CAPITAL ALLOCATION AND LIQUIDITYDuring the second quarter of 2012, Moody’s repurchased 2.7 million shares at a total cost of $100.0 million and issued 0.3 million shares under employee stock-based compensation plans. Outstanding shares as of June 30, 2012 totaled 222.3 million, representing a 3% decline from a year earlier. As of June 30, 2012, Moody’s had $0.8 billion of share repurchase authority remaining under its current program. At quarter-end, Moody’s had $1.2 billion of outstanding debt and $1.0 billion of additional debt capacity available under its revolving credit facility. Total cash and cash equivalents at quarter-end were $824.1 million, a decrease of $114.4 million from a year earlier. ASSUMPTIONS AND OUTLOOK FOR FULL-YEAR 2012 Moody’s outlook for 2012 is based on assumptions about many macroeconomic and capital market factors, including interest rates, corporate profitability and business investment spending, merger and acquisition activity, consumer borrowing and securitization, and the amount of debt issued. There is an important degree of uncertainty surrounding these assumptions, especially as they relate to Europe, and, if actual conditions differ, Moody’s results for the year may differ materially from the current outlook. Our guidance assumes foreign currency translation at end-of-quarter exchange rates. Moody’s is reaffirming its EPS guidance range for the full-year 2012 of $2.62 to $2.72 and still expects to be toward the upper end of the range. However, certain components of 2012 guidance have been modified to reflect our current view of credit market conditions. For Moody’s overall, the Company still expects full-year 2012 revenue to grow in the low-double-digit percent range. Full-year 2012 expenses are still projected to increase in the low-double-digit percent range. Full-year 2012 operating margin is still projected to be approximately 39 percent. The effective tax rate is still expected to be approximately 33 percent. For the global MIS business, revenue for full-year 2012 is still expected to increase in the mid- to high-single-digit percent range. Within the U.S., MIS revenue is still expected to increase in the low-double-digit percent range, while non-U.S. revenue is still expected to increase in the low-single-digit percent range. Corporate finance revenue is now projected to grow in the high-single-digit to low-double-digit percent range. Revenue from each of structured finance and financial institutions is still expected to be flat to slightly up, while public, project and infrastructure finance revenue is still expected to increase in the mid-teens percent range.