Good morning. I would like to welcome everyone to Kennametal's Second Quarter Fiscal Year 2016 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Please note that this event is being recorded. I would now like to turn the conference over to Kelly Boyer, Vice President of Investor Relations. Please go ahead, ma'am.

Thank you, Denise. Welcome, everyone, and thank you for joining us to review Kennametal's second quarter fiscal 2016 results. We issued our quarterly earnings press release earlier today. It is posted on our website at www.kennametal.com. This call is being broadcast live on that website and a recording of the call will be available for replay through March 3. My name is Kelly Boyer and I've joined Kennametal as VP, Investor Relations. I'm very happy to be part of the Kennametal team, and I look forward to meeting investors and analysts of Kennametal in the coming weeks and months. Joining me on the call today are Don Nolan, President and Chief Executive Officer; Jan Kees van Gaalen, Vice President and Chief Financial Officer; and Marty Fusco, Vice President, Finance and Corporate Controller. Don and Jan Kees will discuss the December quarter's operating and financial performance, as well as our updated outlook. And we'll be referring to a slide deck, which is posted on our website. After their prepared remarks, we will be happy to answer your questions. At this time, I would like to direct your attention to our forward-looking disclosure statement. Today's discussion contains comments that constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of assumptions, risks and uncertainties that could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements. These risk factors and uncertainties are detailed in Kennametal's SEC filings. In addition, we will be discussing non-GAAP financial measures on the call today. Reconciliations to GAAP financial measures that we believe are most directly comparable to those non-GAAP financial measures can be found on our Form 8-K on our website. With that, I would…

Thank you, Mr. Nolan. And the first question will come from Stephen Volkmann of Jefferies. Please go ahead.

Hi. Good morning. Donald A. Nolan - President, Chief Executive Officer & Director: Hi, Stephen.

Bunch of questions, but maybe I'll just go sort of big picture and leave the details for later. But, Don, you've been there a year, a little bit more than that now. And we've been through quite a bit of this. I guess, I'm trying to figure out what do you think this business can do once it gets to sort of a better state with regard to your restructuring and cost savings and so forth? I think you alluded to Infrastructure profitability improving significantly in coming quarters. Is this a business that can earn its cost of capital at something like where we are now, which, I assume, is sort of bottom-of-cycle-ish-type end markets? Or do you have a view of what type of profitability we can drive down the road or what you're managing to internally? And I guess, sort of corollary to that, sorry for the long question, but have we sort of completed what we need to do with the restructuring or is there more to do here? Because, clearly, the returns really haven't turned yet. So, sorry for the long question, but whatever insight you can give there would be great. Donald A. Nolan - President, Chief Executive Officer & Director: Sure. So a lot in there, Stephen, as you pointed out. So first, can each of the segments earn the cost of capital? Absolutely. We're happy with the divestiture. We think that is a key step in getting us positioned, so that Infrastructure can get to that cost of capital. And we would target the cost of capital at the trough and improved returns at higher operating levels. So that's certainly our goal. And the plan that we laid out in Analyst Day, in that plan, we laid out how we would expand our margins by 400 points to 500 points over the coming quarters. And we're committed to that. We continue to focus on delivering that. Phases 1, 2, and 3 were a significant part of that, but we also have mentioned in the past that we anticipate continued restructuring and dare we call it Phase 4. So, yes, there still is opportunity for us to take cost out. We will continue to focus on that 400 margin point to 500 margin point expansion. As far as the cost of capital, absolutely, both segments not only can but need to be at the minimum above the cost of capital.

So, I guess, I was sort of thinking maybe we would start to hear something more about this Phase 4, let's call it. Is it just too early or how do we think about the cadence of that? Donald A. Nolan - President, Chief Executive Officer & Director: Very focused right now on executing Phases 1, 2, and 3, as we've talked about. Phase 1 was a lot about integration of acquisitions; Phase 2, a lot about footprint reduction; and Phase 3 was a combination of footprint reduction and G&A cost reduction. Phase 4 will most likely be a combination, again, of footprint and G&A reduction, and it's in the works.

Okay. That's helpful. Thank you. And then, just a quick follow-up, if I may. Your new CapEx budget is a little bit lower but just by quick math it's still 6% or 7% of revenue, seems kind of high. How much of that is sort of tied to restructuring and moving things around? And what should we be thinking about sort of a sustainable CapEx rate? Donald A. Nolan - President, Chief Executive Officer & Director: So, almost none of that is tied to restructuring capital. So, we see terrific opportunities to invest in our core, opportunities to drive productivity or to invest in production of new products for growth. That's what the capital's all about, and we felt that the increase in investment year-over-year was warranted because of the returns that we were getting on productivity. So, that's it. And quite frankly, we're just deferring. Those projects are still there, still offer tremendous returns. But we think, at the lower volumes that we're running right now, it makes sense to defer those investments till next year.

Okay. Thank you. I'll pass it on. Donald A. Nolan - President, Chief Executive Officer & Director: Thank you.

The next question will come from Ann Duignan of JPMorgan. Please go ahead. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Hi, Ann.

Hi. Good morning. I appreciate the color you gave us on the end markets and also where you think some of the opportunities are. Could you give us a little bit more color? I mean, focusing on growth in coal mining in China seems a little more aspirational. I mean, I'm assuming there are suppliers there already who don't really want to give up their markets. Could you talk a little bit more about how you think you can penetrate some of these markets that you're not in today? Donald A. Nolan - President, Chief Executive Officer & Director: So, first of all, we think that the markets we participate in also offer opportunities. I think, certainly, the U.S. market where we have high share, we continue to see opportunities to take share there, despite the decline in the market. The mention of China and some of the external international markets outside the United States, we think, represent significant opportunities. We have a sales force in place, so it's not as if we don't. Part of this is our regional manufacturing strategy. So we're going to be moving production in region. It enables us to be competitive from a cost standpoint, also, quite frankly, from a service and delivery standpoint. So, sometimes it's just simple, Ann.

Okay. Thank you. I appreciate the color. And your comments on the automotive, I think you said you didn't benefit from strong U.S. automotive production in the quarter or maybe in recent quarters. Can you expand on that a little bit and what you're doing there? Donald A. Nolan - President, Chief Executive Officer & Director: So, I think we've mentioned for a couple quarters now that we have opportunities in North America. We think that in this past quarter, although, not time to celebrate, because the region is shrinking. But we believe that we are holding our own as far as share goes now in North America. And part of that is some of our investment we've made in a commercial team in automotive and in other areas to support our automotive business. So, we expect that to continue to improve over coming quarters and we'll keep you posted.

Okay. I'll leave it there and get back in line. Thank you. I appreciate it. Donald A. Nolan - President, Chief Executive Officer & Director: Thank you, Ann. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Thank you, Ann.

The next question will come from Julian Mitchell of Credit Suisse. Please go ahead. Julian Mitchell - Credit Suisse Securities (USA) LLC (Broker): Hi. Thanks. And... Donald A. Nolan - President, Chief Executive Officer & Director: Hi, Julian. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Hi, Julian. Julian Mitchell - Credit Suisse Securities (USA) LLC (Broker): Hi, hey, and welcome to Kelly. Just a first question really on the Infrastructure business; I'm assuming your guidance embeds that that gets back to a sort of positive EBIT in the second half. Maybe just confirm that that is the case. And how much of that delta from the small loss in the first half is related to the divestment disappearing versus the underlying cost actions? Donald A. Nolan - President, Chief Executive Officer & Director: Yes. So I'll start that and Jan Kees can answer your second question. So, yes, we'll certainly expect the business to be EBIT positive on the second half, so no doubt there. And then, on the divestiture, of course, that was, thought we said, earnings per share neutral. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Correct. Donald A. Nolan - President, Chief Executive Officer & Director: Do you want to comment on that, Jan Kees? Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes. The divestiture in terms of EBIT didn't have an impact. In terms of Infrastructure for the second half of the year, we're really looking at volume productivity to improve the numbers. Julian Mitchell - Credit Suisse Securities (USA) LLC (Broker): Thanks. And then just a follow-up on the Industrial business, where you've had a sort of a similar rate of overall revenue decline the last three quarters around the mid-teens. The decremental margin now seems to have got larger even with the cost cutting. So, I just wondered, is that because of the destocking that's under way, so that's putting a lot of pressure on your own production? Is there something happening on price or mix behind that? Donald A. Nolan - President, Chief Executive Officer & Director: Well, I think – so, certainly, oil and gas, we have, I would say, a higher proportion of oil and gas than many other players in this market. So, it's certainly impacted us, I would say, more than most. So, when it comes back, we would expect a significant impact, too. As far as the decremental margin, Jan Kees, do you want to... Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes. Typically, the decremental margins were related to volume, mix and productivity during the second quarter and we expect those to improve in the second half. Julian Mitchell - Credit Suisse Securities (USA) LLC (Broker): Okay. Thank you.

Our next question will come from Ross Gilardi of Bank of America Merrill Lynch. Please go ahead.

Sure. Thanks. Donald A. Nolan - President, Chief Executive Officer & Director: Hi, Ross.

Hi. Thanks. Good morning. Don, can you give a little more color on the implied second half ramp which, basically, has your earnings doubling versus the first half? And why assume that volume is going to improve in the Infrastructure business in the second half of the year? Donald A. Nolan - President, Chief Executive Officer & Director: So, on the improvement in earnings as we look into the second half, one of the key drivers is going to be taking advantage of overall material costs. We expect or we know that we're going to see a significant impact on our second half, significantly more than the first half. So, that's a key driver. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes, I think, Ross, I've already touched upon them. In terms of Industrial, we're looking at improvements in volume mix and productivity and for Infrastructure volume and productivity, so, basically a better outlook in terms of the decrementals. Donald A. Nolan - President, Chief Executive Officer & Director: And the other thing on the Industrial is we're starting to see some impact from our Feet on the Street initiative, our focused efforts on the top line.

Yes. I mean, I guess I understand the productivity initiatives, just the volume. Can you just give us a little bit more? I mean, are you seeing any type of order improvement to count on any volume improvement in the second half of the year, with the share gain tied to strategic initiatives and things like that? Donald A. Nolan - President, Chief Executive Officer & Director: Yes. It's incremental tied to strategic initiatives, but most of this is all about cost reduction. I mean, let's just call it. This is about some of the things that we've already announced around taking out G&A, and removing (40:28) cost of manufacturing. All of this has really come to roots in the third quarter and fourth quarter, and then raw materials, the impact of raw material costs coming down. Those are the two big drivers. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes.

Okay, got it. And can you talk a little bit more about the balance sheet and cash flow prioritization? I thought you said your main priority was to continue to reinvest for growth and I don't know if I heard that right, but I was kind of surprised to hear that. I was curious as to where debt reduction fits in the pecking order and if you can just comment on the safety and confidence in the dividend? Donald A. Nolan - President, Chief Executive Officer & Director: I'll tackle the capital and leave the rest for Jan Kees. But as far as investing in the business, I feel very comfortable with some of the deferred capital investments that we've announced. We have lower volume, so when you have lower volume moving through your plants, the productivity and the returns aren't quite as high. So, we defer those investments that are incremental in that regard, and we'll come back to them in the first quarter of 2017. The rest, what we're investing will deliver a significant productivity or position us well as we roll out new products around the world. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes. In terms of debt repayments, we have continued debt repayment in the first half of the year as I've discussed compared to the June year end. And we will continue to make some progress on that, either on a net debt basis by building up a cash balance, and we will make sure that we get as much of the cash back to the U.S. as we can. We will have a balanced approach to make sure that we invest in profitable growth both, as well as keep a conservative balance sheet. Donald A. Nolan - President, Chief Executive Officer & Director: I think the other thing I would – just on the same topic, we're committed to continuing to drive our working capital down. We see continued opportunities not only in the second half of this fiscal year but continuing into fiscal year 2017.

And just the dividend, your thoughts on the dividend? Donald A. Nolan - President, Chief Executive Officer & Director: We're committed to it.

If the demand outlook turns out to be worse than you thought in the second half of the year and you weren't covering your dividend, would you borrow to pay it? Donald A. Nolan - President, Chief Executive Officer & Director: Let me just say that we're on track with the forecast that we put together. So, the forecast that we have put on the top line, January looks in line with what we expected. So, we have no reason to think that our expectations won't be met.

Thanks a lot.

Our next question will come from Eli Lustgarten of Longbow. Please go ahead.

Thank you. Good morning, everyone. Donald A. Nolan - President, Chief Executive Officer & Director: Hi, Eli. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Hi. Good morning, Eli.

Just one quick question on the tax rate or so. With the credit in the second quarter, are we looking at a low-teens tax rate for the third quarter and fourth quarter? And more importantly, does the tax rate go back to normalize into the low 20s next year or does it stay down at these levels? Jan Kees van Gaalen - Chief Financial Officer & Vice President: I think that question in terms of the 2017 tax rate, we will discuss it at the time of providing you 2017 guidance. It depends, to some extent, as to what the sources of earnings are geographically. Some of the new tax law that was implemented in the back end of 2015 is permanent, so that will help. And in terms of the other elements, look-through provisions, et cetera, we will see if those are, how do you say, beyond the year 2016.

But the second half of the year will be in the low-teens, is that what we should expect? Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes. It will be in the low-teens. Yes. Correct.

Yes. And there's nothing structurally that would get to that. You should be expecting a more normalized tax rate next year versus this year, all things considered, so you don't have all these other effects. Would that be a fair statement? Jan Kees van Gaalen - Chief Financial Officer & Vice President: Eli, that's correct.

Yes. Now, as far as looking out in the second half of the year, can you give us some feeling for what to expect profitability wise in both Industrial and in Infrastructure? I mean, Industrial, you have a 7% operating margin in the quarter. Can we get back to double digits by the end of the year? And are we talking, as we originally expected, mid-single digits to low single digits in Infrastructure in the second half of the year in operating profitability? Is that a reasonable target? Jan Kees van Gaalen - Chief Financial Officer & Vice President: Eli, beyond the guidance that we gave on the slides, I don't want to go into further detail.

Okay. And one of the questions is about China and I know you've highlighted that about coal. The Chinese government had just banned the opening of any new coal mines for the next three years. So, I mean, would that kind of environment more the investments and your strategy there just to be able to hold your own in China, because it's got to be a very competitive market that can't open any more coal mines? Donald A. Nolan - President, Chief Executive Officer & Director: Yes. But actually it plays to our strength, because there's lots of estimates out there about how many coal mines are in China. I've heard anywhere from 7,000 coal mines to 9,000 coal mines out there. And what we expect to be happening is a consolidation. So, that plays right into our hands and if you noticed, but the largest coal mine in China, they have removed as much coal from that mine as all the coal that's mined in the United States, but just one mine, one owner of mine. So, you can imagine what this will look like as it consolidates in the top 10 coal miners in China. So, it plays into our hands. We're very good at working with large customers, and we've got some great technology that we continue to improve on. So, we think that the time is right for us to expand in China.

And one final question, inventory liquidation which you cited. Do you think that the channels basically have gotten relatively clean? Or would declining volume in the second half of the year, I assume that there could be some more inventory liquidation and market related as opposed to just pure inventory liquidation, is that a fair outlook? Donald A. Nolan - President, Chief Executive Officer & Director: Destocking has always been difficult for us to see, the magnitude. We hear from our customers quite frankly but difficult with numbers around. I would expect destocking to continue through the next quarter. And beyond that, I couldn't comment.

Yes. If I could sneak one in, what happened that you had negative automotive sales in the second quarter or so? Was that like a share (47:14) or model specific? What caused that to happen? That was sort of a surprise that you would lose share in automotive in what was a pretty strong production quarter. Donald A. Nolan - President, Chief Executive Officer & Director: Well, I hate to point out, Eli, but that's actually pretty consistent with where we've been, unfortunately. Our external report last quarter was similar. So, when we've mentioned this before, this is the target area for us, significant opportunity, and we're on it.

Yeah. All right, thank you very much.

The next question will come from Walter Liptak of Seaport Global. Please go ahead. Donald A. Nolan - President, Chief Executive Officer & Director: Hi, Walt.

Hi. Just to follow up on the last question on the auto. You've talked in the past about market share losses, is that primarily automotive or is it across the board in the different sectors of North America? Donald A. Nolan - President, Chief Executive Officer & Director: Yes. We haven't actually discussed that in detail, Walt. But I think in automotive, it's pretty fair to say that automotive is growing and we're not. So, we need to get on that.

Okay. And as you're talking about adding Feet on the Street, I wonder if you could talk about just the numbers of new hires, incremental costs from new hires, et cetera. And when do you expect to start seeing benefits from the Feet on the Street? Donald A. Nolan - President, Chief Executive Officer & Director: Well, we're already seeing benefits. We're not in a position to talk about the number of people or where or how. We consider that competitive strategy. But I can tell you it's already having an impact, and we're continuing to – this will be a key initiative for some time to come. A lot of our focus is in North America. We think that there's some significant white spaces there, where we can win and a few other emerging markets.

Okay. And then if I could switch gears just to the working capital accounts. Your inventories, are you expecting to bring the inventories down further in the back half of the year and by how much? Donald A. Nolan - President, Chief Executive Officer & Director: A lot of our focus, thus far, has been on raw materials in WIP and as we reduce complexity in our feeds. And so, now, going forward, a lot of the focus will be on finished goods. And that, again, reducing complexity, focused on line simplification, a little more difficult, but certainly something that we're good at, and it'll be a focus for many quarters to come.

Okay. And then kind of related on accounts receivable; what kind of shape are your receivables in, in terms of – are you seeing an increase in any bad debts related to oil and gas or any stretching in some of those terms? Jan Kees van Gaalen - Chief Financial Officer & Vice President: No, we're not seeing increases in bad debts. Typically, many of the people that we sell to in the oil and gas sector are investment-grade and the pay is on the dot.

Okay. Thank you.

The next question will come from Rudy Hokanson of Barrington Research. Please go ahead.

Thank you. I have a question... Donald A. Nolan - President, Chief Executive Officer & Director: Hi, Rudy.

Good morning. Good morning. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Good morning.

I have a question on your oil and gas business globally. As expectations are that the U.S. service sector in oil and gas activity are certainly in a rapid decline and when they'll recover is questionable, there are thoughts that the price of the commodity will see a pickup by the end of the year and into next year in large part because of the U.S., is falling off. And as you talked about opportunities in China and elsewhere with coal, I was wondering if you could give us a picture of what you see for Kennametal globally in the oil and gas market? Donald A. Nolan - President, Chief Executive Officer & Director: Well, just maybe a little color, Rudy, around how we think about it. The oil-and-gas business for us is particularly large in the United States because of the fracking that's gone on here. There's a tremendous pull because of the equipment that's utilized in fracking versus more conventional drilling. So, for us, the big balance would be a comeback in the U.S. of drilling. So right now, I think we had said 60% of the rigs are offline. To get those back online would have a really nice impact on our business. So, globally, the cuts that we've seen around the world as units come offline, nothing's been as high an impact as what we see in the United States. So, for us, higher oil prices would be great and would love to see United States put more of those rigs to work.

Okay. So, just to clarify, you're not looking at opportunities, for instance, in the Middle East as they may keep a fairly high level of activity simply because you don't feel your products fit as well? Donald A. Nolan - President, Chief Executive Officer & Director: No. We do a lot of business in the Middle East, actually. Much of that is done through the United States, where service equipment is shipped actually from here to there. It's very strong business for us, and then directly in that region. So it's a good business for us. Jan Kees van Gaalen - Chief Financial Officer & Vice President: And very strong share. Donald A. Nolan - President, Chief Executive Officer & Director: We have very strong share around the world, but...

Okay. Donald A. Nolan - President, Chief Executive Officer & Director: ... the larger volumes are in the United States.

Okay. Thank you very much.

The next question will come from Joel Tiss of BMO. Please go ahead.

Hey, guys. How's it going? Donald A. Nolan - President, Chief Executive Officer & Director: Hi, Joel. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes, good morning, Joel.

I wonder if you could give us an update on when you first started, Don, you were talking about going through the different value streams inside of Kennametal and trying to figure out where the strengths were. We heard a couple of little highlights, but I just wondered where you are in that process and what you've discovered and maybe not giving us numbers, but just an idea if there's more pieces that need to be divested or you think the business is in pretty much what's going to be there going forward. Donald A. Nolan - President, Chief Executive Officer & Director: No, I think, running through the two segments, on the Industrial segment, I'm very pleased with what I've found; some great markets. We have some great technology. And I've got some work to do which we already talked about on the commercial side. So I think it's clearly core to Kennametal and right in our sweet spot. I think on the infrastructure side, I think the key will be continuing to simplify that portfolio; continuing to drive some product innovation through to the market. And it's all about execution. I mean, Joel, when it comes down to it, we've got a great game plan laid out for us to expand our margins and put ourselves in a position where we can deliver outstanding earnings on the recovery. And so, that's our game plan. So, no, I don't see any significant divestitures in the near or distant future.

And then, one for Jan, just wondered the way that you have the guidance for the second half and the way you're thinking about the business, is it more that the end markets are just, kind of, flat with where we are, the run rate that we're at now or is there further deterioration or improvement baked into some of those trends? Thank you. Jan Kees van Gaalen - Chief Financial Officer & Vice President: No. I think... Donald A. Nolan - President, Chief Executive Officer & Director: Yes, I mean we're seeing similar run rates, Joel. I mean, I don't – at this point, we're going to continue to see – in fact, as I mentioned, January, we saw exactly what we expected what was in our forecast. So, we're on track.

Great. Thank you so much. Donald A. Nolan - President, Chief Executive Officer & Director: Thanks, Joel. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Thanks, Joel.

The next question will come from Andy Casey of Wells Fargo Securities. Please go ahead.

Thanks. Hi, everybody. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Morning.

A couple questions around price cost. With the sustained dollar strengthening, meaning it's been strong for a while now and the weaker end market conditions that you continue to run into, are you seeing or do you expect any deflationary pressure during the second half in any of your businesses? Donald A. Nolan - President, Chief Executive Officer & Director: I think deflationary being price pressure, just to be clear, Andy, we're seeing some price pressure. Some of our contracts are tied directly to raw material movements. So, we have some of that built in to our business. But I got to tell you, on the most part, we are not experiencing significant profit pressure from that price pressure.

Okay. Thanks, Don. And then I guess, it was kind of a lead in to the gap, the performance gap between Industry and your auto growth that you're not seeing any competitive pressure there or it's just product mismatch or what's going on? Donald A. Nolan - President, Chief Executive Officer & Director: I'll just leave it as I think right now, we have the products. We have certainly the capabilities, the engineering capabilities. And we're executing much better as we sit today than we were a year ago. And I expect to see that business improve with a short-term to medium-term.

Okay. Thank you very much. Donald A. Nolan - President, Chief Executive Officer & Director: Thanks. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Thanks.

The next question will come from Schon Williams of BB&T Capital Markets. Please go ahead. Donald A. Nolan - President, Chief Executive Officer & Director: Hi. Schon. Christopher Schon Williams - BB&T Capital Markets: Hi. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Hi, Schon. Christopher Schon Williams - BB&T Capital Markets: Good morning. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Good morning. Christopher Schon Williams - BB&T Capital Markets: Just a little bit of housekeeping, I was little confused in the press release, you actually look like the estimated savings for Phase 1 had ticked down. Generally, in the past, it had been kind of $50 million to $55 million ticked down to $40 million to $45 million, yet, you'd already realized $52 million, so, I don't know, any clarity there? Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes, Schon, that is the effect of taking the venture savings up.

Divestiture. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Yes, so that was divesture... Donald A. Nolan - President, Chief Executive Officer & Director: Yes, sir. Jan Kees van Gaalen - Chief Financial Officer & Vice President: ...that we referred to. Christopher Schon Williams - BB&T Capital Markets: Okay, okay. No, that makes sense. And then I just noticed the completion date on Phase 2 I guess was pushed out two years as of the, I guess, that was actually updated last quarter but I mean, just a little clarity on why was that extended so much further into the future? Originally, the date was... Martha A. Fusco - Vice President-Finance & Controller: Schon, Schon, this is Marty. I'll take that one. We have a large manufacturing project in there that the timing got extended just a little bit beyond where we were last quarter and to your point we did update that. Christopher Schon Williams - BB&T Capital Markets: Okay. So you're saying this one project extended the timeline by two years. Donald A. Nolan - President, Chief Executive Officer & Director: That's correct. Yes. Martha A. Fusco - Vice President-Finance & Controller: Check. Christopher Schon Williams - BB&T Capital Markets: Okay, all right. Thanks, guys. I'll get back in the queue now. Jan Kees van Gaalen - Chief Financial Officer & Vice President: Thank you.

And at this time, we will conclude the question-and-answer session. A replay of this event will be available approximately one hour after its conclusion. To access the replay you may dial toll free within the United States, 877-344-7529. Outside of the United States, you may dial 412-317-0088 or toll free from Canada, 1-855-669-9658. You will be prompted to enter the conference ID, 10071523, then the pound or hash symbol. You will be asked to record your name and company. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.