INFORMATION ON BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 26, 2022

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 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Net sales
Aeronautics	$	5,862	$	6,666	$	12,263	$	13,053
Missiles and Fire Control	2,747		2,944		5,199		5,693
Rotary and Mission Systems	4,012		4,242		7,564		8,349
Space	2,825		3,177		5,384		6,192
Total net sales	$	15,446	$	17,029	$	30,410	$	33,287
Operating profit
Aeronautics	$	612	$	572	$	1,291	$	1,265
Missiles and Fire Control	418		401		802		797
Rotary and Mission Systems	403		458		751		891
Space	268		335		513		562
Total business segment operating profit	1,701		1,766		3,357		3,515
Unallocated items
FAS/CAS pension operating adjustment	425		489		851		978


Severance and restructuring charges	—		—		—		(36)
Other, net	(163)		(63)		(312)		(83)
Total unallocated items	262		426		539		859
Total consolidated operating profit	$	1,963	$	2,192	$	3,896	$	4,374
Intersegment sales
Aeronautics	$	58	$	52	$	118	$	105
Missiles and Fire Control	161		167		317		296
Rotary and Mission Systems	453		448		908		926
Space	99		92		182		174
Total intersegment sales	$	771	$	759	$	1,525	$	1,501
Amortization of purchased intangibles
Aeronautics	$	(1)	$	(1)	$	(1)	$	(1)
Missiles and Fire Control	—		—		(1)		(1)
Rotary and Mission Systems	(58)		(58)		(116)		(116)
Space	(3)		(22)		(6)		(44)
Total amortization of purchased intangibles	$	(62)	$	(81)	$	(124)	$	(162)

The total FAS/CAS pension adjustment for the quarters and six months ended June 26, 2022 and June 27, 2021, 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				Six Months Ended
	June 26, 2022		June 27, 2021		June 26, 2022			June 27, 2021
Total FAS (expense) income and CAS cost
Total FAS pension (expense) income	$	(1,355)	$	67		$	(1,239)	$	133
Less: CAS pension cost	449		516			899		1,032
Total FAS/CAS pension adjustment	$	(906)	$	583		$	(340)	$	1,165

Service and non-service cost reconciliation
FAS pension service cost	$	(24)	$	(27)		$	(48)	$	(54)
Less: CAS pension cost	449		516			899		1,032
Total FAS/CAS pension operating adjustment	425		489			851		978
Non-service FAS pension (expense) income	(1,331)		94			(1,191)		187
Total FAS/CAS pension adjustment	$	(906)	$	583		$	(340)	$	1,165

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


	Quarter Ended June 26, 2022
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	4,804	$	2,444	$	3,150	$	2,363	$	12,761
Services	1,058		303		862		462		2,685
Total net sales	$	5,862	$	2,747	$	4,012	$	2,825	$	15,446
Net sales by contract type
Fixed-price	$	3,916	$	1,943	$	2,589	$	753	$	9,201
Cost-reimbursable	1,946		804		1,423		2,072		6,245
Total net sales	$	5,862	$	2,747	$	4,012	$	2,825	$	15,446
Net sales by customer
U.S. Government	$	3,963	$	1,924	$	2,785	$	2,786	$	11,458
International (a)	1,868		823		1,129		29		3,849
U.S. commercial and other	31		—		98		10		139
Total net sales	$	5,862	$	2,747	$	4,012	$	2,825	$	15,446
Net sales by geographic region
United States	$	3,994	$	1,924	$	2,883	$	2,796	$	11,597
Europe	845		262		178		20		1,305
Asia Pacific	705		107		553		6		1,371
Middle East	222		417		201		3		843
Other	96		37		197		—		330
Total net sales	$	5,862	$	2,747	$	4,012	$	2,825	$	15,446


	Six Months Ended June 26, 2022
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	10,221	$	4,617	$	5,938	$	4,479	$	25,255
Services	2,042		582		1,626		905		5,155
Total net sales	$	12,263	$	5,199	$	7,564	$	5,384	$	30,410
Net sales by contract type
Fixed-price	$	8,602	$	3,656	$	4,807	$	1,390	$	18,455
Cost-reimbursable	3,661		1,543		2,757		3,994		11,955
Total net sales	$	12,263	$	5,199	$	7,564	$	5,384	$	30,410
Net sales by customer
U.S. Government	$	8,176	$	3,519	$	5,296	$	5,302	$	22,293
International (a)	4,018		1,675		2,100		63		7,856
U.S. commercial and other	69		5		168		19		261
Total net sales	$	12,263	$	5,199	$	7,564	$	5,384	$	30,410
Net sales by geographic region
United States	$	8,245	$	3,524	$	5,464	$	5,321	$	22,554
Europe	1,868		518		365		44		2,795
Asia Pacific	1,426		213		985		13		2,637
Middle East	484		882		377		6		1,749
Other	240		62		373		—		675
Total net sales	$	12,263	$	5,199	$	7,564	$	5,384	$	30,410


	Quarter Ended June 27, 2021
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	5,583	$	2,571	$	3,369	$	2,735	$	14,258
Services	1,083		373		873		442		2,771
Total net sales	$	6,666	$	2,944	$	4,242	$	3,177	$	17,029
Net sales by contract type
Fixed-price	$	4,920	$	1,991	$	2,802	$	645	$	10,358
Cost-reimbursable	1,746		953		1,440		2,532		6,671
Total net sales	$	6,666	$	2,944	$	4,242	$	3,177	$	17,029
Net sales by customer
U.S. Government	$	4,367	$	2,176	$	3,063	$	2,719	$	12,325
International (a)	2,283		766		1,117		447		4,613
U.S. commercial and other	16		2		62		11		91
Total net sales	$	6,666	$	2,944	$	4,242	$	3,177	$	17,029
Net sales by geographic region
United States	$	4,383	$	2,178	$	3,125	$	2,730	$	12,416
Europe	944		232		223		444		1,843
Asia Pacific	914		56		534		2		1,506
Middle East	311		467		177		1		956
Other	114		11		183		—		308
Total net sales	$	6,666	$	2,944	$	4,242	$	3,177	$	17,029


	Six Months Ended June 27, 2021
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	11,062	$	4,981	$	6,669	$	5,299	$	28,011
Services	1,991		712		1,680		893		5,276
Total net sales	$	13,053	$	5,693	$	8,349	$	6,192	$	33,287
Net sales by contract type
Fixed-price	$	9,654	$	3,869	$	5,479	$	1,259	$	20,261
Cost-reimbursable	3,399		1,824		2,870		4,933		13,026
Total net sales	$	13,053	$	5,693	$	8,349	$	6,192	$	33,287
Net sales by customer
U.S. Government	$	8,640	$	4,217	$	5,873	$	5,270	$	24,000
International (a)	4,382		1,469		2,337		904		9,092
U.S. commercial and other	31		7		139		18		195
Total net sales	$	13,053	$	5,693	$	8,349	$	6,192	$	33,287
Net sales by geographic region
United States	$	8,671	$	4,224	$	6,012	$	5,288	$	24,195
Europe	1,798		414		424		899		3,535
Asia Pacific	1,807		107		1,184		4		3,102
Middle East	595		925		347		1		1,868
Other	182		23		382		—		587
Total net sales	$	13,053	$	5,693	$	8,349	$	6,192	$	33,287

(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.

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


	June 26, 2022		December 31, 2021
Assets
Aeronautics	$	12,168	$	10,756
Missiles and Fire Control	5,795		5,243
Rotary and Mission Systems	18,092		17,664
Space	6,527		6,199
Total business segment assets	42,582		39,862
Corporate assets (a)	9,176		11,011
Total assets	$	51,758	$	50,873

(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, investments held in a separate trust and investments held in the Lockheed Martin Ventures Fund.