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Segment Information (Unaudited)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The following table presents sales, operating costs and expenses, and operating income by segment:
Three Months Ended March 31
$ in millions20262025
Aeronautics Systems
Sales
$3,283 $2,814 
Operating costs and expenses:
Product
2,294 2,358 
Service
653 601 
Intersegment
31 38 
Aeronautics Systems operating income (loss)
305 (183)
Defense Systems
Sales
1,8991,805
Operating costs and expenses:
Product
1,3751,262
Service
294324
Intersegment
4640
Defense Systems operating income
184179
Mission Systems
Sales
2,8612,807
Operating costs and expenses:
Product
1,6821,730
Service
419434
Intersegment
327282
Mission Systems operating income
433361
Space Systems
Sales
2,4802,568
Operating costs and expenses:
Product
1,8111,829
Service
281362
Intersegment
15394
Space Systems operating income
235283
Intersegment profit eliminations
(85)(72)
Total segment operating income1,072568
FAS/CAS operating adjustment763
Unallocated corporate expense(90)(58)
Total operating income$989 $573 
Other (expense) income
Interest expense(162)(156)
Non-operating FAS pension benefit166130
Other, net3731
Earnings before income taxes$1,030 $578 
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.
Disaggregation of Revenue
Sales by Customer TypeThree Months Ended March 31
20262025
$ in millions$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,694 83 %$2,290 83 %
International(2)
540 17 %478 17 %
Other customers15 — %5 — %
Intersegment sales34 41 
Aeronautics Systems sales3,283 2,814 
Defense Systems
U.S. government(1)
1,591 86 %1,451 83 %
International(2)
235 13 %289 16 %
Other customers21 1 %20 1 %
Intersegment sales52 45 
Defense Systems sales1,899 1,805 
Mission Systems
U.S. government(1)
1,979 80 %1,973 80 %
International(2)
464 19 %475 19 %
Other customers33 1 %24 1 %
Intersegment sales385 335 
Mission Systems sales2,861 2,807 
Space Systems
U.S. government(1)
2,200 95 %2,309 94 %
International(2)
42 2 %44 2 %
Other customers67 3 %110 4 %
Intersegment sales171 105 
Space Systems sales2,480 2,568 
Total
U.S. government(1)
8,464 86 %8,023 84 %
International(2)
1,281 13 %1,286 14 %
Other customers136 1 %159 2 %
Total Sales$9,881 $9,468 
(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 to the extent that information is available to us or can be reasonably estimated. 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 March 31
2026 2025
$ in millions$
%(1)
$
%(1)
Aeronautics Systems
Cost-type$1,359 42 %$1,339 48 %
Fixed-price1,890 58 %1,434 52 %
Intersegment sales34 41 
Aeronautics Systems sales3,283 2,814 
Defense Systems
Cost-type1,066 58 %965 55 %
Fixed-price781 42 %795 45 %
Intersegment sales52 45 
Defense Systems sales1,899 1,805 
Mission Systems
Cost-type1,181 48 %1,163 47 %
Fixed-price1,295 52 %1,309 53 %
Intersegment sales385 335 
Mission Systems sales2,861 2,807 
Space Systems
Cost-type1,330 58 %1,540 63 %
Fixed-price979 42 %923 37 %
Intersegment sales171 105 
Space Systems sales2,480 2,568 
Total
Cost-type4,936 50 %5,007 53 %
Fixed-price4,945 50 %4,461 47 %
Total Sales$9,881 $9,468 
(1)Percentages calculated based on external customer sales.
Sales by Geographic Region(1)
Three Months Ended March 31
20262025
$ in millions$
%(3)
$
%(3)
Aeronautics Systems    
United States$2,709 83 %$2,295 83 %
Asia/Pacific229 7 %200 7 %
Europe289 9 %269 10 %
Other geographic regions
22 1 %9 — %
Intersegment sales34 41 
Aeronautics Systems sales3,283 2,814 
Defense Systems
United States1,612 87 %1,471 84 %
Asia/Pacific81 4 %81 5 %
Europe125 7 %170 9 %
Other geographic regions
29 2 %38 2 %
Intersegment sales52 45 
Defense Systems sales1,899 1,805 
Mission Systems
United States2,012 81 %1,997 81 %
Asia/Pacific114 5 %128 5 %
Europe252 10 %239 10 %
Other geographic regions
98 4 %108 4 %
Intersegment sales385 335 
Mission Systems sales2,861 2,807 
Space Systems
United States2,267 98 %2,419 98 %
Asia/Pacific18 1 %8 — %
Europe20 1 %26 2 %
Other geographic regions
4 — %10 — %
Intersegment sales171 105 
Space Systems sales2,480 2,568 
Total
United States8,600 87 %8,182 86 %
Asia/Pacific442 4 %417 4 %
Europe686 7 %704 8 %
Other geographic regions(2)
153 2 %165 2 %
Total Sales$9,881 $9,468 
(1)Sales are attributed to countries based on the ultimate customer’s location to the extent that information is available to us or can be reasonably estimated. No country other than the United States represents greater than 10 percent 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 March 31
$ in millions20262025
Capital Expenditures
Aeronautics Systems$34 $79 
Defense Systems16 12 
Mission Systems45 39 
Space Systems43 110 
Corporate(1)
29 16 
Total capital expenditures$167 $256 
Depreciation and Amortization
Aeronautics Systems$91 $89 
Defense Systems44 43 
Mission Systems69 67 
Space Systems96 79 
Corporate(1)
72 59 
Total depreciation and amortization$372 $337 
(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.