Tim Trenary: All right. So last year, I think it was in March last year, when it was clear that the Federal Reserve is going to start to address inflation and raise the interest rates. The company entered into a series of swap agreements, exchanging variable rate interest for fixed rate interest were totaled $250 million is my recollection. And those agreements to get into the details of our SEC filings, you’ll find that they are very significantly in the money as well as, frankly, our currency hedging agreements. And as a consequence of that, the approximate savings, if you will, on interest, cash interest in 2022 is about $5 million. In terms of projecting, if you will, what interest expense might be for 2024, assuming the current capital structure, I think you would be well served just to take a look at what Q3 or Q4 is in the financial results and annualize that, whether you do it on a quarterly or an annual basis.
But I think absent any very significant changes in the Fed’s behavior, which there’s all indications that they might have pretty much be done with their increases. I think that the third and fourth quarter of this year is a pretty good reflection of what might happen in 2024 with the existing capital structure. With respect to the company’s balance sheet, — the next maturity on the notes in Europe, €217 million. In notes they mature in a little more than in a year and half from June of 2025, I believe it’s in the company’s best interest at this point to let the matters in Germany settled down just a little bit so that the capital markets might better appreciate the financial impact, the favorable financial impact that, that action will have on our financial results.
So, I would expect to begin to address the balance sheet interest very early next year, depending in part on the speed with which the facility in Germany is warm down.
Majdi Abulaban: Mehmet, I do want to add something here – relate in quite a moment, I want to add related to your question on capital expenditures. To be sure, we have been actively and prudently upgrading our capabilities in recent years, especially given the evolution of our portfolio. So I feel very good about our position as a well-invested company. I just came back from Mexico with Michael Dorah. We just launched a brand-new state of the art paint line, actually one of a kind in Mexico where we are shipping the first 24-inch wheels in North America. We’ve upgraded automation, we upgraded and invested in lightweighting capabilities on both sides of the ocean. So we’ve been at this for some time, and I think now we have capability that is bar none in both sides of the ocean, and we have capacity to address not the current situation, but also growth in the coming years. So we feel very good about our well-invested position here. Operator?
Mehmet Dere: Okay. That’s very clear. Sorry.
Operator: Thank you. We’ll now take a follow-up question from Gary from Barrington Research. Your line is open. Please go ahead.
Gary Prestopino: Yes. Majdi, just a quick question. It looks like the percentage of wheels that are 19-inch are higher, at least for the last couple of quarters or 19 inches are bigger, has kind of stagnated at 52%. Do you see that increasing going forward? And the other thing is, I know you got some pricing concessions on – let me just add something to that question too. You’ve got some pricing that’s helping you increase your content per wheel. But besides larger wheels, what is being requested more by your clients? Is it lightweighting, premium finishes, aerodynamics? I mean what are some of the other things that are driving content?
