Kofi Bruce: Yes. I’ll talk broadly for the enterprise. And Jon, if you want to jump in and provide some specific perspective from NAR, and we can do that. Broadly, we look at the entire basket of our input cost. So that includes manufacturing, sourcing and freight. So as we think about the combination of those three things, that’s generally or we go and we talk to retailers about the total input cost basket. What’s probably not included in that we have talked about in past earnings calls is the other costs to serve in this environment. Some of the added pressures that come from supply chain disruptions, some of the short-term decisions we’ve had to make wrong product changes and external supply chain that have allowed us to service in a disrupted environment. Those things probably a little bit harder to include in the conversation.
Jon Nudi: I would just say, as we talk to retailers, we’re focused on multiple things. I mean, focused on supply chain. So again, we’re still short order. We’ve been historically in the 98% to 99% service level. So, we certainly better than where we were a year ago, that continues to be a focus and something we spend a lot of time talking about. And then it is about growth. And again, obviously, dollars have grown strongly. I think all of us want to get back to not only growing dollars but also growing units as well, and that’s something that we stay very focused on. In terms of SRM and whether what levers we pull into the coming year, we pull extra levers every year regardless of inflation. And as we see inflation next year, we’ll continue to leverage SRM.
And obviously, our retailers are being impacted by inflation as well. So, we’ll see how the year unfolds. At this time last year, we certainly didn’t envision the number of moves that we’ve taken this year. One of the things we’re really proud of is the way that we’ve reorganized over the last few years as an enterprise, we’re much more agile. So, we feel really good about being able to deal with what comes our way, and we’ll have any appropriate conversations with retailers if we get to that point.
Chris Carey: Perfect. Thank you for the perspective.
Operator: The next question comes from Bryan Spillane of Bank of America.
Bryan Spillane: Just two for me. One, what is just SG&A in the quarter was up pretty meaningfully, just in absolute dollars, and I understand there’s a pretty strong marketing component. Can you just maybe copy, give us a little more insight in terms of outside of marketing or advertising, just what else is driving SG&A and I don’t know, it’s just sort of the level we should be looking at as we model the fourth quarter? So just some perspective there and then I have a follow-up.
Kofi Bruce: Yes. So let me — you’re absolutely right. In the third quarter, media was a big driver. It was up strong double digits. We expect it to actually be a driver of SG&A as we head in the fourth quarter as we’ve been turning marketing back on, on Pet, putting additional spending on key platforms. And as a reminder, I think it’s important as we were coming out of a period where five years, six years earlier, we had pretty much depleted pretty significantly the amount of marketing spending. So we’ve been sort of investing through this cycle to ensure that we have appropriate support behind strong marketing ideas. I think the rest of it outside of marketing spending, we have seen some increase in admin primarily related to comp and benefits as we’ve seen our performance improve.
Obviously, that increases our incentive accrual. We’ve seen some increase related to charitable contributions. Those have been kind of the big non-marketing spend drivers as we look at the quarter.
Bryan Spillane: Okay. And those seem like they’re more transitory, meaning we shouldn’t see an absolute dollar levels, probably not the same level of SG&A in the fourth quarter that we saw in the third quarter?
Kofi Bruce: I think that is generally fair.
