“We've got a guide of nearly 12% for the year.”

In context

“argely FMS. But it's a broad range, it’s going to last for many years, and we'll continue to be updating you on other programs, let's start getting more international traction. Operator: The next question is from Myles Walton from Wolfe Research. Please go ahead. Myles Walton: Thanks, good morning. Maybe on RMS, could you talk about the driver to the expansion in the margin implied in the guidance? I guess a couple of 100 basis points implied run-rate for the rest of the year. Is that something programmatic, was there extra R&D associated with FLRAA? And also on FLRAA now that, that decision is made. Anything you anticipate needing to do at Sikorsky to maintain competitiveness? Thanks. Jay Malave: So, Myles, on your first question on RMS margins, you know, again the first quarter was 10%. We've got a guide of nearly 12% for the year. What happens is a little bit of the opposite of MFC. This was their lowest property adjustment quarter of the year. We expect that to grow based on the program schedules and the risk retirements that we foresee for the balance of the year and so that will step-up and just give you -- just to frame a reference. The first quarter their step-ups were about 20% of their profit. For the full-year, we're expecting that to be closer to 30% for profit adjustments for the full-year for RMS. So that will be a big contributor to the increase in profitability. The second element is that we have just some sales mix, we have some pass that attracts higher margin sales up in the second-half of the year, which will also give a boost to their margins. So that's fundamentally what's happening at RMS. As fa”