Welcome, and thank you for standing by. This is the First Quarter Results Conference Call For ManpowerGroup. [Operator Instructions] I will now turn the meeting over to Mr. Jeff Joerres. Sir, you may begin.

Good morning, and welcome to the First Quarter 2013 Conference Call. With me is our Chief Financial Officer, Mike Van Handel. I'll go through the high-level results for the quarter, then Mike will spend some time going through the details of the segments, as well as the forward-looking items for the second quarter and any balance sheet, cash flow, as well as restructuring that occurred in the first quarter. Then I'll discuss the first quarter from a macro perspective. Before moving into the call, I'd like to have Mike read the Safe Harbor language.

Thanks, Jeff. Good morning, everyone. This conference call includes forward-looking statements, which are subject to known and unknown risks and uncertainties. Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements can be found in the company's annual report on Form 10-K and in the other Securities and Exchange Commission filings of the company, which information is incorporated herein by reference. During our call today, we will reference certain non-GAAP financial measures, which we believe provide useful information for investors. We include reconciliation of those measures, where appropriate, to GAAP on the Investor Relations section of our website at manpowergroup.com.

Thanks, Mike. We continue to make progress in our initiative throughout the company, initiatives in revenue, our solutions and recalibration of cost, and the results are coming through. We continue to maintain our focus on price discipline, which is resulting in some stabilization of our gross profit in key markets, while still having more work to do, particularly in Northern Europe. We've doubled our effort in selling, which is needed in these difficult economic conditions. Our revenue of $4.8 billion is a decline of 6.4% in U.S. dollars and minus 5.8% in constant currency, which is at the higher end of our expectation. Revenue in Europe was also slightly ahead of our expectations. As I mentioned earlier, we continue to focus on stabilization in our gross profit, particularly in our 2 largest staffing geographies: the U.S. and France. And in fact, staffing GP in the U.S. is on a -- is up on a year-over-year basis. In Italy, which has had tremendously difficult economic headwinds, we are experiencing additional pricing pressures. However, we have been able to fight that off by continued diversification of our business and strong expense management. Our operating profit of $89 million before restructuring charge was down 5% in the U.S. and 3% in constant currency. We also had the benefit of some tax credits, which Mike will touch upon in his remarks. In Europe, great progress was made in the first quarter despite the continued headwinds, and we expect further progress in the second quarter. Our anticipated earnings per share for the second quarter is $0.84 to $0.92 per share before restructuring charges. And now for additional information regarding the segments, I'd like to turn it over to Mike.

Thanks, Jeff. There are a number of unique items impacting the quarter, so I'll start my discussion with a review of those items, followed by a discussion of segment performance, a review of the balance sheet and, finally, a review of our outlook for the second quarter. Earnings per share before restructuring charge was $0.63 in the quarter compared to a forecasted range of $0.40 to $0.48 per share. In comparing the midpoint of our forecast to reported results, our operational performance was $0.17 better than expected. This better-than-expected performance was the result of greater expense reduction than anticipated across many of our businesses, slightly better revenue than expected in Southern Europe and tax credits earned in France for employing eligible workers making less than 2.5x the minimum wage. The currency impact in the quarter was a negative $0.01 compared to a flat forecast, as currencies in a few markets, such as Japan, were weaker than anticipated. Our income tax rate came in at 44.3%. As I mentioned last quarter, this first quarter tax provision includes a benefit of $6.8 million related to the 2012 U.S. workers opportunity tax credit. This 2012 credit was recognized in January of this year as the related tax bill was not signed until January of 2013. Congress also signed into law this tax credit for 2013, and therefore, we are recognizing the 2013 tax credit on a current basis as we make our way through the year. Our tax rate before restructuring charges came in lower than expected at 36.6% compared to our forecast of 41%. This added an additional $0.03 of earnings above our forecast. This results in earnings before restructuring charges of $0.63 per share and $0.31 per share after deducting the $0.32 of restructuring charges. These restructuring charges are important to…

Thanks, Mike. The first quarter was a quarter that was not unexpectedly difficult. It challenged us in many ways. However, the plans that we put in place, the way we had started our cost recalibration and our efforts on pricing and gross margin helped us considerably to achieve a better-than-anticipated operating profit and earnings per share excluding restructuring charges. Clearly, we had economic challenges throughout the euro area and tepid trends in other parts of the world. Despite this, we achieved hard-fought revenue of $4.8 billion for the first quarter, down 6% in constant currency. As Mike spoke about, our recalibration of expenses contributed nicely to the first quarter results, which is a seasonally small quarter, therefore difficult for us to gain any type of leverage. In total, Northern Europe and Southern Europe combined, our revenue was $3 billion, down 7%. One of the biggest declines came from France, with revenues down in constant currency 12%. Italy did very well in the market, down 4%, which is a tremendous accomplishment given the environment. Even more impressive is the expense management in Italy, which is needed as we are seeing some classical pricing challenges given that the economy is in such a difficult position. The U.S., which came in at $706 million, was down 4%, with improving trends in gross profit. This includes both Manpower and Experis as both are being disciplined, not only in pricing but also in being selective in taking on new accounts. Our Solutions business, which is an important part of our diversification strategy and driver of value to our clients, moved nicely, along with RPO wins in the quarter of 23, which stacks up nicely over last year, and our MSP business continues to move forward with over $7 billion of annualized spend under management. Within…

[Operator Instructions] It looks like our first question is from Andrew Steinerman of JPMorgan. Andrew C. Steinerman - JP Morgan Chase & Co, Research Division: Jeff and Mike, really loved the increased details on the simplification plan, and I realize the simplification at ManpowerGroup is many things. I wanted to know how much of the costs and the core of the simplification plan is around just larger but fewer offices? And in which geography do these kind of larger but fewer offices with all the efficiencies that you're talking about make the most sense?

It's a good question, and clearly, as we broke up simplification into 4 areas, one of the areas is delivery. And particularly in Europe, in major cities, we've been able to do some consolidation. These consolidations have -- are not something new, though we accelerated after kind of testing about what happens to revenue or how do we make coverage. So we are seeing some of that. The delivery part of simplification and trying to get some of, what we would call, these larger Metro offices really is staged a little bit further out as we move through this year. The majority of the simplification has really been just making sure that global, regional and national home offices are all in sync so that we're not having duplications. So Mike, I don't know if you have the exact count on the office side, but it's really not dramatic at this point.

Yes, we're certainly consolidating some and some into bigger markets. I think the important play is we're not exiting markets overall. But if you look at since the end of last quarter to the end of this quarter, somewhere in the ballpark of 100 offices or so. Andrew C. Steinerman - JP Morgan Chase & Co, Research Division: Right. And when do you think -- until year end -- is office consolidation a big theme until year end?

As you figure out -- as you go through the entire year, you would not be seeing this happening every quarter, this kind of environment, though you will be seeing it continue to happen. But as we roll out through the year, we're going to take each Metro large city at a time and figure out how we can consolidate. Some European cities have a little bit more, there's some U.S. cities that have a little bit more, and we'll continue to work on that. Andrew C. Steinerman - JP Morgan Chase & Co, Research Division: And last clarification. When you talk about the $125 million target for SG&A by year end, you feel like these are efficiency initiatives where that SG&A is not going to come roaring back when revenues rise, right?

It's a really good question, and we've been very careful to talk about it as a recalibration. This is not a -- there's no travel freeze, there's no mandate for splitting sandwiches at lunch time. None of those things. This is about how can we do business differently. We put a lot of thought into the organization. That doesn't mean things won't come back, because we may need more sales people in our global sales function, we may need a few more people in different areas. But this was meant to be permanent, and while we can't say 100% of it is permanent, the intent is this was operating differently, creating that collaborative model, which we talked about 4 -- 3 quarters ago and really making sure that we're forcing a much better use of our resources.

And the whole idea, Andrew, is as -- there are going to be growth opportunities, and we're going to take advantage of those. But the whole idea is to drive the efficiency into the organization and use that efficiency to take costs out and reinvest where we need to in growth. But I feel very good about the $125 million, that, that is costs that are coming out because we're doing things differently. And we may get more costs out over and above that, that's costs that may come in. But this -- come back a little bit quicker, but this is costs where we are -- it's a true recalibration.

And to add to that, there was no mandate that said we are -- everybody needs to take out 8%, 10%, 12%. That is not how we did it. We did it from a bottoms-up environment that said, "All right, how do we look at benchmarks? How do we get more efficient? Where is there overlap?" and then we targeted each of the areas with a dollar amount based on that analysis, and that's what we're running after. And that's why we have much more confidence in it being able to [Technical Difficulty]

Your next question is Gary Bisbee of Barclays.

I thought it was interesting to hear you guys say that you don't plan to pass on the savings from the French tax situation to clients. I guess, given the competitive nature of the business and, I think, a history of much more good and bad changes being passed on, how do you think -- how are the competitors handling this? Do you think that's going to be a competitive disadvantage? Or do you have a sense that, since a lot of the cash comes later, it's not going to really change the dynamic there?

It's a great question, and it's one that, of course, we don't have an exact answer. But we do know that our view is we're not going to give the CICE as a passthrough to the clients, and that really was not the intent of the CICE. So when we look at it, we say, "You know what, that's just not what it's for. And therefore, we shouldn't be doing that." At the same time, when you look at market pressures and what might be happening in small, medium-sized businesses, and as that price pressure that we're fighting out in the marketplace because there is a slight difference in maybe the margin if you put the CICE, and then that starts to erode, clearly, that could happen. But when we're looking at it and saying, "Wait, we've got a request to return CICE," which is technically you really can't do. We're saying, "Wait, that's not what the intent of it was." So do we see this kind of drifting over time because the market has pricing pressures and very competitive? I would say, yes, we see that. But as we're going into this right now, we're looking at it and saying, "Wait, that's not the intent of it, we don't intend to do that and we'll stay very close to the market. We'll monitor the market, we'll monitor pricing pressures." But when we look at this from an industry perspective, the intent of the industry is, "No, that isn't what we're supposed to be doing with this. We're looking at what we can do with additional training centers, how we can get people more work-ready. We don't have the cash yet for this." So it's very complicated, so we're giving it our best attempt, and we'll continue to monitor. But our view is, no, the intent is not, but we might see some drifting over time.

Okay, great. And then a follow-up question. I understand all the reasons that the U.S. business has declined and, I guess, hearing that gross profit is doing really well as a result of that discipline is certainly a good sign. But how should we think about what's now been 18 months of moderate revenue declines in a market that's had mid single-digits or better growth? And at what point does this business get back on track despite the discipline that's probably causing a lot of that?

Well, I think your view is -- it definitely has some accuracy in it, is that you've got to create the right kind of balance between how do you get those price discipline and, at the same time, make sure that you're not slipping out from a market competitiveness perspective. There were a few large accounts that have kind of done that and that made a difference. Also, if you look at what was achieved in '10 and '11, we far exceeded the market, so it sometimes has a kind of a wave effect. But no doubt, we're looking for this year to start picking that up and becoming more close to market. But what I don't want to do is to unleash the discipline that we created within the organization. That's one of the bigger challenges.

And I think as you look at that -- yes, but you obviously have 2 components within the U.S. You've got the Manpower piece and the Experis piece. And both of them have different things underneath the covers. But I think with Experis, we've talked about it, we are seeing a little bit weaker demand from some of our key accounts, and we've had some significant declines within some of the key account usage within there. That really is what's happening in the marketplace. Meanwhile, our SMB business is still growing quite nicely, still growing at a rate of about 7% on the IT side within Experis in the U.S. So we're seeing growth there. It is a little bit above the book of our business. Understand, we don't use that as an excuse, but we clearly are -- we've been focused on the pricing side but clearly are also looking for revenue opportunities. And we've seen some improvement in that this quarter, but I think we still have a ways to go on that and keep the growth engine going.

Our next question is from Kevin McVeigh of Macquarie.

Mike or Jeff, how much did the price actions impact revenue in the quarter? In terms of just being disciplined, how much revenue would you have rationalized, or how much more would you have had if not for kind of the discipline on the top line?

Yes, that's a really hard one because what we have done is, given the environment, we have not been as aggressive in jettisoning clients, while we will still do a little of that. We've just been much more disciplined on what we would be taking on. So when you look at a $50 million or a $10 million or a $25 million opportunity, and we decided to walk away for a GP point, that does have an effect. It's pretty hard to keep track of that in the exact terms. I could say, if I kind of unleashed the team out there, we could pick up several hundreds of millions of dollars in business in the next 2, 3 months because we just wouldn't pass on those accounts. And we're going to be selective on that, and we've worked really hard for price discipline. But clearly, it would be easy to think about 2% to 3%, maybe 4% that we could pick up if we really loosened up on our discipline.

That's helpful. And then Mike, on the $80 million in targeted P&L savings coming in, given the success you had in quarter 1, how should we think about that kind of coming in over the course of the year? Is it still kind of Q1 versus Q2 or 3, any sense -- and whether it will be more than $80 million just given how nice the Q1 outcome was?

Yes, I think we are in front of our plan in terms of some of the simplification actions that we've been taking. And some of what we had seen in Q2, we were able to move into Q1, and some of what's in Q3, we moved up into Q2. So when I look at it from a run-rate basis, that $125 million, I think, looks very solid. And I do think, with that $125 million, we're talking about $80 million of savings within the year in terms of P&L savings. I do think that it's going to be in excess of that. I'm not prepared to give you a specific number, but I do think it's going to be well in excess of that.

Sara Gubins of Bank of America Merrill Lynch.

Just a follow-up on that last question about the $80 million plus in cost savings. To be simplistic, is it reasonable to think that we should see your SG&A, excluding various charges, down $80 million in 2013 versus 2012? Or are there enough other areas where you're growing that we wouldn't see it down that much?

No, I think you'll see it down that much. In the first quarter itself, we're down 6.6% in constant currency, which is about $50 million. So I think as we look at the year, we would expect it's going to be down at least that. There are other cost reduction efforts that may not deal specifically with restructuring actions, per se. So I think you can pretty much count on that unless we get some big tailwind that comes through in the end of the year that pushes things. But I don't see that happening yet from a revenue standpoint. And even then, I don't see us adding costs back in that quickly at all. I think, as we said earlier, there's a recalibration as these costs are coming out, and so you can expect to see at least that for the year.

Okay, great. And then on the corporate tax rate, so 32% excluding the adjustments around France. You mentioned the tax credit in your prepared remarks. Is that what drives it down? That's a really nice boost versus your prior tax rate. And so I'm wondering, should we consider the underlying 32% to be the new normal for the rest of 2013 and beyond?

Yes, so from -- as you look at 2013, I would expect a little bit lower tax or underlying tax rate. You've got the -- the complication in our tax rate is you have this French business tax that now, under U.S. GAAP, is classified as an income tax provision, even though it has nothing to do with pretax earnings. So that usually adds about 10% for our overall rates. So as you look at the rate on a full year basis, I'd be thinking somewhere in the range of maybe 42% to 44%, with the underlying rate without the business tax in the low 30s, maybe 32% to 34%. So the business tax adds about 10% at the given -- overall given tax levels. In the quarter, just to be sure that I'm clear on that, part of what was beneficial in the quarter was $6.8 million of worker opportunity tax credit in the U.S. that related to 2012. So there's a onetime help in the quarter of that amount. That was anticipated in my guidance and in the forecast that we talked about. So that was in there, but that does bring the rate down. But there was -- even then, the rate was a little bit lower than we expected, and that added an incremental $0.03 to our earnings this quarter that was not in the guidance. And so hopefully, that all pieces together for you.

Great. And then just a last quick question. In France, the tax credit that you're getting, I know it's retroactive for the beginning of 2013. Is the law now a done deal passed by Parliament and signed in? Or are we still waiting for that to be finalized?

Yes, the law has been passed. It is a matter of -- oftentimes, once the law is passed, there are rules around the law and some clarifications. And so there is still work being done associated with the law and clarifications around specifics related to the law, but the law has passed and so that is set.

Paul Ginocchio of Deutsche Bank.

Just a quick question on France. You'd been sort of running ahead of the market. Now, it looks you're much closer to the market. Should we assume sort of the market share gains that we've seen over the last year are over? And then second, as we look -- sort of somewhat related, as we look into the second quarter, it looks like, on an average daily basis, your constant currency rev declines will be sort of 3% to -- sort of 4% to 6%. And I think if you adjust the fourth -- first quarter for an average daily basis, more like minus 4%. So it looks like somewhat of a deceleration. Could you point out what markets do you think may decelerate, or is that some kind of impact from the cost-cutting program?

Sure. In terms of overall market share, I think, as we looked at the quarter, I think the gap probably did close a little bit. I think overall, the market has been fairly stable through -- if you look at the last several months, it's been bouncing around, from our perspective, down 11%, 12%, something like that overall, and -- but it's been pretty stable. From a market share standpoint, there are different mixes of business in terms of where we're located and where others are located. And is that gap between us and market closing a little bit? It could be. It appears to be tightening a little bit. And it's one of those things where we've been ahead of the market for the last like 2 years or so. Can we sustain that on a long-term basis? I'm not sure that, that's practical. But we still see good opportunities, even in a tough market there, and we'll continue to drive for good growth within the market.

And I would add, we have not at this point, and sometimes it's hard to really ascertain, but we've not seen a reduction in revenue or revenue growth based on what we are doing with recalibration. We continue to monitor that. That clearly is one of the risks that we've highlighted to ourselves to make sure that as we go through this, we really keep our faces and bodies and minds and hearts out in front of the clients and prospects. But we do not feel as though that's any part of what's happening in the French organization.

I guess that question was overall. And are my calcs right? On an average daily basis, more like minus 4% in the first quarter going to...

Yes, then when you get the -- on an average daily basis, if you just look at where we came in the first quarter, we were down about 4%, that's correct. And the midpoint of our guidance in Q2 is down about 5%. And a little bit of that is just rounding. I don't think we're looking for a full percentage point down. And when I go -- actually go market by market, the major markets, the U.S., we're expecting similar average daily revenue in Q2 versus Q1; France, we're expecting similar. Some -- a few of the smaller markets may be just a touch weaker, but we're not really -- as I think about the second quarter, we're not really expecting things to soften further. I think you've got a little bit of rounding in the numbers. But we're pretty much looking at it as kind of running the same and maybe just a touch down in a couple of markets, but not -- but the key markets, we're pretty much calling for the same. But your math is very precise, Paul, so thanks for that.

Our next question is from Tim McHugh of William Blair & Company. Timothy McHugh - William Blair & Company L.L.C., Research Division: Can you give us a sense for the CICE roughly from, at least, from an accounting perspective how much that is impacting the profitability of France, at least as of right now?

Yes, I think one of the things with the CICE, Tim, is that it is very competitive information, very market-sensitive information. So while, as you know, we like to be transparent and break out all of the components, that's one component we're not going to break out, just for competitive reasons. So clearly, as you look at France and Southern Europe, you certainly can see that there is some positive impact coming through there and some positive impact overall. What I would say is, without CICE, we still would've exceeded the high end of the range of our guidance. And so there were a number of other positive things in the quarter, but certainly, that did add too as well. Timothy McHugh - William Blair & Company L.L.C., Research Division: Okay. And then can you also give a little more color on revenue given the tough environment from an economic perspective? And then you also mentioned pricing pressure. The fact that the revenue growth rate there has kind of shown some signs of -- or the pace of decline has moderated pretty significantly in the last 2 quarters, how are you -- or what are you diversifying into? And how are you kind of overcoming those things?

Well, there's a couple of things. And let's -- I assume you're speaking specifically about Southern Europe and some of the European entities. Timothy McHugh - William Blair & Company L.L.C., Research Division: Yes.

Yes. well, what's really interesting is that there's a few things that are occurring. One is, is this is not a drop off the cliff, which we've been talking about for some time. So it's not a complete shutdown. This is just a very slow, painful workout that's happening there. In addition to that, in both Italy and France, there have been, which we had talked about, some legislation beyond CICE that has been helpful, where you had fixed-term contracts, short-term contracts, which are not temporary help contracts, that are taxed differently. So we're also seeing that there might be a little bit of movement more towards temporary help because of the way the law works and the taxation works. It doesn't give us an advantage, it gives us less of a disadvantage, is the way that it has worked. Additionally, all companies are running as thin as they possibly can because they're concerned about the uncertainty. So anytime there is a bump in demand, their first place is to go to us. And that's why we're seeing the kind of moderation, particularly if you look at the revenue declines in Italy, which are really going through some very difficult economic times, as well as political times. But companies are still doing business, and when they do it and if there's any demand there, they're using us. And I really believe that's where we're seeing our ability to kind of get this almost stabilization. I'm not sure if I'd call it that, but not as dramatic drop as we've seen in the past. Timothy McHugh - William Blair & Company L.L.C., Research Division: Okay, great. And one last one. Mike, you talked about middle of this year, you might just repay the existing -- or the EUR 250 million note. Is that a change in the balance sheet structure? I mean, I guess that you're bringing down the absolute amount of debt, and should we model it that way or will you probably just use the credit facility and we should assume it's just the, I guess, where the debt falls on the -- out there in the capital structure?

Yes, I think it will be a refinance with available cash and euro -- and revolver, excuse me. So when we look at that, we'll see where we are from an overall cash standpoint. At quarter end, we had cash on the balance sheet of $583 million. Not all of that is what I would call available cash. It's kind of -- some of it is structural in nature, as we just closed out the accounts at quarter end. But there probably is something, at least $150 million of available cash there, and to the extent that we don't have enough available cash, we will supplement that with revolver borrowings at this point. Timothy McHugh - William Blair & Company L.L.C., Research Division: But you'd be looking to bring the debt down, I guess, and given the cost of debt, would you -- I mean, why not acquisitions or repurchases or something like that?

Well, I think the balance sheet is strong. I think we do have capacity for that, and that's something we'll continue to look at. But obviously, we're not going to chase an acquisition just because we have availability, either. But if there's the right opportunity that comes up, I think that's one of the advantages of how we're structured here, is we do have the capacity to take advantage of those opportunities when they present themselves. So we're extremely well positioned. A little bit of leverage on the balance sheet, but we certainly have more capacity for debt if we need to. And one of the things we do think about as well is we do like to maintain an overall investment-grade rating. So we always leave our -- look at our capital structure in the context of that. And in that context, we would have some capacity, as well as -- particularly as we pay down some of this available or this outstanding debt coming up in June.

Our next question is from Jeff Silber, BMO Capital Markets.

I wanted to look out a little bit beyond the next quarter, and I know this may depend on region and major city, but when you start to get top line growth back, is there a certain level of growth that would cause you to maybe open up some offices or add to your footprint again?

Well, we are opening offices throughout the world. We're opening offices in some places in South America. We're opening some offices in Southeast Asia. So this isn't about closing offices to save money. This is our ability of what we've done with some technology, how we can do some recruiting on a centralized basis, not leave that market. Where we are looking at, we are not abandoning any markets in our office consolidation because of our ability to use some of the technology. So there are some opportunities in a few countries where some offices may be the answer. We've looked at some more offices in China, and we've looked at some in South America, and we're opening those. So clearly, where we're looking at some of the mature markets where technology, transportation and others would allow us not to have 10 offices in 1 city in Europe where you could do that with 3 larger offices, that's not abandoning. That's just getting quite efficient and actually serving the client in a much more effective way and getting much more efficient from a cost perspective on how to do acquisition of temporaries.

And I think to that point, Jeff, in those more developed markets, as growth comes there, we probably don't need to add offices in those markets, for the most part. So yes, some of the newer markets, newer opportunities, yes, we will as growth comes in. But I think as we -- we can go to a more efficient structure in some of these more developed markets. And as growth comes in, in those markets, we likely will not need to add incremental offices there.

Okay, great, that's helpful. And then shifting gears a bit. I know this was an issue a bit last quarter, but in terms of the impact of ObamaCare in the U.S., now you've got another quarter of experience, are you seeing any of your smaller clients reaching out to you to use your services as a way of complying with the laws or maybe avoiding the laws?

Well, mostly what we are seeing is ways in which they can comply with the law. There's lots of confusion, lots of unanswered questions in their mind, and we're doing a lot of time and spending a lot of time working with them about what the law really means and how they can use maybe the seasonality of seasonal workers that might be under 30 hours. We are not interested in at all trying to maintain or have a company stay under 50 by using us. That's not the intent. The IRS is not interested in that, and they are looking for those where that's happening. So we see it as a slight positive incremental to the business, but right now, the conversations are quite interesting where they're, in many cases, not even the very small ones, but the mediums are saying, "Why don't you just take my summer programs? Why don't you just take my seasonal programs that I may have managed in the past because I just don't want to -- I want to make sure I'm not making a mistake and I don't know how to do all of the paperwork and the logistics." In other cases, that may end up just being a passthrough to them because we're going to be paying for the insurance of that person, and we really do believe this is a passthrough. So conversations are good. Opportunity is marginally on the upside, but we still have a ways to see how this will shake out.

Our next question is from Tobey Sommer of SunTrust.

Could you comment on what you think the incremental costs to the firm are related to the ACA? And then regarding IT, among the large clients, do you think your experience is reflective of the market, or were you just kind of overweight those large clients in IT and, therefore, kind of getting the brunt of the change in demand there?

We were overweighted in financials and IT. And we were doing an awful lot of back office consolidation as consolidation was happening. And that has run off, not entirely, but it's run off. We've also had one large pharma company we were doing some work with, and that's run off. So I think our book of business, which is where we gained a tremendous amount of opportunity in '10 and '11, outperformed the market dramatically. We had a little bit of setback in '12 as a result. So I would say that I'm not sure if I would put it up to a generalized overall trend, though as Mike had said, we are seeing just a slight left demand overall for IT as companies are being, again, hesitant and very prudent in how they're looking at the business. Switching over to Affordable Health Care, we've got multiple scenarios of if -- this is how much it would cost, how do we pass it through, what's happening to our own employee base, how do we do it penalty versus the offering. So our view right now is we're going to do it the most efficient way that we can while still delivering that great experience that we want from our client. But that also means that we're going to work very hard, like we do for SUTA, and pass this through. This is a passthrough cost. And I'm very hopeful that others in the industry are taking the same view. Though sometimes, the smaller players may not have the same vigor to make sure that the margin erosion doesn't go down too much, especially since we've worked so hard to get it back up and have an upward trend. So we've got multiple scenarios, but until triggers are pulled and companies are making decisions and we're seeing how this works, we can't quite get the true effect. But clearly, it's in the tens of millions of dollars of what the cost would be, and our view, again, is that, that's going to be passthrough.

The next question is from John Healy of Northcoast Research.

Mike, I had a question about the progress you're making on the cost recalibration. I was wondering if you could just update us in terms of how much progress you've made towards the $125 million goal, maybe quarter to date? And how much of that actually flowed through to the P&L in terms of cost savings this quarter?

Sure. So if you take last quarter, our restructuring charge, about $26 million. We expected to get about $52 million of that. And $13 million of that was expected to hit already in the first quarter. So that did come in and did come through in the first quarter overall. And then we had the restructuring charge that we took this quarter as well, and there was somewhere in the ballpark of $4 million or $5 million that came through on that as well. So I think as you look at that, the 2 charges -- so you have the $52 million already laid out, we've taken a charge this quarter of about $35 million. That charge should result in something on the neighborhood of $45 million of savings that's already starting to phase through that will phase through, through the balance of the year. So you can see that it's starting to come through and starting to have an impact overall.

And so is it realistic to think that if you had $13 million from previous actions benefit in the first quarter plus $4 million or $5 million you might have gotten from the actions that you did in the first quarter, maybe something like $20 million to $25 million in P&L benefits in 2Q? Is that how we should think about it?

Yes, I think that's the range I would be thinking about.

Okay. And just -- and the confidence that you guys are portraying relating to the realignment efforts, what part of the strategy, I think you guys talked about the 4 points to it, are you finding the most upside, are you finding the most success early on with?

Well, there's stage to cross, and this is one of the things that we're trying to really focus within the company, is to stay agile. We talk about it to our clients, and we have to stay agile. We started first at the headquarters and really tried to make sure that there weren't redundancies, and that's all been taken care of. And anytime you do this, I don't want to portray it, this is tough stuff, but we really fought through it so that it is a recalibration and it is driving the right way. So I would say that when we get into delivery channels and how we are managing some of those delivery channels, that's the sacred part because it's about the revenue and really making sure that our brand and what it represents, whether it be Experis or whether it be Right Management or Manpower, to the client. So I would say that the team here has done extraordinarily well; the team in Northern Europe, extraordinarily well. Those guys have just really done some incredible things. And then when you look at what we're able to do in Southern Europe, particularly France and Italy, which have different laws associated with it, we're really looking at a lot of nonpersonnel costs and how we can get better at it. So the team has been very focused. I'm very proud of what they're able to do. There's been some very difficult challenges, but it's a resilient organization. And without sounding trite, there's people who really love this company, and they know that we want to get out in front of some of these economic challenges and get to where we should be from a return perspective.

Mark Marcon, Robert W. Baird. Mark S. Marcon - Robert W. Baird & Co. Incorporated, Research Division: You partially answered this question in the prior response. But just wanted to get a sense for how are you monitoring the engagement level within the organization with all these changes that are coming through? Certainly, you've made some big cuts to the executive leadership, and those are people that have been around for quite a while. So just wondering about the morale across the board?

Well, clearly, anytime you do this, there are some real soft spots, and I really appreciate that because we've asked people who are very engaged in the company to leave. I could say at the senior levels, that people who have left the organization, I have conversations with them every week where they're talking about their plans and how excited they are and how thankful they are for what we've been able to do together over decades, in some cases. And I and others are assisting them in what will be, I'm sure, phenomenal careers for them. We were able to explain very well to many of the people in the IT functions and sales functions and how we're dropping it. So we do spot market and spot surveys, and those spot surveys are showing that there is some angst in some areas, just to make sure we're getting everything covered. And then there's some really energy, where people are saying, "This whole simplification is great because I didn't want to sit on a conference call listening to something really important, but it took 2 hours. I wanted to go make 2 sales calls." So you get both side. I'm spending a much more time in the field, I'm meeting with many more clients, a lot more town hall meetings. And there's very good questions, but there is good confidence that while this is difficult, it's the right thing to do. And I would also say, and I said it in my internal message that went out this morning to all of the team across the world, is if we wouldn't have done this beginning in the third and fourth quarter, our results for this quarter would have put pressures on us, that we would've then been forced to do things that were not as clever, not as sustainable, not as longitudinal in look, and that's always been the hallmark of what we do, is to do things that are the right things to do over a long period of time. And I believe people are getting it and understand it. But then there are some that are disturbed because they want to be part of the team as we go forward. Mark S. Marcon - Robert W. Baird & Co. Incorporated, Research Division: Great, I appreciate the color. And then with regards to the taxes, this is a little bit of a detail question. But could you -- I got several e-mails from clients that were trying to understand the various benefits from the changes, both from the CICE as well as the WOTC from 2 perspectives. Just what was the total amount for each? And then what was baked into the plan relative to what exceeded estimates?

Right. So 2 pieces in there, and 2 very different types of tax credits. The tax credits related to the CICE impact direct costs and, therefore, flow in through the gross profit margin. And so we had anticipated some benefit coming through in the quarter, that was in our guidance, but the benefit ended up being larger than we expected. As I mentioned earlier, Mark, we view that as very sensitive competitive information, so we're not going to break out the specific amount on that. The other piece is the WOTC tax, which goes into the tax provision. That was $6.8 million of credit, and that related to 2012. And again, the reason it fell in the first quarter of 2013 is because the bill was effectively signed in January of 2013. That's a credit we get every year. And so it just so happened that it took them a whole year to get it signed into place. The good news is they signed it in 2013 in January, so we're accruing currently in January. So -- but it did bring down our overall tax rate in the first quarter as a result. And again, that WOTC credit was in our guidance because we were aware that, that was coming through.

So partial CICE, some of CICE and some of WOTC was in some of our overlooking, right. Mark S. Marcon - Robert W. Baird & Co. Incorporated, Research Division: Okay. Without breaking out the CICE specifically, can you just say what the total benefit from the tax credits were?

I think that's kind of hard to do, Mark. I mean...

Well, or it might give you -- all you have to do is solve for x. So we know how and where you're going, Mark, so. Okay. One more do you have, Mark? Mark S. Marcon - Robert W. Baird & Co. Incorporated, Research Division: All right. Yes, one more. Just in France, did you say that you're going to put in place a kind of a bench model in France?

Well, actually, is the -- and Mike can add some color to this also, there's things going on in the labor reform that are in France. And the CICE is just -- is really not that. That's really more of a stimulus program. There's other labor reform in there, which I had talked about, which gives us some positive secular trends, and I did that in my prepared remarks, also in Italy. So fixed-term contracts and short-term contracts that are used by companies are taxed differently, in other words, taxed higher. So it makes it better, maybe, to go towards. So that's one part of it. The other part within that law was that the temporary help companies now have some obligation, based on the right kinds of skills, is to build out a bench. And we think in our Experis business and some of our higher-end labeled business within Manpower, as we build out that bench with some of those key skills, that allows us to be more valuable to our client. We know how to do bench because we do bench in Germany, we do bench in Sweden and others. So that was part of that labor reform that came out before. So there's the labor reform and the CICE, which are 2 different things. All right. Well, we apologize for our communication challenges. So thanks for spending an extra 15, 20 minutes on the phone, and we'll be talking to you in the next quarter or sooner. Thanks.

This concludes today's conference. You may disconnect at this time. Thank you.