Ladies and gentlemen, thank you for standing by and welcome to Boston Scientific Quarter Three 2015 Earnings Call. At this time all participants are in a listen-only mode. Later we will connect a question and answer session. Instructions will be given at that time. As a reminder, this conference is being recorded. I'd now like to turn the conference over to our host, Ms. Susie Lisa, please go ahead.

Thank you, Brad. Good morning, everyone. Thanks for joining us. With me on today's call are Mike Mahoney, President and Chief Executive Officer; and Dan Brennan, Executive Vice President and Chief Financial Officer. We issued a press release earlier this morning announcing our Q3 2015 results which included reconciliations of the non-GAAP measures used in the release. We have posted a copy of that release, as well as reconciliations of the non-GAAP measures used in today's call to the investor relations section of our website under the heading Financial Information. The duration of this morning's call will be approximately one hour. Mike will provide strategic and revenue highlights of Q3 2015, Dan will review the financials for the quarter and then Q4 2015 and full-year 2015 guidance, and then we'll take your questions. During today's Q&A session, Mike and Dan will be joined by our Chief Medical Officers Dr. Keith Dawkins and Dr. Ken Stein. Before we begin I'd like to remind everyone that on the call organic revenue growth is defined as excluding the impact of sales from divested businesses, changes in foreign currency exchange rates and sales from the acquisitions of interventional businesses of Bayer AG, Bayer and the American Medical Systems AMS Male Urology portfolio over the prior year period. Also note this call contain forward-looking statements within the meaning of federal securities laws which may be identified by words like anticipate, expect, believe, estimate and other similar words. They include, among other things, statements about our growth and market share, new product approvals and launches, clinical trials, cost savings and growth opportunities, our cash flow and expected use, our financial performance including sales, margins, earnings and other Q4 and full-year 2015 and 2016 guidance, as well as our tax rates, R&D spend, and other expenses. Actual…

Thanks, Dan. Brad, let's open it up to questions for the next 30 minutes or so. In order to enable us to take as many questions as possible, please limit yourself to one question and one quick related follow-up. Brad, please go ahead.

Thank you. And our first question will come from Bob Hopkins with Bank of America. Please go ahead.

Hi. Thank you. Can you hear me okay? Michael F. Mahoney - President, Chief Executive Officer & Director: We can hear you. Daniel J. Brennan - Chief Financial Officer & Executive Vice President: We can hear you fine, Bob.

Great. Good morning and congratulations on a really strong third quarter. Daniel J. Brennan - Chief Financial Officer & Executive Vice President: Thanks, Bob.

So, I have two questions, one regarding the fourth quarter guidance on the revenue side, and the other just on 2016 and your comments about FX. So to start with the Q4 guide, you grew a really solid 5% in the third quarter. The fourth quarter guidance of 4% to 5% organic is slightly lower than the third quarter growth despite SYNERGY and a lot of good momentum in the business. So I'm just curious, in Q4 versus Q3, what deteriorates in terms of growth or is this just simply conservatism built into the guide? Daniel J. Brennan - Chief Financial Officer & Executive Vice President: Well, let me give you a sense of that, Bob. So I think as you said, we're guiding 4% to 5% organically for the fourth quarter. Certainly, very pleased with the organic growth performance year-to-date, which is about 4.7% and expect organic growth of 4% to 5% both in Q4 and for the full year, which is a raise from our previous guidance of 3% to 5%. And a quick tailwind and headwind summary, I think you're right. SYNERGY, obviously, is the largest tailwind in Q4. It does have, obviously, a slower ramp than traditional DES launches, as there's a contracting element to it and it's a premium product. And it does face pretty tough comp year-over-year when you think back to last year, DES grew 12% globally for the company. So it's a tough comp for SYNERGY. And then – but continued launch and roll out of WATCHMAN as well – is another tailwind. On the headwinds side, and I think Mike covered this in his prepared remarks, the CRM headwinds persist. Which as we indicated on our Q1 call, we do have some portfolio gaps in the U.S., primarily around MRI-safe technology…

Great. That's very helpful. I just wanted to make sure we had a sense for the moving parts, so thank you for that answer. So I guess, I'll let others focus on 2016, but I guess to follow-up, I just want to be clear on CRM. Previously, you had said you expect in the back half CRM to be roughly flat year-over-year. And that's what you delivered in the third quarter. Is that what you roughly expect for the fourth quarter as well, implicit in this guidance, is CRM to, again, be kind of roughly flat year-over-year? Michael F. Mahoney - President, Chief Executive Officer & Director: I would say that's – we won't give – carve out specific guidance for CRM for fourth quarter, but I would say that trend is consistent. You know we called a softening of CRM back in first quarter. We're seeing that. The great news, we're seeing offset in Europe with consistent, I think six quarters in a row, of strong growth in Europe. And those products will be improved in the first half. So, we anticipate an ongoing softening in CRM kind of where we are today, flattish, that we delivered this quarter. And we expect that through first quarter 2016 consistent with the script. The great news is we're offsetting that flattish growth with strong growth across the enterprise. And more importantly, or as importantly, we're delivering strong growth in Europe with our CRM portfolio. And so, we're anxious for that to come to the U.S., which would further propel 2016.

Great. Perfect. Congrats again. Daniel J. Brennan - Chief Financial Officer & Executive Vice President: And then Bob, did you have a question on FX for 2016 as well?

Well, I just – you guys gave some guidance there and a $0.05 headwind – and that's much appreciated. And I just wanted to kind of get your sense for other puts and takes because the Street is modeling roughly 16% earnings growth for next year. And it was just – with a $0.05 FX headwind – just wondering if you had any other comments and other considerations for 2016 relative to what you said previously. Daniel J. Brennan - Chief Financial Officer & Executive Vice President: Yeah. I think I'm not going to get into a full 2016 guidance review, obviously, today, but just given the FX landscape of the year and a lot of questions we get relative to FX going into 2016, felt like it was prudent to give folks a sense of what we see relative to that in 2016. As we did this year, we were able to offset all of that. Our goal obviously is to offset as much of that as we can, but in terms of specific line item and headwind and tailwind guidance for 2016, I'll save that for the call in February.

Great. Thank you.

The next question will come from David Lewis with Morgan Stanley. David R. Lewis - Morgan Stanley & Co. LLC: Good morning. Michael F. Mahoney - President, Chief Executive Officer & Director: Hi, David. David R. Lewis - Morgan Stanley & Co. LLC: Mike, I wonder if you could give us some high level thoughts on 2016. As you remember, back at the Analyst Day, you talked about 100 basis points of acceleration in the LRP sort of heading into next year. And when I consider Quad, SYNERGY and WATCHMAN, is there any reason that we should not expect acceleration in 2016 relative to the numbers you're putting up here in 2015, which looks like they're going to come in pretty close to 5%? Michael F. Mahoney - President, Chief Executive Officer & Director: Good morning. We really don't want to provide any ongoing guidance to 2016 till after our fourth quarter close and our call. So I would just say we give pretty specific guidance that we've delivered on for many years in a row now during our Investor Day meeting. So we called for some accelerated growth in 2016 at that Investor Day, and so we continue to execute against that plan, both in top line and margin improvement, Bob (sic) [David] (35:12) but we likely won't get into any additional guidance until later. David R. Lewis - Morgan Stanley & Co. LLC: Okay. And then Dan, maybe kind of another quick question. You gave us the currency for next year. I'm just thinking about the fourth quarter guide. You're averaging about 230 basis points of margin expansion year-to-date. Obviously, the fourth quarter revenue guidance, at least versus our model, is pretty solid. Your margin guidance for the fourth quarter's also very solid, 200 basis points of year-on-year…

And our next question will come from Mike Weinstein with JPMorgan. Please go ahead.

Thanks. This is Chris Pasquale here for Mike. Mike, the sequential acceleration in Neuro and EP over the first nine months of the year's been encouraging. Can you just go into some more detail on some of the drivers there? What are you seeing in Neuro, and where do you think you are at this point in the Rhythmia launch? Michael F. Mahoney - President, Chief Executive Officer & Director: Sure. Neuro, the business grew really well in the quarter, 11%. So the business continues to do well. We're the number one share player in the rechargeable market in the U.S., and we recently launched our primary sell product in Europe and in the Asia market. So that's a category that we hadn't played in, which is a little over $250 million market outside the U.S. So we've got a leading platform in the U.S. that we continued to expand. We launched Novi to expand the addressable market for spinal cord stim. And also, another big part of our strategy in Neuromod's is expanding beyond pain. We've been investing for a number of years in our deep brain stimulation platform, and I said in my prepared comments, we have a primary sell DBS launch called Vercise that we're really excited about, because that's the primary – focus is on primary cell (37:36) rather than rechargeable for DBS. We're also unrolling our DBS trial in the U.S., which we'll provide additional guidance on in the future. So, that business continues to expand. We have very differentiated technology in the markets also; we think are consistent, strong mid-single digit growth markets. On EP, we're really pleased with the success here. We've had three quarters of sequential growth. We've put up 13% this quarter. And we continue to put the building blocks in place to have a very powerful EP business and Rhythm Management business combined with our CRM business in the future. And that's, as I mentioned before, that's really being driven by our Rhythmia, our mapping system, which gives the physicians lots of speed in terms of capture of the imaging; and also recording devices and we're launching our therapeutic catheter line in the fourth quarter in Europe and we'll extend that to the U.S. in 2016.

Ken, do you want to add any comments? Kenneth Stein - Senior Vice President & Chief Medical Officer-Cardiac Rhythm Management: Just to say in terms of the Rhythmia launch itself, again, very pleased with how it's going. We've seen it used now in multiple different geographies. It's been used in all four chambers of the heart successfully, and getting very consistent feedback from physicians using it, that it's enabling them to successfully treat arrhythmias that they never ever would have been able to approach before.

Thanks. And then, sorry if I missed this, but could you tell us how the DES business performed this quarter? I don't think I heard any comments there and just wanted to get a baseline ahead of the U.S. SYNERGY launch; maybe globally, and in the U.S. if you can. Daniel J. Brennan - Chief Financial Officer & Executive Vice President: Yeah. We're not breaking out the growth rate specifically for DES. Interventional Cardiology business grew 7%. Essentially, think of our DES growth in line with the market as we approach the SYNERGY launch in the fourth quarter and the Europe and the Japanese launch later in 2016.

Thanks.

And our next question will come from David Roman with Goldman Sachs. Please go ahead. David Harrison Roman - Goldman Sachs & Co.: Thank you. Good morning, everybody. I wanted just to start with WATCHMAN and then certainly I appreciate your comments, again reiterating the Structural Heart business likely to come in at the high end of the range that you had provided back at the Investor Day in May. But maybe you could help us go into just a little bit more detail on how WATCHMAN is performing. Any sense on reorder rates and how we should just think about the ramp in that business, particularly in light of some of the data that were presented positively at TCT? Michael F. Mahoney - President, Chief Executive Officer & Director: Yes. Good morning. And I'll let Ken Stein comment as well. Just on a couple of the figures, we're not providing any additional guidance on WATCHMAN in terms of our revenue update or reorder rates. We continue to, what I will comment on is the business is doing quite well. We discussed hitting the high end of the range of $75 million to $100 million, WATCHMAN being a key contributor to that. We're really well on track of our goal of opening 100 centers this year. So we'll deliver against that and then we'll open up new centers in 2016. And the team has done a really good job of managing the controlled launch and providing excellent training. Ken, any other additional comments you want to provide on WATCHMAN? Kenneth Stein - Senior Vice President & Chief Medical Officer-Cardiac Rhythm Management: Yes. Thanks, Mike. David, I just want to reiterate, we're really pleased not just with the rates that we're seeing of implants in the U.S. post-commercialization, but the success…

And our next question comes from Glenn Novarro with RBC Capital Markets. Please go ahead.

Hi. Good morning, guys. Two questions on SYNERGY. First, with respect to the U.S. strategy, should we assume the strategy will be similar to Europe, in the sense that you'll take a multi-tiered pricing strategy? And would the goal be to – I assume – to capture more of the U.S. market than you've done in Europe with SYNERGY? And then as a follow-on, specific to pricing, a lot of our survey work suggests that you could probably get a 10% premium, and that would be accepted by the interventional market. So maybe talk about what you guys are thinking in terms of premium pricing, and what your market intelligence is suggesting, in terms of what the market would bear with respect to a premium price? Thanks. Michael F. Mahoney - President, Chief Executive Officer & Director: Well, we do thank you for your insight on the survey. That helps. I think overall on SYNERGY we will continue to, as we said consistently, continue to have a tiered portfolio in drug-eluding stents. We had that in the European market with SYNERGY priced at a premium. In the ten markets where SYNERGY's launched in Europe, it represents over 50% of our market share. And in the U.S., we also will have that same tiered portfolio with SYNERGY; the premium end, Promus PREMIER, which is the market-leading stent in the U.S., will be at a price discount versus SYNERGY. So we won't provide the specific premium that we're going to charge. I think it is important to note that this is a premium product, but as Dan indicated in his comments, this is a product that we will need to go through a contracting process with hospitals, given our pricing strategy. So we do anticipate excellent results in 2016, but we need to also work through that contracting process with hospitals.

Can I just add...

Keith, do you want to add anything?

Can I just add one quick follow-up? As you've launched this into the marketplace today and into your hospitals, what's been the overall reaction to the product, from a pricing point of view? Michael F. Mahoney - President, Chief Executive Officer & Director: From a pricing point of view, clearly, many hospitals would desire no price premium. We don't believe that's warranted, based on the acute performance of the stent and also the experience that we've seen in Europe, and we also have a terrific alternative for hospitals with our Promus PREMIER. So, it's our job to prove the unique benefits of the platform that justify the premium. We've done that in Europe ,and that will be our plans as well in the U.S.

Okay. Thank you.

Keith, you want to comment? Keith D. Dawkins - Global Chief Medical Officer & Executive Vice President: Yes, Glenn. We're also excited, obviously, about the post-approval study, the short DAPT trial with SYNERGY. Normally a post-approval study is a rather vanilla study, but on this occasion, with the agreement of the FDA, we can explore the unique properties of SYNERGY with this early and synchronous elution of the drug and polymer. Many patients, as you know, in the big DAPT trial were not randomized. Many patients spontaneously discontinued DAPT. So we put ourselves in a position, if the trial is acceptable, of having a unique product in the U.S. in relation to a short DAPT, which we and the agency, the FDA, think is very relevant. Michael F. Mahoney - President, Chief Executive Officer & Director: Thanks for the question, Glenn.

And our next question will come from Brooks West with Piper Jaffray. Please go ahead. Brooks E. West - Piper Jaffray & Co (Broker): Hi. Thanks for taking the questions. Wanted to switch gears back to Urology, if I could. Can you talk about, what is in the guidance for AMS? Is that about – we've got about $167 million in our model for 2015 – is that about the right number? And then as a follow-up to that, I think that business, when you acquired it from Endo, was growing at about 3%. Obviously, you're putting up much higher growth in your Urology franchise. As you roll those revenues out into the broader footprint, should we be thinking about that 3% accelerating to more of 8% or 9% going forward? Michael F. Mahoney - President, Chief Executive Officer & Director: Yeah. Thanks for the question. We had a real strong quarter for our Urology business and our core business as we called out in the highlights here. Also, very excited about the integration. We're very committed to the $0.03 accretion in 2016 and $0.07 the year after. And we've really talked about the strong strategic fit with the company, particularly in the commercial channels and the portfolio fit between the two companies. It's just I've made a couple of high-level comments and Dan can provide some additional insights. In terms of the actual integration itself, we've planned for some minor commercial disruption in the fourth quarter and likely in the first quarter of 2016 given the size of the integration, some of the commercial moves that we're making and also to ensure that we have an appropriate level of stocking with our distributors in terms of inventory. So all that's in our model. So we believe that as we…

And our next question will come from Larry Biegelsen with Wells Fargo.

Hey, guys. Good morning. Thanks for taking the question; just one on the tax rate and one on emerging markets. So, Dan, just starting with the tax rate, can you confirm that if the R&D tax credit is renewed, it's worth about 200 basis points or $0.02 in 2015? And so if it is renewed and the 2015 tax rate comes in at 11%, should we be thinking about 2016 about 100 basis points higher from that and 100 basis points higher in 2017? And I understand your philosophy, Dan, on the tax rate and being conservative until it's renewed. But just, can you just set expectations, if it is renewed, what the benefit would be? Daniel J. Brennan - Chief Financial Officer & Executive Vice President: Sure, Larry. So as I mentioned in the prepared remarks, 13% for this year. I think when the R&D tax credit, if it is renewed, is renewed, it depends what comes with it. A lot of times it doesn't just come as a one-sentence thing. There are other pieces that are attached to it. So I would say – I'd be comfortable saying – it's between 100 and 200 basis points. I don't think it's guaranteed to be 200. So we'll see if it is renewed and if it's renewed for 2015 and potentially 2016, we'll see what impact that has on our tax rate, but I'd say between 100 and 200 basis points. And then going forward, I'd look for our guidance in the late January, early February timeframe for 2016 tax rate guidance, but as you know, what we had said before is 100 basis points increase annually for the next few years.

Great. And then on emerging markets, it looks like your growth there this quarter was pretty steady, I think 13% organic, similar to last quarter. So Mike, could you give us a little bit more color on what you're seeing in emerging markets? Obviously, there's been some – it's been in the news a lot in the last quarter or so – and how sustainable you think that growth rate is that you put up this quarter? Thanks a lot. Michael F. Mahoney - President, Chief Executive Officer & Director: Sure. Certainly as you indicated, some challenges in many of the emerging markets. The good news is we're growing consistently. So it's not quite the growth rates we delivered in 2014, but we put up a 13% in Q3 and I think it was at 12% or 13% in Q2. And so we really don't see that trend modifying. Really, the growth for us in the emerging markets continues to be on the heels of China, where we're growing strong mid-teens growth in China. We're also growing strong in India and we target about 10 emerging markets that we won't go through all of them on the call here that we put additional emphasis on. We continue to invest in additional training centers; we continue to invest in R&D capabilities outside the U.S., particularly in China and India; and we continue to expand our distribution reach in these key markets. So although the market's slowed a bit from our previous year's performance, we feel comfortable with our performance in Q3 and that trend going forward.

Thanks for taking the questions, guys. Michael F. Mahoney - President, Chief Executive Officer & Director: Yep.

And we'll go on to the next question in line. It'll come from Matt Taylor with Barclays. Please go ahead.

Hi. Thanks for taking the question. Can you hear me okay? Michael F. Mahoney - President, Chief Executive Officer & Director: Sure, Matt. Yes.

Great. So my first question is obviously you're closing the AMS deal here and talking about getting back to normalized leverage levels. I guess just with the kind of M&A landscape that's out there, I think there's been a lot of smaller assets that have really come down in value, and I was just wondering how you're thinking about M&A in that context and what kind of leverage levels you'd be comfortable with if there's things out there where you can be opportunistic? Michael F. Mahoney - President, Chief Executive Officer & Director: I think our answer there really stays the same. We always look for – we're always looking for appropriate M&A activity. We've guided that we'll continue to look at tuck-in acquisitions that deliver strong ROIC, that exceeds our cost of capital ideally by year three. And so we'll continue to look. I know the market's been very volatile, but in the quarter itself we did a number of early stage venture investments, one being in mitral and a few others that we won't discuss – disclose publicly. So we always look and the markets have made, maybe the market's a little bit more ripe for M&A activity. Dan, any other comments there? Daniel J. Brennan - Chief Financial Officer & Executive Vice President: Yeah. I wouldn't comment on a specific leverage level, Matt, except to say that we're still committed to delevering as we had announced at the time of the AMS acquisition, to get back to our pre-AMS leverage metrics by the end of 2016, which is why we suspended the share repurchase program and prioritized some debt payment here in 2015 and 2016 as well.

Great. And a couple of people have asked around this question, so I apologize if it's a little bit redundant, but I was wondering if you could just give us a flavor for how you see some of the different factors in your Rhythm Management group in terms of what the contribution could be once you lap some of these headwinds? Meaning, could you talk a little bit about the magnitude of the replacement headwind and how that abates? And then what you expect from MRI-Safe and Quad? Which of those is the biggest catalyst of the three and if you could talk a little bit about the timing, I think that might be helpful. Michael F. Mahoney - President, Chief Executive Officer & Director: Yeah. So really at this call, we're not going to provide any additional insights into our 2016 CRM guidance. We've reinforced a few times that our European business is performing mid to low single digit growth six consecutive quarters; bring those portfolios to the U.S. In 2016, we'll be faced with that replacement headwind for a big part of the year in 2016, but that'll abate more in fourth quarter 2016 into 2017. So, we're clearly positioned for improved performance going forward, given the product portfolio and the eventual reduction of the replacement cycle headwind. And we'll get more insights on that as we provide 2016 guidance.

Okay. Thanks a lot.

Last one, Brad.

And that'll come from the line of Matt Keeler with Credit Suisse. Please go ahead. Matthew J. Keeler - Credit Suisse Securities (USA) LLC (Broker): Hey, guys. Thanks for taking the questions. Just first on SYNERGY, I'm wondering if you can give us some color on how you're thinking about the ability of that product to drive unit share in the U.S.? Do you see the potential for that or is this more of something that gets you benefit on the price side? Michael F. Mahoney - President, Chief Executive Officer & Director: Yeah, we clearly are working that equation. We're confident that if we didn't drive a price premium that we could gain share quickly, but we don't think that's the right thing for the business for the long term. So we've been pretty consistent on that. We do believe we have the ability to gain share with SYNERGY despite a price premium, given the unique characteristics of the platform combined with the comprehensive other solutions that we offer including Chronic Total Occlusion, the WATCHMAN device and others in Interventional Cardiology. So, Keith, any other comments there? Keith D. Dawkins - Global Chief Medical Officer & Executive Vice President: Yes. I think the superior acute performance of SYNERGY resonates with cardiologists in countries that we've launched the product in, and also obviously confirmed by the pivot – U.S. pivotal EVOLVE II trial – it has best-in-class stent thrombosis rates of 0.4% at 12 months. So I think the safety and the early healing characteristics of the device are appreciated, both by cardiologists and their patients.

Okay. With that, we'd like to conclude the call. Thank you very much for joining us today. We appreciate your interest in Boston Scientific. Before you disconnect, Brad will give you all the pertinent details for the replay. Thanks very much.

Thank you. And ladies and gentlemen, the conference will be made available for replay after 10:30 this morning and running through Wednesday, November 11 at midnight. You can access the AT&T Executive Playback Service at any time by dialing 1-800-475-6701 and entering the access code 368331. International parties may dial 1-320-365-3844. Those numbers again: 1-800-475-6701 and 1-320-365-3844 with the access code 368331. That does conclude our conference for the day. Thanks for your participation and for using AT&T Executive Teleconference Service. You may now disconnect.