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#No, and I think you may have meant the US linens business because the UK business we sold.
We do both have the US and the Netherlands businesses.
As we have mentioned in the past, those are relatively low margin businesses and so we haven't seen a significant change.
They are still relatively low margin, low growth businesses and we haven't seen a change there.
In the HSS business again, that business is a profitable business in the UK and we are investing in other parts of the world to grow that business to duplicate the UK model.
So again no change.
We still have a lot of interest from customers who are talking to us about potential outsourcing in the US.
But again, as we've said many, many times, it is going to take time for that to come to fruition, and we do see it as a nascent business.
We don't anticipate any significant revenue or profitability in that business certainly in this year, and it is going to be a while before it becomes a material part of the total STERIS profitability map.
First of all, it is a range, not a number and so we have a $0.15 range there.
And this is a $0.15 range and it is a $0.05 headwind.
So that certainly is encompassed in that kind of range, and obviously we didn't have our point forecast of where we are at the bottom of that range ---+ on the bottom number of the range.
So that is one answer.
The second answer is we do see strength in the North American operation in general in healthcare, and in the global operations in both life science and AST.
So we have some very strong positive feelings about that.
The rest of the globe for healthcare is a little tough, and so we are just mixing and matching all those components, and at this point in time in the year, we did not see it appropriate to change the range.
The short answer is we are seeing real strength and we are not alone in that.
The other guys in the capital business in North America are seeing real strength there in both orders and generally speaking in backlog.
And we also have visibility in the pipeline as we mentioned several times.
Usually three to six months of pretty clear visibility in the pipeline, and our pipeline looks the same as our orders.
It is just strong in North America right now.
But that can always change, but at this point in time, we are seeing real strength and it has been double-digit kind of strength now for six or nine months or so.
And it looks like the same kind of strength out in the future.
So out in the future meaning six months out or nine months out.
So it is a combination of replacement orders are staying strong and projects are increasing and you put those together and you get some nice increases.
I'm going to separate the capital piece from the rest of the consumables and service parts.
On the capital side, that business has now been steady for five years maybe and our backlog has bounced between $40 million and $45 million roughly for five years.
So I don't see any material long-term change there.
Mix has changed and our willingness to accept no profit business has changed and so the profitability from that business has changed significantly for the good.
Now when we look at the consumable side, there are a couple of pieces that make that up.
First of all, our chemistry business has just been quite strong and we have a nice set of chemistries and we've mentioned that we have also added some chemistries to our portfolio and so those are just picking up speed.
So it is a pure organic growing business.
We do think we are targeted at good spots.
We are targeted at vaccines and biologics which are nice growing pieces of the pharmaceutical business.
So we are just targeted in the right spots and we have some nice products.
We have had good organic growth and we see that continuing.
Then the acquisition of our barrier products which was the company called GEPCO, which is also consumable products in life science, have also been strong.
They had good growth, but we also have the ability ---+ they were essentially a US company ---+ and so we have a global footprint in the sales force, so we have the ability to move those products to global customers outside the United States.
It is a real opportunity for us to grow.
So we have just seen very nice positive movement in life science, and we continue to expect that on the consumable side of the business.
On the consumable side, I think the comps are fine and the growth rates are fine.
On the capital side, we had some really nice shipments I want to say in the mid-part of last year, and so we will clearly not see these kind of growth rates going forward.
I think to say the capital business is flat to slightly increasing is the right kind of general way to think about it for the year and for longer term.
It is a 40% growth for this quarter but that was just because of easy comps and a strong quarter, not a long-term change.
Well, Healthcare Products it is more dominant in the US.
I don\
About 70% of our Healthcare Products revenues come outside the US.
Inside the US.
All you have to do is ask what countries are experiencing fiscal difficulty because most countries outside the US are, for lack of better terms, are largely national healthcare programs.
So it is government budgets.
So all of the countries that are mineral-based or oil-based, all is a big word, but generally speaking those that are mineral-based or oil-based are having difficulty in their government budgets ---+ and as a result are having difficulty in their healthcare budgets.
So kind of off the top of my head in Latin America, Venezuela is just really, really challenged.
Brazil is quite challenged.
Moving to the Middle East, a big part of the Middle East which was a very strong healthcare business has slowed down significantly and Saudi Arabia in particular which was a very good healthcare business has the dual challenge of the weaker oil prices as well as having to fund some war issues at the same time.
So Saudi is particularly challenged.
But much of the Middle East, the oil-based economies are challenged.
We have seen actually a bit of a pickup in Asia, not China per se although we have actually done nicely in China.
It is a small business for us but not so much China but the areas outside ---+ so Southeast Asia has clearly been picking up for us.
But it is still challenged.
And Australia again, a mineral-based economy, has been challenged the last 12 or 18 months.
Certainly, <UNK>.
So the 34% operating margin that you mentioned with AST, I mean a lot of that is ---+ and we have talked about this before ---+ is we have a high fixed cost base and we did see exceptional volume increases this quarter so that volume once we cover the fixed cost is extremely profitable for us and that is the major driver.
On top of that, the integration with Synergy Health is actually moving along very nicely so we will probably get a little bit of a benefit there as we integrate our businesses.
But I would say first and foremost it is the volume piece that is driving the large increase.
I would mention, <UNK>, we are bringing a number of plants online and when we are bringing plants online, it means the ones that are currently running are full.
So we are running capacity-like numbers in a lot of places and that is a good time to be making some money.
We would expect some averaging of that over time.
We are trying to have them not come all at once so we don't have this nice build up and then a cliff, nice build up and a cliff.
We tried to even them out over periods of time but there is some, if you look at a plant by plant basis, it does look like that.
We are now getting to be good enough size, and we have 60 facilities roughly, and so we are getting to be a large enough size that one or two facilities doesn't crush us.
But you notice them when they come on board.
<UNK>, <UNK> is looking for the number but while he does, consumables are not really impacted by that.
They are sometimes because we go through distribution and sometimes our distributors stock up a little more, stock a little less, or the hospitals don't quite catch their seasonality correct.
But that tends to be minor fluctuations.
On the capital side, the 75/25 is roughly a good rule but we have clearly ---+ it goes in cycles and we had been to where replacement was the stronger piece a couple of years ago.
Projects have been picking up and they are continuing to pick up.
So again, <UNK> is doing some math right now.
I will let him report it but it has clearly picked up the last six months or eight months or so.
The outlook is also that way, there is more project kind of business out there.
<UNK>, we have gone from roughly 70/30 replacement versus projects and we are more looking like closer to now 60/40 so we have made a pretty substantial switch with the replacement versus the projects.
I would say from a cash flow standpoint, the seasonality will be tracking to income and for the most part, legacy STERIS has typically been more second-half weighted, legacy Synergy has been pretty much even throughout the year.
So I don't think it would be that much of a directional change from what we have seen historically.
AST is generally ---+ all things being equal, there is growth across, but all things being equal, AST tends to be stronger in the first half and Synergy was more AST oriented.
And the rest of STERIS has tended to be a little more back half particularly the capital side.
So it kind of mixes and matches.
I would still expect it to be generally speaking for seasonality a little stronger in the back half, A, just due to growth in general and B, because the back half tends to be a little more weighted particularly on the capital side.
First, I would say there are basically three projects in this integration and each of the two major businesses that are integrated.
The HSS, IMS business is one, and the AST business from both sides or formerly Isomedix and AST business the other.
The businesses integration for all intents and purposes is almost complete.
That is the organization structures and people and all those things.
Those integration teams are down to just a few items with the exception of the classic IT, where we are trying to get on common systems and all that stuff, which is much more like the central office integration functions.
But in terms of what I will call the business sales force, those kinds of things, we are coming into the home stretch if not in the home stretch and it has gone nicely, just full stop nicely.
The longer-term issues relate to systems, getting on common systems.
Both getting all the back office people ---+ whether that is human resources, IT, finance ---+ those systems take longer to integrate.
And so I will call it the long-tailed systems and that project team is still heavily working on their part of the integration not the least of which is things like legal structure type things.
Because we had ---+ I've forgotten exactly ---+ but 60 0or 70 legal entities in our business and they had 60 or 70 legal entities in their business.
We would like to get to 60 or 70 legal entities and that just takes time with lawyers and accountants and those kind of things.
It saves us money in the long run because we don't have to do 140 statutory reports, we do 60 or 70.
So those kinds of things are taking the time, and that was always expected.
Now to come down to the bottom line side of it, we hit our $5 million that we expected last year.
We are very comfortable with our $15 million forecast for this year and we are very comfortable with our $40 million or more now total forecast over the longer period of time.
And whether $2 million or $3 million of it slides into 2019 instead of 2018, my own view is we will probably hit 2018 and have a little extra that we can maybe slide into 2019.
But at a high level, any way you would look at it, we are quite comfortable with the numbers that we have in place.
