INFORMATION ON BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 28, 2020

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										Six Months Ended
	June 28, 2020				June 30, 2019			June 28, 2020				June 30, 2019
Net sales
Aeronautics	$	6,503	$	5,550		$	12,872		$	11,134
Missiles and Fire Control	2,801		2,411			5,420			4,761
Rotary and Mission Systems	4,039		3,768			7,785			7,530
Space	2,877		2,698			5,794			5,338
Total net sales	$	16,220	$	14,427		$	31,871		$	28,763
Operating profit
Aeronautics	$	739	$	592		$	1,411		$	1,177
Missiles and Fire Control	370		327			766			744
Rotary and Mission Systems	429		347			805			726
Space	252		288			533			622
Total business segment operating profit	1,790		1,554			3,515			3,269
Unallocated items
FAS/CAS operating adjustment ^(a)	469		512			938			1,024
Stock-based compensation	(73)		(67)			(115)			(104)


Other, net ^(b)	(100)		9			(130)			102
Total unallocated items	296		454			693			1,022
Total consolidated operating profit	$	2,086	$	2,008		$	4,208		$	4,291
Intersegment sales
Aeronautics	$	61	$	47		$	120		$	89
Missiles and Fire Control	140		144			276			265
Rotary and Mission Systems	502		461			1,000			960
Space	105		85			213			153
Total intersegment sales	$	808	$	737		$	1,609		$	1,467

^(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.

^(b)Other, net for the quarter and six months ended June 28, 2020 includes a non-cash impairment charge of $128 million ($96 million, or $0.34 per share, after tax) recognized on our investment in the international equity method investee, Advanced Military Maintenance, Repair and Overhaul Center (AMMROC) that we entered into an agreement to sell in July 2020.

Our total net FAS/CAS pension adjustment for the quarters and six months ended June 28, 2020 and June 30, 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								Six Months Ended
	June 28, 2020				June 30, 2019			June 28, 2020			June 30, 2019
Total FAS income (expense) and CAS costs
FAS pension income (expense)	$	29	$	(273)		$	59		$	(546)
Less: CAS pension cost	495		641			989			1,282
Net FAS/CAS pension adjustment	$	524	$	368		$	1,048		$	736

Service and non-service cost reconciliation
FAS pension service cost	$	(26)	$	(129)		$	(51)		$	(258)
Less: CAS pension cost	495		641			989			1,282
FAS/CAS operating adjustment	469		512			938			1,024
Non-operating FAS pension income (expense)	55		(144)			110			(288)
Net FAS/CAS pension adjustment	$	524	$	368		$	1,048		$	736

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



	Quarter Ended June 28, 2020
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	5,474	$	2,422	$	3,259	$	2,417	$	13,572
Services	1,029		379		780		460		2,648
Total net sales	$	6,503	$	2,801	$	4,039	$	2,877	$	16,220
Net sales by contract type
Fixed-price	$	4,467	$	1,877	$	2,639	$	483	$	9,466
Cost-reimbursable	2,036		924		1,400		2,394		6,754
Total net sales	$	6,503	$	2,801	$	4,039	$	2,877	$	16,220
Net sales by customer
U.S. Government	$	5,352	$	2,098	$	2,926	$	2,533	$	12,909
International ^(a)	1,132		699		1,011		330		3,172
U.S. commercial and other	19		4		102		14		139
Total net sales	$	6,503	$	2,801	$	4,039	$	2,877	$	16,220
Net sales by geographic region
United States	$	5,371	$	2,102	$	3,028	$	2,547	$	13,048
Asia Pacific	353		72		464		16		905
Europe	506		170		170		314		1,160
Middle East	213		442		213		—		868
Other	60		15		164		—		239
Total net sales	$	6,503	$	2,801	$	4,039	$	2,877	$	16,220


	Six Months Ended June 28, 2020
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	10,929	$	4,697	$	6,245	$	4,867	$	26,738
Services	1,943		723		1,540		927		5,133
Total net sales	$	12,872	$	5,420	$	7,785	$	5,794	$	31,871
Net sales by contract type
Fixed-price	$	9,051	$	3,595	$	5,121	$	1,002	$	18,769
Cost-reimbursable	3,821		1,825		2,664		4,792		13,102
Total net sales	$	12,872	$	5,420	$	7,785	$	5,794	$	31,871
Net sales by customer
U.S. Government	$	9,385	$	4,053	$	5,714	$	5,016	$	24,168
International ^(a)	3,453		1,359		1,866		750		7,428
U.S. commercial and other	34		8		205		28		275
Total net sales	$	12,872	$	5,420	$	7,785	$	5,794	$	31,871
Net sales by geographic region
United States	$	9,419	$	4,061	$	5,919	$	5,044	$	24,443
Asia Pacific	1,348		147		782		44		2,321
Europe	1,454		338		337		712		2,841
Middle East	541		849		420		(6)		1,804
Other	110		25		327		—		462
Total net sales	$	12,872	$	5,420	$	7,785	$	5,794	$	31,871

^(a)International sales include FMS contracted through the U.S. Government and direct commercial sales to international governments and other international customers.


	Quarter Ended June 30, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	4,740	$	1,963	$	3,023	$	2,277	$	12,003
Services	810		448		745		421		2,424
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by contract type
Fixed-price	$	4,040	$	1,444	$	2,526	$	535	$	8,545
Cost-reimbursable	1,510		967		1,242		2,163		5,882
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by customer
U.S. Government	$	3,476	$	1,900	$	2,675	$	2,332	$	10,383
International ^(a)	2,010		475		974		360		3,819
U.S. commercial and other	64		36		119		6		225
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by geographic region
United States	$	3,540	$	1,936	$	2,794	$	2,338	$	10,608
Asia Pacific	784		86		418		23		1,311
Europe	847		103		143		328		1,421
Middle East	335		272		247		9		863
Other	44		14		166		—		224
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427

	Six Months Ended June 30, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	9,536	$	3,879	$	6,082	$	4,476	$	23,973
Services	1,598		882		1,448		862		4,790
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by contract type
Fixed-price	$	8,210	$	2,979	$	5,145	$	1,058	$	17,392
Cost-reimbursable	2,924		1,782		2,385		4,280		11,371
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by customer
U.S. Government	$	6,911	$	3,533	$	5,350	$	4,568	$	20,362
International ^(a)	4,105		1,145		1,969		755		7,974
U.S. commercial and other	118		83		211		15		427
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by geographic region
United States	$	7,029	$	3,616	$	5,561	$	4,583	$	20,789
Asia Pacific	1,690		208		748		31		2,677
Europe	1,645		225		341		709		2,920
Middle East	672		685		532		15		1,904
Other	98		27		348		—		473
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763

^(a)International sales include FMS contracted through the U.S. Government and direct commercial sales to international governments and other international customers.

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


	June 28, 2020				December 31, 2019
Assets
Aeronautics	$	9,801	$	9,109
Missiles and Fire Control	5,257		5,030
Rotary and Mission Systems	18,498		18,751
Space	6,221		5,844
Total business segment assets	39,777		38,734
Corporate assets ^(a)	9,826		8,794
Total assets	$	49,603	$	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.