Operator: The next question comes from Michael Feniger of Bank of America. Please go ahead.
Michael Feniger: Yes, thanks for taking my question. I understand that you guys have been pricing ahead of cost, and there’s been a lot more discipline in the industry. But is there like a step function change in terms of how Republic is pricing from a few years ago? I mean, you guys went through some years of intentional shedding some business. I’m just wondering if the quality of the business now, you feel that you can have a wider price versus cost spread than maybe the Republic Services a few years ago?
Jon Vander Ark: Yes, I think it’s a good question, Michael. Certainly, and you highlighted it. Certainly, customer mix is a hidden element or hidden factor in being able to get price. And we went through some intentional shedding, right, which has negative drag on our volume for a few quarters when you look a few years back. The quality of our revenue is much higher than it was historically, and we feel good about that. And that’s all the way across from national accounts to small container to getting out the last remain broker work out of the system to municipal and getting a fair escalator into those contracts. So, I think the overall health of our pricing across the portfolio, well, not perfect, of course, but it’s much, much better than it was a few years ago.
And then you combine that with the capture and the tools that we have to really start to grind out a few extra bps here and there across our 13 million customers, who have understanding and willingness to pay. And then on the other side of that, with the RISE platform, driving productivity and changing our cost position in the business. So, when you’ve got a healthier customer mix, right, and better ability to price with a cost structure that I think is healthy and getting healthier. I think that does create the context for continued margin expansion over time.
Michael Feniger: Great. And Brian, you touched on it with the question earlier, but just to dig a little deeper. Can you actually talk about the cost inflation, how that kind of trended through the fourth quarter and what you’re seeing in early 2023? What you guys are kind of embedding there? Because I think you’re saying you’re not really embedding a rollover there. Just curious what you actually saw through the quarter in early 2023 that we’ll kind of expect or what you guys are at least embedding in the guidance there? Thanks.
Brian DelGhiaccio: Yes, if you think about for the full year for 2023, we’re in that, call it, 5% to 5.5% inflation-type range. And again, when you take a look at the 6.5% expected yield on related revenue, that’s how we’re driving that 80 basis points or so of expansion in the underlying business. That’s about the level we saw exiting the fourth quarter, and we expect it to remain relatively consistent throughout 2023.
Michael Feniger: Thank you.
Operator: At this time, there appear to be no further questions. Mr. Vander Ark, I’ll turn the call back over to you for closing remarks.
Jon Vander Ark: Thank you, Andrea. I would like to thank our 40,000 employees for their efforts that enabled our strong 2022 results. The success of our strategic investments is made possible due to their hard work and commitment to serving our customers. Have a good evening and be safe.
