Expeditors International of Washington, Inc. (EXPD) Earnings Call Transcript & Summary

Hello, and good morning to many of you as you're jumping on. Thank you for joining our webinar today. It is right at 12:00 here on the East Coast. So we're going to give it just a minute before we get started, as everyone starts to pile in. I can't help but love the emojis because the thumbs up are so encouraging. Thank you all. Okay. So I'm sure we're going to continue to have many joining us as we get started here and everyone's reminders are going off on their calendars to tell on what's next on their schedule. My name is Samantha Hurst. I'm part of our marketing team here for the Americas with Expeditors and you are joining our Customs Bonds webinar. So we are going to be focusing today from our speakers on what you need to know as an importer about customs bonds. So I am going to go over just a little bit of keeping items here. Those of you, again, that have joined these webinars, you pretty much know the drill, but for anyone that is new to an Expeditors webinar, we'll go over a few items on the next slide that tells you just kind of how the day -- webinar is going to flow. So we will have about 45 minutes of content. At the end of that, we will have a Q&A session that will follow. We do ask that you just drop your questions into the Q&A box on your screen. And that way, we can keep track of those and make sure that we've answered everyone. So again, please, in the Q&A box, that's where your questions can go. You are on mute, and your camera is turned off for the duration of the webinar. One of the main questions that we get almost every time, and Roma, if you don't mind going to the next slide there, that would be great. We always get asked whether or not the slides will be made available. So we are recording this webinar and we will have the slides available to you, actually, along with some additional resources that our team members here have provided. And we just asked to get those -- we just ask that you do a short feedback survey. You probably have seen these before, if you've joined our other webinars, but we just get those surveys out to you to make sure that we have a good understanding of how valuable the content was for you and also what other topics you would like to see in the future. So please do complete that survey. You'll receive the e-mail for me, typically within an hour of the webinar wrapping up. Now finally, how do you get more information about these future webinars that are coming up. So we do encourage you to subscribe. We have regular communications that go out about both our Americas level and our regional level webinars. We always got something going on at Expeditors from a webinar standpoint. So if you scan that QR code there, you will get the opportunity to subscribe and not miss any of our future events. So next, we'll introduce our speakers and get started with our content for the day. So with us today, we have Roma Sereke. She is our customs bonds program manager for Expeditors. And we also have with us our guest, Brittany McCormick, and she is an operational support manager with Avalon Risk Management Insurance Agency. So we appreciate Brittany and also some of her colleagues joining today, they will be helping to answer questions in the background as well as some of our other customs bonds team members with Expeditors. So Roma, I will ask it to you to get started with our content.

Thank you, Samantha. Good morning, everyone. Thank you for joining us today. So to start off, I'm going to cover our agenda initially here. What is a customs bond, the first area we'll cover. We'll also cover how to calculate and determine the bond amounts. What is bond saturation and sufficiency level, how bond stacking exposure impacts the underwriting process. We'll also cover how antidumping and countervailing duty activity impacts the underwriting process and what you can do to reduce your underwriting risk. So to start off, what is a customs bond? A customs bond is a third-party contract between U.S. Customs, the surety and the importer. The bond is established to protect the revenue of the United States and guarantees compliance with import regulation. The third-party agreement between customs, the importer and the surety is really a legal agreement that if the importer fails to meet their obligations to U.S. Customs such as pain duties, taxes and fees, customs could seek payments from the surety on behalf of the importer up to the full bond amount. So if the surety approves a bond for $50,000 for an importer, and if the importer fails to meet their obligations to customs and fails to pay the duties, taxes and fees, Customs would send a demand for payment to the surety up to the full bond amount of $50,000. Please keep in mind that the surety does have legal rights to pursue refund for those costs if they are ever placed in a position where they would have to pay customs on behalf of the importer. So there are many type of bonds, activity codes, but for the sake of time, I will cover our most commonly requested bonds. So the first activity code is importer bond, which is Activity Code 1. And this is the most commonly type of Customs bond, and this type of bond allows an importer to import merchandise to bring their goods into the United States. This bond type also covers and satisfies the requirements of airport security and ISF filing. Also a foreign trade zone bond. Activity Code 4, a foreign trade zone is a secured area under U.S. Customs supervision that is generally considered outside of the United States territory for commence purposes upon activation. So an importer could bring in their merchandise or their product into a firm trade zone and maintain those goods within the zone until they are ready to bring it into market. So a foreign trade zone bond is commonly requested as well, a commonly requested fund type and bond activity is activity Code 1A, which is a drawback bond. A duty drawback bond is a process or a bond that allows an entity, typically an importer to file a claim for reimbursement up to 99% of duties, taxes and fees that they have paid on goods that they have imported into the United States. And for some reason, they have decided to export the goods or destroy the goods. So they would file a drawback claim to customs, to seek refund of the duties paid. So there are 2 types of bonds. So the continuous bond and a single transaction bond. And for the sake of time, I will be focusing mainly on the continuous importer bond, and we'll cover a single transaction bond at this point. So a continuous importer bond covers all activity over a 12-month period. The bond amount is calculated by taking 10% of the total duties, taxes and fees in a 12-month period to determine the minimum bond amount required. So for example, if you are anticipating paying duties, taxes and fees of $550,000, you would need a $60,000 bond, which covers 10% of that $550,000. A single transaction bond is a bond that is issued on a shipment-by-shipment basis. And this type of bond is typically not recommended because it could be pretty expensive and also a lot goes into determining the bond amount with a single transaction bond. So for example, calculating the way that you would determine a single transaction bond is by calculating the merchandise value and adding the duties and taxes and fees. So for example, if you have a shipment with merchandise value of $100,000 and the duties, taxes and fees on that shipment is $10,000, you would need a bond of $110,000. And so the merchandise value dramatically impacts the bond amount, so we typically don't recommend a single transaction bond for an importer that has over 3 shipments per year. And also if there is any PGA or FDA activity on the entry, we typically would not recommend a single transaction bond. So let's look at how you can determine your bond amount. Okay. So I cover that to -- the role is that when you're requesting a bond, Customs requires -- the bond is going to be able to cover 10% of the total duties, taxes and fees for a 12-month period. So this is the Customs bond formula. And there is a Reviewer 1 and an analytical reviewer, Reviewer 2 as well. But for the sake of time, I'm going to focus on Reviewer1 at this point. So again, just a little more information. duties, taxes and fees for a 12-month period, multiplying that by 10%, you would determine the minimum bond amount required. For continuous importer bond, the minimum bond amount starting point is $50,000, and that increase -- you can increase the bond in increments of $10,000. So $50,000, $60,000, $70,000 and $80,000. But once we reach $100,000, the bond can only increase in increments of $100,000. So $100,000, $200,000, $300,000, et cetera. So let's look at some numbers. Let's say that you are a new importer looking to secure a new bond. What you would want to do is forecast for the next 12 months. You've looked at your numbers, you looked at your business and you're anticipating. You're forecasting for the next 12 months, August 2024 through July of 2025. And based on your forecast, you're anticipating paying $3 million and $33,000 and some change in duties, taxes and fees. Based on customs bond formula, we need to ensure that the bond we request is going to support 10% of the duties tax fees. So 10% of the $3 million and $33,000 and some change. It's going to give us a little over $300,000. The bond minimum in this case would be $400,000. I would typically always recommend going up to the next bond amount of $500,000 for potential new business opportunities that may arise within the next 12 months. This way, if you have new business that comes up, you don't need to worry about increasing your bond midterm. Ideally, the expectation is that once a bond is filed and approved, it will remain on file and remain sufficient for a full 12-month period until it is up for renewal. Now let's look at an example as if you were renewing your bond. Let's say, you have a $500,000 bond, continuous importer bond, on file and your bond is up for renewal. Typically, your Customs bond broker who will reach out to you 2 to 3 months prior to the bond renewal date and provide you a list of documents that the surety will lead to complete the underwriting process. What are the next steps that you should take? The first step is to determine your existing bond saturation level. And the way you would want to do that is look at the last 12 months of duties, taxes and fees paid. The reason why this is really important is because customs, once a bond is filed for an importer, customs will review the bond saturation level on the first week of every month. So they will check to see if your bond -- your existing bond amount is able to cover 10% of the total duties, taxes and fees on file with Customs. So looking at the last 12 months, your numbers based on the past 12 months of duties, taxes and fees paid, you've seen that you've paid $3 million, $33,000 and some change. So how do you determine your bond saturation level take that 10% of the duties, taxes and fees paid and divide that by your existing bond amount. So $303,227.72 divided by the bond amount of $500,000. That will give us the bond saturation level. So your bond saturation level at 62% -- at 61% is in good standing. So that is reassuring that your existing bond for $500,000 is still sufficient because it has not reached 100% or gone over that 100% saturation. The goal is always to keep that bond saturation level below 100%. Now that we have determined your bond saturation level is in good standing, the next step would be to forecast for the next 12 months. So you'll want to look at the last 12 months of duties, taxes and fees paid like we've already done and also determine what your business is looking like for the next 12 months? Because remember, once a bond is filed, it needs to be sufficient every month that Customs reviews the bond saturation level. So what you'll do is take your last 12 months of duties, taxes and fees and also add in your forecast for the next 12 months. So over here, I've got the bond calculation here of the total duties, taxes and fees multiplied that by 10% to give us our bond a minimum of $303,000. Of course, we can't get a bond for $303,000, so the bond amount, in this case, would be $400,000. That would be the bond minimum. But your current bond is at $500,000. So you determine that your bond saturation level is at 61%. As you forecast for the next 12 months, let's just say everything is kind of -- your business is looking pretty the same as the last 12 months, you plug in your numbers. And you see that for the next 12 months, your bond saturation level is going to be within that 61% saturation, which is great because your existing bond of $500,000 is going to be supportive for the next 12 months. Let's say that you are forecasting, and you know that you are going to pay $5 million in duties, taxes and fees on November 2024. So that $5 million changes the calculation for the last 12 months. As an older month falls off the report, a new month gets added on. So the new bond or the new number for the 10% is over $760,000. In this case, we see that the bond saturation level has surpassed the 100% saturation. So in this case, you would want to look at your existing bond and see what would happen if you increase that bond to $700,000. Still, $700,000 is not going to be supportive of the next 12 months of duties, tax and fees because you have paid $5 million in duties, taxes and fees at some point within that 12-month period. Again, so next thing is to continue to look at the next bond amount, let's say, we put in -- we request a $900,000 bond at time of renewal. You can see that your bond saturation level has dropped below that 100% saturation. So this is the goal of forecasting and determining if your existing bond amount is sufficient to cover the next 12 months of duties, taxes and fees paid and the best time to forecast and determine if the bond amount is supportive is at time of renewal. That is the ideal time to make any changes to your existing bond amount. All right. So back to our slides here. Now that you've determined if you're going to keep your bond amount at $500,000 or if you're going to increase it, be prepared to provide bond application. If your commodity is subject to antidumping or countervailing duty, there is an antidumping questionnaire the surety will need to review. Also, financials are required for review depending on the bond amount as well. So if you're renewing that $500,000 bond, or requesting a $900,000 bond financials, including income statement, balance sheet, statement of cash flow will be required for review. Once all of the documents have been obtained, they'll be submitted to the surety for review to review their bond risk and exposure. Because remember, when a surety issues a bond, they are taking liability up to the full bond amount if the importer fails to meet their obligations to Customs. So they go through a bond underwriting, financial review process to determine if the financials are supportive of the bond amount. At times, if the financials are deemed unsupportive or if there's antidumping activity that will be filed under the bond collateral will likely be required for approval, and that is a process that Customs bond broker and expeditors can help with next steps. So once your bond is approved by the surety and filed with Customs, there is an e-bond confirmation that will be generated. The e-bond confirmation is not a customs Form 301. It looks a lot like the Customs Form 301, but that form no longer exists, but the surety can provide an e-bond confirmation that looks just like the form on your screen. Once an e-bond or a bond is filed, let's say you filed the $500,000 bond in July of 2023, and upon renewal July of 2024, you decide that the $500,000 bond is sufficient and you're not going to make any changes. The surety goes through the underwriting process confirms that the bond is approved for renewal. A new e-bond confirmation does not get generated. The same bond amount will remain on file with customs unless the bond amount is changed or tax ID has changed as well. All right. And so now I will turn it over to Brittany.

Thank you, Roma. I appreciate all of your time today. I'm glad to talk to you for a moment about this. As Roma said, we're going to spend the majority of our time -- Roma, could you pause -- thanks. We're going to spend the majority of our time talking about continuous type 1 bonds for importers. These are not only the most common, they are oftentimes the most confusing for imports. So I'd like to start just by showing you a quick video to talk about saturation, saturating a bond. Roma talked about it a little bit. So I want to give an example. We've got an importer that's requested a $500,000 bond, and this video illustrates the process for determining an appropriate bond amount and avoiding insufficiencies from Customs. Go ahead. [Presentation]

Okay. Next slide, please. So I want to spend my time talking about the sureties perspective, and I'm going to start off by talking about bond stacking. Bond stacking is a major concern for sureties. Stacking is the number of open or unliquidated bond periods an importer has at any given time with the surety. So just because the bond has been terminated or renewed doesn't mean that is the end of that volume period. Even if there is only one $5 entry still unliquidated the surety is on the hook for the full bond limit regardless of the amount of the entry. Normal general consumption entries liquidate in about 10 months. So when a bond renews, that new bond period is stacked like a LEGO on top of the old bond period until all of the entries made during the old bond period are liquidated. 90 days after that last liquidation date, that old bond period is considered to be closed and the LEGO would be removed from the stack. However, if you obtain multiple bonds in a short period of time, that stack is just going to continue to grow. So let me show you an example. Next slide, please. We have an importer that's obtained a $400,000 bond in February of 2020. They conducted their business and then in August of 2020, they received an inefficiency letter from customs. Basically, customs monitor their activity and deemed that they had paid more than $4 million in duties, taxes and fees, so their $400,000 bond was no longer supportive of their activity. Customs advised that they needed to increase to a minimum of $500,000, which is what they did in September of 2020. Next slide. If we fast forward 3 months, they receive another insufficiency, advising they needed to obtain another increased bond. This time, the minimum bond amount was $800,000. So they complied and they filed an $800,000 bond. Next slide. At this point, they've received multiple insufficiencies. In less than a year, they've opened up 3 bond periods totaling $1.7 million in exposure to the surety. So they go about their business. And then in June of 2021, they received yet another insufficiency letter with a minimum bond limit of $1.5 million. This time, they discussed with their broker and determined that $1.5 million bond may not cover their activity for a full 12-month period. So they filed a $1.8 million bond. In just 17 months, this importer has opened up exposure to the surety of $3.5 million. Depending on the goods they are importing, it is possible that all 4 of these bond periods will still be considered open exposure. At the very least, the last 3 bond periods will be unliquidated, meaning the surety would be on the hook for $3.1 million in liability. Next slide. What you have to keep in mind with stacking is that the liabilities of the surety continues to stack on top of itself each time a bond renews or a new bonus file until all the previous entries have liquidated. So when a new bond request is made, the underwriters are not only looking at the liability for the specific request, but the liability for this request plus any previous liability. When underwriters receive a new bond request, they are reviewing everything about the importer, the commodities they bring in, the countries of origin, how long they've been in business, their claims history and all sorts of other things. In order to review those files, underwriters are going to request the documents that Roma mentioned in application, financial statements, antidumping questionnaires and so on. They are looking for financial strength and stability from the importer. So when the financials are requested, the underwriters are looking at how quickly an importer would be able to satisfy claims, those they may have now as well as any they may be issued in the future. Keep in mind, the bond is not insurance like your home insurance policy. The bond will respond, for example, pay in the event that an importer can't or won't pay within Customs' time frame. But the surety will seek reimbursement from the importer if they are forced to pay. So underwriters are looking to determine the likelihood of having to pay claims and how quickly the importer might financially be able to do so. They look at the income, equity, working capital, cash flow and debt to determine how healthy the importer is financially. If the review is supportive of the liability, then the importer is good to go. However, if the review shows the importers current situation is not supportive of the liability, the surety will see collateral to secure their liability. Next slide. So I want to go into a little more detail about bond sufficiency, basically how to determine the appropriate bond limit to support the importers activity. roma did go over this calculation, but I wanted to go into a little more detail. This slide shows how customs calculates on efficiency, and I will quickly go over all 5 elements. We primarily focus on the first element, A, the bond limit that must cover 10% of the duties, taxes and fees for the last 12 months. However, it's important to be aware of the other 4 elements when it doesn't make sense why an importer is receiving an insufficiency if their volume hasn't increased and they're not subject to a new tariff. B and C incorporates increased duty bills. At the time of entry, the import remits an estimate of the duty tax and fees based on the HTS codes. After Customs has reviewed the entry, they will liquidate the entry with no change, a change decrease or a refund or a change increase, resulting in an increased duty bill. So, B includes 10% of unpaid duty bills under 210 days and protested or not protested. And C includes delinquent bills over 210 days or denied protests dollar for dollar. D includes unpaid debit vouchers dollar for dollar. A debit voucher is issued when duty bills are paid by an importer and return for insufficient funds. Basically, the importer paid their bill, but their check bounced because they didn't have enough funds in their account to cover the payment. E adds bills paid by the surety dollar for dollar. So when you add up A through E, you'll get the minimum required bond amount customs to consider the bond to be sufficient. So when customs issues an inefficiency, they indicate the minimum bond limit that they will access, but that does not take growth into account. So this calculation cannot be the end of the conversation. Forecasting the anticipated duties, taxes and fees that will be paid over the next 12 months is essential in determining an appropriate by limit. As Roma mentioned, it is important for importers to work with their brokers to talk about growth plans and any large projects that may cause spikes in import volumes. Be proactive for any tariff changes. If a bond is close to being saturated, proactively working to increase the bond will avoid the disruption of a formal insufficiency allowing more time for the importer to have their documents reviewed and a new bond filed. Keep in mind, the time frame doesn't restart when a new bond is filed. Customs is always looking back for a full 12-month period, regardless of the surety or the bond number. So switching sureties won't help the importers who have to increase their bond. Next slide, please. I'd like to introduce you to my friend, Lima, who has an extremely long tail kind of like antidumping and countervailing entries. If an importer brings in goods subject to antidumping or countervailing, this is additional risk to the surety. There are hundreds of antidumping and countervailing cases, everything from solar panels to aluminum extrusions, honey to bedroom furniture, can be subject to antidumping and/or countervailing duties. So antidumping entries, or ADD, are additional disease placed on certain types of merchandise based upon finding that foreign manufacturers from a particular country or countries dump or sell their goods in the United States at prices less than fair market value, thereby entering the U.S. industry. Countervailing duties, or CVD, are additional duties placed on certain types of merchandise based upon a finding that forms government provides subsidiaries or tax breaks to manufacturers that export goods to the United States, thereby ensuring the U.S. or domestic industry. ADD and CVD are meant to kind of level the playing field for domestic manufacturers. And products can be subject to ADD, CVD or in some cases, both. From a surety perspective, ADD and CVD entries present greater risks and our concerns are twofold. First, there is the stacking concern. ADD and CVD entries remain unliquidated for a longer period of time while the Department of Commerce will use the case. There have been ADD cases that have taken over 20 years, we decided and as long as those decisions are still being made, those entries remain unliquidated. This is where that tail comes in. Surety will have liability up to the bond limit for each of the volume periods that have unliquidated entries. The second concern is claims concern. While the Department of Commerce is reviewing, they are often changing the duty rate for these products. Each time the rate has changed, there is a risk of claims during that period of review. So the more time it takes for the case to be completed, the more time is available for claims to be issued, given to be imported and their goods. And with that, I will turn it back over to Roma to wrap this up.

Thank you, Brittany. Stephanie, would you like to share a little bit about the slide as well?

Absolutely. So as you have probably seen us before, we get our webinars accredited with the NCBFAA Educational Institute or NEI is their acronym. So if you have a CS certification, you probably know about it. And there is a requirement to collect hours, so you can go ahead and use this. I think some of you guys also know that Customs is going to be having additional hours required for licensed customs brokers. That is not in effect yet. So this will affect you, but we are working to make sure that we meet that requirement as well in the future. So otherwise, Roma, if you are game, and Brittany, I think there's a couple of questions popping in here that I'll go ahead and toss at you guys. Are you game for this?

Sounds good.

Absolutely. And if other people have questions that you guys want, Roma and Brittany and other folks on the call to answer live, feel free to throw those in as well right now. So let's see here, which ACE reports do you recommend an importer review and maintain to ensure they have visibility to all unliquidated entries even those outside the 12-month period? Do you guys even know those names off the top of your head? I'm really putting you on the spot here.

I know that entry activity can be pulled from ACE, but I don't know that there are different types of report within ACE. So I'm not too familiar. Brittany, are you familiar?

We aren't. Unfortunately, the surety does not have visibility to the ACE portal for the importers. So we don't actually even know what is available. Amy, are you by chance on the call that you might have some information about that?

Amy here, but I don't because like you said, we only get a tiny sub-slide for surety reports, which do not include entry reports at all.

I'll actually answer this a little bit. So I think pretty much an entry summary report will allow you like an ES003 would probably be sufficient. You can go back more than 12 months, of course. You could potentially, if you're a next level on your ACE reporting, put a filter on to only do unliquidated entries. But it is -- I don't think they just have a canned report that is just unliquidated unfortunately. So now I'll go look at that as well. Let's see here. How about Peggy's question. Would you please discuss the impact of unliquidated value reconciliation filings on the saturation calculation?

So a recon rider that is, I'm assuming that's what she's talking about, a recon rider allows the importer to basically guess what their duty [ unliquidated ] is going to be, and then they reconcile that every month, and they just pay that amount after the reconciliation. If the entries are unliquidated, the duty amount is still out there as open exposure, excuse me, for lack of a better word, from the surety's perspective. So as long as the entry is unliquidated, it really doesn't matter if it's included in a recon calculation, as long as the entry is on liquidated customs has not issued liquidation instructions at this point, it's still considered to be open exposure to the surety.

Thank you very much, Brittany. Let's see here. Kimberly, it looks like you raised your hand. If you have a question, you can go ahead and throw it in the chat box, and I'll ask it on your behalf. But we do have a question from Brian here. So if a company is revising its forecast and determines it is likely to have its bond become saturated, how soon before saturation should the company increase its bond?

Roma, do you want to take this one?

Well, I was going to add, we -- as the bond broker, we do have bond saturation at setup. So once a bond saturation level to reach above 80%. We do start that conversation with our bond customers to see what their forecast will be. But I typically don't typically recommend increasing the bond until we've reached that saturation depending on when the bond renewal date is. But Brittany, if you'd like to add to that as well.

Yes. I think generally speaking, let's say you get a new customer and now your import volume is going to increase dramatically and you're midway through your bond period. I don't think you need to actually process anything until you're closer to that 90%, like Roma mentioned, but you need to get the process started, thinking about what is an appropriate bond limit based on your new anticipated duty out. So get that conversation with your broker started and then they can let you know what the underwriting requirements would be. as far as documentation and what the review is going to happen. The reason I say that is because depending on the bond limit you're going to need, sometimes that review can take several days a week, maybe even longer. So it's just you want to make sure that you're not stuck with a bond that you can't use if you're bond is grossly insufficient, Customs will just turn it off because they get mad because you didn't increase your bond in time. So it's important that you are proactive in at least kind of getting the groundwork laid so that when it is time to process that increase you're ready to go and the review can be shorter if it does need to be rereviewed by the surety.

Thank you. You've got a thumbs up, Brittany. Nailed it. Thank you so much. Okay. So I don't see any other questions coming in. So I think, Samantha, I'll turn it back over to you.

Right. And obviously, if you had another question pop in your head, just right as we're going through these. You're welcome to throw them in. Were there any that you all as panelists saw that maybe we answered in the background that you felt like we needed to touch on? Or are there any specific key elements you guys want to call out before we wrap up?

I don't really have anything. Amy, from the sureties perspective, do either of you have anything you'd like to add?

No, I think you guys covered everything very well.

Yes. I agree with Amy.

Yes. So Samantha, I would like to add that we will have a list of resources available as well at the end of the presentation. A couple of resources from Expeditors side with just to learn a little more about what Customs bonds are, bond saturation, it's a short 7- to 10-minute read, same from Avalon and some additional documents available with customs. So there's a guidelines set by Customs and there's a link available to that, the bond formula as well and then also linked to search any anti-dumping countervailing cases that you may be looking for.

Great. Thank you. I thought we had another question pop in, but just one person just providing appreciation for all of the information you guys have offered here today. So very great job for our speakers. We will also include the links here that you see on the landing page, where you can find the presentation slides and the recording of this webinar and the information we went over today. Again, you will receive that for anybody that may have joined late. We will send you via e-mail a survey to complete just to give us feedback on the value of the content presented today and any information or thoughts you might have on future topics that you'd like to see covered. So again, that will come to you typically within the next hour as we get all of this content ready to be sent out to you, and we appreciate your feedback there. to all of our speakers, thank you so much for providing the valuable content today, and thank you all for joining. We'll let you guys have a little bit of time back in your schedule.

Thank you. Have a great day.

Thank you, everybody.