Marshall Bridges: But there is a bit of Lamex in the GAAP numbers in the prior year, both sales and profit as well as the gain. If you look at the non-GAAP, it’s probably a little cleaner the segment, excluding KII and Poppins, up $31 million in operating profit year-over-year. And there’s really two big items there. You got price-cost favorable about $21 million and net productivity was up about $11 million. And so there’s some rounding there. But that — those two things really drove that $31 million profit improvement in the segment.
Budd Bugatch: So the 11 continues? Or is that continues and then anniversaries and the 21? How do we think about that going forward? How do we think about that kind of 2:1, kind of, ratio?
Marshall Bridges: Well, the productivity is going to continue. We certainly see benefits from our ongoing lean initiatives, as well as the Mexico investment as we look out. Price-cost, this is — we’re anniversarying some lower price periods and we got pretty stable commodities. So I don’t think that’s going to continue at the same rate. But it’s not going away immediately.
Budd Bugatch: And commodities are they stable? Or are they starting to — or have they fallen — and are we having to do any — are we worrying anything about pricing having to be retraced?
Marshall Bridges: For the year, commodities are pretty stable. We had some inflation when you include everything early in the year, and we had a little bit of deflation here recently. As we look to the fourth quarter, we’re starting to see a little bit of pressure from diesel and some other commodities. But in general, input costs are pretty stable.
Jeff Lorenger: And we think pricing, but we’ll kind of hold in there where it’s at today, where that’s kind of what we’re seeing in the marketplace.
Budd Bugatch: And we typically do a once-a-year price increase. Do we not usually have that adjustment? Is that usually a beginning of the year kind of thing? And I know in this environment, nothing is usual, but trying to — I’m showing the — I’m showing my age.
Jeff Lorenger: But yes, Budd, it’s typically kind of in the first quarter. It moves around a bit depending on the cycle, but it’s typically in the first quarter.
Budd Bugatch: Okay. And this has been part of your strategy, Jeff, of getting the Workplace Furnishings margins back to this kind of level. So the other side is RBP and having that grow, keeping the kind of great profitability you have there, are there any new programs that you are anticipating to try to maybe sparked a little bit more of the RBP stuff? Or is it the environment just too tough.
Jeff Lorenger: No, look, we’re continuing to invest in that. You hit it right on the head, Budd. We’re — this has been our goal is to reset margins and have a line of sight for more, and that’s what we start — we’ve been talking about that for a couple of years, and that will continue. RBP — look, we like our operating model. We’re going to continue to invest in that business because it’s only a matter of time. And the fact that we’ve been able to kind of hold our margin profile in that business, notwithstanding the volume decline, we like where that can go. I’d say, right, the third piece of this, though, is the integration of KII. That’s where we’re working hard there. I commented on their business in healthcare and hospitality and also integration in synergies.
So that’s — that would — I would say the two items we’ve been talking about continue. We’re continuing to lean in the workplace margins and RBP growth investments and then bring KII on and kind of mine that those — that profit and that model, it’s got strength, but there’s more to do.
Budd Bugatch: That’s — you got right to my third area of questioning, was on Kimball. What kind of RCII or RCI programs do you see going for that. They have a number of — had a number of divisions that might not have been performing up to snuff. Anything that you feel comfortable talking about at this point in time?
