Matt Sykes : Got it. That’s a great amount of detail. Maybe just, Bob, for you, just on pricing. Kind of what’s embedded for next year as you think about pricing? And how has pricing kind of trended over the course of this year? Are we back to sort of normalized levels of pricing that you guys have historically achieved? Or is there still some pricing gains to see sort of as we move into next year in certain areas of your business?
Robert McMahon: Yes. Matt, that’s a great question. And we ended the Q4 at just a little under 3% and actually for the full year was greater than that. So it actually continues to be hold up very well. What we’re building into our plan for next year is roughly 2 percentage points of price, which, as you know, is greater than our historical kind of pre-COVID levels. And so what we’ve been able to do, I think, is — really speaks to the value proposition that we have as well as the emerging mix of our businesses as well.
Operator: We go next now to Rachel Vatnsdal at JPMorgan.
Rachel Vatnsdal: So first off, I just want to ask on China. You mentioned that the region is down 30% this quarter. That was in line with your expectations. You’re expecting it to decline mid-singles again next year. So I guess, just how much of a function is that really due to some of the comps and starting to lap the easier comp late into next year versus is there anything structurally wrong with that market? And how do you expect China to continue to grow on that medium to long term?
Mike McMullen: Do you want to take the first part, Bob, I think it’s…
Robert McMahon: Yes, yes. So well, I think from the standpoint of the comps, what we would see is, obviously, if you looked at what we did in the first half of this year, we had very strong growth, and then we’re going up against, extremely difficult comparisons this year. I mean, as I mentioned, we were down — up 44% in Q4 of last year, so down 31% this year, we’re still up over the 2 years. And as we think about this similar to the rest of the kind of the guide, we’re expecting kind of declines in the mid-20s in Q1 and getting better from there. And some of that, it will be an easier comp. And I’m sure Mike will talk a little bit more about this, but we don’t see anything structurally changing in the Chinese marketplace for life science tools.
Mike McMullen: Absolutely, Bob. Why don’t pick up from there. So I made a few comments about this in the prepared remarks, but I may first trip to China since October 2019 when we’re there for the [BCIA] show. And what did I see, first of all, I’ll just remind how quickly things can happen in China. Electric vehicles everywhere, a lot more green, digital adoption was just amazing. I don’t think anybody uses cash there anymore. And then you also remind as you travel around the country, just how big a country is, how big the economy is and how big the markets are for Life Sciences. But to your specific question, here’s what I was hearing from customers and my team when I have seen as well, which was why do we think this market eventually will return to growth, all the things that have been driving this market over the years, which is primarily the Chinese government’s 14th 5-year plan.
They’re still on it. They’re pointing to long-term growth, improving the quality of life in China. We’re hearing stories of new environmental regs coming from PFAS. The anticorruption impacts that we’ve seen in the health and the pharma space look to may have peaked, with a lot of the actions occurring, which could ultimately long term, lead to more R&D investments because there’ll be less money being spent in the SG&A area. But I don’t want to be too short-term optimistic about this expansion of growth because the business is bouncing along at a certain level. And that’s why we call it stabilization in our prepared remarks. So what we’re seeing, what we’re forecasting, what we’re hearing is from our teams and our customers don’t expect any significant near-term improvements but don’t expect any significant near-term deterioration either.
And I think that’s why when you look at the year-to-year numbers in terms of growth rate, Bob, was probably a comp — payer issue. But we’ve had a couple of months now just run at a certain level, and that gives us the sense that what — I think we used were potential signs of stabilization. So I hope that helps.
Rachel Vatnsdal: Yes. No, that’s helpful color. And then I just want to dig a little bit more on your comments around next year. So you mentioned that you expect the first half to be similar to what you’re seeing in the back half of this year. So I guess, can you just walk us through in a little bit more detail what exactly you mean by that? Should we be expecting similarities from an organic growth perspective? Or are you really talking about more from a revenue dollar standpoint. And then same type of question on the trajectory of the rebound on margins and EPS next year. Should we expect kind of that similar ramp given the cost dynamic as well?
