I know Microsoft talked about a more than billion dollar impact on their taxes. But if it stands and isn’t repealed or delayed, that our cash tax payments will be significantly higher this year because we’ll have the impact of both sort of catching up the 2022 taxes under that assumption and making cash tax payments related to 2023. So it could be in the 100 million dollar range of additional cash taxes this year, which would really, as I said, the two years impact, roughly $50 million related to 2022 and 50, related to 2023 in round numbers. So we’ll see how that plays out. But that’s sort of the current expectation. And given the way that tax change works, it will impact cash taxes for five years until it normalizes and you’re putting on the same amount that you’re amortizing.
Alex Zukin: Understood, so, I guess, is it fair once we get through €˜23 and CapEx starts to trend down would you expect it to kind of go back to that historical still 200 to 300 point delta between margins and free cash flow margins? operating margin?
Brian Miller: I think that’s fair.
Operator: Your next question comes from the line of Gabriella Borges with Goldman Sachs. Your line is now open.
Gabriella Borges: Hi, good morning. Thank you. Lynn I want to follow up on some of your comments on the demand environment. I think last quarter, you talked about procurement cycle stretching out a little bit, maybe just give us an update there and are you seeing any issue positive or negative with this topic shortages, negative being bottlenecking on procurement and positive being, hey, we don’t have enough work through we need to accelerate our adoption of technology at your customer base.
Brian Miller: Gabri, I don’t. Right now, procurement cycles are pretty normal. They’re going in line with our clients budgets are healthy. And we’re not really seeing delayed procurement cycles right now. Again, from our perspective, the market is relatively healthy, their budgets are healthy, and our competitive position remains strong. So we’re seeing a pretty normal, really above normal market.
Gabriella Borges: My follow-up is on competitive position. So as you think about the progress you’ve made with your cloud transition, and really leaning into that, is there a scenario where you see a pace of share gain, or your pace of displacement incumbents accelerate? Is that something you potentially are already seeing, and that’s something that could be on the cards a little bit on how it advantages you competitively? Thank you.
Brian Miller: I’ll take, I’ll start on that and Lynn can add to that. We do think that in our space, that the shift to the cloud and our cloud strategy gives us a competitive advantage. As you know, we compete across products with different competitors, and generally in each of our products suite. And those range from some very large companies to a lot of smaller, more niche e-companies. And we think that where we are in the cloud transition, is well in advance of where a lot of our competitors are. And as that desire, on our client base to move to the cloud accelerates that gives us an advantage and an ability to increase our share because of where we are in our cloud transition. And then, as we’ve talked about in the past, our connected communities vision, and the fact that we have this broad suite of products that work increasingly well together, continues to provide us with a competitive advantage there in clients that are looking for a sweet solution.
And we think that this could be one of our strengths.
Operator: Your next question comes from the line of Saket Kalia with Barclays, Your line is now open.
