Ladies and gentlemen thank you standing by. And welcome to the AT&T Fourth Quarter 2014 Earnings Conference Call. At this time all participants are in a listen-only mode and then later we will conduct a question-and-answer session, instructions will be given at that time (Operator Instructions).And I would now like to turn the conference call over to our host, Senior Vice President of Investor Relations for AT&T Mr. Michael Viola. Please go ahead sir.

Thank you, Lorry and good afternoon everyone. Welcome to our fourth quarter conference call. It’s great to have you with us today. As Lorry said I’m Mike Viola, Head of Investor Relations for AT&T. Joining me on the call today is Randall Stephenson, AT&T’s Chairman and Chief Executive Officer and John Stephens, Chief Financial Officer. Randall will provide some opening comments then close with 2015 guidance, John will cover our results and then we’ll follow that with a Q&A. Let me remind you our earnings material is available on the Investor Relations page of the AT&T website. Please call your attention to our Safe Harbor statement before we begin which says that some of our comments today maybe forward-looking. As such they are subject to risks and uncertainties, actual results may differ materially. And additional information is available on our Forms 8-K, other SEC filings and on the investor relations page of AT&T’s website. I also want to remind you that we are still in the quite period for FCC Spectrum Auction 97 or the AWS-3 Auction so we cannot address any questions about Spectrum today. So with that overview, I will now turn the call over to AT&Ts Chairman and Chief Executive Officer, Randall Stephenson. Randall?

Hey Mike. Thanks and good afternoon. Fighting cold around here Lorry may end up having to handle this call for us. But before John takes you through the results I want to take just take a couple of minutes and frame where we are. 2012 to 2014 was a really period of unprecedented investment for AT&T and for the industry for that matter. And during this period we built our LTE network to cover more than 300 million people, we expanded our U-verse broadband footprint to 57 million customer locations and we deployed fiber to 725,000 business locations. And at the same time we reengineered our mobile network and we now deliver the strongest LTE signal in the U.S. Now at the same time we've been aggressively repositioning our wireless customer base. We're giving our customers now a choice of moving away from heavy handset subsidies in exchange for lower monthly prices. And as a result our customer satisfaction continues to climb and defections continue to fall and you can see that by our record low annual postpaid churn rate. And we also delivered our best ever full year adjusted EBITDA service margins. We've also made a significant investment to migrate our wireline customer bases to the new platforms. At the end of 2014 76% of our broadband customers were on our fastest IP based platforms and our strategic IP based business services now represent a $10 billion annualized revenue stream and it's growing 14% when you adjust it for the Kinetica sale. And that brings us to 2015, because with these foundational investments largely behind us and several strategic investments announced to-date the ground work's now being laid for 2015 and beyond. And today our customers are expecting us to deliver video across all of our platforms whether it's…

Thank you Ran and hello everyone. Let me start with our consolidated financial summary which is on Slide 6. We finished the year strong with solid revenue and EPS growth in the fourth quarter. Consolidated revenues grew to more than $34 billion up 4.5% when you adjust for the sale of our sale of our Connecticut properties. This was driven by strong wireless growth as we continue to reposition our business model and adjusted revenue growth in wireline, thanks to gains in the Strategic Business Services and U-verse. For the full year we saw adjusted consolidated revenue grow by more than 3%. This helped drive strong EPS growth. Reported EPS for the quarter was a loss of $0.77 however when you exclude the significant items we disclosed in the last weeks, earnings per share was $0.55. That’s up nearly 4% from a year-ago. And if you consider that last year included about $0.02 of equity income from our divested America Movil interest, that percentage would be closer to 8%. Adjusted EPS was up slightly for the year even after a $0.06 impact from the sale of our America Movil investment. These adjustments include $0.94 of non-cash pressure from the year-end mark-to-market charge for our benefit plans. This was almost a reverse of last year when we had a strong mark-to-market gain. The actuarial loss was largely driven by a decrease in the discount rate but was partially offset by strong performance of our benefit plan investments. We also had a $0.25 non-cash pressure from the write-off of certain network assets which we told you about earlier this month. And we had $0.13 of cost associated with wireless integration, DIRECTV transaction cost and the loss on the sale of the Connecticut properties. Now let’s turn to our operational highlights starting with…

Okay, thanks John. We are going to provide more definitive 2015 guidance after we closed the DIRECTV transaction and we do expect that to happen in the first half of this year. Let me frame for you what you can expect from us this year, and I am going to start by talking about AT&T on a standalone basis, that is before our Mexico and DIRECTV acquisitions. What we expect to deliver is continued consolidated revenue growth, our adjusted-EPS growth will be in the low single-digit range. We will have expanding margins, consolidated wireless and wireline margins. We will also have improving free cash flow and improving dividend coverage. I think capital expenditures will be in the $18 billion range, the same as we got earlier and that’s thanks for the completion of a lot of the Project VIP initiatives. Now if we include Mexico and DIRECTV, the first thing I would want to note is that, we now expect to achieve ever higher multiyear synergies than we had communicated and anticipated we announced the DIRECTV deal. And so when you add Mexico and DIRECTV we anticipate no delusion to our adjusted-EPS, meaning our adjusted-EPS growth including Mexico and DIRECTV will be in the low single-digit range. We would like to 2015 a very different company. We'll be a company with the ability to deliver video to any device. We'll have a unique capability to integrate solutions across the diversified base of customers, geographies and technology platforms that are mobile, fast and highly secure and we will have a path to profitable TV growth. And we'll have a nice set of growing Latin American businesses positioned well in video and the mobile internet. So that’s where we are focused for 2015 and beyond. We are very excited about the opportunities that are ahead here for us. And so with that Lorrie I think we are ready to take questions.

[Operator Instructions]. Our first question from John Hodulik with UBS. Please go ahead.

Couple of strategic questions for Randall if I could. First Randall you’ve been able to put together a Mexican strategy at a very reasonable cost. Is that how we should expect in terms of Mexico given the expectation that AMX is going to spitting off a large piece of their business over the next year or so. And then if you could expand that you also have a large footprint now in South America, especially Brazil, what are your thoughts on that market? And then maybe the same for Canada, you talked in a recent release about a North American calling market. If you could comment on your view on the attractiveness of those markets, that would be great.

Sure John, thanks. I will start with your question on Mexico. And the American Movil asset sale has been one of those things floating out there, nobody really yet knows what that’s going to look like. And for us if we wanted to move into Mexico there were a couple of really unique opportunities in front of us. And just to try to flush out what was going to be required by American Movil to sell their assets seemed like an uncertain process. So we pursued use to sell and then with the Nextel Mexico assets what we have here is a set of assets, a spectrum portfolio that is really a robust spectrum portfolio, a nice cell site grid that will be a very nice place to start in a nice customer base. And so we have the makings for what we need for a very viable and strong Mexico strategy, where our America Movil sales assets are not and so that’s what we try to do is chart a path that that would get us into Mexico and get us a platform that would sustain itself. And we like these assets. We think these assets are more than sufficient to compete in Mexico and to go and compete aggressively and take share, so feel good about the assets we’ve got. On South America and Brazil, it’s too early to say John. What we have down there is the best pay-TV business in Latin America and it’s a business that continues to grow. It’s got a great brand name down there. DIRECTV has done a very nice job of assembling some nice spectrum in various Latin American markets where they’re doing a fixed wireless type solution for broadband, so there are number of markets where they have line of sight and the ability to bundle broadband with the TV product and their brand is strong enough that where they do that they have really-really good success. And so we’re actually anxious to get the transaction closed and leverage those assets in Latin America and it is, it’s a really good product, a really good footprint, a really good brand. So we’re excited about getting it. On Canada, I think right now we have about as much as we as a company can handle, we’re not prepared to start talking about going north of the border right now. We’ve got a lot to execute on the DIRECTV, get the deal approved and then we’ve got some serious integration efforts that we need to get busy on and then obviously building out Mexico is going to be a full core press for the next couple of years. So we’ve got more than we can chew. We’ve bitten off more than we can chew right now and you’ll see us focused on what we’ve consummated to-date.

We got to Mike McCormack with Jefferies. Please go ahead.

Randall, I guess just following on, you started off the conversation with the discussion around revenue diversification. What is your thought, just as you look at the US wireless landscape into 2015, with respect to how bad can it get from here, with respect to pricing and promotion. From AT&T's standpoint, is share loss okay? Are you willing to accept sort of lower-end share loss? And then maybe one for John, just thinking about free cash flow into 2015, if we ex-out DTV and the acquisitions, just if you could frame out the moving parts there to give us a little more comfort on the dividend payout. And also maybe just a comment on whether or not you have talked to ratings agencies about the appetite for how high leverage could go?

Yes Mike. In terms of the wireless business, when you look at 2014 there’s some aggressive pricing in the marketplace, but John I thought did a nice job of giving a good basis of compare to 2012. And so fourth quarter 2012, there were three competitors with an iPhone in the marketplace that was the last time there was a major iPhone launch. And our churn rate this quarter was very comparable to what it was in 2012 and this quarter there were everybody in the market had an iPhone and so the churn rates in the fourth quarter relative to what we've seen in the past were fairly consistent. When you look at the churn rates for the year in light of what I think was a very robust pricing environment we had our lowest churn rates ever. Now as we move forward what we’re really going to be focused on is the smartphone base. You’re going to see us continue to penetrate our customer base with smartphones. We added a million in the fourth quarter by itself. And you’re going to really see us focused more and more intently on the business side of the equation. And you’re seeing how we’re laying out what our segmentation -- of what our business segments will look like as we move into 2015. And we’ve had a lot of success really focusing on the business segment with our wireless products and bundling that with VPN solutions or security solutions. And as I mentioned in the opening, that when you put those two areas together, we’ll not put the two together, but when you look at our enterprise business segment both fix line and wireless combined, it’s growing 5.8% in the fourth quarter. That business segment -- that segment of customers churns…

So, Mike this is John and with regard to free cash flow let me frame it up this way. As you know we've announced -- we're committed to do about an $18 billion range for CapEx that's about a $3.5 billion reduction in the CapEx or improvement in free cash flow, that's step one. Step two is with all our free cash flow -- with all our CapEx spending and investment there comes some trailing expense. With a reduction in our CapEx we'll see a reduction to that trailing expense that will not only help us with margins but will also help us with free cash flow. So those are two major steps. The third one is we have invested significantly in our customer base with regard to Next. High quality receivables, the banks continue to be interested in them but we have a portfolio of those that we will be able securitize this year and we will see some turnaround and payback of cash for those that we haven't securitized, so we're optimistic about that. That will be pressured, those things will be pressured by the continued success of Next, so we may reinvest some of those Next dollars that we [indiscernible] this year, we may reinvest in our customer base, we will make those judgments as we go. And then we will see some increase in taxes but not significant but we will likely see some increases in taxes. With all of that being said we're very comfortable about the increasing free cash flow and improving dividend coverage guidance that Randall mentioned. We carefully talked to the credit rating agencies, work with them on our plans and try to be transparent with what we have going on. I would expect we will see some -- they have made some announcements on their own and I am sure they will make their decisions as we kind of go through the rest of this year and the final VTV integration plans that we have they will come out and make their viewpoint shown. But those -- and I would tell you those conversations have been productive and constructive but they are well understanding our strategies and our approach.

John, I guess without the crystal ball, but thinking about the phone on the ARPU level, is there a level of penetration of the value plans inside your base where we should start to see that more stable? I know in the past, you talked about maybe stability as we get into 2015 on various moving parts. But I guess just isolating phone-only ARPU, getting a sense for when that might be more stable?

Yes, so Mike as you know on the phone-only ARPU when I think about that I think a phone-only ARPU plus our Next billings and if you look at that then sequentially they grew. And the difference between the historical service ARPUs and the service ARPUs plus Next billings that gap has been closing. You guys can figure out the math but quite correctly when you sell almost 6 million phones in the fourth quarter on Next and you start billing those for the entire first quarter and throughout next year on a $28 or $30 a month basis you can understand our optimism about improving ARPU's as we define those and remember we are fine that way because that's what the customer is paying in cash every month. So we feel real good about where we're going and the where the process is, we're not predicting or giving a guidance with regard to when ARPU plus Next billings will be greater than they were in the prior year quarter. But we look forward to getting through this year and continuing the progress especially after having a fourth quarter where the sales team did an outstanding job of adding almost 6 million customers to the Next program.

Next we will go to Phil Cusick with JPMorgan. Please go ahead.

I guess the couple of things I want to hit -- one, if you could just clarify guidance. Is guidance to revenue and EPS growth, really just if we pull Connecticut out 2014, and, if so, what are the base revenue and EPS numbers?

Yes. Maybe -- we'll pull out Connecticut as you said we're not giving detailed analysis of the product line or sub products but your assumption Phil that it is without Connecticut is correct that is the base line.

Okay. Thanks, John. And then second, if you could talk about Next, 58% in the fourth quarter. What's going on in distribution? Are you going to expand that further? And do you expect a working capital drag in 2015 to be larger or smaller than 2014?

Yes. So the Next sales go like this, in our company owned stores, in authorizations great performance more than 80% nearly 90% as we mentioned, great take rate in a busy fourth quarter. Quite frankly on the large national retailers and the manufacturer owns retail stores the take rates were smaller but in the fourth quarter they had a lot of activity for us, they sell a lot of our phones, a higher proportion of fourth quarter because of the holiday season than any other quarter. And so we're optimistic about Next take rates increasing overall through the year and we're also optimistic about working with the national retailers and the other retailers to provide them additional support on how to sell Next and how it works. So we're still real positive about Next and believe that we will get the number of customers on the non-subsidy plans in line with the number of customers on Next plus bring our own device. So we are really moving directly out of the subsidy business, that’s a good thing long-term and short-term. With regard to the -- if free cash flow impacts will have the flexibility to monetize, we expect to have the flexibility to continue to monetize large blocks in these securitizations, it's worked very well. The banks continue to have very much interest. And as we stated before we want to continue a regular pattern of doing this so that we build the history for this out the -- that will keep us with flexibility and financing going forward. I would suggest you that the activities we have going on now are not intended to be looked at to generate cash flow in out of them in, in out of the sales to pump up cash flow in any way shape or form, it’s really more of just a prudent management process throughout the year, we'll have flexibility to push forward or pull back to depending upon continued interest rates, continued attractiveness from the banks, and so forth, but so far the process has gone extremely well. We have been very pleased with not only the demand but also the financial terms.

We'll continue to be confident this Next take rate [indiscernible] as John said in our retail channel we are now hitting 90% it’s a learning curve. People learning how to sell this and the mechanics and the process for doing a handset financing program. We then moved it into our agent channel which is a very extensive agent channel. In the beginning it was not very impressive and the agent channel is now beginning to perform at levels that look like our retail channel. And so then you move into the big box retailers, it will follow a similar curve. And we come to the holiday season and John mentioned it then they are pushing volumes and this takes a little bit more time to sell a handset that's financed rather just one in a box. And so it’s just going to be a learning curve, and we are going to stay patient but we actually feel very good that the numbers continue to move in the positive direction.

Thanks we go to Simon Flannery with Morgan Stanley. Please go ahead.

Randall, you talked a little bit about DIRECTV. Could you just give us a little bit more insight into the deal process? The 180-day clock expires in March. I think you referred to a first-half close, so how that's going? And any updates on the synergies? I think you talked about higher numbers. Is that content synergies? Is that more bundling synergies? Is that something that's going to come in early on, versus later? And I think you also talked about video to any device. I know Verizon has talked about an over-the-top rollout in mid-year. So is this something that you are going to have a similar type offering this year? And is that contingent on the DIRECTV close? Thanks.

First of all deal process, you nailed when the 180 day clock is running again, but obviously there is a legal challenge going on between the content providers and the FCC and that’s kind of the big unknown in our process right now. We are hopeful that the two parties the FCC and content folks can get that deal settled in short order. I believe there is court proceeding let’s do here soon that will help to determine the pace in which that progresses. But even with that Simon, we are still fairly confident this thing gets done first half of the year. And so I can’t get any more refined that because of this issue. And so this issue would be the only issue that will cause a delay of the 180 day clock to our knowledge right now. As it relates to the synergies, it's a fairly predictable formula with us and we do these large scale deals and when we are doing the deals we tend to be fairly conservative. And we have obviously have begun with the DIRECTV management team some forward discussions and getting to a level of detail that’s appropriate within the confines of the DOJ review and so forth. And so we are starting to see details on the channels and then channel costs and so forth. And as a result as you start drilling down through it, it's fairly much across the board we are seeing better opportunities and what we baked into the original deal economics. And so that’s why we are feeling pretty confident that we will exceed the merger synergies that we announced at the time that we did the deal. And across the board there are looking good. There are even revenue synergies, when you have 20 million…

We go to Joe Mastrogiovanni with Credit Suisse. Please go ahead.

A couple follow-on questions, if I could. John, if there was an attractive opportunity in Latin America, maybe something sizable like America Movil is expected to be, given your funding requirements over the next few years, do you think a transaction like that -- you could do a transaction like that and stay within a comfortable leverage range? Or should we expect some equity component for a sizable transaction? And then, Randall, part of the strategy of allowing the base to move to new pricing, with the help on the churn side, and while we saw the benefits of that over the prior two quarters, we did see churn return to a level similar to two years ago, as you pointed out. Are you comfortable with the current pricing strategy in place right now? And do you think this fourth quarter was more of a one-time-ish in nature, or should we expect churn to remain at elevated levels as we move throughout 2015?

I’ll answer John’s question on Latin America. The America Movil thing is just too uncertain even answer your question on and I will say it again, we’ve got all we can handle right now in Mexico. And we’re going to be focused on getting Nextel International closed, integrating that network, integrating those customer channels, integrating the distribution channels and getting ourselves scaled in Mexico, so anything else is just kind of speculation and then probably isn’t worth conversation at this point. In terms of churn, I would tell you I’m comfortable with the performance we had in the fourth quarter as it relates to churn. And I’ll say it again, when we compare it to two years ago which was the last major iPhone launch and only three national carriers carrying the iPhone to have a comparable level of churn, with the kind of pricing moves we’re seeing in the marketplace versus two years ago, I think that’s pretty good performance. And this performance for the quarter, we’re comfortable with. We are as I mentioned before, really focused on that area of our customer base that tends to have the lower churn and that is our business customer base and the high-end consumer customer base where we’re experiencing the churn. As John said in the feature phone side of the house and we will address that with our Cricket platform. And so right now who can call where pricing goes in this industry? I haven't the slightest idea. It moves, it’s very volatile, but right now we’d like the value equation we have in the marketplace. We have a customer base that demands reliability, that demands speed and that demands quality. They demand a very sophisticated consumer channel and business channel, we have probably the most sophisticated business channel in the industry for B2B. And we think it’s very important and we think also that that B2B customer segment is more and more demanding security solutions integrated all the way through the cloud with our net bond strategy and that’s proving to be a very powerful combination in the marketplace. So that’s where you’ll see us focused and like I said I can’t predict where pricing will go.

And we’ll go to David Barden with Bank of America Merrill Lynch. Please go ahead.

Maybe first one, just Randall, obviously your views have been expressed on this Title II as a way to get to the net neutrality issue. But I guess from the investment community standpoint, are you of the view that there is going to be really anything different about the business, in terms of the business you do, or how you do it? Or are the investments you are making kind of on a middle- to long-term basis? If you could kind of talk us through the investment side of that equation. And then, John, just a question on the write-down of the copper plant. Could you talk a little bit about what that was, where it was, and what kind of expectations we have for that going forward? Thanks.

Sure Dave let me give Randall a break and I’ll take the copper question first. We went through a study and in our business there is active payers that are copper payers that are connected to customers and serving customers. There’s spare payers in that network that are available that are in great working condition and available to be used if needed. And then there are what we would consider dead payers or payers that need significant repair work that are not connected to any customers, they need significant repair work and investment to make functional. We did a detailed study across our network by our network engineers in conjunction with that, identified marked and made the decision to abandon those ineffective payers or what we would -- what the [indiscernible] dead payers. We have plenty of capacity to serve our customers with our active payers and spare payers, so we don’t expect any limitations on that. That’s how we went through the process it was a very extensive process that was a very unusual process to go through. We don’t expect any further write-offs like this we're not aware of any and we just felt it was appropriate to recognize this fact anybody has found our business has seen the change in our access line customer base over the last five or six years could understand that we would have peers that would be inactive and in this case ones that were not economical to activate not to mention the fact there is not demand for us to make that [indiscernible]. So that's the background on just across our traditional wireline footprint.

A favorite topic title 2.

Sorry Randall.

Look I will address it from a couple of perspectives. First net neutrality, what this debate started out as to be pursuing was how do we protect net neutrality, a neutral internet. And I would tell you I am not -- I don't know if anybody in the industry who really argues that we shouldn't have net neutrality and indeed the President laid out four principals for what that meant. And we look at those four principals and said we're okay with those. Those four principals is what resulted from all of this was the FCC were given authority to enforce those four principals, it has no bearing or impact on our investment decisions none whatsoever. What causes us pause is if the way you effect those four principals is by categorizing the internet and wireless services as title 2 communication services that's a different deal, alright and that's something we have to say what does that mean and whether the implications of categorizing these services as title 2 services to our industry. And the example I give is we're right now trying to obsolete our old legacy telephone services moving to IP or to all wireless and there is a very specific process one has to go through to obsolete those services and replace them with the new advanced services. And we're working through that with the FCC, it's a very collaborative process it works but it takes a lot of time to make that happen. And we think that we might be able to get to a point where we can obsolete these services or begin replacing them with the new services by 2020 that's an aggressive time line. The idea of beginning to put our wireless services and our broadband products under those categories and subjecting ourselves…

And we will go to Amir Rozwadowski with Barclays. Please go ahead.

I was wondering if we could chat briefly about your commentary that post the completion of some of your pending acquisitions, and some other initiatives that seem to be on the table, your debt coverage ratio may go over that sort of 1.8 times level. Could you perhaps give us a sense on where that could go? And, perhaps, what is your priority maintaining your near-term credit rating? It sounds like discussions with credit rating agencies have been constructive. But I was hoping to get some clarification, if possible.

I will take that if you look at the Direct TV transaction based on some of the most recent published financials you will know that there is a cash fees in that transaction that would approximate about 15 billion and I think if you go back to the last financial statement their gross debt level could be at $18 billion to $20 billion level that would be the debt we would be adding on as well as any impacts from closing Nextel and [indiscernible] as compared to our first quarter. And then we've got some other -- as we mentioned we can't talk about the special options and so we won't do that, but will have other impacts from matters ongoing that will impact our debt range. With regard to that it is very conceivable that our net debt to EBITDA ratio would go above two, I think that's assumed and possibly in somewhere in between the 2 to 2.5 range, I know that’s a great wide range but that’s where we feel comfort right now stating in. Those are the kinds of levels of debt that we would expect that could occur once we close all the transactions. What we would then focus on doing is because we will have accretive free cash flow after the DTV transaction as we said before we would take the excess cash flows after dividend and use that to commit that to paying down debt as quickly as possible. We suggested over the course of the three year cycle that ought to get us back to what is more traditional levels, for us that’s a 1.8 times net-debt-to-EBITDA. And if you look at our current cost of borrowings, some of our recent transactions but quite frankly our entire portfolio today, we have after…

Thank you very much, John. And just one additional follow-up, if I may. In addition to your significant acquisition activity, you folks have also been successful at monetizing some non-core assets over the last 12 to 24 months. I was wondering if we should consider this element of your strategy, and how it may fit into your priorities for 2015.

Yes Amir, it’s a great question. I am not going to comment on the specific items. I think we started talking about monetization assets back three years-ago. I think that was the first major transaction we had done was a Yellow Pages transaction. So if you think back from that timeframe to today, you understand that -- I mean you clearly understand the multibillion, tens of billions of dollars we generate, I will say this we have a $300 billion of assets on our balance sheet and we have a history of being Fortune 100 type publically traded companies, we are done yet. We have an opportunity to do more. We will continue to evaluate and as management we have an obligation to maximize returns on our assets. So getting to high utilization and high results that’s part of our responsibility, we will continue to focus on it. Though the balance sheet as large as ours it would be inappropriate to collecting the things are complete. There is always opportunities.

And that is from Brett Feldman with Goldman Sachs. Please go ahead.

So, earlier, Randall was talking about lessons learned as you move up the curve with Next. One of your competitors, T-Mobile, has learned that they can change the way they provide credit to their customers. They are placing a higher priority now on payment history than some of the traditional credit metrics. Have you learned the same thing? And is there any change in the way you are extending credit to your customers as they adopt Next? Thanks.

I don’t think there are lessons learned, I think all of us over the years in this industry know that you know your customers better than anybody else does. And customers that have been with you for a period of time regardless of what their credit scores are you tend to treat differently. And we have for many years done that whether it be on the fixed line side or broadband, U-Verse customers who pay us well that may have lower credit scores, we have actually gone ahead and extended them services like U-verse which requires significant upfront investments and so forth. You are doing on the business side of the house too, you know your customers well. And so you are willing to invest in your customers that you know who may have credit scores that are weaker than what a new customer you will be willing to do with the new customer coming with a low credit score. So there are not any new games in this business, we have all been playing this credit scoring game for a long time. It’s a fairly predictable process, we know our customers well, we know when we tweak credit policy, what to expect and within what timeframe to expect that reactions. And it’s actually gotten fairly mechanical and arithmetic to be quite honest with you. So I don’t think there is any new science out here on this.

And are you finding that the banks that you are working with are recognizing those lessons that you have learned in the way they finance your receivables?

Absolutely. We have gotten very high, that’s one of the reasons why we have high demand in a securitization process and we are able to get the pricing levels that we are able to get. So they recognized that and quite frankly all of you know, most of you go to our financial statements and our provision for bad debts and understand with a company that has over $130 billion worth of revenues, you can clearly see just how effective we are at managing -- particularly in a difficult economy how effective we are in managing our receivables. The team has done a very good job across the board business consumer through processes just like Randall described.

You bet. Thank you Brett. Thank everybody for joining us and taking the time to listen in on the call. As we articulated at the beginning, we feel very good about where we’re going in 2015. As we get to the end of 2015, we’re going to be talking about a very different business and a very different company and we’re excited about it and look forward to working with you over the course of this year. So thanks again for joining us.

Thank you all very much. Take care.