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v3.20.1

INFORMATION ON BUSINESS SEGMENTS (Tables) | 3 Months Ended
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Mar. 29, 2020
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 |
|  | March 29, 2020 |  | March 31, 2019 |
Net sales |  |  |  |  |  |  |
Aeronautics |  | $ | 6,369 |  |  |  | $ | 5,584 |  |  |
Missiles and Fire Control |  | 2,619 |  |  |  | 2,350 |  |  |
Rotary and Mission Systems |  | 3,746 |  |  |  | 3,762 |  |  |
Space |  | 2,917 |  |  |  | 2,640 |  |  |
Total net sales |  | $ | 15,651 |  |  |  | $ | 14,336 |  |  |
Operating profit |  |  |  |  |  |  |
Aeronautics |  | $ | 672 |  |  |  | $ | 585 |  |  |
Missiles and Fire Control |  | 396 |  |  |  | 417 |  |  |
Rotary and Mission Systems |  | 376 |  |  |  | 379 |  |  |
Space |  | 281 |  |  |  | 334 |  |  |
Total business segment operating profit |  | 1,725 |  |  |  | 1,715 |  |  |
Unallocated items |  |  |  |  |  |  |
FAS/CAS operating adjustment (a) |  | 469 |  |  |  | 512 |  |  |
Stock-based compensation |  | (42 | ) |  |  | (37 | ) |  |
Other, net |  | (30 | ) |  |  | 93 |  |  |
Total unallocated items |  | 397 |  |  |  | 568 |  |  |
Total consolidated operating profit |  | $ | 2,122 |  |  |  | $ | 2,283 |  |  |
Intersegment sales |  |  |  |  |  |  |
Aeronautics |  | $ | 59 |  |  |  | $ | 42 |  |  |
Missiles and Fire Control |  | 136 |  |  |  | 121 |  |  |
Rotary and Mission Systems |  | 499 |  |  |  | 499 |  |  |
Space |  | 108 |  |  |  | 68 |  |  |
Total intersegment sales |  | $ | 802 |  |  |  | $ | 730 |  |  |
(a) | The FAS/CAS operating adjustment represents the difference between the service cost component of financial accounting standards (FAS) pension income (expense) and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS.
Our total net FAS/CAS pension adjustment for the quarters ended March 29, 2020 and March 31, 2019, including the service and non-service cost components of FAS pension income (expense) for our qualified defined benefit pension plans, were as follows (in millions):
|  | Quarters Ended |
|  | March 29, 2020 |  | March 31, 2019 |
Total FAS income (expense) and CAS costs |  |  |  |  |  |  |
FAS pension income (expense) |  | $ | 30 |  |  |  | $ | (273 | ) |  |
Less: CAS pension cost |  | 494 |  |  |  | 641 |  |  |
Net FAS/CAS pension adjustment |  | $ | 524 |  |  |  | $ | 368 |  |  |
Service and non-service cost reconciliation |  |  |  |  |  |  |
FAS pension service cost |  | $ | (25 | ) |  |  | $ | (129 | ) |  |
Less: CAS pension cost |  | 494 |  |  |  | 641 |  |  |
FAS/CAS operating adjustment |  | 469 |  |  |  | 512 |  |  |
Non-operating FAS pension income (expense) |  | 55 |  |  |  | (144 | ) |  |
Net FAS/CAS pension adjustment |  | $ | 524 |  |  |  | $ | 368 |  |  |
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 income (expense) and total CAS pension cost. The non-service FAS pension income (expense) component is included in other non-operating income (expense), net in our consolidated statements of earnings. As a result, to the extent that CAS pension cost exceeds the service cost component of FAS pension income (expense), we have a favorable FAS/CAS operating adjustment. Total assets for each of our business segments were as follows (in millions):
|  | March 29, 2020 |  | December 31, 2019
Assets |  |  |  |  |  |
Aeronautics |  | $ | 10,003 |  |  |  | $ | 9,109 |  |
Missiles and Fire Control |  | 5,210 |  |  |  | 5,030 |  |
Rotary and Mission Systems |  | 18,901 |  |  |  | 18,751 |  |
Space |  | 6,164 |  |  |  | 5,844 |  |
Total business segment assets |  | 40,278 |  |  |  | 38,734 |  |
Corporate assets (a) |  | 8,970 |  |  |  | 8,794 |  |
Total assets |  | $ | 49,248 |  |  |  | $ | 47,528 |  |
(a) 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. Net sales by products and services, contract type, customer, and geographic region were as follows (in millions):
|  | Quarter Ended March 29, 2020
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 5,455 |  |  | $ | 2,275 |  |  | $ | 2,986 |  |  | $ | 2,450 |  |  | $ | 13,166 |
Services |  | 914 |  |  | 344 |  |  | 760 |  |  | 467 |  |  | 2,485 |
Total net sales |  | $ | 6,369 |  |  | $ | 2,619 |  |  | $ | 3,746 |  |  | $ | 2,917 |  |  | $ | 15,651 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 4,584 |  |  | $ | 1,718 |  |  | $ | 2,482 |  |  | $ | 519 |  |  | $ | 9,303 |
Cost-reimbursable |  | 1,785 |  |  | 901 |  |  | 1,264 |  |  | 2,398 |  |  | 6,348 |
Total net sales |  | $ | 6,369 |  |  | $ | 2,619 |  |  | $ | 3,746 |  |  | $ | 2,917 |  |  | $ | 15,651 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 4,033 |  |  | $ | 1,955 |  |  | $ | 2,788 |  |  | $ | 2,483 |  |  | $ | 11,259 |
International (a) |  | 2,321 |  |  | 660 |  |  | 855 |  |  | 420 |  |  | 4,256 |
U.S. commercial and other |  | 15 |  |  | 4 |  |  | 103 |  |  | 14 |  |  | 136 |
Total net sales |  | $ | 6,369 |  |  | $ | 2,619 |  |  | $ | 3,746 |  |  | $ | 2,917 |  |  | $ | 15,651 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 4,048 |  |  | $ | 1,959 |  |  | $ | 2,891 |  |  | $ | 2,497 |  |  | $ | 11,395 |
Asia Pacific |  | 995 |  |  | 75 |  |  | 318 |  |  | 28 |  |  | 1,416 |
Europe |  | 948 |  |  | 168 |  |  | 167 |  |  | 398 |  |  | 1,681 |
Middle East |  | 328 |  |  | 407 |  |  | 207 |  |  | (6 | ) |  | 936 |
Other |  | 50 |  |  | 10 |  |  | 163 |  |  | — |  |  | 223 |
Total net sales |  | $ | 6,369 |  |  | $ | 2,619 |  |  | $ | 3,746 |  |  | $ | 2,917 |  |  | $ | 15,651 |
|  | Quarter Ended March 31, 2019
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 4,796 |  |  | $ | 1,916 |  |  | $ | 3,059 |  |  | $ | 2,199 |  |  | $ | 11,970 |
Services |  | 788 |  |  | 434 |  |  | 703 |  |  | 441 |  |  | 2,366 |
Total net sales |  | $ | 5,584 |  |  | $ | 2,350 |  |  | $ | 3,762 |  |  | $ | 2,640 |  |  | $ | 14,336 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 4,170 |  |  | $ | 1,535 |  |  | $ | 2,619 |  |  | $ | 523 |  |  | $ | 8,847 |
Cost-reimbursable |  | 1,414 |  |  | 815 |  |  | 1,143 |  |  | 2,117 |  |  | 5,489 |
Total net sales |  | $ | 5,584 |  |  | $ | 2,350 |  |  | $ | 3,762 |  |  | $ | 2,640 |  |  | $ | 14,336 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 3,435 |  |  | $ | 1,633 |  |  | $ | 2,675 |  |  | $ | 2,236 |  |  | $ | 9,979 |
International (a) |  | 2,095 |  |  | 670 |  |  | 995 |  |  | 395 |  |  | 4,155 |
U.S. commercial and other |  | 54 |  |  | 47 |  |  | 92 |  |  | 9 |  |  | 202 |
Total net sales |  | $ | 5,584 |  |  | $ | 2,350 |  |  | $ | 3,762 |  |  | $ | 2,640 |  |  | $ | 14,336 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,489 |  |  | $ | 1,680 |  |  | $ | 2,767 |  |  | $ | 2,245 |  |  | $ | 10,181 |
Asia Pacific |  | 906 |  |  | 122 |  |  | 330 |  |  | 8 |  |  | 1,366 |
Europe |  | 798 |  |  | 122 |  |  | 198 |  |  | 381 |  |  | 1,499 |
Middle East |  | 337 |  |  | 413 |  |  | 285 |  |  | 6 |  |  | 1,041 |
Other |  | 54 |  |  | 13 |  |  | 182 |  |  | — |  |  | 249 |
Total net sales |  | $ | 5,584 |  |  | $ | 2,350 |  |  | $ | 3,762 |  |  | $ | 2,640 |  |  | $ | 14,336 |
(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.

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