Jason Winkler : Keith, thanks for the question. The supply chain environment for our needs for chips, which I’ll remind everyone is for generally 40 nanometers and above is improving, although it’s not to levels of normality. For example, lead times for certain chips are now approaching 25-26 weeks where they had been double that, but in a normal environment, they should be 15 or 16. So improvements, yes, and that’s what’s helping us drive the favorability of now $70 million in the P&L, but still some opportunity to improve further, and that’s what’s incorporated into our expectations for Q4 that we’ll continue to use the tools that we’ve been using for a number of quarters now, looking for substitutes, working with our supplier partners and using the available supply that we can find at lower prices.
Greg Brown : And we would, Jason, continued to see PPV benefit in ’24 as well.
Jason Winkler : Yeah. Next year, as we told you on the last call, we’re planning for about $60 million of ’24 incremental PPP relief over ’23. So we still have opportunity to capture there and expect that in the P&L. And again, that aligns to our expectations that things will continue to improve into ’24.
Keith Housum : Great. Thanks. Appreciate it. If I can just follow up, M&A has been a key part of motor-oil strategy over the years. As you’re looking forward, I mean, is there anticipation that you’re going to keep with some of these small tuck-in acquisitions? Or is there an appetite for perhaps a larger more transformational acquisition as well?
Greg Brown : Yeah. Well, we certainly are in great shape from a balance sheet standpoint and the firepower to do some things inorganically. It’s ironic, Keith, because here was sitting in November, and we have not done an acquisition yet to date. That is certainly not for a lack of an active and a fulsome funnel, but we’ve been pretty diligent and quite frankly, some sellers have been reluctant at prices that we thought would be more reasonably valued. That’s okay. Having said that, do I anticipate some continued M&A tuck-in activity, I do and the team, Raj, Mahesh, Jack, Jason, Michael, Anas [ph] are actively working that funnel. I think we still probably emphasize in general, services and video security and access control as areas of probably higher priority than others that we would look to do inorganically.
And if there’s something larger for us to consider, we would evaluate that as well clear eyed, but balance both financially and strategically, and we’ll see what comes.
Keith Housum : Great. Thank you.
Greg Brown : Thanks, Keith.
Operator: The next question is from the line of Adam Tindle with Raymond James. Your line is now open.
Adam Tindle : Okay, thanks. Good afternoon. Congrats on the results. Greg, I wanted to start with backlog, again, record levels. Just I guess the heart of the question would be how long do you think this can continue? Do you think we’re going to exit this year with record backlog again? Or when do you expect to see maybe some level of attenuation or normalization slowing in backlog based on what your business looks like right now?
Greg Brown : Yeah, I certainly wouldn’t speculate on backlog because I don’t have a crystal ball. Having said that. Q3, we ended record backlog. Q3 was also a record quarter’s quarter. So I love the funnel. I love our conversion. I love the record orders, and I think we’re well positioned. By the way, when I look at the quality of the backlog in terms of aged or duration that remains strong as well. As Jason said, we still have to navigate supply chain on the semiconductor front. It’s not normalized. Lead times remain elevated. But at the end of the day, I like our end markets. I think they’re pretty resilient. I like the demand and criticality for what we do, i.e., public safety and enterprise security informed by video security and access control as well as all the great work Mahesh is doing on the product side, in Command Center.
