XML 22 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information (Unaudited)
 6 Months Ended
Jun. 30, 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 June 30
 
Six Months Ended June 30
$ in millions
2014
 
2013
 
2014
 
2013
Sales
 
 
 
 
 
 
 
Aerospace Systems
$
2,502

 
$
2,613

 
$
4,922

 
$
5,098

Electronic Systems
1,744

 
1,771

 
3,388

 
3,492

Information Systems
1,562

 
1,689

 
3,139

 
3,363

Technical Services
732

 
722

 
1,429

 
1,439

Intersegment eliminations
(501
)
 
(501
)
 
(991
)
 
(994
)
Total sales
6,039

 
6,294

 
11,887

 
12,398

Operating income
 
 
 
 
 
 
 
Aerospace Systems
290

 
336

 
614

 
606

Electronic Systems
291

 
322

 
559

 
618

Information Systems
153

 
141

 
315

 
312

Technical Services
68

 
69

 
136

 
134

Intersegment eliminations
(60
)
 
(71
)
 
(125
)
 
(125
)
Total segment operating income
742


797

 
1,499

 
1,545

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

 
31

 
220

 
64

Unallocated corporate expenses
(31
)
 
(21
)
 
(53
)
 
(40
)
Other
(1
)
 
(1
)
 
(1
)
 
(4
)
Total operating income
$
820

 
$
806

 
$
1,665

 
$
1,565


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 and six months ended June 30, 2014, as compared to the same periods 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.