Michael Shlisky: Yes, hi. Good morning and thanks for taking my questions.
James Umpleby: Good morning.
Michael Shlisky: Good morning. So historically, prior to the pandemic, your operating margins in the fourth quarter were usually a bit of a step downward compared to the third quarter. That’s mainly construction and resource. I think it got a little off better than the last couple of years, obviously, for a few reasons. But I was wondering if you could tell us whether you will be back to that sort of more normal seasonality on margins here in the second half of this year or if operationally, these have kind of changed permanently here?
Andrew Bonfield: No. I think that definitely, we would expect a step down in margins in the fourth quarter in both, particularly in Construction as is the normal seasonal trend. It does tend to be the lower production period. Also we may, again just as Jim mentioned, we will have the impact of the BCP changeover, which will impact us slightly more stronger in the fourth quarter. So there will be some impact as we move through the first quarter.
Michael Shlisky: Thank you.
Operator: And your next question comes from the line of Matt Elkott with TD Cowen. Your line is open.
Matthew Elkott: Good morning. Kind of a higher-level question on nonresidential construction. Good to see the tailwinds of the infrastructure packages continuing to materialize. But can you help us gauge what innings you think we’re in with these tailwinds? Can we expect like an acceleration next year or just steady? Thank you.
James Umpleby: Yes. Thanks for your question. I’m going to try to avoid a baseball analogy here. But as I mentioned earlier, we are starting to see some benefit of the numerous infrastructure bills that have passed. Some of that is coming from the states. But as you can imagine, permitting takes time for a number of projects. And it’s, as you can imagine, very difficult to judge exactly how long that permitting process will take and how this will play out. But I do expect it to last for some time. Difficult for me to estimate, all right, what will the acceleration be in a six-month or one-year period. But again, it’s a very positive thing for us, and it’s a positive thing for our customers that we have these projects coming down the pipe.
Matthew Elkott: Thank you very much.
James Umpleby: Thank you.
Operator: And your next question comes from the line of Stanley Elliott with Stifel. Your line is open.
Stanley Elliott: Hey, good morning. Thank you all for fitting me in. A quick question on the cash flow. You guys have pretty been consistent about discussing returning all the free cash. You have basically, let’s call it, another kind of $4 billion, $5 billion at run rate in the back half of the year. Should we think of all of that going back to share repurchases or using for other investments? Any thoughts there would be great. Thanks.
James Umpleby: Yes. As we said, our intent is to return substantially all of our ME&T free cash flow to shareholders through dividends and share repurchases over time. We do maintain a healthy balance sheet for a whole variety of reasons. When we went into COVID in 2020, I was very pleased that we had a strong balance sheet. We also have increased our dividend since we introduced our new capital allocation strategy. In May of 2019, we’ve increased the dividend per share by 51% since that period of time. So again, we’re proud of our Aristocrat status. So certainly wouldn’t be surprised. It’s a Board decision, but if we continue to increase our dividend and continue to share repurchases as well.
Operator: And today’s final question comes from the line of Jerry Revich with Goldman Sachs. Your line is open.
Jerry Revich: Yes, hi. Good morning everyone.
James Umpleby: Good morning, Jerry.
