 | $ | (0.08 | ) | $ | 0.15 | |||||||||||||||
Diluted |
$ | 0.84 | $ | 0.87 | $ | (0.08 | ) | $ | 0.15 | |||||||||||||||
Weighted-average common shares outstanding: |
||||||||||||||||||||||||
Basic |
45,040 | 45,040 | 44,290 | 44,290 | ||||||||||||||||||||
Diluted |
46,026 | 46,026 | 44,290 | 45,209 | ||||||||||||||||||||
Explanation of Non-GAAP Adjustments | ||
(1) | Calculated using an annual effective tax rate of 39% and 36%, adjusted for the nine months ended January 31, 2011 and 2010, respectively. | |
(2) | The nine months ended January 31, 2010 includes reversal of a reserve previously taken against an uncertain tax position and an increased valuation allowance related to cash repatriations and foreign tax credits. |