Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Stephen Tusa - J.P. Morgan.
Stephen Tusa - J.P. Morgan
So Ted, you said earlier in the call an $80 million number on restructuring. So is that just basically the $120 million incremental restructuring benefit you’re going to get minus kind of the $40 million in partial restoration? Is that the right number or is there something different going on?
Theodore D. Crandall
Think of the $120 million as two pieces. $40 million of the $120 million is carryover from saving that started in fiscal ’09 and are not related to [inaudible] or temporary actions. The other $80 million of savings is restructuring actions taken in ’09 for which there was no savings in ’09, so it’s $80 million against that $50 million to $100 million of incremental savings we talked about in ’10.
Stephen Tusa - J.P. Morgan
How quickly would you expect the restoration of temporary cost actions to come through?
Theodore D. Crandall
There will be some natural reset of incentive compensation as we progress into ’10 and you’ll see that basically comes in about equally over the course of the year. On some of the other compensation related actions, we would not expect to begin restoring until sometime later in fiscal ’10, probably closer to mid year when we start to hopefully see some pick up in sales levels.
Stephen Tusa - J.P. Morgan
So if you’re down kind of at the high end of your range, I know you start out kind of a $50 million number for temporary stuff that may have to come back in, is there a [gating] factor around whether you’re down 2 or down 9 or if you’re at the midpoint of the range, is that $50 million all coming back or how do we think about that?
Theodore D. Crandall
Think about it this way. At the midpoint of the range there’s about a $30 million headwind in fiscal ’10 as a consequence of restoration of temporary actions.
Stephen Tusa - J.P. Morgan
Just lastly, when we look at the seasonality from 4Q to 1Q and the good times you continue to grow from 4Q to 1Q, in the last few years you’ve been down anywhere from I guess 25% last year to down 3% from 4Q to 1Q ’08. Given that this is neither ’08 or ’07, how do we think about kind of the inherent seasonality of the business now in this kind of more depressed level?
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