Greetings. Welcome to the L3Harris Technologies first quarter calendar year 2022 earnings call. At this time, all participants are in listen-only mode. Today's call will be focused on questions and answers following brief opening remarks. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Rajeev Lalwani, Vice President of Investor Relations. You may now begin. Thank you, Rob. Good morning, and welcome to our first quarter 2022 earnings call. On the call with me today are Chris Kubasik, our CEO, and Michelle Turner, our CFO. First, a few words on forward-looking statements and non-GAAP measures. Forward-looking statements involve risks, assumptions, and uncertainties that could cause actual results to differ materially. For more information, please see our investor letter and SEC filings. A reconciliation of non-GAAP financial measures to comparable GAAP measures is included in the investor relations section of our website, which is l3harris.com, where a replay of this call will also be available. As a reminder, at the start of the year, we began reporting our results in our realigned three-segment structure that shifts pension items to the corporate level. With that, I'll turn it over to Chris for a few comments. Okay. Well, thank you, Rajiv, and good morning, everyone. As you saw, we released our results after the market closed yesterday in our new streamlined format. You know, we're always looking at ways to improve and challenge the status quo. Instead of issuing a press release at 7:30 A.M. this morning and have Michelle and I read prepared remarks, which were very similar to the press release and maybe with some added color, and then having you follow along with our web charts, which are just a graphic depiction of what we were gonna say anyway, we thought we'd try something new and come out with what we're calling our investor letter and putting everything in one document. That allows us all the time today to focus on the questions and talk about what is, what's on your mind. Just real quickly, the first quarter results are consistent with our prior commentary of a back half 2022 weighted revenue and margin plan. This will also be the case with our free cash flow as well. For the full year, we're reiterating our guide across the board as we continue to advance our strategy in a dynamic environment, whether it's from the pandemic or the global threats in Eastern Europe and elsewhere. Before opening the line to questions, I'd like to express our steadfast support to the people of Ukraine. I think we all agree, their unwavering strength and resilience are a motivating force behind our mission here at L3Harris. With that, Rob, let's open the lines for questions. Thank you. We'll now be conducting a question and answer session. In the interest of time, we ask that you please limit yourselves to one single part question. If you'd like to ask a question, please press star one on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question is from Robert Spingarn with Melius Research. Please proceed with your question. Good morning. Hey, good morning, Rob. Chris, I wanted to ask you really a general question to just elaborate on your Agile Development Group and the strategy behind the partnership with Shield Capital, but then something more specific, on the flight test status for your Integrated Core Processor for the F-35 Tech Refresh 3, and the possibility that delays on TR3 might push Block 4 out to fiscal 2029, and how all this impacts the revenue bathtub that you previously talked about between TR2 and TR3. Okay. Why don't I take F-35 first, and then I'll ask Michelle to give you some of the financial numbers on F-35. I'll come back and do ADG and Shield. Yeah, we talk about F-35 each quarter appropriately so. I'll say this last quarter is probably the best quarter we've had in a while. We're progressing through the integration and test, which we all know is the most challenging part of any development program. The Integrated Core Processor did begin safety of flight testing earlier in March. That is a good sign and progressing well. I do wanna highlight, we do also have the Panoramic Cockpit Display, which just completed its safety of flight. The Aircraft Memory System completed its full qualification test. Everything is tracking well to the first flight. You know, we just provide this to Lockheed, and I think in 2023 is gonna be the first flight of the aircraft. All seems to be going well. You know, on the contractual side, we secured a contract for ICP for Lot 16 and for AMS and PCD on Lot 16 and 17. We're getting to production contracts, and we're gonna be ready to hit the ground running as we complete these tests. As you'd expect, we're investing R&D and capital to continue to support the program and find more efficient ways to meet these commitments. I do wanna recognize the team because we are working effectively three shifts and weekends. This is the highest priority for everyone. We've had customer visits, and they've been very complimentary of the workforce and the progress that we're making. Michelle? Yeah. Good morning, Rob. Just to add a little bit of color from a financial perspective. Our overall mission avionics sector is gonna be down mid-single digits, consistent with what we shared before. The F-35 development's gonna be down low double digits before we get into the ramp from a production perspective. We anticipate going into next year, that will be flattish to up a couple of%. Yeah. Let me go back to the first question about the Agile Development Group and our investment in Shield. You've heard us talk about our strategy of being a trusted disruptor, investing more in R&D as a percentage of revenue than most, trying to prime more contracts, and embracing the new entrants that are disrupting the marketplace and the DoD. We set up the Agile Development Group. It is an entity that previously existed, so some of this is just kind of branding it and giving it the recognition it deserves. We have a couple thousand engineers in this group. Their R&D is double digits as a percentage of revenue. They're really the front end of the business. You know, they've been working with speed and agility and innovation. Most of their focus has been on modular open systems, which has been embraced by our customer. You know, it's hard to give examples 'cause a lot of what we're doing is in the classified arena. Initially focused on the air domain. We're also doing some interesting development on new and creative weapon systems. They're the front end. As we get these contracts out of development and into production, they'll hand these off to another entity who is world-class at producing them. I don't think it's the most unique thing in the industry, but it's something we thought made sense, and they're off to a pretty good start. I've spent a lot of time in D.C. and the customers have been excited about it and, you know, have even come down and visited our facilities and generally very impressed with how we're moving along. Now, Shield Capital is a venture capital firm. You know, they raised $125 million. We're their largest strategic partner. The thought process there was trying to find a way to get these new startup technology companies, which I differentiate from small businesses. Small businesses is a compliance, contractual compliance and usually applies to service contracts. These are mainly Silicon Valley high tech startup companies who have great commercial technologies that wanna support the Department of Defense, and it's hard for these companies to get programs of record, so we're embracing and working with them. We will make investments, either co-invest or through Shield in these companies, which is secondary to the goal of making this strategic investment, and that's to get this technology into our systems quicker, faster, more affordable, and meet the war fighter needs. Very excited about that, and we'll keep you updated as that progresses in the years ahead. Thank you. Our next question is from the line of Sheila Kahyaoglu with Jefferies. Please proceed with your question. Morning, Chris, Michelle, and Rajeev. Thanks so much for the bold new efficient format. I like it. I think, slide 16 or page 16 is my favorite, though. You know, Chris, since the last time we spoke, there's been a lot of change. The budget came out, you know, it was more robust of an outlook than we thought, coupled with NATO members stepping up defense spending. Given your ability to be perhaps more nimble than others, what are you seeing in terms of incremental opportunities, and how do you think that could impact the intermediate growth profile of LHX? Okay. Well, thanks, Sheila. We'll obviously welcome all feedback on the new investor letter, but I think we got a lot of positive feedback, giving you 15 hours to read it instead of one hour, so hopefully that was helpful. Yeah, on you know, Ukraine, and I'll just say Ukraine and the whole region, you know, the breaking news yesterday was you saw the White House ask Congress for an additional $33 billion of funding. You know, when you look into the details, which I know will evolve over time, $20 billion is for defense. Of that, $6 billion is the USAI, which is the Ukraine Security Assistance Initiative, and $6 billion is FMF. Those are two vehicles and processes that we're very familiar with and we've used over the last several years or decades in supporting Ukraine. I think we understand how that process works, which of course is very important. The $6 billion compares to $300 million last year, so this is a significant increase. You know, we just need to see how long it's gonna take to get this bill passed. As we read it, you know, it appears to have a lot more flexibility for acting quickly to get these contracts moving. As you would imagine, you know, we're in discussion with several customers in the region and here in the U.S.. There's lots of opportunities for L3Harris. You know, when you think of secure communications, I think it's been pretty well publicized the importance of having secure communications and, you know, that's worked well with Ukraine, who's been a longtime customer of ours. I think you can read and see that the Russians are having difficulty with the communication. That positions us well. You know, we have just under the whole ISR situational awareness, whether it's space ISR, air ISR, even the EOIR turrets. You know, out of WESCAM are examples of things that I think could be needed. Of course, night vision goggles. We're really not able to give a lot of details as you would imagine. You know, I think broadly we're well situated. Many of these capabilities are in our sweet spot, you know, even including EW electronic warfare. I think over the midterm, you know, we continue to believe low- to mid-single digits% is the right guide at this point in time. You know, we are starting to get demand signals. We're responding to RFIs, but you know, I do like the tailwinds, and I think you know, more to come over the next several quarters. I will say relative to being more agile or nimbler, I can't give you the specifics, but I can tell you within 15 days from receiving a request, we were able to ship product to help with the conflict. Just so you know, a lot of this, you know, is reprioritization, right? We have other customers who are willing, you know, to give up their products to get them over in the region. Then we have to obviously backfill those as well. I don't know if that got to all your points, Sheila, but that's, I think we're well situated. Thank you. Our next question is from the line of Robert Stallard with Vertical Research. Please proceed with your question. Thanks so much. Good morning. Morning. Chris, I'd reiterate the thanks for this new format, and the timing especially is very helpful. In terms of my question, inflation obviously is a big issue across the world at the moment. In relation to defense, there's obviously been some concern about how this could flow through on fixed price contracts. I was wondering if you could comment on that and what sort of alleviation L3Harris might have to this issue. Okay. Well, thank you. No, inflation is a challenge for all of us and I think all industries, and I think a lot of people immediately jump to the traditional supply chain and materials, which obviously gets the attention. But I also believe and we're planning for you know, wage and labor inflation as well as the job market gets tighter. So I think we look at it more broadly. You know, when I look at our backlog and our portfolio, you know, we have about 25% of our contracts are cost plus cost reimbursable. You know, so the way those are designed, the added cost flow through you know, to our end user. I think that's one of the reasons you see the budget increase, although I don't think anyone believes it's large enough to absorb all the inflationary headwinds. We have about 25% of our business through the not only commercial products, but the commercial business model that we've talked about. You know, whether it's our WESCAM turrets or our TACCOM radios and such. You know, similar to other industries at the right time, you increase your prices, you know, to take that on. The real, you know, risk, if you will, is the 50% that's firm fixed price. As you know, we don't have a lot of multi-year backlog, but we do have, you know, a little over 12 months of backlog. In that case, you know, it is a headwind. In a lot of those contracts, there's escalation clauses. You know, the reality is those indices are probably less than the real inflation, but that does absorb some of the headwind. You know, we've talked about E3 and some of the initiatives we're taking there. We've doubled down on that effort and are gonna have to continue to find ways to be more efficient. We're really embracing and rolling out digital engineering. You know, we're investing in more machinery and tooling to be more efficient. That's gonna be the challenge. Then, you know, on new bids, of which we do several. Michelle and I seems like every day are reviewing another proposal. You know, we have to build those costs into the bids going forward, obviously. That's how we address it. You know, it's given us a little bit of headwind as you see here in the quarter. I don't know, Michelle, if you want to maybe quantify it. Yeah. I would just characterize it's very consistent with what we shared in our previous guidance. The other thing I would say is that from a 2022 perspective, we've locked in most of our supply, pricing, so we've mitigated most of the risk, consistent with what we put into the guidance. Although I will say that this environment is becoming more elongated. As we're thinking about our strategic planning, this is certainly gonna be a headwind as we think about 2023. Our next question comes from the line of Gautam Khanna with Cowen. Please proceed with your question. Good morning, guys. Good morning. Thank you for the very efficient format, both last night and on your opening comments. I had a couple questions related to one another. A, if you could just broadly characterize kind of how LHX fared in the FYDP forecast. Open-ended question, if you could talk about radios, you've won a number of IDIQs, night vision, what have you. Take it as far as you'd like, but talk to us about the FYDP and how you guys are positioned. Okay. Did you have more, or is that just your only question? Meaning of life and other questions as well. We can defer that. Oh, okay. Yeah. I mean, as we saw the good news, you know, is we did get a 2022 budget finally. You know, we've talked at length of the challenges. It's taken 165 days to get a budget. Nonetheless, we did get a budget, and now we're starting to see some contracts and activity pick up at a quicker pace. For 2023, I think we've all seen just focused on the top line, the $773 billion top line. You know, in my discussions with several customers and members of Congress, I believe that number is actually gonna go up during the conferencing process. I think we've seen about $20 billion on the UPL list, the unfunded priority list, and I think a majority of that's gonna be ultimately rolled into the final 2023 budget. You know, relative to. I'll just go to the unfunded priority list first. You did mention night vision that was in the budget as a zero. It was zeroed out. Ourselves and our competitor are aggressively working The Hill to get that funding back in with the concurrence of the Army. We generally don't go to The Hill without our customer's support. The fact that that's on the UPL list, I think is a positive. That was probably the one thing that caught our eye on the negative side. On the positive side, I'll let Michelle talk a little bit about the IDIQs. Everything we looked at seemed to align well with what we wanted. I mean, we track all of our current programs, but we also look at new opportunities. We're very aggressive in bidding, opening the aperture and looking for new opportunities. We like to make sure those opportunities are funded even though they're competitive, because over the long run, we think we're well positioned to win some of those. The only thing I'd just also throw out beyond DoD is NOAA. I mentioned, you know, that we're well positioned with the next gen weather satellites. The NOAA budget went up 17%, 2023 over 2022. NASA's up 8%. Even the FAA, where we do a lot of work, is up 4%. When I look at DoD, NOAA, NASA, FAA, and then I think we've all been following the international budgets are trending up, especially in the NATO countries. I just see this as a lot of positive tailwinds that put us in a good position to continue to grow for the foreseeable future. Maybe I'll give it to Michelle to give a little more color. Yeah, no, I agree. I think often, at least in recent discussions, our radio business has been overshadowed by our supply chain challenges. When you look at the predictive indicators, whether we're talking about the budgets with double-digit growth on our handhelds or the IDIQs that we received within first quarter, $10 billion of IDIQs really speak to a predictive indicator on the overall growth within this business. We're excited about the near-term, going back to Sheila's question around the immediate opportunities that we're getting from the conflict environment as well. All of the macro indicators would suggest that we're gonna have a tailwind related to this business. We're excited about what's to come. We do need to get through the hurdle, however, with the immediate supply chain challenges. Thank you. Our next question is from the line of Peter Arment with Baird. Please proceed with your question. Yeah, good morning, Chris and Michelle. Thanks for your time, and I appreciate the new format like everyone else. I think it's really efficient. Hey Chris, I guess my question is just leading off what Michelle just mentioned on the supply chain, your comfort level around kind of things improving in the second half, and then also just how it relates to maybe do you take a more cautious approach and carry more inventory as we, you know, kind of look towards this kind of building budget environment and just kind of have a just in case supply versus, you know, kind of targeting your working capital days that you've been highly focused on. Thanks. Yeah, thanks. No, that's a great question. Clearly, that's the number one risk that we're all following and have been talking about for at least the last nine months and maybe longer. You know, but to put it in perspective from last time we had a conversation, you know, I would say it's about the same, you know. It feels like we're making progress. Every day is different. You know, we get two steps forward, one step back. I think the only thing that's changed in my mind is maybe the length of the recovery. You know, there's a belief that this was gonna all be behind us in 2022. I think it's gonna go into 2023. Again, when I look at supply chain, I put it in three buckets. We have inflation, we have materials, and we have labor. I think I've covered the inflation in a prior question. Again, you know, we're kind of in the mid- to high single-digit% rates, depending which index you're looking at. We know it's gonna come back down to lower single digits, but I'm thinking it's 2023, where previously people might have projected, you know, fourth quarter of this year. The materials, you know, is mainly the electronic components. You know, we've talked about our investments in a variety of tools, data analytics, and those processes are paying off as we get better visibility. At the end of the day, you know, the lead times continue to extend, and even the freight and shipping challenges are adding to the complexity, just getting the products into the country, and of course, the increased cost of just shipping everything. Labor, you know, the labor shortage, I think the attrition is up pretty much across our industry. You know, that's something we gotta figure out how to address. I think the labor shortage is even, you know, more significant within the supply chain. Therein lies the challenge. We've been very successful in our new college grad recruiting, so that's working well from our perspective. I'd say I feel about the same as I did 90 days ago, just a little longer recovery is the way I think I would summarize it. I don't know, Michelle, if there's- Yeah. Yes, I can add a little bit from a numbers perspective, but I do just because of the compliments that we received on the investor letter. I do wanna thank Rajiv and the IR team, along with our controller team, communications, and legal. A lot of collaborative effort went into creating this, and we feel like it's really a win on many levels. The one that I would highlight for this group is really how we're living into our DNA of being a trusted disruptor across the organization. It's not just about our products and technologies, it's about how each and every one of us show up differently to ensure we're differentiators. On the supply chain front, just to put some context from a numbers perspective, in first quarter, we expect this is gonna be slightly under $100 million in terms of the top line impact. We expect that that's gonna be fairly consistent in Q2 with the recovery happening in the second half and into 2023. To Chris's point, I think it's very consistent with what we were at in January, except with a potential elongation into 2023 as well. I do think it's also really important, going back to the budget conversation, to note that this is all about timing, in particular, within tactical radios. The demand for our products remain very strong, so it's really about getting through this short-term lift from a supply chain perspective. Thank you. Our next question is from the line of Doug Harned with Bernstein. Please proceed with your question. Good morning. Thank you. Good morning, Doug. I'd like to continue on the tactical radio side because, you know, when I think of the products that you've got here, I mean, this is sort of the, I think of a kind of post JTRS world where you're, you know, trying to have, you know, common waveforms. So you need a lot of interoperability. So it means you have to, in my sense, really outfit large portions, you know, of the military. When you think about the IDIQs you've gotten, can you talk about how you expect those to play out in terms of, in a sense, completing the deployment over time of the radios that the Army, the Marines, that they need over time? Second, how do you think about the conversion of those IDIQs into revenues in terms of your share, in terms of the timing of individual awards? Yeah. No, Doug, great question. Let me take the first part maybe at a higher level, and Michelle can give you some of the actual numbers that show you what we're doing relative to orders and revenue kind of quarter by quarter and the outlook. Look, you're absolutely right on the importance of these radios and the resilient communications. A lot of our R&D goes into new waveforms. As we've said before, the modernization you know is still in the early phases. You know, we talk about the SOCOM two-channel multiband handheld. That's an almost $400 million IDIQ. It's a little over halfway utilized, which still means there's a couple $100 million of opportunity. SOCOM's a great customer, and a lot of our radios start there and then migrate, you know, into the other services and even internationally. That was the handheld. We also have a single, you know, these are both single awards, which means we get, you know, obviously up to the IDIQ ceiling limit, you know, $550 million for the Manpack. That's about halfway through the spend. Clearly lots of opportunities in SOCOM, and, you know, it's 100% LHX. When we go into some of the tactical radios for the Marines, we had a two-channel handheld opportunity there. That was competitive, winner take all. Again, single award, $750 million that we won. That's really just getting started. We've had tens of millions of dollars on that so far. I think the ones you read more about and hear about are the dual awards. If you look at the Rifleman Radio, that's one where we're one of two, and same with the Manpack. Again, those were just awarded recently in a recompetition. Those ceiling limits go over a decade, just shy of $4 billion and $12.7 billion. The step one, as you know, is to win the IDIQ, kinda call that the hunting license, and then you go task order by task order or year by year. We're in really good position and, you know, the modernization will continue. Secure comms and situational awareness are two key things you need in any conflict. Before handing to Michelle, I will point out, notwithstanding, you know, some of the headwinds and volatility in our tactical comm revenue, we still have not missed a customer delivery. The team's doing a great job. Every day, different parts come in, get deferred, makes for a challenge. I will point out we did increase our inventory about $30 million just in TACCOM as we are trying to get more and more of the electronic components in sooner rather than later. As you know, the lead times are now 6-12 months, much more than they used to be. Michelle, you wanna give more color? Yeah. Just to put some context around the inventory builds, we did build inventory across the enterprise by about $100 million, what we call smart inventory, in terms of solidifying the second half revenue growth. I think it's a good call-out, Chris. On the IDIQs, we did have four substantial IDIQs from a land radio perspective within first quarter. The first one, a $6 billion 10-year dual source IDIQ. To Chris's point, you know, based on history and how that plays out, we would expect to get half of that in terms of as the funding comes in. Just a reminder, in terms of how we do our backlog, our backlog does not assume these IDIQs until they're funded. Part of what we saw play out within Q1 on the book-to-bill being right around one did not include any of the funding upside that we would anticipate as funding is added to these IDIQs. Just a couple other notes. We did book $3.7 billion from a five-year Navy multi-service. This is a sole source IDIQ, so that would be 100% coming to L3Harris. Similarly, a $750 million ten-year award with the Marine Corps. That was a competitive award. The final one was a $300 million SOCOM award, another sole source. Of the four booked, all were sole source except for the first one, which was dual source. Again, continue to have really strong predictive indicators in terms of our demand for radios. Thank you. Our next question comes from the line of Richard Safran with Seaport Research. Please issue your question. Chris, Michelle, Rajeev, good morning. I wanted to ask you know, you've been talking about the bookings. Book-to-bill was about 1.25. Your comments about continuing to grow. It just seems an understatement to say you're optimistic about demand, you know, given the global increases in defense spending and the upward trajectory of new awards. What does this say about book-to-bill, how book-to-bill for 2022 ends up? I mean, are we talking about an improving outlook here? Do you see international as a bigger driver of your bookings now? I guess if you could offer a comment on maybe how you're thinking about, you know, now what 2023 bookings might look like. Anything you could offer there I think would be helpful. Okay. Well, good morning, Richard. It's always good to hear from you. Yeah, we, you know, the first quarter was 0.98 book-to-bill, and that's really funded book-to-bill, as Michelle explained, so maybe a little more conservative than the way others look at it. Look, we've got a plan of about 1.05 book-to-bill, so we're looking at being over 1.0 each of the next three quarters. You know, we might be a tad on the conservative side, but, you know, we did have a CR through mid-March, and now, you know, we have to actually convert these into actual contracts. So that's the process we're going through. I see international as a tailwind as well. You know, we have some great opportunities for international ISR. We have our EOIR turrets. We just have to go through the process. We have congressional notifications and dealing with foreign governments and their approval process. We think we're in a good position. A lot of these are sole source that we're just going through the contracting and export and approval process, and I would expect those to close as planned. Hopefully over in the 105 range for this year. We haven't given a lot of insight into 2023, but we kinda use that as probably a benchmark for 2023 as well, because we keep talking about the tailwinds. Each and every day, everything seems to be positive relative to the demand signals that we're getting. We just have to win and then move forward. In fact, we're gonna be announcing, but the Navy announced something that we're quite excited about, and that was a recent award known as SPEIR, which is the Shipboard Panoramic Electro-Optical Infrared System. Why I wanna bring this up is, you know, it aligns perfectly, you know, with our strategy, which is to invest upfront in R&D, prime more opportunities, and then, you know, embrace new entrants or flip the paradigm and have some of the more legacy primes on our team. We'll get a press release out on this one shortly, but it's a $200 million EMD opportunity and just under $600 million with options. That's just for 21 ships for the US Navy. We believe it could be upwards of 100 ships. Of course, we have the international market. It's a competitive win. You know, we started this actually six years ago by investing our IRAD or R&D on passive targeting. Eight different businesses within L3Harris working together collaboratively. You know, this is a multi-billion dollar opportunity that we're really excited about, and it provides 360 EOIR passive detection and tracking, which is what our Navy needs. If you wanna put it under the JADC2 umbrella or whatever, this is a big deal. It's modular, it's open systems, and it's something that you'll see more of it in the days ahead. You know, we're waiting for award on something called Spectral with the Navy, which is the next gen SIGINT, the information operations and the electronic attack solutions. All these things. That has at least four bidders. You know, we're going after these things and it aligns with our strategy. These will start to give us more tailwind and confidence in our growth profile. Yeah. Just to add a couple additional words to that, because this is part of our second half growth. We are anticipating international ISR missionization programs in the second half as well. Specifically to the question on international, we did land within Q1 with a book-to-bill over 1.0, is 1.08 from an international perspective with 4% growth. I think that speaks to another predictive indicator in terms of our strategy is working. Then on the space side, clearly continues to be a growth engine for us. We are anticipating announcement of award on SDA Tracking Tranche 1 as well. That's another competitive award that we're anticipating in the second half of the year. Thank you. Our next question is from the line of David Strauss with Barclays. Please proceed with your question. Thanks. Good morning. Morning, David. Morning, Chris, Michelle. Wanted to touch on mix. You know, I think sounds like it was a benefit to IMS in the quarter, but a negative on SAS. I think for the full year, it's you know supposed to be a headwind to both of the segments. If you could just touch on kind of the big you know moving pieces when we think about mix and the impact on margins. Could you also just touch on the size you know within you know I think it's within IMS now, commercial aviation, how big that business actually is now, given you've sold off a decent you know chunk of it, and where that I guess that stands relative to you know like for like pre-pandemic levels? Thanks. Yeah. David, I'll start, and then Chris can jump in. From an overall mix perspective, to your point, our segment margins came in at 16%. You'll know that our guide is 16%-16.25%. We came in on the low end of that. But to your point, there was certainly some mix variation when you looked across our segments. I'll start with IMS. They had a really strong quarter, landing at 14.8% in comparison to our guide of 13.5%-13.75%. Really strong execution. Big compliments to Luke and our ISR team, but also overall program mix within our commercial aviation business. Compliments to Alan and his team as well. This is the fourth consecutive quarter of double-digit growth within our commercial aviation sector, and we're expecting that to continue to grow in the second half as well. Really strong EAC performance. We do expect that to modulate a bit as we get into second half to align with the guide that we provided. To your point, the opposite dynamic is actually playing out within SAS. We landed Q1 at 11.9% versus a guide of 12.5%-12.75%, which implies that there is gonna be increased expectations from a productivity perspective and mix. Now, we did have a really strong quarter from a space perspective within SAS. That's a lower margin business for us with a lot of the new program wins within it. We expect that coupled with our E3 savings to help that business in the second half of the year. Finally, from a CS perspective, we talked a lot about supply chain today, but that was clearly a headwind within Q1. We do expect with the volume recovery in second half that they're gonna be able to get to the overall guide of 24.25%-24.50%. Yeah. Just to on the commercial aviation, you know, we're right about $500 million of revenue this year is the outlook. You know, pre-pandemic, that was in the $900 million range for our commercial training business. We're continuing to be patient and take advantage of the rebound, which should be coming soon. We had previously divested the military training, so $900 million to $500 million there. I'll just foot stomp. The space business is really, you know, doing well. Well over $2 billion of revenue, double-digit growth. I just think we're in the sweet spot, whether it's priming these responsive space opportunities such as SDA and HBTSS that we've talked about, some classified opportunities, GPS and the NTS-3, which is the next generation of GPS, the weather satellites I mentioned, but also the exquisite satellites where, you know, we are a sub to other companies and provide our payload. You know, we're gonna take this work each and every time. Might be a little headwind on the margins, but it positions us long-term for growth and follow-on opportunities. Thank you. Our final question comes from Michael Ciarmoli of Truist. Please receive your question. Hey, good morning, guys. Thanks for taking the question here. Love the new format. Chris, just and maybe Michelle, back to the international and the demand environment. I guess if we looked at the growth trajectory, you know, really in the industry pre-war, it was really gonna be, you know, driven by, you know, U.S. DoD modernization, you know, next generation programs, you know, in this R&D phase shifting to production. But I guess given what we're seeing with NATO and, you know, the increases in their spending plans as a% of GDP, are you guys seeing, you know, more tangible evidence? You pointed out that 1.08 book-to-bill that there could be an increase for higher margin legacy systems as you go forward and that could potentially provide some structural margin tailwinds, you know, as you move into, you know, kinda this medium term if, you know, these European NATO countries really need to recapitalize their business or their industrial base rather. Yeah. No, Michael, that's a great question on the legacy systems. I think we're all learning if the system is out of production now, I think it's almost impossible to restart some of these weapon systems that you read and hear about, you know, haven't been in production for a decade. Being able to restart something, I think is difficult. If it's something that's currently operational but, you know, maybe an older version or something, I think those are gonna be easier to deploy. Again, you know, with the supply chain headwind, I think that is gonna be the challenge. I don't think anyone in the industry has a lot of these products lying around, you know, in their warehouses. We look for demand signals and contracts. What we're seeing is the customer has been depleting their inventory, so we're more in a restocking situation. Look, I'm real optimistic about our international opportunities. I think we are unique relative to other companies 'cause we have a combination of products, and we use a global distribution network. Then we have our more traditional business development staff with in-country executives in focus countries. About 10 focus countries. We're focused where we think these opportunities for growth are. I'm increasingly optimistic about what we've done in international. It's a larger percentage of our company each and every quarter. I think this quarter may be in the 23% range, so more to come. You know, now that COVID is easing, a lot of us are gonna be traveling around the globe more and more to continue to build these relationships and try to close deals. With that, you know, let me just say, first of all, I appreciate the feedback on our new format, so I think we're gonna do this again and continue to do it at least for the rest of the year and see if we can come up with something even more creative. I know our customers are under a lot of stress, and we're all working in industry to support our customers. You know, I mentioned the Agile Development Group and Shield Capital, you know, but this is a result of listening to our customer and hearing what they want and then taking action. A lot of this, you know, I have to credit our customers for saying they want new entrants, they want innovation, they wanna work with Silicon Valley type companies, so we're trying to adapt to that. Of course, I have to thank the employees. The dedication, the hard work, the innovative spirit, it's all inspiring. Feel like we got a lot of momentum, a lot of excitement, and really looking forward to wrapping up a solid 2022. I will just say in closing that we'll continue our humanitarian efforts for the people of Ukraine. We'll keep working with DoD, NATO allies, and others to support this mission and deal with the conflict at hand. Thank you for joining the call, and we'll wrap up a little earlier than normal. Have a great weekend, and talk to you in a couple months. Bye. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.