Steven Downing: Yes, there’s — it’s going to be very — it’s going to be much less than what the last few years have been. One of our big push with OEMs has been, hey, we need some cost help on the bill of material increases that we’ve eaten by ourselves over the last 2 years. Some of those — some OEMs have been better about that than others. The ones who haven’t assisted there were having tougher conversations with about out-year productivity isn’t going to happen for a long time because we have to get back to where our normalized bill of material was a few years ago. And we’re eating labor costs that are much higher than what they were in the past. So what we’re looking at with each OEM is a different relationship. There will be some that will start in Q1, but it won’t be nearly as significant as years in the past. We’re — a lot of times 2% to 3% is kind of what we saw of the top on January 1. It’s going to be far less than that starting in ’24.
Charles Sloan: So Kevin, I just have a question on your mutual fund operations. On the $500 million in cash and marketable securities, how much of that is equity method. Can you disclose that?
Kevin Nash: It’s about — so we have a couple — we have probably about $50 million of equity method investments, a couple of specific investments.
Charles Sloan: That’s fine. So of the $400 million I’m using numbers, $425 million, $440 million. How much of that is stocks versus bonds?
Kevin Nash: Very small. We have less than around $1 million in stock. That’s about it. The rest of it’s fixed income — well out of that $250 million or $240 million is just cash.
Charles Sloan: And what is the yield on that cash?
Kevin Nash: The cash yield is about 450 basis points currently. And actually, we’ve got some — that continues to move north. And then on the fixed income side, we have a bunch of floaters that are actually moving with the market as well. some of the stuff that we have from — that have longer maturities, have lower yields because we were invested in 3- to 5-year securities with longer — with lower rates. So we’re just working our way through those and strategically trying to move out of them if we find other opportunities. But the fixed income market went upside down when the rates moved up so quickly.
Charles Sloan: Right. And so when you look at your core operations, and you think about your ROEs there and you think about the cash and the nonequity investments. This — the cash is adding, say, I don’t even know, probably $0.03, $0.04 a share?
Kevin Nash: Yes, probably.
Charles Sloan: Okay. And so that is obviously hurting your ROEs, right, and has for a long time. And so what investments can we make — and I’m not saying buy back shares, but what investments can we make to actually improve the ROEs overall, even more?
Kevin Nash: Well, I mean, that — again that’s strategic…
Charles Sloan: Because we’re shareholders.
Kevin Nash: Yes, absolutely. No, I think that’s a combination really of our overall capital allocation strategy of funding the R&D sufficiently as far as new product development. I mean, that’s our preference, and we’ve always talked about that as our preference. But as a Midwestern company, we are — we like to remain nimble as it relates to future acquisitions that do increase our ROE and ROIC because we realize the ongoing cash flow is our preference versus just buying back shares or holding cash. But part of how we’ve been successful in the past is having cash powder dry, if you will, for an acquisition and being able to move quickly without the help of banks or financing. So that’s really been our strategy, and we continue to have a balanced approach as it relates to liquidity and availability.
Charles Sloan: And so are there any acquisitions on the horizon that you could see that would use some of that cash that would help?
