Good day, ladies and gentlemen, and welcome to the CSC First Quarter 2017 Earnings Conference Call. Today's conference is being recorded. And at this time, I'd like to turn the conference over to Mr. Neil DeSilva, Head of Investor Relations and Global M&A. Please go ahead, sir. Neil DeSilva - Head, M&A and Investor Relations: Thank you. Thank you very much and good afternoon, everyone. I'm pleased you've joined us for CSC's first quarter 2017 earnings call and webcast. Our speakers on today's call will be Mike Lawrie, our Chairman and Chief Executive Officer, and Paul Saleh, our Chief Financial Officer. As usual, the call is being webcast at csc.com/investor_relations and we've posted some slides to our website, which will accompany our discussion today. On the slides, on slide two, you'll see that certain comments we make on the call will be forward-looking. These statements are subject to known and unknown risks and uncertainties, which could cause the actual results to differ materially from those expressed on the call. A discussion of risks and uncertainties is included in our Form 10-Q and other SEC filings. Slide three informs our participants that CSC's presentation includes certain non-GAAP financial measures and certain further adjustments to these measures, which we believe provide useful information to our investors. In accordance with SEC rules, we have provided a reconciliation of these measures to their respective and most directly comparable GAAP measures. These reconciliations can be found in the tables included in today's earnings release, as well as in our supplemental slides. Both documents are available on the Investor Relations section of our website. Finally, I would like to remind our listeners that CSC assumes no obligation to update the information presented on the call except, of course, as required by law. And now, I'd like…

Thank you, sir. All right, and our first question from Jefferies, we'll hear from Jason Kupferberg.

Hi, guys. This is Amit Singh for Jason. Just wanted to start-off, and get color on what was the organic constant currency revenue growth this quarter? And also, if you can lead that into, now with Brexit, sort of – you talked about the currency impacts that you could witness for the whole year. If you could talk about, if you've seen any impact to your overall business when it comes to spending by clients because of Brexit, and when you talk about currency, what was your expectation sort of for the full year before and what it is now? John Michael Lawrie - Chairman, President & Chief Executive Officer: Yeah. Let me take a shot. The organic growth was still down, down slightly. So most of the growth came as a result of the UXC and the Xchanging acquisitions, although the gap between the decline in legacy and the growth of our next-generation offerings continued to narrow as we said, it would at our Investor Day, and that trend continued in the first quarter. It's going to get increasingly difficult to carve that out, because UXC now, for example, we've got pretty well integrated into our financial systems. In terms of Brexit, it's really too early to ascribe any major impact in terms of client behavior or client plans. What the impact for us is that, we obviously have greater exposure to the pound, and the pound certainly weakened – or the dollar strengthened vis-à-vis the pound as a result of Brexit. That impact we are seeing, and we expect to see that throughout the year. But in terms of client buying behaviors, candidly, I have not seen any significant changes.

All right. Great. And then just a quick one on the MetLife contract. If you could talk about sort of the broader size, scope and margin profile of that contract, and what type of revenue run rate should we expect this year, and into next few years. John Michael Lawrie - Chairman, President & Chief Executive Officer: Yeah. I'm not – I can't tell you the size of it. What I can say is, it's one of the largest contracts we've signed in the last five years. And it's for a long period of time, 10-plus years. This is a market that is really beginning to accelerate in United States. We saw this happen in the UK, frankly years ago, and new businesses were created as a result of this market opportunity. So we are seeing the same trend now in the United States that we saw six years ago, seven years ago, eight years ago in the UK. We expect this to accelerate. This is a pretty large market now. I'd estimate it's probably a $2 billion to $3 billion market today in United States. It's growing low-double-digits, but scale is really important here. So the number of policies and the scale associated with that allows you to price and allows you to drive margins. So the margin profile on this business is good, and is accretive to our overall margin profile of CSC. So that was one of the reasons why this became apparent to us last year, in particular, when we signed three or four smaller contracts, that the margins were good here. There is a need for industry domain knowledge here. So this isn't your classic BPS sort of outsourcing that doesn't have the margins. This requires actuarial skills and other insurance domain skills, which allows you to maintain a higher margin. So we think this is a growing segment. And we think it's going to accelerate in the coming years, and as a result, we are investing in it. We started to invest in the first quarter. We didn't make as a substantial investment as we thought we would, because we didn't finalize the contract until the early part of this quarter. So we will now begin to accelerate some of that investment in the second quarter. But we're really bullish on this. We think this can be a substantial business for CSC. This is mostly in United States, tied to life and annuity and pensions, whereas in the UK, we have a growing commercial lines, property and casualty business associated with our Xchanging acquisition. So that gives you a flavor of what that's all about, and most importantly, why we are investing in it.

Perfect. Thank you very much.

Moving on, our next question comes from James Schneider with Goldman Sachs. James Schneider - Goldman Sachs & Co.: Good afternoon. Thanks for taking my question. I was wondering if you can maybe expand on the outsourcing comment you made about the five percentage points of increased offshoring among the bottom part of the pyramid. Can you maybe talk a little bit about what that stands at as an absolute percentage today, and then where you hope to drive that, say, by the end of the fiscal year? John Michael Lawrie - Chairman, President & Chief Executive Officer: Yeah. I – (37:56) I think, we increased the absolute offshoring number by 2% or 3%. I think it stands at about 48%, to be exact, but Paul, will check my numbers because, I'm just doing this off the top of my head. Is that right? Paul N. Saleh - Chief Financial Officer & Executive Vice President: That's right, Mike. John Michael Lawrie - Chairman, President & Chief Executive Officer: Okay. And the – what we've done (38:18) quite simply is, we are replacing the mid-tier of the labor pyramid with lower pyramid skip. So that allows you a much broader base at the bottom of the pyramid. When we talked about a pyramid before, it really wasn't a pyramid. It was really pear-shaped with a very large mid-section and a smaller base. That's what we have been focusing on is, moving and in some cases replacing those mid-tier skill categories with a lower-cost, more – lower – of the pyramid workforce. That has changed dramatically going from about 21% of this lower level of the pyramid in Q1 of last year to about 26%, 27% in the first quarter of fiscal 2017. Again, you guys keep me straight on the numbers.…

And our next question comes from Keith Bachman with Bank of Montreal.

Hi. Thank you. I had just a couple. The first is, I wanted to focus on the restructuring and the integration. This quarter the almost $130 million was a little bit larger than we were thinking; a) was there activities outside the recent deals that were part of that? In other words, was there base level integration? Was there something else in there besides the two deals? And then, Paul, as you talk about $2.75 to $3, is there some dimensions that you can give us about what acquisition or integration costs would be excluded from that number? Paul N. Saleh - Chief Financial Officer & Executive Vice President: All right. I think, our restructuring was very much consistent with the actions that we needed to take to deliver on the synergies that we have highlighted, particularly for our businesses at UXC and Xchanging, right? So nothing unusual. Now the transactions and related integration cost represent a number of factors. And for example, the closing of our Xchanging acquisition in the second quarter. You had bankers' fees, you had legal and other type of external advisor type of fees that was included in that. We also are in full-fledge going through the integration, as we have mentioned, of UXC and as well as Xchanging within our businesses, so the cost related to that are also included in that. We also have, in addition to those two areas; we have already began to invest in the integration effort with HPE Services. That's quite a – launch of work that we have done in the quarter. So those are the items that are coming into play. And as far as the acquisitions you were saying, the thing that we have in those numbers also is about – I think, you asked me about purchase price accounting impact of those acquisition would be about maybe $8 million per quarter.

Okay. But... John Michael Lawrie - Chairman, President & Chief Executive Officer: But the key thing here – hang on just, the key thing here is the actual restructuring costs with UXC and Xchanging came in right around where we expected it to. The new news, which I covered at our earnings call after the – our full year 2016 call, was that we have been able to identify some synergies that we had not seen before, primarily in Xchanging. So we are at least restructuring costs that were consistent, what we've talked about before, will begin to show some results in second half of the year as we capitalize on those synergies. The length of time is primarily due to the length of the consultation process, and the other things that we have to go through, in – not in the UK, but in Continental Europe. That's why the slight delay in the capture of those synergies. But the real news is, is that we – the restructuring is basically consistent, but we're going to be able to offset those with some operating performance improvement due to the capture of those synergies.

Okay. Well, let me ask my follow-up, then, Mike, for you is, with the benefit of, call it, 90 days from the announcement to the HPE deal, how are you thinking about the cost reduction activities associated with the larger transaction of HPE Services? Is there any incremental dimensions you can think about given the benefit of the time since you've announced the deal? John Michael Lawrie - Chairman, President & Chief Executive Officer: No. I think the big thing is, we announced the synergies that we saw when we made the announcement, and that hasn't changed. What has changed in my mind is the level of conviction around that. So as I've gone out and met with people and now we're into the integration planning – we're well into the integration planning, and we're taking a look at everything very carefully, my conviction on those synergies has increased. But there's no incremental new news to what we conveyed when we announced the merger.

Okay. All right. That's it from me. Thank you, gentlemen. John Michael Lawrie - Chairman, President & Chief Executive Officer: Okay.

Our next question comes from Tien-Tsin Huang with JPMorgan.

Hi, thank you. Just on the bookings outlook. Obviously, a great MetLife win, but I'm curious, that deal aside, can we see book-to-bill run on 1 times or maybe below 1 times until the HPE deal closes, given the requirements around the wait period here? John Michael Lawrie - Chairman, President & Chief Executive Officer: No. I don't see any big delay right now in any decision-making. So I think the book-to-bills will be 1 times or – certainly it's going to be greater than 1 times with the MetLife deal, but underneath that, we're seeing good momentum, particularly in two areas. In our $100 million-plus deal, we put a very strident (47:46) process in place to qualify price, make sure we can get the margins that we need. That pipeline is actually expanding. And I think, I mentioned in my commentary, it's up over 50% or 35% the actual pipeline. Our win rates on that have more than doubled over the last year, so that is a very encouraging sign, those sales cycles are longer, so it does take time to bring a lot of those deals to contract closure and execution. And then the second investment is in the middle enterprise market, where we've reoriented our sales coverage that I just talked about. And there, too, we're seeing significant increase in the pipeline. So to answer your question, no, I don't see, at this moment as we speak, a pause in the sales activity as a result of the proposed merger.

Yes. That's encouraging to hear. Just as my follow-up, I'll ask on – I guess, I'll ask on Consulting. How did that come in versus plan? Maybe, if you can comment both organically and inorganically, that'd be great. Thanks. John Michael Lawrie - Chairman, President & Chief Executive Officer: Yeah. I think, it's pretty much coming in on plan. The Consulting business was really helped by the, particularly, the UXC acquisition. So those growth rates that we reported were largely due to the UXC acquisition. Organically, the business performed pretty much where it's been performing, but the big difference there is UXC. That's why we bought UXC, was we were going to gain a significant presence in some really important application areas, our Microsoft practice, for example, the ServiceNow practice, and we think, ServiceNow Service Management is another really important segment for us as we go forward. That's why we bought Aspediens, and we've really created a market-leading position in Service Management, which we plan to leverage as we go forward. But our Oracle practice in UXC performed very well. The SAP practice in UXC performed very well. So all of those practice areas performed, frankly, a little better than what we had anticipated. And that, coupled with the synergies that we've been able to crystallize, or will crystallize as we get into the second half of the year, is making us feel very comfortable about that acquisition.

Good. Thank you, Mike. Appreciate it. John Michael Lawrie - Chairman, President & Chief Executive Officer: Yeah. Neil DeSilva - Head, M&A and Investor Relations: Operator, let's plan on two final questions. Thank you.

Of course, sir. Moving on, we'll hear from Brian Essex with Morgan Stanley. Brian L. Essex - Morgan Stanley & Co. LLC: Hi. Good afternoon, and thank you for taking a questions. I was wondering, maybe, Mike, if you could expand a little bit on the IBM agreement and your effort to variabilize the fixed costs, how – what the rationale on both sides of that agreement are, and can we – when we look at particularly the GIS business, do we think about that from a longer-term perspective as maybe capping some leverage in that model? Or maybe just a little bit of context so we understand how to forecast that group with that agreement in place? John Michael Lawrie - Chairman, President & Chief Executive Officer: Yeah. I think, this will play out in a couple of ways. One, really from my perspective, why I was interested in this deal was, it gave us three benefits. One, over time it does begin to reduce our capital requirements, and we are hell-bent on trying to reduce the capital in this business. So from a return on capital, that becomes very important. It's one of the things that has dogged this outsourcing, ITO outsourcing business for a long time. We continue to make progress on this. This will again help us move the needle. It's just one of many things that we're doing to try to reduce the capital intensity. The second thing it does is it allows us to aggregate our software costs. So we're now aggregating some of our software costs where we can lower the cost of software licensing. I don't want to talk about any specific vendors, but you can imagine that the software cost associated with the Mainframe environment is pretty heavy. This allows us…

Of course, sir. Our final question of the day comes from Darrin Peller with Barclays.

Thanks, guys. Just want to start off – I mean, I know somebody asked earlier around organic growth, I guess, I'm kind of more interested in hearing what the pro forma growth rate would have been had you owned both Xchanging and UXC last year's quarter? Just really what the run rate of the story is today, given that is what you are now going forward? Paul N. Saleh - Chief Financial Officer & Executive Vice President: Yeah. Darrin, I think it's very hard to do that, just because first of all, we're going to have to make a whole lot of assumptions about what would be the impact last year of IFRS to GAAP translation. So I think, our best bet is just to focus on the – as Mike mentioned, if you look at the quarter, the quarter was declining slightly this quarter. A little bit better when I compare it to the prior year, for example, from a core (55:53) perspective, and then the acquisition certainly has helped us just deliver the revenue growth of 9% that we have indicated. And that's – the acquisitions are helping us also this year point to a up lower-double-digit for the full year.

Okay. Would you say just quickly, organically it was similar to last quarter? I know you mentioned down slightly. I guess we're just trying to little parse out directionally better or worse? Paul N. Saleh - Chief Financial Officer & Executive Vice President: I think, the first quarter, actually, as you remember, we mentioned it in our comments; it's seasonally a lower quarter on a sequential basis. And when I compare on the year-over-year, I see an improvement in the decline of – on that core. And as Mike mentioned, if you look at it, we're seeing the growth in our next-generation offering picking up and offsetting a diminishing decline in our core business. John Michael Lawrie - Chairman, President & Chief Executive Officer: Yeah. This is – from my perspective, this is – what we were looking at three years ago – when you're seeing a $250 million, $300 million a quarter fall-off in your legacy business, that leaves you something to think about, okay? And we've made a lot of investments in some smaller acquisitions. We're doing some slightly bigger ones now, and for that gap to go from $250 million to $300 million a quarter to $70 million or less, that's really good progress. So that's going to continue, that's why we made these investments. I think the important thing here is that, we are investing in these offerings. And they're important offerings, we've really uncovered two additional areas that we're really bullish on, this BPS segment, and this deal that we did with MetLife, and there's a significant pipeline behind that. These are really important new revenue streams that we're beginning to tap into, and these acquisitions, UXC and Xchanging just feed all those investments that we have made. And then our partner organization; we're continuing to make great progress with some of our partners in these new offerings because all these offerings are really built with our partners. And then on top of that, you do the proposed merger with HPE to give you even greater scale on the synergies where this looks a lot different than it looked three years or four years ago. I'll just tell you that. And as I said, we're getting more and more conviction as we get to know the Enterprise Services segment of HPE. I mean, the cultures are much more similar than they are dissimilar. So there's a lot of positives. I don't want to minimize the amount of hard work that's involved. This has been heavy-lifting. There's a lot heavy-lifting to go. And there's continued headwinds in the business, but from my perspective as the CEO, we recognize those headwinds. We're making investments. We're making improvement in the business now. We're taking a bigger step here with the merger with Enterprise Services. But I feel much stronger about the hand that we're holding right now than the hand we were holding three years or four years ago.

Okay. You know, I think just in follow-up with that and finalize with this, but you mentioned your win rates are doubling in those large contracts. I mean, is that from these specific area? Maybe if you could list to us maybe the top three areas that you think you'd differentiate versus your competitors for those big contracts everyone goes after. Is that the BPS side? Is that the – maybe just give us a little more examples... John Michael Lawrie - Chairman, President & Chief Executive Officer: Well, I think the BPS side for sure. But we're also getting much better at qualifying what opportunities to want to go after. We'd like to go after opportunities where we have value at. BPS is an example of that. Where we have strong intellectual property. So in the insurance space, in the healthcare space. And now increasingly in the banking space. Particularly capital markets with our Fixnetix IP. We're bringing in our partners very early. We just did a survey of 50 or 60 engagements, both where we've won and where we lost. An independent survey to understand where we differentiate ourselves. And we know, from feedback from our clients that where we show up very early in the process with our partners and we come to these opportunities as one team not a prime and a bunch of subs. I'm talking about one team, when we do that our win rates have increased dramatically. So we learn from that and that helps us better qualify opportunities where we have that value-add differentiation. I think that is what is driving the increased win rate in those deals.

Okay. Thanks, guys. That's helpful. John Michael Lawrie - Chairman, President & Chief Executive Officer: Okay. Neil DeSilva - Head, M&A and Investor Relations: Thanks, everyone, for being on the call. We will talk to everyone next quarter. John Michael Lawrie - Chairman, President & Chief Executive Officer: Thank you.

My apologies. That does conclude today's conference, ladies and gentlemen. We appreciate your participation and you may now disconnect.