Chris Kubasik: All right. Well, thank you. Well, first of all, it’s consistent with our strategy. I think I’ve been talking for several years. We’re building a new company to provide more competition within the industry and to give the DoD alternatives. So, I’ve been pretty consistent in saying we want to grow organically and inorganically. Different companies have different portfolios. And when I looked at the market and the team looked at the markets and we saw the focus and growth on munitions, it seemed to be a gap. So, we think over the long-term to mid-term, you’re going to look back on this and see why this thing makes so much sense. I tried to lay out for Doug some of the strategy and some of the trends. But this company has some awesome employees and great technologies, and it’s a great legacy and I think there’s going to be continued growth in munitions and space and hypersonics for the long-term.
Relative to capital deployment, yes, so that — it was a — I don’t want to say it was a pretty easy decision, but it was consistent with what we wanted to do. There aren’t that many assets available in this industry. And when they come to — come available, you got to make a decision and act on them. And I’m excited that we got TDL done in 92 days and the integration is already underway. So, we can focus on getting Aerojet Rocketdyne approved and then start the integration. If you look at the investor letter, I think it’s page 14, has a nice pie chart that kind of lays out our capital deployment over a five-year period and it shows us a fair amount of balance. But I don’t foresee us doing any acquisitions for a couple of years, as you would imagine.
We have some non-core assets that we’re going to sell, and we’re going to use those proceeds to bring down the debt over the next few years. We’ll keep annual dividend increases and remain competitive, as you would imagine. And then we’ll repurchase shares probably at least $500 million a year to absorb any dilution and depending on cash flow and other dynamics, that number could increase as we go forward. So, Rob, I think, hopefully, that answered your question.
Operator: Our next question is from the line of Sheila Kahyaoglu with Jefferies. Please proceed with your question.
Sheila Kahyaoglu: Thank you. good morning Chris and Michelle. Chris, just on your last point, you’ve clearly been busy augmenting the portfolio with TDL and Aerojet. But how do you think about IRAD spend in 2023 versus 2022? You noted in your EPS bridge us $0.10 of internal investment headwinds and input costs. So, what are some of the products that you’re focused on and these technologies accelerators that you’re working on? And how do they contribute to your topline returning to mid-single-digit growth?
Chris Kubasik: Yes. Good morning Sheila and yes, IRAD is something that we have been investing in year-over-year. We have industry-leading IRAD kind of in the 3.5% range. We’ve significantly increased what we call ERAD, our external R&D from customers. When I look at the two together, we’re well over $2 billion. So we have a pretty good process to — a very good process to prioritize how we spend that money. So I think through some of the exciting things, if I start in space, we’re excited about the investments that we’ve made in some new optics that we’d refer to as replicated composite optics. Basically, this is replacement for glass mirrors in telescopes made out of carbon graphite. So the exciting thing is it’s about half the weight.
