“Some of these airplanes will go into next year, that will help next year.”

In context

“ases. And that plus the remedy to which we're entitled. We're going to continue to work both of those issues with our customers. Operator: We'll take our next question from Gavin Parsons at UBS. Gavin Parsons: Thanks, good morning. Phebe, you of course have delivered some G700s out of inventory this year and maybe some out of inventory again next year. Can you help us with what the underline…? Phebe N. Novakovic: We are out of inventory. Help me with what you mean by out of inventory. I mean, we don't have 700 in inventory. And 700 that are in some stage of production, but just picking a nit there with you. Ronald Epstein: Yes, fair. I guess can you help us with the underlying production rate? Phebe N. Novakovic: Yes. So I try to be as explicit as I could be for the remainder of the year. Some of these airplanes will go into next year, that will help next year. And then we'll give you a lot of clarity around what next year looks like in our ordinary course when we give you our guidance in January. The airplane is performing very well. But we still, as I've noted, frequently, we still got out of station work, that needs to get behind us. Ronald Epstein: Okay. And I'll try one more. I don't know if this is just an accounting question, but you called out all the elevated cost on paint interiors component replacement on G700. How does the 600 to 700 basis point margin step-up remain intact? Phebe N. Novakovic: Well, that will happen. I don't have exact clarity on when those gross margin improvements will happen, but I think relatively soon and over the course of potentially the next year, we have to see some really nice margin expansion. We're seein”