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Segment Information (Unaudited)
 9 Months Ended
Sep. 30, 2023
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 millions2023202220232022
Sales
Aeronautics Systems$2,766 $2,537 $7,876 $7,774 
Defense Systems1,421 1,345 4,217 3,922 
Mission Systems2,628 2,456 7,832 7,469 
Space Systems3,506 3,163 10,344 8,997 
Intersegment eliminations(546)(530)(1,617)(1,593)
Total sales9,775 8,971 28,652 26,569 
Operating income
Aeronautics Systems283 262 798 827 
Defense Systems182 158 508 481 
Mission Systems386 368 1,147 1,166 
Space Systems312 290 908 861 
Intersegment eliminations(74)(71)(218)(218)
Total segment operating income1,089 1,007 3,143 3,117 
FAS/CAS operating adjustment(20)(55)(62)(152)
Unallocated corporate expense(53)(108)(151)(270)
Total operating income$1,016 $844 $2,930 $2,695 
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
Unallocated corporate expense 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 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.
Disaggregation of Revenue
Sales by Customer TypeThree Months Ended September 30Nine Months Ended September 30
2023202220232022
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,331 84 %$2,138 85 %$6,654 85 %$6,564 85 %
International(2)
377 14 %341 13 %1,016 13 %1,012 13 %
Other customers4 — %— — %23 — %17 — %
Intersegment sales54 2 %58 2 %183 2 %181 2 %
Aeronautics Systems sales2,766 100 %2,537 100 %7,876 100 %7,774 100 %
Defense Systems
U.S. government(1)
841 60 %820 62 %2,492 60 %2,369 61 %
International(2)
358 25 %312 23 %1,103 26 %933 24 %
Other customers19 1 %19 1 %55 1 %53 1 %
Intersegment sales203 14 %194 14 %567 13 %567 14 %
Defense Systems sales1,421 100 %1,345 100 %4,217 100 %3,922 100 %
Mission Systems
U.S. government(1)
1,917 73 %1,729 71 %5,729 73 %5,325 72 %
International(2)
432 16 %452 18 %1,262 16 %1,300 17 %
Other customers16 1 %25 1 %58 1 %89 1 %
Intersegment sales263 10 %250 10 %783 10 %755 10 %
Mission Systems sales2,628 100 %2,456 100 %7,832 100 %7,469 100 %
Space Systems
U.S. government(1)
3,342 95 %2,967 94 %9,822 95 %8,473 94 %
International(2)
72 2 %105 3 %226 2 %261 3 %
Other customers66 2 %63 2 %212 2 %173 2 %
Intersegment sales26 1 %28 1 %84 1 %90 1 %
Space Systems sales3,506 100 %3,163 100 %10,344 100 %8,997 100 %
Total
U.S. government(1)
8,431 86 %7,654 86 %24,697 86 %22,731 86 %
International(2)
1,239 13 %1,210 13 %3,607 13 %3,506 13 %
Other customers105 1 %107 1 %348 1 %332 1 %
Total Sales$9,775 100 %$8,971 100 %$28,652 100 %$26,569 100 %
(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
2023 20222023 2022
$ in millions$
%(1)
$
%(1)
$
%(1)
$
%(1)
Aeronautics Systems
Cost-type$1,370 51 %$1,185 48 %$3,920 51 %$3,678 48 %
Fixed-price1,342 49 %1,294 52 %3,773 49 %3,915 52 %
Intersegment sales54 58 183 181 
Aeronautics Systems sales2,766 2,537 7,876 7,774 
Defense Systems
Cost-type378 31 %366 32 %1,205 33 %1,075 32 %
Fixed-price840 69 %785 68 %2,445 67 %2,280 68 %
Intersegment sales203 194 567 567 
Defense Systems sales1,421 1,345 4,217 3,922 
Mission Systems
Cost-type1,002 42 %881 40 %2,920 41 %2,591 39 %
Fixed-price1,363 58 %1,325 60 %4,129 59 %4,123 61 %
Intersegment sales263 250 783 755 
Mission Systems sales2,628 2,456 7,832 7,469 
Space Systems
Cost-type2,511 72 %2,192 70 %7,529 73 %6,271 70 %
Fixed-price969 28 %943 30 %2,731 27 %2,636 30 %
Intersegment sales26 28 84 90 
Space Systems sales3,506 3,163 10,344 8,997 
Total
Cost-type5,261 54 %4,624 52 %15,574 54 %13,615 51 %
Fixed-price4,514 46 %4,347 48 %13,078 46 %12,954 49 %
Total Sales$9,775 $8,971 $28,652 $26,569 
(1)Percentages calculated based on external customer sales.
Sales by Geographic RegionThree Months Ended September 30Nine Months Ended September 30
2023202220232022
$ in millions$
%(2)
$
%(2)
$
%(2)
$
%(2)
Aeronautics Systems        
United States$2,335 86 %$2,138 85 %$6,677 87 %$6,581 87 %
Asia/Pacific163 6 %165 7 %448 6 %560 7 %
Europe204 8 %163 7 %543 7 %413 5 %
All other(1)
10 — %13 1 %25 — %39 1 %
Intersegment sales54 58 183 181 
Aeronautics Systems sales2,766 2,537 7,876 7,774 
Defense Systems
United States860 70 %839 72 %2,547 70 %2,422 72 %
Asia/Pacific93 8 %112 10 %324 9 %340 10 %
Europe146 12 %101 9 %406 11 %297 9 %
All other(1)
119 10 %99 9 %373 10 %296 9 %
Intersegment sales203 194 567 567 
Defense Systems sales1,421 1,345 4,217 3,922 
Mission Systems
United States1,933 82 %1,754 79 %5,787 83 %5,414 81 %
Asia/Pacific98 4 %159 7 %310 4 %435 6 %
Europe246 10 %210 10 %712 10 %654 10 %
All other(1)
88 4 %83 4 %240 3 %211 3 %
Intersegment sales263 250 783 755 
Mission Systems sales2,628 2,456 7,832 7,469 
Space Systems
United States3,408 98 %3,030 97 %10,034 98 %8,646 97 %
Asia/Pacific22 1 %33 1 %67 1 %86 1 %
Europe44 1 %69 2 %127 1 %165 2 %
All other(1)
6 — %3 — %32 — %10 — %
Intersegment sales26 28 84 90 
Space Systems sales3,506 3,163 10,344 8,997 
Total
United States8,536 87 %7,761 87 %25,045 87 %23,063 87 %
Asia/Pacific376 4 %469 5 %1,149 4 %1,421 5 %
Europe640 7 %543 6 %1,788 7 %1,529 6 %
All other(1)
223 2 %198 2 %670 2 %556 2 %
Total Sales$9,775 $8,971 $28,652 $26,569 
(1)All other is principally comprised of the Middle East.
(2)Percentages calculated based on external customer sales.