Sara Zawoyski: Yes. So within that 3% to 5% organic growth, infrastructure by far will lead, we continue to see that growing strong double digits. Industrial, we also expect to see growth in the industrial really fueled by reshoring and some of these stronger secular trends. And commercial, we expect to see more modest growth in commercial resi being soft, you can kind of look at that as roughly flat. And then energy growing importantly with the energy transition, and we see some strong backlog, and we see that in a strong backlog of thermal management.
Scott Graham: Thank you.
Operator: The next question will come from David Silver with CL King. Please go ahead.
David Silver: Yes. Hi. Good morning. Thank you.
Beth Wozniak: Good morning.
Sara Zawoyski: Good morning.
David Silver: Good morning. A couple of questions, and I hope I didn’t miss this earlier, but I was hoping you did make several comments about the ECM acquisition. I’m not really sure I may have missed this, but did you provide kind of an accretion total for the time that it was part of your portfolio in 2023 or maybe for the fourth quarter? I recall you talked about the sales, the revenue growth impact, but wondering about that. And then maybe in terms of synergy capture, I mean, would it be reasonable to expect the first half of 2024 to have incremental accretion above and beyond what we saw in 2023? Thank you.
Sara Zawoyski: Yes. So David, we completed ECM acquisition mid-May, and that contributed $0.16 to EPS in 2023, so well above our initial estimations of that being $0.08 to $0.10. So strong contribution there. And obviously, we expect some carryover benefit in 2024. And think about that in that kind of $0.07 to $0.08 range here, benefiting mostly Q1, but some into Q2 as well.
David Silver: Okay. Great. I have a question about your CapEx budget. So your company had a trend line CapEx of, I don’t know, $40 million to $45 million for several years before 2023. And you’re guiding to a number basically double that next year. And I’m mostly interested in the discretionary portion of that budget. But beyond, I guess, some liquid cooling, although I think a lot of the spend has been done already. But where should we think that the highest priorities for your – the discretionary portion of your 2024 CapEx spend is going to be directed. Thank you.
Sara Zawoyski: Well, maybe I would start by saying that higher CapEx really started in the context of 2023. So that CapEx grew over 40% – over 50% year-on-year really reflecting some folding of ECM, but really mostly investments in our capacity and capacity ahead of the great demand and visibility that we see in Data Solutions, but also new products as well as just underlying growth and productivity. So we go through a rigorous kind of capital prioritization process and look at prioritizing growth, and ensuring that we’ve got the right productivity. And more so if you look at kind of allocation of that capital this year versus where it’s been in the past, more and more of that capital is being allocated towards growth. And we have strict returns, very focused on that return on invested capital in order to help us prioritize that overall.
So you can think about elevated CapEx really in the context of first, capacity and second being new products, really third probably being new digital platforms really helping to enable that growth in productivity. And then from there, we rack and stack based on returns.
David Silver: Okay. Very helpful. I’m going to sneak in one more, and I will stipulate that this question is probably impossible to answer precisely. But it’s been mentioned, it has to do with tax policies and what we should think about when we’re modeling maybe the out years for your company. So you are kind of indicating there is going to be a step up in kind of your permanent tax rate going forward. And again, I’m fudging the cash tax versus nominal rate. But the tax regime is getting a little tighter here. As you look out on the various issues, some of which you touched on here, would you think that there’s going to be further incremental taxation issues to deal with, let’s say, beyond 2024. In other words, should we pencil in a somewhat higher tax rate for 2025 and beyond? Thank you.
Sara Zawoyski: Yes. So I wouldn’t begin to speculate on what future tax regulations may or may not come to fruition. I would just come back to kind of our tax planning. That change in global tax standards was one of the bigger tax changes that we’ve seen in quite some time. We did a lot of rigorous tax planning there, really prioritizing that cash flow aspect of things. And we’re going to continue to work with evolving regulations and a work that affected tax planning accordingly.
David Silver: Okay. Very good. I appreciate the help. Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ms. Beth Wozniak for any closing remarks. Please go ahead.
Beth Wozniak: Thank you for joining us this morning. We are proud of our strong 2023 and believe the electrification of everything, sustainability and digitalization are driving demand for our products and solutions. We are excited for 2024. I am grateful for the outstanding work of our team to support our customers and execute on our growth strategy. Thanks again for joining us. This concludes the call.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
