Scott Donnelly: No, we’re not. Look, I think it’s — look, first of all, as you noted, it’s up versus where it was, which was at ridiculously low levels. It’s still at historically lower levels than normal. And we keep a very close eye on this. They’re mostly much older aircraft, right? So the phenomenon that people kind of refer back to is, geez, do you have aircraft competing with new aircraft sales, obviously, there was a time, going back a number of years ago now, where you have relatively new aircraft that were coming on to the market. And we’re just — we’re not seeing that dynamic. When we look at what’s out there, what’s available for sale in the used market, the number is increasing, but they are considerably older and in large part, out of production aircraft. So no, we’re not really seeing an impact of used aircraft out there that are competing with new aircraft sales.
Doug Harned: Okay, very good. Thank you.
Operator: And next we go to Gavin Parsons with UBS. Please go ahead.
Gavin Parsons: Thank you, good morning.
Scott Donnelly: Good morning.
Gavin Parsons: I just wanted to circle back to industrial margins and just get a better sense for what’s driving that, given I think context had been the section segment underperforming. And then just thoughts on, it seems like in TSV, some of your recreational vehicle competitors are having headwinds. So what’s driving the margins and growth there?
Scott Donnelly: Well, look, I mean, every — sorry, look, we’ve — we look at those end markets, be it in the auto side or in the vehicle side. And our view is, as I said, I think, overall, the industrial will be pretty flat, but with improved margins. And that’s largely, again, based on just industry forecast, we think Caltex volumes will be down somewhat, although we think margins will continue to improve in that business. On the vehicle side, I think we’ll see modest growth, and that is because we do factor in some of these higher dollar discretionary items. We don’t expect to see growth in that area. But net of all of that, the business probably still sees some modest growth, and again, continued performance on the margin line. So those things that you guys might aggregate and look at in terms of other guys in that market are completely consistent with what we’re seeing. But again, that is absolutely factored into our guide.
Gavin Parsons: That’s helpful. And maybe just circling back to the NetJets 1,500 over 15 years, I think typically, they firm up about a year out. But on average, that would be 100 deliveries a year. Is that something you need more visibility from them on over a decade of orders or…
Scott Donnelly: Well, we don’t. And you’re right. So we — the way we treat the backlog is when those firm up and that is roughly 12 months where they actually put deposits down, that’s the point at which we move those aircraft into actual backlog. In terms of looking out beyond that, we do absolutely work closely with them on forecasting what that demand is going to look like even outside of that one-year firm up period. So we certainly have very, very good dialogue and working with them to collectively anticipate what that demand is going to be on the fractional side. But then we don’t firm up and put into that actual backlog number until roughly, as you said, that one-year window.
Gavin Parsons: That makes sense. Thank you.
Scott Donnelly: Sure.
Operator: And ladies and gentlemen, as a reminder, this conference is available for digitized replay and will be available after 10 a.m. Eastern Time today through January 24, 2025. You may access the replay by dialing (866) 207-1041 and enter the access code of 4065507. And that does conclude your conference for today. Thank you for your participation. You may now disconnect.
