Greetings and welcome to the General Mills Fiscal 2021 Q4 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press the one followed by the four on your telephone. If at any time during the conference you need to reach the operator, please press star zero. As a reminder, this conference is being recorded on Wednesday, June 30th, 2021. I would now like to turn the conference over to the VP of Investor Relations, Mr. Jeff Siemon. Please go ahead. Thank you, Frank, and good morning. Thanks everyone for joining us today for our Q&A session on fourth quarter results. I hope you had time to review our press release, listen to our prepared remarks, and view our presentation materials, which were made available this morning on our investor relations website. I want to note that in our Q&A session, we may make forward-looking statements that are based on management's current views and assumptions, including facts and assumptions related to the potential impact of the COVID-19 pandemic on our results in fiscal 2022. Please refer to this morning's press release for factors that could impact forward-looking statements and for reconciliations of non-GAAP information, which may be discussed on today's call. I'm here this morning with Jeff Harmening, our Chairman and CEO, Kofi Bruce, our CFO, and Jon Nudi, Group President of our North America Retail segment. Let's go ahead and get to the first question. Frank, can you get us started, please? Thank you. If you would like to register question, please press star one four on your telephone. You will hear a three tone prompt to acknowledge your request. If your question has been answered and you would like to withdraw your registration, please press star one followed by the three. One moment please for the first question. Our first question comes from Ken Goldman with JP Morgan. Please proceed. Hey, good morning. Thank you. Two from me. The first is, can you give us a sense of what to expect for the cadence of the cost inflation this year? Then, the second one is, The Street, I think, is looking for maybe about 40 basis points in your gross margin in terms of the decline year-on-year in fiscal 2022. I know you're not guiding to this, but given what you've said about inflation, HMM, and pricing and nearly net pricing, is it kind of reasonable to expect something in this range, or is that far off from what you're looking for? Thank you. Hey, Ken. This is Kofi. Thanks for the question. As we look at the year, I think it's important for us to just give some perspective and I'll address it maybe through the lens of the flow of margin. We would expect our back half to deliver higher margins than the front half, particular pressure on Q1, where we would see the combination, obviously, of inflation and pricing that starts later in the quarter, the benefits of pricing flowing through later in the quarter. As for the flow though, that guidance on margins would reflect roughly, you know, a relatively balanced flow in our expectations for the full year for inflation. Then, obviously with the pricing really kicking in as we step into Q2. All right, thank you. Just the second question, is that 40 basis points for the year that The Street is looking for, is that far out of line with what you're thinking, Kofi? Well, we're not going to give guidance at gross margin. Obviously our guidance on operating profit and sales would indicate something in the range of a modest decline in operating profit margin. Okay, thanks so much. You bet. Our next question comes from Andrew Lazar with Barclays. Please proceed. Thanks for the question. Good morning, everybody. Morning, Andrew. Jeff, I know you used the words "dynamic" and "uncertain" a bunch of times in your prepared remarks. Even though the consumer side of things may be getting, maybe a little bit more visible, obviously the cost and comparison side of the equation are still pretty challenging. I guess my question is, how much flexibility do you think you've left yourselves in the FY 2022 guidance in light of the industry challenges, also knowing how the timing of pricing and other actions tends to work to offset costs? Yeah, Andrew, I think your observation is a good one. We use "dynamic" and we use "uncertain." I'd also say "volatile," we can throw that one in, too. From a demand perspective, it still is volatile. Even if mentally many consumers are getting beyond COVID, the demand environment is volatile. Not only with respect to at-home versus away-from-home consumption, but also, you know, what is the impact of pricing going to be and what does that mean for elasticity? I would say the demand environment's still volatile, and as is the cost environment. Whether that's input costs on manufacturing or whether that's transportation or whether those are commodities, it is a pretty volatile environment. What I'm proud of is over the past year, we've been able to navigate that well and do what we said we're going to do. In fact, each of the last three years, we've done what we said we're going to do. Now we still have to face this year. I feel good about our guidance. I don't think it's so conservative, and I don't think we're out over our skis. We're trying to tell you, "Here's what we think we will do." Is it easy in this kind of environment? No. I feel good about our capabilities and how we're executing right now, and we're very clear on our path forward. All of those things give me confidence that we can do what we said we're going to do, but it's a tricky environment. I think that it will be. Thanks for that. There was a survey done recently that we read about, one of the large CPG brokers, and it showed how, I guess, manufacturers were more optimistic about sort of sales trends in the back half of this calendar year compared to retailer expectations. I didn't know if you've encountered sort of this divide in expectations in your discussions with your key customers, and if you have, maybe why you think this gap exists with respect to the differential, again, expectations around maybe sales and/or stickiness between manufacturers and retailers. Thank you. Yeah. Andrew, I want this to come off in the right way, what I said just a second ago that it's volatile, I think this is Exhibit A. When you have a group of one -- one group thinking one thing, another just shows that there is a level of uncertainty and volatility. That would be the first point. The second is that, you know, if you look at our guidance for the year, we said we'd be down modestly on sales, -1% to -3%. I can tell you that we're locked up with our retail customers and we have good partnerships with them and we're pretty well aligned with what they think. I can understand why there are differences because it is a volatile environment, it probably varies by category as well as geography. We're very well aligned with our customers, not only on the demand environment, but also the cost environment. They see the same cost pressures we do, and we've instituted pricing in the vast majority of our categories and markets throughout the world. While no one wants to increase prices, you know, we've had to do that because the cost environment is what it is, and we have found them to be understanding because they're in the same kind of boat that we are. Okay. Thanks so much. Thank you. Our next question comes from Robert Moskow with Credit Suisse. Please proceed. Hey, thanks. I was thinking about the terms that you're using, Jeff, to describe the environment as volatile. I want to get a little tighter on it because I would say that the cost environment is very volatile and maybe the pricing as well, but your opening comments would indicate that demand has been fortuitously strong and has stayed strong. Are you saying demand is volatile too, or are you just saying it's uncertain? I would describe it as uncertain because you just don't know how their people will react in the fall when maybe they go back to school and go back to offices. Yeah, Rob, I appreciate the distinction. I would say that what we've seen in the recent past is not very volatile. In fact, it's been pretty steady. Honestly, it's kind of playing out as we thought it would, which is our business was down in the last quarter versus where it was last year during the stock up. It was actually quite a bit higher than it was pre-pandemic, you know, as are our shares. We've been talking for quite some time that although in some corners, people thought demand would kind of fall off a cliff when people started going back to the office and kind of returning to normal pre-pandemic, we said we think actually some of these behaviors will be sticky, and that's what we have seen. It hasn't been volatile in the recent past. The question of what's going to happen for the remainder of the year as pricing kicks in, as kids go back to school, as we hit the fall, I think it'll be a volatile environment. We're calling it the best we can, given our assumptions. You are correct. It hasn't been volatile in the recent past, but as we look ahead three months and six months, I think that'll be what we're going to be dealing with. Okay. I would note during that period, Rob, we still expect at-home food consumption to be above pre-pandemic levels, even if it's slightly below a year ago. Right. Okay. This question might be more in the weeds. The Strategy and Growth, I guess, division or organization that you're creating internally, is that just combining some corporate functions together, like corporate insights and M&A together, or are you expanding the role and taking some of the responsibilities of the business units, like revenue growth management maybe, and pulling it into this division? How big of a change is this division you've developed? Yeah. I would say it's a decent size change, but what we're not doing is taking operating responsibility out of the businesses. In fact, what we're doing is pushing operating responsibility for the near term and more closely aligned to the businesses, which is really important. We are doing that. In terms of the strategy area itself, we are centralizing some of the capabilities because you don't want to do modeling, for example, in many different places. You want to be able to do that in one central location, but then it's up to the businesses themselves to use that modeling and then to decide what's best for their businesses. You want some centralized capabilities so you can develop scale and expertise, but then you want the use of those models to be in the businesses who are responsible for the P&L. That's where we're doing that. The other thing we're doing, I would say, is that similar to what we've done with Strategic Revenue Management over time, where, you know, at one point in time many years ago, it was something we did periodically was think about pricing and we turned into an always-on kind of function. The same would be true of our strategy function. We're kind of beefing up our strategy function, as well as M&A as we look to the future and certainly what we need to do to hit our sustainable top-line growth targets is, we need to keep competing effectively, but we also need to do more portfolio shaping. In that sense, we have an always-on strategy group that is maybe different than what we have done in the recent past. Okay. All right. Thank you. Thanks. Our next question comes from Laurent Grandet with Guggenheim. Please proceed. Yeah. Good morning, everyone. Maybe if I can come back on one of those questions. When you say at-home consumption will be more elevated than post-pandemic, I think that's probably what the assumption for everyone. Now by how much? It's really the question. Could you maybe help us understand your thinking process, maybe by category, how you see those more elevated than consumption post-pandemic, and what is triggering these in your view? Laurent, I think, for this call, it's probably not helpful for us to go category by category, but I think if I can give you an opinion what's underlying the assumption as to why we think this is going to happen. In our human food business, and I'm going to separate pet, but in our human food business, what I would say is that there are a couple of factors underlying our belief that we'll continue to see demand that's above pre-pandemic levels. The first is that more people are going to work from home more often than going to the office every day. We're fairly certain that that is here to stay. There will be a new normal and where people work. The second is that consumers, many millennials, have really gained cooking skills and baking skills and a newfound confidence in the kitchen, and they can find that they can save money by doing it. We're not saying people won't want to still go out to eat. We believe that there's a younger generation that maybe haven't done this before. Our innovation data would show this, especially in the U.S., that we have a whole new group of consumers that have elevated demand. The third would be that, you know, our e-commerce business has grown rapidly over time. In fact, it's now 11% of our sales up from 5% 18 months ago. While the continued growth may not be linear over the next period of time, many people have found shopping in grocery stores to become much easier than it was before. Anytime you add convenience to someone's lives, it tends to stick. For all of those reasons in our human food business, we believe even if people go out to restaurants more, even as kids start to go back to school, there will be some of the demand that is sticky for food at home. The other thing I would say for pet is a little bit more straightforward in that, frankly, there are more pets than there were before. That is certainly true here in the U.S. It's true in other parts of the world as well. Particularly in the U.S., about 85% of those new pets are in homes that already contain one pet. These are people who are used to having pets. The amount of pet food that's going to be consumed over the next few years, we think is going to be elevated. In addition to the fact that the fastest-growing part of pet continues to be the natural segment, which is where Blue Buffalo competes. We would anticipate that the category itself will be above what it has been the last couple of years, and that natural will remain ahead of the category in terms of growth. Thanks. If I may, I got the second question. It's about plant-based dairy. We have seen recently an increased interest in plant-based dairy from consumers and actually also from investors as well. Could you please update us what's the plan with your Yoplait brand in the U.S. and Canada, as well as Häagen-Dazs internationally, and potentially maybe update us about your pet investment as well? Thanks. Hey, Laurent. It's Jon Nudi. Hope you're well. The yogurt category in the U.S. is really starting to accelerate. It was up 5% in April and May, up 2.5% in June. Really what's driving that is the simply better health segment. That was up 31%. That's products like:ratio KETO, which is one of our products, Two Good and Triple Zero, and we put plant-based in there as well. We're definitely seeing growth in that segment. In terms of Yoplait, we launched a Oui plant-based product several years ago that continues to do quite well. We're actually looking at launching a Yoplait plant-based product in the coming year as well. It's still relatively small in yogurt in the U.S., growing quickly, really that simply better health segment with the dairy-based products like:ratio KETO, Two Good and Triple Zero has been the bulk of the growth. Plant-based remains an area of focus for us. I would tell you it's not the biggest segment and probably not will be the bulk of the growth coming year. Thanks. Internationally for Häagen-Dazs, any plan there? When it comes to plant-based ice cream, I think it's a very small part of the category. What I will say is our Häagen-Dazs business has been growing very nicely and continues to do well all over the world, particularly strong growth in China and in Europe this past year. We've got some great innovation coming on Häagen-Dazs. Plant-based is really small. We are confident that we can continue to grow our Häagen-Dazs business really well in key geographies and looking for a summer where more consumers are out and about. Thank you. Thank you, guys. Bye. I'll pass it on. Thanks. Our next question comes from Jason English with Goldman Sachs. Please proceed. Jason English with Goldman. Not hearing Goldman. Not hearing you now. It's now. It's breaking up recently the last few minutes. Jason, can you hear me? Mr. English, you're cutting out. I don't know if you can reestablish the connection. How about I switch headsets? Is this better? Much better. That's great. Thank you. Awesome. No worries. Now that you've announced price increases, the vast majority of your categories and markets, can you give us some clarity on how much net price realization you expect to realize in your down 1-3 full year organic sales online? Yeah. Look, Jason, this is Kofi. Appreciate the question. Let me give you this frame to think about this. As we begin to get inflation of about 7%, we would expect our Holistic Margin Management to register about 4 percentage points of cost of goods sold. That would offset a good portion of the inflation. Obviously, in this environment, we would need some additional price realization. While we're not quantifying it, we would expect the combination of levers through Strategic Revenue Management, both list pricing, price pack optimization, trade optimization, all of those things to yield us enough to cover our inflation expectations. Okay. Take that remaining 3% of COGS and gross it up to revenue is probably a safe place to go right now. I think I heard you say. Switching gears, but still remaining on the topic of offsetting inflationary pressures. Your recent restructuring announcement, I thought you were going to have a lot more meat on the bone to give us today on this, but there's not a lot. Can you give us more clarity around the initiatives, including the expected cost savings and how much you expect to reinvest? Well, I will give you a frame to think about this, and let me sort of touch on what we're getting at. This is not simply a cost-savings exercise, as Jeff kind of alluded to in some of his earlier answer. We are sort of aligning resources to growth-facing purposes. There isn't in here an expectation that we will prioritize areas like digital and data and analytics, SRM strategy, and M&A, as Jeff mentioned earlier. Those things are all critical to sort of maintaining the growth engine. Our expectation after this exercise is that our admin cost as a percent of net sales will be roughly in line with our fiscal 2021. They will keep pace with the sales decline. That's helpful. Thank you. I'll pass it off to Ben. Our next question comes from Bryan Spillane with Bank of America. Please proceed. Hey, good morning, everyone. Hey, Bryan. Hi. My question is just around as we're working through our models and thinking about and trying to factor in inflation. Maybe Kofi, could you give us a little bit of some color on maybe which segments are going to, you know, feel more inflation than others? Maybe just how we should be thinking about the potential volatility of inflation just within segments. Then, I guess tied to that question is just as we're the revenue management component of covering inflation. Is it more pronounced in some segments than others? Just trying to get a sense of, you know, how we should be looking at that across segments, or is it really generally the same across all of them? Yeah. No, appreciate the question. While I don't want to get too specific at the segment level, what I will tell you is all of our segments are experiencing higher inflation. We are addressing in all of our segments with a mix of Holistic Margin Management in line with our historical levels and SRM and using the entirety of the SRM toolkit in all five of the segments. Okay. Then maybe just to follow up, I know there's been a lot of talk about price increases as part of the way to combat inflation. We've heard that across our whole coverage universe. What do we expect on the backside of that, right? As some of this inflation moderates, hopefully, would the expectation be that the pricing is stuck? Or would there be the potential that some of it would have to be dealt back as inflation moderates? Just trying to understand just how unusual this environment is, just how we should be thinking about the stickiness of those price increases, if and when inflation rolls over. We'll probably -- we usually don't give forward-looking views on pricing, I think that's probably the best plan to stick to that here. Which is not to say your question's not a fair one. I just think, for us to talk about future pricing is probably not something we should do too much. Other than to say, I think one of the keys to our success as we look ahead, and has been recently, is our agility. We've proven ourselves pretty agile during the last year, including with recent pricing we've taken into the marketplace relatively quickly. I attribute that to the fact we have an always-on capability. In a volatile market, trying to be certain is not a good place to be. What you need to be is thoughtful, and you need to be fast. I think we're both of those things, and we're going to try to continue to be both of those things. You raised a good question. We're not going to answer directly because we usually don't talk about pricing, but I do believe that the key challenge in a volatile environment is to be clear and to be endeavor to do that, and we feel good about our ability to do that. Okay, great. Thank you. Our next question comes from David Palmer with Evercore ISI. Please proceed. Thanks. Andrew mentioned that mega broker survey, and in that survey, in the Q&A, they cited those consumer and category insights that the food companies have as a reason why the food companies were more bullish about demand than the retailer customers were. In other words, you've got a better level of understanding about where things have been more sticky and for good reason. What is your latest thinking about categories and brands that you think most benefited in a semi-permanent way from COVID, and perhaps because of consumers embracing new habits? I have a quick follow-up. Hey, David, it's Jon Nudi. As we look at our business, we think our meals and baking businesses particularly benefited during the pandemic, and you saw that with sales numbers. As we really dig into our consumer insights, consumers changed their habits. Obviously, baked a lot more. We believe that some of that'll be sticky. It's more than just food. It's really bringing joy to the family and bringing the family together, which is terrific. Jeff mentioned volumes of learning to cook, and that's something that could stick as well. All of our research would say certainly we're not going to stay at the elevated levels that we've seen in the pandemic, but consumers will eat at home more than they did prior to the pandemic, and they'll use these new skills to use our products more than prior to the pandemic as well. We're spending a lot of time. We've got a lot of new insights, really digital insights to really leverage the first-party data that we have with Box Tops for Education and pillsbury.com, bettycrocker.com. That's really giving us some rich views into consumers' day and their journey. We think, again, via that data, there's going to be some things that stick in the future. Thanks for that answer. One category that I am really confused by is cereal. It's an at-home category, but it's perhaps part that lives in that world of convenience, that compressed morning day part. In other words, cereal has really lost a lot of share of at-home breakfast during COVID, if that's a way to think about it. At-home breakfast getting the benefit of people being at home, but perhaps cereal not being as much of a part of that. In other words, cereal's up 1% over the last two years. Not really that impressive. How are you thinking about cereal going forward? Do you think it actually has a bit of a rebound as people get back to convenience, or is this sort of just the new normal or the existing normal, one of the few categories that really didn't get affected by COVID at all and is just sort of low growth? Any thoughts there? Yeah, absolutely, David. For sure, I think as consumers were home, they had more time to prepare breakfast. You saw things like eggs and pancakes grow more quickly than cereal. We do believe cereal will continue to grow into the future. Again, as we look over that two-year period, the category did grow. We grew even more aggressively than that. Again, we increased 60 basis points of share in fiscal 2021. That's 31 consecutive months of share growth, 10 consecutive quarters, four consecutive years. We believe that cereal's important today and will be important in the future. It's used obviously [inaudible] this coming year. At the same time, we know that our marketing continues to work. Things like Cheerios and our cholesterol messaging, our kid fun messaging around Cinnamon Toast Crunch and Lucky Charms. We believe the category will continue to grow. It's probably not going to be high single digits, but we think a little bit of growth in that category is in our future. I think as things get back to normal, to your point, a more normal, as consumers are back to school and back to the office, we'll see some of the convenience that cereal provides for that even to tail in the category. That's helpful. Thanks very much. Thank you. Our next question comes from Faiza Alwy with Deutsche Bank. Please proceed. Yes. Hi. Thank you. Good morning. I wanted to first just ask about your investments. I know you've increased media spending, and you've also spent to build critical capabilities, and I'm curious how you're thinking about investments as we look at fiscal 2022. Essentially, I'm asking, are you expecting media spending to continue to increase at that double-digit CAGR that we've seen over the last two years? Should we stay at the level that we're at? How much more investment in capabilities do you need from here on out? Let me take that one a little bit and then, Kofi, if there's any background you want to give as well. We're not going to give specific guidance on our media spending for next year. I would say when we talked at CAGNY Q4, we had talked about as we look into the future, we have media grow roughly in line with sales over time. We'll see what happens this coming year, but that's what we said we would do over time. In terms of investments, we're really pleased what we've seen out of our data and analytics capabilities. Jon Nudi touched on Box Tops a little while ago. We digitized that. In our opening remarks, we talked about some of the things we're doing in pet. You'll hear a lot more about that this coming year. We've tied together an omni-channel approach in China with our shops and our retail, which is yielding some good insights, some great results. We like what we're seeing there. Even on the cost side, as we look at our global sourcing efforts, we've tied data and analytics into that to help us with our costing and HMM. So you'll see us continue to invest in our data and analytics capability because we really like what we have seen so far. Some of that will be foundational, and some of that will be on the analytics themselves to driven growth, and other parts will be on analytics to help us save money. No, I think that'll be a big area of investment, as will our strategy in M&A area as we, again, look to further our accelerate strategy. Okay, great. Thank you. Just a second question on Blue Buffalo and the pet segment generally. I know you talked about, you know, growth in that segment. I'm curious, it sounds like category growth is going to be strong. Are there any specific plans beyond the connected commerce initiative that you talked about? Is there any innovation that we should look out for? I know at CAGNY, you talked about potentially taking Blue Buffalo to international markets. I wonder if there's any plans to do that this year. First of all, we're really pleased with the Blue Buffalo performance, including the fourth quarter, where our retail sales grew in the mid-teens. Even if it doesn't look like that on the P&L, you have to remember we're lapping 4 months from last year and a stock up from year 4. We're really pleased with Blue Buffalo. We see strong growth ahead. That would be my opening comment. In terms of how we're going to grow, this digital capability will certainly be a big piece of that, but so will innovation. We really like what we've seen out of the Tasteful launch, and we're literally selling everything we can make from this new Tastefuls cat line. We under-indexed in cat and the margins in that segment are good, and we're highly confident Blue Buffalo can play a role in that. We've recently launched some innovation into snacking and the bones launch and we're excited about what that can be. In addition to clearly bringing online this Tyson acquisition, which we hope to close shortly. We're going to grow Blue Buffalo organically, continue to do that. We're bullish about our opportunity to do that, as well as effectively bring on this new part of the portfolio, this Tyson treat business, where we under-indexed. Tyson's doing a nice job with that business. We think, you know, combining what we can do with our capabilities in that, we think there's good growth in that as well. Great. Thank you so much. Thank you. Our next question comes from Michael Lavery with Piper Sandler. Please proceed. Good morning. Thank you. Good morning. I know you've called out the uncertainty, and I think that's all very clear, but can you give a sense around elasticity, what kind of assumptions you're making for your planning process? Sure. As we built our plans this year, one of the benefits of our SRM capability is we actually have very detailed demand and elasticity models. I would say that, also give a nod to the uncertainty of this environment and the fact that inflation in the market is broad spread, it's cross-industry, it's global. Those factors all potentially are set up for demand elasticity models that are by design backward-looking to perhaps overcall the elasticity of pricing in this environment. I'd make that note because this is an environment where that becomes a relevant factor as we talk about demand elasticity. Does that net you out at greater elasticities than historical levels, or do you expect it to be pretty consistent with what you've seen before? What's that net out to? Yeah. Well, our models are built on sort of historical expectations. I think what I'm also giving acknowledgement to is that the environment itself is reason for us to be cautious about being certain on the call for demand elasticity. It's certainly an environment where I think demand elasticity models could be wrong, just because of the breadth of inflation in the market. Okay, that's helpful. Just a follow-up on the C-store and food service segment. You've called out how you expect the lift to volumes or sales from more demand or reopening, but can you touch on the impact for pricing and specifically pass-through pricing? How much of a factor do you expect that to be for the sales lift, should we look the modeling an acceleration there, specifically on the pricing side because of pass-through costs? Michael, I would say that what we see with our cost going up is very broad. It's broad across geographies, it's broad across product segments, it's broad across channels. That would include what we see in C&F. Our cost for our products in our convenience and food service segment are going up as well. We would anticipate pricing in our convenience and food service segment because we see our costs going up. In this environment, there's obviously not only inflation in food, but kind of everywhere, and so there's no different in C&F. We would anticipate probably price going up. In fact, we've already increased prices in the food service segment because our costs are going up. What I will also say is that we're very confident in our Convenience and Food Service Business to return to growth this year as schools reopen and as people get out a little bit more. We're well-positioned to capture growth that we're seeing in that market. Okay, great. Thanks so much. Thanks. Our next question comes from Chris Growe with Stifel. Please proceed. Hi, good morning. Hi, Chris. Hi, just a couple questions for you. When you gave your guidance for the year, like your constant currency EPS growth, I am just curious, it does not incorporate the acquisitions or divestitures. I don't know if you have any quick words on those. We've modeled or have estimated kind of 1%-2% dilution for the yogurt business and then slight accretion for the pet treats business. Would that be in the realm of expectations, if you have any thoughts on that? Chris, this is Kofi. We don't have new information that would change the perspective we've already given. Obviously, we do expect the Pet Treats business to close shortly. Obviously, until that point, we can't get too much more specific, but it is probably important to give some parameters around what slightly accretive means. I think it's important to note, we will see a portion of earnings contribution for the year. We will also see some of the purchase accounting related amortization, including inventory step-up. Those factors will lead us to expectations probably in the range of $0.01-$0.02 accretive for the year on the Pet Treats business. No changes then on your expectations for yogurt then when that closes, correct? No. That's further out. Okay We'll give some more color as we get closer. Okay. I had just one other question, if I could, on the international segments. Asia, Latin America hit about a 5% operating margin for the year. Europe, Australia, about 7.5%. Are these sustainable margins? Could they grow from here? There was some pretty significant moves as we moved through the year in terms of improvements in profitability. Just want to get a sense how much of that was the benefit of COVID-19 in some cases and the pandemic, and how much of it is potential to kind of stick, if you will, based on changes you're making in those businesses. Chris, that's a great question. I think we've been very pleased with the progress we've made in margins on both of those businesses in this environment. Obviously, some of that is related to the leverage benefits of operating in elevated demand. We've also been making and continue to make business model changes in both businesses that are driving margin improvements and actually will continue to make them even contemplated as part of the restructuring actions that we've already announced. I would expect that we would hold on to a portion of these margin gains and continue to drive margin improvement, and get to a much more competitive place on both of these businesses. Okay. Thanks so much for your time. You bet. Thanks, Chris. Thank you. I think we have time for one more question, Frank. Our next question comes from Ken Zaslow with Bank of Montreal. Please proceed. Hey, good morning, everyone. Morning, Ken. I have two questions. One is, you guys have been really early on the data analytics side. What are the specific new capabilities that you need? I mean, I'm just a little surprised that you're not there, I guess, is kind of what I think, because you guys were very early on that. What are the new learnings that you are looking to explore and do more with? What will be the returns on that? and then I have a second question. We've been working on our data analytics capability for a couple of years now. I would note that the first thing we had to do is build a foundation, and I won't get into the details of that in this answer, but we had to build a foundation. Now we're building on top of that with some specific capabilities around growth capabilities like Strategic Revenue Management, growth capabilities like addressing consumers through things like Box Tops for Education and what we're doing in the pet personalization space, as well as what we're doing in omnichannel in China. On the cost side, what we're doing with procurement. There are a lot more things that we can do using data analytics to drive our business. We'll continue to invest in order to drive those parts of the business. It may seem like a while, but we had to build a foundation first, which is the right way to do it, and now we're building on top of that with specific capabilities. Great. My second question is, you put out the three-year growth that you had 2% sales, 2% operating income, and 5% EPS. When you think about the next three years, beyond that, does that seem like the right mix, or do you think the changes that you're having should accelerate that by a certain amount of basis points? How do you think about the next three years? Again, not next year, but just thinking about it in a three-year clip, I think that's a good way of thinking about it and how you're positioning it. I'm just curious to see how you think of that relative to the last three years. I'll leave it there and appreciate it. Ken, I'm going to try to make it through this year. I have to say, though, I do respect the question. As we look ahead, our goal is to get back to sustainable growth and to get to 2%-3% growth. I'll probably restate something I've said already. That requires us to do two things. One is compete effectively, and I think we've shown over the past couple of years, we've really improved our game there to compete. We're competing effectively pretty much everywhere around the world. We'll continue to need to do that to get to 2%-3% growth. We'll continue to have to reshape our portfolio. You see that through the divestiture of Yoplait and at least proposed divestiture of Yoplait in Europe, and you see that with the upcoming acquisition of [Pluto]. We'll look to continue to reshape our portfolio as well as compete effectively to get to that 2%-3% growth rate. That'll be our plan after this year. We've got a group that's focused on that. We've got another group that's focused on making sure we can deliver what we said we're going to do this coming 12 months. Great. I just think that all these things that you're putting in place seems like it should fuel this growth. I appreciate the answer, and I look forward to seeing what you guys can do. Thank you. All right. Thank you. Okay, I think that gets us to the end of our time here this morning. Thank you everyone for your time and attention and appreciate the good questions. Please reach out over the course of the day if you have any follow-ups, and look forward to talking to you again soon. Bye-bye. That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line. Have a great day, everyone.