Question-and-Answer Session
Operator
Yes. (Operator Instructions). And first question is from the line of Cai von Rumohr of Cowen. Please go ahead.
Cai von Rumohr –Cowen & Co.
Yes. Thanks so much. Bob you had mentioned $15 million in restructuring, can you be a little bit more specific in terms of how that spreads among your businesses how much of that will be cash outlay and the expected savings you expect to enjoy in 2010?
Robert T. Brady
Yeah. Let me take the easy parts first. We expect that the $15 million will be almost all-cash it will primarily fall in our Industrial segment it mostly has to do with staffing adjustments in Europe and Asia. And our Industrial business in the U.S., which is heavily in the simulator business, which as I mentioned is down somewhat. We have been able to redeploy a number of people and move them to our Space and Defense operation, because we are very busy there. So, we don't expect that we are going to have a staffing adjustment in the U.S. but we do expect that it will occur in other places around the world, we have already made an announcement in Germany and there will be others to come. So, as to the timing, the arrangements for staff reductions in countries other than the U.S. have their own complexities. And as a result the timing is difficult to predict. So, I cant tell you that we expect that the $15 million will show up in the third and fourth quarter and it probably won’t be half-and-half, but we are unable to predict just how much will occur in the third quarter and how much in the fourth. With respect to the savings, the savings will be substantial. I am just inclined to quote a number, at the end of third quarter, we will as is our practice we will provide our guidance for next year in terms of sales and earnings and that guidance will take the benefit and at this stage of the game I just assume not describe a number for how much we’re going to save those kinds of numbers get divided by somebody's guess and turned into a number of people and that triggers rumor mills that are unnecessary and incorrect, and I just assume not go there, if you don’t mind.
Cai von Rumohr –Cowen & Co.
Can I ask you though, but I mean it sounds like most of the restructuring is basically going to be reduction in force?
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