I’ll let you know when we see it. But certainly, if we can’t make product or if we can’t convert currency at some point that becomes somewhat untenable. But right now, we’re working our way through it in multiple markets like Argentina, like Ukraine. And so, again, that’s the high-level answer on path forward is we’re staying the course.
Nelson Urdaneta: Yeah. And, Lauren, to build on what I told Dara on the pricing and hyperinflationary, so a few things. As we think of last year, the full year impact of the mark-to-market of our net monetary position in other income and expense line…
Lauren Lieberman: Sorry, keep going.
Nelson Urdaneta: Okay. So, the impact above the operating profit line was $115 million for the year and about $70 million for the quarter. That netted off some of the interest income that we perceive on cash balances in Argentina, led to a net impact of about $0.16 on EPS in the year and about $0.09 of EPS in the quarter. As we fast-forward to this year, we are projecting about half of that impact, both in the other income and expense line, and then on EPS. We will see a little bit of more of that impact in the first half of the year, it’s reflected in part of our outlook. But that’s what’s projected at this stage based on what know.
Lauren Lieberman: Okay, great. Thanks so much.
Mike Hsu: Okay. Thanks, Lauren.
Operator: Thank you. Your next question is coming from Jason English from Goldman Sachs. Your line is live.
Jason English: Hey, good morning, folks. Thanks for slotting me in.
Mike Hsu: Hey, Jason.
Jason English: Hey, Mike. Couple of questions. I want to bring it back to volume, and specifically I want to double-click on your Professional segment where volume was little bit weaker than we expected this quarter. If I zoom out and just look since 2019, so pre-COVID, volume is down like 23%, 24%. And I know you mentioned rightsizing in prepared remarks today. So, my question is, what’s going on there? Where has all the volume gone? And how — your margin suggest you’re not getting meaningful deleverage here. How have you been able to offset the associated deleverage effects of that lost volume?
Mike Hsu: As always, Jason, you’re right on the issue. So, a good one. But I think if you look at the margin profile of the business, I think the team has done a great job addressing, I would say the volume softness or volume change in the environment. And a couple different things. One, we had to adjust rapidly to this work-from-home demand environment that kind of came on with the advent of COVID as you might recall. And you may recall our washroom business, which is the majority of our business in K-C Professional tends to be higher development in offices. And so, that’s really where the volume has gone up. I would say right now, that volume on a category basis is running about 80% to 85% of what it was pre-pandemic. And it’s not going to bounce back that quickly, the reality is.
And I’m not sure you’re in your office at Goldman in New York every day. And so that’s the same thing. As we look around our offices, we’re not fully back in, right? And so, it’s partial at best. So that’s, I would say, an ongoing challenge in that business. But I think our team has adjusted to that and treated as a reality. We have rightsized some of the business and some of it was from a cost perspective. The reality is we were doing a lot of volume and co-packing a lot of volume on the external market. And so I’d say, we haven’t had to address fixed costs as much as you might have thought of. And so — and I think that’s reflected. So, I think the team has done a good job of recapturing margins from a — both from a price perspective, mix perspective, and also while growing volumes at the same time behind great innovations like our ICON dispenser, which I believe is really the best dispenser in that side of the business.
So, anyway, so I think the team has done a great job and I think you can see that in the margin and definitely have recovered from pre-’19 margins on that business and actually exceeding at this point.
