Patrick Cunningham: Yes. That makes sense. And what’s driving strength in acetic anhydride, and I think you referenced overall resilience in acetyls? I would have expected some weakness given declining spreads in some of your end market commentary?
Mark Costa: Well, for acetic anhydride, it goes more into food, pharma, feed type applications that — where the demand is actually really stable. So it’s not acetic acid goes into polyester where demand is down a lot in textiles. VAM goes into coatings and a bunch of other more economically sensitive applications. When you think about different acetyl derivatives, acetic anhydride just has much more stable in markets. And large customers that place a lot of value on security of supply of that product for those kind of applications, so they tend to be more focused on supply than just what’s the best price. So that just allows that business to be relatively stable. I mean we’re still — we have some price pressure there, but it’s not nearly as much as some of these other sort of derivatives or in olefins, which is the bigger part of our portfolio where the price pressure and spread compression is occurring in CI is really more of an olefin and plasticizer story.
Patrick Cunningham: Very helpful. Thank you.
Operator: [Operator Instructions] We now turn to Laurence Alexander with Jefferies. Your line is open.
Laurence Alexander: I guess just two quick ones. As you think about the dynamics around inventories and fixed cost absorption, should incremental margins next year be above 60%? Or do you think some of the inventory reduction efforts you’re doing now will spill over into Q1?
William McLain: Laurence, this is Willie. To your point, I think we’ve demonstrated through various environments, one, that we can deliver strong cash flow, and that’s what we’re focused on doing now. As we think about the fixed cost utilization, I don’t expect any spillovers into 2024. The actions that we’re taking will be complete this year. Also on the incrementals, I think you’ve seen the decrementals that we’re talking about. The incrementals will be equally positive. And I would add on to that, to your point, to get to the levels that you’re talking about, that includes the mix upgrade and the high-value products as we think about our Advanced Materials and the more specialty nature there.
Laurence Alexander: And secondly, kind of now that your peers are facing kind of more pressure on — from the credit cycle, you always seem to have a sweet spot in M&A around finding people who are underinvesting in the engineering. Has your M&A pipeline changed? Or can you characterize kind of how actively you’re looking at opportunities?
William McLain: Yes. We’re more focused on the bolt-on pipeline. We did a great bolt-on earlier this year in our Performance Films business. We’re right now focused on our organic growth strategy with our investment in the three circular platforms. We are looking — our pipeline is mostly focused in smaller bolt-ons in Advanced Materials and Additives & Functional Products. And we’re going to be disciplined with that strategy and stay focused on executing and in executing it well.
Mark Costa: Yes. The restate acquisition we did of a manufacturing site in China is a great example. Performance Films business has been performing incredibly well in this auto market last year, in this auto market this year. It’s a very high-margin business. And that acquisition allows us to be domestically based on how we support customers in China, which is definitely where the China government wants to go is things made in China. And those are great tuck-in acquisitions. Very highly accretive. Those are the kind of things we’re focused on right now, because our real priority is growing our dividend and creating this sort of organic-driven growth story around being a leader in the circular economy, both polyester and cellulosic.
