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BUSINESS SEGMENTS | 12 Months Ended
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Dec. 29, 2023
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | NOTE 14: BUSINESS SEGMENTS Business Segment Financial Information The following table presents revenue and operating income by segment:
| Fiscal Year Ended
(In millions) | December 29, 2023 |  | December 30, 2022 |  | December 31, 2021
Revenue |  |  |  |  |
SAS | $ | 6,856 |  |  | $ | 6,384 |  |  | $ | 6,315 |
IMS | 6,630 |  |  | 6,626 |  |  | 6,733 |
CS | 5,070 |  |  | 4,217 |  |  | 4,287 |
AR | 1,052 |  |  | ** |  | **
Other non-reportable businesses | — |  |  | — |  |  | 683 |
Corporate eliminations | (189) |  |  | (165) |  |  | (204) |
Total revenue | $ | 19,419 |  |  | $ | 17,062 |  |  | $ | 17,814 |
Operating Income
SAS | $ | 756 |  |  | $ | 665 |  |  | $ | 782 |
IMS | 459 |  |  | 494 |  |  | 845 |
CS | 1,229 |  |  | 667 |  |  | 1,043 |
AR | 122 |  |  | ** |  | **
Other non-reportable businesses | — |  |  | — |  |  | 104 |
Total segment | 2,566 |  |  | 1,826 |  |  | 2,774 |
Total unallocated corporate expense | (1,140) |  |  | (699) |  |  | (665) |
Total operating income | $ | 1,426 |  |  | $ | 1,127 |  |  | $ | 2,109 |
_______________ **AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of the operations assumed in the AJRD acquisition. As such, there is no comparable prior year information. Unallocated Corporate Expense Total unallocated corporate expense includes corporate items such as a portion of management and administration, legal, environmental, compensation, retiree benefits, other corporate expenses and eliminations and the FAS/CAS operating adjustment. Total unallocated corporate expense also includes the portion of corporate costs not included in management’s evaluation of segment operating performance, such as amortization of acquisition-related intangibles; additional cost of revenue related to the fair value step-up in inventory sold; merger, acquisition, and divestiture-related expenses; asset group and business divestiture-related (losses) gains, net; impairment of goodwill and other assets; gain on sale of property, plant and equipment; LHX NeXt implementation costs; and other items. LHX NeXt implementation costs. LHX NeXt is our initiative to transform multiple functions, systems and processes to increase agility and competitiveness. The LHX NeXt effort is expected to continue for the next three years with one-time costs for workforce optimization, incremental IT expenses for implementation of new systems, third party consulting and other costs. In connection with our LHX NeXt program restructuring activities, we recorded charges of $25 million during fiscal 2023, included as a component of the “General and administrative expenses” line item in our Consolidated Statement of Operations. At December 29, 2023 we had remaining liabilities of $4 million which we expect will be paid in the next twelve months. Our liabilities for restructuring are included in the “Compensation and benefits” line item in our Consolidated Balance Sheet. FAS/CAS Pension Operating Adjustment The table below is a reconciliation of the FAS/CAS operating adjustment:
| Fiscal Year Ended
(In millions) | December 29, 2023 |  | December 30, 2022 |  | December 31, 2021
FAS pension service cost | $ | (35) |  |  | $ | (46) |  |  | $ | (68) |
Less: CAS pension cost | (145) |  |  | (141) |  |  | (191) |
FAS/CAS operating adjustment | 110 |  |  | 95 |  |  | 123 |
Non-service FAS pension income(1) | 310 |  |  | 441 |  |  | 445 |
FAS/CAS pension adjustment, net(2) | $ | 420 |  |  | $ | 536 |  |  | $ | 568 |
_______________ (1)Non-service FAS pension income is included as component of the “Non-service FAS pension income and other, net” line item in our Consolidated Statement of Operations. (2)FAS/CAS pension adjustment, net excludes net settlement and curtailment losses recognized in fiscal 2021. See Note 9: Retirement Benefits in these Notes for additional information on net settlements and curtailments. See “Business Segments” in Note 1: Significant Accounting Policies in these Notes for additional information regarding our FAS/CAS operating adjustment accounting policy. Disaggregation of Revenue We disaggregate revenue for all four business segments by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
| Fiscal Year Ended
| December 29, 2023
(In millions) | SAS |  | IMS |  | CS |  | AR
Revenue By Customer Relationship
Prime contractor | $ | 4,252 |  |  | $ | 4,196 |  |  | $ | 3,420 |  |  | $ | 250 |
Subcontractor | 2,555 |  |  | 2,347 |  |  | 1,597 |  |  | 802 |
Intersegment | 49 |  |  | 87 |  |  | 53 |  |  | — |
Total segment | $ | 6,856 |  |  | $ | 6,630 |  |  | $ | 5,070 |  |  | $ | 1,052 |
Revenue By Contract Type
Fixed-price(1) | $ | 4,257 |  |  | $ | 5,020 |  |  | $ | 4,289 |  |  | $ | 632 |
Cost-reimbursable | 2,550 |  |  | 1,523 |  |  | 728 |  |  | 420 |
Intersegment | 49 |  |  | 87 |  |  | 53 |  |  | — |
Total segment | $ | 6,856 |  |  | $ | 6,630 |  |  | $ | 5,070 |  |  | $ | 1,052 |
Revenue By Geographical Region
United States | $ | 5,933 |  |  | $ | 4,816 |  |  | $ | 3,482 |  |  | $ | 1,015 |
International | 874 |  |  | 1,727 |  |  | 1,535 |  |  | 37 |
Intersegment | 49 |  |  | 87 |  |  | 53 |  |  | — |
Total segment | $ | 6,856 |  |  | $ | 6,630 |  |  | $ | 5,070 |  |  | $ | 1,052 |
_______________ (1)Includes revenue derived from time-and-materials contracts.
| Fiscal Year Ended
| December 30, 2022
(In millions) | SAS |  | IMS |  | CS |  | AR
Revenue By Customer Relationship
Prime contractor | $ | 4,005 |  |  | $ | 4,301 |  |  | $ | 2,829 |  |  | **
Subcontractor | 2,330 |  |  | 2,254 |  |  | 1,343 |  |  | **
Intersegment | 49 |  |  | 71 |  |  | 45 |  |  | **
Total segment | $ | 6,384 |  |  | $ | 6,626 |  |  | $ | 4,217 |  |  | $ | — |
Revenue By Contract Type
Fixed-price(1) | $ | 3,811 |  |  | $ | 5,060 |  |  | $ | 3,552 |  |  | **
Cost-reimbursable | 2,524 |  |  | 1,495 |  |  | 620 |  |  | **
Intersegment | 49 |  |  | 71 |  |  | 45 |  |  | **
Total segment | $ | 6,384 |  |  | $ | 6,626 |  |  | $ | 4,217 |  |  | $ | — |
Revenue By Geographical Region
United States | $ | 5,623 |  |  | $ | 4,796 |  |  | $ | 2,735 |  |  | **
International | 712 |  |  | 1,759 |  |  | 1,437 |  |  | **
Intersegment | 49 |  |  | 71 |  |  | 45 |  |  | **
Total segment | $ | 6,384 |  |  | $ | 6,626 |  |  | $ | 4,217 |  |  | $ | — |
_______________ **AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of the operations assumed in the AJRD acquisition. As such, there is no comparable prior year information. (1)Includes revenue derived from time-and-materials contracts.
| Fiscal Year Ended
| December 31, 2021
(In millions) | SAS |  | IMS |  | CS |  | AR
Revenue By Customer Relationship
Prime contractor | $ | 3,942 |  |  | $ | 4,474 |  |  | $ | 2,886 |  |  | **
Subcontractor | 2,331 |  |  | 2,187 |  |  | 1,347 |  |  | **
Intersegment | 42 |  |  | 72 |  |  | 54 |  |  | **
Total segment | $ | 6,315 |  |  | $ | 6,733 |  |  | $ | 4,287 |  |  | $ | — |
Revenue By Contract Type
Fixed-price(1) | $ | 3,781 |  |  | $ | 5,231 |  |  | $ | 3,631 |  |  | **
Cost-reimbursable | 2,492 |  |  | 1,430 |  |  | 602 |  |  | **
Intersegment | 42 |  |  | 72 |  |  | 54 |  |  | **
Total segment | $ | 6,315 |  |  | $ | 6,733 |  |  | $ | 4,287 |  |  | $ | — |
Revenue By Geographical Region |  |
United States | $ | 5,569 |  |  | $ | 4,782 |  |  | $ | 3,001 |  |  | **
International | 704 |  |  | 1,879 |  |  | 1,232 |  |  | **
Intersegment | 42 |  |  | 72 |  |  | 54 |  |  | **
Total segment | $ | 6,315 |  |  | $ | 6,733 |  |  | $ | 4,287 |  |  | $ | — |
_______________ **AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of the operations assumed in the AJRD acquisition. As such, there is no comparable prior year information. (1)Includes revenue derived from time-and-materials contracts.
| Fiscal Year Ended |  |  |  |
(In millions) | December 29, 2023 |  | December 30, 2022 |  | December 31, 2021 |  |  |  |
Geographical Information for Operations |  |  |  |  |  |  |  |  |
Revenue from U.S. operations | $ | 17,537 |  |  | $ | 15,373 |  |  | $ | 16,234 |  |  |  |  |
Revenue from international operations | 1,882 |  |  | 1,689 |  |  | 1,580 |  |  |  |  |
Our products are produced principally in the U.S. with international revenue derived primarily from exports. No revenue earned from any individual foreign country exceeded 5% of our total revenue in fiscal 2023, 2022 and 2021. Revenue from U.S. Government customers, including foreign military sales funded through the U.S. Government, whether directly or through prime contractors, by all segments as a percentage of total revenue were 76%, 74% and 75% in fiscal 2023, 2022 and 2021, respectively. Revenue from services in fiscal 2023 was 28%, 38%, 19% and 29% of total revenue in our SAS, IMS, CS and AR segments, respectively. Revenue from products and services where the end consumer is located outside the U.S., including foreign military sales funded through the U.S. Government, whether directly or through prime contractors, was $4.2 billion (21% of our revenue), $3.9 billion (23% of our revenue) and $3.9 billion (22% of our revenue) in fiscal 2023, 2022 and 2021, respectively. Export revenue and revenue from international operations in fiscal 2023 was principally from the EMEA and APAC regions and Canada. Assets by Business Segment Total assets by business segment are as follows:
(In millions) | December 29, 2023 |  | December 30, 2022
Total Assets |  |  |
SAS | $ | 9,085 |  |  | $ | 8,838 |
IMS | 10,631 |  |  | 10,925 |
CS | 7,084 |  |  | 5,800 |
AR | 4,208 |  |  | **
Corporate(1) | 10,679 |  |  | 7,961 |
Total Assets | $ | 41,687 |  |  | $ | 33,524 |
_______________ **AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of assets, liabilities and operations assumed in the AJRD acquisition. As such, there is no comparable prior year information. (1)Identifiable intangible assets acquired in connection with business combinations were recorded as corporate assets because they benefited the entire Company. Identifiable intangible asset balances recorded as corporate assets were $8.5 billion and $6.0 billion at December 29, 2023 and December 30, 2022, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan investments, buildings and equipment, real estate held for development and leasing that we acquired with AJRD, as well as any assets of businesses held for sale. Other selected financial information by business segment and geographical area is summarized below:
| Fiscal Year Ended |  |  |  |
(In millions) | December 29, 2023 |  | December 30, 2022 |  | December 31, 2021 |  |  |  |
Capital Expenditures |  |  |  |  |  |  |  |  |
SAS | $ | 151 |  |  | $ | 133 |  |  | $ | 155 |  |  |  |  |
IMS | 149 |  |  | 45 |  |  | 69 |  |  |  |  |
CS | 39 |  |  | 36 |  |  | 56 |  |  |  |  |
AR | 31 |  |  | ** |  | ** |  |  |  |
Other non-reportable businesses | — |  |  | — |  |  | 4 |  |  |  |  |
Corporate | 79 |  |  | 38 |  |  | 58 |  |  |  |  |
Total Capital Expenditures | $ | 449 |  |  | $ | 252 |  |  | $ | 342 |  |  |  |  |
Depreciation and Amortization |  |  |  |  |  |  |  |  |
SAS | $ | 115 |  |  | $ | 112 |  |  | $ | 109 |  |  |  |  |
IMS | 73 |  |  | 76 |  |  | 92 |  |  |  |  |
CS | 54 |  |  | 47 |  |  | 49 |  |  |  |  |
AR | 29 |  |  | ** |  | ** |  |  |  |
Other non-reportable businesses | — |  |  | — |  |  | 8 |  |  |  |  |
Corporate | 895 |  |  | 703 |  |  | 709 |  |  |  |  |
Total Depreciation and Amortization | $ | 1,166 |  |  | $ | 938 |  |  | $ | 967 |  |  |  |  |
Geographical Information for Operations |  |  |  |  |  |  |  |  |
Long-lived assets of U.S. operations | $ | 2,678 |  |  | $ | 1,896 |  |  | $ | 1,870 |  |  |  |  |
Long-lived assets of international operations | 184 |  |  | 208 |  |  | 231 |  |  |  |  |
_______________ **AR is a new reportable segment established in the quarter ended September 29, 2023 which consists of the operations assumed in the AJRD acquisition. As such, there is no comparable prior year information. In addition to depreciation and amortization expense related to property, plant and equipment, “Depreciation and Amortization” in the table above also includes $777 million, $596 million and $624 million of amortization related to identifiable intangible assets, debt premium, debt discount, debt issuance costs and other items in fiscal 2023, 2022 and 2021, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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