XML 29 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Information (Unaudited)
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The following table presents sales and operating income by segment:
Three Months Ended June 30Six Months Ended June 30
$ in millions2021202020212020
Sales
Aeronautics Systems$2,913 $2,925 $5,903 $5,768 
Defense Systems1,427 1,886 2,989 3,767 
Mission Systems2,588 2,446 5,177 4,793 
Space Systems2,748 2,048 5,269 3,996 
Intersegment eliminations(525)(421)(1,030)(820)
Total sales9,151 8,884 18,308 17,504 
Operating income
Aeronautics Systems300 310 608 573 
Defense Systems177 217 354 415 
Mission Systems408 347 805 700 
Space Systems301 209 577 411 
Intersegment eliminations(69)(52)(132)(101)
Total segment operating income1,117 1,031 2,212 1,998 
FAS/CAS operating adjustment18 103 37 208 
Unallocated corporate (expense) income (91)(140)1,617 (278)
Total operating income$1,044 $994 $3,866 $1,928 
FAS/CAS Operating 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 FAS/CAS operating adjustment, previously referred to as the net FAS (service)/CAS pension adjustment, reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income.
Unallocated Corporate (Expense) Income
Unallocated corporate (expense) income includes the portion of corporate costs not considered allowable or allocable under applicable CAS or FAR, and therefore not allocated to the segments, such as a portion of management and administration, legal, environmental, compensation, retiree benefits, advertising and other corporate unallowable costs. Unallocated corporate (expense) income also includes costs not considered part of management’s evaluation of segment operating performance, such as 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 well as certain compensation and other costs.
During the first quarter of 2021, the $2.0 billion pre-tax gain on the sale of our IT services business and $192 million of unallowable state taxes and transaction costs associated with the divestiture were recorded in Unallocated corporate (expense) income.
Disaggregation of Revenue
Sales by Customer TypeThree Months Ended June 30Six Months Ended June 30
2021202020212020
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,513 86 %$2,477 85 %$5,054 86 %$4,838 84 %
International(2)
351 12 %407 14 %750 12 %851 15 %
Other customers4 — %12 — %10 — %24 — %
Intersegment sales45 2 %29 1 %89 2 %55 1 %
Aeronautics Systems sales2,913 100 %2,925 100 %5,903 100 %5,768 100 %
Defense Systems
U.S. government(1)
879 62 %1,305 69 %1,872 63 %2,564 68 %
International(2)
335 23 %316 17 %686 22 %656 18 %
Other customers18 1 %85 4 %51 2 %196 5 %
Intersegment sales195 14 %180 10 %380 13 %351 9 %
Defense Systems sales1,427 100 %1,886 100 %2,989 100 %3,767 100 %
Mission Systems
U.S. government(1)
1,901 73 %1,776 73 %3,735 72 %3,447 72 %
International(2)
419 16 %468 19 %921 18 %951 20 %
Other customers14 1 %18 1 %30 1 %35 1 %
Intersegment sales254 10 %184 7 %491 9 %360 7 %
Mission Systems sales2,588 100 %2,446 100 %5,177 100 %4,793 100 %
Space Systems
U.S. government(1)
2,568 93 %1,911 93 %4,894 93 %3,714 93 %
International(2)
104 4 %70 4 %209 4 %138 3 %
Other customers45 2 %39 2 %96 2 %90 3 %
Intersegment sales31 1 %28 1 %70 1 %54 1 %
Space Systems sales2,748 100 %2,048 100 %5,269 100 %3,996 100 %
Total
U.S. government(1)
7,861 86 %7,469 84 %15,555 85 %14,563 83 %
International(2)
1,209 13 %1,261 14 %2,566 14 %2,596 15 %
Other customers81 1 %154 2 %187 1 %345 2 %
Total Sales$9,151 100 %$8,884 100 %$18,308 100 %$17,504 100 %
(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.
Sales by Contract TypeThree Months Ended June 30Six Months Ended June 30
2021 20202021 2020
$ in millions$
%(1)
$
%(1)
$
%(1)
$
%(1)
Aeronautics Systems          
Cost-type$1,341 47 %$1,426 49 %$2,752 47 %$2,769 48 %
Fixed-price1,527 53 %1,470 51 %3,062 53 %2,944 52 %
Intersegment sales45 29 89 55 
Aeronautics Systems sales2,913 2,925 5,903 5,768 
Defense Systems
Cost-type434 35 %582 34 %943 36 %1,210 35 %
Fixed-price798 65 %1,124 66 %1,666 64 %2,206 65 %
Intersegment sales195 180 380 351 
Defense Systems sales1,427 1,886 2,989 3,767 
Mission Systems
Cost-type808 35 %895 40 %1,673 36 %1,741 39 %
Fixed-price1,526 65 %1,367 60 %3,013 64 %2,692 61 %
Intersegment sales254 184 491 360 
Mission Systems sales2,588 2,446 5,177 4,793 
Space Systems
Cost-type2,025 75 %1,468 73 %3,869 74 %2,866 73 %
Fixed-price692 25 %552 27 %1,330 26 %1,076 27 %
Intersegment sales31 28 70 54 
Space Systems sales2,748 2,048 5,269 3,996 
Total
Cost-type4,608 50 %4,371 49 %9,237 50 %8,586 49 %
Fixed-price4,543 50 %4,513 51 %9,071 50 %8,918 51 %
Total Sales$9,151 $8,884 $18,308 $17,504 
(1)Percentages calculated based on external customer sales.
Sales by Geographic RegionThree Months Ended June 30Six Months Ended June 30
2021202020212020
$ in millions$
%(2)
$
%(2)
$
%(2)
$
%(2)
Aeronautics Systems          
United States$2,517 88 %$2,489 86 %$5,064 87 %$4,862 85 %
Asia/Pacific204 7 %202 7 %483 8 %409 7 %
Europe127 4 %150 5 %227 4 %316 6 %
All other(1)
20 1 %55 2 %40 1 %126 2 %
Intersegment sales45 29 89 55 
Aeronautics Systems sales2,913 2,925 5,903 5,768 
Defense Systems
United States897 73 %1,390 82 %1,923 73 %2,760 81 %
Asia/Pacific126 10 %107 6 %229 9 %189 5 %
Europe79 6 %70 4 %155 6 %140 4 %
All other(1)
130 11 %139 8 %302 12 %327 10 %
Intersegment sales195 180 380 351 
Defense Systems sales1,427 1,886 2,989 3,767 
Mission Systems
United States1,915 82 %1,794 79 %3,765 80 %3,482 79 %
Asia/Pacific98 4 %191 9 %258 6 %367 8 %
Europe242 11 %191 9 %511 11 %416 9 %
All other(1)
79 3 %86 3 %152 3 %168 4 %
Intersegment sales254 184 491 360 
Mission Systems sales2,588 2,446 5,177 4,793 
Space Systems
United States2,614 97 %1,950 97 %4,990 96 %3,804 97 %
Asia/Pacific13 — %5 — %29 1 %10 — %
Europe89 3 %63 3 %177 3 %122 3 %
All other(1)
1 — %2 — %3 — %6 — %
Intersegment sales31 28 70 54 
Space Systems sales2,748 2,048 5,269 3,996 
Total
United States7,943 86 %7,623 86 %15,742 86 %14,908 85 %
Asia/Pacific441 5 %505 6 %999 5 %975 6 %
Europe537 6 %474 5 %1,070 6 %994 6 %
All other(1)
230 3 %282 3 %497 3 %627 3 %
Total Sales$9,151 $8,884 $18,308 $17,504 
(1)All other is principally comprised of the Middle East.
(2)Percentages calculated based on external customer sales.