GE
#Yes.
On the capital allocation question, we're not changing any way in terms of how we're thinking about the trade between M&A and buyback.
Certainly with the stock at $28 or $29, the buyback looks quite attractive to us.
We're not short ideas on M&A, I don't think.
We're constantly evaluating M&A opportunities.
I think just what we've announced recently here between SLM and Arcam, which is an investment that's going to have a huge payback longer-term, and most recently the LM acquisition, we are continuing to evaluate M&A opportunity.
So I wouldn't read through as we're short ideas on M&A.
We're just, I think ---+ we'd like to be more aggressive around the stock given the outperformance by GE Capital in terms of what they are returning to us and operationally what we're able to do through our capital allocation model that was unrelated to M&A and leverage.
So, <UNK> do you want to ---+.
I would just say, <UNK>, I think Avio is the right way to think about LM.
We see good opportunities in the supply chain.
We think the next few years the visibility we have on wind is pretty solid in terms of PTC and global demand.
We think between us and LM we've got good technology that can really innovate in the industry.
And what we saw on Avio is we were able to keep the non-GE base in Avio, and we think we can do the same thing with LM.
Lastly, your question ---+ it really bolsters us in China and India and a lot of the emerging markets where we see growth potential for us in the future.
So we look at it as a reasonably low-risk investment where a lot of the levers are in our control and we have, I think, a disproportionate upside if we execute well.
Okay, so first on buyback.
Let me be absolutely clear.
The $4 billion buyback is an increase of the model we gave you that went through 2018.
We're buying $4 billion more stock than we said we would when we gave you the plan through 2018.
On SG&A: in the third quarter, structural SG&A was up 1%.
That was 12.6% of sales.
Third-quarter year-to-date we're actually down 4%, about 13% of sales.
It was a bit of a drag in the quarter, partly because SG&A was up 1% and volume was essentially down slightly on a calculation basis.
So it ended up being about a 10 basis point drag in the quarter.
Other inflation that sits in the Other line is associated with inflation on base cost, and most of that is EOP.
There's other indirect expenses that also incur inflation, and that's what you see on that line.
Other inflation ex-FX, if you take out the impact of FX ---+ so some of those marks go through the Other line in that walk ---+ was a negative 60 basis points as opposed to what we showed you in the walk.
Okay.
A couple quick announcements, <UNK>, before you wrap up.
The replay of today's call will be available this afternoon on our Investor website.
We will be holding the Minds + Machines conference out in San Francisco on November 15 and our annual outlook meeting on December 14.
We'll be holding our fourth-quarter earnings call on January 20.
<UNK>.
Great, <UNK>; thanks.
Just a couple points to wrap up.
I think we plan to have a solid Q4 and wrap up a really solid 2016.
Looking forward, I think we're being realistic about the environment in the resource sector and Oil & Gas.
But don't be mistaken; we still think this is a core GE business and one where our team is managing it extremely well through the cycle.
The rest of GE is executing very well.
Alstom remains on track in 2017 and 2018.
The buyback is ahead of plan.
We've got a really good line of sight to incrementally take more cost out of the Company and be even more efficient.
And all of our compensation plans, whether it's the long-term incentive plan or the AIP, which is in our IC plan, all tied to the bridge that we showed you in 2015 and where we march in 2016, 2017, 2018.
So we're aligned with investors, <UNK>, and I think we are quite confident in the performance of the Company.
Great.
Thank you for joining.
