Revenue: Fourth quarter revenue decreased 6%, primarily from lower Intelligence, Surveillance and Reconnaissance (ISR) aircraft missionization efforts, partially offset by increases in CAS and Maritime. Full year revenue was flat primarily from lower ISR aircraft missionization volume, offset by higher revenue in Electro Optical, Maritime and CAS.

Operating Margin: Fourth quarter operating margin was down primarily from the impairment associated with the pending sale of the CAS business. Fourth quarter segment operating margin¹ increased 150 bps from improved program performance. Full year operating margin declined 60 bps primarily due to an unfavorable net change in EACs, the sale of end-of-life inventory in the prior year and higher volume of lower-margin domestic ISR aircraft revenue, partially offset by lower impairments and research and development expenses. Full year segment operating margin¹ decreased 180 bps from the factors noted above excluding impairments.

Communication Systems (CS)
		Fourth Quarter										Full Year										Guidance
	($ millions)	2023				2022				Change		2023				2022				Change		2024
	Revenue	$	1,363			$	1,193			14%		$	5,070			$	4,217			20%		$5,300 - 5,400
	Operating margin		26.1	%			24.9	%		120 bps			24.2	%			15.8	%		840 bps
	Segment operating margin 1		26.1	%			24.9	%		120 bps			24.2	%			24.2	%		— bps		low-mid 24%*

* A reconciliation is not available. See the note on page 2 and Non-GAAP Financial Measures on page 6 for more information.

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