SFN Group Inc (SFN)

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to our exposures to market risk since December 28, 2008. Please refer to our Annual Report on Form 10-K for the fiscal year ended December 28, 2008 for a complete discussion of our exposures to market risk.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to our exposures to market risk since December 30, 2007. Please refer to our Annual Report on Form 10-K for the fiscal year ended December 30, 2007 for a complete discussion of our exposures to market risk.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to our exposures to market risk since December 30, 2007. Please refer to our Annual Report on Form 10-K for the fiscal year ended December 30, 2007 for a complete discussion of our exposures to market risk.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to our exposures to market risk since December 30, 2007. Please refer to our Annual Report on Form 10-K for the fiscal year ended December 30, 2007 for a complete discussion of our exposures to market risk.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective for the period covered by this Quarterly Report.

There has been no change in our internal control over financial reporting during the quarter ended March 30, 2008, identified in connection with the evaluation referred to above, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

There were no material changes from Risk Factors as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 30, 2007.

Item 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        As of December 30, 2007, approximately $1.9 million of cash and cash equivalents were invested in money market mutual funds. These financial instruments are not considered to be subject to interest rate risk due to their short duration.

        We are exposed to interest rate risk related to a portion of our debt. Our outstanding variable-rate debt at December 30, 2007 was $105.0 million and we had no outstanding variable debt as of December 31, 2006. Based on the outstanding balance in 2007, a change of 1% in the interest rate would have caused a change in interest expense of approximately $1.0 million on an annual basis.

        From time to time, we participate in foreign exchange hedging activities to mitigate the impact of changes in foreign currency exchange rates. We attempt to hedge transaction exposures through natural offsets. To the extent this is not practicable, exposure areas which are considered for hedging are foreign currency denominated receivables and payables, intercompany loans and firm committed transactions. We use financial instruments, principally forward exchange contracts, in our management of foreign currency exposures. We do not enter into forward contracts for trading purposes. In estimating the fair value of derivative positions, we utilize quoted market prices, if available, or quotes obtained from external sources.

        When foreign currency financial instruments are outstanding, exposure to market risk on these instruments results from fluctuations in currency rates during the periods in which the contracts are outstanding. The counterparties to our currency exchange contracts consist of major financial institutions, each of which is rated investment grade. We are exposed to credit risk to the extent of potential nonperformance by counterparties on financial instruments. Any potential credit exposure does not exceed the fair value. We believe the risk of incurring losses due to credit risk is remote.

        The carrying amount of cash and cash equivalents, trade receivables and other current assets approximates fair value due to the short-term maturities of these instruments. Our insurance deposits earn a fixed interest rate as determined at the time of funding and are carried at fair value or $18.2 million and $49.7 million as of December 30, 2007 and December 31, 2006, respectively. Company-owned life insurance policies are carried at cash surrender value which approximated $12.9 million as of January 1, 2006. In January 2006, Spherion terminated these policies and invested cash in order to provide an investment balance equal to the deferred compensation liability.

        The fair values of all other financial instruments, including debt, approximate their book values as the instruments are short-term in nature or contain market rates of interest.

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Item 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        As of December 30, 2007, approximately $1.9 million of cash and cash equivalents were invested in money market mutual funds. These financial
instruments are not considered to be subject to interest rate risk due to their short duration.

        We
are exposed to interest rate risk related to a portion of our debt. Our outstanding variable-rate debt at December 30, 2007 was $105.0 million and we had no
outstanding variable debt as of December 31, 2006. Based on the outstanding balance in 2007, a change of 1% in the interest rate would have caused a change in interest expense of approximately
$1.0 million on an annual basis.

        From
time to time, we participate in foreign exchange hedging activities to mitigate the impact of changes in foreign currency exchange rates. We attempt to hedge transaction exposures
through natural offsets. To the extent this is not practicable, exposure areas which are considered for hedging are foreign currency denominated receivables and payables, intercompany loans and firm
committed transactions. We use financial instruments, principally forward exchange contracts, in our management of foreign currency exposures. We do not enter into forward contracts for trading
purposes. In estimating the fair value of derivative positions, we utilize quoted market prices, if available, or quotes obtained from external sources.

        When
foreign currency financial instruments are outstanding, exposure to market risk on these instruments results from fluctuations in currency rates during the periods in which the
contracts are outstanding. The counterparties to our currency exchange contracts consist of major financial institutions, each of which is rated investment grade. We are exposed to credit risk to the
extent of potential nonperformance by counterparties on financial instruments. Any potential credit exposure does not exceed the fair value. We believe the risk of incurring losses due to credit risk
is remote.

        The
carrying amount of cash and cash equivalents, trade receivables and other current assets approximates fair value due to the short-term maturities of these instruments.
Our insurance deposits earn a fixed interest rate as determined at the time of funding and are carried at fair value or $18.2 million and $49.7 million as of December 30, 2007 and
December 31, 2006, respectively. Company-owned life insurance policies are carried at cash surrender value which approximated $12.9 million as of January 1, 2006. In January 2006,
Spherion terminated these policies and invested cash in order to provide an investment balance equal to the deferred compensation liability.

        The
fair values of all other financial instruments, including debt, approximate their book values as the instruments are short-term in nature or contain market rates of
interest.

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There have been no material changes to our exposures to market risk since December 31, 2006. Please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2006 for a complete discussion of our exposures to market risk.

There have been no material changes to our exposures to market risk since December 31, 2006.  Please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2006 for a complete discussion of our exposures to market risk.

There have been no material changes to our exposures to market risk since December 31, 2006.  Please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2006 for a complete discussion of our exposures to market risk.

There have been no material changes to our exposures to market risk since January 1, 2006.  Please refer to our Annual Report on Form 10-K for the fiscal year ended January 1, 2006 for a complete discussion of our exposures to market risk.

There have been no material changes to our exposures to market risk since January 1, 2006. Please refer to our Annual Report on Form 10-K for the fiscal year ended January 1, 2006 for a complete discussion of our exposures to market risk.

As of April 3, 2005, approximately $0.9 million of cash and cash equivalents was invested in investment grade money market funds. These financial instruments are not considered to be subject to interest rate risk due to their short duration.

We are exposed to interest rate risk related to a portion of our debt.  Our outstanding variable-rate debt at April 3, 2005 and December 31, 2004 was $20.9 million and $40.1 million, respectively. Based on the outstanding balance, a change of 1% in the interest rate would have caused a change in interest expense of approximately $0.2 million and $0.4 million in 2005 and 2004, respectively, on an annual basis.

From time to time, we participate in foreign exchange hedging activities to mitigate the impact of changes in foreign currency exchange rates. We attempt to hedge transaction exposures through natural offsets. To the extent this is not practicable, exposure areas which are considered for hedging are foreign currency denominated receivables and payables, intercompany loans and firm committed transactions and dividends related to foreign subsidiaries. We use financial instruments, principally forward exchange contracts, in our management of foreign currency exposures. We do not enter into forward contracts for trading purposes. In estimating the fair value of derivative positions, we utilize quoted market prices, if available, or quotes obtained from outside sources. As of April 3, 2005, we had two outstanding forward contracts to sell € 0.2 million in January 2006 and 2007, and one outstanding forward contract to sell 4.8 million Australian dollars in September of 2005.  Each of these derivatives had a fair value or cost to unwind that is not material to our consolidated results of operations.

The fair values of all financial instruments, including debt, approximate their book values as the instruments are short-term in nature or contain market rates of interest.