David Silver: Morning. A couple of things. I don’t think this was asked. If it has been, I apologize. But during the quarter you called out or in your remarks and in the release, growth on the Rigid Polyols side was called out and double-digit growth all regions, et cetera. And I’m just wondering if you could go back and maybe kind of speak to that just a little bit. In other words, in my opinion, I mean, that’s more construction and durable goods related like industries that have not necessarily been the strongest lately. And I believe you called out North America and Europe where maybe the UK has just indicated they’re in a technical recession and the German market hasn’t been especially robust. So you called out the volume growth. You called out higher margins, I believe, or per unit margins. So what is in your opinion driving that growth? Is this a share gain situation or what type of drivers should we be thinking about for that portion of your polymers business?
Luis Rojo: Good question, David. What I would say is remember that destocking for this particular business started in Q4, 2022. So what you have, you have the effect of not destocking impact and that’s why you see the 12% in rigid polyols. There are still a lot of growth opportunities for the market, for the market with all the construction activity that needs to happen and with all the re-roofing that needs to happen in the U.S. If you look at the pipeline and the backlog of projects on re-roofing in North America, it’s still pretty strong and that should provide market growth for the next three to five years. So there is still — this is not like we’re in a peak and we’re good. This is just a reflection of not destocking and what we believe and what our customers are also saying is re-roofing and construction activity, there is still plenty of opportunities with energy conservation with all of that this industry should be healthy for the next few years.
David Silver: Okay, great. I was hoping to change the subject to your CapEx budget for fiscal year 2024. So the midpoint of your range is almost exactly half of what was spent in 2023. If I was just to take the midpoint of maybe 130, I was hoping you could maybe talk about that in terms of how much of that is what you might consider sustaining and then more to the point for the non-sustaining for the discretionary portion of the 130 million or so. Could you just highlight where the discretionary CapEx is being directed? So in other words, I’m guessing 1,4 Dioxane and anything remaining with Pasadena is in there, but also wondering, does rigid polyols need some incremental capacity there or where else should we be looking for where the discretionary portion of your CapEx budget for 2024 is being directed? Thank you.
Scott Behrens: Yes, Dave, this is Scott. Yes, no, you’re spot on. The 130 million is inclusive of us finishing the last final touches on the Pasadena and the 1,4 Dioxane investments, definitely the minority portion of that 130 million. In terms of other discretionary spends, I would call them incremental opportunities where we may be modifying reactor sets to produce or execute on customer-specific opportunities or certain product line extensions. I would not characterize anything in that 130 outside of Pasadena and 1,4 Dioxane as significant discretionary spend. And it’s important for us to get these new assets fully up and running and start generating returns against them. So consider the pause in 2024 for any new major incremental capital discretionary projects, and I’ll leave it at that.
David Silver: Okay. Thank you for that. Luis, I did want to ask about the debt structure, and if you could just remind me of the total debt that you have at the end of the year here north of half a billion. If you could just remind me how much of that would you consider variable in terms of either fixed rate or something that’s been locked in with derivatives where your interest costs are highly predictable? And then what is the balance that might be subject to fluctuations in short-term base rates or indices? Thanks.
Luis Rojo: Good question, David. Look, as you saw, $654 million in gross debt, $524 million in net debt when you include the 130 that we have from cash. And if you think about our debt, the majority is fixed, and it’s — I would say, 65%, 70% of that, and we fixed a lot of debt during COVID at a very attractive interest rate, so below 3%, and we also did some derivative for $100 million also hedging below 3%. So the majority is fixed at a very attractive rate.
David Silver: Okay, great. And then last one, if I could. But I was hoping to just get a tiny bit more color on the workplace productivity programs that are the biggest part, I guess, of the $50 million cost reduction program. So I guess there were some a start to it here, but you do have kind of a growing global network here. And I’m just kind of scratching my head, and I’m wondering if you could qualitatively maybe just point out one or two areas where you see the most opportunity to get from where you are now to the $50 million, I guess, run rate in cost reductions over the next year or two? Thank you.
Luis Rojo: Good question, David. Look, the majority of the $50 million comes from the operational side, right? For example, logistics, the team is doing a great job on reducing our logistic cost, and of course the market is in favor of that, so our logistic cost is going down 25%, 30%, a procurement savings on raw materials, improving the operations in the whole supply chain in our plans to reduce inefficiencies that we have. So 70% — roughly 70% of the $50 million is on the operation side, and then only 30% is the workforce productivity that we already executed. This was already the programs that we announced last year with the early retirement program, and some reductions in force, so that’s the other 30%.
