Brian Wright : Great. Great. And one last one, if I could sneak it in. Can you just help us out with the tax rate in the quarter and then how to think about tax rate for ’24?
Brian Ketcham: Yes. Good question. In the quarter, we had — there was a change in U.S. tax regulations that took place during the quarter that now allows foreign tax credit for earnings in Brazil. Prior to that because Brazil wasn’t compliant with the global — or the worldwide transfer pricing rules, the U.S. was going to disallow the foreign tax credit. That got changed in the fourth quarter. So what happens then is it’s a cumulative adjustment for the year, taking into account that we can take that tax credit now. So it 22 — a little over 22% for the quarter. Going forward though, as we talked about before with the shift in the growth being stronger outside the U.S. than inside the U.S., it does drive a higher effective tax rate. And you saw that probably on a year-over-year basis in ’22 versus ’23. But I would say for ’24, our expectation is it’s probably going to be around 29% for the year.
Operator: The next question comes from Brian Drab with William Blair.
Brian Drab : I just wanted to start first with look at fiscal 2024 and the operating margin is being asked previously on the call, but some discussion around the long-term goal of 14% plus. what do you expect in the near term? I know you said you had the LIFO benefit that was pretty material recently. I mean could 2024 margin — operating margin, I guess, be down then?
Brian Ketcham: No, we wouldn’t expect that to be the case, Brian. And let me just also state in 2023, there really wasn’t any significant project volume either in irrigation or in infrastructure. And so that operating margin where we’re at today is independent of large projects. And we’ve said on the irrigation side, some of those projects can be dilutive on the infrastructure side, some of those — the projects are generally going to be accretive. So it can vary depending on what kind of project business that we have. But no, we are comfortable with being able to operate at this kind of level. And obviously, having the opportunity to reinvest money in R&D and new product development and those kinds of things.
Brian Drab : Okay. Yes. I guess I’m just thinking about the long-term guidance, I just find — the main question I’m walking away with is, if you are capable of that organic revenue growth of around 7 and operating margin is maybe flat to — I mean, I guess some people might model it trending towards slightly above 14% since that’s the guidance. Where does that confidence in greater than — how does that end up in a model that has greater than 10% EPS growth?
Brian Ketcham: Well, I think combining the revenue growth, the incremental margin that comes from that, I think — and then the other aspect of that could potentially be share repurchase, if again, following our capital allocation policy, if that comes into play, that’s another thing that would influence the EPS.
Brian Drab : Yes, sure. Okay. And I guess, maybe just one more for now. You talked about Brazil in terms of strong international regions. Where else some relative strength internationally in the irrigation business?
Randy Wood: I’ll take that one, Brian. The — I think in the notes we talked about the Middle East as another region where we’re seeing growth and some of that business is the large military type contracts, but some of that is also a smaller project business. Some of that is business in the private markets as well. We continue to see smaller projects coming to conclusion in Sub-Saharan Africa. So we are seeing some pretty broad widespread opportunities. And again, it goes back to food security, yield enhancements, unpredictable weather, all those factors, in our view, really support strong tailwinds in all those project-oriented markets. They’re just not going to come 1 a quarter. They’re going to be a little lumpy. They’re a little longer-term tail in terms of closing the project, ensuring financing is in place, getting the right credit risk in place.
