“We do expect a benefit from taxes with lower R&D capitalization as that's coming down, and we expect a little bit of benefit from, I'll call it cash based net income.”

In context

“helpful in the deck. But just given a lot of moving pieces in cash flow like the F-35 inventory unwind pension contribution recovery, Lot 18 cash timing. Maybe I missed that one. But if we could just kind of do a bridge walk on cash flow, that would be great. Jay Malave: If you just start from this year, adjusted cash flow at 6.1. So adjusted for the pension contribution in 2024. As we mentioned that we expected anywhere around close to a billion dollars of benefit on F-35 with the delivery of -- with higher deliveries as well as progress on the withholds. We also, though, as you remember, in 2024 got the benefit of significant international advances to the tune of $600 million. So partially offsetting, that is, it's the net impact of those two things. About $400 million in that ballpark. We do expect a benefit from taxes with lower R&D capitalization as that's coming down, and we expect a little bit of benefit from, I'll call it cash based net income. All that taken together takes us from $6.1 billion to the $6.7 billion midpoint. So those are the key drivers of free cash flow for 2025. Operator: The next question comes from Scott Deuschle of Deutsche Bank. Your line is open. Scott Deuschle: Hey, thanks, Jay. It looks like if you're guiding. Looks like you're guiding Aeronautics margins down about 20 basis points year-over-year in 2025. If I add back those unplanned charges to the 2024 base. Jay Malave: Yes. Scott Deuschle: Can you talk a bit about what drives that underlying margin decline, particularly given that you are on these newer contracts for F-35. Jay Malave: Yes. So for F-35, we do have. I'm sorry, for Aeronautics in total right now, the outlook for their margins does assume lower net profit adjustments, and that's called an”