Good morning, and welcome to Medtronic's Second Quarter Earnings Conference Call. At this time, all participants have been placed in a listen-only mode. The call will be opened for a question and answer session following the speakers' prepared remarks. [Operator Instructions] I would now like to turn the call over to Ryan Weispfenning, Vice President of Investor Relations. Please go ahead?

Great. Thank you, Maria. Good morning and welcome to Medtronic's second quarter conference call and webcast. During the next hour, Omar Ishrak, Medtronic Chairman and Chief Executive Officer and Gary Ellis, Medtronic's Chief Financial Officer will provide comments on the results of our fiscal year 2016 second quarter, which ended October 30, 2015. After our prepared remarks, we will be happy to take your questions. First, a few logistical comments, earlier this morning, we issued a press release containing our financial statements and our revenue by division summary. We also updated our combined historical Covidien-Medtronic financial statement presentation, which is posted to our investor relations website. This presentation now contains FY'15 quarterly P&L stated on a month-aligned basis instead of the prior quarter-aligned basis. Comparisons made today will be against the month-aligned P&L. Next, you should also note that some of the statements made during this call maybe considered forward-looking statements and that actual results might differ materially from those projected in any forward-looking statement. Additional information concerning factors that could cause actual results to differ is contained in our periodic reports filed with the SEC and we do not undertake to update any forward-looking statement. In addition, the reconciliations of any non-GAAP financial measures are available on the Investors portion of our website at medtronic.com. Unless we say otherwise, references to quarterly results increasing or decreasing are in comparison to the second quarter of fiscal year 2015, and our year-over-year growth rates are given on a comparable constant currency basis, which adjusts for the negative effect of foreign currency translation and includes Covidien Plc in the prior year comparison, aligning Covidien's prior year monthly results to Medtronic's fiscal quarters. These adjustment details can be found in the reconciliation tables included with our earnings press release. With that, I am now pleased to turn the call over to Medtronic Chairman and Chief Executive Officer, Omar Ishrak.

Good morning. Thank you, Ryan, and thank you to everyone for joining us. This morning, we reported second quarter revenues of $7.1 billion, representing growth of 6% at the upper end of our mid-single digit expectations. Q2 non-GAAP diluted earnings per share were $1.03, growing at 11% on a comparable constant currency basis and reflecting 480 basis points of leverage, above our baseline expectation of 200 to 400 basis points. Q2 was a strong quarter. Our operational performance remains consistent and we believe sustainable across all our functions, groups and regions. At the same time, we are outperforming the overall market and delivering operating leverage. We are also executing on our value capture programs from the Covidien integration and realizing the targeted cost synergies. This combination of solid top-line growth and leverage is generating significant accessible free cash flow, which provides us enormous flexibility to deploy through strong returns to our shareholders, paying off debt and pursuing targeted acquisitions. Despite our strong performance however, we recognize foreign translation is a significant pressure to our bottom-line on a reported basis as it is for most multinationals, but we are attempting to offset this as much as possible by stretching our operations and through our conventional hedging programs. As we look ahead though, our confidence continues to grow around our ability to develop the right mindset; business models and offerings to lead and compete in the emerging value based healthcare models around the world. I am pleased with our organization's willingness and aptitude to explore new and novel ways for Medtronic to not only deliver better clinical and patient outcomes, but to tie success to these outcomes with providers, payers and governments. Our strong revenue growth is resulting from crisp execution on three growth strategies, therapy innovation, globalization and economic value. These…

Thanks, Omar. Second quarter revenue of $7.058 billion increased 62% as reported or 6% on a comparable constant currency basis, which excludes the $452 million unfavorable impact of foreign currency. Acquisitions and divestitures contributed a net 30 basis points to Q2 revenue growth. Q2 non-GAAP EPS was $1.03, an increase of 1% versus the $1.02 delivered by Medtronic, Inc. last year, for an increase of 11% on a comparable constant currency basis after adjusting for the $0.12 impact to earnings per share from foreign currency translation. Q2 GAAP diluted earnings per share were $0.36, a decrease of 57%. This quarter's non-GAAP adjustments to earnings on an after-tax basis were up $442 million certain tax adjustment, primarily related to the internal reorganization that resulted in approximately $9.3 billion of previously trapped cash becoming accessible and $29 million loss on forward interest rate swaps related to the same internal reorganization, a $373 million amortization charge, a $56 million net restructuring charge and $32 million acquisition-related items charge, primarily related to the Covidien integration and a $17 million certain litigation charge related to increased product liability. For Cardiac and Vascular Group, which accounted for 35% of our total company, revenue grew revenue by 8%. CVG had strong performances in all three of its divisions, with each growing above the company average. Cardiac Rhythm & Heart Failure or CRHF, had another strong quarter with 7% revenue growth, which included mid single-digit growth in both, high power and low power, high 20s growth in AF solutions and low 30s growth and Services and Solutions. We estimate the CRHF implantables market is growing in the low-single digits and we continue to take share both, year-over-year and sequentially. High Power had particularly strong quarter in U.S. ICDs, driven by the launch of the Evera MRI ICDs, the…

Thanks, Gary. Before opening lines for Q&A, I would like to reflect on our overall performance. Our team has come a long way, executing quarter-after-quarter. We are building a business with solid and diversified growth drivers, operational excellence, strong cash flow generation and disciplined capital allocation, but it is also important for us to remember that we have a long journey ahead of us and our work of fulfilling the Medtronic machine goes on. I am confident this team can execute consistently, balancing trade-offs and offsetting pressures to create long-term dependable value in healthcare. With that, we will now open the phone lines for Q&A. In addition to Gary, I have asked Mike Coyle, President of our Cardiac and Vascular Group, Bryan Hanson President of our Minimally Invasive Therapies Group, Geoff Martha, President of Restorative Therapies Group and Hooman Hakami, President of our Diabetes Group to join us. Where we are rarely able to get to everyone questions, so please limit yourself to only one question and only one follow-up. If you have additional questions, please contact our Investor Relations team after the call. Operator, first question please?

Our first question comes from the line of Mike Weinstein of JPMorgan.

Good morning. Can you guys hear me okay?

Yes. We can Mike.

Yes, Mike. Go ahead.

Perfect. Well, first off congratulation on another nice quarter. Let me, Gary, just circle back on your commentary on repatriated cash. My first question is really, it sounds like there is some commentary fourth coming in terms of what are you going to do with that cash? Any reason you are not being more explicit today as in the comments you made about potentially accelerating share repurchase and paying down debt?

Yes, Mike. I mean, as we indicate in our comments, obviously, we are looking at this. We are excited about the opportunity that we are able to get access to this cash and make it available. We are looking at different options. As we indicated in our comments, obviously, the main focus of that will be, we did take on a lot of debt related to the transaction. We have commitment on the debt side that we want to look at, but obviously the other opportunity for us is to take a look at share repurchases and accelerate that as a potential. We are looking at both, options we are evaluating that. We are having conversation with our Board. As we make decisions, once we make those decisions, then we will communicate what our plans are, but we just do not want to get ahead of ourselves in communicating before. Again, we have had a full dialogue and discussion with the board.

Okay. Let me ask you about a couple of different business that to me stood out this quarter. I mean, there is whole bunch them, but let me just target a couple of them. Once, was your Diabetes business, and you commented on the growth you are seeing in diabetes, particularly Europe, where you have got some newer technologies available. Can you talk about the growth there number one. Number two, your Neurovascular business continues to do extremely well. We are seeing that obviously because of the ischemic sort of trials and what is happening in that market, but could you just give us your own thought on sustainability and what you want to do with that business going forward?

Okay. Mike, I am going to let Hooman and Jeff will answer this question, so Hooman why do not you go ahead with the questions.

Sure. Hey, Mike. Yes. We saw great growth in Diabetes, 11% overall. The European growth was really, I think, something that stood out. We had just incredibly strong growth in 640. We saw that not only in Europe, but also in Asia Pacific and I think what it shows is that new innovation here matters and this is something that we are going to continue to drive. We have got a plan to launch this product in the United States. You heard from the commentary that the trials was done and we are going to release it to the FDA in early 2016, so we are excited about that and I think what you are also seeing that I think it is worth noting is the 530G is doing incredibly well in the United States and we are seeing very, very good performance there on tough comps, so when you take a look at those two things. I think, we are seeing great performance within the group and we expect this to continue.

Okay. Geoff?

On the [ph] side it is a huge opportunity not just for Restorative Therapies Group, but for Medtronic. First of all you saw we did - these guys have done - our team and everybody has done a great job developing technologies and the clinical evidence and we want to maintain that leadership, so the two tuck-in acquisitions we did last quarter, I think, take our technologies roadmap out several years to maintain our leaderships there, so that is one. Then two, we are looking at the broader stroke care continuum from diagnostics working with Mike Coyle's group here in the link technology into patient management and referrals systems, so we think beyond the technology if you look across the care continuum, there is several waves of innovation here and this is a top priority for not just my group, but for Medtronic.

Okay. Then maybe just one question, and I will let others jump in. Omar, one of the questions we talked about last call, last call you remember I think industry was a little bit frustrated on the pace of margin improvement and part of it was tough to see because of the FX headwinds you guys were seeing. One of the questions was the degree to which some of the Covidien synergies and effectively some of the upside to this synergy targets, Mike had reinvested back on the business versus shown down to the bottom-line to shareholders. If you want just give us your own updated thoughts on that and how investors should be kind of expecting Covidien synergies to play throughout the year?

Yes. We have already said, as I said in my commentary they we are expecting some significant upside to 200-basis point to 400-basis point range and we will show that in the coming quarters. That is where we stand. It is pretty straightforward. You know, most of these synergies will fall through and we will go from there, but I do not want to minimize our operational performance outside of the synergies as well, because there is good work going on in productivity improvements in our products and SG&A. Some of it is using some of the new structures we are creating under the integration, but across the Board, we are delivering productivity and to the extent especially this year with the Covidien synergies, we really expect by the end of the year we will be above the range that we have talked about. As we have actually already done to a small extent in the first two quarters, but that amount will increase in the coming quarters.

Perfect. Thank you, Omar.

Thanks.

Our next question comes from the line of David Lewis of Morgan Stanley.

Good morning. Omar, I just wanted to come back to revenue for second. I think, your guidance for the upper end of 4 to 6 is consistently you said last quarter, but it is probably the most bullish component of the report this morning, so what is giving you the confidence in the acceleration sort of in the back half of the year? Not only it is the acceleration, because the comps get so dramatically harder as the anniversary the acceleration last year, so what gives you the confidence you still can sustain that momentum in the upper half of revenue in the back half as these comparables get harder.

I think the direct answer there is our new product momentum. I do not think we have been in a position in this company today with the products we have already launched and the upcoming pipeline that we have across the Board in virtually every group. The cadence of product innovation across the Board has increased significantly and when you sort of combine all of that together it makes quite a difference. That is our goal after all. We are in the end a technology company striving to sort of change outcomes. Now, in addition to that, we are completely cognizant of the fact that one of our main growth strategies is to diversify the sources of growth, so we see emerging markets actually steadily improving into the back half of the year and services and solutions again starts to keep growing because of programs that we are implementing across the Board are gaining traction across multiple regions, so those are fairly slow. It takes a little time for them to come through, but in aggregate they do come through and they all contribute. When you add all of that up together, we feel pretty confident to be in the upper half of the range and again for this to be sustainable good years does not mean that the next year would be bad. It has to continue to improve, so that is the outlook that we have on this.

Okay. Very helpful, and I just had a quick follow-up for Gary and one for Geoff. Gary, our math implies 12% to 15% constant currency earnings in the back half of the year is an acceleration from the first half. Does that jive with your math and how are you feeling about the $850 million number? Then for Geoff, I know it has not been very long that you have been at the helm on RTG, but I wonder if you could just briefly comment on the ability to achieve the type of network effects in RTG that have been so successful and accelerating Medtronic Cardio? Thank you.

David, to your first comment about earnings per share, the answer on the constant currency would be yes. That is what we would expect to see in the back half of the year. That is not - if you look at the first half of the year, basically we have seen between 11% and 12% kind of constant currency comparable growth overall, so we expect that to accelerate a little bit in the back half of the year as we talked about primarily because of more of the benefits of the Covidien integration and all the integration efforts coming through, so total related to the $850 million commitment that we have move to by FY'18, we are right in line. In fact, maybe slightly ahead of our plans to deliver $300 million and $350 million in the current year and right in line with the expectations on doing that for the full 850 by FY'18, so we feel very confident about that. We feel confident about that in our earnings per share guidance we are providing to the organization or to the investors, but in general yes that is right in line with our expectations but foreign-exchange does continue to be a negative headwind for us obviously, but on a comparable constant currency basis, we are seeing an acceleration in our growth.

Geoff?

David, again, good question. I would answer it - three parts to the answer. One, from a market perspective, one thing that has helped the cardiovascular space is the emergence of the cardiovascular service line globally and we are seeing that not to the same effect yet. It is, I do not know 10-plus years behind as the neuro services line Neuroscience service lines emerge, but we are definitely seeing that trends emerge. The more that happens, the more it plays to our hand, because we have by far the best breadth to cover those Neuroscience service line, so that is one and that is a tailwind for us. The second is our internal capabilities of taking and this is different than actually cardiovascular. We have implants that work with Intraoperative Imaging and Navigation and we have both platforms and that gives us some flexibility. Now, we have to integrate those better and take them to market selling benefits versus features and we are working on that, but that is another tailwind and the Intraoperative Imaging navigation is a key driver to us getting this network effect so that we sell, like I said, solutions versus the features. Then thirdly, which we are copying the playbook from our Cardiovascular Group is changing the way our operating principles and our operating mechanisms, so that our business is - the silos come down to a certain extent and they are incented to drive these cross business unit deals where it make sense, so when you are bundling, if you will, intraoperative navigation and Intraoperative Imaging navigation with some of our implants. You need to have the incentives and the operating mechanisms and analytics to do that, so we are in the process of doing that, so those three things are the things that are driving it, but one thing that is gating it is the Neuroscience service line evolution in the marketplace.

Thank you very much.

Our next question comes from the line of David Roman of Goldman Sachs.

Thank you. Good morning, everybody. Omar, I was hoping if you go back to one of the things you referenced in your prepared remarks towards the contribution from new products I thinking above the sort of historical level or your target levels. Can you just sort of talk about what specifically influenced that and why that would not translate into better overall top-line growth? Is there any part of the new product story that has all cannibalistic of the base business or something that is happening in the end market that we would not have let that 400-plus basis points to new product to drive better overall top-line growth and that is obviously now throw any water on the resulting, but just for some perspective?

Well, a number of things. First of all, the new product growth includes the baseline product lines, so that inclusive of all of that. The only answer if we do the math is that the emerging markets and service and solution have to pickup. Remember, service and solutions because of the integration together with the Covidien, the baseline has changed, so therefore it is a 20 basis points where our number is like 40 to 60, so that is one aspect that will drag it down. Those numbers are small, but in the context of which you are talking about, you are talking about the ranges of the upper end here, so we are talking about 10s of basis points rather than and 100s, so they do make a difference. Then emerging markets also, as we climbed up into the range, probably will help. Outside of that it is a matter of how much above the 350 we actually get. Again, like I have said before, we just want to be a little cautions not so much because of our product launch activities but because of the environment around us, which you just never know, we just have a little cautious about macroeconomic pressures, political instabilities, those things or some healthcare rule changes, so we have given up passed experience of these things surprising us. We just got to be a little cautions, so that is really the best way I can answer this that I would really like to see all three of our growth vectors above our projections before we really confident that we can extend the range so that we get that level of diversification, but in nowhere am I any sort of less confident about our new products execution just because of the breadth of our pipeline I think that is going to happen. I just think the macroeconomic circumstances we just want to be a little cautious about that and therefore I want to see the other growth vectors also climb with the same range before we can get more bullish.

Okay. That is helpful. Maybe just a follow-up for Gary on the P&L and cash flow side, as we think about the sort of underlying operating profit of the business, obviously FY'16 is sort of a tail to have as we think the sort of normalized run rate of the business so we think about that 30% number that you are talking about exiting the year sort of that the right underlying profit of the business off of which to think about forward forecast. Then on the free cash flow side, the $1.1 billion you are talking about this quarter, if you annualized that that is pretty close to what you were as an independent company pre Covidien, so when do we start to see the benefit flow through to free cash flow and move toward that. That is your number target you put out therefore for FY 19?

Well, with respect to of the profit margin, I mean, you cannot take our Q4 number and annualized that because as you look historically the same way that you had with Covidien that we just talked about as far as the tough comparison. Our Q4, the profit margin is always much, much higher than the previous three quarters. That is historical, because we have a strong closing and so you have a lower rate. We cannot annualized the fourth quarter, but obviously we are in the 20% 29% range for the full-year that we have been talking about then we would obviously continue to build on that number, so that is kind of the - you take the average for the year and then build on that standpoint of the incremental improvements we will see from value capture going forward is what you should assume, but my only point is just do not take the fourth quarter annualized, because that it unusual it spite by the low-end the best profit operating margin tends to be in the fourth quarter, but we would obviously could expected to continue to improve. The cash flow in the quarter, $1.1 billion includes some restructuring cost resurgence stuff like that, so we pulled that out. You are closer to the $1.3 billion and the point if you looked historically Medtronic and Covidien, the cash flow also similar to the profits rose as we go through the year, so it is always actually that $1.2 billion or $1.3 billion about 40% to 50% versus where Medtronic, Inc. itself was a year going into the quarter, we would expect still for the current year that we are going to be somewhere around $6.2 billion to $6.5 billion in free cash flow and similar to what we talk about on the profit to the cash flow also improve in the back half of the year, which is normal because we are first half of the year we are paying off bonuses and things like that in the prior year in the cash flow just it spite historical nature is just lower, but in the back half of that will accelerate so we are still very confident that for the current you will be in that $6.3 billion to $6.5 billion and similar to what we have talking about our earnings growing close to double digits on that cash flow going forward over the next several years and generating as we talked about close to $40 billion in free cash flow over the next five years. We are still very confident about that.

Okay. Next question?

Our next question comes from the line of Larry Biegelsen of Wells Fargo.

Good morning. Thanks for taking the questions. Let me start with the Puerto Rico our tax issue. I think in September at our conference you said there would be a briefing in October did that happen and do you still expected the decision in late fiscal 2016. I think in the past you said most of these cases settle before decision. Do you still feel that it settlement it is more likely here as well and had upon? Thanks.

Well, I mean as far as the trial process, yes. There is a process where there is some briefing that had to be provided by both parties like the government and Medtronic that occurred I believe in October. That is all been done from what I understand and now we are in a situation is and the judges per view the judge has the option to take as long as sheets would you like in those case. We are assuming that at the end of our fiscal 2016 early into FY'17 is what she will make sure make a decision, but it can go longer too. This is her decision on how quickly she moves in making that decision. As far as settlement discussions, again, I cannot say anything on that, because obviously settlement discussions required two parties to come together and at the point of time, I cannot say anything about that at all. I mean you get happens to happens that in the mean time we are just waiting to see what the decision is from the court case.

Thanks. Then on emerging markets Omar, you bounce back this quarter plus 11% and based on your earlier comments it sounds like you expect that to - I just want it to be clear. It sounds like you expect that actually improved in the second half and I am asking, because we do look across medtech emerging market growth does not appear to have slowed so I just wanted to be clear that you think you can kind of in the second half of this year build off of the 11% and actually accelerate and is that mid-teens growth that you have talked about in the past so realistic? Thanks for taking the questions.

Yes. First, yes, we expect this growth to increased, the words I would you like to use and then I think I used in the commentary was that we would like to see steady increase and improved consistency, so I do not want this to like bounce back and forth between '15 and whatever. This things has to go steadily and our diversification across the emerging markets helps with that and I think we will see that I think the mid-teens goal is completely realistic over a period of time and that is what were aiming to get through the market opportunity is massive and it is really up to us to execute our variety of strategies and get the benefits from them, so in short, I expect this to steadily improved quarter-after-quarter.

Thanks for taking the questions guys.

Thanks, Larry.

Our next question comes from Bob Hopkins of Bank of America.

Thanks. Can you hear me okay?

Yes.

Great. Good morning. A couple of quick things, first, for Gary the synergy that particular $300 million to $350 million for this year. Can you just give us a sense as to how much has been realized here in the first half and also Gary if you would mind just walking through a little more detail why you think the streets sort of needs to shift a little bit from in terms of earnings from Q3 to Q4?

Well, as far as the synergy number of the $300 million to $350 million, I would say right now we probably have already achieved about 40% of that the 35% to 40% has already been incurred. We have indicated previously that a bigger portion would be in the back half of the year and that is kind of what we are still expecting, so I would expect that 60%-plus of the benefit will at the back half of the year so. We are right in line with our plans and our targets the back slightly ahead of where they are at but approximately 40 % we have already realized up to this point. With respect to the guidance just as far as taking look at the quarters and stop, all we are looking If you look historically, our Q2 and Q3 historically both revenue and bottom line are relatively consistent and there is not a big change overall between those two and we did a $3 here in the current quarter. We are assuming that there will be an R&D tax credit. There is a benefit for in the third quarter, so overall I would get you more in the $5 to $6 range and all we are saying is, that versus where the street it is at I think it is a bit higher than that number. On the other hand I would tell you I think the street loan lower in Q4 versus what we would have historically see as far as an uplift. So our saying is if you look at our historical modeling Q2, Q3 are usually relatively consistent and it is Q4 where you sees a big jump I think there has been two much way we put in Q3 right now and but again these are your models you guys can put together how you like, but that's if you look at history I think you are going to see that you are a little lit bit probably lower high in Q3.

Then for Mike and Omar and thanks for that Gary, can you guys just put in perspective the MRI safe ICD launch in the United States. Maybe relative to the MRI safe pacer launch how just how should we think about this launch in terms of the ability this product to take share or you are the only one in the market with such a product and then Omar I was wonder if you could just give some broad thoughts on kind of the state of Medtech right now in terms of what you are seeing across your businesses in terms of your surgical procedure volumes pricing just kind of a broad look at the current point of time if you do not mind?

Okay. Mike do you want to go first?

Yes. Bob maybe the best way to think about is just some statistics around mix, right, if you look at dual chamber pacemakers right now. Probably two-thirds of our product is MRI safe as we sell into initial implants - and with the recently, two quarters ago we launched the single chamber. We are probably now up to somewhere around 40% mix in single-chamber for MRI safe and we just launched the MRI safe ICD and our mix in the quarter would be probably somewhere around 20% so there is still a lot of room to run there. Obviously, we have not yet released the MRI safe CRT-D which we expected to do by the end of the year. So I think that might give you some sense of sort of how we see the mixed change taking place within our business.

With respect to the overall medtech market, look we have had a - the medtech industries has actually had a pretty good year and I think a lot of that is you look knowledge is driven by U.S. growth so U.S. has been stronger than I can remember for a long time and that is not only the medtech sort of companies but also hospitals. Now as we going to sort of calendar year '16, there will be some anniversarying that is happening and also some of the hospitals have reported slightly sort of lower growth rates, so we are watching this carefully. I do not know to what extent the procedure growth will continue at the same rate of growth. I do not think it will slowdown, per se, but the growth rate might well slowdown. So that is what we are watching very carefully and I think coming after the next couple of months it is pretty crucial to see how procedures go, but again really at the end of the day this is a U.S story and to a certain degree emerging markets Medtech has been resilient in the emerging markets compared to other industries simply because of the nature of the industry itself that governments continuing to invest there so that has been reach the bottom really has not fallen out that all and although I think we have our performed the overall market into the market in general it has been pretty resilient. So those things holding U.S. growth is what has driven the medtech industry. I think U.S. growth will anniversary probably steady a little bit. On the other hand, medtech in emerging markets might well start to improve I mean I do not know. I know our projections are that we will start to improve overall we will have to see, hope that helps.

Thank you very much. Thank you.

We have time for one more question, operator.

Thank you. Our final question will come from the line of Josh Jennings of Cowen & Company.

Hi. Good morning. Thanks a lot for taking the question. Just wanted to, Omar, start with first one is although it is relatively early since the close of the Covidien transaction, you have had three quarters of combined entity experience and just wondering how you are evaluating the entire product portfolio and whether or not you feel like you have increased flexibility now that pruning the portfolio or weed out lower growth, lower margin products and business units and whether we should be expecting that?

I think I kind of alluded to that a little bit. First of all, since the acquisition, we have set up Minimally Invasive Therapies Group under Brian. Brain and his team are really charted, a very clear and compelling vision for the future, which is outcomes-based and very aligned with the Medtronic mission, so that was the first step and I think I talked about the four areas of focus within MITG. Now we are looking at the entire range of assets that we have within MITG and kind of assessing that against the strategy and as we go through that process which were in the middle of doing in the next 6 months or so, we will take action as is necessary, but that is the way in which we are gauging it. So the first step was to kind of decide clearly and get full sort of excitement with the team and agreement with the team that this is where we should go which I think the team is put in place and understand with the core product technologies are that drive that and solutions that are necessary for that. Next is to look at the breadth of everything else and see what fits and what doesn’t. I mean somethings clearly do not and we’ll have to see how we monetize those assets as we move forward, but by and large that is the way in which we are looking at this.

Great. Then just follow-up for Omar and Gary, any updated views on potential revenue synergies outside of peripheral neurovascular? Thanks a lot gentleman.

Look, that is an area that is pretty active I mean one thing that you just try about was the in stroke were the linked our product feeding into the stroke care and vascular channel is one that is pretty high in our list. I can tell you that as a business, as a leadership team we work to figure out methodologies where internally we can have our selling groups of multiple products and do it in a way that is scalable unsustainable and then in an organized way around the world I think that first step was pretty important. So that area certainly is a big sort of enabler for us to move products around various sales channels and we have done that and we will have to see how these things go forward but there is a lot discussion between sales team using those principles without getting distracted from their main focus as to how accelerate their growth. So we are optimistic that we will start to see those but the specifics of those right now are still sort of being generated. The other area that I will point is the translation of the operating room managed services from Cath Lab I mean that is a big step for us and the acceleration there is pretty exciting. As you can see, like I said we have already closed six of those deals $140 million in cumulative revenue that is much faster than anything that Covidien was originally planning for and we are only beginning there, so those are the ways in which we are looking at this right now. Over time, we are creating a structure where we can use the combined nature and assets of our company to address many different problems both, from a technology perspective and from a comorbidity perspective, which would be an increasing problem in healthcare where we think we have the breadth of assets that we can address very effectively. Okay. With that thank you all very much for your questions and on behalf of the entire Management team I would like to thank you again for your continued support and interest in Medtronic and we look forward to updating you on our progress in our Q3 call in March 1. Thank you and all of you please have a great day. Thank you.

Thank you. This concludes today's conference call. You may now disconnect.