Eric Mendelson: Yes. It is a huge opportunity, and we have a big focus in that area.
Louis Raffetto: Great. Carlos, just back to the backlog in ETG. I think you said $856 million, so that’s up $150 million or so from last quarter. Is that the bulk of that from Exxelia or just trying to gauge the $856 million from the $660 million and again, a little over $700 million through the year.
Carlos Macau: Yes. So if you’re looking at Q4 backlog, yes, a lot of €“ the majority of €“ not all of it, but the majority of it is Exxelia adding on that we picked up in January.
Louis Raffetto: And then just one more on the, there was a small change in the accrued contingency in the quarter. Just which segment that impacted? Was that sort of another headwind within ETG? Or was that an FSG?
Carlos Macau: That was a combination of discount rates and FX, which broadly affected both segments.
Louis Raffetto: All right. That’s perfect. Thank you very much.
Laurans Mendelson: Thanks Buddy.
Operator: And our next question comes from Ron Epstein with Bank of America. Please go ahead.
Ron Epstein: Hey, good morning guys. Just a couple of questions for you. One thing we’ve been hearing is that some of the suppliers when you go down into the lower tiers of the supply chain or suffering from working capital needs and other balance sheets are kind of maybe upside down because of making investments before the pandemic and then things are not playing out that aggravated by the 737 situation. Has that created any opportunities for you all from an M&A perspective to maybe pick up some interesting, albeit smaller companies that would be available today that might not have been before?
Eric Mendelson: Yes. Ron, this is Eric. Yes, I would say that there has been some opportunity in that area. But normally that’s sort of not the area, the folks who are having those issues, in general, are not the companies that we’re working with. So I don’t anticipate it at this point, being a huge opportunity for us. I mean, frankly, the large companies have to make sure paid as they have been getting paid earlier from the government that they take care of their supply base. And I think those companies are more in that general realm. So it’s not as applicable to us to the kind of revenues.
Ron Epstein: Got it. And then if we think about the PMA €“ maybe just following up on question said earlier, the global fleet kind of debt went two years older when sort of everything was in a coma because of the pandemic. So you’ve got a fleet that’s two years older. You’ve got aircraft that are that much closer to a de-check. They might not be on long-term maintenance contracts anymore. They might be out of warranty. Are you seeing a pickup in demand for your products for like a third de-check on some of these aircraft?
Eric Mendelson: Yes. I think I don’t have specific information on that. But yes, I do believe that we are selling parts for checks that had not been anticipated. I don’t think it’s a large part of our sales. But yes, I am aware that we are benefiting from that.
Ron Epstein: Got it. Okay, thank you very much.
Laurans Mendelson: Thanks, Ron.
Operator: And it appears there are no additional questions at this time. I’ll turn the call back to the speakers for any additional or closing remarks.
Laurans Mendelson: Thank you. Again, this is Larry Mendelson, and I want to thank everybody on this call for your interest in HEICO. If you do have questions, we are available, Eric, Victor, myself, Carlos, so you can give us a call or e-mail. And we look forward to speaking to you at the Q2 earnings call, which will be in about three months from now. So have a good day, you all, and we’ll speak to you soon.
Operator: And this concludes today’s call. Thank you for your participation. You may now disconnect.
