Welcome to WESCO International Earnings Conference. (Operator Instructions). I would like to turn the conference over to Dan Brailer.

Thank you for joining us for WESCO International's conference call to review the third quarter 2009 financial results. During the quarter, WESCO completed the previously announced executive management transition related to the company's management succession plan. Effective September 1, Roy Haley is Executive Chairman of the Board, John Engel became President and Chief Executive Officer and Steve Van Oss assumed the role of Senior Vice President and Chief Operating Officer. Participating in the earnings conference call this morning are the following officers, Mr. John Engel, President and CEO, Mr. Steve Van Oss, Senior Vice President and Chief Operating Officer and Mr. Richard Heyse, Vice President and Chief Financial Officer. Means to access this conference call via Webcast was disclosed in the press release and was posted on our corporate Website. Replays of this conference call will be archived and available for seven days. Following the conclusion of this conference call, we will post on our Website a supplemental financial data presentation that provides a summary of certain financial and end market information provided in today's commentary by management. This conference call may include forward-looking statements and therefore actual results may differ materially from expectations. For additional information on WESCO International, please refer to the company's SEC filings, including the risk factors described therein. The following presentation may also include a discussion of certain non-GAAP financial measures. Information required by Regulation G with respect to such non-GAAP financial measures can be obtained via WESCO's Website at www.wesco.com. I would now like to turn the conference call over to John Engel.

The final chapter of this economic downturn is not yet written, but it appears that a bottom is forming. Our current outlook is for the overall economy to recover slowly with continued contraction in non-residential construction in 2010. With that said, we see excellent potential for value creation. Our customers and our suppliers are increasingly concerned about the integrity of their supply chains and are looking to do business with a smaller number of larger partners, which bodes well for us. The challenging market conditions and the expected duration of this downturn provide opportunities for share gain and additional acquisitions by stronger well capitalized companies like WESCO. Our company is larger, more diverse, more profitable and financially stronger than during the last downturn in 2001 to 2003, and as a result well positioned to gain ground during this period. In the third quarter, we delivered stable sales and margin in the face of continued weakness and highly competitive conditions in our end market. As you'll recall, we experienced the initial effects of the economic downturn and a decline in our daily sales rates in mid-November 2008. We responded quickly and took actions to protect profitability over the last four quarters while continuing to invest in our growth initiative. Specifically, we've maintained our 100% contract renewal rate with our national account customers and have secured over 60 new wins since the beginning of 2008, while increasing our opportunity pipeline to an all time record level. We've strengthened our international operations by establishing several new foreign subsidiaries over the last 12 months. This geographic expansion strategy supports an evolution of our nation accounts program to a global accounts management approach directly in response to our customers increasing requests to address their needs outside of North America. We've opened nine new communications supply…

During the third quarter, we continued to invest our resources on a series of growth initiatives targeting end markets with immediate and long-term growth potential, continue to execute on our cost reduction and working capital management efforts, and successfully completed a refinancing of the majority of our convertible debentures. As John mentioned, our third quarter daily sales rates were stable, which is a positive indicator that we have entered a bottoming process. Our industrial end markets had slight sequential sales growth while sales to our construction customers were down slightly. Adjusting for the negative impact of foreign exchange, consolidated sales and $1.15 billion, decreased 28.5% versus the third quarter of 2008. Reductions in product prices reduced current quarter revenue by approximately $35 million in comparison to the third quarter of 2008. Backlog, which consists of firm construction orders for future delivery, ended the quarter down 8% from year-end and 1% from the second quarter. Product margins showed slight improvement on both the comparables and sequential basis despite very competitive market conditions throughout the quarter. Gross margins of 19.2% were down 20 basis points versus last year due to cost associated with our inventory reduction efforts and lower supplier rebate rates. Sequentially, gross margins declined 10 basis points primarily due to expenses related to our inventory management efforts, offsetting other positive factors. Our overall mix of business was consistent with the third quarter of 2008 and had minimal impact on gross margins. In the last year we've reduced nearly 1,100 position or approximately 15% of our employee base as part of our cost reduction efforts. As a result of this and other initiatives, third quarter 2009 SG&A costs were reduced $43 million or 20% versus last year. We were on track to deliver over $140 million of operating expense reduction in…

I'll be providing some insight on the activity levels for each of our major end markets and our actions relative to those markets. Sales to our construction, industrial and OEM and utility customers were down 29% in the third quarter versus last year and were down slightly sequentially. The sales declines were broad-based across our end markets and have continued at a similar rate into mid-October. Looking at construction, sales to construction customers were down versus last year in all geographic regions. Sequentially sales were down slightly at 2%. Backlog, which includes construction oriented firm orders, declined slightingly in the third quarter at a rate comparable to sales. While the architect building index has continued to reflect rapid declining levels of activity, recent forecast from Dodge indicates that starts for the primary non-residential construction market segments of commercial, institutional and manufacturing buildings are forecasted to be down $3 billion or less than 2% in 2010. Construction expenditures, however, are forecasted to be down in the mid-teens. Our construction sales and service initiatives continue to be focused on large regional and national contractors, particularly those involved in health care, educational facilities, data centers, energy and government, infrastructure related projects where we expect to see the most activity over the next four to six quarters. We have a series of major initiatives and opportunities with our utility, industrial and contractor customers in the $2.5 billion outdoor and area lighting market as innovation, such as LED technology and stimulus funding, provides catalyst for increased spending. Data communication projects activity and our opportunity pipeline in enterprise cabling and security remains healthy as our sales and marketing initiatives are continuing to yield positive results. Key wins during the quarter were posted in the government, education and health care sectors with seven project awards in excess…

(Operator Instructions) Your first question comes from Deane Dray – FBR Capital Markets. Deane Dray – FBR Capital Markets & Co.: I'm not sure who would want to take this question, but just the phenomenon of the past couple of quarters has been all about destocking and it didn't sound as though that was called out as a factor. Is that over and you're seeing that tide shift the other way yet?

We definitely would say that we have not seen the destocking come to an end. As we mentioned, we saw a sequential uptick in our industrial end markets, but I think you can take a look at that and think of that as destocking is still occurring with us gaining some momentum. We had been adding new accounts and we had been increasingly trying to sell all our products and services to each and every customer. Deane Dray – FBR Capital Markets & Co.: With regard to pricing, can you give us a sense of the impact of pricing on the quarter and then specifically address the issue whether you're seeing any big project re-bidding or coming back, customers re-pricing?

I'll hand it to Richard to talk through pricing and then I'll follow-on with kind of the dynamic we're seeing in the markets.

Just on a year-over-year basis, pricing had about a $35 million impact on the quarter, roughly $20 million of that was related to the impact on commodity prices. I think that's fairly consistent with what we've been seeing the last in the second quarter and first quarter of this year. So really no big change there.

And I'd say if I were to characterize the pricing environment, Deane, which is the heart of your question, it is very competitive. We're seeing a similar dynamic in the third quarter as we saw in the second. That is, there are many more I'll call it contractors bidding for new projects. And those projects that are underway really increased pressure to look at price reduction and/or additional re-bids. So if you step back and take a look at it, a lot of capacity came out of the industrial market, the destocking been occurring it's not quite finished on the construction side. We still have – the large number of competitors are still in the market competing for a smaller number of opportunities. And the pricing dynamic, I'd say in the third quarter is very much similar in the second, which is highly competitive. Deane Dray – FBR Capital Markets & Co.: Just last question from me related to pricing is, how do you reconcile the dynamics with copper price that's now expected to escalate in the face of broad customer pushback on getting prices through?

Deane, on the copper front, we've seen some real nice movement in this year, it's still below where it was last year. And I would say WESCO specifically and the industry in general is pretty efficient on the commodity side where it relates to copper content or steel conduit of getting that push through the marketplace. There's a little bit of lead lag on that. As you know when we stopped many times that we addressed that by maintaining a tight inventory supply. Where we do have annual or multi-year agreements, and we have specific breakouts in those contracts were commodity movement. So I agree that there's a sentiment out there, but I think the industry is relatively efficient at dealing with that phenomenon because it has been really volatile since starting in mid-2004.

Your next question comes from Hamzah Mazari – Credit Suisse. Hamzah Mazari – Credit Suisse: Could you speak a little bit about your own inventory levels and where they need to be right now, given what you're seeing in your end market? You spoke last quarter of them having to come down some more. How should we think about that?

We feel very good about our current inventory levels as we exit the third quarter and enter the fourth. As we've mentioned in the past, we're very much focused on our customer service metrics. We look at fill rate. We look at inventory availability for our high velocity items. So we want to make we have in stock those items that our customers are going to need. We [master] that, and keep in mind we have a distribution center network that feeds the branches and provides daily replenishments to our branches. So if you look at entire system, we've got a high degree of sophistication in terms of how we set our inventory stocking levels, not to mention, we are for most of our suppliers their largest customer, which gives us opportunity to command, let's say if we're short in a particular product area, we can work that supplier to get that product. So I would say we're in good shape. And just to bring a point to that, we have reduced inventory significantly over the last year. And it included some additional reductions in the third quarter, as we mentioned we would have in our last release. Presently, we feel good about the levels. Hamzah Mazari – Credit Suisse: Then is it fair to say that your business is more mid-to-late cycle because of your exposure to CapEx spend and projects and so your top line is going to lag some of the lead economic indicators getting better by say six months? And assuming that non-resi doesn't take another huge leg from here and sort of deteriorate a little bit, that implies that we should start seeing a stronger sequential growth in your top line sometime in the first half 2010. Is that a fair way to think about your business? I'm not asking for guidance, but just some color around that.

We are relatively balanced across the cycle. I'd say we're more balanced if you were to look at us over a 15-year time horizon since we spun out of Westinghouse if you look at the acquisitions we've done. It created more balance, but I'd say we're more biased towards a mid-to-late cycle. Here's how we're thinking about it, and just to be very direct, we're presently going through our 2010 operating planning process, so we've not established how we're dialing up next year as of yet. But, the way we think about it is we're seeing positive indicators on the industrial end markets. So, in terms of our industrial and our OEM valued-added assembly, we're seeing potential for sequential positive momentum i.e. a tailwind. On the institution and government segments, the ING of C&G, we absolutely given our initiatives and the market and stimulus funding as a positive contributor, see that as a potential for sequential positive momentum, i.e. a tailwind. Utility, I'd say it's a mixed bag. As Steve mentioned, power demand is down for the first time in essentially a decade. So, distribution the D of T&D should have some headwind in 2010. Transmission through the substation will have some relative tailwind, we wouldn't say a lot. How does that integrate? We're sorting through those, as we speak. And then, finally, as you suggested, Hamzah, the non-resi clearly is going to be a headwind. You look at the starts this year down over 30% and McGraw Hill now says starts next year will be down low single-digit, but it's the time lag factor of a relatively long cycle industry. And so, the put in place effect we're going to feel the starts being down in 2010. That clearly represents a headwind. So, that's how we're thinking about it from an end market dynamic perspective. And then obviously, we're going through a process now of working all our growth initiative. We gave some deeper insight in this call about what we're doing and how do we integrate that against the end market. So, as we've done in prior years, we'll give very detailed color on that in our next earnings call.

Your next question comes from Sam Darkatsh – Raymond James. Sam Darkatsh – Raymond James: Three questions, if I might. The first one, looking at the sequential gross margin guidance, Richard, you were mentioning you thought it might be flat sequentially. I'm guessing, do the inventory reduction efforts then continue into Q4 and then, therefore, you're going to have negative pressure there, or? I would think that that would begin to moderate as well as you might be getting some sequential benefit from copper. So, I'm curious as to why the sequential flatness in gross margins?

I think to answer your first question, yes, that we're going to keep focused on inventory management, effective use of capital is clearly a priority for us. I would expect we're targeting about the similar reductions in inventory in the fourth quarter as we had in the third quarter, and so the costs associated with that should be about the same. Beyond that, as John said, it is a very competitive landscape, but from a pricing point of view, but we've been doing a good job on that front. So, overall our expectations that gross margins should be similar to second and third quarter level.

Sam, we've been doing a lot of work on the product side of that and even in the second quarter with the gross margin being relatively flat, we've got our product margins up a bit and the offset was related around the inventory areas. Also, as you know, tied to that is the rebates from suppliers and with the growth program buys, you have to have growth in the programs to maintain parody on a percent of cost of sales. So, obviously with sales being down we lost some, so that's been a major headwind on that. But the exciting part or the promising part even in this competitive environment is we've been able to have some success in our product margins across the board. Sam Darkatsh – Raymond James: The second question, your incremental cost savings in 2010 versus 2009, how would you quantify that generally speaking? I know you're going to have some of the discretionary spending cuts in 2009 returned in 2010, or at least the spending come back in 2010. So, how should we look at incremental cost saves next year?

Yes, the one-time discretionary benefits that we got this year as a result of limiting those programs, we're going to reinstate those for 2010. That's our current plan in construct. As we mentioned before, we had a $160 million of total cost savings targeted that we're executing against and we're going to deliver over $140 million of that in 2009 so the residual of that rolls into next year. But the bottom line answer on it is, it is a function of ultimately how we size our 2010 plan because that's the process we're going through now. So, it's a question of our growth initiatives, the level of investment in those growth initiatives. And once we have the 2010 plan solidified, that'll speak to how much costs moves year-over-year. Richard, you may want to add some additional commentary.

No, I think you pretty much covered it all. We would expect to get the full year benefit in 2010 of our permanent reductions that we made in 2009. Sam Darkatsh – Raymond James: So, you've got $20 million of overflow and then $25 million of discretionary spend coming back, so they net against each other. So, how should we look at productivity then next year if cost saves net against each other?

Correct. The full year impact of the permanent reduction is approximately $90 million. We know we'll see about $70 million this year. And given the planning construct John mentioned, we expect to restore the temporary benefits suspensions next year. But again, we have to go through our planning cycle and we'll give more color to that in our next conference call. Sam Darkatsh – Raymond James: Last quick question and then I'll defer to others. John, in your answer to the prior question, you mentioned that you don't think you'll be stocking from your customers have come to an end. Some other peers, distributor peers have mentioned that destocking, at least with their customers, they think has come to an end. Is that an issue of electrical versus other end market categories or a mix of your customer base or a share situation? How would you – I know I'm asking you to put words in other people's mouths perhaps, but how would you reconcile that?

This is not a West Coast specific issue. I think we serve so many different end markets, it depends. Example, our steel customers. Our steel customers began to bring factories back online in the third quarter and add back recall people that they had taken out and production levels are up. So, if you were to say what's happened, at least in terms of at least our view into the service industry and those that we serve, destocking is over and you begin to see some uptick in sequential demand. So I think that's where our statement, we're very clear on, overall you're looking at all the various sub segments of the industrial end markets that we serve. We're stating very clearly that destocking has not stopped across the board. It's end market dependant. Overall, we still saw that in the quarter, Sam, but I think the indicators are positive, but we still saw that occur in the quarter.

Your next question comes from Matt Duncan – Stephens Incorporated. Matt Duncan – Stephens Incorporated: Getting back to the gross margin for just a second, did you guys have any [inaudible] this quarter?

We missed that. You cut out the end of that question. Could you repeat it? Matt Duncan – Stephens Incorporated: Yes, did you have any LIFO layer liquidations this quarter that impacted gross margins?

No, no we don't use LIFO, so we're on a non-LIFO basis for accounting. Matt Duncan – Stephens Incorporated : And then when you look at supplier rebate levels, I would assume that they're down versus 2008. Are you trying in essence to accrue for that evenly throughout the year or is there some chance that there may be an impact there in the fourth quarter?

We attempt to accrue at an even rate and the year-over-year rates of accrual are somewhat down. Matt Duncan – Stephens Incorporated: And then when you look at the expectations for a slow recovery in industrial, I'm wondering if you can give us some color around that. And typically I would assume that you would be hearing positive chatter from your customers. Your order patterns might be changing a bit. And industrial was up under 1% sequentially. Is that kind of activity starting? Are you beginning to see those early signs or are you referring more to sort of what you're seeing in the economic data when you're talking about a slow recovery there?

I think you're seeing it both. You're obviously seeing it in the economic data. The utilization rates are starting to trend back up, the purchasing managed index is in positive territory, the backlog of orders is in the right direction. The one that hasn't really turned positive yet and probably won't for some period of time is in the manufacturing employment area. That tends to lag as people are going to bring on full shifts or work some overtime before they commit to full-time employment. But we have a fair amount of business to we work with our OEM's on a direct material where we're getting future forecasts, and they're starting to show some signs of strengthening. Certainly not back to the '07, '08 levels but better than what we've seen through most of 2009. So I'd say it's both where we're seeing it in specific customers and their activity level on the maintenance and repair and in their forecast for the direct material where we work with that. Matt Duncan – Stephens Incorporated: The last thing here and I'll jump in queue. On the convert exchange and then also on your tax rate, Richard, can you just give us a rough guesstimate as to what annual interest expense ought to look like on a go-forward basis? And then on the commentary that you'll start at 24% in the fourth quarter slowly ramp to a 30% tax rate, how long do we need to think about that process taking?

Your first question, as I mentioned in the script, we exited the quarter at about a 4.8% cash interest rate and that's on total par debt value, and that fully reflects the impact of the convert. So I think roughly it's about $13 million to $14 million year-over- year in cash interest rates due to the convert. Matt Duncan – Stephens Incorporated: What about for reporting purposes, I guess, is what I'm getting at? What are you going to have to report through the P&L?

It gets, again, fairly complicated as far as the debt discounts, so I think overall it's a modest difference but the main effect is on the cash interest rate. Matt Duncan – Stephens Incorporated: Yes, I understand that. I just want to make sure we kind of model it right so it doesn't goof up [inaudible]. And then on the tax rate?

On the tax rate, there again, the 24% rate was our effective year-to-date rate when we remove the impact of the convert exchange, and that's a good number for the fourth quarter. And in 2010 we expect that there's going to be some tax law changes and some changes in some of our international structure that will move our effective rate up to approximately 30% next year. Matt Duncan – Stephens Incorporated: For the full year then?

Yes, for the full year and that should be pretty much in place we would estimate by the second quarter.

Your next question comes from Shannon O'Callaghan – Barclays Capital.

Do you have a sense, I mean, can you quantify the impact this year on gross margins of your inventory management efforts, the volume rebates, anything else that was flowing through there that you think is going to go away?

Yes, I would say approximately about 30 basis points if you look at the inventory managed we recalled this quarter is about 20 basis points. There's another miscellaneous 10 basis points of other factors related to rebates, etc., and I think that's a pretty good number overall.

And that was basically for the quarter and for the whole year?

Yes, I think for both on the year. As we mention on the rebates we attempt to true that up and keep that at a full-year estimate rate. So that's for a full-year basis, those are the two main impacts that affected both the quarter and year-to-date.

Then in terms of the commodity impact on the pricing, I mean you mentioned keeping lean inventories there, so when would we expect that to turn positive? I mean, is it going to track pretty closely with a copper price chart we might see, or when do you expect that to go from a negative to a positive?

We generally see on the copper point with two components there, if you look at it year-over-year definitely had an impact on the top line. As Richard mentioned, we've already worked through it for the most part, so the margin percents were pretty good year-over-year and sequentially, but it usually takes a period of time, maybe a quarter or so, for it to go through. And it depends on the how fast it goes up and how much it goes up because there's a lot – what happens with the numbers you'll see on [Commix] that's more on the speculative side, and in the near run we can see from our suppliers on the price sheets, sometimes they can go counter where [Commix] is going. But generally it tracks it over time. They want to make sure that it's going to hold as they try to push prices through. And we have a bias to help the suppliers push that price through the channel as quickly as we can because it helps everybody. So a couple of month's lag typically on that for us.

And if you were look at the supplier price sheets, they're constantly updating those. They strategically have – each one of those suppliers to us have their own strategy on how they try to work price in. In general they've been trying to push prices through and get the price sheets up, but the environment is very difficult. So what we've been seeing is the price sheets have not been sticking.

Just a last quick one. Did you guys mention what severance charges were this quarter or next quarter?

No, we haven't and we did have severance charges but they weren't material enough for us to call them out.

Your next question comes from David Manthey – Robert W. Baird. David Manthey - Robert W. Baird & Co.: You mentioned that industrial was up about 1% and construction down about 2% sequentially. Can you tell us what normal seasonality from 2Q to 3Q would be in those two segments? And then just one minor question beyond that is, Data COM, could you hang a number on what it was year-over-year in the quarter?

Dave, normally our typical seasonality is the second and third quarter kind of aggregate sales would be flat. What we've been experiencing for the last almost a year and a half or so has been a bit stronger in the commercial construction side, so it has been showing growth. And if you look at it for all of 2009, it's relatively flat for the year when it typically would have been down in first quarter and then grown a lot in the second in the third quarter. So it has shifted, I think it talks to what we talked about the economic environment with the industrial looking like it wants to, maybe it's found it's bottom and is looking to improve. We'll see what happens going forward. It's a huge market. We've got, I think, absolutely the best program in place to take advantage of what's happening with the stimulus fund, and a lot of that is construction project related. And a lot of that's going to be related in the energy efficient lightening, as well as Data COM. Data COM versus last year is down but it's down roughly half the rate of what we're seeing in our overall business and it's doing pretty good. It actually grew sequentially third quarter versus second quarter. We talked about opening up facilities within a facility. We talked about doing nine of those so far. To put that into perspective, when we bought CSE they only had 32 locations so that's a significant number and we look to really expand that. So we're pretty bullish on that. It's a lot of taking share and a lot of taking opportunity of the stimulus spending. David Manthey - Robert W. Baird & Co.: Steve, just so I'm clear on what you said here. At normal seasonality it sounds like industrial would normally pick up a little bit second quarter to third quarter, which is what it did. Non-res probably would pick up a little bit as well but it didn't. Is that how I'm reading you?

I'd said that we would typically see second and third quarter activity levels in both of those being similar with generally a bigger pick up in construction second quarter versus first quarter, a lot related to weather. What we had been seeing was our construction business had been stronger in relative basis didn't fall off as much originally or as quickly and we talked earlier about a little bit of the lag mid-to-late cycle kind of feel to the business.

Your next question comes from John Baliotti – FTN Equity Capital Markets.

John, I had a question. If you think about it you guys have been pretty realistic about visibility when markets are going to come back. And I was just thinking, do you ever feel, or as you think about 2010 or as you think about just the upcoming months. If you think about inventory levels before customers started shutting facilities and becoming more efficient, rationalizing locations, do you have a sense of where you think if you index that at one, where with respect to that, do you expect inventory levels to get? If customers after your facilities I wouldn't expect them to put as much stuff in, because now they have fewer locations to put them. Do you have any feel for that?

I'll just give you kind of a general sense we have based upon talking to a bit of our customers and our suppliers. And keep in mind, our suppliers have the same challenge, right, where they have [inaudible]. Kind of step back and put it in context. Set the clock back a year ago. Look at how much capacity's been taken out of the system over the last four quarters. Significant headcount reductions, factories being shutdown, furloughing parts of workforces, etc., etc. You could pick any end market submarket as far as industrial, and you see that to a large degree. So we've been facing that. I think quite frankly that a number of our leading industrial companies and even our supply community. As the end-market demand begins to come back you're not going to see a rapid rebuild in terms of adding people back in and inventory back in, releasing the controls on purchasing, releasing the controls on capital, because the leaders of these companies in essence have the opportunity to drive significant productivity. As that market demand comes back and pulls through the value chain, they'll kind of add back not at the rate that the demand is pulling. I think that speaks to fundamentally, this is going to be a long, slow recovery. And that's our planning construct.

Right, but that can also be a good thing for you.

We think it's a very good thing for us from an industries perspective. The longer the downturn is, if you take out a long-term view, it's a large market highly fragmented, many small players. The longer this downturn occurs at these kind of levels, there's some sequential uptick, the more opportunity for it to begin to squeeze out the weaker players over time. The fact that this cycle's longer is different than prior cycles.

It's fair to characterize that you're being realistic about the pace of inventory coming back, but if it does come back quicker, you're positioned for that as well?

Yes, that's our planned concept. We know we can react very quickly. We did it on the downturn, which no one forecasted this level of decline. We're absolutely, extremely well positioned to do it on the upturn. And if you recall from the 2004 through 2007 timeframe, we had double-digit organic growth through 11 quarters. We had tight controls on our headcount, and we got great operating leverage. So we know how to deal with a spike in the top line and we know how to manage that thoughtfully.

Your next question comes from [Steve Gambuza] – Longbow Capital. [Steve Gambuza] – Longbow Capital: I just wanted to make sure I understood the comment on the impact of inventory reductions on margins in the third quarter. Was that 20 basis points of a sequential headwind from the inventory reductions?

Correct. [Steve Gambuza] – Longbow Capital: Okay, and it seems like cash flow was stronger in the third quarter than perhaps you expected at the end of the second quarter. Is that generally from greater than expected inventory reductions?

I think cash flow was a little bit stronger than what we expected, but I think we were pretty clear on our inventory targets. We met them in the quarter, so overall, that's a high priority for us being a strong generator of free cash flow, and we're pretty satisfied with the results of the quarter. [Steve Gambuza] – Longbow Capital: And you expect an additional or a similar dollar amount of inventory reduction in the fourth quarter, with a similar P&L impact? Is that correct?

As John mentioned, we focus on managing our inventories in a focused fashion. We are targeting to reduce inventories, but as far as specific we'll be selective in what we reduce because we want to make sure we maintain service levels. If you were to take kind of a four quarter view, our inventories peaked in the third quarter of last year. We brought them down successively each quarter, Q4, Q1, Q2. The amount of drop from Q1 to Q2 and then Q2 to Q, each successive quarter it was less, and so Q4 may come down slightly. We're going to focus on customer-service levels, but we feel very good right now, as I stated earlier, about our current inventory position to satisfy customers. And then we're very much poised as we see any sequential pickup to begin to add to our inventories appropriately. So we don't want to signal that there's any significant further movement in inventories in the current quarter.

Your next question comes from Dan Whang – B. Riley & Company. Daniel Whang – B. Riley & Company, Inc.: First question was, I guess about free cash flow. Is free cash flow performance probably better than what we all expected, and what are the opportunities going forward on [inaudible] or managing the working capital? And I guess kind of related to that, I think I heard additional mention of acquisitions and probably more so than the last couple quarters conference call, and sounds like you're more actively looking there and what type of potential deals are you pursuing? And is that something we could hear more about in the next couple quarters or a little bit beyond that?

Richard, why don't you address the cash flow and hand it back to me for the acquisitions.

Again, we've touched on here clearly we're going to stay focused on being an efficient user of working capital. That won't change. And as far as use of free cash flow, recently our focus has been on improving our liquidity position, and clearly you can see with our record's liquidity as far as this quarter, that's been successful. I think on the M&A side I'll let John touch on that.

Again, if you take a four-quarter look at free cash flow, we're north of $300 million. It's been very strong. And if you step back and think, how should you think about that, it's us managing our working capital effectively and responding to this precipitous decline in market activity. We did the same thing with our cost structure, but as we look forward we'll be thoughtful in terms about the appropriate investment in working capital to support sequential uptick in demand as we see it across our end market segments. And we tried to share a little more in detail this time in terms of where our investments are. So let's come to the second part of your question, which is acquisitions. Look, they've been an integral part of our growth and value creation strategy, having done over 30 since 1994 when we spun out of Westinghouse. We see ourselves as a good acquirer. We have a pretty stringent process in terms of how we identify acquisitions. We have a very healthy pipeline. Look at the capital structure transactions we did this year. It would position us to continue to be positioned to take advantage of outstanding acquisition opportunities. And as we mentioned, we think the challenging market conditions and this expected duration of the downturn is going to give us opportunities to continue to do acquisitions that are very powerful additions to our portfolio and our accretive. So the takeaway should be we're well positioned to do it and it's a matter of right deal, right time, right place. We have a rigorous process.

I just would add to that, Dan, is there's two ways to do the acquisition, one is kind of a formal process by the company, and the other way, which we don't talk about that much, which this economic backdrop is giving us a tremendous amount of ability is to pick up the pieces of a weak competitor. As you know, there's a lot of capacity in the market. We'd like to see some of that taken out. So we're also, while we're looking at good, solid companies for product expansion or geographic market saturation, we're also looking at the weaker competitors and how we can kind of acquire a business by being aggressive on the customer front, as well as the employee acquisition front. Daniel Whang – B. Riley & Company, Inc.: I think just coming out of the last downturn, you probably steered away from acquisitions or weren't as active coming out of it, maybe waited a little bit more as the markets recovered.

That is really two-fold. One was the balance sheet, the financial strength, the size of the companies. They're significantly better today than it was before, and we're in position now to do it more real-time as the opportunities provide themselves to us. Daniel Whang – B. Riley & Company, Inc.: So probably continue to target good opportunities perhaps on the OEM and the attractive parts of the business that you've historically focused on?

In terms of that, if you look at the acquisitions we've done and we've been clear about, they've been very, very much, I'll call it product category and portfolio strengthening moves. We haven't just bought geographic position. You look at a CSC, you look at a Carlton-Bates, you look at a Fastec, we could go on and on, so those that were done in the recent four to five years. So we seek increasing opportunities to continue down that path. As we get additional products and services and we add them to our portfolio, we expand, we can plow through our national accounts business model, integrated supply models.

We have time for one more quick question.

Your final question comes from [Matt Biteriso] – Barclays Capital. [Matt Biteriso] – Barclays Capital: I'll just pile in on the back of that question. Is there any sort of target leverage or max leverage that you'll kind of manage to as you think about getting back into the M&A game? And then if you could just maybe prioritize as things stabilize and you have such strong liquidity, is M&A at the top of that cash deployment strategy, or are there other things which you look to pay down debt as well?

In the near-term we'll be cautious with the leverage. The company's in great shape, but we are looking at the end markets and when they're going to recover in that regards. But if you think about it, for a distribution company and the way we structured our ability to grow the company, the acquired assets become part of our borrowing base. The earnings come into that and it helps us kind of keep the leverage in check as we go up. But our bias in the near-term would be to maintain lots of flexibility in the capital structure but take advantage, if it's a strategic acquisition, we'd certainly look at the right way to fund that

Our bias has been over the recent quarters to pay down debt. We've been doing that. And the capital structure transaction we did this year provide the flexibility to continue to invest in the business organically, as well as through acquisitions. We do feel good. We don't think about a leverage ratio as an explicit target. It's kind of the outcome of our strategy. If you look at the other acquisitions we did, leverage would go up when we did the transaction, but we always had a target one year out, and it had to be accretive and get leverage back in a reasonable target range. The only other point I'd make is in the last downturn our leverage ratio started with a 7, now we're sitting here with a 3. We feel very good about the strength of the company going forward. [Matt Biteriso] – Barclays Capital: Do you guys have the debt balances real quickly or maybe I can get that offline, but just curious what your revolver balance and AR securitization balances were at the end of the quarter.

[Matt], that's on the supplemental, and I can talk to you offline about that.

Okay, I'd like to wrap now. Thank you all for attending today's call and we appreciate your interest and support of WESCO. We're successfully managing our way through these challenging times. We see these challenges, however, as an opportunity to strengthen the company and build on and extend our market leadership positions. In the spirit of our lean culture, we're continuously focused on providing superior customer satisfaction, maintaining our cost leadership position, strengthening our team, and delivering improved shareholder returns. We strengthen our organization and talent base and have the strongest team we've ever had. Our extra effort people are our differentiator. With that, we're committed and remain confident in our ability to exit this downturn a stronger company. Thank you, and have a good day.

That does conclude today's conference. You may now disconnect your line.