Welcome to Stryker's third quarter 2015 earnings conference call. My name is Anna and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Following the conference, we will conduct a question-and-answer session. During that time, the participants will have the opportunity to ask one question and one follow-up question. This conference call is being recorded for replay purposes. Before we begin, I would like to remind you that discussions during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings with the SEC. Also, the discussions will include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release that is an exhibit to Stryker's current report on Form 8-K, filed today with the SEC. I will now turn the call over to Mr. Kevin Lobo, Chairman and Chief Executive Officer. You may proceed, sir. Kevin A. Lobo - Chairman, President & Chief Executive Officer: (01:20 – 01:25) 2015 Earnings Call. Joining me today are Bill Jellison, our CFO, and Katherine Owen, Vice President of Strategy and Investor Relations. Following my opening comments, Katherine will provide an update on MAKO, and Bill will then offer details on our quarterly results before turning to questions and answers. Our Q3 results represent the tenth consecutive quarter of delivering a minimum of 5% organic sales growth, which reflects the strength of our diversified model and our commitment to achieving revenue gains at the high end of MedTech. Once again, all three business segments delivered year over year sales growth, as continued strong momentum in the U.S., which represents approximately 70% of our sales, more than offset modest constant currency gains outside…

Thank you. We will now begin the question and answer session. As a reminder, callers will be limited to one question and one follow-up question. The first question comes from Kristen Stewart from Deutsche Bank. Please go ahead.

Hey, thanks for taking the question. Just wondering if you could comment a little bit more on the Orthopaedic trends that you're seeing in the United States. It was a very good quarter across the board for the business and particularly within the Hip and Knee franchise. Just wondering if you're seeing early benefits just from MAKO and just being out there and talking through having the system, or if you're seeing just kind of any acceleration in the market or just some disruption from some competitors that are out there? Thanks. Kevin A. Lobo - Chairman, President & Chief Executive Officer: Thanks, Kristen. This is Kevin. Look, we're very pleased with the quarter, both in Hips, Knees, as well as MAKO. I would say that the team has done a terrific job in driving organic growth within Hips and Knees. Hips you've seen for the last three years we've been driving terrific performance. We're very pleased with the Knee momentum that we're seeing, and I think we got a bit of a shot in the arm with the launch of our cones, our 3D-printed cones for revisions. But it's been momentum building throughout the year. It's just really strong leadership, strong execution. The robot sales, of course, help. I wouldn't say that we've seen much in the way of disruption, so this is really more just driving organic growth and really building throughout the course of the year.

Okay, great. And then just in terms of the comments for outside the United States, with some disruption between China and Latin America, any level of visibility in terms of when that would turn around? Or, I guess just – for now – just expect that to continue into 2016? I guess that's the takeaway. Kevin A. Lobo - Chairman, President & Chief Executive Officer: Yeah, in my opening remarks I mentioned into 2016. I don't have a crystal ball, so it's really difficult to predict when the macro conditions will improve. We referred to capital equipment being particularly tough last quarter. We did see that spill over into implants, with distributors starting to lower their inventory levels, and we really don't have great visibility into how long it will last. I think it will certainly continue through the fourth quarter and into 2016, but it's something we're going to have to update you on as each quarter unfolds.

But Europe is turning around with the help of the Transatlantic model? Kevin A. Lobo - Chairman, President & Chief Executive Officer: Europe had a terrific quarter. A really excellent – we're in the sort of mid-single digit growth in Europe, and overall, you know Europe GDP is not growing at that rate, so we're very pleased with our performance in Europe and expect that to continue.

Our next question comes from David Lewis from Morgan Stanley. Please go ahead. David Ryan Lewis - Morgan Stanley & Co. LLC: Good afternoon. Kevin, I wanted to come back to SG&A for a second here. I think incrementally, across the year, I feel like the company has talked about more material opportunities for SG&A reduction. Can you give us a sense of what that opportunity is, perhaps the size of the opportunity, when we could hear more about it? And a related question for Bill – what's a reasonable level of leverage we can expect sort of going forward here at this level of sales? I think last quarter you told us maybe 40 basis points. What's an appropriate level as we think about 2016? And I had a quick follow-up for Katherine. Kevin A. Lobo - Chairman, President & Chief Executive Officer: Okay, all three of us. So I'll start. David, we've been working all year on plans around SG&A. We've taken a number of measures already, and we're working on evaluating some more significant measures. We still have significant scope for improvement in SG&A. We've talked before about the fact that we have very little in the way of shared services. We have many IT systems across our disparate organization. So there are significant opportunities. I'm not yet ready to quantify that and discuss that with you. Once we reach that stage, we will definitely tell you. We will be very thoughtful, as we were with GQO. We gave you a five-year road map with the amount of savings planned over that five-year period. You should expect to hear something like that related to SG&A, but we're just not ready yet and I don't want to speculate on exactly when we'll be ready to communicate. But work…

Our next question comes from Bob Hopkins from Bank of America. Please go ahead.

Okay, thank you. Can you hear me okay? Kevin A. Lobo - Chairman, President & Chief Executive Officer: Yes, we can.

Great. Good afternoon. First question, Kevin, I just wanted to follow up on the emerging markets. Interesting that you'd see it spill off into implants. I know you don't have a lot of visibility, but what's your best estimate right now from what you're hearing from the field in terms of why this is happening? Is it simply just the economies over there or just any other color would be appreciated. Kevin A. Lobo - Chairman, President & Chief Executive Officer: Yeah, I mean what we're seeing is – certainly in Brazil – it's a market slowdown, complete slowdown in the market, and that's obviously the biggest country we have in Latin America, and so it's both capital equipment as well as implants. In China, we saw capital equipment slowing down earlier in the year. This quarter, we saw implants starting to slow down. And it really, as far as we can tell, is related to macro concerns, and the distributors are just nervous. They're worried about their cash flow. And so, it's not something that I think will continue indefinitely, but it's something that we saw, certainly in certain parts of our business. We see it in Spine and Trauma more acutely than we saw it in Hips and Knees, but it was pretty broad based, and that's something we'll continue to monitor. But I don't have great visibility, honestly, into how long it will last.

Okay, and then the second question. Kevin, I'd love you to comment on capital allocation. We haven't seen a lot of deals from you guys. Just talk about the environment there. And then also if you don't mind, just talk about your confidence as you look at your business going forward into next year, confidence in being able to continue to grow the top line in that 5% to 6% area. Thank you. Kevin A. Lobo - Chairman, President & Chief Executive Officer: Yeah, thanks, Bob. First of all I'll start with the second part of your question. I feel very good about the health of our business overall, with the one exception of the emerging markets, which I think will continue to be difficult. If I look at just across our businesses, the management teams we have in place, our ability to execute, we've had 10 quarters in a row of at least 5%, and I do believe it's sustainable. Like every year, in 2016 we're going to have our share of tailwinds and headwinds, but – and we'll give our guidance in January as you know – but I feel very good about our execution, our management teams and our ability to consistently deliver strong sales growth. Now, related to – what was the first part of the question – on capital allocation? I would tell you, you know that all of our divisions have BD people that are out looking at targets. I would say there are plenty of targets that are out there. We haven't closed very many deals, at least, not as many this year as we have in the past couple of years. But that's not a function of lack of targets. It's just making sure that the valuations work, and that the deals are going to be value-creating for Stryker. So as you know, M&A is difficult to predict in terms of timing, but we do feel that there are a significant number of attractive targets out there and our teams continue to work on that. And that does continue to be our first priority in terms of using cash.

Our next question is from Mike Weinstein from JPMorgan, please go ahead.

Thanks, guys. I just want to follow-up on some of the questions that have already been asked. So first question would be can you peel the onion a little bit more on the OUS performance? I mean, you've talked about Brazil really slowing down, and Europe, you said, was still mid-single digits. Do you have any geographic breakdown, whether it's developed world versus emerging markets or Europe versus Latin America versus Asia? Any other insight you could give us? Because U.S. looks great this quarter, obviously with the Ortho business. International barely grew, so some more color there would be great. And then the second point of follow-up, you talked about the 20 to 40 basis points of expected annual margin expansion. I just want to be clear. Is that what our expectation should be for 2016 or do you think you can do better than that next year based on what you're working on? Thanks. Katherine A. Owen - Vice President-Strategy & Investor Relations: Hey, Mike, it's Katherine. I'll take the first part of the question. International really was very much driven in terms of the headwinds we were facing by China and Brazil, and it was really an extension of some of the trends that we saw in the second quarter. With China, it was capital has been challenged there, given that's government self-pay, but with some of the pull-back we have seen that impact the implant business as well. And then in Brazil, with the country in a recession, that has impacted that business. So really outside the U.S., it's very much China and Brazil that are pulling down the numbers. Europe, with the Transatlantic Operating Model, we're really seeing very good momentum. I think Kevin cited the mid-single digit growth we're seeing there, and stronger performance in other geographies like Japan and Australia. So really, I would say it's very much isolated to the emerging markets of China and Brazil. Bill, do you want to? William R. Jellison - Chief Financial Officer & Vice President: Sure, on the operating margin side of the equation, as I mentioned before, we are generally comfortable with kind of that 20, 40 basis point improvement moving forward. We think our businesses are structured in a good way to deliver that. A key part of that is based on price and also based on our top line sales growth. Kevin mentioned, or alluded to, at least, being comfortable with kind of something in the same type of sales growth range, even for next year. If we deliver in that type of a range, we would still expect to get reasonable operating margin leverage off of that. We have not given any guidance, obviously, for 2016. We'll have to take a look at kind of where FX is as well as the markets are at that point in time, and we'll give better guidance with our next call.

Okay, Bill, just one follow-up to that. So just on FX, do you have a sense at this point, assuming no change in rates, what the FX spillover would be to the bottom line next year? Like, what incremental headwind you'd have in 2016 to earnings versus 2015? William R. Jellison - Chief Financial Officer & Vice President: Yeah, I'd say that right now based on where current rates are at, we would only expect maybe somewhere in the $0.05 range of a negative impact for next year, but again, it depends on where rates change over the next quarter on what we look at and when we give our guidance. But that's probably a reasonable range at this point.

And our next question is from Rick Wise from Stifel. Please go ahead. Rick Wise - Stifel, Nicolaus & Co., Inc.: Good afternoon, everybody. Back to MAKO, Katherine, you talked about opening current new accounts. You came in a couple of systems better than I was looking for. And just in talking about the new accounts, it's early I know, but can you give us a little perspective? Are these new accounts impacting share? Are you seeing pull-through? How/when do we start to see that? And I assume that MAKO should have another good fourth quarter. I assume you expect fourth quarters to be typically normally seasonally strong. Katherine A. Owen - Vice President-Strategy & Investor Relations: Yeah, with all of our capital businesses, the fourth quarter tends to be the strongest quarter and MAKO would be no exception on that matter, so we would expect a solid fourth quarter. I think it's just too early. Clearly, the Knee indication has sparked a lot of interest in the clinical community and there's a lot of excitement around it. But I think at this point, how early we are in starting to roll out and in fact that we're in really the training stages, and not being in full commercial release until late next year, it's just too early to say. I think what you're seeing on the organic Hip and Knee performance in the U.S. is a lot of good execution, certainly bolstered by MAKO, but MAKO isn't having the impact, for example, on our Knee or Hip momentum that we would expect to see particularly with the former as we head into 2017. Rick Wise - Stifel, Nicolaus & Co., Inc.: All right. And, Kevin, maybe my second one for you, can you talk a little bit more, give…

And our next question is from Matt Taylor from Barclays. Please go ahead.

Hi. This is actually Yong Lee (33:50) in for Matt. Thanks for taking our questions. I guess regarding MAKO, a strong system number this quarter. Just wondering what's the breakdown between purchase system versus financing? Katherine A. Owen - Vice President-Strategy & Investor Relations: We don't break out the mix, although I would say it's still dominated by purchases, but there's a decent component of leases as well. And that's really aided by our Flex Financial Group that's been around for a number of years now and exists throughout all our capital businesses within MedSurg as well as Ortho.

Okay. Great, thanks. And on Foot and Ankle, the growth is strong, nearly 20%. Is that largely market growth or are you starting to take some share? Kevin A. Lobo - Chairman, President & Chief Executive Officer: I would say that the market continues to be a very attractive segment. We're doing well in the market. We're very pleased with the SBI acquisition we did a year ago, which rounded out our portfolio. But you've seen over the past three years, we've been experiencing great growth. I would say it's primarily market driven, but in some cases we are taking market share. But I would first look at the market as being the major driver.

All right. Great. Thank you.

Our next question is from Matt Miksic from UBS.

Hi. Can you hear me okay? Kevin A. Lobo - Chairman, President & Chief Executive Officer: Yes, we can. William R. Jellison - Chief Financial Officer & Vice President: Yes.

Thanks for taking our questions. So a couple of follow-ups on some of the topics that folks have hit on already. One, MAKO, you talked about the uptick in Hip and Unis. Maybe Katherine, or if you could talk a little bit about what kind of traction maybe? Any color you can give on the kind of traction you're seeing with Hips? And I have one follow-up. Katherine A. Owen - Vice President-Strategy & Investor Relations: I would say just reflected, and as we continue to place more robots sequentially, you're seeing the impact it's having with our very large sales force out there, articulating the benefits of using a Hip in both robotic. They don't need to establish a lot of credibility in market share in Uni so the gains there are less significant. But in Hips, having our sales force well into the integration now being able to articulate the benefits has really helped drive that adoption.

Any impact of some new software or new applications? I know you're probably on version two or three or four now in terms of the system. Anything there that's starting to make things a little easier for folks? Or any color? Katherine A. Owen - Vice President-Strategy & Investor Relations: Yeah, I think any time we do any improvements, it certainly helps. But I think the biggest factor is having our considerable sales force obviously much, much larger in size out there, aligned and coordinated with their MAKO counterparts, going into hospitals. And those are both our own customers, as well as competitive accounts, and being able to place a robot and then drive the adoption obviously with Uni and Hips. And then as we go forward, the economic value proposition only improves as you start to layer in the Knee.

Got it. And then on Spine, appreciate the Q&A and access last week in going through some of the new products. The business is still obviously not, I would assume, where you want it in terms of growth perspective. What can we look for there in terms of catalysts to sort of get that moving? Is it launches? Is it sales force? Is it strategic activity? Any color would be helpful. Katherine A. Owen - Vice President-Strategy & Investor Relations: Yeah, we're really pleased with the momentum that we're seeing in the Spine business. And that really is several years of increased investment in R&D. We have a terrific R&D leader in there, who I think you saw last week at NAS. We've launched something like 10 new products in the last six months. That's more than we've launched in the last two years, collectively. And we have a nice pipeline of new products slated to be launched as we're going forward, so we're going to focus on R&D, driving innovation, and optimizing the sales force and that's all the things that the current leadership is executing on. So, that will be the focus. There's no magic bullet here, but we're going to continue to look at that and clearly pleased with the impact some of those products are having. Kevin A. Lobo - Chairman, President & Chief Executive Officer: Yeah, certainly you've seen the numbers in the U.S. pick up and we're encouraged about the U.S. We have work to do outside the United States. A lot of those products have not yet been registered. We haven't launched many products including the CoAlign acquisition, which has given us a shot in the arm in the U.S. We're just working through all the manufacturing transition into Stryker. So, the product tail does lag a little bit outside the U.S. We have work to do there, and certainly OUS was also impacted by the slowdown both in China and Brazil. So, not pleased with the OUS results, but very pleased with the momentum in the U.S. and as we launch those products outside the U.S., I would expect the OUS business to pick up.

And our next question comes from Joanne Wuensch from BMO Capital Markets.

Thank you very much. I have two questions. The first one has to do with cross-selling amongst your portfolio and what you're seeing in terms of being able to leverage your Orthopaedic as well as the other areas. And then the second question has to do more broadly with any changes at the CMS level for the pilot program for bundled payment, what you think that may or may not impact your business. Thank you. Kevin A. Lobo - Chairman, President & Chief Executive Officer: So I'll take the first question. I would say cross-selling is something that we do wherever we believe that the customer is interested in dealing across our businesses. So the area that we tend to see this the most is in Neurotechnology, where our customers will express an interest for a Neurotechnology offer, and then our divisions will then work together collectively. So it's generally in response to a customer request. It's not something that we do proactively and that we're pushing from the center. It's really in response to customer needs. But our divisions work extremely well together. Katherine cited an example of Flex Financial which is a unit that sits inside of our MedSurg group that helps MAKO sell robots within our Orthopaedic group. So collaboration does work very, very well at Stryker, but it's something that tends to be very based on customer needs, and not pushed from the center. Katherine A. Owen - Vice President-Strategy & Investor Relations: And then, Joanne, with respect to your second question, I would say that since this is really not new to the industry, really more moving over the next few years within Medicare to a mandatory, what you tend to see in this situation is a much bigger focus on the post-acute care, particularly patients that are discharged to rehab because the dollars there and the opportunities for cost savings are much, much greater than any of the other areas. So what we've seen is they tend to focus there is significant disparity around the U.S. in terms of what patients are sent home versus those that go directly to rehab. And we'd expect that trend to continue. Doesn't mean pricing pressure isn't going to go away. We just don't believe that's going to be a trigger to change dramatically the pricing backdrop within the implants.

The next question is from Glenn Novarro from RBC Capital Markets.

Hi, good afternoon. I had two follow-up questions on Spine. Kevin, the U.S. Spine number came in better than we thought, and I'm just curious, is that a function of a stronger Spine market in the U.S.? In other words, better unit growth, less payer pushback and pricing pressure? Or is this market share gains given your new product rollouts? And then as a follow-up, in the past, Kevin, you've talked about wanting to grow Spine organically and inorganically. Given the strength of the current pipeline, should we start to assume that internal development is the way you're going to go versus M&A? Thanks. Kevin A. Lobo - Chairman, President & Chief Executive Officer: So, first thing I'd say is the Spine market's been a pretty stable market over the last couple of years, and so I don't believe the market is suddenly improving magically. I would say the last two quarters we've been very pleased with our performance in the U.S., and we believe that's because of the new products that we're launching and that we're growing faster than the market. Now, of course, not everybody has reported yet, so we won't have a full picture on our share gains in this quarter until everyone else reports. Related to the organic versus inorganic, we're very pleased with growing our business organically. That's always the best way to drive value in our businesses. And as it relates to inorganic, all of our divisions are constantly looking for acquisitions. I certainly don't feel compelled to do a deal, because you can see we're posting nice growth with our organic performance. But we're always on the lookout for acquisitions. But that's not unique to Spine; that applies to all of our divisions.

Okay, thank you.

And next question is from Raj Denhoy from Jefferies. Please go ahead.

Hi, good afternoon. I wonder if I could ask a bit about MAKO, and you laid out your plans over the next couple of years in terms of collecting data before you go broader with the technology. And I'm curious as you start to think about the data and where you think the opportunities are to present the compelling case to hospitals to adopt it, is it primarily going to be focused on efficiencies and hospitals running their practices more efficiently? Or will it be focused on patient satisfaction, or perhaps both? Anything you could give us on that would be helpful. Katherine A. Owen - Vice President-Strategy & Investor Relations: Yeah, sure, Raj. I think as you think about what we said in terms of the early launch, was we're really looking at observational outcomes with both existing robotic and non-robotic users, but really focusing on the key opinion leaders who really have a presence at the podium. And we're going to be evaluating everything from implant positioning, adverse events, ligament releases, patient satisfaction, that's going to be a lot of the initial focus. Absolutely over time we'll be developing, I'm sure, more robust clinical evaluations or trials, but right now that's going to be the focus initially.

So less on the cost side it sounds like initially in terms of hospitals being able to do orthopaedics more efficiently or cheaper. Katherine A. Owen - Vice President-Strategy & Investor Relations: I think that's something that will come over time as surgeons move up the learning curve and gain greater experience. But given a very limited launch early on as we look to optimize the training protocol, that won't be the focus.

Our next question is from David Roman from Goldman Sachs. Please go ahead. David Harrison Roman - Goldman Sachs & Co.: Thank you, and good afternoon, everybody. I want to just start with a strategic question, and Kevin, this does relate to your comments around emerging markets. I think if we look back a few years, those regions represented a significant priority for you as some of the U.S. businesses were a little bit more sluggish. But maybe in the context of what you're seeing today, can you maybe just help us understand where you're prioritizing your investments? And as you think about those investments, where should we expect to see the greatest return within your business? Kevin A. Lobo - Chairman, President & Chief Executive Officer: So, sure. Right now, emerging markets represent about 8% of Stryker's sales, and that's clearly below MedTech. It's not a bad time to be less exposed to emerging markets, but that doesn't mean we aren't committed for the long term. Our India business is doing well. China will be an important market for the future, so certainly we're not going to invest at the same rate that we've invested the last couple years while we weather the current storm. But we are in it for the long term and we do plan to grow in emerging markets. It's just – we had planned previously to be a little bit more aggressive in areas like Russia and Turkey. That's currently not a good a use of our investment right now, so we'll sort of hit the pause button in those countries. And then as the market conditions improve, we'll dial up the investments. Very pleased with the investments we made in Europe; those are driving terrific returns. As an overall company, we do want…

Our next question is from Matt Keeler from Credit Suisse. Please go ahead. Matt J. Keeler - Credit Suisse Securities (USA) LLC (Broker): Thanks for taking the questions. First, can you help us think about the MAKO total knee opportunity? You talked about MAKO success in Uni and the share gains – I think 17% over four years. Once the total knee is launched starting in 2017, do you see the potential for a similar magnitude of share ramp going forward from there? Katherine A. Owen - Vice President-Strategy & Investor Relations: Yeah, we haven't quantified the targeted gains. We have been very clear that we do expect, once it's in full commercial release, to begin to get on a trajectory to gain meaningful market share, and we would expect to be on that trajectory in 2017. I wouldn't be assuming quite that level of share gains, but we also want to get some experience under our belt. This is brand new to the industry, and – but we're really excited about the impact it will have in terms of driving share gain in 2017. I think as we get closer to that timeframe and we think about setting our targets for 2017, we'll be able to have a better sense of what that could practically mean. Matt J. Keeler - Credit Suisse Securities (USA) LLC (Broker): Okay. Great. Thanks. And just I'll stick with MAKO. As you invest in training next year as you get the launch underway, do you expect that to be a drag at all on margins ahead of when you're fully launched in 2017? Katherine A. Owen - Vice President-Strategy & Investor Relations: No, I think you should just assume that'll be contemplated within our normal spend.

And our next question is from Larry Biegelsen from Wells Fargo. Please go ahead.

Good afternoon. Thanks for taking the question. Two for me. One on MedSurg. One on Neurovascular. Starting with MedSurg, the growth has slowed a little bit this year. I know you talked about a new camera, I think in Q4, in endoscopy. Could you just talk about just when – how long it will take to kind of re-accelerate the growth across MedSurg, and some of the other kind of new product cycles we should be thinking about? And I had one follow-up. Thanks. Kevin A. Lobo - Chairman, President & Chief Executive Officer: Sure, so the first thing I'd say about our MedSurg businesses is they had an absolutely huge quarter in the third quarter of last year. If you look back at the numbers that we posted, close to 20% growth in a number of our – of those businesses – so very tough comps. And we're very pleased with our Medical division and expect them to continue to perform very well. Endoscopy, certainly we've had a few challenges related to the Berchtold integration. That's starting to pick up steam, and I'm feeling very optimistic about that. That camera launch, it's sort of the end of the 1488 camera cycle; we're moving to the 1588 platform. That will be launched toward the end of this year, and certainly there was a little bit of a delay in orders as people are anticipating that launch. The one product area that is later in its cycle is our system 7 power tools, within instruments, but if you look at the instruments numbers, they continue to post pretty strong results throughout the rest of their portfolio. But that's one area as you look into 2016 where you can anticipate maybe a little bit of a moderating of growth as it gets towards the latter part of their cycle. But they have another range of products that they can sell, and they're performing very well. So I would tell you I'm very pleased with our MedSurg performance. I know that the absolute growth in this quarter looks a little smaller, but again, on the back of an outstanding third quarter of last year. It's not like our business is slowing down or that we're losing momentum or losing share. I feel like we have very, very solid businesses that will continue to perform well.

Thanks, Kevin. And then on neurotech and Neurovascular, the growth's obviously been very strong recently. Can you help tease out how much of that growth is from the Trevo benefiting from the new stroke data versus your coils and flow diverters also growing? And any update just on how the stroke market is evolving since all the new positive data earlier this year? Thanks. Katherine A. Owen - Vice President-Strategy & Investor Relations: Yeah, well, I would start by saying when you look at our portfolio it does address both hemorrhagic and ischemic, but the majority of the revenue is still driven on the hemorrhagic side, which is going to be the coils and related accessories where we're seeing growth. Ischemic growth is certainly outpacing that, but it's a much smaller market at this point in time. And it's certainly benefiting from data, whether it's the MR CLEAN study that showed using stent retrievers, including the majority of the retrievers used in that device was our own, absolutely have a benefit on patients, and this was further enhanced with the AHA guidelines that came out earlier in their year. So that data is really underscoring the benefits of these devices that are the only devices that have clinical data supporting their use in ischemic patients. So growth there is much faster, but obviously off a much smaller base.

And our next question is from Matt O'Brien from Piper Jaffray. Please go ahead.

Hi, everyone. This is GP (51:57) in for Matt. Thanks for taking my question. I had one on just the competitive landscape that you're seeing in maybe Hips and Knees, especially with kind of new entrants into the market and maybe other large integrations with Zimmer Biomet there, if you're seeing any displacements or distractions? Katherine A. Owen - Vice President-Strategy & Investor Relations: There really haven't been any new entrants into the Hip and Knee market. The competitive backdrop has been very stable. I think as we think about the merger between Biomet and Zimmer, they're obviously a considerable player in the market. We haven't seen them report Q3 results, so like you, we're at a disadvantage. We feel very pleased with the momentum we're seeing in the business. We have said it's usually a few quarters in before you really get a sense if any dissynergies are tracking above or below what they anticipate, but we're really focused on our business. We have got a great portfolio of products. Obviously, the MAKO and the new indication we see as a huge benefit. We'll see what happens to them, but really the focus right now is gaining traction with our own customers and using MAKO to get into some competitive accounts.

Great. And if I could just ask one on MAKO, if you think about the pipeline of new indications that you're kind of looking at in your R&D, what's next? Should we think about maybe a shoulder or maybe moving into spine? But just trying to see what you have there. Katherine A. Owen - Vice President-Strategy & Investor Relations: I would say when you think about it, right now, essentially all of our focus is on the recon market. I can't underscore enough the amount of time and energy that's being put into the total knee launch to make sure it is executed as close to flawlessly as possible. We do think that is the biggest indication and can have considerable impact on the market. I think there will be downstream applications in other areas of joints, whether it's in the shoulder or in the spine, but that is multi years away from where our focus is right now.

And our next question is from Ben Andrew from William Blair. Please go ahead. Ben C. Andrew - William Blair & Co. LLC: Great. Maybe just talk a little bit about the Foot and Ankle business. It was up 20% or so in the quarter, and how much of that is sustainable over time, given what the current competitive dynamic is versus maybe the underlying market growth? Kevin A. Lobo - Chairman, President & Chief Executive Officer: Yeah, so new markets are often difficult to predict, right? So when we created our Foot and Ankle business unit a few years ago, I really didn't expect that the market would be this big and that the growth would be this high. So it's been a fantastic business unit for us, performing extremely well mostly with organic growth. We had, obviously, the SBI acquisition as well. The market still seems to be very hot. There's still a lot of surgeons that are increasing their volumes, and more and more surgeons getting trained. So we do believe that this will be a high growth market for the foreseeable future. Now, whether it stays up at the 20% or starts to moderate, I'm not sure, but we're not really concerned about competitive dynamics. We have a great product portfolio, very strong sales force execution, and when you're riding market growth and you've got the products and the sales force, it's a good place to be. Ben C. Andrew - William Blair & Co. LLC: Great, thank you.

Our next question is from Richard Newitter from Leerink Partners. Please go ahead.

Hi. Thanks for taking the questions. Just two quick ones. Maybe the first one on MAKO, Katherine I guess. Can you characterize the types of accounts that are purchasing the system right now or is it possible to do so? Any certain types of characteristics, academic centers, community hospitals? And then also, what percentage of your installed base or new systems over the last few quarters are going to multisystem accounts? Katherine A. Owen - Vice President-Strategy & Investor Relations: That, the latter, very small. And it really covers the entire range; we're seeing all sorts of customers out there. I wouldn't be able to characterize it as one specific type of hospital. We have some hospitals with one robot, some with multi. We have some that were existing customers, some that are competitive customers, some that are buying the robots, some that are leasing the robots. So it really is the full range. There's not one specific characteristic that I would point to.

Okay, thanks. And then Kevin, just going back to M&A, obviously there's been quite a bit of turmoil in health care equity markets. Valuations look like they've been pulling back. To the extent that – were valuations in any way potentially something that was slowing down the process for you guys as you've looked around? And does this kind of recent pullback make things more attractive from your seat? Kevin A. Lobo - Chairman, President & Chief Executive Officer: So, M&A, the timing of M&A is always difficult to predict. And valuations is one factor; it's not always the only factor. We also have issues sometimes around quality, of remediation that's required. Sometimes it's cultural fit, so there's always a range of issues that we go through when we're looking at a target, and as we get under the covers and do due diligence, then we sort of figure out whether we really want to move forward or not. Valuation clearly is always one of the factors, but I wouldn't say suddenly, just because we have a temporary market pullback that the companies are ready to sell to us at a much lower price. So, I think it will take a little time for that to settle in, but clearly, valuations is one of the factors that we look at and one of the reasons that we won't move forward. But it's not the only reason.

And our next question is from Josh Jennings from Cowen & Co. Please go ahead. Joshua T. Jennings - Cowen & Co. LLC: Hi. Good evening. Thanks a lot. One question on MAKO first. Can you just talk about the robotic competitive landscape that you're seeing from direct competition, Omni or Blue Belt, and then how you see that evolving now with the total knee application approved? Kevin A. Lobo - Chairman, President & Chief Executive Officer: Yeah, so I tell you that we're not focused at all on the competition. We really don't see Blue Belt as a fully robotic solution. It's really, in our view, it's an enhanced navigation system. It doesn't have the type of features that our system has. So we really believe we're alone in the purely true robotic space, and we have a long runway ahead of us. And we're really not concerned with the competition. Joshua T. Jennings - Cowen & Co. LLC: Great, and just a follow-up for Bill. You had some discussion about opportunities for operating margin expansion. Any chance you can give us some more details on where you see those opportunities in the different business units? Are there more opportunity in recon versus Neurotechnology versus MedSurg? Any further detail would be great. Thanks a lot. William R. Jellison - Chief Financial Officer & Vice President: Sure, so I mean, one, we don't break that down externally at all. But I mean, you should expect that any of our businesses that are seeing mid-digit plus kind of organic level growth, we would expect to get reasonably good operating margin improvements on that over time. And based on the market growth dynamics in different geographies and/or in aggregate for a business, if the growth rates are down in the lower single digit range, you probably shouldn't expect really any operating margin improvements. As that goes up though, we should definitely get operating margin leverage in almost any of our businesses. And I think that, in general, that's what we're driving to achieve over a two to three year period of time, on average.

And our next question is from William Plovanic from Canaccord Genuity. Please go ahead.

Great, thanks. So two brief questions, one on MAKO. How long were the cost or time associated with updating those to accommodate the total knee into your current number of systems out in the field? And then second question for Bill, just on the gross margin, that was a huge increase. And I know you gave us the reasons, FX mix and efficiencies offset by price, but I was wondering if you could quantify those. And then how much of that – are we at a new level – we're going to be 50 bps, 100 bps higher going forward? Or will we just drop back down to where we were in the first half of this year and this is kind of a one quarter gain just because we had the big U.S. quarter? Thank you. Katherine A. Owen - Vice President-Strategy & Investor Relations: Yeah, Bill, just – I want to make sure I'm understanding the question – you're saying how long it takes to physically upgrade an existing account to the new indication, to the new robot? The software and the related hardware components?

Well, It's really just how long will it take until you're through to update all the units in the field? Is that, like, through 2016, you'll be done by the end of the year? Katherine A. Owen - Vice President-Strategy & Investor Relations: I would say at the end of 2016, we feel like we'll be in a very good position to go into a full commercial launch and we won't be limited by the need to upgrade existing customers. You're always bringing on new customers, but that's part of the reason to have a very measured, controlled rollout, is to make sure that we're in a position really to put the pedal down when we go into full commercial launch. William R. Jellison - Chief Financial Officer & Vice President: As far as the gross margin rate question is concerned, so yes, it was a very good quarter, as I mentioned, really in the early part of this year, both in the first and second quarter. We talked that our gross margin rates were going to improve as we moved into the third and even in the fourth quarter of this year. Our expectation maybe from a breakdown of some of the categories, so two of the biggest impacts in this quarter are FX and mix, and maybe a little bit on the pricing, since pricing was only at 1.3% for us. But FX and mix were probably, if you look at the total improvement, they're probably each in the 50 basis point plus range as far as the impacts that they have. Keep in mind that a lot of our products are manufactured in Europe, so as the European or the Euro currencies have been declining this year and the U.S. has stayed strong, we've actually continued to get improved gross margin rates from FX, despite the fact that FX on the bottom line at the EPS level has actually been negative for us. And then, same thing on the mix side. I think that you should expect both of those to continue as we move into the fourth quarter. And then you should look more from an anniversary perspective that the improvements that we'd expect next year would be relatively modest at the gross margin level, but we'll get into that as we announce our overall expectations for the year. Generally, if price is at the upper end or in the 1.7%, 1.8% to 2% range, we'd expect our gross margins to be relatively flat in that kind of an environment.

And there are no further questions at this time. I will now turn the conference over to Mr. Kevin Lobo for any closing remarks. Kevin A. Lobo - Chairman, President & Chief Executive Officer: So, thank you all for joining our call. Our conference call for the fourth quarter 2015 results will be held on January 26, 2016. Thank you.

Thank you, ladies and gentlemen. This concludes today's conference. You may now disconnect.