“But we expect that most of that negative cash will reverse in the second quarter with a stronger third quarter and then a steeper ramp in the fourth quarter.”

In context

“free cash flow to net income conversion for the year? Phebe Novakovic: Well, so let me talk about 700. We never, except I think, on 1 or 2 occasions about 5, 6 years ago, give the future year expectations. But 700 is a very, very successful program, and it will continue to execute well. I'll turn it over to Kim on cash. Kimberly Kuryea: On cash. Thank you, Phebe. So with respect to cash and the expectation, we still anticipate achieving about 100% of free cash flow conversion in 2024. We had expected the first quarter to be negative even before considering the fact that we didn't deliver any G700. So we had planned for a negative free cash flow in the first quarter, and that was mostly driven by some contract timing in the Combat Systems segment and some in the Marine Systems segment. But we expect that most of that negative cash will reverse in the second quarter with a stronger third quarter and then a steeper ramp in the fourth quarter. Operator: We will take our next question from Myles Walton with Wolfe Research. Myles Walton: Phebe, could you comment on -- or Kim, could you comment on the margin expansion implied at Combat Systems as you move through the rest of the year? I think it has to be 80 to 100 basis points on average up year-on-year for the rest of the year. And maybe the underlying dynamics of given the volume, why we didn't see more of a drop-through margin in the first quarter? Phebe Novakovic: So what drove margin in the first quarter were two things: mix as we came off of older legacy programs, particularly in the vehicle world and in the U.S. and then -- and began ramping up newer programs, vehicle programs in the U.S.; and then a significant amount of the revenue growth came from facilities investme”