Good morning, and welcome to The Kroger Company Third Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Rebekah Manis, Director, Investor Relations. Please go ahead.

Thank you, Gary. Good morning, and thank you for joining us. Before we begin, I want to remind you that today's discussion will include forward-looking statements. We want to caution you that such statements are predictions and actual events or results can differ materially. A detailed discussion of the many factors that we believe may have a material effect on our business on an ongoing basis is contained in our SEC filings. The Kroger assumes no obligation to update that information. Both our third quarter press release and our prepared remarks from this conference call will be available on our website at ir.kroger.com. After our prepared remarks, we look forward to taking your questions. In order to cover a broad range of topics from as many of you as we can, we ask that you please limit yourself to one question and one follow-up question, if necessary. I will now turn the call over to Kroger's Chairman and Chief Executive Officer, Rodney McMullen.

Thank you, Rebekah. Good morning, everyone, and thank you for joining us. With me today to review Kroger's third quarter 2020 results is Chief Financial Officer, Gary Millerchip. When restrictions were set in place to address the spread of COVID-19 in mid-March, many underestimated the length of time that it would last and the number of families and communities that would be impacted. Many of the stories from the last 9 months have been upsetting, to say the least. Out of this grief, we've also seen the best parts of human nature. From our store teams to our warehouse associates and drivers and our digital teams, plants and offices, our Kroger family of associates have been nothing short of incredible during this period. I am proud of our dedicated associates who have continued to diligently execute our Restock Kroger transformation while serving our customers when they need us most. We delivered strong results in the third quarter. Customers are at the center of everything we do and sales remain elevated, and we continue to grow market share as we enhance our competitive moats, Fresh, Our Brands, Data & Personalization and Seamless. I want to highlight that Kroger's digital sales are incrementally profitable today, partly supported by our rapidly growing digital media business and partially fueled by our constant improvement in operational efficiency. This is true as an incremental pass-through rate of sales, and we have a clear path to continue improving digital profitability. Gary will touch on this more in a few minutes, but I wanted to call this out as well because it demonstrates the strength of not only our Seamless offering, but the overall Kroger ecosystem and how the components parts fit together to deliver value to our customers and our shareholders. We are more certain than ever…

Thanks, Rodney, and good morning, everyone. The Kroger team delivered strong results in the third quarter and provided a further proof point of the value creation model we shared at our Investor Day last year. We grew market share and, consistent with our value creation model, were disciplined in balancing significant investments in our customers and our associates with improved productivity and accelerated growth in our alternative profit businesses. The investments we are making in our business are allowing us to deliver strong results today and, importantly, are also setting us up to deliver sustained growth in the future. I'll now provide more color on our third quarter results. We delivered an adjusted EPS of $0.71 per diluted share, up 51% compared to the same quarter last year. Kroger reported identical sales without fuel of 10.9% during the third quarter and continued to gain market share. Our identical sales growth increase was broad-based and all departments, excluding fuel, achieved positive growth over the prior year. Meat and produce departments led the way, continuing to underscore the importance of Fresh and how we differentiate in quality and assortment for our customers. Digital sales grew 108% in the third quarter and contributed approximately 4.6% to identical sales without fuel. Customer engagement with our digital solutions is driving overall loyalty. When customers engage with both our physical stores and digital channels, they visit more frequently and, on average, spend twice as much as those who shop in store only. The vast majority of our digital customers are shopping in-store as well as online. We are, therefore, confident that the seamless experience we are building across our store and digital ecosystem position us well for continued growth in a post-COVID world. At the same time, digital sales growth in the quarter was profitable on…

Thank you, Gary. We are executing against our strategy even during the pandemic and continue to grow market share. The strong underlying momentum in our core supermarket business and acceleration in the growth of our alternative profit business demonstrates that we are successfully transforming our business model to deliver consistently strong and attractive total shareholder return in 2020 and beyond. Now we look forward to your questions.

[Operator Instructions] Our first question is from Simeon Gutman with Morgan Stanley.

I wanted to ask around e-commerce. It doesn't look like it's getting an explicit call out as a headwind, even though it's sort of doubled in terms of sales. So can I ask you where it's showing up in the P&L? And then a bigger question, presumably sales will normalize a bit in '21, but we think -- or I don't know if you think digital will still be elevated, so how does that manifest itself in the P&L for next year?

Yes. Thanks, Simeon, for the question. If you look at e-commerce, as Gary and I both mentioned, incrementally, it is profitable this quarter on the incremental growth, and it was driven by the continued improvement in reducing the costs to serve our digital customer and the incremental growth in media. And as both of us mentioned, we would expect to continue to make progress on both of those fronts. As you look to 2021, we expect -- obviously, the digital growth won't be as much as it was in 2020, but we would expect for the customer to continue to expect and want digital service. But the thing that, to me, is inspiring and great to see is customers that are digital shoppers generally still continue to come into the store to use -- to have an in-store experience when they want to. And that customer basically spends double what they spend if they don't. So we really like the overall Seamless omnichannel experience that we're delivering and creating for the customer. And we would expect, as we continue going forward, that we'll continue to make progress on the profitability of that digital shopper. And then obviously, once you get past the start-up cost of Ocado and some of the micro fulfillment centers, things like that, that is significantly even lower cost than serving the customer in the store. So when we really look at all the pieces together, we love the progress we're making and we're excited about the continued progress we expect to make. We -- everything we can see, we think the pandemic has accelerated the growth or transition to digital probably by 3 years or so. It wouldn't surprise me if it dropped off a smidgen, but I think it will continue to grow from that because it is a long-term trend where a customer really expects to be able to get something in-store, pickup or delivery, and they expect to be able to bounce back and forth based on what's easy for them. I don't know, Gary, anything you want to add?

Well, I agree completely, Rodney, with your overall comments. Maybe a couple of specifics, I mean, into 2020 and 2021, just to build on some of Rodney's comments. First of all, as you think about 2020, we talked about the pass-through rates, obviously being lower on digital although being incrementally positive. So the way it would show up in our P&L is where typically on the sales growth that we're seeing this year. We might have normally seen a pass-through rate of north of 15% on a traditional brick-and-mortar sale. The blended rate between digital and store and having in the COVID cost may be coming in around 10% versus that 15% or higher. So a combination of lower pass-through rate on digital and the incremental COVID cost will be bringing down that overall blended rate. Interestingly, though, on a specific example, as you know, we took away the fee on a promotional basis during the quarter. So that would be a headwind to gross margin. But actually, the value that we're creating through media revenue is really offsetting that. So we've been able to invest in the customer while still being able to replace that revenue by offering personalized digital communications to customers that drive new revenue streams to offset that promotional activity. As you think about 2021, just one sort of -- I guess, an unusual phenomenon just to think through it, but the more improvements we make now on our digital business as we're continuing to improve digital profitability, so as we take cost out of the cost fulfillment order, as we grow the average order value through personalization, as we grow media revenue, that -- those tailwinds will be -- if we achieve them in Q3 this year, we'll get the full benefit on the whole volume next year. So actually on the same level of business, digital would be a tailwind in next year's financial model. Now obviously, as digital continues to grow, it will create some additional investment next year. But on the base level of business that we're generating in 2020 as you create the full benefit from those cost savings from media revenue, it will become a tailwind on that base level business next year in terms of improving profitability of digital.

Maybe just one follow-up, and I think Rodney mentioned also micro fulfillment will help over time. Just to clarify, the pickup that you're doing for click-and-collect or pick-up orders, all the pickup is being done by in-house employees and I think that's pressure in the SG&A line. The Instacart and the third-party partnerships, where does that show up in the P&L? Do any of your employees actually pick for Instacart? And then, big picture, the economics with some of these third parties, I guess, where is the pricing power? Is there pricing power with you with some of those partners?

Yes. Simeon, you'd be correct in the way in which our core pickup business would show up in our P&L as a lower pass-through rate is the labor associated with picking the product in the store. That's what drives the mid-single-digit pass-through rate versus the sort of high-teen rate, if you like, on a traditional brick-and-mortar sale. We have a fairly unique model, I think, with Instacart. They are our predominant partner. We do use other partners as well in terms of delivery. So part of that business of Instacart is still delivered through the Kroger ecosystem. So the customer would come on to kroger.com or the Kroger app and would order a grocery delivery. Instacart would pick that product for us, but we're managing it through the Kroger ecosystem. So a significant part of our volume would flow through there. And then, of course, we're compensating Instacart or another third-party for that service. And that would also appear in OG&A. So it would be a similar area of the P&L. The part of the business where Instacart is using their own digital assets and the customers going through the digital ecosystem of Instacart, that would flow through more as a traditional sale and wouldn't have the same level of impact on the P&L. We are a big partner of Instacart. And obviously, we work very closely with them to make sure we're maximizing the efficiency of the model and continue to work on where we can improve the pass-through profitability on all those modalities.

And we would look constantly at people to partner with to help accelerate our experiences for our customers. So the example Gary gave is just one of many different partners and some are larger companies, some are smaller companies, but it's really how do we make sure we get -- deliver for the customer the way they want it delivered for them.

The next question is from Rupesh Parikh with Oppenheimer.

This is actually Erica Eiler on for Rupesh. So I'm not sure how much color you can provide here, but we're trying to assess what benefits you've seen on the gross margin line in recent quarters that might go away in 2021. So as we look towards next year, with the potential for some of the recent grocery boom to reverse, should we be thinking about greater gross margin pressure than a typical year as the benefits from that sales leverage reverses? And is there anything positive or negative you can call out for us next year on the gross margin line as we think about comparisons and 2021 in general?

Yes. Thanks for the question, Erica. We wouldn't, at this point, get into specifics around 2021 detailed guidance as we plan to share more color on our overall outlook for next year at our Investor Day in March and through our Q4 update when we get to that. What I would say is, in general terms, I think it's important to remember that as we talk about the investments that we're making in gross margin today, many of those are in areas that matter most to the customer around personalized promotions and value offers that really resonate with the customer in the areas that we believe will drive loyalty long term, are in the most important categories for the customer around Fresh because that's what primarily drives their decision to shop with a food retailer. We continue to invest in advertising to grow our marketing effectiveness and share of voice. So these are the kind of investments that we've been making this year because everything we see in our data and insights says that for -- to ensure that we come out at the end of the COVID environment in a stronger position than we went in and winning market share, we believe those investments that we're making are critical to that, and they're creating increased separation from some of our traditional peers as we come towards that lapsing that time period with COVID. Many of those investments are answered at everyday low prices. So I wouldn't necessarily think of all of them as having to be incremental in 2021 versus 2020, because as we cycle those, we'll obviously be layering on new promotions next year, but they are new, and it's not one on top of the other. It's the new calendar of investments that we make. So I wouldn't necessarily think of the investments that we're making having to be dramatically different. There are certainly going to be some unique factors in the model next year when you start to see deleverage in some of the sales measures that they create some headwinds in the model that you cycle, but with the continued improvements that we're driving in sourcing, the continued improvements that we expect to drive within media revenue, within alternative profits, which went into gross margin, we still feel very good about the balance model that we've shared with you and the investment community around continuing to be able to balance investments with growing customer loyalty and driving overall earnings growth.

Gary just briefly mentioned it, and we'll get into more detail in March, but when you look at overall, we do see meaningful opportunities to continue through process change and take costs out both in goods not for resale, cost of goods and operating costs itself. And we'll get into more detail in March. But Gary mentioned, this year, we're on track to take over $1 billion out, and we still see opportunity in 2021 to take additional costs out while not affecting the customers' experience.

Okay. Great. That's helpful. And then just -- I mean given some recently -- some recent industry developments on the online pharmacy side, can you just remind us where Kroger is at right now with its efforts on online pharmacy side? What opportunities do you see going forward here? And also, just curious what you're seeing from the consumer adoption of your existing offerings?

Yes. As I mentioned in the prepared remarks, pharmacy customer typically spends 3x more in our stores. And the pharmacy customer, for us, we've been working hard, our whole teams have, by treating food as medicine. And we're increasingly learning how to help customers eat healthier and live healthier. And for us, it's really the 2 working together is how we help customers stay healthy. If you look at some of the different cards in terms of discount offerings, those are things that we've been offering for several years. We have partnerships with GoodRx as an example and then others. And for us, we think it's part of the overall ecosystem. We really like the fact that we're able to help customers eat healthier and tie-in food. And it appears that about half of health care costs are driven by the way people eat, and we're helping people eat healthier. And it's a partnership that we think will work well. And one of the things that we find is customers still appreciate -- they appreciate online at times, delivery at times, but they also really appreciate having a health care professional that they can talk to one-on-one to answer their questions, and that's what we're able to offer, either in-person or on telehealth.

The next question is from Ken Goldman with JPMorgan.

There's a decent amount of inflation up the supply chain from you, everything from corn to freight. Your net pricing, I think it's safe to say, it's already risen, thanks to reduced discounting, even if maybe you didn't pull back as much as your peers did. But I'm curious to what extent some of your vendors are asking you now to accept list price increases on their end because of inflation, and what your appetite is to take these increases and pass them on to consumers, especially as we think about the next few months. And I get it, right, you want to be competitive on price, but an argument can be made, you do have a chance to push some prices higher in a low elasticity environment, too. So I'm just curious for your thoughts there.

When you look at -- and I'll let Gary get into some of the details. But when you look at overall, a little bit of inflation always [ makes this ] a little easier. And we don't have [ anything ] when we have a little inflation. But as you know, we've built a business model that is strong, whether inflation is high or low or anything in between. If you look at the third quarter, inflation was a little bit lower in the third quarter than the second quarter, and that was primarily driven in the meat commodity, which was consistent with what we expected. You're going to always work with CPGs initially to try to find ways to take costs out of the system so that our customers don't have to have inflation. And it's something that every CPG, that partnership, is a different approach in terms of trying to figure out a way to minimize the impact on customers. I don't know, Gary, anything you want to add or some of the specifics on Ken's question?

Sure. Thanks, Rodney. Ken, I would say that overall, we're seeing, as Rodney mentioned, and you've probably heard us say before, we build our model based on sort of 0.5% to 1% inflation, aligned with Rodney's initial comment. We've been seeing inflation running more in the sort of 2% range, I would say, and slightly up or down, as Rodney mentioned, but generally speaking, in that kind of range. From our perspective, it's obviously hard to predict exactly where inflation goes. We don't see anything in the overall supply chain when you think about food in the system that would cause us to be dramatically different. But there are also risks, obviously, with COVID and what happened in the first quarter around meat, as Rodney also mentioned a moment ago, and there are certainly some produce categories but because of the season have had some supply shortages, too. But nothing that I would say that would take us dramatically today as we look forward outside of that sort of 2%, give or take, range. I think from that perspective, as Rodney said, we always look for ways to mitigate that wherever we can. Where it's justified and makes sense, then, of course, we look at how would that be passed on to the customer. And really, we try and disconnect between inflation and what makes sense to pass on and then our pricing investments, which are more focused on where do we believe customer is looking for the most value and what's going to drive long-term loyalty. So we really try and make sure that if it makes sense to pass to them, we'll do that. But we're always looking to identify ways in which we can really connect more deeply with the customer and build loyalty at the same time.

That's helpful. For my quick follow-up. We are hearing some indications and seeing some indications of consumers pantry loading a little bit over the last couple of weeks as COVID has unfortunately worsened. Can you help us with what you're seeing there? And maybe what that means for the quarter-to-date trend so far in terms of your numbers?

Ken, you said a word and [ Todd ] is trying to help me understand what you...

Pantry load.

Pantry load. The -- we did put in limits on certain categories early in the quarter, and it was really -- the reason we did that was because of learnings from early. And we are -- as we mentioned, we've seen people shop fewer times, but buying more when they shop. The other thing on the holidays, obviously, on Christmas, time will tell, but -- and New Year's, but people obviously celebrated the holidays in a much smaller family gatherings than what they would have in the past year. So it's a little of all of the above that's going on. And one of the things that our supply chain team did was go and get access to additional warehouse space and then our procurement was able to buy some of the hard-to-find inventory, so that we will be there for our customers. So I would say, overall, it's pretty limited. It's a little stronger in the West than the Midwest just because of where different parts of the country are with COVID and their approach to COVID. But overall, not as much as what we saw early in the year, but some.

Ken, the only thing I would add to the second part of your question. So when you look at the cadence of sales, last quarter I would say relatively consistent throughout the quarter, give or take a percent within the -- where we landed at the 10.9%, as Rodney mentioned. We certainly saw some variability by West versus Midwest. The West being more elevated, I think, because of some of the greater restrictions that were in place. As we look at the trend in the current quarter, it will be very similar in -- quarter-to-date in Q4 versus where we ended in Q3. What would be interesting there would be, though, is -- and Rodney alluded to this, was in the first couple of weeks of the quarter, we'd have seen more of that elevated spend in the weaker Thanksgiving, while in any normal environment the week would have been an outstanding week. It wouldn't have been at the same level as sort of a COVID typical week that we've seen. And so the blend of those 3 weeks gets you to looking very similar to where we were in Q3. And I think to Rodney's point, one of the things that the reason that we've left the guidance range out there is, clearly, we're expecting continued tailwind from executing our strategy and seeing COVID trends continuing food-at-home. But understanding how exactly the holidays play out when you've got 2 more holidays, a bit like Thanksgiving with Christmas and New Year still to come, and then Super Bowl actually fall into our fiscal year this year, whereas it did in the fiscal Q4 last year, and that has a fairly significant impact on sales as well. So how our customers spend holiday gatherings and how big their basket sizes are and how that behavior plays out is still something that will be, I think, interesting to see and evolve over the coming weeks and months.

The next question is from Michael Lasser with UBS.

It's Mark Carden on for Michael today. So you noted that you're continuing to take market share. Assuming this is relative to other retailers, where do you think it's coming from? Is it largely from small traditional players? Mass merchants? Another channel? A little more color here would be helpful.

Yes. As you know, we never really looked at market share in terms of where it's coming from. And we do everything we can to expand the market and then how are we doing within that market. So we think the market share is pretty broad-based. We're getting it by our existing customers spending more with us. Some of that is driven by our digital offerings in the seamlessness of the digital offer. Some of it's driven because we are getting new customers into our ecosystem, both digitally and in-store. So it's really very broad-based in terms of where it's coming from.

Okay. And then as a follow-up, any update on the Walgreens initiative and whether you're looking to accelerate expansion there?

I would say we continue to learn. We really aren't yet in a position where we would decide whether to expand or whatever. It continues -- the customers react positively, but we are continuing to learn how to better and deeper connect with the customers. So happy, but still early on.

The next question is from Greg Badishkanian with Wolfe Research.

This is Spencer Hanus on for Greg. My first question is, can you talk about how you think price investments are driving share shifts in this operating environment today? And are you seeing promotions becoming more important today than they were 3 or 6 months ago? And sort of how you're thinking about that as we head into 2021?

Yes. If you look overall, and I'll let Gary get into more on some of the specifics, we just think it's important. Obviously, there are some customers whose financial situation continues to be very strong and growing, but there's other customers that their financial situation's been more pressed, especially as they've been affected in COVID in different ways, on losing jobs and things like that. We just believe, when you look at long-term, that it's important for customers to understand we did not take advantage of them during COVID. And we continue to invest both in everyday pricing and promotional pricing, and as Gary mentioned, like waiving fees for pickup, things like that, to try to help customers' budget to go further because we just think it's one of those things where the customer is going to appreciate everything that we've done during COVID, when we get out of COVID. The other thing, and I mentioned it in my prepared remarks that I'm so proud of the Kroger team is if you look at -- we've continued to make good progress on our Fresh dimensions, our Friendly dimensions relative to our competitors. And when you look at all of those things together between a seamless experience where a customer can go online, in-store, incredible Fresh experience that's better than they can get with our competition. And with great pricing and incredible promotions, we just really see no reason that customers would shop anywhere else.

Yes. I think you covered it well, Rodney. The only point I would add, and you said it a moment ago, but as we look at the data over a longer period of time, and obviously, none of us have been through something like a pandemic like this before, but we look at periods where customers go through different economic conditions and different environments, whether that be through short-term, natural disasters that we manage or through a longer-term economic cycle. And our learnings over time are that it's really important to stay true to your values, and it's really important to continue to deliver what the customer expects consistently because over the longer term, it really does show through. And we think that's going to be very important to deliver on that expectation that we have to come out of COVID-19 stronger.

Great. That's really helpful. And then switching to online. Can you just give us an update on the basket size for online orders and how that compares to in-store orders? And would you expect that gap to widen over time? And then just an update on the incrementality, how incremental are online orders today?

If you look at the basket size, it's significantly higher. Over time, I've always assumed that it will get smaller as the customer gets more comfortable with shopping multiple channels. But I would say, take 10 of us, what average our average guests together, and that will probably be the closest that -- Gary, do you want to answer the last?

Yes. I would say, on incrementality, we're seeing -- and I mentioned some of this in my prepared remarks, but we're seeing very similar consistent patterns in incrementality. It would still be north of 50% in terms of when we look at what customers are buying, when they engage with us digitally. And then we look at it for a longer period of time and look at the categories and the products they were buying from us before engaging in digital, and you combine the total purchasing behavior between store and digital for that customer, we're seeing new categories and new products, and there's a -- on the basket that Rodney mentioned, it was significantly higher. The north of 50% of that basket is incremental when we look at the customers' shopping behavior over a longer period of time.

The next question is from Karen Short with Barclays.

This is Renato Basanta on for Karen. So I wanted to follow up on next year, pretty high level, with respect to how you're thinking about the P&L. And appreciating sort of some of the color you've given already. If IDs are down mid-single digits next year, our math implies something like 200 basis points of margin deleverage. I mean you presumably lose some COVID costs and you had some cost savings flowing through. But I'm not totally sure that, that makes up for the deleverage. So just wondering if you could help us think about the P&L in that scenario? Specifically, what sticks in terms of COVID costs next year? And then any color on any other P&L levers you have to pull?

Yes, sure. Thanks for the question. I think overall, we think about -- I wouldn't get into specifics on the sales numbers because we're going to talk about those, as we mentioned, in our Investor Day. But we do believe when we look at customer behavior and how it's changing and some of the structural changes we're seeing and when we look at in previous economic downturns, which we think they'll still be, as Rodney mentioned, some customers that are going to continue to feel the economic impact of COVID for some time to come. That we would expect our 2-year stack sales to be above the traditional level that our model is built on because of how we're connecting with customers, how we're growing market share and some of those external factors. As you think specifically around the puts and takes in the model for next year, the areas where I think it would be important to be thinking about, and we'll be sharing more again in March when we provide that additional color, we would be expecting a significant amount of nonrecurring costs into next year, if you think about things like rewards and incentive plans, paying out based on performance in the business. If you think about some of the onetime costs we would have incurred in the early part of COVID. Even if you look at the run rate costs that we're incurring now versus the earlier part of the year, they would be significantly lower as we've optimized our plans and adjusted and by the back half of the year, I'm sure we're all hoping that a vaccine will be in place that starts to change the environment somewhat as well. So we would absolutely expect certain costs not to flow through into next year.…

Okay. That's great color. And then just wanted to get your perspective with respect to labor costs. You mentioned you're all-in average wages. But can you give some color on what your actual entry-level wages and how many associates are actually at that level. And presumably, the federal minimum wage could go to $15 an hour. So wondering how you're thinking about managing that possibility for next year?

Yes. We have very few of our associates at minimum wage, and about 90% of those are younger than 18 years old or 18 years and younger. So it's people who -- it's their first job. And as you know, we have a ton of people that come to work for us as a job and then make it a career. And we want to make sure that we're providing great career opportunities for people's income can continue to improve. We are -- whatever the federal minimum wage is, we're comfortable with that. We don't take a position on that because as long as our competitors have the same costs as we do, we're very comfortable on operating on an even ground. We -- it's always not good when we have a cost they don't have. So we don't take a position on federal minimum wage, and we view that, that's the politicians' responsibility. As I mentioned, and as you know, as part of Restock Kroger, we originally included $500 million for incremental pay increases. And so far, we've actually done $800 million of incremental pay increases for our associates in addition to providing great benefits for paid time off, sick vacation and other things.

This concludes our question-and-answer session. I would like to turn the conference back over to Rodney McMullen for any closing remarks.

Thank you for your questions today. I wish all of you and your friends and family happy holidays, Merry Christmas and a Happy New Year and encourage you to stay safe. At Kroger, our purpose is to feed the human spirit, which means that we are called to do more and help make the lives of those around us better. When we see our associates, customers and neighbors affected by systematic racism, discrimination and injustice, we are called to speak out and act in accordance with our values. Over the past several months, we've listened closely to our 0.5 million associates in countless communities across the nation to learn what we can do better to accelerate and promote greater change and equity in our workplace and the communities we serve. We recently shared our framework for action, diversity, equity and inclusion plan. This plan is just the beginning. We are approaching this effort with humility, knowing that we can't do it alone and don't and won't have all the answers. But we are committed. I am committed to continuing to listen, to speak out and to take action. That concludes our call for today. Thanks again for your questions, and thanks for your time. Goodbye.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.