Fixed Assets

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

FIXED ASSETS, NETFixed assets, net, are stated at cost less accumulated depreciation. Major improvements are capitalized while expenditures for maintenance, repairs and minor improvements are expensed. For sales or asset retirements, the assets and related accumulated depreciation and amortization are eliminated from the accounts. Gains and losses on sales of our Fixed assets, net, are generally recorded in operating income; however, for our RIS and RMD segments, gains and losses that are allocable to our contracts are

included in overhead, as we are required to allocate gains or losses and generally can recover these costs through the pricing of products and services to the U.S. government.


(dollars in millions)	Estimated Useful Lives	2021		2020
Land		$	765	$	773
Buildings and improvements	10-45 years	7,271		7,067
Machinery, tools and equipment	3-20 years	16,729		15,994
Other, including assets under construction		2,872		2,512
Fixed assets, gross		27,637		26,346
Accumulated depreciation		(12,665)		(11,384)
Fixed assets, net		$	14,972	$	14,962

Leasehold improvements are amortized over the lesser of the remaining lease term or the estimated useful life of the improvement.

Depreciation expense related to Fixed assets, net is recorded predominantly utilizing the straight-line method and was $1,828 million in 2021, $1,767 million in 2020 and $1,191 million in 2019.