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Segment Information (Unaudited)
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The following table presents sales, operating costs and expenses, and operating income by segment:
Three Months Ended June 30Six Months Ended June 30
$ in millions2025202420252024
Aeronautics Systems
Sales
$3,114 $3,060 $5,928 $6,104 
Operating costs and expenses:
Product
2,109 2,028 4,467 4,087 
Service
649 692 1,250 1,341 
Intersegment
35 28 73 58 
Aeronautics Systems operating income
321 312 138 618 
Defense Systems
Sales
1,9911,8593,7963,596
Operating costs and expenses:
Product
1,3721,2952,6342,495
Service
319333643678
Intersegment
47408776
Defense Systems operating income
253191432347
Mission Systems
Sales
3,1572,7735,9645,432
Operating costs and expenses:
Product
1,9451,6853,6753,290
Service
483475917921
Intersegment
288252570482
Mission Systems operating income
441361802739
Space Systems
Sales
2,6463,0025,2146,151
Operating costs and expenses:
Product
1,8932,2543,7224,629
Service
362355724705
Intersegment
11189205183
Space Systems operating income
280304563634
Intersegment profit eliminations
(76)(67)(148)(133)
Total segment operating income1,2191,1011,7872,205
FAS/CAS operating adjustment63612612
Unallocated corporate income (expense)143(17)85(56)
Total operating income1,4251,0901,9982,161
Other (expense) income
Interest expense(173)(154)(329)(300)
Non-operating FAS pension benefit137167267335
Other, net38436981
Earnings before income taxes$1,427 $1,146 $2,005 $2,277 
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 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 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.
During the second quarter of 2025, the $231 million pre-tax gain on the sale of our training services business and $19 million of unallowable state taxes and transaction costs associated with the divestiture were recorded in Unallocated corporate income (expense).
Disaggregation of Revenue
Sales by Customer TypeThree Months Ended June 30Six Months Ended June 30
2025202420252024
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,526 82 %$2,606 86 %$4,816 82 %$5,190 86 %
International(2)
544 18 %415 14 %1,022 18 %839 14 %
Other customers6 — %5 — %11 — %9 — %
Intersegment sales38 34 79 66 
Aeronautics Systems sales3,114 3,060 5,928 6,104 
Defense Systems
U.S. government(1)
1,611 83 %1,508 83 %3,062 83 %2,963 85 %
International(2)
305 16 %287 16 %594 16 %506 14 %
Other customers22 1 %19 1 %42 1 %40 1 %
Intersegment sales53 45 98 87 
Defense Systems sales1,991 1,859 3,796 3,596 
Mission Systems
U.S. government(1)
2,282 81 %2,028 82 %4,255 80 %3,940 81 %
International(2)
505 18 %427 17 %980 19 %881 18 %
Other customers29 1 %21 1 %53 1 %37 1 %
Intersegment sales341 297 676 574 
Mission Systems sales3,157 2,773 5,964 5,432 
Space Systems
U.S. government(1)
2,349 93 %2,746 95 %4,658 93 %5,639 95 %
International(2)
47 2 %56 2 %91 2 %121 2 %
Other customers125 5 %100 3 %235 5 %186 3 %
Intersegment sales125 100 230 205 
Space Systems sales2,646 3,002 5,214 6,151 
Total
U.S. government(1)
8,768 85 %8,888 87 %16,791 85 %17,732 87 %
International(2)
1,401 13 %1,185 12 %2,687 13 %2,347 12 %
Other customers182 2 %145 1 %341 2 %272 1 %
Total Sales$10,351 $10,218 $19,819 $20,351 
(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.
Sales by Contract TypeThree Months Ended June 30Six Months Ended June 30
2025 20242025 2024
$ in millions$
%(1)
$
%(1)
$
%(1)
$
%(1)
Aeronautics Systems
Cost-type$1,461 47 %$1,415 47 %$2,800 48 %$2,759 46 %
Fixed-price1,615 53 %1,611 53 %3,049 52 %3,279 54 %
Intersegment sales38 34 79 66 
Aeronautics Systems sales3,114 3,060 5,928 6,104 
Defense Systems
Cost-type1,084 56 %967 53 %2,049 55 %1,878 54 %
Fixed-price854 44 %847 47 %1,649 45 %1,631 46 %
Intersegment sales53 45 98 87 
Defense Systems sales1,991 1,859 3,796 3,596 
Mission Systems
Cost-type1,406 50 %1,107 45 %2,569 49 %2,174 45 %
Fixed-price1,410 50 %1,369 55 %2,719 51 %2,684 55 %
Intersegment sales341 297 676 574 
Mission Systems sales3,157 2,773 5,964 5,432 
Space Systems
Cost-type1,562 62 %1,804 62 %3,102 62 %3,679 62 %
Fixed-price959 38 %1,098 38 %1,882 38 %2,267 38 %
Intersegment sales125 100 230 205 
Space Systems sales2,646 3,002 5,214 6,151 
Total
Cost-type5,513 53 %5,293 52 %10,520 53 %10,490 52 %
Fixed-price4,838 47 %4,925 48 %9,299 47 %9,861 48 %
Total Sales$10,351 $10,218 $19,819 $20,351 
(1)Percentages calculated based on external customer sales.
Sales by Geographic RegionThree Months Ended June 30Six Months Ended June 30
2025202420252024
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems        
United States(1)
$2,532 82 %$2,611 86 %$4,827 82 %$5,199 86 %
Asia/Pacific226 8 %164 5 %426 8 %334 6 %
Europe301 10 %243 9 %570 10 %490 8 %
Other geographic regions(2)
17 — %8 — %26 — %15 — %
Intersegment sales38 34 79 66 
Aeronautics Systems sales3,114 3,060 5,928 6,104 
Defense Systems
United States(1)
1,633 84 %1,527 84 %3,104 84 %3,003 86 %
Asia/Pacific79 4 %80 4 %160 4 %130 4 %
Europe168 9 %164 10 %338 9 %296 8 %
Other geographic regions(2)
58 3 %43 2 %96 3 %80 2 %
Intersegment sales53 45 98 87 
Defense Systems sales1,991 1,859 3,796 3,596 
Mission Systems
United States(1)
2,311 82 %2,049 83 %4,308 81 %3,977 82 %
Asia/Pacific132 5 %122 5 %260 5 %248 5 %
Europe263 9 %226 9 %502 10 %481 10 %
Other geographic regions(2)
110 4 %79 3 %218 4 %152 3 %
Intersegment sales341 297 676 574 
Mission Systems sales3,157 2,773 5,964 5,432 
Space Systems
United States(1)
2,474 98 %2,846 98 %4,893 98 %5,825 98 %
Asia/Pacific15 1 %11 — %23 — %24 — %
Europe20 1 %34 2 %46 2 %76 2 %
Other geographic regions(2)
12 — %11 — %22 — %21 — %
Intersegment sales125 100 230 205 
Space Systems sales2,646 3,002 5,214 6,151 
Total
United States(1)
8,950 87 %9,033 88 %17,132 87 %18,004 88 %
Asia/Pacific452 4 %377 4 %869 4 %736 4 %
Europe752 7 %667 7 %1,456 7 %1,343 7 %
Other geographic regions(2)
197 2 %141 1 %362 2 %268 1 %
Total Sales$10,351 $10,218 $19,819 $20,351 
(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.
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 June 30Six Months Ended June 30
$ in millions2025202420252024
Capital Expenditures
Aeronautics Systems$69 $116 $148 $200 
Defense Systems11 14 23 22 
Mission Systems47 38 86 81 
Space Systems71 146 181 273 
Corporate (1)
33 6 49 14 
Total$231 $320 $487 $590 
Depreciation and Amortization
Aeronautics Systems$92 $99 $181 $174 
Defense Systems42 43 85 85 
Mission Systems68 62 135 124 
Space Systems84 81 163 160 
Corporate (1)
64 41 123 82 
Total$350 $326 $687 $625 
(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.