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INFORMATION ON BUSINESS SEGMENTS
 9 Months Ended
Sep. 27, 2026
Segment Reporting [Abstract]  
INFORMATION ON BUSINESS SEGMENTS
NOTE 4 - 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 EndedNine Months Ended
September 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
Sales
Aeronautics$8,214 $7,256 $23,279 $21,733 
Missiles and Fire Control4,501 3,624 12,251 10,430 
Rotary and Mission Systems4,511 4,373 12,856 12,696 
Space 3,485 3,356 10,409 9,868 
Total sales$20,711 $18,609 $58,795 $54,727 
Operating costs and expenses (a)
Aeronautics$7,471 $6,574 $21,157 $20,429 
Missiles and Fire Control3,870 3,114 10,526 8,976 
Rotary and Mission Systems3,987 3,867 11,472 11,841 
Space3,154 3,025 9,426 8,796 
Total operating costs and expenses$18,482 $16,580 $52,581 $50,042 
Operating profit
Aeronautics$743 $682 $2,122 $1,304 
Missiles and Fire Control631 510 1,725 1,454 
Rotary and Mission Systems 524 506 1,384 855 
Space 331 331 983 1,072 
Total business segment operating profit$2,229 $2,029 $6,214 $4,685 
Unallocated items
FAS/CAS pension operating adjustment$421 $380 $1,264 $1,138 
Impairment and other charges
— — — (66)
Intangible asset amortization expense(49)(70)(149)(197)
Other, net
(158)(59)(344)(160)
Total unallocated items214 251 771 715 
Total consolidated operating profit$2,443 $2,280 $6,985 $5,400 
Intersegment sales
Aeronautics$123 $85 $328 $271 
Missiles and Fire Control291 218 781 616 
Rotary and Mission Systems677 580 1,934 1,778 
Space 77 77 237 244 
Total intersegment sales$1,168 $960 $3,280 $2,909 
(a)Operating costs and expenses include 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 2 - Significant Accounting Policies” 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 EndedNine Months Ended
September 27,
2026		September 28,
2025		September 27,
2026		September 28,
2025
Total FAS pension expense and CAS cost
FAS pension expense
$(93)$(111)$(277)$(334)
Less: CAS pension cost433 392 1,300 1,176 
Total FAS/CAS pension adjustment$340 $281 $1,023 $842 
Service and non-service cost reconciliation
FAS pension service cost$(12)$(12)$(36)$(38)
Less: CAS pension cost433 392 1,300 1,176 
Total FAS/CAS pension operating adjustment421 380 1,264 1,138 
Non-service FAS pension expense
(81)(99)(241)(296)
Total FAS/CAS pension adjustment$340 $281 $1,023 $842 
Disaggregation of Sales
Sales by products and services, contract type, customer, and geographic region were as follows (in millions):
Quarter Ended September 27, 2026
AeronauticsMFCRMSSpace Total
Sales
Products$6,652 $4,120 $3,693 $2,964 $17,429 
Services1,562 381 818 521 3,282 
Total sales$8,214 $4,501 $4,511 $3,485 $20,711 
Sales by contract type
Fixed-price$5,541 $3,296 $2,843 $836 $12,516 
Cost-reimbursable2,673 1,205 1,668 2,649 8,195 
Total sales$8,214 $4,501 $4,511 $3,485 $20,711 
Sales by customer
U.S. Government$4,744 $3,244 $2,912 $3,391 $14,291 
International (a)
3,461 1,255 1,560 85 6,361 
U.S. commercial and other9 2 39 9 59 
Total sales$8,214 $4,501 $4,511 $3,485 $20,711 
Sales by geographic region
United States$4,753 $3,246 $2,951 $3,400 $14,350 
Europe1,733 595 420 32 2,780 
Asia Pacific1,217 235 711 53 2,216 
Middle East175 378 147 — 700 
Other336 47 282 — 665 
Total sales$8,214 $4,501 $4,511 $3,485 $20,711 
Nine Months Ended September 27, 2026
AeronauticsMFCRMSSpace Total
Sales
Products$18,765 $11,143 $10,381 $8,754 $49,043 
Services4,514 1,108 2,475 1,655 9,752 
Total sales$23,279 $12,251 $12,856 $10,409 $58,795 
Sales by contract type
Fixed-price$15,566 $9,015 $7,765 $2,651 $34,997 
Cost-reimbursable7,713 3,236 5,091 7,758 23,798 
Total sales$23,279 $12,251 $12,856 $10,409 $58,795 
Sales by customer
U.S. Government$13,622 $8,850 $8,119 $10,137 $40,728 
International (a)
9,632 3,398 4,600 248 17,878 
U.S. commercial and other25 3 137 24 189 
Total sales$23,279 $12,251 $12,856 $10,409 $58,795 
Sales by geographic region
United States$13,647 $8,853 $8,256 $10,161 $40,917 
Europe4,899 1,685 1,530 93 8,207 
Asia Pacific3,267 715 1,740 146 5,868 
Middle East526 895 448 9 1,878 
Other940 103 882 — 1,925 
Total sales$23,279 $12,251 $12,856 $10,409 $58,795 
Quarter Ended September 28, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$5,807 $3,256 $3,509 $2,739 $15,311 
Services1,449 368 864 617 3,298 
Total sales$7,256 $3,624 $4,373 $3,356 $18,609 
Sales by contract type
Fixed-price$4,758 $2,638 $2,733 $878 $11,007 
Cost-reimbursable2,498 986 1,640 2,478 7,602 
Total sales$7,256 $3,624 $4,373 $3,356 $18,609 
Sales by customer
U.S. Government$4,681 $2,633 $2,764 $3,293 $13,371 
International (a)
2,571 989 1,564 55 5,179 
U.S. commercial and other4 2 45 8 59 
Total sales$7,256 $3,624 $4,373 $3,356 $18,609 
Sales by geographic region
United States$4,685 $2,635 $2,809 $3,301 $13,430 
Europe1,245 401 343 22 2,011 
Asia Pacific926 281 764 32 2,003 
Middle East138 295 199 1 633 
Other262 12 258 — 532 
Total sales$7,256 $3,624 $4,373 $3,356 $18,609 
Nine Months Ended September 28, 2025
AeronauticsMFCRMSSpace Total
Sales
Products$17,513 $9,338 $10,337 $8,208 $45,396 
Services4,220 1,092 2,359 1,660 9,331 
Total sales$21,733 $10,430 $12,696 $9,868 $54,727 
Sales by contract type
Fixed-price$14,383 $7,525 $7,688 $2,732 $32,328 
Cost-reimbursable7,350 2,905 5,008 7,136 22,399 
Total sales$21,733 $10,430 $12,696 $9,868 $54,727 
Sales by customer
U.S. Government$13,969 $7,464 $8,409 $9,649 $39,491 
International (a)
7,742 2,957 4,117 201 15,017 
U.S. commercial and other22 9 170 18 219 
Total sales$21,733 $10,430 $12,696 $9,868 $54,727 
Sales by geographic region
United States$13,991 $7,473 $8,579 $9,667 $39,710 
Europe3,896 1,177 926 66 6,065 
Asia Pacific2,750 728 1,998 128 5,604 
Middle East445 1,012 630 7 2,094 
Other651 40 563 — 1,254 
Total sales$21,733 $10,430 $12,696 $9,868 $54,727 
(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 27% of our total consolidated sales for both the quarter and nine months ended September 27, 2026 and 26% of our total consolidated sales for both the quarter and nine months ended September 28, 2025.
Assets
Total assets for each of our business segments were as follows (in millions):
September 27,
2026		December 31,
2025
Assets
Aeronautics$16,098 $14,673 
MFC8,029 6,304 
RMS16,497 16,576 
Space 7,986 7,755 
Total business segment assets48,610 45,308 
Corporate assets (a)
15,900 14,532 
Total assets$64,510 $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.