So, I think this is — once the destocking will have happened, we will be back to more traditional long-term trends.
George Staphos: Jean-Michel, (ph), but those ratios you mean as a percentage of consumption or year-on-year growth? Just one point of clarification there.
Jean-Michel Ribieras: Percentage of demand, of consumption.
George Staphos: Thank you.
Operator: Our next question comes from Paul Quinn with RBC Capital Markets.
Paul Quinn: Yes, thanks very much. Good morning, guys. Just a question on — I understand the CapEx is up this year, because it looks like you missed about $30 million of spend last year. But maybe you could give us some examples of where you’re spending the $30 million to $35 million on high-return projects? And whether you expect this higher level of CapEx to stay up in — at this level in ’24?
John Sims: Yes. Hi, Paul. It’s John Sims. So, our capital spending for this year is higher than last year. And as you said, some of that is attributed to carryover, so the things that we had planned to execute in 2022, because the supply chain got pushed into 2023. The additional spending also is due to the Nymolla mill, which we highlighted here, so the (ph). I think we gave a guidance for the maintenance and regulatory somewhere between $130 million to $150 million is what we would be spending for maintenance, regulatory and reforestation. The number is now between $180 million — $175 million and $190 million, I think, is probably a good number to go forward. And what that does include is the additional Nymolla spending, probably around $15 million to $20 million.
And also, we have the impact of inflation. We kind of highlighted that, but inflation impacted not just input cost, but labor as well as capital. And we’re expecting that to go forward. So — and I think your second part of your question is around the high-return cost reduction capital, where do we expect to spend that. So that’s a planning number right now. We do have a pipeline of projects that are going to be approved. And what we do is we make sure that we’re spending that money to get high-return projects and our most competitive mills, so we can get long-term benefit from that. And we’ll be sharing that as those projects get approved going forward.
Paul Quinn: Okay. And then, if I could just switch over to free cash flow, pretty robust guide at $300 million to $330 million, just your restrictions — if you could remind us your restrictions on share buybacks and what you’re doing to try to alleviate some of the limits on returning that cash?
John Sims: So, we — in the fourth quarter, we were able to increase the restricted payment covenants that we had from $75 million to $90 million. And that’s what, as you know, we fully utilized that and returned $90 million back to shareowners in either in form of dividend and also in terms of share buybacks. What we did last year, $10 million in dividend and $80 million in share buybacks. We’re still limited to the $90 million right now as we speak, and this is one of the things that Jean-Michel alluded to, it is a priority for us. As you rightly say, our free cash flow, we’re projecting — we feel very confident about that, it’s expected to increase this year versus next year. And so, we’re working on different options that we’ll be reviewing with the Board and we’re going to be — our intent is to get flexibility, so that we could increase what we can return back to shareowners above the $90 million.
Jean-Michel Ribieras: It’s one of our priorities. We do want to return more cash to shareowners. This is a key objective.
Paul Quinn: Well, that’s great to hear. Best of luck. Thanks.
Jean-Michel Ribieras: Thank you, Paul.
Operator: Thank you. Our next question is from Ed Brucker with Barclays. Please go ahead.