Steve Volkmann: Hey, good morning, everybody. Thanks for fitting me in.
Jim Umpleby: Good morning, Steve.
Steve Volkmann: Jim, I wanted to go back, if I could, to a response to one of the earlier questions where you talked about supply chain has kind of improved a little bit, but it’s still causing productivity issues. And I guess I’m trying to think that through as we go forward, if supply chain continues to normalize, is there any reason to think we wouldn’t get that productivity back?
Jim Umpleby: Well, certainly, that’s what we’re driving our teams to do. And one of the things we talked about, of course, is we have still constraints in large engines. And that — we’re not — clearly, we’re not running as lean as I would like in that area. And of course, when you have some issues in engines, that can also impact machines as well, just because of the dynamics of shipping engines to our machine lines. So certainly, our goal is to become more lean and to get back into a better operating cadence. And it has improved and supply chain conditions have improved, but we still have a ways to go. But again, difficult to predict how long it will take that to happen. Our engine investment, as we mentioned earlier, is a multiyear investment to increase that capacity for both new engines and for parts. And that — I think that will be an important element of us achieving better lean operations and getting some of that inventory out internally.
Operator: And your next question comes from Kristen Owen with Oppenheimer. Your line is open.
Kristen Owen: Thank you so much for taking the question. Just a longer-term question here related to the hydrogen fuel cell pilot program, just given that secular growth opportunity in data center, how quickly can you commercialize this? And should we expect the business model for Cat to be more systems integration and components or is there some additional vertical integration in like the balance of systems that is being supported by this capital campaign that you outlined? Thank you.
Jim Umpleby: Yeah. Again, most of the capital — the investments that we’re making around large engines, around parts, and new engines, that’s really what the focus of it is.
Andrew Bonfield: Yeah. And so, I mean, overall, when we look out, one of the opportunities for us, particularly when Jim was talking about distributed generation, was the fact that, obviously, grid stability is going to be an issue. And one of the things that’s going to be needed is there are system hole, system projects that will be part of that. So I think there is definitely an opportunity for us there to think more broadly about services in those environments as well.
Ryan Fiedler: We have time for one more question.
Operator: Thank you. And today’s final question comes from Stanley Elliott with Stifel. Your line is open.
Stanley Elliott: Hey, good morning everyone. Thank you very much for fitting me in and congratulations. And can you talk a little bit more about the free cash flow? I mean, you got $1 billion to $2 billion more additional that you’re looking at and targeting. You’ve done a very nice job of increasing the dividend on a steady basis. Should we think of this as accelerated repurchase activity into ’24? Is there something on the M&A front? Any color there would be greatly helpful. Thank you.
Jim Umpleby: Yeah. Really, what we continue to talk about is the fact that we will — we intend to return essentially all free cash flow to shareholders over time through a combination of dividends and share repurchases. In terms of M&A, we’re always open to opportunities. But frankly, we believe we have outstanding opportunities to grow our business organically. And so while we have made some relatively small acquisitions to do things like games and technology, or we think about the [SPM and oil] (ph) and gas to expand our product line a bit, we’re really focused on organically growing our business because we think we have great opportunities around services. We talked about the secular growth trend around data centers. We — LNG — conditional LNG exports, the fact that the energy transition will create opportunities for commodities increase over time. So again, our primary focus is on organically growing our business.
Jim Umpleby: Okay. With that, I just would like to thank everyone for joining the call. I appreciate all your questions. I’d like to just close by thanking our global team for another great quarter and just an exceptional record year. As we discussed, we’re increasing the top end of our target range for adjusted operating profit margins, and we’ve raised our target range for ME&T free cash flow. And this reflects continuing healthy customer demand as well as our strong operating performance. And we remain focused on executing our strategy and continue to invest for long-term profitable growth. Again, I appreciate you joining us. Stay safe.
Ryan Fiedler: Thanks, everybody, and thank you, Jim, Andrew and everyone who joined the call today. A replay of our call will be available online later this morning. We’ll also post a transcript on our Investor Relations website as soon as it’s available. You’ll also find a fourth quarter results video with our CFO and an SEC filing with our sales to users’ data. Click on investors.caterpillar.com, and then click on Financials to view those materials. If you have any questions, please reach out to Rob or me. The Investor Relations general phone number is (309) 675-4549. Now let’s turn the call back to Abby to conclude our call.
Operator: Thank you. Ladies and gentlemen, that concludes our call. We thank you for joining. You may now disconnect.
