Otis Worldwide Corp

Previous wording

In August 2024, we received a favorable ruling regarding a German tax litigation. Pursuant to the Tax Matters Agreement ("TMA") with United Technologies Corporation ("UTC"), our former parent, subsequently renamed RTX Corporation ("RTX"), and based on the facts and contractual provisions, additional information received from RTX and indemnity payments during 2025, the Company estimated the amount payable to RTX as a result of the outcome of the German tax litigation to be $56 million as of December 31, 2025. Based on indemnity payments made to RTX and adjustments to the indemnity payable in the quarter ended March 31, 2026, the Company now estimates the remaining amount payable to RTX to be $55 million, resulting in indemnification expense of $5 million and $52 million for the quarters ended March 31, 2026 and 2025, respectively. This indemnification expense is included in Other income (expense), net in the Condensed Consolidated Statements of Operations for the quarters ended March 31, 2026 and 2025. This estimate could further change due to the parties' continuing dispute concerning the scope of the final indemnity amount, which will be resolved pursuant to the procedures set forth in the TMA.

Current wording

In August 2024, we received a favorable ruling regarding a German tax litigation. Pursuant to the Tax Matters Agreement ("TMA") with United Technologies Corporation ("UTC"), our former parent, subsequently renamed RTX Corporation ("RTX"), and based on the facts and contractual provisions, additional information received from RTX and indemnity payments during 2025, the Company estimated the amount payable to RTX as a result of the outcome of the German tax litigation to be $56 million as of December 31, 2025. Based on indemnity payments made to RTX and adjustments to the indemnity payable in the six months ended June 30, 2026, the Company now estimates the remaining amount payable to RTX to be $55 million. The adjustments to the indemnity payable resulted in indemnification expense of $5 million for the six months ended June 30, 2026 compared to $6 million and $58 million for the quarter and six months ended June 30, 2025, respectively. There was no indemnification expense in the quarter ended June 30, 2026. This indemnification expense is included in Other income (expense), net in the Condensed Consolidated Statements of Operations for the quarters and six months ended June 30, 2026 and 2025. This estimate could further change due to the parties' continuing dispute concerning the scope of the final indemnity amount, which will be resolved pursuant to the procedures set forth in the TMA.

Previous wording

Global macroeconomic conditions have impacted, and continue to impact, aspects of the Company's operations and overall financial performance during the quarters ended March 31, 2026 and 2025. These macroeconomic conditions include, among others, geopolitical conflicts, inflationary pressures, high interest rates, tighter credit conditionsand changes in global trade policies including higher tariffs in the U.S. and other countries. These macroeconomic trends could continue to impact our business, including impacts to overall financial performance during the remainder of 2026, as a result of the following, among other things:

Current wording

Global macroeconomic conditions have impacted, and continue to impact, aspects of the Company's operations and overall financial performance during the quarters and six months ended June 30, 2026 and 2025. These macroeconomic conditions include, among others, geopolitical conflicts, inflationary pressures, high interest rates, tighter credit conditionsand changes in global trade policies including higher tariffs in the U.S. and other countries. These macroeconomic trends could continue to impact our business, including impacts to overall financial performance during the remainder of 2026, as a result of the following, among other things:

Previous wording

The factors contributing to the total percentage change year-over-year in total Net sales for the quarter ended March 31, 2026 are as follows:

Current wording

The factors contributing to the total percentage change year-over-year in total Net sales for the quarter and six months ended June 30, 2026 are as follows:

Previous wording

The Organic volume increase of 1% for the quarter ended March 31, 2026 was driven by an increase of 5% in Service, partially offset by a decrease of (5)% in New Equipment.

Current wording

The Organic volume increase of 6% for the quarter ended June 30, 2026 was driven by an increase of 9% in Service, partially offset by a decrease of (1)% in New Equipment. The Organic volume increase of 4% for the six months ended June 30, 2026 was driven by an increase of 7% in Service, partially offset by a decrease of (3)% in New Equipment.

Previous wording

The factors contributing to the percentage change year-over-year for the quarter ended March 31, 2026 in total cost of products and services sold are as follows:

Current wording

The factors contributing to the percentage change year-over-year for the quarter and six months ended June 30, 2026 in total cost of products and services sold are as follows:

Previous wording

The Organic volume for total cost of products and services sold increased 2% for the quarter ended March 31, 2026, primarily driven by the organic sales changes noted above and the impacts of higher labor and material costs, partially offset by productivity.

Current wording

The Organic volume for total cost of products and services sold increased 7% and 4% for the quarter and six months ended June 30, 2026, respectively, primarily driven by the organic sales changes noted above and the impacts of higher labor costs including the impact of ongoing costs to support operational execution and productivity, and higher material costs.

Previous wording

Gross margin percentage increased 40 basis points for the quarter ended March 31, 2026, when compared to the same period in 2025, due to the increase in Service sales and decrease in New Equipment sales and the benefits from productivity, partially offset by the cost increases described above.

Current wording

Gross margin percentage decreased (90) basis points and (20) basis points for the quarter and six months ended June 30, 2026, respectively, when compared to the same periods in 2025, due to the cost increases described above, partially offset by an increase in Service sales and decrease in New Equipment sales.

Previous wording

Research and development was relatively flat for the quarter ended March 31, 2026, when compared to the same period in 2025.

Current wording

Research and development was relatively flat for the quarter and six months ended June 30, 2026, when compared to the same periods in 2025.

Previous wording

Selling, general and administrative expenses increased $46 million for the quarter ended March 31, 2026, when compared to the same period in 2025, driven by annual wage increases, higher costs resulting from organizational initiatives, costs to support ongoing operational execution and the impacts from foreign exchange, partially offset by savings resulting from restructuring actions and lower restructuring costs.

Current wording

Selling, general and administrative expenses increased $21 million and $67 million for the quarter and six months ended June 30, 2026, respectively, when compared to the same periods in 2025, driven by annual wage increases, higher costs resulting from organizational initiatives, costs to support ongoing operational execution and the impacts from foreign exchange, partially offset by savings resulting from restructuring actions and lower restructuring costs.

Previous wording

Selling, general and administrative expenses as a percentage of Net sales increased 40 basis points for the quarter ended March 31, 2026, when compared to the same period in 2025.

Current wording

Selling, general and administrative expenses as a percentage of Net sales decreased (40) basis points and was flat for the quarter and six months ended June 30, 2026, respectively, when compared to the same periods in 2025.

Previous wording

Other restructuring costs were $7 million for the quarter ended March 31, 2026 and included $4 million of costs related to 2026 actions and $3 million of costs related to 2025 actions.

Current wording

Other restructuring costs were $18 million for the six months ended June 30, 2026 and included $14 million of costs related to 2026 actions and $4 million of costs related to 2025 actions.

Previous wording

Transformation costs were $23 million in the quarter ended March 31, 2025, which are primarily for consultants, third-party service providers and personnel focused on designing and implementing a centralized service delivery model that supports our new organizational structure, including the standardization of our supply chain and digital technology procurement. These UpLift transformation costs are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations.

Current wording

In addition to UpLift restructuring costs, UpLift transformation costs were $41 million in the six months ended June 30, 2025, which were primarily for consultants, third-party service providers and personnel focused on designing and implementing a centralized service delivery model that supports our new organizational structure, including the standardization of our supply chain and digital technology procurement. These UpLift transformation costs are recorded in Other income (expense), net in the Condensed Consolidated Statements of Operations.

Previous wording

Most of the expected charges will require cash payments, which we have funded and expect to continue to fund with cash generated from operations. The table below presents approximate cash outflows related to the restructuring actions during the quarter ended March 31, 2026, and the expected cash payments to complete the actions announced:

Current wording

Most of the expected charges will require cash payments, which we have funded and expect to continue to fund with cash generated from operations. The table below presents approximate cash outflows related to the restructuring actions during the six months ended June 30, 2026, and the expected cash payments to complete the actions announced:

Previous wording

The approved UpLift restructuring actions generated approximately $103 million in annual recurring savings at the end of 2025, primarily in Selling, general and administrative expenses, and of which approximately $25 million was realized during the quarter ended March 31, 2026, including $6 million of incremental savings compared to the same period in 2025.

Current wording

The approved UpLift restructuring actions generated approximately $103 million in annual recurring savings at the end of 2025, primarily in Selling, general and administrative expenses, and of which approximately $51 million was realized during the six months ended June 30, 2026, including $12 million of incremental savings compared to the same period in 2025.

Previous wording

For other restructuring actions, we generally expect to achieve annual recurring savings within the two-year period subsequent to initiating the actions, including $7 million for the 2026 actions and $38 million for the 2025 actions, of which approximately 25% relates to Cost of products and services sold and 75% relates to Selling, general and administrative expenses. Approximately $9 million of savings was realized for the 2026 and 2025 actions during the quarter ended March 31, 2026.

Current wording

For other restructuring actions, we generally expect to achieve annual recurring savings within the two-year period subsequent to initiating the actions, including $24 million for the 2026 actions and $38 million for the 2025 actions, of which approximately 25% relates to Cost of products and services sold and 75% relates to Selling, general and administrative expenses. Approximately $20 million of savings was realized for the 2026 and 2025 actions during the six months ended June 30, 2026.

Previous wording

In January 2025, we announced the reorganization of our operations in China. Among other aspects, this reorganization will result in restructuring actions of approximately $30 million. These actions primarily included severance-related costs, and these actions were substantially completed as of December 31, 2025. Amounts related to the reorganization of operations in China are included within Other restructuring.

Current wording

In January 2025, we announced the reorganization of our operations in China. Among other aspects, this reorganization resulted in restructuring actions of approximately $30 million. These actions primarily included severance-related costs, and these actions were substantially completed as of December 31, 2025. Amounts related to the reorganization of operations in China are included within Other restructuring.

Previous wording

The change in Other income (expense), net of $94 million for the quarter ended March 31, 2026 compared to the same period in 2025, was partially driven by lower Separation-related adjustments of $47 million. The change is also impacted by the absence of prior period items including, $23 million of UpLift transformation costs, $21 million of non-recurring litigation-related settlement costs, $10 million of impairment loss related to net assets held for sale, and the gain on sale of fixed assets.

Current wording

The change in Other income (expense), net of $97 million for the six months ended June 30, 2026 compared to the same period in 2025, was partially driven by lower Separation-related adjustments of $56 million, partially offset by the unfavorable impacts of foreign exchange and other adjustments. The change was also impacted by the absence of prior period items including; $41 million of UpLift transformation costs, $21 million of non-recurring litigation-related settlement costs, $10 million of impairment loss related to net assets held for sale, and the gains on the sale of fixed assets of $14 million.

Previous wording

The changes in Interest expense (income), net of $14 million for the quarter ended March 31, 2026, compared to the same period in 2025, were primarily driven by lower interest income and higher interest expense related to the $500 million unsecured, unsubordinated debt issued in September 2025, partially offset by lower interest expense related to the repayment of the $1.3 billion unsecured, unsubordinated debt in April 2025.

Current wording

The changes in Interest expense (income), net were flat and $14 million for the quarter and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily driven by higher interest expense related to the $700 million unsecured, unsubordinated debt issued in May 2026 and the $500 million unsecured, unsubordinated debt issued in September 2025, partially offset by lower interest expense related to the repayment of the $1.3 billion unsecured, unsubordinated debt in April 2025. The quarter ended June 30, 2026 also benefited from higher interest income.

Previous wording

The average interest rate on our long-term debt for the quarters ended March 31, 2026 and 2025 was 3.0% and 2.7%, respectively. For additional discussion of borrowings, see Note 6 to the Condensed Consolidated Financial Statements.

Current wording

The average interest rate on our long-term debt for the quarters ended June 30, 2026 and 2025 was 3.1% and 2.8%, respectively. For additional discussion of borrowings, see Note 6 to the Condensed Consolidated Financial Statements.

Previous wording

The decrease in the effective tax rate for the quarter ended March 31, 2026, compared to the same period in 2025, is primarily due to the absence of the impact of the increase in our estimated nondeductible TMA indemnity obligation payable to RTX recorded in the quarter ended March 31, 2025.

Current wording

The decrease in the effective tax rate for the quarter and six months ended June 30, 2026, compared to the same periods in 2025, is primarily due to the reduction in a deferred tax liability related to the mitigation of future repatriation costs recorded in the quarter ended June 30, 2026. In addition, the decrease in the effective tax rate for the six months ended June 30, 2026, is due to the absence of the impact of the increase in our estimated nondeductible TMA indemnity obligation payable to RTX recorded in the quarter ended March 31, 2025.

Previous wording

Noncontrolling interest in subsidiaries' earnings was flat for the quarter ended March 31, 2026 compared to the same period in 2025. Other than our acquisition of the noncontrolling shares of Otis Electric Elevator Company Limited during the fourth quarter of 2025, ownership interest in the underlying non-wholly owned subsidiaries has remained generally consistent year-over-year.

Current wording

Noncontrolling interest in subsidiaries' earnings decreased for the quarter and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to lower net income from non-wholly owned subsidiaries. Other than our acquisition of the noncontrolling shares of Otis Electric Elevator Company Limited during the fourth quarter of 2025 and the acquisition of majority ownership of a French company in April 2026, ownership interest in the underlying non-wholly owned subsidiaries has remained generally consistent year-over-year.

Previous wording

Net income attributable to Otis Worldwide Corporation increased for the quarter ended March 31, 2026, compared to the same period in 2025, due to higher operating profit (including the impact of foreign exchange rates) and a lower effective tax rate, partially offset by higher interest expense.

Current wording

Net income attributable to Otis Worldwide Corporation increased for the quarter and six months ended June 30, 2026, compared to the same periods in 2025, due to higher operating profit (including the impact of foreign exchange rates) and a lower effective tax rate, partially offset by higher interest expense in the six months ended June 30, 2026.

Previous wording

Summary performance for New Equipment for the quarters ended March 31, 2026 and 2025 was as follows:

Current wording

Summary performance for New Equipment for the quarters and six months ended June 30, 2026 and 2025 was as follows:

Previous wording

Summary analysis of the Net sales change for New Equipment for the quarter ended March 31, 2026 compared with thesame period in 2025 was as follows:

Current wording

Summary analysis of the Net sales change for New Equipment for the quarter and six months ended June 30, 2026 compared with thesame periods in 2025 was as follows:

Previous wording

The organic sales decrease of (5)% was primarily driven by a greater than (20)% decline in China, mid single-digit decline in Asia Pacific and low single-digit decline in Americas, partially offset by low single-digit growth in EMEA.

Current wording

The organic sales decrease of (3)% was primarily driven by a greater than (20)% decline in China, low single-digit decline in EMEA and Asia Pacific, partially offset by mid single-digit growth in Americas.

Previous wording

New Equipment operating profit decreased $(28) million. The impacts of lower volume, unfavorable price, regional and product mix and higher costs resulting from organizational initiatives were partially offset by productivity. Operating margin decreased (240) basis points.

Current wording

New Equipment operating profit decreased $(56) million. The impacts of lower volume, unfavorable price, regional and product mix and higher costs resulting from organizational initiatives were partially offset by productivity. Operating margin decreased (230) basis points.

Previous wording

Summary performance for Service for thequarters ended March 31, 2026 and 2025 was as follows:

Current wording

Summary performance for Service for thequarters and six months ended June 30, 2026 and 2025 was as follows:

Previous wording

Summary analysis of Service Net sales change for the quarter ended March 31, 2026 compared with thesame period in 2025 was as follows:

Current wording

Summary analysis of Service Net sales change for the quarter and six months ended June 30, 2026 compared with thesame periods in 2025 was as follows:

Previous wording

The organic sales increase of 5% is due to increases in maintenance and repair of 4% and in modernization of 6%.

Current wording

The organic sales increase of 9% is due to increases in maintenance and repair of 6% and in modernization of 24%.

Previous wording

Service operating profit increased $19 million including foreign exchange tailwinds of $29 million. Higher volume and improved pricing were more than offset by higher costs resulting from organizational initiatives, costs to support ongoing operational execution, higher labor and material costs, and mix. Operating margin decreased (160) basis points.

Current wording

Service operating profit increased $40 million including foreign exchange tailwinds of $34 million. Higher volume and improved pricing were partially offset by higher costs resulting from organizational initiatives, higher labor costs including the impact of ongoing costs to support operational execution and productivity, higher material costs, and mix. Operating margin decreased (160) basis points.

Previous wording

General corporate expenses and other was relatively flat for the quarter ended March 31, 2026 compared to the same period in 2025.

Current wording

General corporate expenses and other increased $18 million and $19 million for the quarter and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven by the unfavorable impacts of foreign currency mark-to-market adjustments, other adjustments, and the absence of the gain on the sale of fixed assets of $7 million in the prior period.

Previous wording

As of March 31, 2026, we had cash and cash equivalents of $834 million, of which approximately 83% was held by the Company's foreign subsidiaries. We manage our worldwide cash requirements by reviewing available funds among the many subsidiaries through which we conduct our business and the cost-effectiveness with which those funds can be accessed. On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions and divestitures or other legal obligations. As of March 31, 2026 and December 31, 2025, the amount of such restricted cash was $10 million and $9 million, respectively.

Current wording

As of June 30, 2026, we had cash and cash equivalents of $813 million, of which approximately 73% was held by the Company's foreign subsidiaries. We manage our worldwide cash requirements by reviewing available funds among the many subsidiaries through which we conduct our business and the cost-effectiveness with which those funds can be accessed. On occasion, we are required to maintain cash deposits with certain banks with respect to contractual obligations related to acquisitions and divestitures or other legal obligations. As of June 30, 2026 and December 31, 2025, the amount of such restricted cash was $36 million and $9 million, respectively.

Previous wording

As of March 31, 2026, there was $35 million in borrowings outstanding under the Company's $1.5 billion commercial paper program, consisting of €30 million of Euro denominated commercial paper. For additional discussion of borrowings, see Note 6 to the Condensed Consolidated Financial Statements.

Current wording

As of June 30, 2026, there were no borrowings outstanding under our $1.5 billion commercial paper program. For additional discussion of borrowings, see Note 6 to the Condensed Consolidated Financial Statements.

Previous wording

On March 16, 2026, the Company repaid the Japanese Yen denominated 0.370% notes due in 2026, upon maturity, using cash on hand.

Current wording

On March 16, 2026, we repaid the Japanese Yen denominated 0.370% notes due in 2026, upon maturity, using cash on hand.

Previous wording

On January 16, 2025, our Board of Directors approved a share repurchase program for up to $2.0 billion of Common Stock, of which approximately $900 million was remaining as of March 31, 2026.

Current wording

On January 16, 2025, our Board of Directors approved a share repurchase program for up to $2.0 billion of Common Stock, of which approximately $500 million was remaining as of June 30, 2026.

Previous wording

The year-over-year increase in net cash provided by operating activities was primarily driven by working capital balances during the periods, including a larger inflow in Contract assets and liabilities, current, in the quarter ended March 31, 2026 compared to the same period in 2025, due to the timing of billings on contracts compared to the progression on current contracts, a decrease in Other current assets in the quarter ended March 31, 2026 compared to an increase in the same period in 2025, due to the refunds received in 2026 from the German tax litigation, and a smaller decrease in Accounts payable in the quarter ended March 31, 2026 compared to the same period in 2025, due to the timing of payments to suppliers, partially offset by a decrease in Accrued Liabilities in the quarter ended March 31, 2026 compared to an increase in the same period in 2025, due to payments on the indemnity obligation to RTX and restructuring liabilities, and a larger increase in Accounts receivable, net, in the quarter ended March 31, 2026 compared to the same period in 2025, due to timing of billings and collections. Additionally, UpLift-related net payments were approximately $12 million in the quarter ended March 31, 2026, compared to $30 million in the quarter ended March 31, 2025. Separation-related payments were approximately $6 million in the quarter ended March 31, 2026. There were no Separation-related payments in the quarter ended March 31, 2025.

Current wording

The year-over-year increase in net cash provided by operating activities was primarily driven by higher net income and changes to working capital balances during the periods, including a larger inflow in Contract assets and liabilities, current, in the six months ended June 30, 2026 compared to the same period in 2025, due to the timing of billings on contracts compared to the progression on current contracts, a smaller decrease in Accounts payable in the six months ended June 30, 2026 compared to the same period in 2025, due to the timing of payments to suppliers, partially offset by a larger increase in Accounts receivable, net, in the six months ended June 30, 2026 compared to the same period in 2025, due to timing of billings and collections and a decrease in Accrued liabilities in the six months ended June 30, 2026 compared to an increase in the same period in 2025, due to the timing of payments of restructuring and the timing of tax payments and the related income tax expense. Additionally, UpLift-related net payments were approximately $25 million in the six months ended June 30, 2026, compared to $52 million in the same period in 2025. Separation-related payments were approximately $63 million in the six months ended June 30, 2026, compared to $72 million in the same period in 2025.

Previous wording

During the quarter ended March 31, 2026, net cash provided by operating activities was $413 million. The primary drivers of the inflow related to $353 million of net income, changes in Contract assets and liabilities, net, due to the timing of billings on contracts compared to the progression on current contracts, and a decrease in Other current assets due to refunds received in 2026 from the German tax litigation were partially offset by an increase in Accounts receivable, net, due to the timing of billings and collections, a decrease in Accounts payable due to timing of payments to suppliers and a decrease in Accrued liabilities due to timing of payments, including employee-related benefits, interest and income taxes. For additional discussion of the German tax litigation, see Note 1 and Note 15 to the Condensed Consolidated Financial Statements.

Current wording

During the six months ended June 30, 2026, net cash provided by operating activities was $680 million. The primary drivers of the inflow related to $802 million of net income, changes in Contract assets and liabilities, current, due to the timing of billings on contracts compared to the progression on current contracts, and a decrease in Other current assets due to refunds received in 2026 from the German tax litigation were partially offset by an increase in Accounts receivable, net, due to the timing of billings and collections, an increase in Inventories primarily due to higher production inventory levels related to the timing of deliveries to construction sites and a decrease in Accrued liabilities due to Separation-related payments. For additional discussion of the German tax litigation, see Note 1 and Note 15 to the Condensed Consolidated Financial Statements.

Previous wording

During the quarter ended March 31, 2025, net cash provided by operating activities was $190 million. Net income of $256 million includes $52 million of indemnification expense resulting from the outcome of the German tax litigation, $21 million of litigation-related settlement costs and $10 million of impairment loss related to net assets held for sale, none of which resulted in cash flow activity during the quarter ended March 31, 2025. Net income and the change in Contract assets and liabilities, net, due to timing of billings on contracts compared to the progression on current contracts, were also partially offset by a decrease in Accounts payable due to the timing of payments to suppliers and an increase in Accounts receivable, net, due to the timing of billings and collections. For additional discussions of the German tax litigation, see Note 1 and Note 15 to the Condensed Consolidated Financial Statements.

Current wording

During the six months ended June 30, 2025, net cash provided by operating activities was $405 million. Net income of $679 million includes $58 million of indemnification expense resulting from the German tax litigation, $21 million of litigation-related settlement costs and $10 million of impairment loss related to net assets held for sale, none of which resulted in cash flow activity during the six months ended June 30, 2025. Net income and an increase in Accrued liabilities due to the timing of payments of employee-related benefits and the timing of tax payments and the related income tax expense were partially offset by a decrease in Accounts payable, due to the timing of payments to suppliers and an increase in Accounts receivable, net, due to the timing of billings and collections. For additional discussion of the German tax litigation, see Note 1 and Note 15 to the Condensed Consolidated Financial Statements.

Previous wording

During the quarter ended March 31, 2025, net cash used in investing activities was $161 million. The primary drivers of the outflow related to $34 million of capital expenditures, $36 million of acquisitions of businesses and intangible assets and $93 million of net cash payments from the settlement of derivative instruments.

Current wording

During the six months ended June 30, 2025, net cash used in investing activities was $320 million. The primary drivers of the outflow related to $200 million of net cash payments from the settlement of derivative instruments, $82 million of acquisitions of businesses and intangible assets and $70 million of capital expenditures. These were partially offset by $34 million of net proceeds from the sale of fixed assets.

Previous wording

During the quarter ended March 31, 2026, net cash used in financing activities was $694 million. The primary drivers of the outflow were repurchases of our Common Stock of $400 million, dividends paid on our Common Stock of $163 million and repayments of long-term debt of $135 million. These were partially offset by the net proceeds from short-term borrowings of $29 million.

Current wording

During the six months ended June 30, 2026, net cash used in financing activities was $621 million. The primary drivers of the outflow were repurchases of our Common Stock of $807 million, dividends paid on our Common Stock of $330 million and repayments of long-term debt of $135 million. These were partially offset by the proceeds from the long-term debt issuance of $700 million.