XML 18 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information (Unaudited)
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
The company is aligned into four reportable segments: Aerospace Systems, Electronic Systems, Information Systems, and Technical Services. The United States (U.S.) Government is the primary customer for all four of our segments. The company, from time to time, acquires or disposes of businesses and realigns contracts, programs or business areas among and within its operating segments. Portfolio shaping and internal realignments are designed to more fully leverage existing capabilities and enhance development and delivery of products and services.
The following table presents sales and operating income by segment:
 
Three Months Ended June 30
 
Six Months Ended June 30
$ in millions
2013
 
2012
 
2013
 
2012
Sales
 
 
 
 
 
 
 
Aerospace Systems

$2,613

 

$2,404

 

$ 5,098

 

$ 4,787

Electronic Systems
1,771

 
1,744

 
3,492

 
3,468

Information Systems
1,689

 
1,856

 
3,363

 
3,700

Technical Services
722

 
783

 
1,439

 
1,533

Intersegment eliminations
(501
)
 
(513
)
 
(994
)
 
(1,016
)
Total sales
6,294

 
6,274

 
12,398

 
12,472

Operating income
 
 
 
 
 
 
 
Aerospace Systems
336

 
292

 
606

 
571

Electronic Systems
322

 
276

 
618

 
580

Information Systems
141

 
202

 
312

 
407

Technical Services
69

 
74

 
134

 
144

Intersegment eliminations
(71
)
 
(62
)
 
(125
)
 
(131
)
Total segment operating income
797


782

 
1,545

 
1,571

Reconciliation to total operating income:
 
 
 
 
 
 
 
Net FAS/CAS pension adjustment
31

 
35

 
64

 
67

Unallocated corporate expenses
(21
)
 
(39
)
 
(40
)
 
(62
)
Other
(1
)
 
(4
)
 
(4
)
 
(6
)
Total operating income

$ 806

 

$ 774

 

$ 1,565

 

$ 1,570


Net FAS/CAS Pension Adjustment
The net FAS (GAAP Financial Accounting Standards)/CAS (U.S. Government Cost Accounting Standards) pension adjustment is the difference between pension expense determined in accordance with GAAP and pension expense allocated to the operating segments determined in accordance with CAS. The net FAS/CAS pension adjustments for the three and six months ended June 30, 2013, were comparable to the same periods in 2012.
Unallocated Corporate Expenses
Unallocated corporate expenses include the portion of corporate expenses not considered allowable or allocable under applicable CAS regulations and the Federal Acquisition Regulation, and are therefore not allocated to the segments. Such costs consist of a portion of management and administration, legal, environmental, compensation costs, retiree benefits, and certain unallowable costs such as lobbying activities, among others.