Segment Information (Unaudited) (Tables)

3 Months Ended

Mar. 31, 2025

Sales, operating costs and expenses, and operating income by segment


	Three Months Ended March 31
$ in millions		2025		2024
Aeronautics Systems
Sales		$	2,814	$	3,044
Operating costs and expenses:
Product		2,358		2,059
Service		601		649
Intersegment		38		30
Aeronautics Systems operating (loss) income		(183)		306
Defense Systems
Sales		1,805		1,737
Operating costs and expenses:
Product		1,262		1,200
Service		324		345
Intersegment		40		36
Defense Systems operating income		179		156
Mission Systems
Sales		2,807		2,659
Operating costs and expenses:
Product		1,730		1,605
Service		434		446
Intersegment		282		230
Mission Systems operating income		361		378
Space Systems
Sales		2,568		3,149
Operating costs and expenses:
Product		1,829		2,375
Service		362		350
Intersegment		94		94
Space Systems operating income		283		330
Intersegment profit eliminations		(72)		(66)
Total segment operating income		568		1,104
FAS/CAS operating adjustment		63		6
Unallocated corporate expense		(58)		(39)
Total operating income		$	573	$	1,071
Other (expense) income
Interest expense		(156)		(146)
Non-operating FAS pension benefit		130		168
Other, net		31		38
Earnings before income taxes		$	578	$	1,131

Revenue by Major Customers by Reporting Segments


Sales by Customer Type	Three Months Ended March 31
		2025			2024
$ in millions			$		%(3)		$		%(3)
Aeronautics Systems
U.S. government(1)			$	2,290	83	%	$	2,584	86	%
International(2)			478		17	%	424		14	%
Other customers			5		—	%	4		—	%
Intersegment sales			41				32
Aeronautics Systems sales			2,814				3,044
Defense Systems
U.S. government(1)			1,451		83	%	1,455		86	%
International(2)			289		16	%	219		13	%
Other customers			20		1	%	21		1	%
Intersegment sales			45				42
Defense Systems sales			1,805				1,737
Mission Systems
U.S. government(1)			1,973		80	%	1,912		80	%
International(2)			475		19	%	454		19	%
Other customers			24		1	%	16		1	%
Intersegment sales			335				277
Mission Systems sales			2,807				2,659
Space Systems
U.S. government(1)			2,309		94	%	2,893		95	%
International(2)			44		2	%	65		2	%
Other customers			110		4	%	86		3	%
Intersegment sales			105				105
Space Systems sales			2,568				3,149
Total
U.S. government(1)			8,023		84	%	8,844		87	%
International(2)			1,286		14	%	1,162		12	%
Other customers			159		2	%	127		1	%
Total Sales			$	9,468			$	10,133

(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 a substantial percentage of its 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 external customer sales.

Revenue from External Customers by Contract Type


Sales by Contract Type	Three Months Ended March 31
		2025			2024
$ in millions			$		%(1)		$		%(1)
Aeronautics Systems
Cost-type			$	1,339	48	%	$	1,344	45	%
Fixed-price			1,434		52	%	1,668		55	%
Intersegment sales			41				32
Aeronautics Systems sales			2,814				3,044
Defense Systems
Cost-type			965		55	%	911		54	%
Fixed-price			795		45	%	784		46	%
Intersegment sales			45				42
Defense Systems sales			1,805				1,737
Mission Systems
Cost-type			1,163		47	%	1,067		45	%
Fixed-price			1,309		53	%	1,315		55	%
Intersegment sales			335				277
Mission Systems sales			2,807				2,659
Space Systems
Cost-type			1,540		63	%	1,875		62	%
Fixed-price			923		37	%	1,169		38	%
Intersegment sales			105				105
Space Systems sales			2,568				3,149
Total
Cost-type			5,007		53	%	5,197		51	%
Fixed-price			4,461		47	%	4,936		49	%
Total Sales			$	9,468			$	10,133

(1)Percentages calculated based on external customer sales.

Revenue from External Customers by Geographic Areas


Sales by Geographic Region	Three Months Ended March 31
		2025	2024
$ in millions			$		%(3)		$		%(3)
Aeronautics Systems
United States(1)			$	2,295	83	%	$	2,588	86	%
Asia/Pacific			200		7	%	170		6	%
Europe			269		10	%	247		8	%
Other geographic regions(2)			9		—	%	7		—	%
Intersegment sales			41				32
Aeronautics Systems sales			2,814				3,044
Defense Systems
United States(1)			1,471		84	%	1,476		87	%
Asia/Pacific			81		5	%	50		3	%
Europe			170		9	%	132		8	%
Other geographic regions(2)			38		2	%	37		2	%
Intersegment sales			45				42
Defense Systems sales			1,805				1,737
Mission Systems
United States(1)			1,997		81	%	1,928		81	%
Asia/Pacific			128		5	%	126		5	%
Europe			239		10	%	255		11	%
Other geographic regions(2)			108		4	%	73		3	%
Intersegment sales			335				277
Mission Systems sales			2,807				2,659
Space Systems
United States(1)			2,419		98	%	2,979		98	%
Asia/Pacific			8		—	%	13		—	%
Europe			26		2	%	42		2	%
Other geographic regions(2)			10		—	%	10		—	%
Intersegment sales			105				105
Space Systems sales			2,568				3,149
Total
United States(1)			8,182		86	%	8,971		88	%
Asia/Pacific			417		4	%	359		4	%
Europe			704		8	%	676		7	%
Other geographic regions(2)			165		2	%	127		1	%
Total Sales			$	9,468			$	10,133

(1)No country other than the United States represents greater than 10% of total company sales.

(2)Other geographic regions are principally comprised of the Middle East.

(3)Percentages calculated based on external customer sales.

Segment, Reconciliation of Other Items from Segments to Consolidated

Capital Expenditures and Depreciation and Amortization

The following table presents capital expenditures and depreciation and amortization for each of our reportable segments and for Corporate:


	Three Months Ended March 31
$ in millions		2025		2024
Capital Expenditures
Aeronautics Systems		$	79	$	84
Defense Systems		12		8
Mission Systems		39		43
Space Systems		110		127
Corporate (1)		16		8
Total		$	256	$	270
Depreciation and Amortization
Aeronautics Systems		$	89	$	75
Defense Systems		43		42
Mission Systems		67		62
Space Systems		79		79
Corporate (1)		59		41
Total		$	337	$	299

(1)Corporate amounts include the amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of PP&E acquired through business combinations as they are not considered part of management’s evaluation of segment operating performance.

Assets
Our chief operating decision maker (“CODM”) does not use assets by segment to evaluate segment performance or allocate resources. Therefore, we do not disclose assets by segment.