You know, a revenue decline, I mean, I’m certainly not seeing anything resembling that. Whether or not it follows, I mean, what we saw during the quarter were there were small pockets, particularly places like the U.K. that seemed to be a mirror reflection of what is going on in the U.S. You know, going through the bursting of a real estate bubble, heavy reliance on financial markets as part of the economy. What we found striking and continuing through today is how resilient and the growth in the other parts of Europe, so emerging parts of Europe obviously, Eastern Europe, Russia, but a lot of Russia was -- a lot of Europe was particularly strong during the quarter and doesn’t show signs. I mean, we are obviously being cautious. We are monitoring the situation closely but we are not actually seeing that.

It’s one of the things that’s truthfully a little bit puzzling as we try to parse what went on during the quarter. The same thing in parts of Asia -- there’s parts that are really strong. Other parts are showing signs of weakness and patterns are not exactly clear yet.

Michael Olson - Piper Jaffray

All right, thanks.

Operator

Next question comes from the line of Ross MacMillan with Jefferies. Please proceed.

Ross MacMillan – Jefferies & Co.

Thanks. Quite a few have been answered here but maybe just on the other income line -- that’s obviously gone negative I presume because of the hedging strategy, so should we assume that because of the hedging costs, you are going to have negative interest and other income over the next few quarters?

Carl Bass

I wouldn’t presume that. Sue, do you want to --

Sue Pirri

No, I don’t think that you should -- there was -- some of this was -- some of the loss there was from hedging and some was from the re-valuation of the balance sheet due to FX. So I think as we see -- it’s going to be mostly because of the balance sheet re-valuations related to currency and that will cause the fluctuation more than anything about the hedging strategy necessarily.

Carl Bass

The announcement on the hedging is relatively small and will be small regardless, given the kind of conservatism of our hedging strategy and so it will always be dwarfed by the other things.

Sue Pirri

And certainly the volatility in the currency rates in the last quarter was higher than we’ve seen in a long time and made the cost of the hedges fluctuate quite wildly and hopefully we won’t see that in the future.

Ross MacMillan – Jefferies & Co.

Okay, and then just on the 5% run-rate cost reduction, I guess two questions -- one is how did you -- why did you choose that kind of level of reduction? I’m just trying to understand the kind of thinking behind that. And then secondly, what sort of areas are we likely to see the headcount cost -- sorry, the headcount reduction? Where can you trim back? Thanks.

Carl Bass

So, I think we looked and we modeled many, many scenarios for next year, taking into account lots of things, including what we perceived to be volume-based on end user demand, a lot to do with currency. You know, the one thing we really feel like is in our control is our costs, and so we looked at it and we thought how do we get ahead of the costs if business stays at this level, or even deteriorates and we wanted to make sure we were ahead of the curve. We had done a number of things starting last quarter. We certainly didn’t feel those were enough, given what we have seen out there and let me reiterate -- what we keep looking at for the signs of something is for liquidity being back in the credit markets, at the point in which banks are exchanging money, banks are lending money to businesses, that’s when some of the construction projects, some of the media and entertainment projects will move forward. It’s when manufacturers have enough money to build up inventory to make payroll, so that’s where we are really looking.