Chris Kastner: Hi, Noah. Thanks for joining.
Noah Poponak: Yeah. Sure. Tom, so just back to the cash flow breakdown and appreciate all the detail you gave there and I appreciate that there are a lot of moving pieces. But if I just kind of zoom out on the cash flow statement and look at a long history, it sort of ranged $400 million to $600 million for a while and the business is pretty stable topline and margin. I recognize you have some opportunity to grow the business and expand margins going forward. I think the pension looks pretty net neutral. The CapEx looks pretty stable. It sounded like you said earlier that you expect in that 2024 $780 million midpoint about $200 million of working capital. And I guess, should I think of working — change in working capital is not a sustainable recurring part of the free cash flow, and therefore, that kind of $580 million, $600 million as sort of a predictable, sustainable engine of the cash flow statement going forward or is there some other reason to think of the base business is eventually making up that $200 million?
Tom Stiehle: Yeah. So that’s a great question and we study that all the time and it’s the former — it’s former with a caveat, right? So we are hitting the point right now. We have been impacted. If you look at the cash flow statement, we were in the $400 million to $600 million. I’d tell you from 2020, 2021 and 2022, those COVID, FICA repays and the COVID payments have tripped up and you have to normalize after that. A couple of things are happening. Obviously
Noah Poponak: Okay.
Tom Stiehle: prior to this window, the margin has dropped in Shipbuilding as we have kind of run through COVID. So we are fighting and working ourselves back with incremental improvement. The revenue growth with the backlog that we have shown you there and we expect at least have 3% here kind of going forward when we get through this labor crunch, that’s in place. So I think you can model that out. The — as we go forward, the working capital I believe we will be in that 5% to 6% range and both yards are in a good rhythm right now, the DDG program annually, what we are doing with launch and sell off boat on VCS, the rhythm of Block V is behind that, the two carry by following 79, the Columbia Build 1, Build 2. So I think we are settling down on the mix of the portfolios in each yard and the timing on when they are going to pop out so.
We have told you in the past, traditionally a Shipbuilding is like 6% to 8% of what we would expect. That gets water down a little bit, because now with Mission Technology and Alion with more sales in the base the numbers kind of pop down. If you normalize in just to the traditional Shipbuilding what we have talked about, right, we were at 12%, I think, in Q1 of 2022, Q3 of 2023, we are at 14%. We finished the year at 7.8% just for Shipbuilding and now as we go from 7.8% to 8.3% for Shipbuilding sales, we will see ourselves go down to 6% in 2024. That’s in the range that we were highlighting, say, for the first 10 years of the corporation of 6% to 8% in working capital. We were at that range in 2018. We were in the 6% or so. I think that’s sustainable as long as we are in a normal rhythm of adding work, which we have the backlog, we are performing to schedule, so we are selling ships off timely.
