Bill W. Wheat: Susan, from the size and scale of our business today and the volume that we have in terms of just our constant production of inventory, the cash balance we have on the balance sheet today is in the range of where we’d like to be. So cash across our business segments and the availability under our credit facilities. We would like to maintain the current level and as we scale up over time, we’d incrementally increase that level over time. With our plans this year and our guidance on share repurchase in fiscal 2024, we are increasing our share repurchase by 25% this year from $1.2 billion to $1.5 billion, and that’s just part of our plan to be consistent with our distributions to shareholders as well, increased our dividend this year as well, expect to spend $400 million on dividends this year.
And so that is an increase over last year and our plan would be to — as we continue to scale the business, continue to be able to increase incrementally those repurchases and dividend levels.
Susan Maklari: Okay, thank you and good luck.
Operator: Your next question for today is coming from Rafe Jadrosich at Bank of America.
Unidentified Analyst : Hi, good morning. It is Reese. Thanks for taking my questions. Just on the outlook that for an improvement in build cycles in 2024, can you talk about where your build cycles are now where they were last quarter, how much do you think that can improve, and then like what gets you there from a supply chain perspective?
Jessica Hansen: We were just over four months this quarter, Reese. And when we think about our historical norm, it really is right at that four months in terms of start to complete, and then there’s an additional time from complete to close. That’s down from seven months a year ago. So a very substantial improvement in terms of year-over-year basis. Sequentially, it improved by about 10 days. So when we think about further improvements from here, they’re not large moved, they’re just continued improvements on average. So where hopefully, we can get below four months but that’s not something that we expect to drive from 4 to 2.
Unidentified Analyst : Got it, thank you. That’s helpful. And then I just wanted to follow up on the comment that you’re seeing encouraging signs as we head into the Spring season. Can you just give a little bit more color on what you’re seeing, is that better home buyer traffic or conversion, and do you think that’s just driven by sort of the headline rate number that’s coming down, just want to understand what you’re seeing that’s encouraging in the market.
Michael J. Murray: I think there’s lots of reasons people are out looking for houses, but ultimately, they need a house, and we’re seeing both good traffic and good convergence early in the Spring. And so we have set up operating plan for the year. And so far, we feel really good about how the market is responding to that.
Operator: Your next question is coming from Matthew Bouley with Barclays.
Unidentified Analyst : Okay. In terms of the land market, are you seeing a pickup in land development into 2024, I know that you said that things can kind of get a little bit more crunched as the demand increases. How are you thinking about land development costs and lot costs moving higher and kind of offsetting that?
Paul J. Romanowski: For us, we are set in terms of our consistent delivery of loss into our starts plan. And so that plan is in place for us as we look 12 months out. We have not seen much reduction in development costs and wouldn’t expect with the shortness of lots across the industry that we’re going to see, and we’re not anticipating much reduction in either the labor side or the supply side, product side of the components that go into developing lots. But we have a plan that we have stuck to and are consistent with, we feel good about our lot position in the near term and as we look next year or two out.
Unidentified Analyst : Okay, thank you. And then just kind of switching over to affordability. Aside from rate buy-downs, is there anything else that buyers have been kind of responsive to as far as like the levers that you have to kind of make payment work for them or has there been a type — any sort of change to those strategies?
Michael J. Murray: Product selection, generally, they’ll buy a smaller home to make the payment work. And sometimes that’s within an existing neighborhood or moving to a different neighborhood that’s offering a smaller set of plans.
Jessica Hansen: So our square footage was down again about 3% year-over-year. It was relatively flat sequentially, but we would expect just continued gradual moves down from a mix shift perspective in terms of average square footage.
Unidentified Analyst : Thank you very much.
Operator: We have reached the end of the question-and-answer session, and I will now turn the call over to Paul Romanowski for closing remarks.
Paul J. Romanowski: Thank you, Holly. We appreciate everyone’s time on the call today and look forward to speaking with you again to share our second quarter results in April. Congratulations to the entire D.R. Horton family on producing a solid first quarter. We’re proud to represent you on this call and appreciate all that you do.
Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.
