Good day, my name is Eric and I will be your conference facilitator today. At this time I would like to welcome everyone to the Danaher Corporation Third Quarter 2015 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. As a reminder, today's conference is being recorded. I will now turn the call over to Mr. Matt Gugino, Vice President of Investor Relations. Mr. Gugino, you may begin your conference.

Thanks, Eric. Good morning, everyone, and thanks for joining us on the call. With us today are Tom Joyce, our President and Chief Executive Officer; and Dan Comas, our Executive Vice President and Chief Financial Officer. I'd like to point out that our earnings release, the slide presentation supplementing today's call, our third quarter Form 10-Q and reconciliations and other information required by SEC Regulation G relating to any non-GAAP financial measures provided during the call are all available in the Investors section of our website, www.danaher.com under the heading Financial Information. The audio portion of this call will be archived on the Investors section of our website later today under the heading Events and Presentations and will remain archived until our next quarterly call. A replay of the call will also be available until October 29, 2015. The replay number is 888-203-1112 within the U.S., or 719-457-0820 outside the U.S. and the confirmation code is 357158. During the presentation, we will describe certain of the more significant factors that impacted year-over-year performance. The supplemental materials, our third quarter Form 10-Q, describe additional factors that impacted year-over-year performance. Unless otherwise noted, all references in these remarks and supplemental materials to company-specific financial metrics relate to the continuing operations of the company in the third quarter of 2015, and all references to period-to-period increases or decreases in financial metrics are year-over-year. During the call, we'll make forward-looking statements within the meaning of the federal securities laws including statements regarding events or developments that we believe or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our SEC filings and actual results might differ materially from any forward-looking statements that we make today. These forward-looking statements…

Thanks, Tom. That concludes our formal remarks. Eric, we're now ready for questions.

Thank you. And we'll take the first question from Nigel Coe with Morgan Stanley. Nigel Coe - Morgan Stanley & Co. LLC: Thanks, good morning, guys.

Nigel. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Hi, Nigel. Nigel Coe - Morgan Stanley & Co. LLC: Just wanted to pick up on some of the guidance, Tom. It seems that September was weaker than the rest of the quarter, just maybe comment on that. And the 2% core growth as we enter 4Q shouldn't be a surprise, given the selling days pressure, but given the weaker September, is there a risk it could be a bit weaker than 2%? Thomas Patrick Joyce - President, Chief Executive Officer & Director: Thanks, Nigel, good morning. Overall, we have seen some incremental slowing in the macro. That being said, it's in pockets. There's some pockets regionally where we've seen some of that slowing, clearly, and in some of the more industrially oriented markets. We saw that in September. But I would not say we've seen some form of a step change in demand across the portfolio. In fact, we think generally, the portfolio is very well positioned, it clearly differentiates us. And generally we think, when you look at the strength of the portfolio, when you look at the fact that we got the Pall closing done and we're getting after the opportunities that we have there, and we see the year-over-year FX impacts potentially dissipating as we move forward, clearly some weakening, but my inclination is continue to play offense. We need to continue to be cognizant of both the headlines and our trend lines, but our bias is to build on our strengths and despite some slowing here, we think the fourth quarter could largely be consistent on a days adjusted basis, anyway, with what we've seen here in the late going in September. Nigel Coe - Morgan Stanley & Co. LLC: Okay, that's great. And…

And the next question is from Steve Tusa with JPMorgan.

Hey, good morning. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Morning, Steve.

Could we get a little more color on Pall and, in particular, what you're seeing in the Industrial businesses there as well as the Life Sciences? And then just also what are the kind of financial moving parts as far as profit contribution in the fourth quarter and then to the extent that you're either investing that away with restructuring or letting that drop to the bottom line? Thomas Patrick Joyce - President, Chief Executive Officer & Director: Sure, thanks, Steve. First of all, we're really pleased that we got the Pall closing done as we did. Terrific teamwork, I think, on the part of the Pall team as well as the Danaher team to get that done sooner than anticipated. We're off to a very good start. We have Rainer Blair, who many of you know from our Life Science business, in the leadership position over the business right now. We've added Danaher teammates to the Pall squad and teams are working well, driving both growth initiatives as well as cost initiatives. Specific to your question, Steve, on Industrial and Life Science. On Life Science, we've seen continued strength, anchored specifically in the biopharma side of the Life Science portfolio, consistent with what we've seen historically in the business and consistent with our expectations. We have seen an incremental level of weakness in the Industrial side of the house. Again, probably to be expected, given the nature of the exposure to certain end markets in Industrial business. So incremental weakening, but understandably so, given those vertical markets. Specific to the financial contributions, we will see some contribution clearly here in the fourth quarter at Pall, but obviously that will, in fact, be offset to some extent by any of the cost actions that we'll take and the investments that we'll make.

Okay. So you're investing that away. And what was the core for Industrial in the quarter? Daniel L. Comas - Chief Financial Officer & Executive Vice President: They were all up. Pall with mid single digits, with Life Science high single to double, and Industrial slightly negative.

Okay. And then one last question. How was September for you guys? Daniel L. Comas - Chief Financial Officer & Executive Vice President: September was up about 2%, Steve. We thought it would closer to 3% and that kind of cost us 0.5 point overall in the quarter.

Okay. All right, thanks a lot. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Thanks, Steve.

The next question is from Scott Davis with Barclays.

Hi, good morning, guys. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Hey, Scott.

Tom, can you give us a little bit more color on Dental? And when you think about like – I can't do the math because I don't have the data, but if Nobel Biocare was up so well then the core underlying business must have been down pretty meaningfully. And you said consumables were strong, so basically means that dentists have stopped buying equipment. So I don't know this business well enough to know whether you get some strange buying patterns there or not, but can you give us a little bit of color on what are your sales guys telling you? Why are dentists not buying right now? Daniel L. Comas - Chief Financial Officer & Executive Vice President: Hey, Scott, one point of clarification, in our core number, we are not including Nobel yet.

Oh, okay. Daniel L. Comas - Chief Financial Officer & Executive Vice President: So on an adjusted basis, we would have been up low single digits, but I'll still let Tom – the question on why we were down slightly. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Yeah, thanks, Dan. Your question still has merit, Scott.

That makes me feel better. Thomas Patrick Joyce - President, Chief Executive Officer & Director: No, but let's go a little deeper outside. First of all, on Nobel, just a quickie. We're really happy with what's going on there. The team has done an excellent job. Average daily sales rates continuing to trend very well. New product introductions coming out on schedule with a strong cadence, great acceptance in the marketplace. Good progress across various regions. So all in, we're super happy with the start there and team's doing well. But onto the core of your question, probably important to think about it in terms of the consumables side of the house versus the equipment side of the house. We saw better performance on the consumables side of the house. We've made a lot of progress, which we had talked about throughout the course of this year, on rightsizing inventories in the channel, driving some sell-out, and our performance there is really pretty good from the standpoint of what we're seeing in the sell-out data. I'd contrast that a little bit to what we've seen on the equipment side. Where on the equipment side it's the inventory rightsizing in the channel that's taken us a little bit longer than we had anticipated. So that is a bit of a headwind there. And secondly, we did see some slowdown in equipment purchases, particularly in the high growth markets, where it's a little bit more project-oriented. Now, the key thing that we look at, though, when we look through those numbers is we look at the sell-out numbers. And the sell-out numbers are – on a year-to-date basis, were in line with the market, certainly, so we think we're holding our own from a share perspective. But it's taken us a little bit longer to get where we wanted to on the equipment channel side and, again, a little high-growth market headwind.

Okay. Fair enough. And then, I had an interesting meeting with a financial sponsor yesterday who just commented that they thought the IPO option was dissipating pretty fast and that they wanted to derisk their portfolio pretty quickly, and this was a fairly large sponsor. It seems to be an environment where Danaher could really provide some liquidity and pick up some decent assets at good prices, but you did comment that you were looking at more small and middish stuff. Is there a scenario where you would stretch the balance sheet and/or even tap equity markets if you felt like it was the right transaction, just given the dynamics out there? Thomas Patrick Joyce - President, Chief Executive Officer & Director: Well, I think your question's framed in the right way, Scott. For the right strategic transaction, for the transaction, for the asset, the business that really strengthens us strategically that adds a level of competitive advantage, that provides a greater level of growth rate on a long-term basis, we would do the right thing from the standpoint of whether that's going into the markets, as we did so effectively to finance the Pall transaction, or set up the balance sheet in a way that would allow us to do that. So my comments should not mean to suggest that there's a bright line that's snapped at a certain point beyond which we wouldn't go. So it's all about the strategic value that can be created.

Fair enough. Good answer. Okay. I'll pass it on. Thanks, guys. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Thank you, Scott.

We'll go next to Steven Winoker with Bernstein. Steven E. Winoker - Sanford C. Bernstein & Co. LLC: Thanks and good morning, guys. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Hi, Steve, good morning. Steven E. Winoker - Sanford C. Bernstein & Co. LLC: Good morning. Hey, just first on the separation timing, I know you've obviously been very busy, you got Pall done early, what are the key hurdles to having that separation happen earlier? Is there a desire to do that earlier anyway? How are you thinking about that at this point? Daniel L. Comas - Chief Financial Officer & Executive Vice President: Steve, two of the bigger drivers are filing with the IRS and getting a favorable ruling on key points and then, two, filing the Form 10 with the SEC and getting through that process. We're working diligently. I think there is a good chance, prior to the investor meeting, we'll have a better sense on whether or not we'll be able to try to pull this thing forward from our end of the year kind of current timeline. Steven E. Winoker - Sanford C. Bernstein & Co. LLC: Okay, great. And then secondly, just perhaps a minor point, but maybe help us understand to what extent in all the major currency headwinds that you've called out, how much of the margin impact is really transactional in terms of maybe mismatched price and cost base? Help us maybe just understand how you're thinking about that in the quarter. Daniel L. Comas - Chief Financial Officer & Executive Vice President: Yes. I mean try to think through kind of a high-level example. So if you take – we've got $5 billion of revenues and 25% of that's in the high-growth markets, not all of…

The next question is from Julian Mitchell with Credit Suisse. Julian Mitchell - Credit Suisse Securities (USA) LLC (Broker): Hi, thank you. Just a question on some of the other companies in the group, they sort of break out price, raw materials price, raw materials impact on margins year-to-date, and obviously it's been a decent tailwind I think for pretty much every company. Is there any color you could provide in the nine-month period, let's say, not just the quarter on how much of a benefit price raw material has been? Daniel L. Comas - Chief Financial Officer & Executive Vice President: Julian, it's clearly been a slight benefit. We continue to get about 60 basis points, 70 basis points of price largely in our consumables business. But commodities – given our gross margin profile, commodities do not play a big impact on our cost of goods sold. The one area where I would have thought we would have actually gotten more of a benefit than we have is actually on the logistics side. Clearly, fuel prices have come down, but the transport companies have been pretty sticky about reducing prices. Now, again, I think as demand gets a little weaker here, maybe that helps. So it's been a benefit to date. But just given our product make-up, it's not been – the commodity side doesn't help or hurt us as much as most industrial companies. Julian Mitchell - Credit Suisse Securities (USA) LLC (Broker): Thank you, and then just a question on China. Obviously, the last month or two, people are trying to see if there's any evidence of a bottoming-out in short-term demand there. Maybe just talk about how you have seen demand in the different verticals in the last three months or four months. Thomas Patrick Joyce…

The next question is from Ross Muken with Evercore ISI.

Hi, good morning, guys. So maybe a little bit more color on the pharma vertical as a whole would be helpful. I know you talked to Pall in the quarter obviously. There's been a number of sort of volatile events in the space, on drug pricing, et cetera and we've obviously seen a bit of a collapse in some biotech prices. And so help us understand, I mean, it seems like SCIEX had a pretty good quarter and obviously the biotech side of Pall did as well. So help us think through the market volatility and whether or not that sort of worries you at all relative to the demand side of things. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Hi, Ross. We continue to be bullish on those markets. Yes, obviously there's been some volatility, certainly, in those markets, certainly in terms of the way they've been trading. And of course, our exposure, as you mentioned, is largely in the Pall business as well as across our Life Science platform, and more specifically around AB SCIEX. Specifically, our pharma exposure in Life Sciences is about probably 20% or 25% of that business specifically goes into that market. In the case of Pall, specifically it's about a third of their business is bio pharma-related. The growth rates there continued to be very strong throughout the course of the quarter. These are critical applications that to some extent are a bit insulated from the core volume side of what's going on inside of those facilities. In other words, whether you're making a large volume or a small volume, you're still going to be running that equipment and consuming some of our products. On the research side, the research investments, while they're shifting around a bit, continue to be relatively good. So I think in general, we're staying the course there and we think there's still great opportunities ahead.

And maybe just dovetailing off of Steve's question from earlier, it's been an environment that's been difficult for you from an M&A standpoint last few years, but we're finally getting to a period where there's a little more volatility, if valuation has come down in some subsectors, seems like the timing may be fortuitous given when you can complete the spin next year. Maybe remind us around your activity level on tuck-ins during the last kind of market dislocation in 2008-2009 and talk a little about the trade-off of kind of completing the spin in due course versus the desire to sort of continue to add on at least more of the tuck-ins versus maybe anything larger. Daniel L. Comas - Chief Financial Officer & Executive Vice President: Well, I hope we're not looking at 2008-2009.

No, obviously. Daniel L. Comas - Chief Financial Officer & Executive Vice President: During – obviously, that was a good period for us in that 2008-2009 period, we acquired almost – brought in almost 20 companies and not surprisingly, those are among our best returns for the company. I don't think we're heading into that, but the environment's getting tougher. We talked earlier about the IPO market being tough here and I think that bodes well, I think that bodes quite well for NewCo, given the choppiness in the industrial sector, given a little less competition from private equity. We've talked about roughly 2 billion of capacity the rest of this year and into next year. But as we get towards the end of – middle, end of next year, that number's going to jump back up a lot. So we're not – Tom suggested we're not shutting down, we're still working hard looking at activities, looking at possibilities both for Danaher and at NewCo.

Great. Thanks. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Thanks, Ross.

We'll go next to Deane Dray with RBC Capital Markets.

Thank you. Good morning, everyone. Had a couple quick comments or questions on the Water Quality side of the business and maybe you can give a frame for us how you're seeing municipal budgets today. Everything I'm reading, it looks as though muni budgets are actually one of the growth markets at least for North America. So how are muni budgets favoring projects for Trojan, for example? And then a second question on Pall, it's interesting that Pall, as you expect, you see the logo in the Life Sciences side, but it could have easily also showed up today in the Environmental logos, and be interested in how you're positioning Pall in go-to-market in Water Quality. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Thanks, Deane. So specific to municipal budgets and the overall municipal water market as a growth market, it's interesting, right, because we could talk about it as a growth market today, everything's relative. We haven't historically thought of the North American muni market as a growth market on a relative basis, but today, it really probably is. To your point, it's growing better than a lot of other markets that are much more challenged. And I think the way I would describe it, Deane, is that in contrast to probably the last three years or four years where those budgets were flat or down, largely recovering from a pretty challenging housing market in so many areas around the U.S, today, we'd say those budgets are probably growing modestly. A lot of muni budgets are probably growing maybe in the 2% or 3% range, and that's 2% or 3% better or more than what they were growing probably in the last three years or four years. So there are good opportunities there. They continue to contribute well to – certainly to Hach Lange as well as to Trojan. Specific to your question about Trojan, we have seen the bidding activity up this year and we've seen overall revenue converting that business – that bidding activity into revenue up this year as well. So probably one of the better markets where we participate today and clearly with leading positions, we believe we're gaining share in Water Quality. In the Pall business, Pall does have a position in municipal water. It is – it's not one of their larger businesses, but we believe there are opportunities there. And we have a team at Trojan as well as at Pall looking together at where there might be cooperative opportunities. It could be on certain projects or certain opportunities relative to technology where bringing filtration as well as ultraviolet treatment together may be a great opportunity for a customer. So it's early days there. We're really just getting into the 100-day strategic plans across those vertical markets, but it is a good position to start with and we'll see what we can do.

Thanks, and just a quick question. What was NewCo's core revenues in the quarter? Daniel L. Comas - Chief Financial Officer & Executive Vice President: Deane, they were a little bit under the 3%. So they were 2%, 2.5% led by both Gilbarco and Matco.

Great, thank you. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Thanks, Deane.

The next question is from Andrew Obin with Bank of America Merrill Lynch.

Hi, guys, good morning. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Morning, Andrew.

Just a question on free cash conversion. what are the buckets for improvement in the fourth quarter? And also if you could give us an initial sense given that we've closed Pall, how much working capital contribution can we get in 2016? Daniel L. Comas - Chief Financial Officer & Executive Vice President: Andrew, I don't know if we're looking at a very different dynamic in Q4 of this year versus last year. We did see a spike in payables at the end of the third quarter. That sometimes happens when we have a quarter end that's in the following month. So we actually closed a quarter in October as opposed to September 29, September 30. That should normalize back in the quarter. We tend to have pretty good working capital performance as we get towards the end of the year. That should be another contributor. So I don't think – I don't see a very different frame than what we had last year. We're still working through the Pall numbers. We think there's some meaningful cash flow opportunities there, not only in the working capital side but also on the CapEx – managing CapEx a little differently there, but we'll talk about both of those more in time.

And just a follow-up on separation timing. Did you change your disclosure language on the timing? Because the QNO (45:28) says in 2016, or is it the same language as before? Just to confirm, sorry. Daniel L. Comas - Chief Financial Officer & Executive Vice President: I don't remember. What I'm continuing to say is our expectation is 2016, we still believe it will be the end of the year but that could change, and if there is a change, it would be to the positive and we'll know more here in a couple months.

Thank you very much. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Thanks, Andrew.

And the next question's from Isaac Ro with Goldman Sachs. Isaac Ro - Goldman Sachs & Co.: Good morning, guys, thank you. Just a question on Beckman to start. If I just take a quick look at peers here like Abbott and Roche, some of them do seem to have core growth rates closer to the high single digit range. And so I'm curious, sort of, if I look back at my notes, you guys had an analyst meeting earlier this year and gave a lot of disclosure on the things you've done to turn around the franchise, but curious kind of what you need to do from here to kind of pace ahead of your comps there. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Isaac, thanks. We're continuing to make progress at Beckman. We track our customer retention and we track our win rates very closely on a month-to-month basis. We're confident as we look at the combination of retention and win rates that we're adding to our growth position as we look out into 2016 and 2017. Obviously, some of what we see in retention and adding menu to retained accounts as well as new customer accounts don't necessarily manifest themselves in the quarter in which you've won them. In fact, oftentimes, it may take six months to 12 months for those to materialize. So I think we're confident we're continuing to make progress, strengthening the portfolio through new products, continuing to see good growth in the high-growth markets. But it's a journey, we still have work to do. We're not yet at the growth rates that we would like to see relative to the peer group. You highlight them well. And – but we are making progress and we're confident in the opportunities. Isaac Ro - Goldman Sachs & Co.: Got it. And then maybe just a question on NewCo. Where are you in the process of sort of leadership selection and when might we know a little bit more about kind of how you're going to staff up the NewCo? Thank you. Daniel L. Comas - Chief Financial Officer & Executive Vice President: Well, we've publicly named Jim, obviously as the leader, but his entire L1 team with one exception has been named. They're all internal folks. And a fair number of people at the L2 level, the level below that, have also been named. So we're off to a good start on that front. Isaac Ro - Goldman Sachs & Co.: Got it. Thanks so much, guys. Thomas Patrick Joyce - President, Chief Executive Officer & Director: Thanks, Isaac.

This concludes our question-and-answer session. Mr. Gugino, I'd like to turn the conference back to you for any additional or closing remarks.

Thanks, Eric. Thanks, everyone for joining us. We're around all day for questions.