Segment Information (Unaudited)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

At March 31, 2017, the company was aligned in three operating sectors, which also comprise our reportable segments: Aerospace Systems, Mission Systems and Technology Services.

The following table presents sales and operating income by segment:

	Three Months Ended March 31
$ in millions	2017			2016
Sales
Aerospace Systems	$	2,898		$	2,574
Mission Systems	2,739			2,693
Technology Services	1,194			1,214
Intersegment eliminations	(564		)	(525		)
Total sales	6,267			5,956
Operating income
Aerospace Systems	312			286
Mission Systems	353			353
Technology Services	131			126
Intersegment eliminations	(70		)	(64		)
Total segment operating income	726			701
Net FAS/CAS pension adjustment	136			74
Unallocated corporate expenses	(29		)	(33		)
Other	(1		)	(3		)
Total operating income	$	832		$	739

Net FAS/CAS Pension Adjustment

For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with the Federal Acquisition Regulation (FAR) and the related U.S. Government Cost Accounting Standards (CAS). The net FAS/CAS pension adjustment reflects the difference between CAS pension expense included as cost in segment operating income and FAS expense included in total operating income.

Unallocated Corporate Expenses

Unallocated corporate expenses include the portion of corporate expenses not considered allowable or allocable under applicable CAS or the FAR, and therefore not allocated to the segments. Such costs consist of a portion of management and administration, legal, environmental, compensation, retiree benefits and corporate unallowable costs.