Xavier Heiss: Jim, so the way to look at the interest rate, and I’m speaking here about core debt. So this first of all, our core debt is mainly based on a fixed interest rate. So all the rates that we had for our debt maturing is not indexed or directly related to the Fed increase — rate increase or inflation that we can see on the right there. #2, we are paying down our debt, as you have noticed it. We did it this year. We had a maturity of $1 billion coming in March 2023. We took the opportunity early in March and also in December to already pay down $300 million, around $350 million. We have , we have $300 million left to do, and we plan to do that there. So no concern on our ability to pay down cash. From an interest point of view, if you take just the interest charge that we have had in quarter 4 and you’re really doing well , that means you will be closing the debt and the FITTLE business is not reported directly in this interest because you have this being reported in interest income on the one side, interest expenses on the other side.
So the forward flow agreement will obviously change the way in the future on how the interest for the FITTLE business will be reported. Maybe, give me just the opportunity to reinforce 1 point on FITTLE. With the forward flow agreement that we have signed, the business model of FITTLE is changing. And FITTLE is becoming now an asset line — asset-light servicing model for lease business, specifically related to that office-related or our industry-related type of equipment, Xerox and non-equipment there. What it does mean? It means that the ability for FITTLE to grow outside of Xerox is now enabled, and it is not done at the detriment of the free cash flow. And potentially, as you highlighted, at the detriment of rate or our ability to leverage or to get the rate that could make FITTLE competitive, we signed and we signed this agreement with a strong partner that has a strong balance sheet that help us to support the growth of this business without having the impact on adjusted cash flow.
Jim Suva: Okay. And then my quick follow-up. On Page 12 of your earnings presentation, where you talk about the effect on free cash flow of your receivable funding arrangement. I know this year is kind of the inaugural year of this agreement with your financing partners and impacted the net positive, net funding benefit to your 2023 cash flow. Long term, should they kind of equal out, meaning the growth in the receivables, should they kind of equal out? Or should they kind of always be a net funding benefit like we’re seeing in the year 2023?
Xavier Heiss: So you’re right, Jim. The way to look at it is over the time and time will be 4 to 5 years, while the runoff of the existing portfolio, which has been funded by, let’s call that the Xerox balance sheet on FITTLE acquisition programs that we have in place. So this one-off will decline over that time, and it will be replaced by this funding agreement. And this funding agreement is done outside of Xerox balance sheet. So this benefit that we see, specifically 2023 and also in 2024, will erode over time. But it will be offset, not from a free cash flow point of view, but in the P&L way of looking at Xerox. It will be offset by the fact that this agreement, as I mentioned, it is a shift in the way FITTLE will work. It will be offset by commission that we are receiving and every time we sell some of this future receivable to our partner.
