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Information on Business Segments (Tables) | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Summary Of Financial Information For Each Business Segment | Total assets for each of our business segments were as follows (in millions):
|  | 2018 |  |  | 2017 |
Assets (a) |  |  |  |
Aeronautics |  | $ | 8,435 |  |  | $ | 7,713 |
Missiles and Fire Control |  | 5,017 |  |  | 4,577 |
Rotary and Mission Systems |  | 18,333 |  |  | 18,292 |
Space |  | 5,445 |  |  | 5,240 |
Total business segment assets |  | 37,230 |  |  | 35,822 |
Corporate assets (b) |  | 7,646 |  |  | 10,798 |
Total assets |  | $ | 44,876 |  |  | $ | 46,620 |
(a) | We have no long-lived assets with material carrying values 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.
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):
|  | 2018
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 18,207 |  |  | $ | 6,945 |  |  | $ | 11,714 |  |  | $ | 8,139 |  |  | $ | 45,005 |
Services |  | 3,035 |  |  | 1,517 |  |  | 2,536 |  |  | 1,669 |  |  | 8,757 |
Total net sales |  | $ | 21,242 |  |  | $ | 8,462 |  |  | $ | 14,250 |  |  | $ | 9,808 |  |  | $ | 53,762 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 15,719 |  |  | $ | 5,653 |  |  | $ | 9,975 |  |  | $ | 1,892 |  |  | $ | 33,239 |
Cost-reimbursable |  | 5,523 |  |  | 2,809 |  |  | 4,275 |  |  | 7,916 |  |  | 20,523 |
Total net sales |  | $ | 21,242 |  |  | $ | 8,462 |  |  | $ | 14,250 |  |  | $ | 9,808 |  |  | $ | 53,762 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 13,321 |  |  | $ | 6,088 |  |  | $ | 10,083 |  |  | $ | 8,224 |  |  | $ | 37,716 |
International (a) |  | 7,735 |  |  | 2,190 |  |  | 3,693 |  |  | 1,538 |  |  | 15,156 |
U.S. commercial and other |  | 186 |  |  | 184 |  |  | 474 |  |  | 46 |  |  | 890 |
Total net sales |  | $ | 21,242 |  |  | $ | 8,462 |  |  | $ | 14,250 |  |  | $ | 9,808 |  |  | $ | 53,762 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 13,507 |  |  | $ | 6,272 |  |  | $ | 10,557 |  |  | $ | 8,270 |  |  | $ | 38,606 |
Asia Pacific |  | 3,335 |  |  | 427 |  |  | 1,433 |  |  | 85 |  |  | 5,280 |
Europe |  | 2,837 |  |  | 321 |  |  | 829 |  |  | 1,416 |  |  | 5,403 |
Middle East |  | 1,380 |  |  | 1,404 |  |  | 781 |  |  | 37 |  |  | 3,602 |
Other |  | 183 |  |  | 38 |  |  | 650 |  |  | — |  |  | 871 |
Total net sales |  | $ | 21,242 |  |  | $ | 8,462 |  |  | $ | 14,250 |  |  | $ | 9,808 |  |  | $ | 53,762 |
(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.
|  | 2017
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 16,981 |  |  | $ | 5,940 |  |  | $ | 11,398 |  |  | $ | 8,183 |  |  | $ | 42,502 |
Services |  | 2,429 |  |  | 1,342 |  |  | 2,265 |  |  | 1,422 |  |  | 7,458 |
Total net sales |  | $ | 19,410 |  |  | $ | 7,282 |  |  | $ | 13,663 |  |  | $ | 9,605 |  |  | $ | 49,960 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 13,828 |  |  | $ | 5,102 |  |  | $ | 10,059 |  |  | $ | 2,058 |  |  | $ | 31,047 |
Cost-reimbursable |  | 5,582 |  |  | 2,180 |  |  | 3,604 |  |  | 7,547 |  |  | 18,913 |
Total net sales |  | $ | 19,410 |  |  | $ | 7,282 |  |  | $ | 13,663 |  |  | $ | 9,605 |  |  | $ | 49,960 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 12,609 |  |  | $ | 4,467 |  |  | $ | 9,715 |  |  | $ | 8,088 |  |  | $ | 34,879 |
International (a) |  | 6,641 |  |  | 2,672 |  |  | 3,575 |  |  | 1,446 |  |  | 14,334 |
U.S. commercial and other |  | 160 |  |  | 143 |  |  | 373 |  |  | 71 |  |  | 747 |
Total net sales |  | $ | 19,410 |  |  | $ | 7,282 |  |  | $ | 13,663 |  |  | $ | 9,605 |  |  | $ | 49,960 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 12,769 |  |  | $ | 4,610 |  |  | $ | 10,088 |  |  | $ | 8,159 |  |  | $ | 35,626 |
Asia Pacific |  | 2,823 |  |  | 516 |  |  | 1,344 |  |  | 92 |  |  | 4,775 |
Europe |  | 2,331 |  |  | 305 |  |  | 927 |  |  | 1,270 |  |  | 4,833 |
Middle East |  | 1,316 |  |  | 1,798 |  |  | 572 |  |  | 81 |  |  | 3,767 |
Other |  | 171 |  |  | 53 |  |  | 732 |  |  | 3 |  |  | 959 |
Total net sales |  | $ | 19,410 |  |  | $ | 7,282 |  |  | $ | 13,663 |  |  | $ | 9,605 |  |  | $ | 49,960 |
(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.
|  | 2016
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 15,066 |  |  | $ | 5,602 |  |  | $ | 11,401 |  |  | $ | 8,012 |  |  | $ | 40,081 |
Services |  | 2,227 |  |  | 1,187 |  |  | 2,194 |  |  | 1,601 |  |  | 7,209 |
Total net sales |  | $ | 17,293 |  |  | $ | 6,789 |  |  | $ | 13,595 |  |  | $ | 9,613 |  |  | $ | 47,290 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 11,926 |  |  | $ | 4,926 |  |  | $ | 9,871 |  |  | $ | 2,324 |  |  | $ | 29,047 |
Cost-reimbursable |  | 5,367 |  |  | 1,863 |  |  | 3,724 |  |  | 7,289 |  |  | 18,243 |
Total net sales |  | $ | 17,293 |  |  | $ | 6,789 |  |  | $ | 13,595 |  |  | $ | 9,613 |  |  | $ | 47,290 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 11,265 |  |  | $ | 4,304 |  |  | $ | 9,350 |  |  | $ | 8,516 |  |  | $ | 33,435 |
International (a) |  | 5,825 |  |  | 2,344 |  |  | 3,791 |  |  | 719 |  |  | 12,679 |
U.S. commercial and other |  | 203 |  |  | 141 |  |  | 454 |  |  | 378 |  |  | 1,176 |
Total net sales |  | $ | 17,293 |  |  | $ | 6,789 |  |  | $ | 13,595 |  |  | $ | 9,613 |  |  | $ | 47,290 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 11,468 |  |  | $ | 4,445 |  |  | $ | 9,804 |  |  | $ | 8,894 |  |  | $ | 34,611 |
Asia Pacific |  | 2,077 |  |  | 341 |  |  | 1,194 |  |  | 98 |  |  | 3,710 |
Europe |  | 2,020 |  |  | 237 |  |  | 1,045 |  |  | 475 |  |  | 3,777 |
Middle East |  | 1,423 |  |  | 1,739 |  |  | 429 |  |  | 146 |  |  | 3,737 |
Other |  | 305 |  |  | 27 |  |  | 1,123 |  |  | — |  |  | 1,455 |
Total net sales |  | $ | 17,293 |  |  | $ | 6,789 |  |  | $ | 13,595 |  |  | $ | 9,613 |  |  | $ | 47,290 |
(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.
Summary operating results for each of our business segments were as follows (in millions):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Net sales |  |  |  |  |  |
Aeronautics |  | $ | 21,242 |  |  | $ | 19,410 |  |  | $ | 17,293 |
Missiles and Fire Control |  | 8,462 |  |  | 7,282 |  |  | 6,789 |
Rotary and Mission Systems |  | 14,250 |  |  | 13,663 |  |  | 13,595 |
Space |  | 9,808 |  |  | 9,605 |  |  | 9,613 |
Total net sales |  | $ | 53,762 |  |  | $ | 49,960 |  |  | $ | 47,290 |
Operating profit |  |  |  |  |  |
Aeronautics |  | $ | 2,272 |  |  | $ | 2,176 |  |  | $ | 1,845 |
Missiles and Fire Control |  | 1,248 |  |  | 1,034 |  |  | 1,004 |
Rotary and Mission Systems |  | 1,302 |  |  | 902 |  |  | 845 |
Space (a) |  | 1,055 |  |  | 980 |  |  | 1,288 |
Total business segment operating profit |  | 5,877 |  |  | 5,092 |  |  | 4,982 |
Unallocated items |  |  |  |  |  |
FAS/CAS operating adjustment (b) |  | 1,803 |  |  | 1,613 |  |  | 1,250 |
Stock-based compensation |  | (173 | ) |  | (158 | ) |  | (149 | )
Severance and restructuring charges (c) |  | (96 | ) |  | — |  |  | (80 | )
Other, net (d) |  | (77 | ) |  | 197 |  |  | (115 | )
Total unallocated, net |  | 1,457 |  |  | 1,652 |  |  | 906 |
Total consolidated operating profit |  | $ | 7,334 |  |  | $ | 6,744 |  |  | $ | 5,888 |
(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 business segment, which increased net earnings from continuing operations by $104 million ($0.34 per share) in 2016. See “Note 3 – Acquisition and Divestitures” 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 CAS. For a detail of the FAS/CAS operating adjustment and the total net FAS/CAS pension adjustment, see the table below.
(c) | See “Note 15 – Severance and Restructuring Charges” for information on charges related to certain severance actions at our business segments. Severance and restructuring charges for initiatives that are not significant are included in business segment operating profit.
(d) | Other, net in 2018 includes a non-cash asset impairment charge of $110 million related to our equity method investee, AMMROC (see “Note 1 – Significant Accounting Policies”). Other, net in 2017 includes a previously deferred non-cash gain of $198 million related to properties sold in 2015 as a result of completing our remaining obligations (see “Note 8 – Property, Plant and Equipment, net”) and a $64 million charge, which represents our portion of a non-cash asset impairment charge recorded by AMMROC (see “Note 1 – Significant Accounting Policies”).
Total net FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension expense, were as follows (in millions):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Total FAS expense and CAS costs |  |  |  |  |  |
FAS pension expense |  | $ | (1,431 | ) |  | $ | (1,372 | ) |  | $ | (1,019 | )
Less: CAS pension cost |  | 2,433 |  |  | 2,248 |  |  | 1,921 |
Net FAS/CAS pension adjustment |  | $ | 1,002 |  |  | $ | 876 |  |  | $ | 902 |
Service and non-service cost reconciliation |  |  |  |  |  |
FAS pension service cost |  | (630 | ) |  | (635 | ) |  | (671 | )
Less: CAS pension cost |  | 2,433 |  |  | 2,248 |  |  | 1,921 |
FAS/CAS operating adjustment |  | 1,803 |  |  | 1,613 |  |  | 1,250 |
Non-operating FAS pension expense (a) |  | (801 | ) |  | (737 | ) |  | (348 | )
Net FAS/CAS pension adjustment |  | $ | 1,002 |  |  | $ | 876 |  |  | $ | 902 |
(a) | We record the non-service cost components of net periodic benefit cost as part of other non-operating expense, net in the consolidated statement of earnings. The non-service cost components in the table above relate only to our qualified defined benefit pension plans. We incurred total non-service costs for our qualified defined benefit pension plans in the table above, along with similar costs for our other postretirement benefit plans of $67 million, $109 million, and $123 million for the years ended 2018, 2017 and 2016.
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 expense (both service and non-service).
|  | 2018 |  |  | 2017 |  |  | 2016 |
Intersegment sales |  |  |  |  |  |
Aeronautics |  | $ | 120 |  |  | $ | 122 |  |  | $ | 142 |
Missiles and Fire Control |  | 423 |  |  | 355 |  |  | 299 |
Rotary and Mission Systems |  | 2,026 |  |  | 2,020 |  |  | 1,854 |
Space |  | 237 |  |  | 111 |  |  | 110 |
Total intersegment sales |  | $ | 2,806 |  |  | $ | 2,608 |  |  | $ | 2,405 |
Depreciation and amortization |  |  |  |  |  |
Aeronautics |  | $ | 304 |  |  | $ | 311 |  |  | $ | 299 |
Missiles and Fire Control |  | 105 |  |  | 99 |  |  | 105 |
Rotary and Mission Systems |  | 458 |  |  | 468 |  |  | 476 |
Space |  | 229 |  |  | 245 |  |  | 212 |
Total business segment depreciation and amortization |  | 1,096 |  |  | 1,123 |  |  | 1,092 |
Corporate activities |  | 65 |  |  | 72 |  |  | 75 |
Total depreciation and amortization (a) |  | $ | 1,161 |  |  | $ | 1,195 |  |  | $ | 1,167 |
Capital expenditures |  |  |  |  |  |
Aeronautics |  | $ | 460 |  |  | $ | 371 |  |  | $ | 358 |
Missiles and Fire Control |  | 244 |  |  | 156 |  |  | 167 |
Rotary and Mission Systems |  | 255 |  |  | 308 |  |  | 271 |
Space |  | 255 |  |  | 179 |  |  | 183 |
Total business segment capital expenditures |  | 1,214 |  |  | 1,014 |  |  | 979 |
Corporate activities |  | 64 |  |  | 163 |  |  | 75 |
Total capital expenditures (b) |  | $ | 1,278 |  |  | $ | 1,177 |  |  | $ | 1,054 |
(a) | Total depreciation and amortization in the table above excludes $48 million for the year ended December 31, 2016 related to the former IS&GS business segment. These amounts are included in depreciation and amortization in our consolidated statement of cash flows as we did not reclassify our cash flows to exclude the IS&GS business segment. See “Note 3 – Acquisition and Divestitures” for more information.
(b) | Total capital expenditures in the table above excludes $9 million for the year ended December 31, 2016 related to the former IS&GS business segment. These amounts are included in capital expenditures in our consolidated statement of cash flows as we did not reclassify our cash flows to exclude the IS&GS business segment. See “Note 3 – Acquisition and Divestitures” for more information.
Total net FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension expense, were as follows (in millions):
|  | 2018 |  |  | 2017 |  |  | 2016 |
Total FAS expense and CAS costs |  |  |  |  |  |
FAS pension expense |  | $ | (1,431 | ) |  | $ | (1,372 | ) |  | $ | (1,019 | )
Less: CAS pension cost |  | 2,433 |  |  | 2,248 |  |  | 1,921 |
Net FAS/CAS pension adjustment |  | $ | 1,002 |  |  | $ | 876 |  |  | $ | 902 |
Service and non-service cost reconciliation |  |  |  |  |  |
FAS pension service cost |  | (630 | ) |  | (635 | ) |  | (671 | )
Less: CAS pension cost |  | 2,433 |  |  | 2,248 |  |  | 1,921 |
FAS/CAS operating adjustment |  | 1,803 |  |  | 1,613 |  |  | 1,250 |
Non-operating FAS pension expense (a) |  | (801 | ) |  | (737 | ) |  | (348 | )
Net FAS/CAS pension adjustment |  | $ | 1,002 |  |  | $ | 876 |  |  | $ | 902 |
(a) | We record the non-service cost components of net periodic benefit cost as part of other non-operating expense, net in the consolidated statement of earnings. The non-service cost components in the table above relate only to our qualified defined benefit pension plans. We incurred total non-service costs for our qualified defined benefit pension plans in the table above, along with similar costs for our other postretirement benefit plans of $67 million, $109 million, and $123 million for the years ended 2018, 2017 and 2016.

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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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