“I will tell you though, as we move forward, we will expect any kind of inflation pressure to be offset by an expectation that we continue to drive productivity. So we think we'll be able to manage that mix.”

In context

“ng. Kelly Ortberg: Morning. Gavin Parsons : I just wanted to follow up on that BCA margin question a little bit with the price side of that, the price-cost mix. You know, how much of max 10 starting to contribute helps drive the margin up? How much of, you know kind of escalators or realized price increases over the coming years? And then a quick clarification on inventory. Just how much cash is tied up in both completed aircraft and WIP? Thank you. Kelly Ortberg: So in terms of the profile for BCA, of course, we've got a backlog that is in place, that has embedded escalation in it. That hasn't changed. That's good. And in terms of our supply contracts, you know they are vastly signed up until end of this decade. So that doesn't really disrupt the near term or even the medium term per se. I will tell you though, as we move forward, we will expect any kind of inflation pressure to be offset by an expectation that we continue to drive productivity. So we think we'll be able to manage that mix. More to come as we move out of this year and get into more of that normal stable position. But nothing right now would suggest it's going to disrupt that long-term margin outlook that BCA's enjoyed historically. And of course, some of the mixed benefits that you mentioned, both the 10 on the 37 and the 10 on the 87 are going to be natural tailwinds, including the consolidation at Charleston that we've always talked about and we still feel very good about as we move towards normal production rates. So more work to do, but no big disruptions that we see as we sit here today. In terms of the inventory, we've got $87.5 billion worth of inventory in the company right now. That is too much. Now, it's been an investment in stability and we are committed to make that investment so that we can get”