JCI
#So when you look at it overall, how <UNK> mentioned in the high hazard, heavy industrial piece, that is down in the low mid single-digits, but the oil and gas specifically is down closer ---+ in the mid-teens level, kind of similar to what we have seen, and very much in line with our expectations.
Up a couple ---+ maybe up 1 point or 2.
Yes, I think overall, again, I'd attribute some of our improvement to the work that we've done from a commercial standpoint, in making sure that our resources are positioned where the activity is, and that we've got the right fundamentals in place.
So some of that improvement that we're seeing, I think is purely operational.
I would say where we are seeing some strength is in the commercial space, and being able to capitalize on that, as well as some of the institutional.
Certainly, we're still seeing weakness in oil and gas.
It's mainly in the marine space in Korea.
The ---+ when you look at hospitality, we have a big presence and have been very successful in Macau.
There has been some weakness there, although recently we start to see some pick-up in activity, and I think that now is being recognized more broadly.
So what I would I say is that some of it is operationally, the ability to be able to capitalize on where the growth is occurring, and then maybe additional stabilization within the overall economic environment.
Operator, we have time for one more question.
Good morning.
Hi, Jeremy.
Sure.
When we laid out our three year plan ---+ or the second three year plan, it was over a year ago November, when we laid it out.
We said that we were still positioned with the productivity initiatives to generate about $35 million of net productivity on an annual basis.
And that was through all of our key productivity initiatives, continuing to drive savings on cost of goods, as we focused on the buy, a pretty significant buy, streamlining that, and getting leverage on the buy.
It was continuing to simplify our footprint, on not only North America, but also across Rest of World to be able to leverage our real estate footprint.
And then, more important, with consolidation of the services that support that footprint.
And we were, as we now enter this merger, we were about halfway through the progress that we're making, relative to really getting towards entitlement of that cost.
And so, we're continuing that activity, and in some cases accelerating that now with the planning that we've been doing with the integration with Johnson Controls.
And that's where you can get the additional savings above and beyond what was planned.
Sure.
This is <UNK>.
You might recall, the IRS settlement earlier this year, and as a result of that IRS settlement on the intercompany debt matter, we reviewed the status of all our reserves associated with both our 2007 and 2012 tax sharing agreements.
Based on this analysis, we reduced our total reserves by $71 million, of which $54 million went through the other income line, and $17 million represented a benefit to the income tax line.
And both of those are special items in the quarter.
Thanks, Jeremy.
I'd like to turn the call back over to <UNK> for some final comments.
So once again, I'd like to thank you for joining us for what was our last official earnings call as standalone Tyco.
As we head into the merger and closing, I'm looking forward to working with Alex and our new leadership team.
I have been continually impressed by the level of talent and depth of expertise demonstrated by the employees of Johnson Controls, and I have been extremely pleased by the way our teams have come together.
I would also like to thank <UNK> for his leadership and guidance over the last year.
He quickly learned the business, and has made significant contributions to the team.
He has been a strong partner to me on our journey, and I wish him the best in the future.
I look forward to speaking with you on future calls, and at our Analyst Day on December 5 in New York.
Thank you, operator.
That concludes our call.
