Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

22. Segment Information

The Company has four segments, which are described in Note 1. The Company evaluates the performance of its operating segments and reportable segments based on their sales and operating income. All corporate expenses are allocated to the Company’s operating segments using an allocation methodology prescribed by U.S. Government regulations for government contractors. Accordingly, all costs and expenses, except for the goodwill impairment charge in 2011 (which was not included in the Company’s segment performance measures), are included in the Company’s measure of segment profitability.

The tables below present net sales, operating income, depreciation and amortization, capital expenditures and total assets by reportable segment.

	Year Ended December 31,
	2011			2010(1)			2009( 1)
	(in millions)
Net Sales
Products
C3 ISR	$	2,093		$	1,978		$	2,082
Government Services		164			203			174
AM&M		751			811			688
Electronic Systems		4,649			4,761			4,867
Elimination of intercompany sales		(94	)		(157	)		(295	)
Total products sales		7,563			7,596			7,516
Services
C3 ISR		1,488			1,390			1,009
Government Services		3,461			3,732			3,947
AM&M		1,898			2,220			2,260
Electronic Systems		1,037			1,020			1,111
Elimination of intercompany sales		(278	)		(278	)		(228	)
Total services sales		7,606			8,084			8,099
Consolidated total	$	15,169		$	15,680		$	15,615
Operating Income
C3 ISR	$	409		$	391		$	339
Government Services		280			342			383
AM&M		232			229			243
Electronic Systems		720			788			691
Segment Total	$	1,641		$	1,750		$	1,656
Impairment charge (2)		43			—			—
Consolidated total	$	1,598		$	1,750		$	1,656
Depreciation and amortization
C3 ISR	$	47		$	45		$	43
Government Services		35			36			38
AM&M		19			19			19
Electronic Systems		146			131			118
Consolidated total	$	247		$	231		$	218
Capital Expenditures
C3 ISR	$	72		$	64		$	60
Government Services		10			7			11
AM&M		13			6			15
Electronic Systems		96			104			96
Corporate		1			—			4
Consolidated total	$	192		$	181		$	186
Total Assets
C3 ISR	$	2,145		$	2,049		$	1,855
Government Services		3,072			3,212			3,151
AM&M		1,922			1,962			1,915
Electronic Systems		7,431			7,677			6,752
Corporate		927			551			1,202
Consolidated total	$	15,497		$	15,451		$	14,875

⁽¹⁾  As a result of re-alignments of business units in the Company’s management and organizational structure as discussed in Note 2, sales of $115 million and $143 million were reclassified from the Government Services segment to the Electronic Systems segment and sales of $79 million and $79 million were reclassified from the C ³ISR segment to the Government Services segment for the years ended December 31, 2010 and 2009, respectively. In addition, operating income of $7 million and $16 million was reclassified from the Government Services segment to the Electronic Systems segment and operating income of $4 million and $5 million was reclassified from the C³ISR segment to the Government Services segment for the years ended December 31, 2010 and 2009, respectively. At December 31, 2010 and 2009, $129 million and $162 million of assets were reclassified from the Government Services segment to the Electronic Systems segment and $19 million and $19 million of assets were reclassified from the C³ISR segment to the Government Services segment, respectively.

⁽²⁾  Represents a non-cash goodwill impairment charge recorded in the fourth quarter of 2011 due to a decline in the estimated fair value of our Marine Services business.

Corporate assets not allocated to the reportable segments primarily include cash and cash equivalents, corporate office fixed assets, deferred income tax assets and deferred debt issue costs. In addition, substantially all of the Company’s assets are located in North America.

The Company’s sales attributable to U.S. customers and foreign customers, based on location of the customer, are summarized in the table below.

	Year Ended December 31,
	2011		2010		2009
	(in millions)
U.S.	$	13,064	$	13,747	$	13,666
Foreign:
Canada		328		305		283
United Kingdom		310		231		173
Germany		246		215		276
Australia		118		164		176
Italy		98		68		76
South Korea		93		100		132
China		73		65		63
Other		839		785		770
Total foreign		2,105		1,933		1,949
Consolidated	$	15,169	$	15,680	$	15,615

Net sales to principal customers are summarized in the table below.

	Year Ended December 31,
	2011		2010		2009
	(in millions)
U.S. Government agencies (1)	$	12,434	$	13,077	$	13,059
Commercial		1,535		1,461		1,474
Allied foreign governments (1)		1,200		1,142		1,082
Consolidated	$	15,169	$	15,680	$	15,615

⁽¹⁾  Includes sales for which the Company is the prime contractor as well as sales based on the ultimate end customer for which the Company is a subcontractor.