Arun Viswanathan: And so with that comp, I guess, when you think about free cash flow, I imagine it could be nicely up over the next couple of years from that 750 base. Could you just touch on that opportunity as well as the capital that you plan to spend?
Dan Fisher: Yes, I’ll have Scott.
Scott Morrison: Yes, I can get better. No, you’re exactly right. I mean, we’re going to spend less capital, just put up a $1.2 billion this year. Next year, we’re expected to go down closer to GAAP depreciation. So all that freed up cash flow can go back to shareholders. So I think it gets better.
Arun Viswanathan: Thanks.
Dan Fisher: Thank you.
Operator: Thank you. Our next question is from the line of Phil Ng with Jeffries. Please go ahead your line is open.
Unidentified Analyst: Good morning. Thank you guys for taking the time and providing all the details. This is John on for Phil.
Dan Fisher: Hi, John.
Unidentified Analyst: Hey. I want to start just, I know it’s kind of been beaten to death a little bit, but with the North American volumes down 8.5% in the quarter, obviously much worse than the overall market. I mean, you called out, obviously, that’s vastly driven by the mass beer declines. But with the additional capacity that’s now in the market over where demand is kind of falling to and supply chains obviously ease globally, have you been experiencing any customer shift or pressure on your contract at this point in time in the North America business?
Dan Fisher: No pressure on the contracts at this point. I think a good reflection of that commentary would be the fact that we’re passing through the inflationary mechanisms. So, if you weren’t seeing that come through, I think you could probably could see that there’s been some negotiation that’s taken place. And that’s not the case. The way I would look at volume, I think we’re in a short-term dislocation for the second quarter and the third quarter because of mass beer. That correction relative to curtailments or decline shipments will revert in the second half of the year, but more meaningfully in the first half of 2024. The other thing that we’ve done is we’ve managed to inventory. So we built too much inventory last year.
We’ve worked that off. So there’s been an elevated level of curtailments relative to versus 2022. We’ll be running much closer to scanner data in 2024 and Q4 likely to be a lot closer to scanner data. So those are the things that are well understood within the industry and with our customers. I think the theoretical excess capacity versus the reality versus the intentionality of running to cash, all of those things stabilized heading into 2024 in a, what I believe is a much tighter marketplace with growth underpinning every industry participant moving into 2024.
Unidentified Analyst: Understood. Thank you for the details.
Dan Fisher: Thank you.
Unidentified Analyst: And then just touching on the, I think if I heard you correctly in the early part of the call, you said you were still exploring opportunities to accelerate the leveraging efforts. Could you maybe just talk a little bit more about what you were referring to? If that maybe meant some smaller divestitures or, other actions that you’re taking for that do leveraging efforts?
Dan Fisher: No, we have what we were referring to as, you know, we’ve generated a lot of cash here in the back half of the year. We’re sitting out a lot of cash. And so we have the flexibility to, you know, pay down whatever piece of the debt we want to pay down. And so that’s really what that’s about.
Unidentified Analyst: Okay. Understood. Thank you very much.
Operator: Thank you. Our next question is from the line of Gabe Hajde with Wells Fargo Securities. Please go ahead, your line is open.
Gabe Hajde: Dan Scott, good morning.
Dan Fisher: Morning
