Question-and-Answer Session
Operator
Thank you. And this time, we're ready for the question-and-answer session. (Operator instructions). Our first question, Kevin McVeigh with Credit Suisse. Your line is open.
Kevin McVeigh – Credit Suisse
Great, thank you. Hi, nice job in the quarter, and obviously a pretty tough environment. I wanted to if possible just try to understand the great job containing one of the HR contracts, I just wanted to understand number one, the cash flow impact in the quarter, I know we're talking about somewhere around $40 million in 2009 what the actual cash flow impact was and then just the revenue associated with that? And I have got a couple of different questions here but I just want to understand, I know we talked on the potentially $250 million charge, how those will kind of a, how actual results came payment relative to expectations?
Earl Shanks
Okay, so a few different questions, Kevin, if I don't get all of them (inaudible). Let me start with the cash flow piece of it. There is really two pieces that were discrete relative to HR management in the quarter. We had about $12 million of net deferred charges i.e. things we spent during the quarter, think of that as clean up of continued implementation just based on the timing of the shift we made in that. That was about $12 million there.
We also saw a reasonably meaningful reduction in our payables related to that, so those two factors together probably maybe about the same size of each, but it had a meaningful impact on the cash flow in the quarter. So I feel pretty good about where we are going for the year and obviously have a lot of confidence in our forecast for the cash flow for the year of 165 to 185 plus the 40. But in the third quarter we did have a couple of moving pieces to deal with.
As to what happened with the charge, as you said, there were a lot of moving pieces around this one. Because we reached a resolution with the client, besides the charge part of it, besides writing off the deferred charges that were on the balance sheet, we also recognized the deferred revenue. We only could recognize that deferred revenue because of the fact that we had reached the agreement with the client. So that was kind of a hand in glove thing. We knew revenue was out there, and we expect that we recognized it some point, but the timing of that revenue recognition was just a function of the agreement we reach with the client and the charges were obviously for what I've described earlier.
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