Mark Peterson: Yes, I mean, there’s a range of outcomes in terms of your assumption. I think that the weighted end market growth next year, you can end up, at minus one, minus two, or you can do your math and end up plus one, plus two. It’s somewhere in that zip code for sure. And so, I think that, our low single-digit growth has some assumption around end market growth, some modest assumption around price. And then, obviously some assumption around share gains and initiative growth that we talked about.
Jeff Hammond: Okay. Great. And then just on the margin, I think you said, 150 basis points of margin, that kind of, lines up to, $20 million to $25 million of kind of incremental improvement. And I think you’ve called out, the $25 million incremental synergies, the lapping of the high cost inventory, $10 million to $15 million. Just wondering what maybe some of the headwinds are that would eat into some of those good guys?
Mark Peterson: Yes, I mean, again, I think it’s more of a function of we’re sitting here on February 7 and we sort of only know what we know at this point. And so, I think that, I don’t have a long list of headwind reconciliations for you. I just think we’re trying to describe a scenario that we see with an enormous amount of confidence. And you do your math and you just take the Elkay synergies, you can get that 150 basis points. And so, I think we’ll sort of stay close to it and update people along the way. But I don’t have a long list of headwinds to rattle off with.
Jeff Hammond: Okay. Thanks, guys.
Operator: Our next question comes from Joe Ritchie from Goldman Sachs. Please go ahead. Your line is open.
Vivek Srivastava: Hi, this is Vivek Srivastava on for Joe. And thanks for the question. My first question is just trying to understand, what’s the expectation for the portfolio apart from drinking water. So, you said drinking water will grow double-digit. It means the rest of the portfolio probably declines slightly. Maybe just give us some color on what is the expectation with water safety, hygienic, flow system side of the portfolio and what’s most pressured to lead?
Todd Adams: Yes. Again, I think we’re going to go back to, when you look at the end market mix. You can wind yourself to an aggregate flat to up one or two or flat to up one or two. Nothing significantly different than I think, what we’ve been answering this morning, regardless of product category. And so, I don’t think I have anything to give you that, is sort of different than that as it relates to a product group, because at the end of the day, all of our products go into those particular end markets. I think what we’re highlighting, is the sort of secular opportunity we see in a category that’s being built, perhaps to a degree outside of those core end markets. And so that’s why we’re, I think, highlighting drinking water more specifically than we are any of the other categories.
Vivek Srivastava: And that’s helpful. And then maybe just on the margin cadence, looks like you ended the year pretty strong and you are starting the first quarter strong with about 400 base point of margin expansion. Is there some conservatism baked in the second half of the guide right now? Because full year is like around 150 bps. So just any color on the cadence would be helpful?
Mark Peterson: Yes, I mean, again, I think we’re guiding to Q1 based on, a detailed forecast and process of what we see. We’re giving you the full year outlook here on February 7, acknowledging that, there’s a lot of road to go in the year. But also the progression on a comparable basis changes. So obviously, having just done 23.6%, we’re not going to have a 320 basis point or 400 basis point margin expansion over that in next year’s fourth quarter. So I don’t know that it’s conservatism or anything else, but it’s sort of our best view of what we think we can achieve over the course of the year.
Vivek Srivastava: Great, thanks.
Operator: Our next question comes from Brett Linzey from Mizuho. Please go ahead. Your line is open.
Brett Linzey: Hi, good morning all. Hi, just I want to come back to just destocking. I was hoping you could put a finer point on where you think we are from a destocking dynamic in non-res and residential. I know you saw some in late ’22 and resi and throughout ’23, but are you contemplating any additional destock here early in the year, or do you think we’re pretty well matched sell-in, sell-out?
Mark Peterson: Yes, our view, Brett, is we haven’t really faced that phenomenon for the last three or four quarters. So, I think our sell-in, sell-out is very balanced. Book-to-bill was above one. Inventory levels heavily across the wholesale channel, e-com channel and everything else, are on really good shape. So I don’t think – we’re having any sort of conversation about inventory, build or burn.
Brett Linzey: Okay. Yes, good to hear. Just maybe shifting to waterworks, you’re thinking about that market up low, singles. I guess given some of the public works funding and the Infrastructure Act and some of the fiscal support there, I would have thought maybe – it would have been a little stronger. What are you seeing in that area? How do you participate there? And any insight on expectations as the year rolls out?
