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INFORMATION ON BUSINESS SEGMENTS
 6 Months Ended
Jun. 29, 2025
Segment Reporting [Abstract]  
INFORMATION ON BUSINESS SEGMENTS INFORMATION ON BUSINESS SEGMENTS
Our operations are organized into four business segments, which also comprise our reportable segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. We generally organize our business segments based on the nature of products and services offered.
Our chief operating decision maker (CODM) consists of the Chairman, President and Chief Executive Officer and the Chief Operating Officer. The CODM is responsible for allocating resources and assessing the performance of our consolidated enterprise and business segments. The profitability measure the CODM uses to allocate resources and assess segment performance is segment operating profit (and related margin rate, calculated as segment operating profit divided by sales), which is compared to historical and forecasted amounts on a regular basis.
Summary operating results for each of our business segments were as follows (in millions):
 Quarters EndedSix Months Ended
June 29,
2025		June 30,
2024		June 29,
2025		June 30,
2024
Sales
Aeronautics$7,420 $7,277 $14,477 $14,122 
Missiles and Fire Control3,433 3,102 6,806 6,095 
Rotary and Mission Systems3,995 4,548 8,323 8,636 
Space 3,307 3,195 6,512 6,464 
Total sales$18,155 $18,122 $36,118 $35,317 
Operating costs and expenses
Aeronautics$7,517 $6,526 $13,854 $12,696 
Missiles and Fire Control2,955 2,653 5,863 5,339 
Rotary and Mission Systems4,170 4,061 8,028 7,726 
Space2,957 2,862 5,778 5,828 
Total operating costs and expenses$17,599 $16,102 $33,523 $31,589 
Operating profit (loss) (a)
Aeronautics$(98)$751 $622 $1,430 
Missiles and Fire Control479 450 944 761 
Rotary and Mission Systems (172)495 349 925 
Space 362 346 741 671 
Total business segment operating profit571 2,042 2,656 3,787 
Unallocated items
FAS/CAS pension operating adjustment379 406 758 812 
Impairment and other charges
(66)(87)(66)(87)
Intangible asset amortization expense(63)(61)(127)(122)
Other, net
(73)(152)(101)(213)
Total unallocated items177 106 464 390 
Total consolidated operating profit$748 $2,148 $3,120 $4,177 
Intersegment sales
Aeronautics$97 $67 $186 $137 
Missiles and Fire Control231 204 398 406 
Rotary and Mission Systems632 574 1,198 1,160 
Space 84 99 167 206 
Total intersegment sales$1,044 $944 $1,949 $1,909 
(a)Operating profit by segment includes certain immaterial items, such as other income (primarily equity earnings) that are not presented separately in the table. Accordingly, the difference between sales less operating costs and expenses may not equal operating profit by segment.
Segment results exclude intersegment transactions as these activities are eliminated in consolidation and are not considered in assessing the performance of each segment. As described below, segment operating profit also excludes other transactions that are not part of management’s evaluation of segment operating performance, which are included in “Unallocated items” to reconcile total segment operating profit to consolidated amounts. 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.
Unallocated Items
Business segment operating profit excludes the FAS/CAS pension operating adjustment described 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. Collectively these items are included in “Unallocated items” to reconcile total segment to consolidated operating profit. See “Note 10 - Other” for a discussion related to certain factors that may impact the comparability of sales and operating profit of our business segments.
FAS/CAS Pension Operating Adjustment
Our business segment results of operations include pension expense 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 business segments’ sales and operating costs and expenses. Our consolidated financial statements must present pension and other postretirement benefit plan (expense) income calculated in accordance with Financial Accounting Standards (FAS) requirements under U.S. GAAP. The FAS/CAS pension operating adjustment represents the difference between CAS pension cost included in segment operating income and the service cost component of FAS pension (expense) income included in consolidated operating profit. To the extent that CAS pension cost exceeds the service cost component of FAS pension (expense) income we have a favorable FAS/CAS pension operating adjustment. The non-service FAS pension (expense) income components are included in non-service FAS pension (expense) income on our consolidated statements of earnings.
Disaggregation of Sales
Sales by products and services, contract type, customer, and geographic region were as follows (in millions):
Quarter Ended June 29, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$5,960 $3,065 $3,332 $2,792 $15,149 
Services1,460 368 663 515 3,006 
Total sales$7,420 $3,433 $3,995 $3,307 $18,155 
Sales by contract type
Fixed-price$4,912 $2,447 $2,295 $912 $10,566 
Cost-reimbursable2,508 986 1,700 2,395 7,589 
Total sales$7,420 $3,433 $3,995 $3,307 $18,155 
Sales by customer
U.S. Government$4,646 $2,440 $2,858 $3,227 $13,171 
International (a)
2,766 990 1,085 75 4,916 
U.S. commercial and other8 3 52 5 68 
Total sales$7,420 $3,433 $3,995 $3,307 $18,155 
Sales by geographic region
United States$4,654 $2,443 $2,910 $3,232 $13,239 
Europe1,404 381 279 22 2,086 
Asia Pacific984 223 601 49 1,857 
Middle East159 375 219 4 757 
Other219 11 (14)— 216 
Total sales$7,420 $3,433 $3,995 $3,307 $18,155 
Six Months Ended June 29, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$11,706 $6,082 $6,828 $5,469 $30,085 
Services2,771 724 1,495 1,043 6,033 
Total sales$14,477 $6,806 $8,323 $6,512 $36,118 
Sales by contract type
Fixed-price$9,625 $4,887 $4,955 $1,854 $21,321 
Cost-reimbursable4,852 1,919 3,368 4,658 14,797 
Total sales$14,477 $6,806 $8,323 $6,512 $36,118 
Sales by customer
U.S. Government$9,288 $4,831 $5,645 $6,356 $26,120 
International (a)
5,171 1,968 2,553 146 9,838 
U.S. commercial and other18 7 125 10 160 
Total sales$14,477 $6,806 $8,323 $6,512 $36,118 
Sales by geographic region
United States$9,306 $4,838 $5,770 $6,366 $26,280 
Europe2,651 776 583 44 4,054 
Asia Pacific1,824 447 1,234 96 3,601 
Middle East307 717 431 6 1,461 
Other389 28 305 — 722 
Total sales$14,477 $6,806 $8,323 $6,512 $36,118 
Quarter Ended June 30, 2024
AeronauticsMFCRMSSpace Total
Sales
Products$5,971 $2,742 $3,705 $2,691 $15,109 
Services1,306 360 843 504 3,013 
Total sales$7,277 $3,102 $4,548 $3,195 $18,122 
Sales by contract type
Fixed-price$4,945 $2,124 $2,812 $925 $10,806 
Cost-reimbursable2,332 978 1,736 2,270 7,316 
Total sales$7,277 $3,102 $4,548 $3,195 $18,122 
Sales by customer
U.S. Government$4,941 $2,241 $2,999 $3,107 $13,288 
International (a)
2,297 856 1,470 45 4,668 
U.S. commercial and other39 5 79 43 166 
Total sales$7,277 $3,102 $4,548 $3,195 $18,122 
Sales by geographic region
United States$4,980 $2,246 $3,078 $3,150 $13,454 
Europe1,270 209 282 19 1,780 
Asia Pacific685 180 750 25 1,640 
Middle East194 450 200 1 845 
Other148 17 238 — 403 
Total sales$7,277 $3,102 $4,548 $3,195 $18,122 
Six Months Ended June 30, 2024
AeronauticsMFCRMSSpace Total
Sales
Products$11,563 $5,406 $6,946 $5,390 $29,305 
Services2,559 689 1,690 1,074 6,012 
Total sales$14,122 $6,095 $8,636 $6,464 $35,317 
Sales by contract type
Fixed-price$9,529 $4,120 $5,289 $1,825 $20,763 
Cost-reimbursable4,593 1,975 3,347 4,639 14,554 
Total sales$14,122 $6,095 $8,636 $6,464 $35,317 
Sales by customer
U.S. Government$9,607 $4,408 $5,839 $6,269 $26,123 
International (a)
4,449 1,680 2,632 113 8,874 
U.S. commercial and other66 7 165 82 320 
Total sales$14,122 $6,095 $8,636 $6,464 $35,317 
Sales by geographic region
United States$9,673 $4,415 $6,004 $6,351 $26,443 
Europe2,481 454 551 37 3,523 
Asia Pacific1,321 367 1,290 71 3,049 
Middle East397 820 362 5 1,584 
Other250 39 429 — 718 
Total sales$14,122 $6,095 $8,636 $6,464 $35,317 
(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. Sales for the F-35 program represented approximately 28% and 27% of our total consolidated sales for the quarter and six months ended June 29, 2025 and 26% and 25% of our total consolidated sales for the quarter and six months ended June 30, 2024.
Assets
Total assets for each of our business segments were as follows (in millions):
June 29,
2025		December 31,
2024
Assets
Aeronautics$15,224 $13,223 
Missiles and Fire Control6,524 5,952 
Rotary and Mission Systems17,199 17,025 
Space 8,051 7,388 
Total business segment assets46,998 43,588 
Corporate assets (a)
11,872 12,029 
Total assets$58,870 $55,617 
(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 other marketable investments.