v3.26.1
INFORMATION ON BUSINESS SEGMENTS
 6 Months Ended
Jun. 28, 2026
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.
Summary operating results for each of our business segments were as follows (in millions):
 Quarters EndedSix Months Ended
June 28,
2026		June 29,
2025		June 28,
2026		June 29,
2025
Sales
Aeronautics$8,112 $7,420 $15,065 $14,477 
Missiles and Fire Control4,101 3,433 7,750 6,806 
Rotary and Mission Systems4,354 3,995 8,345 8,323 
Space 3,496 3,307 6,924 6,512 
Total sales$20,063 $18,155 $38,084 $36,118 
Other segment items (a)
Aeronautics$7,352 $7,518 $13,686 $13,855 
Missiles and Fire Control3,507 2,954 6,656 5,862 
Rotary and Mission Systems3,917 4,167 7,485 7,974 
Space3,125 2,945 6,272 5,771 
Total other segment items$17,901 $17,584 $34,099 $33,462 
Operating profit (loss)
Aeronautics$760 $(98)$1,379 $622 
Missiles and Fire Control594 479 1,094 944 
Rotary and Mission Systems 437 (172)860 349 
Space 371 362 652 741 
Total business segment operating profit$2,162 $571 $3,985 $2,656 
Unallocated items
FAS/CAS pension operating adjustment$422 $379 $843 $758 
Impairment and other charges
— (66)— (66)
Intangible asset amortization expense(50)(63)(100)(127)
Other, net
(55)(73)(186)(101)
Total unallocated items317 177 557 464 
Total consolidated operating profit$2,479 $748 $4,542 $3,120 
Intersegment sales
Aeronautics$112 $97 $205 $186 
Missiles and Fire Control252 231 490 398 
Rotary and Mission Systems662 632 1,257 1,198 
Space 79 84 160 167 
Total intersegment sales$1,105 $1,044 $2,112 $1,949 
(a)Other segment items include operating costs and expenses plus certain immaterial items, such as other income (primarily equity earnings).
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. 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.
Unallocated Items
Business segment operating profit excludes the FAS/CAS pension operating adjustment discussed 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 stock-based compensation expense, changes in the fair value of assets and liabilities for deferred compensation plans, significant severance charges, significant asset impairments, intangible asset amortization expense, and other miscellaneous corporate activities. Collectively these items are included in “Unallocated items” to reconcile total segment operating profit to consolidated operating profit.
FAS/CAS Pension Operating Adjustment
Our business segments’ results of operations include pension expense only as calculated under CAS, which we refer to as CAS pension cost. We recover CAS pension cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS pension cost in each of our business segments’ sales and operating costs and expenses. Our consolidated financial statements must present pension expense calculated in accordance with Financial Accounting Standards (FAS) requirements under U.S. GAAP. The operating portion of the total 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 expense components are included in non-service FAS pension expense in our consolidated statements of earnings. As a result, to the extent that CAS pension cost exceeds the service cost component of FAS pension expense, we have a favorable FAS/CAS pension operating adjustment.
The total FAS/CAS pension adjustments, 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 EndedSix Months Ended
June 28,
2026		June 29,
2025		June 28,
2026		June 29,
2025
Total FAS pension expense and CAS cost
FAS pension expense
$(92)$(112)$(184)$(223)
Less: CAS pension cost434 392 867 784 
Total FAS/CAS pension adjustment$342 $280 $683 $561 
Service and non-service cost reconciliation
FAS pension service cost$(12)$(13)$(24)$(26)
Less: CAS pension cost434 392 867 784 
Total FAS/CAS pension operating adjustment422 379 843 758 
Non-service FAS pension expense
(80)(99)(160)(197)
Total FAS/CAS pension adjustment$342 $280 $683 $561 
Disaggregation of Sales
Sales by products and services, contract type, customer, and geographic region were as follows (in millions):
Quarter Ended June 28, 2026
AeronauticsMFCRMSSpace Total
Sales
Products$6,608 $3,700 $3,516 $2,959 $16,783 
Services1,504 401 838 537 3,280 
Total sales$8,112 $4,101 $4,354 $3,496 $20,063 
Sales by contract type
Fixed-price$5,528 $3,058 $2,592 $893 $12,071 
Cost-reimbursable2,584 1,043 1,762 2,603 7,992 
Total sales$8,112 $4,101 $4,354 $3,496 $20,063 
Sales by customer
U.S. Government$4,745 $3,234 $2,739 $3,409 $14,127 
International (a)
3,362 866 1,567 80 5,875 
U.S. commercial and other5 1 48 7 61 
Total sales$8,112 $4,101 $4,354 $3,496 $20,063 
Sales by geographic region
United States$4,750 $3,235 $2,787 $3,416 $14,188 
Europe1,729 503 539 31 2,802 
Asia Pacific1,143 204 587 49 1,983 
Middle East126 127 131 — 384 
Other364 32 310 — 706 
Total sales$8,112 $4,101 $4,354 $3,496 $20,063 
Six Months Ended June 28, 2026
AeronauticsMFCRMSSpace Total
Sales
Products$12,113 $7,023 $6,688 $5,790 $31,614 
Services2,952 727 1,657 1,134 6,470 
Total sales$15,065 $7,750 $8,345 $6,924 $38,084 
Sales by contract type
Fixed-price$10,025 $5,719 $4,922 $1,815 $22,481 
Cost-reimbursable5,040 2,031 3,423 5,109 15,603 
Total sales$15,065 $7,750 $8,345 $6,924 $38,084 
Sales by customer
U.S. Government$8,878 $5,606 $5,207 $6,746 $26,437 
International (a)
6,171 2,143 3,040 163 11,517 
U.S. commercial and other16 1 98 15 130 
Total sales$15,065 $7,750 $8,345 $6,924 $38,084 
Sales by geographic region
United States$8,894 $5,607 $5,305 $6,761 $26,567 
Europe3,166 1,090 1,110 61 5,427 
Asia Pacific2,050 480 1,029 93 3,652 
Middle East351 517 301 9 1,178 
Other604 56 600 — 1,260 
Total sales$15,065 $7,750 $8,345 $6,924 $38,084 
Quarter Ended June 29, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$5,960 $3,065 $3,332 $2,792 $15,149 
Services1,460 368 663 515 3,006 
Total sales$7,420 $3,433 $3,995 $3,307 $18,155 
Sales by contract type
Fixed-price$4,912 $2,447 $2,295 $912 $10,566 
Cost-reimbursable2,508 986 1,700 2,395 7,589 
Total sales$7,420 $3,433 $3,995 $3,307 $18,155 
Sales by customer
U.S. Government$4,646 $2,440 $2,858 $3,227 $13,171 
International (a)
2,766 990 1,085 75 4,916 
U.S. commercial and other8 3 52 5 68 
Total sales$7,420 $3,433 $3,995 $3,307 $18,155 
Sales by geographic region
United States$4,654 $2,443 $2,910 $3,232 $13,239 
Europe1,404 381 279 22 2,086 
Asia Pacific984 223 601 49 1,857 
Middle East159 375 219 4 757 
Other219 11 (14)— 216 
Total sales$7,420 $3,433 $3,995 $3,307 $18,155 
Six Months Ended June 29, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$11,706 $6,082 $6,828 $5,469 $30,085 
Services2,771 724 1,495 1,043 6,033 
Total sales$14,477 $6,806 $8,323 $6,512 $36,118 
Sales by contract type
Fixed-price$9,625 $4,887 $4,955 $1,854 $21,321 
Cost-reimbursable4,852 1,919 3,368 4,658 14,797 
Total sales$14,477 $6,806 $8,323 $6,512 $36,118 
Sales by customer
U.S. Government$9,288 $4,831 $5,645 $6,356 $26,120 
International (a)
5,171 1,968 2,553 146 9,838 
U.S. commercial and other18 7 125 10 160 
Total sales$14,477 $6,806 $8,323 $6,512 $36,118 
Sales by geographic region
United States$9,306 $4,838 $5,770 $6,366 $26,280 
Europe2,651 776 583 44 4,054 
Asia Pacific1,824 447 1,234 96 3,601 
Middle East307 717 431 6 1,461 
Other389 28 305 — 722 
Total sales$14,477 $6,806 $8,323 $6,512 $36,118 
(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 28% and 27% of our total consolidated sales for the quarters and six months ended both June 28, 2026 and June 29, 2025.
Assets
Total assets for each of our business segments were as follows (in millions):
June 28,
2026		December 31,
2025
Assets
Aeronautics$15,840 $14,673 
MFC8,164 6,304 
RMS16,602 16,576 
Space 7,998 7,755 
Total business segment assets48,604 45,308 
Corporate assets (a)
13,846 14,532 
Total assets$62,450 $59,840 
(a)Corporate assets primarily include cash and cash equivalents, deferred income taxes, assets held in a trust for deferred compensation plans, capitalized software, assets for the portion of environmental costs that are probable of future recovery, property, plant and equipment used in our corporate operations, and other marketable investments.