Fred Bohley: Hi, Tami, this is Fred. Obviously, I think if us providing full-year guide, you can back into the midpoint guide for fourth quarter. We — historically, fourth quarter has been our lowest margin quarter. Obviously, a lot of that is dependent on top line revenue. But North America, you’ve got the holidays in November and December, which traditionally, you have a little bit more fixed cost. It puts a little pressure on our margins in the quarter. As things play forward, there’s a lot of moving pieces. We’ve seen commodity prices come off. That’s been advantageous to us. But we continue to see labor pressure through our supply chain that’s driving increases to our value add. As we talked about, still the challenges in the supply chain and some inefficiencies that are out there for us to get after expedited freight, some manufacturing efficiencies within our facilities, carrying a little bit more inventory than you’d like.
And then obviously, I commented earlier on where we are from a price expectation. So we continue to form our view on 2024, and all those puts and takes will be taken into consideration when we provide that initial guide in February.
Tami Zakaria: Great. Thank you.
Operator: Thank you. Our next question comes from the line of Jerry Revich with Goldman Sachs. Please proceed with your question.
Jerry Revich: Yes, hi. Good afternoon. Fred, I’m wondering if you could just talk about capital deployment from here. Obviously, you’ve a strong track record of returning cash to shareholders. You ended the quarter, I think with your highest quarterly balance as a public company. So I’m just wondering how you folks are thinking about capital deployment from here and why we’ve been seeing more significant stock buyback in the quarter given the cash generation? Thanks.
Fred Bohley: Sure, Jerry. I mean, our capital allocation priorities have been consistent. I mean we’re going to fund the business for organic revenue, earnings growth, focus on new product technology development. And you really see that in the capital expenditures that we’ve had, the engineering and R&D, the fact that we kept our foot down on those investments throughout the pandemic, what’s out there from strategic acquisitions, but we’ve returned a significant amount of capital to shareholders. I mean, we’ve repurchased over 60% of our shares, we’ve raised the dividend over the last five years on a dividend payout per share by over 50%. Obviously, a big driver for us is to always have to be managed in the balance sheet and have low-cost flexible pre-payable debt structure, long-dated maturities.
So as we sit here, the priorities, they haven’t changed. We’re — at this point, obviously, as you mentioned, carrying a little higher cash balance than we have historically. We’re also earning quite a bit higher interest rate than we have historically. But we’ll continue to ultimately return the cash to our shareholders in the most opportunistic way.
Jerry Revich: Thanks.
Operator: Thank you. There are no further questions at this time. I would like to turn the floor back over to David Graziosi for closing comments.
Dave Graziosi: Thank you, Alicia. Thank you for your continued interest in Allison and for participating on today’s call. Enjoy your evening.
Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.
