INFORMATION ON BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 26, 2021

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 26, 2021		September 27, 2020		September 26, 2021		September 27, 2020
Net sales
Aeronautics	$	6,568	$	6,680	$	19,621	$	19,552
Missiles and Fire Control	2,781		2,971		8,474		8,391
Rotary and Mission Systems	3,980		3,998		12,329		11,783
Space	2,699		2,846		8,891		8,640
Total net sales	$	16,028	$	16,495	$	49,315	$	48,366
Operating profit
Aeronautics	$	714	$	705	$	1,979	$	2,116
Missiles and Fire Control	413		405		1,210		1,171
Rotary and Mission Systems	459		404		1,350		1,209
Space	264		248		826		781
Total business segment operating profit	1,850		1,762		5,365		5,277
Unallocated items
FAS/CAS operating adjustment	491		469		1,469		1,407
Stock-based compensation	(62)		(67)		(189)		(182)

Severance and restructuring charges	—		—		(36)		—
Other, net	15		(17)		59		(147)
Total unallocated items	444		385		1,303		1,078
Total consolidated operating profit	$	2,294	$	2,147	$	6,668	$	6,355
Intersegment sales
Aeronautics	$	60	$	59	$	165	$	179
Missiles and Fire Control	153		129		449		405
Rotary and Mission Systems	455		438		1,381		1,438
Space	95		83		269		296
Total intersegment sales	$	763	$	709	$	2,264	$	2,318
Amortization of purchased intangibles
Aeronautics	$	—	$	—	$	(1)	$	—
Missiles and Fire Control	(1)		(1)		(2)		(2)
Rotary and Mission Systems	(58)		(58)		(174)		(174)
Space	(2)		(7)		(46)		(21)
Total amortization of purchased intangibles	$	(61)	$	(66)	$	(223)	$	(197)

Our total net FAS/CAS pension adjustment for the quarters and nine months ended September 26, 2021 and September 27, 2020, including the service and non-service cost components of FAS pension (expense) income for our qualified defined benefit pension plans, were as follows (in millions):


	Quarters Ended				Nine Months Ended
	September 26, 2021		September 27, 2020		September 26, 2021			September 27, 2020
Total FAS (expense) income and CAS costs
FAS pension (expense) income	$	(1,598)	$	29		$	(1,465)	$	88
Less: CAS pension cost	517		494			1,549		1,483
Net FAS/CAS pension adjustment	$	(1,081)	$	523		$	84	$	1,571

Service and non-service cost reconciliation
FAS pension service cost	$	(26)	$	(25)		$	(80)	$	(76)
Less: CAS pension cost	517		494			1,549		1,483
FAS/CAS operating adjustment	491		469			1,469		1,407
Non-service FAS pension (expense) income	(1,572)		54			(1,385)		164
Net FAS/CAS pension adjustment	$	(1,081)	$	523		$	84	$	1,571

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


	Quarter Ended September 26, 2021
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	5,573	$	2,429	$	3,201	$	2,272	$	13,475
Services	995		352		779		427		2,553
Total net sales	$	6,568	$	2,781	$	3,980	$	2,699	$	16,028
Net sales by contract type
Fixed-price	$	4,819	$	1,900	$	2,617	$	631	$	9,967
Cost-reimbursable	1,749		881		1,363		2,068		6,061
Total net sales	$	6,568	$	2,781	$	3,980	$	2,699	$	16,028
Net sales by customer
U.S. Government	$	4,312	$	1,938	$	2,838	$	2,671	$	11,759
International (a)	2,229		847		1,047		22		4,145
U.S. commercial and other	27		(4)		95		6		124
Total net sales	$	6,568	$	2,781	$	3,980	$	2,699	$	16,028
Net sales by geographic region
United States	$	4,339	$	1,934	$	2,933	$	2,677	$	11,883
Asia Pacific	890		81		409		(14)		1,366
Europe	910		226		213		32		1,381
Middle East	360		527		246		4		1,137
Other	69		13		179		—		261
Total net sales	$	6,568	$	2,781	$	3,980	$	2,699	$	16,028


	Nine Months Ended September 26, 2021
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	16,635	$	7,410	$	9,870	$	7,571	$	41,486
Services	2,986		1,064		2,459		1,320		7,829
Total net sales	$	19,621	$	8,474	$	12,329	$	8,891	$	49,315
Net sales by contract type
Fixed-price	$	14,473	$	5,769	$	8,096	$	1,890	$	30,228
Cost-reimbursable	5,148		2,705		4,233		7,001		19,087
Total net sales	$	19,621	$	8,474	$	12,329	$	8,891	$	49,315
Net sales by customer
U.S. Government	$	12,952	$	6,155	$	8,711	$	7,941	$	35,759
International (a)	6,611		2,316		3,384		926		13,237
U.S. commercial and other	58		3		234		24		319
Total net sales	$	19,621	$	8,474	$	12,329	$	8,891	$	49,315
Net sales by geographic region
United States	$	13,010	$	6,158	$	8,945	$	7,965	$	36,078
Asia Pacific	2,697		188		1,593		(10)		4,468
Europe	2,708		640		637		931		4,916
Middle East	955		1,452		593		5		3,005
Other	251		36		561		—		848
Total net sales	$	19,621	$	8,474	$	12,329	$	8,891	$	49,315

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


	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 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 26, 2021		December 31, 2020
Assets
Aeronautics	$	12,369	$	9,903
Missiles and Fire Control	5,056		4,966
Rotary and Mission Systems	17,807		18,035
Space	6,551		6,451
Total business segment assets	41,783		39,355
Corporate assets (a)	10,060		11,355
Total assets	$	51,843	$	50,710

(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.