Information on Business Segments (Tables)

12 Months Ended

Dec. 31, 2022

Summary Of Financial Information For Each Business Segment

Sales and operating profit for each of our business segments were as follows (in millions):


	2022		2021		2020
Net sales
Aeronautics	$	26,987	$	26,748	$	26,266
Missiles and Fire Control	11,317		11,693		11,257
Rotary and Mission Systems	16,148		16,789		15,995
Space	11,532		11,814		11,880
Total net sales	$	65,984	$	67,044	$	65,398
Operating profit
Aeronautics	$	2,866	$	2,799	$	2,843
Missiles and Fire Control	1,635		1,648		1,545
Rotary and Mission Systems	1,673		1,798		1,615
Space	1,045		1,134		1,149
Total business segment operating profit	7,219		7,379		7,152
Unallocated items
FAS/CAS pension operating adjustment	1,709		1,960		1,876

Severance and other charges (a)	(100)		(36)		(27)
Other, net (b)	(480)		(180)		(357)
Total unallocated, net	1,129		1,744		1,492
Total consolidated operating profit	$	8,348	$	9,123	$	8,644

(a)Severance and other charges in 2022 include $100 million ($79 million, or $0.31 per share, after-tax) charge related to actions at our RMS business segment, which include severance costs for reduction of positions and asset impairment charges; $36 million ($28 million, or $0.10 per share, after-tax) charge during 2021 associated with plans to close and consolidate certain facilities and reduce total workforce within our RMS business segment; and $27 million ($21 million, or $0.08 per share, after-tax) charge during 2020 related to the planned elimination of certain positions primarily at our corporate functions.

(b)Other, net in 2020 includes a noncash impairment charge of $128 million ($96 million, or $0.34 per share, after-tax) for our investment in the international equity method investee, AMMROC. (See “Note 1 – Organization and Significant Accounting Policies”).

The total FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension (expense) income for our qualified defined benefit pension plans, were as follows (in millions):


	2022		2021		2020
Total FAS (expense) income and CAS cost
FAS pension (expense) income	$	(1,058)	$	(1,398)	$	118
Less: CAS pension cost	1,796		2,066		1,977
Total FAS/CAS pension adjustment	$	738	$	668	$	2,095

Service and non-service cost reconciliation
FAS pension service cost	$	(87)	$	(106)	$	(101)
Less: CAS pension cost	1,796		2,066		1,977
Total FAS/CAS pension operating adjustment	1,709		1,960		1,876
Non-service FAS pension (expense) income	(971)		(1,292)		219
Total FAS/CAS pension adjustment	$	738	$	668	$	2,095

Sales between our business segments are excluded from our consolidated and segment operating results as these activities are eliminated in consolidation. Intersegment sales for each of our business segments were as follows (in millions):


	2022		2021		2020
Intersegment sales
Aeronautics	$	249	$	219	$	243
Missiles and Fire Control	627		618		562
Rotary and Mission Systems	1,930		1,895		1,903
Space	381		360		377
Total intersegment sales	$	3,187	$	3,092	$	3,085

Net sales by products and services, contract type, customer category and geographic region for each of our business segments were as follows (in millions):


	2022
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	22,870	$	10,048	$	12,811	$	9,737	$	55,466
Services	4,117		1,269		3,337		1,795		10,518
Total net sales	$	26,987	$	11,317	$	16,148	$	11,532	$	65,984
Net sales by contract type
Fixed-price	$	19,431	$	8,014	$	10,460	$	3,064	$	40,969
Cost-reimbursable	7,556		3,303		5,688		8,468		25,015
Total net sales	$	26,987	$	11,317	$	16,148	$	11,532	$	65,984
Net sales by customer
U.S. Government	$	18,026	$	7,814	$	11,331	$	11,344	$	48,515
International (a)	8,811		3,496		4,470		154		16,931
U.S. commercial and other	150		7		347		34		538
Total net sales	$	26,987	$	11,317	$	16,148	$	11,532	$	65,984
Net sales by geographic region
United States	$	18,176	$	7,821	$	11,678	$	11,378	$	49,053
Europe	4,303		1,020		857		87		6,267
Asia Pacific	2,970		461		1,994		54		5,479
Middle East	1,103		1,858		823		12		3,796
Other	435		157		796		1		1,389
Total net sales	$	26,987	$	11,317	$	16,148	$	11,532	$	65,984


	2021
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	22,631	$	10,269	$	13,483	$	10,052	$	56,435
Services	4,117		1,424		3,306		1,762		10,609
Total net sales	$	26,748	$	11,693	$	16,789	$	11,814	$	67,044
Net sales by contract type
Fixed-price	$	19,734	$	8,079	$	11,125	$	2,671	$	41,609
Cost-reimbursable	7,014		3,614		5,664		9,143		25,435
Total net sales	$	26,748	$	11,693	$	16,789	$	11,814	$	67,044
Net sales by customer
U.S. Government	$	17,262	$	8,341	$	11,736	$	10,811	$	48,150
International (a)	9,403		3,346		4,719		971		18,439
U.S. commercial and other	83		6		334		32		455
Total net sales	$	26,748	$	11,693	$	16,789	$	11,814	$	67,044
Net sales by geographic region
United States	$	17,345	$	8,347	$	12,070	$	10,843	$	48,605
Europe	3,973		910		909		968		6,760
Asia Pacific	3,644		292		2,178		(6)		6,108
Middle East	1,351		2,066		827		9		4,253
Other	435		78		805		—		1,318
Total net sales	$	26,748	$	11,693	$	16,789	$	11,814	$	67,044


	2020
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	22,327	$	9,804	$	12,748	$	10,049	$	54,928
Services	3,939		1,453		3,247		1,831		10,470
Total net sales	$	26,266	$	11,257	$	15,995	$	11,880	$	65,398
Net sales by contract type
Fixed-price	$	18,477	$	7,587	$	10,795	$	2,247	$	39,106
Cost-reimbursable	7,789		3,670		5,200		9,633		26,292
Total net sales	$	26,266	$	11,257	$	15,995	$	11,880	$	65,398
Net sales by customer
U.S. Government	$	18,175	$	8,404	$	11,596	$	10,293	$	48,468
International (a)	8,012		2,842		3,986		1,546		16,386
U.S. commercial and other	79		11		413		41		544
Total net sales	$	26,266	$	11,257	$	15,995	$	11,880	$	65,398
Net sales by geographic region
United States	$	18,254	$	8,415	$	12,009	$	10,334	$	49,012
Europe	3,283		767		806		1,478		6,334
Asia Pacific	3,162		280		1,666		68		5,176
Middle East	1,344		1,749		847		—		3,940
Other	223		46		667		—		936
Total net sales	$	26,266	$	11,257	$	15,995	$	11,880	$	65,398

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

Capital Expenditures, PP&E Depreciation and Software Amortization, and Amortization of Purchased Intangibles


	2022		2021		2020
Capital expenditures
Aeronautics	$	461	$	477	$	534
Missiles and Fire Control	253		304		391
Rotary and Mission Systems	266		279		311
Space	391		305		403
Total business segment capital expenditures	1,371		1,365		1,639
Corporate activities	299		157		127
Total capital expenditures	$	1,670	$	1,522	$	1,766
PP&E depreciation and software amortization (a)
Aeronautics	$	383	$	348	$	348
Missiles and Fire Control	160		153		136
Rotary and Mission Systems	245		250		244
Space	201		205		182
Total business segment depreciation and amortization	989		956		910
Corporate activities	167		123		109
Total depreciation and amortization	$	1,156	$	1,079	$	1,019
Amortization of purchased intangibles
Aeronautics	$	1	$	1	$	—
Missiles and Fire Control	2		2		2
Rotary and Mission Systems	233		232		232
Space	12		50		37
Total amortization of purchased intangibles	$	248	$	285	$	271

(a)Excludes amortization of purchased intangibles.

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


	2022		2021
Assets
Aeronautics	$	12,055	$	10,756
Missiles and Fire Control	5,788		5,243
Rotary and Mission Systems	17,988		17,664
Space	6,351		6,199
Total business segment assets	42,182		39,862
Corporate assets (a)	10,698		11,011
Total assets	$	52,880	$	50,873

(a)Corporate assets primarily include cash and cash equivalents, deferred income taxes, assets for the portion of environmental costs that are probable of future recovery, property, plant and equipment, investments held in a separate trust for deferred compensation plans and other marketable investments.