They also assume that the temporary tax provisions (the so-called extenders) and the temporary Medicare physician payment adjustment (the doc fix) expire in a year as the law states.
The company also said it expects to see a temporary bump in gross margins in the March quarter, reflecting adjustment in costs from a quicker-than-expected switch to streaming from DVD rentals by some subscribers.
Although the profusion of temporary contracts has brought greater flexibility, it has laid the burden of adjustment disproportionately on the low-skilled, the young and immigrants.