Question-and-Answer Session
Thank you. [Operator Instructions]. Your first question comes from John Inch, Merrill Lynch. Your line is open.
John Inch - Merrill Lynch
Thank you. Good morning.
Edward D. Breen - Chairman and Chief Executive Officer
Good morning, John.
Christopher J. Coughlin - Executive Vice President and Chief Financial Officer
Good morning, John.
John Inch - Merrill Lynch
Good morning. So, I wanted to ask you about restructuring benefit. I believe Chris, you suggested that '09 in your guidance, there is about $50 million of benefit.
Christopher J. Coughlin - Executive Vice President and Chief Financial Officer
About $50 million of benefit in '09. Correct.
John Inch - Merrill Lynch
I think you guys have taken about $400 million of charges. That sort of suggests the reasonably low kind of return of payback. Could you talk a little bit about that?
Christopher J. Coughlin - Executive Vice President and Chief Financial Officer
Yes, we had about benefits of about $100 million in 2008. So the incremental piece above that in 2009, we think would be $50 million, and then as we move throughout the year as we do more restructuring, we'll see some benefits at the end of '09 and further.
John Inch - Merrill Lynch
And Chris, is the $50 million, is that net of the new restructuring actions, or the new restructuring actions dragged from the $50 million?
Christopher J. Coughlin - Executive Vice President and Chief Financial Officer
The new restructuring dragged through the... up to 50. So, we'll get the benefit of that toward the end of the year and then they are...
Edward D. Breen - Chairman and Chief Executive Officer
And John, also we did get some savings in the second half of '07, when the program have started back then. So, cumulatively it kind of gets closer to about $200 million of cumulative savings from the program that cost us $399 million.
Christopher J. Coughlin - Executive Vice President and Chief Financial Officer
John, I think the way to think about it in '09, given the $50 million of savings and the $50 million of spending is that effectively itself funding in '09.
John Inch - Merrill Lynch
Okay. That makes sense.
Christopher J. Coughlin - Executive Vice President and Chief Financial Officer
From an earnings point of view.
John Inch - Merrill Lynch
Right. And then what... I mean kind of normalized, what's the run rate in corporate expense, it still seems kind of high relative to overall Tyco. Could you just give us your thoughts as to where you think that ran rate can actually trend based on what you know today? Not necessarily in the first quarter, but just... what's the trend line, the pathway for that cost item?
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