James Picariello: Got it. That’s super helpful. And then, just with respect to the $135 million in lower disruption costs for this year, can you confirm what that overall cumulative impact is entering this year? I believe the number was — something like $295 million was the expectation as of last quarter. Seems as though the fourth quarter incurred some additional challenges tied to China. So, yes, if you could share maybe the time line to fully recapture this all-in bucket, what that is, that would be great.
Joe Massaro: Yes. I wish I could give you the full — the time line of recapture. We’ve had $180 million in. We finished last year at a little over $300 million. So that’s what’s coming down from. We’re taking the $135 million down to the $180 million._
James Picariello: Okay. And then, over time, this will — these cost challenges are fully addressable?
Joe Massaro: Yes. No, listen. Rod in his comment was correct, right? We said at the — we think four to six quarters from the beginning of 2023; we’re going down over the next four quarters, that $135 million, working hard to get them down. Again, its things like premium freight, its things like plant downtime that are either COVID or supply chain disruption related. We’re seeing sequential improvement. I would expect to continue to see sequential improvement. But it’s what you saw in the fourth quarter this year, right? There are things that pop up that make it an expensive operating environment.
Kevin Clark: Yes, I think it’s important to note, setting aside fourth quarter COVID, when you think about car and inputs to a car, supply chain disruption can start with just a shortage of one part. And the issues related to excess labor, premium shipments, manufacturing, loss of manufacturing productivity. And that’s all it takes. And there’s a ripple effect and those dollars, obviously, are those inefficiencies and costs obviously add up. So, although it does, to Joe’s point, overall, the supply chain situation is improving. There are still continue to be some unique situations that were outstanding or occurred in 2022 that are going to continue in 2023, with specific semiconductor suppliers. And then periodically, there are surprises that affect the industry, the players like ourselves need to react to.
And our real focus has been, how do we make sure we keep our customers connected. So we’ve consciously made the decision to absorb a portion of that cost near term, go back to the customer for relief once we’ve addressed the issue, and we’ve kept them connected. And we think that’s translated into the — quite frankly, the bookings that we’ve had in 2022, we expect to have in 2023. And, quite frankly, their posture on price recovers. So it’s tough to predict.
James Picariello: Thank you.
Kevin Clark: Thanks, James.
Operator: That does conclude the Q&A portion of today’s call. At this time, I would like to hand the conference back over to Kevin for any additional or closing remarks.
Kevin Clark: Thanks, operator, and thanks, everybody, for your participation today. Take care, and we’ll see you on the 14.
Operator: That does conclude today’s teleconference. We thank you all for your participation.
