Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

The following table presents sales and operating income by segment:



	Year Ended December 31
$ in millions	2018			2017			2016
Sales
Aerospace Systems	$	13,096		$	12,131		$	10,853
Innovation Systems	3,276			—			—
Mission Systems	11,709			11,470			11,161
Technology Services	4,297			4,687			4,765
Intersegment eliminations	(2,283		)	(2,284		)	(2,073		)
Total sales	30,095			26,004			24,706
Operating income
Aerospace Systems	1,411			1,289			1,198
Innovation Systems	343			—			—
Mission Systems	1,520			1,442			1,468
Technology Services	443			449			456
Intersegment eliminations	(270		)	(277		)	(258		)
Total segment operating income	3,447			2,903			2,864
Net FAS (service)/CAS pension adjustment	613			638			457
Unallocated corporate expense	(277		)	(319		)	(39		)
Other	(3		)	(4		)	(5		)
Total operating income	$	3,780		$	3,218		$	3,277

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]



Sales by Customer Type	Year Ended December 31
	2018				2017				2016
$ in millions	$		%⁽³⁾		$		%⁽³⁾		$		%⁽³⁾
Aerospace Systems
U.S. Government ⁽¹⁾	$	11,380	87	%	$	10,521	87	%	$	9,277	86	%
International ⁽²⁾	1,371		10	%	1,160		10	%	1,192		11	%
Other Customers	148		1	%	155		1	%	144		1	%
Intersegment sales	197		2	%	295		2	%	240		2	%
Aerospace Systems sales	13,096		100	%	12,131		100	%	10,853		100	%
Innovation Systems
U.S. Government ⁽¹⁾	2,241		68	%	—		—		—		—
International ⁽²⁾	615		19	%	—		—		—		—
Other Customers	293		9	%	—		—		—		—
Intersegment sales	127		4	%	—		—		—		—
Innovation Systems sales	3,276		100	%	—		—		—		—
Mission Systems
U.S. Government ⁽¹⁾	8,803		75	%	8,876		77	%	8,737		78	%
International ⁽²⁾	1,647		14	%	1,540		14	%	1,416		13	%
Other Customers	114		1	%	100		1	%	133		1	%
Intersegment sales	1,145		10	%	954		8	%	875		8	%
Mission Systems sales	11,709		100	%	11,470		100	%	11,161		100	%
Technology Services
U.S. Government ⁽¹⁾	2,372		55	%	2,572		55	%	2,722		57	%
International ⁽²⁾	801		19	%	752		16	%	687		15	%
Other Customers	310		7	%	328		7	%	398		8	%
Intersegment sales	814		19	%	1,035		22	%	958		20	%
Technology Services sales	4,297		100	%	4,687		100	%	4,765		100	%
Total
U.S. Government ⁽¹⁾	24,796		82	%	21,969		85	%	20,736		84	%
International ⁽²⁾	4,434		15	%	3,452		13	%	3,295		13	%
Other Customers	865		3	%	583		2	%	675		3	%
Total Sales	$	30,095	100	%	$	26,004	100	%	$	24,706	100	%


⁽¹⁾	Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company’s segments derives substantial revenue from the U.S. government.

⁽²⁾ International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer. These sales include foreign military sales contracted through the U.S. government.

⁽³⁾ Percentages calculated based on total segment sales.

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]



Sales by Contract Type	Year Ended December 31
	2018				2017				2016
$ in millions	$		%⁽¹⁾		$		%⁽¹⁾		$		%⁽¹⁾
Aerospace Systems
Cost-type	$	7,634	59	%	$	7,193	61	%	$	6,484	61	%
Fixed-price	5,265		41	%	4,643		39	%	4,129		39	%
Intersegment sales	197				295				240
Aerospace System sales	13,096				12,131				10,853
Innovation Systems
Cost-type	843		27	%	—		—		—		—
Fixed-price	2,306		73	%	—		—		—		—
Intersegment sales	127				—				—
Innovation System sales	3,276				—				—
Mission Systems
Cost-type	4,939		47	%	5,311		51	%	5,200		51	%
Fixed-price	5,625		53	%	5,205		49	%	5,086		49	%
Intersegment sales	1,145				954				875
Mission System sales	11,709				11,470				11,161
Technology Services
Cost-type	1,588		46	%	1,693		46	%	1,770		46	%
Fixed-price	1,895		54	%	1,959		54	%	2,037		54	%
Intersegment sales	814				1,035				958
Technology Services sales	4,297				4,687				4,765
Total
Cost-type	15,004		50	%	14,197		55	%	13,454		54	%
Fixed-price	15,091		50	%	11,807		45	%	11,252		46	%
Total Sales	$	30,095			$	26,004			$	24,706


⁽¹⁾	Percentages calculated based on external customer sales.

Revenue from External Customers by Geographic Areas [Table Text Block]



Sales by Geographic Region	Year Ended December 31
	2018				2017				2016
$ in millions	$		%⁽²⁾		$		%⁽²⁾		$		%⁽²⁾
Aerospace Systems
United States	$	11,528	89	%	$	10,676	90	%	$	9,421	89	%
Asia/Pacific	705		6	%	649		6	%	579		5	%
All other ⁽¹⁾	666		5	%	511		4	%	613		6	%
Intersegment sales	197				295				240
Aerospace Systems sales	13,096				12,131				10,853
Innovation Systems
United States	2,534		80	%	—		—		—		—
Asia/Pacific	151		5	%	—		—		—		—
All other ⁽¹⁾	464		15	%	—		—		—		—
Intersegment sales	127				—				—
Innovation Systems sales	3,276				—				—
Mission Systems
United States	8,917		85	%	8,976		86	%	8,870		86	%
Asia/Pacific	659		6	%	671		6	%	514		5	%
All other ⁽¹⁾	988		9	%	869		8	%	902		9	%
Intersegment sales	1,145				954				875
Mission Systems sales	11,709				11,470				11,161
Technology Services
United States	2,682		77	%	2,900		79	%	3,120		82	%
Asia/Pacific	151		4	%	141		4	%	119		3	%
All other ⁽¹⁾	650		19	%	611		17	%	568		15	%
Intersegment sales	814				1,035				958
Technology Services sales	4,297				4,687				4,765
Total
United States	25,661		85	%	22,552		87	%	21,411		87	%
Asia/Pacific	1,666		6	%	1,461		5	%	1,212		5	%
All other ⁽¹⁾	2,768		9	%	1,991		8	%	2,083		8	%
Total Sales	$	30,095			$	26,004			$	24,706


⁽¹⁾	All other is principally comprised of Europe and the Middle East.


⁽²⁾	Percentages calculated based on external customer sales.

Intersegment sales and operating income

The following table presents intersegment sales and operating income before eliminations:



	Year Ended December 31
$ in millions	2018					2017					2016
	Sales		Operating Income			Sales		Operating Income			Sales		Operating Income
Intersegment sales and operating income
Aerospace Systems	$	197		$	23	$	295		$	33	$	240		$	28
Innovation Systems	127			1		—			—		—			—
Mission Systems	1,145			165		954			141		875			136
Technology Services	814			81		1,035			103		958			94
Total	$	2,283		$	270	$	2,284		$	277	$	2,073		$	258

Total assets by segment

The following table presents assets by segment:



	December 31
$ in millions	2018		2017
Assets
Aerospace Systems	$	9,750	$	8,497
Innovation Systems	10,368		—
Mission Systems	11,047		10,389
Technology Services	2,957		3,014
Segment assets	34,122		21,900
Corporate assets⁽¹⁾	3,531		13,228
Total assets	$	37,653	$	35,128


⁽¹⁾	Corporate assets principally consist of cash and cash equivalents, property, plant and equipment and marketable securities.

Additional information by segment

The following table presents capital expenditures and depreciation and amortization by segment:



	Year Ended December 31
$ in millions	2018		2017		2016		2018		2017		2016
	Capital Expenditures						Depreciation and Amortization⁽¹⁾
Aerospace Systems	$	781	$	665	$	451	$	243	$	234	$	216
Innovation Systems	141		—		—		84		—		—
Mission Systems	206		164		372		134		131		140
Technology Services	18		15		6		45		40		37
Corporate	103		84		91		294		70		63
Total	$	1,249	$	928	$	920	$	800	$	475	$	456


⁽¹⁾	Beginning in 2018, corporate amounts include the amortization of other purchased intangible assets and the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations as they are not considered part of management's evaluation of segment operating performance.