Adam Baumgarten: Got it. Thanks. And then just on the LVT piece, shutting down or exiting the business out of Europe, do you see — do you foresee a similar move in North America at some point? And also just on the European exit in flexible, are you able to repurpose that capacity for the rigid manufacturing?
Chris Wellborn: Yes. Let’s — just to isolate that one question, so in Europe, we’re replacing our residential flexible with rigid. We’ll continue to produce flexible for the commercial market, and then in the U.S., you won’t have that because we have a much larger commercial presence where we use our flexible LVT.
Adam Baumgarten: Okay. Got it. That’s helpful. Thanks.
Operator: Our next question comes from Laura Champine from Loop Capital. Please go ahead.
Laura Champine: Good morning. Thanks for taking my question. In Flooring North America, are you holding share versus your competition?
Jeff Lorberbaum: We think that the carpet industry, we are in line with the industry.
Laura Champine: Got it. And is the issue there more that carpet is losing share versus other Flooring categories? And do you think that — if so, is that just a function of the mix shift towards Commercial? Or are there other factors still at play there?
Jeff Lorberbaum: I think it’s a few different pieces. One is you’re comparing to the fourth quarter, the prior year where we had really significant pent -up demand that the inventories were low, all the plants were running as much as we could get labor and material to run and you’re comparing that now to an environment and our customers’ inventories were low, and they were actually trying to build their inventories, which continued into the first half of the year. So you’re comparing that to an environment where the opposite is occurring. Our customers are lowering inventories, the environment is slower. And so that’s exacerbating the decrease, but it is still losing share to hard surface as it has been.
Laura Champine: Understood. Thank you.
Operator: Our next question comes from Kathryn Thompson from Thompson Research Group. Please go ahead.
Brian Biros: Hey. Good afternoon. It’s actually Brian Biros on for Kathryn. Thank you for taking my questions. It seems like after Q1, maybe starting in Q2 or even midyear, things are expected to ramp up from the current low levels going on now. What indicators do you guys look at to understand when and how much to ramp up production? There’s obviously just seasonality lift. But beyond that, is it strictly just orders coming in? Or are there other metrics you look at to kind of get a sense of how do we get ahead of this retail customer, the new resi activity that picks up to be ready for the ramp -up and not just reacting to it?
Jeff Lorberbaum: We act differently based on the capacity utilization. So in a slow marketplace, you have excess capacity and you can react to it so you don’t have to anticipate it more. Earlier in the call, we talked about in some period — we usually build inventory in the first quarter to cover the peaks in the rest of the year, which would be a typical year. So this year, we’re not acting the same way because of the capacity availability that we have.
