Joan Hooper: Yes. So the cash flow was a positive $5 million for all ’22. It was actually negative in the fourth quarter to the tune of around $18 million and a lot of that was continuing to invest in inventory. So we’ll continue to as components become available and test to make sure we’ve got all the components necessary. My expectation for free cash flow for 2023 is negative for the full year really for a couple of reasons. One is we have some large cash tax payments due in the second quarter. Those relate to 2 things. One is settling from international tough tax audits that we have crude but haven’t paid. But the bigger issue is the legislative change that happened with the 2017 tax reform which essentially forced you to capitalizing R&D.
We were expecting those laws to get overturned as well as everybody else and they haven’t yet. So the current tax law relative to the capitalization of R&D creates quite a bit larger cash tax payments. So as an example, just cash tax alone is going to be up something like $25 million year-over-year. In addition, we will continue to invest in working capital as we grow the business. So our guidance is to grow the business. And typically when that happens, you’ve kind of growth in receivables and as I mentioned, we’ll continue to make sure we grow. So while it’s negative for the full year, I expect it to turn in the second half, so expect and 2 to be negative. Q1 also is the quarter where we will pay a discretionary bonus to the nonexecutive team.
And Q2 is the large cash payments by the time we get to keep the rating for more earnings are starting to improve versus the first half. I expect cash flow to be positive. But again, for the full year, something in the range of like minus $25 million to minus $35 million.
Operator: And our next question coming from the line of Ben Kallo with Baird.
Ben Kallo: Congrats on the bookings. Just quickly, maybe, Tom, just the environment for new projects than maybe bookings this quarter explains it all but there’s been some reports of smaller utilities, they more beauty and co-op of not being able to implement plans because of variety of electricity prices and that effect at all. And then I’ll have a couple of follow-ups.
Tom Deitrich: Very good. So the bookings environment or the pipeline of opportunities, maybe correctly stated, it continues to be very robust. The need for investment in resiliency and reliability, whether you are large or small utility are there. The need to prepare your environment for growth NAVs and continued growth in things like rooftop solar means an awful lot of investment in the distribution grid. So we feel very bullish about what the future will bring for us in terms of demand from customers. And that is something we hear directly from customers. The range of opportunities continues to expand. We launched a product called the distributed intelligence network interface card, really that allows us to put DI into third-party types of devices like smart panels and others to, again, continue to broaden out the range of applications.
On your point about smaller utilities delaying investments based on affordability and energy prices. I would say I’ve seen that on aging but it certainly hasn’t been widespread. There are a broad range of municipalities and cities that are investing and investor IOUs have been investing very aggressively and driving up big bookings projects that you see in our backlog today. The work that’s going on certainly is multiyear and probably will be decade growth in terms of needs of the electricity grid and water systems and that is good future growth for the company.
Ben Kallo: And a portion of the backlog was signed before we got to inflationary environment. And just how do we think about that backlog and pricing? And how that impacts margins or if you’re able to reprice with customers going forward?
