Nigel Coe: Okay, great. I’m sorry I missed the order number. Thanks for clarifying that. And then on the backlog, backlog down from $6.9 billion to $6.6 billion QoverQ, maybe just clarify, I don’t think that’s unusual from a seasonal perspective. I think it’s normal to see 4Q backlog consumption. Was there any FX revaluation impacts there? I just want to make sure that I understand the organic movement there.
Mike Baughman: No, that’s on a consistent GAAP basis.
Nigel Coe: Okay, great. Thank you.
Operator: The next question comes from Scott Davis with Melius Research. Please go ahead.
Scott Davis: Hey, good morning, everybody. Congrats on all the stuff done.
Lal Karsanbhai: Good morning, Scott. Lal, it sounds like you were just in China, if you were around the world, and it seems pretty topical to get an update from what maybe you saw there. I’ll just leave it there.
Lal Karsanbhai: Yeah, I actually, on this particular trip, did not hit China. We’ll do that later in the year. I was there in May. But having said that, look, we had a very good year in China. We exited orders at 11% in China. So feel good about the momentum there again. The investments there really around energy security and nearshoring are very significant. Sales were in the mid-single-digits for the year, and — but we continue to see robustness in our core process and hybrid spaces. And not unlike what Europe and the United States struggling on the discrete side, but certainly the process hybrid strength will continue as we expect into 2024.
Scott Davis: And then the discrete in China is negative I’d assume this quarter?
Lal Karsanbhai: Yes, it is negative in the quarter. Yes, sir.
Scott Davis: Okay. I’ll pass it on. Thank you, guys.
Lal Karsanbhai: Thanks, Scott.
Operator: The next question comes from Joe O’Dea with Wells Fargo. Please go ahead.
Joe O’Dea: Hi, good morning. Thanks for taking my questions. One, just on the NI earnings contribution for the year, $0.05 in the first quarter would be kind of running, I guess, $0.10 a quarter or a little better for the rest of the year. But any more detail on that cadence? Anything that’s sort of cost heavy up front and then the progression through the course of the year as you’re thinking about that earnings contribution?
Lal Karsanbhai: No, I don’t have anything else to add, Joe. I mean, obviously, there’s a — as Ram expressed, a volume expansion as we get to the second half of the year that will drive leverage and incremental profits, but that’s really what the tale of the tape there is.
Joe O’Dea: Okay, and then on the R&D side and the step up to 7%, it sounds like it goes even higher in ‘24. Any context on that? And then sort of an additional insight on sort of the products and verticals that are getting outsized investments, as well as what your returns focus is on R&D, the prioritization around share gain or sort of the revenue dollars that you want, returns on R&D investment, any sort of context around that?
Mike Baughman: From a dollars perspective, yeah, we get the benefit of Aspen coming in, that mixes us up, and then NI comes in, and that also mixes us up. So you’ll continue to see that commitment to growth, innovation, accelerate and increase as we move on. And in terms of where the investment is going, a lot of the investment really is across the four technology areas we’ve consistently showed you guys. It’s disruptive measurement which is the sensing technology in our measurement technologies business, our automation system, the next generation automation system that Lal referenced in the presentation, and also collaborative technology development with Aspen around asset performance management. So those are the areas where we see lots of opportunity in terms of new-to-the-world type innovation that we can drive as an automation company and that’s where the investment is going.
Joe O’Dea: Thank you.
Operator: Next question comes from Christopher Glynn with Oppenheimer. Please go ahead.
Christopher Glynn: Thank you. Good morning. I was curious about the funnel conversion comments. I think last quarter you indicated that the conversion rates of those are picking up as the size of the projects ramps and some of the newer technologies and applications. So, just curious, trend line if you see in further acceleration and how much of that notion is baked into the fiscal ‘24 guidance or could that be an opportunity?
