INFORMATION ON BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 29, 2019

Segment Reporting [Abstract]

Summary Of Operating Results and Total Assets For Each Business Segment

Summary operating results for each of our business segments were as follows (in millions):

	Quarters Ended						Nine Months Ended
	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018
Net sales
Aeronautics	$	6,178		$	5,642		$	17,312		$	15,361
Missiles and Fire Control	2,601			2,273			7,362			6,035
Rotary and Mission Systems	3,709			3,848			11,239			10,637
Space	2,683			2,555			8,021			7,318
Total net sales	$	15,171		$	14,318		$	43,934		$	39,351
Operating profit
Aeronautics	$	665		$	600		$	1,842		$	1,646
Missiles and Fire Control	349			332			1,093			872
Rotary and Mission Systems	342			361			1,068			1,013
Space	309			293			931			831
Total business segment operating profit	1,665			1,586			4,934			4,362
Unallocated items
FAS/CAS operating adjustment (a)	513			451			1,537			1,353
Stock-based compensation	(54		)	(50		)	(158		)	(148		)
Severance and restructuring charges (b)	—			—			—			(96		)
Other, net	(19		)	(24		)	83			12
Total unallocated items	440			377			1,462			1,121
Total consolidated operating profit	$	2,105		$	1,963		$	6,396		$	5,483
Intersegment sales
Aeronautics	$	58		$	35		$	147		$	87
Missiles and Fire Control	107			122			372			330
Rotary and Mission Systems	530			544			1,648			1,509
Space	91			63			244			156
Total intersegment sales	$	786		$	764		$	2,411		$	2,082

^(a)  The FAS/CAS operating adjustment represents the difference between the service cost component of financial accounting standards (FAS) pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS.  

^(b)  Unallocated items for the nine months ended September 30, 2018 include charges totaling $96 million ($76 million, or $0.26 per share, after tax) related to certain severance and restructuring actions at our RMS business segment. See “Note 11 – Other” (under the caption “Severance and Restructuring Charges”) for more information.

Our total net FAS/CAS pension adjustment for the quarters and nine months ended September 29, 2019 and September 30, 2018, including the service and non-service cost components of FAS pension expense for our qualified defined benefit pension plans, were as follows (in millions):

	Quarters Ended						Nine Months Ended
	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018
Total FAS expense and CAS costs
FAS pension expense	$	(274	)	$	(356	)	$	(820	)	$	(1,069	)
Less: CAS pension cost	642			608			1,924			1,825
Net FAS/CAS pension adjustment	$	368		$	252		$	1,104		$	756
Service and non-service cost reconciliation
FAS pension service cost	$	(129	)	$	(157	)	$	(387	)	$	(472	)
Less: CAS pension cost	642			608			1,924			1,825
FAS/CAS operating adjustment	513			451			1,537			1,353
Non-operating FAS pension cost(a)	(145		)	(199		)	(433		)	(597		)
Net FAS/CAS pension adjustment	$	368		$	252		$	1,104		$	756

^(a) 

The non-service cost components of net periodic benefit cost relate only to our qualified defined benefit pension plans. In addition to the non-service cost components in the table above, we incurred similar costs for our other postretirement benefit plans of $30 million and $87 million for the quarter and nine months ended September 29, 2019 and $16 million and $49 million for the quarter and nine months ended September 30, 2018.

Net sales by products and services, contract type, customer, and geographic region were as follows (in millions):

	Quarter Ended September 29, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	5,340	$	2,172	$	2,982	$	2,234	$	12,728
Services	838		429		727		449		2,443
Total net sales	$	6,178	$	2,601	$	3,709	$	2,683	$	15,171
Net sales by contract type
Fixed-price	$	4,567	$	1,681	$	2,536	$	527	$	9,311
Cost-reimbursable	1,611		920		1,173		2,156		5,860
Total net sales	$	6,178	$	2,601	$	3,709	$	2,683	$	15,171
Net sales by customer
U.S. Government	$	3,509	$	1,995	$	2,763	$	2,332	$	10,599
International (a)	2,631		572		804		343		4,350
U.S. commercial and other	38		34		142		8		222
Total net sales	$	6,178	$	2,601	$	3,709	$	2,683	$	15,171
Net sales by geographic region
United States	$	3,547	$	2,029	$	2,905	$	2,340	$	10,821
Asia Pacific	1,046		107		317		17		1,487
Europe	1,106		138		168		326		1,738
Middle East	455		318		206		—		979
Other	24		9		113		—		146
Total net sales	$	6,178	$	2,601	$	3,709	$	2,683	$	15,171
	Nine Months Ended September 29, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	14,876	$	6,051	$	9,064	$	6,710	$	36,701
Services	2,436		1,311		2,175		1,311		7,233
Total net sales	$	17,312	$	7,362	$	11,239	$	8,021	$	43,934
Net sales by contract type
Fixed-price	$	12,777	$	4,660	$	7,681	$	1,585	$	26,703
Cost-reimbursable	4,535		2,702		3,558		6,436		17,231
Total net sales	$	17,312	$	7,362	$	11,239	$	8,021	$	43,934
Net sales by customer
U.S. Government	$	10,420	$	5,528	$	8,113	$	6,900	$	30,961
International (a)	6,736		1,717		2,773		1,098		12,324
U.S. commercial and other	156		117		353		23		649
Total net sales	$	17,312	$	7,362	$	11,239	$	8,021	$	43,934
Net sales by geographic region
United States	$	10,576	$	5,645	$	8,466	$	6,923	$	31,610
Asia Pacific	2,736		315		1,065		48		4,164
Europe	2,751		363		509		1,035		4,658
Middle East	1,127		1,003		738		15		2,883
Other	122		36		461		—		619
Total net sales	$	17,312	$	7,362	$	11,239	$	8,021	$	43,934

^(a)  International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers.

	Quarter Ended September 30, 2018
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	4,799	$	1,873	$	3,132	$	2,114	$	11,918
Services	843		400		716		441		2,400
Total net sales	$	5,642	$	2,273	$	3,848	$	2,555	$	14,318
Net sales by contract type
Fixed-price	$	4,163	$	1,536	$	2,710	$	534	$	8,943
Cost-reimbursable	1,479		737		1,138		2,021		5,375
Total net sales	$	5,642	$	2,273	$	3,848	$	2,555	$	14,318
Net sales by customer
U.S. Government	$	3,700	$	1,625	$	2,765	$	2,174	$	10,264
International (a)	1,909		600		959		362		3,830
U.S. commercial and other	33		48		124		19		224
Total net sales	$	5,642	$	2,273	$	3,848	$	2,555	$	14,318
Net sales by geographic region
United States	$	3,733	$	1,673	$	2,889	$	2,193	$	10,488
Asia Pacific	854		126		377		8		1,365
Europe	691		112		213		324		1,340
Middle East	326		347		202		30		905
Other	38		15		167		—		220
Total net sales	$	5,642	$	2,273	$	3,848	$	2,555	$	14,318
	Nine Months Ended September 30, 2018
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	13,080	$	4,935	$	8,753	$	6,062	$	32,830
Services	2,281		1,100		1,884		1,256		6,521
Total net sales	$	15,361	$	6,035	$	10,637	$	7,318	$	39,351
Net sales by contract type
Fixed-price	$	11,284	$	4,043	$	7,368	$	1,394	$	24,089
Cost-reimbursable	4,077		1,992		3,269		5,924		15,262
Total net sales	$	15,361	$	6,035	$	10,637	$	7,318	$	39,351
Net sales by customer
U.S. Government	$	9,909	$	4,215	$	7,729	$	6,114	$	27,967
International (a)	5,321		1,696		2,562		1,162		10,741
U.S. commercial and other	131		124		346		42		643
Total net sales	$	15,361	$	6,035	$	10,637	$	7,318	$	39,351
Net sales by geographic region
United States	$	10,040	$	4,339	$	8,075	$	6,156	$	28,610
Asia Pacific	2,394		349		1,002		62		3,807
Europe	1,877		227		592		1,082		3,778
Middle East	903		1,091		516		18		2,528
Other	147		29		452		—		628
Total net sales	$	15,361	$	6,035	$	10,637	$	7,318	$	39,351

^(a)  International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers.

Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, multi-variant, stealth fighter aircraft. Net sales for the F-35 program represented approximately 28% and 27% of our total consolidated net sales for the quarter and nine months ended September 29, 2019 and 27% and 26% of our total consolidated net sales for the quarter and nine months ended September 30, 2018.

Total assets for each of our business segments were as follows (in millions):

	September 29, 2019		December 31, 2018
Assets
Aeronautics	$	10,441	$	8,435
Missiles and Fire Control	5,276		5,017
Rotary and Mission Systems	18,843		18,333
Space	5,821		5,445
Total business segment assets	40,381		37,230
Corporate assets (a)	8,894		7,646
Total assets	$	49,275	$	44,876

^(a) 

Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans.