“we do expect to make about $1 billion worth of payments this year.”

In context

“ease, David. David Strauss: Thanks. Good morning. Christopher Calio: Good morning. Neil Mitchill: Hey, David. David Strauss: So I wanted to follow up on GTF and the spend there. I think, Neil, you had talked about it ramping up in Q3. It doesn't look like it did. It sounds like you plan on spending less this year, maybe if you can help us what the path looks like from here as it relates to '25 and '26. But I guess just high level, if you're reaching compensation agreements with your customers, your customers have a lot of aircraft on the ground out of service. I guess, why aren't you paying more or are you swapping maybe cash payments for something else in the future? Thanks. Neil Mitchill: Sure, David. Happy to provide a little more color there. First of all, just so everyone's grounded, we do expect to make about $1 billion worth of payments this year. We've made a little over $300 million year-to-date. We've talked about the number of customer agreements that we have in place. It's 28 now, covers about 75% of the AOGs. And so what we do as a matter of our practice years, we're crediting the customers as the AOGs occur. We consider that a cash payment when that credit is applied to a customer account or we make a cash payment. So that's how we're quantifying it. It's a cash equivalent, if you will, impact to us during the year. It's coming down a little bit because it's taken some time to get these agreements in place. And once we have agreements, then we're following the terms of those agreements and issuing those credits or making those payments. We do expect that to ramp up now in the fourth quarter. What I can say is, overall, all o”