Question-and-Answer Session
Operator
Your first question comes from the line of John Murphy - Merrill Lynch.
John Murphy - Merrill Lynch
I just wanted to focus on the cost side first. I just think about the cost savings in the first quarter, just trying to parse that out a little bit better. First, was there any recognition of savings from the 4,200 workers that were bought out in the first quarter?
Don Leclair
No.
John Murphy - Merrill Lynch
Was there any recognition of OPEB savings in the first quarter and what was that amount, if there was?
Don Leclair
Well, not OPEB savings from the UAW agreement, no.
John Murphy - Merrill Lynch
So that hasn’t been recognized yet.
Don Leclair
Right.
John Murphy - Merrill Lynch
On the material cost reductions, those are the things that ramp up through the course of the year, but you’re launching the F-150, which typically would have a big increase in material costs. Should we think about that as sort of a net neutral as we go through the year, the F-150?
Don Leclair
If you look at slide 17 those cost reductions are on that third line. See where it says material cost reductions? That kind of goes across. And that should just about get us, that 0.3 running rate should get us right in there for what we show for the balance of the year. Now, the increase for the F-150, to the extent there is any, will be right in that 0.5 which is on that first line, on the product adds, if that’s helpful..
John Murphy - Merrill Lynch
So the two of those are netted together. Okay, that’s great.
Don Leclair
Right.
John Murphy - Merrill Lynch
And then also on D&A in the quarter, it looked like D&A was down $264 million year over year. Is that something we should expect to continue and what was the big driver of that?
Don Leclair
Well, as I mentioned the big causal factor for that is last year we had accelerated the depreciation of the plants we were going to close, so that when we did close them there was no write-off and that’s just how the accounting rules work. Now that those plants are closed, we won’t have that much drag from the accelerated depreciation. I don’t think we will see quite that much depreciation good news throughout the year.
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