“What we could find ourselves in a situation is that we're recording multiple lots in 2024, which would put some downward pressure on next year's margins. So we'll have a better feel for that next year, and it could be in the range of anywhere between 25 to 50 basis points of headwind from where we are and where we end today or this year from a margin perspective.”

In context

“at and how that impacts could impact next year? And any other items we should be watchful of that might exert gravity on margins? Thank you. Jay Malave: Sure, Cai. Thanks. So yes, I mean, that's the question we've talked about. It's been a headwind. It's something that we've talked about for the upcoming number of years, including next year. And in fact, we are seeing some of the headwind this year, and it really - it's dependent upon an analysis really the timing of recognition of these losses. And there are certain things that need to be met from a performance standpoint on the program. And then it becomes an assessment on the probability of an option being exercised. And so there's just variability in that timing. It could be as early as, frankly, as this quarter, or into next quarter. What we could find ourselves in a situation is that we're recording multiple lots in 2024, which would put some downward pressure on next year's margins. So we'll have a better feel for that next year, and it could be in the range of anywhere between 25 to 50 basis points of headwind from where we are and where we end today or this year from a margin perspective. So hopefully, that provides a little bit of color on the impact of that program. Is that - as far as any others, look, we - if you look at this year, we had lower profit adjustments this year. We expect there to be in the low 20s in 2023. We're evaluating what that means for 2024 in general. But again, I think, as I mentioned in my prepared remarks, we're expecting the underlying business to be pretty much flattish, which would include recurring margins as well as profit rate adjustments in 2024. Jim Taiclet: Yes. And Cai, it's Jim. Just to add on the classified program. First of all, given my Air Force filed experience, I can tell you that this is a really important capability for the country. It should continue on as an important capability for many, many years and even decades, assumin”