Greetings and welcome to the Leidos First Quarter 2016 Earnings Results. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kelly P. Hernandez, Vice President of Investor Relations. Thank you, Ms. Hernandez. You may now begin.

Thank you, Rob, and good morning, everyone. I'd like to welcome you to our first quarter 2016 earnings conference call. Joining me today are Roger Krone, our Chairman and CEO; and Jim Reagan, our Chief Financial Officer; and other members of the Leidos management team. Today, we will discuss our results for the quarter ending April 1, 2016. Roger Krone will lead off the call with comments on the market environment and our company strategies. Jim will follow with a discussion of our financial performance and our expectations for the future. After these remarks from Roger and Jim, we'll open the call for your questions. Today's discussion contains forward-looking statements based on the environment as we currently see it and as such does include risks and uncertainties. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially. Finally, during the call, we will discuss GAAP and non-GAAP financial measures. A reconciliation between the two is included in the press release that we issued this morning and is also available in the presentation slides provided on the Investor Relations section of our website at ir.leidos.com. With that, I'll turn the call over to Roger Krone. Roger A. Krone - Chairman & Chief Executive Officer: Thank you, Kelly, and thank you all for joining us this morning for our first quarter 2016 earnings conference call. During the first quarter of 2016, we continued to focus on optimizing the Leidos business platform, the people, the capabilities, and the cost structure, in preparations for the integration of Lockheed Martin's IS&GS business after the transaction is closed. We believe that this focus and the application of our platform to the combined business will enable us to deliver competitively priced, innovative solutions to a…

Thank you. At this time, we'll be conducting a question-and-answer session. Thank you. Our first question is from the line of Edward Caso with Wells Fargo. Please proceed with your questions.

Hi. Good morning and congratulations. Could you get us updated on the MOD contract and DHMSM as well please? Thank you. Roger A. Krone - Chairman & Chief Executive Officer: Yeah. Let me start out and then I'll let Jim follow. I think the MOD contract that is though – we call the LCST contract in the UK and then I'll come back to the DHMSM contract. So, over in UK, actually things are proceeding well. We're about two-thirds of the way building what we call the new defense fulfillment center, which is the warehouse. We're conducting operations essentially in the old system, improving the operations as they stand. And then when we get the warehouse completed later this year, we'll start to operate out of the new warehouse. We have software development that seems to be on track. And, as Jim mentioned, we've actually seen some favorable financial returns from that program as well. So, we're very, very pleased. In fact, I'm actually going over in a couple weeks. And that business is now under Mary Craft. I think Mary Craft is on an airplane over to meet with that customer. The Defense Health Program, by way, Ed, I think the customer is going to refer to it with a different name going forward, call it, Military Health Genesis Program under the Department of Health Administration. So we'll all have to relearn a new acronym. It's doing well. Our first real major milestone is we have to be up and running in the Northwest at two care facilities, one called Oak Harbor and one at Madigan, by the end of the year. And we're on track to do that. Cerner and Accenture have been doing a great job in supporting the program. And our team has been in place and working together as a team. And the customer remains very, very committed and focused. And it's really been an absolute pleasure frankly to work with the combined government contractor team. They've been a lot of programs and this one is really, really going well. And, of course, the future care of all the active soldiers, sailors, airmens and marines are depending on that program. So, we're really committed to it. Anything on numbers, Jim, you want to touch on? James C. Reagan - Chief Financial Officer & Executive Vice President: Just that we've previously said that, particularly focusing on the Defense Health program, it is accretive to the companies and the sectors margins. To date, the programs cost profile is along the lines of what we expected. It's still on plan and we're pleased with both the operating performance and the cash performance of that program.

Can you remind us? Is it just the one task order so far? Have you gotten a second one? Roger A. Krone - Chairman & Chief Executive Officer: Okay. So that's on the Defense. I think that's on the Defense Health Program. We're still working under task order one. We started in July of last year. It was to run for 12 months. They've actually extended that through the end of the year. So, we're operating on what we call task order one which will get us to, if you will, the first deployment out in the Northwest. So, we're operating under the first task order.

And, finally, under the Genesis or whatever, how fast is the old one rolling off, the old health record contract? Roger A. Krone - Chairman & Chief Executive Officer: Well, I'm looking to Jim, because – so it is a rolling wave that clearly takes years to completely roll off. And so we have a deployment schedule that goes in waves. And I really think it takes between eight years and 10 years before the old system is completely turned off. And there are 220-ish healthcare facilities in the contract. And we've broken them into waves by region. And we're starting on Northwest and follow the dictates of the customer and convert hospitals and clinical care facilities on like six month cycles for literally eight years to 10 years.

Congrats and thank you. Roger A. Krone - Chairman & Chief Executive Officer: Great. Thanks. Thanks, Ed. James C. Reagan - Chief Financial Officer & Executive Vice President: Thanks, Ed.

Our next question is from the line of William Loomis with Stifel. Please go ahead with your question. William Loomis - Stifel, Nicolaus & Co., Inc.: Hi. Thank you. With the sale of the design and build work, can you just remind us exactly what do you have in infrastructure? Is there also any legacy liabilities you might have on older builds, contracts? And just help us understand the makeup of that infrastructure business. Thanks. Roger A. Krone - Chairman & Chief Executive Officer: Well, let me give you a little bit of the business, and then Jim can talk about the actual terms of the deal and what we've done relative to typical terms like reps and warrantees and ongoing liabilities. So this was the construction business that, when we bought it, I think, went by the name Benham. And although it has changed configuration over the years under SAIC and Leidos' ownership, it is primarily engineering procurement construction business. And it's been in size between 175 (23:26). I think last year we were over 300 (23:27). And it does just what you can imagine. It actually builds large infrastructure projects. And it is associated with the Plainfield power plant and how we got into that and some other projects that have been mostly related to big capital projects, energy, and infrastructure. And when we look at, whether this is a business that was going to grow for us, whether we had the capabilities to be competitive against some of the large EPC companies in the marketplace, we didn't feel that we could. And by selling it to Haskell, they're committed to this sector in this market. And they have a deep management team and they'll be able to extract value from that. James C. Reagan - Chief Financial…

Our next question comes from the line of Amit Singh with Jefferies. Please go ahead with your question.

Hi, guys. Thank you for taking my question and great quarter. Quick question on the overall integration, especially related to people, as you mentioned in your presentation as well. As the integration is going on and there might be some voluntary or involuntary attrition on the IS&GS side. And I think Lockheed Martin briefly had a press release that they are laying off around 200 people in that business. So just wanted to get your thoughts on both on voluntary and involuntary side in that business. Whatever is going on, is that as per your expectation? Roger A. Krone - Chairman & Chief Executive Officer: Okay. So let me first put out the disclosures. So, Amit, great question. As everyone, I'm sure, realizes, we operate the two organizations completely independent. And Lockheed Martin is operating the business in the best interests of the Lockheed Martin shareholders and are taking the actions necessary to be competitive in their markets. And, frankly, we're doing the same. And you're seeing, I think, both organizations become leaner and more agile and removing layers. And I view that as positive. As I understand what IS&GS is doing is, one, there is a contract, I think, going in and that is associated with some of the reductions, but they are becoming more lean and agile. I believe they had a plan that if they had spun-off the business that they would take certain actions. And they're going forward with that, again, to the best of my knowledge. At the executive leadership team, again, the visibility that we have, I think, they have an enthusiastic leadership team. To the best of my knowledge, none of those individuals have moved. We're anxiously anticipating them coming with the business. They're terrific folks. They've got decades of experience in managing their business and have obviously been quite successful in creating value. And so, we don't see, nor do we expect, a lot of either voluntary or involuntary attrition at the leadership team level. You can imagine and that we're going to double in size approximately if you refer to our S-4. And, therefore, our leadership team will grow. Our corporate office will grow. We will need experienced, skilled executives on the team in skills and abilities beyond what we currently have. And so, we're enthusiastically looking at the Lockheed Martin leadership team coming over and being part of the new Leidos executive leadership team.

Great. Thank you. And just a follow-up. When originally Leidos and SAIC separated, one of the reasons was the SETA-related work that had some conflict at more of your R&D type of work. Roger A. Krone - Chairman & Chief Executive Officer: Right.

I just wanted to get a sense on – and I know you've spoken about it in previous call too – IS&GS business. Does it have any SETA-related work that is coming to you? And if it is, will there be any divestiture or anything? What is the plan there? Roger A. Krone - Chairman & Chief Executive Officer: Let's see. Amit, I'm sure, you could recount the history at Lockheed Martin. And SETA – yeah, they had a large SETA organization up in Valley Forge called the systems integrator, I guess. It was called Valley Forge and it was spun out as the systems integrator, which, I think, transformed into the company now called Vencore. So, most of the SETA business had been spun out of Lockheed Martin, to the best of our knowledge and we've been pretty thorough and had discussions with the team. There are only one or two contracts that we would describe as SETA, Systems Engineering and Technical Assistance, again, for those people on the call, which would create something called organizational conflict of interest, which would prohibit us from bidding on certain contracts. And we see no impact at all from the single contract that we've identified or even if there is another contract or two contracts of a small nature. Again, they had collected their SETA business and spun it out under the SI. And we're really enthusiastic about how the strategic fit of where Lockheed had positioned IS&GS marries in with the philosophy that we have at Leidos that was promulgated at the time of the split where we spun out the company now, referred to as SAIC, which contained our SETA business. And the more we learn, the more pleased we are about, if you will, architectural work that had been done in creating IS&GS and how well it matches with the work it was done here.

Perfect. Thank you very much and congratulations again. Roger A. Krone - Chairman & Chief Executive Officer: Thank you.

Thank you. The next question is coming from the line of Cai von Rumohr with Cowen & Company. Please go ahead with your question. Lucy Guo - Cowen & Co. LLC: Good morning. It's Lucy Guo on for Cai here. I wanted to see if you could elaborate on the stronger than the average seasonality book-to-bill here. It looks like funded book-to-bill was close to 1.2 times. Can you provide some color on the bid pipeline and your bookings outlook, please? James C. Reagan - Chief Financial Officer & Executive Vice President: Sure. Well, yeah, this is Jim. Lucy, thanks for your question. Through the past, I would call, 18 months since Roger arrived and we've been reshaping how we do business development, we've been increasingly careful about taking our B&P and our marketing spend and getting more yield out of it. So we have a set of metrics that we internally follow that's very focused on win rates. It's very focused on qualifying the pipeline earlier and making sure that we don't move forward with large expensive bids that are going to crowd out our ability to invest in growth. So that has a lot to do with making sure that the yield for the money that we put into it gets us more. We're very pleased with the results for bookings that we have for the first quarter. And it certainly is one of the strongest Q1s we've seen in a long time. And I think that when we think about where that fits relative to our peer group, we're feeling pretty good about it. I would say that the other thing is that internally we target a full year book-to-bill at one or north of that. And with that as our target and entering the year with…

Thank you. There are no additional questions at this time. I would like to turn the floor back to Mr. Roger Krone for closing remarks. Roger A. Krone - Chairman & Chief Executive Officer: Great. Well, thanks. And to everybody on the call, really appreciate your dialing-in. We know it's a busy day in the earnings front. And we appreciate you being able to be on the call. We're trying go early. Whenever a company is involved in a large transaction, I know from your perspective, you always are concerned that management will stay focused on running the core business. And although one quarter doesn't make a year, we believe, at least in the first quarter we've demonstrated that we're going to keep our head down and focused on what we do here. We talk about the Leidos platform and focusing on the people, the capabilities and the cost structure and moving the business forward. And we will continue to do that through the transaction and post the transaction. And just to better describe the way we're dealing with the merger, we have set up essentially an independent Integration Management Office. Those people in the IMO have been, if you will, moved there on a permanent basis. We have backfilled the individuals. So the IMOs, the standalone team and we have filled all of our other positions, talked about Tom Dove coming into the Business Development role. And so Mike has chosen to lead the IMO. He is doing a super job. There is meetings every day on integration. We're talking about systems and people and, as I mentioned, in culture. But that really affords the rest of Leidos to stay very, very focused on what's going on in customers space to make sure we're delivering on our commitment. We're executing to our contracts. And we're going to continue that type of behavior all the way through closing. And then essentially we will collapse the IMO and the IS&GS leadership team into the Leidos' leadership team. And we will operate post-closing as one entity. So stay tuned. And as we achieve milestone events in the merger, we will make announcements and put out 8-Ks. But so far everything seems to be on track. We've heard nothing that would cause us to think we're not going to be able to close near the end of the summer. And we are all enthusiastically looking at the future of this new company that will be on the order of $10.5 billion, $10.7 billion in revenue and, as I said, $19.4 billion in backlog, which is really exciting to all of us. Again, thanks for being on the call. And we'll see you next quarter.

This concludes today's teleconference. Thank you for your participation. You may now disconnect your lines at this time.