XML 27 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Information (Unaudited)
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The following table presents sales and operating income by segment:
Three Months Ended September 30Nine Months Ended September 30
$ in millions2021202020212020
Sales
Aeronautics Systems$2,725 $2,914 $8,628 $8,682 
Defense Systems1,409 1,859 4,398 5,626 
Mission Systems2,436 2,551 7,613 7,344 
Space Systems2,681 2,198 7,950 6,194 
Intersegment eliminations(531)(439)(1,561)(1,259)
Total sales8,720 9,083 27,028 26,587 
Operating income
Aeronautics Systems265 294 873 867 
Defense Systems175 217 529 632 
Mission Systems372 370 1,177 1,070 
Space Systems288 224 865 635 
Intersegment eliminations(65)(56)(197)(157)
Total segment operating income1,035 1,049 3,247 3,047 
FAS/CAS operating adjustment61 108 98 316 
Unallocated corporate (expense) income(53)(172)1,564 (450)
Total operating income$1,043 $985 $4,909 $2,913 
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 changes in deferred state income taxes and 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 September 30Nine Months Ended September 30
2021202020212020
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,312 85 %$2,491 85 %$7,366 85 %$7,329 84 %
International(2)
360 13 %382 13 %1,110 13 %1,233 14 %
Other customers5 — %11 1 %15 — %35 1 %
Intersegment sales48 2 %30 1 %137 2 %85 1 %
Aeronautics Systems sales2,725 100 %2,914 100 %8,628 100 %8,682 100 %
Defense Systems
U.S. government(1)
877 62 %1,264 68 %2,749 63 %3,828 68 %
International(2)
316 22 %307 17 %1,002 23 %963 17 %
Other customers10 1 %97 5 %61 1 %293 5 %
Intersegment sales206 15 %191 10 %586 13 %542 10 %
Defense Systems sales1,409 100 %1,859 100 %4,398 100 %5,626 100 %
Mission Systems
U.S. government(1)
1,756 72 %1,884 74 %5,491 71 %5,331 73 %
International(2)
417 17 %455 18 %1,338 18 %1,406 19 %
Other customers19 1 %19 1 %49 1 %54 1 %
Intersegment sales244 10 %193 7 %735 10 %553 7 %
Mission Systems sales2,436 100 %2,551 100 %7,613 100 %7,344 100 %
Space Systems
U.S. government(1)
2,507 94 %2,020 92 %7,401 93 %5,734 93 %
International(2)
92 3 %99 5 %301 4 %237 4 %
Other customers49 2 %54 2 %145 2 %144 2 %
Intersegment sales33 1 %25 1 %103 1 %79 1 %
Space Systems sales2,681 100 %2,198 100 %7,950 100 %6,194 100 %
Total
U.S. government(1)
7,452 85 %7,659 84 %23,007 85 %22,222 84 %
International(2)
1,185 14 %1,243 14 %3,751 14 %3,839 14 %
Other customers83 1 %181 2 %270 1 %526 2 %
Total Sales$8,720 100 %$9,083 100 %$27,028 100 %$26,587 100 %
(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 September 30Nine Months Ended September 30
2021 20202021 2020
$ in millions$
%(1)
$
%(1)
$
%(1)
$
%(1)
Aeronautics Systems        
Cost-type$1,358 51 %$1,436 50 %$4,110 48 %$4,205 49 %
Fixed-price1,319 49 %1,448 50 %4,381 52 %4,392 51 %
Intersegment sales48 30 137 85 
Aeronautics Systems sales2,725 2,914 8,628 8,682 
Defense Systems
Cost-type433 36 %549 33 %1,376 36 %1,759 35 %
Fixed-price770 64 %1,119 67 %2,436 64 %3,325 65 %
Intersegment sales206 191 586 542 
Defense Systems sales1,409 1,859 4,398 5,626 
Mission Systems
Cost-type746 34 %948 40 %2,419 35 %2,689 40 %
Fixed-price1,446 66 %1,410 60 %4,459 65 %4,102 60 %
Intersegment sales244 193 735 553 
Mission Systems sales2,436 2,551 7,613 7,344 
Space Systems
Cost-type1,931 73 %1,563 72 %5,800 74 %4,429 72 %
Fixed-price717 27 %610 28 %2,047 26 %1,686 28 %
Intersegment sales33 25 103 79 
Space Systems sales2,681 2,198 7,950 6,194 
Total
Cost-type4,468 51 %4,496 49 %13,705 51 %13,082 49 %
Fixed-price4,252 49 %4,587 51 %13,323 49 %13,505 51 %
Total Sales$8,720 $9,083 $27,028 $26,587 
(1)Percentages calculated based on external customer sales.
Sales by Geographic RegionThree Months Ended September 30Nine Months Ended September 30
2021202020212020
$ in millions$
%(2)
$
%(2)
$
%(2)
$
%(2)
Aeronautics Systems        
United States$2,317 87 %$2,502 87 %$7,381 86 %$7,364 86 %
Asia/Pacific239 9 %217 7 %722 9 %626 7 %
Europe108 4 %129 5 %335 4 %445 5 %
All other(1)
13 — %36 1 %53 1 %162 2 %
Intersegment sales48 30 137 85 
Aeronautics Systems sales2,725 2,914 8,628 8,682 
Defense Systems
United States887 74 %1,361 82 %2,810 74 %4,121 81 %
Asia/Pacific107 9 %103 6 %336 9 %292 6 %
Europe78 6 %73 4 %233 6 %213 4 %
All other(1)
131 11 %131 8 %433 11 %458 9 %
Intersegment sales206 191 586 542 
Defense Systems sales1,409 1,859 4,398 5,626 
Mission Systems
United States1,775 81 %1,903 81 %5,540 81 %5,385 79 %
Asia/Pacific114 5 %122 5 %372 5 %489 7 %
Europe233 11 %253 11 %744 11 %669 10 %
All other(1)
70 3 %80 3 %222 3 %248 4 %
Intersegment sales244 193 735 553 
Mission Systems sales2,436 2,551 7,613 7,344 
Space Systems
United States2,556 97 %2,074 96 %7,546 97 %5,878 96 %
Asia/Pacific10 — %5 — %39 — %15 — %
Europe79 3 %90 4 %256 3 %212 4 %
All other(1)
3 — %4 — %6 — %10 — %
Intersegment sales33 25 103 79 
Space Systems sales2,681 2,198 7,950 6,194 
Total
United States7,535 87 %7,840 86 %23,277 86 %22,748 86 %
Asia/Pacific470 5 %447 5 %1,469 5 %1,422 5 %
Europe498 6 %545 6 %1,568 6 %1,539 6 %
All other(1)
217 2 %251 3 %714 3 %878 3 %
Total Sales$8,720 $9,083 $27,028 $26,587 
(1)All other is principally comprised of the Middle East.
(2)Percentages calculated based on external customer sales.