David Chaika: Garik, I would say that the fundamentals are still supportive of DIY paint, particularly when you think about millennials going into the housing market. And the basic research that we’ve done is that these — that the millennials are DIY-ers, and not only for a single project, but they’re returned DIY-ers. And paint, as we’ve shown with regards to, if there is such thing as a fun DIY project, that’s how it’s viewed. And our positioning with that is favorable for us.
Garik Shmois: Understood. Thanks for that. The follow-up question is just on commodity costs. I think you mentioned you started. You’re starting to finally see some relief here. Maybe, if you could walk through some of the baskets that are particularly beneficial right now in the fourth quarter, if there’s any early look at the ‘24 on the raw material side. that would be great.
Keith Allman: Well, container costs have come down off their peak levels. That certainly has helped with freight. Some of our metals, such as zinc is off the ‘22 high. Copper, I think, is at about 350 a pound now. ‘22 high was closer to four bucks. So that’s come off. Now, we haven’t really seen that roll through the P&L, because of the time in the water and then the flow through of our inventory. But that would be a ‘24 tailwind for us. All in all, in plumbing, let’s call it low single-digit deflation for the year. In paint, certain input costs have moderated. We’ve seen resins moderated a little bit. We’re starting to see a little bit of deflation in the third quarter, but still inflation based on a full year. It’s not, we believe — not going to be enough to cover the inflation we saw in the first half.
So, let’s call it approximately flat all in for the total company for the full year. And then the reduced commodity costs that we’re seeing in the back end of the year here would be benefits for us in ‘24.
Garik Shmois: Great. Thanks, again. best of luck.
Operator: Our next question comes from the line of Stephen Kim of Evercore. Please go ahead.
Stephen Kim: Yes. thanks very much, guys. I appreciate all the color. I guess, my question is related to your targeted 18% plus operating margins. You’re pretty close in both segments. But in Dec Arch, I’m curious as to whether or not there’s a sub -segment, particularly either hardware or lighting, where you’re further away from your target than you are in paint, basically is that true and is maybe painting or, sorry, lighting or hardware a little further away. And then also within plumbing, is there a sub-segment, or a couple of areas worth calling out within your plumbing portfolio, where again, maybe you’re a little further away from your targeted levels?
Keith Allman: Yes. When you look across, Stephen, our segments and within segments, not everything is the same margin. So, there is a distribution of margins. And when you think about hardware, hardware is lower margin than paint. And that is an area, where we’re looking to improve. And I will tell you that 18% is the target that we’re shooting for now, but we think we have a significant room to continue to drive that even higher. And as I mentioned in my prepared remarks, we’ll be talking about, where we see some long-term margin targets on our call next quarter. Within plumbing, we have a broad plumbing platform and we’ve talked before about how there’s a continuum of margin in that platform from some of the beautiful chrome-plated jewelry in the kitchen and bath in plumbing to some of the less decorative components, say, of a plastic shower pan that we would install in our bathing business.
So, there is variability in margin and I think the key takeaway I’d like to share with you is that we’ve demonstrated the ability to execute and drive margin, be it with our focus on where we play and with our masco operating system to drive efficiencies. So, we’ll be tackling the whole business. But yes, there’s variability, of course, across our segments.
