INFORMATION ON BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 24, 2017

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 24, 2017			September 25, 2016			September 24, 2017			September 25, 2016
Net sales
Aeronautics	$	4,771		$	4,188		$	14,102		$	12,362
Missiles and Fire Control	1,793			1,737			4,919			4,851
Rotary and Mission Systems	3,353			3,346			9,864			9,653
Space Systems	2,252			2,280			7,026			6,630
Total net sales	$	12,169		$	11,551		$	35,911		$	33,496
Operating profit
Aeronautics	$	517		$	437		$	1,503		$	1,335
Missiles and Fire Control	270			289			757			763
Rotary and Mission Systems	244			247			606			678
Space Systems ^(a)	218			450			762			1,034
Total business segment operating profit	1,249			1,423			3,628			3,810
Unallocated items
FAS/CAS pension adjustment
FAS pension expense	(342		)	(256		)	(1,030		)	(758		)
Less: CAS pension cost	562			482			1,686			1,430
FAS/CAS pension adjustment	220			226			656			672
Stock-based compensation	(32		)	(28		)	(133		)	(124		)
Severance charges	—			—			—			(80		)
Other, net ^{(b) (c)}	(9		)	(33		)	(89		)	(157		)
Total unallocated items	179			165			434			311
Total consolidated operating profit	$	1,428		$	1,588		$	4,062		$	4,121
Intersegment sales
Aeronautics	$	33		$	30		$	98		$	105
Missiles and Fire Control	104			81			253			225
Rotary and Mission Systems	452			469			1,438			1,382
Space Systems	31			21			76			90
Total intersegment sales	$	620		$	601		$	1,865		$	1,802

^(a)

On August 24, 2016, our ownership interest in the AWE joint venture increased from 33% to 51% and we were required to change our accounting for this investment from the equity method to consolidation. As a result of the increased ownership interest, we recognized a non-cash gain of $127 million at our Space Systems business segment, which increased net earnings from continuing operations by $104 million ($0.34 per share) in the quarter and nine months ended September 25, 2016. See “Note 1 – Basis of Presentation” for more information.


^(b)	During the nine months ended September 24, 2017, we recognized a $64 million charge, which represents our portion of a noncash asset impairment charge recorded by our equity method investee, Advanced Military Maintenance, Repair and Overhaul Center LLC (AMMROC). See “Note 10 – Other” (under the caption “Equity Method Investee Impairment”) for more information.


^(c)	Includes $17 million and $82 million of corporate overhead costs incurred during the quarter and nine months ended September 25, 2016 that were previously allocated to our former IS&GS business. See “Note 3 – Divestiture” for more information.

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



	September 24, 2017		December 31, 2016
Assets
Aeronautics	$	7,918	$	7,896
Missiles and Fire Control	4,510		4,000
Rotary and Mission Systems	18,500		18,367
Space Systems	5,425		5,250
Total business segment assets	36,353		35,513
Corporate assets ^(a)	12,593		12,293
Total assets	$	48,946	$	47,806


^(a)	Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans.