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There's only three things you can do: keep the cash, give it back to the shareholders, or spend it on M&A. And so, on the M&A front, if things come up that we really think make sense to the Coke Company, of course we have lots of capacity to do so. One of the other categories where you've done M&A maybe a little bit further back is coffee. So, you've spoken obviously about your desire to have those quality leadership positions. I think you have Costa in about 40 countries now. Do you see a pathway to leadership in coffee at the moment ? AnswerJames Quincey: I think we still have the same vision we had when we bought it. Unfortunately, COVID was particularly unkind to that strategy, as in the sense that most of the shops were shut for the last two years. I'm kind of simplifying it.

So, when you think about, let's say, sterile fillfinish, we have large facilities in Western Europe in the UK in addition to the US, right. So you'll see us play that role. We have a large role in some of the Chinese products as well for that local market, right.

The ocean rates getting vessels, getting containers. Our team has been incredibly entrepreneurial. Much of our volume is under contract, purposefully not all of our volume, and our teams have done some incredibly entrepreneurial things to get more freight. I would say on both the domestic and the ocean transportation, we just recently wrapped up all negotiations for our capacity there, and in each case, we have secured higher capacity, so we did increase our percentage that will be under fixed rate. And having completed those negotiations, certainly the rates are higher but we've got more capacity and following those negotiations, all of our tenders, so actually the flow of goods under those contract rates are all increasing meaningfully. So we're getting more transportation. Our suppliers are increasing production. And as I said our facilities are operating much smoother. I mean we're going to probably go well into 2022 if not through 2022 with lots of constraints and challenges in our industry, but couldn't be happier with the team's performance and our supplier partners. AnswerCraig A. Menear: Kate, I'd tell you that our suppliers have worked really, really hard. When you think about nobody was planning for the kind of growth that we've seen here. And they worked really, really hard to help improve the situation and they are gaining ground every single day. QuestionKate McShane: Thank you for that.

QuestionVivek Arya: Yes. So, just on the near term, you did reaffirm Q1. And, Dave, it would be helpful if you could give us kind of the updated free cash flow view for the year given all these changes in CapEx and OpEx.

AnswerMichael Sullivan: Yeah. So, it's probably a better question for someone else. But clearly we are expecting to have China approval. There are customers there and we'll make that a part of our process. So, we have confidence on that. AnswerGary E. Dickerson: Maybe I can add a little bit more color on China. What I say about China specifically, Applied has along history in China, strong relationships. But our overall position in China is strong. QuestionMitch Steves: Okay, yeah. And then just one last small one, you guys mentioned that the services business is kind of outpacing the product segment. I mean, is there anything to be aware of there in terms of the margin profile difference, meaning that as the (00:26:31) services continue to outgrow the product side that the margins would go up or how do we think about that broadly ? AnswerDaniel J. Durn: Yeah, I don't think Kokusai has broken out historical margin performance between the two assets and probably premature for us to comment since we don'town the asset. AnswerGary E. Dickerson: But one thing I would add though, again, in all of the customer discussions, I think the perception of Kokusai, the team, the technology and the support they provide for customers is extremely positive and certainly we want to continue that as we go forward.

The value of our differentiating model we have built is increasing as we make the most of BlackRock's capabilities from the asset management to risk analytics to ESG solutions through partnerships and strategic advice.

So time will tell. But as we look at things, we always look at overall financial envelope. What's the right portfolio of overall sports rights we want to have. So that's the way we would look at any of the rights that are out therein the future. AnswerMarci Ryvicker: Thanks, Craig. Operator Our next question comes from Doug Mitchelson from Credit Suisse.

AnswerJames D. Taiclet: So Dish will be able to do an approach, I would imagine, much like Reliance Jio or Reliance Industries in India which is, without the legacy network in place, they can take advantage of a greenfield design, first of all, free spectrum that they're getting second of all, roaming prices to get them kind of started into real subscriber, recruitment, marketing, sales et cetera that no one'sever had before in the United States. The other thing that they'll be able to do is use 4.5G or 5G technology to actually launch the whole network and not to have to migrate from a 3G to 4G to 5G technology. So their core network will be cheaper. They have free spectrum where everybody else had to go out and buy the spectrum. So they're going to get off to the races. But once we get that, we'll be able to quantify it for you. Analyst:Michael I. Rollins QuestionMichael I. Rollins: When you take the comments that you just made about technology with the comments that you're looking for adjacencies, havehas American Tower explored the possibility of owning spectrum and deploying antennas andlike you do in the small cell DAS business for indoors but taking that outdoors and letting your customers plug and play into capacity, whether it'sin the US or in the International markets ? AnswerJames D. Taiclet: So, Mike, we've explored that in depth internally through our investment committee process and our CTO's inputs to that. And at this point in time, we've concluded that large spectrum investments are not something that American Tower is going to plan to do at the moment. We do have I think a leadership position in helping to shape how CBRS spectrum, which is a shared resource, much of it has no cost to use it and it's called the general access piece of that spectrum band. We have a lot of throughput and a lot of people. QuestionMichael I. Rollins: And can you discuss your efforts to explore the edge a little bit more ? The company purchased some data center assets, I think, last year. AnswerJames D. Taiclet: Yeah, sure. That's where most of the cloud resides today. A lot of that cloud is shared, so companies like Equinix and others will create that facility and lease out space to anybody that wants to use it. Others are proprietary like Amazon and Google. And others have their own big data centers. That's where most of the cloud lives today because the latency between you hitting something on your phone and getting a response, that's about 100 milliseconds using the Big Iron Cloud so to speak. And that's okay for now. So, edge compute is going to be a requirement in the next 5 to 10 years for the cloud to operate in the way that 5G can support. 5G is going to give these kind of capabilities that cloud computing can take advantage of. And it's going to need to first be deployed into local areas likeAT&T and Verizon have both announced agreements with cloud providers that use the old central offices to put some racks up there on behalf of the cloud providers. Eventually, those are going to go we think to the network interface to the radio network interface, which is our tower sites and buildings. So we have 40, 000 forward deployed sites with I think 2.5 mobile operators per site on average. It's more of an interconnect facility next to a big data center that's across the street in Atlanta. We need that sort of proofofconcept platform to connect tower sites to which we'redoing six of them now in the Southeast US to then use to demonstrate with these new partners of ours and our existing customers how this might work. We are the infrastructure provider. So this is a very, again, longcycle program. This is part of our innovation initiative.

That was up 25%. And as you point out, the last six quarters for the Mac have been the top six revenue quarters of all time. And what's further very good about this is we set alltime revenue records in Americas, in Europe, and the Rest of Asia Pacific, and we set a December quarter record in Greater China. It's almost across the board. The response is very much because of M1, and we got even more response with the MacBook Pro that we launched during the Q1 timeframe. Both the upgraders, which we had a record number of upgraders for the December quarter, but also in markets like China, six out often sales are to people new to the Mac. Customer satisfaction is off the charts. We're not limiting ourselves. And then, Luca, can you talk a bit more on services ? What were the things that really outperformed, and maybe what trends are you seeing that is driving the extra revenue ? AnswerLuca Maestri: Yes, Shannon. It wasI mean, it was really great on all fronts. We set December quarter records in every geographic segment. And then, as I mentioned earlier, an alltime record for cloud, for music, for video, for advertising, for payment services, December quarter record in the App Store. So, we've done, as you said, better than what we were expecting at the beginning of the quarter. We now have 785 million paid subs. We've increased 165 million in the last 12 months alone, right ? Very pleased with the performance. QuestionShannon Cross: Okay. AnswerTimothy Donald Cook: Thank you. AnswerTejas Gala: Thanks. Operator We'll hear next from Katy Huberty with Morgan Stanley. Analyst:Katy L. Huberty QuestionKaty L. Huberty: Thank you. AnswerTejas Gala: Now we can. AnswerTimothy Donald Cook: Yeah. QuestionKaty L. Huberty: Okay.

Before we begin, I would like to remind you that during the course of this conference call, our comments and responses to your questions reflect management's views as of today only and will include statements related to our business that are forwardlooking statements under federal securities laws, including, without limitation, statements regarding our market opportunity, industry trends, business operations, strategy and goals, our second domestic manufacturing facility, our future products, including R2 and our expectations regarding vehicle deliveries.

HR departments today devote a significant amount of time to addressing questions from their workers. To help better manage this volume of worker and practitioner interaction, Intelligent SelfService uses predictive analytics to help proactively address common issues before workers need to contact their HR leaders.

AnswerEmmanuel Andre Marie Babeau: Thank you. Operator Our next question is from the line of Chris Growe of Stifel. Analyst:Christopher R. Growe QuestionChristopher R. Growe: Hi. Good morning, Emmanuel. AnswerEmmanuel Andre Marie Babeau: Hi, Chris. QuestionChristopher R. Growe: I just had a question for you, if I could, on some of the inventory adjustments that occurred in the quarter. And just to understand, so IQOS had an inventory drag that weighed on its volume in the quarter, and you reported an even stronger performance for that brand, excluding inventory changes. Are inventories, say, for IQOSI guess I'd be curious for your business overall, are they at the right level ? Or are there expected changes to occur in the fourth quarter on inventory, perhaps the build in (01:00:16) inventory ? AnswerEmmanuel Andre Marie Babeau: No, Chris. We got the reversal of that in Q3.

The investments make our business more capitalintensive than years past in support of industrial dependability, a more robust supply chain, and lower product costs.

We've got polling and Q&A for audience engagement, so that peopleeven if you have a large meeting, it can feel like a conversation. Ittai, I'll tell you this, we've got about 12, 000 people on my team and I do an allhands meeting. You don't have all These aren't just kind of features. They don't even have some of the categories. So, that's the other one. It's the breadth of capability.

QuestionBenjamin Swinburne: How about Europe and Latin America ? How would you sort of assess how the toddler has done so far ? It is even younger if you extend the analogy in those markets, but why do you think penetration in those markets has lagged sort of what we've seen in the US so far ? AnswerChristine M. McCarthy: Yeah, there is a conversion in Latin America specifically that is really a more deliberate shift of going off of linear to direct consumer. So we also have Disney + down there, we have Star Plus.

Maybe I'll pass it on to Julie. I don't want to hog all the time here. Analyst:Julie Hudson QuestionJulie Hudson: Okay. And of course, that really means the humans who work within Cisco are really important. In our own analysis, what we tend to do is from the ESG team, we look at the sector and what the main drivers are for the sector. And for the global IT services sector, in our risk radar, we cite human capital retention as a risk in the sector. I just wondered how that applies to Cisco's positioning.

Well, unfortunately, Colette, we're just about out of time. Want to thank you, as always, for your participation and support. Looking forward to the NVIDIA team driving a really strong growth profile this year. So thank you very much for participating.

Analyst:Christopher Brett Danely QuestionChristopher Brett Danely: Hey, thanks, guys. So just specifically to DRAM, can you just talk about how the three main end markets did relative to your expectations ? So Chris, yeah, I can take that. So in terms of our end markets, FQ2 was a really good quarter. When we think about PCs, PCs performed well. Mobile performed well.

Inc. AnswerLuca Zaramella: We are very pleased with what we did last year, the way it is playing out, I think you clearly see in the marketplace thatparticularly, the biscuit category in the U.S. is growing both through value and volume. And I think commercially, as you think about, both our big brands and we are doing quite well. We are commercially executing very well and getting a lot of synergies through the DSD system. So, everything seems to be working very well. Pricing for us islast year wasthe recognition of the fact that we saw unprecedented logistics and labor cost inflation. So, it was the right thing to do at that point in time even in a context where we weren'table to keep up with our expected service levels. And I think having conversations with the trade and now looking in hindsight, we clearly have proven that it was the right decision. We were those that led price last year a couple of times. And I believe it is the premise for continuous investment in franchises. And all we did this year was made possible by protecting the investment that we had and, clearly, pricing in that context was key. Now, pricing for us is not necessarily we go, we raise list price. It is a little bit more sophisticated than that. It is specifically around what we call price pack architecture. It is about having the right format, the right price points in the right channel. It is about mix management. There are clear profit pools and in some of those, we don't play.

Analyst:Joseph Spak QuestionJoseph Spak: Thanks, Mark. Actually, I wanted to maybe follow on that last line of commentary. Is there anyway we could get that at least for the quarter ? And especially since and I was wondering also if you could comment, I mean, there is I think report out from Cox which indicated that about 39% of the March sales for Ford were to rental.

We're sticking with the strategy that has been working well before and during the COVID crisis.

Well, I would say, Betsy, we're already ramping. And in fact, we talked, even as we talked about the first quarter about the fact that thein the USremember, US is recovering more quickly than outside the US, in the US, the numbers of premium feepaying Platinum Card Members is actually at to (00:19:54), depending on exactly which markets you look at or consumer versus small business, above where it was prepandemic. Look, it's a competitive market. It's always a competitive market in US consumer. We feel really good about the economics we're getting. And in fact, in recent times, the Delta co brand is back at about 90% of its prepandemic levels in terms of the new Card Members coming into the franchise. That is areal switch because there'sit's (00:20:53) Card Member acquisitions that you saw really drop dramatically last year because no one's sitting in a Hilton or a Marriott Hotel thinking about their loyalty programs; no one'son a Delta plane. But as travelers have comeback, demand for those products has really comeback. So, boy, I said earlier, it's about volumes, credit, and marketing. We feel pretty darn good about the marketing progress that we've made thus far this year. QuestionBetsy L. Graseck: Okay, let's switch to the commercial SME part of your business. Small, mediumsized enterprises, this has turned out to be a consistent bright spot for Amex with strong growth and strong credit. And, really, it's very compelling here because, just little over a year ago, I was arguing with people night and day about the SME book of American Express. So, congratulations on how that's been working for you. Can you give us a sense as to what's going on there that's driving that very strong level of growth ? And is it a function of client selection ? How much does the PPP matter to you in this segment ? And then, just give us a sense as to where you'reinvesting in for the future there ? AnswerJeffrey C. Campbell: Well, I do think it's client selection, Betsy. And I think one of the reasons you probably had to have so many discussions a year ago with your clients about what, how should they think about our small business franchise is, we probably had not done as good a job as we should have before the pandemic hit about articulating who are our Small Business Card Members. And I think it's important for people to realize that when you think of American Express, sometimes you think about us from a network perspective, sometimes you think about us from an issuing perspective. From a network perspective, small businesses like restaurants are super important to all of our Card Members. It's why we havewe bought Resy, it's why we love our restaurant partners. But they're actually not who our Small Business Card Members are. Our Small Business Card Members are small construction firms, they're doctors, they're lawyers, they're architects; they're small businesses who, in fact, have really prospered over the last 18 months as spending in the economy has shifted across sectors. Our global small business franchise, even considering that T&E hasn't come back, quartertodate has grown about 4%. US is clearly above that. Goods and services globally is all the way up at 17% growth yeartodate. So, we feel really good about the health of our small business franchise. To remind everyone, that franchise outside the US was the fastestgrowing part of the business before the pandemic, and generally growing in the highteens kind of percentages. And in the US, there are years and years of it steadily being at the top end of our company growth rate. We think that the spending capacity we can give to those small businesses is tough for anyone to meet. We think the footprint that we have, particularly in the US, is hard for anyone to match; and that gives us business insights that we can share with our Card Members that are hard for others to match. We are evolving the breadth of the product line we're offering to our small businesses. And just this week, we put out some new announcements about stepping up our marketing efforts with small businesses around our small business digital transaction accounts. So, we feel great about this sector. It was one of the most dynamic sectors we had prepandemic. The Kabbage acquisition was extremely well timed. It was a great opportunity that you were able to take advantage of that. And I would expect that that partnership is going towell, that ownership is going to continue to pay dividends for you. I guess, my one question on the Kabbage products that you have out there, you mentioned the digital transaction account. Is that something that you feel is wellaligned with your goals the way it's currently structured or is there a need for you to build out your own checking account ? AnswerJeffrey C. Campbell: Well, just to level set, as you would know, Betsy, for everyone to know, so Kabbage was in the early stages when we acquired them of rolling out a business checking account, they partnered with Green Dot to do that, and that is the product that we are putting into the marketplace today. It is a product that is probably targeted at the smaller end of our small business customers. Our goal is to be the working capital provider to small businesses. We don't want to be the longterm capital provider, but we're all about... QuestionBetsy L. Graseck: Yes. AnswerJeffrey C. Campbell:...working capital. And we do think that these digital transaction accounts are a very logical way to extend the relationship. We think carrying the tremendous innovation and strength of the Kabbage team with the tremendous footprint that we have across small businesses is a pretty exciting prospect in the coming quarters and years. Great.

Certainly, it sounds like there's a belief that Conoco can see enhancements to their Permian business.

I think in terms of our contracting strategy, it's pretty important to just remind you that we actually don't cut contracts with that many OBL centers. As Rhonda said in her remarks, we really focus on OBL accounts that also focus on the treatment of complex peripheral lesions. So these are typically physicians that formerly were in an inhospital setting. They treat CLI patients; they treat complex peripheral lesions. They now have moved to the OBL setting. So even though it has been a very, very effective strategy for us, we don't necessarily see it as something that would be implemented, for example, across a broad swath of the OBL market segment. AnswerJeffrey S. Points: Yeah, Mat... QuestionMathew Justin Blackman: Okay, understood. AnswerJeffrey S. Points:...the one thing I would add to that is we have been able to take on several new accounts and really add to our market share in the OBL space by that strategy. And so that's been really effective and really helped drive our 28% growth in the OBL segment. QuestionMathew Justin Blackman: Got it. Appreciate it. I'll get back in queue. AnswerJeffrey S. Points: Thanks. AnswerScott R. Ward: Thanks, Mat. Operator Your next question comes from the line of Danielle Antalffy with SVB Leerink. Analyst:Danielle Antalffy QuestionDanielle Antalffy: Hey. Good afternoon, everyone. Thanks so much for taking the question. Just wanted to follow upon Mat's question regarding the paclitaxel metaanalysis. I appreciate that you expect it to be neutral, but just wanted to dig a little deeper. Just curious about what you'rehearing around that. Then I have one followup. AnswerScott R. Ward: It's a fair question, Danielle, and thank you for that. Clearly it's something we'll continue to monitor. We have not, at this stage, seen any impact from that. We're watching it closely. QuestionDanielle Antalffy: Okay, great. And then my followup is probably for Rhonda. So just trying to get a sense of the drivers, how much of that you think is new access like radial and product shifting to OBLs ? So just trying to get a sense of what the different drivers are and how big each of those drivers are to that growth. AnswerRhonda J. Robb: Yeah. Thanks, Danielle. Appreciate the question. It was obviously a spectacular quarter. And we continue to seeI think the biggest thing that we're seeing officebased labs actually have an impact on the number of patients being treated. So it's actually improving penetration in the peripheral market. Hospital volumes also continue to grow. So that, I think, is a really exciting development. So there's strong market development happening in the space. There is continued adoption of the radial side of access. And particularly, as we come out with some of the new tools in Q3, Q4, we expect that to continue. A big driver really has been the execution of the longterm volumebased contracts and you can see that in the numbers, percent growth 28% is really spectacular, so I would say that's one of the most significant drivers. But we've also increased our sales coverage and case coverage. And the expansion of the clinical specialists has really given us the level of focus that really differentiates CSI and that's just been outstanding performance by our sales and customer support team. So I think it's the combination of all of those things that really have made CSI distinct in terms of winning in the OBL setting. Operator Your next question comes from the line of Margaret Kaczor with William Blair. Analyst:Brandon Vazquez QuestionBrandon Vazquez: Hi this is actually Brandon in for Margaret. First, I just wanted to focus onI know one of the things you've been focused on is kind of going deeper into your current accounts. And can you just talk about the success you've had in doing that so far ? And I have one other question.

AnswerJohn T. Stankey: Hi, Mike. And I think I've indicated that before. And I wouldn't quite pigeonhole it in the way you asked the question relative to households. I have an appetite to build fiber that serves a combination of our needs in the consumer space, what we need to do to deploy 5G, and what can help our Business segment. And really the unique position we'rein as a business is we have lines of business in all those areas, and that should give us leverage in fiber deployment that I think others that are either only a fixed line provider and reselling wireless services or those that are only wireless providers and trying to deploy more fiber intensive 5G networks don't enjoy. I personally do not believe that 5G is a replacement in the near term for suburban residential singlefamily living units is an optimal strategy. We've certainly got the spectrum and the assets to make that happen. But I'm just not of the mindset right now that that's the optimal place to win in the market. Today, we've kind of seen SVOD and pay TV platforms grow up independently. And there's good reasons why that's occurred up to this point in time. But there's no reason we should think that over the long haul, that once customers are aggregated on one platform or the other, that live stays separate from ondemand general entertainment content; and, that we're going to see these products ultimately come together. Do I think that satellite is necessary to respond in that area ? I mean, you can go back and look at comments I made, I think, very early on, post transaction of DIRECTV, that we didn't necessarily make that move because we loved satellite as a technology to deliver premium entertainmentbased video content. We liked the customer base. And I don't necessarily view satellite technology as the place necessary to make that happen. QuestionMichael I. Rollins: Thank you. AnswerJohn J. Stephens: Thanks, Mike. Analyst:Brett Feldman QuestionBrett Feldman: Yeah. And you've already had to adjust Tenet a couple times. AnswerJohn T. Stankey: Sure, Brett. Look, I think I said last quarter that I fully expected that coming out of COVID that I would be surprised if the industry as a whole didn't see some adjustment into thein the theatrical construct. There's just some content that is going to be more enjoyable and better to see in theaters than in the living room. I love the fact that we have that option now. So do I think that there could be somethings that we had originally chartered and built for theatrical release that maybe migrates into an SVOD construct ?

There's a long way to go. But reaching the overall gamers, whether it be a high end overall laptop, whether it be a overall desktop card that they can buy in etail and selfbuild their overall desktops at home, and / or ability for them to share doing a highend overall compute with what they need to both work and / or learn in the overall home has really benefited us. We also saw demand surge as it related to overall Steam, the amount of hours and time that they were playing online. This took the opportunity for folks to jump on GFN which you know is our cloud service that we recently just rolled out in February as an overall subscription offering as well. We've seen a surge in that and each region being very differently as So, is there pentup demand ?

It's something we can all do easily and we can look at our businesses, we can even look at our own lives and say how can we be a platform for change ? Certainly today, certainly in this world, certainly with everything that's going on and when we see everything that's going on, we can lookout there and we can say what is it that we can do to make the world better ?

Clients and prospects were able to spend time learning about new products and functionality not only from our experts but also from nearly 40 of our strategic partners including a record number from our ADP Marketplace. As a leading global technology company providing HCM solutions, we are uniquely positioned to help employers and their workers, whether it's through solutions that can help them with recruitment to retirement or through our unmatched big data capabilities, I was proud of the reception we received for our continued efforts to deliver innovative solutions with excellent service.

Appreciate the opportunity to participate. So thank you for inviting us. And we're just in the very early innings of that demand for compute power playing out and it's happening right when traditional Moore's Law to be scaling is beginning to hit a wall. It'sled the strong outperformance in 2019. We did it again in 2020. We'reset up well in 2021. We look forward into 2022 and beyond. We don't see any reason why that momentum would slowdown. And as we look out to the 2024 timeframe, where we put forward anew longterm model, we're really well set up to deliver and exceed those targets that were put out. Thank you, Dan, for that introduction. Before we go to some questions, there's been some media reports about perhaps some rising COVID cases in Asia, right, especially Taiwan and around, just wanted to get a quick update from you, if you have seen any disruptions to your business in Asia so far. AnswerDaniel J. Durn: Yeah, the way I would characterize it is there's no material disruptions todate, and what we're experiencing is very similar to what we've been experiencing for the past 15 months since the start of the pandemic. You'll find hot spots indifferent regions. And the company has done a great job over the last 15 months. So a lot of the same thing we've been dealing with for quite sometime. QuestionVivek Arya: Understood, right. I hope the thing stays all good there. Dan, anything else that you are seeing from a supply disruption perspective ?

That's why we were excited to announce earlier this week the creation of a team that has oversight for the endtoend customer experience under the leadership of our first Chief Customer Officer in McDonald's history, Manu Steijaert.

As we've done in the past with other startup activities, launch costs related to Sky Glass and XClass were reported in our corporate segment, which could become more meaningful beginning with this fourth quarter.

But as Mary mentioned in her comments, as we think about the industry, obviously we have just cycled past the China 5 and China 6 transition. We just don't know yet. And from a pricing standpoint, again, driven by this transition, we experienced more pricing pressures in Q2. That's something to keep an eye on. So all the positives from a launch perspective we continue to expect. We're keeping an eye on macro. QuestionRod Lache: Great, thank you. Operator Our next question comes from the line of Ryan Brinkman with JPMorgan. Analyst:Ryan Brinkman QuestionRyan Brinkman: Hi. Thanks for taking my question, congrats on the quarter. AnswerMary Teresa Barra: Thank you. AnswerDhivya Suryadevara: Thank you. QuestionRyan Brinkman: You know, clearly some moderation in your China profit outlook was expected given the softer volumes in the first half. I was just curious, though, if you are now calling for sequential deterioration in the industry in the back half versus the front half. Previously, you were looking forward to some companyspecific catalysts for higher profits in the back half, including a freshened lineup, introduction of the GEM [ Global Emerging Markets ] platform, et cetera, I would think too, maybe you could cycle past some of the inventory drawdown in 2Q ahead of China. So visibility in the market there is low, I know. But if there were flat industry sales in 2H versus 1H, do you think in that environment you could manage to a higher China profit in the back half ? AnswerMary Teresa Barra: I think that's one element. But with the intense pricing pressure, as Dhivya said, we don't know with the intense pricing we saw to move the China 5, how is that going to carry through. And then from a GM specific, these launches are very important because we are seeing the customer preference shifting as well as we have some older models in really popular segments. So I think, Ryan, it's just too hard to say with all of the volatility that we'refacing right now. I will tell you the team is very focused, and we have a China team that is very good at looking at every single cost opportunity. We saw that performance in the first half. We'll continue to look for that and to increase that. QuestionRyan Brinkman: Okay, thanks. And then just lastly for me, clearly the earnings power of the new fullsize truck platform was on display in 2Q, but it wasn'ton full display because there was still lost production during the quarter and the changeover to the heavyduty versions. The SUVs haven't launched. Soto help us better understand what magnitude of the earnings potential of this program was on display in the quarter, can you sketch out what has launched ? What has yet to launch, SUVs, highefficiency diesels, the even bigger pickups with Navistar, et cetera, and the relative profit potential of those various pieces ?

Even in the new emerging companies, 70% of the top 100 unicorns run on Google Cloud. The number of deals we have sold, along with ISVs, independent software vendors, has grown 130%, and through our Marketplace, many customers use our technology and partner solutions together. You've seen our growth steadily over many quarters. We have highly differentiated products in multiple product lines. We're bringing that to market through a large, focused, scaled gotomarket organization. We also work with abroad network of partners who are seeing large expansions of their business with us.

Lawrence Culp: Good morning, Andrew. QuestionAndrew Obin: Yeah. So a question regarding your range. You did say that you are holding the range initiated in late January but currently trading to low end, so two questions really. Because I do find it interesting that you stillit's still out there. And the second question, when you talk about the range, are you thinking differently about EPS versus free cash flow ? Which one is lower risk ?

Yes. And let me kind of unpack because there's really two questions. Let me very quickly open the PMT question. So, no, we don't envision Vimal holding onto both roles. But what we wanted to do is to make sure that it became clear that the PMT role is open because there's always, when we have big roles like that open we want to consider internal and external candidates. So he's going to serve in both roles. So that's the first part. Yeah, we've seen some of the same outputs on the consumer. So that's spoton as well. We see it a little bit indirectly. It's kind of slowed down, and consumers have a little bit of a different behavior, so we see it there. But I would just say this: if you go back to 2020 right after the pandemic hit us, we probably had one of the most unfavorable pandemic portfolio you could have out there, right ? I mean, our two biggest businesses were aerospace and energy. There's a lot of pentup demand, and you see it. You see it more on the consumer side. There's still a lot of pentup demand to travel. And let's be honest, the wide body, at least international travel, is nowhere near where it was in 2019. QuestionNigel Coe: That's great. Thanks, Darius. AnswerDarius Adamczyk: Thank you. Our next question comes from the line of Joe Ritchie with Goldman Sachs. Joe Ritchie, your line is open. Good morning, everyone, and congrats to everybody on their promotions. My question is really just around pricing. So, I think last quarter you guys talked about 5 points of price coming through for the year. I'm curious what's the expectation now ? And then also, clearly like you guys are building up a pretty good war chest here, is backlog's almost $30 billion. I just want to understand how you guys are thinking about the pricing that'sin that backlog. And with commodities deflating right now, could you see a nice little boost in 2023 as you start to deliver some of that backlog ? AnswerDarius Adamczyk: Sure. So, you're right, we talked about 5% for the year quarter ago. We now see that as being more like an 8% number for 2022. So, nice progress for the first two quarters and that kind of carrying through. Pricing our backlog has been something that's been very important to us. So, we expect to be able to retain a good bit of that pricing. QuestionJoe Ritchie: And maybe, Greg, just answering that question on like theon commodities deflating. Like does that impact your business at all this year ? Is that more of like a 2023 event if we continue to see base metal prices stay at current levels which have been on a downward trajectory for the last several weeks ?

Sikorsky has been producing helicopters to transport every U.S. President and CommanderinChief since Dwight D. Eisenhower, and we are proud to build on this heritage to deliver this remarkable product for years to come.

Our ability to advice, shape and deliver valueled transformation, leveraging the breadth of our services and industry expertise, from Strategy & Consulting to technology to our managed services, across industries and geographic markets, along with our privileged position with our ecosystem partners is what makes Accenture unique, and you can see this unique positioning in the number of our diamond clients, clients who turn to us for largescale transformation.

I think they will. On the Medicare side, it's all pursuant to the bid cycle. So, I feel like it's all manageable but I don't want to dismiss it.

QuestionCallum Elliot: So, the question around that is, how do you go about doing that in a category that's completely new, where you are outside of the US, hard seltzers is very nice, and you're essentially building from scratch ?

AnswerMark A. Nelson: Yeah. Thanks, Paul. Inventory has to fall into traditional ranges. If you'rein the US today, I think you're seeing much of that demand recovery with jet still to come. And that'seven with the offices not completely open and still some restrictions in place, inventory tending to find itself in traditional boundaries, and starting to see some closures and / or conversions in some of our markets, especially the US West Coast, which means the market could actually be tight on things like motor gasoline and even jet five or six years from now. So you see that in the United States. If I shift to Asia, I would say that demand recovery on jet is a little bit behind that of the US, especially given our exposure to Southeast Asia. Inventory reduction falling into those ranges is starting to happen, some of that with China stopping some of its exports for the moment. But demand catching up with refinery capacity in Asia still needs to happen. And that means that we both need perhaps some rationalization, as well as demand just to catch up with the capacity that's there. And just a half phase behind that maybe in Asia. Then for the petchem side of the equation. Petchem margins have had a strong run this year on the back of good demand and considerable supply disruptions. But we're actually preparing for it with capacity growth over the next few years. We expect that to outpace demand. So we're at that part of the cycle. And even in 2025, we're presuming we'll be on the lower portion of the margin cycle. So that means that there'll be a period of catchup therein regard to demand catching capacity. Hopefully, I got to your (00:41:31). QuestionPaul Sankey: You did. Thanks, Mark. And just from a Chevron point of view, is there any major changes in your capacity over the next five years that you anticipate in refining and chemicals ?

And as we think about sort of the broader oncology pipeline, I mean, what about PD1 combinations ? Are there anyways that you guys are thinking about sort of leapfrogging some of the competitors through some novel combinations or other ways in sort of the IO field ? AnswerMarion McCourt: Absolutely. And because of Justin's expertise in that area, I certainly would love for you to be able to hear his view on that. So, I'll turn it over to Justin. But first just make the comment, we're very excited about the future combinations and the potential that unlocks for incremental advances in efficacy. But, Justin, over to you for more. AnswerJustin Holko: Sure. Matthew, I think if you just look at lung cancer alone, there's a tremendous amount of activity that we're very excited about. It's early stages but we have this platform that you'll hear George and the team refer to as the mix and match and the ability to take multiple classes of antibodies and create combinations and do that efficiently given that we have all of these assets inhouse. So, as Marion spoke to earlier, we have the monotherapy and the combination but that'swith chemotherapy but that's really just the beginning. Beyond that, we have a costem or a CD28 that has an EGFR target that is being looked at in lung cancer in combination with Libtayo. We have a METxMET antibody which looks like it could have potential across a wide variety of met altered and overexpressed lung cancers. We even have an ADC or antibody drug conjugate METxMET that may provide significant opportunity as we think about just the broader lung cancer story itself. And then, if you think about where we are with regard to the PD1 market, there's still a lot of patients and a lot of different cancer types that don't respond to antiPD1 treatment whether you're talking about prostate cancer, multiple myeloma, nonHodgkin's lymphoma, pancreatic cancer. Still many of those cancers still have a tremendous amount of unmet medical need and we're excited about the bispecific platform that we can bring to bear on potentially everyone of these cancers.

Well, we're all looking forward to seeing how this progresses.

This next level of massive scaling makes the metaverse an even stronger candidate for cloud optimized silicon solutions that Marvell is currently enabling.

AnswerHans Erik Vestberg: Thank you. Let me start by saying that we feel really good about our position and first of all with the network we have, the offering that we are doing based on the Mix & Match, but also the offering you're alluding to, and then of course the position we have when it comes to the iPhone 12 where we have Ultra Wideband in all of them. So I think we are operating from a position of strength. We feel really good about our offerings. We also feelgood about the response.

Today's call is being webcast from our Investor Relations site at investors.micron.com, including audio and slides.

Glad I heard that correctly or rather correctly yesterday. And then just on the buyback sides. This is a longerterm question, but first of all, again some uncertainty here. And then related to that just very quickly, like I don't think it'sin the presentation, but where are you starting now in terms of debt to EBITDA and where do you think you're going to be when you raise financing ? And I'masking obviously, because the $12 billion is a very solid number. But if I look at your ranges, et cetera, and the free cash flow generation, you clearly could do more if you wanted to. So maybe address all those things here quickly.

I really like that line you used about the income statement as well as the cash. AnswerRahul Mathur: Yeah, absolutely. And two, that are important to our customers. So, many of our partners then are licensing what they see is that we'retaking the cash that they give us investing in other programs that are important right, that are part of their R&D. And that transition has been very well received and so it's interesting because what I found is that folks who haven't looked at Rambus in a while still think of us 10 years ago and when they come and take a look and people are very surprised becauseeven four years or so ago when I joined the company. QuestionAmbrish Srivastava: Okay good. I actually wanted to comeback to the longer term but I had a few near term questions that I just wanted to address and then come in to just trying to understand the business a little bit better. Soon the near term, A, could you just recap for us what you said at your last earnings call ? And there has been a lot of talk from companies all the way to Cisco who have talked about weakness in the data center side and specifically as it relates to memory. So question for you, number one, what do you guys guide to when you gave your last guidance ?

We're being careful to make sure that above all else, we're managing quality for the vehicles, and the manufacturing and engineering teams have really done an amazing job of managing through the logistical difficulties of doing it.

And we will see that in the engagement and see where we could take it from there.

When it comes to PepsiCo Beverages North America, we will compete rationally and look to improve its core division operating margin by evolving our product portfolio mix to improve growth and profitability overtime; by doubling down on our net revenue growth management framework to drive affordability; by reducing our nonworking A&M and shifting our working A&M to lowercost digital platforms; by addressing manufacturing efficiencies and focusing on endtoend integration within our selling and distribution network and by leveraging our global business solutions template, to reduce our general and administrative expenses.

This is driven by new and proprietary consumer insight. As a result, we've grown China Oreo sales doubledigits.

And good to see the strong results. AnswerCarlos A. Rodriguez: Thank you. Operator This concludes our questionandanswer portion for today. I am pleased to hand the program over to Carlos Rodriguez for closing remarks.

AnswerEvan G. Greenberg: I'm going to turn it over to Tim Boroughs in a second and Peter. But I want to straighten out one thing in your mind that I've also read that one or two of you wrote. Heldtomaturity, if you're going to use that term, is a very specific GAAP accounting term and there are rules around it. And you can only sell it under very prescriptive circumstances, i.e., an impairment, avoiding and around managing impairment. I'm looking at my Chief Accounting Officer who's surprised I can recall those rules. But that's heldtomaturity. We're a buyandhold portfolio predominantly. What that says is our intention, all things being equal, is we hold to maturity. But we have the ability to trade. And by the way, we do trade and to take advantage of yields. But overall, the portfolio is held and so losses will amortize back to par overtime. And that's the overall portfolio statement. Now about where we are beyond that, I'm going to turn it over to Tim and Peter. AnswerTimothy Alan Boroughs: Yeah, this is Tim Boroughs. In this environment, with rates rising; first of all, as Evan and Peter mentioned, we have a gap of about 150 basis points between our book and market yield. And this is like nirvana for bond investors.

I think our team has been very disciplined to manage OpEx to make sure we follow our overall business model right, grow revenue significantly faster than OpEx growth and keep the gross margin right in the middle or even above the middle of our longterm target model, so we can drive the earnings expansion much faster than top line revenue growth. When you look at the OpEx in Q1, as I said earlier, we increased headcount and project expense to really execute on all the design wins we have won.

Thanks, good morning. You've maintained your outlook for Commodity Insights revenue growth for the full year. Can you talk about the sensitivity of Commodity Insights revenue to a pullback in oil prices ? What are the puts and takes in the various parts of the business ?

AnswerJohn T. Lawler: No. There's nothing that we would share right now. And until we're ready to talk about that externally, we won't put it on the table. But overall we'll continue to look at this. And so, there's a lot of work being done overall with our dealers, partners at this point in time.

We have about $2.5 billion of land on the balance sheet, and that's worth about double, because we've been curating this land bank over the last 5 to 10 years, and we've been really focused on buying the right land in the right places, so we can build in these locations for our customers. QuestionThomas Catherwood: So, that also takes care of the supply side of the equation ?

Weaker sellthrough of consumer electronics and our customers' factory shutdowns in China were headwinds for us late in our fiscal second quarter. In China, lower consumer demand was offset by stronger data center demand due to increased gaming, e commerce and remote work activity. We are also encouraged to see manufacturers in China increasingly returning to full production and we have recently started to see China smartphone manufacturing volumes recover.

AnswerMichael K. Wirth: So the very first screening criteria is the quality of the assets and the opportunity to create value is where everything begins. I think that the commitment that Noble Energy has to ESG is very aligned with ours and I think you look at the trajectory of what they'redoing in a number of things, significant reductions in flaring in the Permian here in recent times and they'recommitted to the kinds of things we are, this does brings more gas into our business. But I won't tell you that we're driving at a particular type of asset in order to satisfy an ESG objective. And then we're looking through an ESG lens to be sure that it's consistent with our commitments on greenhouse gas intensity reduction and other dimensions of ESG which I think are well aligned. And these assets will allow us to achieve both of those objectives. QuestionJason Gabelman: Understood.

So what we saw was that there was a drop. It started the drop with infections and asymptomatic and then infections with mild disease. But then, we saw it also in hospitalizations and severe disease. This is when the Israelis when they saw it, they took the decision to start vaccinating their people with a booster and they started first as the recommendation here in the US 65 and above. And after they went through this population, they went down to 50 and then 40 and now they are going all the way down to, I think, 16 years old, so they are doing the entire population when it is ready. And the results were presented by the Israeli minister - Ministry of Health by their scientists directly to the committee of the FDA and actually that was broadcasted. The results were spectacular. They were able to reverse what they were seeing in a very, very effective way. So for me, there is no doubt that the boosters are needed and will save lives.

And like we said, it's just the macroeconomic unpredictable tough market outlook, and inside of that, it's just hard to see any points of good news on the horizon, inflation in the US, the situation in Europe, with energy and the war, and in Asia. So against that backdrop, we're still looking to have economic headwinds as we go into next year, and with that in mind, obviously, lowering our guide for Q4. As we think about it at the industry level, obviously, some of that helps to accelerate some of the rebalancing of the supply chain, and some of that will help our business like lowering of DDR and memory costs will decrease the premiums on DDR5 and make Sapphire Rapids a more compelling platform. When we look at our business units, the PC more critical device than ever, and as Satya talked about yesterday on his earnings call, 20% more active devices, usage increasing. That said, we do expect that the TAM, as I indicated in my formal comments, is going to be a bit lower next year. We've given a range aligned with the industry for servers. We have seen the slowdown in enterprise and to a lesser degree, in the cloud market, decreasing the TAM outlook there.

AnswerPreston Wells: Yeah. I mean, listen, it's a dynamic time from a supply chain standpoint. I think you're not going to hear anything different from us than you'rehearing from many others from that standpoint. If we think about that, that 50 basis points to 100 basis points, I think the last thing we said is we're probably skewing more closely to the 100 basis points side of that impact from all those different areas and it really is a few different things. So inflation on a commodity basis is kind of that normal or that new normal of like 7ish percent that you'rehearing across the board. But the bigger component of that comes from the spot buy. So that's a big driver, so that material piece is a big driver of that gap. The other area is around freight. So I think that's another area that'splaying heavy on that number. And then there's just our own internal inefficiencies that are also driving apiece of that. We have overtime in our plants. We're expediting and seeing air shipments that are playing into that as well. That's the part we expect to ease in the second half of the year, that the inflationary pricing is going to be with us, right ? It's going to be with us because we're buying now. We should be able to eliminate some of those downtimes and overtimes and expediting shipments and things like that. And that's the part we'll see ease a bit in the second half of the year. QuestionTravis Steed: If you break it into pieces like parts are going to ease and parts that aren't going to ease, would it be roughly half and half ? Is that a good way to think about it ? AnswerPreston Wells: No, I think it'snot. It'snot going to behalf and half. QuestionTravis Steed: Okay. That's fair.

We need to educate. I was in store this week with employees and they still have toit's kind sometimes of surprising for customers who's been used to wait like 14 days fora technician to show up in their room to plug the cable. So, it's really impressive. People that are using the product, they love it. So, I think that it's just the best is ahead of us. And you were talking about door swingers. I think that you're right. It's becoming a door swinger in itself. And the good thing is that 30% of our new subscriber to FWA had no service with us, so we can upsell them to postpaid. So it's using all those levers at the same time and making sure that we play with all the tools we have in our toolbox. QuestionDavid W. Barden: So, last quarter, you did something that got a lot of people's attention. There was you had an original, you had a mix of being a wireless, Verizon Wireless customer and paying, I guess it was $30 or $35 for the fixed wireless access product and you changed it up and then you kind of reduced the discount on the wireless and then lowered the optical price of the fixed wireless access. And people thought it was a big price cut. I was wondering if that had an effect. AnswerManon Brouillette: I think there was a confusion.

So Giovanni, maybe back to you, one of the other issues as we kind of wrestle with questions from investors and I'm sure you have is thatis kind of why nowwhy the merger now, all thethere's all kinds of conspiracy theories.

In addition, we are very pleased to have closed the Xilinx transaction and announced our intention to acquire Pensando.

Carlos, I wanted to ask macro view, your outlook on the current employment market. AnswerCarlos A. Rodriguez: It's a great question because it's an important one for us to keep kind of asking ourselves because we do have somethings that as they turn onus would put pressure on us. So it isthat's going to be a very important question for us to stay focused on here for the next few quarters. But as of today, when you look at the lagging indicators, so pays per control, it doesn't look like there's a slowdown or a big issue, but if you look at the same things that everyone else would look at that we have access to and that you have access to in terms of leading indicators like confidence indexes or NFIB, ISMthose types of things Michigan confidence. You know thosethere's some concern there and some reason for caution. But we have most of our employer in our RUN platform. It doesn'twhen you look at over the 10year history, I don't think it's anything to be alarmed by, butwhen you look at other factors, it's certainly a cause for caution. I just happened to look I think, the last couple of days at NFIB and that's softened significantly, but it's still well above recession levels. QuestionBryan C. Bergin: Okay.

As we think about the R2 platform, it's leveraging a lot of -- some of the technologies we're going to be introducing into R1 in terms of our updated electronics architecture and network architecture where we work to really consolidate a lot of compute functions into a smaller number of ECUs, which simplifies the harness, simplifies the number of compute platforms you have across the vehicle. As Claire mentioned, our Enduro drive units and the, really, focus on vertically integrating our propulsion platform from a drive unit point of view drives considerable cost changes into R1.

The primary concern of the company is to serve our clients, serve our community through thick or thin, and no one should ever worry about JPMorgan Chase. You all are doing estimates that show DFAST and Fed adverse. We will not lose that kind of money on credit, okay ? And on the next page, Jenn's going to explain some stuff and I'll make a few slight additional comments. So, in my view, is we shouldn't rely on anything like that. Jennifer A. Piepszak And I'll just add, Jamie, to the point on advanced RWA. If you look on the slide and you can see, we traveled from 13.1% to 10.4%.

Is this still an important and relevant program ? And if so, it's for what ? Are there other programs that you feel like you just need to keep Eylea ahead of the curve relative to ? I mean, as those of you who have been following this field now for many years, EYLEA has really been the standard for about 10 years now. And it's obviously been under attack and every year there's anothersomebody else who's going to outdo Eylea. I mean, the eye is not some sort of protected space. There's been a fallacy and it has been entire fields that were devoted to the notion that the eye was somehow protected visavis angiogenesis and protected visavis immune reactions. And it turns out that those two fields arehave largely been disproven. And this is the beauty of our EYLEA program from the beginning. That's what we focused on. We think that there is an opportunity now to enhance and extend the duration of action of EYLEA by going up to a higher dose. And I think what we've announced based on our Phase 2 is that so far, this high bar of safety was meant that we were able to achieve by obviously concentrating but also making sure we had highly purified and wellformulated form of EYLEA that by increasing the concentration of the dose level fourfold, at least at the scale of initial Phase 2 that we were able to clear that safety hurdle. And so this would allow us to now give this more concentrated form and maybe we could get all the benefits of EYLEA whilein terms of efficacy, extend its duration of action while not raising additional safety concerns. And as I said, safety right now, we believe, for all of these approaches including EYLEA are the biggest hurdles because EYLEA has been such a safe and welltolerated approach having saved so many eyes over the years with such a gratifying safety profile. So, that's going to be our hurdle. But it's going to be a challenge because of the high bar that EYLEA sets. QuestionJosh Schimmer: How do you think about the optimal trial design then for highdose EYLEA to showcase its potential ? They got a lot of market cap value and so forth only to fail in the larger Phase 3s. Well, I think, we've really learned how to design the small Phase 2s and to really understand and show whether or not we see additional efficacy or not. And so, we'redoing the same sorts of things. Is it meeting that very hard to meet safety bar that EYLEA has set ?

Over the past two years, delivery has become a $3 billion business for both McDonald's company and franchised restaurants globally.

Going forward, I think having the CPU, the GPU, the FPGAs, the DPUs, I think it gives us actually a nice portfolio to really optimize not just on a single component basis but on sort of all of the different workloads that you need in the data center.

And then you're kind of asking me I guess about the overhead ratio a little bit. I think it's more of an output than an input. And more often than not, it's driven by revenues not expenses. But having said that, in the assumptions that we'reusing to build up that 17% rate, we do get back to something like a 55% overhead ratio. But as Jamie said before, if that number has to go up to deliver the right returns in the long term, it will. Like, we don't consider it to be a constraint. QuestionMatt O'Connor: Okay. Then, obviously, the math implies, to get back to 55% you have kind of outsized operating levers for a few years, right ? AnswerJamie Dimon: You've got to do your own models, okay ? (01:06:42) AnswerJeremy Barnum: Yeah. The notion of operating leverage at the level of the company's overall numbers, for me becomes just not terribly meaningful. Obviously, expectations have moved up quite a bit. And I'm just wondering kind of what's basing that opinion. Or if it hasn't gone up yet, why will it from here ?

So we're kind of there in the US. AnswerBrian L. Roberts: And we saw all the benefits, we looked at all the numbers, terrific IRR and so yes, it's a capital, there's a loss upfront to go out to the home and hook it up or tothere'sit has hit EBITDA in that way.

So first, having had the recent experience, and other retailers that you've had, as you did the assessment of Lowe's that resulted in the plan that you discussed at the Analyst and Investor Conference in December, what stood out as the most glaring areas for improvement or the lowesthanging fruit that you can tackle basically right off the bat ? AnswerMarvin R. Ellison: Well, I'll give you my thought and I'll let Dave provide comments from his perspective. For me, I think it was the performance gap with our closest competitor.

Is that's something that's still somewhere in this part of the middecade or the next one ? AnswerClaire McDonough: So I would say there's a whole host and as you can imagine, there's many, many sort of additional vehicles that we'd love to be bringing to market. And I guess just from a financials point of view, then in terms of CapEx magnitude, I think maybe your initial plans were $3.5 billion, $4 billion or so of CapEx a year in thethrough mid decade. Has that been roughly cut in half or how should we think about the capital savings in the meantime ? AnswerClaire McDonough: I would characterize it as more of a run rate in the low $2 billion area. QuestionEmmanuel Rosner: Through middecade and that would support building of the plant and start of the R2 ? AnswerClaire McDonough: Yeah. QuestionEmmanuel Rosner: And did I understand it right that as part of this, there's essentially commitment of obviously not to raise capital essentially to get there, but does that also get you to positive free cash flow by then or not necessarily ? AnswerClaire McDonough: So, we haven't made commitments around positive free cash flow. What I will say is that what we've talked about in the past is with this new strategy and plan, it allows us to drive the business towards positive EBITDA with a capacity that's installed in our plant in Normal, Illinois. And so, what that means for Rivian is that we'rein the driver's seat. But given the acceleration of adoption of EVs, we certainly want to go much faster than that as an organization. From Rivian's perspective, how far up the battery supply chain would you like to go in order to control your own destiny ? AnswerClaire McDonough: Sure. QuestionEmmanuel Rosner: So can you just remind us within your existing spending and building plans, what are youwhat is included from a battery point of view ? From a battery cell vantage point, one of the strategic decisions that we had was ultimately to phase the buildout of our own insourced or inhouse cell which is planned for Georgia. And so, the expectation for us was to start to spend against that development postR2 production, so really the tailend of 2025 which would start some more of the capital spend and deployment against that insourced cell. QuestionEmmanuel Rosner: Let's shift gears to software and services. That's been a big part of the Rivian story during your IPO process. When will you start deriving revenues from FleetOS fleet management from Amazon ? And so, the very first vehicles that we'redelivering to Amazon all have a subscription to our FleetOS offering attached to themaswellAndsothesearerevenuesalbeitnotsignificantrevenuestodaybutarerevenuesthatwe'reearning And the opportunity that we have with Amazon is to make the experience that much more seamless with one singular partner that can help them throughout that endtoend journey, right ? So we'reworking closely with them on infleeting of vehicles. We'reworking with them on the development and training of their own employee base. And so a lot of these core factors have really driven what this curated FleetOS solution is for Amazon and is something that we are really looking forward to also leveraging as we think about the opportunity for us to go address along tail of additional commercial customers as well within the nearterm. And in addition to financing your vehicle, you can also insure your vehicle.

These rate decisions are based on our current assessment of the demand environment, taking into account a host of risks and opportunities.

This performance was driven by two key items: first, during the December quarter a year ago, we experienced significant supply constraints, while this year we had enough supply to meet demand; second, we launched our new iPad and the iPad Pro powered by the M2 chip during the quarter. The iPad installed base reached a new alltime high; thanks to incredible customer loyalty and a high number of new customers.

And so there's a different strategy there. That becomesit's a core backbone across all the consumer side business, including the wealth management business for the financial advisor to have customer who, frankly, 90% of the wealthy customers have a selfdirected account somewhere, so why not with us, that difference is like doubling the size of the business or tripling the size of the business without muchbut we're only working on our people. So, to trigger that is all around digital. Digital sales are half the platform, but there's the other half. So, there's still a role for the physical store ?

And there's still upside there because it's a different rate curve and a different pace of increases. And so, those will be some of the puts and takes to think about. Volumes, the rates, the speed of the curve moves, and then how betas evolve, that will kind of factor in. So, we just exited Taiwan. That's going to impact obviously the next quarter's NII. So, just a couple of factors to think about. And obviously I'll give you more detail on 2024 at the fourth quarter earnings call. Operator And our next question comes from Ryan Kenny with Morgan Stanley. Analyst:Ryan Kenny QuestionRyan Kenny: Hey.

Because one of the great surprises was that in 2020, people who thought that the COVID shock would derail discussions about sustainability because no one had the luxury of time or money to think about it, those people who said that, including myself by the way, were wrong, COVID19 actually accelerated that.

Wanted to seeI don't know if Kenny, if you have some thoughts on this or Lance. Where do you think customers are at in this journey ofin focus on ESG, like just kind of thoughts of percent of the customers that can factor in ESG to the modal decisions and how that might evolve.

It's about half of our real estate holdings, a little less than half live in some strategic capital vehicle, of which there are roughly 10; two of them public; one in Japan, one in Mexico; three of them are openended funds. And these are sizable ventures to our flagship European fund and our flagship US fund are $20 billion, $25 billion each on their own. They're openended in format where investors come in and out every quarter at these appraised NAVs, and then a few joint ventures. This is just a great way to own real estate. It diversifies our capital sourcing. It's very ROE accretive to the ownership of the real estate by right of the fee streams. We're going to have roughly $1 billion would be embedded in our guidance in revenues between our asset management and other fees as well as the incentive fee that we've talked about. And to the point you made on exposure, and we should maybe talk about FX because we're a global company but pretty unimpacted by FX, which I can explain, but that's partly the reason. We own the real estate. Your question on valuations, I guess, the oneand you cited there's another promote that's earnable next year, which is in our flagship US fund and that's true, it would be the same open question of ultimately what goes on with valuations and what goes on with appraisals. QuestionAnthony F. Powell: Okay.

Looking to the 2024 enrollment period which begins Sunday, we're confident our offerings will again resonate with consumers as they prioritize high quality care and stable benefits. Pharmacy as you know is the most common consumer touch point in healthcare. Optum Rx is delivering on those expectations.

We've made great progress. QuestionTim Anderson: So, I mean, that's kind of what I had assumed it was, which is with all the R&D balls in the air, you don't want things to dragon longer. You want to get this integration process going. So, that kind of segues into the next question. What's going to be kind of the hardest thing to do in integrating this company over the next 12 months post deal closure ? And I've covered Bristol a long timestarted covering about when you joined there. Bristol hasn't done a deal of this size, at least on that timeframe. So there's some integration risk. So, passing hands once already into Celgene, now passing hands twice into Bristol. So, in your view, what's the most fragile thing to integrate over the next 12 months ?

Cytiva margins did come in north of 40% in Q2, which is obviously, like you said, better than sort of the recent performance that we had seen out of them. I think there's three things to think about on the reason for that. One, we had higher volume here. North of 20% core growth does give you lots of opportunities from a fallthrough perspective, from a VCM perspective, so we did have higher volumes. The other thing, the second thing is there's probably a very favorable mix element here. And the third thing isand I think you've seen it in a lot of placeswe just had a lot lower OpEx spend given the stayat home orders. Travel, trade shows, et cetera, was sort of much lower. So I think if you add it all up, that'show we sort of went from where we thought it would be to north of 40%. But I would sort of maybe temper some expectations here as we head into marginthink about the margins in Q3. Like I said, Q2 was sort of a perfect storm with everything going the right way, but there's two things to think about as we head forward into Q3 and the second half. One is this is a business that we are going to accelerate the growth investments in, not unlike we have done with our other businesses. We alluded to that earlier in the call. But in particular, this business, one, given the plethora of growth opportunities that are out there and across all of their businesses, not just in bioprocessing. And we're very eager to make sure that they have every opportunity afforded to them. So that's one. And then two, we're 90 days into this from a kind of standing it up on its own, if you will. And so our standup costs, the number of people we've hired, the costs that we've put into the business so far to get it stood up and off of sort of the GE kind of apparatus, that is going to ramp as we go through the second half, and that will have an impact hereon the margin profile as well. So good start for sure, a little bit better than we thought on a perfect storm, but I do think there's some moderation coming. QuestionVijay Kumar: That's helpful, Matt, and one big picture for Tom. Tom, if you look at the balance sheet, $5 billionplus in the cash in hand. Free cash looks like you're runrating well above $5 billion.

Freight revenue was up 14%, driven by higher fuel surcharges, strong pricing gains, and a positive mix.

QuestionBenjamin Daniel Swinburne: I don't know how much you do want to share with us for competitive reasons, but I'd be curious at least at a high level how you guys decide when to implement a price increase in a certain market at a certain time.

And then, the second question I have relates to the potential future litigation losses. And I know in thein your Q, you give that number, and it seems to be rising inmost quarters. Do you have that number ? What the number may be here in theas of September 30 ? AnswerJohn R. Shrewsberry: No, it will keepthe number will keep being refined until we file the Q, which will happen in a couple of weeks. So, be on the lookout for that, for the latest which will include everything we know up until that date. Long: Got it. AnswerJohn R. Shrewsberry: You bet. Operator Your next question comes from the line of Vivek Juneja with JPMorgan. AnswerJohn R. Shrewsberry: Hi, Vivek. Analyst:Vivek Juneja QuestionVivek Juneja: Hi, John. (00:49:46) Let me just start with a question that either of you could respond to. Can you give some color on this issue ? When it was discovered ? The number of customers ? What's involved ? Where are you on the timeline of all of this ? Allen Parker: Vivek, thank you for the question. I mean, we'retaking a look at what happened. We'retrying to determine the veracity of what was said in The New York Times, and perhaps, most important, we'retrying to determine whether we ought to make any changes at all with regard to the way that we've been conducting ourselves in that arena. QuestionVivek Juneja: You mean, when you say conducting yourselves, as in just the whole process of how it works, account closures, et cetera ? Or something else ? QuestionVivek Juneja: Completely separate question for John. John, you mentioned about the promotional retail deposits. Are you completely stopping it or are you just reducing the rates that you're offering by the amount of rate cuts that we've seen, which is what several other players have done with their higher yield offerings ? AnswerJohn R. Shrewsberry: There'll always be some level of promotional activity. So, we'vethere's some of it in the third quarter. We've eased off on pricing. We've eased off on terms. But just like your firm, there'll always be some amount of it to make sure that we're competitive market by market and to test and learn. QuestionVivek Juneja: One last thing, if I may. You, in the past, have given us loans to nondepositary financials outstanding. Could you give the number what that is this quarter ? AnswerJohn R. Shrewsberry: Let's see. I don't think it's changed much during the course of the quarter. Yeah, I knowwe'll follow up with you on that. But I don't have it handy.

I'm curious if you could sort of walk us through, because it was sort of hard to see from the outside, how much of that was driven by the adjustments you had to make as a business to your selling motion versus sort of just the client side people worried about staying in business, managing cost versus dealing with HCM vendors ? Could you sort of talk through what that looked like, how much of it was each and how that's really changed since March ? AnswerKathleen Anne Winters: Sure.

I won't spend longer (00:09:51) on that right now. And I would certainly call out the confidence we have in our continued growth in UHC, particularly Medicare and Medicaid. But I'm going to reiterate our commercial business is super important to us and we will be continuing to invest and innovate in that business as well. So, we see the future being a growth environment. We're not blind to the risks. We're a very large organization. But the reality is there's a ton of opportunity in this marketplace. QuestionLance Wilkes: That's really helpful. Can you just talk a little bit about maybe some of the types of opportunities that present themselves in the integration ?

So think of it as the real metric is, can we keep our members happy and grow that subscriber base as we did so strongly in Q1 ? QuestionEric J. Sheridan: So maybe sticking with you, Reed, you had a section in the letter about Disney, some of the competition that's coming to the broader landscape. Maybe just help people frame how you see the competitive landscape, how you see those types of products existing alongside or in competition to Netflix, and what your sort of view is of the landscape going forward. AnswerWilmot Reed Hastings: Sure. Well, one part is great competition makes you better, and so we're thrilled to have Apple and Disney, and they're awesome companies; just to be in the same league as them is very exciting for us. And then on a practical basis, there's already so much competition. I mean, we mentioned we only win 2% of downloading on mobile. It's like 98% of the time people are not doing Netflix. On U.S. televisions, it's 90% are not watching Netflix.

With the rise of AI and highperformance computing applications, our advanced packaging business is proving to be yet another unique advantage. We have seen a surge of interest in our advanced packaging from most leading AI chip companies.

These costs include: extra payroll to clean the store and monitor occupancy levels; payroll for some store associates that we kept active to support the business, while stores were temporarily closed; the cost of PP&E; and the fourth quarter appreciation bonus for certain associates. The increase in our costs versus the third quarter included extra payroll as our stores were open longer hours, partially offset by increased government relief due to the European and Canadian store closures.

Well, I don't want to specifically talk about a direct competitor, but what I would say is that strategically, everything that I've mentioned from the history to brand of what we do, where originally benchmarks were used decades ago for (07:06) active management relative performance. That evolution and our history in that to then indices and investable products, that's really, I think where we have traditionally benefited. And if you look at the secular trends, things like ETF AUM and others, we want that upside. We want to be able to participate in the economics that are more affiliated with intellectual property and products. So again, you're right, our mix is different than others.

AnswerDavid A. Zinsner: No. I mean, I think it's really customer to customer specific. And, obviously, the timing around those are moving around a little bit for sure, given the COVID situation and the economy. Another kind of broadbased demand question and we'll dig into some of the market segment stuff for NAND and DRAM. But smartphones, China smartphones in particular, those are expected to see some more improvement heading into the second half.

AnswerSundar Pichai: Thanks, Doug. As I said to the company, I think it's a good time to sharpen our focus. Personally, I find moments like these clarifying. So, it's a constrained optimization problem. But our focus on the longterm areas, be it AI, be it Cloud and other critical areas, will continue. AnswerRuth M. Porat: In terms of your second question, I am going to leave the modeling to you.

AnswerChristopher J. Kempczinski: Sure, and thanks for having us here. Well, our strategy, Accelerating the Arches, came from a few different insights that we had. Before we had Accelerating the Arches, some of the observers of McDonald's may remember we had a plan called the Velocity Growth Plan. And Velocity Growth Plan was focused on winning back the customers that we had lost to, frankly, our closein competitors. We needed to modernize the estate in the US which had gotten very tiredlooking. And then we entered into COVID, and I would tell you that when I first came into this job, my thinking was very much just continue with the Velocity Growth Plan. But COVID, for us as it did for everybody else, gave us just a moment to step back and say, all right, does this new world that we'reliving in and will emerge from, does that still make sense ? Does the strategy still make sense ?

AnswerDanny Shapiro: We're very active in that with standards bodies, with SAE, with others that we'refocused on, ISO 26262. The key thing here has been engagement that we have with the industry, with our partners. We'reworking with NHTSA. We'reworking with federal highway safety boards and the DoT. And soand then also in the other parts of the world we'reactive. I think it's less about logging miles and the disengagements, but more about being able to look at scenarios. And so what we'retrying to do is come up with essentially an autonomous vehicle driver's license. The vehicle has to pass all these different tests and all these different scenarios and you can run these exhaustively in simulation. And that prevents the AV system from really actually being put through its paces and test what the (00:31:28) AV system actually prevent this accident or not. And so again, in simulation we can let it all play out. And if something happens in sim, we just restart the simulation and we update the software it's learned from that. We don't have that luxury in the real world if something bad happens. QuestionRajvindra S. Gill: So just shifting to the technology discussion. We have about 9 or 10 minutes. So you have migrated your DRIVE platform to your new Ampere architecture, the 7 nanometer, and for all your upcoming kind of Orin chips. What was the thinking behind that and is it to really provide this kind of endtoend single architecture, everything is on 7 nanometer now ? And I'm just curious if you could elaborate further on the migration to the Ampere architecture. Well, again, as a company, we're constantly innovating, constantly moving forward, right, and that's just the nature of the computing industry. We're always pushing and developing and innovating. Having this single architecture is key, though. We have this continuous flow. And so starting with our early DRIVE PX and PX2 systems, people are developing software, they could migrate then to our current architecture and then moving forward to Orin. So Orin will start sampling next year. They're all developing today. And so, it was a natural move of course to shift to Orin and Ampere. And again, there's huge performance gains much more so than we've ever seen before in the past in the compute industry. QuestionRajvindra S. Gill: So you talked about kind of 4x the performance and power efficiency over your Xavier solutions. Is it primarily on the process node migration ? Is it more on the algorithm side ?

They are part of NVIDIA's RAPIDS opensource Python data science kit. RAPIDS has been downloaded 0.5 million times this year, over four times more than last year. cuNumeric is built on Legion, which schedules tasks across CPU, GPU, and DPU computing units, across the data center in very similar ways as a modern CPU schedules instructions across its ALUs and low store units. Like modern outoforder execution CPUs that automatically extracts instruction level parallelism and dynamically reordered the execution, Legion extracts tasklevel parallelism and dynamically reorders and dispatches the execution of these tasks often out of order across the entire data center. Legion is a data center scale compute engine and cuNumeric is a data center scale math library. NumPy was downloaded 122 million times in the last five years. NumPy is used by nearly 800, 000 projects on GitHub. Developers are going to be thrilled with cuNumeric. The scalability of cuNumeric is excellent. On the famous CFD Python teaching code, cuNumeric scales to 1, 000 GPUs with only a 20% loss from perfect scaling efficiency. ReOpt, cuQuantum, cuNumeric, three fantastic new libraries. Let me show you the road map of my talk. A constant theme you'll see how Omniverse is used to simulate digital twins of warehouses and plants and factories, of physical and biological systems, the 5G edge, robotics, selfdriving cars, and even avatars. Data center scale computing, MillionX science, Omniverse, AI, avatars, robotics and selfdriving cars, we have a jampacked GTC. Before we jump into data centers, I want to show you something we've been building, a conversational AI, Toy Me. Toy Me was made with some amazing technologies that have become possible only recently and barely so. I asked a few friends to ask this cute little guy some tough questions.

Couple of questions. There's been a number of papers out on the importance of Treg depletion and ADCC with parts of the CTLA4 mechanism, and I know you have your afucosylated molecule in a fairly large trial. Obviously, you've been invested historically in that space. Is this a catalyst for Bristol to reenter that segment ?