Good morning, and welcome to Sysco's First (sic) [Second] Quarter Fiscal 2018 Conference Call. As a reminder, today's call is being recorded. [Operator Instructions] I would like to turn the call over to Neil Russell, Vice President of Investor Relations and Communications. Please go ahead.

Thanks, Megan, and good morning, everyone. Welcome to Sysco's Second Quarter Fiscal 2018 Earnings Call. Joining me in Houston today are Tom Bené, our President and Chief Executive Officer; and Joel Grade, our Chief Financial Officer. Before we begin, please note that statements made during this presentation that state the company's or management's intentions, beliefs, expectations or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act, and actual results could differ in a material manner. Additional information about factors that could cause results to differ from those in the forward-looking statements is contained in the company's SEC filings. This includes, but is not limited to risk factors contained in our Annual Report on Form 10-K for the year ended July 1, 2017; subsequent SEC filings; and in the news release issued earlier this morning. A copy of these materials can be found in the Investors section at sysco.com or via Sysco's IR app. Non-GAAP financial measures are included in our comments today and in our presentation slides. The reconciliation of these non-GAAP measures to the corresponding GAAP measures are included at the end of the presentation slides and can also be found in the Investors section of our website. To ensure that we have sufficient time to answer all questions, we'd like to ask each participant to limit their time today to one question and one follow-up. At this time, I'd like to turn the call over to our President and Chief Executive Officer, Tom Bené. Thomas L. Bené - Sysco Corp.: Thank you, Neil, and good morning, everyone. Our second quarter results represent continued momentum in the business, most notably in the top line fundamentals, driven primarily by solid case growth. The quarterly results also include some circumstances that created gross…

Thank you, Tom. Good morning, everyone. As Tom mentioned earlier, we are pleased with the top-line fundamental results for the second quarter. Our earnings growth reflects strong sales and case growth, partially offset by challenges from inbound freight, increased investment in our sales force and national customer startup costs in our U.S. operations. In addition, our continued transformation investments and integration costs in Europe, as well as the reporting change from a calendar year to fiscal year impacted our performance for the quarter. This morning, I'll start with our quarterly results. For the quarter, sales grew 7.1%. gross profit grew 5% while adjusted operating expenses grew 5.3%, which resulted in adjusted operating income growth of 3.9% and adjusted earnings per share growth of 34.5% to $0.78 per share. As Tom mentioned, when further adjusting for the tax benefit, our adjusted earnings per share grew 13.8% to $0.66. This further adjustment assumes a consistent statutory tax rate to the previous year and provides a better apples-to-apples comparison of performance on an EPS basis. For the second quarter of fiscal 2018, we saw foreign exchange benefit to sales of approximately 1%. Sysco experienced inflation across all of our segments in the second quarter. In our U.S. Broadline business, we experienced 3.3% inflation, driven by a few categories including meat, dairy and produce. The pace of inflation increases in some of these categories was rapid, ultimately driving overall inflation. Within our international business, inflation was a combination of both product costs increasing along with currency translation in the UK. During the quarter, we had gross profit growth of 5%, driven by overall volume growth and improved Sysco Brand penetration. As Tom mentioned earlier, the increased inbound freight expense is a headwind for gross profit dollars as both the product cost and associated inbound…

Your first question comes from the line of Kelly Bania with BMO Capital Markets.

Hi. Good morning. Was hoping you could just help us kind of understand the components of the pressures on the margin, the inbound freight, the investments in the sales force and the startup costs. Can you quantify those? And just particularly on the inbound freight costs, how are you thinking about passing those along if those continue? And what is the mechanism to pass those on, on the local side and the multiunit side? Thomas L. Bené - Sysco Corp.: Good morning, Kelly. Let me take a cut at that and then give Joel an opportunity as well. Let's start with the freight and the margin side. So inbound freight obviously does impact our gross margins. And as I think everyone's fairly aware, there's been significant increases, specifically in spot loads in the marketplace, driven by carrier challenges with drivers primarily. A lot of it started with some of the recent storm activity in the our first quarter or the third quarter in the U.S. and has continued and we continue to see that impacting our business. We're able to pass on some of that certainly to our contract customers, and we are doing everything we can to try to move that along as quickly as possible. But on our local customers, it's obviously a little more sensitive. We're having to deal with both product inflation and the cost of that inbound freight. And it's just a balancing act of how much of that you can move through at any point in time with those local customers. And so, we continue to work on that. We, I think, are doing as good a job as we can, leveraging in some of those tools we've built in our past and we've talked about regarding revenue management. But the fact remains that…

Yeah, I think the only other thing I'd add is, we talked about some of the startup costs, again, we certainly have continued to talk about our disciplined approach to growing our business. And we did, as Tom mentioned earlier, take on some additional multiunit business and have incurred some startup costs associated with that. And so, I think the one thing I would take away from a lot of that stuff, certainly, some of the challenges in the inbound freight were certainly actively again (22:21) to do something with. And these other areas with some of the investments in the sales force as well as some of the startup costs for some of these multiunit customers certainly over time obviously, we expect some benefit out of that to come through.

Okay, that's helpful. And then just another one on the local case growth, obviously very strong, ahead of your target for the next couple of years I think the strongest growth on the local in several years over the past couple of years. But just curious if you feel like that was market share gains on the local side or you feel like that local customer in general is improving? I know it's hard to pinpoint, but what's your sense just from talking to your customers? Thomas L. Bené - Sysco Corp.: I think, Kelly, it's a combination of all. I think we're certainly having success and gaining some share in certain markets. And I think as we've talked we feel pretty good about that local or independent customer, that restaurant operator, in particular their ability to continue to grow in the local marketplace. So I think it's a combination of both.

Okay. Thank you.

Your next question comes from the line of Vincent Sinisi with Morgan Stanley. Your line is open. Vincent J. Sinisi - Morgan Stanley & Co. LLC: Hey great, good morning guys. Thanks very much for taking my questions. So just to go back, I know the big question on folks mind of course around is kind of the margins. And as you had mentioned in the past, in an inflationary environment, should we basically think of it as obviously the dollar's going up, the percentage going down. But I guess, more of my question is, as we're getting into the second half of the year when you're starting to go against compares that are less increases from last year, should we – I guess, maybe just any thoughts on how you see that in the back half of this year for folks would be helpful. Thomas L. Bené - Sysco Corp.: So again – Vinnie, good morning. Vincent J. Sinisi - Morgan Stanley & Co. LLC: Good morning. Thomas L. Bené - Sysco Corp.: One, I think you got it right. Obviously, as with inflation, margin dollars are going to go up generally and the percentages are going to be pressured a bit. And we are seeing that. As an example, our gross profit per case has actually gone up in the second quarter. So we feel good about that. Remember though, this inbound freight thing is going to impact our gross profit line as well, so you got to continue to keep that in mind. That's beyond the inflation. And then I think as you think about it going forward, we're going to have some of those inbound freight challenges, we believe, will still be with us in the next couple of quarters. We're going to do everything we can to mitigate that and pass along where we can, but we know that's going to continue to be in there. And I think not knowing exactly how inflation is going to play out and as you guys know and as we talked about a lot, it's not – even though it's an average number we talk about, there are certain categories that are moving a lot more than others and produce is a great example of that, certainly impacted by some of the activity and the storm activity that's affected various parts of the U.S. So longwinded way of saying I think modeling going forward, you should probably expect some continued pressure on the gross margin percentage. But we should be continuing to be able to grow our gross profit dollars at the rates we've talked about, and our – for case gross profit, we anticipate to also be favorable.

Yes. And I would just add, I mean, I think when you look at some of the other components, I mean, our Sysco Brand percentage continues to perform well. We continue to have benefit from category management. So I mean, there are some puts and takes on this. Certainly, we're calling out some of the headwinds, some of the challenges, but we certainly have some good things happening as well. And so, I think in general, we actually feel good about that moving forward. And certainly, on the margin piece, again when you factor out the impact of the freight and some of the inflation impact, again, I think overall, our margins are actually in a decent place as well. Vincent J. Sinisi - Morgan Stanley & Co. LLC: Okay, all right. That's helpful. And then maybe just a quick follow-up. Just if you can give a little bit of an update just on the UK business? Obviously, we know that you've got inflation and some currency effects going on there. But just maybe more on kind of the fundamental investments that you guys have been making. I know you said kind of we're making these now for the longer term. But if you could give us an update maybe how kind of far in you are? Is that something that we should expect to kind of wind down over the next couple of quarters? How should we think about that? Thomas L. Bené - Sysco Corp.: So good question. And so the UK is probably, of all those markets, the most unique. Everything from the Brexit impacts that are still obviously not all that clear and yet would be – ultimately the outcome of that's going to be in the marketplace. Because we source a lot of products for…

Yeah. And I think just a couple of things on that also. Just in addition to the multi-temp transformation, there are some things that we're doing even from, in terms of the way we go to market there that we're making some investments as well. And so again some of that's going to be ongoing. The one thing I'll remind you though, and that we've been calling this out over the last couple of quarters, just to remind you. I mean there was a calendarization impact that you saw this quarter, and again we've certainly been foreshadowing here because as we switched the Brakes Group from a calendar year to a fiscal year, again, all those things were true about some of the investments in here. But again, just a reminder, some of the – I'd say somewhat acute performance that you saw this quarter certainly also, in large part, is related to some of the transformation in the year or the calendar, excuse me, transforming from a calendar year to our fiscal year, and some of that impacts is going to – you'll see some of that picked up in the second half of the year. Vincent J. Sinisi - Morgan Stanley & Co. LLC: Yeah. Okay. That's helpful color. Thanks very much, guys. Good luck. Thomas L. Bené - Sysco Corp.: Thanks.

Thanks.

Your next question comes from the line of John Heinbockel with Guggenheim Securities. Your line is open.

So a couple of things. Let me start with, is inflation continuing to run here in this quarter kind of in that 3% range? And with respect to, have you seen any change in pricing, right? Because you look at the pickup in local case growth, I assume that had very little to do with any change in pricing on your end, so the price environment remains rational, is that fair? Thomas L. Bené - Sysco Corp.: Hey, John. Yes, a couple. So inflation, yes, we expect it to continue kind of the same pace that it has been. And from a pricing standpoint, no, we didn't see really any major changes or impacts. And certainly, we aren't investing in price at this point. So don't believe that's an issue or will be one going forward other than the normal competitive environment we operate in.

And if I look in the U.S. business, the margin pressure this quarter, do you think was that evenly split between inbound freight and impact of inflation, right? So inbound freight may be in that 10 basis point to 15 basis point range or is that not right? Thomas L. Bené - Sysco Corp.: I don't know, we want to get that specific. Let me just remind you and everyone. We feel actually really good about the gross profit increase this quarter. We were up 5% in the U.S. and that's a really positive number even of the case growth numbers that we shared. So yes, all those things are impacting that number, including the addition of, while our local was good, we also had an increase in the CMU business, so that national account business, and those all impact that gross margin number.

Yes, I would say, John, just on a real high level, there's probably a little more impact of inflation than the other, just kind of a high level.

All right. And then lastly, right, if you think about getting to $650 million for the year, right, your target pre-Brakes, U.S. EBIT probably has to step up from where it is, 300 basis points or 400 basis points in terms of growth. What's the biggest thing that changes? And is it more on the SG&A line? Or I imagine it's more on that line than gross or is that not right? Thomas L. Bené - Sysco Corp.: Yeah. It's on the SG&A line clearly. I mean, you saw the numbers. Again, we feel really good about where we're at from the top line and a gross profit perspective and we had some cost challenges that we're dealing with, but yeah.

Okay. Thank you.

Your next question comes from the line of Andrew Wolf with Loop Capital Markets. Your line is open.

Thank you. I just wanted to start with the inbound freight. Is that a structural thing that you kind of – or let me put it this way. Is that something you can fix structurally by increasing contracting or hauling it yourself? Or is that just something that's sort of you're stuck with and it's going to have sort of pass through as the market allows? Thomas L. Bené - Sysco Corp.: Look, I think we're doing everything we can to try to mitigate the impact. I think the part that's less controllable is as the overall shortage of drivers is there, the carriers are choosing what products they're going to haul and who's going to pay them the best rates to haul those products. From a service standpoint for us and, I think, you all know in this industry we've got to have our products available for our customers and they've got to be there when they need them. So, we've got to make sure we've got them in our facilities. So the big impact to us has been having to pay higher rates to get the products here, so we can make sure we're servicing our customers. And we're always trying to balance that. But getting the products in the facilities to be on hand for our customers is job one for us. So a longwinded way of saying, I think you should expect that we're doing everything we can but we're going to continue to see some challenges here as we try to impact that. It's not like we're going to pick up a lot more loads ourselves because we're not going to necessarily add the fleet to do that or move our outbound organization to handle inbound. So it really is something we've got to manage through our carrier partners.

Okay. Thank you. And just related to that as a follow-up, do you have any sense that – is that at all related to some of the things we've seen on the retail side of food – Walmart and Kroger have sort of – were getting shorted or they weren't happy with their logistics and tried to penalizing some of the vendors. Is this at all related to that or maybe some of the resources in the trucking world are going to make sure that's handled, or do you have any feel for that? Thomas L. Bené - Sysco Corp.: It'd be hard for us to comment on whether that's driving it. I think we know what's started a lot of this was the storm activity. And we know then carriers were either being diverted to carry and handle other products that those areas of the country needed. There's been some rail issues, as I think have been well-documented that also put some additional pressure on the trucking industry. So there're probably a lots of things, but I don't know if we can comment or know anything specific to the points you made.

Okay. Thank you. And sort of a housekeeping and then I'll cede. For Joel, on the $200 million to $300 million range from tax reform that seems like you expect, it seems like a fairly wide range. Is that because you and your tax folks are still kind of figuring it out? Or is it more some of the discretionary things you can do with CapEx and other things?

Yeah, I would say I mean probably a little bit of both. But I think – obviously, this thing is somewhat complicated and there's certainly a lot of things we're looking to do to optimize this, which would certainly impact the dollars. But I mean suffice it to say, certainly with the significance of our profits in the U.S., it's certainly going to be positive opportunity for us.

Thank you.

Your next question comes from the line of Marisa Sullivan with Bank of America. Your line is open.

Thank you. Good morning and thanks for taking my question. Just wanted to touch back on the expense outlook for the second half. You called out a number of factors that impacted your second quarter customer startup costs, fuel costs, increased investments in international. How much of those do you expect to persist into the back half of the year? And which of those would actually alleviate and help you to get that better back half performance? Thank you. Thomas L. Bené - Sysco Corp.: Thanks, Marisa. So I think certainly, the startup costs, we anticipate those, obviously, going away or being much less in the third quarter and beyond. The investment in the selling organization, obviously, we're going to have that with us for a while, but we look at that also is them providing growth on the top-line. So the investment there, we think, gets covered pretty quickly with some of the other top-line benefits. And then as it relates to a couple of the other things, the calendar move was a one-time thing in the European or the UK – sorry, the European business, that calendar year to fiscal year. So those are the primary things. We talked about fuel – that isn't really – the fuel rate, that will probably continue here for at least another quarter or so. But those are the primary ones, I'd say.

Yes. And I think some of the other investments we talked about in Europe also. I mean, those again, those continue to be ongoing. But I mean obviously, Marisa, there's certainly things that we're doing, we're working on that also ultimately – those aren't simply the only categories or things that we're dealing with, that we're focused on here. And so again, we said a couple of times, I mean, we certainly feel good about the remainder of this year and as we head into the second half of the year, I think certainly anticipate some of that cost pressure to mitigate some.

Got it. And then just quickly to follow-up on that. For the MA sales force expansion, do you expect that to continue in the second half? Or was that more just the onetime step-up in 2Q? And then was the sales force investment, was that mainly just in the number of MAs that you're hiring or you're also seeing any wage pressures in that part of your business? Thomas L. Bené - Sysco Corp.: Great question. So think about it as we've added the resources now, so it's somewhat of a onetime or of an acceleration. And now that they're here, obviously, the costs will continue. But we don't look to continue to accelerate that beyond necessarily those numbers at least at any significant pace. And from a wage pressure standpoint, we really aren't seeing anything new or different for our business.

Got it. That's very helpful. Thank you so much.

Your next question comes from the line of Shane Higgins with Deutsche Bank. Your line is open.

Yeah. Thanks, and good morning. Thanks for taking the questions. Just circling back on the previous question. What was your productivity for the U.S. marketing associates during the quarter? And has it kind of capped out here? And should we expect it to decline slightly as you guys step-up investments in the selling organization? Thomas L. Bené - Sysco Corp.: Hey, Shane, so we don't necessarily talk about our share productivity metrics for our selling organization. But if your question is, are we feeling like they are continuing to be productive and grow in their productivity, the answer is yes. Obviously, the e-commerce work that we've been doing and the utilization continuing to grow is enabling that. In addition, the way we're resourcing and supporting them with this consultative model, we also feel like it's continuing to drive productivity. The opportunity we saw was in targeted areas where we were underdeveloped, and we felt like we had now enough inside knowledge around where we could target those resources to drive incremental growth, specifically with our local customers. So that's why you're seeing the investment we're making, but we feel really good about that organization and the progress we keep making and the leverage we're getting with them across the business.

And then Shane, the only other thing I would add is that I mean, as we one of the great, I would say, advances we've made as an organization is the ability to actually rollout new sales associates, once they get through their training with actually larger territories than we used to have with some of the tools, some of the things that we've talked about here. There, I would say, even the newer people are more productive faster in the world we're in today. And so I think that's also a benefit.

Great, I appreciate the color. And then just a question on the lower corporate tax rates, I mean do you guys think that gives you an advantage versus some of the smaller private distributors out there? I'm not sure how their taxes are, or if they're similar to yours or if they're completely different. Thanks.

Sure. So again, this is probably a little bit of me giving an opinion or speculating here. But I would say in many cases, as we've gone down the acquisition trail, we certainly have some exposure to some of the smaller distributors that are in our industry. And I would just say this. In some, not all, but in some cases, certainly, part of their goals of family-owned business is to minimize their tax that they would pay. And so, I would say that in general, our ability – again, given the amount of profitability we have in the U.S. and sort of again, just the amount of tax that we pay relative to our overall profitability, I would say that we have a good opportunity over and above, in some cases, what they may have. Again, that's a very general statement, not necessarily certainly applies to all. But I would certainly say that there's probably some opportunity there for us versus some of the – particularly, the smaller family-owned competitors.

All right, great. Thanks. That's it for me.

Your next question comes from the line of John Ivankoe with JPMorgan. Your line is open.

Hi. Thank you. First, just a question on international. I mean, we've talked about the fiscal or I guess, the calendar to fiscal calendar shifts a couple of times. I'm sorry if I missed this, Joel, but did you quantify in dollars or in basis points whatever you want to do, how that hurt the second quarter and therefore how it may help the third?

We didn't, John. We have called it out for a couple of quarters now that we're certainly looking at the fact that this quarter, we'd see a negative impact of that. That would then be somewhat picked up over the last couple of quarters but we did not quantify that.

Okay. But that amount was not adjusted out of operating income as one of the operating income adjustments for the international segment, is that correct?

That is correct. We did not provide any of that, no.

All right. Thank you just for clarifying that. And then certainly, it's interesting, and I think you touched on this a number of different places. But it is interesting that you're adding marketing associates at this point in the technological cycle. Obviously, you're putting some of the technology initiatives in the hands of the customers, allows them to order easier and allows your salespeople to focus more on selling and consulting as opposed to order-taking. Is there may be a point in your forecast, I don't know if it's 2019, 2020, 2021, whatever it is, where you expect the sales force to become much more efficient, in other words, utilizing technology themselves to the extent that they can, cover bigger territories, as you mentioned? Just want to get a sense when that you can inflect that to where we can actually start to leverage the salespeople as opposed just in incremental costs, which I think was the case in the second quarter? Thomas L. Bené - Sysco Corp.: So John, let me try to take a shot at that. So again, this was what I said a couple of minutes ago around how we're thinking about this. We actually feel really good about the productivity we're getting out of our existing selling organization. You got to think about though is there's a difference between better managing the current customers and trying to acquire and drive our relative share in the marketplace through incremental business. And so I think you need to think about the two of those in conjunction. And the adding of the salespeople really on a more very targeted basis is all around trying to improve our position in certain markets where we believe we've got significant opportunities. And given our share position relatively in the industry, we've got plenty of room to grow and we've talked about that. And so, it's a combination of, yes, you should expect us to continue to get productive with our current selling organization with existing business. But as we look to take on new business, we do need resources in place. And those resources not only are the people but the training and the support that goes along with that. So there's – it is an investment, but one, we feel really good about and one we feel like will create a nice return for us.

Yeah. And just to reiterate, Tom said that extremely well, and I think the one thing just to reinforce, this is not – you should not take away from this that for whatever the reason there is an – productivity impacted a negative way of any of the stuff. We certainly look at this as an ability to continue to take share again in a targeted way. And so that to me is a separate and distinct from the fact that we also have some continued increases in productivity through some of the tools we've talked about. They're not mutually exclusive here in terms of adding MAs and driving productivity that they can (45:05).

Okay, understood. And certainly in the press release I mean I think selling expenses were called out. And so when you see that you just assume that we're just going through I guess an investment phase before we can start to get some of that full benefits and maybe that's where a lot of the questions are arising from.

I think that's fair.

Okay, all right. Thank you.

Your next question comes from the line of Chris Mandeville with Jefferies. Your line is open.

Hey good morning. Joel, just excluding the calendar change to international and how that might affect Q3, should we be expecting the underlying business to have a better second half versus first half?

The underlying business in international or just in general?

In general.

Yeah. So yes, the answer is yes. And certainly, part of in my script, I wanted to make sure I called that out. I mean we do anticipate an improvement in the second half of our year over the first half of our year. And so, I think in a number of different areas but I would certainly say the answer to that is yes, and again, we certainly tried to call that out in the script.

Okay. And then just one on the modeling front for me, assuming you guys are still looking at CapEx of 1.3% to 1.4%, as a percentage of sales, that would assume or that would imply a pretty sound acceleration in the back half of this year?

Yeah. that hasn't changed. We typically experience actually a heavier amount of CapEx in the second half of our fiscal than we do in the first half. And again, our first half CapEx is very consistent with where we were in the last year. And so, we do anticipate some level of acceleration in the second half.

Right. And then just a follow-up on that, when it comes to D&A is there any ability to help us guide with that line item since it's been moving around quite a bit?

Yeah. No, I mean, I don't – we haven't typically guided that. I don't think there's anything really unusual to go there. I mean, just as you had modeled just our normal CapEx I would think just keep a normal view of D&A I think is reasonable. There's nothing really exciting there.

All right. Thanks, guys.

Your next question comes from the line of Edward Kelly with Wells Fargo. Your line is open.

Yeah. Hi, guys. Good morning. Hey, Joel, can I just clarify just from a guidance perspective? So, you're still talking about the upper end of the $600 million to $650 million, excluding Brakes. What should we be thinking about for Brakes at this point? I think at one point, you were expecting that business to be flat year-over-year. I don't know if that's still the case. I'm just trying, as we piece all this together, what should we be thinking about from Brakes in this year as we try to get ourselves to total EBIT?

Yes, sure. Thanks for the question. And so, what I'll tell you is we're going to give you a little – an update on that probably in our Q3 call. I would say, it's likely that will be slightly less than flat, although some of that is due to – and the reason I'm hedging in terms of the timing of this is that there were some actual tax reforms that happened in the UK and in France as well that we're still working through to be able to quantify the impact of that also factored into that number. And so again, I would anticipate that there'd be somewhat less than we guided. But again, I'd like to get a better number before I quantify that for you, we will plan to do so.

As we think about international as a whole, is it possible for international to be flat this year? What I asked that question because EBIT was down about $40 million in the first half. And I'm just wondering how big of a ramp we should be expecting in the back half of the year with this calendar change.

Yes, again, I don't want to be not responsive to your question, but we just haven't guided that number. I would just suffice it to say that again, that there will be some level of pickup in the second half of the year. But again, we haven't guided specifically of what that was like. And keeping in mind, as Tom talked about earlier, I mean, there's been somewhat of an acceleration and where we've seen opportunities that we anticipate long-term benefit from to accelerate some of the investments that we made both in the multi-temp and in some of the (49:40) as well.

Okay. Just to follow-up on the question on tax reform. As you go through the process and think about the possibility for reinvestment, can you maybe just talk about the process, what you're considering? I mean, you could probably make the argument that you've already made some reinvestment, given what we've seen on the startup side on the SG&A. But just thoughts around how much of reform, at the end of the day, you think you're going to end up keeping versus putting back into the business and how you think about that?

Yes. So I think the main takeaway I'd have from that, number one, one of the things I talked about in my prepared remarks is around making investments in our business that are in line with our capital allocation priorities. And the reason I said that specifically is that we've done a lot of different questions around, will you invest in pricing, will you do some of those things? And the answer to that is that, that's not part of what we're talking about here. When we talk about investing in our business, we're talking about opportunities. Again, part of our capital allocation priority is to continue to find ways to accelerate items, to invest in assets and technologies and people and in ways that ultimately drive long-term value for this organization. And so, I would look at it and think about it more that way, and again certainly not – we're not thinking about as just turning around and investing that ultimately in price. And so I think – and again, as you know, our capital allocation priorities, I think, are quite balanced between investing in our business, providing value to shareholders. And I think that again, our overall investment moving forward is going to be very consistent with that.

Okay. Thanks, guys.

Your next question comes from the line of Ajay Jain with Pivotal Research Group. Your line is open.

Yeah. Hi. Good morning. I had a question on just the currency impact. I'm guessing the currency should have helped this quarter as opposed to being a tailwind. And I don't think that's been the case for a while. So now that you have clean comparisons for Brakes year-over-year, can you confirm what the currency impact was in Q2 on a consolidated basis, or even just for international specifically? So I'm just wondering if you have any color on the relative impact from currency on revenue expenses and the earnings impact overall.

Yeah, Ajay, it's Joel. I would – on a top-line basis, it was just a little bit over 1%. We also had – there was obviously impact on the gross profit, impact on the expense. For the most part, that washed out as you translate that down to our operating income line. But we did have some benefit on the top. Again, certainly, there was somewhat – again, a little bit relative strengthening in the sterling and the Canadian dollar relative to the U.S. is really what's driven that recently. But at the end of the day, again, the overall impact on the operating line is not a lot, but on top, we did get 1%.

Okay. That's helpful. So really no flow through to earnings, you would say, from currency?

Yeah, I would say nominal amount, but nothing of what I'd consider real significance there.

Okay. I had one follow-up on tax reform and my question is twofold. So maybe it's a little early to talk about the consumer-related impact, but do you have any preliminary sense on whether there's been any kind of impact, like any discernible impact on restaurant spending in general in terms of what you're seeing and what you're expecting going forward? And then I was also interested in how your customers are reinvesting the tax benefit. I don't know if you've got a lot of direct visibility into that, but I'm also curious if you expect to see any benefit being ploughed back into wage adjustments by your multiunit or Broadline customers.

Well, why don't I start and I'll let Tom add his thoughts on as well. I mean – a couple of comments there. I mean, I think broadly speaking, anything that ultimately is positive for the consumer or positive for the overall economy, we certainly would view as a positive for our industry and so I'd certainly start with that. Yes, I think the question of, have you seen impact or what do we anticipate from a restaurant perspective, I'm sure, I think, it's varied to some extent across restaurant types. Again, one of the things I've mentioned a little bit earlier in terms of the smaller distributors, a lot of our local restaurants tend to be family-owned businesses. And so again, this is really me just opining as much as anything else. But to some extent, more family-run businesses tend to try to look at ways to minimize tax. So I'm not necessarily sure on the local level that there's going to be still that – again, in all cases, it will be different, but so much impact from that perspective and their ability to plough some of that back into the business. On the multiunit side, probably some extent more so. But again, I would just go back to saying in general, where there's a positive macroeconomic opportunity there, I think that certainly provide something we see positive benefit for our industry. And I don't know if there's anything else do you want to add, Tom? Thomas L. Bené - Sysco Corp.: Yes and you guys have probably seen some of the restaurant data, I mean, some of it was good for December. If you think about same-store sales versus – traffic continues to be a challenge in certain areas for sure, but same-store sales seemed to be growing and that's helpful. Also if you look at the relative improvement throughout the end of last year, it was stronger obviously than the first part of the year. So I think a lot of the indexes that are out there, a lot of the data that's being shared across the restaurant industry is somewhat positive during this quarter. And so we're hopeful that that continues, the consumer confidence that Joel is referring to and that we're all hearing about, reading about, you hope translates into increased – hopefully increased traffic but certainly increased sales in the restaurants.

Okay. Thank you.

Your next question comes from the line of Bob Summers with Macquarie Securities. Your line is open. Bob Summers - Macquarie Capital (USA), Inc.: Good morning, everyone. I guess I want to leverage that last question a little bit and maybe ask it in a different way, which is when you look at prior instances where you – the consumers had tax relief, can you go back and look at a discernible change in trend within restaurants and your business? I mean, I think it's widely speculated on the Street that with sort of restaurant spending being high at – top of the list that you'll be a beneficiary, but empirically I'm wondering if you have any data from the last 30 years or so.

Yeah. Thomas L. Bené - Sysco Corp.: Bob, I don't think – I mean the data that's out there, we have not spent any time looking at that, it's probably something worthy of us and the industry looking at, but I can't honestly (56:51) say we've got that data in front of us. But we tend to believe a lot of the things that we're all seeing and reading. And I think that that will – we know in this business, consumer confidence, unemployment all those things are positive drivers for foodservice and for restaurants in particular. And so we're hoping that all those things do, in fact, continue to provide some nice tailwind for this industry. Bob Summers - Macquarie Capital (USA), Inc.: Okay. And then separately on the incremental hiring of salespeople, which I think as I look at advantageously or as a positive, that seems a little different than maybe you've been talking about over the last pick a timeframe. One, am I interpreting that right? And then two, I guess if it is different, what's driving the change? Thomas L. Bené - Sysco Corp.: It's a great question Bob. And I think you are interpreting it correctly that over the last probably year-and-a-half or so I would say we are more stabilized with our selling organization. We're very focused on building out this consultative model. And so where we were maybe adding some in the past it was more around the support resources versus the actual selling resources. We're now at a place both because we have the insight and data to tell us where we should be focusing. And we've I'd say optimized might be the right word that current selling organization we felt like it was the right time to be able to start to add. So we just feel like we're in a much better position from an insight and knowledge basis and know where we have the opportunities to go ahead and start making those additions. Bob Summers - Macquarie Capital (USA), Inc.: Okay, great. Thank you.

There are no further questions at this time. This concludes today's conference call. And you may now disconnect. Have a great day.