And the product that we have going forward accomplishes all that. We’ve instituted a more global approach to how we go to market. And that’s really what’s going to make a difference for us in terms of global platforms on product, on fit, on color. All those different things are going to help us win across channels. And it’s something that we haven’t done very well in the past.
William Reuter: I guess just one a little more specifically on that. Were there intentional reductions to off price that impacted the sales of Champion?
Stephen Bratspies: No, nothing intentional. We’re managing through or have been managing through high inventory positions in the channels and consistently looking for opportunities as we go there. We think the brand can play very effectively across a lot of different channels and will continue to activate that way.
William Reuter: Great. That’s all for me. Thank you.
Operator: Our last question today will come from Michael Coppola with JPMorgan.
Michael Coppola: Good morning and thanks for taking our question. The first one we had was on the Champion Kids licensing deal. Did you guys receive any cash payment for that? And I know you kind of called out there is a 500 basis point impact to revenue. Just how we think about revenue and margins pro forma for that going forward?
Stephen Bratspies: Yes, that wasn’t a transaction where we sold something. We actually converted it to more of a top line wholesale model to a to a license model. So we get a real income stream going forward.
Michael Coppola: Got you. Thank you.
Scott Lewis: Yes. And you’ll see that was the biggest headwind from that will be in Q1 and it’ll moderate as we go forward.
Michael Coppola: Okay, great. Thank you. And the second one, I’m going to get going to reaffirm that you plan on paying down about $300 million in debt this year. If you’re any comment of where you prefer to go after term loan or bonds for that as well. Or if there’s any way you’re thinking about that.
Scott Lewis: Yes. Great. Thanks for your question again. We paid down $500 million last year of debt. We got another 300 plus. But really good about the cash flow generation. We talked about the profit driving that working capital is coming through. As you think about how to apply that 300 million plus of debt pay down. We have a lot of flexibility with our debt structure. When our senior secured credit facility, we have the term A and term B loans that are prepayable without any penalty. And so that’s higher rate debt is prepayable and that’s what we’ll focus on. The debt paydown.
Michael Coppola: Great. Thank you very much. And I’ll pass it off.
Operator: That concludes today’s question-and-answer session. I’d like to turn the call back to T.C. Robillard for closing remarks.
T.C. Robillard: We’d like to thank everyone for attending our call today. We look forward to speaking with you soon. Have a great day.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
