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INFORMATION ON BUSINESS SEGMENTS
 3 Months Ended
Mar. 30, 2025
Segment Reporting [Abstract]  
INFORMATION ON BUSINESS SEGMENTS INFORMATION ON BUSINESS SEGMENTS
Our operations are organized into four business segments, which also comprise our reportable segments:
Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. We generally organize our business segments based on the nature of products and services offered.
Our chief operating decision maker (CODM) consists of the Chairman, President and Chief Executive Officer and the Chief Operating Officer. The CODM is responsible for allocating resources and assessing the performance of our consolidated enterprise and business segments. The profitability measure the CODM uses to allocate resources and assess segment performance is segment operating profit (and related margin rate, calculated as segment operating profit divided by sales), which is compared to historical and forecasted amounts on a regular basis.
Summary operating results for each of our business segments were as follows (in millions):
 Quarters Ended
March 30,
2025		March 31,
2024
Sales
Aeronautics$7,057 $6,845 
Missiles and Fire Control3,373 2,993 
Rotary and Mission Systems4,328 4,088 
Space 3,205 3,269 
Total sales$17,963 $17,195 
Operating costs and expenses
Aeronautics$6,337 $6,170 
Missiles and Fire Control2,908 2,686 
Rotary and Mission Systems3,858 3,665 
Space2,821 2,966 
Total operating costs and expenses$15,924 $15,487 
Operating profit (a)
Aeronautics$720 $679 
Missiles and Fire Control465 311 
Rotary and Mission Systems 521 430 
Space 379 325 
Total business segment operating profit2,085 1,745 
Unallocated items
FAS/CAS pension operating adjustment379 406 
Intangible asset amortization expense(64)(61)
Other, net
(28)(61)
Total unallocated items287 284 
Total consolidated operating profit$2,372 $2,029 
Intersegment sales
Aeronautics$89 $70 
Missiles and Fire Control169 202 
Rotary and Mission Systems564 586 
Space 83 107 
Total intersegment sales$905 $965 
(a)Operating profit by segment includes certain immaterial items, such as other income (primarily equity earnings) that are not presented separately in the table. Accordingly, the difference between sales less operating costs and expenses may not equal operating profit by segment.
Segment results exclude intersegment transactions as these activities are eliminated in consolidation and are not considered in assessing the performance of each segment. As described below, segment operating profit also excludes other transactions that are not part of management’s evaluation of segment operating performance, which are included in “Unallocated items” to reconcile total segment operating profit to consolidated amounts. Business segment operating profit
includes our share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of our business segments.
Unallocated Items
Business segment operating profit excludes the FAS/CAS pension operating adjustment described below, a portion of corporate costs not considered allowable or allocable to contracts with the U.S. Government under the applicable U.S. Government Cost Accounting Standards (CAS) or Federal Acquisition Regulations (FAR), and other items not considered part of management’s evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, stock-based compensation expense, changes in the fair value of assets and liabilities for deferred compensation plans, retiree benefits, significant severance charges, significant asset impairments, gains or losses from divestitures, intangible asset amortization expense, and other miscellaneous corporate activities. Collectively these items are included in “Unallocated items” to reconcile total segment to consolidated operating profit. See “Note 10 - Other” for a discussion related to certain factors that may impact the comparability of sales and operating profit of our business segments.
FAS/CAS Pension Operating Adjustment
Our business segment results of operations include pension expense as calculated under CAS, which we refer to as CAS pension cost. 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 pension cost in each business segments’ sales and operating costs and expenses. Our consolidated financial statements must present pension and other postretirement benefit plan (expense) income calculated in accordance with Financial Accounting Standards (FAS) requirements under U.S. GAAP. The FAS/CAS pension operating adjustment represents the difference between CAS pension cost included in segment operating income and the service cost component of FAS pension (expense) income included in consolidated operating profit. To the extent that CAS pension cost exceeds the service cost component of FAS pension (expense) income we have a favorable FAS/CAS pension operating adjustment. The non-service FAS pension (expense) income components are included in non-service FAS pension (expense) income on our consolidated statements of earnings.
Disaggregation of Sales
Sales by products and services, contract type, customer, and geographic region were as follows (in millions):
Quarter Ended March 30, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$5,746 $3,017 $3,496 $2,677 $14,936 
Services1,311 356 832 528 3,027 
Total sales$7,057 $3,373 $4,328 $3,205 $17,963 
Sales by contract type
Fixed-price$4,713 $2,440 $2,660 $942 $10,755 
Cost-reimbursable2,344 933 1,668 2,263 7,208 
Total sales$7,057 $3,373 $4,328 $3,205 $17,963 
Sales by customer
U.S. Government$4,642 $2,391 $2,787 $3,129 $12,949 
International (a)
2,405 978 1,468 71 4,922 
U.S. commercial and other10 4 73 5 92 
Total sales$7,057 $3,373 $4,328 $3,205 $17,963 
Sales by geographic region
United States$4,652 $2,395 $2,860 $3,134 $13,041 
Europe1,247 395 304 22 1,968 
Asia Pacific840 224 633 47 1,744 
Middle East148 342 212 2 704 
Other170 17 319 — 506 
Total sales$7,057 $3,373 $4,328 $3,205 $17,963 
Quarter Ended March 31, 2024
AeronauticsMFCRMSSpace Total
Sales
Products$5,592 $2,664 $3,241 $2,699 $14,196 
Services1,253 329 847 570 2,999 
Total sales$6,845 $2,993 $4,088 $3,269 $17,195 
Sales by contract type
Fixed-price$4,584 $1,996 $2,477 $900 $9,957 
Cost-reimbursable2,261 997 1,611 2,369 7,238 
Total sales$6,845 $2,993 $4,088 $3,269 $17,195 
Sales by customer
U.S. Government$4,666 $2,167 $2,840 $3,162 $12,835 
International (a)
2,152 824 1,162 68 4,206 
U.S. commercial and other27 2 86 39 154 
Total sales$6,845 $2,993 $4,088 $3,269 $17,195 
Sales by geographic region
United States$4,693 $2,169 $2,926 $3,201 $12,989 
Europe1,211 245 269 18 1,743 
Asia Pacific636 187 540 46 1,409 
Middle East203 370 162 4 739 
Other102 22 191 — 315 
Total sales$6,845 $2,993 $4,088 $3,269 $17,195 
(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, an international multi-role, multi-variant, stealth fighter aircraft. Sales for the F-35 program represented approximately 25% of our total consolidated sales for the quarters ended both March 30, 2025 and March 31, 2024.
Assets
Total assets for each of our business segments were as follows (in millions):
March 30,
2025		December 31,
2024
Assets
Aeronautics$14,130 $13,223 
Missiles and Fire Control6,140 5,952 
Rotary and Mission Systems17,199 17,025 
Space 7,617 7,388 
Total business segment assets45,086 43,588 
Corporate assets (a)
11,583 12,029 
Total assets$56,669 $55,617 
(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, property, plant and equipment used in our corporate operations, assets held in a trust for deferred compensation plans, and other marketable investments.