Barry C. McCarthy: So I think in the merchant business overall, we continue to see robust volume and there’s lots of media attention about and speculation what’s happening in SMBs. But I think overall, we’re seeing pretty solid volume there. And our fourth quarter delivered exactly what we expected it to do. I’m sure you’ve seen the commerce department numbers for December, but we didn’t experience that. We delivered the quarter and the way we expect it to deliver it. So we feel like the variety of business we have there and the — verticals where we compete, help balance each other out in good times and in tough times. We feel like that’s a pretty solid business right now.
Unidentified Analyst: Alright, thank you.
Operator: Your next question comes from the line of David Silver from CL King. Your line is open.
David Silver: Yes, hi, good morning. I think I have a first question would be on your free cash flow forecast and then I’d have a maybe a more strategic question about SaaS-generated revenue. Regarding your free cash flow, the $80 million to $100 million range you provided, I mean, I’ve noticed that, that’s kind of in the range of the last two years. And I think the term is kind of maybe a flywheel, but is it the case that should operating results exceed your budget, you may increase your discretionary spending and kind of keep your free cash flow within that targeted range? Or alternatively, if results fall a little below target, would you cut back on investments, let’s say, either capital spending or working capital, again, to kind of keep that free cash flow within a targeted range, I mean, how should we think about that free cash flow target in terms of flexibility there or how inviolate it might be?
And then secondly, on your CAPEX spend, let’s say, of $100 million. Can you remind me what the sustaining portion of that is versus what you would consider discretionary spend? Thank you.
Chip Zint: David, it’s Chip. So on your first question, so the guidance of $80 million to $100 million, keep in mind, we’re kind of approximating that the divestiture is roughly a $20 million impact to that. So all things equal, that’s a guidance range of more $100 million to $120 million based off apples-to-apples, which you’ll see is getting us back to kind of our — towards our historical range that we were two to three years ago despite all the increases and interest costs. So I think that’s a good place to land. To hopefully answer your question though, when we set the investment target for the year, whether it’s the $100 million CAPEX or anything we may do inside the P&L, we actually look to achieve those, if not underspend those.
We don’t look to throttle up discretionary investment just because the results are trending better. We view those as kind of starting points, and we’re going to do our best to spend our money wisely, come in under and make sure we can over deliver the free cash flow the best way possible because there’s many of other — interest expense or taxes. We know we have to manage this. So I wouldn’t be concerned that if operating results trend better that we’re going to throttle up investment. That’s not what we would do. And to answer your last part of the question, in the guide of $100 million, I would think of it as kind of roughly $40 million to $45 million of that is kind of the sustaining. We call it KBR, keep the business running side with the rest of it, the kind of 55 to 60 being growth related.
So high level, 60-40 growth to maintenance capital. And as you know, we’re doing the print on-demand upgrade in check. So that’s something that we’re halfway through. So over time, that work will go down. And we just continue to invest responsibly in our growth products with payments and data and to try to make the company more efficient.
