Bill Higgins: Yes, and even some of the programs are €“ I was going to add, some of the programs are not seasonal, like as we go from the establishment of the production lines for the app transition, CH-53K as we’ve done all the tooling work and all that. And then as we convert it over to actual production, there’s a change over there. So it’s not seasonal at all. It actually may be counter seasonal.
Sam Yellen: Okay. Thank you very much.
Operator: Thank you. And the next question is from the line of Pete Skibitski from Alembic Global. Please go ahead.
Pete Skibitski: Hey, good morning guys. Couple housekeeping questions. Steve, I might have missed this, but what are you guys assuming even directionally for corporate expenses in 2023? And then second one just on CapEx kind of came in above the guide for 2022 and it stays elevated for 2023, so I was just wondering what was going on there? Thanks.
Stephen Nolan: Yes. We don’t explicitly guide corporate, but you can certainly get there by taking our segment guidance and our overall company guidance, and looking at that a couple of factors contributing to a somewhat higher corporate expense in 2023 and 2022. One is just compensation overall, which is a combination of a higher normal increase in merit raises just given the current inflationary environment, plus the additional €“ addition of some targeted headcount where we felt we were lacking some capabilities at corporate. We’ll add those in 2023. And secondly, in the GIS area where we’ll €“ sorry, IT area, we call it GIS internally. In the IT area where we are continuing to add some expenses to comply with U.S. DoD cybersecurity requirements for our programs as a government contractor.
We’re required to comply with CMMC, the Cybersecurity Maturity Model, which requires some degree of separation of our data within AEC and some additional expenses. Some of that will hit in 2023 disproportionate to 2022, and that’s why you see the somewhat higher corporate expense level next year. From a CapEx perspective, there’s a number of things going on. One is, new program growth as we’ve discussed we would be spending significantly on programs such as the app transition program 53K. Portion of that was in 2022, a portion of that will be in 2023. Also look in general there were certain capital expenditures which were approved back in 2021 and even 2022, which we thought were good expenses to make or good investments to make, sorry. But which were deferred because what was going on with the pandemic and some uncertainty around cash flow and future program growth.
So a lot of those expenses were now playing catch up where we’re incurring those in expenses as we make those investments here in 2023. So it’s a combination of some of those deferred catch up spending. I wouldn’t view our 2023 as a new normal, it’s aberrantly high, I think driven by both of those factors.
Pete Skibitski: Okay. Appreciate the color. Thank you.
Operator: Thank you. And we’ll move to the line of Michael Ciarmoli from Truist Securities. Please go ahead.
Michael Ciarmoli: Hey, good morning guys. Thanks for taking the questions. Just to go back to the LEAP and production. Just for clarity, what’s your lead time? If we are expecting rate breaks high or later in the year, if Boeing is successful getting the eight, seven up to five per month, how soon or how far ahead do you guys start ramping up that production?
