“We expect 2022 capital expenditures, including principal payments on finance leases, to be in the range of $29 billion to $34 billion, unchanged from our prior estimate.”

In context

“quarter, including softness in the back half of the first quarter that coincided with the war in Ukraine. Our guidance assumes foreign currency will be approximately a 3% headwind to year-over-year growth in the second quarter, based on current exchange rates. In addition, as noted on previous calls, we continue to monitor developments regarding the viability of transatlantic data transfers and their potential impact on our European operations, and we are pleased with the progress on a political agreement. Turning now to the expense outlook. We expect 2022 total expenses to be in the range of $87 billion to $92 billion, lowered from our prior outlook of $90 billion to $95 billion. We expect 2022 expense growth to be driven primarily by the Family of Apps segment, followed by Reality Labs. We expect 2022 capital expenditures, including principal payments on finance leases, to be in the range of $29 billion to $34 billion, unchanged from our prior estimate. Absent any changes to U.S. tax law, we expect our full year 2022 tax rate to be above the Q1 rate and in the high teens. In closing, our advertisers are adjusting to a new digital advertising landscape brought about by recent mobile platform changes while navigating a complex set of macroeconomic challenges. Given the resulting revenue headwinds, we have adjusted our plans for hiring and expense growth this year. We continue to see a lot of opportunity across our investment priorities and remain committed to dedicating additional talent and capital towards these areas while ensuring our investment plans are appropriately calibrated to the operating environment. With that, France, let’s open up the call for questions. Operator: Thank you. [Operator Instructions] And our first question is f”