“And given the powerful economic and strategic benefits of our Cox transaction, the pro forma entity will generate higher free cash flow per share in spite of delevering, which will reduce our cost of capital.”

In context

“billion in the second quarter, flat with last year's second quarter, with higher network evolution and CPE spend, offset by lower line extension spend. We now expect total 2025 capital expenditures to reach approximately $11.5 billion versus $12 billion previously, primarily due to the timing of network evolution spend and lower line extension spend spread in commercial and subsidized rural. The majority of the $500 million spending shortfall this year will be spent next year in 2026. On a stand-alone basis, we still expect 2025 to be our peak capital spend year in dollar terms. 2025 should also be our peak year of capital intensity, even including the impact of the Cox transaction and associated integration capital, assuming that it's closed with capital intensity falling going forward. And given the powerful economic and strategic benefits of our Cox transaction, the pro forma entity will generate higher free cash flow per share in spite of delevering, which will reduce our cost of capital. Turning to free cash flow on Slide 13. Second quarter free cash flow totaled $1 billion, a decline of $250 million year-over-year. The decline was primarily driven by higher cash taxes, higher cash interest and a working capital headwind related to mobile handsets. Turning to second quarter and full year 2025 cash taxes. On our last call, I noted that we expected to pay approximately $1 billion in second quarter cash taxes. In the end, we ended up paying less than that, approximately $650 million, given the timing of certain tax- related items. Looking forward, new federal tax legislation passed by Congress and signed into law in July, has improved our cash tax outlook for the full year. We now expect that our calendar year 2025 cash tax payments will total a bit over $1 billion, down fro”