Julian Mitchell: That’s very helpful. Thank you for the color. And then just within TEP, I understand the recurring piece is minimal there in its 99% product-related. Any flavor you’d give us on the sort of what you’re seeing in medical versus Neptune for 2023, any major difference in kind of visibility between the 2two or the growth rate expected?
Neil Hunn: Yes. So we have the most visibility we’ve ever had at Neptune. That’s right. The order volume continues to flow. The order duration, meaning the longer date orders continues to flow. And so we feel quite comfortable and good how 2023 is shaping for Neptune. For medical products, there’s actually — I think we’ve talked about a few quarters ago, the reoccurring elements of Verathon became the largest part of the revenue stream. There’s a lot of consumable pull-through in the capital equipment there. Northern Digital has a decently high amount of consumables that are pulled through that zip code . And so it is more procedure and patient driven. And we like I said a few minutes ago, we feel that were decently well set up there, but it’s not in our base case.
So we saw 6% to 8% declines in patient volumes in the areas in which we service in 2022, all tied to hospital staffing levels. And we’re cautiously optimistic that as the labor market solution, hospitals be able to staff and be able to see patient volumes pick back up the prior levels.
Julian Mitchell: Great. Thank you.
Operator: Our next question today comes from Steve Tusa at JPMorgan. Please go ahead.
Steve Tusa: Good morning. Congrats to all. Rob and Jason, I’m looking forward to working with you. Just on the free cash, you mentioned plus or minus 80% conversion to EBITDA. Obviously, the last couple of years have been a bit volatile around all these tax items. But in ’21, I think you had a decent number of deferred revenue benefit on the cash flow statement. Maybe just give us a little bit of color looking into next year with concerns around the macro that can be a pretty big variable. I mean are you going to be around that 80% in ’23? Or will you be kind of more in between what you did in ’21 and ’22, I think, adjusted around 70%? Maybe just a bit of color on the free cash, and then I have a follow-up on Frontline.
Jason Conley: Yes, happy to. No, I think we’re feeling very good about the 80% Our deferred revenue, our renewals were really strong this quarter, and we felt good how it moved up sequentially, how was up year-over-year. And just what we’re hearing from our businesses, we feel good about the renewals. And then we’re going to have — we expect — I think I said on the call that we’ll get some improvement on our inventory ratios next year. We had a little bit of build at the end of this year. Frontline will certainly help with our negative working capital profile. They’re at negative 40%. Like I said, most of that will hit in the third quarter when all the renewals take place. Of course, if Section 174 gets repealed, this will be a home run year, but we’re not banking on that for now.
Steve Tusa: So like something in the $1.8 billion range for free cash for next year?
Jason Conley: I’ll let you come to your math on that.
Neil Hunn: Okay. We will.
