We’ve done elasticity studies; we know where we’re headed with the price and the specific customers. And we waited to just get our pricing plan out the door in December and January for ’23. We’ll look at it into spring. And if we need to course correct, like we did in 2022, we’ll do so.
Tyler Brown: Yes. And so, to be clear, were you running inflation, call it like, mid-fives to six in ’22, and is that about what you expect it to be in ’23 as of right now?
Ned Coletta: So, we started the year a little lighter, on high fours, and by Q2 we got into low 5% inflation range. But Q3, we were close to 6% inflation. And we’re back down to about 5.4%. And we’ve modeled into next year, Jason, five-ish –?
Jason Mead: 5.5% first-half of the year, and then moderating through the year as we all hope and expect it’s closer to 5%, maybe a little less than 5% by the end of the year excluding fuel.
Tyler Brown: Okay, that’s helpful. And just quickly on the capping enclosure, is this $11 million kind of the new run rate or was — is it an idiosyncratic year of capping enclosure? I’m just curious about that.
Ned Coletta: It’s a unique year. We don’t cap at landfills every year. There’s just several sites that, from a regulatory standpoint and from a build out standpoint we’re capping this year. So, that change year-over-year, the plus $7 million year-over-year or plus $8 million is pretty unique. I mean that’s not something we’re spending money on each year. So, a little bit of a headwind to free cash flow there. And as I mentioned also — so there are some timing differences late in 2022, where some capital we expected to show up at the last minute rolled into 2023. So, it’s about $3 million of free cash flow that showed up in 2022 that should have been in 2023. So, there’s no break to our long-term goal of achieving 10% to 15% free cash flow growth. These are dynamic times, and sometimes little numbers move a little from year to year, but the trend is there.
Tyler Brown: Okay, perfect. And my last one here, on the $30 million under LOI, one, is that in core collection and disposal? And two, is it in your core geography or is it maybe a little bit outside, I’m just curious?
John Casella: It’s actually in the core platform in the Northeast, right down the middle of the fairway, and it’s in the core business as well.
Tyler Brown: Okay, excellent. Thank you, guys.
John Casella: But it’s mostly collection and recycling transfer.
Tyler Brown: Okay, thank you.
Ned Coletta: Thanks, Tyler.
Operator: Thank you. And our next question comes from Michael Hoffman with Stifel. Your line is now open.
Michael Hoffman: Hey, thank you very much. I have to throw a fade towards my competitor there, that’s a good question on the M&A, trying to figure out if you’re buying GSL is Pennsylvania, Maryland, or Delaware assets. I’ll ask it directly, are you? No, don’t answer that. Margin bridge, can you break up what you think your individual business margin the line of business, what is the trend expected to get to the 50 basis point solid waste versus Resource Solutions? And then can we bridge the whole company, like how much of the 50 is fuel becoming a tailwind, things like that?
Ned Coletta: I’m not sure I can do it by line of business here. Jason, can —
