Liz Suzuki: Great. Thank you. I’m just curious how much InSinkErator contributed to North American net sales and whether it’s fair to assume that excluding InSinkErator that North American sales would have looked more like down the high-single-digits, and then if the share gains that you cited or independent of InSinkErator?
Marc Bitzer: So Liz, first of all, the share gains were independent of InSinkErator because that’s not captured in the T5 and T6, what we typically report. So that is purely a major domestic compliance sales. The InSinkErator, again consistent with what we previously communicated – we expect 2023, about $600 million of net sales. Q1, Q2 because of seasonality will be slightly lower. So, ballpark 130 million, 140 million, so that’s pretty much what you should include in this. Keep also in mind that the North America sales numbers, we also have Canada in there and . And the small domestic appliance business Q1, Q2 also we expect it is still a little bit softer than the major domestic market. But a major appliances, we had a very solid share gain and actually on a pure major appliances, we were pretty close to revenue zero-zero.
Liz Suzuki: Okay. Great. Thanks. Very helpful.
Operator: Your next question comes from the line of Eric Bosshard from Cleveland Research. Your line is open.
Eric Bosshard: Two questions for you. First of all, curious about your take on the current consumer demand trends. There’s some moving parts in 2Q, but even if you clean up the comparisons in terms of industry growth. I’m just curious how you would characterize the momentum in terms of current demand?
Marc Bitzer: Yes, Eric. So, I mean, in short, in particularly U.S. demand, as expected. So, that’s how I would characterize it. Again, we base – because, of course, the baseline which you had in 2022, but based off what we’re see in consumer sentiment, we expect the first half to be softer in the ballpark of minus 5 to minus 10, it may be a little bit close to the minus 5, and we expect the back half to get close to the zero line. So, again, part of that is just based on effective 2022, which was a little bit softer in the second half, but we also do see a gradual improvement of the discretionary side of demand, which has been a little bit suppressed in Q3, Q4, and Q1 and there may be some carryover into Q2. But by and large, it’s as expected which also means it’s not as bad as some people we’re saying it could be.
And, of course, when you read the press around or about the macroeconomic environment, frankly, I think the U.S. economy is more resilient than most people expected. And that’s what we also see on consumer demand as the year progresses.
Eric Bosshard: Okay. And then secondly, in terms of the promotional environment and perhaps it’s linked to your outlook that you expressed there, you talked about the stable promotion environment, and I appreciate your comments, the second half were similar to your expectations of last year that the second half also did get more promotional. And so again, what underlines your expectation that promotions are stable from here after the step-up that we saw take place in the back half of last year? Why doesn’t it not step-up again?
Marc Bitzer: Eric, I can only repeat what I said in the earlier question, is, right now, the last 3 quarters turn out for most environment exactly as we expected. Again, when people refer to more promotion, that compares to with no promotions. Okay. So, right now, we see a reasonable, stable, promotional environment, and that has been now extended over 9 months. Of course, we have a sense about what’s happening in Q2, but also here, we don’t expect major surprises. The U.S. industry will always be an environment where you see some promotions around certain holidays, but we don’t see that right now getting out of hand in any way or reaching whatever to a . So, that’s what right now gives us the confidence what we expect to see a reasonable, stable, promotional environment.
Operator: Your next question comes from the line of Mike Dahl from RBC Capital Markets. Your line is open.
Mike Dahl: Hi, thanks for taking my questions. Just a couple, kind of follow-up house-keeping. On the held-for-sale accounting with the depreciation suspension, so it sounds like that’s about for the year, so tax affected, maybe that’s like , I guess the question is, was that already anticipated in your prior guide or is that incremental in terms of that impact versus what you laid out earlier this year?
Jim Peters: No, that was already included. If you look at the 2.5% that we guided to of margins for EMEA for the year that’s included in that. And obviously, we had a small little bit of that in Q4 that came as we turn these assets to held-for-sale. And I think if you look about that, look at that, you step back, the thing you’ve got to keep in mind is, as you go to 2024 and once this transaction gets approval and closes, you’re going to take the entire EMEA business out of it look at what our ongoing run rate of the business will be. And so, whether you have depreciation or not this year, the underlying business or the remaining business that will stay, that’s got the same. And what that will drive year-over-year as you just look into next year alone is about 125 basis points to 150 basis points of improvement in our overall margins just by taking the EMEA business out this year.
So, it is included, but I think as you look forward, you’ve got to say, you know what, EMEA will be completely – will not be in the picture post 2023.
Mike Dahl: Right. Okay. That makes sense. Thanks. And then the second question again, kind of follow-up here just on the corporate side. Similar to the held-for-sale with respect to depreciation, was there anything in terms of potential like stranded overhead costs that got shifted out of EMEA in corporate. I know you highlighted a couple of things that were maybe transactional in nature, but is there something that’s more ongoing in terms of how we should be thinking about those stranded costs potentially?
Jim Peters: No. I would say there’s nothing that we shifted out of EMEA into our corporate bucket again. I highlighted a few of the just – the unique items that are in there. And obviously, we also have some other things where we may decide to make investments at a corporate level throughout the year that can cause that, the buckets there or that buckets go up and down on a quarterly basis. But, again, to my point earlier, we expect that to be about $200 million a year on a run rate in an existing situation today. So, no other significant items to highlight within there.
Marc Bitzer: Michael, just to echo what Jim is saying and to be crystal clear. So, the held-for-sale only applies to the assets and business, which are part of the scope of the agreement. Okay. There’s no corporate element in this held-for-sale that is sitting in our normal corporate ongoing costs, and it’s not in any way. So, that’s crystal clear on this one. So, now that we came to the last question, I just want to thank you all for joining us today. I think you heard that we are off to very solid start. We feel good about how our operational priorities are being executed upon. There is no big surprises from what we see from a market environment, which is still challenging, but we knew we’re coming in, but we feel we executed very solid Q1, and we feel confident about the full-year. So, with that in mind, I wish you all a wonderful day and talk to you at our next quarterly earnings call in July. Thanks a lot.
Operator: Ladies and gentlemen, that concludes today’s conference call. You may now disconnect.
