Postretirement Plans (Tables)

12 Months Ended

Dec. 31, 2011


(In millions)	Qualified Defined Benefit Pension Plans ^(a)									Retiree Medical and Life Insurance Plans
(In millions)	*2011*			2010			2009			*2011*			2010			2009
Service cost	$	974		$	903		$	870		$	32		$	36		$	34
Interest cost		1,918			1,876			1,812			162			166			165
Expected return on plan assets		(2,033	)		(2,027	)		(2,028	)		(140	)		(129	)		(106	)
Recognized net actuarial losses		880			595			302			34			25			42
Amortization of prior service cost		82			83			80			(16	)		(16	)		(23	)
Curtailment		—			12			—			—			—			—
Total net periodic benefit cost	$	1,821		$	1,442		$	1,036		$	72		$	82		$	112

^(a)

Total net periodic benefit cost associated with our qualified defined benefit plans represents pension expense calculated in accordance with GAAP (FAS expense). We are required to calculate pension expense in accordance with both GAAP and CAS rules, each of which results in a different calculated amount of pension expense. The CAS expense is recovered through the pricing of our products and services on U.S. Government contracts and, therefore, is recognized in net sales and cost of sales for products and services. We include the difference between FAS expense and CAS expense, referred to as the non-cash FAS/CAS pension adjustment ($922 million in 2011, $454 million in 2010, and $456 million in 2009), as a component of other unallocated corporate costs on our Statements of Earnings. The non-cash FAS/CAS pension adjustment effectively adjusts the amount of pension expense in the results of operations so that pension expense recorded on our Statements of Earnings is equal to FAS expense.

Reconciliation Of Benefit Obligations, Plan Assets, And Unfunded Status


(In millions)	Qualified Defined Benefit Pension Plans						Retiree Medical and Life Insurance Plans
(In millions)	*2011*			2010			*2011*			2010

Change in benefit obligation
Beginning balance	$	35,773		$	32,817		$	3,046		$	2,938
Service cost		974			903			32			36
Interest cost		1,918			1,876			162			166
Benefits paid		(1,685	)		(1,592	)		(363	)		(352	)
Actuarial losses (gains)		3,632			2,032			(28	)		105
Plan amendments		4			94			11			—
Divestitures/curtailments^(a)		—			(357	)		—			(10	)
Medicare Part D subsidy		—			—			2			18
Participants' contributions		—			—			161			145
Ending balance	$	40,616		$	35,773		$	3,023		$	3,046

Change in plan assets
Beginning balance at fair value	$	25,345		$	22,154		$	1,833		$	1,630
Actual return on plan assets		1,349			2,886			114			86
Benefits paid		(1,685	)		(1,592	)		(363	)		(352	)
Our contributions		2,285			2,240			—			311
Divestitures and other^(a)		(2	)		(343	)		2			(5	)
Medicare Part D subsidy		—			—			2			18
Participants' contributions		—			—			161			145
Ending balance at fair value	$	27,292		$	25,345		$	1,749		$	1,833
Unfunded status of the plans	$	(13,324	)	$	(10,428	)	$	(1,274	)	$	(1,213	)

Amounts recognized in the Balance Sheets
Prepaid pension asset	$	178		$	179		$	—		$	—
Accrued postretirement benefit liabilities		(13,502	)		(10,607	)		(1,274	)		(1,213	)
Accumulated other comprehensive loss (pre-tax) related to:
Net actuarial losses		15,698			12,263			648			684
Prior service cost (credit)		377			455			(10	)		(37	)

^(a)	Primarily reflects the transfer of assets and liabilities associated with the 2010 sale of EIG (Note 14). An expense of $109 million was recognized in connection with this settlement, which reduced the gain on sale.

Schedule Of Accumulated Benefit Obligations In Excess Of Fair Value Of Plan Assets


(In millions)	*2011*		2010
Projected benefit obligation	$	40,478	$	35,640
Accumulated benefit obligation		35,516		31,291
Fair value of plan assets		26,976		25,033

Schedule Of Amounts Recognized In Other Comprehensive Loss Related To Postretirement Benefit Plans


	Incurred but Not Yet Recognized in Net Periodic Benefit Cost									Recognition of Previously Deferred Amounts									Expected to be Recognized in Net Periodic Benefit Cost in 2012
(In millions)	*2011*			2010			2009			*2011*			2010			2009
	Gains (losses)									(Gains) losses									(Gains) losses
Actuarial gains and losses
Qualified defined benefit pension plans	$	(2,793	)	$	(763	)	$	298		$	568		$	464		$	195		$	721
Retiree medical and life insurance plans		1			(95	)		77			22			17			27			21
Other plans		(56	)		(63	)		(110	)		34			20			22			31
		(2,848	)		(921	)		265			624			501			244			773

	Credit (cost)									(Credit) cost									(Credit) cost
Prior service credit and cost
Qualified defined benefit pension plans		(3	)		(61	)		(45	)		53			62			52			47
Retiree medical and life insurance plans		(7	)		—			(6	)		(11	)		(10	)		(15	)		(8	)
Other plans		—			(1	)		—			—			—			—			—
		(10	)		(62	)		(51	)		42			52			37			39
	$	(2,858	)	$	(983	)	$	214		$	666		$	553		$	281		$	812

Schedule Of Actuarial Assumptions Used To Determine Net Periodic Benefit Cost


	Qualified Defined Benefit Pension Plans									Retiree Medical and Life Insurance Plans
	*2011*			2010			2009			*2011*			2010			2009
Discount rate		4.750	%		5.500	%		5.875	%		4.500	%		5.500	%		5.875	%
Expected long-term rate of return on assets		8.000	%		8.500	%		8.500	%		8.000	%		8.500	%		8.500	%
Rate of increase in future compensation levels		4.300	%		4.400	%		4.500	%
Health care trend rate assumed for next year											9.500	%		10.000	%
Ultimate trend rate											5.000	%		5.000	%
Year that the ultimate trend rate is reached											2021			2021

Schedule Of Asset Allocations Of Postretirement Benefit Plans


*Asset Class*		Asset Allocation Ranges
Cash and cash equivalents		0 – 30%
Equity		10 – 55%
Fixed income		10 – 60%
Alternative investments:
Private equity funds		0 – 15%
Real estate funds		0 – 10%
Hedge funds		0 – 20%
Commodities		0 – 25%

Schedule Of Qualified Defined Benefit Pension Plans And Retiree Medical And Life Insurance Plans By Asset Category


	Balance as of December 31, 2011								Balance as of December 31, 2010
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	2,886	$	—	$	—	$	2,886	$	1,726	$	—	$	—	$	1,726
Equity^(a):
U.S. equity securities		3,834		37		7		3,878		4,548		44		—		4,592
International equity securities		3,750		11		15		3,776		5,008		6		16		5,030
Commingled equity funds		1,016		1,127		—		2,143		1,287		1,056		—		2,343
Fixed income^(a):
Corporate debt securities		—		946		98		1,044		—		1,351		63		1,414
U.S. Government securities		—		10,040		—		10,040		—		7,262		—		7,262
Other fixed income securities		—		508		45		553		—		584		47		631
Alternative investments:
Private equity funds		—		—		2,286		2,286		—		—		2,085		2,085
Real estate funds		—		—		278		278		—		—		164		164
Hedge funds		—		—		825		825		—		—		1,025		1,025
Commodities^(a)		992		277		—		1,269		343		516		—		859
Total	$	12,478	$	12,946	$	3,554	$	28,978	$	12,912	$	10,819	$	3,400	$	27,131
Receivables, net								63								47
Total							$	29,041							$	27,178

^(a)

Equity securities, fixed income securities, and commodities included derivative assets and liabilities whose fair values were not material as of December 31, 2011 and 2010. LMIMCo's investment policies restrict the use of derivatives to either establish long exposures for purposes of expediency or capital efficiency, or to hedge risks to the extent of a plan's current exposure to such risks. Most derivative transactions are settled on a daily basis.

Schedule Of Changes In Fair Value Of Level 3 Plan Assets


(In millions)	Private Equity Funds		Real Estate Funds		Hedge Funds			Other			Total
Balance at January 1, 2010	$	1,730	$	125	$	750		$	58		$	2,663
Actual return on plan assets:
Realized gains, net		123		—		1			2			126
Unrealized gains, net		103		7		13			—			123
Purchases, sales, and settlements, net		129		32		261			65			487
Transfers into (out of) Level 3		—		—		—			1			1
Balance at December 31, 2010	$	2,085	$	164	$	1,025		$	126		$	3,400
Actual return on plan assets:
Realized gains (losses), net		171		25		(4	)		2			194
Unrealized gains (losses), net		7		22		(11	)		(9	)		9
Purchases, sales, and settlements, net		23		67		(183	)		21			(72	)
Transfers into (out of) Level 3		—		—		(2	)		25			23
Balance at December 31, 2011	$	2,286	$	278	$	825		$	165		$	3,554

Schedule Of Benefit Payments


(In millions)	2012		2013		2014		2015		2016		2017 - 2021
Qualified defined benefit pension plans	$	1,760	$	1,830	$	1,910	$	1,990	$	2,080		$12,120
Retiree medical and life insurance plans		240		250		260		260		270		1,240