Segment Financial Data

12 Months Ended

Dec. 31, 2019

SEGMENT FINANCIAL DATA

Our operations for the periods presented herein are classified into two principal segments. The segments are generally determined based on the management structure of the businesses and the grouping of similar operating companies, where each management organization has general operating autonomy over diversified products and services.

Pratt & Whitney products include commercial, military, business jet and general aviation aircraft engines, parts and services sold to a diversified customer base, including international and domestic commercial airlines and aircraft leasing companies, aircraft manufacturers, and U.S. and foreign governments. Pratt & Whitney also provides product support and a full range of overhaul, repair and fleet management services.

Collins Aerospace Systems provides technologically advanced aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military and space operations. Products include electric power generation, power management and distribution systems, air data and aircraft sensing systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire and ice detection and protection systems, propeller systems, engine nacelle systems, including thrust reversers and mounting pylons, interior and exterior aircraft lighting, aircraft seating and cargo systems, actuation systems, landing systems, including landing gear, wheels and brakes, and space products and subsystems, integrated avionics systems, precision targeting, electronic warfare and range and training systems, flight controls, communications systems, navigation systems, oxygen systems, simulation and training systems, food and beverage preparation, storage and galley systems, lavatory and wastewater management systems. Aftermarket services include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and information management services.

We have reported our financial and operational results for the periods presented herein under the two principal segments noted above, consistent with how we have reviewed our business operations for decision-making purposes, resource allocation and performance assessment during 2019.

Segment Information. Total sales by segment include intersegment sales, which are generally made at prices approximating those that the selling entity is able to obtain on external sales. Segment information for the years ended December 31 is as follows:


	Net Sales										Operating Profits
(dollars in millions)	2019		2018		2017		2019		2018		2017
Pratt & Whitney	20,892		19,397		16,160		1,668		1,269		1,300
Collins Aerospace Systems	26,028		16,634		14,691		4,100		2,303		2,191
Total segment	46,920		36,031		30,851		5,768		3,572		3,491
Eliminations and other	(1,571)		(1,330)		(1,138)		(339)		(220)		(63)
General corporate expenses	—		—		—		(515)		(475)		(439)
Consolidated	$	45,349	$	34,701	$	29,713	$	4,914	$	2,877	$	2,989


	Total Assets										Capital Expenditures								Depreciation & Amortization
(dollars in millions)	2019		2018		2017		2019		2018		2017		2019		2018		2017
Pratt & Whitney	31,271		29,341		26,768		822		866		923		980		852		672
Collins Aerospace Systems	74,049		73,115		34,567		959		515		527		1,749		883		823
Total segment	105,320		102,456		61,335		1,781		1,381		1,450		2,729		1,735		1,495
Eliminations and other	2,472		1,015		4,659		87		86		106		(21)		161		85
Assets related to discontinued operations	$	31,823	$	30,740	$	30,926
Consolidated	$	139,615	$	134,211	$	96,920	$	1,868	$	1,467	$	1,556	$	2,708	$	1,896	$	1,580

Geographic External Sales and Operating Profit. Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. U.S. external sales include export sales to commercial customers outside the U.S. and sales to the U.S. Government, commercial and affiliated customers, which are known to be for resale to customers outside the U.S. Long-lived assets are net fixed assets attributed to the specific geographic regions.


	External Net Sales										Operating Profits								Long-Lived Assets
(dollars in millions)	2019		2018		2017		2019		2018		2017		2019		2018		2017
United States Operations	$	35,125	$	26,646	$	21,975	$	3,287	$	1,790	$	1,603	$	6,507	$	6,165	$	4,424
International Operations
Europe	4,419		3,092		2,747		1,480		1,027		826		1,268		1,272		1,147
Asia Pacific	1,989		1,645		1,779		444		365		351		917		905		685
Other	5,387		4,648		4,350		557		390		711		1,089		1,064		1,082
Eliminations and other	(1,571)		(1,330)		(1,138)		(854)		(695)		(502)		541		500		469
Consolidated	$	45,349	$	34,701	$	29,713	$	4,914	$	2,877	$	2,989	$	10,322	$	9,906	$	7,807

Sales from U.S. operations include export sales as follows:


(dollars in millions)	2019		2018		2017
Europe	$	7,078	$	6,217	$	5,197
Asia Pacific	6,411		5,355		3,526
Other	3,295		1,966		1,675
Total	$	16,784	$	13,538	$	10,398

Sales by primary geographical market for the year ended December 31, 2019 is as follows:


(dollars in millions)	Pratt & Whitney		Collins Aerospace Systems		Total
Primary Geographical Markets
United States	$	16,148	$	18,977	$	35,125
Europe	498		3,921		4,419
Asia Pacific	1,164		825		1,989
Other*	3,082		2,305		5,387
Total segment	$	20,892	$	26,028	$	46,920
Eliminations and other					(1,571)
Consolidated					$	45,349

Sales by primary geographical market for the year ended December 31, 2018 is as follows:


(dollars in millions)	Pratt & Whitney		Collins Aerospace Systems		Total
Primary Geographical Markets
United States	$	14,852	$	11,794	$	26,646
Europe	594		2,498		3,092
Asia Pacific	1,277		368		1,645
Other ⁽¹⁾	2,674		1,974		4,648
Total segment	$	19,397	$	16,634	$	36,031
Eliminations and other					(1,330)
Consolidated					$	34,701

(1) Other includes sales to other regions as well as intersegment sales.

Segment sales disaggregated by product type and product versus service for the year ended December 31, 2019 are as follows:


(dollars in millions)	Pratt & Whitney		Collins Aerospace Systems		Total
Product Type
Commercial and industrial, non aerospace	$	102	$	51	$	153
Commercial aerospace	14,516		19,005		33,521
Military aerospace	6,274		6,972		13,246
Total segment	$	20,892	$	26,028	$	46,920
Eliminations and other					(1,571)
Consolidated					$	45,349

Sales Type
Product	$	12,977	$	21,440	$	34,417
Service	7,915		4,588		12,503
Total segment	$	20,892	$	26,028	$	46,920
Eliminations and other					(1,571)
Consolidated					$	45,349

Segment sales disaggregated by product type and product versus service for the year ended December 31, 2018 are as follows:


(dollars in millions)	Pratt & Whitney		Collins Aerospace Systems		Total
Product Type
Commercial and industrial, non aerospace	$	55	$	60	$	115
Commercial aerospace	14,027		12,564		26,591
Military aerospace	5,315		4,010		9,325
Total segment	$	19,397	$	16,634	$	36,031
Eliminations and other					(1,330)
Consolidated					$	34,701

Sales Type
Product	$	11,410	$	13,915	$	25,325
Service	7,987		2,719		10,706
Total segment	$	19,397	$	16,634	$	36,031
Eliminations and other					(1,330)
Consolidated					$	34,701

Major Customers. Net Sales include sales under prime contracts and subcontracts to the U.S. Government as follows:


(dollars in millions)	2019		2018		2017
Pratt & Whitney	$	5,614	$	4,489	$	3,347
Collins Aerospace Systems	4,802		2,779		2,299
Other	12		10		12
Total	$	10,428	$	7,278	$	5,658

Sales to Airbus prior to discounts and incentives were approximately $9,879 million, $10,025 million and $8,908 million for the years ended December 31, 2019, 2018 and 2017, respectively.