“However, we expect to continue reducing our aggregate net balance of direct supply and vendor financing on a year-over-year basis for the remainder of the year, which should lower our interest expense and continue to improve the quality and ratability of our cash flows over time.”

In context

“supplier financing by $2.4 billion. At the end of September, net debt to adjusted EBITDA was at 2.8 times, and we're making steady progress on achieving our target in the 2.5 times range in the first half of 2025. Looking forward, our debt maturities are very manageable and we're in a great position with more than 95% of our long-term debt fixed with a weighted average rate of 4.2%. In addition to paying down debt, we reduced direct supplier and vendor financing obligations by about $1.7 billion versus the second quarter. The third quarter net impact from securitization facilities was a $400 million source of cash. So the net of these items was a $1.3 billion use of cash. In the fourth quarter, we expect sequential increase in direct supplier financing balances due to typical seasonality. However, we expect to continue reducing our aggregate net balance of direct supply and vendor financing on a year-over-year basis for the remainder of the year, which should lower our interest expense and continue to improve the quality and ratability of our cash flows over time. DIRECTV distributions in the quarter were about $600 million on a pretax basis. Based on the terms of our agreement to divest our 70% stake in DIRECTV, we expect $1.1 billion of pre-tax cash payments in 4Q. Cash taxes were about $600 million in the third quarter, and we expect to pay about $1.6 billion in cash taxes in the fourth quarter. To close, I'm very pleased with our team's performance so far this year. And as John noted, we're on pace to deliver on all of our full year 2024 consolidated financial guidance. Brett, that's our presentation. We're now ready for the Q&A. Brett Feldman: Thank you, Pascal. Operator, we are ready to take the first question. Operator: Thank you. And that will come from the line of Simon Flannery with Morgan Stanley. Simon Flannery: Good morning. Thank you”