We know that our pricing is fixed with our customer. And so the way we have to drive those margins is to manage our costs and take advantage of the higher production rates in front of us. But we’ll continue to — as we move throughout the year, we tackle these higher production rates. First things first, we’ve got to get our factories stable, we’ve got to get ourselves to cash flow positive. And that’s what we’re really focused on here in 2023 and then improving on that as we move into 2024. And we’ll dialogue with you guys every call on our progress to those plans. But at this point in time, there’s a lot that has taken place between when we had those conversations now. But our goals are continuing to stretch ourselves to improve our overall profitability and make sure that we’re providing great value to our investors.
George Shapiro: Okay. Thanks very much for it Mark.
Operator: Thank you, George. Our next question comes from Kristine Liwag from Morgan Stanley. Kristine, your line is now open.
Kristine Liwag: Hey guys, good morning. On the 420 737 MAX production this year, can you guys talk about how you think about the inventory burndown that Boeing already had? Is that factored in? So, could we see true production rate and final assembly be higher than the 420 for the year that you have?
Tom Gentile: Great. Well, we have taken into account the inventory and the buffers. The 420 is what we will produce and deliver to Boeing and get paid for. Now, we still have roughly 90 units or so in buffer in Wichita. Those will continue to get burned down over time. But in the meantime, they also provide a cushion to the production system as rates go up. And honestly, it’s quite a useful thing to have that buffer in place. Over the next two years, that buffer will get smaller at different times as Boeing’s production rate exceeds Spirit’s. But for right now, that buffer is in place and it’s serving a very useful purpose to cushion the production system.
Kristine Liwag: Great. Thank you.
Mark Suchinski: And Kristine, I would just add. For clarity and what we’re focused on is the 420, it’s about 20 units that we didn’t deliver in 2022 we’ll carry over. And so we’re planning on new production of 400 units. And that’s what we expect to put and ship in place and to be paid for. What Boeing delivers to their customers is we have no purview, that’s on the Boeing side. We’re just trying to communicate to you what contract schedules we have and what we expect to produce internally and what we expect to ship the Boeing and to get paid for. And so again, I think you have to separate our production from what Boeing delivers because they have a production line, they have stored units. And we can’t really opine on what Boeing is going to deliver to the customers. What we do know is we have contractual commitments to deliver to our customer, and that’s what our production rates are–
Tom Gentile: And just to clarify, the production for the year is going to be 420 units, which includes 20 that carried over from last year. So, total units production this year and deliveries to Boeing is 420.
Kristine Liwag: Thanks guys. And if I could do a follow-up question on margins. So, I mean before it was three per month, it’s breakeven, now with your guide for 420 per year, if we just average that, that’s 35 per month for breakeven. I mean when we get out to 42, how should we think about the margin progression? And also for when you get to the mid-40s, I mean it sounded like you guys are walking back the 16.5% segment margin. So, can you give us an idea of the magnitude of change and where margins could be when you get to that mid-40s rate and stable there?
