Aaron Alt: I would just add one thought, which is in Q4, we saw strong volume, as Jason highlighted, but overall consistent market dynamics. And indeed, as we look forward, Jason called out the unit growth, but we are also guiding to consistent market dynamics for the upcoming year as well.
Jason Hollar: Next question please.
Operator: Next question today comes from A.J. Rice of Credit Suisse.
A.J. Rice: Thanks. Hi, everybody. I know on your Medical side, there’s a lot going on, and you’re a little more skewed toward inpatient than some of the others that have reported. But we’ve heard this discussion about an uptick in utilization from some of the providers. And I wondered if I peel back everything that’s going on in Medical, did you see any change in behavior on the part of your customers to suggest that there was an uptick in utilization? And then just on the PPE comment, you’re calling it normalization of profits from here. Do you think sequentially from here, we’re pretty steady? And as we return to a normal environment, is there any seasonality around that category to call out to remember when we get back to a normal environment?
Jason Hollar: Yes. The utilization, we think, has been fairly consistent. I wouldn’t call it an acceleration or anything. We’re seeing pretty consistent underlying same-store sales type of growth. So it’s sufficient within our business model and where we laid it out from Investor Day, but I wouldn’t call out anything unique there. As it relates to PPE normalization, a couple of points. So normalized is good for us. This is not a category that we’ve ever made a tremendous amount of money and value. It’s an important category for our customers. And so we do everything we can to satisfy their needs. So going forward, our objective is to ensure that we get customers the product they need and minimize the volatility that goes along with that.
But I just don’t see it being a material driver one way or the other. Recall that the challenges with PPE was that we had volatile price cost and volume all at once. What you have right now is a normalization that’s been occurring over the last couple of years of both price and cost has been coming down somewhat steadily. And they’ve been staying in a relative type of spread close enough to one another that, that’s been manageable. And it’s that volume that’s been a little bit more challenging. We’ve highlighted that it was destocking beginning about — well, over a year ago now in terms of the underlying volume there. But given the margins are relatively tight for this type of product, getting those margins right and relatively low margins means that the volume volatility or the lack of volume growth is not much of an issue for us, because it’s just not a large contributor of incremental volume or incremental margins.
So we’re at a level that I think it’s fairly stable, and it’s our objective to keep it that way. Next question, please operator.
Operator: Our final question today comes from Brian Tanquilut of Jefferies.
Unidentified Analyst: Good morning. This is [indiscernible] in for Brian. I had a question about your capital allocation priorities for the fiscal year ’24. Generated quite a bit of free cash flow this fiscal year. And I’m just curious if there’s any specifics you can get into with regards to where you see capital allocation in the next fiscal year? Thank you.
Aaron Alt: Hi, great question. Thank you for putting it on the table for us. Look, we were very focused on our Investor Day in laying out the disciplined capital allocation decision matrix that we apply. And we were also very pleased to see the overall cash generation for fiscal ’23 and Q4 in particular. Here’s the simple answer. We’re going to do what we said we were going to do at Investor Day in that respect. And just as a quick reminder, there are a couple of things which are table stakes for us, which is first, we’re going to invest back into the business to drive the organic growth. We spent 480 in fiscal ’23. We’ve guided we’re going to spend about $500 million in CapEx against our business plans across the business. Our second priority, of course, is maintaining our investment-grade balance sheet.
