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Generations of Waspily distinguished Time Inc. editors are rolling over in their graves — or at least in their green golf pants — right now: The company is tightening its belt on expense reimbursements.

Meals and drinks with contacts will not be reimbursed unless the contact is specifically the subject or source for a story. Meals and drinks with fellow Time Inc. writers — or even with outside media folks — will not be reimbursed. Staff meetings may not be catered. Flights, even international flights, may only be booked in coach class. And on late closing nights, staffers are now encouraged to travel home — this last bit is so horrible it must only be uttered only in hushed tones — by yellow cab.

On the upside, $25 million to decorate the chairman's office is still fine.

Full Sports Illustrated memo, which highlights the company's year-over-year earnings drop in the first half of 2005 and announces similar restrictions at other Time Inc. titles, after the jump.

——-Original Message——-
From: Bevans, Mike - Sports Illustrated
Sent: Fri 8/26/2005 6:28 AM
To: +TI-SI-EDIT
Subject: IMPORTANT: T&E POLICY UPDATE

SI Edit Staff:

As many of you know, this has been a challenging year in the publishing industry. Time Inc. reported earnings for first half 2005 that were down versus 2004. In light of these results, and in anticipation of equally challenging months ahead, every division of the company has been asked to cut costs for the rest of the year. To that end, we ask for your cooperation and adherence to the following cost-saving measures, which are in line with steps being taken at other Time Inc. publications.

Staffers should also know that, while the changes below take effect immediately in response to the company-wide appeal, a broader, internal evaluation of SI Edit Travel & Entertainment is ongoing. An SI-specific addendum to the Time Inc. T&E policy is being prepared and will deal with long-term cost-cutting objectives and stricter enforcement of the company policy.

In general, all staffers should adopt a heightened awareness with regard to spending and be as frugal with the company's money as you would with your own.

Effective Sept. 1 through Dec. 31, 2005:

TRAVEL

All travel by writers, photographers and reporters must be approved by the Senior Editor assigned to the story, the Director of Photography and the Chief of Reporters, respectively; the Senior Editor or department head will get approval from the Managing Editor.

No travel by department heads, editors or other nonwriting staffers unless approved by the Managing Editor.

No business-class travel (including international flights and Swimsuit) unless approved by the Managing Editor.

Use Yellow cabs and subways for business-related transportation within Manhattan. Whenever possible use Yellow cabs for late-night transportation within Manhattan.

ENTERTAINMENT

Expenses for the entertainment of fellow SI and other Time Inc. staffers (meals, drinks, etc.) will not be reimbursed. Staff meetings should not be catered.

Expenses for the entertainment of fellow members of the media outside Time Inc. (meals, drinks, etc.) will not be reimbursed.

Expenses for the entertainment of all other outside contacts (meals, drinks, etc.) will be reimbursed only if those entertained are the subjects of or sources for a story. All other entertainment requires Managing Editor approval.

EQUIPMENT AND OFFICE SUPPLIES

No computer, photography or office equipment should be purchased unless absolutely necessary and only with the approval of the Managing Editor or SI Business Office. The purchase of office and camera supplies should be kept to a minimum.

EXPENSE REPORTS

Expense reports must be filed monthly; no exceptions.

Receipts are needed for all expenses (except per diem meals while traveling), and they should be taped to sheets of white copy paper.

As always, corporate T&E policies should be followed. Please refer to TimeTraveler

(http://www.timeinc.com/TT/finance/content/tepolicy.pdf) or call the Business Office if you have questions.

HIRING, TEMPS and OVERTIME

A company-wide hiring freeze that affects new and replacement headcount, as well as the hiring of temporary help has been implemented. Only temp help that is absolutely necessary will be approved. In addition, employees who are eligible for overtime must have their overtime preapproved by their department heads.