Information on Business Segments (Tables)

12 Months Ended

Dec. 31, 2015

Summary Of Financial Information For Each Business Segment

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

	2015			2014			2013
Net sales
Aeronautics	$	15,570		$	14,920		$	14,123
Information Systems & Global Solutions		5,596			5,654			6,115
Missiles and Fire Control		6,770			7,092			6,795
Mission Systems and Training		9,091			8,732			9,037
Space Systems		9,105			9,202			9,288
Total net sales	$	46,132		$	45,600		$	45,358
Operating profit
Aeronautics	$	1,681		$	1,649		$	1,612
Information Systems & Global Solutions		508			472			498
Missiles and Fire Control		1,282			1,344			1,379
Mission Systems and Training		844			936			1,065
Space Systems		1,171			1,187			1,198
Total business segment operating profit		5,486			5,588			5,752
Unallocated items
FAS/CAS pension adjustment
FAS pension expense (a)		(1,142	)		(1,144	)		(1,948)
Less: CAS pension cost (b)		1,613			1,520			1,466
FAS/CAS pension income (expense)		471			376			(482)
Goodwill impairment charges (c)		—			(119	)		(195)
Severance charges (d)		(102	)		—			(201)
Stock-based compensation		(138	)		(164	)		(189)
Other, net (e), (f)		(281	)		(89	)		(180)
Total unallocated items		(50	)		4			(1,247)
Total consolidated operating profit	$	5,436		$	5,592		$	4,505

^(a)  FAS pension expense in 2015 and 2014 was less than in 2013 primarily due to the June 2014 plan amendments to certain of our defined benefit pension plans to freeze future retirement benefits, partially offset by the impact of using new longevity assumptions (Note 11).

^(b)  The higher CAS pension cost primarily reflects the impact of phasing in CAS Harmonization.

^(c)  We recognized non-cash goodwill impairment charges related to the Technical Services reporting unit within our MFC business segment in 2014 and 2013. See Note 1 for more information.

^(d)  See Note 15 for information on charges related to certain severance actions at our business segments. Severance charges for initiatives that are not significant are included in business segment operating profit.

^(e)  Other, net in 2015 includes a non-cash asset impairment charge of approximately $90 million related to our decision to divest Lockheed Martin Commercial Flight Training (LMCFT) in 2016. This charge was partially offset by a net deferred tax benefit of about $80 million, which is recorded in income tax expense. The net impact reduced net earnings by about $10 million.

^(f)  Other, net in 2015 includes approximately $45 million of non-recoverable transaction costs associated with the acquisition of Sikorsky and the strategic review of our government IT and technical services businesses.

Selected Financial Data by Business Segment (continued)

	2015		2014		2013
Intersegment sales
Aeronautics	$	102	$	104	$	203
Information Systems & Global Solutions		53		12		14
Missiles and Fire Control		313		255		220
Mission Systems and Training		1,529		1,243		1,030
Space Systems		145		136		119
Total intersegment sales	$	2,142	$	1,750	$	1,586
Depreciation and amortization
Aeronautics	$	317	$	322	$	318
Information Systems & Global Solutions		101		47		48
Missiles and Fire Control		99		99		98
Mission Systems and Training		203		175		194
Space Systems		208		244		225
Total business segment depreciation and amortization		928		887		883
Corporate activities		98		107		107
Total depreciation and amortization	$	1,026	$	994	$	990
Capital expenditures
Aeronautics	$	387	$	283	$	271
Information Systems & Global Solutions		31		18		33
Missiles and Fire Control		120		142		128
Mission Systems and Training		169		164		146
Space Systems		172		172		187
Total business segment capital expenditures		879		779		765
Corporate activities		60		66		71
Total capital expenditures	$	939	$	845	$	836

Net Sales By Customer Category

Net sales by customer category were as follows (in millions):

	2015		2014		2013
U.S. Government
Aeronautics	$	11,195	$	10,704	$	11,025
Information Systems & Global Solutions		4,990		5,204		5,823
Missiles and Fire Control		4,150		4,509		4,069
Mission Systems and Training		6,961		6,752		7,132
Space Systems		8,845		8,921		9,124
Total U.S. Government net sales	$	36,141	$	36,090	$	37,173
International (a)
Aeronautics	$	4,328	$	4,183	$	3,078
Information Systems & Global Solutions		520		401		262
Missiles and Fire Control		2,449		2,421		2,535
Mission Systems and Training		2,016		1,921		1,792
Space Systems		218		89		101
Total international net sales	$	9,531	$	9,015	$	7,768
U.S. Commercial and Other
Aeronautics	$	47	$	33	$	20
Information Systems & Global Solutions		86		49		30
Missiles and Fire Control		171		162		191
Mission Systems and Training		114		59		113
Space Systems		42		192		63
Total U.S. commercial and other net sales	$	460	$	495	$	417
Total net sales	$	46,132	$	45,600	$	45,358

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

Selected Financial Data By Business Segment

Total assets and customer advances and amounts in excess of costs incurred for each of our business segments were as follows (in millions):

	2015		2014
Assets (a)
Aeronautics	$	6,618	$	6,042
Information Systems & Global Solutions		4,206		4,268
Missiles and Fire Control		4,027		3,977
Mission Systems and Training		19,187		7,465
Space Systems		4,861		4,732
Total business segment assets		38,899		26,484
Corporate assets (b)		10,229		10,562
Total assets	$	49,128	$	37,046
Customer advances and amounts in excess of costs incurred
Aeronautics	$	2,045	$	2,191
Information Systems & Global Solutions		285		227
Missiles and Fire Control		1,766		1,803
Mission Systems and Training		2,415		1,148
Space Systems		477		406
Total customer advances and amounts in excess of costs incurred	$	6,988	$	5,775

^(a)  We have no significant long-lived assets located in foreign countries.

^(b)  Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables and investments held in a separate trust.