“The impact of foreign-exchange rate will mostly hit in the second half.”

In context

“lable to you as an offset to those dynamics and whether you see any limitations to implementing them over the balance of the year? I'm asking that in the context that historically 3Q, 4Q gross margins stepped down sequentially. So I think your guidance assumes some fairly strong operating leverage over the balance of the year in SG&A, but just wanted to see if you could clarify those moving parts. Thank you. Andre Schulten: Good morning, Steve. I think we'll -- we are forecasting right now at spot rates as we always do, both on the P&L side and the organic sales growth side. And Europe will see -- we're seeing high volatility in currencies, obviously that are moving on a daily basis based on commentary. So we'll reserve our ability to update here, but for now, we're reflecting spot rates. The impact of foreign-exchange rate will mostly hit in the second half. So we saw a lot of the commodity impact in the first-half and the corresponding impact of FX will be mostly in half two. That is built into our guidance logic that we've communicated. Our ability to deal with foreign-exchange as with any headwind is a combination of productivity, which we feel very good about for the year across all productivity buckets. So we're confident in our $1.5 billion productivity guidance on cost-of-goods-sold and the $2 billion guidance overall, including SG&A and pricing levers. Pricing is probably most pronounced in enterprise markets where we see strong foreign-exchange rate exposure, but it's going to be a combination of both. All of that is baked-in in our guidance commentary. But again, we'll watch this closely because there's a lot of volatility in this,”