Carey Dorman: So you take that $15 million over the full year guide, you’re talking $3 million or $4 million a quarter. There’s not a lot of other things that happen in Q1 that should make a big difference from the Q4 run rate. We did have a small release in bonus and in some long-term incentive associated with what we landed a year. So call it a $5 million sequential pickup from Q4 is probably the right way to think about it. Then when we get to the second quarter, we do start to see our — the other piece of the inflation on cost which relates to cost of living adjustments and merit increases. So maybe it’s a slight incremental step up Q1 to Q2, I think that’s the right ballpark.
Jonathan Tanwanteng: Got it. Thank you. And finally, you had a large tax item in Q4, and I was just wondering what that means for you going forward on effective and a reported tax basis and then cash taxes.
Carey Dorman: Sure, yes. So we did some really effective tax planning in 2023 that we’ve been working on for a couple of years. And what you know to Jon is correct, we took a pretty nice credit in the quarter. We basically added around $50 million of deferred tax assets to our balance sheet that will benefit us over the next five years or so, as we estimate. We think that will keep our cash tax rate in and around 20 [ph] maybe picking up slightly from that over the next couple of years. But what that asset will do is will effectively allow us to keep not paying meaningful U.S. tax for the next five years where prior to that planning, we expected to be paying U.S. tax in the next one to two years.
Jonathan Tanwanteng: Understood. Thank you.
Ben Gliklich: Thanks, Jon.
Operator: Your next question comes from the line of Chris Kapsch with Loop Capital Markets. Your line is open.
Christopher Kapsch: Yes. Good morning. So in your formal remarks, you mentioned that, I think it was in your assembly business that volumes outpace the PCB market’s growth. I assume this is some indication of having gained share. I just wanted to get some more color. Is that accurate? Is the outperformance, is it a function of your over-indexing to higher growth applications or is it actual share gains in sort of the existing or core business or it’s little bit of both?
Ben Gliklich: Sure. The assembly business had a much stronger 2023 than the circuit board and semiconductor businesses. It’s driven by greater concentration in the automotive market, which was healthier than the smartphone market, and call it higher end consumer electronics markets. It’s driven by innovation, which has been driving share both in terms of next generation phases with higher performance attributes. We’ve introduced some new alloys that are higher reliability than what had previously been in the market, which have really interesting applications, not just in automotive, but also in infrastructure markets. And then our power electronics business sits, a portion of it sits within the assembly business, and that’s been very strong. So there’s innovation, market share gain and end market dynamics that are supporting that outperformance in the assembly business.
Christopher Kapsch: That’s helpful. I appreciate that. And then one on Kuprion, I know you’ve expressed a lot of excitement for the technology, and you had some comments about the progress in commercializing with some leading chip makers. And just wondering if, as you have more visibility to that product, future success, if you think the applicability of the technology is solely for the more advanced and complex architectures or is there benefits to the device also such that you could displace alternative copper solutions and legacy devices? Just trying to get a sense for when you might want to take a stab at the TAM [ph] there and when this starts to move the needle in your perceptions? Thanks.
Ben Gliklich: Thank you, Chris. So Kuprion is really exciting. Our commercial traction is greater than we expected it would be, and our progress towards commercialization is faster than we expected it would be. We expect there to be some revenue contribution in the back half of this year and EBITDA contribution in 2025, probably a bit earlier than we thought it would be when we sort of embarked on this journey. The applications for Kuprion span our electronics business. So originally we thought it would be primarily a dye attached [ph] material, which is in semiconductor assembly and advanced packaging. We’re finding that it can also be a circuit board material used to metalize next generation IC substrates. In fact, that’s where more of our traction has been; because the qualification cycles are shorter there than in the semiconductor market.
So the breadth of applications is wider, the customer engagement is better, and it’s on track to be a pretty significant contributor in the medium term here.
Christopher Kapsch: I appreciate the color, thanks.
Ben Gliklich: Thank you.
Operator: [Operator Instructions] Your next question comes from the line of David Silver with CL King. Your line is open.
David Silver: Yes, hi, good morning. I’d like to ask maybe if you could comment on your outlook for your overall business in China, maybe from a couple, two, three-year outlook. But over the last year or two, there’s definitely been some shifts in terms of trade restrictions and I guess the positioning of some of your major customers, re-shoring, on-shoring et cetera, but I think it’s still your largest country business in terms of revenues outside of the U.S. If you could maybe just discuss your thoughts on your opportunity set in that market, and if there are some shifts in either your resourcing for that region or how you expect your business in that country to evolve? Thank you.
