Good day, ladies and gentlemen, and welcome to the NXP Semiconductors First Quarter 2016 Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will host a question-and-answer session and instructions will follow at that time. As a reminder to our audience this conference is being recorded for replay purposes. Now, I will hand the floor over to Jeff Palmer. Sir, please proceed.

Great. Thank you, Brian and good morning everyone. Welcome to the NXP Semiconductors' first quarter 2016 earnings conference call. With me on the call today is Rick Clemmer, NXP's President and CEO and Dan Durn, our CFO. If you have not obtained a copy of our first quarter 2016 earnings press release, it can be found at our company website under the Investor Relations section at nxp.com. Additionally, we have posted on our Investor Relations website a supplemental earnings summary presentation and a document of our historical financials to assist you in your modeling efforts. Included in this supplemental presentation and historical financial model is additional information providing insight into the combined adjusted revenue for NXP and Freescale. This unaudited non-GAAP information has been prepared for comparative purposes only provides historical revenue for each company adjusted for divestitures. Please be aware of the disclosures associated and details of both documents. This call this morning is being recorded and will be available for replay from our corporate website. Our call today will include forward-looking statements that include risks and uncertainties that could cause NXP's results to differ materially from management's current expectation. These risks and uncertainties include, but are not limited to, statements regarding the macroeconomic impact on specific end markets in which we operate, the sale of new and existing products, and our expectations for financial results for the second quarter of 2016. Please be reminded that NXP undertakes no obligation to revise or update publicly any forward-looking statements. For a full disclosure on forward-looking statements, please refer to our press release. Additionally, during our call today, we will make reference to certain non-GAAP financial measures which exclude the impact of purchase price accounting, restructuring, stock-based compensation, impairment, merger-related costs and other charges that are driven primarily by discrete events…

Thank you. Our first question comes from the line of John Pitzer with Credit Suisse. Your line is now open. Please go ahead. John William Pitzer - Credit Suisse Securities (USA) LLC (Broker): Yeah, good morning, guys and congratulations on strong results, thanks for letting me ask question. I guess, guys, my first question is just around OpEx. And I know that you guys wanted to kind of avoid talking about sort of the quarterly progress to your synergy targets, but when I look at OpEx in the March quarter of about $593 million and compare that to the pro forma number back in September of around $610 million to $615 million, it just seems you've divested businesses and revenues down a lot. OpEx is good, but I'm just trying to get a sense of – now you've always said the cost synergies are going to be more backend loaded, is that still the case and if that is the case, why are the cost synergies this year more backend loaded? Daniel Durn - Chief Financial Officer & Executive VP: Yeah, so a couple of comments on this John. If we take a look at Q1 of 2015 as a baseline predates merger announcement and we combined the as reported numbers for the company, we get a operating margin on a combined basis of about 23.5%. When you net out the divested businesses, RF Power and Bipolar, we know that RF Power was significantly margin accretive on a blended basis. Rough order of magnitude, take about $150 million of revenue out and it improves the operating margin by about 100 basis points – I'm sorry, it takes operating margins down by about 100 basis points. So the baseline against which we think we should be measured is Q1 adjusted 2015…

Thank you. Our next question comes from the line of Ross Seymore with Deutsche Bank. Your line is now open. Please go ahead.

Hi guys. Thanks for letting me ask a question. I guess one on your biggest business, Rick, your Automotive business, you mentioned that the end market was stable, without front running Thursday's meeting too much, can you talk a little bit about the content side of the equation and any sort of magnitude that you think that can drive the growth of NXP above and beyond that kind of 2% to 3% unit growth for the market that you discussed? Richard Lynn Clemmer - President, CEO & Executive Director: Well, John (sic) [Ross], as you know, we're going to cover it in a lot more detail on Thursday. But I guess when we think about that business going forward, even with the combined portfolios, we see SAAR growing – roughly approaching 3% for the year. We see the semiconductor content that goes along with SAAR being kind of 50% faster than that, kind of in the 4%, 5% range. And with the design wins we have, we see the opportunity to participate at a higher rate, high single-digits. And so I guess, we haven't officially come out for the three-year growth rate, again to update that, which we will do on Thursday, but you can anticipate that we will be at a high single-digit level in Automotive and continue to solidify our leadership position there. Really changing some of our focus from some of the areas that have been invested in previously, moving more towards the ADAS and areas where we have a true leadership position and can have a significant impact on saving lives and reducing the number of accidents in the auto industry.

And I guess as my follow-up, Dan, one for you on the gross margin side of things, you gave a great answer as to how you guys are working on OpEx to John's question. On the gross margin side of things, you're guiding it relatively flat in the second quarter. Can you just walk through some of the puts and takes that leave that flat? Daniel Durn - Chief Financial Officer & Executive VP: Yeah. So when we take a look at operation of the business, recall that we're about 45% externally sourced, 55% internally sourced and as we grow in various parts of the business, mix obviously affects that equation. And it doesn't necessarily lead to an overall improvement from a utilization standpoint of the overall company. The second thing is, we're positioning ourselves to long-term margin progression on the gross margin line over time. And so we want to make sure that the early pieces that we've put in place are done in a very measured way so that we drive well into the mid-50%s from a gross margin standpoint over time. And then lastly, as we think about pickup going forward in terms of the various end markets we serve, we're incrementally seeing more strength in the mobile market than we've seen over the last couple of quarters and its margin dilutive on a mix basis.

Good, thank you. Richard Lynn Clemmer - President, CEO & Executive Director: Thanks Ross.

Thank you. Our next question comes from line of William Stein with SunTrust. Your line is now open. Please go ahead.

Great, thanks. Congratulations on a good quarter and outlook. I'm hoping you can address the path to delevering from here. I think the buyback that you did during the quarter was clearly very well timed given the dislocation of the stock price. But, I think there was some expectation that investors had that the focus would be on debt reduction. And maybe you can talk without front running the Analyst Day too much about the trade-offs you consider in capital allocation between those two and maybe any other priorities? Daniel Durn - Chief Financial Officer & Executive VP: Yeah, thanks Will. So as we think about capital allocation and we think about leverage. I think, first we want to start off by saying there's no change to the target leverage of this company. It's going to be two times net leverage or below. And at the time of the merger we said we would get back to two times leverage within six quarters. So, the target is to, by the end of Q2 2017, to be a two times levered company or below. In the interim, like we said, we are going to take a balanced approach to capital allocation. Dislocation that we see from an equity market value standpoint relative to the intrinsic model we have, means that we're going to be as aggressive as possible within that boundary condition of two times leverage by the end of Q2 2017 to buy as much shares as we can in the open market. Richard Lynn Clemmer - President, CEO & Executive Director: Yeah. So, Will, you made the comment that you thought our investors were looking for deleverage. I will tell you, based on a wide survey of our largest investors, we have basically a split vote between deleveraging and buying back stock. And so what we're going to try to do is balance that off in the best interest of shareholders moving forward.

That's very helpful. Thanks. If I can add one follow-up and it's about the broader portfolio – Rick, may be appropriate for you. There has been some incremental speculation about what you might do with the Standard Products business. It's clear to those of us who've been following you for some time that you've stated in the past, this is not core, not strategic, but sort of not demanding a sale either, it's a very good margin, very good cash flow sort of business. So I'm wondering if you can give us any updated consideration on thinking about the portfolio more broadly, both potential sales or potential acquisitions. Richard Lynn Clemmer - President, CEO & Executive Director: Well, we're not going to comment on any rumors or speculation. I think we can reconfirm as we've said that Standard Products is really not a strategic – not in our strategic portfolio, not a requirement to be able to meet our strategic requirements. But that being said, it's the best-performing business in the Standard Products market and generates a significant amount of cash and a very positive business. So, if someone would come along and offer us what we would deem to be fair value, you know, if it's higher value for them than it is for us, then we clearly would consider our alternatives associated with it. Relative to the overall portfolio, I think it's a work in process in a couple of areas. When we look at it, there's been a changing market environment in some of the markets we participate in. And we're taking a really hard look at a couple of areas to decide how much R&D investment we want to move forward with to really be sure that we can drive our RMS objectives that we have as a company to really be a true industry leader in the businesses where we're investing. So we will be making some adjustments over the next few quarters associated with that. And we'll talk a little bit about that on Thursday, but primarily come back to you after we have that in place over the next few quarters.

Thanks and congrats again. Richard Lynn Clemmer - President, CEO & Executive Director: Thanks, Will. Daniel Durn - Chief Financial Officer & Executive VP: Thanks.

Thank you. Our next question comes from the line of Vivek Arya with Bank of America. Your line is now open. Please go ahead.

Thank you for taking my question. You mentioned distribution inventory is around 2.5 months, it's definitely an improvement versus a few quarters ago. My question is, is this the right number? Is it too high? Is it too low? Is it exactly the right number? How are you making that determination, Rick? And if you were to divest Standard Products, do you think that helps improve the visibility in the distribution channel? Richard Lynn Clemmer - President, CEO & Executive Director: Well, we'll leave any comments for Standard Products until that time that it might actually happen. I think when you look at inventories in distribution channel, it's always an arm wrestle basically with our distribution channel partners. We'd like for it to be, frankly, as high as it can be because the more product that's there is available for sale associated with it, they would like for it to be as low as it can be to be able to improve their turns and earn (34:38). So it's an arm wrestling. I think 2.5 months is about the right level, plus or minus 0.5. If we saw an increase in demand then we might want to be approaching more like the 2.9 or 3.0 months of inventory getting prepared for that increase in demand. What we wouldn't want to do is see a decrease in demand and see inventory increasing to the 3.0 level. So I think we're kind of okay with where the inventory levels are at 2.5 months. We don't want them to get a lot lower than that frankly. But with where the general economic environment is, which is certainly not off to the races, I think we'd like to maintain the inventory levels roughly around where they are. Now they'll bounce around a little bit on a quarterly basis depending on which disti takes which shipments or whatever. But I think it's in the right ballpark of where it should be, the right zip code, and we want to continue to maintain it there unless we see a pickup in demand, and then we want to be sure that we've got adequate supply in the channel to be able to meet our customer requirements.

Got it. Thank you. And as a follow up, Rick, is it possible that if there is faster adoption of NFC in smartphones that your SCD segment helps to offset the slowdown and maturity that you're seeing in the bank card segment, because it appears that people are more comfortable using a mobile wallet in the phone rather than using a lot more credit cards, and if that is the case what are the puts and takes? I assume your content in a phone is much higher than what it is in a bank card. Richard Lynn Clemmer - President, CEO & Executive Director: Yes. Seriously, I think you are absolutely dead on. When we look at the opportunity – I think, we've been talking about it for some time. Clearly, it's taken more time to materialize for mobile transactions in emerging countries than what we would have hoped for. Part of that's dependent upon when the fundamental core technology – once Apple had kind of delayed their implementation of Apple Pay in China, it pushed out the timing associated with it. Now, on an interim basis, we've really gone off and tried to work on the transit side in China, and we see some real momentum with our partners in trying to be able to bring a mobile wallet to the transit experience in China. And we think that that may be as much if not more of a stimulus than absolutely Apple Pay's rollout on a worldwide basis, where all of the smartphone companies have to have an equivalent product to be sure that they can be competitive with Apple. But it's absolutely more value associated with it and an opportunity, with the leadership position we have from a technical viewpoint as well as from an overall ecosystem and solutions viewpoint, an opportunity for us to be able to participate in that accelerated growth.

Thank you.

Thanks, Vivek.

Thank you. Our next question comes from the line of Doug Freedman with Sterne Agee CRT. Your line is now open. Please go ahead.

Great. Thanks for taking my question guys, and congratulations on the strong beat and raise results. If I could, Rick, if we look at the revenue level that the combined companies were operating at for the first quarters of 2015, it really approximates $2.5 billion plus or minus $50 million. Is there anything that's happening in the portfolio at the present time that makes it compared to that level going forward an unfair comparison once we get the inventory levels straightened up? If you could comment on where you think we are in sort of that overall inventory and a recovery to that sort of a level of revenue would be helpful. Richard Lynn Clemmer - President, CEO & Executive Director: So, first off, you have to consider the RF Power business, which if you just do a simple add up was (38:31) associated with it, so that's one factor. I do think that with RF Power we have seen – we continue to see a supply chain that is up and down and creates a lot of spikes and uncertainty associated with it. And if you look at, some of the pressure that we've seen in the marketplace in digital networking, we see some pressure associated with the top line from where Freescale was operating a year ago in digital networking. It's quite well known some of the pressures of some of the high-end smartphone companies and the impact that has that we've seen in the second half of the year and have to be able work through and move through that. And then as we talked about, SIS has not been at the level that we would have liked based on some of the pressure that we've seen, the competitive pressure on the contact baking situation. So I think, as we talk about it Thursday, we'll give you more specific comments on the growth going forward. I think when you look at it we have the right portfolio focused on the right markets that will give us the opportunity to outgrow the market going forward. And we'll try to go through that in more detail on Thursday to be able to share with you guys why we feel as comfortable as we do with the ability to outgrow the market – to continue to outgrow the market. But we don't – our confidence in being able to outgrow the market is still just as solid as it has been in the past. Although, clearly, we're going through some pressures in the near-term that I talked about that makes it more difficult on a near-term basis.

I guess, as my follow-up, if you could maybe give us some insights into what you're presently seeing in the RF market, whether you think that is a market that will recover or come out of its present down cycle? Richard Lynn Clemmer - President, CEO & Executive Director: So I think that that market is going to continue to be up and down. I don't think that we'll see a consistent basis on it at all. I think what we have seen in Q1 is a very positive environment where China Mobile with their next-generation rollout has actually accelerated things. As we look at that market, we actually over the long-term want to try to be sure that we can participate in other segments associated with it. But I think, the improvement that we've seen in Q1 and the better outlook associated with it is based on the strong leadership position that we have in RF Power and then the opportunity to be able to leverage that into other applications. As we look at some of the emergence of post 4G rollouts an opportunity for us to be able to participate in some of the architecture decisions there, we think that we're quite excited about some of the opportunities that can give us some growth over and above what you might expect on just a normal base station deployment.

Terrific. Thanks for all the color.

Thank you. Our next question comes from line of Stacy Rasgon with Bernstein Research. Your line is now. Please go ahead.

Hi, guys. Thanks for taking my questions. So it sounds like, I guess, with the higher margin targets and you're talking about strong free cash flow that the story here maybe becomes a little more geared toward a total returning capital allocation. And then in that environment, free cash flow probably becomes more important than it has been in the past. I know some of your competitors with a similar type of story or model actually have fairly well-defined free cash flow targets. I guess along with the margin targets you've given, are you going to be giving free cash flow targets, maybe as a percentage of revenue or something like that out as well? And what sort of free cash flow generation prospects do you see from the combined company over time? Daniel Durn - Chief Financial Officer & Executive VP: Yeah. Thanks Stacy. We definitely will be giving guideposts in terms of how to think about free cash flow going forward. Capital return strategy, I think will be an important part of the story going forward. And if you think about a company that's a – against the 3% to 4% market growth rate, greater than 1.5 times growth, you're thinking maybe a 6%, 7% grower going forward out into the 2019 timeframe at this margin profile. You start getting in the zip code of about $4 billion EBITDA, you're thinking about CapEx at about a 5% run rate going forward. So EBITDA minus CapEx is mid $3 billion a year type number at the far end of that guidance window. I think it gives you a sense of what we'll be saying on Thursday and dimensionalizing the strength of the combined model on a go-forward. Richard Lynn Clemmer - President, CEO & Executive Director: And I think you can look at our track record, Stacy, we've been very balanced in using our cash that we generate, we've had strong cash generation in the best interest of shareholders. I mean, if you look at it, before we actually did the merger, we had bought back like $1.6 billion over like a four, five quarter period of time. So that's a good indicator relative to our position and our desire to be able to make sure that we act in the best interest of shareholders.

Got it. Thank you, guys. That's helpful. And for my follow up and again I guess maybe we will hear more about this on Thursday, but do you think that your, I guess, long-term gross margin targets are going to be revenue dependent. Like what kind of revenue levels do you think would take to hit the low end versus the high end of that gross margin guidance? Daniel Durn - Chief Financial Officer & Executive VP: Yeah. So rather than tying a specific revenue level to the low end or high end because it's going to be – part of it is scale and part of it is time based. But as you think about revenue, not heroic levels off of where we sit today and what we posted in 2015, but maybe an $11 billion zip code give and take is the type of scale that will facilitate progression into this – well into the gross margin range.

Got it. Thank you, guys. Richard Lynn Clemmer - President, CEO & Executive Director: Probably it's about mix as it is absolute revenue dollars. So I think there are factors associated with it. But I think we'll go through – Dan will go through more details on Thursday associated with our targets and how comfortable – and the reasons why we feel as comfortable as we do associated with it, Stacy.

Got it. Thank you, guys. Daniel Durn - Chief Financial Officer & Executive VP: Thanks. Richard Lynn Clemmer - President, CEO & Executive Director: Thanks, Stacy.

Thank you. Our next question comes from the line of Toshiya Hari with Goldman Sachs. Your line is now open. Please go ahead.

Hi. Thank you for taking my question. Rick, you talked a little bit about how you're seeing incremental positive trends in the number of your businesses. Maybe you can elaborate on that and provide a couple of examples, which businesses, which regions? That would be helpful. Thank you. Richard Lynn Clemmer - President, CEO & Executive Director: Well, I think when you look at it over the last few months, our Automotive business has continued to rebound nicely and is in a very positive environment. So, clearly, we feel very good about the improvements in Automotive business and being able to continue to see that. While there has been some discussion about our inventories, et cetera, we don't see any weakness on a global basis at all in automotive and continue to see very positive. I think one of the things that we are seeing is when we look at what we call our crawl charts on a weekly sales basis, we see some uptick associated with it which is encouraging. Our book to bills are improving and although we don't think book to bills are necessarily a good a representation of what's going on in the semiconductor market as they were a decade ago or so, they are a factor and we do see positive indications associated with that. So I think overall when we look at it, the market in China seems to be pretty stable. I think other than a few exceptions in Europe, which is primarily industrial and automotive, it's looking pretty good. The U.S. market is somewhat anemic based on the environment associated with the political uncertainty and the concern that that touch relative to everyone's investment strategy. Bu, clearly, we're seeing indications in different businesses, in different sectors of improving which gives us the confidence to be able to talk about some indications of an improving economic environment.

Okay. Thank you. That's very helpful. And as a quick follow-up, I have a question regarding your guide for Q2. I'm trying to better understand how your guide for the individual segments compare relative to your history. If you can provide ranges for normal seasonality for the combined business, for each of the segments, that would be helpful. Thank you.

Yeah. Toshiya, it's Jeff.

Hi.

So when we -- yeah, hi. When we get out to a seasonality, what we do is we tend to look backward about three years, take an average and the median. So it's really not – we're not trying to give you any kind of nod-nod, wink-wink into the future, what we're giving you are our thoughts on seasonality. So this is all mathematical and you could go probably through it yourself. But if you think about autos, in aggregate, on a comparable basis, three-year seasonality into Q2 might be low-single digits, kind of low to mid-single digits, if you will. If you think about SCD, that upper-single digits, the 7% kind of range into Q2. SIS is just such a lumpy business. These analysis really doesn't work because it's kind of different every year depending on what tenders are happening. So I'm going to kind of avoid making a comment on that. And then on the Secure Interface and Infrastructure, you usually do see a mid-single digit up into Q2. Now, these are all just on a comparable basis and this takes kind of backward three-year look at our trends. Richard Lynn Clemmer - President, CEO & Executive Director: But I would tell you, I think that the one thing that's really difficult as you've brought the businesses together is the seasonal basis is much more difficult to try to draw any real conclusions associated with. We'll cover more of the general environment on Thursday as we go through it business by business. And I think you'll get a better feel for what we see with the outlook.

Yeah. And then Toshiya, just for completeness sake, on Standard Products, it's a great business in a odd market, but it's up about 2% low-single digit into the second quarter approximately.

Very helpful. Thank you so much.

Thank you Toshiya for your question.

Thank you. Our next question comes from the line of C.J. Muse with Evercore. Your line is now open. Please go ahead.

Yeah. Good morning. Thank you for taking my question. I guess first question, going back to your commentary around autos and high single-digit growth, curious what kind of assumptions you're making there in terms of radar entering the fold as well as with CogniVue integration and what kind of uplift from vision you're anticipating this year, or is that greater uplift from those two elements into 2017 and beyond? Richard Lynn Clemmer - President, CEO & Executive Director: So I would tell you, radar we see as a positive contributor late this year. It's a foundation of the business today. So it's not like it's coming from ground zero, but we see our leadership position in radar continuing to strengthen as we move forward and it will be a contributor. Don't forget we have our initial shipments, vehicle-to-vehicle that will start – that we're doing with Delphi for high-end General Motors which will start for the 2017 model year, which will start shipping later this year, although it won't be material in the overall numbers from an impact viewpoint. And on the vision side, I think that's beyond kind of the near-term. So as we look at it, our focus on investment is moving towards the ADAS side. But remember, that's really more further out in time in automotive, that's not something that's going to impact the next few quarters. The next few quarters are going to be driven by the design wins that we've already won as we begin to ramp those or continue to ramp those, and having a positive impact relative to the overall revenue.

And C.J., if I could just add, I think it's overlooked sometimes the significant market share the new NXP has in radar. We are clearly the market leader in that space. We're considered not only a market leader, but we're a thought leader. Some of the ideas we're seeing from some of the more cutting-edge automakers of building kind of radar cocoons around their cars, they're coming to us to help them with those solutions. That not only pulls forward radar front end, but also pulls forward the processing back end, and then is also driving us to supply in-vehicle networking at higher data rates like in-vehicle Ethernet. So there is really kind of an add-on effect in this market and it goes to show you the complementary nature of this merger and the power we can bring to our Automotive customers. Richard Lynn Clemmer - President, CEO & Executive Director: And we're going to cover that in a lot more detail on Thursday. But clearly, our focus in Automotive is – on the investment side is moving more towards the ADAS side and how we can continue to drive leadership associated with those new opportunities.

Very helpful. I guess as a follow-up, I wanted to go back to distribution, and curious if you could share what percentage of your combined revenues flow through distribution. If you can confirm that all of that is recognized on a sell-in basis. And then, I guess, Rick, given your comments around green shoots in parts of your business, do you anticipate into Q2, Q3 timeframe perhaps a reacceleration of demand as inventory there has gotten cleaned up and you start to see a resumption of at least normalized demand patterns? Richard Lynn Clemmer - President, CEO & Executive Director: Well, we've given you specific guidance for what we think about Q2 so that is probably as far out as we want to go, C.J., on a quarter-by-quarter basis. I do think that we clearly have gone through a pretty significant supply chain adjustment associated with a number of the smartphones – or at least some of the key smartphone manufacturers. I think as we work our way through that, we will see a return to more of a normalcy associated with it. On disti itself, we always said it was around half of the NXP business in the past. I think Freescale had said it was kind of a third or a little bit above. I think in total we're kind of in the 40%, 45% range and it bounces around a little bit based on fulfillment, what customers are doing what in any individual quarter. But we're in that just slightly below half, I would say, and think that that's kind of an optimal place to be in. But relative to the impact that has on a quarterly basis going forward, I think that's all reflected in what we gave you relative to our Q2 guidance. And then we'll talk about the three-year compounded growth rates in more detail on our session on Thursday.

And C.J., just to your other question, we recognize all of our revenue into distribution on a sell-in basis.

Great. Thanks so much. Richard Lynn Clemmer - President, CEO & Executive Director: Thank you.

Thank you. Our next question comes from the line of Craig Hettenbach with Morgan Stanley. Your line is now open. Please go ahead. Craig M. Hettenbach - Morgan Stanley & Co. LLC: Great. Thank you. Just following up on the mobile wallet, and after that high profile win it looks like we're starting to see early signs of finally the Android community for traction. So can you add any anecdotes around that in terms of your design initiatives and how you see that ecosystem evolving as we go through this year? Richard Lynn Clemmer - President, CEO & Executive Director: Yeah. The key we talked about and we've been trying to update was really on the Android side, the Android Pay really being driven by transit as much as anything else. We actually announced our relationship with Xiaomi and that's a significant contributing factor. But basically, most of the so-called China Inc. smartphone guys are looking at how they move a mobile wallet into their offering. But not as much for the mobile wallet's sake, it's really focused on the transit side and being able to make boarding of the mass transit systems in China in a much more speedy and efficient manner associated with it. So we're really focused on how we deploy that now and drive some of the adoption of mobile wallet through the transit side. Although I still think there's some momentum as Apple begins to roll out Apply Pay in China, all of the high-end smartphone guys have to have something equivalent or when somebody in Sprint is using Apple Pay at a terminal and they've got a brick that doesn't do that, they're going to want to move to something that's equivalent. Craig M. Hettenbach - Morgan Stanley & Co. LLC: Got it. Thanks.…

Operator, we will take one more caller.

Yes, sir. Our next question comes from the line of Blayne Curtis with Barclays. Your line is open. Please go ahead.

Hi, guys. Thanks for squeezing me in. Just, Rick, I think you've answered this, so I just want to clarify, you talked about channel inventory is being lean. Were you under-shipping any in Q1? And then as you look to the guidance in Q2, do you expect those inventory levels to change? And then if you could just talk about on SCD, the wide range of the guide, what are the drivers there? Richard Lynn Clemmer - President, CEO & Executive Director: Well, first off, on distribution, yeah, we reduced our inventory by $49 million, so we under-shipped into distribution in the most recent quarter. I think, for Q2, we don't give guidance specifically associated with that. Our intent will be is to put the right amount of product in the distribution channel for what we see for Q3 and being able to meet the customer demand requirements for that. But, I would anticipate that we're in the right zip code and where we would want to be. So I would say it'd probably be pretty balanced going into the quarter. But, again, we don't give specific guidance associated with that. And I'm sorry, I forgot what your other question was.

I was asking, the drivers in June (58:24) on SCD, there is a wide range there, what are the puts and takes?

Yeah, Blayne, maybe I'll take that. So you know one of the beauties of the microcontroller and MPU market is its broad-based nature. It's a much more diverse type of business, it's a great business. As one of the earlier questioners asked, I commented on our market share gain, so the concentration in SCD is not what it was at one time. While we're still very pleased and proud of our exposure to the high-end smartphone market, we're much less dependent on the smartphone market today. We're seeing very positive trends in mobile transactions, as Rick commented on, but nowadays the business I think has a much more diverse nature in SCD.

Thanks guys.

Thank you. This is all the time we have for questions today. I'll now turn the call back to Rick Clemmer for closing comments. Richard Lynn Clemmer - President, CEO & Executive Director: Thank you very much. First off, thank you for joining us today. In closing, I'd like to just highlight a few key points. We delivered a very strong performance in Q1 with revenue, gross margin and EPS all above the midpoint of guidance. We generated excellent cash flow and effectively deployed about $0.5 billion in buybacks and debt reduction. Finally, I'm extremely pleased with the significant progress we've made in the last few months relative to the integration and we continue to execute associated with that and things are going very smoothly, especially on the product synergies and bringing the portfolios together. We look forward to hopefully speaking to all of you at the Analyst Day on Thursday and hopefully, we can share as much information as possible with you to make you as knowledgeable about NXP as possible. Thank you so much.

Thank you everyone. And that concludes our call today.

Ladies and gentlemen, thank you for participating in today's conference. You may all disconnect. Everybody have a wonderful day.