INFORMATION ON BUSINESS SEGMENTS (Tables)

3 Months Ended

Mar. 29, 2020

Segment Reporting [Abstract]

Summary Of Operating Results and Total Assets For Each Business Segment

Summary operating results for each of our business segments were as follows (in millions):

	Quarters Ended
	March 29, 2020			March 31, 2019
Net sales
Aeronautics	$	6,369		$	5,584
Missiles and Fire Control	2,619			2,350
Rotary and Mission Systems	3,746			3,762
Space	2,917			2,640
Total net sales	$	15,651		$	14,336
Operating profit
Aeronautics	$	672		$	585
Missiles and Fire Control	396			417
Rotary and Mission Systems	376			379
Space	281			334
Total business segment operating profit	1,725			1,715
Unallocated items
FAS/CAS operating adjustment (a)	469			512
Stock-based compensation	(42		)	(37		)
Other, net	(30		)	93
Total unallocated items	397			568
Total consolidated operating profit	$	2,122		$	2,283
Intersegment sales
Aeronautics	$	59		$	42
Missiles and Fire Control	136			121
Rotary and Mission Systems	499			499
Space	108			68
Total intersegment sales	$	802		$	730

^(a)  The FAS/CAS operating adjustment represents the difference between the service cost component of financial accounting standards (FAS) pension income (expense) and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS.  

Our total net FAS/CAS pension adjustment for the quarters ended March 29, 2020 and March 31, 2019, including the service and non-service cost components of FAS pension income (expense) for our qualified defined benefit pension plans, were as follows (in millions):

	Quarters Ended
	March 29, 2020			March 31, 2019
Total FAS income (expense) and CAS costs
FAS pension income (expense)	$	30		$	(273	)
Less: CAS pension cost	494			641
Net FAS/CAS pension adjustment	$	524		$	368
Service and non-service cost reconciliation
FAS pension service cost	$	(25	)	$	(129	)
Less: CAS pension cost	494			641
FAS/CAS operating adjustment	469			512
Non-operating FAS pension income (expense)	55			(144		)
Net FAS/CAS pension adjustment	$	524		$	368

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 cost in each of our business segment’s net sales and cost of sales. Our consolidated financial statements must present FAS pension and other postretirement benefit plan expense calculated in accordance with FAS requirements under U.S. GAAP. The operating portion of the net FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension income (expense) and total CAS pension cost. The non-service FAS pension income (expense) component is included in other non-operating income (expense), net in our consolidated statements of earnings. As a result, to the extent that CAS pension cost exceeds the service cost component of FAS pension income (expense), we have a favorable FAS/CAS operating adjustment.

Total assets for each of our business segments were as follows (in millions):

	March 29, 2020		December 31, 2019
Assets
Aeronautics	$	10,003	$	9,109
Missiles and Fire Control	5,210		5,030
Rotary and Mission Systems	18,901		18,751
Space	6,164		5,844
Total business segment assets	40,278		38,734
Corporate assets (a)	8,970		8,794
Total assets	$	49,248	$	47,528

^(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 and investments held in a separate trust.

Net sales by products and services, contract type, customer, and geographic region were as follows (in millions):

	Quarter Ended March 29, 2020
	Aeronautics		MFC		RMS		Space			Total
Net sales
Products	$	5,455	$	2,275	$	2,986	$	2,450		$	13,166
Services	914		344		760		467			2,485
Total net sales	$	6,369	$	2,619	$	3,746	$	2,917		$	15,651
Net sales by contract type
Fixed-price	$	4,584	$	1,718	$	2,482	$	519		$	9,303
Cost-reimbursable	1,785		901		1,264		2,398			6,348
Total net sales	$	6,369	$	2,619	$	3,746	$	2,917		$	15,651
Net sales by customer
U.S. Government	$	4,033	$	1,955	$	2,788	$	2,483		$	11,259
International (a)	2,321		660		855		420			4,256
U.S. commercial and other	15		4		103		14			136
Total net sales	$	6,369	$	2,619	$	3,746	$	2,917		$	15,651
Net sales by geographic region
United States	$	4,048	$	1,959	$	2,891	$	2,497		$	11,395
Asia Pacific	995		75		318		28			1,416
Europe	948		168		167		398			1,681
Middle East	328		407		207		(6		)	936
Other	50		10		163		—			223
Total net sales	$	6,369	$	2,619	$	3,746	$	2,917		$	15,651

	Quarter Ended March 31, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	4,796	$	1,916	$	3,059	$	2,199	$	11,970
Services	788		434		703		441		2,366
Total net sales	$	5,584	$	2,350	$	3,762	$	2,640	$	14,336
Net sales by contract type
Fixed-price	$	4,170	$	1,535	$	2,619	$	523	$	8,847
Cost-reimbursable	1,414		815		1,143		2,117		5,489
Total net sales	$	5,584	$	2,350	$	3,762	$	2,640	$	14,336
Net sales by customer
U.S. Government	$	3,435	$	1,633	$	2,675	$	2,236	$	9,979
International (a)	2,095		670		995		395		4,155
U.S. commercial and other	54		47		92		9		202
Total net sales	$	5,584	$	2,350	$	3,762	$	2,640	$	14,336
Net sales by geographic region
United States	$	3,489	$	1,680	$	2,767	$	2,245	$	10,181
Asia Pacific	906		122		330		8		1,366
Europe	798		122		198		381		1,499
Middle East	337		413		285		6		1,041
Other	54		13		182		—		249
Total net sales	$	5,584	$	2,350	$	3,762	$	2,640	$	14,336

^(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.