Joe Wilkins - Investor Relations Officer David P. Abney - Chief Executive Officer & Director Richard N. Peretz - CFO, Treasurer, Vice President & Controller Alan Gershenhorn - Chief Commercial Officer & Executive VP James Jay Barber, Jr. - President, UPS International Myron A. Gray - President-US Operations & Senior Vice President

Nate J. Brochmann - William Blair & Co. LLC Thomas Wadewitz - UBS Securities LLC Ben J. Hartford - Robert W. Baird & Co., Inc. (Broker) Tom Kim - Goldman Sachs & Co. Kenneth Scott Hoexter - Bank of America Merrill Lynch Kevin W. Sterling - BB&T Capital Markets J. David Scott Vernon - Sanford C. Bernstein & Co. LLC Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker) Chris Wetherbee - Citigroup Global Markets, Inc. (Broker) John Barnes - RBC Capital Markets LLC Jack Atkins - Stephens, Inc. Jeff A. Kauffman - The Buckingham Research Group, Inc. Scott A. Schneeberger - Oppenheimer & Co., Inc. (Broker) Brandon Robert Oglenski - Barclays Capital, Inc. Scott H. Group - Wolfe Research LLC Kelly A. Dougherty - Macquarie Capital (USA), Inc. David G. Ross - Stifel, Nicolaus & Co., Inc. Robert H. Salmon - Deutsche Bank Securities, Inc. David P. Campbell - Thompson, Davis & Co. Matt Troy - Nomura Securities International, Inc. Bascome Majors - Susquehanna Financial Group LLLP

Good morning. My name is Steven, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the UPS Investor Relations Second Quarter 2015 Earnings Conference Call. All lines have been placed on mute to prevent any background noise, and after the speakers' remarks there will be a question-and-answer period. Please note we will take only one question from each participant to accommodate more analysts during the call. Thank you for your cooperation. It is now my pleasure to turn the floor over to your host, Mr. Joe Wilkins, Investor Relations Officer. Sir, the floor is yours.

Good morning, and welcome to the UPS second quarter 2015 earnings call. Joining me today are David Abney, our CEO; Richard Peretz, our CFO; along with International President, Jim Barber; President of U.S. Operations, Myron Gray; and Chief Commercial Officer, Alan Gershenhorn. Before we begin, I want to review the Safe Harbor language. Some of the comments we'll make today are forward-looking statements that address our expectations for the future performance or results of operations of the company. These statements are subject to risks and uncertainties, which are described in detail in our 2014 Form 10-K and 2015 10-Qs. These reports are available on the UPS Investor Relations website and from the Securities and Exchange Commission. As a reminder, in the second quarter last year UPS completed the transfer of post-retirement liabilities for certain Teamster employees to defined contribution Healthcare plans. As a result, the company recorded an after-tax charge of $665 million, reducing second quarter 2014 diluted earnings per share by $0.72. In our remarks today, all quarterly and full-year comments and comparisons will refer to 2014 adjusted results. In addition, we will discuss UPS' free cash flow, which is a non-GAAP financial measure. The webcast of today's call along with a reconciliation of non-GAAP financial measures are available on the UPS Investor Relations website. And just as a reminder, please ask only one question, so that we may allow as many as possible to participate. Thanks for your cooperation. Now, I'd like to turn the call over to David. David P. Abney - Chief Executive Officer & Director: Thanks, Joe. Good morning, everyone and welcome. We're pleased to share results of another solid quarter and I want to thank the UPS team for their efforts. This is the second consecutive quarter of double-digit EPS growth, which demonstrates we…

Our first question will come from the line of Nate Brochmann of William Blair. Please go ahead. Nate J. Brochmann - William Blair & Co. LLC: Yeah. Good morning, everyone and thanks for taking the question. I'm just wanting to talk a little bit on the domestic side with the comments of things slowing a little bit. One, is that relative to just expectations for the start of the year or is something really going on currently? And how do you disassociate that from whether any of your other customers might be doing a little bit more themselves and if that's taken an impact? And if indeed you believe that slowness to continue for the year, will that hurt any of your expectations going into peak season in terms of the benefits on profitability, particularly expectations for greater route density both real and synthetic? David P. Abney - Chief Executive Officer & Director: Okay. This is David. That is a heck of a question. And I will start the answer and then I'll hand it over to Alan. He can talk a little bit about it from a customer standpoint. But to get to the economy, recent economic news has just been mixed and it's caused us to be cautious. The continued strength of the U.S. dollar and I think this impending rate hike by the Fed appears to be holding back some U.S. growth. If you just look at in January, the GDP forecast we thought was going to be about 3.1%. Now, the thinking in July is about 2.3%, so let's say, a pretty significant decrease. Retail has been uneven and we saw it soften a little bit in June. And so, that's the reason that we're cautious. Obviously, we had a good first quarter, a good second quarter, but a little bit cautious about the U.S. economy. Alan, you want to talk a little bit about it from a customer standpoint? Alan Gershenhorn - Chief Commercial Officer & Executive VP: Yeah, Nate, a couple of things to keep in mind. Remember back in the second quarter of 2014, we've got some tough comps. We had some of our best Ground growth in 2014 for the second quarter, up above 8% growth. So, when you look at the two-year growth comparison, we're up about 9% versus 2Q 2013. Also, we had a very large catalog shipment last year that was about a 50 basis point positive impact on the second quarter last year. While the overall growth issue was just shy of 2%, we've had some really strong Deferred Air growth at 14% and even with lapping some 60% year-over-year growth on SurePost, for the first half of 2014 we still had excellent SurePost growth at 8%. Thanks.

Our next question will come from the line of Tom Wadewitz of UBS. Please go ahead.

Yes, good morning. Wanted to ask you on the pricing side and just I guess a question on how that came through in the numbers for Ground yield. I know there was fuel surcharge impact, but if I look at Ground yields were up about 1%, 1.1% in second quarter, they were up 3.1% in first quarter. So, I don't know if you could give some color on why there is that deceleration and if the core price still looks pretty strong? And then in terms of any thoughts on peak season surcharge whether that's likely at this point or whether we should be cautious on our view on that? So, on the broader pricing front? Thank you. Alan Gershenhorn - Chief Commercial Officer & Executive VP: Yeah. So, on the Ground you can see the RPP showing plus a little over 1%. And what you've got there is a fuel surcharge drag of a couple of hundred basis points that's putting a drag on that as well as the large customer versus small customer mix. And obviously, we're growing our SurePost faster than our Ground residential. And then you've also got the omni-channel there, where we've got some shorter zone. But, on the base rates, we are absolutely at the high-end of the 2% to 3% range and our tactics of creating value for customers along with the revenue management associated with the GRI, dim weight and other value-added asset stories are all working. And we're obviously very, very pleased with the yield. As far as peak goes, we're certainly focused on improving the residential profitability year-around. And like I said, we're at the higher end there, the 2% to 3%. And that's going to have an impact on residential and peak. And we are going to continue to address peak on a customer-by-customer basis, really understanding what their needs are, the value of the solutions and market conditions and price them accordingly.

Next question will come from the line of Ben Hartford of Baird. Please go ahead. Ben J. Hartford - Robert W. Baird & Co., Inc. (Broker): Yes, thanks. Maybe, Richard, this is probably directed to you since this is the first time at the helm for you at the call. On the heels of some of the recent industry news speculation with regard to your acquisition strategy, specifically targeting a large truck broker, I won't ask you to comment on that specifically; but maybe generally speaking, can you provide some context to your perspective on how you view the business from an acquisition standpoint? What are some targets or goals and really how do you view your industry-leading return on invested capital? And could your focus change a little bit to broaden the scale or opportunities as it relates to acquisitions going forward, some perspective there would be helpful? David P. Abney - Chief Executive Officer & Director: Okay, Ben, this is David. I'll take the first part of that question. And as you accurately predicted, I'll turn it over to Richard. But really, first, when it comes to any rumors that may be out there, obviously, we can't respond to rumors as you know, and UPS does not discuss M&A activities just due to confidentiality and competitive reasons. But, getting back to the more general understanding of what we are looking for, it's really in three different areas. First is, what are new opportunities that would allow us to expand our portfolio and allow us to give additional value to our customers? We also look at geography, are there certain geographies that could strengthen our offering? And then third, we look at what capability does our network presently need that we don't have? And where there's an adjacent industry or whether it's a different service offering. So, that's in general, the way that we look at it. Richard, do you want to talk a little bit about the ROIC and our expectations? Richard N. Peretz - CFO, Treasurer, Vice President & Controller: Sure. So, when we think about the acquisitions, we look at not only how the business stands alone, but also as we integrate into our business what it does? And so, obviously, over time what happens with our acquisitions is that the ROIC becomes closer to the characteristics of the UPS ROIC as it expands the capabilities David talked about. And such as Kiala, where it started out as a standalone with a very small ROIC, and now its value to the UPS network is much greater. So, we look at it is growing it into the UPS network, also increases and is important to the acquisition – it takes on the attributes of our financial discipline as well. Thanks for the question.

Our next question will come from the line of Tom Kim with Goldman Sachs. Please go ahead. Tom Kim - Goldman Sachs & Co.: Good morning and thanks for your time. Congrats on the quarter. I wanted to, obviously, we appreciate your confidence guiding toward the higher end of the range. It certainly seems that you're bucking the trends on global Air Freight trends; and frankly, indicators that we've been looking at had been deteriorating, so it's great to see you guys outperform there. And I know we've talked previously about how Europe is driving all of that. My question is around China. As you know, concerns around to that market have only increased recently with a market selloff. And as I think about your business, I believe, it's predominantly exposed to China exports and if that's fair, I'd certainly love to hear that affirmation. But, I am wondering to what extent you can provide color around your exposure to China imports and the domestic market, which obviously would be more impacted by a slower China. Thank you.

Tom, this is Jim. I'll pick that one up. I think, obviously, the last couple of days in the market have been unique, to say the least. I think we look at that, though, as really more of a domestic phenomenon as opposed to really aligning to our business. We still are firmly in the export-import business in China. Most recently, we're up about 5% to 6%, we continue to focus on the middle market. And so, we continue to be in China for the long-term. So, really those factors that are going on as they moved to more of a domestic GDP consumption, we have to keep an eye on it, but our business is aligned to grow almost regardless of that through the import-export and the Supply Chain and Forwarding business. So, that's the kind of what we look at it right now. Tom Kim - Goldman Sachs & Co.: Okay. Great. Thank you.

Our next question will come from the line of Ken Hoexter with Merrill Lynch. Please go ahead.

Great. Good morning. Can you dig into the comments on the slowing B2C just a little bit, maybe flesh that out? Or is that a slowing overall market? Are you losing volumes to other modes? And I guess if you compound that with your thoughts on a slowing economy, do you now need to get out ahead of this and I don't know, cut costs, eliminate trade lanes, lower CapEx, is there anything you need to react at this point? But, I guess, primarily thoughts on the commentary around the slowing B2C? Thanks. Alan Gershenhorn - Chief Commercial Officer & Executive VP: Yeah, Ken, hey. This is Alan. I'll take that. We're certainly, we're about where we thought we would be. We think the economy was certainly slower for sure. The B2C pace, I think the secular trends are still in place; although, it is slow again, you've got to remember we had those tough comps from last year. I'd also say that, on the B2B side as a demonstration of e-commerce, the omni-channel and the returns are still very, very strong. David P. Abney - Chief Executive Officer & Director: This is David. Alan talked about the tough comps. You just have to look back and if you look at two years ago and compare what our volume is today, you actually see an increase of 9%. It's just that when you compare them to the comps of last year that you get a little bit different perspective. So, good question. Thank you. And, operator, we're ready for the next question.

Our next question will come from the line of Kevin Sterling of BB&T Capital Markets. Please go ahead. Kevin W. Sterling - BB&T Capital Markets: Thank you and congratulations on a nice quarter, gentlemen. You've talked about UPS Forwarding benefiting from improved market conditions and customer mix. Maybe could you expand a little bit more upon the improved market conditions commentary? Is that more of a function of better buy rates? Or is that in conjunction with maybe a pickup in volume? Just maybe a little more color around those improved market conditions you're seeing in Forwarding. Thank you.

Okay, Kevin. It's Jim. So, first let me start with the overall Forwarding results are really balanced. I'll get to the IAS specific in a second. But, when you look at the North America Freight network, ocean brokerage, NIF, they all had really solid quarters for us. We've told you guys back in 2014, we'd come into this with a very focused go-to-market strategy of the right tonnage, the right customers, and our balanced network. We did that. With specifics to the market right now, what's going on is from the way we see it, we got about 12% more capacity in the market than we thought. What that does is drop, obviously, the buy rates and it opens it up a bit. We think that will last about three more months, maybe two-and-a-half months as we come up into the retail peak season. At that point, we'll continue to adjust, but we did get some tailwinds. I would say, the majority of the results are really kind of because of the right focus, the right customers and the right tonnage in the network, the balance of that is some tailwinds on the market.

Our next question will come from the line of David Vernon of Bernstein. Please go ahead. J. David Scott Vernon - Sanford C. Bernstein & Co. LLC: Hi. Good morning, guys and thanks for taking a question. So, if we look at the leverage that UPS is getting in International, can you help us to understand what's driving the upside? I'm specifically trying to figure out, if it's the benefits from maybe better profitability in the longer haul, sort of cross-ocean package business? Or maybe you guys are just getting a lot more leverage on the high rates of intra-European growth than maybe would have expected? Just trying to sort of look at it from the inside out. Are you getting better growth out of the cross-ocean business or more intra-European?

Yes. I'll start with that. So, let me just say this. We talk a lot about Europe, but we also over the last year-and-a-half have really done some good work in Asia as well, largely around our intra-Asia network. David made some of those references in the opening comments. But, we really had to kind of get that intra-Asia network built up, after we built it to the right place and the team's done a great job. Europe continues to do very well. So, really, the Asia-Pacific that has intra-Asia and the trunks back to Europe and U.S. are performing very nicely. Europe, as we've said, it's about a balanced mix of product mix, yield mix, and then cost management on the back of the capital that we've talked about and putting an extra $1 billion of capital into that part of the UPS network. So, it's really a combination of those two. And then, I would say, at the same time, I would ask you not to lose sight of, as these results come out, we're also taking advantage of actually investing in emerging markets and continuing to expand as we said in opening comments, in some of the other capabilities. So, we're kind of blending it all together and that's kind of what you see in the bottom line results. David P. Abney - Chief Executive Officer & Director: You know, we do have, we do see a lot of strong momentum in our International business. And one of the key factors is definitely the pan-European network that we put in place maybe a few years before its time, before the market started shifting to a pan-European inventory replacement model. And now that that transition is happening, we've just got the right network in the right place, at the right time. And Jim and his team's just doing an excellent job with it. Thank you. And next question, please, operator?

Our next question comes from the line of Allison Landry of Credit Suisse. Please go ahead. Allison M. Landry - Credit Suisse Securities (USA) LLC (Broker): Thanks. Good morning. I was wondering if you could discuss the impact of fuel and lower buy rates in the Forwarding division that you saw on the purchase transportation expense line item. It looked like there was a more pronounced sequential decline as a percent of sales than the historical average. So, any color that you could provide with respect to this and maybe how to think about it going forward. Thank you. Richard N. Peretz - CFO, Treasurer, Vice President & Controller: So, I think I'll start by talking about the impact of fuel in total and then I'll turn it over to Jim to talk a little bit about the Forwarding group specifically. When we look at the total company and adjust for fuel, we're talking about a growth rate of about 1.5% versus what's reported. So, fuel this quarter had the biggest year-over-year change that we expect or that we've had in 2015. So, because of the large 300 basis points in Ground and 350 basis point difference in Air, it had a big impact on reported revenue and you see that in the revenue number. In fact, it's worth mentioning that we're pretty happy with where our revenue growth has been, but it's being masked by both fuel and currency. Those two combined would take revenue growth to almost 4%. So, there's something around the neighborhood of $700 million difference in reported revenue versus the commodities. Jim, why don't you talk about the Forwarding?

Yeah, Allison, the only thing I would remind you and come on the back of that was what I just mentioned a minute ago, and that is that we come at this with a very targeted approach. Last year, we grew effectively tonnage almost double-digits quarter-over-quarter-over-quarter, which obviously hits the top line. This one has been much more muted. It's about flat tonnage, year-over-year. But the product mix and the tonnage we're bringing in, you can see how it affects the bottom line as well. And as I said, or we talked about, that buy rate, we figure is down about 7% where we thought it would be coming into the year. That translates also to the bottom line and I've spoken how we see that going forward. So, that's kind of how we manage the results.

Our next question will come from the line of Chris Wetherbee of Citi. Please go ahead.

Thanks. Good morning. Wanted to touch a little bit on the guidance, specifically around the fourth quarter as you expect sort of a bit of a ramp back up to low-double digits on the domestic side. I guess when you think about sort of e-commerce customers and preparing for the peak season, you have about four months to go. I guess, how far through the process are you in terms of talking to customers, getting them prepared for what they might need to do from both an operational perspective as well as sort of a pricing perspective, as you're at this point in the game? I just want to get a sense of sort of how far you are through that process, maybe what else needs to be done as you go through the next four months in advance of peak? Thank you. Alan Gershenhorn - Chief Commercial Officer & Executive VP: Yeah. This is Alan. Our peak season planning for 2015 started right after peak 2014. So, we've been having discussions with our customers on the solutions that we need to put in place, the capacity planning, the visibility we need, the forecasting, and so on and so forth. So, this is an ongoing process that happens throughout the year. We don't discuss the individual customer pricing, but we do have comprehensive peak pricing initiatives underway to increase revenue from the customers that surge and ultimately drive significantly greater cost at peak. And this solutioning and pricing is really separate and distinct from our year-around revenue management and solutioning. And it's helping us better align our revenue with our cost. And now maybe, Myron, you want to talk a little bit about what we're doing on the operations side? Myron A. Gray - President-US Operations & Senior Vice President:…

Our next question will be from the line of John Barnes of RBC Capital Markets. Please go ahead.

Hey, thank you. Hey, just to follow-up on that, I mean, you mentioned capacity planning, I know last year you made a concerted effort to over-resource the network for a period of time to ensure the service kind of came through. How do you balance the capacity planning with some of the comments you've just made on maybe seeing some slowing in B2C, some signs that may be the economy is a little softer, retail has obviously been a mixed message? How are you walking through this process of kind of figuring out that capacity planning, resource planning when you've got this backdrop that maybe is a little softer than you anticipated? Myron A. Gray - President-US Operations & Senior Vice President: So, as Alan alluded to earlier, we've been collaborating with our customers since the beginning of the year and this is much even earlier than what we've done in the past. So, we're certainly going to stay close to what their projections are and we'll flex the system based on what we believe the volume pinch points may be. I also alluded to the projects that we have in place this year to expand capacity and if you'll remember last year, our pinch points were network-related and not delivery-related. So, we'll flex our drivers based on the capacity that we see and we believe that these expansion and capacity projects that we have in place will improve our flow through to the point that we can control our costs. Thank you.

Our next question will come from the line of Jack Atkins of Stephens. Please go ahead.

Good morning and thanks for taking my question. I was wondering if you could comment on the competitive landscape in the U.S. Ground segment. Given the Postal Service wants to become a bigger player with some of the larger e-commerce shippers and you're seeing certainly a more competitive dynamic among the regional players out there, what are you seeing as you try to implement these above-trend pricing increases? And are you seeing any disruptors in the marketplace given a more sluggish domestic economy? Alan Gershenhorn - Chief Commercial Officer & Executive VP: Yeah. The U.S. market has always been competitive, but I would tell you that where we're seeing the growth right now in the e-commerce area, nobody has a better solution out there than UPS with our e-commerce ecosystem, whether it's omni-channel or synchronized delivery solutions, returns, our SurePost and SurePost Redirect, UPS My Choice, UPS Access Point that Myron talked about. So, we're real confident in our ability to achieve our plans from both a top and bottom-line perspective. David P. Abney - Chief Executive Officer & Director: And one of the reasons that we're so confident, and this is David, is that the unique solutions that we continue to focus on that are going to help us not only during peak season, but throughout the year to remain competitive and to provide the value to our customers that are looking for Access Points, I think, is a great example that we get the benefits during the year. And this is something that started on an acquisition that we did a few years ago in Europe and now we're implementing it across the U.S. in over 100 cities. And these Access Points combined with UPS My Choice just gives us a real differentiator to offer the marketplace. So, thank you for the question.

Our next question will come from the line of Jeff Kauffman of Buckingham Research. Please go ahead.

Thank you. Thank you very much. A lot of my questions have been answered so let me follow-up more on the investment side. You're now rolling out Access Point, you had accelerated ORION, you're seeing a little bit of a softer patch domestically on the retail side. Have you given any thought to the capital spending for the next one to two years? Richard N. Peretz - CFO, Treasurer, Vice President & Controller: Jeff, this is Richard, thanks for the question. You know when we think about investing in our network, we think about the long-term benefits and we think it's important that we continue to manage this network and the highly integrated parts of the network for the long term. And so, as we look at what's happening with volume, there might be little tweaks; but overall, we're adding capabilities and enhancements that are going to help our customers for the long term. Thank you.

Thank you.

Our next question will come from the line of Scott Schneeberger of Oppenheimer. Please go ahead. Scott A. Schneeberger - Oppenheimer & Co., Inc. (Broker): Thanks very much. Over in the Supply Chain & Freight category, I'm just curious, could you elaborate a little bit on the Mail Services with distribution. And then as a follow-up, just Freight pricing in Freight if there's a little bit of slowing growth in the market, what you can do there? Thanks.

Yes, Scott, it's Jim. The Mail Services, as most of these products are designed to do is provide a solution to a customer that the other products in the portfolio don't. Obviously, it's, if you will, an asset-light business that we're glad we're in it. We'll continue to invest in it the right way. We've got a lot of customers that are using all of our products. And so, it's not one product versus the other. But obviously, we have the SurePost on the other side as well as Mail Innovations. But, it's a product that we are glad to be in and we plan to continue to invest in it and it just complements all the other products that we have for our customers. David P. Abney - Chief Executive Officer & Director: From our Supply Chain & Freight perspective overall, we are seeing good growth and had a good quarter. And we've got a good focus and expect that we will continue to see good results. Thanks.

Next question will come from the line of Brandon Oglenski of Barclays. Please go ahead.

Good morning, everyone. Congrats on the better quarter here. Richard, I want to come back to a near-term question, because I think it's important here, but can you comment on the FX impact in International's quarter? Because it would seem to me that if you're translating foreign currency into a shorter dollar, it would actually be negative on earnings. So, is there some hedge impact that we should be thinking about? And if I extrapolate your guidance in the back half of the year, it sounds like you're talking for a sequential deceleration in International margins. Is that the right way to think about it? Richard N. Peretz - CFO, Treasurer, Vice President & Controller: Yeah. So, let's first talk about currency, because currency really has an impact on the top line and the bottom line for UPS. On the top line, obviously, there's lower reported revenue as the dollar strengthened. And in the schedule, I had referenced earlier, there's about $320 million less revenue. On the bottom line, our hedges are protecting our profits, not creating profits, and the hedge allowed us to make sure our profit levels stayed the same. But, we did have about a $15 million drag for the unhedged currency and that's part of that unhedged currency drag that we talked about for the year. It had a minimal impact; but at the same time, there are currencies that are moving very quickly and the exposures aren't large enough for us to take a position on those. What was the second question? David P. Abney - Chief Executive Officer & Director: The second question was about the second half of the year. Richard N. Peretz - CFO, Treasurer, Vice President & Controller: Okay. And on the second half of the year, our guidance really is at the higher end of our, where we expect it to be and it's really driven by the fourth quarter that you mentioned; but in the third quarter, there's some tough year-over-year comps. In the third quarter, we had a very high earnings per share, 14%. We talked about the volume that drove that and there were some wage deflation productivity improvements and we expect some of that to continue, but there was also a true-up of workers' comp with a credit and we just don't think the credit will be quite as large in the third quarter. And so, when you put them together, we're growing our profits in both the third quarter and the fourth quarter. And we expect to hit the high end of our guidance.

Thank you.

Our next question will come from the line of Scott Group of Wolfe Research. Please go ahead.

Hey. Thanks guys, good morning. So, just wanted to follow-up on a couple of items with you, Richard. The currency hedge impact that you talked about in the second quarter, how should we think about that hedge benefit in third quarter and fourth quarter and then into 2016? And then also on the fuel side, you gave good color on the revenue impact. Can you just help us think about the net impact on profitability for each of the segments in the quarter? Richard N. Peretz - CFO, Treasurer, Vice President & Controller: Sure. First, we'll talk about the currency hedge. One of the things we talked about in previous calls as well is that we took a multiyear approach to the hedge. We really did that as the currency was at the $1.35, $1.33 range. So, we have coverage on the currency all the way through the end of 2016. And because of that we don't think there's an impact that you should be thinking about on that. In terms of the fuel and the net fuel, when you think about fuel there's a lot of ups and downs, but the bottom line is it's almost neutral to the profit line. There is a slight drag in the domestic in the second quarter, but it's not enough to really talk about at this point. But overall, our fuel surcharge is meant to be a natural offset to the changing volatility of fuel prices, so that it's taken into account.

All right. Helpful. Thank you, guys.

Our next question will come from the line of Kelly Dougherty of Macquarie. Please go ahead. Kelly A. Dougherty - Macquarie Capital (USA), Inc.: Hi, thanks for taking the question. I know there's been a lot of discussion about slowing B2C growth, so I'm just curious if you can estimate for us how much of the business is industrial-related versus consumer-driven. And I'm pretty sure it's pretty different within the segment so any comments on that. And then maybe just a big picture insight into how you see industrial versus consumer parts of the economy moving, and maybe how you might have to make some adjustments to the network, if that's changed since you first put out the operating plan for this year. David P. Abney - Chief Executive Officer & Director: Okay. I'll take the second part of the question about the economy and then turn it over to Alan. So, we have talked about seeing B2C, the pace slow down just a little bit. We don't at all want to leave people, though, with the impression that B2C is not going to continue to grow. And it is, but just the pace of growth has slowed just a little bit. And the other part from the industrial, the manufacturing side, we've seen four quarters of increase from the manufacturing sector; but really this quarter, we saw that, I was going to call it even, but it was just a slight decrease. So, that's one of the reasons that we're a little cautious about the remainder of the year in the U.S. We just want to see if the manufacturing sector rebounds. I'll turn it over to Alan for the first part of your question. Alan Gershenhorn - Chief Commercial Officer & Executive VP: Yeah. Kelly, really the split right now in the U.S. is about 45% B2C, 55% B2B. And like David said, the manufacturing and some other sectors that were related to B2B have slowed down a little bit. The B2B this quarter was primarily driven by retail with returns and omni-channel. Next question?

Our next question will come from the line of David Ross of Stifel. Please go ahead. David G. Ross - Stifel, Nicolaus & Co., Inc.: Yes, good morning, everyone. I wanted to talk a little bit about UPS Freight. Shipments were flattish year- over-year, a little down probably reflecting the industrial economy that you just talked about there, David. But when I look at yield, adjusting for weight per shipment it looks like yield was down year-over-year unless something went on with average length of haul. Was average length of haul up, down? What was the impact there and what was kind of true pricing like in the LTL? Myron A. Gray - President-US Operations & Senior Vice President: Good morning, David. This is Myron. Overall, as you know, the U.S. Freight market is down 1.5% to 2%. However, our base rates and bottom line continues to be supported by a disciplined strategy, which is our focus on the middle market. So, the average tonnage was down, but revenue per ton continued to actually grow because of rate actions that we're taking on some lower yielding customers. And we see it coming through in our business, so we're actually pleased with where we are. David G. Ross - Stifel, Nicolaus & Co., Inc.: Where was average length of haul? Myron A. Gray - President-US Operations & Senior Vice President: It's about the same. David G. Ross - Stifel, Nicolaus & Co., Inc.: Okay. Thanks.

Our next question will come from the line of Rob Salmon of Deutsche Bank. Please go ahead.

Yes, thanks for taking the question. We heard a lot of talk a couple weeks ago with regard to July Black Friday events, and I was curious, if you could talk a little bit about how that volume, if we should be expecting any sort of meaningful impact in the third quarter? And could you talk about the performance during that kind of summer peak-type volumes and if there were any incremental resources that you added to the network? Alan Gershenhorn - Chief Commercial Officer & Executive VP: Yeah, hey. This is Alan. Look, as we all know there was a number of retailers out there that had a number of similar events. And we're actually excited about this innovativeness that's going to continue with e-commerce. It obviously drives significant small package growth and redefines how business is done. And UPS will benefit and continue to benefit from those type of promotions. And certainly, our ability to develop the solutions that I talked about earlier with our e-commerce ecosystem gives us the ability to flex our integrated interoperable network to support those kind of promotions very cost-effectively. The last thing I'll say is that I think it's also a demonstration of the potential to drive and shift demand that there's going to be some definite new learnings from. For example, we've talked on prior calls about the U-shaped volume between Thanksgiving and Christmas. And certainly, if we can better level that working with our retailers, that's going to help out our retailers and UPS alike. Thanks.

Thank you.

Our next question will come from the line of David Campbell of Thompson, Davis & Co. Please go ahead. David P. Campbell - Thompson, Davis & Co.: Yeah. Thanks for taking my question. Congratulations on a good quarter. I just wanted to ask about the last six months. Someone mentioned I think that operating profit in the International operations would be up 15%; but I'm not sure, I got that right. Could you please clarify that for me? Richard N. Peretz - CFO, Treasurer, Vice President & Controller: Sure, this is Richard. What we have guided to for the next six months is that the operating profit in International would be at the high end of the range that we've given at 6% to 12%. And that's what we expected in the guidance and was in my talk. David P. Campbell - Thompson, Davis & Co.: And so that rate of growth is also in the last six months, 6% to 12%? Richard N. Peretz - CFO, Treasurer, Vice President & Controller: That's right. At the high end of that range. David P. Campbell - Thompson, Davis & Co.: Okay. Thank you very much.

And our next question will come from the line of Matt Troy of Nomura Securities. Please go ahead.

Yeah, thanks. I just wanted to ask a broader question. The same-day fulfillment market is one that's been receiving a lot of attention in the press. You've got Amazon launching in 14 major markets. Just wondering to the extent you could update us on your thoughts and your tests in the same-day market that would be extremely helpful. And what you might look at the market size as going forward. Alan Gershenhorn - Chief Commercial Officer & Executive VP: Yeah, Matt, this is Alan. We've been in the same-day market for about 20 years on the B2B side with our Express Critical and Forward Stocking Location network primarily aligned to high-tech and Healthcare. As you know, there's a tremendous amount of innovation going on in the retail e-commerce space including same-day. And we all know why that is, is because retail is expected to grow four times the GDP. We saw an announcement this morning about one of the operators closing down their same-day operations. And quite frankly, I think we all know that the challenge is having a valid economic model for low-cost shipping offers. Currently, the same-day free e-commerce has challenges with consolidating density on single piece stock economics that create profitability issues. So, we continue to monitor the space and look for cost-effective solutions that are profitable that can serve the needs of our retailers. David P. Abney - Chief Executive Officer & Director: Hey, Matt, this is David. Because of the time that most of these e-commerce orders are made which is later in the afternoon we're really seeing much more of a demand for giving our retailers, especially those with an omni-channel network, giving them late pick-ups and then giving them local delivery the next day. And we've seen a lot of interest there and that's part of our business is growing and we expect that that will continue to grow at a pretty rapid rate. Thanks for the question.

Thank you.

Due to time constraints, our last question will come from the line of Bascome Majors with Susquehanna. Please go ahead.

Yeah, thanks for taking my question. I was hoping you could give us a brief overview of your existing truckload brokerage operation? And just a little color on the overall size, where you regionally are customer focused, the growth rates you've been able to achieve and your desire to gain scale a bit more quickly through acquisition? And ultimately, is this business more strategically important to UPS as part of the bundle you can offer customers or really is a way to drive greater line haul efficiencies in your parcel and LTL businesses? David P. Abney - Chief Executive Officer & Director: This is David. I would talk about the full truckload brokerage, we do have an existing business that's part of our UPS Freight business. And we do have asset-light businesses today that are part of this broad portfolio. As far as speculating where we may or may not want to go with that business, especially as it may or may not be anything that I'd say would be tied to rumors that are out there, that's really as far as we can go, that we have an existing business. And we just like any other part of our business expect to grow that business. And thank you for your question. I appreciate it.

I would now like to turn the conference back over to our Chief Executive Officer, Mr. David Abney. Please go ahead, sir. David P. Abney - Chief Executive Officer & Director: Yes. I would just like to close with a couple of things. One, very pleased that all three of our business units met planned performance or exceeded it and led to the results that we got to talk about today. We are clearly moving in the right direction to achieve our year-long financial objectives. And we do see strong international momentum and we do have confidence that we're going to hit the upper end of our guidance range. Thank you.

Ladies and gentlemen, that does conclude our conference call for today. On behalf of today's panel, we'd like to thank you for your participation. Have a wonderful day. You may now disconnect.