Question-and-Answer Session
Operator
Thank you (Operator Instructions) Your first question is coming from Robin Murchison of SunTrust Robinson Humphrey. Please, go ahead.
Robin Murchison - SunTrust Robinson Humphrey
Good morning, a couple of questions. One Ron, it looks like if I go back to this October 18th press release that's of exit from JasmineSola. It looks like in fourth quarter you are still on target, the composition the JasmineSola divestiture $1 million and I think, this is gross not net, but in pretax. $1 million related to severance payments, $6 million to $9 million through facility costs and then $3 million to $4 million operating loss from Jasmine?
Ron Ristau
There has really been no change in anything related to Jasmine from the earlier releases that we had. So, we are feeling good about the program, it’s executing on track. We are winding down the stores and we expect that it will be completed in accordance with all of our earlier announcements.
Robin Murchison - SunTrust Robinson Humphrey
Okay. And what is the tax rate used on that? What is the appropriate tax rate?
Ron Ristau
I mean, JasmineSola, the appropriate tax rate is our tax rate of about 40%.
Robin Murchison - SunTrust Robinson Humphrey
Okay.
Ron Ristau
If you'll notice, in the third quarter and I called it out on my comments, we did have a third quarter benefit in New York & Company relative to closing out some tax positions as a result of audit completion. So, we made some FIN 48 adjustments, which did favorably impact us by about $500,000 in the third quarter. But that's not something you should take forward in the tax rates for either side of the equation.
Robin Murchison - SunTrust Robinson Humphrey
Okay. And then CapEx for next year, down 10% to 12% and you're going to restrict remodeling and some other spending. It sounds like you are going to - we don't know what your store opening plan is at this --
Ron Ristau
We haven’t really got into it specifically, but our point of view is that we would like to, we think that the store opening program is an important part of our growth strategy. We also think that's an important part of our diversification strategy. So, we really believe that it should be continued more or less in the lines with what we've done this year. So, we haven’t finalized it 100%, but that's kind of what we are thinking was on that. We get that question all time, so we thought we would mention it.
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