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BUSINESS SEGMENTS
 12 Months Ended
Dec. 29, 2023
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
NOTE 14: BUSINESS SEGMENTS
Business Segment Financial Information
The following table presents revenue and operating income by segment:
Fiscal Year Ended
(In millions)December 29, 2023December 30, 2022December 31, 2021
Revenue
SAS$6,856 $6,384 $6,315 
IMS6,630 6,626 6,733 
CS5,070 4,217 4,287 
AR1,052  ** **
Other non-reportable businesses— — 683 
Corporate eliminations(189)(165)(204)
Total revenue$19,419 $17,062 $17,814 
Operating Income
SAS
$756 $665 $782 
IMS
459 494 845 
CS1,229 667 1,043 
AR122  ** **
Other non-reportable businesses— — 104 
Total segment 2,566 1,826 2,774 
Total unallocated corporate expense(1,140)(699)(665)
Total operating income$1,426 $1,127 $2,109 
_______________
**AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of the operations assumed in the AJRD acquisition. As such, there is no comparable prior year information.
Unallocated Corporate Expense
Total unallocated corporate expense includes corporate items such as a portion of management and administration, legal, environmental, compensation, retiree benefits, other corporate expenses and eliminations and the FAS/CAS operating adjustment. Total unallocated corporate expense also includes the portion of corporate costs not included in management’s evaluation of segment operating performance, such as amortization of acquisition-related intangibles; additional cost of revenue related to the fair value step-up in inventory sold; merger, acquisition, and divestiture-related expenses; asset group and business divestiture-related (losses) gains, net; impairment of goodwill and other assets; gain on sale of property, plant and equipment; LHX NeXt implementation costs; and other items.
LHX NeXt implementation costs. LHX NeXt is our initiative to transform multiple functions, systems and processes to increase agility and competitiveness. The LHX NeXt effort is expected to continue for the next three years with one-time costs for workforce optimization, incremental IT expenses for implementation of new systems, third party consulting and other costs.
In connection with our LHX NeXt program restructuring activities, we recorded charges of $25 million during fiscal 2023, included as a component of the “General and administrative expenses” line item in our Consolidated Statement of Operations. At December 29, 2023 we had remaining liabilities of $4 million which we expect will be paid in the next twelve months. Our liabilities for restructuring are included in the “Compensation and benefits” line item in our Consolidated Balance Sheet.
FAS/CAS Pension Operating Adjustment
The table below is a reconciliation of the FAS/CAS operating adjustment:
Fiscal Year Ended
(In millions)December 29, 2023December 30, 2022December 31, 2021
FAS pension service cost$(35)$(46)$(68)
Less: CAS pension cost(145)(141)(191)
FAS/CAS operating adjustment110 95 123 
Non-service FAS pension income(1)
310 441 445 
FAS/CAS pension adjustment, net(2)
$420 $536 $568 
_______________
(1)Non-service FAS pension income is included as component of the “Non-service FAS pension income and other, net” line item in our Consolidated Statement of Operations.
(2)FAS/CAS pension adjustment, net excludes net settlement and curtailment losses recognized in fiscal 2021. See Note 9: Retirement Benefits in these Notes for additional information on net settlements and curtailments.

See “Business Segments” in Note 1: Significant Accounting Policies in these Notes for additional information regarding our FAS/CAS operating adjustment accounting policy.
Disaggregation of Revenue
We disaggregate revenue for all four business segments by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Fiscal Year Ended
December 29, 2023
(In millions)SASIMSCSAR
Revenue By Customer Relationship
Prime contractor$4,252 $4,196 $3,420 $250 
Subcontractor2,555 2,347 1,597 802 
Intersegment49 87 53 — 
Total segment$6,856 $6,630 $5,070 $1,052 
Revenue By Contract Type
Fixed-price(1)
$4,257 $5,020 $4,289 $632 
Cost-reimbursable2,550 1,523 728 420 
Intersegment49 87 53 — 
Total segment$6,856 $6,630 $5,070 $1,052 
Revenue By Geographical Region
United States$5,933 $4,816 $3,482 $1,015 
International874 1,727 1,535 37 
Intersegment49 87 53 — 
Total segment$6,856 $6,630 $5,070 $1,052 
_______________
(1)Includes revenue derived from time-and-materials contracts.
Fiscal Year Ended
December 30, 2022
(In millions)SASIMSCSAR
Revenue By Customer Relationship
Prime contractor$4,005 $4,301 $2,829 **
Subcontractor2,330 2,254 1,343 **
Intersegment49 71 45 **
Total segment$6,384 $6,626 $4,217 $— 
Revenue By Contract Type
Fixed-price(1)
$3,811 $5,060 $3,552 **
Cost-reimbursable2,524 1,495 620 **
Intersegment49 71 45 **
Total segment$6,384 $6,626 $4,217 $— 
Revenue By Geographical Region
United States$5,623 $4,796 $2,735 **
International712 1,759 1,437 **
Intersegment49 71 45 **
Total segment$6,384 $6,626 $4,217 $— 
_______________
**AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of the operations assumed in the AJRD acquisition. As such, there is no comparable prior year information.
(1)Includes revenue derived from time-and-materials contracts.
Fiscal Year Ended
December 31, 2021
(In millions)SASIMSCSAR
Revenue By Customer Relationship
Prime contractor$3,942 $4,474 $2,886 **
Subcontractor2,331 2,187 1,347 **
Intersegment42 72 54 **
Total segment$6,315 $6,733 $4,287 $— 
Revenue By Contract Type
Fixed-price(1)
$3,781 $5,231 $3,631 **
Cost-reimbursable2,492 1,430 602 **
Intersegment42 72 54 **
Total segment$6,315 $6,733 $4,287 $— 
Revenue By Geographical Region
United States$5,569 $4,782 $3,001 **
International704 1,879 1,232 **
Intersegment42 72 54 **
Total segment$6,315 $6,733 $4,287 $— 
_______________
**AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of the operations assumed in the AJRD acquisition. As such, there is no comparable prior year information.
(1)Includes revenue derived from time-and-materials contracts.
Fiscal Year Ended
(In millions)December 29, 2023December 30, 2022December 31, 2021
Geographical Information for Operations
Revenue from U.S. operations$17,537 $15,373 $16,234 
Revenue from international operations1,882 1,689 1,580 
Our products are produced principally in the U.S. with international revenue derived primarily from exports. No revenue earned from any individual foreign country exceeded 5% of our total revenue in fiscal 2023, 2022 and 2021.
Revenue from U.S. Government customers, including foreign military sales funded through the U.S. Government, whether directly or through prime contractors, by all segments as a percentage of total revenue were 76%, 74% and 75% in fiscal 2023, 2022 and 2021, respectively. Revenue from services in fiscal 2023 was 28%, 38%, 19% and 29% of total revenue in our SAS, IMS, CS and AR segments, respectively.
Revenue from products and services where the end consumer is located outside the U.S., including foreign military sales funded through the U.S. Government, whether directly or through prime contractors, was $4.2 billion (21% of our revenue), $3.9 billion (23% of our revenue) and $3.9 billion (22% of our revenue) in fiscal 2023, 2022 and 2021, respectively. Export revenue and revenue from international operations in fiscal 2023 was principally from the EMEA and APAC regions and Canada.
Assets by Business Segment
Total assets by business segment are as follows:
(In millions)December 29, 2023December 30, 2022
Total Assets
SAS$9,085 $8,838 
IMS10,631 10,925 
CS7,084 5,800 
AR4,208  **
Corporate(1)
10,679 7,961 
Total Assets$41,687 $33,524 
_______________
**AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of assets, liabilities and operations assumed in the AJRD acquisition. As such, there is no comparable prior year information.
(1)Identifiable intangible assets acquired in connection with business combinations were recorded as corporate assets because they benefited the entire Company. Identifiable intangible asset balances recorded as corporate assets were $8.5 billion and $6.0 billion at December 29, 2023 and December 30, 2022, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan investments, buildings and equipment, real estate held for development and leasing that we acquired with AJRD, as well as any assets of businesses held for sale.
Other selected financial information by business segment and geographical area is summarized below:
Fiscal Year Ended
(In millions)December 29, 2023December 30, 2022December 31, 2021
Capital Expenditures
SAS$151 $133 $155 
IMS149 45 69 
CS39 36 56 
AR31 ****
Other non-reportable businesses— — 4 
Corporate79 38 58 
Total Capital Expenditures$449 $252 $342 
Depreciation and Amortization
SAS$115 $112 $109 
IMS73 76 92 
CS54 47 49 
AR29 ****
Other non-reportable businesses— — 8 
Corporate895 703 709 
Total Depreciation and Amortization$1,166 $938 $967 
Geographical Information for Operations
Long-lived assets of U.S. operations$2,678 $1,896 $1,870 
Long-lived assets of international operations184 208 231 
_______________
**AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of the operations assumed in the AJRD acquisition. As such, there is no comparable prior year information.
In addition to depreciation and amortization expense related to property, plant and equipment, “Depreciation and Amortization” in the table above also includes $777 million, $596 million and $624 million of amortization related to identifiable intangible assets, debt premium, debt discount, debt issuance costs and other items in fiscal 2023, 2022 and 2021, respectively.