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Segment Information (Unaudited)
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
The company is aligned into four 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 September 30
 
Nine Months Ended September 30
$ in millions
2013
 
2012
 
2013
 
2012
Sales
 
 
 
 
 
 
 
Aerospace Systems

$2,484

 

$2,586

 

$7,582

 

$7,373

Electronic Systems
1,774

 
1,707

 
5,266

 
5,175

Information Systems
1,619

 
1,776

 
4,982

 
5,476

Technical Services
713

 
748

 
2,152

 
2,281

Intersegment eliminations
(484
)
 
(547
)
 
(1,478
)
 
(1,563
)
Total sales
6,106

 
6,270

 
18,504

 
18,742

Operating income
 
 
 
 
 
 
 
Aerospace Systems
330

 
288

 
936

 
859

Electronic Systems
273

 
279

 
891

 
859

Information Systems
162

 
170

 
474

 
577

Technical Services
67

 
62

 
201

 
206

Intersegment eliminations
(69
)
 
(69
)
 
(194
)
 
(200
)
Total segment operating income
763


730

 
2,308

 
2,301

Reconciliation to total operating income:
 
 
 
 
 
 
 
Net FAS/CAS pension adjustment
61

 
34

 
125

 
101

Unallocated corporate expenses
(33
)
 
(27
)
 
(73
)
 
(89
)
Other
(1
)
 
(1
)
 
(5
)
 
(7
)
Total operating income

$ 790

 

$ 736

 

$2,355

 

$2,306


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 change in net FAS/CAS pension adjustment from the prior year periods reflects an update for actual demographic experience as of January 1, 2013, which resulted in an increase to the company's 2013 CAS pension expense.
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.