Segment Information (Unaudited)

9 Months Ended

Sep. 30, 2011

SEGMENT INFORMATION [Abstract]

6. SEGMENT INFORMATION

6.    SEGMENT INFORMATION

The company is aligned into four reportable segments: Aerospace Systems, Electronic Systems, Information Systems, and Technical Services.

The following table presents segment sales and service revenues for the three and nine months ended September 30, 2011, and 2010:

		$00,000			$00,000		$00,000		$00,000			$00,000
	Three Months Ended September 30							Nine Months Ended September 30
$ in millions	2011			2010				2011			2010
Sales and service revenues
Aerospace Systems		$2,572			$2,706				$  7,900			$  8,244
Electronic Systems		1,905			1,874				5,504			5,740
Information Systems		1,955			2,123				6,011			6,310
Technical Services		680			871				2,024			2,435
Intersegment eliminations		(500	)		(503	)			(1,533	)		(1,489	)
Total sales and service revenues		$6,612			$7,071				$19,906			$21,240

The following table presents segment operating income reconciled to total operating income for the three and nine months ended September 30, 2011 and 2010:

		$00,000			$00,000		$00,000		$00,000			$00,000
	Three Months Ended September 30							Nine Months Ended September 30
$ in millions	2011			2010				2011			2010
Operating income
Aerospace Systems		$304			$303				$   936			$    934
Electronic Systems		293			261				814			751
Information Systems		187			190				570			578
Technical Services		55			56				160			157
Intersegment eliminations		(62	)		(50	)			(198	)		(163	)
Total segment operating income		777			760				2,282			2,257
Non-segment factors affecting operating income
Unallocated corporate expenses		(48	)		(34	)			(96	)		(99	)
Net pension adjustment		100			(1	)			302			2
Royalty income adjustment		(4	)		(2	)			(11	)		(8	)
Total operating income		$825			$723				$2,477			$2,152

Unallocated Corporate Expenses – Unallocated corporate expenses generally include the portion of corporate expenses not considered allowable or allocable under applicable United States (U.S.) Government Cost Accounting Standards (CAS) regulations and the Federal Acquisition Regulation, and therefore not allocated to the segments. Such costs consist of management and administration, legal, environmental, certain compensation costs, retiree benefits, and other expenses.

Net Pension Adjustment – The net pension adjustment reflects the difference between pension expense determined in accordance with GAAP and pension expense allocated to the operating segments determined in accordance with CAS. The increase in net pension adjustment for the three and nine months ended September 30, 2011, as compared to the same periods in 2010, is primarily due to decreased GAAP pension expense resulting from higher estimated investment income on greater plan investment assets as of the beginning of the year.

Royalty Income Adjustment – Royalty income is included in segment operating income and reclassified to other income for financial reporting purposes.