Good day, ladies and gentlemen, and welcome to the LivaNova PLC Fourth Quarter and Full Year 2021 Earnings Conference Call. If you'd like to ask a question at the end of the presentation, please press Star followed by one on your telephone keypad. As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Matthew Dodds, LivaNova's Senior Vice President of Corporate Development. Please go ahead, sir. Thank you, Lydia, and welcome to our Conference Call and Webcast discussing LivaNova's Financial Results for the Fourth Quarter and Full Year 2021. Joining me on today's call are Damien McDonald, our Chief Executive Officer, Alex Shvartsburg, our Chief Financial Officer, and Lindsey Little, our Senior Director of Investor Relations. Before we begin, I would like to remind you that the discussions during this call will include forward-looking statements. Factors that can cause actual results to differ materially are discussed in the company's most recent filings and documents furnished to the SEC, including today's press release that is available on our website. We do not undertake to update any forward-looking statement. Also, discussions will include certain non-GAAP financial measures with respect to our performance, including, but not limited to sales results, which will all be stated on a constant currency basis. Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release, which is available on our website. We have also posted a presentation to our website that summarizes the points of today's call. This presentation is complementary to the other call materials and should be used as an enhanced communication tool. You can find the presentation and press release in the Investors section of our website under News, Events, and Presentations at investor.livanova.com. With that, I will now turn the call over to Damien. Thank you, Matt, and thank you everyone for joining us. Today, we reported our fourth quarter and full year 2021 results, with full year results meeting or exceeding the high end of our guidance range. Before discussing the results, I want to provide you a brief update on the SNIA Litigation. On February 21, the Court of Appeal of Milan notified us that it suspended payment of the EUR 454 million judgment until a decision has been reached on the appeal to the Court of Cassation, which is the Italian Supreme Court. This suspension is subject to providing a first demand bank surety of EUR 270 million within 30 calendar days. We believe that we can satisfy the condition of the surety. Now, turning to our fourth quarter results. I want to start off by discussing sales results, followed by a review of our strategic portfolio initiatives. After my comments, Alex will provide you with additional details on our results and 2022 guidance. I'll wrap up with closing remarks before we move on to Q&A. We're proud of our fourth quarter results, where excluding Heart Valves, we experienced both sequential and year-over-year revenue growth across all regions. For the full year, we are pleased to have achieved all our key financial targets. I'd like to highlight that effective fourth quarter 2021, we changed our segment reporting from two to three reportable segments. These reportable segments are Neuromodulation, Cardiopulmonary, or CP, and Advanced Circulatory Support, or ACS. The change reflects the way we internally manage, evaluate performance, and allocate resources. This new structure drives further accountability and execution and provides greater transparency to growth and margin profiles. Additionally, due to the impact of the pandemic on our prior year results, today's commentary includes certain comparisons to 2019. We believe this provides helpful context for the underlying trajectory of our business. These comparisons are reflected on slide 20 of the earnings presentation. Turning to our core growth drivers, epilepsy and ACS. Global epilepsy sales for the fourth quarter increased approximately 10% versus 2020 and 8% sequentially, with growth across all three regions. Additionally, epilepsy sales on a full year basis were 28% above 2020 levels, which was in line with the midpoint guidance and 7% above 2019 levels. These results reflect our commitment to serving our patients and delivering sales growth while navigating ongoing COVID-related challenges. US epilepsy sales increased 11% versus fourth quarter 2020 and were 7% above 2019 levels. Total implants grew in the mid- to high-single digits versus the prior year and were in line with 2019 levels. Similar to prior quarter trends, total implant growth was driven by replacements, which continue to benefit from the catch-up in procedures deferred due to the pandemic. Additionally, sales and implants improved sequentially with increases in both new patients and end-of-service implants. Our progress in U.S. epilepsy continues to be supported by our go-to-market initiative, which currently encompasses 12 dedicated CEC teams. These teams accounted for approximately 19% of U.S. sales and implants in the quarter. They continue to deliver sales and implant growth that trended above the baseline business compared to the fourth quarter of 2020 and 2019. Epilepsy sales in Europe grew 11% versus prior year, led by the U.K. and Italy. We achieved growth of nearly 10% in the rest of world region, led by a recovery in China, Taiwan and Brazil. Compared to 2019, Europe sales were unchanged, while rest of world sales grew 23%. For the full year 2022, we expect global epilepsy sales to grow 5%-7%. Our forecast includes growth in new implants in the U.S. as patients and their caregivers return to in-person physician visits and hospital capacity improves. In addition, we anticipate a continued tailwind in replacement implants related to the VNS backlog created in 2020 that has continued into this year. We are pleased with the progress of the go-to-market initiative and we plan on adding four new dedicated teams in the U.S. during 2022. ACS sales were $14 million in the quarter, representing an increase of 4% from the fourth quarter of 2020, and a sequential decline of 10%. Results were impacted by a reduction in patients treated with ECMO, given hospital staff shortages as well as capacity limitations. Notably, ACS sales for the full year were $55 million and grew over 30% in line with guidance. We expect ACS to grow at least 20% in 2022. Turning now to DTD, sales for the fourth quarter were $3 million and for the full year were $9 million. For 2022, we anticipate DTD sales of approximately $10 million-$12 million, primarily from the RECOVER study. The RECOVER study continues to progress, and we're very close to implanting our 250th unipolar patient and will communicate when this milestone has been achieved. While we remain focused on enrolling both the unipolar and bipolar cohorts, the unipolar cohort continues to enroll at a faster pace, primarily because it is more prevalent patient population. As a reminder, we can submit the data from the two cohorts separately for transition to the prospective longitudinal study or registry. We still anticipate a transition to registry to occur for the unipolar cohort in late 2022 or early 2023. In heart failure, the ANTHEM-HFrEF U.S. pivotal trial continues to advance. We are pleased to report that we recently achieved two key milestones. First, in late December, we enrolled the 400th patient. Second, in mid-January, the 300th patient completed the nine-month follow-up visit. Given these milestone achievements, the first interim analysis is being conducted by the independent statisticians. Once all pre-specified conditions have been met, including safety, a trend towards the primary endpoint and success in the three functional endpoints, we may submit the functional data to the FDA, which could occur as early as mid-2022. If we do not meet all the criteria, the independent statisticians will take another look at the data after the 500th patient is enrolled. Moving to OSA, the OSPREY trial continues to advance with approximately half of the 20 study sites currently screening patients. While we have experienced delays in scheduling sleep tests and surgeries, we're excited to announce that our first patient is scheduled for surgery. We look forward to communicating when this key milestone is achieved. Importantly, we still assume submission for FDA approval in mid-2024. For the cardiopulmonary segment, sales were $133 million in the quarter, an increase of 12% versus the fourth quarter of 2020. Oxygenator sales increased by approximately 20% globally, with strong growth in Europe and the rest of the world regions. Heart-lung machine sales increased in the mid-single digits, with over 40% growth in the U.S., offset by declines in Europe and the rest of the world. Additionally, cardiopulmonary sales were generally in line with 2019 levels for the quarter, but were below 2019 on a full year basis, given COVID-related pressures on procedure volumes and the cadence of the HLM conversion cycle. We expect cardiopulmonary sales to grow zero to 2% for the full year 2022. Lastly, Heart Valves was divested on June 1, 2021, and Heart Valves sales for the fourth quarter of 2020 were $24 million. With that, I'll turn the call over to Alex. Thanks, Damien. During my portion of the call, I'll share a brief recap of fourth quarter results and provide 2022 guidance. Before discussing results, I wanted to point out that during the quarter, we identified and corrected an error related to foreign currency exchange rates utilized to calculate inventory and cost of sales for the years 2017 through 2020, and the nine months ended September 30, 2021. This resulted in a decrease to inventory and an increase in cost of sales. Accordingly, prior period results have been revised on a GAAP and non-GAAP basis. See the revised financial information for 2020 and 2021 by quarter as supplemental information in today's press release. Additionally, my comments will reference the revised prior period results. Sales in the quarter were $270 million, an increase of 12% versus 2020, and an increase of 6% versus 2019 after excluding Heart Valves. Adjusted gross margin as a percent of net sales in the quarter was 70%, which was up 300 basis points for the fourth quarter of 2020. Adjusted gross margin was favorably impacted by product and geographic mix. Adjusted R&D expense in the fourth quarter was $41 million compared to $39 million in the fourth quarter of 2020. R&D as a percent of net sales was 15.1% versus 14.5% in the fourth quarter of 2020. R&D is increasing due to continued progress on our next generation heart-lung machine, as well as the RECOVER study and the ANTHEM-HFrEF and OSPREY pivotal trials. Adjusted SG&A expense for the fourth quarter was $107 million compared to $94 million in the fourth quarter of 2020. SG&A, as a percent of net sales, was 39.8%, up from 34.7% in the fourth quarter of 2020. The increase was primarily driven by higher commercial investments in the U.S. for the ACS and epilepsy businesses. Adjusted operating income from continuing operations was $40 million compared to $47 million in the fourth quarter of last year. Adjusted operating income margin from continuing operations was 15% compared to 18% in the fourth quarter of 2020. Improvements in gross profit were offset by investments in SG&A. The adjusted effective tax rate in the quarter was 14% compared to a negative 1% in the fourth quarter of 2020. The higher tax rate is primarily attributable to changes in the valuation allowance and geographic income mix. Adjusted diluted earnings per share from continuing operations in the quarter was $0.57 compared to $0.70 in the fourth quarter of 2020. Adjusted diluted EPS from continuing operations for the full year was $2.07, which was above midpoint guidance. Our cash balance at December 31, 2021 was $208 million, down from $253 million at the end of 2020. Total debt at year-end 2021 was $240 million versus $656 million at year-end 2020. These changes primarily reflect the impact of the equity offering and the term loan retirement completed during the third quarter of 2021. Adjusted free cash flow for the quarter was $32 million, and was $84 million for the full year, which exceeded the high end of guidance. Free cash flow generation was driven by higher earnings and improved cash conversion, with free cash flow conversion ratio of 79%. We invested $26 million in capital property, plant and equipment during 2021, which was $10 million lower than the prior year. Now, turning to 2022 guidance. We forecast 2022 sales growth on a constant currency basis between 3% and 5% and excluding the Heart Valves business. We assume an approximate 1% headwind from exchange rates. We are projecting adjusted diluted earnings per share from continuing operations in the range of $2.50- $2.80. We assume adjusted diluted weighted average shares outstanding to be 54 million for the full year. Adjusted free cash flow from operations is expected to be in the range of $90 million-$110 million. We forecast capital spending in the range of approximately $35 million-$40 million. With that, I'll turn the call back over to Damien. Thanks, Alex. As discussed throughout today's call, 2021 was a year of execution against our guidance and improvement in cash flow generation. While we enter 2022 with ongoing COVID-related market headwinds, we remain committed to delivering sales and earnings growth, achieving our pipeline milestones, and improving profitability and cash generation. We believe the focus on the strategic triangle, underpinned by the LivaNova business system, positions us well to realize the full value of our diverse portfolio. With that, Lydia, we're open to questions. Thank you. If you have a question at this time, please press the star, then the number one on your touch tone telephone. If your question has been answered or you wish to remove yourself from the queue, please press star followed by two. As we enter the Q&A session, please limit yourself to one question and one follow-up question, and then return to the queue if you have any additional follow-ups. Our first question today comes from Adam Maeder of Piper Sandler. Your line is open. Please go ahead. Hi, Damian, Matt, Alex. Hope you guys are well. Thanks for taking the questions here, and congrats on the progress this year. Wanted to start with just kind of what you're seeing from a procedure environment standpoint, kind of real time. Just kinda wanna flesh out a little bit more, you know, January. I'm assuming January is a challenging month like we've seen across med tech, so would love some color there. Have you seen things improve thus far in February? If you could illuminate that would be great. Along those lines, just how do we think about quarterly cadence and models, you know, Q1 versus the remainder of the year? I had a follow-up. Thanks. Yeah. Great, Adam. Hey, thanks for joining us. Look, thanks for the question, and I'll do a bit, and then, Alex, why don't you jump on in? I would say, like a lot of people, the year has been pretty much a mess for us as well. If you look at January, it was a little slower in the U.S. The epilepsy in the ACS businesses have been impacted more than cardiopulmonary. In epilepsy, there's still a bottleneck in the new patient referrals, the surgical scheduling, procedures being canceled or delayed. You know, we have people scheduled, and then they turn up and they've got Omicron. Also the EMU workups, and that's largely related to the staff shortages at the hospital. All of that was probably impacting, you know, new patients more than the replacements. I would say, though, that coming into February, to the next part of your question, you know, we've seen an improvement in that the qualified leads, the ops and picks, as we refer to it, have definitely improved through February. In ACS, the staffing shortages have had the most pronounced effect on us. The ECMO patients are, you know, much more labor-intensive. You know, it's one to one versus like with vents, it's one to four. We've seen some rigidity there, but again, starting to improve as the staff shortages in pockets look like they're improving. Do you wanna talk about phasing? Sure. Adam, just in terms of our phasing, I'd say as a kind of normalized phasing for Q1 is always kind of a low watermark for us. This year, we're gonna skew higher in the second half, and this is primarily related to our expectation of the next generation Essenz Perfusion System launch, which is scheduled for the second half. Also, clearly, you know, Omicron is still an issue, as Damian just said, in Q1, so, you know, definitely factor that in. Okay. Got it, guys. That's helpful color. Appreciate that. Maybe I'll just ask one more on the guidance front. I'll specifically ask about the epilepsy guidance, 5%-7%. Damien, I think you talked about this a little bit, you know, in the prepared remarks, but can you just illuminate or flesh out the NPI versus replacements? You know, how you're thinking about those two different, you know, pieces. As well as just, you know, geographic mix, U.S., OUS, rest of world. I think I heard you say you expect NPIs to grow in 2022, but wanted to confirm that. Any more color there would be great. Thanks so much. Sure, Adam. It's Matt. For 2022, our expectation is both NPI and replacements grow, NPI slightly faster. Then we do assume that the international markets grow faster overall, and that's mostly NPI driven. Okay. Helpful. Thanks again, guys. Cheers, Adam. Thank you. Our next question comes from Rick Wise of Stifel. Your line is open. Please go ahead. Good morning, everybody. Damien, maybe let's start off with it seems like good news about the suspended judgment, but this demand for surety. Just at high level, is that are you hesitant to call it pleased, but are you pleased with it? Is that a positive step forward in your mind? As you reflect on it, what are next steps in general now and timelines? Any incremental color there. Your comment about the surety, are you going to finance it? You obviously have. You're generating cash internally. Are you going to finance it with equity or debt? Maybe help us understand that as well. Well, first of all, hi, Rick. How are you? Good to hear you. A few things. Let me talk about the case and then you jump in about the financing. Sure. The first thing for us is, yeah, we think this is a great logical step from the court. It didn't make sense to demand payment while we're still discussing the who case. I think it's a really good decision from the court to suspend it until that case has been heard. I think you might have heard us talk about the fact that who case and the how much case have been joined, and we'll expect to hear that sometime in 2022. I think it was a really great decision, and it's important for us. In terms of financing, Rick, you know, so all along since we received the initial judgment in November, we had been sort of planning for the worst case scenario and, you know, so we have been looking at financing and, we've lined up a kind of a short-term bridge facility to satisfy the surety. Okay. Good. Maybe just a couple of operational questions. In general, what are you baking in terms of the cadence of COVID recovery, generally? I mean, obviously it sounds like second half better, but many companies are saying gradual improvement throughout the year. Is that the way you're thinking about it? As it relates to ACS, what percentage of disposables there have been in COVID patients? When you're talking about 20% guide there, what's embedded for COVID? Again, in terms of the phasing, you know, the expectation is we're gonna see kind of a slower Q1, and then improvements in Q2 and the back half of the year. Again, the phasing is also impacted by our Capital Equipment HLM business, which is gonna be skewed more towards the second half of the year. For ACS, you know, the fourth quarter was impacted by the staffing shortages, as I mentioned, and, you know, it makes a center more cautious about starting a new patient on ECMO, you know, for less severe, you know, COVID or non-COVID. I think we've talked about before, the percent of COVID patients is, you know, 40%-45%. In the quarter, it was 43%. We also think, as we've talked about with the phasing overall, that it'll be a gradual improvement quarter-over-quarter. We've also been adding headcount, and we added about 20% last year, most of them in the second half. So they're sort of coming online for effectiveness in this first half. We're planning to add another 20% in 2022, again, starting now, so they become more effective in the second half. I think as COVID improves, the footprint increases both from last year and this year, that's how we're thinking about the guide of at least 20%. We expect, Rich, your last question, the percent of COVID will decline in 2022, and we think that'll largely be made up by other respiratory uses, COPD, ARDS. Gotcha. Thanks for the solid fourth quarter performance relative to your excellent guide. Great to see it. Thanks. Thanks, Rick. Thanks, Rick. Thank you. Our next question today comes from Mike Matson of Needham & Company. Your line is open. Yeah, thanks. I wanted to ask about the ANTHEM trial. I think you said you might be able to submit to the FDA mid this year. So would that, if we see that, does that imply that it hit all the endpoints? Yeah. First of all, hi, Mike. How are you? Matt, why don't you jump in? Sure. For ANTHEM -HFrEF, as Damian said, we hit the two milestones that allow the independent statisticians to start reviewing the data, which is underway. We think that'll be done in two months or less. We have to hit all five of the endpoints. We've talked about this before. Damian highlighted it, safety, trend in mortality or morbidity, which is the ultimate primary endpoint, and then the three functional endpoints. You know, assuming all five hit, then we do plan on submitting to the FDA, which we think would come around midyear. If we don't hit all five, it's an adaptive study, so we keep going. We get the independent statisticians get to look at every 100 patients. Again, the next look would be at 500, which we expect to occur, you know, kind of in the later part of 2022. Okay. Got it. All right, and then, you know, surprised to see that the operating margin in ACS business was as high as it is, you know, north of 20%, I think. Maybe can you just comment on that and is that sustainable? Do you expect it to improve further from here? Yeah, I'm not sure where you're seeing the 20% margin on ACS. We've been investing heavily behind the business and, you know, we're gonna continue to invest in 2022 as well. We don't expect to see much profitability coming out of that business. Okay. I was looking at slide 15. Maybe I'm misreading it. It says adjusted segment operating income and margin, 21.9% for ACS. Oh, that was last year. Sorry, I apologize. I thought it was- Yeah. Yeah. I got mixed up. Yeah. Okay. Yeah. That last year, obviously, we held back on investments, you know. You know, the feet on the street was, you know, where we started really putting a lot of our support and resources in 2021. That's where you see it, the profile changes in 2021. Yeah. Okay. Never mind. That, yeah, that makes more sense consistent with what I would expect given what you're doing with that business. Okay. Finally, I just wanted to ask about, you know, just the overall guidance. What have you sort of assumed around, inflation headwinds in your guidance, and what sort of impact do you expect on your, you know, margins from that? Yeah. We have incorporated the inflationary impacts both from a labor perspective particularly at the manufacturing levels and also continued expectations on higher freight costs. As we saw that throughout this year, and we're gonna continue to see that in 2022. That's incorporated into our guidance so it's already assumed and that we absorb those costs and of course we have our productivity efforts ongoing to help offset that. Okay. Got it. Thanks. Thanks, Mike. Our next question is from Amit Hazan of Goldman Sachs. Your line is open. Hey, thanks so much. This is Phil on for Amit. A lot of the areas have been touched, but I thought just maybe a few follow-up items, if I could. First, not hearing as much on the bipolar arm of the depression trial. I was hoping for an update there and try to understand a little bit better about the challenges around enrollment, kind of expectations for that one and weighting sizing of that portion of the depression opportunity. Yeah. Hey, thanks for joining us too, by the way. Omicron overall, you know, hit the RECOVER study. Beginning the last week of December and the first two months of 2022, we've really seen a slowdown in patients moving from the consent to implant. It's a combination of, you know, the Omicron hitting patients and delaying their surgery or the clinical staff shortages. It's affected both arms. On unipolar, we're very close to implanting the 250th patient. There's been a modest delay in the enrollment there, but it hasn't changed how we're viewing the transition to the registry in like late 2022 or early 2023. That's for the unipolar. Bipolar is trending behind. I mean, we modeled originally, you know, 65/ 35 in terms of recruitment. It's more like 85/ 15. We're seeing a lot more unipolar. As I said, on the Investor Day, we're really skewing our efforts to cranking through the unipolar arm. You know, a bit like my indication expansion for a drug, you know, pushing very hard on one indication. The unipolar is, I think, more important than hitting both of them. We have seen a delay in the bipolar toward the back end of the year. That's great, Damian. Thanks. Just on that one, just to be clear, the unipolar and bipolar arms can be treated basically completely separately from an assessment and from a submission standpoint, right? That's correct. There's not a limit- Yes. on unipolar from the bipolar side. Okay, great. Then on ANTHEM, hearing kind of the progress and the enrollment rate, roughly sounds like roughly 100 patients a year. Just wondering, you guys have been very gracious about giving unipolar expectations. Do you have a similar internal expectation for what sort of level of patient event rate before you'll be able to potentially hit successes? Is this first initial review sort of what's embedded internally, or do you think it will be 500 or later to be able to achieve early success? Thanks so much, Damian. Yeah, no, it's a good question. For this, it's sort of an embedded PMA. It was designed to have the functional endpoints hit statistical significance at nine months with 300 patients. Again, we have to hit safety, which we're pretty confident in, given all the history of VNS. Yeah, and then there's also, you know, a trend in mortality. We don't have to hit the mortality endpoint. That's designed for, you know, a larger follow-up. But, you know, of the five, they were all designed to hit at this level as opposed to kind of more of a first look like you saw with some others. We still have the ability to, you know, to look at 500, 600 patients, you know, at the first time. You're right, the design was at this first look. Okay, that's helpful. Thanks so much. The next question comes from Zach Weiner of Jefferies. Your line is open. Hey, everyone. Thanks for taking the question. Just one on the heart lung machine upgrade cycle that we're expected to see the tail end of this year. How long do you expect that to last? And, can you talk about some of the margin impacts from that upgrade? Yeah. Hey, Zach. Thanks for joining us. So the HLMs, I like the analog of what happened in, you know, late 2017, 2018 into 2019 with the S3 to S5 upgrade cycle and how we ticked up in terms of execution there as a way for people to map and model that process. We estimate there are 7,000 S5 HLMs out there, varying somewhere between, you know, a few months old to 15 years old. Obviously, we'll start at the 15-year-old end of the funnel and work our way through. We think that there's, you know, a good tailwind for, you know, 2-3 years in that conversion cycle. And then in terms of, you know, margin, the gross margin should improve. We're anticipating a price premium. We're also expecting that by having the operations group, you know, starting to ramp volumes, we start getting better absorption at the plant level, particularly in Munich. That should have a positive gross margin impact as well. Got it. Thank you. Cheers, Zach. Our final question today comes from Matt Taylor of UBS. Matt, please go ahead. Hi, good morning. Thank you for taking another question. First question I was gonna ask was just about some of the puts and takes on gross and operating margin. I was hoping you could flesh that out a little bit with the impact of COVID and supply chain, and maybe just talk about how we could consider those impacts, not just for this year, but for future years, you know, where you could get some leverage and where you could get some pressure. Yeah. In Q4, you know, I think the gross margin was pretty robust, and it was driven by, you know, our product and geographic mix. We talked about the operating margin was gonna be slightly lower in Q4 relative to Q3 because of the fact that we pushed some spending out of Q3 into Q4. That's kind of the color on 2021. As far as 2022 is concerned, we expect gross margins to increase about 250 basis points in 2022. We expect the increase from the product mix, and also obviously the exclusion of the Heart Valves divestiture, as well as the efficiencies that are offsetting some of the supply chain costs. Just kind of working our way down the P&L, we expect R&D as a% of sales to increase slightly, as well as SG&A, as we continue to increase our sales and marketing investments. You know, assuming that we're coming out of COVID, so higher travel, commercial investments, as well as the continued investments in our sales force expansion efforts across ACS and epilepsy. Okay. Thank you. I guess, as a follow, is there any area in the supply chain where you're seeing, you know, critical shortages? It seems like you're managing through this relatively well. Are there places where you're at risk for any disruption, or should we just view it as some increased cost? Look, I would say, like every company, we've been looking at these headwinds. I think the supply chain team have done a spectacular job. I mean, some of the stories through Q4, both in logistics and distribution or the procurement team to manage that were really solid. Look, some of the things we're doing is, you know, we're giving suppliers, you know, better long-range visibility and forecasts. We've increased our touchpoints and re-review with them so that we're particularly focused on, you know, single source or more critical components. We've increased our visibility on inventory. Part of the guidance, you know, includes an uptick in inventory. We talked about some of the cost pressures, you know, sort of split between SG&A and also COGS. In certain areas we're building inventory. I think the key areas are like microelectronics and epoxy resin, of all things. But we're also watching transport costs. We're doing as much as we can there to balance that out. The other bit is the Inflationary Pressure. Lead times and pricing. The way to balance that again is working with your suppliers on the long-range visibility. I think we've put in place a lot of really good steps, but again, I think like everyone, we've got headwinds there. Thanks. Thank you for taking the question. Thanks, Matt. Thank you. We have no further questions in the queue, so I'll turn the call back to Damien McDonald for closing remarks. Well, thank you, Lydia. Thank you for all of you for joining today. On behalf of the entire team, we appreciate your support. Thanks for 2021, and we're looking forward to 2022 and your interest in LivaNova. Thank you. This concludes today's call. Thank you for joining. You may now disconnect your line.