“We're going to generate $4.9-ish billion of free cash at the midpoint, up from $3.1 billion that we did last year.”

In context

“ners. Jeffrey Sprague: Thank you. Good morning, everyone. Larry Culp: Good morning. Jeffrey Sprague: Good morning. Could we just talk a little bit more about cash flow and kind of what you're thinking into next year? The spear to my question, Larry or Rahul, is we're still dealing with kind of a sizable difference between actual free cash flow and adjusted free cash flow. I think some of this is warranty and other things working through the system. Can you just elaborate a little bit on the factors in the disconnect and can we get to maybe a normalization of these factors as we think about the independent companies in 2024? Rahul Ghai: Yes. Let me kind of -- let's just spend maybe a minute on our free cash flow here. So first, as you look at our cash for the year, it's a really good year. We're going to generate $4.9-ish billion of free cash at the midpoint, up from $3.1 billion that we did last year. And a lot of that is coming from earnings growth. Clearly, that is a huge contributor and that is helped by kind of lower interest payments. But if you look at our working capital performance continues to be really strong this year. You've seen our year-to-date numbers. You've seen -- even as you project that into the fourth quarter. We are doing an exceptional job managing our days sales outstanding. So despite our top line revenue growth, we are still expecting that overall our AR balance will be neutral, Jeff. And the reason I say that is just kind of shows the opportunities that the business has for continued improvement. And then progress payments, contract assets continues to be a positive as well given the strong growth environment. The part I want to anchor on is a little bit on g”