Neil Johnston: No, Ron. Generally, what we’re seeing is, with the lower earnings, we’re seeing the lower earnings being offset by the release of working capital. Our teams in the field have done a phenomenal job really focused on working capital. And so we are seeing the benefits of that. We’re also seeing lower cash taxes as a result of the lower earnings. So those are sort of the items that are driving the free cash flow but nothing specific and onetime. We do think cash flow this year is going to be very strong.
Operator: [Operator Instructions] The next question is from Stephen Sheldon with William Blair. Please go ahead.
Pat McIlwee: Hi, Neil and Michelle, you’ve got Pat McIlwee on from William Blair. My first question is, with US office vacancies near 20% now, how much do occupancy trends in that space impact the demand you see for outsourcing services in your PM/FM business? And has that been or would you expect that to begin weighing more on growth in the business at all?
Michelle MacKay: I mean let me just come back to you with that question. So do you mean that the vacancy in office buildings impacting our services business?
Pat McIlwee: Correct. Yes, demand for the outsourcing service.
Michelle MacKay: Yeah. I think the way that we’re thinking about it now is that we think we’re nearing the end of the remote work impact. So we’ve seen a lot of it happen already, right? And something to keep in mind is that the average lease in the US is about six or seven years long, and most businesses have already made their decisions on space. So either they signed a new lease likely for less space or they’re still in their existing space or they listed their space to sublease. So a lot of this has already played through the system. We did have some impact over the course of 2023 in the office portfolios that we manage. But I wouldn’t anticipate a material change in that over 2024.
Pat McIlwee: Understood. Thanks. And then just as a follow-up, a little bit further on the cost-saving initiatives. So we’ve heard peers say that they’re looking a bit more producer headcount given the longer expected downturn. And I’m just curious if or how your strategy has changed on that front in terms of maintaining recovery — capacity for recovery versus supporting margins until we do see that recovery.
Neil Johnston: I think we’ve always been very focused on the return of any investment we’re making in producers. And so I think we’ve been very prudent with our capital allocation. We feel good about the investment we’re making in growing our produce in our recruiting and our retention. And I don’t see that changing as we move forward either — in either direction. So we feel very good about our production capacity and how that sets us up for any potential recovery in 2024.
Michelle MacKay: Yeah. And just to give you a little bit of our philosophy around it, we look at talent much like we look at our portfolio of businesses, right? And like in any business, we question, is that team or individual focused on what we consider core strategy, an area that we’re really focused on? Do the economics of that makes sense, right? What do we want in new talent that we’re bringing in? And so we’re always paring and pruning our talent so that we have advisors in the shop that really drive the future of the company. So I think that when you think about it, movement for us, meaning people leaving and people coming in, is going to be a normal course of business at Cushman.
Operator: Your next question is from Patrick O’Shaughnessy with Raymond James. Please go ahead.
Patrick O’Shaughnessy: Hey, good evening. So what would the implications of a potential WeWork bankruptcy be on your strategic relationship with WeWork? Are there any tangible risks to any revenue streams?
