Keith Allman: Thanks, Mike. I’ll — this is Keith. I’ll start off on the paint raw basket to give you a perspective on what we’re seeing in terms of inflation and how we’re thinking about that. If you look at our overall paint raw material baskets, while we have seen some relief in feedstocks for resin, but TiO2, for example, and other specialty chemicals are very sticky and remain elevated. So, we are continuing to see overall in the basket an elevation. On the indirect costs, which is a big portion of our raw materials and our manufacturing process, we are seeing continued inflation, so it remains a challenge. And I’m talking about things like pallets, transportation, labor absolutely is still elevated. So, we’ve seen some sequential moderation, but the raws continue to remain relatively elevated.
We are still recovering from significant cost increase that we’ve incurred over the past couple of years. So, at this point, we really have minimal raw material deflation built into our plans for 2023, and don’t expect to see it. And that’s based on what we’re currently seeing from our supply base and from the market.
John Sznewajs: And Mike, maybe I’ll take the Plumbing side of the equation. So, as you know, as you look at some of the base metals, copper, zinc that go into our Plumbing products, obviously, the inflation there was pretty significant in the year, (ph) double digits. If you look at the prices through the course of ’22, they probably peaked in the second quarter. We saw some moderation in Q3 and Q4 of last year in those commodities. That said, since the year has begun, we’ve seen a little bit of an uptick in both of those copper and zinc. And so, they’re still elevated, but off their highs, obviously. In ocean freight, which is another good significant input for us on that side, has moderated as well. But it’s still, compared to historical, it’s above normal levels.
And then, obviously, wage inflation is still something that we’re dealing with. Some of the things that are also impacting us in the Plumbing segment, like, are energy cost in Europe, as you might expect, given what’s going on over there, that’s offset. So, any of the benefit from moderating demand — or moderating inflation in the raw materials have been partially offset by some of these things. So, net-net, where do we land on this in 2023, we think we’ll expect — we’re expecting low single-digit deflation in our Plumbing input basket as we continue to recoup some of the cost increases that we’ve incurred over the course of the last couple of years.
Michael Dahl: Okay. That’s great. Thank you, both. That’s very helpful. And then, on my follow-up question, I wanted to ask about the SG&A. So, the comment that it’s going back to 17.5%, certainly, conceptually understand the idea of needing to invest in the business and some of the baskets qualitatively that you’ve talked about. But when I look at the numbers, I mean, what that really implies is you’re guiding sales to be down, give or take, $900 million year-on-year with SG&A dollars down immaterial now maybe $20 million, $25 million. So that seems like an awful lot of reinvestment. Maybe you can help us understand a little bit more bucket out quantitatively some of the things that you’ve discussed in terms of what’s sticky outlook on SG&A dollars.
