Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Rob Hansen – Deutsche Bank.
Rob Hansen – Deutsche Bank
Just wanted to see if you could elaborate a little more on the drop in accounts payable, as well as the accounts receivable?
Charles L. Horn
From the accounts payable, I think we saw about a two-day decline. What you're seeing there is again as we go out and expand into more of an installed product sales, there's a large component of our sales that are being driven by the actual sub-contract labor which are not employees. The sub-contracts labor expense for 2008 was somewhere in the area of $50 to $60 million.
That does process through our accounts payable system, and what that does if it has terms of pay now or pay within a week, it obviously depresses what we're seeing in the overall payable days. From an actual product standpoint our days were stable or slightly up, but really what depressed it was this increasing amount of sub-contract labor flowing through.
From an accounts receivable days we are seeing continued pressure. What you're seeing within the industry is many smaller customers are struggling. Many of them are basically heading to what I would call orderly liquidation. As such, that does pressure a little bit in the payment and it has increased some of the delinquency.
Year-over-year if you look at what happens in terms of our delinquency, we have seen about 5% increase in the amount that has slipped into our greater-than-60-day bucket. And that's what you're really seeing going through with the A/R days.
Rob Hansen – Deutsche Bank
Okay and then just, on the revolver, you had mentioned that you would pay it off once the Wells and Wachovia deal went through? I just wanted to see what the rationale was behind only paying $20 million of it off and why not the full amount?
Charles L. Horn
What we did, is we did a forecast for the year and based upon the forecast for 2009 and coupled with our forecast for the borrowing base, we thought one, there would be no requirement to pay it off, two, we would be able to keep it, treat it as long-term. Our proclivity at this point in the cycle is to keep cash rather than just relying upon a non-drawn revolver and that's what we chose to do so.
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