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Segment Information (Unaudited)
 3 Months Ended
Mar. 31, 2014
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 of our four segments. The company, from time to time, acquires or disposes of businesses and realigns contracts, programs or business areas among and within our 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 March 31
$ in millions
2014
 
2013
Sales
 
 
 
Aerospace Systems
$
2,420

 
$
2,485

Electronic Systems
1,644

 
1,721

Information Systems
1,577

 
1,674

Technical Services
697

 
717

Intersegment eliminations
(490
)
 
(493
)
Total sales
5,848

 
6,104

Operating income
 
 
 
Aerospace Systems
324

 
270

Electronic Systems
268

 
296

Information Systems
162

 
171

Technical Services
68

 
65

Intersegment eliminations
(65
)
 
(54
)
Total segment operating income
757

 
748

Reconciliation to total operating income:
 
 
 
Net FAS/CAS pension adjustment
110

 
33

Unallocated corporate expenses
(22
)
 
(19
)
Other
—

 
(3
)
Total operating income
$
845

 
$
759


Net FAS/CAS Pension Adjustment
The net FAS (GAAP Financial Accounting Standards)/CAS (U.S. Government Cost Accounting Standards) pension adjustment is pension expense charged to contracts and included as cost in segment operating income less pension expense determined in accordance with GAAP. The increase in the FAS/CAS pension adjustment for the three months ended March 31, 2014, as compared to the same period in 2013, is primarily due to a reduction in FAS pension expense driven by the increase in our FAS discount rate assumption as of December 31, 2013.
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.