PNR
#Hey, Chris.
The action is taken, They are not reading out yet, right.
I mean, there ---+
Well, I'll hit Tech and Valves & Controls real quick.
First of all, we are committed to what we call the operating model transformation which is putting our Company, or our valves business headquartered in Switzerland, and benefiting from the global tax advantaged structure that we have.
And so, we'll continue doing that.
Obviously, we'll tweak a little bit to mirror the value streams that I mentioned, but we are ---+ three of those major ERP migrations behind us, and then will continue to right-size the factory structure.
But I think you should expect a little less capital spent in Valves & Controls, primarily because the volume is down.
ERICO, itself was not a capital-intensive purchase.
Matter of fact, very cash-rich and spent less than [$7 million] (multiple speakers)
(multiple speakers) ---+ except the purchase price.
Except the purchase price, but spent less than $10 million a year on capital.
So not a hugely capital intensive play.
Where we been spending the money in Technical Solutions is primarily automating our enclosure lines.
Obviously reducing labor and improving quality, reducing warranty, so we continue to do that because the payback and the IRR was quite high.
So again, mindful on capital, we always say creativity before capital.
Something <UNK> has taught the organization, we'll continue to implement that.
Hey, Josh.
Yes.
Yes, so I'll handle the first one, and I'll let <UNK> clarify it.
So right now, material in Valves & Controls is roughly 33% to 35% of sales.
So it gives you an indication, when you lose a dollar of revenue, what the impact is if you can't mobilize the cost out.
And after several cost out plans, you can assume that we have a fair amount of fixed costs for the business.
Yes, I would just say two things, Josh.
Number one, the level of complexity ---+ that we have made good strides particularly in the four wall lean reducing the complexity in the business, but in terms of the business complexity, it's still enormous.
And so, really <UNK> and the team have gotten, have gotten a really good focus on that.
So there's a lot more structure to take out.
But I would also ask you to ---+ I mean, I know I'm anxious to get to those answers too, and more fully and we'll be better prepared to give you more insights on November 6.
Most of what they sell is sold through distribution.
So it would be a classic, discount to a book list.
And then, they have a sales force ---+ very much like our full sales force, which even though our product goes through distribution, we have a sales force on the other side that helps sell it through, and sells through the applications.
There also is some project pricing.
But think of it more along ---+ more akin to like a Hoffman's structure.
We think we're maintaining.
Not growing, not losing, I think we're maintaining.
Particularly in the product lines we care most about.
Yes.
Yes, municipal, it's not just in the US.
It's more broadly than that.
I think it's a recovery of municipal spending.
Our backlog or ---+ excuse me, our order rate has been improving the last several quarters.
And as I mentioned, we figured we were going to turn to growth in Flow & Filtration in the fourth quarter, and we actually get growth in the third quarter.
So it's a little bit early.
Now we also put telecom in Infrastructure, and that's in Technical Solutions.
And that's we ---+ we talked about that, I mean, on the script.
Yes.
So we expect to finish this year 23% as we shared, and I think we believe this point of opportunity, be to the next several years.
Thanks.
The last question.
So it's on an adjusted basis, right, so it's ex amortization.
The ---+ things like it's rebranding, re-signing.
It's all the start of costs if you will, that we'd like to get them out of the way quickly, as opposed to less quickly.
I don't like that characterization.
It's expenses that might have been realized over ---+ within 2016 that we're going to get done and behind us in the fourth quarter.
On the first part, no, we don't see any of this causing disruption in our channels, certainly not at the moment.
And obviously, we'll be closely watching that as we enter into 2016, and how sustained this capital spending pause is.
As far as the other geographies, I mean as I mentioned North America was doing well, and then we saw the currency change, and we saw pull back in the overall North American model.
And now, we see just a global malaise I guess.
Well, I mean, [on fast ---+specifically fast growth], China and Brazil gets a lot of attention, but actually Southeast Asia is growing for us.
I'm talking about Pentair level.
Latin America ex-Brazil has grown for us, actually Middle East overall has grown for us.
So we still have opportunities and promise in those markets even as those larger countries struggle with that.
Thank you.
Thank you all.
All right.
Thank you everyone.
