Good morning and welcome to the IDEXX Laboratories Third Quarter 2017 Earnings Conference Call. As a reminder, today's conference is being recorded. Participating in the call this morning are Jon Ayers, Chief Executive Officer; Brian McKeon, Chief Financial Officer; and Kerry Bennett, Vice President, Investor Relations. IDEXX would like to preface the discussion today with a caution regarding forward-looking statements. Listeners are reminded that statements that members of IDEXX management may make on this call regarding IDEXX's future expectations, plans and prospects constitute forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as expects, may, anticipates, intends, would, will, plans, believes, estimates, should, and similar words and expressions. Such statements include, but are not limited to, statements regarding management's expectations for financial results for future periods. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements, and the risks and uncertainties of such statements. All forward-looking statements are made as of today and except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Also during this call we will be discussing certain financial measures not prepared in accordance with Generally Accepted Accounting Principles, or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in our earnings release, which can be found on our website, idexx.com. In reviewing our third quarter 2017 results, please note all references to growth and organic growth refer to growth compared to the equivalent period in 2016, unless otherwise noted. In order to allow broad participation in the Q&A, we ask that each participant limit his or her questions to one, with one follow-up if necessary. We appreciate you may have additional questions, so please feel free to get back into the queue and if time permits, we'll take your additional questions. I would now like to turn the call over to Brian McKeon.

Good morning and thanks, everyone for joining us in our call. Today I'll take you through our Q3 results and outlook for the full year. I'll also provide an overview of our preliminary guidance for 2018, Jon will follow with his comments. In terms of our results for the third quarter, we delivered revenue of $492 million or growth of 10% on a reported basis supported by 1% year-on-year benefit from foreign exchange rate changes. Organic recurring CAG Diagnostics revenue growth was strong in the quarter at 11% despite over 2% in combined growth headwinds from fewer equivalent days in the quarter, year-on-year changes in distributor inventory levels in international markets and natural disaster related impacts. Overall organic growth for the quarter was 9%, below our expectations for 9.5% to 10.5% gains. The largest element of the shortfall related to the combined growth impacts noted, which lowered overall organic growth by about 2%. This was about 1% above the growth headwind we had previously projected related to fewer equivalent days heading into the quarter. We also saw greater than expected end market pressure on our LPD business, as well as some changes in our CAG instrument program mix which resulted in relatively higher levels of deferred instrument revenues in the quarter. We'll discuss these factors in more detail as we review our quarterly performance and our revised 2017 organic growth outlook. Despite these impacts we continue to leverage high recurring CAG revenue gains to drive strong profit flow-through keeping us on track towards our full-year EPS growth goals. Operating profits in Q3 grew 14% as reported and 13% on a constant currency basis, supported by continued strong gross margin gains. EPS for the quarter was $0.79, an increase of 27% on a reported and constant currency basis. These results included…

Okay. Thank you, Brian, for that detailed and fully transparent review of our Q3 results and our guidance. And as I step back, I'm very, very pleased with our continued progress in expanding our business in the third quarter, reflected in strong CAG recurring growth and expansion of our premium instrument platforms, while delivering strong margin gains, keeping us on track towards our long-term goal of 15% to 20% comparable constant currency EPS growth. Adjusted for the factors that Brian noted, which impacted organic CAG Diagnostics recurring revenue growth by about 2%, our CAG Diagnostics recurring revenue grew 13% in the U.S. and 14% international, reflecting the robust durable momentum in expanding our annuity base, driving strong profit flow-through and positioning us for continued strong financial performance in 2018. A key initiative we are advancing to sustain our enduring CAG recurring revenue growth is our enhanced commercial capability in the U.S., an expansion which we completed at the beginning of Q3. As we enter the fourth quarter, we have moved beyond the expected transition impacts to sales productivity, as the new IDEXX representatives begin to build experience and develop their relationships with customers. Even during this transition quarter in the U.S. we saw growth in the EVI of our instrument placements, adjusting for last year's delivered SediVue against preexisting backlog. The Q4 trends, though early, suggest patterns in the past still apply with a jump in productivity as the new reps build on their customer relationships and move to commission-based compensation for instrument placements. Instrument unit placements were strong in Q3, supported by 19% global growth in placements of competitive and greenfield Catalyst chemistry analyzers. In international, we had a record quarter of Catalyst placements in Q3 and also a record quarter of total premium instrument placements in the quarter.…

Thank you. Our first question will come from the line of Ryan Daniels with William Blair. Your line is open. Ryan S. Daniels - William Blair & Co. LLC: Yeah. Good morning, guys. Thanks for all the color commentary thus far. I was hoping to dive a little bit more into the delta and your assumptions behind revenue recognition for the instruments. And my curiosity is that driven by a change in the instrument sales mix that you're seeing towards different products, is it more bundling or is it kind of a novel program, or end market response to the competition, just any more color what's driving that delta?

Yeah, thanks. It is basically a change in the mix of previously established programs. Programs can have different kinds of revenue recognition. We are focused on, particularly the metric, economic value index, and we see those holding steady. And I think we've given the results there, the 19% growth in Catalyst placements at new competitive accounts, the EVI that's up in North America despite the Q3 transitions. So, I think the fundamentals of the instrument placement are strong and the revenues are a reflection of program mix. Brian, you have further comment?

Yeah. As Jon said, it's existing programs and more an evolution that we've seen relatively more growth than we were projecting earlier. And I tried to note that we also had some growth in international markets, we have rental programs in emerging markets which are doing quite well, and that also results in very good placements, great EVI, but you don't recognize the revenue upfront. So...

Yeah. And in Q3 we had one country that started one of those programs that we've had in other markets to exceptional success. But it's a program that doesn't have upfront instrument revenue.

So the placements were good, but the mix and how that flows through instrument revenue was somewhat different than we anticipated, and we tried to flow that through for the full year and make an adjustment there. Ryan S. Daniels - William Blair & Co. LLC: Okay. That makes sense. And then, I don't recall you talking about international distributor changes in the past kind of impacting performance. So is that just normal fluctuation in distributor inventory, are you seeing different ways that they operationalize their inventory trying to shrink lead times, or seeing less end market demand, or anything else we should read into that, or is that just a normal?

It really is, we – when we went direct in the U.S., we actually stopped normalizing because we had relatively immaterial impacts from this, it's primarily Japan actually. And it just so happened that the year-over-year changes because it's not just this year, it's also what happened last year, was large enough that it kind of had an impact on the growth rate we wanted to highlight. So what we're really trying to note is that the underlying growth when you normalize for hurricanes and these changes in days if you look at the growth rate in the – as Jon mentioned in international, it's 14%, in the U.S....

In the CAG.

...13%, we feel very good about the underlying CAG recurring Diagnostics recurring growth, and wanted to make sure we noted that, so people understand those trends. Ryan S. Daniels - William Blair & Co. LLC: Okay. Appreciate it. Thanks, guys.

Thank you.

Thank you. Our next question comes from the line of Erin Wright with Credit Suisse. Your line is open.

Great. Thanks. I think your underlying operating margin improvement is slightly higher than what you were alluding to at Investor Day. How – I guess for 2018, how should we think about sort of that difference, how much of it is attributable to FX and broadly can you speak to maybe the drivers of that metric into 2018? Thanks.

It primarily flows from the strong momentum we're having, growing the CAG recurring diagnostic revenues. So we're, as noted reinforced 12.5% to 13% organic growth rate this year and we're looking to sustain that into next year and we have some drivers like SDMA on a slide and Fecal Antigen that will help with that and growth in that part of our revenue stream has really nice gross margins...

And we're getting 2% to 3% pricing, which is a demonstration of the unique value we're bringing, by the way, it's at constant currency, so none of that is FX related, the 75 basis point to 125 basis point expansion in operating margin would be in a constant currency.

Okay. Great. And how should we think about the quarterly progression of SediVue placements, do you anticipate placing a, I guess increasing amount into 2018? And can we get an update on the consumables utilization there, is it tracking better than kind of maybe your initial expectations there? Thanks.

Yeah, I think, we had a very good quarter in SediVues. I think we gave guidance, we did 505. We gave guidance to over 2,000 for the year, I think we're well on track for that. We would – SediVue is going exceptionally well. We're going to launch the next version of the algorithmic software called Neural Network 3.0 in January, Erin. 2.0 really was an exceptional success that we launched in April of this year. But we're going to get the benefit of over 50 million images now. So, and one interesting thing about urine, it's really important to understand this, is that, if you don't take a picture of the urine when it's fresh, I'm talking about within the first half hour of coming out of the bladder, it changes. I mean, bacteria grows or disappears, crystals dissolve, I mean, you've got to – the algorithm has to be run on fresh urine and of course one of the benefits of SmartService is we have tens of millions of images. So Neural Network 3.0 is just going to take it to a whole new level. And of course every single SediVue customer will receive that through a SmartService update in January. So, I think we have a good momentum. On the utilization. We're seeing very, very small increases, but we're still really in the 3,000 to 4,500 and maybe a little bit of that, very small modest increase in that. And of course, our goal through things like the free UA day that we can do with the pay per run is to get customers to grow utilizations. It's kind of a shocker that urine is used so little in diagnostics when it provides so much value, but I think that's going to be a long-term trend.

Excellent. Thank you.

Thank you. Our next question comes from the line of Derik de Bruin with Bank of America Merrill Lynch. Your line is open.

Hi, good morning.

Good morning.

So just a question, you're on the – how much in year 2018 organic revenue growth guidance, is that benefiting from deferred revenues that were pushed out from 2017 to 2018, just trying to get a sense? And can you just give us an idea on what the recognition timelines you're looking at on those, are you're talking about recognition over one-year, two-year? Just a little bit more color on sort of, are you getting pushes from 2017 to 2018 and just sort of the numbers involved?

So that is all captured in the – we're transitioning to the new revenue accounting standard, Derik.

In 2018.

In 2018 and that is all captured in what we reflected as a net immaterial change overall. To give you a sense of this, the things that we talked about, we talked about bundle programs deferred revenue, associated with upfront points and payments. Under the new accounting standard that actually is primarily recognized upfront. So, under the modified retroactive restatement though we're going to have to treat the past as if we were using the new statement in the past. So it – we're really going – it gets complicated because we have three different programs, major programs that all have kind of differing changes to them. The net of what comes out of the wash of all that is we don't necessarily see a net material change one way or the other.

And let me also answer your question, typically you either recognize the revenue upfront in one type of program or you basically recognize instrument revenue over a five-year to six-year period. There's no in between. It's not like you recognize it in the second year. It's either amortized or it's upfront.

So, that's captured in our 9% to 11% and what I did note is, over time in the future, the standard will lead to probably relatively more upfront revenue recognition, which is given the mix of programs that we have.

Great. Thanks, that's really helpful. And I guess – I may have missed this, but can you – did you say anything about how you see the Livestock, Poultry and Dairy business trending in 2018? don't think you can gave any specific segment comments. If I missed them, my apologies.

I think – no we didn't and we haven't given segment guidance in 2018. But we believe that the factors in LPD are transitory in the second half of 2017. I think that's still a solid – it remains a very solid business with a favorable return on invested capital. And so, we would not expect that to be a longer term factor.

And if I can sneak in one final one, the share count – the share buyback is a little bit lower for next year, it's a little bit – some color on that?

We're trending right now at about $50 million a quarter and we are – our outlook for next year anticipates continuing in that range. We think that's – we feel good about the value of the company and I think we – it supports continued deployment towards repurchases. We are at a somewhat moderated level from where we've been historically and that's reflected in that outlook.

What is not reflected is any change in our free cash flow. As Brian said, our free cash flow to net income for the guidance for 2017 is 95%.

Great. Thanks very much.

Thank you. Our next question will come from the line of Jon Block with Stifel. Your line is open. Jonathan David Block - Stifel, Nicolaus & Co., Inc.: Great. Thanks, guys. Good morning. First one, Brian, for you. Why the increase in the op margin expansion guidance relative to the Analyst Day two months ago? Maybe if you can give some color there, and just even maybe more importantly, considering the spend was supposed to be higher in the near-term, is the new long-term op margin expansion guidance, sort of that 75 bps to 125 bps per annum, versus that prior 50 bps to 100 bps plus? And I've got a follow up.

As, Jon, I mentioned earlier I think the growth in CAG recurring Diagnostics revenues and the continued solid price realization we're getting there is supporting very good gross margin improvement and we're building that into the outlook next year. We're not changing our longer term view on the margin potential of business, it's just the preliminary view for next year.

Right. And I would also say, one of the things that we do between August and this point in time in the late fall, is we build together, we build our plans for – operating plans for 2018, as we built our plans for 2018, we really saw solid margin opportunity that gave us the confidence for next year of 75 basis points to 125 basis points of margin expansion. And it's going to be primarily gross margin. A lot of good things happening in the gross margin, 2% to 3% net prices is one of them, but favorables on labs and instrument consumables, but so, I mean, as we as we kind of rolled everything together, that gave us the confidence to tweak it up by 25 basis points for 2018. Jonathan David Block - Stifel, Nicolaus & Co., Inc.: Yeah. Understood. I guess what I don't understand is, unless some of that spend was deferred, you would think that new higher rate would carry forward in subsequent years. Again, Brian, based on your prior commentary that the most heightened level of expense was targeted for 2018. But I can follow-up with you offline there?

Well, we're obviously going to be growing off of higher bases as we move forward, Jon. So, I think we'll continue to look at that, but we're comfortable with the longer-term guidance of 50 bps to 100 bps. Jonathan David Block - Stifel, Nicolaus & Co., Inc.: Okay.

I was going to say, Jon, because you asked for it, but no, it was really the fundamentals of...

Exactly. Jonathan David Block - Stifel, Nicolaus & Co., Inc.: I appreciate that, Jon. And then, just to shift gears, maybe Jon for you. Any change on the color, the exact timing of SDMA on the slide, in other words, next few months to me sounds slightly different than year end, is that a true assumption? And then the international lab was up high single digits. That's a good number, but it is down from the low double-digit range, even mid-teens that you guys had gotten too. I know there was a day adjustment, but that wouldn't account for 300 bps or 400 bps or even 500 bps, so maybe you can talk to what you're seeing in the international reference lab? Thanks, guys.

Yeah. Thank you. First of all, we're very excited. We're in the short strokes on the SDMA on the slide launch. We now have it out with Catalyst customers that are running the slide in practice and producing results and providing data in the care of patients. That's the last step in our development timeline, and just as we get to this level, we always want to make sure that we launch it right. So, we're very comfortable with the next few months timeframe for that. I think what I would say about the reference lab business is, we're – I think we're pleased with the growth international. I think we're exceptionally pleased with the success of the international had with instrument placements, which are very profitable business model for us and in turn we're very pleased with the continued growth in the U.S. and Canadian reference lab business, which is also demonstrating nice profit flow-through, allowing us to support our profit guidance for 2018 and 2019. So, I think these are, what we're seeing is growth in the profitable areas of the recurring revenue around the world, that's a little differential. But I mean, I don't think the reference to the growth in international reference lab, that Brian mentioned, is anything to sneeze at; obviously these are very good numbers. But I think it was a particularly good quarter for instrument placements internationally.

Thank you. Our next question will come from the line of Nicholas Jansen with Raymond James. Your line is open. Nicholas M. Jansen - Raymond James & Associates, Inc.: Hey, guys. Thanks for all the color. Just two for me. First, just in terms of any sort of flagging associated with kind of the cadence of 2018 earnings growth, certainly some of the new products kind of build through the year, so just wanted to – I know it's early, but any sort of thoughts on how we should be thinking about the ramp associated with A, the new products and B, the timing of kind of the margin leverage?

I think it's early for us to be projecting that. I think one thing I would note is obviously we've had some increase in our OpEx base as we staff up in the U.S. and advance some of the U.S. commercial organization and advance some of the IT initiatives, so that'll carry over into the early part of next year in terms of year-on-year growth. But I think we'll wait until we kind of complete our detailed budget processes before we get into that.

Yeah, I think these new products, like SDMA on a slide, it's going to be helpful on the margin, I actually think we're getting the benefit of SDMA on a slide now, because customers are anticipating it. So it's benefiting things like the retention rates, that I mentioned that are continuing to improve modestly, and the placement rate in anticipation. So the multiplier effect on the SDMA on a slide is pretty significant and is embedded, of course, in our expectations for overall recurring revenue growth. And then there's also a multiplier effect on SNAP Fecal, which we are very comfortable with a mid-2018 launch. Nicholas M. Jansen - Raymond James & Associates, Inc.: That's helpful color. And then just thinking about the operating expense budget forecasted for 2018, over the last couple of years, you've made some pretty targeted investments in the U.S. commercial infrastructure; and just wanted to get a sense of how we should be thinking about the sales force potentially being further expanded in light of these new innovations that are coming to the market? Thanks.

Thank you. I think that's a great question. We're very pleased with the expansion that we put in place and really had the bulk of the costs in Q3 already embedded in the P&L. And as I mentioned, now they're go through that one quarter of transition that's associated with territory changes and rep changes, which positions us very well, not only for Q4, for 2018. We're at 435 – that's field-based sales professionals, sales and support professionals. I think we're really in a great position – that is the largest and deepest sales organization in the companion animal market across all of companies, including pharma. And I think we're in a good place for that. I think 2018 will be an opportunity to leverage our investments both, of course, not only in people but also IT that supports that.

Going back to our Investor Day guidance though, for 2018, the margin improvement that we're signaling will be more gross margin driven. So we are going to have some carryover impacts from the investments. Nicholas M. Jansen - Raymond James & Associates, Inc.: That's great. If I can just squeeze one more in on the tax rate for 2018. It does seem, even if you strip out some of the noise this year, maybe a little bit higher than the Street was modeling. Remind us, maybe is it just mix factors in terms of the U.S. growing so strongly? But just any thoughts on kind of what the longer-term tax rate we should be thinking about in 2018 and beyond? Thanks.

It actually is the same underlying tax rate of 32% before our estimates for the share-based compensation activity. So I'm not sure how the external views were factoring that in, but that's effectively what it is, it's the 32% before the benefit of the $13 million to $16 million that we signaled. Nicholas M. Jansen - Raymond James & Associates, Inc.: Thanks for all the color, as always.

Thanks, Nick.

Thank you. Our next question comes from the line of Mark Massaro with Canaccord Genuity. Your line is open.

Hey, guys. Thanks for the questions. And I appreciate a lot of commentary on the call. I guess I wanted to just follow-up on the instrument dynamic in the quarter. Obviously, you called out changes in program mix. I think some of us are still trying to understand the economic value index, my understanding is that one of the areas of that is to promote competitive Catalyst placements. That number was pretty good in the quarter. So I guess I'm really trying to get to the bottom of what constituted the expanded bundling in the quarter that really contributed to the bulk of the change in program mix.

Yeah. Just thank you for that observation, I'll let Brian answer on the accounting, which is complex, and of course will even change next year. But we're very pleased with the 19% growth in competitive and greenfield Catalyst placements that we had globally and the 14% overall growth in Catalyst placements.

Yeah, we saw relatively more cross CAG placements, which I think reflect actually the focus of the sales organization. It was relatively more than we had projected, but it's bundling of SediVues and lab deals with competitive Catalyst placements relative of single placements that may be associated with something like a rebate program. So, it was a relative change in mix that at the end of the day is very positive for the long-term growth of the company and the company's revenues and the recurring revenue base, but does have an effect just in terms of the current accounting that we don't recognize that upfront, and so that was...

But over the life of the contract, five years, six years.

Got it. And I might have missed it. But, do you envision the possibility of getting back to double-digit growth in instruments for 2018?

It's early for us to get in...

Are you talking about in revenues?

For CAG instrument revenue? Yeah.

It's too early for us to be getting down into the modality views. But, I think what we've signaled in the past that it's more about sustaining high levels of instrument placements and that the bigger driver of our growth is going to be growth in the recurring.

Yeah. The primary purpose of instrument placements is to drive the very profitable recurring revenue up. That's not only instrument consumables, but of course can apply also to reference labs and rapid assay, all the components of the CAG Diagnostic recurring revenue. So instruments is a means towards an end, and that end is profitable recurring revenue, which, as you know, is close to three-quarters of the total company's revenue.

Excellent. If I can sneak this one in. Jon, you talked about new opportunities in artificial intelligence and Big Data opportunities. Can you speak if that is something that would tie into some of the capabilities you've already built at IDEXX or is this something that you're working on that would provide a completely new, maybe a new architecture or ecosystem?

Yeah, no. I think one of the benefits of the ecosystem – the answer is the former; it will enhance and leverage the ecosystem that we already have. It allows us to do exceptional work in retrospective analysis, which advances medical insight, it allows our reps to be more productive. There is a lot of multiplier effect and it's been a focus of our R&D and other folks. And I think you saw some of that at the Analyst Day, when we talked about the number of clinical visits that has a chemistry panel is only 13%, which is pretty low. And by the way, it's higher for our customers than it is for the market as a whole, but still the opportunity to grow the standard of care by helping customers appreciate where they stand versus their peers, we think could be a long-term growth driver. That's just one of the many examples that the AI and Big Data. Another example is just the Neural Network 3.0 that we're going to launch in January I mentioned earlier, Mark, on SediVue, we continue to see advancements inside of our products.

Great. Thank you.

Thank you. Our next question comes from the line David Westenberg with C.L. King. Your line is open. David Westenberg - C.L. King & Associates, Inc.: Hey, guys. Thanks so much. So not to belabor the instrument number, I know that's been too much maybe of a focus of this call, but I have noticed that instrument revenues have – they've missed me for three quarters and year-over-year has been challenging for the last, let's say two quarters. So has this mix been actually something that you've seen for a couple quarters and maybe are just calling out now or is this maybe a mix that you've seen a little bit more in focus this particular quarter and something that you're calling out now because it's something that we should definitely be aware of on a go forward basis?

I'd say relative to our goals, we've been performing very well in terms of instrument placement. So just to reinforce, the premium analyzer growth was 6% in the quarter, it was up 13% when you adjust for the prior year backlog orders and we've grown our Catalyst base globally 21% year-on-year. So, we feel very good how we're doing on instrument placements. In terms of the mix and how that flows through our accounting. We've seen relatively more bundle placements that result in deferred instrument revenues and we're adjusting that in this year's number, and in total that's a $5 million revenue number for this year, which under new accounting going forward will be less of an impact.

And just a reminder on that question, because, David, I know, there's lot of moving parts on revenue recognition. We introduced a very successful new program in Japan actually, and it really helped accelerate very attractive economic value placements, but it moved from upfront revenue recognition of the historical way we placed programs, to in this 2017 revenue accounting world, to a deferred recognition. So, that was one of the factors, really something where we – that was new (01:00:25).

Just don't want to lose sight of that supported the over 1,000 placements of international Catalysts in the quarter. So we're doing great on placing instruments and the mix is a little different, and we're trying to reflect that in the estimates.

Yeah. That was a 35% growth in Catalyst placements internationally in Q3. Pretty attractive. David Westenberg - C.L. King & Associates, Inc.: Yeah, definitely. You guys have definitely beat me on the instrument placement numbers by quite a lot. So actually can you talk about maybe on the utilization, on the Catalyst as we move internationally, just for sake of our models, how should we look at Catalyst utilization on the per as you become, as Catalyst moves more and more as a percent of your installed base outside the U.S.?

Yeah. So, I'd say that's an excellent question. As we've talked about in the past, the typical utilization of a Catalyst placement outside the U.S. is going to be less than the utilization of a Catalyst placement inside the U.S. On the other hand, while we make a big deal about the new and competitive, when we upgrade VetTests outside the U.S., we usually see a larger bump than we would have historically seen in the U.S. We're not upgrading too many VetTests in the U.S. anymore because there aren't many left. But there are VetTest upgrade opportunities, most of the Catalyst placements that are not new competitive internationally are VetTest upgrades and they support the very strong recurring revenue growth that we've seen.

We've seen nice uplift on the international average utilization as we're upgrading. So, it's been definitely supporting our outlook.

Upgrade from VetTest to Catalyst. So that's a favorable dynamic internationally. David Westenberg - C.L. King & Associates, Inc.: That's a couple of questions. And I'll take a couple more offline, so I'm just going to do one more for sake of time. So, on the reference lab, your primary competitor has now been fully incorporated into a larger private company. Can you talk about changes that you've seen competitively, not necessarily in terms of competitive wins and losses, but just in terms of shift in the way that they're marketing or maybe going against you, or any sort of color on competitive dynamics as this integration takes place or has taken place?

The thing I would say there, it really – there remains a very competitive market. It has been a competitive market, I expect it will be a competitive market, but I think one of the interesting things that we've seen in the U.S. market for IDEXX is, we're getting double-digit volume growth in same customers' volume. That is volume growth, that's being driven by things like the Fecal antigen test and by SDMA and that is, along with price and net new customer wins, but double-digit, over 10% growth in same-store volume is helping us with very favorable reference lab growth in the U.S. market. So I don't see really any change in the competitive environment. David Westenberg - C.L. King & Associates, Inc.: Thanks for the questions. I'll take the rest offline.

Thank you. Our final question will come from the line of Ben Haynor with Aegis Capital. Your line is open.

Good morning, gentlemen. Thanks for taking the questions. First off for me on the bundled rental programs that you've seen success with in the emerging markets and now it sounds like starting to see some success in Japan. Is there a plan to expand those into more of the developed world or how do you see those programs evolving over time?

Yeah. I don't – I think we always look at what is the most favorable scenario where we can place instruments with very profitable economic value and sometimes it's an upfront placement where we recognize revenue, and sometimes it's another placement. And what's going to confuse everything is in 2018, the revenue standards change, as Brian took you through in the prepared comments. But we are always keeping an eye on the economics of these placements. And we believe that creates long-term shareholder value and we really aren't as concerned about the revenue recognition, that's accounting, it's important that we do that correctly, but what creates value is the net present value of the placement over a five year to seven year period of time

Okay. That's helpful. That makes sense. And then lastly for me, is the shift amongst the deal types that you've seen in your view more of a function of increased promotion of certain types of deals by your sales force or is it a function of shifts in the preferences of veterinary practices?

Yeah. I think what happens is sometimes practices respond to one type of – they're not particularly – I mean I don't think they took managerial accounting in vet school. And so, sometimes one type of program just appeals them more than another, it works for them, but it also works for us. The economic value of these programs isn't very different by one type or another and isn't different by those that that we recognize revenue on upfront and those that we recognize revenue for the instrument placement over time. It's just not different, but sometimes we'll see trends on how customers respond. And our job is to place instruments in customers in an economically attractive fashion.

I do think the growth in cross CAG deals aligns with the connectivity that we are bringing to vet practices and the value that they see in having a full set of solutions from IDEXX. So, that's very much (01:06:27).

That's an excellent point, Brian. We're not just talking about placements of instruments, of course we're growing the reference lab business. SDMA really merges the two. We had SDMA in the reference labs, now customers say, well I also run my chemistry in-house, I want SDMA on the in-house. So, really is – we call it one business the CAG diagnostics with different modalities, modes of delivering that value. And we're continuing to see growth in the percentage of customers who use both in-house and reference lab as – with the base being those who use one or the other or both, we're continuing to see growth in that cross-selling that we've talked about in past investor meetings. And yet we've still got – we're still below 50%. So we've got a lot of runway to go there.

Okay. That's all I had. Thank you very much, gentlemen.

Okay. With that, we will conclude the call. We appreciate everybody's attention and we look forward to reporting our year-end results in January.

Thank you.

With that, I'll conclude the call and huge thanks to all of our employees who have worked very hard to deliver these results and to deliver exceptional value for our customers. It's interesting, our customers actually grow faster than the market as a whole. And I think that's the result of the great work on innovation and commercial efforts that we have around the world. So with that we'll conclude the call. Thank you.

Thank you, ladies and gentlemen, that does conclude your conference call for today. Thank you for your participation and for using AT&T Executive TeleConference Service. You may now disconnect.