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INFORMATION ON BUSINESS SEGMENTS
 9 Months Ended
Sep. 29, 2024
Segment Reporting [Abstract]  
INFORMATION ON BUSINESS SEGMENTS INFORMATION ON BUSINESS SEGMENTS
Overview
We operate in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. We organize our business segments based on the nature of products and services offered.
Selected Financial Data by Business Segment
Net sales and operating profit of our business segments exclude intersegment sales, cost of sales and profit as these activities are eliminated in consolidation and thus are not included in management’s evaluation of performance of each segment. Business segment operating profit includes our share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of our business segments.
Summary operating results for each of our business segments were as follows (in millions):
 Quarters EndedNine Months Ended
September 29,
2024		September 24,
2023		September 29,
2024		September 24,
2023
Net sales
Aeronautics$6,487 $6,717 $20,609 $19,861 
Missiles and Fire Control3,175 2,939 9,270 8,082 
Rotary and Mission Systems4,367 4,121 13,003 11,528 
Space 3,075 3,101 9,539 9,226 
Total net sales$17,104 $16,878 $52,421 $48,697 
Operating profit
Aeronautics$659 $671 $2,089 $2,064 
Missiles and Fire Control456 398 1,217 1,146 
Rotary and Mission Systems 483 482 1,408 1,286 
Space 272 259 943 851 
Total business segment operating profit1,870 1,810 5,657 5,347 
Unallocated items
FAS/CAS pension operating adjustment406 414 1,218 1,245 
Impairment and severance charges (a)
— — (87)— 
Intangible asset amortization expense(61)(61)(183)(185)
Other, net
(75)(121)(288)(193)
Total unallocated items270 232 660 867 
Total consolidated operating profit$2,140 $2,042 $6,317 $6,214 
Intersegment sales
Aeronautics$125 $62 $262 $186 
Missiles and Fire Control210 177 616 482 
Rotary and Mission Systems569 518 1,729 1,512 
Space 94 97 300 275 
Total intersegment sales$998 $854 $2,907 $2,455 
(a)Impairment and severance charges of $87 million ($69 million, or $0.29 per share, after-tax) include trademark and fixed asset impairments as well as severance costs recorded in the second quarter of 2024. See “Note 10 - Other” below for additional information.
Unallocated Items
Business segment operating profit excludes the FAS/CAS pension operating adjustment discussed below, a portion of corporate costs not considered allowable or allocable to contracts with the U.S. Government under the applicable U.S. Government Cost Accounting Standards (CAS) or Federal Acquisition Regulations (FAR), and other items not considered part of management’s evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, stock-based compensation expense, changes in the fair value of assets and liabilities for deferred compensation plans, retiree benefits, significant severance charges, significant asset impairments, gains or losses from divestitures, intangible asset amortization expense, and other miscellaneous corporate activities. Excluded items are included in the reconciling item “Unallocated items” between operating profit from our business segments and our consolidated operating profit. See “Note 10 - Other” for a discussion related to certain factors that may impact the comparability of net sales and operating profit of our business segments.
FAS/CAS Pension Operating Adjustment
Our business segments’ results of operations include pension expense only as calculated under CAS, which we refer to as CAS pension cost. We recover CAS pension and other postretirement benefit plan cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS pension cost in each of our business segments’ net sales and cost of sales. Our consolidated financial statements must present pension and other postretirement benefit plan income calculated in accordance with Financial Accounting Standards (FAS) requirements under U.S. GAAP. The operating portion of the total FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension income (expense) and total CAS pension cost. The non-service FAS pension income components are included in non-service FAS pension income in our consolidated statements of earnings. As a result, to the extent that CAS pension cost exceeds the service cost component of FAS pension income (expense), we have a favorable FAS/CAS pension operating adjustment.
Disaggregation of Net Sales
Net sales by products and services, contract type, customer, and geographic region were as follows (in millions):
Quarter Ended September 29, 2024
AeronauticsMFCRMSSpace Total
Net sales
Products$5,550 $2,811 $3,554 $2,557 $14,472 
Services937 364 813 518 2,632 
Total net sales$6,487 $3,175 $4,367 $3,075 $17,104 
Net sales by contract type
Fixed-price$4,276 $2,211 $2,691 $865 $10,043 
Cost-reimbursable2,211 964 1,676 2,210 7,061 
Total net sales$6,487 $3,175 $4,367 $3,075 $17,104 
Net sales by customer
U.S. Government$4,465 $2,272 $2,867 $3,081 $12,685 
International (a)
1,973 901 1,403 61 4,338 
U.S. commercial and other49 2 97 (67)81 
Total net sales$6,487 $3,175 $4,367 $3,075 $17,104 
Net sales by geographic region
United States$4,514 $2,274 $2,964 $3,014 $12,766 
Europe1,047 334 309 18 1,708 
Asia Pacific612 216 632 43 1,503 
Middle East206 333 190 — 729 
Other108 18 272 — 398 
Total net sales$6,487 $3,175 $4,367 $3,075 $17,104 
Nine Months Ended September 29, 2024
AeronauticsMFCRMSSpace Total
Net sales
Products$17,113 $8,217 $10,500 $7,947 $43,777 
Services3,496 1,053 2,503 1,592 8,644 
Total net sales$20,609 $9,270 $13,003 $9,539 $52,421 
Net sales by contract type
Fixed-price$13,805 $6,331 $7,980 $2,690 $30,806 
Cost-reimbursable6,804 2,939 5,023 6,849 21,615 
Total net sales$20,609 $9,270 $13,003 $9,539 $52,421 
Net sales by customer
U.S. Government$14,072 $6,680 $8,706 $9,350 $38,808 
International (a)
6,422 2,581 4,035 174 13,212 
U.S. commercial and other115 9 262 15 401 
Total net sales$20,609 $9,270 $13,003 $9,539 $52,421 
Net sales by geographic region
United States$14,187 $6,689 $8,968 $9,365 $39,209 
Europe3,528 788 860 55 5,231 
Asia Pacific1,933 583 1,922 114 4,552 
Middle East603 1,153 552 5 2,313 
Other358 57 701 — 1,116 
Total net sales$20,609 $9,270 $13,003 $9,539 $52,421 
Quarter Ended September 24, 2023
AeronauticsMFCRMSSpace Total
Net sales
Products$5,538 $2,609 $3,249 $2,618 $14,014 
Services1,179 330 872 483 2,864 
Total net sales$6,717 $2,939 $4,121 $3,101 $16,878 
Net sales by contract type
Fixed-price$4,495 $2,017 $2,602 $796 $9,910 
Cost-reimbursable2,222 922 1,519 2,305 6,968 
Total net sales$6,717 $2,939 $4,121 $3,101 $16,878 
Net sales by customer
U.S. Government$4,547 $2,061 $2,796 $3,055 $12,459 
International (a)
2,170 875 1,254 24 4,323 
U.S. commercial and other— 3 71 22 96 
Total net sales$6,717 $2,939 $4,121 $3,101 $16,878 
Net sales by geographic region
United States$4,547 $2,064 $2,867 $3,077 $12,555 
Europe1,190 197 269 1 1,657 
Asia Pacific693 155 601 22 1,471 
Middle East220 474 185 1 880 
Other67 49 199 — 315 
Total net sales$6,717 $2,939 $4,121 $3,101 $16,878 
Nine Months Ended September 24, 2023
AeronauticsMFCRMSSpace Total
Net sales
Products$16,339 $7,110 $9,082 $7,767 $40,298 
Services3,522 972 2,446 1,459 8,399 
Total net sales$19,861 $8,082 $11,528 $9,226 $48,697 
Net sales by contract type
Fixed-price$13,463 $5,498 $7,261 $2,359 $28,581 
Cost-reimbursable6,398 2,584 4,267 6,867 20,116 
Total net sales$19,861 $8,082 $11,528 $9,226 $48,697 
Net sales by customer
U.S. Government$13,285 $5,553 $7,973 $9,084 $35,895 
International (a)
6,453 2,521 3,349 110 12,433 
U.S. commercial and other123 8 206 32 369 
Total net sales$19,861 $8,082 $11,528 $9,226 $48,697 
Net sales by geographic region
United States$13,408 $5,561 $8,179 $9,116 $36,264 
Europe3,466 582 706 48 4,802 
Asia Pacific2,058 472 1,593 60 4,183 
Middle East671 1,340 526 2 2,539 
Other258 127 524 — 909 
Total net sales$19,861 $8,082 $11,528 $9,226 $48,697 
(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, an international multi-role, multi-variant, stealth fighter aircraft. Net sales for the F-35 program represented approximately 22% and 24% of our total consolidated net sales for the quarter and nine months ended September 29, 2024 and 26% of our total consolidated net sales for both the quarter and nine months ended September 24, 2023.
Assets
Total assets for each of our business segments were as follows (in millions):
September 29,
2024		December 31,
2023
Assets
Aeronautics$13,987 $13,167 
Missiles and Fire Control5,853 5,703 
Rotary and Mission Systems17,313 17,521 
Space 6,652 6,560 
Total business segment assets43,805 42,951 
Corporate assets (a)
11,715 9,505 
Total assets$55,520 $52,456 
(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 used in our corporate operations, assets held in a trust for deferred compensation plans, and investments in early-stage companies.