v3.26.3
Segment Information (Unaudited)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The company is aligned in four operating sectors, which also comprise our reportable segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. We generally organize our segments based on the nature of products and services offered.
The following table presents sales, operating costs and expenses, and operating income by segment:
Three Months Ended September 30Nine Months Ended September 30
$ in millions2026202520262025
Aeronautics Systems
Sales
$3,575 $3,142 $10,377 $9,070 
Operating costs and expenses:
Product
2,463 2,108 7,180 6,575 
Service
698 690 2,048 1,940 
Intersegment
37 39 105 112 
Aeronautics Systems operating income377 305 1,044 443 
Defense Systems
Sales
2,3072,0596,2995,855
Operating costs and expenses:
Product
1,7171,4834,6684,117
Service
287297893940
Intersegment
5345148132
Defense Systems operating income
250234590666
Mission Systems
Sales
3,1553,0939,2669,057
Operating costs and expenses:
Product
1,8951,8255,4775,500
Service
4404661,3121,383
Intersegment
3202871,043857
Mission Systems operating income
5005151,4341,317
Space Systems
Sales
2,7492,6987,9827,912
Operating costs and expenses:
Product
1,9561,9805,8175,702
Service
3212979091,021
Intersegment
160123473328
Space Systems operating income
312298783861
Intersegment profit eliminations
(94)(75)(276)(223)
Total segment operating income1,3451,2773,5753,064
FAS/CAS operating adjustment156729193
Unallocated corporate expense(91)(102)(250)(17)
Total operating income1,269 1,242 3,354 3,240 
Other (expense) income
Interest expense(158)(161)(481)(490)
Non-operating FAS pension benefit167136499403
Other, net20106124175
Earnings before income taxes$1,298 $1,323 $3,496 $3,328 
FAS/CAS Operating Adjustment
For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with applicable Federal Acquisition Regulation (FAR) and CAS requirements. The FAS/CAS operating adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income.
Unallocated Corporate Expense
Unallocated corporate expense includes the portion of corporate costs not considered allowable or allocable under applicable FAR and CAS requirements, and therefore not allocated to the segments, such as changes in deferred state income taxes and a portion of management and administration, legal, environmental, compensation, retiree benefits, advertising and other corporate unallowable costs. Unallocated corporate expense also includes costs not considered part of management’s evaluation of segment operating performance, such as amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations, as well as certain compensation and other costs.
Disaggregation of Revenue
Sales by Customer TypeThree Months Ended September 30Nine Months Ended September 30
2026202520262025
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems
U.S. government(1)
$2,846 80 %$2,530 82 %$8,349 81 %$7,346 82 %
International(2)
665 19 %564 18 %1,857 18 %1,586 18 %
Other customers23 1 %6 — %55 1 %17 — %
Intersegment sales41 42 116 121 
Aeronautics Systems sales3,575 3,142 10,377 9,070 
Defense Systems
U.S. government(1)
1,934 86 %1,570 78 %5,263 86 %4,632 81 %
International(2)
294 13 %419 21 %808 13 %1,013 18 %
Other customers20 1 %19 1 %62 1 %61 1 %
Intersegment sales59 51 166 149 
Defense Systems sales2,307 2,059 6,299 5,855 
Mission Systems
U.S. government(1)
2,244 81 %2,166 79 %6,403 80 %6,421 80 %
International(2)
487 18 %557 20 %1,514 19 %1,537 19 %
Other customers38 1 %31 1 %114 1 %84 1 %
Intersegment sales386 339 1,235 1,015 
Mission Systems sales3,155 3,093 9,266 9,057 
Space Systems
U.S. government(1)
2,411 94 %2,366 93 %7,111 95 %7,024 93 %
International(2)
37 1 %63 2 %128 2 %154 2 %
Other customers123 5 %132 5 %215 3 %367 5 %
Intersegment sales178 137 528 367 
Space Systems sales2,749 2,698 7,982 7,912 
Total
U.S. government(1)
9,435 85 %8,632 83 %27,126 85 %25,423 84 %
International(2)
1,483 13 %1,603 15 %4,307 14 %4,290 14 %
Other customers204 2 %188 2 %446 1 %529 2 %
Total Sales$11,122 $10,423 $31,879 $30,242 
(1) Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company’s segments derives a substantial percentage of its revenue from the U.S. government.
(2) International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer to the extent that information is available to us or can be reasonably estimated. These sales include foreign military sales contracted through the U.S. government.
(3) Percentages calculated based on external customer sales.
Sales by Contract TypeThree Months Ended September 30Nine Months Ended September 30
2026202520262025
$ in millions$
%(1)
$
%(1)
$
%(1)
$
%(1)
Aeronautics Systems
Cost-type$1,607 45 %$1,454 47 %$4,573 45 %$4,254 48 %
Fixed-price1,927 55 %1,646 53 %5,688 55 %4,695 52 %
Intersegment sales41 42 116 121 
Aeronautics Systems sales3,575 3,142 10,377 9,070 
Defense Systems
Cost-type1,234 55 %1,028 51 %3,461 56 %3,077 54 %
Fixed-price1,014 45 %980 49 %2,672 44 %2,629 46 %
Intersegment sales59 51 166 149 
Defense Systems sales2,307 2,059 6,299 5,855 
Mission Systems
Cost-type1,131 41 %1,219 44 %3,387 42 %3,788 47 %
Fixed-price1,638 59 %1,535 56 %4,644 58 %4,254 53 %
Intersegment sales386 339 1,235 1,015 
Mission Systems sales3,155 3,093 9,266 9,057 
Space Systems
Cost-type1,293 50 %1,351 53 %4,017 54 %4,453 59 %
Fixed-price1,278 50 %1,210 47 %3,437 46 %3,092 41 %
Intersegment sales178 137 528 367 
Space Systems sales2,749 2,698 7,982 7,912 
Total
Cost-type5,265 47 %5,052 48 %15,438 48 %15,572 51 %
Fixed-price5,857 53 %5,371 52 %16,441 52 %14,670 49 %
Total Sales$11,122 $10,423 $31,879 $30,242 
(1)Percentages calculated based on external customer sales.
Sales by Geographic Region(1)
Three Months Ended September 30Nine Months Ended September 30
2026202520262025
$ in millions$
%(3)
$
%(3)
$
%(3)
$
%(3)
Aeronautics Systems
United States$2,869 81 %$2,536 82 %$8,404 82 %$7,363 82 %
Asia/Pacific251 7 %221 7 %743 7 %647 7 %
Europe393 11 %321 10 %1,051 10 %891 10 %
Other geographic regions
21 1 %22 1 %63 1 %48 1 %
Intersegment sales41 42 116 121 
Aeronautics Systems sales3,575 3,142 10,377 9,070 
Defense Systems
United States1,954 87 %1,589 79 %5,325 87 %4,693 82 %
Asia/Pacific106 5 %111 6 %297 5 %271 5 %
Europe132 6 %251 12 %386 6 %589 10 %
Other geographic regions
56 2 %57 3 %125 2 %153 3 %
Intersegment sales59 51 166 149 
Defense Systems sales2,307 2,059 6,299 5,855 
Mission Systems
United States2,282 82 %2,197 80 %6,517 81 %6,505 81 %
Asia/Pacific112 4 %147 5 %374 5 %407 5 %
Europe266 10 %318 12 %820 10 %820 10 %
Other geographic regions
109 4 %92 3 %320 4 %310 4 %
Intersegment sales386 339 1,235 1,015 
Mission Systems sales3,155 3,093 9,266 9,057 
Space Systems
United States2,534 99 %2,498 98 %7,326 98 %7,391 98 %
Asia/Pacific14 — %25 1 %47 1 %48 1 %
Europe19 1 %28 1 %67 1 %74 1 %
Other geographic regions
4 — %10 — %14 — %32 — %
Intersegment sales178 137 528 367 
Space Systems sales2,749 2,698 7,982 7,912 
Total
United States9,639 87 %8,820 85 %27,572 86 %25,952 86 %
Asia/Pacific483 4 %504 5 %1,461 5 %1,373 4 %
Europe810 7 %918 8 %2,324 7 %2,374 8 %
Other geographic regions(2)
190 2 %181 2 %522 2 %543 2 %
Total Sales$11,122 $10,423 $31,879 $30,242 
(1)Sales are attributed to countries based on the ultimate customer’s location to the extent that information is available to us or can be reasonably estimated. No country other than the United States represents greater than 10 percent of total company sales.
(2)Other geographic regions are principally comprised of the Middle East.
(3)Percentages calculated based on external customer sales.
Capital Expenditures and Depreciation and Amortization
The following table presents capital expenditures and depreciation and amortization for each of our reportable segments and for Corporate:
Three Months Ended September 30Nine Months Ended September 30
$ in millions2026202520262025
Capital Expenditures
Aeronautics Systems$106 $102 $175 $250 
Defense Systems33 21 77 44 
Mission Systems46 66 133 152 
Space Systems84 70 211 251 
Corporate(1)
37 42 179 91 
Total capital expenditures$306 $301 $775 $788 
Depreciation and Amortization
Aeronautics Systems$97 $92 $274 $273 
Defense Systems44 47 132 132 
Mission Systems73 71 212 206 
Space Systems98 98 293 261 
Corporate(1)
67 71 207 194 
Total depreciation and amortization$379 $379 $1,118 $1,066 
(1)Corporate amounts include the amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of PP&E acquired through business combinations as they are not considered part of management’s evaluation of segment operating performance.
Assets
Our chief operating decision maker (“CODM”) does not use assets by segment to evaluate segment performance or allocate resources. Therefore, we do not disclose assets by segment.