Craig Kennison: That helps. And if I could sneak in one more, Jeff, on Purple Wave. Just curious if you’ve made any — you’ve taken any initiatives since you’ve acquired a stake in that business and maybe highlight what those might be?
Jeff Liaw: Fair question. We’re very excited to have them as our partners in their arena, the leadership team there, Aaron, Susan McKee, and others are terrific. And so by and large, I think I described them as leading the charge with their customers, their community and so forth and doing a terrific job of it. So yes, we are finding ways to support one another efficiently, but it’s principally about backing what we think is one of the very best teams in the industry.
Craig Kennison: Great. Thank you.
Operator: Our next question is from Bret Jordan with Jefferies. Please proceed with your question.
Bret Jordan : Good evening, guys. Could you talk a bit more about the international market as far as various country performance?
Jeff Liaw: Yes, I think we’ve seen strong unit volume really across all of our geographies. As you know, Brett, they are in various stages of maturity. The U.K. as a business, of course, looks a lot like ours. And they like ours here in the U.S., and as a result, we’d see the same total loss trends and with the results being driven in large part by the same factors we see here. In places like Germany and Spain, those, of course, are newer businesses for us. And so changes there are driven also by market share wins and conversions and so forth. So there are more local dynamics specific to those countries. But I think performance across the board has improved year-over-year.
Bret Jordan: And then I guess in the Blue Car or just the noninsurance business in general, could you talk about the unit economics? Are you getting a better seller fee because you’re not negotiating with a very large insurance company for high volume? Or as you’re growing that business, do you charge a lower seller fee to get the volume?
Jeff Liaw: Yes. I think for a host of reasons, Brett, we don’t talk about the seller fees that we charge. We certainly endeavor to provide the specific type of value is requested by a given seller and the range of service varies tremendously, even among sellers within a specific seller type. Even among insurance companies, we perform a very wide range of services for folks and different portfolios for each. And the same is true on the non-insurance side as well. As for the unit economics they — we tend to do well in those domains because the ASPs are high, but they are also, in some cases, higher touch and more transactional by nature, as you’ve heard us comment on in the past. There’s something very scalable about a large insurance company with whom we have elegant B2B integrations and so forth that tends to be less true among the smaller sellers.
Bret Jordan: Great. Thank you.
Operator: [Operator Instructions] Our next question is from Ryan Brinkman with JPMorgan. Please proceed with your question.
Unidentified Analyst : Hi, good evening and good afternoon. This is Josh on for Ryan Brinkman. Thanks for taking our question. Just maybe the first question on capital allocation. Could you maybe share your latest thoughts around capital allocation and how you’re thinking about capacity expansion and category diversification into 2024? Thanks, and then I have a follow-up.
Leah Stearns: Sure. I’ll touch on capital allocation, and Jeff can jump in. Just from an overall allocation perspective, we do focus our priority from the top of the list for our core business. So we are constantly focused on adding capacity, the ability to serve cats. From a cost perspective, we’re managing our yard distribution to ensure that we have optimal positioning from a cost perspective for [indiscernible]. So investing in real estate, investing in our logistics capabilities and ultimately, our technology platform to serve our customers is our number one priority from a capital allocation perspective. Beyond that, we do look at expanding geographically. We look at complementary adjacencies as we expanded with Purple Wave earlier this year.
And from an overall corporate development perspective, we do find ourselves with lots of opportunities to assess potential targets. However, we have a very high threshold for how we think about generating returns long term. And we have an incredible track record and we endeavor to continue to perform along those lines. And so for us, we remain incredibly patient on the capital allocation front as it relates to deploying capital through M&A and through investments. We do seek to enter into partnerships with complementary companies that can serve our customers alongside us in a very efficient fashion. And so we’ve done that with folks at companies like Hi Marley, where we’ve endeavored to solve problems for our customers that collectively we can do more efficiently together than we can do alone.
And then ultimately, historically, to the extent we had excess cash, we have leveraged the share repurchase program, but have done so very opportunity. And so going back to my prior comments, I would just point you to, we remain incredibly disciplined and very patient. And we’ll act when we see tremendous value to create on behalf of shareholders.
Jeff Liaw: The one after thought I’d offer is that our capitalization with our clients is a distinctive competitive advantage. Our conservative balance sheet, our net cash balance equips us such that we can be patient even through a crisis. So in the midst of a pandemic when nobody knew for how long driving an economic activity would be shut down. We were able to continue our business as it stands today. We didn’t lay off folks. We didn’t suspend CapEx, et cetera. Our insurance clients have a long memory, and they know those things. They know that when land is available for us to acquire so that we can preserve it for the industry’s use for the next 50 years then we’ll do so gladly and proudly despite it, of course, coming with big ticket prices as well. So the point there is that capital allocation is not a subject in isolation. It’s also a commercial matter that affects how we interact with our customers as well.
