Good morning and welcome to the Sabre Second Quarter 2016 Earnings Conference Call. Please note that today's call is being recorded and is also being broadcast live over the Internet on the Sabre corporate website. This broadcast is the property of Sabre. Any redistribution, retransmission or rebroadcast of this call in any form, without the express written consent of the company, is strictly prohibited. I will now turn the call over to the Senior Vice President of Investor Relations, Mr. Barry Sievert. Please go ahead, sir.

Thank you, Hanna and good morning, everyone. Thanks for joining us for our second quarter 2016 earnings call. This morning, we issued an earnings press release, which is available on our website at investors.sabre.com. The SEC recently issued additional guidance on the use of non-GAAP financial measures. As a result, you will notice a few changes to the presentation and our press release today, including the presentation of our guidance. A slide presentation which accompanies today's prepared remarks is also available during the call on the Sabre IR webpage. A replay of today's call, along with the slide presentation, will be available on our website beginning this afternoon. Throughout today's call, we will be presenting certain non-GAAP financial measures, which have been adjusted to exclude expenses and other gains or losses related to restructurings, litigation and tax matters, and certain other items. All references during today's call to EBITDA, operating income, EPS, and net income have been adjusted for these items. The most directly comparable GAAP measures and reconciliations are available in the earnings release and other documents posted on our website at investors.sabre.com. We would like to advise you that our comments today contain forward-looking statements. These statements include, among others, disclosures of our guidance, including revenue, EBITDA, net income, cash flow, interest expense, tax rate, capital expenditures, and earnings, our expected segment results, the effects of new or renewed agreements, products, implementations and acquisitions. Implementations are expectations of industry trends and various other forward-looking statements regarding our business. These statements involve risks and uncertainties that may cause actual results to differ materially from the statements made on today's conference call. Information concerning the risks and uncertainties that could affect our financial results is contained in our SEC filings, including our first quarter 2016 Form 10-Q and our 2015…

Thank you. And we'll go to Brian Essex with Morgan Stanley. Brian L. Essex - Morgan Stanley & Co. LLC: Good morning and thank you for taking the question. Tom, I was wondering if I could start off by taking a look at the guidance and the commentary that you made on EMEA. If you could elaborate a little bit more in terms of what specifically are you seeing in that region that causes you to be more cautious? Obviously, we're all aware of what's going on in the macro, we've heard some other vendors talk about shifting Travel. Maybe if you can break it down to maybe country specific where you're seeing the movement and what's giving you the incremental pause throughout the remainder of the year? And then, I have a follow-up. Thomas Klein - President, Chief Executive Officer & Director: Yeah. Brian. So it's a little hard to talk about it on a country specific level. I think our view is that this confluence of issues that have happened whether it's been some of these spate of terrorist issues, and then, just an overall softening of demand, we talked about corporate demand globally being a little bit soft. I think there's a confidence issue that's driving some pullback in capacity in some markets as we've seen and the shifting of capacity. So in some cases, domestic capacity being decreased by here in the U.S. and a little bit of increase on the international side. So we see capacity down a bit. And Europe coming into (25:19), we've outperformed Europe in a significant way and, as Rick said, we had a quarter here, this quarter where we anniversaried some big wins that we had in Europe or really across EMEA in 2014 and early 2015 that got implemented.…

Next, we'll go to Mark Moerdler with Bernstein Research. Mark L. Moerdler - Sanford C. Bernstein & Co. LLC: Thank you very much. Rick, drilling a bit more into the increased investment in the Travel Network, two related questions. First one, how should we think about the fees you're paying or the percentages for sales and commissions to the internal employees and the agencies. Is the cost of closing that business changed significantly, whereas basically, the cost of driving that revenue staying reasonably stable and I have a follow-up? Richard A. Simonson - Chief Financial Officer & Executive Vice President: Reasonably stable. It hasn't changed significantly. And as you see, we're winning business, we're gaining in market share, and we're doing that with having our gross margin and our EBITDA margin actually a little bit higher than what we thought at this point in the year, so that gives us a good flexibility since we're winning on the things that we always say we compete on first, second and third, which is our overall product, the innovations, the ease of use, the end-to-end efficiency for the agencies and all you need to do is be competitive on price. Mark L. Moerdler - Sanford C. Bernstein & Co. LLC: Perfect. So you're not having to pay more to win. Second question is, I know you've given a little bit of data, but in terms of looking at the large amount of deals that obviously you've closed, can you give us a sense of how much that was – how much of the dollars or some other metric, how much of that is wins versus renewals of deal that you basically were able to close earlier and lockdown? Richard A. Simonson - Chief Financial Officer & Executive Vice President: Again, as Tom said, we renewed with couple of our biggest ones, and then, there's a couple of wins in there that you guys are I think aware of and we don't call out every single one, I mean we deal with hundreds and hundreds of travel agencies, OTAs, brick-and-mortar, you name and these were rather large, so we called it out here. Mark L. Moerdler - Sanford C. Bernstein & Co. LLC: Perfect. Thank you. I appreciate. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Thanks, Mark.

Next, we'll go to David Togut with Evercore ISI.

Thank you. Good morning. Good to hear of the strong sales activity in the Travel Network business. Could you talk about market share trends in the quarter? In particular, your reported data show a 70-basis-point decline in global air data. It looks like Amadeus was up about 80 basis points on a global basis with the big share gains really occurring in Asia-Pac and North America. I mean, are these just short-term shifts that you think will reverse in the next few quarters or is there something else we should be thinking about? Thomas Klein - President, Chief Executive Officer & Director: Yeah. Thanks, David. Look, the quarterly rhythm of share is driven by a whole bunch of things including kind of the ins and outs of how different markets are growing or maybe, as we said in our remarks, there's some implementation ebb and flow that happens, but that can drive share. We really focus on that year-to-date number. We're up almost a full point of share year-over-year the business that we just renewed and signed up and talking about five of the 10 biggest travel providers in the world, all of which we have a very large shares of, in some cases, above 50% shares of some of the biggest players in the world. We think we can expand there. We think that that will lead to longer-term share growth, and we think we have a very advantaged position and more balanced position than our competitors.

Understood. And then, just shifting gears to Airline and Hospitality Solutions, I think you've called out an intermediate term pipeline of about 650 million PBs that you're pursuing, could you talk about the propensity of the airlines to outsource in this environment as booking slows and perhaps they focus more on ways to reduce costs? Thomas Klein - President, Chief Executive Officer & Director: Yeah. I mean, we don't think there's any change there. We think the long-term trend that's going to continue. We said that it's early in the enterprise side of the Hospitality market for outsourcing, particularly in the central reservation system, but in the Airline market, we don't see any slowdown or any propensity to change. We think that pipeline still holds. We've said all along that the timing is always hard to predict as far as we can see deals coming, we can see RFPs come out, but we can't always see the finish line as far as when people will make decisions. But the propensity to buy has not changed, and as I mentioned in my remarks, and in some of the areas where we really nailed a solution like we have in crew, where we clearly have the best product in the market, there is a propensity for people to line up and talk with us about buying it. So I think as long as we do our job and hold up our end of the bargain on innovation and showing carriers or hoteliers a path to a better cost of ownership and an ability to innovate and leverage at scale, I think that that trend is going to continue and we can be a stimulator of it.

Understood. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Hey, David, this is Rick. I want to add that passengers boarded overall in the industry are still growing and growing quite robustly, I mean, our own on an organic basis just in the quarter we're 6%. And so, and also, I think airline capacity is actually growing and it will be higher this year than it was last year. So not to be confused with a number of airlines have said they're slowing their rate of growth in the second half a bit. If you remember at the start of the year, we talked about that that could be likely and our guidance expected that, and if it happened, we could play well within it, but I think two things to reiterate is passenger boarding growth is having the typical strong secular growth of the industry that grows faster than GDP, and capacity this year will be higher than it was last year even if some people are pulling back their plans a little bit particularly in Q4.

Understood. Thank you very much. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Thanks, David. Thomas Klein - President, Chief Executive Officer & Director: Thanks, David.

Next, we'll got to Ashish Sabadra with Deutsche Bank.

Hi. I'll ask a question on Solutions. So Solutions growth has been trending like 16% in the first half. You reiterated your 17% guidance for the full year, which would imply a material improvement in the back half. So I was just wondering how much visibility do you have around that and what are the drivers for improvement in the revenue growth in the back half. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Yeah, Ashish, it's Rick, thanks. You got it right. We will have a stronger growth there and, as I mentioned, more so even in Q4 than Q3, just on quarterly seasonality. And we still expect the 17% growth for the year; so all the numbers are intact. And again, it's really just a good visibility on what we have, particularly in Hospitality as that becomes a bigger portion of our business. And in Airline, of course, we have across really three suites of product our SabreSonic reservation suite, our AirCentre and AirVision, so it's really a combination of those. And if you look at those three, and then Hospitality, it's really much more balanced across those than say two years ago where we were a little bit more reliant on just airline reservations, the SabreSonic suite. So given that, all of those have attributes of where we have strong predictable sales pipeline, implementation pipeline that is we have history with reliable, if airlines have some adjustments to that, we move somebody up, we move somebody back. So we feel pretty good about it; no different now than what we felt in terms of the visibility predictability that's since we came public other than we're a little bit more balanced in those four suite of products, the three across Airlines and then Hospitality in totality.

Thanks for the color, Rick. And then, on the GDS side, the booking fee, if I just divide the transaction revenues by the GDS booking, the booking fee improved like 4% year-on-year that was a significant acceleration than what we've seen historically. Can you just talk about the pricing trend, what's driving that, is it mix shift? What's really driving the pricing increases and the sustainability of those pricing increases going forward? Thomas Klein - President, Chief Executive Officer & Director: Rick and I both liked your question. I'm going to take it. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Tom, take it away. Thomas Klein - President, Chief Executive Officer & Director: Look, there's always a little bit of – when we see that kind of gain, a 4% gain, there's definitely some mix shift in there. As we said, we had a strong Asia growth, Asia-Pac growth quarter versus the rest of the world. We saw return of growth for Latin America and we saw a little bit of growth in Latin America where booking fees are a little higher than North America. And as we said all along, we expect as we renew contracts with our supplier base that we should see moderate price increases, we've talked about it about the rate of inflation, so – and that's what we're saying. So the combination of mix and a little bit of renewal uplift is what's driving that. We haven't kept October too far, Ashish, but we get to see a good quarter from an average price perspective.

Okay, thanks.

Next, we'll go to Jim Schneider with Goldman Sachs. Lara Fourman - Goldman Sachs & Co.: Good morning. This is Lara Fourman stepping in for Jim. I was just wondering on margins, you spoke a little bit on the guidance, but can you just give us a sense of what timeframe you think the Travel Network margins can get back to 42% once you optimize Abacus? And then, on the Solutions side of the business, as your new solutions wins come on next year, do you think it's reasonable to expect another 100 bps of margin expansion in that segment? Richard A. Simonson - Chief Financial Officer & Executive Vice President: Hi, Lara. This is Rick. Thanks. Just a reminder, in Travel Network, we said for our medium-term guidance that it's around 40%, not 42%. We moved the 42% down to 40% with the full integration and acquisition of Abacus, it was the primary driver for that. What I pointed out in Q2 and for the rest of the year is we're actually doing a little bit better this year than what we expected. So we're in between that 40% and 42%. But again, we expect that to be closer in the medium-term to 40% than 42%; that allows us to have the right kind o flexibility to invest for total revenue growth, total margin growth, and total free cash growth that maximizes the business. I think we're demonstrating we're playing that well. We'll be in between those ranges a little bit here this year and next, but that's just a reiteration of what we look a little bit further out. Real happy with the performance of Travel Network in the first quarter and second quarter to-date. On the Solutions side, again, as we've talked about this year, in the high 30%s. We're tracking to that. Quarterly, you have some variation here, as we've seen in Q1 and Q2. And then, we pick up a bit, and then, moving forward, we had said previously that 2017 would be at the very high end of the 30%s. That wasn't a limit. We talked at our Investor Day where we updated our medium-term outlook and expectations, and say, we have visibility from there into the low 40%s margin on the Solution business. Again, I believe we remain intact for meeting those expectations. Lara Fourman - Goldman Sachs & Co.: Thank you. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Thank you. Thomas Klein - President, Chief Executive Officer & Director: Thank you.

Next, we'll go to Jason Kupferberg with Jefferies.

Thanks, guys. Just wanted a finer point on the market share trends and expectations. I know you're up almost 100 bps year-to-date in the metric and obviously be quite lumpy on a quarterly basis. So based on the recent new wins, are you suggesting that when all said and done for full year 2016, you expect some meaningful global improvement in overall GDS share, I mean whether that ends up being 50 bps or 100 bps, but some sort of meaningful number once we sort through all the quarterly fluctuations? Thomas Klein - President, Chief Executive Officer & Director: We have said that we can consistently grow share. We hadn't forecasted out where our share will land, but we've said we will be a consistent grower and we still believe that. So we'll stand at that. We think we take share everywhere in the world. And yeah, there are some quarterly ups and down, but we expect overall that our trend line will go up. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Yeah. And Jason, the new wins are a little bit – will lag a bit. So it doesn't have a big impact on our expectations this year. This year remains intact with or without those, and then, just another thing, as I say, it cements the foundation going forward as I mentioned in terms of just our proof points around the sustainability of incremental sustainable profitable market share growth.

Okay. And any update on the progress of the CEO transition? Thomas Klein - President, Chief Executive Officer & Director: Yeah, I think we've commented as much as we ought to. We said we had a window here that we feel comfortable with and we're working through that process.

Okay. And just last one for me, I mean I know you guys don't normally breakout Solutions between Airline and Hospitality, but anything you've been qualitatively – you can tell us in terms of relative size and growth rate, and just kind of given especially all the rapid growth in Hospitality recently? Richard A. Simonson - Chief Financial Officer & Executive Vice President: Well, we've broken out those in our K and you can see those and do the – we've got the math of that of what last year was and, again, as we said, in overall Solutions growth, we expect the Hospitality to be growing faster than the average of those two and that's the case. So everything intact on there, nothing to add from what we've talked about before, Jason.

Okay. Very good. Thank you. Thomas Klein - President, Chief Executive Officer & Director: Appreciate it.

Next, we'll go to Jed Kelly with Oppenheimer. Jed Kelly - Oppenheimer & Co., Inc. (Broker): Great. Thanks for taking my question. On the macro environment, is there a difference between business and leisure travel trends, and what business, in particular, is some of the softness more of an issue of people paying down on overall ticket value instead of suspending trips? Thomas Klein - President, Chief Executive Officer & Director: Yeah, well, the answer is yes. We see more of a softness on the business travel side. And I think there's been softness in segment specific areas. You certainly have seen now a multi-year softness in the energy sector where I would say the trips went away not looking for cheaper fares. I think companies always look for the best available fares on the trip that's needed, and in our world, doesn't matter whether they – in fact we want to help them find the best available fare for the trip. So we're not sensitive to those price fluctuations on the Airline side. We get paid on a per booking basis. But energy sector trips went away; in the financial sector, trips have also gone away. So yeah, there's been a lot of cost-cutting as banks and – banks in particular had earning shortfalls and they cut cost and travel is one of those expenses that is early in the queue when broader cost-cutting is going on. So that's primarily the big sectors that we've seen, but in the U.S., it's been soft now for quite a while on the business travel side. I think that flows into the big corporate markets around the world as well. So not of anything new there, I think the only – the new thing around the macro is, as Rick mentioned, a pullback in capacity. Capacity will still grow, but we see Airlines pulling back some of that capacity growth that they forecasted coming into this year. Richard A. Simonson - Chief Financial Officer & Executive Vice President: And Jed, this is Rick. On the leisure side, yeah, there is good growth and particularly in North America market, you're seeing the dynamic that we talk about in the businesses. Airlines are using price selectively on markets to keep their planes very full. So you see the load factors continue to be very high. They use the price particularly primarily on the leisure to stimulate that demand. Again, that doesn't flow through to us, because we get paid on a per booking fee and that's the beauty of this model. And we're seeing that work, and we pick that up through our great position, for instance, like Expedia, the biggest air travel booker in North America and they pick up a leisure and they also have a business side, Egencia. So we see it both ways there. Jed Kelly - Oppenheimer & Co., Inc. (Broker): Thank you.

Next, we'll go to John King with Bank of America.

Yeah. Thanks, guys and good morning. Quick question on Abacus if I can, can you just update us there in terms of how the integration is going and any sense around I guess the like-for-like bookings growth you're saying there, I guess, historically, Abacus lost a little bit of share before you acquired it, have you been able to stabilize that at all as of yet or just some comments around that. Thanks. Thomas Klein - President, Chief Executive Officer & Director: Thanks, John. This is Tom. Yeah, the operational integration is largely complete. We have some continued things that we have to do, but for the most part, I think the big chunks are complete. And we've been extremely pleased with the go-to-market side and our ability to manage customers and sell in the market. We saw share gains in the first quarter. We've held steady here and we believe that we will see future share gains there. So I mean I'd like to have the same steady growth in market share in Asia-Pac as we've had in EMEA, that should be our expectation over time. And I think we have – our view has been that we have even more opportunity there, because we knew that the joint venture had some weaknesses and how went to market – and the consistency of how they went to market across the geography. So we feel very, very good about our position there. I mentioned these five customers I mentioned are global customers and we expect, in some cases, to have the growth be in that Asia-Pac region. We have a little bit of work to get it done, but we expect to see the growth there.

Great. Thank you. Thomas Klein - President, Chief Executive Officer & Director: Thanks, John.

Next, we'll go to Matt Broome with Cowen & Company. Matthew Broome - Cowen & Co. LLC: Hi, thanks for taking my call. It sounds like you're very positive about the opportunity for crew management. Could you maybe discuss the competitive landscape for that product and when you think it might become a meaningful revenue stream? Thomas Klein - President, Chief Executive Officer & Director: Yeah. I mean we're already the leader in space. I mentioned it's about a $250 million TAM in the crew area, and we started – we had very good traction. We talked before that Singapore Airlines is our large customer in the Asia-Pacific region. We've had a number of Asia-Pacific deals coming behind that including Garuda in Indonesia, Lion Air Indonesia, we have some other business that we'll talk about as we get further into this quarter that will close in the Asia-Pac region. We've had North American business closed recently. From a competitive landscape perspective, there are a lot of legacy crew systems out there. This is still a solution that in many cases the biggest airlines in the world is sitting in a very legacy environment. Airlines don't like to touch the crew system necessarily, because there's this issue, as I mentioned, very complex, it's driven by a variety of work rules that come from governments, global regulators, as well as work rules driven by contracts. So it's a complicated area, and it impacts big part of your cost base and a big part of your employee base. So changing it is not simple, but as I said, we're benchmarking, in some cases, two times or three times better than some of the legacy benchmarks out there. So we expect to get big traction here in the market. Competitively, we have the best solution in the market; we've validated over and over again in the sales process. And I'm just very bullish. Like we mentioned this morning, as an example, when you're benchmarking two times and three times faster than competitors and can save an airline days of an operational recovery, the dollars in that cost justify the purchase of the solution and the cost of the change pretty easily if we do our job in teeing it up with the airlines. So very bullish on it. We'll see revenue growth there this year and certainly into next as we announce bigger – not just diversity and regional deals, but I think bigger and bigger carrier deals. Matthew Broome - Cowen & Co. LLC: Okay, great. And I suppose just in terms of the Trust, could you just give us an update on how the integration there is going and is it still on track to contribute $40 million of incremental revenue this year?

Hey, Rick, this is Matt (51:08). The answer is yes and yes, all good. Matthew Broome - Cowen & Co. LLC: Perfect. Perfect. Thanks very much. Thomas Klein - President, Chief Executive Officer & Director: Thank you.

Next, we'll go to Abhey Lamba with Mizuho Securities.

Yes, thanks. This is Parthiv sitting in for Abhey. Just a follow-up on a previous question. The incremental CapEx for the year related to Travel Network, I think you mentioned that the incentive rates have stayed about the same. Can you give us any additional insight into what that marginal spending in 2016 entails? Thomas Klein - President, Chief Executive Officer & Director: Yeah, I mentioned – this is Tom. I mentioned that as we renew these deals, we look for opportunities from our customers for growth. Sometimes that's how we can serve them better, new functionality, sometimes it's what we need to do to take them into a new market, and this is a little bit of both of those. There's some deals where we have very big upsides to move business our way based on some requirements that our customers talk to us about. In some cases, it's acceleration of roadmap. So it's not necessarily new things, but things that we're pulling in quicker to get at these new bookings quicker. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Yeah. This is Rick, Abhey – excuse me, Parthiv. It will enhance our overall offering. It's not just specific to this new customer win that's driving the acceleration. It benefits the whole Sabre Red Workspace platform.

Okay. Great. Thank you. Thomas Klein - President, Chief Executive Officer & Director: Thank you.

Next, we'll go to Brad Erickson with Pacific Crest Securities.

Hi. Thanks for taking my questions. Just a couple follow-ups. You mentioned you're seeing some of these airlines give on price in certain markets to maintain load factors, but obviously, calling out an overall sort of more muted bookings environment. So I guess the question is, are you seeing any elasticity associated with those pricing actions by airlines or is that something that still maybe on the come? Thomas Klein - President, Chief Executive Officer & Director: Look, I think the industry has a long-term capability to figure out how to fill seats with low prices. I think the ebbs and flows of that varied by market, in some markets, airlines have held onto price a little longer than we expected them to. That was true coming into the summer. So we are seeing price stimulate demand in other markets. Now, but overall, we've talked about a relatively low growth macro, and that's what we're seeing. But I do think as airlines continue to add capacity, which again, they are doing, just at a slower rate than we expected, they will use price to fill up those seats. Richard A. Simonson - Chief Financial Officer & Executive Vice President: Brad, this is Rick. It's working as it should. They've got the financial strength and flexibility to do it. It's keeping their load factors up, yeah, it hits the PRASM a little bit, but all good, and for our business, it's working the way it should in the way we like it and gives us that both growth and stability.

Got it. And then, can we just get an update maybe on changes you've seen lately? Thanks. Thomas Klein - President, Chief Executive Officer & Director: Yeah. As I said earlier, our share year-to-date is up almost a full point. We expect that to continue to grow, and, again, I would feel like we can take the share globally, and we showed that in the first quarter where we had growth in all four regions of the world and that's our expectations that we're going to have an upward share, Brad, over a long period of time. Oh, and direct versus indirect, there's not really anything new going on there. We said that we felt like the direct and indirect moderate. And as I mentioned in my remarks, this notion around where ancillary revenue is coming from $60 billion of revenue last year, the large majority, when we say large majority, I mean up in the high 80-percentile low 90-percentile of revenues on the ancillary side are coming through the direct channel. Now, some of that is sold at the airport and will continue to be sold at the airport. So things like booking – I'm sorry, baggage fees, primarily are going to be an airport purchase. But as airlines look at what they've done with ancillaries on their direct sites and what they can do next, next isn't necessarily more products on their direct site, next is driving those products through travel agencies and sending travel agencies to sell them and pushing them through indirect channels. The technology is there to do that. There has to be some changes around how the airlines think about pushing those ancillaries through, because much of the indirect channel business has many in the ancillaries bundled in. You have people buying higher fare classes than already have many in the ancillaries bundled in, so they have to be more savvy about how they push those offers out. But we've built that technology to let them do that, and as they look at where the next chunk of ancillary revenue comes from and our conversation with them, they believe it's going to be in the indirect channel.

Got it. That's helpful. Thanks. Thomas Klein - President, Chief Executive Officer & Director: Thank you.

And that concludes today's question-and-answer session. I would like to turn the call back over to Mr. Tom Klein for any closing remarks. Mr. Klein. Thomas Klein - President, Chief Executive Officer & Director: I just want to thank everybody, again, for joining us and wish everybody a good remainder of what's left of the summer. We appreciate your interest in Sabre. And we look forward to seeing you face-to-face or talking to you soon. Thanks so much, and good afternoon.

And this concludes today's conference. Thank you for your participation and you may now disconnect.