Great. Thank you, Liz.

Good morning and thank you for joining us today. With me here are Tad Smith, Sotheby's President and Chief Executive Officer; and Mike Goss, Chief Financial Officer.

GAAP refers to generally accepted accounting principles in the United States of America. In this earnings call, financial measures are presented in accordance with GAAP and also on an adjusted non-GAAP basis.

An explanation of the non-GAAP financial measures used in this earnings call, as well as reconciliation to the comparable GAAP amounts are provided in the company's form 10-Q for the period ended March 31, 2016. Also, during the course of this call, the company may make projections or other forward-looking statements regarding future events or the future financial performance of the company.

We wish to caution you that such projections and statements are only predictions and involve risks and uncertainties, resulting in the possibility that the actual events or performance will differ materially from such predictions. We refer you to the documents to the company files periodically with the Securities and Exchange Commission, specifically the company's most recently filed forms 10-Q and 10-K.

These documents identify important factors that could cause the actual results to differ materially from those contained in the projections or forward-looking statements. Please see our investor webpage for a transcript of our prepared remarks.

Now, I'll turn the call over to Tad.

Good morning. Thank you for joining us and for your interest in Sotheby's.

I'm delighted to be here today with Sotheby's new Chief Financial Officer, Mike Goss who joined us at the end of March; I would like to thank our esteemed director Dennis Weibling for so ably guiding us in that role on an interim basis since the end of last year. I would also like to take a moment to thank Bobby Taubman who elected to retire from the board.

Bobby brought great insight, wisdom and passion to Sotheby's over his 16 years as a director and we will miss him in the spirit of his wonderful family. We would also like to note the passing of our long-time director John Angelo earlier this year.

John brought incredible energy and wisdom to Sotheby's and we were fortunate to benefit from his leadership and financial expertise over the past eight years. Now let me turn to the results for this quarter.

As we said on our last analyst and investor call, we generated a significant loss in this quarter, mainly attributable to two factors: first, at the end of 2015, it was clear the significant market growth experienced in 2014 and the first part of 2015 have slowed somewhat. Consequently, we experienced the 35% decrease in net auction sale during the quarter when compared to the exceptionally strong quarter of a year ago.

This was most acutely felt in the London auctions in Impressionist Modern and Contemporary Art in February, but it was consistent with all of the signs in the marketplace of this period; second, we return to our normal pattern of quarterly seasonality. As a reminder, the auction calendar and our business are highly seasonal with the majority of our most significant sales occurring in the second and fourth quarters.

At the same time, our expenses are more evenly spread over the year which then generally leads to losses in the first and third quarters and income in the second and fourth quarters. To underscore this more fully, over the past 25 years, we've generated a loss 22 times in the first quarter.

Despite an overall decline in auction sales during the quarter, there were a number of bright spots, affirming that the appetite for great works of art remains unabated. For example, in New York in January, we had our best old master results in five years and our star lot, a broke masterpiece by the artist Gentileschi which was purchased by the J.

Paul Getty Museum in Los Angeles for record $30.5 million. In London in February, six bidders spot for a stunning portrait by Lucian Freud, sending the final price to $23.2 million, well above expectations.

Similarly, a sculpture by Auguste Rodin [ph] set a new benchmark for the artist at auction when it sold for $16.7 million, above the $11 million high estimate. Our Asia week sales in New York were also solid and I will elaborate on Asia and our recent Hong Kong sales in a moment.

Turning now to what we are experiencing so far in the second quarter of 2016, our sales in Hong Kong in our late April were much anticipated both for the quality of works we assembled and the intelligence those results would provide about the mindset of collectors in Asia. The series total $405 million, exceeding our expectations in representing a 17% increase on the same sales a year ago.

One particular highlight was a 50-minute bidding battle for a masterpiece by one of the most celebrated masters of Chinese painting, Chang Dai-chien, which finally sold for $34.7 million, more than four times the high estimate of $8.3 million and a new auction record for the artist. Bidders from greater China were active and focused on competing for works of outstanding quality they felt were priced well.

At the end of April in London, we presented Orientalist and Middle Eastern week, a group of five sales celebrating a history of Middle Eastern art that realized a combined total of $22.6 million. 70% of the 600 lots sold brought prices above their high estimates and eight new artist records were established.

We held two important jewelry sales in April and we have additional major sales taking place in Geneva and London later this season, which I will elaborate on in a moment. The sales thus far have been solid with some outstanding prices including $31.8 million achieved for the De Beers Millenium Jewel 4 in Hong Kong, but our sale to rights have been a bit weaker than we've experienced in recent seasons.

Overall however, the results of the jewelry auction market are in-line with a year ago and we're looking forward with cautious optimism to our upcoming sales. Before we turn to our preview of our upcoming sales, let me take a moment to provide updates on two important strategic initiatives: first, our push to engage with our clients and buyers online; and second, an update on the integration of our agency partners.

On past calls, I've gone into detail about our digital development, particularly our commitment to expanding and engaging our audience and how we've made progress. Between our own site and our partner network have been valuable, and their network of 4,000 auction houses, dealers and galleries, and eBay and their 145 million buyers, Sotheby's have the largest audience of online buyers anywhere in the art world.

We continue to reach and engage new and existing audiences to a variety of tools including our social media network, the largest and fastest growing in the marketplace, multiple distribution efforts including our Apple TV app, which has contributed to 187% increase in our video views, and our iPhone app which we launched on early March and was already four and-a-half stars out of five on the App Store. We also recently released an updated iPad app and we'll continue to improve both products to the summer.

The key point is engagement. Clients are spending an excess of 60% more time on our website than our nearest competitor and we know that clients who engage with the editorial content and videos we produced are 33% more likely to register to bid.

As of mid-April, we've seen a 32% increase in online bidders and a 31% increase in online buyers, leading to a 60% increase in lots sold online. We're seeing this interest in engagement across all categories.

For instance, in the recent Old Master and British Paintings held in London, 32% of all lot sold by volume went to online bidders. With respect to art agency partners, it has been three months since the team from AAP joined Sotheby's and I'm pleased to report that things are going well.

While some employees remain dedicated to advisory services exclusively, others have expanded their roles rather comfortably into Sotheby's core business. We are working on expanding the advisory business and have a number of potential new clients – some of them come as a result of the reputation of our agency partners and their principles and others who have been introduced to the services we provide through Sotheby's specialist.

We've got them to take some important steps in developing our framework to expand Sotheby's private sale activity, dedicated space of staff and an incentive compensation structure that is transparent and designed to promote collaboration are all among the topics being strategized in this initial phase. Now let's take a look at some of our upcoming sales.

This season in New York, we changed our schedule to offer our major auctions of Impressionist Modern and Contemporary Art in a single week to capitalize on the evolving taste of collectors and allow for a longer presale exhibition period. We made some improvements to our galleries, significantly expanding our exhibition space and updating the aesthetic, all the while spending very little capital.

We are now able to show more than 900 works of art simultaneously and seamlessly in great different categories. Like our February auctions in London and reflecting the current market conditions, this week's sale of Impressionist Modern and Contemporary Art are smaller than a year ago, down 38% at the midpoint of our expected ranges, but we are very pleased with what we've assembled.

The sales are well-curated with the lower level of guarantees and we anticipate good results. Highlight from tonight's sale of Impressionist and Modern Art include two-fold masterpieces; André Derain 1906 view of the Thames, London Bridge [ph], and Maurice de Vlaminck 1905 landscape in Chateau, which are estimated at $15 million to $20 million, and $12 million to $18 million respectively.

Also on offer is a striking pointless [ph] painting of St. Tropez by Paul Signac from 1892, Maison De Paor [ph] which is estimated at $8 million to $12 million.

And on Wednesday, the evening will be led by a stunning example of Cy Twombly's famed Blackboard series. The canvass was acquired by the current owner directly from the artist's studio afterwards executed in 1968.

The night will also feature two studies for a self-portrait by Francis Bacon which carries an estimate of $22 million to $30 million. Our magnificent Jewels and Noble Jewels sale in Geneva later this month carries a low estimate of nearly $150 million and features some superb gemstones and signed jewels all predominantly from private consigners and fresh to the market.

The sale is led by the Unique Pink, a supremely rare and exceptional fancy vivid pink diamond weighing 15.38 carats, which is estimated at $28 million to $38 million. We've also been entrusted with the sale of the Lesedi La Rona and 1,109 carat rough diamond discovered in Botswana last year which has the potential to yield the single largest top quality polished diamond in existence.

The sale will held in London in late June. On our last earnings call, we said that we did not expect sale levels for the full year 2016 to reach the annual held levels of 2014 or 2015.

And as of right now our view remains unchanged. However as I just outlined, recently, we observed the number of positive indicators most notably our Hong Kong sales series which was up 17% year-over-year.

Of course our most significant data points for the second quarter kicked off tonight, with a number of important auctions to follow in the coming days so the next two weeks should provide all of us with a lot of good market intelligence. Until then we will remain cautiously optimistic.

From an earnings point of view, our quarterly pattern of stronger second and fourth quarter should hold through. Historically, approximately 80% of our yearly sales volume fall in the second and fourth quarters, particularly in light of the fact that our London summer evening contemporary sale will return to the second quarter this year.

In 2015, the contemporary evening sale occurred on July 1, at the very start of the third quarter, bringing $137 million in that auctions sales for that quarter. With that I think makes sense to turn things over to my colleague, Mike, to provide some context on the numbers from the first quarter.

Mike?

Thank you, Tad. This morning we are reporting a first quarter adjusted net loss of $22.3 million and adjusted diluted loss per share of $0.35, compared to adjusted net income of $7.4 million and adjusted earnings per share of $0.11 a year ago.

The adjusted figures exclude charges related to contractual severance agreements, the voluntary separation program, CEO separation and transition cost and restructuring charges. As Tad has already referenced and as our recently file 10-Q reflects the story behind these financial results is mainly about the lower state of the art market and return to our normal quarterly seasonal pattern, following an unusually strong first quarter in the year ago period to which we are comparing.

In the agency segment we experienced a 35% decline in net auctions sales, a 25% decline in private sales and a loss from our inventory activities. From publicly available data, we know other players in the market have experience similar declines in their net auction sales, so clearly we have all faced a softer market for art sales in the first quarter compared to last year.

Completely consistent with this pattern, our agency segment gross profit was down 42% for $48.1 million versus the same period a year ago. Gross profit takes into account all of our agency commissions and fees in the associated direct cost as well as the impact of inventory activities.

So it is highly sensitive to market conditions. Most tellingly, on a consolidated basis our adjusted operating results declined from quarter-to-quarter by $48.4 million.

That's indicating the decline in agency segment gross profit accounted for nearly 100% of the swing in results. In a nutshell, that is the major takeaway of this quarter.

Lower agency gross profit driven by softer market conditions. For those who want to dig deeper into the results for this quarter, I would point you to the following.

On a positive note, we experienced an improvement in our auction commission margin to 15.4% from 15.0% a year ago. If you exclude the impact of the $22.5 million in net sales from the Calvin [ph] collection in the first quarter, the margin improvement was even greater.

From 15.0% last year ti 16.2% this year. Well much of this improvement is attributable to a shift in mix towards higher margin sales.

Part of this improvement can also be attributed to greater pricing discipline. Within the detail of our expense breakout, you will see a $5.2 million increase in our salaries and related expense.

Two factors account for more than 100% of this increase. First, we incurred $6.1 million in contractual severance agreement charges related to the departed senior level executive in Q1.

And secondly, we recorded $2.2 million related to their earn-out obligations rising from the recent acquisition of our agency partners that GAAP requires us to record as compensation expense. To arrive at our adjusted operating loss, we are adding back the effect of the contractual severance agreement charges.

Finally while our finance segment experienced a slight decline in gross profit dollars versus last year, this was principally due to the greater leverage we've achieved with the dedicated credit facilities for Sotheby's financial services. The most important metrics for this business, a finance revenue margin of 10% and a trailing 12-month return on equity of 16.3%, illustrate the advantages of our business model and our funding structure.

With respect to the balance sheet; the biggest story of the quarter is the progress we've made on capital allocation with the repurchase of our common stock under the $325 million authorization discussed with you in January. You might recall that in January we started buying shares on the open market, and then we continued buying shares through a 10b5-1 program while the trading window was closed late in the quarter through tomorrow.

I'm pleased to report that since the beginning of this year we have purchased 8 million shares at an average price of approximately $25 per share for a total investment of $193 million. This represents 12% of the shares that were outstanding at the end of the year.

The benefits of this buyback are two-fold. First, we believe the purchase of our own stock is currently the best way to deploy cash not needed for reinvestment in the business.

The second benefit is that we will now be reporting our net income on much smaller number of shares outstanding and all other things being equal, we will experience significant accretion on an EPS basis as a result Since we plan to continue making open market purchases once the trading window opens, we got to best to advise to you that we've recently been advised by an outside investor that may make purchases of our stock whether through the open market, privately negotiated transactions, block trades or derivative transactions to bring their holdings to at least 10% of the shares outstanding, and they filed the necessary documentation under the Hart–Scott–Rodino Act that would allow them to do so. Of course they have no obligation to purchase stock and they could decide for any reason not to do so.

As for our overall liquidity, we closed the quarter with approximately $414 million in cash even after giving effect to the first quarter's stock repurchases. We have been relatively cautious on guarantees as indicated by our current net guarantee exposure $72 million.

Now let me conclude by saying how pleased I am to be here at Sotheby's and how exciting I think the prospects are for our company. Yes, we have the normal ifs and flows of the art market to deal with, along with its pattern of quarterly seasonality but we also have everything we need to succeed in this business in the long term, starting with the very fine people here.

And I am confident. We are all working on the exact right issues with the appropriate amount of energy or insurgency.

So Tad and I are now happy to address you questions.

Good morning, Tad and Mike. Thanks a lot.

Hi, Oliver.

Your remarks are really helpful. How would you contextualize how we should think about the context of the bright spots versus slowing market growth and salter rates which sounded a little cautious?

What's going to create this dynamic between some encouraging news, but also the obvious commentary on the slower situation? Also, Tad, as we focus on digital engagement in Sotheby's for the long term, what's been the most surprising there and what do you think will end up being a nail-mover for gross profit dollars over the next five years?

Okay, let me try to break that into three pieces. Let me first, if I might, Oliver, clarify your characterization on my view.

When you said it leaned a bit towards cautious, and I think I chose the word cautious optimism. I have to tell you I'm reasonably optimistic, but I'm cautious given the fact that we have limited visibility over the next two weeks.

I observed that two other houses did reasonably well last night. There's been a lot of interest and enthusiasm for what's going on here, what we have, our sales, and things like that.

But the plain fact of the matter is until the hammer comes down we're just not sure. So I would say rather than lean to cautious or lean to optimism, I'm in a rough balance but I would say there were some important signals in what Mike said particularly about disclosure and we plan to continue making open market purchase, because frankly if we do as we would like to do in the next few weeks, when I said in the prior earnings call, we're going to have one or more bad quarters, I think we're going to keep it to one.

So I feel good about things. On the online side, wow, what surprised me?

Well, I'm just thrilled with it. I wouldn't characterize surprised.

In terms of the traction we're getting, in terms of the way that the team is executing, in terms of the results that we're getting, in terms of the size and resonance of purchases being made through, all of it is very encouraging and I think we are just beginning to come down the curve on that. If you think about our mobile apps, it's really only a month-old and one of them is only a week-old.

We've got a lot of opportunity there. If you think about the benefits of an electronic on ramp – as my colleague David Goodman likes to call it – to Sotheby's, which is very low risk as opposed to walking into our business or registering in a phone or something like that, it's a much more embracing and easy way to get in.

So one should expect that the demand curve for our services should expand and that the number of bids per lot should rise over time as we keep adding more and more bidders and getting them more and more comfortable with us, with our brand, with the great stuff that we have and with the opportunity to do and see what we see. As you look five years into the future, I don't think it has materially changed since what I've said in any of the prior calls.

I think what you would see is a greater and more exciting internet proposition. You would see significantly more private sales, you would see a more robust and thoughtful and actually high-impact dispersion of our resources around the world with where we are and in connection with where emerging wealth pockets are, you would see some interesting growth in jewelry, I think you would see some interesting growth in the various parts of the middle market which I think are very attractive, and I think you would see us doing very well in the high-end of our market.

I think I covered all of them, but I'm not sure.

Yes, that's really helpful, and Mike, great to have you on board. I had a question for you.

The auction commission margins look really solid and impressive to us. Do you think the two factors in terms of mix and pricing will continue to be positive factors throughout this year as we model that line?

Well, thank you, Oliver. That line is of course highly dependent on the mix, but I would echo Tad's optimism on this line as well.

We have now had two quarters in a row improvement and I think we're comfortable with the direction that that line is heading as well.

Okay. Thank you, both.

Best regards.

Thank you, Oliver.

Hey, good morning.

Good morning.

Mike, I was hoping you can speak to the expense structure? I know in the previous call you have spoken about variablizing your expense structure during the period of tougher market conditions.

I know this is a small quarter so it's hard to extrapolate, but G&A grew and I think overall, your expenses were roughly flat despite the revenue decline, which is similar to what we saw last quarter despite revenues being a lot better shaped. So help us better understand the expense structure, particularly around G&A in salaries?

Thanks.

Yes. Dabush, let me first talk about the salaries and expense structure because I think that's where it tends to be most variable and that probably what people were referring to in past discussions.

If you look at our top expense, the total change period to period on a reported basis is $5.2 million. That looks to be up 8%, but we need to point out, there are three items in there which kind of make that a little bit confusing.

First and foremost, that is the line where the contractual severance agreement obligations are that we believe should appropriately be added back in a non-GAAP context. That's $6.1 million of the change.

That accounts for more than 100% of the $5.2 million change. Also in that line is the earn-out for our agency partners.

That's another $2.2 million. That really could conceivably also be added back, but we choose not to because we're characterizing it as compensation expense, but that's fine.

That's a bit of an oddball type of expense to be included in there; and then you'll see in the footnotes of our 10-Q also included in there is $1.2 million of accelerated share-based compensation expense for those same group of people who are departing that account for the $6.1 million in cash severance obligations. So if you take out those $4.3 million of expenses, our compensation expense is actually down 7% period to period.

A lot of that is because improvements we've made in the UK with respect to our pension obligations there and other share-based compensation expenses – again, improving the variability of our comp expense. I think the appropriate way to really look at comp expense is that it's down 7% period to period.

As for the rest of the G&A, there were three items worth calling out there. First, our travel and entertainment expense is down $1.5 million.

That's a variable-type expense you would expect to see happen in slower art markets. They were offset by two major expense items: one, was the $1.3 million increase in the digital initiatives that we think are critical to improving the client experience here and Tad talked about the benefits of those; and then a $1.8 million increase in professional fees associated with some litigation and tax matters that we're battling.

We should probably know this, but with the exception of the amortized earn-out of the full-year, incentive compensation we accrue in the second and fourth quarters for what it's worth.

It's helpful. And I wanted to ask another question, just on the broader environment.

So it's obviously weak, I think most of us has accepted it as a product of financial market volatility, but I was hoping you can -- as a postmortem to the first quarter -- give us some more insight into what you're seeing on the ground, why you think the market is as weak as it is? Is that a product of your Chinese customer or emerging market client base, consignor's willingness to sell?

Any other commentary you could provide behind what you're seeing would be great.

I think it's best to wait and see the next couple of weeks before saying anything more than what I've said on that because really, the last big data points we had outside of Hong Kong were way back in early February. We've had lots of little medium to small size sale sense from around the world, but I think the next two weeks is really going to tell a lot and I would hesitate to go beyond what I said earlier.

Let's wait and see, but as I said, I'm cautiously optimistic.

Hey, maybe I could just follow up on that and obviously big week, this week coming ahead. In the presale, the catalogs are out, we know the presale estimates et cetera, but there's still a lot of work to be done in terms of -- that's why they play the game.

So what are some of the data points that you're most focused on for the coming several days, Tad?

Interest level on the lots, number of bidders on the lots, enthusiasm for the lots, visitor counts, how we're seeing our salespeople and how they're seeing their clients' feedback from the marketplace from the trade -- all of those things. None of them particularly surprising, but that's where we're focused at the moment.

Sounds good. All the best.

Thank you.

Thanks, Dabush.

Thank you and first, welcome to Mike.

Thank you, George.

So, Tad, when you first came, you spent a fair amount of time obviously surveying the landscape and trying to understand some of the changes that needed to be made. You've now made a number of them.

I'm curious where upon the continuum you are in terms of making a lot of the key sort of version, 1.0 changes you expected?

Very near the end.

Perfect. And could you give us more detail on the private sale steps that you're taking to try to boost that business?

You referred to it in the comments, I wondered if you can go into more detail.

Let me pause as I think about what I want to say. Just give me a moment on it, because it's competitively sensitive.

As you think about the private sale process, there are several things one needs to make it work well. First, one needs insight on where things are and insight on who wants them; second one needs a very, very buttoned-up process that is compliant, that connects those who have things to those who want them in a way that its client friendly and is transparent but clear and discreet, and careful.

Then you need a group of individuals in our organization that have all of those motivations. And then finally you need a reward system and then a management system that tracks progress and provides feedback into that process.

We have a terrific team which is one of those areas. But on some of the other pieces of that value chain we got a lot of work to do.

Understand. Lastly for me, relative to the outside investor that has contacted you.

Are we to assume this is an unrelated investor and is this someone who is currently an investor taking a larger position? Any information would be helpful.

We're not going to say anything.

Okay, thanks guys.

Hi, thanks, good morning.

Good morning.

Hi, David.

So I want to build off of the private sales caution. I'll come back to that in a second.

Just with two here; on guarantees, I know you mentioned that you were using most of them in some cases coming up, sometimes you feel a little more, sometimes you feel a little less as obviously the business dictates. But I wanted to know how are you thinking about the use of guarantees long term and I guess I'll combine this with question number two as you're folding in this holistic view of a client's service first model with art agency wrapping into private sales, does all this coming together in some way over a longer term, three to five year view with the way you're taking care of buyers and sellers?

Let me deal with the guarantee part of that question first, David, and then let me make sure I got the second part clear.

Sure.

On the guarantee part of the question; guarantees are essentially as you know a liability that might turn into a use of cash that we expend to generate profit. And as such it needs to be thought of as one of many different levers that we are constantly using up and down the balance sheet to maximize the value of shareholders.

At a time when it makes, when there's a fair bid of inflection point in the market and when we have lots of attractive uses for our cash, the combination of those two alone should make one. I think everything else being equal conservative on guarantees.

They don't scream of high value per shareholders when you have those two situations, and those are exactly the situations we're in. And by the way we might be in that situation for quite a while and so as a consequence I, as a shareholder but also as a management who works for all of the shareholders, I'm going to be very conservative and careful on guarantees and continue to be so.

On the second part, I would say that the evolution of the company is in a very encouraging workplace. We got an extraordinarily talented group of people.

The relationship between the various parts of our business is exciting and I feel very good about it. If you wanted to ask a more specific question about the second part, David, I'll need it again.

Sure, I was essentially saying you brought in the art industry business, and does that change the way, and I was relating in fact to guarantees, change our conversation with sellers overtime, and so should we expect something different or is it too early to see the way that the two businesses are going to be interwoven?

Yes, I'm not really connecting the art agency partners. I position to anything necessary about guarantees but I need to think it through more clearly 'cause there's probably some new ones that I'm missing.

But the one thing I would certainly say is that the advisory business brings us very close and deeply in touch with the end collectors needs and wants, and also sharpens our skills on providing solutions to them because the art market is clearly complex in a state of interesting and exciting and evolving change, and having, advising people on that. And by the way charging for the advice on it means that you got to be really on your game and really close to it, and that I think keeps us sharp.

And so far as that level of raising the bar on solving the problems of end collectors also will color or actually maybe change the way we think about guarantees or change at our structure in some way. That's a very provocative idea.

I'll have to think about it, and I think Mike and the rest of the management team will give it some thought.

Sure, that's what I was getting at, very helpful.

Good morning, guys. So in your prepared remarks, you guys talked about that it was not just you guys who experienced weakness but you are seeing this across the industry.

I was wondering if you could talk a little bit about how you think your market share may have fared in the quarter and I guess kind of broadly how you think it's going to be fairing in the more important second quarter.

It's a bit early to say because so much of the second quarter sales haven't really happened yet. So I think we should just wait and see.

Okay, I guess I was just more wondering if you had kind of a qualitative view of whether you guys, you obviously have seen what your pre-sale estimates are for some of these important auctions. And so how that would related to kind of the I guess the marketplace of size of the opportunities that you guys could have achieved to put forth at your own auctions.

We're very pleased with our sales. We're very pleased with the position we have, and modern impressionist, contemporary.

We love the evening sale contemporary, by the way, we love our jewelry position. We feel very good about it.

And I think we made the point earlier that we are very, very focused on running the business for the benefit of our clients and also for the benefit of our shareholders 'cause that's what our employees want. So I don't think the idea that we would be racing to do risky or low margin vanity deals just to pump up the market share numbers is necessarily on our table right now.

Okay, that's helpful. And then secondarily and lastly for me, you guys completed a lot of share repurchases this quarter.

I wonder how you're thinking about the remaining authorization and the timing of those and how you're going to think about deploying your cash in that way. Thanks.

Well, we still have just a little bit north of $130 million available to invest from the previous $325 million authorization. We're certainly going to be watching the market closely.

Feel good about the investment we've made to date. Feel like the two reasons we've done it.

Namely it's a great use of cash that's not otherwise required to be reinvested in the business, and then secondly we like the accretive impact that has on earnings per share, and I would expect us to continue investing up to the remaining authorization.

Okay, great. Thank you very much.

Mike, thank you. Jennifer, thank you.

Thank you all for joining us and let's get on with the sales. Take care.