Nathan Jones : Awesome. Thanks very much for taking my questions.
Sameer Ralhan: Thank you.
Jennifer Honeycutt: You bet.
Operator: [Operator Instructions]. We’ll take our next question from Andrew Krill with Deutsche Bank. Your line is open.
Andrew Krill : Hey, thanks. Good morning, everyone. I wanted to go back to the 1Q margin guide of 23% to 23.5%. It just seems like a pretty big step down sequentially versus the around 25% in 4Q if we add back the Argentina number. I know I mentioned this is in a very seasonal business and there’s a little bit more corporate cost, but just anything else going on sequentially and maybe any help by segment on margins? Thanks.
Sameer Ralhan: Yeah, Andrew, maybe I’ll take that one. As you’re going to look at the sequential margin specific to Q1, there are really three things at play. The first one is the ramp up of the standalone company cost and the corporate cost. As you know it’s going to have the toughest year where you’re comparing in Q1 for us. That’s going to be an impact. Even in Q4, we were pretty judicious in how we’re going to bring in some of the costs related to the standalone company costs. So Q1 is where we’re going to start seeing the full run rate. And as I said earlier, the second one is going to be on the select investments that we are making. I think as we kind of look at the opportunity landscape in both Water Quality and PQI, there are some select growth investments we want to make that will impact Q1, and the benefit of those investments should start flowing through the P&L in the second half of the year.
Lastly I would say, just at the beginning of the year, water is slower to start given that Q4 is much stronger, and that’s always going to have a margin decrement, right. So a combination of those three things is really driving it. There are no major in materials otherwise impacting the margin. Overall, if you kind of again step back and look at the full year, we expect to deliver 50 to 75 basis points. We feel pretty good about delivering that. So I think in the margin, sometimes quarter-to-quarter there can be some variance, but it’s good to step back and look at the full year.
Andrew Krill : Great. Then just a quick follow-up. I know in the intro comments, I think there’s a lot of discussion on the innovation, new products for this year. Is there any way you can quantify how much of a benefit that might be in 2024? And is it more focused on one segment versus the other? Thanks.
Jennifer Honeycutt: I think across the board, we generally see about 4% to 5% of sales spent on R&D and innovation. That has been the case throughout history, and we’re carrying that forward as part of the model as well. I do think what we have as an independent standalone company, a more acute focus on where those dollars go in terms of really driving to investments that are high return and strategically compelling from the standpoint of solving customer problems. So you can think about that average as being spread pretty evenly across both Water Quality and PQI.
Andrew Krill : Thank you.
Operator: [Operator Instructions]. And it appears that we have no further questions at this time. I will now turn the program back over to our presenters for any additional or closing remarks.
Ryan Taylor: Thanks, Shelby. This is Ryan Taylor. I just want to thank everybody for joining us on our fourth quarter and full year earnings call today. We appreciate your engagement and your support, and we look forward to talking to you next time. Thank you.
Operator: That concludes today’s teleconference. Thank you for your participation. You may now disconnect.
