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INFORMATION ON BUSINESS SEGMENTS (Tables) | 6 Months Ended
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Jun. 24, 2018
Segment Reporting [Abstract] |
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 24, 2018 |  | June 25, 2017 |  | June 24, 2018 |  | June 25, 2017
Net sales |  |  |  |  |  |  |  |  |
Aeronautics |  | $ | 5,321 |  |  |  | $ | 4,922 |  |  |  | $ | 9,719 |  |  |  | $ | 9,042 |  |
Missiles and Fire Control |  | 2,085 |  |  |  | 1,784 |  |  |  | 3,762 |  |  |  | 3,333 |  |
Rotary and Mission Systems |  | 3,566 |  |  |  | 3,414 |  |  |  | 6,789 |  |  |  | 6,541 |  |
Space |  | 2,426 |  |  |  | 2,443 |  |  |  | 4,763 |  |  |  | 4,859 |  |
Total net sales |  | $ | 13,398 |  |  |  | $ | 12,563 |  |  |  | $ | 25,033 |  |  |  | $ | 23,775 |  |
Operating profit |  |  |  |  |  |  |  |  |
Aeronautics |  | $ | 572 |  |  |  | $ | 567 |  |  |  | $ | 1,046 |  |  |  | $ | 1,006 |  |
Missiles and Fire Control |  | 279 |  |  |  | 253 |  |  |  | 540 |  |  |  | 487 |  |
Rotary and Mission Systems (a) |  | 341 |  |  |  | 271 |  |  |  | 652 |  |  |  | 399 |  |
Space |  | 274 |  |  |  | 256 |  |  |  | 538 |  |  |  | 546 |  |
Total business segment operating profit |  | 1,466 |  |  |  | 1,347 |  |  |  | 2,776 |  |  |  | 2,438 |  |
Unallocated items |  |  |  |  |  |  |  |  |
FAS/CAS operating adjustment (b) |  | 451 |  |  |  | 404 |  |  |  | 902 |  |  |  | 807 |  |
Stock-based compensation |  | (60 | ) |  |  | (57 | ) |  |  | (98 | ) |  |  | (101 | ) |
Severance and restructuring charges (c) |  | (96 | ) |  |  | — |  |  |  | (96 | ) |  |  | — |  |
Other, net (d) |  | 34 |  |  |  | 22 |  |  |  | 36 |  |  |  | (26 | ) |
Total unallocated items |  | 329 |  |  |  | 369 |  |  |  | 744 |  |  |  | 680 |  |
Total consolidated operating profit |  | $ | 1,795 |  |  |  | $ | 1,716 |  |  |  | $ | 3,520 |  |  |  | $ | 3,118 |  |
Intersegment sales |  |  |  |  |  |  |  |  |
Aeronautics |  | $ | 27 |  |  |  | $ | 40 |  |  |  | $ | 52 |  |  |  | $ | 65 |  |
Missiles and Fire Control |  | 113 |  |  |  | 66 |  |  |  | 208 |  |  |  | 139 |  |
Rotary and Mission Systems |  | 504 |  |  |  | 548 |  |  |  | 965 |  |  |  | 993 |  |
Space |  | 48 |  |  |  | 19 |  |  |  | 93 |  |  |  | 45 |  |
Total intersegment sales |  | $ | 692 |  |  |  | $ | 673 |  |  |  | $ | 1,318 |  |  |  | $ | 1,242 |  |
(a) | Operating profit at our RMS business segment for the six months ended June 25, 2017 includes a charge of $120 million ($74 million, or $0.25 per share, after tax) recognized in the first quarter of 2017 for performance matters on the EADGE-T contract. See “Note 2 – Significant Accounting Policy Updates” (under the caption “Revenue Recognition”) for more information.
(b) | The FAS/CAS operating adjustment represents the difference between the service cost component of FAS pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with U.S. Government CAS. For a detail of the FAS/CAS operating adjustment and the total net FAS/CAS pension adjustment, see the table below.
(c) | Unallocated items for the quarter and six months ended June 24, 2018 include severance and restructuring charges totaling $96 million ($76 million, or $0.26 per share, after tax) associated with planned workforce reductions and the consolidation of certain operations at our RMS business segment. See “Note 11 – Other” (under the caption “Severance and Restructuring Charges”) for more information.
(d) | Other, net for the six months ended June 25, 2017 includes a $64 million charge ($40 million, or $0.14 per share, after tax) recognized in the first quarter of 2017, which represents our portion of a non-cash asset impairment charge recorded by our equity method investee, Advanced Military Maintenance, Repair and Overhaul Center LLC (AMMROC). See “Note 11 – Other” (under the caption “Equity Method Investee Impairment”) for more information.
Our total net FAS/CAS pension adjustments for the quarters and six months ended June 24, 2018 and June 25, 2017, including the service and non-service cost components of FAS pension expense, were as follows (in millions):
|  | Quarters Ended |  | Six Months Ended
|  | June 24, 2018 |  | June 25, 2017 |  | June 24, 2018 |  | June 25, 2017
Total FAS expense and CAS costs |  |  |  |  |  |  |  |  |  |  |  |
FAS pension expense |  | $ | (357 | ) |  |  | $ | (343 | ) |  |  | $ | (713 | ) |  |  | $ | (688 | ) |
Less: CAS pension cost |  | 609 |  |  |  | 562 |  |  |  | 1,217 |  |  |  | 1,124 |  |
Net FAS/CAS pension adjustment |  | $ | 252 |  |  |  | $ | 219 |  |  |  | $ | 504 |  |  |  | $ | 436 |  |
Service and non-service cost reconciliation |  |  |  |  |  |  |  |  |  |  |  |
FAS pension service cost |  | $ | (158 | ) |  |  | $ | (158 | ) |  |  | $ | (315 | ) |  |  | $ | (317 | ) |
Less: CAS pension cost |  | 609 |  |  |  | 562 |  |  |  | 1,217 |  |  |  | 1,124 |  |
FAS/CAS operating adjustment |  | 451 |  |  |  | 404 |  |  |  | 902 |  |  |  | 807 |  |
Non-operating FAS pension expense |  | (199 | ) |  |  | (185 | ) |  |  | (398 | ) |  |  | (371 | ) |
Net FAS/CAS pension adjustment |  | $ | 252 |  |  |  | $ | 219 |  |  |  | $ | 504 |  |  |  | $ | 436 |  |
We recover CAS pension cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS pension cost in each of our business segment’s net sales and cost of sales. Our consolidated financial statements must present FAS pension and other postretirement benefit plan expense calculated in accordance with FAS requirements under U.S. GAAP. The operating portion of the net FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension expense and CAS pension cost. The non-service FAS pension cost component is included in other non-operating expense, net on our consolidated statements of earnings. The net FAS/CAS pension adjustment increases or decreases CAS pension cost to equal total FAS pension cost (both service and non-service). Net sales by total products and services, contract type, customer category and geographic region for each of our business segments were as follows (in millions):
|  | Quarter Ended June 24, 2018
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 4,511 |  |  | $ | 1,709 |  |  | $ | 2,904 |  |  | $ | 2,026 |  |  | $ | 11,150 |
Services |  | 810 |  |  | 376 |  |  | 662 |  |  | 400 |  |  | 2,248 |
Total net sales |  | $ | 5,321 |  |  | $ | 2,085 |  |  | $ | 3,566 |  |  | $ | 2,426 |  |  | $ | 13,398 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 3,906 |  |  | $ | 1,395 |  |  | $ | 2,450 |  |  | $ | 460 |  |  | $ | 8,211 |
Cost-reimbursable |  | 1,415 |  |  | 690 |  |  | 1,116 |  |  | 1,966 |  |  | 5,187 |
Total net sales |  | $ | 5,321 |  |  | $ | 2,085 |  |  | $ | 3,566 |  |  | $ | 2,426 |  |  | $ | 13,398 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 3,444 |  |  | $ | 1,502 |  |  | $ | 2,608 |  |  | $ | 2,070 |  |  | $ | 9,624 |
International (a) |  | 1,835 |  |  | 542 |  |  | 822 |  |  | 344 |  |  | 3,543 |
U.S. commercial and other |  | 42 |  |  | 41 |  |  | 136 |  |  | 12 |  |  | 231 |
Total net sales |  | $ | 5,321 |  |  | $ | 2,085 |  |  | $ | 3,566 |  |  | $ | 2,426 |  |  | $ | 13,398 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,486 |  |  | $ | 1,543 |  |  | $ | 2,744 |  |  | $ | 2,082 |  |  | $ | 9,855 |
Asia Pacific |  | 786 |  |  | 125 |  |  | 301 |  |  | 31 |  |  | 1,243 |
Europe |  | 678 |  |  | 46 |  |  | 224 |  |  | 332 |  |  | 1,280 |
Middle East |  | 320 |  |  | 364 |  |  | 143 |  |  | (19 | ) |  | 808 |
Other |  | 51 |  |  | 7 |  |  | 154 |  |  | — |  |  | 212 |
Total net sales |  | $ | 5,321 |  |  | $ | 2,085 |  |  | $ | 3,566 |  |  | $ | 2,426 |  |  | $ | 13,398 |
|  | Six Months Ended June 24, 2018
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 8,281 |  |  | $ | 3,062 |  |  | $ | 5,621 |  |  | $ | 3,948 |  |  | $ | 20,912 |
Services |  | 1,438 |  |  | 700 |  |  | 1,168 |  |  | 815 |  |  | 4,121 |
Total net sales |  | $ | 9,719 |  |  | $ | 3,762 |  |  | $ | 6,789 |  |  | $ | 4,763 |  |  | $ | 25,033 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 7,121 |  |  | $ | 2,507 |  |  | $ | 4,658 |  |  | $ | 860 |  |  | $ | 15,146 |
Cost-reimbursable |  | 2,598 |  |  | 1,255 |  |  | 2,131 |  |  | 3,903 |  |  | 9,887 |
Total net sales |  | $ | 9,719 |  |  | $ | 3,762 |  |  | $ | 6,789 |  |  | $ | 4,763 |  |  | $ | 25,033 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 6,209 |  |  | $ | 2,590 |  |  | $ | 4,964 |  |  | $ | 3,940 |  |  | $ | 17,703 |
International (a) |  | 3,412 |  |  | 1,096 |  |  | 1,603 |  |  | 800 |  |  | 6,911 |
U.S. commercial and other |  | 98 |  |  | 76 |  |  | 222 |  |  | 23 |  |  | 419 |
Total net sales |  | $ | 9,719 |  |  | $ | 3,762 |  |  | $ | 6,789 |  |  | $ | 4,763 |  |  | $ | 25,033 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 6,307 |  |  | $ | 2,666 |  |  | $ | 5,186 |  |  | $ | 3,963 |  |  | $ | 18,122 |
Asia Pacific |  | 1,540 |  |  | 223 |  |  | 625 |  |  | 54 |  |  | 2,442 |
Europe |  | 1,186 |  |  | 115 |  |  | 379 |  |  | 758 |  |  | 2,438 |
Middle East |  | 577 |  |  | 744 |  |  | 314 |  |  | (12 | ) |  | 1,623 |
Other |  | 109 |  |  | 14 |  |  | 285 |  |  | — |  |  | 408 |
Total net sales |  | $ | 9,719 |  |  | $ | 3,762 |  |  | $ | 6,789 |  |  | $ | 4,763 |  |  | $ | 25,033 |
(a) | International sales include FMS contracted through the U.S. Government and direct commercial sales to international governments and other international customers.
|  | Quarter Ended June 25, 2017
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 4,206 |  |  | $ | 1,452 |  |  | $ | 2,863 |  |  | $ | 2,101 |  |  | $ | 10,622 |
Services |  | 716 |  |  | 332 |  |  | 551 |  |  | 342 |  |  | 1,941 |
Total net sales |  | $ | 4,922 |  |  | $ | 1,784 |  |  | $ | 3,414 |  |  | $ | 2,443 |  |  | $ | 12,563 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 3,312 |  |  | $ | 1,258 |  |  | $ | 2,492 |  |  | $ | 592 |  |  | $ | 7,654 |
Cost-reimbursable |  | 1,610 |  |  | 526 |  |  | 922 |  |  | 1,851 |  |  | 4,909 |
Total net sales |  | $ | 4,922 |  |  | $ | 1,784 |  |  | $ | 3,414 |  |  | $ | 2,443 |  |  | $ | 12,563 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 3,233 |  |  | $ | 1,059 |  |  | $ | 2,379 |  |  | $ | 2,105 |  |  | $ | 8,776 |
International (a) |  | 1,655 |  |  | 687 |  |  | 929 |  |  | 325 |  |  | 3,596 |
U.S. commercial and other |  | 34 |  |  | 38 |  |  | 106 |  |  | 13 |  |  | 191 |
Total net sales |  | $ | 4,922 |  |  | $ | 1,784 |  |  | $ | 3,414 |  |  | $ | 2,443 |  |  | $ | 12,563 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,267 |  |  | $ | 1,097 |  |  | $ | 2,485 |  |  | $ | 2,118 |  |  | $ | 8,967 |
Asia Pacific |  | 694 |  |  | 114 |  |  | 343 |  |  | 36 |  |  | 1,187 |
Europe |  | 599 |  |  | 82 |  |  | 245 |  |  | 288 |  |  | 1,214 |
Middle East |  | 300 |  |  | 482 |  |  | 126 |  |  | 1 |  |  | 909 |
Other |  | 62 |  |  | 9 |  |  | 215 |  |  | — |  |  | 286 |
Total net sales |  | $ | 4,922 |  |  | $ | 1,784 |  |  | $ | 3,414 |  |  | $ | 2,443 |  |  | $ | 12,563 |
|  | Six Months Ended June 25, 2017
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 7,840 |  |  | $ | 2,709 |  |  | $ | 5,511 |  |  | $ | 4,175 |  |  | $ | 20,235 |
Services |  | 1,202 |  |  | 624 |  |  | 1,030 |  |  | 684 |  |  | 3,540 |
Total net sales |  | $ | 9,042 |  |  | $ | 3,333 |  |  | $ | 6,541 |  |  | $ | 4,859 |  |  | $ | 23,775 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 6,228 |  |  | $ | 2,343 |  |  | $ | 4,728 |  |  | $ | 1,102 |  |  | $ | 14,401 |
Cost-reimbursable |  | 2,814 |  |  | 990 |  |  | 1,813 |  |  | 3,757 |  |  | 9,374 |
Total net sales |  | $ | 9,042 |  |  | $ | 3,333 |  |  | $ | 6,541 |  |  | $ | 4,859 |  |  | $ | 23,775 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 5,916 |  |  | $ | 2,136 |  |  | $ | 4,674 |  |  | $ | 4,117 |  |  | $ | 16,843 |
International (a) |  | 3,058 |  |  | 1,132 |  |  | 1,700 |  |  | 715 |  |  | 6,605 |
U.S. commercial and other |  | 68 |  |  | 65 |  |  | 167 |  |  | 27 |  |  | 327 |
Total net sales |  | $ | 9,042 |  |  | $ | 3,333 |  |  | $ | 6,541 |  |  | $ | 4,859 |  |  | $ | 23,775 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 5,984 |  |  | $ | 2,201 |  |  | $ | 4,841 |  |  | $ | 4,144 |  |  | $ | 17,170 |
Asia Pacific |  | 1,225 |  |  | 206 |  |  | 617 |  |  | 40 |  |  | 2,088 |
Europe |  | 1,102 |  |  | 157 |  |  | 447 |  |  | 622 |  |  | 2,328 |
Middle East |  | 635 |  |  | 752 |  |  | 236 |  |  | 53 |  |  | 1,676 |
Other |  | 96 |  |  | 17 |  |  | 400 |  |  | — |  |  | 513 |
Total net sales |  | $ | 9,042 |  |  | $ | 3,333 |  |  | $ | 6,541 |  |  | $ | 4,859 |  |  | $ | 23,775 |
(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):
|  | June 24, 2018 |  | December 31, 2017
Assets |  |  |  |  |  |
Aeronautics |  | $ | 8,283 |  |  |  | $ | 7,713 |  |
Missiles and Fire Control |  | 4,812 |  |  |  | 4,577 |  |
Rotary and Mission Systems |  | 18,495 |  |  |  | 18,292 |  |
Space |  | 5,502 |  |  |  | 5,240 |  |
Total business segment assets |  | 37,092 |  |  |  | 35,822 |  |
Corporate assets (a) |  | 8,033 |  |  |  | 10,798 |  |
Total assets |  | $ | 45,125 |  |  |  | $ | 46,620 |  |
(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.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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