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Segment Information (Unaudited)
 9 Months Ended
Sep. 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 September 30Nine Months Ended September 30
$ in millions2025202420252024
Aeronautics Systems
Sales
$3,142 $2,961 $9,070 $9,065 
Operating costs and expenses:
Product
2,108 1,956 6,575 6,043 
Service
690 666 1,940 2,007 
Intersegment
39 30 112 88 
Aeronautics Systems operating income
305 309 443 927 
Defense Systems
Sales
2,0591,8005,8555,396
Operating costs and expenses:
Product
1,4831,2694,1173,764
Service
2973339401,011
Intersegment
4538132114
Defense Systems operating income
234160666507
Mission Systems
Sales
3,0932,8239,0578,255
Operating costs and expenses:
Product
1,8251,7475,5005,037
Service
4664511,3831,372
Intersegment
287235857717
Mission Systems operating income
5153901,3171,129
Space Systems
Sales
2,6982,8707,9129,021
Operating costs and expenses:
Product
1,9802,0775,7026,706
Service
2973511,0211,056
Intersegment
12397328280
Space Systems operating income
298345861979
Intersegment profit eliminations
(75)(58)(223)(191)
Total segment operating income1,2771,1463,0643,351
FAS/CAS operating adjustment672019332
Unallocated corporate expense
(102)(46)(17)(102)
Total operating income1,242 1,120 3,240 3,281 
Other (expense) income
Interest expense(161)(161)(490)(461)
Non-operating FAS pension benefit136168403503
Other, net10661175142
Earnings before income taxes$1,323 $1,188 $3,328 $3,465 
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 September 30Nine Months Ended September 30
2025202420252024
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,530 82 %$2,451 84 %$7,346 82 %$7,641 85 %
International(2)
564 18 %470 16 %1,586 18 %1,309 15 %
Other customers6 — %7 — %17 — %16 — %
Intersegment sales42 33 121 99 
Aeronautics Systems sales3,142 2,961 9,070 9,065 
Defense Systems
U.S. government(1)
1,570 78 %1,472 84 %4,632 81 %4,435 84 %
International(2)
419 21 %271 15 %1,013 18 %777 15 %
Other customers19 1 %14 1 %61 1 %54 1 %
Intersegment sales51 43 149 130 
Defense Systems sales2,059 1,800 5,855 5,396 
Mission Systems
U.S. government(1)
2,166 79 %2,093 82 %6,421 80 %6,033 81 %
International(2)
557 20 %427 17 %1,537 19 %1,308 18 %
Other customers31 1 %28 1 %84 1 %65 1 %
Intersegment sales339 275 1,015 849 
Mission Systems sales3,093 2,823 9,057 8,255 
Space Systems
U.S. government(1)
2,366 93 %2,606 94 %7,024 93 %8,245 95 %
International(2)
63 2 %50 2 %154 2 %171 2 %
Other customers132 5 %107 4 %367 5 %293 3 %
Intersegment sales137 107 367 312 
Space Systems sales2,698 2,870 7,912 9,021 
Total
U.S. government(1)
8,632 83 %8,622 86 %25,423 84 %26,354 87 %
International(2)
1,603 15 %1,218 12 %4,290 14 %3,565 12 %
Other customers188 2 %156 2 %529 2 %428 1 %
Total Sales$10,423 $9,996 $30,242 $30,347 
(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 September 30Nine Months Ended September 30
2025 20242025 2024
$ in millions$
%(1)
$
%(1)
$
%(1)
$
%(1)
Aeronautics Systems
Cost-type$1,454 47 %$1,321 45 %$4,254 48 %$4,080 46 %
Fixed-price1,646 53 %1,607 55 %4,695 52 %4,886 54 %
Intersegment sales42 33 121 99 
Aeronautics Systems sales3,142 2,961 9,070 9,065 
Defense Systems
Cost-type1,028 51 %965 55 %3,077 54 %2,843 54 %
Fixed-price980 49 %792 45 %2,629 46 %2,423 46 %
Intersegment sales51 43 149 130 
Defense Systems sales2,059 1,800 5,855 5,396 
Mission Systems
Cost-type1,219 44 %1,216 48 %3,788 47 %3,390 46 %
Fixed-price1,535 56 %1,332 52 %4,254 53 %4,016 54 %
Intersegment sales339 275 1,015 849 
Mission Systems sales3,093 2,823 9,057 8,255 
Space Systems
Cost-type1,351 53 %1,750 63 %4,453 59 %5,429 62 %
Fixed-price1,210 47 %1,013 37 %3,092 41 %3,280 38 %
Intersegment sales137 107 367 312 
Space Systems sales2,698 2,870 7,912 9,021 
Total
Cost-type5,052 48 %5,252 53 %15,572 51 %15,742 52 %
Fixed-price5,371 52 %4,744 47 %14,670 49 %14,605 48 %
Total Sales$10,423 $9,996 $30,242 $30,347 
(1)Percentages calculated based on external customer sales.
Sales by Geographic RegionThree Months Ended September 30Nine Months Ended September 30
2025202420252024
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems        
United States(1)
$2,536 82 %$2,458 84 %$7,363 82 %$7,657 85 %
Asia/Pacific221 7 %200 7 %647 7 %534 6 %
Europe321 10 %259 9 %891 10 %749 9 %
Other geographic regions(2)
22 1 %11 — %48 1 %26 — %
Intersegment sales42 33 121 99 
Aeronautics Systems sales3,142 2,961 9,070 9,065 
Defense Systems
United States(1)
1,589 79 %1,486 85 %4,693 82 %4,489 85 %
Asia/Pacific111 6 %74 4 %271 5 %204 4 %
Europe251 12 %144 8 %589 10 %440 8 %
Other geographic regions(2)
57 3 %53 3 %153 3 %133 3 %
Intersegment sales51 43 149 130 
Defense Systems sales2,059 1,800 5,855 5,396 
Mission Systems
United States(1)
2,197 80 %2,121 83 %6,505 81 %6,098 82 %
Asia/Pacific147 5 %98 4 %407 5 %346 5 %
Europe318 12 %246 10 %820 10 %727 10 %
Other geographic regions(2)
92 3 %83 3 %310 4 %235 3 %
Intersegment sales339 275 1,015 849 
Mission Systems sales3,093 2,823 9,057 8,255 
Space Systems
United States(1)
2,498 98 %2,713 98 %7,391 98 %8,538 98 %
Asia/Pacific25 1 %6 — %48 1 %30 1 %
Europe28 1 %36 1 %74 1 %112 1 %
Other geographic regions(2)
10 — %8 1 %32 — %29 — %
Intersegment sales137 107 367 312 
Space Systems sales2,698 2,870 7,912 9,021 
Total
United States(1)
8,820 85 %8,778 88 %25,952 86 %26,782 88 %
Asia/Pacific504 5 %378 4 %1,373 4 %1,114 4 %
Europe918 8 %685 7 %2,374 8 %2,028 7 %
Other geographic regions(2)
181 2 %155 1 %543 2 %423 1 %
Total Sales$10,423 $9,996 $30,242 $30,347 
(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 September 30Nine Months Ended September 30
$ in millions2025202420252024
Capital Expenditures
Aeronautics Systems$102 $139 $250 $339 
Defense Systems21 24 44 46 
Mission Systems66 62 152 143 
Space Systems70 128 251 401 
Corporate (1)
42 8 91 22 
Total capital expenditures$301 $361 $788 $951 
Depreciation and Amortization
Aeronautics Systems$92 $92 $273 $266 
Defense Systems47 44 132 129 
Mission Systems71 64 206 188 
Space Systems98 86 261 246 
Corporate (1)
71 45 194 127 
Total depreciation and amortization$379 $331 $1,066 $956 
(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.