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INFORMATION ON BUSINESS SEGMENTS (Tables) | 9 Months Ended
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Sep. 29, 2019
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 |  | Nine Months Ended
|  | September 29, 2019 |  | September 30, 2018 |  | September 29, 2019 |  | September 30, 2018
Net sales |  |  |  |  |  |  |  |  |
Aeronautics |  | $ | 6,178 |  |  |  | $ | 5,642 |  |  |  | $ | 17,312 |  |  |  | $ | 15,361 |  |
Missiles and Fire Control |  | 2,601 |  |  |  | 2,273 |  |  |  | 7,362 |  |  |  | 6,035 |  |
Rotary and Mission Systems |  | 3,709 |  |  |  | 3,848 |  |  |  | 11,239 |  |  |  | 10,637 |  |
Space |  | 2,683 |  |  |  | 2,555 |  |  |  | 8,021 |  |  |  | 7,318 |  |
Total net sales |  | $ | 15,171 |  |  |  | $ | 14,318 |  |  |  | $ | 43,934 |  |  |  | $ | 39,351 |  |
Operating profit |  |  |  |  |  |  |  |  |
Aeronautics |  | $ | 665 |  |  |  | $ | 600 |  |  |  | $ | 1,842 |  |  |  | $ | 1,646 |  |
Missiles and Fire Control |  | 349 |  |  |  | 332 |  |  |  | 1,093 |  |  |  | 872 |  |
Rotary and Mission Systems |  | 342 |  |  |  | 361 |  |  |  | 1,068 |  |  |  | 1,013 |  |
Space |  | 309 |  |  |  | 293 |  |  |  | 931 |  |  |  | 831 |  |
Total business segment operating profit |  | 1,665 |  |  |  | 1,586 |  |  |  | 4,934 |  |  |  | 4,362 |  |
Unallocated items |  |  |  |  |  |  |  |  |
FAS/CAS operating adjustment (a) |  | 513 |  |  |  | 451 |  |  |  | 1,537 |  |  |  | 1,353 |  |
Stock-based compensation |  | (54 | ) |  |  | (50 | ) |  |  | (158 | ) |  |  | (148 | ) |
Severance and restructuring charges (b) |  | — |  |  |  | — |  |  |  | — |  |  |  | (96 | ) |
Other, net |  | (19 | ) |  |  | (24 | ) |  |  | 83 |  |  |  | 12 |  |
Total unallocated items |  | 440 |  |  |  | 377 |  |  |  | 1,462 |  |  |  | 1,121 |  |
Total consolidated operating profit |  | $ | 2,105 |  |  |  | $ | 1,963 |  |  |  | $ | 6,396 |  |  |  | $ | 5,483 |  |
Intersegment sales |  |  |  |  |  |  |  |  |
Aeronautics |  | $ | 58 |  |  |  | $ | 35 |  |  |  | $ | 147 |  |  |  | $ | 87 |  |
Missiles and Fire Control |  | 107 |  |  |  | 122 |  |  |  | 372 |  |  |  | 330 |  |
Rotary and Mission Systems |  | 530 |  |  |  | 544 |  |  |  | 1,648 |  |  |  | 1,509 |  |
Space |  | 91 |  |  |  | 63 |  |  |  | 244 |  |  |  | 156 |  |
Total intersegment sales |  | $ | 786 |  |  |  | $ | 764 |  |  |  | $ | 2,411 |  |  |  | $ | 2,082 |  |
(a) | The FAS/CAS operating adjustment represents the difference between the service cost component of financial accounting standards (FAS) pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS.
(b) | Unallocated items for the nine months ended September 30, 2018 include charges totaling $96 million ($76 million, or $0.26 per share, after tax) related to certain severance and restructuring actions at our RMS business segment. See “Note 11 – Other” (under the caption “Severance and Restructuring Charges”) for more information.
Our total net FAS/CAS pension adjustment for the quarters and nine months ended September 29, 2019 and September 30, 2018, including the service and non-service cost components of FAS pension expense for our qualified defined benefit pension plans, were as follows (in millions):
|  | Quarters Ended |  | Nine Months Ended
|  | September 29, 2019 |  | September 30, 2018 |  | September 29, 2019 |  | September 30, 2018
Total FAS expense and CAS costs |  |  |  |  |  |  |  |  |  |  |  |
FAS pension expense |  | $ | (274 | ) |  |  | $ | (356 | ) |  |  | $ | (820 | ) |  |  | $ | (1,069 | ) |
Less: CAS pension cost |  | 642 |  |  |  | 608 |  |  |  | 1,924 |  |  |  | 1,825 |  |
Net FAS/CAS pension adjustment |  | $ | 368 |  |  |  | $ | 252 |  |  |  | $ | 1,104 |  |  |  | $ | 756 |  |
Service and non-service cost reconciliation |  |  |  |  |  |  |  |  |  |  |  |
FAS pension service cost |  | $ | (129 | ) |  |  | $ | (157 | ) |  |  | $ | (387 | ) |  |  | $ | (472 | ) |
Less: CAS pension cost |  | 642 |  |  |  | 608 |  |  |  | 1,924 |  |  |  | 1,825 |  |
FAS/CAS operating adjustment |  | 513 |  |  |  | 451 |  |  |  | 1,537 |  |  |  | 1,353 |  |
Non-operating FAS pension cost(a) |  | (145 | ) |  |  | (199 | ) |  |  | (433 | ) |  |  | (597 | ) |
Net FAS/CAS pension adjustment |  | $ | 368 |  |  |  | $ | 252 |  |  |  | $ | 1,104 |  |  |  | $ | 756 |  |
(a) The non-service cost components of net periodic benefit cost relate only to our qualified defined benefit pension plans. In addition to the non-service cost components in the table above, we incurred similar costs for our other postretirement benefit plans of $30 million and $87 million for the quarter and nine months ended September 29, 2019 and $16 million and $49 million for the quarter and nine months ended September 30, 2018. Net sales by products and services, contract type, customer, and geographic region were as follows (in millions):
|  | Quarter Ended September 29, 2019
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 5,340 |  |  | $ | 2,172 |  |  | $ | 2,982 |  |  | $ | 2,234 |  |  | $ | 12,728 |
Services |  | 838 |  |  | 429 |  |  | 727 |  |  | 449 |  |  | 2,443 |
Total net sales |  | $ | 6,178 |  |  | $ | 2,601 |  |  | $ | 3,709 |  |  | $ | 2,683 |  |  | $ | 15,171 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 4,567 |  |  | $ | 1,681 |  |  | $ | 2,536 |  |  | $ | 527 |  |  | $ | 9,311 |
Cost-reimbursable |  | 1,611 |  |  | 920 |  |  | 1,173 |  |  | 2,156 |  |  | 5,860 |
Total net sales |  | $ | 6,178 |  |  | $ | 2,601 |  |  | $ | 3,709 |  |  | $ | 2,683 |  |  | $ | 15,171 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 3,509 |  |  | $ | 1,995 |  |  | $ | 2,763 |  |  | $ | 2,332 |  |  | $ | 10,599 |
International (a) |  | 2,631 |  |  | 572 |  |  | 804 |  |  | 343 |  |  | 4,350 |
U.S. commercial and other |  | 38 |  |  | 34 |  |  | 142 |  |  | 8 |  |  | 222 |
Total net sales |  | $ | 6,178 |  |  | $ | 2,601 |  |  | $ | 3,709 |  |  | $ | 2,683 |  |  | $ | 15,171 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,547 |  |  | $ | 2,029 |  |  | $ | 2,905 |  |  | $ | 2,340 |  |  | $ | 10,821 |
Asia Pacific |  | 1,046 |  |  | 107 |  |  | 317 |  |  | 17 |  |  | 1,487 |
Europe |  | 1,106 |  |  | 138 |  |  | 168 |  |  | 326 |  |  | 1,738 |
Middle East |  | 455 |  |  | 318 |  |  | 206 |  |  | — |  |  | 979 |
Other |  | 24 |  |  | 9 |  |  | 113 |  |  | — |  |  | 146 |
Total net sales |  | $ | 6,178 |  |  | $ | 2,601 |  |  | $ | 3,709 |  |  | $ | 2,683 |  |  | $ | 15,171 |
|  | Nine Months Ended September 29, 2019
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 14,876 |  |  | $ | 6,051 |  |  | $ | 9,064 |  |  | $ | 6,710 |  |  | $ | 36,701 |
Services |  | 2,436 |  |  | 1,311 |  |  | 2,175 |  |  | 1,311 |  |  | 7,233 |
Total net sales |  | $ | 17,312 |  |  | $ | 7,362 |  |  | $ | 11,239 |  |  | $ | 8,021 |  |  | $ | 43,934 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 12,777 |  |  | $ | 4,660 |  |  | $ | 7,681 |  |  | $ | 1,585 |  |  | $ | 26,703 |
Cost-reimbursable |  | 4,535 |  |  | 2,702 |  |  | 3,558 |  |  | 6,436 |  |  | 17,231 |
Total net sales |  | $ | 17,312 |  |  | $ | 7,362 |  |  | $ | 11,239 |  |  | $ | 8,021 |  |  | $ | 43,934 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 10,420 |  |  | $ | 5,528 |  |  | $ | 8,113 |  |  | $ | 6,900 |  |  | $ | 30,961 |
International (a) |  | 6,736 |  |  | 1,717 |  |  | 2,773 |  |  | 1,098 |  |  | 12,324 |
U.S. commercial and other |  | 156 |  |  | 117 |  |  | 353 |  |  | 23 |  |  | 649 |
Total net sales |  | $ | 17,312 |  |  | $ | 7,362 |  |  | $ | 11,239 |  |  | $ | 8,021 |  |  | $ | 43,934 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 10,576 |  |  | $ | 5,645 |  |  | $ | 8,466 |  |  | $ | 6,923 |  |  | $ | 31,610 |
Asia Pacific |  | 2,736 |  |  | 315 |  |  | 1,065 |  |  | 48 |  |  | 4,164 |
Europe |  | 2,751 |  |  | 363 |  |  | 509 |  |  | 1,035 |  |  | 4,658 |
Middle East |  | 1,127 |  |  | 1,003 |  |  | 738 |  |  | 15 |  |  | 2,883 |
Other |  | 122 |  |  | 36 |  |  | 461 |  |  | — |  |  | 619 |
Total net sales |  | $ | 17,312 |  |  | $ | 7,362 |  |  | $ | 11,239 |  |  | $ | 8,021 |  |  | $ | 43,934 |
(a) | International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers.
|  | Quarter Ended September 30, 2018
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 4,799 |  |  | $ | 1,873 |  |  | $ | 3,132 |  |  | $ | 2,114 |  |  | $ | 11,918 |
Services |  | 843 |  |  | 400 |  |  | 716 |  |  | 441 |  |  | 2,400 |
Total net sales |  | $ | 5,642 |  |  | $ | 2,273 |  |  | $ | 3,848 |  |  | $ | 2,555 |  |  | $ | 14,318 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 4,163 |  |  | $ | 1,536 |  |  | $ | 2,710 |  |  | $ | 534 |  |  | $ | 8,943 |
Cost-reimbursable |  | 1,479 |  |  | 737 |  |  | 1,138 |  |  | 2,021 |  |  | 5,375 |
Total net sales |  | $ | 5,642 |  |  | $ | 2,273 |  |  | $ | 3,848 |  |  | $ | 2,555 |  |  | $ | 14,318 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 3,700 |  |  | $ | 1,625 |  |  | $ | 2,765 |  |  | $ | 2,174 |  |  | $ | 10,264 |
International (a) |  | 1,909 |  |  | 600 |  |  | 959 |  |  | 362 |  |  | 3,830 |
U.S. commercial and other |  | 33 |  |  | 48 |  |  | 124 |  |  | 19 |  |  | 224 |
Total net sales |  | $ | 5,642 |  |  | $ | 2,273 |  |  | $ | 3,848 |  |  | $ | 2,555 |  |  | $ | 14,318 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,733 |  |  | $ | 1,673 |  |  | $ | 2,889 |  |  | $ | 2,193 |  |  | $ | 10,488 |
Asia Pacific |  | 854 |  |  | 126 |  |  | 377 |  |  | 8 |  |  | 1,365 |
Europe |  | 691 |  |  | 112 |  |  | 213 |  |  | 324 |  |  | 1,340 |
Middle East |  | 326 |  |  | 347 |  |  | 202 |  |  | 30 |  |  | 905 |
Other |  | 38 |  |  | 15 |  |  | 167 |  |  | — |  |  | 220 |
Total net sales |  | $ | 5,642 |  |  | $ | 2,273 |  |  | $ | 3,848 |  |  | $ | 2,555 |  |  | $ | 14,318 |
|  | Nine Months Ended September 30, 2018
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 13,080 |  |  | $ | 4,935 |  |  | $ | 8,753 |  |  | $ | 6,062 |  |  | $ | 32,830 |
Services |  | 2,281 |  |  | 1,100 |  |  | 1,884 |  |  | 1,256 |  |  | 6,521 |
Total net sales |  | $ | 15,361 |  |  | $ | 6,035 |  |  | $ | 10,637 |  |  | $ | 7,318 |  |  | $ | 39,351 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 11,284 |  |  | $ | 4,043 |  |  | $ | 7,368 |  |  | $ | 1,394 |  |  | $ | 24,089 |
Cost-reimbursable |  | 4,077 |  |  | 1,992 |  |  | 3,269 |  |  | 5,924 |  |  | 15,262 |
Total net sales |  | $ | 15,361 |  |  | $ | 6,035 |  |  | $ | 10,637 |  |  | $ | 7,318 |  |  | $ | 39,351 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 9,909 |  |  | $ | 4,215 |  |  | $ | 7,729 |  |  | $ | 6,114 |  |  | $ | 27,967 |
International (a) |  | 5,321 |  |  | 1,696 |  |  | 2,562 |  |  | 1,162 |  |  | 10,741 |
U.S. commercial and other |  | 131 |  |  | 124 |  |  | 346 |  |  | 42 |  |  | 643 |
Total net sales |  | $ | 15,361 |  |  | $ | 6,035 |  |  | $ | 10,637 |  |  | $ | 7,318 |  |  | $ | 39,351 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 10,040 |  |  | $ | 4,339 |  |  | $ | 8,075 |  |  | $ | 6,156 |  |  | $ | 28,610 |
Asia Pacific |  | 2,394 |  |  | 349 |  |  | 1,002 |  |  | 62 |  |  | 3,807 |
Europe |  | 1,877 |  |  | 227 |  |  | 592 |  |  | 1,082 |  |  | 3,778 |
Middle East |  | 903 |  |  | 1,091 |  |  | 516 |  |  | 18 |  |  | 2,528 |
Other |  | 147 |  |  | 29 |  |  | 452 |  |  | — |  |  | 628 |
Total net sales |  | $ | 15,361 |  |  | $ | 6,035 |  |  | $ | 10,637 |  |  | $ | 7,318 |  |  | $ | 39,351 |
(a) | International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers.
Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, multi-variant, stealth fighter aircraft. Net sales for the F-35 program represented approximately 28% and 27% of our total consolidated net sales for the quarter and nine months ended September 29, 2019 and 27% and 26% of our total consolidated net sales for the quarter and nine months ended September 30, 2018. Total assets for each of our business segments were as follows (in millions):
|  | September 29, 2019 |  | December 31, 2018
Assets |  |  |  |  |  |
Aeronautics |  | $ | 10,441 |  |  |  | $ | 8,435 |  |
Missiles and Fire Control |  | 5,276 |  |  |  | 5,017 |  |
Rotary and Mission Systems |  | 18,843 |  |  |  | 18,333 |  |
Space |  | 5,821 |  |  |  | 5,445 |  |
Total business segment assets |  | 40,381 |  |  |  | 37,230 |  |
Corporate assets (a) |  | 8,894 |  |  |  | 7,646 |  |
Total assets |  | $ | 49,275 |  |  |  | $ | 44,876 |  |
(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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