Question-and-Answer Session
Operator
(Operator Instructions) Our first question will come from Myles Walton - Oppenheimer.
Myles Walton - Oppenheimer
I was wondering if I could probe the outlook a little bit first and just make sure I have some numbers right. The acquired businesses that you picked up in ?07, it looks like they would add maybe $120 million of incremental revenue in ’08; is that about right?
Glenn E. Tynan
I’m not sure of the exact number, Myles, off the top of my head.
Myles Walton - Oppenheimer
And then there is another $60 million from the nuclear side that is coming online? The bottom line of the question though is that if you take those two things into account, it looks like your implied sales guidance is only 5% organic in the rest of your business, which seems pretty conservative given the bookings you had year-to-date and I just wondered if there are any puts and takes there that I’m missing?
Glenn E. Tynan
No, Myles, as a matter of fact the contribution from our acquisitions is about $130 million. We expect 10% organic growth across the businesses. I think if you add up the numbers you would be mathematically astute in indicating that there is some upside potential.
Myles Walton - Oppenheimer
But, the incremental from the commercial nuclear is going to be about $60 million in ?08?
Glenn E. Tynan
$50 million, yes.
Myles Walton - Oppenheimer
The next question on pension expense, the $8 million looks like it was running a little high. Was there a discount rate adjustment there? Is this a sustainable level? Will it come down from this level? If you can just comment on that Glenn?
Glenn E. Tynan
Sure, Myles. It’s actually not discount rates, the discount rate set in the fourth quarter last year pretty much was steady. It’s actually about $1 million of increase this year from adding new people, acquisitions, into our cash balance sheet and plan. Also we did make a couple assumptions changes, one is on the compensation increase and a bunch of demographic changes that all equated to another $1.2 million, $1.3 million that gets you up to the $8 million for this year. But those are the only two changes that really impacted it. Obviously, if the discount is different in the future it could affect us in ?09, but that’s the way ?08 was built.
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