“Our net FAS/CAS pension adjustment declines around $400 million from last year to a little less than $1.7 billion for 2024 due primarily to lower FAS pension income.”

In context

“oduction lots, amounting to approximately 50 basis points of margin headwind against our consolidated results. With that framework in mind, we anticipate sales between $68.5 billion and $70 billion, with the midpoint that represents approximately 2.5% growth. At the midpoint, we expect growth in three of the four segments with MFC leading the way at 7% growth from a strong munitions backlog. At the high end, all four segments would grow. Segment operating profit is expected to be between $7.175 billion and $7.375 billion down at the midpoint as lower expected profit adjustments and the MFC classified losses more than offset volume benefits. Excluding the MFC classified program, 50 basis points impact, underlying margins in the balance of the portfolio are expected to be approximately 11%. Our net FAS/CAS pension adjustment declines around $400 million from last year to a little less than $1.7 billion for 2024 due primarily to lower FAS pension income. The pension headwind, along with lower segment profit and higher interest expense lead to lower expected EPS year-over-year to be between $25.65 and $26.35. For purposes of clarity, on Page 12, we've included an EPS walk at the midpoint of the range. Benefits from volume mix provide about $0.55, with the impact of the MFC classified program losses, netting down segment operating profit to a $0.35 decline. Total FAS/CAS pension is about $1.40 headwind with higher taxes and interest more than offset by the lower share count. Our free cash flow estimate for 2024 has ranged between $6 billion and $6.3 billion. So bringing it all together, we expect continued sales growth in 2024 off the higher 2023 base, some profit and EPS pressure based on loss recognition timing, but with continued solid c”