And our pricing strategies over time have been to be sensible and approachable to ensure that we keep our consumers. We’re going to raise within our normal algorithm this year in the 1% to 2%, as Garth noted, but we should then expect no rolling back of any pricing scenarios from us this year because we have been judicious and sensible about keeping the consumer engaged with us as we move pricing in the past. We’ll continue to monitor to that carefully as the year goes on, as we always do. On a monthly basis, we analyze elasticities and drivers and drags, which you’ve all heard from Jim Sabia over time. But we see absolutely no need to be rolling back pricing in any market because we think we were very appropriate in what we have done historically, which should allow us to be right back in our algorithm going forward.
Operator: Our next question comes from the line of Bonnie Herzog with Goldman Sachs.
Bonnie Herzog: I had a question on your free cash flow guidance of $1.2 billion to $1.3 billion this year. It’s a fair amount below your historical run rate. So maybe you could highlight the key puts and takes that are going to impact your free cash flow this year? And then, you completed your share repurchase goals to date and your $5 billion return to shareholder target, but you didn’t necessarily announce a new return goal. So, curious how you’re thinking about your capital allocation priorities going forward? And then, maybe what’s realistic to consider for cash return to shareholders this year and beyond thinking about this in the context of the CapEx needs, your leverage targets, et cetera? Thanks.
Garth Hankinson: Thanks, Bonnie. So, to start on free cash flow. I guess to start on free cash flow, we need to start at operating cash flow, right? So operating cash flow is a bit down this year versus last year. And the primary drivers of that are really a couple fold. One is there is the increase in interest that I referenced in my opening remarks pretty much at 25% increase on a year-over-year basis, and that’s really reflective primarily of the debt and the interest associated with the collapse, and then to a lesser extent, the remaining floating rate debt that we have on our books. Additionally, we’ll have higher cash paid taxes next year due to the U.S. — and some nonrecurring tax benefits that we had in FY23 and then to a smaller extent some changes in working capital.
Moving further down the list. We’ll continue to have significant investments in CapEx, as you heard. And so, that’s really — those are the factors that are driving the free cash — the operating cash flow and free cash flow ranges that we outlined earlier. As it relates to the share returns of capital to shareholders through share repurchases. We still have nearly $1 billion left under our existing Board authorization for share repurchases. As we mentioned in our comments, at the very least, we will buy back throughout the year, but we will continue to be agile and be able to take advantage of market conditions, just like we did in Q4, where, as Bill noted in his remarks, we aggressively bought back almost $300 million worth of shares as we saw some — what we consider dislocations in price.
So, that’s going to — that will be how we continue throughout the year. We actually like the ability to have that flexibility. And so, it’s something that will obviously continue to be a very critical component of our capital allocation strategy.
Operator: Our next question comes from the line of Peter Grom with UBS
