Hello and welcome to BD's fourth fiscal quarter and full fiscal year 2016 earnings call. At the request of BD today's call is being recorded. It will be available for replay through November 10, 2016, on the Investors page of the BD.com web site or by phone at 800-585-8367 for domestic calls and area code 404-537-3406 for international calls, using confirmation number 94169710. Beginning today's call is Ms. Monique Dolecki, Vice President of Investor Relations. Ms. Dolecki, you may begin. Monique N. Dolecki - Becton, Dickinson & Co.: Thank you, Christy. Good morning, everyone, and thank you for joining us to review our fourth 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 fourth 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 fourth quarter results reflect the new BD in both the current and prior year periods. In addition, comparable prior year revenues are adjusted to exclude the sales related to the terminated agreement with CareFusion for the sale of SMP's respiratory care products. The impact to the bottom line was not…

Operator. Thank you. Our first question is coming from Mike Weinstein with JPMorgan.

Good morning, guys, and thanks for taking the question. So as a starting point, Vince, I'd love to hear your thoughts, just as you looked at FY 2017 about some of your end markets. And some of the businesses, as I look over the quarter and the full year 2016, did a little bit better. Some businesses were a bit more challenged. And so maybe just focusing a bit on the more challenged businesses first, can you just talk a little bit about some of the headwinds that you saw? Particularly internationally in the Life Sciences business this quarter, this year? And how you think about some of those end markets in FY 2017? And then if you think about that in aggregate, that 4.5% to 5% revenue growth target for FY 2017, what gets you to the higher end of that range? Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah. Yeah, Mike, sure. Happy to do that. I feel good about the 4.5% to 5%. And let me walk through the markets, and I'll hit the Bioscience issue which you brought up, which was really the real drag, along with, quite frankly, the flu early on in the year. So from a market perspective, let me just start with the developed markets. The developed markets certainly have stabilized. And you've seen that our growth rate going up in the developed markets, in the U.S. The U.S. was very strong by the way, including Biosciences. Europe was good. Japan was good. So we feel good about our position in developed markets and the product pipeline we have for those marketplaces. If I come to emerging markets, the issue really this year was, number one, Saudi Arabia, where we saw the government do a 35% cut of all types…

Thank you. Your next question comes from David Lewis of Morgan Stanley. David Ryan Lewis - Morgan Stanley & Co. LLC: Good morning. Vincent A. Forlenza - Becton, Dickinson & Co.: Morning, David. David Ryan Lewis - Morgan Stanley & Co. LLC: Two quick questions. I'll just – I'll throw them both at you here and jump back in queue. So I guess first off, hats off to Antoinette and the tax team in reaching your target here at least 2 years early from our model. So, Chris, is this a structural kind of new low? Can you do better? And obviously, you're reinvesting these savings both in the fourth quarter and next year. Can you give us a sense of where the 2017 reinvestment is going? And can you do better than these levels long term? And then for Vince or Tom, o-U.S., Pyxis, and Alaris, very strong this particular quarter. Can you talk about the drivers? And sort of update us on how those numbers relate to progress on the CareFusion cross sell? Thanks so much. Christopher R. Reidy - Becton, Dickinson & Co.: Sure, David, thanks for the question, and thanks for the call-out to Antoinette and team. We've been talking about taking the tax rate down to the high teens for some time now. And we've been making great progress against that. As we mentioned on the last call, the tax synergies coming from CareFusion happened faster and greater than we ever expected. And so we're seeing the benefit of that. So as we look out into next year, we see that bringing us to the high teens. Then we've got the benefit of the stock comp accounting adjustment. That brings us down to the 17% to 19% range. So this move down is part of…

Thank you. Your next question comes from Kristen Stewart of Deutsche Bank. Vincent A. Forlenza - Becton, Dickinson & Co.: Morning, Kris.

Hi, good morning, thanks for taking the question. I was just wondering, as you're approaching your I guess targeted debt levels, how you guys are thinking about M&A kind of beyond that? Are you guys looking at doing some strategic tuck-ins? Or just given the success that you've had with CareFusion, whether or not you'd be willing to do another larger deal? Or would it be back to doing more share repurchase activity? Vincent A. Forlenza - Becton, Dickinson & Co.: So, Kristen, thanks for the question. When we think about M&A, we are strategy driven and shareholder value driven. And so the size of the transaction actually follows from the strategy. As Chris mentioned, we're about 3.3 [times] right now. By the time we get to March, we're pretty sure that we're going to be meeting our requirements to the rating agencies. What I would say is that gives us more flexibility around those strategic imperatives. And so we believe we now have the capability to do large. And of course continue to have that capability to do tuck-ins. And a little bit more flexibility to do the tuck-ins in the short run than we've had over last 2 years. And so I'm not sitting here saying we're going back to do a large one. We'll be strategy driven around this, with increased flexibility and capability that we have built over the last couple years. Chris, you want to talk about share buybacks? Christopher R. Reidy - Becton, Dickinson & Co.: Yeah, sure. So what I would say though is in addition to that, the continued strong cash flow is terrific. So we have a lot of flexibility. And as Vince mentioned, the balance sheet will be very strong. It is strong now at the 3 times 3 (sic)…

Okay. Great. And then just one other question. You had mentioned building in a little bit more pricing pressure into the forecast. Can you maybe comment on where you're seeing a little bit more pricing pressure, or expecting that to occur? Vincent A. Forlenza - Becton, Dickinson & Co.: So we haven't really seen the environment change all that much. We know that there's going to be pricing pressure. We've talked a lot about it being in Europe. And of course over the last few years we continue to see consolidation in the U.S. marketplace. So I think we're being prudent in terms of how we're thinking about this. And we'll continue to work as we have in the past to offset it. Christopher R. Reidy - Becton, Dickinson & Co.: And it's already built into the range of guidance that we're giving. Vincent A. Forlenza - Becton, Dickinson & Co.: Right. Christopher R. Reidy - Becton, Dickinson & Co.: So it's kind of the part of the range is the pricing. Vincent A. Forlenza - Becton, Dickinson & Co.: Thanks, Kristen.

Thanks very much, guys. Thank you.

Thank you. Your next question comes from Rick Wise of Stifel. Rick Wise - Stifel, Nicolaus & Co., Inc.: Good morning, Vince. Hi, Chris. Vincent A. Forlenza - Becton, Dickinson & Co.: Morning. Rick Wise - Stifel, Nicolaus & Co., Inc.: Maybe I'll start off with the gross margin. Chris, you emphasized, underscored the excellent gross margins and hitting significant milestones. I'd just be curious to hear your thoughts on your aspirational goals from here over the next 2 to 4 [years], 3 to 5 years. And maybe talk about the drivers, volume cost, mix. I mean what gets us to those higher levels I have no doubt you aspire to? Christopher R. Reidy - Becton, Dickinson & Co.: Sure. Thank you, Rick. We are really pleased with what we've seen this year. The FXN growth rate was 140 basis points. That's a little bit of synergy from CareFusion. But more it's just the continuous improvement that we've demonstrated that we can execute on within our operations group over the last few years. And as we look forward, the guidance that we gave of 53% to 54%, and that would be inclusive of FX headwinds and pricing headwinds, et cetera, is extremely strong. It's a significant milestone for us to hit that 53% to 54%. We do see a little bit of more synergies coming, because as we execute on the synergies that affect gross profit and the cost of goods sold, which we said would come towards the latter end of our synergies, and that is the way that it's playing out. But again continued continuous improvement in that area. So feel really good about the gross profit margin. Also that flows down to the operating margin. So as we mentioned, this year 200 basis points, last year 100 basis points, next year in that 200 basis points kind of range. 500 basis points in total, again driven both from execution of the synergies as well as continuous improvement initiatives. So feel real good about that. And as we look forward even past next year, 2018 will have continued cost synergies. And you'll see some benefits from that. So all in all, really strong margin improvement. And we feel real good about it Vincent A. Forlenza - Becton, Dickinson & Co.: Thanks, Rick.

Thank you. Your next question come is from Larry Keusch of Raymond James. Lawrence Keusch - Raymond James & Associates, Inc.: Thanks, good morning, everyone. I was just wondering if we could go back and expand a little bit on – I know Tom talked a little bit about Alaris. But I was wondering if you could weave in some thoughts around the Fresenius IV solution that was approved, a little bit about what you do anticipate launching with towards the end of the first half, and what drives that share gain for the year that you're sort of suggesting of 200 to 300 basis points. Vincent A. Forlenza - Becton, Dickinson & Co.: Sure. Thomas Polen - Becton, Dickinson & Co.: Hey, Larry, this is Tom. So that share gain that we saw this year is actually relatively consistent with the share trajectory that we've seen over the last, let's call it 4 to 5 years within the Alaris platform. I think what customers certainly value in the platform around the power of one, the ability to do not just large volume but also syringe based and narcotic infusions off the same platform, as well as its leading interoperability position with electronic medical records are some of the key reasons why people have been choosing it at a higher rate and continue to do so going forward. Again we do have some new technologies being added to the platform, which we'll share also at the upcoming analyst meeting. So we're very positive on the outlook there. I think we think about IV solutions, and we've mentioned before, that you're going to see a – I would expect a rolling series of approvals on that platform. This is the first. Of course, there is a number of different formulations of IV solutions as well as bag sizes when you think about building out a portfolio that customers really need to run their institution. And so what you just saw get approved was the first in a series of products. And we would expect additional products to be coming out over the months ahead. And that leads us up to where we'll have an early critical, kind of mass of a portfolio for a launch at the end of the first half of the year. Thank you.

Thank you. Your next question comes from Vijay Kumar of Evercore ISI. Vincent A. Forlenza - Becton, Dickinson & Co.: Morning, Vijay.

Hey, guys. Hey, morning, guys. It looks like the numbers were actually a lot better than what it seemed like at first blush there. Just maybe a couple of questions from the guidance, Chris or Vince. What does the guidance assume from a pricing assumption for next year? And can you just talk about the quarterly cadence, Chris? Because obviously this year was a back half loaded on the revenue front. And given the flat share count and your comments on free cash generation, it looks like maybe there's some upside from cap deployment potentially. Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah, pricing is just slightly negative in the plan. And as Chris said, it's already in the guidance. Christopher R. Reidy - Becton, Dickinson & Co.: Yeah, which is no different than the beginning of just about any year. You got to look at that. The pricing environment, as Vince said, hasn't really changed. And so then I think the next part of your question came to the phasing of revenue going forward. And as we said, we do see some headwinds continuing as we annualize the headwinds from Saudi and Africa. That'll bring us down in the area of about 4% in the first quarter, plus or minus 20 basis points, particularly as that's a high quarter for the flu. So it could go one way or the other on us. But then the ramp in the second quarter brings us back well within the range, the high end of range. And the ramping of new products we see in the second half of the year brings us back to a strong 4.5% to 5% range. So that feels real good. In terms of capital deployment, the share buybacks, we were committed to not buy back any shares, other than what we've already done for Respiratory, which we've talked about. But we're not looking to do anything until we get to the 3 times leverage. We want to hit that commitment that we had. And that brings us through March, so halfway through the year. And then from that point on, you're right. There could be some. But you don't get the full year impact of that at that point. So more to come on that. But there is some potential as we buy back shares to have a little bit of impact on 2017, but probably more likely the impact would be on 2018.

Thank you. Your next question comes from Brian Weinstein of William Blair. Brian D. Weinstein - William Blair & Co. LLC: Hey, guys. Thanks for taking the question. You'll obviously excuse the crackly voice this morning. It was a late night for us in Chicago, and a good one, a very good one. Vincent A. Forlenza - Becton, Dickinson & Co.: Congrats on that. Christopher R. Reidy - Becton, Dickinson & Co.: Congratulations. Brian D. Weinstein - William Blair & Co. LLC: Thank you. Wanted to ask about kind of U.S. headwinds that we've heard about from others, specifically flu year over year was a tough comp for a lot of people. Utilization seems to be a little weaker. We're hearing about things taking longer to get through committees on capital projects and worked out of inventory distributors. So how do you guys think about those? And how do you think about kind of the U.S. market going forward? What are the positive offsets that you're seeing to those? And are you guys seeing any of those same headwinds that I described? Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Well we're generally not procedural driven. An Alaris conversion to make the hospital safer and more effective, they're not being driven by this on the margin procedures. And in fact Tom was talking about interoperability before. And just to give an example, Brian, we were at one account, and we were saving 5 million keystrokes a year. It's a kind of thing that you want to do in this environment. And it was a very intentional part of our strategy. So what I would say is generally across the board, we're seeing pretty good stability and some increase. We're just getting started with Kiestra , for example, in the U.S., which is a major cost saving, whether it's in the hospital market or in the clinical lab market. And so we don't have a lot of exposure to the kind of headwinds that you were mentioning. Christopher R. Reidy - Becton, Dickinson & Co.: I think what demonstrates that, Brian, is the 7.2% growth we saw in the U.S. across the company, which was strong in both segments, 7.7% in Medical and 5.8% in Life Science. And I'd also point to Biosciences growing in the U.S. around 8% for the quarter and for the year. A lot of that was new product introductions, the Symphony [FACSymphony], Celesta [FACSCelesta], the new Melody [FACSMelody] introduction, whatever. So U.S. is feeling particularly strong for our business. Vincent A. Forlenza - Becton, Dickinson & Co.: Thanks, Brian.

Thank you. Your next question comes from Jon Groberg of UBS.

Hey, thanks a million. So Vince, it's the first analyst day coming up since – in November here since 2011. And I know you don't want to give away all the details. But just kind of big picture, maybe you can help us understand what you hope people take away from the meeting? Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah. I hope that they take away a true understanding of when we are talking about this move to complete solutions for the customer based on anchor products and then value-added services, all the way to complete solutions, what that means from a portfolio standpoint. And when I'm saying that we have the most robust pipeline in the history of the company, I want you to understand what that all means. And we will lay that out for you in a lot of detail. So that's number one on the list, that you understand why we have that confidence going forward. And I think it's going to be fun, quite frankly. It was fun doing this 5 years ago. So I'm looking forward to it. And then we're going to take that, and Chris is going to kind of give you a financial model of how this all holds together. And lastly, we're going to talk about the capabilities that it's going to require to do all this. And we're going to show you how we built the capabilities foundationally over the last 5 years. And then how we build upon them. Tom mentioned informatics, for example. But we'll also get into how we approach emerging markets, what's different about our strategy, and why we see that continuing to work. And some of the other capabilities that we will be bringing to bear, which all is an extension of the work we've done over the 5 years. So that's the kind of day and look forward to seeing you there, Jon.

Great. Look forward to it. Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah.

Thank you. Your next question comes from Bill Quirk of Piper Jaffray. William R. Quirk - Piper Jaffray & Co.: Great. Thanks. Good morning, everybody. Vincent A. Forlenza - Becton, Dickinson & Co.: Morning. William R. Quirk - Piper Jaffray & Co.: Couple of questions here. First off, international safety, Vince, you mentioned China in particular as the standout. Just remind us where we are on the ongoing European conversion. And then secondly, the Life Sciences business, at least relative to Medical, has been a little less predictable. And we certainly appreciate all the new product launches, both in launch as well as the near term development. But do you think this can improve the predictability of the business? Or do you think we may have to look at some tuck-in deals to improve the consistency? Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Well let me just take Life Sciences first. And the lumpiness that we've seen on Life Sciences, there's two elements. One is just Kiestra, which is a positive thing. These are big installations. They're $2 million. And so you're seeing some quarterly jump arounds as customers are ready for us to install. And because there's some major changes that they have to make to the laboratory, number one. Number two, and we've had this issue with Africa, and that's been a bit of a problem. We think that's going to annualize. Are we interested in tuck-in acquisitions there? Absolutely, as we are on the Medical side. I'm just going to ask Alberto to comment on Kiestra. And kind of what you're seeing from a pipeline standpoint. And how you see the U.S. market evolving, because we just got started there. Alberto Mas - Becton, Dickinson & Co.: Yes, good morning. Where we're seeing the most…

Thank you. Your next question comes from Derik de Bruin of Bank of America.

Hi, good morning. Christopher R. Reidy - Becton, Dickinson & Co.: Morning, Derik.

A lot of the questions been answered. But just wanted a little bit more color on sort of your emerging market expectations. I mean there was a number of reductions in terms of the outlook and the growth over the year – or during 2016. And I realize a lot of that was sort of due to the Africa and the Middle East situation. But what sort of gives you confidence that that's going to reaccelerate this year, other than tougher comps, or easier comps? What are you sort of seeing right now that gives you confidence that that's going – you're not going to have to face another slower year? Vincent A. Forlenza - Becton, Dickinson & Co.: Well I think you have to start with Saudi Arabia, which was a major impact to our emerging market growth this year. And as I said, government policy was, cut all expenses by 35%. Now if you're going to run your healthcare system, you can't just stop buying product, number one. So our expectation was they were running down their inventories, and then – and they would start to buy. What we've seen in this quarter was stabilization there. And so it didn't come all the way back to positive growth, but there was significant improvement. So that gives us a sense that our hypothesis in this case is right, number one. Number two, it's really Africa and the annualization of Africa. It was still negative. But we started to see, and Alberto could give you more detail, some CD4 orders starting to come in, which we did not see. So, and then we saw good performance across Asia, as I was mentioning before. I expect that to keep happening. I expect Latin America, that Brazil is going to remain status…

Thank you. Your next question comes from Doug Schenkel of Cowen & Company. Doug Schenkel - Cowen & Co. LLC: Hi, good morning. Just a couple topics. First, could you provide a bridge for 2017 operating margin guidance? I guess I'm just trying to get at how much of this is synergies, removal of respiratory, mix, et cetera. And then second, on the topic of new products, what was new product contribution to 2016 revenue growth? And looking ahead to 2017, it seems like new product contribution to organic growth should account for a bigger part of overall growth, as you accelerate revenue synergies and some important launches, such as the infusion sets. Could you comment on that? Thank you. Christopher R. Reidy - Becton, Dickinson & Co.: So this is Chris on the first part of that question. As we look at the margin next year, the roughly 200 basis points of operating margin, about 50 basis points of that from the normal continuous improvement kind of stuff, another 50 basis points coming from cost synergies, and about 100 basis points coming from the Respiratory JV coming off our income statement. So we get a benefit there. And on the gross profit, it's roughly the same kind of area. There's a benefit from Respiratory. About half of it coming from Respiratory, about half of it coming from CI and synergy. Vincent A. Forlenza - Becton, Dickinson & Co.: In terms of new products, the growth that you're seeing in Biosciences is really driven by the new product instrumentation. So I can point you directly to that. But in terms of the other major new product launches that we are talking about, they really haven't gotten traction yet. Barricor, people are just starting to validate Barricor. The approvals on BD MAX we just got in the last month or so. So they really haven't hit. And then you're talking about tens of basis points in terms of the CareFusion products in the emerging markets at this point in time. We haven't done the – we haven't completed the work, let me say it that way – in terms of trying to get a really good analysis around breaking out new product from the entire company. As we're going through the CareFusion integration, we haven't counted the geographic extension of those products as new products. But we're working our way through that. And you'll have a better sense after the analyst day of how this is coming together.

Thank you. Your next question comes from Matt Taylor of Barclays.

Hi. Thanks for taking the question. I was wondering if you could comment, given that you do have some bigger product cycles here coming up in the fiscal year, and one of the more robust pipelines at the company. Could you comment on some of the bigger opportunities, like fluids, diabetes, and some of the diagnostic launches, in terms of how we should expect the revenue contributions from those to flow? Help us size them? And just give us some thoughts on timing? Vincent A. Forlenza - Becton, Dickinson & Co.: So I'll ask Tom to start with talking about diabetes and FlowSmart. Okay? Thomas Polen - Becton, Dickinson & Co.: Okay. Hi, Matt, this is Tom. So certainly we're excited about the upcoming launch or the recent launch of the infusion set. In September we did make our first shipments to Medtronic on the MiniMed Pro-set with our FlowSmart technology. Medtronic has begun shipping that to patients. And the feedback that we're hearing is very positive. And there's been a number of bloggers actually write their experience. You can look that up online. But it's very, very good feedback as that's moved into the marketplace just over the last couple months. We do expect that that pilot will expand to a broader full launch in early Q2. And that's well on track. So I think back to one of the earlier questions, as we think about within the Diabetes Care business, we do expect – and obviously we don't give guidance by business unit. But we expect an uptick in 2017 in Diabetes Care, driven by that FlowSmart launch. And that's on track, proceeding as planned. Vincent A. Forlenza - Becton, Dickinson & Co.: Okay. So Alberto, why don't you comment on BD MAX and Barricor as well, in…

Yes, your final question is coming from Richard Newitter with Leerink Partners.

Hi, guys. Thanks for squeezing me in. Vincent A. Forlenza - Becton, Dickinson & Co.: Morning, no problem.

Just you've now had some time to kind of digest all the opportunities that maybe you had in front of you, that CareFusion had in front of it, but didn't have the means to exploit. And I'm thinking a little bit more about the dispensing business in Europe. And I know the business model in that part of the world is just different, and it hasn't historically lent itself well. But I do believe you had begun to talk a little bit about Rowa and leveraging that technology. Vincent A. Forlenza - Becton, Dickinson & Co.: Yeah.

I'm just wondering if that's going to factor in in 2017 in the cross sell or the synergy phase of the acquisition integration? And any kind of thoughts there? And is that something that we could hear more about at the analyst day? Thanks. Vincent A. Forlenza - Becton, Dickinson & Co.: Yes, you will hear more about it at the analyst day. It's not so much a cross selling opportunity, but an additional opportunity is the way that I would think about that. And we will share that, because we haven't kind of detailed what that product line looks like for you. And there's multiple aspects to that. So, yeah, we'll be happy to talk about that. Thanks for the question.

Thank you. I will now turn the floor back over to Vince Forlenza for closing remarks. Vincent A. Forlenza - Becton, Dickinson & Co.: Well thank you all for your participation on the call today. It was a pleasure going through, which was a strong year for BD, to talk about 2017. And we're looking forward to getting together with you at the analyst day in 2 weeks. So thanks very much, and we'll see you there. Christopher R. Reidy - Becton, Dickinson & Co.: Thanks, everyone.

Thank you. This does conclude today's teleconference. Please disconnect your lines at this time and have a wonderful day.