INFORMATION ON BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 27, 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										Nine Months Ended
	September 27, 2020				September 29, 2019			September 27, 2020				September 29, 2019
Net sales
Aeronautics	$	6,680	$	6,178		$	19,552		$	17,312
Missiles and Fire Control	2,971		2,601			8,391			7,362
Rotary and Mission Systems	3,998		3,709			11,783			11,239
Space	2,846		2,683			8,640			8,021
Total net sales	$	16,495	$	15,171		$	48,366		$	43,934
Operating profit
Aeronautics	$	705	$	665		$	2,116		$	1,842
Missiles and Fire Control	405		349			1,171			1,093
Rotary and Mission Systems	404		342			1,209			1,068
Space	248		309			781			931
Total business segment operating profit	1,762		1,665			5,277			4,934
Unallocated items
FAS/CAS operating adjustment ^(a)	469		513			1,407			1,537
Stock-based compensation	(67)		(54)			(182)			(158)


Other, net ^(b)	(17)		(19)			(147)			83
Total unallocated items	385		440			1,078			1,462
Total consolidated operating profit	$	2,147	$	2,105		$	6,355		$	6,396
Intersegment sales
Aeronautics	$	59	$	58		$	179		$	147
Missiles and Fire Control	129		107			405			372
Rotary and Mission Systems	438		473			1,438			1,433
Space	83		91			296			244
Total intersegment sales	$	709	$	729		$	2,318		$	2,196

^(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 nine months ended September 27, 2020 includes a non-cash impairment charge of $128 million recognized in the second quarter of 2020 on our investment in the international equity method investee, Advanced Military Maintenance, Repair and Overhaul Center (AMMROC), which decreased net earnings from continuing operations by $96 million ($0.34 per share).

Our total net FAS/CAS pension adjustment for the quarters and nine months ended September 27, 2020 and September 29, 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								Nine Months Ended
	September 27, 2020				September 29, 2019			September 27, 2020			September 29, 2019
Total FAS income (expense) and CAS costs
FAS pension income (expense)	$	29	$	(274)		$	88		$	(820)
Less: CAS pension cost	494		642			1,483			1,924
Net FAS/CAS pension adjustment	$	523	$	368		$	1,571		$	1,104

Service and non-service cost reconciliation
FAS pension service cost	$	(25)	$	(129)		$	(76)		$	(387)
Less: CAS pension cost	494		642			1,483			1,924
FAS/CAS operating adjustment	469		513			1,407			1,537
Non-operating FAS pension income (expense)	54		(145)			164			(433)
Net FAS/CAS pension adjustment	$	523	$	368		$	1,571		$	1,104

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



	Quarter Ended September 27, 2020
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	5,742	$	2,614	$	3,120	$	2,393	$	13,869
Services	938		357		878		453		2,626
Total net sales	$	6,680	$	2,971	$	3,998	$	2,846	$	16,495
Net sales by contract type
Fixed-price	$	4,718	$	2,034	$	2,666	$	516	$	9,934
Cost-reimbursable	1,962		937		1,332		2,330		6,561
Total net sales	$	6,680	$	2,971	$	3,998	$	2,846	$	16,495
Net sales by customer
U.S. Government	$	3,930	$	2,206	$	2,971	$	2,463	$	11,570
International ^(a)	2,729		764		914		381		4,788
U.S. commercial and other	21		1		113		2		137
Total net sales	$	6,680	$	2,971	$	3,998	$	2,846	$	16,495
Net sales by geographic region
United States	$	3,951	$	2,207	$	3,084	$	2,465	$	11,707
Asia Pacific	1,099		70		383		21		1,573
Europe	1,141		208		191		360		1,900
Middle East	440		475		206		—		1,121
Other	49		11		134		—		194
Total net sales	$	6,680	$	2,971	$	3,998	$	2,846	$	16,495


	Nine Months Ended September 27, 2020
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	16,671	$	7,311	$	9,365	$	7,260	$	40,607
Services	2,881		1,080		2,418		1,380		7,759
Total net sales	$	19,552	$	8,391	$	11,783	$	8,640	$	48,366
Net sales by contract type
Fixed-price	$	13,769	$	5,629	$	7,787	$	1,518	$	28,703
Cost-reimbursable	5,783		2,762		3,996		7,122		19,663
Total net sales	$	19,552	$	8,391	$	11,783	$	8,640	$	48,366
Net sales by customer
U.S. Government	$	13,315	$	6,259	$	8,685	$	7,479	$	35,738
International ^(a)	6,182		2,123		2,780		1,131		12,216
U.S. commercial and other	55		9		318		30		412
Total net sales	$	19,552	$	8,391	$	11,783	$	8,640	$	48,366
Net sales by geographic region
United States	$	13,370	$	6,268	$	9,003	$	7,509	$	36,150
Asia Pacific	2,447		217		1,165		65		3,894
Europe	2,595		546		528		1,072		4,741
Middle East	981		1,324		626		(6)		2,925
Other	159		36		461		—		656
Total net sales	$	19,552	$	8,391	$	11,783	$	8,640	$	48,366

^(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.


	Quarter Ended September 29, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	5,340	$	2,172	$	2,982	$	2,234	$	12,728
Services	838		429		727		449		2,443
Total net sales	$	6,178	$	2,601	$	3,709	$	2,683	$	15,171
Net sales by contract type
Fixed-price	$	4,567	$	1,681	$	2,536	$	527	$	9,311
Cost-reimbursable	1,611		920		1,173		2,156		5,860
Total net sales	$	6,178	$	2,601	$	3,709	$	2,683	$	15,171
Net sales by customer
U.S. Government	$	3,509	$	1,995	$	2,763	$	2,332	$	10,599
International ^(a)	2,631		572		804		343		4,350
U.S. commercial and other	38		34		142		8		222
Total net sales	$	6,178	$	2,601	$	3,709	$	2,683	$	15,171
Net sales by geographic region
United States	$	3,547	$	2,029	$	2,905	$	2,340	$	10,821
Asia Pacific	1,046		107		317		17		1,487
Europe	1,106		138		168		326		1,738
Middle East	455		318		206		—		979
Other	24		9		113		—		146
Total net sales	$	6,178	$	2,601	$	3,709	$	2,683	$	15,171

	Nine Months Ended September 29, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	14,876	$	6,051	$	9,064	$	6,710	$	36,701
Services	2,436		1,311		2,175		1,311		7,233
Total net sales	$	17,312	$	7,362	$	11,239	$	8,021	$	43,934
Net sales by contract type
Fixed-price	$	12,777	$	4,660	$	7,681	$	1,585	$	26,703
Cost-reimbursable	4,535		2,702		3,558		6,436		17,231
Total net sales	$	17,312	$	7,362	$	11,239	$	8,021	$	43,934
Net sales by customer
U.S. Government	$	10,420	$	5,528	$	8,113	$	6,900	$	30,961
International ^(a)	6,736		1,717		2,773		1,098		12,324
U.S. commercial and other	156		117		353		23		649
Total net sales	$	17,312	$	7,362	$	11,239	$	8,021	$	43,934
Net sales by geographic region
United States	$	10,576	$	5,645	$	8,466	$	6,923	$	31,610
Asia Pacific	2,736		315		1,065		48		4,164
Europe	2,751		363		509		1,035		4,658
Middle East	1,127		1,003		738		15		2,883
Other	122		36		461		—		619
Total net sales	$	17,312	$	7,362	$	11,239	$	8,021	$	43,934

^(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):


	September 27, 2020				December 31, 2019
Assets
Aeronautics	$	10,434	$	9,109
Missiles and Fire Control	5,112		5,030
Rotary and Mission Systems	18,244		18,751
Space	6,145		5,844
Total business segment assets	39,935		38,734
Corporate assets ^(a)	10,838		8,794
Total assets	$	50,773	$	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.