Don Blair: Which two numbers are you trying to reconcile here? The European orders were up 12% at the end of the fourth quarter on a reported basis and on a constant dollar basis, 11% fourth quarter revenues in Europe were up 12 and constant dollars were up 3%. As I understand the question it is, there was about an 8 point spread between constant currency and real dollars in Europe for the fourth quarter revenue, but there is only one point spread, so the future is between constant dollars and real dollars. And the key issue is actually in the base years. So the fourth quarter of ''06 our average euro-dollar conversion rate was about $1.20. So, when we were comparing the fourth quarter of ''07 we were at about $1.33 against the $1.20. The first quarter of ''07 rate is $1.27, so we are comparing against a stronger first quarter euro in the beginning of ''07 versus the beginning of ''08 than we were in the fourth quarter of ''07 versus the fourth quarter of ''06.

Mark Parker: I think I''m going to ask you to see if we can take this one to a different conversation, because I don’t think there is a fundamental principal involved here. I am not sure I can give you a good answer. I am not sure I entirely understand your question.

John Shanley (Susquehanna International Group): You gave us a good insight in terms of the China business, sales up in the quarter 29%. Could you give us the same level of detail from some of your other major international markets, specifically the UK, France, Germany and Japan?

Charlie Denson: I don''t have the revenue numbers in front of me. We''ve consistently talked about those markets as being challenges. Let me take the UK and France, to start with. Futures for both countries are up, so that''s a first force for a while and an encouraging sign. In France, we''ve got two successive quarters of revenue gains, year-on-year and so we are starting to see a little bit of movement there. Our inventory situations both at retail and obviously in Europe has improved over the last reporting period, and we feel very good about that. I feel like the French marketplace is probably in a little better shape with a little less volatility. But the UK market shape is obviously a bigger market and it has probably a little bit more volatility right now than France based on where we are at. But both markets are improving.

In Japan the marketplace again, inventory levels are in very good shape, our sell-throughs are starting to improve. So, things in Japan have never really been that bad. They just haven''t been as good as we''d like them to be, and I think Japan now is starting to come back in to focus with respect to what the potential of that marketplace really is reflected.

Don Blair: Just to give you the clarification - the UK was down, France and Japan were both up slightly in the fourth quarter and futures for all three of those markets are up going forward.

John Shanley (Susquehanna International Group): Sometimes you do and sometimes you don''t, but okay. Then can you clarify something for me? You mentioned the fourth quarter comps for the first quality retail stores were up 8%. Is that just Niketown or/and may be you can give us the comps for the outlet stores if it doesn''t include those retail outlets?

Don Blair: Well, the first quality stores for Nike include certain other concepts. For example, we have got some women store concepts out there in the US. So that will be all of our first quality, but the overall majority of that is Niketown and the comp store results for the outlet stores were a little more challenging, consistent with many of the other outlet retailers I have seen. But overall, our retail business, particularly on the first quality side has been very strong, and we think that''s reflective of the strength of the brand.

John Shanley (Susquehanna International Group): Well, the comps in the outlet store are negative?

Don Blair: It was a challenging set of comp numbers, so yes, they were negative.

Margaret Mager (Goldman Sachs): Focusing on the US market a little bit, is there any inventory in the channels that needs to be dealt with at all, and how do you keep that balanced when you''ve got clearly disappointing results at two important customers?

Charlie Denson: US inventory, the US marketplace, is probably our best managed marketplace around the world. We''ve got the most resources. We have a full blown outlet store piece for the puzzle in play. I think the key thing for us now is, again, as we continue to do well here in the marketplace and may be some of the other competition starts to struggle little bit, we''ve got to be disciplined and up to make sure that we keep an eye on the appropriate level of product in the marketplace. It''s something that we demonstrated we have the ability to do.

Margaret Mager (Goldman Sachs): How do you make sure you don''t over sell the customers, is there a component on that front?

Charlie Denson: Well, that''s a little bit of what we call the art and the science. That''s the art piece and making sure that we are gauging the appropriate level of demand in the market and putting the right amount of product in the marketplace to liquidate. Over the last six or seven years, we''ve developed a pretty good discipline around that and that''s something that we''ll continue to stay focused on and keep an eye on. At the same time, we still believe the US market place is the growth engine for us and for the most parts it''s pretty healthy right now. We got a little bit of challenge going on in the mall but overall all the channels of distribution are still pretty healthy. Overall, the entire marketplace is still healthy for us.

Margaret Mager (Goldman Sachs): Could you talk about your apparel business? You said Sports Essentials is driving it, but what else is going on in apparels, how is the women''s business doing? What is your view of performance apparel that has cotton in it if you could talk about that? Lastly, when will Olympic marketing start to kick-in in a significant way?

Charlie Denson: The thing that we feel great about right now in apparel is the move forward that we''ve made around performance apparel. Both in Nike Pro and the compression part of the business as well as Nike Sports Essentials. I think one of the things that we''ve started to understand is this idea of franchised type items that have been always a successful part of the footwear merchandising line plan, is now becoming a bigger and more important part of the apparel line planning as well. And Nike Pro and Nike Sport, essentials are two great examples of that type of execution.

Margaret Mager (Goldman Sachs): Is women’s doing well?

Charlie Denson: Yes, it is doing well. And then, I think it won’t be the advertising, we will start to gear up and back half a little bit. But with the games, it will be pretty much the summer timeframe when things will really heat up around the world. So, and we don’t have all of our Olympic plans in place or confirmed just yet. So, I am not prepared to really start to get any more specific on that.

Margaret Mager (Goldman Sachs): Could you talk about gross margin and how you are going to achieve higher gross margins over the next two to three years if you care to?

Don Blair: We’ve talked about that one on many previous occasions. Lean manufacturing, SKU productivity, raw material consolidation, sales SKU reduction, between footwear and apparel, we see benefits in all those areas. Lean is a big story, and about a year ago Lean was about 19% of our footwear this past year, we jumped up to about 42%. And we see that continuing to grow in ’08, and then also being leveraged into apparel.