<SEC-DOCUMENT>0001193125-17-363985.txt : 20180122
<SEC-HEADER>0001193125-17-363985.hdr.sgml : 20180122
<ACCEPTANCE-DATETIME>20171207165156
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-17-363985
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20171207

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HACKETT GROUP, INC.
		CENTRAL INDEX KEY:			0001057379
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MANAGEMENT CONSULTING SERVICES [8742]
		IRS NUMBER:				650750100
		STATE OF INCORPORATION:			FL
		FISCAL YEAR END:			1228

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1001 BRICKELL BAY DRIVE
		STREET 2:		SUITE 3000
		CITY:			MIAMI
		STATE:			FL
		ZIP:			33131
		BUSINESS PHONE:		3053758005

	MAIL ADDRESS:	
		STREET 1:		1001 BRICKELL BAY DRIVE
		STREET 2:		SUITE 3000
		CITY:			MIAMI
		STATE:			FL
		ZIP:			33131

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ANSWERTHINK INC
		DATE OF NAME CHANGE:	20000628

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ANSWERTHINK CONSULTING GROUP INC
		DATE OF NAME CHANGE:	19980608
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">THE HACKETT GROUP, INC. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1001 Brickell Bay Drive, Suite 3000 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">Miami, Florida 33131 </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 7, 2017 </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Via Email and EDGAR </U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. Mark A. Rakip </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange
Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mail Stop 3233 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top">The Hackett Group, Inc. </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Form 10-K for the fiscal year ended December 30, 2016 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">File No. 333-48123 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">SEC Comment
Letter dated October 31, 2017 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Mr. Rakip, </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">On behalf of The Hackett Group, Inc. (the &#147;Company&#148;), set forth below is the response to your comment letter dated October 31, 2017,
relating to the Company&#146;s Form 10-K for the fiscal year ended December 30, 2016, filed with the Securities and Exchange Commission (the &#147;SEC&#148;) on March 10, 2017 (the &#147;Form 10-K&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The responses are keyed to correspond to the numbered paragraphs in your comment letter, which have been retyped herein in bold for ease of
reference. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Form 10-K for the fiscal year ended December 30, 2016 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Item 7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</U> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Comparison of 2016 to 2015, page 23 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>You disclose your results on a constant currency basis which appear to be non-GAAP financial measures. In future periodic filings, please describe the process for calculating the currency effects, including which
period&#146;s exchange rate is used. Also provide such disclosure in your interim periodic filings and quarterly earnings announcements. </B></TD></TR></TABLE>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response to Comment 1</U>: </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We agree with the Staff that a financial measure presented on a constant currency basis would be a non-GAAP financial measure. However, the
disclosure we present in our </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">
Form 10-K is not a financial measure, but rather an <I>explanation</I> of the impact of foreign currency on our GAAP results compared to the prior period GAAP results. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In our Form 10-K, we explained the impact of foreign currency exchange rate fluctuations on revenue by showing the percentage change on an
actual basis and also on a constant currency basis.&nbsp;We did not create a stand-alone numerical measure within the meaning of Regulation G and Item 10(e) of Regulation S-K.&nbsp;For example, we do not present an adjusted revenue metric which
excludes or includes amounts (or is adjusted to have the effect of including or excluding amounts) from revenue.&nbsp;Rather, we simply disclose how much of the change from prior period revenue was due to foreign currency exchange
rates.&nbsp;Therefore, we do not believe it is necessary to label this explanation as a non-GAAP financial measure.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We respectfully
acknowledge your request that we describe the process for calculating the percentage change on a constant currency basis, including which period&#146;s exchange rate is used, and will add such disclosure in future filings and quarterly earnings
announcements. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Please explain why you believe it is appropriate to use a normalized long-term cash tax rate of 30% to calculate Adjusted non-GAAP net income. In your response, tell us how you concluded such assumption is a
reasonable estimate given the effective tax rate on your GAAP Net income for the past two fiscal year-ends has exceeded 35%. In addition, ensure your disclosures clearly describe the basis for the adjustment and disclose how the adjustment is
calculated. Refer to Question 102.11 of the updated Non-GAAP Financial Measures Compliance and Disclosure Interpretations issued on May 17, 2016. </B></TD></TR></TABLE>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response to Comment 2</U>: </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We respectfully acknowledge the Staff&#146;s comment, and advise the Staff that the Company&#146;s normalized long-term cash tax rate estimates
the Company&#146;s cash tax rate over a longer period of time than one or two fiscal years. In addition, the normalized long-term cash tax rate excludes the impact of transactions that the Company does not believe are representative of its operating
results. The normalized long-term cash tax rate also takes into consideration a significant amount of amortization of goodwill expense that is not reflected in our GAAP tax provision, and includes longer term trends in the geographic mix of taxable
income. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company believes that its current 30% normalized income tax rate is a reasonable estimate of the long-term effective cash tax
rate under the Company&#146;s global structure based on the statutory tax rates in the jurisdictions in which it operates.&nbsp;The Company notes that its GAAP tax provision can fluctuate as a result of changes in geographical mix of taxable income,
the adoption of new accounting principles, and the impact of acquisitions. To illustrate this point, although the Company&#146;s GAAP effective tax rate for the two most recent fiscal years has exceeded 35%, its fiscal 2014 GAAP effective tax rate
was 18.8%, and its year to date fiscal 2017 GAAP effective tax rate as reported on the Company&#146;s most recent Form 10-Q for the third quarter ended September 29, 2017, was 18.2%.</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In future filings, the Company will ensure that its disclosure clearly describes the basis for
the adjustment and discloses how the adjustment is calculated. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">* * * </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">We acknowledge that the Company and its management are responsible for the adequacy and accuracy of their disclosures. We hope that the
foregoing has been responsive to the Staff&#146;s comments. Should you have any questions relating to any of the foregoing, please direct such questions to the undersigned at (786) 497-7820 or rramirez@thehackettgroup.com. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Sincerely, </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;<U>/s/ Robert A.
Ramirez&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Robert A. Ramirez </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President, Finance and Chief Financial Officer </P>
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