Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jay Habermann from Goldman Sachs. Your line is now open.
Jay Habermann - Goldman Sachs
Hey, good morning, here with [Johan] as well. You know, Bobby, just starting with Oyster Bay, I know this has been going on for sometime, but, just trying to get a sense of the appeal, and if you are unsuccessful over the next few quarters, does this potentially mark the end?
Bobby Taubman
Well, Jay, obviously we were very disappointed with the ruling and the impairment and we are going to forward with the appeal, but as we said in our comments, we are analyzing all our options. We are going to expense all the cost as we go. Whatever happens, if we are going to build, it's going to be a significant delay. But we are going to look at everything. We have got three stores, that are terrific stores in Neimans, Nordstroms and Barneys who believe this is one of the best expansion opportunities they could ever see in United States. So we are going to stay the course and we are going to analyze every option we can.
Jay Habermann - Goldman Sachs
Okay. And then just I want to switch to Asia, I know you have made a sizable commitment there, I think as most recently you had mentioned 40 positions, did you make any reductions as part of this broader reduction in workforce you mentioned sort of in other areas where you have been focusing or development. So are you reducing at all the commitment level to personnel in Asia?
Bobby Taubman
Yes, we have and we have reduced it substantially both areas as well as here and as I said of the 40 positions, the areas primarily impacted with the development in areas that support development.
Jay Habermann - Goldman Sachs
So, I think you talked about $15 million to $17 million annual run rate of cost in Asia, how has that changed running going forward?
Bobby Taubman
Jay, what we talked about in 2008 was that the combined pre-development spending was $18.5 million between Asia and United States. And what we said is that we have taken that $18.5 million back to 13 and in the 13 our $2 million where the Oyster Bay costs as well.
So we have really taken pre-development, because we have been capitalizing the Oyster Bay costs we have really taken pre-development back from $18.5 million to 11 on an apples-to-apples basis. And that's pre-development and then there is also overhead that is in sometime captured within that capitalizing or expensing of pre-development that also is in development. And that's all part of that 40 positions that I mentioned.
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