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charlie sheen responds to allegations of infidelity Higher cost for materials, labor and freight are here, as predicted, and are evidenced in our Q3 margins. While no one has a crystal ball, we do know that higher cost will continue to affect our profitability in the near term. We also know we are uniquely positioned to leverage our strengths, including scale, operational capabilities and pricing power to help mitigate those costs beyond our control. Over the longer term, I expect cost factors will continue to ebb and flow, albeit at different speeds.Consumerdriven companies with strong brands and compelling products will be in the best position to maintain their margins, and disciplined companies who are lean and focused on how they use their resources and who are aggressively seeking new ways to grow will prosper. Those who don't won't. In that sense, the roadmap for success in the future is no different than it's always been, even as macroeconomic forces shift.And while the headwinds we face are the same for everyone, the competitive advantages we have are ours alone, unique to the NIKE Inc. portfolio. Nobody knows sports and athletes better than Nike. We optimize how we design and develop our products, how we price them given current market conditions and how we present them to the consumer. And we do that more effectively than anybody else in our industry. We're leveraging success with our new store and online experiences by working closely with our retail partners to set the standard for brand presentation, reaching millions of consumers and transforming the marketplace.We're using our size and scale to leverage our supply chain and negotiate costs to help maintain profitability in challenging environments. 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