2021 Outlook COMBAT SYSTEMS Operating Results 2021 Outlook TECHNOLOGIES 35 We expect the Combat Systems segment’s 2021 revenue to be about $7.3 billion with operating margin of approximately 14.5%. Revenue was up across the Combat Systems segment in 2020 as the business overcame disruptions caused by the pandemic in the first half of the year. Weapons systems and munitions revenue was up driven by increased production of artillery and missile subcomponents. Revenue from international military vehicles increased due to higher volume on a contract to produce armored combat support vehicles (ACSVs) for the Canadian government and the British Army’s AJAX armored fighting vehicle program, offset partially by lower volume on Piranha wheeled armored vehicle programs. Revenue from U.S. military vehicles increased due primarily to higher volume on the U.S. Army’s Abrams main battle tank program. The Combat Systems segment’s operating margin increased 20 basis points compared with 2019 driven by favorable contract mix and strong operating performance. We expect the Marine Systems segment’s 2021 revenue to be approximately $10.3 billion. Operating margin is expected to be approximately 8.3%, down from 2020 due to increased work on the first two Columbia-class submarines, which carry a lower margin consistent with lead boats in a new class. employees and support the supply chain to keep these critical programs on track during the pandemic. The Marine Systems segment’s operating margin increased 10 basis points in 2020 despite the impact of the pandemic and a workforce strike at our Bath Iron Works shipyard. The increase in the Combat Systems segment’s revenue in 2020 consisted of the following: Year Ended December 31 2020 2019 Variance Revenue $ 7,223  $ 7,007  $ 216  3.1 % Operating earnings 1,041  996  45  4.5 % Operating margin 14.4  % 14.2 % Weapons systems and munitions $ 125  International military vehicles 54  U.S. military vehicles 37  Total increase $ 216  Year Ended December 31 2020 2019 Variance Revenue $ 12,648  $ 13,359  $ (711) (5.3)% Operating earnings 1,211  1,311  (100) (7.6)% Operating margin 9.6  % 9.8 %