Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Michael Gallo – CL King. Michael, your line is open. We’ll move to the next question.
Your next question comes from Brad Ludington – Keybanc Capital.
Brad Ludington – Keybanc Capital
Good morning. I got a couple questions on – First off, congratulations on COGS control on the restaurant division, COGS and labour definitely. In relation to that I wanted to ask, just to follow up on the comment that the 480,000 hours that you cut out here in the second quarter was on top of the 560,000 or so in the first quarter, so you’re at about a million hours year over year better.
Steven A. Davis
[Inaudible].
Brad Ludington – Keybanc Capital
Okay. Looking at the labour line as well in the restaurants, over the last couple quarters there have been favourable insurance cost comparisons. Was there any of that here in the second quarter?
Tod P. Spornhauer
Insurance cost comparisons there was some favourability in the second quarter when you look at insurance at around $500,000.
Donald J. Radkoski
Yeah.
Brad Ludington – Keybanc Capital
Okay. Now, on the.... How can you get past having to, I understand honouring the promotional prices. You can’t do anything about that here in the second quarter. Does that go, do you have a similar situation where some of those promotional prices extended into the third quarter or beyond?
Steven A. Davis
I would say very little. So much of this spending is about timing. Some deals are set at the beginning of the quarter and then other ones are set during the course of the quarter. I would say the majority of that impact is behind us. There might be some residual with some key accounts. But we took a customer-first viewpoint, which is if we made a commitment it’s not the customer’s issue that hog costs ran up the way they did. So we honoured those commitments in the spirit of partnership. But now going forward we understand that we’re going to have to all, and that’s the whole category, we’re just going to have to live in a world potentially with higher hog costs and we’re making those adjustments.
Brad Ludington – Keybanc Capital
Okay. And right decision, I think, for the long-term health definitely. Looking at the timing of marketing in the second half of 2009 will there be any significant shifts in the third or fourth quarter year over year?
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