Segment Information (Unaudited)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The following table presents sales and operating income by segment:

	Three Months Ended March 31
$ in millions	2023		2022
Sales
Aeronautics Systems	$	2,515	$	2,703
Defense Systems	1,376		1,283
Mission Systems	2,563		2,497
Space Systems	3,350		2,855
Intersegment eliminations	(503)		(541)
Total sales	9,301		8,797
Operating income
Aeronautics Systems	237		307
Defense Systems	160		155
Mission Systems	360		385
Space Systems	313		261
Intersegment eliminations	(68)		(71)
Total segment operating income	1,002		1,037
FAS/CAS operating adjustment	(21)		(46)
Unallocated corporate expense	(34)		(94)
Total operating income	$	947	$	897

FAS/CAS Operating Adjustment

For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with applicable Federal Acquisition Regulation (FAR) and U.S. Government Cost Accounting Standards (CAS) requirements. The FAS/CAS operating adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income.

Unallocated Corporate Expense

Unallocated corporate expense includes the portion of corporate costs not considered allowable or allocable under the applicable FAR and CAS requirements, and therefore not allocated to the segments, such as changes in deferred state income taxes and a portion of management and administration, legal, environmental, compensation, retiree benefits, advertising and other corporate unallowable costs. Unallocated corporate expense also includes costs not considered part of management’s evaluation of segment operating performance, such as amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations, as well as certain compensation and other costs.

Disaggregation of Revenue

Sales by Customer Type	Three Months Ended March 31
	2023				2022
$ in millions	$		%(3)		$		%(3)
Aeronautics Systems
U.S. government(1)	$	2,108	84	%	$	2,292	85	%
International(2)	331		13	%	343		13	%
Other customers	11		—	%	3		—	%
Intersegment sales	65		3	%	65		2	%
Aeronautics Systems sales	2,515		100	%	2,703		100	%
Defense Systems
U.S. government(1)	803		59	%	775		60	%
International(2)	388		28	%	293		23	%
Other customers	16		1	%	16		1	%
Intersegment sales	169		12	%	199		16	%
Defense Systems sales	1,376		100	%	1,283		100	%
Mission Systems
U.S. government(1)	1,935		75	%	1,794		72	%
International(2)	376		15	%	433		17	%
Other customers	15		1	%	24		1	%
Intersegment sales	237		9	%	246		10	%
Mission Systems sales	2,563		100	%	2,497		100	%
Space Systems
U.S. government(1)	3,166		95	%	2,708		94	%
International(2)	71		2	%	72		3	%
Other customers	81		2	%	44		2	%
Intersegment sales	32		1	%	31		1	%
Space Systems sales	3,350		100	%	2,855		100	%
Total
U.S. government(1)	8,012		86	%	7,569		86	%
International(2)	1,166		13	%	1,141		13	%
Other customers	123		1	%	87		1	%
Total Sales	$	9,301	100	%	$	8,797	100	%

(1) Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company’s segments derives substantial revenue from the U.S. government.

(2) International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer. These sales include foreign military sales contracted through the U.S. government.

(3) Percentages calculated based on total segment sales.

Sales by Contract Type	Three Months Ended March 31
	2023				2022
$ in millions	$		%(1)		$		%(1)
Aeronautics Systems
Cost-type	$	1,231	50	%	$	1,276	48	%
Fixed-price	1,219		50	%	1,362		52	%
Intersegment sales	65				65
Aeronautics Systems sales	2,515				2,703
Defense Systems
Cost-type	423		35	%	336		31	%
Fixed-price	784		65	%	748		69	%
Intersegment sales	169				199
Defense Systems sales	1,376				1,283
Mission Systems
Cost-type	961		41	%	835		37	%
Fixed-price	1,365		59	%	1,416		63	%
Intersegment sales	237				246
Mission Systems sales	2,563				2,497
Space Systems
Cost-type	2,446		74	%	1,983		70	%
Fixed-price	872		26	%	841		30	%
Intersegment sales	32				31
Space Systems sales	3,350				2,855
Total
Cost-type	5,061		54	%	4,430		50	%
Fixed-price	4,240		46	%	4,367		50	%
Total Sales	$	9,301			$	8,797

(1)Percentages calculated based on external customer sales.

Sales by Geographic Region	Three Months Ended March 31
	2023				2022
$ in millions	$		%(2)		$		%(2)
Aeronautics Systems
United States	$	2,119	87	%	$	2,295	87	%
Asia/Pacific	147		6	%	190		7	%
Europe	174		7	%	137		5	%
All other(1)	10		—	%	16		1	%
Intersegment sales	65				65
Aeronautics Systems sales	2,515				2,703
Defense Systems
United States	819		67	%	791		73	%
Asia/Pacific	117		10	%	105		10	%
Europe	128		11	%	101		9	%
All other(1)	143		12	%	87		8	%
Intersegment sales	169				199
Defense Systems sales	1,376				1,283
Mission Systems
United States	1,950		83	%	1,818		81	%
Asia/Pacific	92		4	%	139		6	%
Europe	200		9	%	225		10	%
All other(1)	84		4	%	69		3	%
Intersegment sales	237				246
Mission Systems sales	2,563				2,497
Space Systems
United States	3,247		98	%	2,752		98	%
Asia/Pacific	20		1	%	29		1	%
Europe	45		1	%	40		1	%
All other(1)	6		—	%	3		—	%
Intersegment sales	32				31
Space Systems sales	3,350				2,855
Total
United States	8,135		87	%	7,656		87	%
Asia/Pacific	376		4	%	463		5	%
Europe	547		6	%	503		6	%
All other(1)	243		3	%	175		2	%
Total Sales	$	9,301			$	8,797

(1)All other is principally comprised of the Middle East.

(2)Percentages calculated based on external customer sales.