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Information on Business Segments (Tables) | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Summary Of Financial Information For Each Business Segment | Summary operating results for each of our business segments were as follows (in millions):
|  | 2019 |  |  | 2018 |  |  | 2017 |
Net sales |  |  |  |  |  |
Aeronautics |  | $ | 23,693 |  |  | $ | 21,242 |  |  | $ | 19,410 |
Missiles and Fire Control |  | 10,131 |  |  | 8,462 |  |  | 7,282 |
Rotary and Mission Systems |  | 15,128 |  |  | 14,250 |  |  | 13,663 |
Space |  | 10,860 |  |  | 9,808 |  |  | 9,605 |
Total net sales |  | $ | 59,812 |  |  | $ | 53,762 |  |  | $ | 49,960 |
Operating profit |  |  |  |  |  |
Aeronautics |  | $ | 2,521 |  |  | $ | 2,272 |  |  | $ | 2,176 |
Missiles and Fire Control |  | 1,441 |  |  | 1,248 |  |  | 1,034 |
Rotary and Mission Systems |  | 1,421 |  |  | 1,302 |  |  | 902 |
Space |  | 1,191 |  |  | 1,055 |  |  | 980 |
Total business segment operating profit |  | 6,574 |  |  | 5,877 |  |  | 5,092 |
Unallocated items |  |  |  |  |  |
FAS/CAS operating adjustment (a) |  | 2,049 |  |  | 1,803 |  |  | 1,613 |
Stock-based compensation |  | (189 | ) |  | (173 | ) |  | (158 | )
Severance and restructuring charges (b) |  | — |  |  | (96 | ) |  | — |
Other, net (c) |  | 111 |  |  | (77 | ) |  | 197 |
Total unallocated, net |  | 1,971 |  |  | 1,457 |  |  | 1,652 |
Total consolidated operating profit |  | $ | 8,545 |  |  | $ | 7,334 |  |  | $ | 6,744 |
(a) | 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.
(b) | 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.
(c) | Other, net in 2019 includes a previously deferred non-cash gain of $51 million related to properties sold in 2015 as a result of completing our remaining obligations and a gain of $34 million for the sale of its Distributed Energy Solutions business. 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 7 – 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):
|  | 2019 |  |  | 2018 |  |  | 2017 |
Total FAS expense and CAS costs |  |  |  |  |  |
FAS pension expense |  | $ | (1,093 | ) |  | $ | (1,431 | ) |  | $ | (1,372 | )
Less: CAS pension cost |  | 2,565 |  |  | 2,433 |  |  | 2,248 |
Net FAS/CAS pension adjustment |  | $ | 1,472 |  |  | $ | 1,002 |  |  | $ | 876 |
Service and non-service cost reconciliation |  |  |  |  |  |
FAS pension service cost |  | (516 | ) |  | (630 | ) |  | (635 | )
Less: CAS pension cost |  | 2,565 |  |  | 2,433 |  |  | 2,248 |
FAS/CAS operating adjustment |  | 2,049 |  |  | 1,803 |  |  | 1,613 |
Non-operating FAS pension expense (a) |  | (577 | ) |  | (801 | ) |  | (737 | )
Net FAS/CAS pension adjustment |  | $ | 1,472 |  |  | $ | 1,002 |  |  | $ | 876 |
(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 $116 million, $67 million, and $109 million for the years ended 2019, 2018 and 2017.
We recover CAS pension and other postretirement benefit plan cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS 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 total CAS pension cost. The non-service FAS pension cost component is included in other non-operating expense, net in 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).
|  | 2019 |  |  | 2018 |  |  | 2017 |
Intersegment sales |  |  |  |  |  |
Aeronautics |  | $ | 217 |  |  | $ | 120 |  |  | $ | 122 |
Missiles and Fire Control |  | 515 |  |  | 423 |  |  | 355 |
Rotary and Mission Systems (a) |  | 1,872 |  |  | 1,759 |  |  | 1,801 |
Space |  | 352 |  |  | 237 |  |  | 111 |
Total intersegment sales |  | $ | 2,956 |  |  | $ | 2,539 |  |  | $ | 2,389 |
Depreciation and amortization |  |  |  |  |  |
Aeronautics |  | $ | 318 |  |  | $ | 304 |  |  | $ | 311 |
Missiles and Fire Control |  | 124 |  |  | 105 |  |  | 99 |
Rotary and Mission Systems |  | 464 |  |  | 458 |  |  | 468 |
Space |  | 213 |  |  | 229 |  |  | 245 |
Total business segment depreciation and amortization |  | 1,119 |  |  | 1,096 |  |  | 1,123 |
Corporate activities |  | 70 |  |  | 65 |  |  | 72 |
Total depreciation and amortization |  | $ | 1,189 |  |  | $ | 1,161 |  |  | $ | 1,195 |
Capital expenditures |  |  |  |  |  |
Aeronautics |  | $ | 526 |  |  | $ | 460 |  |  | $ | 371 |
Missiles and Fire Control |  | 300 |  |  | 244 |  |  | 156 |
Rotary and Mission Systems |  | 272 |  |  | 255 |  |  | 308 |
Space |  | 258 |  |  | 255 |  |  | 179 |
Total business segment capital expenditures |  | 1,356 |  |  | 1,214 |  |  | 1,014 |
Corporate activities |  | 128 |  |  | 64 |  |  | 163 |
Total capital expenditures |  | $ | 1,484 |  |  | $ | 1,278 |  |  | $ | 1,177 |
(a) | During 2019 a program within our RMS business segment, which primarily performed work for our Aeronautics business segment, was realigned under Aeronautics. The 2018 and 2017 RMS intersegment sales have been adjusted to reflect the current program structure.
Net Sales by Type 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):
|  | 2019
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 20,319 |  |  | $ | 8,424 |  |  | $ | 12,206 |  |  | $ | 9,104 |  |  | $ | 50,053 |
Services |  | 3,374 |  |  | 1,707 |  |  | 2,922 |  |  | 1,756 |  |  | 9,759 |
Total net sales |  | $ | 23,693 |  |  | $ | 10,131 |  |  | $ | 15,128 |  |  | $ | 10,860 |  |  | $ | 59,812 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 17,239 |  |  | $ | 6,449 |  |  | $ | 10,382 |  |  | $ | 2,135 |  |  | $ | 36,205 |
Cost-reimbursable |  | 6,454 |  |  | 3,682 |  |  | 4,746 |  |  | 8,725 |  |  | 23,607 |
Total net sales |  | $ | 23,693 |  |  | $ | 10,131 |  |  | $ | 15,128 |  |  | $ | 10,860 |  |  | $ | 59,812 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 14,776 |  |  | $ | 7,524 |  |  | $ | 10,803 |  |  | $ | 9,322 |  |  | $ | 42,425 |
International (a) |  | 8,733 |  |  | 2,465 |  |  | 3,822 |  |  | 1,511 |  |  | 16,531 |
U.S. commercial and other |  | 184 |  |  | 142 |  |  | 503 |  |  | 27 |  |  | 856 |
Total net sales |  | $ | 23,693 |  |  | $ | 10,131 |  |  | $ | 15,128 |  |  | $ | 10,860 |  |  | $ | 59,812 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 14,960 |  |  | $ | 7,666 |  |  | $ | 11,306 |  |  | $ | 9,349 |  |  | $ | 43,281 |
Asia Pacific |  | 3,882 |  |  | 420 |  |  | 1,451 |  |  | 73 |  |  | 5,826 |
Europe |  | 3,224 |  |  | 516 |  |  | 769 |  |  | 1,419 |  |  | 5,928 |
Middle East |  | 1,465 |  |  | 1,481 |  |  | 979 |  |  | 19 |  |  | 3,944 |
Other |  | 162 |  |  | 48 |  |  | 623 |  |  | — |  |  | 833 |
Total net sales |  | $ | 23,693 |  |  | $ | 10,131 |  |  | $ | 15,128 |  |  | $ | 10,860 |  |  | $ | 59,812 |
(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.
|  | 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. Total assets for each of our business segments were as follows (in millions):
|  | 2019 |  |  | 2018 |
Assets (a) |  |  |  |
Aeronautics |  | $ | 9,109 |  |  | $ | 8,435 |
Missiles and Fire Control |  | 5,030 |  |  | 5,017 |
Rotary and Mission Systems |  | 18,751 |  |  | 18,333 |
Space |  | 5,844 |  |  | 5,445 |
Total business segment assets |  | 38,734 |  |  | 37,230 |
Corporate assets (b) |  | 8,794 |  |  | 7,646 |
Total assets |  | $ | 47,528 |  |  | $ | 44,876 |
(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, assets for the portion of environmental costs that are probable of future recovery and investments held in a separate trust.

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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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