But step back, again, I mean, we are very focused on getting pricing in the P&L and you have seen that sequentially improve from third to fourth quarter. We expect that to benefit us next year. Now there are a lot of assumptions on where commodities go. We talked about a couple of hundred million dollars there. But remember where we were in the first quarter of this year. We had a lot of assumptions there and we got ahead of that very, very quickly in terms of where things move. Now if things move — stay where they are, improve, obviously, we don’t think we will be at the low end of our guidance. But we feel it’s a prudent and flexible place to be given the uncertainty that we have seen and the movement that we have seen, certainly, over the last six months to nine months in commodity prices not to mention foreign exchange.
So let me turn it over to Stan to give you a little bit more color once again on where we are from some of our locks in our contracts.
Stan Sutula: Yeah. So on gross profit and we look at raw and pack, we do lock in a majority of our commodities here at least 90 days out for the next quarter. But there is still conversion costs, there’s still the manufacturing variances that we have to go through, labor cost that goes into that, et cetera. So when we look at this and for fourth quarter, the 250 basis point as reported decline in margin, again, private label drove about 90 points of that, so you are at 160 basis points. And as we look at prices here, again, it was 920 basis points, relatively consistent with Q3 and our conversion costs and some of the variances that we talked about had an impact overall on margin versus our original expectation. As we look going ahead, we are guiding for expansion of gross profit margin heading into 2023 and we think as we look at that, the components of that are going to be moderating commodities are on pack, improved pricing in RGM and then the productivity work that we have been doing across the Board will have a benefit here to margin.
So the margin expansion again fuels that investment into advertising. So we do believe that margin expansion is a core component of foundation of our overall model and so that expansion into next year will fuel that model, which will allow us to deliver low-to-mid single-digit earnings growth.
Operator: Our next question today will come from Lauren Lieberman of Barclays. Please go ahead.
Lauren Lieberman: Hey. Thanks. Good morning. I know you have covered a lot of ground, but I just was curious, knowing that 4Q gross margins came in below what you had anticipated. You have obviously detailed the reasons a couple of times. I was just curious, the bottomline still delivered, frankly, so that means there were some choices made, perhaps, a little bit short term on lines within OpEx. So I was just curious kind of what are the areas that you may be pulled back on in the shorter term than how you kind of make those decisions and how we should think about the reinvestment in 2023? Thanks.
Noel Wallace: Sure. Well, we didn’t pull back on the advertising investment, obviously, that was down 20 basis on a percent to sales, but if you exclude Red Collar advertising was flat and on a local currency basis, Lauren, the advertising was up and that becomes fundamental to continue to build the momentum of the progress we have seen in 2022 to ensure that we deliver that continued momentum in 2023 and that was a very deliberate choice to sustain the investment moving through the quarter. Obviously, a little bit of softness in gross margin, as I mentioned, largely driven by mix of the Hill’s business coming in a little bit lower than we expected, as well as skin health, but we feel those are well under control. We have good visibility about where those two businesses are going.
