We’ve been talking about a lot of these capabilities that we both acquired and developed and we’re seeing incredible progress. And it’s not just in light vehicle, it’s in HVOR; it’s in stationary, battery charging systems; it’s in industrial applications. So all of these products and solution sets that we’ve built play across those markets. And last year, $700 million of our $1 billion of NBOs were in the area of electrification. So those areas that we’ve talked about there.
Jacob Sayer: Thanks, Jim.
Operator: Our next question comes from David Kelley from Jefferies. Please go ahead.
David Kelley: Hi, good morning, guys. Maybe one more follow-up on the margin discussion from my end. I was hoping you could give us a view into your own supply chain? And maybe you can give us a sense of how you’re thinking about material electronics and maybe even logistics cost inflation and some of the component availability embedded in that targeted margin ramp in 2023?
Paul Vasington: So Jeff, I guess, we can both take it. In terms of the supply chain, I mean, it has slowly been improving. We’re seeing more improvement on the automotive side. Still strongly a little bit on the industrial side in terms of the supply chain and availability of electronics. And we do see inflation — material inflation next year continuing and at a rate similar to what we probably — what we experienced this year. So it’s still going to be a challenge. But again, the pricing is there to mitigate that. Logistics was a headwind in 2022 in terms of both rate and because of the disruption of the supply chain, the need to expedite material. We see the logistics cost turning the other way becoming favorable as rates start to come down and continue to come down in a more stable supply chain that allow us to manage the movement of material in and out of the factories much more efficiently.
So it should be — should not be the headwind that was — that what it was in 2022. In fact, it could be a tailwind for us.
Jacob Sayer: Thanks, David.
Operator: Our next question comes from Joe Giordano from Cowen. Please go ahead.
Joe Giordano: Can you just clarify the 2x battery target versus ICE? Where are you exiting 2022? And how linear is that journey to the 2x in 2026? And just to clarify, is all of that content on the car itself? Or are you considering like peripheral stuff on like charging equipment as well in that calculation?
Jeff Cote: Yes. Joe, thanks. So the $2 billion target is broader than light vehicle. It’s across the company, the target to get to electrification revenue in all of the end markets that we serve. The 2x CAGR electric is very specific to the light vehicle market. And similar to our confidence in being able to get to the $2 billion revenue in Electrification as a company with opportunities in hand, we are making great progress and feel very good about the double content on battery electric. And a lot of the areas that I’ve talked about and the question that Jim Suva asked around where that content is coming from, we’re seeing increasing opportunities to get really important sockets with our customers, not only in the legacy areas that we’ve gone after in internal combustion platforms but also on electrification, in light vehicles. So we feel great about the 2x content by the same time frame. Thanks for the question.
Jacob Sayer: Thanks, Joe.
Operator: Our next question comes from Travis Bucknall from Truist Securities. Please go ahead.
Travis Bucknall: Good morning. Thank you for taking my question. I’m calling on behalf of Will Stein this morning. We’re wondering if you could update us on what you’re observing in the supply chain by each end market. More specifically, we’re also wondering if you can give an update based on China and the impact that they’ve had from a recent lockdowns having ended.
