Vincent Morales: Duffy, this is Vince. You stated it properly. We obviously purchased $150 million in the first quarter. That will obviously be impactful to the financials. We have nothing further assumed in our full year guide for the balance of the year.
Timothy Knavish: The way that I’m thinking about the additional authorization that we got from our Board yesterday is really consistent with what we’ve done and said over the last number of years and quarters. We said that, obviously, we’re going to pay our dividend. Obviously, we’re going to do what we need to do with the CapEx to grow our businesses organically. We paid down all of our high-cost debt last year. And we’ve consistently said that in the absence of shareholder value-creating acquisitions, we’re not going to let the cash sit on our balance sheet. And we did that in Q4. We did it in Q1. So we’re really sticking with that mantra. The way to think about magnitude going forward will depend on all of those factors, what’s our actual leverage sitting at versus what we see in our acquisition pipeline after we’ve done those kind of organic things of dividend and CapEx.
Operator: Thank you. The next question comes from the line of David Begleiter from Deutsche Bank. Your line is open.
David Begleiter: Hi, good morning. Tim and Vince, in U.S. architectural, have you seen any disruption since your announcement in late February? What’s the level of interest in these assets? And what’s I think the most likely outcome of this review and process. Thank you.
Timothy Knavish: Good morning, David, it’s Tim. We had a very, very detailed and thoughtful communications plan ahead of making the announcement on February 26 that we executed very shortly after that press release went out and have continued to execute. And we’ve seen very minimal, if any, disruption. There’s chatter, but we’ve got really good talk plans out there. We’re engaging our key customers, we’re engaging our key — obviously, our employees, we’re engaging our owners, as you know. So a very minimal disruption to the business. The second question, we expected strong interest because of the strength of the brands and the strength of the assets in our architectural U.S. Canada business, I’m pleased to say the interest is even higher than what we expected.
So that’s — we feel good right now about where we are. As far as the — which likely outcome, David, until numbers start coming across the desk and we can start looking at what’s best for long-term shareholder value creation, it’s a bit early. But we want to be definitive on our path forward in Q3. So we’ll have a much better view of what this structure might look like in another quarter or so, David.
Operator: Thank you. The next question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Christopher Parkinson: Great. Thank you so much. Tim, you’ve obviously been at the company a long time, and you’re making some pretty dramatic moves in the first six quarters. When you take a step back away from the North American architecture and the specialty reviews and you look at your remaining businesses across performance and Industrial. Just how confident are you versus even. Let’s say, a couple of quarters ago, last year, however you want to characterize it, how confident are you that those remaining businesses are the best-in-class R&D innovators and will ultimately render above-market growth in the respective end markets over the next year or two? I mean — or perhaps even a little longer, just has your confidence changed in the portfolio positively or negatively?
Timothy Knavish: Hi, Chris. Thanks for your very polite way of saying that I’m old at the beginning there. I feel more comfortable now than ever, that we are building a portfolio here at PPG that will have a higher growth profile and a higher margin profile. As you alluded to, we did what I would call just pruning last year of some smaller parts of our portfolio that we really did not see being consistent with our enterprise growth strategy and our performance targets. We did that last year. Obviously, Q1 this year, I announced two pretty sizable ones. Going forward, at least today, you shouldn’t count on us coming out tomorrow or any time soon with another very sizable divestiture. So I’m comfortable with what’s in the portfolio in — at a high level.
We will continue, however, to prove — I’m sorry, to prune on a smaller scale and one of our mantras going forward is that every business has to earn the right to stay in the portfolio. That means, one, from a performance outlook standpoint, but two, consistent with our very focused enterprise growth strategy. I also want to add that when we talk about portfolio, Chris, it’s not just about the pruning and divestitures. But we are also intending to be continued acquirers going forward just on a very focused basis for those things that meet both our performance outlook and our enterprise growth strategy.
Vincent Morales: Yes. Chris, this is Vince. If you think about the remaining portfolio, the businesses, we have the right to win in the businesses, whether it be on a regional basis or on a global basis. As you alluded to in your question, most of these businesses have strong technology associated with them. We’ve talked earlier in our comments about the margin profile, if absent these businesses that we’re doing a strategic review on, which again would be higher on a pro forma basis. So again, the right to win, good margins, good customer pull, those are the things that we’re focused on with respect to the portfolio.
Operator: Thank you. The next question comes from the line of John Roberts with Mizuho. Your line is open.
John Roberts: Thank you. Another coatings firm has suggested that you might separate North American architectural into Pro versus DIY and deal with them separately. Could you comment on that?
