Segment Information (Unaudited) (Tables)

6 Months Ended

Jun. 30, 2019

The following table presents sales and operating income by segment:



	Three Months Ended June 30						Six Months Ended June 30
$ in millions	2019			2018			2019			2018
Sales
Aerospace Systems	$	3,390		$	3,337		$	6,886		$	6,617
Innovation Systems	1,498			400			2,936			400
Mission Systems	3,128			2,874			6,014			5,757
Technology Services	1,044			1,048			2,021			2,192
Intersegment eliminations	(604		)	(540		)	(1,212		)	(1,112		)
Total sales	8,456			7,119			16,645			13,854
Operating income
Aerospace Systems	361			357			743			698
Innovation Systems	169			39			336			39
Mission Systems	408			352			791			723
Technology Services	113			95			215			217
Intersegment eliminations	(73		)	(64		)	(140		)	(136		)
Total segment operating income	978			779			1,945			1,541
Net FAS (service)/CAS pension adjustment	107			137			215			264
Unallocated corporate expense	(139		)	(99		)	(278		)	(140		)
Total operating income	$	946		$	817		$	1,882		$	1,665

Revenue by Major Customers by Reporting Segments



Sales by Customer Type	Three Months Ended June 30								Six Months Ended June 30
	2019				2018				2019				2018
$ in millions	$		%⁽³⁾		$		%⁽³⁾		$		%⁽³⁾		$		%⁽³⁾
Aerospace Systems
U.S. government ⁽¹⁾	$	2,918	86	%	$	2,799	84	%	$	5,940	86	%	$	5,707	86	%
International ⁽²⁾	390		11	%	449		13	%	784		11	%	720		11	%
Other customers	30		1	%	38		1	%	64		1	%	80		1	%
Intersegment sales	52		2	%	51		2	%	98		2	%	110		2	%
Aerospace Systems sales	3,390		100	%	3,337		100	%	6,886		100	%	6,617		100	%
Innovation Systems
U.S. government ⁽¹⁾	1,061		71	%	265		66	%	2,076		71	%	265		66	%
International ⁽²⁾	227		15	%	92		23	%	474		16	%	92		23	%
Other customers	118		8	%	30		8	%	232		8	%	30		8	%
Intersegment sales	92		6	%	13		3	%	154		5	%	13		3	%
Innovation Systems sales	1,498		100	%	400		100	%	2,936		100	%	400		100	%
Mission Systems
U.S. government ⁽¹⁾	2,348		75	%	2,155		75	%	4,515		75	%	4,345		76	%
International ⁽²⁾	459		15	%	391		14	%	826		14	%	770		13	%
Other customers	39		1	%	34		1	%	73		1	%	64		1	%
Intersegment sales	282		9	%	294		10	%	600		10	%	578		10	%
Mission Systems sales	3,128		100	%	2,874		100	%	6,014		100	%	5,757		100	%
Technology Services
U.S. government ⁽¹⁾	617		59	%	597		57	%	1,170		58	%	1,199		54	%
International ⁽²⁾	225		22	%	193		18	%	434		21	%	413		19	%
Other customers	24		2	%	76		7	%	57		3	%	169		8	%
Intersegment sales	178		17	%	182		18	%	360		18	%	411		19	%
Technology Services sales	1,044		100	%	1,048		100	%	2,021		100	%	2,192		100	%
Total
U.S. government ⁽¹⁾	6,944		82	%	5,816		82	%	13,701		82	%	11,516		83	%
International ⁽²⁾	1,301		16	%	1,125		16	%	2,518		15	%	1,995		15	%
Other customers	211		2	%	178		2	%	426		3	%	343		2	%
Total Sales	$	8,456	100	%	$	7,119	100	%	$	16,645	100	%	$	13,854	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.

Revenue from External Customers by Contract Type



Sales by Contract Type	Three Months Ended June 30								Six Months Ended June 30
	2019				2018				2019				2018
$ in millions	$		%⁽¹⁾		$		%⁽¹⁾		$		%⁽¹⁾		$		%⁽¹⁾
Aerospace Systems
Cost-type	$	1,979	59	%	$	1,934	59	%	$	3,981	59	%	$	3,836	59	%
Fixed-price	1,359		41	%	1,352		41	%	2,807		41	%	2,671		41	%
Intersegment sales	52				51				98				110
Aerospace Systems sales	3,390				3,337				6,886				6,617
Innovation Systems
Cost-type	405		29	%	99		26	%	813		29	%	99		26	%
Fixed-price	1,001		71	%	288		74	%	1,969		71	%	288		74	%
Intersegment sales	92				13				154				13
Innovation Systems sales	1,498				400				2,936				400
Mission Systems
Cost-type	1,316		46	%	1,207		47	%	2,590		48	%	2,486		48	%
Fixed-price	1,530		54	%	1,373		53	%	2,824		52	%	2,693		52	%
Intersegment sales	282				294				600				578
Mission Systems sales	3,128				2,874				6,014				5,757
Technology Services
Cost-type	412		48	%	385		44	%	804		48	%	822		46	%
Fixed-price	454		52	%	481		56	%	857		52	%	959		54	%
Intersegment sales	178				182				360				411
Technology Services sales	1,044				1,048				2,021				2,192
Total
Cost-type	4,112		49	%	3,625		51	%	8,188		49	%	7,243		52	%
Fixed-price	4,344		51	%	3,494		49	%	8,457		51	%	6,611		48	%
Total Sales	$	8,456			$	7,119			$	16,645			$	13,854

⁽¹⁾

Percentages calculated based on external customer sales.

Revenue from External Customers by Geographic Areas



Sales by Geographic Region	Three Months Ended June 30								Six Months Ended June 30
	2019				2018				2019				2018
$ in millions	$		%⁽²⁾		$		%⁽²⁾		$		%⁽²⁾		$		%⁽²⁾
Aerospace Systems
United States	$	2,948	88	%	$	2,837	86	%	$	6,004	88	%	$	5,787	89	%
Asia/Pacific	220		7	%	249		8	%	459		7	%	378		6	%
All other ⁽¹⁾	170		5	%	200		6	%	325		5	%	342		5	%
Intersegment sales	52				51				98				110
Aerospace Systems sales	3,390				3,337				6,886				6,617
Innovation Systems
United States	1,179		84	%	296		77	%	2,308		83	%	296		77	%
Asia/Pacific	48		3	%	24		6	%	93		3	%	24		6	%
All other ⁽¹⁾	179		13	%	67		17	%	381		14	%	67		17	%
Intersegment sales	92				13				154				13
Innovation Systems sales	1,498				400				2,936				400
Mission Systems
United States	2,387		84	%	2,193		85	%	4,588		85	%	4,413		85	%
Asia/Pacific	154		5	%	160		6	%	300		5	%	313		6	%
All other ⁽¹⁾	305		11	%	227		9	%	526		10	%	453		9	%
Intersegment sales	282				294				600				578
Mission Systems sales	3,128				2,874				6,014				5,757
Technology Services
United States	641		74	%	673		78	%	1,227		74	%	1,368		77	%
Asia/Pacific	62		7	%	36		4	%	100		6	%	68		4	%
All other ⁽¹⁾	163		19	%	157		18	%	334		20	%	345		19	%
Intersegment sales	178				182				360				411
Technology Services sales	1,044				1,048				2,021				2,192
Total
United States	7,155		84	%	5,999		84	%	14,127		85	%	11,864		85	%
Asia/Pacific	484		6	%	469		7	%	952		6	%	783		6	%
All other ⁽¹⁾	817		10	%	651		9	%	1,566		9	%	1,207		9	%
Total Sales	$	8,456			$	7,119			$	16,645			$	13,854


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

⁽²⁾

Percentages calculated based on external customer sales.