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Segment Information (Unaudited)
 6 Months Ended
Jun. 30, 2022
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 millions2022202120222021
Sales
Aeronautics Systems$2,534 $2,913 $5,237 $5,903 
Defense Systems1,294 1,427 2,577 2,989 
Mission Systems2,516 2,588 5,013 5,177 
Space Systems2,979 2,748 5,834 5,269 
Intersegment eliminations(522)(525)(1,063)(1,030)
Total sales8,801 9,151 17,598 18,308 
Operating income
Aeronautics Systems258 300 565 608 
Defense Systems168 177 323 354 
Mission Systems413 408 798 805 
Space Systems310 301 571 577 
Intersegment eliminations(76)(69)(147)(132)
Total segment operating income1,073 1,117 2,110 2,212 
FAS/CAS operating adjustment(51)18 (97)37 
Unallocated corporate (expense) income(68)(91)(162)1,617 
Total operating income$954 $1,044 $1,851 $3,866 
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 applicable Federal Acquisition Regulation (FAR) and U.S. Government Cost Accounting Standards (CAS) requirements. The FAS/CAS operating 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 the applicable FAR and CAS requirements, 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 June 30Six Months Ended June 30
2022202120222021
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,134 84 %$2,513 86 %$4,426 85 %$5,054 86 %
International(2)
328 13 %351 12 %671 13 %750 12 %
Other customers14 1 %4 — %17 — %10 — %
Intersegment sales58 2 %45 2 %123 2 %89 2 %
Aeronautics Systems sales2,534 100 %2,913 100 %5,237 100 %5,903 100 %
Defense Systems
U.S. government(1)
774 61 %879 62 %1,549 61 %1,872 63 %
International(2)
328 25 %335 23 %621 24 %686 22 %
Other customers18 1 %18 1 %34 1 %51 2 %
Intersegment sales174 13 %195 14 %373 14 %380 13 %
Defense Systems sales1,294 100 %1,427 100 %2,577 100 %2,989 100 %
Mission Systems
U.S. government(1)
1,802 72 %1,901 73 %3,596 72 %3,735 72 %
International(2)
415 16 %419 16 %848 17 %921 18 %
Other customers40 2 %14 1 %64 1 %30 1 %
Intersegment sales259 10 %254 10 %505 10 %491 9 %
Mission Systems sales2,516 100 %2,588 100 %5,013 100 %5,177 100 %
Space Systems
U.S. government(1)
2,798 94 %2,568 93 %5,506 94 %4,894 93 %
International(2)
84 3 %104 4 %156 3 %209 4 %
Other customers66 2 %45 2 %110 2 %96 2 %
Intersegment sales31 1 %31 1 %62 1 %70 1 %
Space Systems sales2,979 100 %2,748 100 %5,834 100 %5,269 100 %
Total
U.S. government(1)
7,508 85 %7,861 86 %15,077 86 %15,555 85 %
International(2)
1,155 13 %1,209 13 %2,296 13 %2,566 14 %
Other customers138 2 %81 1 %225 1 %187 1 %
Total Sales$8,801 100 %$9,151 100 %$17,598 100 %$18,308 100 %
(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
2022 20212022 2021
$ in millions$
%(1)
$
%(1)
$
%(1)
$
%(1)
Aeronautics Systems
Cost-type$1,217 49 %$1,341 47 %$2,493 49 %$2,752 47 %
Fixed-price1,259 51 %1,527 53 %2,621 51 %3,062 53 %
Intersegment sales58 45 123 89 
Aeronautics Systems sales2,534 2,913 5,237 5,903 
Defense Systems
Cost-type373 33 %434 35 %709 32 %943 36 %
Fixed-price747 67 %798 65 %1,495 68 %1,666 64 %
Intersegment sales174 195 373 380 
Defense Systems sales1,294 1,427 2,577 2,989 
Mission Systems
Cost-type875 39 %808 35 %1,710 38 %1,673 36 %
Fixed-price1,382 61 %1,526 65 %2,798 62 %3,013 64 %
Intersegment sales259 254 505 491 
Mission Systems sales2,516 2,588 5,013 5,177 
Space Systems
Cost-type2,096 71 %2,025 75 %4,079 71 %3,869 74 %
Fixed-price852 29 %692 25 %1,693 29 %1,330 26 %
Intersegment sales31 31 62 70 
Space Systems sales2,979 2,748 5,834 5,269 
Total
Cost-type4,561 52 %4,608 50 %8,991 51 %9,237 50 %
Fixed-price4,240 48 %4,543 50 %8,607 49 %9,071 50 %
Total Sales$8,801 $9,151 $17,598 $18,308 
(1)Percentages calculated based on external customer sales.
Sales by Geographic RegionThree Months Ended June 30Six Months Ended June 30
2022202120222021
$ in millions$
%(2)
$
%(2)
$
%(2)
$
%(2)
Aeronautics Systems        
United States$2,148 87 %$2,517 88 %$4,443 86 %$5,064 87 %
Asia/Pacific205 8 %204 7 %395 8 %483 8 %
Europe113 5 %127 4 %250 5 %227 4 %
All other(1)
10 — %20 1 %26 1 %40 1 %
Intersegment sales58 45 123 89 
Aeronautics Systems sales2,534 2,913 5,237 5,903 
Defense Systems
United States792 71 %897 73 %1,583 72 %1,923 73 %
Asia/Pacific123 11 %126 10 %228 10 %229 9 %
Europe95 8 %79 6 %196 9 %155 6 %
All other(1)
110 10 %130 11 %197 9 %302 12 %
Intersegment sales174 195 373 380 
Defense Systems sales1,294 1,427 2,577 2,989 
Mission Systems
United States1,842 81 %1,915 82 %3,660 81 %3,765 80 %
Asia/Pacific137 6 %98 4 %276 6 %258 6 %
Europe219 10 %242 11 %444 10 %511 11 %
All other(1)
59 3 %79 3 %128 3 %152 3 %
Intersegment sales259 254 505 491 
Mission Systems sales2,516 2,588 5,013 5,177 
Space Systems
United States2,864 97 %2,614 97 %5,616 97 %4,990 96 %
Asia/Pacific24 1 %13 — %53 1 %29 1 %
Europe56 2 %89 3 %96 2 %177 3 %
All other(1)
4 — %1 — %7 — %3 — %
Intersegment sales31 31 62 70 
Space Systems sales2,979 2,748 5,834 5,269 
Total
United States7,646 87 %7,943 86 %15,302 87 %15,742 86 %
Asia/Pacific489 6 %441 5 %952 5 %999 5 %
Europe483 5 %537 6 %986 6 %1,070 6 %
All other(1)
183 2 %230 3 %358 2 %497 3 %
Total Sales$8,801 $9,151 $17,598 $18,308 
(1)All other is principally comprised of the Middle East.
(2)Percentages calculated based on external customer sales.