“Depreciation for 2025, now you should expect $1.8 billion to $2 billion; that's slightly down from the previous expectation.”

In context

“he groundwork over there, right? So, there is still quite a bit of execution in LFAB2 and we will see how that timing works as we continue to move forward on that execution. Rafael Lizardi: Let me add one more thing. Just given that we have been officially awarded a $1.6 billion we already booked that on our balance sheet. So, we have $1.6 billion receivable. You can see that on the balance sheet. The other side of that, $1 billion of that decreased our net PP and E and because that's related to a factory that's already built. $0.6 billion of that is actually deferred liability because it's related to a factory that's not built. But the bottom line where I'm going is that this is already going to decrease our expected depreciation. So, with that, let me give you an update to depreciation. Depreciation for 2025, now you should expect $1.8 billion to $2 billion; that's slightly down from the previous expectation. And for 2026, we're keeping the range the same, $2.3 billion to $2.7 billion, but I'll tell you that we expect to be on the lower half of that range. That's the 2026 depreciation expectation, $2.3 billion to $2.7 billion to be at the lower end of that range. Dave Pahl: Great. Thank you, Harlan. We'll go to the next caller, please. Operator: Thank you. Our next question comes from the line of CJ Muse with Cantor Fitzgerald. Please proceed with your question. CJ Muse: Yeah, good afternoon. Thank you for taking the question. I know you guys are loathe to talk beyond the quarter, but I was hoping you could give us a framework for thinking about gross margins beyond the March quarter. You just gave us the depreciation. That's very helpful. Would love to hear kind of your thoughts on what's opt”