Tom Gentile: Well, the production rates will go up in the second half of the year. So, we’ll have a break to 38, and then we’ll have a break to 42. And we’ve taken that into account in the terms of the total number that we’re going to produce this year is 420. But that’s — we’ll have a production rate break. We’ll go to 38 in August and 42 in October. That’s the plan. And when you add it out — and I think it’s important always to focus not on the rates, but on the total numbers of deliveries. The rate break is what you’re cycling at, at any given point, but what really matters, obviously, is the total number of deliveries in a period.
Mark Suchinski: Michael, I would just add that the second rate break happens very late in the year. And so there is some investment in capital — Working capital that we’ll have, but that rate break has very little impact on deliveries. The benefit of deliveries will really mostly take effect in 2024.
Michael Ciarmoli: Got it. That makes sense. And then just another one. I mean, do you guys have any opportunities to renegotiate these contracts? I mean we keep hearing most of the suppliers out there passing through cost, getting price increases. I mean, you guys seem to be structurally stuck here as a price taker. I mean you mentioned the 787 pricing that line unit 1405. I mean, is there anything on the 37 with new blocks? Or are you just here for the long haul at these prices or with these contracts?
Tom Gentile: Well, we’re always in discussions with our customers about the current market environment and the pressures that we’re facing. The 737 contract, the pricing on that is set all the way out to 2033. And it’s indexed to rate as we’ve said in the past. But on all the programs, we’re always in constant discussions with all of our customers in terms of the current market conditions.
Michael Ciarmoli: Okay, got it. Thanks a lot guys.
Operator: Thank you, Michael. Our next question comes from Noah Poponak from Goldman Sachs. Noah, your line is now open.
Noah Poponak: Hey good morning everybody. Just going to stay on that MAX discussion. Just want to confirm what you’re saying is there are rate breaks going on in the system on the MAX to that 38 and that 42, but one, because you’re doing them late in the year; and then two, you kind of get your system there, you break there before you’re actually sustainably delivering there that those don’t really generate a significant amount of units for you this year? Is that correct?
Mark Suchinski: In particular, the 42 a month it happens way late in the year, that is correct.
Noah Poponak: Okay. But should we then think about 2024, shipments as running off of that underlying 42 rate?
Tom Gentile: Yes, we’ll end the year at 42 and we’d expect to continue at that rate throughout 2024.
Noah Poponak: Okay. And I mean, I know there’s always a little bit of interesting or difficult — I don’t know the right word, but a dynamic of you don’t want to get ahead of Boeing, but you physically produce ahead of Boeing and Boeing wants to be conservative and cautious and everybody is still trying to figure out the health of the supply chain. But I guess I’ll just ask it anyway. I mean, how do I foot what you’re saying there on MAX rate breaks and when they occur compared to the latest from Boeing is sort of there’s still a scenario that they’re at 31 a month through this entire year. And if supply chain is a little better, maybe they can break into the high 30s sometime in the back half of the year?
