Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

The following table presents sales and operating income by segment:



	Year Ended December 31
$ in millions	2019			2018			2017
Sales
Aeronautics Systems	$	11,116		$	10,293		$	9,040
Defense Systems	7,495			6,612			5,479
Mission Systems	9,410			8,949			8,460
Space Systems	7,425			5,845			4,719
Intersegment eliminations	(1,605		)	(1,604		)	(1,694		)
Total sales	33,841			30,095			26,004
Operating income
Aeronautics Systems	1,170			1,107			848
Defense Systems	781			690			534
Mission Systems	1,382			1,215			1,157
Space Systems	781			635			578
Intersegment eliminations	(205		)	(200		)	(214		)
Total segment operating income	3,909			3,447			2,903
Net FAS (service)/CAS pension adjustment	465			613			638
Unallocated corporate expense	(405		)	(280		)	(323		)
Total operating income	$	3,969		$	3,780		$	3,218

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



Sales by Customer Type	Year Ended December 31
	2019				2018				2017
$ in millions	$		%⁽³⁾		$		%⁽³⁾		$		%⁽³⁾
Aeronautics Systems
U.S. government ⁽¹⁾	$	9,258	83	%	$	8,732	85	%	$	7,817	86	%
International ⁽²⁾	1,688		15	%	1,402		13	%	1,107		12	%
Other customers	67		1	%	86		1	%	70		1	%
Intersegment sales	103		1	%	73		1	%	46		1	%
Aeronautics Systems sales	11,116		100	%	10,293		100	%	9,040		100	%
Defense Systems
U.S. government ⁽¹⁾	4,952		66	%	4,132		62	%	3,422		62	%
International ⁽²⁾	1,442		19	%	1,249		19	%	726		13	%
Other customers	410		6	%	481		7	%	357		7	%
Intersegment sales	691		9	%	750		12	%	974		18	%
Defense Systems sales	7,495		100	%	6,612		100	%	5,479		100	%
Mission Systems
U.S. government ⁽¹⁾	6,765		72	%	6,501		73	%	6,186		73	%
International ⁽²⁾	1,839		19	%	1,653		18	%	1,565		18	%
Other customers	78		1	%	77		1	%	71		1	%
Intersegment sales	728		8	%	718		8	%	638		8	%
Mission Systems sales	9,410		100	%	8,949		100	%	8,460		100	%
Space Systems
U.S. government ⁽¹⁾	6,959		94	%	5,431		93	%	4,544		96	%
International ⁽²⁾	185		2	%	130		2	%	54		1	%
Other customers	198		3	%	221		4	%	85		2	%
Intersegment sales	83		1	%	63		1	%	36		1	%
Space Systems sales	7,425		100	%	5,845		100	%	4,719		100	%
Total
U.S. government ⁽¹⁾	27,934		83	%	24,796		82	%	21,969		85	%
International ⁽²⁾	5,154		15	%	4,434		15	%	3,452		13	%
Other customers	753		2	%	865		3	%	583		2	%
Total Sales	$	33,841	100	%	$	30,095	100	%	$	26,004	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
	2019				2018				2017
$ in millions	$		%⁽¹⁾		$		%⁽¹⁾		$		%⁽¹⁾
Aeronautics Systems
Cost-type	$	5,299	48	%	$	5,066	50	%	$	4,743	53	%
Fixed-price	5,714		52	%	5,154		50	%	4,251		47	%
Intersegment sales	103				73				46
Aeronautics Systems sales	11,116				10,293				9,040
Defense Systems
Cost-type	2,509		37	%	2,386		41	%	2,354		52	%
Fixed-price	4,295		63	%	3,476		59	%	2,151		48	%
Intersegment sales	691				750				974
Defense Systems sales	7,495				6,612				5,479
Mission Systems
Cost-type	3,335		38	%	3,099		38	%	2,919		37	%
Fixed-price	5,347		62	%	5,132		62	%	4,903		63	%
Intersegment sales	728				718				638
Mission Systems sales	9,410				8,949				8,460
Space Systems
Cost-type	5,336		73	%	4,453		77	%	4,181		89	%
Fixed-price	2,006		27	%	1,329		23	%	502		11	%
Intersegment sales	83				63				36
Space Systems sales	7,425				5,845				4,719
Total
Cost-type	16,479		49	%	15,004		50	%	14,197		55	%
Fixed-price	17,362		51	%	15,091		50	%	11,807		45	%
Total Sales	$	33,841			$	30,095			$	26,004

⁽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
	2019				2018				2017
$ in millions	$		%⁽²⁾		$		%⁽²⁾		$		%⁽²⁾
Aeronautics Systems
United States	$	9,325	85	%	$	8,818	86	%	$	7,887	88	%
Asia/Pacific	810		7	%	677		7	%	635		7	%
All other ⁽¹⁾	878		8	%	725		7	%	472		5	%
Intersegment sales	103				73				46
Aeronautics Systems sales	11,116				10,293				9,040
Defense Systems
United States	5,362		79	%	4,613		79	%	3,779		84	%
Asia/Pacific	369		5	%	365		6	%	194		4	%
All other ⁽¹⁾	1,073		16	%	884		15	%	532		12	%
Intersegment sales	691				750				974
Defense Systems sales	7,495				6,612				5,479
Mission Systems
United States	6,843		79	%	6,578		80	%	6,257		80	%
Asia/Pacific	637		7	%	592		7	%	617		8	%
All other ⁽¹⁾	1,202		14	%	1,061		13	%	948		12	%
Intersegment sales	728				718				638
Mission Systems sales	9,410				8,949				8,460
Space Systems
United States	7,157		98	%	5,652		98	%	4,629		99	%
Asia/Pacific	20		—	%	32		—	%	15		—	%
All other ⁽¹⁾	165		2	%	98		2	%	39		1	%
Intersegment sales	83				63				36
Space Systems sales	7,425				5,845				4,719
Total
United States	28,687		85	%	25,661		85	%	22,552		87	%
Asia/Pacific	1,836		5	%	1,666		6	%	1,461		5	%
All other ⁽¹⁾	3,318		10	%	2,768		9	%	1,991		8	%
Total Sales	$	33,841			$	30,095			$	26,004


⁽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	2019					2018					2017
	Sales		Operating Income			Sales		Operating Income			Sales		Operating Income
Intersegment sales and operating income
Aeronautics Systems	$	103		$	10	$	73		$	8	$	46		$	5
Defense Systems	691			74		750			74		974			97
Mission Systems	728			113		718			115		638			106
Space Systems	83			8		63			3		36			6
Total	$	1,605		$	205	$	1,604		$	200	$	1,694		$	214

Total assets by segment

The following table presents assets by segment:



	December 31
$ in millions	2019		2018
Assets
Aeronautics Systems	$	9,104	$	8,396
Defense Systems	7,420		7,178
Mission Systems	9,934		9,400
Space Systems	10,595		9,148
Corporate assets⁽¹⁾	4,036		3,531
Total assets	$	41,089	$	37,653

⁽¹⁾

Corporate assets principally consist of cash and cash equivalents, refundable taxes, deferred tax assets, 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	2019		2018		2017		2019		2018		2017
	Capital Expenditures						Depreciation and Amortization⁽¹⁾
Aeronautics Systems	$	528	$	657	$	574	$	224	$	190	$	164
Defense Systems	71		66		14		44		65		47
Mission Systems	229		197		158		133		121		117
Space Systems	352		226		98		189		130		77
Corporate	84		103		84		428		294		70
Total	$	1,264	$	1,249	$	928	$	1,018	$	800	$	475

⁽¹⁾

Beginning in 2018, corporate amounts include the amortization of 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.