Ladies and gentlemen, thank you for standing by. Welcome to the Boston Scientific Q4 2016 Earnings Call. As a reminder, this conference is being recorded. I'd now like to turn the conference over to Susie Lisa. Please go ahead.

Thank you, David. Good morning everyone, and thanks for joining us. With me on today's call are Mike Mahoney, Chairman and Chief Executive Officer and Dan Brennan, Executive Vice President and Chief Financial Officer. We issued a press release earlier this morning announcing our Q4 2016 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 Q4 2016 and full year 2016. Dan will review the financials for the quarter and then Q1 2017 and full year 2017 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. Ian Meredith 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 changes in foreign currency exchange rates and sales from the acquisition of EndoChoice over the relevant prior year period. Also of note, this call contains 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 Q1 and full year 2017 guidance, as well as our tax rates, R&D spend and other expenses. Actual results may differ materially from those discussed in the forward-looking statements. Factors that may cause such differences include those described in the Risk Factors section of our most recent 10-K and subsequent 10-Qs filed with the SEC. These statements speak only as of today's date and we disclaim any intention or obligation to update them. At this point, I'll turn it over to Mike for his comments. Thanks Mike.

Good morning. Thank you, Susie, and good morning everyone. Boston Scientific delivered excellent financial results in Q4 2016 with 10% organic revenue growth, a 200 basis point improvement to profitability and 14% adjusted EPS growth. These Q4 results closed out a very strong 2016 overall, with 10% full year organic revenue growth, a 180 basis point improvement to profitability and 20% adjusted EPS growth to $1.11. This 20% adjusted EPS growth includes a significant $0.06 negative foreign exchange impact. We're pleased that we were able to overcome this FX headwind and still deliver strong double-digit adjusted EPS growth. Our strategy of category leadership in key markets and a diversification into high growth adjacencies is working. It enables us continued investment in innovative medical technologies. We continue to execute against and exceed our strategic plan goals. We believe Boston Scientific is uniquely positioned to drive shareholder value due to our long-term growth profile, ability to improve operating margin significantly and our track record for consistently delivering double-digit adjusted EPS growth. Point of fact for our previous stated goals, we continue to expect to deliver 25% plus adjusted operating margin in 2017, with plans to deliver an additional 300 basis points of improvement by year-end 2020 to 28%. We're excited about 2017 and our plans to build upon our global momentum. We are targeting full year 2017 operating revenue growth of 5% to 7% which includes an approximate 70 basis point contribution from the EndoChoice acquisition. We are guiding to adjusted EPS of $1.22 to $1.26, representing 10% to 13% EPS growth. Importantly, this EPS growth includes an expected $0.08 negative or 700 basis point headwind impact from foreign exchange. I'll now provide some highlights in Q4 and 2016 results, along with thoughts on our 2017 outlook. In my remarks all references…

Thanks, Mike. Fourth quarter consolidated revenue of $2.191 billion represented 11% growth on both an operational and reported basis. This strong top line reflects an unexpected $20 million headwind from foreign exchange, compared to an immaterial tailwind expected at the time of guidance. Excluding an approximate 40 basis point contribution from EndoChoice acquisition that closed at the end of November, organic revenue growth was 10% in the quarter compared to our guidance range of 7% to 9%. We delivered Q4 adjusted earnings per share of $0.30, representing 14% year over year growth and exceeding the high end of our guidance range of $0.27 to $0.29. The double digit adjusted earnings per share growth in Q4 was driven primarily by strong revenue growth, and would have further exceeded our guidance range if not for certain inventory charges related to our LOTUS Edge voluntary field action. I'll provide more details on the inventory charges shortly. Our full year 2016 consolidated revenue of $8.386 billion grew 12% on both an operational and reported basis and 10% organically, which excludes the contributions from the AMS male urology portfolio and EndoChoice acquisitions in their respective periods. Full year 2016 adjusted earnings per share of $1.11 represents 20% growth, and excluding the $0.06 FX headwind that we effectively offset through operational savings and initiatives, adjusted earnings per share grew 26% versus 2015. Adjusted gross margin for the quarter was 72.6% compared to 72.8% in Q4 of 2015, and includes the year over year negative 120 basis point impact from foreign exchange. As a result of the LOTUS Edge voluntary field action initiated in November, in which we paused our European limited market release due to an issue with the deployment pin, we recorded inventory charges equivalent to approximately 50 basis points. Absent these charges, gross margin…

Thanks, Daniel. David, 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 related follow-up. David, please go ahead.

And the first question will come from Mike Weinstein with JPMorgan. Please go ahead.

Good morning and thanks for taking the questions and also congrats on another fantastic quarter. Maybe just a couple items. So, number one, Dan, could you share with us your thoughts on the cadence of organic growth over the course of the year? Obviously your comparisons get more difficult and so would love to just get your thoughts in terms of how the year plays out, number one. Number two, the CRM business benefited particularly on the ICD side from the challenges at St. Jude. Just can you give us your thoughts on sustainability? Then I'll sneak in a third, which is just the comment on the ACCELERATE trial, Mike, basically it sounded like you were trying to enroll some more patients at the corrected or new lead position. Is that accurate? Thanks.

Sure, Mike. Thanks. I'll take the cadence of growth and then Mike can take the other two. In terms of that, I think it really comes down to comps. So obviously very pleased with the organic revenue growth of 10% in Q4 and the full year last year, and believe we've got good momentum heading into 2017. And I think the overall guidance that we have from what we've seen compares very favorably to our peers. When you look at comps, I think that's really where that the Q1 and then the rest of the year story comes in. Our comp for Q1 in 2017 is 8%, so slightly lower than the next three quarters, which are 10%, 9% and 10%. So that's really the cadence as to why Q1 is higher than what you'd see in the last three quarters, is really comes down to overall comps for the company.

Sure and thanks, Mike, a couple comments on CRM. We're obviously really pleased with the performance in the quarter. The business as we talked about grew 8% in the quarter, 3% for the full year, which is we think nicely above the marketplace. And pacer growth has been very strong, 22%. There is some competitive approvals, which we thought would happen about six months ago. But we still expect to do, grow our pacer business beyond the marketplace in 2017. Really excited about what's going on in defib globally. The S-ICD continues to be highly differentiated, continues to have strong uptake around the world, and really is a very big differentiator for our defib platform. We have our MRI defib platform approved international markets. We hope to have that done by the end of the year in the US. And what we're really excited about, I commented briefly on the script is the RESONATE launch, which will be effectively in first quarter in Europe. And we think this is very unique, has very differentiated multipoint pacing. It even extends our longevity benefit greater based on additional labeling, and also contains – we can detail it more with Ken and also at Investor Day, HeartLogic, which we think is a very differentiated heart failure diagnostic tool only available on the RESONATE platform. You combine that with we think CRT, our headwind in replacements will become a bit more of a tailwind throughout 2017. So we think the future is bright in CRM, and particularly once we have our defib MRI approval at the end of the year. With respect to your third question, you snuck three in there, very impressive. With the third one on the novel (34:23) ACCELERATE, really not much more to comment. We were enabled a pre-specified interim review of the data that was constructed as part of the trial design. We obviously took advantage of that. We feel it's in our best interest, especially given the growth of that division, 12% growth for the full year and 16% in the fourth quarter, and strong momentum internationally and US in spinal cord stim. So we'll continue to enroll that ACCELERATE trial, Likely take to the end of 2017 to finish enrollment, and we'll report out the results when appropriate likely in mid-2018.

Perfect. Thank you, Mike.

Next we'll go to the line of David Lewis with Morgan Stanley. Please go ahead. David Ryan Lewis - Morgan Stanley & Co. LLC: Good morning, and I'll just throw in two to get us back on track, but congrats on a good quarter. Dan, just one on cash for you, and then maybe a broader question on R&D. I guess first of all on cash, so cash flow starts becoming a much bigger driver to the business here over these next three years, specifically kind of 2018 and 2019. But you do have significant cash outflows this year. Could you sort of walk us through the timing of sort of mesh and tax payments here in 2017? And with the magnitude of those payments, what impact does that have this year on interest or ability to do M&A and buybacks? And then another question sort of financially or maybe broadly for Mike. Your R&D spread this year is wider than I can remember in past. I maybe wrong about that, but it seems they're pretty widespread. What gets you to the low end and the high end of the R&D investment cycle this year? And I'll jump back in queue. Thank you.

Sure, David. So relative to the cash question, I think as you know, we've a significant effort underway to really to derisk and eliminate a lot of the larger liabilities from the balance sheet, as you mentioned, two of the biggest ones being the tax and the mesh. The way we would look at that is by the middle of 2018, we should have put the majority of mesh behind us, right. As you heard in the prepared comments, 31,000 out of the 42,000 are behind us now relative to settlement. The payment of that obviously will lag a little bit, but 2017 and into tail end of 2018 is what we would see there. The tax, we've mentioned that before, a little more than $500 million, and that should be the majority of that in the back half of 2017 and some might trickle into 2018. So 2017 may be a little bit more constrained on the cash side, although I will say from a credit rating perspective, and our leverage metrics, we start to really free that up as we get to the back half of this year and get back to our capital structure goal. So probably have a little bit more room on that front. So I'd look at 2017 as putting a lot of those liabilities behind us and really freeing it up for 2018 and beyond.

Yeah thanks, David. On the R&D side, we do spend full year almost 11%. Fourth quarter went up a little bit more at 11.5%. We're actually quite pleased about our ability to invest in R&D, and it really gives us the confidence to deliver a strong 2017. And importantly, as we've outlined, we think we'll accelerate growth in 2018 and beyond. A big part of the spend, especially you saw the uptick in Q4 as we have a number of significant clinical trials going on, and the weighting of our clinical trial mix within R&D is a bit higher given that. So, we have two significant trials going on at PI and the drug-eluting, which we think will differentiators us for years to come in that area. We have a lot of clinical work going on in WATCHMAN and significant clinical spend in LOTUS globally. And so we do expect over time that our R&D as a percent of sales will decrease a bit as we march to our operating income targets. But right now, we're going through a heavier bolus of investment at clinical, which will pay off for the company in 2018 and beyond. David Ryan Lewis - Morgan Stanley & Co. LLC: And Mike, sorry, I may have lied. I want to just follow quickly on the clinical spend. One of the clinical trials, I think you mentioned obviously accelerating the update there. I may have missed it, on WHISPER, can you just update us on the timing for WHISPER and when we could expect data?

Yeah. So that one is on track. The detail is obviously in clinicaltrials.gov. We believe that we'll finish the enrollment of that trial by the year end 2017, so December 2017. And so we haven't provided any additional details on the readout of the data, but we hope to finish enrollment by the end of the year. David Ryan Lewis - Morgan Stanley & Co. LLC: Could it be NANS 2018 or probably too early?

Actually not sure. So, we'll finish the trial, then we'll go through the appropriate steps. Not sure if it will happen in NANS or not. David Ryan Lewis - Morgan Stanley & Co. LLC: Okay. Thank you very much. Nice quarter.

Yeah. Thanks, David.

Next question comes from the line of Bob Hopkins of Bank of America. Please go ahead.

Hi. Thanks. Okay. Can you hear me? Can you hear me okay?

Can hear you fine, Bob.

Great. Good morning. So, I have two questions. The first one is on LOTUS. I just wonder if you guys, if you could just confirm that the device you expect to have approved in the US is indeed LOTUS Edge. And then can you just give us a sense as to when we'll next see some longer term pacer rate data from the LOTUS Edge Australia or the patients that were enrolled in REPRISE Edge before the ship hold? Just curious as to when we'll see some more data there.

Thanks, Bob. Yes, we do expect to launch in the US with LOTUS Edge. We're optimistic that we'll have approval by year end of 2017 and I'll have Dr. Ian Meredith comment a bit more on some of the clinical information.

Thanks, Mike. So, to address the question of pace, longer term data with pacemakers, at the ACC meeting, you will see 30-day data presented on the first-in-human use of the LOTUS Edge platform. We presented that data as a seven-day discharge data at TCT last year. So you will see 30-day data at ACC. And at EuroPCR, you will see longer term follow-up data on the LOTUS with Depth Guard, which will provide significant insight into the benefits of Depth Guard technology on LOTUS Edge.

Okay, great. Thanks for that. And then one follow up for Dan on the finance side. Two quick things, one can you just give us your updated views on the potential impact of tax rate reform? Just given your low tax rate, just any updated thoughts there would be great. And then also maybe if you could just quickly comment on why the FX headwind is a little worse. You mentioned greater volatility in rates, but looks like rates have kind of gone in your favors since you last gave guidance. So just curious as to why the FX hit is a little worse than you talked about in December.

Sure. I'll hit the FX one first. Yeah, and it really is, it's the market basket of all the currencies that we track, right. So we hedge certain ones, largely the yen and the euro. But when you look at what's happened since we had kind of snapped the line on that, the overall trend does see $0.08 versus the $0.06 to $0.07 that we had. And it's also a function of the hedges that we have, when we layer in the hedges and how those roll off. So the $0.08 is the most accurate number as we sit today. In terms of tax reform, just broadly, obviously a lot of proposals out there. And where we support it, right, relative to making something we have competitive tax rates for the US companies versus global peers, and that provides us as US companies with much better access to our global cash flows. There's a lot of uncertainty out there relative to what the timing would be and the details are pretty scarce relative to transition rules as well. So as you would imagine, we follow that very closely. Some of them are good for us. Some of them are not as good for us and once the tea leaves are out and we see some final proposals, we'll let folks know what the impact is.

But could it put some upward pressure, though, on the guidance that you've given or?

Well, it really depends on how they come out. Let me just give you an example, right. So the interest rate deductibility, right, the timing of when that will be put in and what could potentially be grandfathered. Are you, is it from dollar one, are you grandfathered with the existing debt on your balance sheet today, is it only future debt? Those types of things could have big swings. And so it's tough to guess until we actually see what comes out as a final rule.

Thanks, guys, and congrats on the 10%.

Thanks, Bob.

Next we go to the line of Rick Wise with Stifel. Please go ahead. Rick Wise - Stifel, Nicolaus & Co., Inc.: Good morning everybody. Michael, actually I think I'll start with Daniel. Balance sheet again here, starting in 2018, just following up in your earlier comments, it looks like free cash flow is going to be relatively less encumbered as you move past some of these past challenges. And when you think about it, assuming further growth and less encumbrance, I mean as I think about 2018, 2019, 2020, 2021, I mean you could be generating $4 billion, $5 billion, $6 billion in total cash during that period. That might be a bit optimistic, but even in a period where your cash was encumbered, you were able to be active on the M&A front. Maybe just reflect on some of these topics and as you look out beyond 2017, how are you thinking about that cash opportunity? Will you be more aggressive on M&A portfolio? Are you going to be more aggressive on share repo, instate a dividend? Just help us reflect on those.

Sure. Thanks, Richard. In terms of looking out beyond 2017, I think you've hit on it and it kind of goes to the answer to the earlier question from David as well. 2017 and the first half of 2018 is really putting a lot of the liabilities and the things that we have today behind us and I'm excited for that time when we get to 2018, 2019 and beyond as you mentioned. So, our goal this year is $1.750 billion in cash flow. Safe to assume that grows. We've talked recently about having $6 billion over the 2017, 2018, 2019 timeframe in terms of accessible cash and being able to put that to use in M&A and share repurchase have been historically and I think would continue to be our two most favorite uses. The dividend probably in the short-term is probably not in the cards, but it's something that we continue to look at every year and would evaluate that as we go through those years as well. Rick Wise - Stifel, Nicolaus & Co., Inc.: Okay. A little follow-up on LOTUS. How optimistic are you that with the evolving implant technique for LOTUS that the pacer rate will stay down at more competitive levels? We had some encouraging conversations with European physicians. And maybe talk about the process of – and how long it's going to take to retrain European docs, so that you can generate that better data on the higher implant position? Thanks.

Thanks, Rick. It's Ian Meredith here. I think I could take that question. I think there are four lines of evidence that support the notion that the pacemaker rate will be substantially lower. The first you have already mentioned is the depth of implantation, even with a classic LOTUS. And that's a widespread practice that is taking place now. And you will see the emergence of more and more similar centers reporting their data with a classic LOTUS device showing lower pacemaker rate. And I think we'll see several more of those abstracts actually appear. So that's the first line of evidence. The second is classic LOTUS with Depth Guard. You will see presentations at CRT coming up in a week or two on RESPOND Extend which will, of course, only be seven-day data. Meaningful data will be presented at EuroPCR, so that's LOTUS with Depth Guard. That will be an important line of evidence. Then we'll have the trials of the extension of the data that we already have from the first-in-human study that you know of from TCT last year, will be presented at ACC. And then finally the REPRISE EDGE trial which will be the full complement of patients at EuroPCR. So there are four streams of evidence that seem to be moving in the right direction. The technique for implantation I think has been widely adopted already. And that sets a very strong foundation for people's ability to use Depth Guard when they move to LOTUS Edge. Rick Wise - Stifel, Nicolaus & Co., Inc.: Thank you.

Next we'll go to the line of Brooks West with Piper Jaffray. Please go ahead. Brooks E. West - Piper Jaffray & Co.: Good morning. Can you hear me?

Yes, Brooks.

We hear you fine, Brooks. Brooks E. West - Piper Jaffray & Co.: Thanks. Good morning, guys. I wanted to ask a question on the cardiovascular franchise. You've got a monster comp that you're looking at for next year and wanted to understand some of the growth drivers in that franchise that might offset. So, would love thoughts on SYNERGY. Are you at peak mix? Is there further penetration of market share to be had? I don't know if there is anything you can give us on structural heart and expectations there. And then also, I wanted to hit your thoughts on the ATTRACT trial that we're going to see at SIR in March and how that might impact Jeff's venous business. Thanks.

Sure. Yeah. We've earned a tough comp in IC and we're proud of it. And I think the most important thing to think is our IC business is very broad. We used to be a DES company and now we're clearly DES, but all the structural heart initiatives, our complex PCI. We'll continue to roll out a new FFR platform. So the diversity of the IC portfolio is quite strong. Certainly, we do have some challenging comps, but we're comfortable that we're going to grow above market. And I think if you just look at the momentum that we have in the structural heart business, that will be a growth driver overall for IC. We have a nice new launch coming with SYNERGY in China. And we'll continue to expand our SYNERGY market share. We do think we'll likely won't give a number. We do believe there is more mix improvement we can have with SYNERGY given its acceptance of that platform globally. And we also have a number of new launches. I would call them incremental, but they all help, cutting balloons and so forth in complex PCI. So I think given the diversification and geographies, the breadth of that portfolio, the exciting growth in structural heart and our complex CTO bag as well as improved mix of SYNERGY opportunity in China will help grow that business well in 2017. On ATTRACT, I think that's potentially great upside for the company. I believe that study gets read out in March and we're well-positioned for that business with our ZelanteDVT catheter, our commercial base globally and also just the capabilities we have in venous broadly. So, we'll see how it happens in March, but that could provide some additional upside for that franchise obviously in 2017 and well beyond, especially if that study is positive. Brooks E. West - Piper Jaffray & Co.: Thanks. And then just one follow-up. Have you said or can you remind us, Mike, what's the most recent timeline for LOTUS Edge back on the market in Europe? Thanks.

We've quoted early third quarter is our aim for LOTUS Edge back in Europe. So we want that to happen, but it's important to note that our current LOTUS platform is doing extremely well in Europe. And you talk to many physicians and they certainly want LOTUS Edge, but they're very happy with LOTUS and its current capabilities, its ability to position the device, low PBL rate. So, we want to launch LOTUS Edge, but we're more than pleased with the growth of our current LOTUS platform. Brooks E. West - Piper Jaffray & Co.: Perfect. Thanks, guys.

Next question comes from Larry Biegelsen with Wells Fargo. Please go ahead.

Good morning. Thanks for taking the questions and congratulations on a great year, guys. Let me start with the 2017 guidance. Just to ask a different way, the mid-single-digit growth in 2017. It's obviously the deceleration is driven by tough year-over-year comps. Dan, can you help us think through the different puts and takes for the businesses as it relates to 2017? In other words, what slows this year versus 2016? Is it across the board? Are there certain areas that are more pronounced? And I had one follow-up. Thanks.

Yeah. So, we're obviously pleased with our performance in 2017 and momentum – I'm sorry in 2016 and momentum going into 2017 and beyond here. You hit the first one. We're coming up against a 10% organic comp. And the good news for the company, it's broad-based. As I said, five of the seven divisions grew double-digits in Q4. And so, we do have tougher comps really across the board, but that's really offset by strong momentum that we have really across each business. So the comps are tougher, but we have strong momentum and I don't think I have time to go through each division. Each division has continued on product launches that we can expand globally, a number of new launches. Just take CRM for example. In a tough market we're growing above market and we're really excited about this new RESONATE platform that will launch right now in Europe and likely third quarter in the US. One that we don't talk about, we have some momentum building we believe in our EP business with our new HDx platform. That's just in rhythm management. I talked about IC a little bit ago with Brooks. And also PI, MedSurg continues to do well. Endo is moving into new markets based on our EndoChoice acquisition, the AXIOS Stent. Neuromodulation continues to do well. So we have a extension of our product launches that we have. We'll continue to grow globally. The business has momentum, which is difficult to build for a company, and we're going to continue to press on that. And what's most important for us is, while we deliver a strong 2017, all these new platforms that we're investing in now that give us the higher R&D spend begin to generate even more fruit we think in 2018 and beyond.

That's very helpful, Mike. One for Dr. Meredith on LOTUS. Dr. Meredith, in the past you've talked, you've said publicly you expect the REPRISE III data to be similar to the head-to-head study you published in JACC in 2015. Is that still the case? And can you comment, I know we've talked about this before, and I just can't remember what the response was, but there did seem to be a little bit of a higher stroke rate for LOTUS in that study compared to CoreValve. Can you remind me why that isn't a concern for you? Thank you very much for taking the questions.

Larry, it's a great question. I think the best comparison we still have for the REPRISE III data, until the data is known, is the study that you actually mentioned. That of course was not a randomized trial. It was a consecutive comparison and propensity matched patients. So one would assume that the pacemaker rate would be somewhere in that vicinity. Having said that, we have seen the uptake of a higher implant technique across the world and that will influence the practices in the US. So it's hard to predict exactly what the pacemaker rate might be. But I think it would be safe to assume that it would be similar to something that is published in the JACC manuscript that you mentioned. The second question with the stroke rate, I don't believe that there is an appreciable difference in disabling stroke. The difference, and as was identified in that manuscript, was that there was a pre-specified neurological assessment before and after valve deployment, which means that there was a lower threshold to detection in the LOTUS arm of that study than what we had for the CoreValve arm. So, I suspect that the rate of disabling stroke, which is troublesome for all valves, will be comparable between the two groups.

Thanks for taking the questions, guys.

You're welcome.

We also have a question from the line of Matt Taylor with Barclays. Please go ahead.

Hi. Thanks for taking the question. So, the first question I had was, Dan, when you are talking about this operating margin expansion, I thought maybe it was worth revisiting the sources of that for 2017. I mean, certainly you gave us an overview a while back for the long range plan. But can you talk about the specific components of the operating margin expansion for 2017? And just kind of give us an update on how some of those initiatives have gone, and what's left to go in the tank as you move toward the high 20s?

Sure. The good news is, Matt, it's across the entire P&L and you can see that when you look at our ranges for 2016 versus 2017. It's expansion in each of the key areas. So when you look at gross margin, we were at 72% for 2016. The range is 72% to 73% and that includes offsetting a 50 basis point headwind from FX. That's continuing to launch accretive products. It's optimizing our plant network and it's really being maniacally focused on reducing standard product cost in a year over year comparison. So, that's really where we get the majority of the benefit in gross margin. SG&A, we have a companywide initiative, as you've heard about over the last couple years, to really drive that down. You saw the benefit this year in terms of the reduction in our SG&A rate as a percentage of sales. You see it again next year in terms of what we've given for guidance. And then, Mike (sic) [Matt], the commentary around R&D, R&D is really not the hunt in the current configuration to generate additional operating margin. It's more in the SG&A and gross margin lines. But the two of those are what get us to that 25.5% midpoint for 2017. And then as you look out getting to that 2020, there's probably a little bit less on the gross margin side and more on the SG&A and R&D side to get us to that 28% by 2020.

Okay, great. And then I just had a follow-up on tax. I mean understanding nobody has the answer to this, I wanted to know if you could help us understand what your exposure could be to a border tax. And then are you doing anything differently as a management team to prepare for these potential changes, whatever composition we might see?

No. As I mentioned to the answer to the earlier question, we obviously are very close and plugged into the entire process relative to the border tax, where I would call as a slight net importer. So the border tax would probably be a net negative for us overall. But again, it depends on how that comes in terms of a configuration, what's the rate, what's included, what's excluded and then there are other parts of tax reform that are beneficial around the cash access and others. So, we really need to see the different elements of how the final proposals come out, put that through and see what the impact is. In terms of whether we're doing anything differently, other than monitoring it and really staying close to that, no, we haven't changed our strategy as a team. Mike mentioned earlier category leadership and driving that. And so, we're monitoring tax reform, but not changing anything we're doing.

Okay. That's helpful. Thanks a lot.

All right. David, with that, we'd like to conclude the call. Thanks for joining us today. We appreciate your interest in Boston Scientific. And before you disconnect, David will give you all the pertinent details for the replay. Thank you again.

Ladies and gentlemen, this conference will be made available for replay after 10:30 AM Eastern Time today until February 16 at midnight. You may access the AT&T playback service at any time by dialing 1-800-475-6701 and entering the access code 408942. You can also reach internationally at 1-320-365-3844. Again those numbers are 1-800-475-6701 with the access code of 408942 or reached internationally at 1-320-365-3844. That does conclude our conference for today. Thank you for your participation and for using AT&T TeleConference. You may now disconnect.