Ladies and gentlemen, thank you for standing by and welcome to Tyco Electronics Reports Strong Fiscal Third Quarter Results and Raises Outlook for Fourth Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions). As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Vice President, Investor Relations, Mr. John Roselli. Please go ahead.

Thanks, Ruth and good morning. Thank you for joining our conference call to discuss Tyco Electronics third quarter results for fiscal year 2010 and our outlook for the fourth quarter and full year. With me today is our Chief Executive Officer, Tom Lynch and our Chief Financial Officer, Terrence Curtin. During the course of this call, we will be providing certain forward-looking information. We ask you to look at today’s press release and read through the forward-looking cautionary statements that we’ve included there. In addition, we will use certain non-GAAP measures in our discussion this morning and we ask you to read through the sections of our press release and the accompanying slide presentation that addressed the use of these items. The press release and all related tables along with the slide presentation can be found on the Investor Relations portion of our website at tycoelectronics.com. Now, let me turn the call over to Tom for some opening comments.

Thanks, John. Good morning, everyone. If you would please turn to Slide 3 now, as we previewed last week, Q3 was another strong quarter for us. Sales of $3.1 billion were at the high end of our guidance as stronger demand offset the negative impact of a weaker euro. Our adjusted EPS of $0.70 was up 9% sequentially and exceeded our guidance of $0.61 to $0.65. This earnings strength was due to slightly higher volumes and related strong fall-through, continued productivity improvements, and operating expense leverage. One of the highlights for us in the quarter was our adjusted operating margin reached 15% for the first time since separation three years ago. And while our normal operating margin run rate is closer to 14% to 14.5% at this volume level, this is another indicator of the fundamental improvement in our operating leverage, which you know has been a very, very high priority over the last couple of years. Our three largest segments showed continued margin improvement and in our network solutions segment, adjusted operating margins were up 260 basis points sequentially to 13.3%. That business had been lagging on the sale side, turned down – after the consumer business was turned down, turned up after them and we expect to see nice operating leverage there with volume pickup. Order input was solid again this quarter with total orders of just under $3.3 billion and a book-to-bill of 1.06 and this was our fourth consecutive quarter of book-to-bill exceeding 1 and the orders were strong and consistent throughout the quarter and continued that way so far in July. If you could please turn to Slide 4. On a sequential basis, orders grew 7% in the quarter. Our electronic components segment orders were up 2%, the industrial and data communication equipment markets in…

Thanks, Tom and good morning, everyone. Let me start by reviewing our sales performance by segment and market. And then I'll get into earnings and cash flow. You start with Slide 5. This shows our overall revenue performance by segment both on a year-over-year and sequential basis. As you can see, we had both year-over-year and sequential sales growth in all segments, excluding SubCom. Total company sales of just under $3.1 billion were up 23% year-over-year. The growth was driven primarily by our electronic components segment, which was up 46% with growth across all markets. Excluding SubCom, sales growth was broad-based across all regions, with Asia up 47%, the Americas up 32%, and Europe up 23%. Currency translation on a year-on-year basis decreased overall company growth by approximately 70 basis points. Looking at sales growth on a sequential basis, sales were up 4%, led by network solutions with growth of 12% and also nice growth in the electronic components and specialty products segments, offset by a decline in SubCom. Currency played a bigger part on the sequential basis than year-over-year. Currency translation decreased our overall company growth on a sequential basis by approximately 310 basis points. If you look at the mix of our business, our businesses that serve the consumer markets which is slightly less than half of our revenue, sales increased 43% year-over-year and 2% sequentially. As we highlighted on last quarter's call, in the industrial and infrastructure markets, we continue to see improvement in them and our sales were up 9% versus last year and 6% sequentially. If you take out our SubCom segment, the industrial and infrastructure markets were up 13% on an organic basis. Now, let me get into more detail by submarket by our segments and unless otherwise indicated, all changes that I'll talk…

Thanks, Terrence. I'll give a quick update on our fourth quarter outlook and our full year and add a few comments on how we see the economy. If you want to turn to Slide 13, please? For the fourth quarter, we expect our sales to be in the range of $3.05 billion to $3.15 billion, which is up 13% to 17% year-over-year and about flat sequentially. Continued strength in industrial and infrastructure markets will offset the normal seasonal decline in automotive and the expected decline in our SubCom business. Adjusted operating income is expected to be in a range of $430 million to $460 million compared to $463 million in Q3 and we would accept, as Terrence mentioned earlier, that the Q4 operating margin should be 14% plus. We feel that we've pretty solidly hit that level now and we expect all segments, excluding SubCom, to have margins similar to the third quarter levels. Our adjusted – our Q4 adjusted EPS are expected to now be in the range of $0.68 to $0.72. For the full year, sales are expected to be approximately $12 billion, up 17% versus the prior year and full year EPS are expected to be in the range of $2.49 to $2.53 compared to $0.81 last year. Now, when we were sitting here a quarter ago – we want to compare how we see the second half then versus now. Our organic revenues improved about $200 million, 3% to 4% roughly, offset by about $100 million of euro headwind due to the weaker euro, and our EPS is up about 15% due to that volume increase and stronger margin. So the business is definitely stronger, feeling stronger than when we sat here a quarter ago. Just a few comments looking beyond the fourth quarter. Visibility is…

Yes, thank you. (Operator Instructions). And the first question does come from the line of Amitabh Passi with UBS. Please go ahead. Amitabh Passi – UBS: Hi, thank you. Tom, first question for you. Can you just remind us what normal seasonality tends to be for you in the December quarter?

In December quarter – Amitabh, it's Terrence. Typically what we do see is auto production typically comes down a little bit because of taking advantage in certain parts of the world some of the holidays and you also get some of the seasonal outside businesses typically come down a little bit versus a quarter two or quarter three. But typically, it's pretty consistent with our quarter four levels on a normal basis.

And I would say it's a little – probably a little bit less this year, because of the catch-up mode that some of the industries are in. For example, some Tier 1s and some OEMs are having a shorter shutdown period this year than normal. Amitabh Passi – UBS: Got it. And then just very quickly, your guidance, let's say 14% plus, 14%, 14.5% operating margin, still at $12 billion sort of revenue run rate, it seems at this level once you get to sort of the $15 billion, you will be well north of 16%. I mean, is that the right way to think about your model or do you think – you probably see some incremental cost pressures as you go into fiscal '11?

I would say that's a question we expected. Thanks for asking it early. Actually we feel good that we are solidly and sustainably in the mid-14 range at this level, which gives us a lot of confidence when we talked last quarter that to be able to deliver 15% plus at the $14 billion level is – we are right on track – we are ahead of that plan. Internally, we would expect if we keep this momentum, the possibility of going over that, but I think it's too early to tell. We want to deliver some sustainability. As you know, the mix can shift in this business, exchange rates and things like that. So that's why we say, hey, we are – we feel with this 14%, 14.5% sustainable level, that – when you get a little more revenue on that and the flow through we've been getting, that's what lifts us up to the 15%, 15% plus sustainable level. So we are not capping it by any means, but we want to achieve it and achieve it consistently before we move up the target externally. Amitabh Passi – UBS: Great. One final question and I'll step back in the queue. Gross margins 2Q to 3Q were down 50 basis points, both quarters had about a 50 basis point benefit from Subsea. I'm just trying to understand some of the dynamics. Was there sort of headwinds from currency? Can you just maybe elaborate on that?

When you look at it, actually that gross margin that you saw there had to do with – we did talk about last quarter some mix benefits around the distribution channel last quarter on the top. So we did expect – when we guided, we guided basically down. We thought we would be around 31.5. The margin came in right where we expected ex SubCom. So we had some mix benefit in our components segment in our second quarter that didn't repeat here this quarter. But that was the entire driver. Amitabh Passi – UBS: Okay. Thank you.

Thank you.

Next, we go to the line of Amit Daryanani with RBC. Please go ahead. Amit Daryanani – RBC: Yes. Thanks a lot, guys. Maybe – if I could just maybe push you a little bit more on that longer-term question, historically you have talked about being 25% plus incremental margins. If you can do that from current levels, that would imply you could get to 16.5%, 17% operating margins on that $14.5 billion run rate. What would be the offsets or caveats to achieving that?

What I would say, Amit, we are not coming off that operating leverage number. So when you see that, it really comes into – that has not changed and it's the sustainable level, we do feel we are at this 14% plus and then what is the growth trajectory off of that. So really that – that's the big item that is what is the growth trajectory off it to get to the 14.5%. We – as we said, we do expect we will be able to get 15% plus at the $14 billion level.

And I would add in business mixes.

Exactly.

I would say we had – in the recovery of this year, we have all the benefits that you typically have in a recovery and a little bit more than we would have expected in favorable mix in the channel. Now, part of our strength is to grow our share in the channel and I think early indications are we are making progress there. So we are very confident about the path we are on, but it's just too early I think to say, hey, put another $1.5 billion when we are at 16% to 16.5% given the mix of the business we have. I mean, we could conclude to aggressively go after other elements of the business that might have lower operating margins, but – for example, with very high returns. I'm not suggesting that that's the kind of tradeoff and that's why we want to give ourselves that flexibility, but the good news is I think our track record is showing the margin is consistently moving up. Amit Daryanani – RBC: Fair enough. So as long as the mix is static relatively speaking, the sales growth is there, nothing really inhibits the 25% incremental margins, right? I mean, is that a reasonable takeaway?

It's a reasonable takeaway.

That is the right takeaway. Amit Daryanani – RBC: All right. And then just one more thing. Your auto business, it kind of looks interesting to me because sequentially units were basically flat and on a constant currency basis, you guys actually saw a 5% sequential growth. How much of that 5% growth do you think was content growth versus maybe mix helping you?

I would say it's a combination of both. We definitely saw in the latter part of last quarter and through this quarter that in the mix shifts aren’t wild, but they clearly moved back to the higher end what we would call the premium vehicles. That picked up again and our content, for example, can range from a sort of a subcompact car of $45 a share up to a premium car that has as much as $300 of content. So a shift can move us a little bit. So it's that and more options. We are seeing really everywhere we go – I was in Latin America and Brazil about a month ago and introducing requirements for stability control systems, so that adds a less cyclical content. And we are seeing more options and the OEMs naturally, now that things have settled down, are pushing more options in their deals. So we are seeing that lift right now. But it's more – Amit Daryanani – RBC: Fair enough. And then just finally, I just wanted to revisit question, which is on the buyback. Could you maybe talk about how much you expect it to slow given the fact we are going to have the ADC transaction closed by end of the calendar year?

Well, we won't get into the exact amount. But what we will do is make sure as we do have this big expense coming up, we will ease it back a little bit from that viewpoint, but we will still continue to do it. And we only have about $200 million left on our authorization anyway on that. So we don't give an exact number, but we do expect to be lower than this quarter. Amit Daryanani – RBC: All right. Fair enough. Thanks a lot and congratulations on the quarter, guys.

Thank you, Amit.

Thank you.

And next, we go to the line of Matt Sheerin with Stifel Nicolaus. Please go ahead. Matt Sheerin – Stifel Nicolaus: Yes, thanks. Just a follow-up on the automotive sector, specifically on the order patterns and inventory. You had a few very, very strong, obviously better than seasonal quarters. Now, you are back to seasonality. Could you give us a – some color on how the inventory at your customers look right now in terms of component inventory and do you expect that at some point there would be some sort of correction as the customers figure out exactly where they are in terms of inventory?

Correction is a big word, I would say. We had a big correction 18 months ago that lasted for two quarters. We don't see anything like that, because I think we have all learned – we have – we still have customers expediting us and there is still a general shortage of certain components in the automotive industry. So we are not – whether it's an OEM and inventory on the lots in most countries, not everybody report that the ones that do are down. I think the U.S. is in 45-day range, which is below normal levels, let alone below where it was last year. Tier 1s are not having anywhere near the level of some of the shutdowns as they did even last year, when this thing was starting to ramp at this time, because they are still trying to catch up. So our chats with our Tier 1 partners, the harness makers, the OEMs, their inventories are in very good shape. So if you had a flattening, I don't think you would have much of an adjustment at all. If you had a slight downturn beyond seasonal, I think you would have a small adjustment. So that's what I said earlier in the call, I think things are in much, much better shape. Everybody frankly erred on the side of having too little inventory, which is why there is still a lot of noise in the supply chain and we get our share of that. Matt Sheerin – Stifel Nicolaus: Okay, great. And then could you comment on the pricing environment, not just in auto, but across your components businesses? As you said, there are component shortages, there is a lot of expedited orders. So that would obviously put you at somewhat of an advantage. So could you talk about what you are seeing on ASPs right now and how that trends going forward?

I don't – I think with that typically – the impact of that typically means there is less price erosion and – but we continue to be in the 1.5% to 2% range hasn't changed in a couple of years now. But we actually haven’t much of a change in any of the industries out of normal pattern. I would say again a little bit lighter, because when there is a shortage, folks aren’t coming in and pressuring you as much as they normally would. But I also think – no, I can speak for us. We've gotten a lot more effective in our pricing as we've retooled our pricing processes over the last two or three years. So we feel like we – we are – have a much better handle on the global pricing trends and how to make sure we are pricing at the right level or not, leaving too much on the table so to speak. So we consistently see under 2%, we do not expect that to change much for the next couple of quarters. And beyond that, it's really hard to tell. Copper has come back again from where it was a quarter ago, back to $3 I think. A quarter ago we were around $3.50. So in general, pretty – not much volatility in pricing right now. Matt Sheerin – Stifel Nicolaus: Okay, thank you.

You are welcome.

I want to just remind everyone to just hold your questions to one question and one follow-up. We've got a lot of folks in the queue. We want to try to get to everyone here in the next 20 minutes or so. Thank you.

And next, we go to the line of Craig Hettenbach with Goldman Sachs. Please go ahead. Craig Hettenbach – Goldman Sachs: Yes, thank you. Tom, you mentioned that order trends were consistent throughout the June quarter and that strength continued into July. Can you talk about by end market, are you seeing much fluctuation in terms of certain end markets trending stronger or weaker?

I wouldn't say fluctuation, Craig. I would – what I would say is, to really plot it out in detail, the non-auto consumer market flattening, just a little bit of a decline, which we do think if there is one industry that the consumer electronics industry probably suffered most from the dearth of supply components and so there is probably a little bit of an overbuild built in supply, but it's not significant. So we are talking about supplying points on the graph here. I would say the industrial market and infrastructure market orders continued to get stronger through the quarter and automotive was fairly – was very stable through the quarter across the regions. So it's been three or four months now and sort of running at the $3.2 billion, $3.3 billion quarter order rate without much variability. And the SubCom business has its own variability, but I'm excluding that. Craig Hettenbach – Goldman Sachs: Okay. Thank you. And then just on the follow-up, I know it's only been a week since you announced the acquisition. But any initial feedback from customers on the ADCT?

Yes, I would say very, very positive – very positive from our direct OEM customers. They had all been telling us they want larger strategic suppliers that – so like so many companies are doing, we want less suppliers and we want the ones we have to do more that have more scale, that can give them better value and better investment in technology. And our channel partners are really excited about the idea, because this kind of consolidation simplified their life. It gives us more – we are valuable strategically to a big channel partner than we were as two separate companies and it's really – I think it really is going to be the one and one equals three through the channel as well. We have to work it out and all those things and it will take a couple quarters to get momentum around that. But those are the kind of things we are working on right away. Craig Hettenbach – Goldman Sachs: Okay. Thanks, again.

Thanks, Craig.

And next, we go to the line of Shawn Harrison with Longbow Research. Please go ahead. Shawn Harrison – Longbow Research: Hi, just a quick clarification first. In terms of the seasonality question on auto, what is the typical seasonality for the December quarter?

Typically what you – typically what you'll see and even if you look at the projection for 2011. So we basically would say the December quarter – we said are going to have about 16 million, 16.5 million units being built here in quarter four. Right now, the projections are about 17 million to 17.5 million units going from Q4 to Q1. But typically, that is a lower quarter than the stronger quarters of quarter two and quarter three, Shawn. So hopefully, that helps frame it. Shawn Harrison – Longbow Research: Okay. And then just two brief questions. You mentioned during the prepared remarks you are seeing, I guess, restocking in different parts of the supply chain. Maybe you could just describe where you think you are at in terms of just the timeline of that being completed and then within the specialty products business, EBIT margins at almost 17%, is there upside from there because you have very good profitability right now?

When I say restocking, I don't feel like it's a programmatic type of thing where businesses are, "let's get the shelves filled." I think it's just that when things went so hard and they went down that literally everybody in the supply chain, if they didn't have to buy anything, they didn't. And much of the supply chain – even our suppliers and we are – we are fairly – take auto, we are fairly far down the supply chain. The folks who supplied us turned off, it took them a while to get up. That took us a while to come back. So I think it's just getting a regular flow of components and getting normal lead, getting back there the kind of normal lead times you need to live with. So in automotive, when OEMs are releasing orders once a week and the harness makers have to have enough inventory to meet all those difference custom harnesses and deliver them to their customer within a week, we have to have enough connectivity products to do the same. So I think what we are just – I'd say it's getting back in equilibrium, not so much a stock-up. But as we check around and you can imagine we check around twice as much as we did, given what happened last time. We are feeling that it's pretty healthy. We don't think there is any business lift to speak of that's going to come from it. It's more a – like there is a pause here or a little downturn, everybody is going to be in pretty good shape to handle it. So it's not going to have to be a slamming the brakes. There will be much more of a gradually applying of the brakes. But we are even not seeing signs of that yet. So for all the uncertainty in the macro side of things, you talk to OEMs, you talk to Tier 1s, you talk to our sales people, we are getting a pretty consistent message. But we know it can change quickly.

And then on your SPG comment, Shawn, the SPG segment, we do expect we will be above the 16%. And if you actually go back in '08, it ran 17%, 18%. And what we are seeing – it really comes to the point what Tom and I made during the prepared remarks. These are much more industrial markets typically, better gross margins and I think what you saw this past quarter – we expect the margin to be similar in our quarter four. And as volume comes, these are markets that we do think will be in a – the higher-teens versus where they were last year and the lower to middle. So I do think as volume continues to ramp, we do have some more upside in that area. Shawn Harrison – Longbow Research: Okay. Thank you very much and congrats on the quarter.

Thank you, Tom.

Next, we go to the line of Steven Fox with CLSA. Please go ahead. Steven Fox – CLSA: Hi, good morning. Just a question on the industrial markets. Could you talk a little bit about any signs you could point to as to the sustainability of the demand? Obviously, it's come off of lows and was a laggard as the economies around the world have recovered. But why would we be comfortable that, say, a year from now, we are still talking about decent growth in industrial?

I think the biggest trend that's going on – and this is what – I don't think we have – we sure don't have any unique insight into the sustainability, but we can apply our own company strategy. The reliance on lots of low-cost labor in China, it – you can't rely on it for the long term. So everybody we talked to including ourselves have key programs that begin to add more automation into the – into that their China operations. And you know us, we produce almost $2 billion worth of revenue in China, we got 30,000 plus employees in China. The supply demand of labor in China continues to be on the favor of the – there is more demand than supply, which leads to turnover. The costs are going up, all the things you would expect as the country goes from the emerging to early development. So we are seeing our industrial customers' business pick up as many, many companies are changing their model. And then the other factor is just the growth of – the buying power of the Chinese consumer is growing significantly. So local consumption is growing, which – and that will be served largely by local production. So I think those are two big drivers. I wouldn't say they are long – I think they are long-term sustainability, I'm sure they'll have peak and valleys as the economy goes. But that's what we see being the single biggest driver. And secondarily, I think everybody trying to guard productivity. You come out of a period where so many companies had to take so much cost out and most of that cost was people, that we are all being very careful how we bring it back in, one, to manage the financial performance of the company and two, reduce the volatility in our workforce. And one of the ways you bridge that gap is different levels of automation. So it's beyond China, but the – if you have to say one big – one single big trend, it's automation in China. Steven Fox – CLSA: Great. Thank you very much.

Welcome.

Thanks, Steve.

Next, we go to the line of William Stein with Credit Suisse. Please go ahead. William Stein – Credit Suisse: Thanks. Good morning. I'm wondering if you can talk a little bit about lead times now and when we see the book-to-bill ex SubCom of 1.08. Do we think about that as a backlog building into calendar Q4 or is that more near-term demand that it's reflecting?

I would say our lead time probably the last two quarters were a little – I would put in a two-weeks-longer-than-normal category or down to the week-longer-than-normal category. So that gap is improving, our production comes up. I think that certainly we have orders scheduled for the first fiscal quarter of our year. But the real indicator is the order rate that's coming in the door short term, because we know that these orders can be put on hold. I mean, we had a healthy order backlog 18 months ago and got quickly put on hold. We are not seeing any signs of that. So – the key is with the flow rate in the front door so to speak as opposed to what's the size of the backlog, because typically if people are getting nervous, they start to turn down the amount of orders they are releasing. And as I said, that hasn't really – in any of our markets I would say, hasn't tapered much. We look for lots of signs, constantly digging for signs and as I mentioned in an earlier question, other than consumer electronics which is leveled off just a tiny little bit of a tick-down and it's – we can't even conclude anything from it, because there is so much mix within there. We haven’t seen anything like that. William Stein – Credit Suisse: Thanks, Tom. And then just one follow-up, if I can. There has been a change in distribution strategy or an evolution of distribution strategy at Tyco over the last, I don't know, a few quarters. I'm wondering if we can get an update on that, where we are in the process of maybe cutting the number of distributors, focusing more products through distribution and comment on maybe any effect that's having on revenue growth and margins.

Very well. That's been a – as you know, that's been a big important focus area for us. I think like a lot of our business in the past, we did too many things and we did it in too many ways and therefore we weren’t effective and we spread ourselves too thin. So whether it's the portfolio or the footprint, I would put our distribution – our historical distribution strategy in that category. So what we decided to do was to have less distributors, more strategic distributors and really have strategic relationships with them. So that program has been underway for two years. The number of distributors now has been cut in about half. We've recently been around to all of our big key strategic distributors and I would say we have a lot of momentum. People are feeling like this is a win-win situation and we feel very good about it. We believe that the beginnings are showing up in our numbers. And it's certainly showing up in terms partner satisfaction, ease of doing business with us, which then turns and we will believe into some market share. So we feel very good about where that program is. Still more work to do. William Stein – Credit Suisse: Any change in percent of revenue through distribution as a result of this?

Maybe up a percentage.

It's inflated a little bit right now.

A little bit.

But we wouldn't call that market share necessarily. So still the distribution channels outperformed the direct channel due to some restocking and some shift in spending.

I'd say where we are is we are in the increase in mind share right now, which will follow – we expect to follow with market share. But all of the indicators are very positive. William Stein – Credit Suisse: Great. Thanks very much.

Thank you.

We go to the line of Jim Suva with Citi. Please go ahead. Jim Suva – Citi: Thank you and congratulations on great results and very strong outlook. I have a question for Tom and the follow-up is for Terrence. Tom, with the ADC transaction now, you are going to be integrating it, does your companies have bandwidth to do more acquisitions during this time period? You just previously mentioned that in the past your company has kind of been spread kind of thin doing a lots of different things. But should we think about you guys digesting and integrating at first or do you still have some bandwidth to do it? And people continually ask me why it takes you three years to integrate this versus others who integrate much faster such as like an Amphenol. And then Terrence, on the follow-up, the other income line of $13 million seems to really move around a lot. Should we expect it to be around that $13 million or kind of go back to the $5 million to $9 million? And on the tax rate, you've been working it down. Are we at the optimal level of around 26% or can you still take tax rate lower? We are talking future quarters out.

Yes, Tim. Good question. I think a couple of things. Our sense of sort of object [ph] acquisition, $60 million, fairly straightforward, integration in 30 days. ADC, $1.2 billion company operating on every part of the globe, legal entities all over – how do you optimize factories, how do you optimize the channel. So the integration, it really depends on the definition. So I think us presenting ourselves to the customer, that integration will be done shortly after the deal closes. So our customers will feel one company coming into them very, very quickly. Shortly after that, product roadmap, bringing the harmony together and what – who – what kinds of products, where do we have overlap, where – how are we – who is going to develop what and what lab, what location. That will be defined, I would expect, within three months of integration. Sort of the SG&A, primarily G&A optimization, that will be in the first year. And what takes long is where you might be doing factories and we still have to sort that out. But if there is factory integration, depending on where those factories are, that would take longer. So I don't think it sort of all – it all happens and it takes three years. It's sort of like marching down a football field that you are gaining yards all the way along and making progress all the way along. And when we say – when we – those longer-term things around factories, I think you have to keep in mind, this is a billion-dollar business that has complexity to it and we need to be delivered to it. But I do feel we have an excellent team. The early indications is there is great teamwork between two teams. The second part of…

Yes, let me answer your tax question, Jim, other income. Other income, I think when you when we guided, I typically mentioned it's going to be between $10 million and $13 million. Certainly the complexity of it is interrelated to our tax-sharing agreement and whatever moves in that number typically also affects the tax rate. When you look at – so I do think from a modeling perspective, Jim, and $11 million to $13 million is where we should model per quarter. There will be volatility as we settle things out under the tax-sharing agreement. When you look at the tax rate, the tax rate, I think we've made tremendous progress. At separation, we were mid-30s, certainly not optimized from a structural perspective and we worked very hard. And as I stated before, we've made progress better than even I expected to get to this 26%. The big pieces have been done. I think there could be some more opportunity, but it will be smaller steps and bigger steps. And I think, as we mentioned before, assuming jurisdictional tax rates stay the same and all the pre-separation stuff settled, I do think we could get into the lower 20s once that occurs. But that's still a few years out. Jim Suva – Citi: Thank you and congratulations to you and your team.

Thanks. Jim.

We'll take one last question.

Great. And the final question comes from Steve O'Brien with J.P. Morgan. Please go ahead. Steve O'Brien – J.P. Morgan: Hi, thanks for fitting me in. On the margin side, this quarter and into the fourth quarter, could you update us on what impact, if any, there was from the raw materials prices? I think in the past, we talked about the hedges rolling off and potentially a $5 million to $10 million headwind there. But clearly, prices have somewhat moderated. Maybe it has not been as big of a hit. And then similarly, if you could comment on or help quantify the impact from potentially higher wages? This – if that's running through the model in the fourth quarter, if there was a headwind in the third quarter?

Both of those, Steve, when you look at it, metals, as well as wages, that's not nil effect. Certainly on both of those when you see it in our margin and our margin guidance, any effects of those, we are covering with our core productivity and the fall-through. So it's really – metals is neutral and the inflation is neutral. Steve O'Brien – J.P. Morgan: That's right. And if I could on – just a one quick follow-up, on the plan to finance a portion of the ADC purchase price with some debt, can you just remind us how much cash you'd like to have on the books to run the business and with free cash flow at $300 million a quarter right now, just – it seems like you could pick up the portion you are planning to finance in just one quarter. So if you could just help us with the rationale of the debt for ADC there, I'd apperceive it.

It's actually quite easy. Really, the debt we are putting on ADC is the debt in line with our credit metrics, Steve. So as we look at anything we like, our credit metrics are where they are at today. Certainly when you look at it, anything we will look at will be to – we will evaluate whether to put that on with those appropriate credit metrics. So I think it's maintaining a balance sheet and the credit metrics that we want, while also balancing returning capital to shareholders, as well as look – making sure you are flexible for further opportunities. On what do we day to day to run the business, day to day, as we've said, it's around $500 million is what we need to run the business. And certainly we've been running with some extra capital for strategic opportunities and we'll still have some flexibility once the deal closes as well. And then the free cash flow, we still believe post-deal, as well as inclusive of ADC, our free cash flow will still continue to approximate our net income. So that model that we've shown is very resilient and will continue into the future. Steve O'Brien – J.P. Morgan: Okay, thanks.

Thanks, Steve.

Okay. Thanks everyone for joining the call this morning. That will wrap up the call today. As always, the IR team will be around for any follow-up questions you may have. Thanks and have a good day.