So that can be channel mix, and it can also be product mix. Commodities are actually after many, many quarters of significant pressure from commodities. We’re starting to see those flatten out. They were slightly negative. We had about a 20 basis point year-on-year drag from net commodity impacts on the business, but much improved from where they have been. We did lose some overhead from lower production levels, again, when €“ as you know, when order levels drop in the business and you get less production, you see that on the labor and overhead lines. So we lost about 70 basis points year-on-year from overhead leverage. And then freight and transportation costs were €“ continue to be a pressure in total. We were 90 basis points down year-on-year from freight and transportation.
And the thing I’d say about that is we’re seeing €“ it’s stubbornly slow, but we’re seeing improvements. And I think particularly in the retail side of our business, we’re seeing still elevated inbound freight costs mainly coming out of Europe where container rates and shipping costs just haven’t come down as fast as what we’ve seen out of Asia. So that’s one kind of nuance to the business, but in total, for the enterprise, 90 basis points of freight. And then the last thing I would point out is, I mentioned €“ this wasn’t a surprise as we knew this was going to be a factor, 50 basis points of that storage fee impact that we had in the retail side of the business, that inventory demurrage and storage fees that I talked about on the call last quarter, it was 50 basis points of pressure year-on-year.
The good news is that’s behind us now. And actually
Budd Bugatch: That’s okay. I am sorry, that was a negative $140 million then with the $90 million and the $50 million. Is that exact sit in effort?
Jeff Stutz: Yes, right between freight and the retail storage, that’s $140 million negative. That’s correct.
Budd Bugatch: Alright. So, the merger is done, where that’s €“ I hate that word. I hate the fact of paying out money. Unfortunately, turn a lot of my personal wealth about 30 years ago. Can you also give us maybe on a GAAP basis, what the GAAP guidance would be for EPS? I know the adjusted is 37 to 43. What would the GAAP be? What’s the adjustment number?
Jeff Stutz: But the only known adjustment would be the impact of amortization cost of purchased intangibles from the Knoll acquisition. And that’s, I think on the order of $6 million a quarter. Beyond that, we may well have other adjustments, but they are certainly not known at this point.
Budd Bugatch: And they are not in the guidance, so the guidance as we do that, okay? And you are guiding on tax rate is the same as it has been or where is it €“ where is that going to be?
Jeff Stutz: Yes. We figured 22% to 24%, same as where we have been.
Budd Bugatch: Okay. And just a couple more for me and these are more niche. That $4.6 million, I think of restructuring, is that all fully?
Jeff Stutz: So, the fully restructuring €“ well, no, we had total special charge items in the quarter of just over $52 million, I think Budd, $37 million of which relates to the fully decision and those were impairment of things like leases, inventory valuation reserve, so the majority of it was related to fully, but not the total amount.
Budd Bugatch: But the $4.6 million in restructuring, where did that €“ what was the restructuring? What did you do there?
Jeff Stutz: That would have related, Budd, to actions that were announced in Q2 associated with the early retirement and some workforce reductions that have a tail as we move through the balance of the fiscal year just based on the timing of exits.
