“Given the timing of currency and stranded cost dynamics, we'd expect about one-third of our net income in the first half and about two-thirds in the second half.”

In context

“r assets. Due to advances in technology, we are making an accounting change to extend the useful life of our server and networking equipment effective the 1st of January. Based on our year-end asset base, we expect this change to benefit 2023 pre-tax profit by over $200 million, primarily in our Infrastructure segment. Given this is a change to the depreciation, there's no benefit to cash. Looking at the first quarter, our constant currency revenue growth should be fairly consistent with the full year. Reported growth will also include about a three-point currency headwind at current spot rates. With operating leverage, we'd expect operating pre-tax margin to expand 50 to 100 basis points in the first quarter. And that's before the charge I just mentioned for the remaining stranded costs. Given the timing of currency and stranded cost dynamics, we'd expect about one-third of our net income in the first half and about two-thirds in the second half. To sum it all up, we have made a lot of progress this past year. While there's always more work to do, we're confident in the fundamentals of our business, and how we're positioned as we enter the New Year. Patricia, let's go to the Q&A. Patricia Murphy : Thank you, Jim. Before we begin the Q&A, I'd like to mention a couple of items. First, supplemental information for the quarter and the year is provided at the end of the presentation. And then second, as always, I'd ask you to refrain from multi-part questions. Operator, let's please open it up for questions. Operator: Thank you. At this time, we’ll begin the question-and-answer session of the conference. [Operator Instructions] Our first question will come from Amit Daryanani with Evercore. Your line is open. Amit Daryanani: Thanks a l”