Good day, and welcome to the DENTSPLY International Fourth Quarter Year-End 2015 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Derek Leckow, Vice President of Investor Relations. Sir, you may begin.

Thank you, Vicky. Good day, everyone. Thank you for joining us to discuss DENTSPLY International's fourth quarter and fiscal 2015 results. I'm joined by Bret Wise, DENTSPLY's Chairman and Chief Executive Officer; and Chris Clark, our President and Chief Financial Officer; and Jim Mosch, our Executive Vice President and Chief Operating Officer. I hope you had a chance to review our press release issued earlier this morning. A copy of that release and a set of supplemental slides and information relating to non-GAAP financials are available for download in the Investor Relations section of our website, www.dentsply.com, under the heading Quarterly Results. Of course, the Safe Harbor language and U.S. GAAP reconciliation contained in today's press release also pertain to this conference call. We may make forward-looking statements involving risks and uncertainties. These should be considered in conjunction with the risk factors and uncertainties that are described in the release and in our SEC filings. It is possible that actual results may differ materially from the forward-looking statements that we may make today. The company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that arise after the date of this call. With that, I would now like to turn the call over to Bret Wise. Bret? Bret W. Wise - Chairman & Chief Executive Officer: Well, thank you, Derek. Good morning, everyone. Thank you for joining us on our year-end call. I will start with a few overview comments, and then I've asked Jim to comment on our new product pipeline and our growth investments. Those growth investments being funded by our efficiency program. And Chris will close with a deeper dive into the financial results. Before we start, I have a few comments on our historic merger with Sirona Dental Systems, which…

We'll go first to John Kreger with William Blair. John C. Kreger - William Blair & Co. LLC: Hi. Thanks very much. Bret, could you talk a little bit more about how Brazil and China are doing and maybe kind of the more emerging markets in general? Are you seeing any signs of deterioration given all the headlines we've been seeing? Bret W. Wise - Chairman & Chief Executive Officer: Sure, John. I'd be glad to do that. I would say that China remained stable and a growth market for us. We haven't seen a lot of movement or weakening. It seems like dentistry is still kind of an emerging profession in China. The number of dental schools there that have opened is significant. The number of people entering the profession is significant, and dentistry is moving from kind of a street corner profession into a professional environment. So, the growth there is still good. We saw continued growth in the quarter in Brazil as well, although we're watching that economy very closely. I'd say for us, that's a little bit higher risk than the Chinese situation at this point, although we continued to perform pretty well during this most recent quarter. Emerging markets in general, I would say, are stable. The one exception to that is the CIS region which is kind of getting hit very hard on two sides. One is on the currency, and the other is on the economics coming from the dependency on oil. And that market continues to contract. But outside that region, I would say, the emerging markets still look stable to us and they're growing. John C. Kreger - William Blair & Co. LLC: Great. Thank you. That's helpful. The other question I had, if you think about your organic growth in…

We'll go next to Jeff Johnson with Robert Baird. Jeff D. Johnson - Robert W. Baird & Co., Inc. (Broker): Yeah. Thanks. Good morning, guys. So, Bret, just following up, I guess, on your last point there. I mean, can you dig in at all in trying to figure why or try to give some reasons why Europe was disappointing this quarter? It seems like with some of the general consumables numbers out there from the distribution side that market held in fairly well. So, any color you can provide there on Europe? Bret W. Wise - Chairman & Chief Executive Officer: The two data points I have at this point are, one, the very large manufacture came out with, what they said, was low-single digit growth or close to zero growth. And we don't know, but I'm presuming that was impacted by Europe, because I would think their U.S. number would have been reasonably strong. So, the data point I have is our number, that manufacturer's number and then one distributor's number, I don't have any other distributors. The one distributor that's out had very strong growth in their rest of world category, I don't know the breakdown between Europe and other regions. But if the implied European growth rate is close to what the rest of the world growth rate was, then I would say that was clearly above market. The other factor for us, of course, is CIS plays a pretty big role in our European number, and I'm not sure that it plays much of a role in the other numbers that we've seen out there at this point. James G. Mosch - Chief Operating Officer & Executive Vice President: I'll also say, our base was pretty strong. We're going up against. Bret W. Wise -…

We'll go next to Robert Jones with Goldman Sachs. Nathan Rich - Goldman Sachs & Co.: Good morning. This is Nathan Rich on for Bob this morning. Sorry to go back to Europe, but just wanted to ask on the impact of discontinued products on Europe in the quarter specifically, I'm not sure if you guys gave that in the prepared remarks. Christopher T. Clark - President & Chief Financial Officer: Yeah. It was just over 100 basis points for the quarter. Nathan Rich - Goldman Sachs & Co.: Okay. Great. And then just as a follow-up to that, I'd be interested to get your thoughts on whether you think the discontinued products in lab or having any sort of residual or cross-over impact to other categories, I just wanted to know if this might be weighing on growth. Bret W. Wise - Chairman & Chief Executive Officer: I don't think it would have a lot of cross-over impact into other non-lab categories. But the restructuring we did in the lab category itself, including the discontinued products, could have, for a short period of time, some disruptive effect on other products in the lab category. But I don't see much possibility that it would stream over into other areas of the business. Nathan Rich - Goldman Sachs & Co.: Okay. Thank you. Bret W. Wise - Chairman & Chief Executive Officer: Yeah. Sure.

We'll go next to Steven Valiquette with UBS.

Thanks. Good morning, guys. Bret W. Wise - Chairman & Chief Executive Officer: Good morning, Steve.

My question just in relation to any upcoming 2016 guidance, and you did mention previously that the Sirona merger would be modestly accretive in the first year. I guess when you do give that guidance, I'm just curious, should we still assume, first of all, that that prior notion of modest accretion will still hold, and then do you know yet whether you'll quantify it or will this be kind of a sort of that general qualitative commentary around the accretion? I'm just trying to get a sense for kind of what to expect when you guys do provide that. Thanks. Bret W. Wise - Chairman & Chief Executive Officer: Well, I don't have details on what will be provided at a later point. That will be based on agreement of the new management team and so forth. Timing of transaction close – uncertainty of timing of transaction close weighs on that question of whether you get accretive in the first year or not because it does take some time to ramp up the synergies. But at this point, I think it's fair to say we believe we're close to a close date, and we believe the best pathway for us here, for the combined management team, would be to defer on the guidance and bring that out after we've closed in due course and had time to work together on it.

Okay. Then the other quick one, just in the press release you mentioned that you stated that the business is performing well fundamentally and see opportunities to accelerate the top-line growth as you move in to 2016. Just curious how much of that is maybe your own programs versus just what seems to be a fairly evident trend now that the overall industry is enjoying some accelerated top-line growth. Your comment there is sort of a combination of both of those or just curious to get what your thoughts on that as well? Thanks. Bret W. Wise - Chairman & Chief Executive Officer: No, that comment was meant to leverage off the fact that we're putting these reinvestments in now, which as Jim noted is probably the largest reinvestment for growth that we've had in this company for some time, maybe close to a decade. So, that was more driven towards the fact that we have some options that are within our own control now to invest for growth and we would anticipate we will see some pick up from that in a short period of time, certainly by the time we exit 2016.

Okay. I think just for the U.S. market in particular, there had been a lot of other companies in the dental sector that have talked about an expectation of the acceleration of organic growth for 2016 just from the – just the macro trends. Do you endorse that view right now for U.S. specifically, or do you not want to make that prediction right now? Bret W. Wise - Chairman & Chief Executive Officer: Well, I wouldn't be surprised if that happened. The dentists today seem open to listen to new ways to invest in their practice and drive their own productivity or improve patient outcomes. And you see that evidenced in the growth rates that the dental companies are experiencing in the U.S. I wouldn't be surprised to see it accelerate because of overall macro trends. Although when you read the Wall Street Journal, and you wonder what the macro trends are really going to be for the next year. So, again, our comments were – our view is we're trying to improve our position despite what the market does. And these reinvestments I think will do just that, allow us to grow above market irrespective of what the macro trends are.

Okay. That's helpful. Thanks. Bret W. Wise - Chairman & Chief Executive Officer: All right. Thanks.

We'll go next to Jon Block with Stifel. Ethan T. Roth - Stifel, Nicolaus & Co., Inc.: Great. Thanks. This is Ethan Roth on for Jon Block. I have two questions here. The first is on rest of world, I think we were a little bit surprised to see the internal growth not pick up from last quarter when you called out a temporary loss of production at a facility in China. I think we had that maybe about 300-basis-point drag. Did that swing back the other way and positively impact your growth this quarter as some of the product went out the door? Christopher T. Clark - President & Chief Financial Officer: No. Ethan, it's Chris. I would say it was a pretty normal quarter for us relative to China. I mean we're back in production. We probably did lose some sales over that period of time as customers probably went to other brands during that brief period we couldn't supply. But no, we didn't really expect nor did we see, I would say, an incremental snap back. We saw a return to, what I would say, to be pretty normal consumption. If you look at the high 4%s in terms of internal growth rate for the rest of world region, that's pretty much what that region has been doing on average over a reasonable period of time here. Bret W. Wise - Chairman & Chief Executive Officer: Kind of mid-single digits. And we need to keep in mind that when we say rest of world, it includes many developed markets, not only emerging markets. So, there's a balance there between the two categories in that number. Ethan T. Roth - Stifel, Nicolaus & Co., Inc.: Okay. Great. And the second just more of a housekeeping question. I noticed acquisitions were actually a net benefit this quarter, whereas you've had some divestitures that were a drag to the first part of the year. Can you share with us any details on either what the acquisition was by product or in which geographies? Thanks. Christopher T. Clark - President & Chief Financial Officer: Yeah. We purchased a small prosthetics business in Latin America. Bret W. Wise - Chairman & Chief Executive Officer: Yeah. That was driven by one single acquisition that's now offsetting the divestitures, none of which were really material individually. Ethan T. Roth - Stifel, Nicolaus & Co., Inc.: Great. Thank you. Bret W. Wise - Chairman & Chief Executive Officer: Okay.

We'll go next to Steve Beuchaw with Morgan Stanley. Michael Clerico - Morgan Stanley & Co. LLC: Yeah. Hey, guys. It's actually Michael Clerico on for Steve today. Bret W. Wise - Chairman & Chief Executive Officer: Hey, Michael. Michael Clerico - Morgan Stanley & Co. LLC: Could you just quantify – hi, guys. Could you just quantify the benefit from currency on the operating margins this quarter as well as the – what was the drag from CIS on European growth? Christopher T. Clark - President & Chief Financial Officer: Yeah. Relative to the quarter, about a fifth of the operating margin improvement was related to currency. Michael Clerico - Morgan Stanley & Co. LLC: Okay. Christopher T. Clark - President & Chief Financial Officer: The rest again – the significant amount came through as a result of the global efficiency improvement program as I noted. And I'm sorry, Michael, the second question? Michael Clerico - Morgan Stanley & Co. LLC: Yeah. And the drag from CIS on the European growth rate? Christopher T. Clark - President & Chief Financial Officer: For the quarter – I'm sorry. It looks like about 50 basis points maybe, maybe 50 basis points to 60 basis points, in that range. Michael Clerico - Morgan Stanley & Co. LLC: Got it. Christopher T. Clark - President & Chief Financial Officer: Yeah. Michael Clerico - Morgan Stanley & Co. LLC: Okay. And then my second question, on working capital, you've made some nice improvements. Could you talk a little bit about going forward on standalone basis efforts to keep that improvement up and things that you're doing? If you could just comment on what the initiatives there are and how you view that going forward? Christopher T. Clark - President & Chief Financial Officer: Sure. Again, there's a significant focus in this area. I think we talked about that it in previous calls as well. Number one, these metrics – we've had metrics in place from a management standpoint to focus in on that. Again, that's certainly – those targets have – I think that focus has helped. Secondly, as part of our global efficiency improvement program, the synergies associated with reducing distribution points moving to coordinated global inventory planning and control, again, all those common processes, point rationalization as appropriate, I mean, these – all these movements significantly streamline and simplify a pretty complicated supply chain. So, again, we believe that there's still significant room to go. This is a gradual effort. I don't think you should measure it on a quarter-to-quarter basis, but you should measure it over multiple quarters and expect continued progress. And, again, we're pleased with the progress thus far. But, again, we're early in the mid-innings in terms of that metric at this stage in the game. Michael Clerico - Morgan Stanley & Co. LLC: Thank you.

We have no further questions in queue. So at this time, I turn the call back over to Derek Leckow for any additional or closing comments.

Okay. Thank you, all, very much for your interest in DENTSPLY. That concludes our conference call, and if you have any further questions, I'm around today for follow-up. Thank you. Good-bye.