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INFORMATION ON BUSINESS SEGMENTS
 9 Months Ended
Sep. 28, 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 EndedNine Months Ended
September 28,
2025		September 29,
2024		September 28,
2025		September 29,
2024
Sales
Aeronautics$7,256 $6,487 $21,733 $20,609 
Missiles and Fire Control3,624 3,175 10,430 9,270 
Rotary and Mission Systems4,373 4,367 12,696 13,003 
Space 3,356 3,075 9,868 9,539 
Total sales$18,609 $17,104 $54,727 $52,421 
Operating costs and expenses
Aeronautics$6,571 $5,835 $20,425 $18,531 
Missiles and Fire Control3,114 2,718 8,977 8,057 
Rotary and Mission Systems3,868 3,879 11,896 11,605 
Space3,026 2,804 8,804 8,632 
Total operating costs and expenses$16,579 $15,236 $50,102 $46,825 
Operating profit (a)
Aeronautics$682 $659 $1,304 $2,089 
Missiles and Fire Control510 456 1,454 1,217 
Rotary and Mission Systems 506 483 855 1,408 
Space 331 272 1,072 943 
Total business segment operating profit2,029 1,870 4,685 5,657 
Unallocated items
FAS/CAS pension operating adjustment380 406 1,138 1,218 
Impairment and other charges
— — (66)(87)
Intangible asset amortization expense(70)(61)(197)(183)
Other, net
(59)(75)(160)(288)
Total unallocated items251 270 715 660 
Total consolidated operating profit$2,280 $2,140 $5,400 $6,317 
Intersegment sales
Aeronautics$85 $125 $271 $262 
Missiles and Fire Control218 210 616 616 
Rotary and Mission Systems580 569 1,778 1,729 
Space 77 94 244 300 
Total intersegment sales$960 $998 $2,909 $2,907 
(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 September 28, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$5,807 $3,256 $3,509 $2,739 $15,311 
Services1,449 368 864 617 3,298 
Total sales$7,256 $3,624 $4,373 $3,356 $18,609 
Sales by contract type
Fixed-price$4,758 $2,638 $2,733 $878 $11,007 
Cost-reimbursable2,498 986 1,640 2,478 7,602 
Total sales$7,256 $3,624 $4,373 $3,356 $18,609 
Sales by customer
U.S. Government$4,681 $2,633 $2,764 $3,293 $13,371 
International (a)
2,571 989 1,564 55 5,179 
U.S. commercial and other4 2 45 8 59 
Total sales$7,256 $3,624 $4,373 $3,356 $18,609 
Sales by geographic region
United States$4,685 $2,635 $2,809 $3,301 $13,430 
Europe1,245 401 343 22 2,011 
Asia Pacific926 281 764 32 2,003 
Middle East138 295 199 1 633 
Other262 12 258 — 532 
Total sales$7,256 $3,624 $4,373 $3,356 $18,609 
Nine Months Ended September 28, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$17,513 $9,338 $10,337 $8,208 $45,396 
Services4,220 1,092 2,359 1,660 9,331 
Total sales$21,733 $10,430 $12,696 $9,868 $54,727 
Sales by contract type
Fixed-price$14,383 $7,525 $7,688 $2,732 $32,328 
Cost-reimbursable7,350 2,905 5,008 7,136 22,399 
Total sales$21,733 $10,430 $12,696 $9,868 $54,727 
Sales by customer
U.S. Government$13,969 $7,464 $8,409 $9,649 $39,491 
International (a)
7,742 2,957 4,117 201 15,017 
U.S. commercial and other22 9 170 18 219 
Total sales$21,733 $10,430 $12,696 $9,868 $54,727 
Sales by geographic region
United States$13,991 $7,473 $8,579 $9,667 $39,710 
Europe3,896 1,177 926 66 6,065 
Asia Pacific2,750 728 1,998 128 5,604 
Middle East445 1,012 630 7 2,094 
Other651 40 563 — 1,254 
Total sales$21,733 $10,430 $12,696 $9,868 $54,727 
Quarter Ended September 29, 2024
AeronauticsMFCRMSSpace Total
Sales
Products$5,550 $2,811 $3,554 $2,557 $14,472 
Services937 364 813 518 2,632 
Total sales$6,487 $3,175 $4,367 $3,075 $17,104 
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 sales$6,487 $3,175 $4,367 $3,075 $17,104 
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 sales$6,487 $3,175 $4,367 $3,075 $17,104 
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 sales$6,487 $3,175 $4,367 $3,075 $17,104 
Nine Months Ended September 29, 2024
AeronauticsMFCRMSSpace Total
Sales
Products$17,113 $8,217 $10,500 $7,947 $43,777 
Services3,496 1,053 2,503 1,592 8,644 
Total sales$20,609 $9,270 $13,003 $9,539 $52,421 
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 sales$20,609 $9,270 $13,003 $9,539 $52,421 
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 sales$20,609 $9,270 $13,003 $9,539 $52,421 
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 sales$20,609 $9,270 $13,003 $9,539 $52,421 
(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 26% of our total consolidated sales for both the quarter and nine months ended September 28, 2025 and 22% and 24% of our total consolidated sales for the quarter and nine months ended September 29, 2024.
Assets
Total assets for each of our business segments were as follows (in millions):
September 28,
2025		December 31,
2024
Assets
Aeronautics$14,726 $13,223 
Missiles and Fire Control6,899 5,952 
Rotary and Mission Systems16,972 17,025 
Space 7,865 7,388 
Total business segment assets46,462 43,588 
Corporate assets (a)
13,814 12,029 
Total assets$60,276 $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.