Question-and-Answer Session
Operator
(Operator instructions) And our first question is from the line of Mark Jordan with Noble Financial. Please go ahead.
Mark Jordan – Noble Financial
Good morning everyone. Got a tough one for Dale here. Given the fact that the Dow is off over 34% year-to-date and if we were to assume that we stay roughly in this range. I am also cognize of the fact that you made a voluntary contribution, which would obviously lessen your forward liability but given those two events could you try to gauge what the quarterly pension expense might be in 2009?
Dale Schnittjer
Mark you are right. With the volatility that is out in the markets, it is too early to know exactly where we will be at year-end. However, if we assume a decline in the assets of approximately $20 million at the end of 2008 versus the end of 2007, which would sort of equate to a negative portfolio return of 20% less about $30 million in contributions to retirees plus contributions of about $30 million, and assuming an rate of return of about 8.25% versus 8.5% in 2008 and a 6.5% discount rate versus a 6% discount rate in 2007 we would think that we would expect headwinds of approximately $0.10 per share or you know $0.025 a quarter and of course, if the assets performed worse than that we would have a little more headwind. If we had a higher discount rate or stronger asset performance or additional discretionary contributions it might be a little less than that.
Mark Jordan – Noble Financial
But from a – at this point in time psychologically we should assume a headwind of about $0.10 versus this year?
Dale Schnittjer
That is about as well as we could guess today.
Mark Jordan – Noble Financial
Okay, thank you. The R&D tax credits since I guess that bill was signed in early October, will you adopt that therefore in the fourth quarter. What impact will that have and have you included that in your guidance for the quarter?
Dale Schnittjer
Yes, we have and it is about $0.02.
Robert Mehrabian
Did you get that, Mark? Operator.
Operator
And our next question is from the line of – our next question is from John Harmon with Needham. Please go ahead.
John Harmon – Needham
Hi, good morning.
Robert Mehrabian
Good morning John.
John Harmon – Needham
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