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Let me give you an example of a company that in my view does this pretty well. You might have heard of Delivery Hero. If you have not, I'm sure you have heard of foodpanda. I got my coffee from foodpanda every morning. Delivery Hero started in 2011 as a food delivery startup. Now, they are a global leader in food delivery in 40over countries. Delivery Hero is very localized in the way they do their business in each country. The secret sauce to Delivery Hero's success is partly with the obsessions, their absolute obsessions with customer experience and continuous process improvement. They have this ability to identify correlation between process metrics and customer metrics, process metrics such as shopping cart abandonment rate, order cancellation rate, and customer metrics such as Net Promoter Score, thereby ensuring every business process improvements leads to a direct and positive impact on their bottom line. Sanjoy Bose A lot of businesses are making investments across people, process, and technology, but not getting the returns they had expected. Khor Chern Chuen Many companies tend to underestimate the pace of change. So in order to futureproof the organization, you need to stay nimble and be able to keep transforming. Let me give an example.

We're seeing real opportunity for the CPU as that workload balances over time between CPU and accelerator.

Analyst:George Hill QuestionGeorge Hill: Yeah. Good morning, guys and thanks for taking the call and welcome to public markets. I guess Kyle, I would ask you as we think about the HCS segment, can you talk a little bit about how the company works with payer organizations to shift the home evaluation volumes I guess to the home from the docs office or another location where you guys can clearly collect more data. And I guess kind of how do youcan you talk about what you guys can do to move that evaluation process kind of away from the annual wellness visit and into a location where you guys can collect more data and add more value ?

AnswerAnthony F. O'Brien: That's correct. And just as a reminder, those cash recoveries are pretty flat this year out into the next two or three years, right around $1.9 billion. QuestionCarter Copeland: Okay, great.

Thanks, Mike. The next question will come from Ken Usdin of Jefferies. Analyst:Ken Usdin QuestionKen Usdin: Thanks. Mike, you had mentioned that, well, you did a little bit better last year, $4 billion of gross saves versus what you originally thought at $3.6 billion. And you just commented that you still have a good line of sight as far as efficiency initiatives. Can you help us understand, Mike, $3.3 billion for this year, how you're feeling about that ? But more importantly, that line of sight, how far outdo you have that ? And do you continue to see an ability to take out this type of cost as you go forward even past this year ?

We think we're going to see more and more discussion around sustained remote secure access, sustained need for SDWAN, so we acquired CloudGenix, which is going to get integratedfirst integration in the next few months with Prisma Access and then subsequently by the end of the year.

For Workforce Now, we continue to build momentum by leveraging our Next Gen Payroll engine and as we discussed earlier this year, we are live with hundreds of clients who have been very pleased with the solution and continue to rate their experience very highly. In addition, we launched anew workforce management solution that along with our Next Gen Payroll engine enables realtime punch to net payroll calculations, all delivered from the public cloud. And based on feedback from our clients and sales associates, we believe a significant portion of the hundreds of sold Next Gen Payroll clients were incremental to what we would have sold without Next Gen, which of course has positive implications for market share and competitiveness in the midmarket as long as we continue to execute.

They're helping us extend the reach of Visa Direct as we utilize them as part of our networkofnetworks strategies. I think RTPs represent an opportunity for us to sell valueadded services and I still think the advantages of and the And if you look at Pix in Brazil, you look at UPI in India, these things developed and were put in the marketplace and we're seeing a fair amount ofand hearing a lot from clients in terms of fraud associated with these networks. And in many ways, that makes sense. So, Ryan, what would you add or delete ? AnswerRyan McInerney: Not a lotto add to that, Al.

So I would attribute this to be more our own product cycles.

With that as background, can you tell us a little bit about how Q2 is shaping up in your business line ?

Our capital allocation priorities remain unchanged. First, we will continue to prioritize investments in our business and pipeline to drive near and longterm growth.

Of course, the Chemicals and Downstream business is doing the same thing and looking for additional efficiencies to shape that portfolio. We're also looking at options to pace and to move projects around and out if we can do that without compromising the longterm value that we built those projects on, the basis that we built those projects on.

Improve your core growth, drive margin expansion, generate free cash flow, deploy that free cash flow consistently with a bias towards acquisitions, and ensure that we continue to deliver top quartile EPS growth and compounding returns. So, DBS and the Danaher Playbook are one really important lever in terms of how we create value at Danaher.

It's a real productivity move. We're pursuing it. Of course, it's got to be negotiated. QuestionBrian P. Ossenbeck: Thank you, Eric and Lance.

And we have 18 practices, supporting IBM technology. So we draw a lot from being able to bring IBM technology to market. But equally, we lead the charge within IBM in helping Arvind, for IBM to be open.

AnswerEwout L. Steenbergen: Yeah, I think the components is a bit tricky to give you all the details because we have never been speaking so much about that so far. But let me help you with a couple of pieces of information that is hopefully useful for you. Therefore, seeing more active users and therefore we see that going up, as we reported this quarter, 11%, but this has been more or less in the lowdoubledigit for the last multiple quarters. The other point that I would like to highlight is our aspirational margin guidance for Market Intelligence. We have said that is midto high30s. So that is the guidance that we want to provide overtime where we think the margins will go for Market Intelligence. QuestionMichael Y. Cho: Perfect.

Rice:...and talk about where some of the investments are ? AnswerRajeev Ronanki: Yeah. Thanks, A.J., and, John, thanks for that for the context there. So digital, I think when we sort of say that word, people tend to typically associate that with apps or things of that nature. At Anthem, really it's a much broader definition. So every process could essentially be digitized through the application of this technology. But we don't only just do it for the sake of efficiency. Except to do that, clearly, the Web mobile, voice, those kinds of assets have to be excellent, and we'reinvesting in that. But then everything sort of under the coverage, things like claims processing, utilization management, care management, program integrity, customer service, all of these key processes have to be oriented towards serving our stakeholders and serving them seamlessly. Soto do that, that's where a lot of the investments are happening, where we'reapplying artificial intelligence. We'removing things to blockchain. We'reusing other sort of predictive technologies to make these processes much more responsive. So the examples of that are, like, if I take customer service, for example, we can predict when an issue might happen and resulting in a call from a provider's office or a member asking about something.

AnswerStephen M. Scherr: Sure, sure. No problem. So, let me just go through the breakdown in equity. So, of the $1.4 billion in revenue, our public portfolio generated $781 million in revenue and the private part of the equity portfolio generated $642 million. Now, importantly, when you look at the private portfolio, $284 million of that $642 million was generated on events, so that's sales, monetizations, IPOs and the like; and $52 million, only $52 million was nonevent driven, that is looking at the baseline performance of the underlying company and making a judgment about where value is appropriately pegged. And so, event being the dominant component of the private portfolio. The balance, I should point out, of $306 million, relates to CIEs. As it relates to the public portfolio, we observe the market no differently than you do. Obviously, there's a certain component of that public portfolio that remains restricted, a decent amount of it remains unrestricted, and we will look for opportunities, as we have been, to monetize those stakes. By the way, I say that not just simply in the context of an attractive market valuation in which to sell, but equally in the context of the kind of broader strategic mission we've been on, which is to lower the balance sheet intensity and capital intensity of that as we shift to more thirdparty investing itself. And so, that gives you a bit of the lay of the land as to the two components to your question. QuestionGlenn Schorr: Thanks so much. Appreciate it. AnswerStephen M. Scherr: Sure. Operator (00:37:39) comes from the line of Christian Bolu with Autonomous. Please go ahead. Analyst:Christian Bolu QuestionChristian Bolu: Good morning, David and Stephen. Maybe sticking with the trading question, Stephen, you gave some pretty interesting color on why you think trading revenues could be sustainable into 2021. Can you expand on those a bit ? I'm particularly interested in your point around LIBOR transition. Could you just give us more detail there and sort of why you think Goldman is wellplaced to capitalize ? So why don't I start with trading ? I think at the core, our view on sustainability is not with a crystal ball and a forward forecast as to what the opportunity set will be. And this was a very concerted effort on the part of the leadership of that business to go at finding ourselves, moving up the ladder in the top 1, 000 clients that matter to the trading division. So, the sustainability of our performance for me is rooted more in the fact that we've picked up share gains. We were therefor clients particularly during the most volatile moments of the second quarter across all asset classes without withdrawing. And I think it sets us up to capture whatever the opportunity set is on the forward. My comments in the prepared remarks is that as I look forward to the fourth quarter, we can count on any number of issues to be the source of some volatility, whether that's US election, LIBOR transition, the trajectory of COVID, anyone of those. And I think that's part of the color I'd give you both in terms of what's sustainable and equally why we feel confident that we've put our financial resources in a proper frame to sort of play on the volatility itself. Just lastly on your question about LIBOR transition, we've had a dedicated team, I mean people who are 100% dedicated to this effort from the beginning. We've put ourselves in a position where we've done issuance. We have prepared ourselves in terms of counterparty contracts and the like. And I think we're very wellprepared. Obviously, we don't skew in ways in which commercial banks do with LIBORbased elements in mortgages and the like. But in the scope of what is our business, we feel quite wellprepared for that onset. QuestionChristian Bolu: Great. Thank you. Maybe switching to acquisitions againmaybe, David, this one is for yougiven the frenzy at Morgan Stanley on deals, just curious how you'rethinking about M&A, maybe what businesses or initiatives would benefit from an acquisition. And then, if you can just touch on how you think your relative currency and sort of capital position places you to do a transformative deal. AnswerDavid Michael Solomon: So, Christian, I appreciate the question. And of course, we laid out a mediumterm plan with a set of goals. And you and others continue to ask us about this. We're on a journey to continue to strengthen our returns and broaden our business to create a more diverse business with more sustainable revenues overtime. And this includes our two more traditional platforms that everybody's always focused on, Investment Banking and Global Markets, which really, for lack of a better term, is a corporate investment bank. We have a big Asset Management platform, which is global, broad, deep, multiproduct, allover the world and we think there are opportunities to continue to grow that organically for sure. But, certainly, we consider inorganic opportunities to grow that if we thought that they were enhancing. And then, we obviously are building a broader Consumer / Wealth platform to serve individuals, and we certainly think there can be opportunities to accelerate the growth of that. In fact, last year, we made an acquisition in United Capital that we think accelerated our expansion into high net worth wealth in a meaningful way. And we've now been integrating that quite successfully. So we continue to look broadly at things that can extend our strategy and accelerate the pace. It's clear, if you look at the actions of others, that the market has been tolerant of tangible book value dilution in the context of something they think is on strategy and advances the trajectory of the business. So we'll continue to look and see if there are opportunities. But other than that, it would be hard for me to say anything more at this point. QuestionChristian Bolu: Okay. That's helpful. Thank you, David.

Because I believe one thing that either yourself or Jensen had said is that you expect some kind of acceleration in your Data Center business, so how much of that is predicated on the growth among your first, how much is Enterprise as part of your overall Data Center business and then how much of the second half growth is predicated on Enterprise recovery ?

Thanks again, guys. Operator And we do have a question from the line of Rod Bourgeois with DeepDive Equity Research. Please go ahead. Analyst:Rod Bourgeois QuestionRod Bourgeois: Hey, guys. Congrats on the results and the color that you're providing here. Hey, I just have one question. I'd likeif you could comment on your newer offerings. It'd be helpful to know which of your newer offerings are showing the most uptick against this growth wave. If you could weigh the relative amount of lift that you're getting from offerings like Industry X, Cloud, automation, etcetera. Is there a certain newer offering that's getting more uptick than the others or is itagain, I mean, maybe it can go beyond the everything is good comment and give a little more color on the specific offerings ?

I mean the category opportunities are still there. We had a terrific appliance business last quarter. We've seen that for several years now. Just remember, roughly 75, 000 appliances break a day in this country; so there's a replacement element of that business as well as the innovation has driven an upgrade element of the appliance business. When it comes to kitchen and flooring, and I mean Ted called out on our earnings call that we might have gotten a little too enamored with some of the innovation side of the flooring business. We've had a very good run in flooring and innovation. We probably have some opportunity to tweak our assortments across the line structure. AnswerCraig A. Menear: But we see demand still in those categories, absolutely. One of the things about entrants in those categories especially if there's like a entrantspecific category like a floor and decor. It's almost like they'rerunning the old category killer play that was run versus a Walmart or a Target which as you could expand sort of just a little bit broader. Now, the answer I think to that is that your online assortment is far better, the total solution you can provide is far better, but because it's still experiential for a lot of folks when they'redoing that, is that why that business functions and exists ? Is it essentially just like a category killerkiller move ? And not even a killer but a category killer annoyer move where they just take it slightly large there ? Is that what you think it is that makes that workable ? That's why independents exists as well, right ? If I think back over our 40year history, Home Depot, other than in the beginning, when it got more to a broader approach in the business, we've been outspaced and outassorted by virtually almost every competitor that we go up against.

Patrick P. Gelsinger Thank you, John, and good afternoon, everyone. Our strong second quarter results exceeded expectations on both the top and bottom line, demonstrating continued financial improvement and confirmation of our strategy in the marketplace.

And when you do that, it alsoyou do need some degree of scale to do that. And so that means we won't be as large as we were historically. I mean that's justthose days are gone in terms of the right way to think about it inside our company.

Now onto industry solutions. We now have six industry clouds and they're driving significant increases in usage across the Microsoft Cloud. Our Cloud for Retail was front and center at NRF, and retailers from Ahold Delhaize and GNC are sharing how they'reusing our solutions to deliver seamless customer experiences. Our Cloud for Sustainability unifies data to help customers record, report and reduce their carbon emissions. Industry leaders, including Nissan Motor, are turning to the offering to help meet sustainability goals.

Any update on that ? And then, secondly, on the MAPCs numbers, anyway to think about what should happen to MAPC growth going into the next quarter ? I think that sequential decline I think was a lot of Omicron hit. So, are you back to a point where it's reasonable to expect MAPCs to grow through the balance of the year ?

Analyst:Matthew Taylor QuestionMatthew Taylor: Hi. Thank you for taking the questions, guys. Just had two quick ones. One is on the supply chain assumptions.

AnswerArvind Krishna: So, Jim, I've got tongue in cheek. So, when we announced last October, we said there are five tenets that are really important. We believe that the world of cloud is going to be hybrid, is going to be multicloud, it's going to be open, it's going to be secure, and it has to be managed. So, I guess that tells us the supply and demand. So, I'd say, that's the second form. I think then, if I look down and I say is Linux Containers and Kubernetes, which is the architecture on which we're going to give these five capabilities. And then I'd say, we saw one announcement a couple of weeks ago, we saw another announcement in February and March, we heard a third announcement last December, I'd say that the world seems to agree that this is the right thesis. The world seems to agree that this is not just a thesis, but this is the architecture. And then, you go down to, now we've got to all deliver and, I think, the best engineered products are going to go win, and I'm confident that we are going to have the best engineered products here, because I wish we could say that we could stay in a vacuum with the right architecture, but in the end, if there is demand, there is going to be others following because, I guess, that's where the money is. QuestionJim Suva: And, Arvind, earlier Ashwin asked you about keeping Red Hat independent versus fully integrating and absorbing it and things, and you gave a very nice response to that. But also, your background has been nearly four decades at IBM, lots of research, lots of innovations, lots of changes. How should we think about while keeping independent, how are the teams interacting, the teams interacting between, say, Red Hat and IBM core ?

Analyst:Ambrish Srivastava QuestionAmbrish Srivastava: Hi, thank you very much. Prashanth, I had a question for you ona couple of quick ones, OpEx trajectory, how should we be thinking about it ? AnswerPrashanth Mahendra Rajah: So for OpEx, we are in our sixth quarter of consecutive improvement in OpEx. Some of that is clearly actively managing the spend levels down, but some of it is also the result of this COVID situation where travel is at a freeze. I think it's reasonable to expect that as businesses reopen and customer expectations start to change and we need to get back in front of folks that some of that is going to climb, and as well as some other discretionary spend will come back in. So I wouldn't run this level of OpEx out too long, but I think you've seen that we have been incredibly diligent with managing our OpEx over the last year and a half. And that's a muscle that ADI has built, and we're not going to let that go. The first call is to invest in the business, whether that is organic or inorganic, and then after that it's really 100% return of free cash flow after debt repayments. So the plan for 2020, we increase the dividend by 15%. We're still intending to reduce debt by $300 million to $500 million in this fiscal year, and then everything after that goes back to shareholders either through dividend or share repo. So I would expect that if the business holds out that we would be reactivating the share repo in the coming quarters. QuestionAmbrish Srivastava: Okay, thank you. AnswerMichael C. Lucarelli: Thanks, Ambrish. Go to our next caller, please. Our next question comes from Ross Seymore from Deutsche Bank. Analyst:Ross Seymore QuestionRoss Seymore: Hi, guys. Congrats on the strong results in challenging times. You said it would be down sharply, so just a couple questions on that. Do you mean sequentially, year over year, or both ? And given the timing of when the auto factories have been shut down and then are turning back on, how are you viewing the shape of that recovery ? AnswerVincent T. Roche: Thanks for the question, Ross. So I think first and foremost, we expect sequential and annual declines. It is extremely hard to read the automotive sector right now. I think the bigger question is what is going to happen with demand. And I think the way we view it is that we don't understand the pace of reopenings right now and to what level of utilization or capacity will they operate. So I would say we think it will be tough going for the remainder of this year in automotive. So the area that we feel kind of most conviction around in terms of demand will be for electric vehicles, where our portfolio is making very strong headway, which was originally centered really in China, into Europe, and of course America as well. So very, very hard to read, I would say, but my sense is that the remainder of this year will be tough and we start to see a pretty paltry bottom I think, some recovery in the first half of 2021. AnswerPrashanth Mahendra Rajah: And, Ross, I would say that is reflected in our guide. We are relatively bearish on Automotive in our guide.

I think their commitment to what's been a really challenging year of transition is exemplified by the market performance that I just articulated. What I would tell you that I think people are excited about is everybody believes that this next step is going to allow us to spread their wings a little bit, do the things that they really want to do.

AnswerJohn Murphy: Sure, Kaumil. Yeah, as you know, we manage our funding through with an eye towards liquidity risk and with a multiyear lens and have done that for many years. Through COVID, I think we talked about we pushed our age of our debt out a number of years and we do have a mix of fixed and floating. Most of the floating is in euro, and so we will wait and see what the ECB does over the coming months to have a clearer picture on the impact for 2023. But I think it's an area that we'll provide more detail on in February, subject to the developments by the Fed here and by ECB over the coming months. Operator Our next question comes from Bonnie Herzog from Goldman Sachs.

Inc. All Rights Reserved. AnswerSteven M. Mollenkopf: I don't have a position either way. I always use that data point just to show how serious some of these industrial players or retail people are in terms of controlling their network. And it's a real dislocation, I think, between the traditional cellular feature set and this greenfield opportunity of the private network. And you are seeing them participate in some spectrum auction. Analyst:Rod Hall QuestionRod Hall: Other questions from the audience ?

Congrats. Happy holidays. AnswerKenneth R. Possenriede: You too, David. QuestionDavid Strauss: Aerojet's GBSD role, can you talk about or maybe quantify what that could look likewhat that looks like today and what that could look like, I guess, over the near term and long term ? I mean how much have you reached out already, done your due diligence with regard to the customer and how they feel about this deal ?

These improvements were partially offset by the Medicaid business which carries a higher benefit expense ratio than our commercial and Medicare health plans.

We delivered exceptional performance in FICC and Equities on high levels of client activity, deploying our risk intermediation expertise and our balance sheet on behalf of clients in a volatile market.

AnswerDavid M. Reese: It's a great question, Mike. And we are seeing clear monotherapy activity in colorectal cancer. I think that's indisputable. And in fact, overall survival is often six months only in this population. So, tome, the jury's still out on monotherapy utility of sotorasib in colorectal cancer. We've fully enrolled a Phase 2 trial and that'll be reading out later this year, early next year. And I think that will guide our thinking about potentially pursuing a monotherapy indication or pursuing combination therapy in colorectal cancer. QuestionMichael J. Yee: Because as soon as you get the monotherapy data from 40, 50, 60I'm just going to take a guess because I know you didn't state the numbersyou're going to have combo data. AnswerDavid M. Reese: Yeah. I think that's exactly right. QuestionMichael J. Yee: Before I ask a question aboutshift gears quickly to lung cancer, in colorectal, just from an expectation standpoint, it is fair to have investors appreciate it is a smaller part of the colorectal cancer, so obviously it's very important to get treatments for colorectal. This is for about 2% to 3% of colorectal patients... AnswerDavid M. Reese: Yeah. It's depending on the study that you look at. It's anywhere from 2% to 4% of colorectal cancers will carry the G12C mutation specifically. QuestionMichael J. Yee: Right. So, it is a smaller sub segment for those... AnswerDavid M. Reese: Absolutely. QuestionMichael J. Yee: Okay. And then in lung cancer, we'll get this data potentially pivotal Phase 2b, I think, you said you'll miss ESMO for that, but you'll have an announcement whether that's a top line press release because of the importance or at a medical meeting to whatever degree.

So we are going to focus on having hundreds of millions of people use the metaverse and the new platforms that we'rebuilding before we really turn this into what I expect to be a very important and big part of the business. So being able to basically have your digital goods and your inventory and bring them from place to place and that's going to be a big investment that people make.

It may be difficult to comment at the moment, not knowing how they're going to price it, although commentary from the company seems to be that they'll price it similar to injectable for GLP1. Do you see it as more of a competitor to injectable or the oral products that are out there ? AnswerEnrique A. Conterno: That's really a positioning question for Novo Nordisk, and it's going to determine on how they price the product and where do they place the product on the continuum of diabetes care. Clearly, we think about what is it that they're likely to do, right, andbut it's a question for Novo to think about. I consider Jardiance to be the strongest productoral product out there. And we basically have Trulicity, the leading injectable now when it comes to GLP one in terms of new patient starts and overall prescription share. So, we will look at it from both ends. It's an oral product, and they do have atrial against Jardiance. But in that trial against Jardiance, they showed that 11% of discontinuation was due to adverse events. This is in a clinical trial.

AnswerErnie L. Herrman: Welcome. Our next question comes from Michael Binetti. Analyst:Michael Binetti QuestionMichael Binetti: Hey, guys. Congrats on a great quarter and thanks for all the detail here. I guess what I'm trying to figure out is you have the comps accelerating to 4% to 5% in the back half, and you have obviously a ton of great merchandise, but help us connect the dots on how having great supply is enough evidence for you that demand will remain strong or strengthen to the trends you saw. And then, Ernie, you said you feel really good about the longterm opportunity to take share here. (00:40:02) What do you see today to know that this isn't just department stores or specialty retailers having overordered at a moment in time during holiday or for spring, and with sometime left for fall or holiday, they can start to trim their orders and we're back to a situation where there'snot as much inventory more quickly than you thought ? AnswerErnie L. Herrman: Well, okay. So, let'stake your first question, which I thinkI'll let Scott actually talk. Scott, you want to talk about that ? Just fromagain, I'll let Ernie answerwell, from (00:40:42) long term, we can keep it up. AnswerScott Goldenberg: From awhen you look at the first half of this year, as I called out, we're going against a total US stack of 19% and have reflected close to that between the two quarters obviously, a zero to slightly less comp, so a twoyear stack of 19%. And again, I'll let Ernie speak to the opportunity. AnswerErnie L. Herrman: Well, if I could jump in onso, Michael, so what that's saying is we're not actuallywe're assuming that we're just doing the same things we'redoing now, and we would trend right at 4% to 5%, at least based on the current trend. AnswerScott Goldenberg: The other thing, again, that we've said, and maybe we could have been clearer on the script and in the press release is that, when we started the year, we gave guidance before the invasion that happened in Ukraine. But we haven't said an improvement to that trend, but just that same trend, as Ernie just indicated, over the rest of the year. And I thinkI'll let Ernie speak to the inventory. And I think we always believe that we can flex into the categories for the back half of the year, take advantage of what we'recurrently seeing, right ? So, Michael, so we'rein a great position for opentobuy for the back half. To your question, though, which I think I know what you're getting at, is what would make us think that this isn't just short term in terms of the duration, I think you'reusing that word, in terms of the duration of this trend and how could we keep it going. But really, we'reusing past trends over multiyears. Where we're trending now on three stack, we analyze that. And by the way, our buying here's one thing that's really happened during COVID, and I think I've talked about this, is we were able to learn a lot of things. And for our merchants which are very well connected during COVID, one advantage they've learned is how to communicate faster, whether virtually or with the technology. But I think that really answers it. QuestionMichael Binetti: That's really helpful, guys. Thanks so much. Our next question comes from Omar Saad. Analyst:Omar Saad QuestionOmar Saad: Thanks for taking my question. Couple little followups. Did I hear you guys say somewhere in the prepared remarks that you think the expense headwinds are moderating going forward ? I just wanted to kind of clarify what you meant by that (00:45:22) comment. And do you mean from here or do you mean at some point in the future ? And then it sounds like Europe was probably kind of the biggest kind of demand drag. Europe and the Ukraine war, rather, were the biggest demand drag in the quarter. Did the cold, wet spring, was that also a factor in your business in the quarter ?

We believe that, too. So for us, Cortex is pretty simple. Collect all that data, cross correlate that data and analyze it and once you've done analyzing it, figure out how you can remediate that on the fly. But our desire is for an autonomous SOC, not unlike Mr. Musk's desire for autonomous car. An autonomous SOC is a SOC that selfheals and solves your problems.

As I take a step back and look at what's going on this year and we compare it to maybe the $10 billion of domestic China spend in WFE last year, what I would say is is that you're seeing meaningful spend across all three device types: FoundryLogic, DRAM, NAND. AnswerGary E. Dickerson: Yeah, John, on the other part of your question about when do those investments happen from a regional perspective, there's no question. I'm involved in a number of different discussions. There's tremendous pull across many different regions: US, Europe, Asia, and what I would say is that certainly it's important from a supply chain continuity to have more regional capacity. I think that's a big area of focus. But personally, I think even more important is having not just physical infrastructure or manufacturing infrastructure, but innovation infrastructure. Also, certainly for Applied, the United States and many governments, having those foundational technology puzzle pieces for innovation to win this PPACt race of the future is incredibly important. And certainly Applied is in a position where we're going to continue to invest on top of what we've already done in the United States with the Maydan Technology Center in Silicon Valley, the META Center in New York, but this is the race of our lifetimes, and this innovation infrastructure, I think, is another key aspect of what needs to happen to win the future.

Information about any non GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can also be found in our SEC filings, in the earnings release and in the quarterly supplement available on our website.

I'll just start off with just a highlevel question. When you look at your bookings growth rate in Q1 and you think about how you're performing versus other companies, it seems like it's a bit of a difference your guidance versus other people in the travel industry. So, how do you kind of reconcile that ?

And then if I can ask a second question. Just on slide 15, where you go through the C&I loans by bucket, can you talk a little bit about the financials except banks portfolio ? I know you've discussed it in the past. AnswerJohn R. Shrewsberry: Yeah. So the buckets of activity there, there's the CLOrelated activity, so credit managers, there's subscription finance where we're providing leverage to alternative asset managers against the commitments of their limited partners to fund when called. There's leasing. There's auto. There's card. There's mortgage. There's commercial mortgage, et cetera. I'm sure we'll see a little bit more stress in the system. And so we're managing them in that way. On the CLO front, which is a big distinguishing portfolio for Wells Fargo, in addition to what's here, there's a little bit of overlap but also in our securities portfolio, we have 30ishbilliondollars' worth of CLO exposure disproportionately top of the capital structure, AAA, AA that can withstand an extraordinary, almost a complete level of cumulative defaults with varying levels of loss given default. And we're still very comfortable with that, and 80% of that portfolio is externally rated AAA, which I think is a plus. So there haven't been meaningful signs stress here. We will talk about it if it becomes so. QuestionR. Scott Siefers: Okay. That's perfect. I appreciate all the color. So thank you for taking the questions. AnswerJohn R. Shrewsberry: Yeah, you bet. Operator Your next question comes from the line of Saul Martinez of UBS. AnswerJohn R. Shrewsberry: Hi Saul. How are you, guys ? Wanted to tackle a couple of things really quickly. First the interplay of credit in CECL. So you trued up, you ticked up your reserves, obviously, and your ACL (01:08:37) ratio is roughly about 120 basis points. And this is probably oversimplifying it. But one way to think about that ratio under CECL is it's an estimate of what you think you're going to lose on the entirety of your loan book over the life of the loan at any given point in time. And that number is lower than what it is for any other large bank even as of January 1. I think it's a good question and I think loan mix has a lot to do with it. The question about marked loans historically would have been true, but with the adoption of CECL, most of those marks had to be reversed, which was the source of a portion of our day one adoption negative number. So we don't have that to rely on, although we used to. Our credit card portfolio, which under most conditions, we wish was a bigger capability for Wells Fargo at times like this is a little bit of a saving grace because the expected loss content both in what's outstanding as well as what might be expected to come through from undrawn is more manageable in the size of our balance sheet. It's still, as you'd expect, And so as you rundown different categories of C&I or commercial real estate or the various consumer categories, credit card's the highest, and first lien mortgage is the lowest. And there we have the biggest weight on mortgage and probably the lowest weight on card. QuestionSaul Martinez: Okay. And I presume in your Form 10Q and in your Y9Cs you'll be giving loan loss allowance by lending category, so we can compare you to your peers by segment, right ? QuestionSaul Martinez: And just one final one. Do you have a sense or have you disclosed how much you've actually reserved ? Or would you disclose or have a sense for how much you've actually reserved for oil and gas and entertainment and all of the higher risk sectors on, I think, slide 28 to 30, just to get a sense of where you stand in terms of reserve levels in those categories ? AnswerJohn R. Shrewsberry: We haven't yet because most of that is still apart of this qualitative topup of the reserve, which is how the big build for this quarter went down. It will get there. So we will start to provide more information. I'm not sure if it will be in the Form 10Q but certainly as the cycle unfolds and these things actually start to appear in the calculatedgraded reserve for C&I categories in particular. Scott Siefers: Got it.

QuestionChristopher Brett Danely: Yeah, just a longerterm question on the Embedded Processing business. So, if we look at the last couple years, it has materially undergrown the overall business and we're still running at, I think it's about 10% lower margins than the corporate average. So, where are you guys thinking about ? What should we be thinking about sort of the longterm goals or aspirations for the Embedded business ? Justin terms of relative revenue growth or profits, do we expect it to improve or not improve ? AnswerRafael R. Lizardi: Yeah, I'll give you a few comments on that. As long as Embedded contributes to free cash flow growth, that's the measuring stick. Obviously, the top line has gone through some challenges here that Dave talked about earlier, but longer term, with our focus on auto and industrial, in all of our businesses, but that includes Embedded, we feel confident that that business will grow longer term.

And when you think about the relative -- the key drivers for that, we've talked about 5 drivers, new chip architectures, new materials, new structures, new ways to shrink, and new ways to connect chips together.

There's complementary (45:52) products, and it's bringing us terrific high growth and increasing levels of profitability. And that'll be sustainable given the recurring revenue that we have. So hopefully, that answers your question, Rick. Operator Our next question comes from Joshua Jennings from Cowen. Joshua, your line is open. Analyst:Joshua Jennings QuestionJoshua Jennings: Hi.

And then my followup, can you just confirm the materials and freight impact in the quarter ? And just at a high level, as we think about next year based on current commodity spot pricing, any visibility you might have in supplier costs ?

So, Bryan, what are you doing that makes Home Lending Pal so effective compared to other folks in this industry ? AnswerBryan Young: Removing the pressures. We are giving people a safe space to explore and really understand four critical variables: one, your likelihood for success; two, doing some financial modeling and forecasting for your expected time to close; three, we are removing human biases to give you your best loan product; and then, four, we're bringing the best lender for you to work with based on our ecosystem of lenders that have joined the network so far.

I don't think any CFO would have ever been criticized for having a lot of liquidity on their balance sheet and that's what people went after. They needed the funds. I think that this is something we're going to continue to see throughout the pandemic. Nobody is going to be criticized for having a lot of liquidity. But we do think that this willthis strong issuance is right now on the horizon based on the pipeline we see, M&A, et cetera. It looks like at least for awhile this is going to stay. QuestionManav Patnaik: Got it.

Michael Morris Analyst at Guggenheim Thank you. Jenn Kettnich Vice President, Investor Relations at Walt Disney Thanks, Mike, for the question. Operator, I think we have time for one more question. Operator This question comes from Jason Bazinet with Citi. Jason Bazinet Analyst at Smith Barney Citigroup I just had one longterm question. The one area where I think Disney has sort of struggled a little bit has been with software development. Is that sort of top of mind or do you think that's sort of not a correct way to think about sort of the muscles that you guys need to build over the next five years ?

This is Jeff Su, TSMC's Deputy Director of Investor Relations and your host for today. Today's event is webcast live through TSMC's website at www.tsmc.com. If you are joining us through the conference call, your dialin lines are in listenonly mode. As this conference is being viewed by investors around the world, we will conduct this event in English only. The format for today's event will be as follows: First, TSMC's Vice President and CFO, Mr. Wendell Huang, will summarize our operations in the fourth quarter of 2019 and the full year of 2019, followed by our guidance for the first quarter of 2020. Afterwards, Mr. Huang and TSMC's CEO, Dr. C.C. Wei, will jointly provide the company's key messages. Then, TSMC's Chairman, Dr. Mark Liu, will host the Q&A session where all three executives will entertain your questions. For those participants on the call, if you do not yet have a copy of the press release, you may download it from TSMC's website at www.tsmc.com. So, please refer to the Safe Harbor notice that appears on our press release. And now, I would like to turn the microphone over to TSMC's CFO, Mr. Wendell Huang, for the summary of operations and the current quarter guidance. Renzhao Huang Thank you, Jeff. Happy New Year, everyone.

We expect to continue allocating greater than 70% of OpEx to R&D as we further advance our pipeline programs. For our nonGAAP tax rate, we are guiding to a range of 21% to 22% this year. In summary, I'm very pleased with our performance in the first quarter of 2021 and look forward to updating you on our continued progress over the course of this year. Now back to Reshma for closing remarks. Reshma Kewalramani Thanks, Charlie. In sum, we've made significant progress across the business. We've confidence in and continue to execute on our innovationbased growth strategy. Our strategy is working. Vertex is delivering exceptional financial performance. Our CF business is poised to continue to grow and our broad pipeline continues to advance. Thanks, and we'll now open the call to questions. QUESTION AND ANSWER SECTION Operator And thank you. And our first question comes from Michael Yee from Jefferies. Your line is now open. Michael, your line is now open. If your phone is on mute, could you please unmute it. AnswerMichael Partridge: Operator, we could move to the next question. And our next question comes from Phil Nadeau from Cowen and Company. Analyst:Phil Nadeau QuestionPhil Nadeau: Good afternoon. Can you maybe give us your most recent thoughts on what levels are necessary, what proportion of patients need to be responders and whatnot ? And then a second part of that question. In the past, you've been guiding to moving another AAT molecule into the clinic this year. It didn't seem like from your prepared remarks, that's still the case. Can you confirm whether there has actually been a change there ? And maybe give us a reason why if the guidance has changed ?

Inc. instruments. In UOP, sales were down 25% organically, driven by declines in gas processing, lower licensing and lower catalyst shipments due to weakness in the oil and gas end markets.

And this is not new for us. In the end, I think the market will determine whether BNPL is a good option or not. And our job is to make it very easy for any kind of BNPL model to work on our network. And our job is to make our network so valuable that they're better off being on our network than trying closedloops. Now, I'll give you an example of wallet. People, two or three years ago, when wallet started had the same concern, closedloops, et cetera. Are they going to keep it away from our network ?

Now, you've seen, like I've seen, wages are increasing in that area. We've got still some issues, right. There's the clearinghouse for drug and alcohol testing that haswhatsomething like 60, 000 drivers in it right now. And who knows, maybe a portion of them drop out forever.

The electric battery is another area ofthe electric powertrain and the battery technologies that we inherited from LT. So, that's a business that I think we've recovered quite well and we're back on a growth track over the last year or year and a half... QuestionStacy A. Rasgon: What was the issue with the business because I know that was part of the reason that auto was going through the trough, what happened there ? AnswerVincent T. Roche: Well, it was a case of, let's say, the economics weren't working out for LT. So, we've been able to accelerate introductions of products to market. AnswerVincent T. Roche: And also revise the cost structures to enable us to be much more competitive in the battery sockets. We've also, StacyLTs business was very heavily centered in China, but we've been able to get good traction in the US and we'restarting to get good traction in Europe as well with these electric powertrain battery control systems.

Our campaign led with sport, adding more than 1 million new NIKE members as we invited consumers to join us in celebrating the World Cup. The power of our portfolio drove momentum across the marketplace. Earlier this month, we celebrated the Milan opening of Jordan World of Flight, a premium retail concept at the forefront of Basketball culture.

With that migration, more distributed and localized points of presence, along with transit costs and low latency considerations, will become essential over time, providing American Tower and CoreSite with the potential to win across multiple edge layers. To date, our team has identified over 1, 000 sites within our existing US tower portfolio that we see as shovelready candidates for mobile edge deployment based on location, parcel footprint, land control and existing fiber and power access. Over the next several months, we plan to break ground on our first 1 megawatt edge facility at an owned tower site to build upon our understanding of market demand and customer requirements, design a blueprint that can be rolled out at scale as the edge ecosystem develops, and demonstrate the differentiated value proposition that American Tower and CoreSite can offer potential customers. In short, the strategic partnerships emerging between the MNOs and cloud service providers, the evolution of latency driven edge leasing activity within our CoreSite portfolio and our interactions with the architects of the low latency networks of the future have only strengthened our conviction.

So this is greenfield for us as we go into this space. Sobecause I think we'll see initially, some of the private MEC solutions have the opportunity to develop first, but I think a lot of the public MEC, as we seethe coverage areas build out, and we seethe number of customers with 5G devices in their hands attaching to those networks, really has a lot of opportunities as well as we go forward here. So, on the public side, we've got the relationship with AWS Wavelength. We see that as being a winwin. Continue to build on the 10 zones that we built outlast year. And then some also initial customer wins as well. So, there's a lot going on there, whether it be in industrialtype settings or you seethe things we've announced with the NBA and NHL in terms of like we think (29:29) sports and entertainmenttype environments, too. So, when we build the network the right way, we have the skills we do (29:35) around it. We look forward to seeing that scale as we go forward here. QuestionDouglas Mitchelson: I think you've probably answered my next question with that sort of litany of areas where you guys are sort of seeing progress, but I'm not going to surprise you, by telling you the Street's pretty broadly skeptical on... AnswerMatthew D. Ellis: I've heard that. QuestionDouglas Mitchelson:...on these revenues. So, what gave you the confidence to formally guide to these new 5G revenue streams at your Analyst Day earlier in this year ? I think there's work in the space. We've got a sense of what's going on there and we've looked atwe've got a little more confidence in where we think the size of the market might be. That was the biggest thing we addressed at the Investor Day, was going through those total addressable markets of privatepublic, private and everything else that we showed. And we also talked about where we saw like by 2025 that our revenues might be. Customers are understanding how this is going to change how they run their businesses. With theyou asked a question earlier about can we maintain our market share in the business space. We know what they're looking for. We've got a great team on theon obviously the engineering side. QuestionDouglas Mitchelson: Great. So let's go to the (31:53) expense side. QuestionDouglas Mitchelson: Where are the buckets where you see obvious cost efficiencies coming from ? Where do you see OpEx growth ?

So, there we see that there's a craving for actually go to digitalization. That's the only way, and that'snot a onetime fee. For me, I think it's the new normal. We're going to see that going over. So, II'm really encouraged about that, and our strength working with these customers. Then, of course, there are some advanced customers. I'm going to use one sort of this. We, together with the Defense Department, are now doing 5G tests, et cetera. So, they're also both advanced, but alsoso, there I feel really good. We have a really good gotomarket. We have great networks, sowhich is the main thing here.

And another question was did you price for the vaccine in your Commercial book ? AnswerJohn E. Gallina: I wish it was that simple to answer that question yes or no. We price for many of the potential eventualities, and is it a vaccine, is it increased utilization, is there going to be more deferred utilization, if there's another spike, there's all kinds of puts and takes.

I think it is important. I think the board feels it's important. And so we felt like that was important and we felt given our balance sheet, remember, we're an A + rated credit. Those are our higher ROI opportunities.

AnswerDaniel S. Glaser: Mark, you want to take that ? AnswerMark McGivney: Yaron, I think if you refer back to the supplemental materials that we passed out and it's why in my commentary I highlighted the seasonality, too, I would use 2018 as a decent baseline. I don't think there was anything unusual in JLT's results quartertoquarter and the third quarter was seasonally weakest and if you look back to that statement, they actually had negative NOI in the third quarter just because of the dip in revenue.

AnswerPierre R. Breber: So look, it was a challenging quarter. And we saw that. And some of those effects do roll through cash, because it's essentially going through our COGS. And it's a timing difference between when COGS are being recognized relative to the underlying margin. In addition to that, look, we had very volatile industry conditions, as you know. We had historically low prices at times. Very volatile pricing. And there were times where we did not capture what the benchmark crudes were indicating. And that was true in the US in certain times with the calendar roll and the physical differentials, which we'readjusting very quickly. But it was a very fast moving situation. And then it was true outside the US for certain crudes. CPC blend at times was being discounted more heavily versus Brent. Some of our West Africa crudes also were being discounted more heavily versus Brent than is typical in a normal trading pattern. And then we ran much lower utilization on the Downstream than is typical. Again, we had unprecedented demand decreases, rapidly changing demand decreases. In the US, we ranour crude utilization was 55%, which is well below what the capacity is.

I know you covered a lot already. I just wondered, on the downmarket side, given the success in the bookings here, just curious if that's changing your thinking in investing more or even less maybe in ASO versus PSO and the digital sales versus the seller ecosystem. I'm curious, as we're going into fiscal 2024 here, if there is any maybe change in thinking and prioritization there ? AnswerMaria Black: So, we have leaned into the downmarket in terms of the investments we've made. So, when I think I referenced earlier the seller headcount, as we head into the final stretch here and how pleased we are with the investments we've made in head count and the ecosystem around them, so investments into the channels, things of that nature, and as all of that turns into more productivity because the head count is actually gaining tenure, it is primarily (57:43) though, have been in the downmarket. So again, think our SCF platform, the retirement services, the insurance services, most of that also comes into our digital sales organization also known as inside sales. So we are making investments into inside sales to really serve the downmarket. And what I would suggest is that, from our viewpoint at this point, the demand is there. QuestionTienTsin Huang: Yeah.

First, on testing, so we estimate that testing will be about $300 million in Q2 if we're successful. We've put some of our best people on it. I think everyone is trying to get testing. So we are working to do that ourselves and to build protocols. Our main concern is getting testing in the hands of our employees. And then potentially as we have excess capacity, perhaps we can help in other areas. On the spending, a lot of the costs that we're seeing are tied to this COVID response. Most of it is hitting in people cost both in productivity and also in wages and relief funds and all. So can't really tell how long that will last. It's probably good that we're only giving guidance for Q2 at this point. And also ones that we're not sure how long they'll last. QuestionDouglas Anmuth: Great.

We think that it's about 40:60. We think that aboutas we go forward over the next few years, about 40% of the workloads will migrate and stay on private clouds and about 60% will go to public. Now, that's a big broad statement across all industries. Now, why is that ? Look, there isn't alwaysyou've got to look at economics also. And economics will dictate many times that certain workloads will stay close to other workloads. I mean if you look at telecom, as we go toward 5G networks, it's going to stay private. If you look at many aspects in banking, it's going to stay private. So you bought a business called Red Hat, a small acquisition. I think it closed about five months ago. AnswerArvind Krishna: Great question. So July 9, but who's counting, is when we got the acquisition closed. And we had announced it in October of 2018, so just about nine months, but you needed nine months from announce to close. Look, the first reaction always when you do these things is, what's the customer reaction going to be ? So the first quarter is always the best way to look at it. Okay, are people still voting with their checks and their dollars ?

AnswerJesus Malave: Cai, so at this point we would not expect any type of profit hit based on our negotiation as it currently stands. And again, it's a dynamic discussion. But we wouldn't expect any type of charge there. Going forward, as I mentioned here, the impact would be $500 millionplus in the second quarter. The further it extends, obviously, that will go up. I think that we probably have to revisit later in the quarter to see how things are progressing. And I think we can update accordingly then. I think let's just kind of get through the quarter. If not, then we we'll update you accordingly at that point in time. AnswerJames D. Taiclet: And remember, during the negotiation period we've had significant changes in the underlying cost factors of bidding for the next three Lots. Again, thosewas concurrent. Yes, we've been going at this for a number of quarters, but that's because the cost baseline has been moving during that time and we both have to agree on where we think it's going to end up. And so COVID impact was cited, and inflation, which is even a more recent phenomenon, so to speak. Operator Next we'll go to Seth Seifman with JPMorgan. Please go ahead. Thanks very much, and good morning. AnswerJames D. Taiclet: Good morning. QuestionSeth M. Seifman: I wanted to ask a little bit about capital deployment. I think, Jay, you mentioned some potential items having to do with the pension or debt repayment. AnswerJames D. Taiclet: I can start with the theory and turn it over to Jay for the practice. The theory I have on capital deployment is, what's the highest and best use every quarter of the dollars that are created by the company or that we could or should be borrowing from the capital markets ? And the batting order for me here kind of continues from my prior experience, which is based on regression data onwhen we made decisions, how did they turn out ? And what's the best ROIC that we can expect fora given dollar of investment or a given $100 million of investment It tends to have been in my experience in both this and other companies that capital investments based on actual or anticipated contracts with real customers tend to have the highest ROICs. And we've bolstered our CapEx budget and plans under John's leadership and now Jay's as well at Lockheed Martin because we've got good prospects for contracts we're winning that are going into production that we need to invest in. We've got a great CIO running it. She's got a fantastic team. We have a well thought out plan. So that's the first area.

And finally, we continue to work with key commercial and government payers and policymakers in the US and Europe to ensure they understand the significant burden of these diseases and that broad patient access and reimbursement are in place if and when exacel is approved. Todate, we have engaged with all US state Medicaid agencies, some 150 unique US commercial payers, as well as multiple health technology assessment bodies in Europe, including NICE and GBA, to share important information about exacel and our commitment to working collaboratively to provide access to this therapy.2024, , Inc. All Rights Reserved.

The Mexico consumer and small business banking operations included in the intended exit represents the entirety of the Latin America Global Consumer Banking unit and the Mexico middlemarket banking business that is currently included in Citi's Institutional Clients Group segment.

The push from payments into transactions beyond payments, data transactions is a logical next step, again coming back to core competencies of network management franchise and so forth, that applies in the world of open banking, of digital ID could begetting lost in all of that.

So it's a really good question. So I would think about that in context of our kind of broader insurance businesses to kind of start with that. We do have the opportunity to kind of think about how to position ourselves with diagnostic testing and a little kind of expanding our services in our MinuteClinics. The front store is (27:22) not a kind of a big or material part of the business as you know. Really, sort of the important part is the pharmacy, script volume and, clearly, leveraging those retail locations to support kind of that management of health, that site of care and think about the opportunities we have leveraging the HealthHUBs. Now, I would just remind you that the HealthHUBs are part of an overall strategy. We're expanding digital and making that whole connection. And we'redoing some work around how should we bethinking about that footprint as it relates to our broader business. QuestionRobert P. Jones: No, that's really interesting. And I think it's become clear that the HealthHUB is part of the overall plan. How do you think about the evolution of the actual store ? But just curious, do you think the offering today is keeping pace with what some others are doing as far as building in actual primary care practices or maybe from the managed care side buying primary care practices ? And it's a really good question, Bob, and how we've been thinking about it. And we are evolving some of our thinking. We'rein the market already selling that product. That gives us another avenue to take that virtual primary care carrier and then having the first line of defense, so to speak, into the HealthHUBs and sort of driving that traffic. If you think about the HealthHUBs today, we have the opportunity to interact with a variety of primary care carriers to kind of push business into our HealthHUBs into those locations. But we are looking at do we have the right services, is there a broadening of the services, how do we expand our diagnostic testing, how do we make these HealthHUBs more attractive. And that work is underway for us to really strategically position those HealthHUBs as those health destinations considering nurse practitioners can already do 80% to 90%80% of what a primary care. QuestionRobert P. Jones: Yeah. No, that's super helpful.

AnswerPascal Desroches: And Simon, maybe even before that, a couple things. First, just reminding everybody of the Safe Harbor, some of the information we'll discuss is subject to risks and uncertainties, and refer to our website for more information. There were three strategic priorities identified. First, grow our customer base in our three areas of priority: wireless, fiber, and HBO Max. Since that time, what has happened is, we had generated more than 4 million postpaid phone net adds. Fiber, we've added 1.4 million, fiber net adds, and there isand is sequentially we've accelerated our additions. And then finally, HBO Max, we're really pleased with how that's going. We have grown nearly 14 million subscribers there, maybe 14 million subscribers since launch, and we are approaching 70 million subscribers globally. How we're seeing that materialize ? We reported last quarter that we arewe have secured half of the $6 billion of synergies associated with transformation and we've reinvested that back into the business, and that has in fact helped drive some of the growth we're seeing. As we look forward, we expect more of that as we expect to make our way through to $6 billion by 2023, and more of that will start to flow through to the bottom line over the next several quarters and years. Then, we alsoand then, not to forget, Net Promoter Scores across our three areas of priorities are up. And finally, we'recommitted to strengthening the balance sheet, and just this year, we have announced or closed $55 billion worth of asset monetization that will go towards deleveraging, including the WarnerMedia and DIRECTV transactions. The DIRECTV transaction closed in August. We expect WarnerMedia transaction to close in the first half of 2022, and in fact, we expect in the coming days to file our registration statement for in support of that transaction. And so, a lot going on, a lot has been done. Wireless, you saw last quarter we are growing revenues and we'regrowing EBITDA. We expect that to continue. We reached the inflection point in our Consumer Wireline business where we grew both revenues and EBITDA last quarter. That's what we think it looks like, but overall when you put that all together, it translates into lowsingledigit revenues; EBITDA, we expect to be midsingledigits driven by revenues, continued cost transformation, and just disciplined execution and cost management, and we feel really good that we're on our way there.

The key watch items that I highlighted earlier will be the differentiator in our outlook trajectory. Given the dynamic environment, we continue to monitor the risks and opportunities to ensure we're wellpositioned for the future.

Of course, there are several steps that have to happen. The first step is the relief of aortic stenosis with low complication rates as one can do by death, by stroke, by rehospitalization, we have safely relieved the aortic stenosis. And that is a consistent fact that we have seen I think with both trials. Now, is that true for every TAVR valve ?

So, one might say, well, what is different about this relative to debit ? It's all about choice. We've signed agreements with some fairly significant players in the market, including HSBC and Barclays. So that's certainly an area of interest from one application standpoint. We've launched Bill Pay Exchange in the US. You've got to see flow and that's kind of the next step in the evolution. QuestionDarrin Peller: Okay. I mean it sounds like Nets is actually a big part of that, right ?

Following several industry firsts, last year, in FQ1, our 1alphabased LPDDR5X, the world's fastest mobile DRAM, was sampled and validated with MediaTek further demonstrating Micron's leadership in the mobile market.

AnswerMary Teresa Barra: Well, I think we'll continueif you look at all the announcements that we've just made in the last month and everything that we've done since our EV Day in March, we're going to continue to build on our strategy, put proof points on the board, demonstrating that our technology is very, very good to the point that others are using and validating it by their desire to use it, and then the partnerships that we're providing.

AnswerKathryn A. Mikells: Yeah. So I'd go back to the corporate plan disclosures we had where we talked about both within Chem and within Downstream, our focus on growing high value higher margin products which would include low emission fuels, it would include high performance lubricants in our lubricants portfolio as well as what we would describe as chemical performance products and looking to double the volume of those products kind of over the plan period. And ultimately, as we look at the combination of Downstream and Chem over that period of time, looking to triple earnings. So that'show I would think about how we're looking to continue to upgrade the mix within both Downstream and Chemical. AnswerDarren W. Woods: Maybe just a little bit of color commentary with respect to when we talked about performance, say, in the Chemical company, what drives that, and it's built on its pretty fundamental competitive advantage with respect to our technology capabilities and the work that we do with catalysts and the developments that we've made give many of our chemical products unique characteristics in use and then that's really important part of the value equation. And we have labs in China and other places around the world to support our customers. QuestionJason Gabelman: Okay. Thanks for the answers. Operator And next we'll go to Doug Leggate with Bank of America. Analyst:Doug Leggate QuestionDoug Leggate: Thanks.

AnswerBrian L. Roberts: Thanks, Ben. I think, we are in a fabulous place. We'reworking really well together. If you look at all the broad diversified growth drivers that came out here again in the second quarter, whether it's wireless net adds at recordnear record levels or the Business Services growth back to highsingle digits, the new attendance records, to your question about Theme Parks, domestically, the last couple years in broadband. Obviously we'll talk I'm sure some more hereabout that, but adding almost 3 million customers, going from zero to 13 million paid subs in a couple years at Peacock is a great achievement, and the highest rated Broadcast network. I think, all parts of the company are really doing a great job in some interesting times. By the way, our treasury department went out while interest rates were low, and we've basically repriced the whole balance sheet for something on the order of 18 years average maturity at record low rates. Our bars there were very high toas we look at things through that strategic lens for our cash flow and scale. And we'll talk I'm sure a little bit about some of them today, but the biggest ones are really well run. We've got some new leadership in a number of cases, and I'm really pleased with the company that could post 10% EBITDA growth.

And if he says the tariffs are off, do your bookings go up ? And maybe talk about are you guys doing anything differently ?

It is. So create and close. And other transactional areas that create and close is how we approach the business that comes in within the quarter arises the opportunity within the quarter and closes within the quarter. So this is really outside of your typical pipeline. You'regenerating things over months or years. This is typically from expansion of the current install base. So these are enterprise customers who have hired another ten salespeople. Their calling up and they want another ten seats. That's a sharply decline. So we saw it in that the other type of transactional business that we see on a quarterly basis is on medium business. Clearly, these are deals that are shorter, they come up quickly and small medium business in times of economic uncertainty, pullback and then finally, sorry, I'm getting spam calls. We're right in the middle of that as well. Decline that one. And finally, the third area is slack selfserve. All three of these areas can lead to a lot of variability within a quarter.

During the year, we saw consistent strength across all major categories and geographic regions for both HomeGoods and Homesense. Further, both customer traffic and average basket increases were outstanding throughout the year.

And there's nothing like compensation to get people's attention.

AnswerDaniel P. O'Day: Thanks, Brian. I'm going to let Merdad comment and also if the other team members have anything to comment. What I will say is back to the previous question from Umer is that there's no doubt that we see a direct connection correlation between remdesivir's use and outbreaks so that continues, and as Johanna says, we continue to get the market share. And there's also no doubt, Brian, your point that although injectable remdesivir continues to play a really important role around the world for hospitalized patients and now the data obviously we have in the outpatient setting, we're not satisfied yet. We want to continue to put our science to work and maybe, Merdad, if you want to have any forecast on the future of pandemic to endemic you're welcome to. AnswerMerdad V. Parsey: No.

Harlan, thank you. It's an honor and a pleasure to be here at JPMorgan again as a presenter. It's always been a fantastic conference. So today, I'd like to give you a little bit more insight into what NVIDIA's working on in the area of healthcare. So NVIDIA is at the intersection of three mission critical computer sciences. If you think about it, the intersection of computer graphics, high performance computing or accelerated computing, and artificial intelligence, and these three critical computer science domains are all capable of operating on NVIDIA's one architecture. This is very unique where developers of all kinds can invest in a singular architecture and also innovate at the intersection of all three of these computer science domains. And if you think about that, every large major and important industry really relies on it. You or your children know that NVIDIA is known for our incredible gaming industry. Gaming wants to be immersive. It wants to look like you're inside of a virtual world. Cloud computing.

But you have a very good point in that, something I haven't talked about, which is there's going to be a tremendous demand for CXL in these large systems, especially as the DRAM and the memory really needs to scale pretty dramatically. And we are seeing strong pull from customers on those solutions and kind of the lead product we'redoing is under a lot of scheduled pressure to get it out because of the need.

Well, it's a complicated question because, obviously, every client is different and where they are in their advice journey is different. And we'retrying to infer from that set of interactions what they'retrying to accomplish in their life. But we get a bunch of clues along the way. And rather trying to describe kind of each of the different journeys and how that works, what I would do, and this is admittedly a copout, but what I would do is suggest that everybody go to the Expo that's downstairs right on the back of the lobby, and you can see how we make those decisions in real time because it will help bring it to life and see what we'retrying to deliver to help those clients achieve their goals. QuestionBetsy L. Graseck: And the expo is open through Wednesday ?

AnswerAmy E. Hood: Thanks. AnswerBrett Iversen: Thanks, Karl. Operator Our next question comes from Phil Winslow with Credit Suisse. Analyst:Philip Winslow QuestionPhilip Winslow: Hi, team. Congrats on another great quarter. I just wanted to focus in on Office 365 Commercial. Obviously, another strong quarter there both in terms of revenue but also seat growth. And Amy, in your commentary, you highlighted SMB seat performance as well as frontline workers, and Satya mentioned a doubling of the frontline workers yearoveryear which is impressive, but you also commented on revenue per user going up. I wonder if you could help us kind of walk through the growth algorithm here, call it the P times Q, because there are different trends going on both the P and the Q and just sort of how that might be changing going forward versus what you have seen. AnswerAmy E. Hood: Sure. Let me take a shot at that one, Phil. This is one where we do haveit is a P times Q that I think we try to disclose. But there's a couple of currents running through that. Maybe take a second to walk you through those. Absolutely, on seat growth, I think we are encouraged as we focus on more products that are more specific to the unique scenarios that face small businesses and frontline workers and really bringing the value to Microsoft 365 to them. I think you're even seeing that in offers like Teams Essentials, right, where it's a concerted effort to realize the challenges can be different in that part of the market and improving our execution. So in someways, this very strong seat growth at the frontline worker and the small business units do mask some of the progress that we've been making, in particular, I'm thinking Office and (00:55:24) the Et iVl tht ll ti dE5 dSt bi th H tid Enterprise. Value props that are really resonating, and E5, and Satya may bring up some other ones. QuestionPhilip Winslow: Great.

QuestionBill Lu: Thank you. AnswerElizabeth Sun: Next question will be coming from JPMorgan's Gokul. Analyst:Gokul Hariharan QuestionGokul Hariharan: Thank you. So, if we compare the change in expectations in the last six months, would you characterize almost all of it as market growth, faster market growth for 5G HPC ? Or is there any meaningful change AnswerChe Chia Wei: Well, compared with six months ago, we are really kind of conservative at that time because our 7nanometer's utilization is quite low, so we become conservative. But then, in these six months, a lot of thing changed, let me say that. First, the 5G's momentum is larger than we expected. QuestionGokul Hariharan: Any increase in market share that you expect compared to six months back ? AnswerElizabeth Sun: Yeah. AnswerChe Chia Wei: I cannot comment on that. But you want to increase, right, if you expect ?

We continue to add new brands and products to our lineup, especially for our Pro customer. This quarter with the launch of FLEX power tools, we featured an instore demo station for our new FLEX cordless power tools. This brand is exclusive to Lowe'sand delivers innovation to the power tool category, bringing more power and faster charging time than its competition. We also introduced the Mansfield brand across our Bath department with dropin tubs, showers and toilets. Another exclusive in the home center space, Mansfield is a strong Pro brand, and their products are made right herein the United States. And I'm excited to announce that we'll be bringing more US manufactured product to Lowe's this fall with the launch of SPAX fasteners. SPAX is the market leader in multimaterial construction screws. The addition of SPAX to the fastener program now rounds out the Pro assortment in this category that our Pro customers need. The addition of FLEX power tools, Mansfield plumbing products and SPAX fasteners continues to enhance our Pro brand arsenal, which already includes strong Pro brands such as Simpson StrongTie, DeWalt, Bosch, Spyder, GRK, FastenMaster, ITW, Lufkin, Marshalltown, Estwing, Eaton, SharkBite and LESCO. As Marvin previously discussed, we delivered strong sales growth of 7% and a twoyear growth of 151% on Lowes.com. This quarter, we enhanced our omnichannel customer experience with the launch of our virtual kitchen design, which enables customers to create their dream kitchen, allowing them to work on their project seamlessly between Lowes.com and the specialists on our virtual central design team. As part of our Total Home strategy, we are launching virtual search in our stores, which now allows a customer to hover their smartphone over a product and explore an endless aisle of similar items on Lowes.com. This is just one example of how we continue to integrate the online and instore shopping experiences. We are confident that our Total Home strategy will enable us to continue to elevate our product assortment and allow us to take market share across our DIY and Pro customers.

So maybe two if I could. So one, Rick, you mentioned several of the Allergan products maybe doing better than your expectations. Can you maybeI mean, I know you don't want to share your secret sauce, but in terms of what is it that you've noticed that has helped to drive those products because it seems like it's pretty much across the board from aesthetics to Vraylar, Ubrelvy.

Maybe I'll just followup on that last question. Why should ASPs take a little bit of a step back ? You skewed more toward fully featured system sales. Obviously, your procedure mix is expanding. Why logically should ASP step down a little bit going forward ? AnswerMarshall L. Mohr: You should expect that the, again, distributor sales tend to be variable quartertoquarter so I think you should blend the first quarter and the second quarter when you're looking at what level of the distributor sales you should expect. And then I think same thing with the mix of Xi and X. Just depending on the geography, Xis targeting geographies where reimbursements are pressured and so this quarter, just based on mix, we wound up selling fewer X'sand that should even out as well. QuestionTycho W. Peterson: And we've had a couple quarters now of operating leases in kind of the low30s, it was 29% at the end of last year. Is this kind of the new norm in your view or how should we think about operating leases in terms of mix going forward ? AnswerMarshall L. Mohr: I don't think about it as a norm. I think that there's going to be variability quarterto quarter. And, yeah, Q2 was slightly lower if not close to being the same as Q1. But I think over time, we will accommodate customers and we think that on the other hand, leases are positive for the company and that as I said in So we think it's a positive and so we'll supply those to customers as they ask for them. QuestionTycho W. Peterson: Okay. And then on IRIS, I know it's early days. I didn't really hear you bring it up in the comments. AnswerGary S. Guthart: I think the interest from the forwardleading surgeons is very high. I think in general people looking out saying additional access to data. IRIS, just a reminder for everybody, is the integration of preoperative imaging, 3D imaging into a casein realtime. We're not in the clinic yet.

I have two questions as well. I'm just curious whether you think that will sustain. AnswerLuca Maestri: Well, as you've seen, obviously, we've had sequential expansion in gross margin for services. And that was driven primarily by mix, as you said, right. We like the services business because it's a recurring type of revenue, and the margins are accretive to company margin. We did over 67% this quarter, but we want to offer very competitive services across the board, and the sameI So the relative success of our products and services in the marketplace will drive to a certain extent what our margins are. QuestionJeriel Ong: Got it. I really appreciate that.

Looking forward to chatting. Kenneth Suchoski Yeah. If you'd like to ask Ryan a question, feel free to use the Q&A box in the Zoom app, or you can email those questions tome at [email protected] and we'll do our best to get those answered. So, with that, Ryan, why don't we get started. QUESTION AND ANSWER SECTION Analyst:Kenneth Suchoski QuestionKenneth Suchoski: The narrative around the consumer and the economy more broadly has changed a lot since the start of the year. any pockets of strength and weakness ? AnswerRyan McInerney: Yeah. Happy to, Ken. And that's what we see in our numbers. One shift that we have started to see is a shift from goods and services. But even as services have rebounded in the last six months or so, the percentage of spending on goods in our payments volume still remains higher than prepandemic levels. So, that's one rotation, I guess, that we'restarting to see. If you look at US travel spend, for example, it was not back to the preCOVID trend line in Q3, but it was growing. It grew more than 40% versus last year. We continue to see very strong spending from affluent customers. But at the same time, nonaffluent spendings remained relatively resilient.

I will say, to your point, China started off the year quite weak in January, and then March was a much better month. And we see that in certainly the GDP data and the IP data specifically coming out of China. Even automotive markets were, relatively speaking, stronger in the month of March than they were in the first two months of the year. Even overall, our revenues actually grew in Q1 in China as a company. So it was despite the fact that we had some weakness in automotive markets, we actually saw strong midsingle digit growth in China, specifically. And your point, yes, Hydraulics, the excavator market was quite strong, up some 24%, I believe, in Q1. But we do think China improves as we look forward. AnswerRichard H. Fearon: And Andrew, if you look at some of the construction metrics in China, they were pretty positive in Q1, and got more positive as the quarter went on. So office starts were up, I think 18%, and residential starts were up 12%. QuestionAndrew Burris Obin: And in terms of the second question, you definitely highlighted strength in oil and gas. Can you give us more color sort of upstream, midstream, downstream and maybe some color what specifically you're seeing at CrouseHinds ?

And I would just say, I mean, I generally said that, hey, we see this industry being a consolidating industry overtime, particularly on the manufacturing side because of the extreme capital intensity, but also the incredible R&D costs, right ? If you think -- if you want to have a worldclass technology development team, all you have to do is spend $5 billion a year in R& D and do that for 30 years, right ?

Longterm, I think our goals there is obviously to optimize our net price but also secure broad access like we have for Trulicity. So those are our two goals. Obviously, we don't give specifics on our net price negotiations publicly, but we're pleased with the progress. We're staying disciplined, trying to accelerate access for any new product launch. You got to be careful that you're not too aggressive. You get access too early, but you pay too much for it. Payers are seeing that, but it's a process, and we're going through that process right now. From a supply perspective on Mounjaro, as Anat said, we were planning for success, and so we had a lot of different launch scenarios, and we have launch scenarios that considered this level of uptake. As Anat shared, we don't anticipate any supply constraints for the US launch of Mounjaro. Our manufacturing team has been working around the clock for years to build manufacturing capacity throughout the supply chain. Also, we have made investments to expand our capacity over the next several years. We have anew parental plant at Research Triangle Park in North Carolina that's coming online in 2023 and another one behind that in Concord, North Carolina. Also, we'rebuilding two manufacturing facilities to make the active ingredient for Mounjaro, and those will come on at a later time. Terence, thanks for your questions.

A lot of activity as we help clients raise capital to address their needs. You can't really expectwe don't know the answer, but we're already sort of seeing a little bit of a slowdown in activity in the first couple of weeks of this quarter. So, I don't think you can expect that the third quarter is going to be as robust as the second quarter has been. We'll go next to Saul Martinez. Please go ahead, your line's open. Analyst:Saul Martinez QuestionSaul Martinez: Hi.

Well, one of the things that I always like to talk about isand the team here isand all employees, I talk nonstop to them about I say better, better, never done. Even if you're best, you're not done, because to be best is transitory. You have to constantly be leaning into the future. We'll look at not only by cloud, but by product, by SKU.