Luke Junk: Okay. And then maybe a final question. This one might be for Aldo. Just hoping on what happened in the car tools business, specifically this quarter, if we look at the inter-segment, so it seems like things maybe step down quite a bit. I’m just trying to reconcile what you saw in order trends versus your impression of underlying trends in power tools. Is it possible that there is sort of a onetime adjustment in orders to level set inventory on the bans in power tools. Am I thinking about that right?
Aldo Pagliari: So in some ways, there’s another buffer stock in between the tools maintained its own levels of inventory. So you’re right, simply the Tools Group had less need to buy as much in power tools and diagnostics in the quarter. It doesn’t mean necessarily that that flows onto one through the demand because you have inventories in between, both inventories at demand itself and the inventories in the hands of the Tools Group. But you have lower sales from C&I and from RS&I to the Tools Group, reflects actually pretty much power tools and diagnostic related products.
Nicholas Pinchuk: Actually, yes, I’d offer that – what you’re seeing a phenomenon as you’re seeing, as Aldo said, some adjustment there. And if you look at – if you actually look at careful look at C&I, you see they actually had a pop quarter to their traditional customers. But what happens in the power tools business is our new CT9038 came out 18 volt, it sold great, then this happened. And that kept selling, but the bigger ticket items in power tools, like the 18 volts just dropped off and people tended to want the 144 volt. Our supply chains are a little longer for that. We couldn’t supply all of that. So you have that kind of situation. But if you look at the Tools Group level, power tools are not down, especially an outstanding amount. It’s mostly between the Tools Group and C&I.
Luke Junk: Got it. I’ll leave it there. Thank you.
Operator: The next question is from Bret Jordan with Jefferies. Please go ahead.
Patrick Buckley: Hi. Good morning, guys. This is Patrick Buckley on for Bret. Thanks for taking our questions.
Nicholas Pinchuk: Okay.
Patrick Buckley: Could you talk a bit more on pricing versus units within the Tools Group. And then looking ahead, are pricing actions on the table here? Or is it more focused on pushing the shorter payable tools?
Nicholas Pinchuk: No. Pricing, we generally have – except in inflationary, exceptional inflationary times, which we’ve all been through more or less recently is we get 30 to 40 basis points of pricing, something like that. Most of our advancement basically comes from RCI and new product, which gets its margins. We get our margins for new products. We don’t plan changing that approach. We’re not really going to make a major adjustment in pricing going forward. This is more about shorter payback versus longer payback. It’s the – think of it this way. It’s just take a simple thing as a tool storage unit. Okay, you can buy a big epic and boy, they are great. People love them. They bring people up and show them their box, and they say, this is my dream, but that’s not a quick payback.
That’s a longer payback. You got to work a long time and get efficiency from the size of that and the features in that to get a payback. But if you get yourself a cart, you can move from your workplace out into the shop, particularly in some of these independent chefs out into the shop yard or all over the shop. And that gives you immediate savings in time just there. And so that’s the kind of thing I’m talking about is that shift to the idea. Is this thing going to pay for me right away, pay me back right away? Wrenches do that, particularly like the synergy I talked about here, which is a leap forward in terms of reliability and access and swing arc and make the jobs easier and able to beat the flat rate faster. So those are the kinds of things we’re betting on.
We’ve seen it work before. So I think the good thing about this is Tools Group saw it started to move on.
Patrick Buckley: Got it. That’s helpful. Thank you. And then was there anything notable to call out in the corporate expense line and Q4 seemed to take a step down from the run rate we saw in the past few years?
Aldo Pagliari: So we had lower spending in the quarter on legal expenses in particular. We had a favorable settlement on a matter. So it was able to reduce our expenditures in the quarter. But the run rate for corporate expenses is running in a typical fashion.
Nicholas Pinchuk: Actually, it’s about $113 million. It’s $113 million in the year. That’s up $5 million to $6 million year-over-year.
Aldo Pagliari: $113 million versus $1.08 million.
Nicholas Pinchuk: Yes.
Patrick Buckley: Got it. That’s all for us. Thanks guys.
Operator: The next question is from Scott Stember with Roth MKM. Please go ahead.
Scott Stember: Good morning. Thanks for taking my questions.
Nicholas Pinchuk: Sure.
Scott Stember: Nick, could you split out the different subsegments within tools, hand tools, power tools, obviously, sounds like color tools were down, but – and storage units, things like that? Thanks.
Nicholas Pinchuk: Well, it wasn’t a lot of good – being down 5.7% is not a lot of good news to go around. The big kahuna moving downwards was diagnostics. They saw it diagnostics, and we have several ranges of diagnostics and the latest introduced was the soles – it’s the low end of – I don’t want to say low end, it’s the lowest priced version of our product. And that pay in the quarter, not as well as we might have hoped in our situations. But what kind of went down was ZEUS, the top of the line and the next one down to Triton. And ZEUS had been introduced last year in the fourth quarter, so those comparisons around. But the biggest kahuna down was that. And then after that, I think actually Tool storage is up slightly, but all because of cards, pretty much because of carts and shop and tech were down.
