Brian Butler: Okay. Great. Can you give a little color just kind of on what drove that? And then, maybe kind of what’s the right way to think about CapEx on a longer-term basis?
Rick Galloway: Yes. So we look at 2% of revenue, 2% to 2.25% of revenue is usually the kind of guide that we’ve given. We have 1.75%, I think it was 1.77%, something like that in 2022 as things pushed out, primarily trucks, equipment pushed out with the supply chain issues. And then when you think year-over-year, we’re right in that 2% range that we’ve been kind of guiding to. So, there may be ebbs and flows back and forth between different years, but that 2% to 2.25% is the right way to look at it.
Brian Butler: Okay. Perfect. And then, just last one. Is there any risk on the inventory build at Specialty, if cars kind of that market, that demand remains soft, is that something we should be watching?
Rick Galloway: No, I don’t think so. So, we have a traditional build throughout the year, and we ended up decreasing that a little bit and then driving that down toward the end of the year to end up virtually flat year-over-year on overall inventories, and it’s something that we’re watching very closely with the demand. And so, nothing to be concerned about in that area.
Brian Butler: Okay. Great. Thank you for taking my questions.
Operator: Your next question comes from the line of Daniel Imbro from Stephens. Your line is open.
Daniel Imbro: Hey, good morning, everybody. Thanks for taking our questions.
Nick Zarcone: Good morning, Daniel.
Daniel Imbro: Nick, I want to start on the European side. I think at the end of your prepared remarks, you talked about Europe having some specific projects they’re working on. Can you provide some more color just around what those are? Is that just the growth in the collision parts? Are there other costs projects that Varun and the team are working on? Any kind of quantification as we think about potential margin impacts from those initiatives?
Nick Zarcone: The answer, Daniel, not to be snide, but the answer is yes, right? We’ve got a number of different projects over in Europe. Rick mentioned restructuring, the 2022 restructuring plan, that hits all of these segments, including the European segment. It’s part — folks should think about restructuring at LKQ as part of our continuous improvement plan that every year, we’re looking to find ways to optimize our business and to get excess cost or better throughput and efficiency from each of our operations. And so, yes, there are some restructuring plans over in Europe, just like North America and Specialty. We’re looking at programs to continue to drive organic revenue growth, particularly volume growth. And Varun and the team are focused on some key programs there.
They pulled in headcount a little bit, particularly at the kind of at the head office level, not just in Zug, but across the operating platforms as well, just to make sure that our administrative costs are aligned with the realities of 2023 and the economic climate. So, it’s a number of different initiatives, Daniel, none of which we’re going to put a pinpoint as to what it means from a euro or dollar perspective, but it’s all with the goal of continuing to drive organic revenue growth and better margins. And as I think Rick indicated in his prepared comments, we’re anticipating that the margins in Europe will…
Rick Galloway: 20 basis points to 30 basis points.
Nick Zarcone: Will go up by 20 basis points to 30 basis points in 2023. And that’s been included in the guidance that Rick set out.
