Barry Logan: That’s another one of those questions added to the list of questions is what does warranty look like on our R410A products moving forward when 5 years, 10 years – 5 years to 10 years from now, they didn’t even be serviceable.
Jeff Hammond: Yes. And then just on this 30% gross margin target, I mean I think you put it out there maybe a quarter or two quarters ago. Just level set us on – as you think about the path from 27% to 30%, what do you think the biggest buckets of opportunity to kind of get there over time? Thanks.
Al Nahmad: I will answer that. We have a lot of pockets of opportunity, and we will just have to take one at a time and see how we get there but we have folk, we have ambition and knowledge and the financial capability to achieve. And at some point in time, our goal, that’s our confidence level. Yes.
A.J. Nahmad: I would say there is not a silver bullet or two silver bullets. It’s hundreds of small opportunities that add up to a lot. But now we have the tools and the teams and the drive and the focus, and we will get there.
Jeff Hammond: Got it. Thanks.
Operator: The next question comes from Damian Karas with UBS. Please go ahead.
Al Nahmad: Good morning Damian.
Damian Karas: Good morning Al. So, maybe I will throw you guys a real curveball here and ask a more strategic question. With the Gateway deal, you are sort of stepping up into the plumbing space. So, maybe you could talk a little bit about the deal rationale and how you are thinking about that market opportunity? And just kind of comparing, say, the water here and the HVAC market, are there any notable differences in the distribution model and financial profile?
Al Nahmad: Well, we don’t want to provide publicly our thinking about things like that. Let’s say that we do believe that heat pump water heaters will be – have a substantial opportunity for us, and we are thinking about how to take advantage of that.
Damian Karas: Okay. I appreciate that. Would you be able to give us a sense for kind of where Gateway’s gross margins are coming into the business?
Al Nahmad: I don’t have that. Do you have it, Barry or Rick? I don’t mind sharing it.
Barry Logan: Yes. No, it wasn’t dilutive and it wasn’t accretive. So, that means it’s very comparable.
A.J. Nahmad: I think we have to take this opportunity to say how impressed we are with Chris Williams and his brothers and the team at Gateway. They have both a tremendous company over many years, and we are so proud and excited to have them as part of the family. It’s an honor that they are with us now and we can do great things together.
Barry Logan: Yes. I would say it this way too that, everyone on this call, you are in a community. And you know the legendary players and wonderful track records and so on, you know that within your industry. And with our – within our industry, Gateway is one of those very special stories and companies. So, the fun part is what happens next, though which is what can they do with kind of the keys to the kingdom in their hands, how can they grow, where can they expand, what new things can they accomplish, and what ambitions did they have that were parked because of capital, things like that. So, it’s a – there are more special companies like is a very special company.
Damian Karas: Great. Appreciate all the color guys, best of luck.
Al Nahmad: Thank you.
Operator: The next question comes from Steve Volkmann with Jefferies. Please go ahead.
Al Nahmad: Good morning Steve.
Steve Volkmann: Good morning guys. Thanks for fitting me in. I don’t think anybody has mentioned gross margins yet. So, I wanted to ask.
