Douglas Harned: And then, clearly and it sounds like you’re looking at this so over the next 12 months or so you see this shift but clearly it also requires more money in the budget. We saw a lot of money come in in ’23 budget from the senate last year. But you’re expecting then in the budget to also be able to cover these higher costs?
Kathy Warden: I expect that the budget will need to incorporate these higher costs to the extent that inflation exceeds the growth of the overall budget, they could of course be supplemental or priority. Will be made in terms of what the government will buy. We’ve already seen for the government happening to reduce quantities on program from their anticipated level which you address the higher cost coming in based on the inflation and we expect that to continue for the foreseeable future as the contracts come up for renewal.
Operator: Thank you. One moment for question. Our next question comes from Sheila Kahyaoglu with Jefferies. You may proceed.
Sheila Kahyaoglu: Good morning, guys. Thank you. I want to ask about space specifically fees. Your revised guidance takes into account $1.6 billion of sales growth in 2023. Can you maybe bucket this growth for us and where is it coming from, how much of it is GBSD and how do we think about the margin implications of this growth given the quarter?
Kathy Warden: So, a good bit of the growth has been and continue this year to come from two programs: GBSD and MGI. We have talked about that been approximately half of the growth and the other half coming from a broad set of programs but most notably our national security portfolio which is about 80% of our overall revenue in the space business. And the margin profile is similar across those businesses with early space development being lower margin as we shift into production there like we talked about earlier on the call will present the opportunity for space margins to continue to expand. But we’re really pleased with the 9% that we’re seeing there. Obviously we work to get that closer to 10% through the work that we’re doing, there is some performance.
And in the longer-term is mix as seen and have the part potential to go even higher. But when you look at 9% for a business, that is the door, that type of growth and been able to continue to manage through the disruption of the macroeconomic environment. We feel like we’re in a good place.
Sheila Kahyaoglu: Thank you.
Operator: Thank you. One moment for questions. Our next question comes from Matt Akers with Wells Fargo. You may proceed.
Matt Akers: Hey, good morning. Yes, thanks for the question. I want to ask about and I think there was a GAO reporter in the quarter that customer maybe some schedule rips on that program, I think it’s cost-plus any have been, just your thoughts on how that programs going, is there maybe any riskier than that?
Kathy Warden: Yes, thanks for the question. So, this is in regards to Sentinel or GBSD as many of you know it. And there was a GAO report that’s focused schedule pressure. We’ve been talking about that and the U.S. Airforce has as well as we have seen disruption in supply that has flowed through to schedule pressure on the program. We’re in the process of working with the Airforce on looking to optimize the schedule to see what we can pull outward obviously it’s shifting right and how we can maintain the initial operating capability day which is the primary focus of the government, so that we cannot place those missiles in silos as anticipated later in the decade.
