“We expect that to grow for the year around 10%.”

In context

“tell us what's going on to cause that to occur? Thanks. Jay Malave: Okay. I'll start with the second one first on RMS margins and then come back on the F-35. On the margins for RMS, you're right, George, we're expecting an increase in profitability there. It's really a twofold function of higher profit adjustments. And there are - and I think I've talked about this in the past, we do have some mix benefits through some delivery - program deliveries here in the fourth quarter, which will give them some lift. As far as the F-35, just really from a sales perspective in the quarter, production was down pretty substantially, really close to 20%. Development was up quite substantially and sustainment was up in the high teens. So with solid there on sustainment, that's been strong all year long. We expect that to grow for the year around 10%. Operator: Thank you. And our next question is from the line of Ron Epstein. Jim Taiclet: Lois, are you still there? Operator: Yes. One moment. We're opening his line. I'm sorry, the next person that we will go to is David Straus from Barclays. Please go ahead. David Strauss: Hi, good morning, everyone. Jim Taiclet: Good morning, David. David Strauss: Jay, I think the IRS came up with some recent updated guidance around Section 174. I want to see what your interpretation of that was, whether it's supported your position or your peers that are taking, I think, higher levels of - or a higher associated with Section 174. And then any updated thoughts on where pension might come out for you guys next year given what appears to be much higher discount rates and weak asset returns? Thanks. Jay M”