What changed in this filing

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Item 1. Business

2024-02-08 compared with 2023-02-07 · 123 added, 110 removed, 309 unchanged (43% of the section changed)

(Dollars in millions, except per-share amounts or unless otherwise noted)

(Dollars in millions, unless otherwise noted)

BUSINESS OVERVIEW

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The result is long-term value creation measured by strong earnings and cash flow and an attractive return on capital.

Over the past 10 years, we have invested in our business to create, renew or expand our portfolio of products and services across our businesses.

Over the past decade, we have invested in our business to create, renew or expand our portfolio of products and services across our businesses.

This includes product development investments in Aerospace to bring to market an all-new lineup of business jet aircraft, capital investments in Marine Systems to support significant growth in U.S.

Navy ship and submarine construction plans over the next two decades, development of next-generation platforms and technologies to meet customers’ emerging requirements in Combat Systems, and strategic acquisitions to achieve critical mass and build out a complete spectrum of solutions for our Technologies customers.

As we emerge from this period of significant investment, we expect to realize an attractive return from these investments in each of our segments and continue to evaluate our capital deployment opportunities to deliver long-term growth and enduring value to our shareholders.

We expect to realize an attractive return from these investments in each of our segments and we will continue to evaluate our capital deployment opportunities to deliver long-term growth and enduring value to our shareholders.

Following is additional information on each of our operating segments.

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We believe the key to long-term value creation in the business jet industry is steady investment in new aircraft models and technologies and in customer service capabilities.

As a result, since we acquired Gulfstream more than 20 years ago, we have made significant investments in research and development (R&D), state-of-the-art manufacturing facilities, and maintenance and support through a combination of product development efforts, capital expansion and the acquisition of Jet Aviation’s global support network.

Since acquiring Gulfstream more than 20 years ago, we have made significant investments in research and development (R&D), state-of-the-art manufacturing facilities, and maintenance and support through a combination of product development efforts, capital expansion and Jet Aviation’s global support network.

We are also the industry leader in the use of sustainable aviation fuel (SAF) and energy efficient engines.

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The most recent additions to the in-service Gulfstream fleet are two large-cabin aircraft, the G500 and G600, which entered service in 2018 and 2019, respectively.

These clean-sheet (i.e., all-new) aircraft replace the G450 and G550 models, whose combined family has an installed base of more than

1,650 aircraft around the world.

Our investment included development of a new wing, new avionics, new fuselage and new ergonomically designed larger interiors, as well as systems and technologies to improve the manufacturing process and quality of the platform.

These clean-sheet (i.e., all-new) aircraft replace the G450 and G550 models, whose combined family has an installed base of more than 1,650 aircraft around the world.

Our investment included development of a new wing, new avionics,

new fuselage and new ergonomically designed larger interiors, as well as systems and technologies to improve the manufacturing process and quality of the platform.

As a result, the G500 and G600 are faster, more fuel efficient, and have greater cabin volume, reduced emissions, more range and improved flight controls compared with the aircraft they are replacing.

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It combines our most spacious cabin with our advanced Symmetry Flight Deck, the industry’s most technologically advanced flight deck, which we launched on our G500 and G600 aircraft, and the superior high-speed performance of all-new engines to create best-in-class capabilities.

Gulfstream is in the process of flight testing and seeking U.S.

Federal Aviation Administration (FAA) certification of the G700, which currently has logged more than 3,200 test hours.

We expect the G700 to enter service following certification from the FAA in the summer of 2023.

We expect the G700 to enter service following certification from the U.S.

Federal Aviation Administration (FAA) in early 2024.

In 2021, we introduced two new aircraft, the ultra-long-range, ultra-large-cabin G800 and large-cabin G400, completing a nearly two-decade effort to develop an all-new family of Gulfstream aircraft.

Both aircraft combine our industry-leading high-speed range and efficiency, safety enhancements, and our advanced Symmetry Flight Deck.

The G800 is Gulfstream’s longest-range aircraft, with an 8,000 nautical mile range at Mach 0.85, and it is expected to enter service approximately six months after the G700, pending FAA certification.

The G800 is Gulfstream’s longest-range aircraft, with an 8,000 nautical mile range at Mach 0.85.

The G400 is a clean-sheet design developed in concert with the G500 and G600, thus expanding the commonality across the Gulfstream family of aircraft.

Expected to enter service in 2025, pending FAA certification, the G400 will join a market segment in which Gulfstream has not participated for several decades.

The ultra-long-range, ultra-large-cabin G650 and G650ER continue to generate significant customer interest, with more than 500 aircraft of this family currently operating in more than 50 countries.

Since the first G650 entered service in December 2012, its capabilities and reliability have led to significant sales and expansion of our installed base around the globe.

The G400 will join a market segment in which Gulfstream has not participated for several decades.

Both aircraft will enter service following FAA certification.

The ultra-long-range, ultra-large-cabin G650 and G650ER continue to generate significant customer interest, with approximately 550 aircraft of this family currently operating in 55 countries.

Since the first G650 entered service in 2012, its capabilities and reliability have led to significant sales and expansion of our installed base around the globe.

Gulfstream’s current product line holds more than 355 city-pair speed records, more than any other business jet manufacturer, led by the G650ER, which holds the National Aeronautic Association’s polar and westbound around-the-world speed records.

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We continue to invest in these maintenance, repair and overhaul (MRO) facilities and inventory to accommodate fleet growth.

We also operate a 24/7 year-round customer support center and offer on-call Gulfstream aircraft technicians

ready to deploy around the world for customer service requirements under our Field and Airborne Support Team (FAST) rapid-response unit.

We also operate a 24/7 year-round customer support center and offer on-call Gulfstream aircraft technicians ready to deploy around the world for customer service requirements under our Field and Airborne Support Team (FAST) rapid-response unit.

In addition to expanding the reach of Gulfstream’s aircraft maintenance network outside the United States, Jet Aviation provides a comprehensive suite of innovative aircraft services for aircraft owners and operators around the world.

With approximately 50 locations throughout North America, Europe, the Middle East and the Asia-Pacific region, our offerings include maintenance, aircraft management, charter, staffing and fixed-base operator (FBO) services.

With approximately 50 locations throughout North America, Europe, the Middle East and the Asia-Pacific region, our offerings include maintenance, completion, aircraft management, charter, staffing and fixed-base operator (FBO) services.

Jet Aviation manages approximately 300 business aircraft globally on behalf of individuals and corporate owners.

We operate a leading global FBO network and support all aircraft types with a full range of maintenance services, including 24/7 global aircraft-on-ground support.

We operate a leading global FBO network of approximately 30 facilities on four continents and support all aircraft types with a full range of maintenance services, including 24/7 global aircraft-on-ground support.

We also operate one of the world’s largest custom completion and refurbishment centers for both narrow- and wide-body aircraft and perform modifications, upgrades and lifecycle sustainment support for various government fleets.

We continue to grow our global footprint through acquisitions, expansions and significant renovations in strategic business aviation markets most frequented by our customers.

We continue to grow our global footprint through acquisitions, expansions and significant renovations in strategic business aviation markets most frequented by these customers.

In 2023, we expanded hangar capacity in Scottsdale, Arizona, and in Bozeman, Montana, bringing total U.S.

hangar capacity to approximately one million square feet and providing additional capacity for large-cabin aircraft.

The following map displays the broad reach of our combined Gulfstream and Jet Aviation services network, including authorized service centers:

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Gulfstream and Jet Aviation have been at the forefront of the industry by adopting and expanding the availability of SAF, which achieves as much as an 80% reduction in carbon dioxide emissions per gallon over its lifecycle compared to petroleum-based jet fuel.

Gulfstream’s service and test aircraft have flown more than 2 million nautical miles on SAF since 2016, and in 2019 Gulfstream became the first business jet manufacturer to make SAF available to customers.

Gulfstream also offers operators the ability to achieve carbon-neutral travel by facilitating the purchase of carbon-offset credits.

In addition to actively expanding the availability of SAF at its FBO locations,

Jet Aviation allows customers to purchase SAF at locations where it is not available through a book-and-claim system.

Gulfstream’s service and test aircraft have flown more than two million nautical miles on SAF since 2016, and in 2019 Gulfstream became the first business jet manufacturer to make SAF available to customers.

In November 2023, Gulfstream conducted the world’s first transatlantic flight using 100% SAF.

Gulfstream also offers operators the ability to achieve carbon-neutral travel by facilitating the

purchase of carbon-offset credits.

In addition to actively expanding the availability of SAF at its FBO locations, Jet Aviation allows customers to purchase SAF at locations where it is not available through a book-and-claim system.

Since 2019, Jet Aviation has uploaded more than 10 million gallons of blended SAF to its customers.

Revenue for the Aerospace segment was 22% of our consolidated revenue in 2022 and 21% in 2021 and 2020.

Revenue for the Aerospace segment was 20% of our consolidated revenue in 2023, 22% in 2022 and 21% in 2021.

Revenue by major products and services was as follows:

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defense industrial base.

In addition to Navy ships, we design and build ocean-going Jones Act ships for commercial customers.

In addition to Navy ships, we have designed and built ocean-going Jones Act ships for commercial customers.

Marine Systems consists of three business units — Electric Boat, Bath Iron Works and NASSCO.

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Electric Boat is the prime contractor and lead shipyard on all Navy nuclear-powered submarine programs.

The business is responsible for all aspects of design and engineering and leads the construction of both Virginia-class attack submarines and Columbia-class ballistic-missile submarines.

The Navy procures Virginia-class submarines in multi-boat blocks at a two-per-year rate.

Along with an industry partner, we are currently working on Blocks IV and V in the program, with 17 Virginia-class submarines in our backlog scheduled for delivery through 2032.

Nine of the boats in Block V include the Virginia Payload Module, an 84-foot Electric Boat-designed-and-built hull section that adds four additional payload tubes, more than tripling the strike capacity of these submarines and providing unique capabilities to support special missions.

The business is responsible for all aspects of design and engineering and leads the construction of both Columbia-class ballistic-missile submarines and Virginia-class attack submarines.

The Columbia-class ballistic-missile submarine is a 12-boat program that the Navy considers its top acquisition priority.

Accordingly, the program has received the highest possible rating from the government’s Defense Priorities and Allocations System.

These submarines will provide strategic deterrent capabilities for decades, with the first boat delivering in 2027 to begin replacement of the current Ohio-class ballistic-missile submarine fleet as it reaches the end of its service life.

These submarines will provide strategic deterrent capabilities for decades, with the first boat scheduled for delivery in 2027 to begin replacement of the current Ohio-class ballistic-missile submarine fleet as it reaches the end of its service life.

Construction is scheduled to continue for two decades, and the value of the Navy’s program of record is in excess of $115 billion.

The submarine’s design was more than 80% complete at the time we began construction of the first boat in 2020, nearly twice as mature as any of the Navy’s previous submarine programs at the start of construction.

We are investing $1.8 billion of capital in expanded and modernized facilities at Electric Boat to support the growth in submarine construction and expect the investments to be substantially complete by the end of 2023.

The Navy procures Virginia-class submarines in multi-boat blocks at a two-per-year rate.

Along with an industry partner, we are currently working on Blocks IV and V in the program, with 16 Virginia-class submarines in our backlog scheduled for delivery through 2032.

Ten of the boats in Block V will include the Virginia Payload Module, an 84-foot Electric Boat-designed-and-built hull section that adds four additional payload tubes, more than tripling the strike capacity of these submarines and providing unique capabilities to support special missions.

We have invested significant capital over the past several years in expanded and modernized facilities at Electric Boat to support the growth in submarine construction, and will work with our Navy

customer on any additional construction needs that could develop in light of increased submarine demand.

Equal to the commitment of capital is our commitment to developing our Electric Boat workforce.

While the steepest portion of our personnel ramp is behind us, we still expect the Electric Boat workforce to grow another 25% by the end of the decade, particularly in support of Columbia-class production.

While the steepest portion of our personnel ramp is behind us, we still expect the Electric Boat workforce to continue to grow to enable sustained production of one Columbia-class submarine plus two Virginia-class submarines per year and have the capacity to support additional AUKUS-related demand.

Along with strong contributions from the states of Connecticut and Rhode Island, we continue to invest in the training and tools necessary for our employees to deliver these next-generation submarines to the Navy on time and on budget.

We are also working with our network of approximately 3,000 suppliers — mostly small businesses — to support concurrent production of the two submarine programs.

Bath Iron Works builds the Arleigh Burke-class (DDG-51) guided-missile destroyers and manages modernization and lifecycle support for the class.

We are also working with our growing network of approximately 3,000 suppliers — mostly small businesses — to support concurrent production of the two submarine programs.

Bath Iron Works builds the Arleigh Burke-class (DDG-51) guided-missile destroyer and manages modernization and lifecycle support for all Navy destroyers.

In 2023, we were awarded a contract from the Navy for construction of three Flight III DDG-51 destroyers.

We have a total of 12 ships in backlog scheduled for delivery through 2032.

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Marines and special operations forces, and the John Lewis-class (T-AO-205) fleet replenishment oiler.

Work on the three ESBs in backlog will continue into 2026, while the seven T-AO-205 ships currently in backlog have deliveries planned into 2027.

Work on the two ESBs in backlog will continue into 2026, while the seven T-AO-205 ships currently in backlog have deliveries planned into 2028.

NASSCO has also designed and built crude oil and product tankers and container and cargo ships for commercial customers, satisfying Jones Act requirements that ships carrying cargo between U.S.

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Norfolk, Virginia;

Mayport, Florida;

and Bremerton, Washington.

Bremerton, Washington;

and Mayport, Florida.

Electric Boat provides submarine maintenance and modernization services in a variety of U.S.

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Land Systems is the sole-source producer of two foundational products central to the U.S.

Army’s warfighting capabilities — the M1A2 Abrams main battle tank and Stryker wheeled combat vehicle.

Army’s warfighting capabilities — the Abrams main battle tank and Stryker wheeled combat vehicle.

Both of these platforms are core components of the multi-domain, joint war fight envisioned on the battlefield of the future.

We are maximizing the effectiveness and lethality of the Army’s tank fleet with next-generation Abrams upgrades, providing technological advancements in communications, power generation, fuel efficiency, optics and armor.

Even as we are delivering this modernized platform in the System Enhanced Package Version 3 (SEPv3) configuration, we are developing an Abrams SEPv4 configuration with third-generation forward-looking infrared sights (3GEN FLIR) and additional advanced capabilities that will allow this platform to adapt and incorporate transformative capabilities into the future.

We are also upgrading Abrams tanks for several non-U.S.

We are maximizing the effectiveness and lethality of the Army’s M1A2 Abrams tank fleet with next-generation upgrades through continued delivery of the system enhancement package version 3 (SEPv3) configuration.

This package provides technological advancements in communications, power generation, fuel efficiency, optics and armor.

We also continue to upgrade Abrams tanks for several non-U.S.

In 2023, the Army announced that it will develop the new M1E3 Abrams main battle tank, which will make capability improvements needed to fight and win against future threats.

The “E” identifier reflects that the program is an engineering change that is more significant than a minor modification.

The development of the M1E3 Abrams will include the latest systems architecture standards, allowing for quicker technology upgrades and requiring fewer resources, and will enhance efficacy through reduced sustainment footprint and increased tactical mobility.

The Stryker is an eight-wheeled, medium-weight combat vehicle that combines lethality, mobility and survivability.

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We are currently fielding an enhanced Stryker platform that includes the double-V-hull for survivability, increased power, improved cross-country mobility and an advanced digital, in-vehicle network.

We have completed fielding these vehicles for the first of nine Army brigades, as well as for the Army’s Ranger Regiment.

We have completed fielding these vehicles for the second of nine Army brigades, as well as for the Army’s Ranger Regiment.

In addition, coordination continues with the Army for next-generation upgrades to the platform and new uses for the vehicle.

Leveraging our rapid prototyping expertise and customer intimacy, we continue to expand the mission capabilities of this platform, including an air defense mission package (M-SHORAD), a state-of-the-art electronic warfare suite, a high-energy laser, a high-power microwave, and several command post options.

In 2022, we introduced new capabilities within each of these two foundational product lines in support of the Army’s climate and electrification strategies, including incorporating next-generation electronic architecture technology, hybrid electric engines, integrated active protection systems, and the ability to employ air and ground robotic teaming.

AbramsX is a next-generation main battle tank technology demonstrator that features significantly reduced weight for improved mobility and transportation and delivers the same tactical range as the M1A2 Abrams with 50% less fuel consumption.

Like AbramsX, StrykerX offers next-generation capabilities such as silent movement, silent watch, exportable electric power and reduced fuel consumption via a hybrid diesel-electric power

Our focus on innovation and technological investments in these platforms positions us to continue to meet our customers’ evolving requirements.

In addition, during 2022 we were awarded a low-rate initial production (LRIP) contract for the Army’s Mobile Protected Firepower (MPF) vehicle — the first ground combat vehicle to transition from prototype to production in 40 years.

The MPF vehicle will enhance the relevance of Infantry Brigade Combat Teams in large-scale combat operations against near-peer threats.

The highly lethal, survivable and mobile direct-fire combat vehicle melds recently developed and battle-tested designs to dominate ground threats on the multi-domain battlefield.

In 2022, we were awarded a low-rate initial production (LRIP) contract for the Army’s M10 Booker combat vehicle (formerly known as Mobile Protected Firepower) — the first ground combat vehicle to transition from prototype to production in 40 years.

The M10 Booker vehicle will enhance the relevance of Infantry Brigade Combat Teams in large-scale combat operations against near-peer threats.

highly lethal, survivable and mobile direct-fire combat vehicle melds recently developed and battle-tested designs to dominate ground threats on the multi-domain battlefield.

Combat Systems provides similar capabilities for U.S.

allies through export opportunities and through our operations in several countries around the world, including Canada, the United Kingdom, Spain, Switzerland, Austria, Germany and Romania.

As a result, we have a market-leading position in light armored vehicles (LAVs) with approximately 12,000 of the high-mobility, versatile Pandur, Piranha and other LAVs in service worldwide.

Land Systems is producing 399 new LAVs in eight variants, including ambulances, command posts, maintenance and recovery vehicles, and troop-carrying vehicles, for the Canadian Army, as well as upgrading its existing fleet.

allies and partners through export opportunities and through our operations in several countries around the world, including Canada, the United Kingdom, Spain, Switzerland, Austria, Germany and Romania.

As a result, we have a market-leading position in light armored vehicles (LAVs) with more than 12,000 of the high-mobility, versatile Pandur, Piranha and other LAVs in service worldwide.

Land Systems is producing 399 new LAVs for the Canadian army in eight variants, including ambulances, command posts, maintenance and recovery vehicles, and troop-carrying vehicles, as well as upgrading its existing fleet.

Land Systems is also producing the British Army’s Ajax armored fighting vehicle, a next-generation, medium-weight tracked combat vehicle.

With six variants, including a reconnaissance vehicle, an armored personnel carrier, and various support platforms, the Ajax family of vehicles offers advanced electronic architecture and proven technology for an unparalleled balance of survivability, lethality and mobility, along with high reliability for a vehicle in its weight class.

With six variants, including a reconnaissance vehicle, an armored personnel carrier and various support platforms, the Ajax family of vehicles offers advanced electronic architecture and proven technology for a balance of survivability, lethality and mobility, along with high reliability for a vehicle in its weight class.

ELS is producing and upgrading Piranha vehicles, a premier 8x8 armored combat vehicle, around the world.

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We offer the ASCOD, a highly versatile tracked combat vehicle with multiple versions, including the Spanish Pizarro and the Austrian Ulan.

ELS also offers Duro and Eagle tactical vehicles in a range of options and weight classes and is currently producing these vehicles for Denmark, Luxembourg, Switzerland and Germany, while providing a full range of product support for the German armed forces.

ELS also offers Duro and Eagle tactical vehicles in a range of options and weight classes and is currently producing these vehicles for Luxembourg, Switzerland and Germany, while providing a full range of product support for the German armed forces.

We are expanding our platform capabilities through continued investment in robotic and autonomous vehicle technology.

We have the Multi-Utility Tactical Transport (MUTT), a semi-autonomous robotic platform that can be equipped with an array of modular mission payloads for use alongside dismounted soldiers.

This platform was selected as the Army’s first robotic vehicle program of record and is officially designated as the Small Multipurpose Equipment Transport (SMET).

Additionally, we have the Tracked Robot 10-ton (TRX) prototype, a medium-sized, semi-autonomous combat vehicle that enables critical battlefield roles, such as direct and indirect fire, autonomous resupply, reconnaissance and other battlefield missions.

We have developed the Multi-Utility Tactical Transport (MUTT), a semi-autonomous robotic platform that can be equipped with an array of modular mission payloads for use alongside dismounted soldiers.

This platform was selected as the Army’s first robotic vehicle program of record and is officially designated as the Small Multipurpose Equipment Transport (S-MET).

Additionally, we have developed the Tracked Robot 10-ton (TRX) prototype, a medium-sized, semi-autonomous combat vehicle that enables critical battlefield roles, such as direct and indirect fire, autonomous resupply, reconnaissance and other battlefield missions.

On December 31, 2023, the installed base for our major vehicle programs, as well as the quantity and scheduled final delivery date of vehicles and vehicle upgrades in backlog were as follows:

Complementing these military-vehicle offerings, OTS designs, develops and produces a comprehensive array of sophisticated weapon systems for ground forces, including the M2/M2-A1 heavy machine guns and MK19/MK47 grenade launchers.

OTS also produces next-generation weapon systems for shipboard and aircraft applications, including high-speed Gatling guns for all U.S.

fighter aircraft, including the F-35 Joint Strike Fighter.

Complementing these military-vehicle offerings, OTS designs, develops and produces a comprehensive array of sophisticated weapon systems for ground forces.

OTS produces next-generation weapon and defense systems for shipboard, aircraft and ground applications, including high-speed Gatling guns for all U.S.

fighter aircraft (such as the F-35 Joint Strike Fighter) and combat vehicle active protection systems.

OTS’s munitions portfolio covers the full breadth of naval, air and ground forces applications across all calibers and weapon platforms for the U.S.

government and its non-U.S.

Globally, we maintain a market-leading position in the supply of Hydra-70 rockets, bomb bodies, large-caliber tank ammunition, medium-caliber ammunition, military propellants, mortar and artillery projectiles.

OTS is also the systems integrator for the next generation of artillery solutions in support of the Army’s Indirect Fire Modernization objectives.

Additionally, OTS maintains a leading position providing missile subsystems in support of U.S.

In 2023, OTS received awards to expand its existing metal parts production capacity from 18,000 to 86,000 rounds per month by 2025 and expand existing propellant capacity from 4 million to 16 million pounds per year by 2028 while establishing capacity for 155mm load, assemble, and pack (LAP) to 50,000 rounds per month by 2025.

The OTS facilities and production expansion supports the U.S.

Army’s effort to accelerate artillery production.

OTS is the systems integrator for the next generation of artillery solutions in support of the Army’s Indirect Fire Modernization objectives.

Additionally, OTS maintains a leading position providing

missile subsystems in support of U.S.

tactical and strategic missiles, provisioning both legacy and next-generation missiles with critical aerostructures, control actuators, high-performance warheads, and cutting-edge hypersonic rocket cases.

Revenue for the Combat Systems segment was 18% of our consolidated revenue in 2022 and 19% in 2021 and 2020.

Revenue for the Combat Systems segment was 20% of our consolidated revenue in 2023, 18% in 2022 and 19% in 2021.

Revenue by major products and services was as follows:

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Together they serve a wide range of military, intelligence, federal civilian and state customers with a diverse portfolio that includes:

• information technology (IT) solutions and mission-support services;

• consulting, technology solutions and mission-support services;

• mobile communication, computers, command-and-control and cyber (C5) mission systems;

• intelligence, surveillance and reconnaissance (ISR) solutions.

Over the past decade, the Department of Defense (DoD), the intelligence community and federal civilian agencies have increasingly prioritized technology solutions as a critical element of their missions, transforming technology resources from back-office support functions to a strategic priority for this customer community.

The coronavirus (COVID-19) pandemic, the cyber threat landscape and demand for advanced warfighter connectivity have accelerated these trends, adding urgency to required technology investments.

The result is a significant increase in federal IT modernization and technology spending in recent years and a shift to large-scale, end-to-end, highly engineered solutions that require a broad array of integrated technology services and hardware offerings to meet these customer demands.

Over the past decade, the U.S.

Department of Defense (DoD), the intelligence community and federal civilian agencies have increasingly prioritized technology solutions as a critical element of their missions, transforming technology resources from back-office support functions to a strategic priority for this customer community.

The coronavirus (COVID-19) pandemic, expanded cyberthreats and demand for advanced warfighter connectivity have accelerated these trends, adding urgency to required technology investments.

The result is a significant increase in federal information technology (IT) modernization and technology spending in recent years and a shift to large-scale, end-to-end, highly engineered solutions that require a broad array of integrated technology services and hardware offerings to meet these customer demands.

GDIT and Mission Systems share the same defense, intelligence and federal civilian customer base and increasingly go to market together to meet the ever-changing information-systems and mission-support needs of these customers.

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The segment’s highly skilled workforce is one of its key differentiators and comprises approximately 40,000 employees, including technologists, engineers, mission experts and cleared personnel dedicated to solving the toughest security and technology challenges facing the United States and its allies.

With a broad network of global partners, the segment develops solutions that keep its customers at the leading edge of technology in support of their missions.

This includes operating a network of technology labs to prototype solutions and accelerate the development of advanced capabilities for customers’ environments.

As technology continues to advance, we are at the forefront of new technological trends, including cloud computing, cybersecurity, zero trust, fifth generation (5G) technology, artificial intelligence and machine learning (AI/ML), data analytics, and high-performance computing.

GDIT modernizes large-scale IT enterprises and deploys the latest technologies to optimize and protect customer networks, data and information.

Operating thousands of complex digital modernization

programs across the federal government, GDIT’s expansive portfolio includes cloud services, cybersecurity, network modernization, AI/ML, application development, high-performance computing, and 5G and next-generation wireless communications.

Mission Systems offers solutions across all domains and produces a unique combination of products and capabilities that are purpose-built for essential C5ISR applications.

Our technologies and products are often built into platforms and integrated systems on which our customers rely.

The business’ portfolio includes prime contract programs to provide innovative defense-electronics solutions as well as subcontract efforts that enhance the capabilities of large-scale land, air, sea and space platforms.

GDIT develops tailorable digital solutions and services developed specifically to meet mission needs in our customers’ operating environments.

These solutions, known as our Digital Accelerators, are at the forefront of technological trends, and include zero trust, artificial intelligence (AI) for mission applications, AI for IT operations, hybrid multi-cloud, software factory, 5G, defensive cyber, and post-quantum cryptography.

GDIT provides digital consulting services, modernizes large-scale IT enterprises and deploys the latest technologies to optimize and protect customer networks, data and information.

Operating thousands of complex digital modernization programs across the federal government, GDIT’s expansive portfolio includes cloud services, cybersecurity, network modernization, AI, application development, high-performance computing, and 5G and next-generation wireless communications.

Mission Systems is a defense electronics manufacturer and integrator for C5ISR applications in all domains.

Our products and solutions are built into platforms and integrated systems on which our customers rely.

The business’ portfolio includes both prime contract programs with government customers as well as subcontract positions with large platform providers to develop and integrate technologies to make their systems smarter and more secure.

The Technologies segment leverages its scale, partnerships and deep knowledge of its customers’ missions and challenges to bring innovation to those customers across a portfolio of thousands of contracts.

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GDIT delivers a full spectrum of cloud solutions and services to modernize customers’ legacy IT infrastructures and systems.

These cloud capabilities advance security and accelerate access to cutting-edge technologies such as high-performance computing and AI/ML.

These cloud capabilities advance security and accelerate access to cutting-edge technologies such as high-performance computing and AI.

For the National Geospatial-Intelligence Agency (NGA), GDIT is providing hybrid cloud services, including commercial clouds and data centers, and innovative IT design, engineering, implementation and operations support services to the NGA and its mission partners.

In the federal civilian market, GDIT is delivering a scalable, hybrid multi-cloud platform to modernize the United States Patent and Trademark Office’s IT infrastructure and services.

We apply AI/ML to expand the human capacity to make better decisions and implement smarter actions as we automate, secure and enhance our customers’ operations.

For the Department of Veterans Affairs (VA), GDIT leverages managed services and AI/ML to accelerate veteran benefits claims processing, develops applications and software to improve the veteran user experience, and provides on-demand 24/7/365 IT support to more than 500,000 VA personnel nationwide.

In the federal civilian sector, GDIT’s high-performance supercomputers, ranked 49th and 50th fastest in the world by TOP500, run the National Oceanic and Atmospheric Administration (NOAA) operational models used to forecast the weather and model climate data.

In the federal civilian market, GDIT is modernizing the electronic health record system of the Indian Health Service, an agency within the Department of Health and Human Services that provides federal health services to 2.6 million American Indians and Alaska Natives across the country.

We apply AI to expand the human capacity to make better decisions and implement smarter actions as we automate, secure and enhance our customers’ operations.

For the Department of Veterans Affairs (VA), GDIT leverages managed services and AI to accelerate veteran benefits claims processing, develops applications and software to improve the veteran user experience, and provides on-demand 24/7/365 IT support to more than 500,000 VA personnel nationwide.

In the federal civilian sector, GDIT’s high-performance supercomputers, ranked two of the fastest in the world by TOP500, run the National Oceanic and Atmospheric Administration (NOAA) operational models used to forecast the weather and model climate data.

We recently expanded the computing capacity of these supercomputers by 20%, allowing NOAA to provide more complex, detailed forecasting models.

To adapt to a constantly evolving threat landscape, GDIT embeds cyber solutions into every aspect of digital modernization.

More than 3,000 cyber professionals support cyber projects across 30 agencies in the federal government.

More than 3,000 cyber professionals support cyber projects across 30 federal government agencies.

GDIT is also a market leader in the deployment of zero trust, a government mandate and cybersecurity strategy to ensure perpetual security of networks, applications and data.

This work includes supporting the U.S.

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and provides leaders with tools for training, mission planning and execution.

We are also implementing comprehensive security services for the U.S.

Air Force including information, personnel and communications security, counterintelligence analysis and cybersecurity assessments.

Mission Systems develops and manufactures high-assurance encryption products that are widely deployed to protect national security systems, data and networks against persistent threats.

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Capabilities range from enterprise systems to embedded applications required for terrestrial, airborne or space environments.

We are working with our Army customer to adapt elements of advanced resilient radio frequency (RF) and 5G technologies to address battlefield realities such as jamming, spoofing, cyberattacks and

lack of ground connectivity.

We also provide similar capabilities to non-U.S.

customers, including Canada and the United Kingdom.

Mission Systems continues to help advance our nation’s dominance in the space domain.

We designed and manufactured mission-critical communications and optical technologies for the National Aeronautics and Space Administration’s (NASA) Artemis I and James Webb Space Telescope missions.

Additionally, the U.S.

We are working with our U.S.

Army customer to adapt elements of advanced resilient radio frequency (RF) to address battlefield realities such as jamming, spoofing, cyberattacks and lack of ground connectivity.

For the Canadian army we were recently selected to provide the Land Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) system.

Mission Systems continues to help advance our nation’s position in the space domain.

Space Development Agency (SDA) selected Mission Systems to establish the ground operations and integration segment for Tranche 1 of the National Defense Space Architecture by building ground entry points and operations centers, as well as providing network operations and systems integration services for the SDA’s next tranche of proliferated low-earth orbit satellites.

On the platform side, we have a more than 60-year legacy of providing advanced fire-control systems for the Navy’s submarine programs.

We are developing and integrating commercial off-the-shelf software and hardware upgrades to improve the tactical control capabilities for several submarine classes, including the Columbia and U.K.

Dreadnought ballistic-missile submarines.

Mission Systems also continues to invest in autonomous capabilities, including through its Unmanned Undersea Vehicle (UUV) Manufacturing and Assembly Center of Excellence in Taunton, Massachusetts.

The facility provides manufacturing, assembly, integration and testing capabilities for Mission Systems’ Knifefish and Bluefin Robotics UUVs, as well as the recently awarded Hammerhead program for the Navy.

In addition, we provide critical subsystems for data processing and security of space assets across multiple space vehicle platforms.

In the maritime domain, we have a more than 60-year legacy of providing critical systems to the Navy’s submarine programs.

These include advanced fire-control and weapon launch systems, tactical control systems, specialized hardware and software solutions for acoustics, cybersecurity, torpedo guidance and other core capabilities that are essential for submarine modernization with U.S.

and allied forces.

Mission Systems also continues to invest in autonomous capabilities both undersea and in the air.

Our Unmanned Undersea Vehicle (UUV) Manufacturing and Assembly Center of Excellence provides manufacturing, assembly, integration and testing capabilities for Mission Systems’ Knifefish and Bluefin Robotics UUVs, as well as the Hammerhead program for the Navy.

In addition, we support a variety of manned and unmanned aerial vehicle (UAV) platforms with mission-critical processing and security subsystems on both modern combat and ISR aircraft as well as emerging capabilities like the Collaborative Combat Aircraft.

Revenue for the Technologies segment was 31% of our consolidated revenue in 2023, 32% in 2022 and 33% in 2021.

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cost-reimbursement contracts accounted for 41% in 2023, 38% in 2022 and 36% in 2021;

and time-and-materials contracts accounted for 6% in 2022, 7% in 2021 and 6% in 2020.

and time-and-materials contracts accounted for 6% in 2023 and 2022, and 7% in 2021.

For information on the advantages and disadvantages of each of these contract types, see Note B to the Consolidated Financial Statements in Item 8.

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Our revenue from non-U.S.

government and commercial customers was $6 billion in 2022, $6.8 billion in 2021 and $6.7 billion in 2020, which represented 15% of our consolidated revenue in 2022 and 18% in 2021 and 2020.

government and commercial customers was $6.1 billion in 2023, $6 billion in 2022 and $6.8 billion in 2021, which represented 14% of our consolidated revenue in 2023, 15% in 2022 and 18% in 2021.

We conduct business with customers around the world.

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commercial revenue consists primarily of business jet aircraft exports and worldwide aircraft services.

While the installed base of aircraft is concentrated in North America, orders from customers outside North America represent a significant portion of our aircraft business with approximately 40% of the Aerospace segment’s aircraft backlog on December 31, 2022.

While the installed base of aircraft is concentrated in North America, orders from

customers outside North America represent a significant portion of our aircraft business with approximately 40% of the Aerospace segment’s aircraft backlog on December 31, 2023.

Several factors determine our ability to compete successfully in the defense and business aviation markets.

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Our Marine Systems segment has one primary competitor with which it also partners on the Virginia-class submarine program, and to which it subcontracts on the Columbia-class submarine program.

For commercial and repair work, the Marine Systems segment competes with several additional U.S.

Our Combat Systems segment competes with a large number of U.S.

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In addition to owning a large portfolio of proprietary intellectual property, we license some intellectual property rights to and from others.

government holds licenses to many of our patents developed in the

performance of U.S.

government holds licenses to many of our patents developed in the performance of U.S.

government contracts, and it may use or authorize others to use the inventions covered by these patents.

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Due to the highly specialized nature of our business, we must hire and train skilled and qualified people to design and build the products and perform the services required by our customers.

This includes upskilling employees to advance within the workplace.

The health, welfare and safety of our employees is paramount throughout our workplaces.

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We recognize and reward the performance of our employees in line with our pay-for-performance philosophy and provide a comprehensive suite of benefit options that aim to enable our employees and their dependents to live healthy and productive lives.

Across our businesses, we take measures to prevent workplace hazards, encourage safe behaviors and enforce a culture of continuous improvement to ensure our processes help reduce safety incidents and illnesses and comply with applicable health and safety laws.

These efforts continue to be of the utmost importance as we address ongoing challenges, including those presented by the COVID-19 pandemic.

Across our businesses, we take measures to prevent workplace hazards, encourage healthy and safe behaviors and enforce a culture of continuous improvement to ensure that our processes help reduce safety incidents and illnesses and comply with applicable health and safety laws.

We recognize that our success as a company depends on our ability to attract, develop and retain qualified people.

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Our training and development efforts focus on ensuring that our people are appropriately trained on critical job skills as well as on leadership behaviors that are consistent with our Ethos.

We conduct rigorous succession planning exercises to ensure that key positions have the appropriate level of bench strength to provide for future key positions and leadership transitions.

We conduct rigorous succession planning exercises to ensure that key positions have the appropriate level of

bench strength to provide for future key positions and leadership transitions.

We listen to our people to assess areas of concern and levels of engagement.

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The remaining 16% of our workforce is based internationally in over 65 countries with the primary concentrations being in North America and Europe.

Approximately 22% of our workforce is represented by collective bargaining agreements.

In 2023, we renewed the collective bargaining agreements for the majority of our represented employees.

• Our global workforce is 76% male and 24% female, and our senior leadership teams across the business are represented by 73% males and 27% females.

During 2022, the diversity profile of our workforce continued to improve across our businesses, as we hired approximately 24,000 individuals of which 71% were male and 29% were female.

During 2023, the diversity profile of our workforce continued to improve across our businesses, as we hired more than 23,400 individuals of which 73% were male and 27% were female.

For our approximately 19,400 U.S.-based hires in 2023, 60% were white and 40% were people of color.

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Based on information currently available and current U.S.

government policies relating to cost recovery, we do not expect continued compliance with environmental regulations, including costs associated with changes in environmental and climate change laws or regulations, to have a material impact on our results of operations, financial condition or cash flows.

results of operations, financial condition or cash flows.

For additional information relating to the impact of environmental matters, see Note M to the Consolidated Financial Statements in Item 8.

AVAILABLE INFORMATION

We file reports and other information with the Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended.

These reports and information include an annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and proxy statements.

Free copies of these items are made available on our website (www.gd.com) as soon as practicable.

The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information.

We file reports and other information with the Securities and Exchange Commission (SEC) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act).

These reports and information include annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and proxy statements.

Free copies of these items, and any amendments to those items filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, are made available on our website (gd.com) as soon as practicable after we electronically file such items with, or furnish them to, the SEC.

The SEC maintains a website (sec.gov) that contains reports, proxy and information statements, and other information.

In addition to the information contained in this Form 10-K, information about the company can be found on our website and our Investor Relations website (investorrelations.gd.com).

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business