Hello, and welcome to BD's Third Fiscal Quarter 2016 Earnings Call. At the request of BD, today's call is being recorded. It will be available for replay through August 11, 2016 on the Investors page of the bd.com website or by phone at 800-585-8367 for domestic calls and area code 404-537-3406 for international calls, using confirmation number 44231624. I would like to inform all parties that your lines have been placed on a listen-only mode until the question-and-answer segment. Beginning this call is Ms. Monique Dolecki, Vice President of Investor Relations. Ms. Dolecki, you may begin. Monique N. Dolecki - Becton, Dickinson & Co.: Thank you, Crystal. Good morning, everyone, and thank you for joining us to review our third fiscal quarter results. As we referenced in our press release, we are presenting a set of slides to accompany our remarks on this call. The presentation is posted on the Investor Relations page of our website at bd.com. During today's call, we will make forward-looking statements and it is possible that actual results could differ from our expectations. Factors that could cause such differences appear in our third fiscal quarter press release and in the MD&A sections of our recent SEC filings. We will also discuss some non-GAAP financial measures with respect to our performance. A reconciliation to GAAP measures can be found in our press release and its related financial schedules and in the slides. A copy of the release, including the financial schedules, is posted on the bd.com website. As a reminder, we annualized the acquisition of CareFusion in March. And as such, our third quarter results reflect the new BD in both the current and prior-year period. In addition, comparable prior-year revenues are adjusted to exclude sales related to the terminated agreement with CareFusion for the sale…

The floor is now open for your questions. [Operator Instruction] Thank you. Your first question comes from the line of Rick Wise with Stifel. Rick Wise - Stifel, Nicolaus & Co., Inc.: Good morning, Vince. Good morning, everybody. Vincent A. Forlenza - Becton, Dickinson & Co.: Good morning, Rick. Rick Wise - Stifel, Nicolaus & Co., Inc.: I guess, I'll start off with the operating margin expansion. I mean, you really are generating extraordinary margin expansion this year for multiple reasons. Maybe, just stepping back, how much – actually, I'll start it differently. Becton has consistently, for a long time, every year, done a good job of expanding margins and reducing costs. But this kind of performance we've seen in fiscal 2015 and 2016, how do we think about the next few years? What are the opportunities that are remaining? And, I mean, do you have a lot more to go in terms of consolidating plant manufacturing? Just give us some larger perspective to think about the future. Christopher R. Reidy - Becton, Dickinson & Co.: Sure, Rick. I'll take that. It's Chris. Thanks. Yeah, we're really happy with the margins that we're driving. Operating margins this year will be 200 basis points to 210 basis points up, and I'll remind you that that's on top of 100 basis points last year. And so, it's good continuous improvement, and that's coming from two things. Obviously, the synergies are helping us on the operating margins, SSG&A and that type of thing. But we're also seeing very good performance on the gross profit line, and a lot of that is really coming from continuous improvement-type initiatives that we've had in place. So, we feel good about that. And the good news is that that continues going forward, particularly on the synergy piece,…

Your next question comes from the line of David Lewis with Morgan Stanley. David Ryan Lewis - Morgan Stanley & Co. LLC: Good morning. Vincent A. Forlenza - Becton, Dickinson & Co.: Just two quick questions, guys. I guess, the first thing for Chris. I'm thinking about 2016, Chris. And so, obviously, the underlying earnings growth this year has been extremely strong. It sets up more of a difficult comparison for 2017. So, I know it's early, but I wonder if you're willing to comment on sort of the comfort with consensus next year, which is sort of low-double digits, sort of low-teens and some of the factors that get you that comfort, if you're willing to provide it. And then, just maybe for – a second one for Chris. Just the capital deployment priorities. You mentioned deleveraging here into this year, into next year. How are we thinking about capital priorities? Maybe it's also a question for Vince in terms of future M&A, share repurchase activity or further deleverage. Thanks. Christopher R. Reidy - Becton, Dickinson & Co.: Great. David, thanks for those questions. Absolutely, as I think through fiscal year 2017, I would take you back to our normal model, which is mid-single digits, 5 percentage on the top and 10 percentage on the bottom. On top of that, you get a couple of hundred basis points coming from the synergies that we've talked about. And then, I think you just have to take into consideration – and I'm not sure everybody's model shows this yet, the $0.10 to $0.14 that come from the Respiratory dilution. So, that gets you to a number that is clearly in the low-double digits, as you said. So, I have a lot of confidence in that. What I'd also point to though…

Your next question comes from the line of Larry Keusch with Raymond James. Lawrence S. Keusch - Raymond James & Associates, Inc.: Well, hi. Good morning. Vincent A. Forlenza - Becton, Dickinson & Co.: Good morning, Larry. Lawrence S. Keusch - Raymond James & Associates, Inc.: Two questions for you. I'm wondering if you could perhaps help us think a little bit about the agenda, if you will, for the November Analyst Meeting, just on a high level, just trying to figure out what you guys are thinking about covering there. Vincent A. Forlenza - Becton, Dickinson & Co.: Well, we have a lot of new things in the pipeline. We've integrated a lot of things, but I don't think you've had the opportunity that the market hasn't had the opportunity to really see. And so, we're thinking that we have to cover both segments for you. We have to get into in-depth on Medication Management, kind of, across the care continuum for you. We really haven't had that in-depth discussion. And so, that will be a major focus. And then, on the Life Science side, we have a lot to talk about in the core businesses and then the ramp-up of things such as genomics. So, we're going to make sure that you really understand these things. We know that we're a little difficult to understand because there's so much to cover. So, we're going to try to be concise about it. And then, hopefully, we can give you a little sense of the capabilities we have been building at the same time to drive this new wave of innovation. So, those are what we're really looking at. And then, around the same time, as Chris talked to you, we're going to focus on capital allocation. Maybe not in that meeting, but as we do the earnings call. So, those are the big things that we want to talk to you about.

Your next question comes from the line of Brian Weinstein with William Blair. Brian D. Weinstein - William Blair & Co. LLC: Hi, guys. Thanks for taking the question. Vincent A. Forlenza - Becton, Dickinson & Co.: Good morning, Brian. Brian D. Weinstein - William Blair & Co. LLC: So, a question on Africa, Middle East, the headwinds that you have there. Can you describe some of that in more detail? In Africa, specifically, you said you're monitoring the CD4 and viral load situation there. But what can you actually do proactively there? And how meaningful of a headwind is this for you, guys, right now? Vincent A. Forlenza - Becton, Dickinson & Co.: Sure. So, Linda can address that question. Linda Tharby - Becton, Dickinson & Co.: Hi, Brian. It's Linda here. So, as we discussed on our last call, the decline in the Africa HIV business is largely associated with, now, the regional health systems in Africa starting to implement the HIV viral load testing based on WHO guidelines. So, what we are seeing is two things occurring. Number one is tenders that have been previously issued, the amount of volume against those tenders, we're seeing come down, and then the actual tenders themselves being cancelled. So, the impact on our quarter was roughly 200 basis points. And as we exit 2016, we believe that the headwinds are largely behind us. The size of this business in Africa now, think of as being under the – around the $30 million range. Vincent A. Forlenza - Becton, Dickinson & Co.: And, Linda, the 200 basis points you were talking about was on... Linda Tharby - Becton, Dickinson & Co.: Yeah, the 200... Vincent A. Forlenza - Becton, Dickinson & Co.: Life Sciences... Linda Tharby - Becton, Dickinson & Co.: Was on the Biosciences growth within the... Thomas Polen - Becton, Dickinson & Co.: Biosciences growth. Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah. And on Life Science, as you saw, we took the guidance down. That was reflective of what was happening in Africa, and that was about 50 basis points – talking about a $20 million kind of hit. And that – we see that as largely behind us. So, we don't carry that going into next year, and it's behind us. Thomas Polen - Becton, Dickinson & Co.: Yeah.

Your next question comes from the line of Vijay Kumar with Evercore ISI.

Congrats on the nice quarter. Vincent A. Forlenza - Becton, Dickinson & Co.: Thanks, Vijay.

Maybe just one housekeeping question on – I know, on the last call, you guys spoke about the comp metrics, the triggers for comp being changed from the June to September fiscal end. I'm just wondering, how is that, as we're modeling 4Q, right, because it looks like the EPS guidance is a little light relative to what the Street is modeling. Is this just because of how this comp moved from 3Q to 4Q (42:04) the Street was modeling? Christopher R. Reidy - Becton, Dickinson & Co.: Yeah, I know, Vijay, so you're pointing to slide 14 and I think we gave that to give you a sense that the revenue growth in the quarter just increases a little bit in the fourth quarter, but the growth rate is significantly different and that's all about last year. So, if you remember last quarter, I mentioned this, this time, we thought we'd actually give you a chart that kind of demonstrates it because I think, if you really study that chart, you can see that the growth rate is moving around, but the dollars have nice, sequential increases every quarter. And so, that gives us the confidence that we can achieve that in the fourth quarter. To your point on EPS, it's really all about the fact that we let the over-performance in the third quarter, we let half of that flow through and then the other half is what we're investing. If you do the math on that investment of R&D, that's about $25 million. That takes you up close to 7.5% of revenue in the fourth quarter. And so, that's the other half of the overachievement in the third quarter that we're going spend. And when you think about that, it's really – we couldn't really spend it…

Your next question comes from the line of Derik De Bruin with Bank of America. Vincent A. Forlenza - Becton, Dickinson & Co.: Good morning, Derik.

Good morning. So, I've got one housekeeping question and just a broader one. The housekeeping question is what's the overall impact of the Spine divestiture? Can you give us a run rate? And then, the follow-up on that is – and since you mentioned BREXIT, I guess, you talked about some weakness in Eastern Europe. Can you just, sort of, elaborate on what you're seeing in those market trends and sort of how do we think about the impact to the – some of the uncertainty in Europe going forward? Thanks. Christopher R. Reidy - Becton, Dickinson & Co.: Okay. So, I'll take the first piece. The Spine business is about a $25 million business. So, that should help you in terms of getting the sense of the size that. Vincent A. Forlenza - Becton, Dickinson & Co.: And then, for Brexit, we don't see any significant impact to the business. It's very difficult to say exactly how this is going to play out. It's going to take years to play out. No one knows exactly which model they are going to follow. But I think the UK business for us is around $250 million, but we expect the NHS is going to continue to buy product to support the country. So, we don't see a big impact.

Your next question comes from the line of Jon Groberg with UBS.

Great. Thanks a million, and congratulations. So, just an end market question for you, Vince or whoever you want to hand it off to. One, can you just give us an update on China on kind of where you are in terms of some of those inventory issues that you called out earlier in the year and just what you're seeing generally in China? And then, in the U.S., I think a lot of people are a little bit perplexed, given what you see hospitals are reporting and MLR ratios. Can you maybe just talk about what you're seeing from a utilization standpoint in the U.S.? Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah. Well, starting on China, we had a strong quarter in China. So, we think those inventory issues are behind us. And so, we're not seeing a lot of change in the environment from quarter-to-quarter. What we did see was a little bit of strengthening on the Life Science side of things and some of the tenders that we had seen postponed are starting, so it gives us a little bit more confidence on that side, but we continued to see strong performance on the Medical side of the business, consistent with what we've been saying. So, pretty stable there and optimistic as we look towards next year. And then, what was the second piece that you were asking about? Monique N. Dolecki - Becton, Dickinson & Co.: (47:26) U.S. Vincent A. Forlenza - Becton, Dickinson & Co.: U.S.? So, U.S. utilization seems to be stable to maybe up a tick. I can't give you any real specific data on that. But just in talking to the organization, the U.S. organization, we're feeling quite good. That's the clinical market I'm talking about. The U.S. research market is doing quite well and you saw that, of course, in the Bioscience business.

Your next question comes from the line of Brandon Couillard with Jefferies.

Hi. Good morning. It's Justin in for Brandon. Vincent A. Forlenza - Becton, Dickinson & Co.: Good morning. Christopher R. Reidy - Becton, Dickinson & Co.: Good morning.

Could you just provide some color surrounding the strength in emerging market safety? And how much longer can the segment grow in the double digits? Vincent A. Forlenza - Becton, Dickinson & Co.: We think we still have a long runway there in the emerging markets, and Tom can give you a little bit of color. But a lot of what we saw of this in core products was the catheter area. But, Tom, maybe you want to talk about China and where they are. In Brazil and Latin America, they're real drivers for this. Thomas Polen - Becton, Dickinson & Co.: Sure. Hi, Justin This is Tom. So, as Chris had mentioned, specific to the Medical segment, we grew 9.6% in the quarter. As Vince just alluded to, safety catheters were a major contributor to that growth, particularly in Europe and China. Within the U.S., we saw growth in the third quarter really driven by safety connectors on our infusion set. I know you didn't specifically ask about Europe. It's a common question as well. And so, we do see safety continuing to also perform well in Europe. Compliance with the regulation is continuing, and it's the major driver of that safety growth. We've shared in the past that we really see stronger conversion in the infusion therapy and still more of infusion therapy as well as blood collection with less conversion in injection. So, that's more room to go there. And overall, as you think about it, in terms of what we still have ahead, we're still in the middle innings in European safety conversions, let's say, in that start of the fifth. Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah, and earlier in emerging markets. Thomas Polen - Becton, Dickinson & Co.: And earlier in emerging... Vincent A. Forlenza - Becton, Dickinson & Co.: (49:31) just starting in the first and second inning in emerging markets. Thomas Polen - Becton, Dickinson & Co.: Yeah.

Your next question comes from the line of Michael Weinstein with JPMorgan.

Great. This is Robbie Marcus in for Mike. I just wanted... Vincent A. Forlenza - Becton, Dickinson & Co.: Hi, Robbie.

To follow up – oh, hey. I just wanted to follow up on the fiscal year 2017 outlook, maybe focusing on revenue growth. So, with some of the upcoming launches, like infusion set early next year and some of the early CareFusion approvals in China, are you expecting the top line to accelerate next year and how should we be thinking of that? And if not, what are maybe some of the other puts and takes we should be considering? Vincent A. Forlenza - Becton, Dickinson & Co.: Sure. Let me take a shot at that, Robbie. Yes, we do expect acceleration next year from where we are in 2016. And what contributes to that is we begin to see some acceleration in terms of revenue synergies from CareFusion. Think about that in tens of basis points. You'll also get a lift from Respiratory going away. And to size that, the impact of Respiratory this year for the full year and it's choppy, as we said, it was about 60 basis points in the third quarter. But over the course of the whole year, it's worth about 10 basis points. And so, you get a little bit of a lift from that naturally, and we feel good about the rest of business. As we talked about emerging markets, we see getting back to the high-single digits kind of range, which is really where we were this year, if you exclude the issues in the Middle East, which was both Africa and in Saudi Arabia, which we talked about on the last call. And so, we feel good about that, and developed markets are continuing to do very nicely. So, we feel really good about our revenue guidance for next year. We'll clearly give you a lot more details as we get into the November call and give you a little bit more about the specific products that we have in the pipeline and the Analyst Meeting in November. Christopher R. Reidy - Becton, Dickinson & Co.: And the only other thing I would add is, as we think about it, Saudi Arabia, we're expecting it to be stable. Going forward, we don't expect any major change there. And then, on the Life Sciences side, as we talked about the situation in Africa, we think it's going to stabilize as well, too. So, that's how we're thinking about it.

Your next question comes from the line of Bill Quirk with Piper Jaffray. William R. Quirk - Piper Jaffray & Co.: Great. Thanks. Good morning, everybody. Vincent A. Forlenza - Becton, Dickinson & Co.: Good morning. Christopher R. Reidy - Becton, Dickinson & Co.: Good morning. William R. Quirk - Piper Jaffray & Co.: So, I guess, two questions, guys. First off, at AACC this week, you had a new Vacutainer. I was hoping you could maybe elaborate a little bit on that in terms of, I guess, some price specifications, kind of, what that could possibly do incrementally for margin structure, et cetera. And then, also, just want to highlight on the microbiology comment that you made. I would be curious as to, kind of, what you're seeing bigger picture there. There does appear to be, I guess, more interest in the category from an investment standpoint than a lot in both domestic as well as European hospitals. Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Okay. Linda? Linda Tharby - Becton, Dickinson & Co.: All right. So, thanks so much. Yes, the technology you're referring to in PAS is called a Barricor technology. So, if you think about blood collection, we created a blood collection tube with our gel about 25-plus years ago. So, this is the next generation. It uses no gel. It's a mechanical separator. So, we're really looking forward. If you think about what this drives for the lab, it really drives so much higher quality, cleaner sample. Just think about all the breakdowns due to the gel in the clinical diagnostic systems, think about that going away and then just driving better workflow efficiency and lower cost. So, we've now rolled that product out outside of the U.S. We're seeing a lot of…

Your next question comes from the line of Doug Schenkel with Cowen. Doug Schenkel - Cowen & Co. LLC: Hey. Good morning, guys. Vincent A. Forlenza - Becton, Dickinson & Co.: Good morning. Doug Schenkel - Cowen & Co. LLC: I guess, my first question is for Vince. My second is for, I think, Linda or Chris. Vince, we appreciate all the detail on operating investment in Q4. Could you share any detail on areas of prioritization associated with the increased R&D investment? And should we think about this as a pull-forward or more of the new normal or maybe a bit of both? And then, again, for Linda or Chris, regarding the cut in Life Science revenue growth guidance for the year, I think you only called out Africa and Middle East weakness as specific reasons for the cut. I think the reduction translates into about $200 million. Assuming my math is right, on the surface, it seems like this is a lot to attribute all to geographic weakness, especially at this point in the year. I'm just wondering if there's other dynamics worth calling out. Thank you. Christopher R. Reidy - Becton, Dickinson & Co.: Let me address that one first before we get into the other piece. Your math is off by a decimal. It's about a $20 million impact on a $4 billion business. It's about 50 basis points. Doug Schenkel - Cowen & Co. LLC: Okay. That makes more sense. Thank you. Vincent A. Forlenza - Becton, Dickinson & Co.: There you go. In terms of the R&D spend, you should assume that we will continue to spend the medical device tax as it is suspended and think about that going into next year. And you don't start a program and finish it in one…

Your next question comes from the line of Matt Taylor with Barclays.

Hi. Thanks for taking the question. I just wanted to ask an emerging market follow-up question. You talked about expecting high-single digit growth going forward. When you looked through some of the, kind of, near-term temporary headwinds... Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah?

You've had better growth than that in the past. I guess, can you just talk a little bit about how you developed that forecast, the factors that go into it and what could be sources of upside or downside to that number? Vincent A. Forlenza - Becton, Dickinson & Co.: Sure. When we think about emerging markets, obviously, we start with Asia. And within Asia, we start with China, and we're looking at healthcare spending in China and how that is unfolding. And what we're seeing is consistent spending in China. We break that down then to look at business by business, what's happening on kind of the capital side of things as they're purchasing. That's more of an impact obviously on the Life Science side than on the Medical side. And then, we go back and look at the Medical piece in two ways. Of course, what's the opportunity for core growth and then, as Tom was talking about earlier, all the product registrations that we have for China and other marketplaces from the CareFusion acquisition. So, that's China, number one. Number two, we're looking at India as a growth driver and that has – in the last two years, that has picked up and have been a good growth driver for us. Now, there's pluses and minuses in India. We're seeing good fundamental demand there with the burgeoning middle class. We're expanding our distribution in India, so we will take that into account. There are some headwinds in India in terms of tariffs that have been put in place. So, we make sure that that's not any significant impact, but – so, I would say we still find it as a very attractive marketplace for us. In Middle East and Africa, of course, we're much more careful about…

Your next question comes from the line of Richard Newitter with Leerink Partners.

Hi. This is Ravi in for Rich. Thank you for taking the questions. Just wanted to build on some of the other questions that have been asked. Just in terms of the CareFusion, the growth registrations that you're going through right now, could you maybe just give us a look into what's the denominator behind that? I mean, is this sort of the bolus of all the registrations that you're doing or is there a lot more products that remains to go to that pathway? And then, I have a few follow-ups. Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Sure. Tom will take that. Thomas Polen - Becton, Dickinson & Co.: Yeah. Hi, Ravi. This is Tom. So, I wouldn't say this is the bolus of them. The numbers that we've cited are certainly less than half of the products that we intend to have registered outside. We obviously started with those products that we have the data available for that didn't need to have additional data generated, and we're in existing formats that those markets would accept, take, for example, as we would think about pumps. In some cases, we need to do translation and get the language done first. That's an R&D program to get that ready. Some of the markets require infusion sets to be adapted a bit for local practices. And so, what you saw come through first are obviously those products that meet the needs of specific geographies, we the data ready and we'll move forward and submit right away. And so, most of those also tend to be on the consumables side I shared earlier, which is why, as we think about FY 2017, we would expect those synergies to really be focused within our MPS business because that's where those more simple medical devices that are more universal in nature in terms of how they fit in with the healthcare system that's (01:03:42) to be focused. Vincent A. Forlenza - Becton, Dickinson & Co.: Great. Thanks, Tom.

Your next question comes from the line of Kristen Stewart with Deutsche Bank.

Hi, everybody. Vincent A. Forlenza - Becton, Dickinson & Co.: Hi, there. Christopher R. Reidy - Becton, Dickinson & Co.: Good morning, Kristen.

Just as a follow-up to that, I was wondering, Tom, if you could just give us a sense for just how much of an acceleration we should expect to see from some of these filings and how fast can some of this ramp up or how meaningful are these registrations? Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah. As Chris mentioned, we think about it in tens of bps, not dramatically higher than that. And again, just to put things in perspective, we're really pleased with the performance and outlook even that we've gotten as early as in FY 2016. Of course, as we have said, CareFusion was 3%, 3.5% at best, growth business as a standalone. We're holding at our 4.5% to 5% growth for the segment overall. And as you know, when you take a 3% grow and a nearly 5% grow, you don't get within the range that we're sharing. And so, we're already. We see some good performance this year already as a result of the two companies coming together. We think some incremental improvements on that, in FY 2017, specifically within the MPS business in that 10s of bps as Chris described. The other thing also to keep in mind is that some geographies take a lot longer. So, China, although it's a market that we are filing registrations in, once you file a registration in China, it's a three-year process. So, you can't get into certain markets that fast. Typically, more of the European, Latin America, Southeast Asia markets are those geographies that you can actually get into within an 18-month window. And so, that's where you'll see us enter in first. Those aren't necessarily as large as some of the markets like China, which will be later on in our three-year and outlook horizon. Okay. All right. Thank you.

At this time, there are no further questions. I will now turn the conference back over to Mr. Vince Forlenza. Vincent A. Forlenza - Becton, Dickinson & Co.: Okay. This is Vince. Listen, thank you for your questions and comments on the call. We look forward to briefing you at the end of next quarter. Thanks very much. Christopher R. Reidy - Becton, Dickinson & Co.: Thanks, everyone. Thomas Polen - Becton, Dickinson & Co.: Thank you.

And this concludes today's conference call. You may now disconnect.