What I could say is that while some of at least the reports I was reading, we’re talking about valuations perhaps coming down in multiples over this year. It doesn’t seem that that’s the case. They’ve not gone up in any, kind of, tremendous way, but they have not come down. But the market is what the market is. So if we find properties that meet our criteria, and my criteria are pretty straightforward. Doesn’t align with our strategy, and I’ll call those areas out in a moment. Doesn’t actually give us synergy, meaning can we the combined entity grow faster than the individuals could before, right, just about it in very financial terms. And if it is larger, it has to be accretive. And by larger, I mean it’s not a tuck-in, meaning it’s not a few hundred million.
It’s larger than that, then it’s got to get accretive, let’s say, within two years at the latest. So if it meets those criteria, it’s certainly an attractive proposition. The areas we are in, we don’t want to open up more strategic lane, so to speak. Our areas are hybrid cloud, data and AI, automation, cyber and those consulting properties, which in turn help these. So that’s kind of the lanes we’re in. And if I look at the latest one, Apptio, I’d say it kind of hits three out of my four. It hits hybrid cloud because it helps you deploy those. It is a big data and AI property because that’s what they use. And it is automation because it takes out human labor cost from many of those processes. So it was actually a very, very good fit. And if any of you have suggestions for similar things, we are all ears, and you can certainly write to me.
Patricia Murphy: Hey, thank, Eric. Let’s go to the next question, please.
Operator: Thank you. Next is David Grossman with Stifel. You may go ahead.
David Grossman: Thank you. Arvind, you spoke extensively about the favorable impact of pricing on the transaction processing portfolio. What have you learned from repricing that portfolio? And what other segments of your business could potentially benefit from similar actions? And sorry to violate the one-question rule. But Jim, I just want a clarification. My recollection is that you had about $500 million of working capital tailwind factored into the free cash flow guide. I just want to make sure I got that right and that’s the same. Thanks.
Arvind Krishna: So David, let me address the first part of your question on pricing. Look, I’d like to be careful. TP certainly benefited this year, but the biggest part of the benefit has been the mainframe cycle and the capacity and value that our clients see. Yes. Was there a price increase? Given the labor inflation of 2022 and some ongoing in ’23, given the strong dollar, effectively, there was pricing increase, because of those factors, and that got taken well by the market, because of the value they see on that. Would I expect to see similar pricing on TP and then I’ll come to other parts of both consulting and software? I doubt, David, that it will be on the same range because, definitely, I think we would all agree, ‘22 had a high inflation.
