Michael Ciarmoli : Bill, maybe just on supply chain. It sounds like some things getting better, but you clearly flagged, I think, specialty alloys, raw materials. I mean, how are you looking at that, I guess, access to material availability as you think about moving into ’24, I mean just trying to get a frame of reference as to how concerning this is?
William Lynn : Yes. I mean I think the overall theme here, Michael, is stability. We are seeing more stability in the supply chain. But that said, we’re seeing kind of the — it’s a little bit of a whack a mole where the microelectronics have stabilized and now the specialty metals have popped up. We have learned to be very proactive. And so we are buying well ahead of need and stockpiling to anticipate any disruptions. And we think those steps are enabling us to meet our revenue commitments, meet our customer commitments, and we will be able to do that not just through ’23, but through ’24 as well.
Michael Ciarmoli : Okay. I guess back to kind of Rob’s question, does that maybe keep some upward pressure on working capital, just if you’re carrying more inventory than normal? Or do you kind of have that contemplated into the plan?
William Lynn : It absolutely does increase the working capital. We’ve built that into the plan. But these kinds of steps, there is a cost to them, and that cost is really reflected in the elevated working capital. As Mike said, it will wind down some in the fourth quarter, but we’d be above where we would otherwise be, but for those steps, I guess, is the way to look at it.
Michael Ciarmoli : Got it. And then just on the Columbia booking, and I think even that the cadence of Columbia work as we move into ’24 and into the out years, I think there was an expectation of better pricing there, growth on sort of the annual run rate. Any surprises with the booking that you got or negotiations with the Navy? Or should we continue to expect that program to kind of grow in terms of annual revenues and be additive to margins?
William Lynn : It will do both. That is — it will grow and be additive to margins that’s built into the contracts that we’ve negotiated. And the thrust of this is the Navy and the shipyard gets stability in terms of delivery and pricing. And we get the assurance of those bookings going on for a decade. That lets us work through the supply chain, work with our suppliers to get better pricing, to get them to absorb some of the risk because they’re getting more of the benefit. So it’s a win-win for everybody. And what it really does is reflect the stability of the Columbia program in the defense budget. Everybody is completely convinced this program is going to go forward as planned. And so what we’re trying to do is do it in the most efficient way possible.
Michael Ciarmoli : Got it. Last one for me, just labor. You’ve obviously got RADA, you’ve got facilities in Israel. Any potential risk there of labor disruption, the potential employees called into reserves duty or just in terms of how are you kind of framing as you look at your operations there given the current environment?
William Lynn : Yes, thanks for the question. We’re obviously very attentive to the Israeli operations. They are operating fully right now. There have been some reserve call-ups as you would expect, but it’s — we’re managing that and working with the Ministry of Defense. There are obviously — the products that we produce are very important in terms of the conflict that Israel faces at this point. So everybody is interested in keeping this — our facility going at maximum capacity. We also have a backstop in that we have a basically a largely duplicative U.S. facility that can do a lot of the same things. So we can adapt if there’s disruption, but there hasn’t been any disruption to this point.
Operator: Next question comes from Andre Madrid with Bank of America.
