We expect depreciation to be largely in line with the CapEx to basically continue to invest. It’s really the amortization that makes the difference. And now that we are excluding healthcare, it’s about $600 million of difference, and we would expect that to continue for years. And on working capital, I would say there are a couple of different parts here. We do continue to see opportunities in improving our working capital management, especially after the year with the pressure that we see on the supply chain. So, we see opportunities both to improve to so and inventory turns on receivables and inventory. But also when we look at progress and contract assets, we expect both to be sources given where we are in the cycle. Finally, on AD&A, it’s not working capital, but it’s also a driver.
And this year, we are expecting negative $0.5 billion of flow and we have had a couple of years with positive flow from AD&A. So, for the next couple of years, we can expect that to be pressure. But over time, we would also see that normalizing. So, overall, we do see opportunity to continue to improve and we will continue to work that. But for now, we are focused on growing earnings.
Operator: Our next question comes from the line of Chris Snyder with UBS.
Chris Snyder: Thank you. I wanted to turn the conversation over to the aerospace business and specifically margins. I understand the general flat lining of margins in 2023, given the mix towards equipment. But I guess my question is, how long should we expect these mixed headwinds to persist? Should we model margins higher coming out of 2023? And is there anything keeping the segment up from returning to that 21% level achieved in 2018, 2019? Thank you.
Larry Culp: Well, we are delighted to talk about aerospace. So, let me jump in. We had a very strong finish, as you saw margins up to nearly 19%. But Chris, as you know, this LEAP dynamic and frankly, mix overall will be a pressure for us in €˜23. I think as we look at margins next year, rather this year, we would expect they would be flat, but the revenue growth will give us an opportunity to drive profit growth up, call it, 15%. I would call out two things in €˜23. One, we do expect new units to grow more rapidly than services, that’s a headwind in and of itself. And then the LEAP dynamic, both within services and within new units will create the mix pressure that I suspect will remind folks about through the course of the year.
That said, I don’t think we look at 18% as some sort of ceiling that we cannot pierce. We continue to have, I think a lot of optimism about the LEAP program and the opportunity to improve margins both with new units and in the aftermarket as we go forward. The program is still very much a young one. I think at the same time, we know price-cost hasn’t been as challenging, but it has been challenging at aerospace. We will do a better job, I am sure as we go forward. And our lean efforts, I think very much is an intendancy. You will see that both in the P&L and I think in the cash flow statement. So, I don’t think this is necessarily a €˜23 and done dynamic. That said, our expectations would be as we go forward, all in to continue to drive top line growth, profit dollar growth and margin expansion at aerospace.
Steve Winoker: Liz, we have time for one more question.
Operator: Our next question comes from Deane Dray with RBC.
Deane Dray: Thank you. Good morning everyone.
