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Information on Business Segments (Tables)

12 Months Ended

Dec. 31, 2020

Summary Of Financial Information For Each Business Segment

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


	2020		2019		2018
Net sales
Aeronautics	$	26,266	$	23,693	$	21,242
Missiles and Fire Control	11,257		10,131		8,462
Rotary and Mission Systems	15,995		15,128		14,250
Space	11,880		10,860		9,808
Total net sales	$	65,398	$	59,812	$	53,762
Operating profit
Aeronautics	$	2,843	$	2,521	$	2,272
Missiles and Fire Control	1,545		1,441		1,248
Rotary and Mission Systems	1,615		1,421		1,302
Space	1,149		1,191		1,055
Total business segment operating profit	7,152		6,574		5,877
Unallocated items
FAS/CAS operating adjustment (a)	1,876		2,049		1,803
Stock-based compensation	(221)		(189)		(173)
Severance and restructuring charges (b)	(27)		—		(96)
Other, net (c)	(136)		111		(77)
Total unallocated, net	1,492		1,971		1,457
Total consolidated operating profit	$	8,644	$	8,545	$	7,334

(a)The FAS/CAS operating adjustment represents the difference between the service cost component of FAS pension income (expense) and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS. For a detail of the FAS/CAS operating adjustment and the total net FAS/CAS pension adjustment, see the table below.

(b)See “Note 16 – Severance Charges” discussion for information on charges related to certain severance actions across our organization.

(c)Other, net in 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, AMMROC, which decreased net earnings from continuing operations by $96 million. Other, net in 2019 includes a previously deferred non-cash gain of $51 million related to properties sold in 2015 as a result of completing our remaining obligations and a gain of $34 million for the sale of its Distributed Energy Solutions business. Other, net in 2018 includes a non-cash asset impairment charge of $110 million related to our equity method investee, AMMROC (see “Note 1 – Significant Accounting Policies”).

Total net FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension income (expense), were as follows (in millions):


	2020		2019		2018
Total FAS income (expense) and CAS costs
FAS pension income (expense)	$	118	$	(1,093)	$	(1,431)
Less: CAS pension cost	1,977		2,565		2,433
Net FAS/CAS pension adjustment	$	2,095	$	1,472	$	1,002

Service and non-service cost reconciliation
FAS pension service cost	$	(101)	$	(516)	$	(630)
Less: CAS pension cost	1,977		2,565		2,433
FAS/CAS operating adjustment	1,876		2,049		1,803
Non-operating FAS pension income (expense)	219		(577)		(801)
Net FAS/CAS pension adjustment	$	2,095	$	1,472	$	1,002


	2020		2019		2018
Intersegment sales
Aeronautics	$	243	$	217	$	120
Missiles and Fire Control	562		515		423
Rotary and Mission Systems	1,903		1,872		1,759
Space	377		352		237
Total intersegment sales	$	3,085	$	2,956	$	2,539
Depreciation and amortization
Aeronautics	$	348	$	318	$	304
Missiles and Fire Control	138		124		105
Rotary and Mission Systems	476		464		458
Space	219		213		229
Total business segment depreciation and amortization	1,181		1,119		1,096
Corporate activities	109		70		65
Total depreciation and amortization	$	1,290	$	1,189	$	1,161
Capital expenditures
Aeronautics	$	534	$	526	$	460
Missiles and Fire Control	391		300		244
Rotary and Mission Systems	311		272		255
Space	403		258		255
Total business segment capital expenditures	1,639		1,356		1,214
Corporate activities	127		128		64
Total capital expenditures	$	1,766	$	1,484	$	1,278

Net Sales by Type

Net sales by total products and services, contract type, customer category and geographic region for each of our business segments were as follows (in millions):


	2020
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	22,327	$	9,804	$	12,748	$	10,049	$	54,928
Services	3,939		1,453		3,247		1,831		10,470
Total net sales	$	26,266	$	11,257	$	15,995	$	11,880	$	65,398
Net sales by contract type
Fixed-price	$	18,477	$	7,587	$	10,795	$	2,247	$	39,106
Cost-reimbursable	7,789		3,670		5,200		9,633		26,292
Total net sales	$	26,266	$	11,257	$	15,995	$	11,880	$	65,398
Net sales by customer
U.S. Government	$	18,175	$	8,404	$	11,596	$	10,293	$	48,468
International (a)	8,012		2,842		3,986		1,546		16,386
U.S. commercial and other	79		11		413		41		544
Total net sales	$	26,266	$	11,257	$	15,995	$	11,880	$	65,398
Net sales by geographic region
United States	$	18,254	$	8,415	$	12,009	$	10,334	$	49,012
Asia Pacific	3,162		280		1,666		68		5,176
Europe	3,283		767		806		1,478		6,334
Middle East	1,344		1,749		847		—		3,940
Other	223		46		667		—		936
Total net sales	$	26,266	$	11,257	$	15,995	$	11,880	$	65,398


	2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	20,319	$	8,424	$	12,206	$	9,104	$	50,053
Services	3,374		1,707		2,922		1,756		9,759
Total net sales	$	23,693	$	10,131	$	15,128	$	10,860	$	59,812
Net sales by contract type
Fixed-price	$	17,239	$	6,449	$	10,382	$	2,135	$	36,205
Cost-reimbursable	6,454		3,682		4,746		8,725		23,607
Total net sales	$	23,693	$	10,131	$	15,128	$	10,860	$	59,812
Net sales by customer
U.S. Government	$	14,776	$	7,524	$	10,803	$	9,322	$	42,425
International (a)	8,733		2,465		3,822		1,511		16,531
U.S. commercial and other	184		142		503		27		856
Total net sales	$	23,693	$	10,131	$	15,128	$	10,860	$	59,812
Net sales by geographic region
United States	$	14,960	$	7,666	$	11,306	$	9,349	$	43,281
Asia Pacific	3,882		420		1,451		73		5,826
Europe	3,224		516		769		1,419		5,928
Middle East	1,465		1,481		979		19		3,944
Other	162		48		623		—		833
Total net sales	$	23,693	$	10,131	$	15,128	$	10,860	$	59,812

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


	2018
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	18,207	$	6,945	$	11,714	$	8,139	$	45,005
Services	3,035		1,517		2,536		1,669		8,757
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by contract type
Fixed-price	$	15,719	$	5,653	$	9,975	$	1,892	$	33,239
Cost-reimbursable	5,523		2,809		4,275		7,916		20,523
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by customer
U.S. Government	$	13,321	$	6,088	$	10,083	$	8,224	$	37,716
International (a)	7,735		2,190		3,693		1,538		15,156
U.S. commercial and other	186		184		474		46		890
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by geographic region
United States	$	13,507	$	6,272	$	10,557	$	8,270	$	38,606
Asia Pacific	3,335		427		1,433		85		5,280
Europe	2,837		321		829		1,416		5,403
Middle East	1,380		1,404		781		37		3,602
Other	183		38		650		—		871
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762

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

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


	2020		2019
Assets (a)
Aeronautics	$	9,903	$	9,109
Missiles and Fire Control	4,966		5,030
Rotary and Mission Systems	18,035		18,751
Space	6,451		5,844
Total business segment assets	39,355		38,734
Corporate assets (b)	11,355		8,794
Total assets	$	50,710	$	47,528

(a)We have no long-lived assets with material carrying values located in foreign countries.

(b)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.