Michael Dastugue: Yes Paul, good morning. Thanks for your question. So as far as the cash flow for 2022 and working capital, everything was pretty much in line with what we expected. As far as the contributions and working capital, like we talked about earlier with the inventory we came in, achieved our goal of lower units at the end of the year. So we came in pretty much in line with our expectations are going to be. As you move to 2023 and like I mentioned earlier, really looking to drive working capital benefit across the board. I would say in particular inventory is going to drive that benefit and just accounts payable, accounts payable and the relationship as that as the timing of procurement and production is throughout the year. We’re expecting some benefits over the course of the year from the payable standpoint.
Paul Lejuez: Got it. And a new change in terms on your payables that — that has occurred over the last year?
Michael Dastugue: No, no changes in terms.
Paul Lejuez: Thank you. Good luck.
Steve Bratspies: Yes, the one thing I would say about you have to remember with payables to inventory is that when the business is accelerating, like it was late last year, you get incredible payable leverage in terms of when you’re sourcing and manufacturing. And if you looked at the balance sheet at the end of 2021, I think we were like 76% payables inventory. When you think about what we did in the back half of 2022. We significantly put decelerated, right? We took production out, we took time out. And then you look at the balance sheet where I think we’re about 46%, payables to inventory, and it’s really, because we were pulling back but you’re still paying your vendors. When you get to a more normalized environment in terms of 2023, instead of those two extremes, I think you’re going to be more in that 50%, 60% area in terms of payables to inventory.
And so, when you’re trying to do the math, I think that’s something to keep in mind. As the as you get into a more normalized situation the payables goes back to a normal relationship with inventory.
Operator: Our next question comes from the line of David Swartz with Morningstar. David, your line is now open. David, your line is now open
David Swartz: I apologize for that. Sorry about that.
Steve Bratspies: Good morning David.
David Swartz: Steve, can you give us more information on Champion? What gives you some confidence that it’s going to recover, and what categories for Champion seem to be stronger and weaker right now? And also, secondly on the dividend, can you give us some indication on when you might revisit a decision to suspend a dividend? It seems to be that the dividend was eliminated due to the lower EBITDA. And so maybe when EBITDA returns to more normal levels, perhaps you’ll revisit the decision to suspend it. Thanks.
Steve Bratspies: Sure David. Let me talk about Champion first. I’m really confident in Champion and see a big opportunity in the brand. Obviously, there’s some work to do right now. But there’s a new team in place. They’re building the foundation for both revenue and margin growth. And I think that’s growth beyond the timeline of our full potential plan. They’re moving fast, really focused on brand purpose, brand desire, operational effectiveness, and to drive sustainable profitable growth, around Product Design and Merchandising, increase speed and market. They’ve already taken three months out of our global design calendar, really working on global product and channel segmentation to really provide clarity for consumers and retailers, what the portfolio is, and what the brand stands for.
