iShares Trust

·  iShares MSCI KLD 400 Social ETF | DSI | NYSE Arca

·  iShares MSCI USA ESG Select ETF | SUSA | NYSE Arca

·  iShares U.S. Basic Materials ETF | IYM | NYSE Arca

·  iShares U.S. Consumer Discretionary ETF | IYC | NYSE Arca

·  iShares U.S. Consumer Staples ETF | IYK | NYSE Arca

·  iShares U.S. Financial Services ETF | IYG | NYSE Arca

·  iShares U.S. Financials ETF | IYF | NYSE Arca

·  iShares U.S. Industrials ETF | IYJ | Cboe BZX

Table of Contents

Market Overview

iShares Trust

Domestic Market Overview

U.S. stocks declined for the 12 months ended April 30, 2022 (“reporting period”), when the Russell 3000^® Index, a broad measure of U.S. equity market performance, returned -3.11%. Equities advanced early in the reporting period as high consumer spending drove robust economic growth and authorities eased most remaining coronavirus pandemic-related restrictions. Increased economic activity led to strong corporate earnings as companies reaped the benefits of the recovery. However, significant challenges emerged in the second half of the reporting period which erased earlier gains, including high inflation, rising interest rates, slower economic growth, and the impacts of Russia’s invasion of Ukraine.

The U.S. economy grew briskly over the final three quarters of 2021, powered primarily by consumers with strong household balance sheets. Record-high personal savings rates allowed consumers to spend at an elevated level throughout much of the reporting period, releasing pent-up demand for goods and services. Hiring increased as businesses restored capacity, and unemployment decreased substantially, falling to 3.6% in April 2022 — only marginally higher than the pre-pandemic rate of 3.5% in February 2020. However, growth stalled in the first quarter of 2022, and the economy contracted amid lower inventory investment and an inflation-driven decline in consumer sentiment.

The rapid increase in consumer spending drove a significant rise in inflation. Supply chains for many goods were disrupted by the pandemic and could not quickly adapt to the rapid rebound in demand. In one prominent example of this dynamic, a global shortage of semiconductors created bottlenecks in the production of many goods, including automobiles. Consequently, the price of used cars rose sharply during the reporting period and played a notable role in overall inflation. Oil prices also rose significantly as demand increased and a lack of investment constrained the supply of oil. The strong job market led to higher wages, particularly at the lower end of the market. These factors drove prices higher in many areas of the economy. By the end of the reporting period, the consumer price index, a widely used measure of prices in the U.S., grew at the fastest rate since 1982.

Rising inflation led to a shift in policy from the U.S. Federal Reserve Bank (“Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy in the second half of the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities and discussed plans to begin reducing its balance sheet by selling bonds later in 2022. In March 2022, it raised short-term interest rates and indicated that further increases could be necessary. Interest rates rose significantly in anticipation of further tightening, leading to higher borrowing costs for businesses.

Russia’s invasion of Ukraine in late February 2022 led to substantial disruptions to the global economy and increased uncertainty in financial markets, exacerbating inflation and weighing on U.S. corporate earnings. The invasion was met with widespread condemnation and sanctions imposed by many countries on the Russian state, businesses, and individuals. As Russia is a top producer of both oil and natural gas, global supply concerns led to sharp volatility in U.S. energy markets.

Investment Objective

The iShares MSCI KLD 400 Social ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI KLD 400 Social Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

Portfolio Management Commentary

Investor interest in the environmental, social, and governance (“ESG”) attributes of companies continued to grow during the reporting period as ESG investments reached a record level in 2021. The impact of the COVID-19 pandemic on public health was a motivating factor for many businesses to reexamine their ESG policies, and the pandemic’s disruption led many managers to regard environmental goals as more achievable. In August 2021, the Securities and Exchange Commission (“SEC”) approved a rule change requiring disclosures to encourage diversity on the boards of public companies. A rule proposed by the Department of Labor in October 2021 would expand the ability of retirement plan sponsors to offer ESG products, reversing the stance of the prior administration. And in March 2022, the SEC proposed a rule to require climate-related disclosures from public companies.

In this environment, the index reported negative performance for the reporting period. The information technology sector was the leading detractor from the Index’s return, driven primarily by the information technology services industry. Digital payments companies were pressured by inflation, which led consumers to reduce their spending, and by supply chain disruptions, which negatively impacted cross-border payments. The communication services sector also faced headwinds, particularly the media & entertainment industry. The resumption of in-person activities dampened demand for home entertainment providers.

In terms of relative performance, the Index outperformed the broader market, as represented by the MSCI USA Investable Market Index. Relative to the broader market, the ESG selection process leads to relatively minor overweight and underweight positions in stocks with higher or lower ESG characteristics, respectively. Consequently, the Index achieved an MSCI ESG quality score of 8.5 and an MSCI ESG fund rating of AA. Security selection in the consumer discretionary and communication services sectors were the largest contributors to the Index’s relative performance, while an underweight to the energy sector detracted from results. The Index’s largest overweight positions were in the information technology and consumer staples sectors and the largest underweights were in the healthcare and financials sectors. Those allocations contributed modestly to the Index’s return on a net basis.

Portfolio Information

Investment Objective

The iShares MSCI USA ESG Select ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI USA Extended ESG Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

Portfolio Management Commentary

Investor interest in the environmental, social, and governance (“ESG”) attributes of companies continued to grow during the reporting period as ESG investments reached a record level in 2021. The impact of the COVID-19 pandemic on public health was a motivating factor for many businesses to reexamine their ESG policies, and the pandemic’s disruption led many managers to regard environmental goals as more achievable. In August 2021, the Securities and Exchange Commission (“SEC”) approved a rule change requiring disclosures to encourage diversity on the boards of public companies. A rule proposed by the Department of Labor in October 2021 would expand the ability of retirement plan sponsors to offer ESG products, reversing the stance of the prior administration. And in March 2022, the SEC proposed a rule to require climate-related disclosures from public companies.

The index experienced negative performance for the year. The communications services sector detracted the most from the Index’s return, driven primarily by the media & entertainment industry. The resumption of in-person activities dampened demand for home entertainment providers. The industrials sector also declined, as supply chain disruptions due to semiconductor shortages weighed on earnings in the capital goods industry. Digital payments companies in the information technology sector were pressured by inflation, which lowered consumer spending, and supply chain complications, which negatively impacted cross-border payments.

On the upside, the consumer staples sector gained, driven primarily by the food products industry. Consumer staples companies are relatively resilient to inflation, as their products are necessities that consumers are hesitant to trim from household budgets. The energy sector was another contributor to the Index’s return amid rising oil and gas prices.

In terms of relative performance, the Index underperformed the broader market, as represented by the MSCI USA Index. Relative to the broader market, the ESG selection process leads to relatively minor overweight and underweight positions in stocks with higher or lower ESG characteristics, respectively. Consequently, the Index achieved an MSCI ESG quality score of 9.6 and an MSCI ESG fund rating of AAA. Stock selection in the healthcare and industrials sectors and an underweight to the energy sector detracted from the Index’s relative performance.

Portfolio Information

Investment Objective

The iShares U.S. Basic Materials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the basic materials sector, as represented by the Russell 1000 Basic Materials RIC 22.5/45 Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

Portfolio Management Commentary

Stocks of U.S. basic materials companies rose moderately during the reporting period. Metals and mining companies in particular benefited from high prices for commodities. Prices for steel and gold surged late in the reporting period as Russia’s invasion of Ukraine and subsequent Western sanctions disrupted trade flows and increased global economic uncertainty.

The U.S. steel industry contributed the most to the Index’s return amid record high steel prices. Demand for steel outstripped supply for much of 2021. Steel mills, which initially were slow to ramp up after pandemic-related shutdowns, struggled to meet growing demand during the economic recovery even as production neared full capacity. However, steel prices declined sharply in early 2022 after demand from major manufacturers such as automakers and appliance companies suddenly weakened. Supply concerns prompted a rebound in steel prices late in the reporting period as the war in Ukraine curtailed the import of key steel-making products such as pig iron, which is mixed with scrap iron to make steel. Steel company stocks rallied to record highs amid surging corporate profits, increased dividends to shareholders, and announced plans to buy back stocks.

The U.S. gold industry also boosted the Index’s performance. Gold prices retreated from record highs reached in 2020 during the pandemic but strengthened toward the end of the reporting period amid rising inflation rates and geopolitical uncertainty stemming from Russia’s invasion of Ukraine. Higher gold prices sent stocks in gold mining companies soaring despite rising production costs. Production disruptions stemming from coronavirus-related shutdowns escalated costs for gold mining companies. Cost inflation related to labor, energy, and materials also partially offset companies’ gains from higher gold prices.

Portfolio Information

Investment Objective

The iShares U.S. Consumer Discretionary ETF (the “Fund”) (formerly the iShares U.S. Consumer Services ETF) seeks to track the investment results of an index composed of U.S. equities in the consumer discretionary sector, as represented by the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

Portfolio Management Commentary

U.S. consumer discretionary stocks declined for the reporting period, led by declines in companies that posted substantial gains during the early part of the coronavirus pandemic. Rising inflation and corresponding interest rate increases by the Fed constrained consumer spending, casting doubt on the economy’s trajectory and weighing on the consumer discretionary sector.

Within the sector, the internet and the direct marketing retail industry detracted the most from the Index’s return. Online marketplaces for consumer goods, whose stocks surged early in the pandemic, declined. The industry’s largest deliverer of goods sold online reported its first quarterly earnings loss in seven years as overall online sales of U.S. retail goods fell steadily late in the reporting period. That sales decline coincided with rising inflation and the resumption of more in-store shopping by consumers, as pandemic restrictions eased and COVID-19 vaccination rates increased. Stocks in the consumer durables industry also declined amid challenges in production and supply chains, which negatively affected inventories in the textile and apparel industry.

The communication services sector also detracted from the Index’s return. In the media and entertainment industry, many companies sought to expand their video streaming services, but several of those companies, whose stocks surged early in the pandemic, encountered shrinking subscription growth in their streaming businesses throughout the reporting period.

On the upside, companies within the consumer staples sector contributed to the Index’s performance, benefiting broadly from the easing in pandemic-related restrictions. In particular, large hypermarket and supercenter chains advanced amid an increase in revenues and profits as shoppers increasingly returned to their stores throughout the reporting period.

Portfolio Information

Investment Objective

The iShares U.S. Consumer Staples ETF (the “Fund”) (formerly the iShares U.S. Consumer Goods ETF) seeks to track the investment results of an index composed of U.S. equities in the consumer staples sector, as represented by the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

Portfolio Management Commentary

Consumer staples stocks in the U.S. advanced for the reporting period, outpacing the broader equity market as coronavirus pandemic restrictions eased, boosting demand for food, beverages, and other basic retail goods as shoppers returned to stores. As market volatility rose, investors turned to consumer staples, which are traditionally regarded as relatively steady businesses in volatile market environments.

The food, beverage, and tobacco industry contributed the most to the Index’s return. Soft drink manufacturers drove contribution amid robust demand, which boosted their revenues and profits. These companies generally remained upbeat about their growth prospects and financial outlooks, as they were able to raise prices to counteract surging raw material costs, suspension of business in Russia, and expectations of a slowdown in demand from Chinese markets fighting to contain the coronavirus pandemic. Tobacco companies also contributed to the Index’s performance. Sales of cigarettes continued their long-term decline, but tobacco firms compensated by continuing to raise prices, and investors were attracted to the relatively significant dividends these firms offer.

Food products companies contributed meaningfully to the Index’s performance, benefiting from the return to more typical retail shopping patterns. Despite advancing inflation, sales volumes of many well-known, household brands increased, raising profits. Sales of packaged foods and meats, including items ranging from candy to fresh chicken, increased, even as more restaurants reopened for regular business. Stocks of agricultural commodities firms also advanced, benefiting from increased demand and the disruption of crop shipments due to the war in Ukraine.

In the healthcare sector, healthcare distributors contributed notably to the Index’s return as demand for Covid-19 vaccines and tests boosted earnings. The consumer discretionary sector also contributed, as burgeoning demand for electrical vehicles supported auto manufacturers.

Portfolio Information

Investment Objective

The iShares U.S. Financial Services ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financial services sector, as represented by the Dow Jones U.S. Financial Services Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

Portfolio Management Commentary

U.S. financial services stocks declined significantly during the reporting period even as interest rates rose, which typically benefits companies that provide lending services. The slowing economy weighed on financial services companies as the impact of rising inflation diminished consumer and investor confidence, despite solid profits throughout much of the reporting period. The war in Ukraine exacerbated inflationary concerns, while also negatively impacting revenues.

Banks were the largest detractors from the Index’s return, as growth across multiple business areas softened. Investment banking revenues fell amid the worsening macroeconomic climate, as the pipeline for new initial public offerings slowed to its lowest tally in years. Trading revenues decreased as the Fed scaled back its pandemic-era asset purchases, though they later recovered as market volatility increased amid geopolitical tensions. Many banks also collectively set aside billions of dollars to offset potential losses from the Russia-Ukraine conflict and broader economic turmoil; these moves were reported as credit charges to the banks’ balance sheets, which reduced income. Additionally, inflation and labor shortages led to increased operating costs.

The diversified financials industry was also a notable detractor from the Index’s return. Despite increased profitability, asset managers felt the impact of reduced inflows toward the end of the reporting period, as rising inflation and the conflict in Ukraine sapped investor enthusiasm.

Companies within the data processing and outsourced services industry that process payments also weighed on the Index’s performance. Growth in cross-border transactions and digital payments, both linked to a post-pandemic recovery in travel volumes, were offset by the impact of weaker earnings outlooks, regulatory investigations, and decisions from large vendors to stop accepting some services in select regions.

Portfolio Information

Investment Objective

The iShares U.S. Financials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financials sector, as represented by the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

Portfolio Management Commentary

U.S. financials stocks declined during the reporting period. The inflation rate rose to a 40-year high due to the coronavirus pandemic and rising energy prices and was further exacerbated by the Russian invasion of Ukraine. Yields on U.S. Treasuries rose significantly, and investors grew concerned that actions by the Fed to counter inflation, especially raising interest rates, will weigh on the economy.

While an increasing interest rate environment generally supports banks, bank stocks nonetheless detracted the most from the Index’s return. Bank profits fell as volatile equities markets led to fewer stock listings and acquisitions. Additionally, the ongoing war in Europe threatened to negatively impact global economic activity. Bank stocks were also constrained by the Fed’s reduction and eventual halt of asset purchases. Investor concern also rose that higher inflation will reduce investment and borrowing by businesses and increase loan defaults. In the diversified financials industry, the value of assets under management declined due to exposure to Russia and market volatility, raising the possibility of reduced performance fees.

The information technology sector was also a detractor from the Index’s return. Stocks of payment processing companies in the IT services industry declined amid investor concern about the European economy, reducing financial transaction volumes. Additionally, companies suspended services to Russia to comply with government sanctions, reducing revenues.

On the upside, the real estate sector contributed meaningfully to the Index’s performance. In the specialized real estate investment trusts (“REITs”) industry, the ongoing rollout of 5G technology benefited companies that rent space on towers for wireless communication equipment. Similarly, continued growth in global demand for data centers, accelerated by the pandemic, drove strong revenues of REITs that provide space in online data storage facilities.

Portfolio Information

Investment Objective

The iShares U.S. Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the industrials sector, as represented by the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 21 for more information.

Expense Example

Portfolio Management Commentary

U.S. industrials stocks declined significantly during the reporting period as persistent supply-chain shortages and outbreaks of new COVID-19 variants led to a reduction in manufacturing activity. Persistent inflation and tighter Fed monetary policy raised concerns about an economic slowdown and its effect on corporate earnings growth.

The information technology sector detracted the most from the Index’s return, particularly the data processing and outsourced services industry. Companies specializing in payments technology faced headwinds as the pandemic-era surge in e-commerce activity slowed following the end of the stimulus measures and amid rising inflation. A decrease in cross-border transactions, along with the loss of enterprise clients who opted to develop their own payments software, led to a slump in payment volumes. Lower-than-expected earnings reports and an unanticipated reduction in estimated user growth rates drove additional selling of payment company stocks. Although companies sought growth by expanding into new areas, such as the cryptocurrency market, concerns over potential regulation sapped investor enthusiasm. Fears over increased competition from financial technology startups also negatively impacted well established companies in the industry.

In the industrials sector, companies in the capital goods industry, which includes manufacturers of heavy equipment and machinery, weighed on the Index’s return as production issues and supply-chain constraints impacted revenues. Sales volumes at industrial machinery firms fell, even amid strong demand, as a result of continuing raw material shortages. The rising prices of these materials and a withdrawal from the Russian market as a result of the invasion of Ukraine also created headwinds. Industrial conglomerates also detracted from performance. Labor shortages, rising freight costs, and the limited availability of materials reduced revenues and growth prospects.

Portfolio Information

About Fund Performance

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in a Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.