Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 25, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-16411 | ||
Entity Registrant Name | NORTHROP GRUMMAN CORP /DE/ | ||
Entity Central Index Key | 0001133421 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 80-0640649 | ||
Entity Address, Address Line One | 2980 Fairview Park Drive | ||
Entity Address, City or Town | Falls Church, | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22042 | ||
City Area Code | 703 | ||
Local Phone Number | 280-2900 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | NOC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 51.2 | ||
Entity Common Stock, Shares Outstanding | 166,718,384 | ||
Documents Incorporated by Reference | Portions of Northrop Grumman Corporation’s Proxy Statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A for the 2021 Annual Meeting of Shareholders are incorporated by reference in Part III of this Form 10-K. |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 36,799 | $ 33,841 | $ 30,095 |
Operating costs and expenses | |||
General and administrative expenses | 3,413 | 3,290 | 3,011 |
Operating income | 4,065 | 3,969 | 3,780 |
Other (expense) income | |||
Interest expense | (593) | (528) | (562) |
FAS (non-service) pension benefit | 1,198 | 800 | 1,049 |
Mark-to-market pension and OPB expense | (1,034) | (1,800) | (655) |
Other, net | 92 | 107 | 130 |
Earnings before income taxes | 3,728 | 2,548 | 3,742 |
Federal and foreign income tax expense | 539 | 300 | 513 |
Net earnings | $ 3,189 | $ 2,248 | $ 3,229 |
Basic earnings per share | |||
Basic earnings per share | $ 19.08 | $ 13.28 | $ 18.59 |
Weighted-average common shares outstanding, in millions | 167.1 | 169.3 | 173.7 |
Diluted earnings per share | |||
Diluted earnings per share | $ 19.03 | $ 13.22 | $ 18.49 |
Weighted-average diluted shares outstanding, in millions | 167.6 | 170 | 174.6 |
Net earnings (from above) | $ 3,189 | $ 2,248 | $ 3,229 |
Other comprehensive loss | |||
Change in unamortized prior service credit, net of tax expense of $14 in 2020, $15 in 2019 and $19 in 2018 | (41) | (47) | (60) |
Change in cumulative translation adjustment and other, net | 10 | 2 | (14) |
Other comprehensive loss, net of tax | (31) | (45) | (74) |
Comprehensive income | 3,158 | 2,203 | 3,155 |
Product [Member] | |||
Cost of Goods and Services Sold | 21,559 | 18,675 | 15,785 |
Revenues | 27,015 | 23,852 | 20,469 |
Service [Member] | |||
Cost of Goods and Services Sold | 7,762 | 7,907 | 7,519 |
Revenues | $ 9,784 | $ 9,989 | $ 9,626 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Tax expense on the change in unamortized prior service credits | $ 14 | $ 15 | $ 19 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 4,907 | $ 2,245 |
Accounts receivable, net | 1,501 | 1,326 |
Unbilled receivables, net | 5,140 | 5,334 |
Inventoried costs, net | 759 | 783 |
Prepaid expenses and other current assets | 1,402 | 997 |
Assets of disposal group held for sale | 1,635 | 0 |
Total current assets | 15,344 | 10,685 |
Property, plant and equipment, net of accumulated depreciation of $6,335 for 2020 and $5,850 for 2019 | 7,071 | 6,912 |
Operating lease right-of-use assets | 1,533 | 1,511 |
Goodwill | 17,518 | 18,708 |
Intangible assets, net | 783 | 1,040 |
Deferred tax assets | 311 | 508 |
Other non-current assets | 1,909 | 1,725 |
Total assets | 44,469 | 41,089 |
Liabilities | ||
Trade accounts payable | 1,806 | 2,226 |
Accrued employee compensation | 1,997 | 1,865 |
Advance payments and billings in excess of costs incurred | 2,517 | 2,237 |
Other current liabilities | 3,002 | 3,106 |
Liabilities of disposal group held for sale | 258 | 0 |
Total current liabilities | 9,580 | 9,434 |
Long-term debt, net of current portion of $742 for 2020 and $1,109 for 2019 | 14,261 | 12,770 |
Pension and other postretirement benefit plan liabilities | 6,498 | 6,979 |
Operating lease liabilities | 1,343 | 1,308 |
Other non-current liabilities | 2,208 | 1,779 |
Total liabilities | 33,890 | 32,270 |
Commitments and contingencies (Note 12) | ||
Shareholders’ equity | ||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2020—166,717,179 and 2019—167,848,424 | 167 | 168 |
Paid-in capital | 58 | 0 |
Retained earnings | 10,482 | 8,748 |
Accumulated other comprehensive loss | (128) | (97) |
Total shareholders’ equity | 10,579 | 8,819 |
Total liabilities and shareholders’ equity | $ 44,469 | $ 41,089 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 6,335 | $ 5,850 |
Long-term Debt, Current Maturities | $ 742 | $ 1,109 |
Preferred Stock, par value | $ 1 | $ 1 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 166,717,179 | 167,848,424 |
Common stock, shares outstanding | 166,717,179 | 167,848,424 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net earnings | $ 3,189 | $ 2,248 | $ 3,229 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 1,267 | 1,265 | 800 |
Mark-to-market pension and OPB expense | 1,034 | 1,800 | 655 |
Stock-based compensation | 90 | 127 | 86 |
Deferred income taxes | 210 | (509) | 234 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (285) | 122 | 202 |
Unbilled receivables, net | 160 | (335) | (297) |
Inventoried costs, net | 18 | (135) | (37) |
Prepaid expenses and other assets | (147) | (78) | (56) |
Accounts payable and other liabilities | 719 | 617 | 381 |
Income taxes payable, net | (238) | (63) | (258) |
Retiree benefits | (1,678) | (703) | (1,083) |
Other, net | (34) | (59) | (29) |
Net cash provided by operating activities | 4,305 | 4,297 | 3,827 |
Investing activities | |||
Acquisition of Orbital ATK, net of cash acquired | 0 | 0 | (7,657) |
Capital expenditures | (1,420) | (1,264) | (1,249) |
Proceeds from Sale of Equipment to a Customer | 205 | 0 | 0 |
Other investing activities, net | 4 | 57 | 28 |
Net cash used in investing activities | (1,211) | (1,207) | (8,878) |
Financing activities | |||
Payments of long-term debt | (1,027) | (500) | (2,276) |
Net proceeds from issuance of long-term debt | 2,239 | 0 | 0 |
Payments to credit facilities | (78) | (31) | (320) |
Net (repayments of) borrowings on commercial paper | 0 | (198) | 198 |
Common stock repurchases | (490) | (744) | (1,263) |
Cash dividends paid | (953) | (880) | (821) |
Payments of employee taxes withheld from share-based awards | (66) | (65) | (85) |
Other financing activities, net | (57) | (6) | (28) |
Net cash used in financing activities | (432) | (2,424) | (4,595) |
Increase (decrease) in cash and cash equivalents | 2,662 | 666 | (9,646) |
Cash and cash equivalents, beginning of year | 2,245 | 1,579 | 11,225 |
Cash and cash equivalents, end of year | $ 4,907 | $ 2,245 | $ 1,579 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Common stock | Paid-in capital | Retained earnings | Accumulated other comprehensive loss |
Beginning of year at Dec. 31, 2017 | $ 174 | $ 44 | $ 6,913 | $ 1 | |
Impact from adoption of ASU 2018-02 and ASU 2016-01 | (21) | 21 | |||
Common stock repurchased | (4) | (34) | (1,225) | ||
Shares issued for employee stock awards and options | 1 | (10) | (6) | ||
Other | $ 0 | 0 | |||
Net earnings | 3,229 | 3,229 | |||
Dividends declared | (822) | ||||
Other comprehensive loss, net of tax | (74) | (74) | |||
End of year at Dec. 31, 2018 | $ 8,187 | 171 | 0 | 8,068 | (52) |
Cash dividends declared per share | $ 4.70 | ||||
Impact from adoption of ASU 2018-02 and ASU 2016-01 | 0 | 0 | |||
Common stock repurchased | (3) | 0 | (751) | ||
Shares issued for employee stock awards and options | 0 | 0 | 63 | ||
Other | $ 0 | 0 | |||
Net earnings | 2,248 | 2,248 | |||
Dividends declared | (880) | ||||
Other comprehensive loss, net of tax | (45) | (45) | |||
End of year at Dec. 31, 2019 | $ 8,819 | 168 | 0 | 8,748 | (97) |
Cash dividends declared per share | $ 5.16 | ||||
Impact from adoption of ASU 2018-02 and ASU 2016-01 | 0 | 0 | |||
Common stock repurchased | (1) | 0 | (479) | ||
Shares issued for employee stock awards and options | 0 | 63 | (36) | ||
Other | $ 11 | (5) | |||
Net earnings | 3,189 | 3,189 | |||
Dividends declared | (951) | ||||
Other comprehensive loss, net of tax | (31) | (31) | |||
End of year at Dec. 31, 2020 | $ 10,579 | $ 167 | $ 58 | $ 10,482 | $ (128) |
Cash dividends declared per share | $ 5.67 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Northrop Grumman Corporation (herein referred to as “Northrop Grumman,” the “company,” “we,” “us,” or “our”) is a leading global aerospace and defense company. We use our broad portfolio of capabilities and technologies to create and deliver innovative platforms, systems and solutions in space; manned and autonomous airborne systems, including strike; strategic deterrence systems; hypersonics; missile defense; weapons systems; cyber; command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR); and logistics and modernization. We participate in many high-priority defense and government programs in the United States (U.S.) and abroad. We conduct most of our business with the U.S. government, principally the Department of Defense (DoD) and intelligence community. We also conduct business with foreign, state and local governments, as well as commercial customers. Effective January 1, 2020, the company reorganized its sectors to better align the company’s broad portfolio to serve its customers’ needs. At December 31, 2020, the company was aligned in four operating sectors, which also comprise our reportable segments: Aeronautics Systems, Defense Systems, Mission Systems and Space Systems. On June 6, 2018 (the “Merger date”), the company completed its previously announced acquisition of Orbital ATK, Inc. (“Orbital ATK”) (the “Merger”). On the Merger date, Orbital ATK became a wholly-owned subsidiary of the company and its name was changed to Northrop Grumman Innovation Systems, Inc., which we established as a new, fourth business sector (“Innovation Systems”). The operating results of legacy Innovation Systems subsequent to the Merger date have been included in the company’s consolidated results of operations and, upon our January 1, 2020 sector realignment, are reflected in the Space Systems, Defense Systems and Aeronautics Systems sectors. See Note 2 for further information regarding the Merger. Principles of Consolidation The consolidated financial statements include the accounts of Northrop Grumman and its subsidiaries and joint ventures or other investments for which we consolidate the financial results. Intercompany accounts, transactions and profits are eliminated in consolidation. Investments in equity securities and joint ventures where the company has significant influence, but not control, are accounted for using the equity method. Basis of Presentation Beginning in the second quarter of 2020, the company no longer considers certain unallowable costs and environmental matters that are principally managed at the corporate office as part of management’s evaluation of segment operating performance. As a result, certain unallowable compensation and other costs, which were previously included in segment operating results, are now reported in Unallocated corporate expense within operating income. In addition, certain accrued and deferred costs, as well as unallowable costs, if any, associated with certain environmental matters that were previously reflected in segment assets and operating results are now reflected in corporate assets and Unallocated corporate expense within operating income. The impact of these changes are reflected in the amounts in this Form 10-K. See Part II, Item 5 in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information regarding the impact of these changes on the company’s prior period segment operating income. On December 7, 2020, we entered into a definitive agreement to sell our IT and mission support services business for $3.4 billion in cash. The IT and mission support services business is comprised of the majority of the Information Solutions and Services (IS&S) division of Defense Systems (excluding our Vinnell Arabia business); select cyber, intelligence and missions support programs, which are part of the Cyber and Intelligence Mission Solutions (CIMS) division of Mission Systems; and the Space Technical Services business unit of Space Systems. The assets and liabilities of the IT and mission support services business were classified as held for sale in the consolidated statement of financial position as of December 31, 2020 and no impairment losses were recognized in the consolidated statement of earnings and comprehensive income for the year ended December 31, 2020. We expect to complete the sale of the IT and mission support services business in the first quarter of 2021, subject to regulatory approvals and customary closing conditions. See Note 2 for further information regarding the divestiture and Note 8 for the allocation of goodwill to the divestiture. Accounting Estimates The company’s consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP” or “FAS”). The preparation thereof requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of sales and expenses during the reporting period. Estimates have been prepared using the most current and best available information; however, actual results could differ materially from those estimates. Revenue Recognition The majority of our sales are derived from long-term contracts with the U.S. government for the development or production of goods, the provision of services, or a combination of both. The company classifies sales as product or service based on the predominant attributes of each performance obligation. The company recognizes revenue for each separately identifiable performance obligation in a contract representing a promise to transfer a distinct good or service to a customer. In most cases, goods and services provided under the company’s contracts are accounted for as single performance obligations due to the complex and integrated nature of our products and services. These contracts generally require significant integration of a group of goods and/or services to deliver a combined output. In some contracts, the company provides multiple distinct goods or services to a customer, most commonly when a contract covers multiple phases of the product life cycle (e.g., development, production, sustainment, etc.). In those cases, the company accounts for the distinct contract deliverables as separate performance obligations and allocates the transaction price to each performance obligation based on its relative standalone selling price, which is generally estimated using cost plus a reasonable margin. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not considered to be separate performance obligations. Assets recognized from the costs to obtain or fulfill a contract are not material. Contracts are often modified for changes in contract specifications or requirements, which may result in scope and/or price changes. Most of the company’s contract modifications are for goods or services that are not distinct in the context of the contract and are therefore accounted for as part of the original performance obligation through a cumulative estimate-at-completion (EAC) adjustment. The company recognizes revenue as control is transferred to the customer, either over time or at a point in time. In general, our U.S. government contracts contain termination for convenience and/or other clauses that generally provide the customer rights to goods produced and/or in-process. Similarly, our non-U.S. government contracts generally contain contractual termination clauses or entitle the company to payment for work performed to date for goods and services that do not have an alternative use. For most of our contracts, control is effectively transferred during the period of performance, so we generally recognize revenue over time using the cost-to-cost method (cost incurred relative to total cost estimated at completion). The company believes this represents the most appropriate measurement towards satisfaction of its performance obligations. Revenue for contracts in which the control of goods produced does not transfer until delivery to the customer is recognized at a point in time (i.e., typically upon delivery). Contract Estimates Use of the cost-to-cost method requires us to make reasonably dependable estimates regarding the revenue and cost associated with the design, manufacture and delivery of our products and services. The company estimates profit on these contracts as the difference between total estimated sales and total estimated cost at completion and recognizes that profit as costs are incurred. Significant judgment is used to estimate total sales and cost at completion. Contract sales may include estimates of variable consideration, including cost or performance incentives (such as award and incentive fees), contract claims and requests for equitable adjustment (REAs). Variable consideration is included in total estimated sales to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. We estimate variable consideration as the most likely amount to which we expect to be entitled. We recognize changes in estimated contract sales or costs and the resulting changes in contract profit on a cumulative basis. Cumulative EAC adjustments represent the cumulative effect of the changes on current and prior periods; sales and operating margins in future periods are recognized as if the revised estimates had been used since contract inception. If it is determined that a loss is expected to result on an individual performance obligation, the entire amount of the estimable future loss, including an allocation of general and administrative (G&A) costs, is charged against income in the period the loss is identified. The following table presents the effect of aggregate net EAC adjustments: Year Ended December 31 $ in millions, except per share data 2020 2019 2018 Revenue $ 504 $ 538 $ 631 Operating income 466 480 577 Net earnings (1) 368 379 456 Diluted earnings per share (1) 2.20 2.23 2.61 (1) Based on a 21% federal statutory tax rate. EAC adjustments on a single performance obligation can have a material effect on the company’s financial statements. When such adjustments occur, we generally disclose the nature, underlying conditions and financial impact of the adjustments. No such adjustments were material to the financial statements during the years ended December 31, 2020 and 2019. During the second quarter of 2018, the company recognized $69 million of favorable EAC adjustments on multiple restricted programs at Aeronautics Systems. Backlog Backlog represents the future sales we expect to recognize on firm orders received by the company and is equivalent to the company’s remaining performance obligations at the end of each period. It comprises both funded backlog (firm orders for which funding is authorized and appropriated) and unfunded backlog. Unexercised contract options and indefinite delivery indefinite quantity (IDIQ) contracts are not included in backlog until the time an option or IDIQ task order is exercised or awarded. Company backlog as of December 31, 2020 was $81.0 billion. We expect to recognize approximately 40 percent and 60 percent of our December 31, 2020 backlog as revenue over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter. Contract Assets and Liabilities For each of the company’s contracts, the timing of revenue recognition, customer billings, and cash collections results in a net contract asset or liability at the end of each reporting period. Fixed-price contracts are typically billed to the customer either using progress payments, whereby amounts are billed monthly as costs are incurred or work is completed, or performance based payments, which are based upon the achievement of specific, measurable events or accomplishments defined and valued at contract inception. Cost-type contracts are typically billed to the customer on a monthly or semi-monthly basis. Contract assets are equivalent to and reflected as Unbilled receivables in the consolidated statements of financial position and are primarily related to long-term contracts where revenue recognized under the cost-to-cost method exceeds amounts billed to customers. Unbilled receivables are classified as current assets and, in accordance with industry practice, include amounts that may be billed and collected beyond one year due to the long-cycle nature of many of our contracts. Accumulated contract costs in unbilled receivables include costs such as direct production costs, factory and engineering overhead, production tooling costs, and allowable G&A. Unbilled receivables also include certain estimates of variable consideration described above. These contract assets are not considered a significant financing component of the company’s contracts as the payment terms are intended to protect the customer in the event the company does not perform on its obligations under the contract. Contract liabilities are equivalent to and reflected as Advance payments and billings in excess of costs incurred in the consolidated statements of financial position. Certain customers make advance payments prior to the company’s satisfaction of its obligations on the contract. These amounts are recorded as contract liabilities until such obligations are satisfied, either over time as costs are incurred or at a point in time when deliveries are made. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. Net contract assets are as follows: $ in millions December 31, 2020 December 31, 2019 $ Change % Change Unbilled receivables, net $ 5,140 $ 5,334 $ (194) (4) % Advance payments and amounts in excess of costs incurred (2,517) (2,237) (280) 13 % Net contract assets $ 2,623 $ 3,097 $ (474) (15) % The change in the balances of the company’s contract assets and liabilities primarily results from timing differences between revenue recognition and customer billings and/or payments. Net contract assets as of December 31, 2020 decreased 15 percent from the prior year, due to an increase in Advance payments and amounts in excess of costs incurred as well as lower Unbilled receivables, net. Higher Advance payments and amounts in excess of costs incurred were driven by Mission Systems and Space Systems. Lower Unbilled receivables, net were driven by Defense Systems and were partially offset by higher Unbilled receivables, net at Aeronautics Systems and Space Systems. The amount of revenue recognized for the years ended December 31, 2020, 2019 and 2018 that was included in the contract liability balance at the beginning of each year was $1.6 billion, $1.3 billion and $1.3 billion, respectively. Disaggregation of Revenue See Note 16 for information regarding the company’s sales by customer type, contract type and geographic region for each of our segments. We believe those categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. General and Administrative Expenses In accordance with the regulations that govern cost accounting requirements for government contracts, most general management and corporate expenses incurred at the segment and corporate locations are considered allowable and allocable costs. Allowable and allocable G&A costs, including independent research and development (IR&D) and bid and proposal (B&P) costs, are allocated on a systematic basis to contracts in progress and are included as a component of total estimated contract costs. Research and Development Company-sponsored research and development activities primarily include efforts related to government programs. Company-sponsored IR&D expenses totaled $1.1 billion, $953 million and $764 million in 2020, 2019 and 2018, respectively, which represented 2.9 percent, 2.8 percent and 2.5 percent of total sales, respectively. Customer-funded research and development activities are charged directly to the related contracts. Income Taxes Provisions for federal and foreign income taxes are calculated on reported earnings before income taxes based on current tax law and include the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently payable because certain items of income and expense are recognized in different periods for financial reporting purposes than for income tax purposes. The company recognizes federal and foreign interest accrued related to unrecognized tax benefits in income tax expense. Federal tax penalties are recognized as a component of income tax expense. In accordance with the regulations that govern cost accounting requirements for government contracts, current state and local income and franchise taxes are generally considered allowable and allocable costs and, consistent with industry practice, are recorded in operating costs and expenses. The company generally recognizes changes in deferred state taxes and unrecognized state tax benefits in unallocated corporate expenses. Uncertain tax positions reflect the company’s expected treatment of tax positions taken in a filed tax return, or planned to be taken in a future tax return or claim, which have not been reflected in measuring income tax expense or taxes payable for financial reporting purposes. Until these positions are sustained by the taxing authorities or the statute of limitations concerning such issues lapses, the company does not generally recognize the tax benefits resulting from such positions and reports the tax effects as a liability for uncertain tax positions in its consolidated statements of financial position. Cash and Cash Equivalents Cash and cash equivalents are comprised of cash in banks and highly liquid instruments with original maturities of three months or less, primarily consisting of bank time deposits and investments in institutional money market funds. Cash in bank accounts often exceeds federally insured limits. Fair Value of Financial Instruments The company measures the fair value of its financial instruments using observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 - Significant inputs to the valuation model are unobservable. The company holds a portfolio of marketable securities consisting of securities to partially fund non-qualified employee benefit plans. A portion of these securities are held in common/collective trust funds and are measured at fair value using net asset value (NAV) per share as a practical expedient. Marketable securities accounted for as trading are recorded at fair value on a recurring basis and are included in Other non-current assets in the consolidated statements of financial position. Changes in unrealized gains and losses on trading securities are included in Other, net in the consolidated statements of earnings and comprehensive income. Investments in held-to-maturity instruments with original maturities greater than three months are recorded at amortized cost. Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value on a recurring basis. Changes in the fair value of derivative financial instruments that are designated as fair value hedges are recorded in net earnings, while the changes in the fair value of derivative financial instruments that are designated as cash flow hedges are recorded as a component of other comprehensive income until settlement. For derivative financial instruments not designated as hedging instruments, gains or losses resulting from changes in the fair value are reported in Other, net in the consolidated statements of earnings and comprehensive income. The company uses derivative financial instruments to manage its exposure to foreign currency exchange risk related to receipts from customers and payments to suppliers denominated in foreign currencies (i.e., foreign currency forward contracts). For foreign currency forward contracts, where model-derived valuations are appropriate, the company utilizes the income approach to determine the fair value and uses the applicable London Interbank Offered Rate (LIBOR) swap rates. The company does not use derivative financial instruments for trading or speculative purposes, nor does it use leveraged financial instruments. Credit risk related to derivative financial instruments is considered minimal and is managed through the use of multiple counterparties with high credit standards and periodic settlements of positions, as well as by entering into master netting agreements with most of our counterparties. Inventoried Costs Inventoried costs generally comprise costs associated with unsatisfied performance obligations on contracts accounted for using point in time revenue recognition, costs incurred in excess of existing contract requirements or funding that are probable of recovery and other accrued contract costs that are expected to be recoverable when allocated to specific contracts. Product inventory primarily consists of raw materials and is stated at the lower of cost or net realizable value, generally using the average cost method. Accumulated contract costs in inventoried costs include costs such as direct production costs, factory and engineering overhead, production tooling costs, and allowable G&A. Inventoried costs are classified as current assets and, in accordance with industry practice, include amounts related to contracts having production cycles longer than one year. Cash Surrender Value of Life Insurance Policies The company maintains whole life insurance policies on a group of executives, which are recorded at their cash surrender value as determined by the insurance carrier. The company also has split-dollar life insurance policies on former officers and executives from acquired businesses, which are recorded at the lesser of their cash surrender value or premiums paid. These policies are utilized as a partial funding source for deferred compensation and other non-qualified employee retirement plans. As of December 31, 2020 and 2019, the carrying values associated with these policies were $419 million and $380 million, respectively, and are recorded in Other non-current assets in the consolidated statements of financial position. Property, Plant and Equipment Property, plant and equipment are depreciated over the estimated useful lives of individual assets. Most assets are depreciated using declining-balance methods, with the remainder using the straight-line method. Depreciation expense is generally recorded in the same segment where the related assets are held. However, the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations is recorded in unallocated corporate expense within operating income as such depreciation is not considered part of management’s evaluation of segment operating performance. Major classes of property, plant and equipment and their useful lives are as follows: December 31 Useful life in years, $ in millions Useful Life 2020 2019 Land and land improvements Up to 40 (1) $ 628 $ 619 Buildings and improvements Up to 45 2,762 2,575 Machinery and other equipment Up to 20 7,206 6,997 Capitalized software costs 3-5 602 606 Leasehold improvements Lease Term (2) 2,208 1,965 Property, plant and equipment, at cost 13,406 12,762 Accumulated depreciation (6,335) (5,850) Property, plant and equipment, net $ 7,071 $ 6,912 (1) Land is not a depreciable asset. (2) Leasehold improvements are depreciated over the shorter of the useful life of the asset or lease term. During the fourth quarter of 2020, the company completed a sale of equipment to a customer on a restricted Aeronautics Systems program for $444 million. The company previously intended to use the equipment for internal purposes so we recognized the acquisition costs as capital expenditures and included the equipment in property, plant and equipment. As we regularly sell this type of equipment to customers in the ordinary course of business, we recorded the sale as a revenue transaction and included the net book value of the equipment in Operating costs and expenses. We recognized operating income in connection with the sale at a margin rate that was dilutive to the Aeronautics Systems margin rate. Although we generally classify proceeds from revenue transactions as cash inflows from operating activities, we recognized the proceeds from this transaction as cash inflows from investing activities, consistent with our prior recognition of the cost to acquire the equipment as capital expenditures. The company received cash payments of $205 million related to the equipment sale during 2020, and included it in Proceeds from sale of equipment to a customer in the consolidated statement of cash flows. The remaining $239 million was included in non-cash investing activities at December 31, 2020 and is expected to be collected in 2021. Non-cash investing activities also include capital expenditures incurred but not yet paid of $72 million, $166 million and $185 million as of December 31, 2020, 2019 and 2018, respectively. Goodwill and Other Purchased Intangible Assets The company tests goodwill for impairment at least annually as of December 31, or when an indicator of potential impairment exists. When performing the goodwill impairment test, the company uses a discounted cash flow approach corroborated by comparative market multiples, where appropriate, to determine the fair value of its reporting units. Goodwill and other purchased intangible asset balances are included in the identifiable assets of their assigned business segment. However, the company includes the amortization of other purchased intangible assets in unallocated corporate expense within operating income as such amortization is not considered part of management’s evaluation of segment operating performance. The company’s customer-related intangible assets are generally amortized over their respective useful lives based on the pattern in which the future economic benefits of the intangible assets are expected to be consumed. Other intangible assets are generally amortized on a straight-line basis over their estimated useful lives. Leases The company leases certain buildings, land and equipment. Under ASC 842, at contract inception we determine whether a contract is or contains a lease and whether the lease should be classified as an operating or finance lease. Operating lease balances are included in Operating lease right-of-use assets, Other current liabilities, and Operating lease liabilities in our consolidated statements of financial position. The company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. We use our incremental borrowing rate based on the information available at commencement date to determine the present value of future payments and the appropriate lease classification. Many of our leases include renewal options aligned with our contract terms. We define the initial lease term to include renewal options determined to be reasonably certain. We do not recognize a right-of-use asset and a lease liability for leases with an initial term of 12 months or less; we recognize lease expense for these leases on a straight-line basis over the lease term. We elected the practical expedient to not separate lease components from nonlease components and applied that practical expedient to all material classes of leased assets. Many of the company’s real property lease agreements contain incentives for tenant improvements, rent holidays or rent escalation clauses. For tenant improvement incentives received, if the incentive is determined to be a leasehold improvement owned by the lessee, the company generally records the incentives as a reduction to the right-of-use asset, which reduces rent expense over the lease term. For rent holidays and rent escalation clauses during the lease term, the company records rental expense on a straight-line basis over the term of the lease. For these lease incentives, the company uses the date of initial possession as the commencement date, which is generally when the company is given the right of access to the space and begins to make improvements in preparation for intended use. Finance leases are not material to our consolidated financial statements and the company is not a lessor in any material arrangements. We do not have any material restrictions or covenants in our lease agreements, sale-leaseback transactions, land easements or residual value guarantees. Litigation, Commitments and Contingencies We accrue for litigation, commitments and contingencies when management, after considering the facts and circumstances of each matter as then known to management, has determined it is probable a liability will be found to have been incurred and the amount of the loss can be reasonably estimated. When only a range of amounts is reasonably estimable and no amount within the range is more likely than another, the low end of the range is recorded. Legal fees are expensed as incurred. Due to the inherent uncertainties surrounding gain contingencies, we generally do not recognize potential gains until realized. Environmental Costs We accrue for environmental liabilities when management determines that, based on the facts and circumstances known to the company, it is probable the company will incur costs to address environmental impacts and the costs are reasonably estimable. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, we record the low end of the range. The company typically projects environmental costs for up to 30 years, records environmental liabilities on an undiscounted basis, and excludes asset retirement obligations and certain legal costs. At sites involving multiple parties, we accrue environmental liabilities based upon our expected share of liability, taking into account the financial viability of other liable parties. Retirement Benefits The company sponsors various defined benefit pension plans and defined contribution retirement plans covering substantially all of its employees. In most cases, our defined contribution plans provide for a company match of employee contributions. The company also provides postretirement benefits other than pensions to eligible retirees and qualifying dependents, consisting principally of health care and life insurance benefits. The liabilities, unamortized prior service credits and annual income or expense of the company’s defined benefit pension and other postretirement benefit plans (OPB) are determined using methodologies that involve several actuarial assumptions. Because U.S. government regulations provide for the costs of pension and OPB plans to be charged to our contracts in accordance with the Federal Acquisition Regulation (FAR) and the related U.S. Government Cost Accounting Standards (CAS) that govern such plans, we calculate retiree benefit plan costs under both FAS and CAS methods. While both FAS and CAS recognize a normal service cost component in measuring periodic pension cost, there are differences in the way the components of annual pension costs are calculated under each method. Measuring plan obligations under FAS and CAS includes different assumptions and models, such as in estimating returns on plan assets, calculating interest expense and the periods over which gains/losses related to pension assets and actuarial changes are recognized. As a |
Commitments and Contingencies Disclosure | 12. COMMITMENTS AND CONTINGENCIES U.S. Government Cost Claims and Contingencies From time to time, the company is advised of claims by the U.S. government concerning certain potential disallowed costs, plus, at times, penalties and interest. When such findings are presented, the company and U.S. government representatives engage in discussions to enable the company to evaluate the merits of these claims, as well as to assess the amounts being claimed. Where appropriate, provisions are made to reflect the company’s estimated exposure for such potential disallowed costs. Such provisions are reviewed periodically using the most recent information available. The company believes it has adequately reserved for disputed amounts that are probable and reasonably estimable, and that the outcome of any such matters would not have a material adverse effect on its consolidated financial position as of December 31, 2020, or its annual results of operations and/or cash flows. The U.S. government has raised questions about an interest rate assumption used by the company to determine our CAS pension expense in previous years and in our current forward pricing rate proposal. On June 1, 2020, the government provided written notice that the assumptions the company used during the period 2013-2019 were potentially noncompliant with CAS. We submitted a formal response on July 31, 2020, which we believe demonstrates the appropriateness of the assumptions used. On November 24, 2020, the government replied to the company’s response, disagreeing with our position and requesting additional input. We are engaging further with the government. The sensitivity to changes in interest rate assumptions makes it reasonably possible the outcome of this matter could have a material adverse effect on our financial position, results of operations and/or cash flows, although we are not currently able to estimate a range of any potential loss. Environmental Matters The table below summarizes the amount accrued for environmental remediation costs, management’s estimate of the amount of reasonably possible future costs in excess of accrued costs and the deferred costs expected to be recoverable through overhead charges on U.S. government contracts as of December 31, 2020 and 2019: $ in millions Accrued Costs (1)(2) Reasonably Possible Future Costs in excess of Accrued Costs (2) Deferred Costs (3) December 31, 2020 $ 614 $ 346 $ 529 December 31, 2019 531 448 436 (1) As of December 31, 2020, $237 million is recorded in Other current liabilities and $377 million is recorded in Other non-current liabilities. (2) Estimated remediation costs are not discounted to present value. The reasonably possible future costs in excess of accrued costs do not take into consideration amounts expected to be recoverable through overhead charges on U.S. government contracts. (3) As of December 31, 2020, $210 million is deferred in Prepaid expenses and other current assets and $319 million is deferred in Other non-current assets. These amounts are evaluated for recoverability on a routine basis. Although management cannot predict whether new information gained as our environmental remediation projects progress, or as changes in facts and circumstances occur, will materially affect the estimated liability accrued, except with respect to Bethpage, we do not anticipate that future remediation expenditures associated with our currently identified projects will have a material adverse effect on the company’s consolidated financial position as of December 31, 2020, or its annual results of operations and/or cash flows. With respect to Bethpage, as discussed in Note 11, in December 2019, the State of New York issued an Amended Record of Decision, seeking to impose additional remedial requirements beyond those the company previously had been taking; the State also communicated that it was assessing potential natural resource damages. In December 2020, the parties reached a tentative agreement regarding the steps the company will take to implement the State’s Amended Record of Decision and to resolve the certain potential other claims, including for natural resource damages. The State of New York is preparing to file a new consent decree reflecting the agreement and to seek court approval. As discussed in Note 11, the applicable remediation standards and other requirements to which we are subject may continue to change, our costs may increase materially, and those costs may not be fully recoverable. Financial Arrangements In the ordinary course of business, the company uses standby letters of credit and guarantees issued by commercial banks and surety bonds issued principally by insurance companies to guarantee the performance on certain obligations. At December 31, 2020, there were $456 million of stand-by letters of credit and guarantees and $94 million of surety bonds outstanding. Indemnifications The company has provided indemnifications for certain environmental, income tax and other potential liabilities in connection with certain of its divestitures. The settlement of these liabilities is not expected to have a material adverse effect on the company’s consolidated financial position as of December 31, 2020, or its annual results of operations and/or cash flows. |
Acquisition and Dispositions
Acquisition and Dispositions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 2. ACQUISITIONS AND DISPOSITIONS Acquisition of Orbital ATK On June 6, 2018, the company completed its previously announced acquisition of Orbital ATK, by acquiring all of the outstanding shares of Orbital ATK for a purchase price of $7.7 billion in cash. On the Merger date, Orbital ATK became a wholly-owned subsidiary of the company and its name was changed to Northrop Grumman Innovation Systems, Inc. We established Innovation Systems as a new, fourth business sector. Its main products include precision munitions and armaments; tactical missiles and subsystems; ammunition; launch vehicles; space and strategic propulsion systems; aerospace structures; space exploration products; and national security and commercial satellite systems and related components/services. The acquisition was financed with proceeds from the company’s debt financing completed in October 2017 and cash on hand. We believe this acquisition has enabled us to broaden our capabilities and offerings, provide additional innovative solutions to meet our customers’ emerging requirements, create value for shareholders and provide expanded opportunities for our combined employees. The operating results of legacy Innovation Systems subsequent to the Merger date are included in the company’s consolidated results of operations and reflected in the Space Systems, Defense Systems and Aeronautics Systems sectors. We recognized customer sales of $3.1 billion, operating income of $342 million and net earnings of $273 million for the period from the Merger date to December 31, 2018. The company recognized $29 million of acquisition-related costs that were expensed as incurred during the year ended December 31, 2018. These costs are included in Product and Service cost in the consolidated statements of earnings and comprehensive income. Purchase Price Allocation The acquisition was accounted for as a purchase business combination. As such, the company recorded the assets acquired and liabilities assumed at fair value, with the excess of the purchase price over the fair value of assets acquired and liabilities assumed recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. In some cases, the company used discounted cash flow analyses, which were based on our best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. The Merger date fair value of the consideration transferred totaled $7.7 billion in cash, which was comprised of the following: $ in millions, except per share amounts Purchase price Shares of Orbital ATK common stock outstanding as of the Merger date 57,562,152 Cash consideration per share of Orbital ATK common stock $ 134.50 Total purchase price $ 7,742 The following purchase price allocation table presents the company’s final determination of the fair values of assets acquired and liabilities assumed at the Merger date: $ in millions As of Cash and cash equivalents $ 85 Accounts receivable 596 Unbilled receivables 1,237 Inventoried costs 220 Other current assets 237 Property, plant and equipment 1,509 Goodwill 6,259 Intangible assets 1,525 Other non-current assets 151 Total assets acquired 11,819 Trade accounts payable (397) Accrued employee compensation (158) Advance payments and billings in excess of costs incurred (222) Below market contracts (1) (151) Other current liabilities (412) Long-term debt (1,687) Pension and OPB plan liabilities (613) Deferred tax liabilities (248) Other non-current liabilities (189) Total liabilities assumed (4,077) Total purchase price $ 7,742 (1) Included in Other current liabilities in the consolidated statements of financial position. The following table presents a summary of purchased intangible assets and their related estimated useful lives: Fair Value Estimated Useful Life in Years Customer contracts $ 1,245 9 Commercial customer relationships 280 13 Total customer-related intangible assets $ 1,525 The purchase price allocation resulted in the recognition of $6.3 billion of goodwill, which was allocated to the Space Systems, Defense Systems and Aeronautics Systems sectors. The goodwill recognized is attributable to expected revenue synergies generated by the integration of Northrop Grumman products and technologies with those of legacy Orbital ATK, synergies resulting from the consolidation or elimination of certain costs, and intangible assets that do not qualify for separate recognition, such as the assembled workforce of Orbital ATK. None of the goodwill is expected to be deductible for tax purposes. Unaudited Supplemental Pro Forma Information The following table presents unaudited pro forma financial information prepared in accordance with Article 11 of Regulation S-X for the year ended December 31, 2018 and computed as if Orbital ATK had been included in our results as of January 1, 2017: $ in millions, except per share amounts Sales $ 32,319 Net earnings 3,417 Diluted earnings per share 19.57 The unaudited supplemental pro forma financial data has been calculated after applying our accounting policies and adjusting the historical results of Orbital ATK with pro forma adjustments, net of tax, that assume the acquisition occurred on January 1, 2017. Significant pro forma adjustments include the following: 1. The elimination of intercompany sales and costs of sales between the company and Orbital ATK of $80 million for the year ended December 31, 2018. 2. The elimination of nonrecurring transaction costs incurred by the company and Orbital ATK in connection with the Merger of $71 million for the year ended December 31, 2018. 3. The recognition of additional depreciation expense, net of removal of historical depreciation expense, of $8 million related to the step-up in fair value of acquired property, plant and equipment for the year ended December 31, 2018. 4. The recognition of additional amortization expense, net of removal of historical amortization expense, of $90 million related to the fair value of acquired intangible assets for the year ended December 31, 2018. 5. The elimination of Orbital ATK’s historical amortization of net actuarial losses and prior service credits and impact of the revised pension and OPB net periodic benefit cost as determined under the company’s plan assumptions of $51 million for the year ended December 31, 2018. 6. The income tax effect on the pro forma adjustments, which was calculated using the 21% federal statutory tax rate in effect in 2018, of $(5) million for the year ended December 31, 2018. The unaudited pro forma financial information does not reflect the potential realization of revenue synergies or cost savings, nor does it reflect other costs relating to the integration of the two companies. This unaudited pro forma financial information should not be considered indicative of the results that would have actually occurred if the acquisition had been consummated on January 1, 2017, nor are they indicative of future results. Disposition of IT and Mission Support Services Business On December 7, 2020, we entered into a definitive agreement to sell our IT and mission support services business for $3.4 billion in cash. The IT and mission support services business is comprised of the majority of the Information Solutions and Services (IS&S) division of Defense Systems (excluding our Vinnell Arabia business); select cyber, intelligence and missions support programs, which are part of the Cyber and Intelligence Mission Solutions (CIMS) division of Mission Systems; and the Space Technical Services business unit of Space Systems. The pretax profit of the IT and mission support services business was $247 million, $245 million and $288 million for the years ended December 31, 2020, 2019 and 2018, respectively. The carrying amounts of the major classes of assets and liabilities of the IT and mission support services business classified as held for sale as of December 31, 2020 are as follows: $ in millions Accounts receivable, net $ 110 Unbilled receivables, net 269 Other current assets 9 Property, plant and equipment 14 Operating lease right-of-use assets 38 Goodwill (1) 1,195 Total assets of disposal group held for sale $ 1,635 Trade accounts payable (99) Accrued employee compensation (59) Advance payments and billings in excess of costs incurred (31) Other current liabilities (42) Non-current operating lease liabilities (27) Total liabilities of disposal group held for sale $ (258) |
Earnings Per Share, Share Repur
Earnings Per Share, Share Repurchases and Dividends on Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Share Repurchases and Dividends on Common Stock | 3. EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK Basic Earnings Per Share We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period. Diluted Earnings Per Share Diluted earnings per share include the dilutive effect of awards granted to employees under stock-based compensation plans. The dilutive effect of these securities totaled 0.5 million, 0.7 million and 0.9 million shares for the years ended December 31, 2020, 2019 and 2018, respectively. Share Repurchases On September 16, 2015, the company’s board of directors authorized a share repurchase program of up to $4.0 billion of the company’s common stock (the “2015 Repurchase Program”). Repurchases under the 2015 Repurchase Program commenced in March 2016 and were completed in March 2020. On December 4, 2018, the company’s board of directors authorized a share repurchase program of up to an additional $3.0 billion in share repurchases of the company’s common stock (the “2018 Repurchase Program”). Repurchases under the 2018 Repurchase Program commenced in March 2020 upon the completion of the company’s 2015 Repurchase Program. We had no repurchases of common stock during the three months ended December 31, 2020. As of December 31, 2020, repurchases under the 2018 Repurchase Program totaled $0.2 billion; $2.8 billion remained under this share repurchase authorization. By its terms, the 2018 Repurchase Program is set to expire when we have used all authorized funds for repurchases. On January 25, 2021, the company’s board of directors authorized a new share repurchase program of up to an additional $3.0 billion in share repurchases of the company’s common stock (the “2021 Repurchase Program”), bringing the total outstanding authorization up to $5.8 billion. By its terms, repurchases under the 2021 Repurchase Program will commence upon completion of the 2018 Repurchase Program and will expire when we have used all authorized funds for repurchases. Share repurchases take place from time to time, subject to market conditions and management’s discretion, in the open market or in privately negotiated transactions. The company retires its common stock upon repurchase and, in the periods presented, has not made any purchases of common stock other than in connection with these publicly announced repurchase programs. The table below summarizes the company’s share repurchases to date under the authorizations described above: Repurchase Program Amount Total Average (1) Date Completed Shares Repurchased Year Ended December 31 2020 2019 2018 September 16, 2015 $ 4,000 15.4 $ 260.33 March 2020 0.9 3.2 3.8 December 4, 2018 $ 3,000 0.5 $ 326.20 0.5 — — 1.4 3.2 3.8 (1) Includes commissions paid. Dividends on Common Stock In May 2020, the company increased the quarterly common stock dividend 10 percent to $1.45 per share from the previous amount of $1.32 per share. In May 2019, the company increased the quarterly common stock dividend 10 percent to $1.32 per share from the previous amount of $1.20 per share. In May 2018, the company increased the quarterly common stock dividend 9 percent to $1.20 per share from the previous amount of $1.10 per share. In January 2018, the company increased the quarterly common stock dividend 10 percent to $1.10 per share from the previous amount of $1.00 per share. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Net | 4. ACCOUNTS RECEIVABLE, NET Accounts receivable, net represent amounts billed and due from customers. Substantially all accounts receivable at December 31, 2020 are expected to be collected in 2021. The company does not believe it has significant exposure to credit risk as the majority of our accounts receivable are due from the U.S. government either as the ultimate customer or in connection with foreign military sales. Accounts receivable, net consisted of the following: December 31 $ in millions 2020 2019 Due from U.S. government (1) $ 956 $ 1,030 Due from international and other customers 578 329 Accounts receivable, gross 1,534 1,359 Allowance for expected credit losses (33) (33) Accounts receivable, net $ 1,501 $ 1,326 (1) Includes receivables due from the U.S. government associated with foreign military sales (FMS). For FMS, we contract with and are paid by the U.S. government. |
Unbilled Receivables, Net
Unbilled Receivables, Net | 12 Months Ended |
Dec. 31, 2020 | |
Unbilled Receivables, Net [Abstract] | |
Unbilled Receivables Disclosure [Text Block] | 5. UNBILLED RECEIVABLES, NET Unbilled receivables, net represent revenue recognized under the cost-to-cost method that exceeds amounts billed to customers. Substantially all unbilled receivables at December 31, 2020 are expected to be billed and collected in 2021. Progress and performance-based payments are reflected as an offset to the related unbilled receivable balances. Unbilled receivables, net consisted of the following: December 31 $ in millions 2020 2019 Due from U.S. government (1) Unbilled receivables $ 19,315 $ 17,347 Progress and performance-based payments received (14,615) (12,838) Total due from U.S. government 4,700 4,509 Due from international and other customers Unbilled receivables 3,361 4,063 Progress and performance-based payments received (2,881) (3,193) Total due from international and other customers 480 870 Unbilled receivables, net of progress and performance-based payments received 5,180 5,379 Allowance for expected credit losses (40) (45) Unbilled receivables, net $ 5,140 $ 5,334 |
Inventoried Costs, Net
Inventoried Costs, Net | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventoried Costs, Net | 6. INVENTORIED COSTS, NET Inventoried costs are primarily associated with contracts where the U.S. government is the primary customer, therefore the company does not believe it has significant exposure to recoverability risk related to these amounts. Inventoried costs, net consisted of the following: December 31 $ in millions 2020 2019 Production costs of contracts in process $ 451 $ 476 G&A expenses 41 31 492 507 Progress and performance-based payments received (62) (41) 430 466 Product inventory and raw material 329 317 Inventoried costs, net $ 759 $ 783 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES Federal and foreign income tax expense consisted of the following: Year Ended December 31 $ in millions 2020 2019 2018 Federal income tax expense: Current $ 246 $ 758 $ 292 Deferred 288 (474) 213 Total federal income tax expense 534 284 505 Foreign income tax expense: Current 3 10 7 Deferred 2 6 1 Total foreign income tax expense 5 16 8 Total federal and foreign income tax expense $ 539 $ 300 $ 513 Earnings from foreign operations before income taxes are not material for all periods presented. Income tax expense differs from the amount computed by multiplying earnings before income taxes by the statutory federal income tax rate due to the following: Year Ended December 31 $ in millions 2020 2019 2018 Income tax expense at statutory rate $ 783 21.0 % $ 535 21.0 % $ 786 21.0 % Research credit (206) (5.5) (216) (8.5) (186) (5.0) Foreign derived intangible income (55) (1.5) (28) (1.1) (16) (0.4) Stock compensation - excess tax benefits (10) (0.2) (14) (0.5) (27) (0.7) Impacts related to the 2017 Tax Act — — — — (84) (2.2) Other, net 27 0.7 23 0.9 40 1.0 Total federal and foreign income taxes $ 539 14.5 % $ 300 11.8 % $ 513 13.7 % The year to date 2020 effective tax rate increased to 14.5 percent from 11.8 percent in the same period of 2019. MTM expense reduced the 2020 effective tax rate by 1.3 percentage points and the 2019 effective tax rate by 3.7 percentage points. The year to date 2019 effective tax rate decreased to 11.8 percent from 13.7 percent in the same period of 2018. MTM expense reduced the 2019 effective tax rate by 3.7 percentage points and the 2018 effective tax rate by 1.1 percentage points. In addition, the company’s effective tax rate for 2019 reflects an increase in benefits for research credits and FDII of $30 million and $12 million, respectively, and the absence of an $84 million benefit associated with the 2017 Tax Act realized in 2018. In March 2020, the CARES Act was enacted. The CARES Act includes certain changes to U.S. tax law that impact the company, including a technical correction to the 2017 Tax Cuts and Jobs Act, which makes certain qualified improvement property eligible for bonus depreciation. The CARES Act did not have a significant impact on the company’s 2020 effective tax rate. In addition, in December 2020, final revenue recognition regulations under IRC Section 451(b) were issued, which did not have a significant impact on the company’s 2020 effective tax rate. We are evaluating the impact of the 451(b) regulations on 2021 and beyond. Income tax payments, net of refunds received, were $312 million, $324 million and $270 million for the years ended December 31, 2020, 2019 and 2018, respectively. Taxes receivable, which are included in Prepaid expenses and other current assets in the consolidated statements of financial position, were $792 million and $551 million as of December 31, 2020 and 2019, respectively. Uncertain Tax Positions We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. The Northrop Grumman 2014-2018 federal tax returns and refund claims related to its 2007-2016 federal tax returns are currently under Internal Revenue Service (IRS) examination. In addition, legacy Orbital ATK federal tax returns for the year ended March 31, 2015, the nine-month transition period ended December 31, 2015 and calendar years 2016-2017 are currently under appeal with the IRS. Tax returns for open tax years related to state and foreign jurisdictions remain subject to examination. As state income taxes are generally considered allowable and allocable costs, any individual or aggregate state examination impacts are not expected to have a material impact on our financial results. Amounts currently subject to examination related to foreign jurisdictions are not material. The change in unrecognized tax benefits during 2020, 2019 and 2018, excluding interest, is as follows: December 31 $ in millions 2020 2019 2018 Unrecognized tax benefits at beginning of the year $ 1,223 $ 748 $ 283 Additions based on tax positions related to the current year 187 158 293 Additions for tax positions of prior years 270 400 207 Reductions for tax positions of prior years (190) (65) (23) Settlements with taxing authorities (7) (15) (7) Other, net (2) (3) (5) Net change in unrecognized tax benefits 258 475 465 Unrecognized tax benefits at end of the year $ 1,481 $ 1,223 $ 748 Our 2020 increase in unrecognized tax benefits was primarily related to state apportionment, our methods of accounting associated with the timing of revenue recognition and related costs, and the 2017 Tax Act. It is reasonably possible that within the next 12 months our unrecognized tax benefits related to the final revenue recognition regulations under IRC Section 451(b), as referenced above, and future regulatory interpretations of existing tax laws may change. At this time, we cannot reasonably estimate these changes. Our unrecognized tax liabilities, which include $144 million of accrued interest and penalties, are included in other current and non-current liabilities in the consolidated statements of financial position. If the income tax benefits from these tax positions are ultimately realized, $607 million of federal and foreign tax benefits would reduce the company’s effective tax rate. Net interest expense within the company’s federal, foreign and state income tax provisions was not material for all years presented. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax purposes. Net deferred tax assets and liabilities are classified as non-current in the consolidated statements of financial position. The tax effects of significant temporary differences and carryforwards that gave rise to year-end deferred federal, state and foreign tax balances, as presented in the consolidated statements of financial position, are as follows: December 31 $ in millions 2020 2019 Deferred Tax Assets Retiree benefits $ 1,738 $ 1,827 Accrued employee compensation 360 336 Provisions for accrued liabilities 232 166 Inventory 849 684 Stock-based compensation 40 38 Operating lease liabilities 435 411 Tax credits 343 166 Other 112 73 Gross deferred tax assets 4,109 3,701 Less: valuation allowance (307) (160) Net deferred tax assets 3,802 3,541 Deferred Tax Liabilities Goodwill 533 515 Purchased intangibles 201 262 Property, plant and equipment, net 737 584 Operating lease right-of-use assets 423 404 Contract accounting differences 1,513 1,225 Other 84 43 Deferred tax liabilities 3,491 3,033 Total net deferred tax assets $ 311 $ 508 Realization of deferred tax assets is primarily dependent on generating sufficient taxable income in future periods. The company believes it is more-likely-than-not our net deferred tax assets will be realized. At December 31, 2020, the company has available tax credits and unused net operating losses of $419 million and $364 million, respectively, that may be applied against future taxable income. The majority of tax credits and net operating losses expire in 2022 through 2046, however, some may be carried forward indefinitely. Due to the uncertainty of the realization of the tax credits and net operating losses, the company has recorded valuation allowances of $221 million and $31 million as of December 31, 2020, respectively. Undistributed Foreign Earnings |
Goodwill and Other Purchased In
Goodwill and Other Purchased Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS Goodwill Changes in the carrying amounts of goodwill for the years ended December 31, 2019 and 2020, were as follows: $ in millions Aeronautics Systems Defense Systems Mission Systems Space Systems Total Balance as of December 31, 2018 $ 3,467 $ 4,377 $ 6,062 $ 4,766 $ 18,672 Acquisition of Orbital ATK (1) — — — 37 37 Other (3) — (1) — — (1) Balance as of December 31, 2019 $ 3,467 $ 4,376 $ 6,062 $ 4,803 $ 18,708 Reclassification to assets of disposal group held for sale (2) — (966) (181) (48) (1,195) Other (3) — 5 — — 5 Balance as of December 31, 2020 $ 3,467 $ 3,415 $ 5,881 $ 4,755 $ 17,518 (1) Represents changes to goodwill resulting from measurement period adjustments recorded in 2019 associated with Orbital ATK’s purchase price allocation. (2) Represents the reclassification of goodwill to assets of disposal group held for sale due to the pending divestiture of our IT and mission support services business (See Note 2). (3) Other consists primarily of adjustments for foreign currency translation. At December 31, 2020 and 2019, accumulated goodwill impairment losses totaled $417 million and $153 million at Aeronautics Systems and Space Systems, respectively. Other Purchased Intangible Assets Net customer-related and other intangible assets are as follows: December 31 $ in millions 2020 2019 Gross customer-related and other intangible assets $ 3,362 $ 3,356 Less accumulated amortization (2,579) (2,316) Net customer-related and other intangible assets $ 783 $ 1,040 Amortization expense for 2020, 2019 and 2018, was $262 million, $332 million and $203 million, respectively. As of December 31, 2020, the expected future amortization of purchased intangibles for each of the next five years is as follows: $ in millions 2021 $ 205 2022 197 2023 79 2024 56 2025 44 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 9. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the financial assets and liabilities the company records at fair value on a recurring basis identified by the level of inputs used to determine fair value. See Note 1 for the definitions of these levels and for further information on our financial instruments. December 31, 2020 December 31, 2019 $ in millions Level 1 Level 2 Total Level 1 Level 2 Total Financial Assets (Liabilities) Marketable securities $ 377 $ 1 $ 378 $ 364 $ 1 $ 365 Marketable securities valued using NAV 18 17 Total marketable securities 377 1 396 364 1 382 Derivatives — — — — (3) (3) The notional value of the company’s foreign currency forward contracts at December 31, 2020 and 2019 was $133 million and $98 million, respectively. At December 31, 2020, no portion of the notional value was designated as a cash flow hedge. The portion of notional value designated as a cash flow hedge at December 31, 2019 was $7 million. The derivative fair values and related unrealized gains/losses at December 31, 2020 and 2019 were not material. There were no transfers of financial instruments between the three levels of the fair value hierarchy during the years ended December 31, 2020 and 2019. The carrying value of cash and cash equivalents and commercial paper approximates fair value. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 10. DEBT Commercial Paper The company maintains a commercial paper program that serves as a source of short-term financing with capacity to issue unsecured commercial paper notes up to $2.0 billion. There were no commercial paper borrowings outstanding at December 31, 2020 and December 31, 2019, respectively. The outstanding balance of commercial paper borrowings is recorded in Other current liabilities in the consolidated statements of financial position. Credit Facilities In August 2018, the company entered into a five-year senior unsecured credit facility in an aggregate principal amount of $2.0 billion (the “2018 Credit Agreement”). In October 2019, the company amended the 2018 Credit Agreement to extend its maturity date by one year from August 2023 to August 2024. The revolving credit facility established under the 2018 Credit Agreement is intended to support the company’s commercial paper program and other general corporate purposes. At December 31, 2020, there was no balance outstanding under this facility. Commercial paper borrowings reduce the amount available for borrowing under the 2018 Credit Agreement. In December 2016, a subsidiary of the company entered into a two-year credit facility, with two additional one-year option periods, in an aggregate principal amount of £120 million (the equivalent of approximately $163 million as of December 31, 2020) (the “2016 Credit Agreement”). The 2016 Credit Agreement is guaranteed by the company. The company exercised the second option to extend the maturity to December 2020. In the fourth quarter of 2020, the remaining credit facility balance of £50 million (the equivalent of approximately $68 million as of December 31, 2020) was paid in full and the credit facility was terminated. Borrowings outstanding under this facility in prior periods are recorded in Other current liabilities in the consolidated statements of financial position. Our credit agreements contain generally customary terms and conditions, including covenants restricting the company’s ability to sell all or substantially all of its assets, merge or consolidate with another entity or undertake other fundamental changes and incur liens. The company also cannot permit the ratio of its debt to capitalization (as set forth in the credit agreements) to exceed 65 percent. At December 31, 2020, the company was in compliance with all covenants under its credit agreements. Unsecured Senior Notes In March 2020, the company issued $2.25 billion of unsecured senior notes for general corporate purposes, including debt repayment and working capital, as follows: • $750 million of 4.40% senior notes due 2030 (the “2030 Notes”), • $500 million of 5.15% senior notes due 2040 (the “2040 Notes”) and • $1.0 billion of 5.25% senior notes due 2050 (the “2050 Notes”). We refer to the 2030 Notes, the 2040 Notes and the 2050 Notes, together, as the “notes.” Interest on the notes is payable semi-annually in arrears. The notes are generally subject to redemption, in whole or in part, at the company’s discretion at any time, or from time to time, prior to maturity at a redemption price equal to the greater of 100% of the principal amount of the notes to be redeemed or an applicable “make-whole” amount, plus accrued and unpaid interest. Long-term debt consists of the following: $ in millions December 31 2020 2019 Fixed-rate notes and debentures, maturing in Interest rate 2020 2.08% $ — $ 1,000 2021 3.50% 700 700 2022 2.55% 1,500 1,500 2023 3.25% 1,050 1,050 2025 2.93% 1,500 1,500 2026 7.75% - 7.88% 527 527 2027 3.20% 750 750 2028 3.25% 2,000 2,000 2030 4.40% 750 — 2031 7.75% 466 466 2040 5.05% - 5.15% 800 300 2043 4.75% 950 950 2045 3.85% 600 600 2047 4.03% 2,250 2,250 2050 5.25% 1,000 — Credit facilities 1.89% — 78 Other Various 235 272 Debt issuance costs (75) (64) Total long-term debt 15,003 13,879 Less: current portion (1) 742 1,109 Long-term debt, net of current portion $ 14,261 $ 12,770 (1) The current portion of long-term debt is recorded in Other current liabilities in the consolidated statements of financial position. The estimated fair value of long-term debt was $18.2 billion and $15.1 billion as of December 31, 2020 and 2019, respectively. We calculated the fair value of long-term debt using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the company’s existing debt arrangements. Indentures underlying long-term debt issued by the company or its subsidiaries contain various restrictions with respect to the issuer, including one or more restrictions relating to limitations on liens, sale-leaseback arrangements and funded debt of subsidiaries. The majority of these fixed rate notes and debentures are subject to redemption at the company’s discretion at any time prior to maturity in whole or in part at the principal amount plus any make-whole premium and accrued and unpaid interest. Interest on these fixed rate notes and debentures are payable semi-annually in arrears. Total interest payments, net of interest received, were $572 million, $521 million and $456 million for the years ended December 31, 2020, 2019 and 2018, respectively. Maturities of long-term debt as of December 31, 2020, are as follows: $ in millions Year Ending December 31 2021 $ 742 2022 1,505 2023 1,053 2024 3 2025 1,503 Thereafter 10,285 Total principal payments 15,091 Unamortized premium on long-term debt, net of discount (13) Debt issuance costs (75) Total long-term debt $ 15,003 |
Investigations, Claims and Liti
Investigations, Claims and Litigation | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Investigations, Claims and Litigation | 11. INVESTIGATIONS, CLAIMS AND LITIGATION On May 4, 2012, the company commenced an action, Northrop Grumman Systems Corp. v. United States , in the U.S. Court of Federal Claims. This lawsuit relates to an approximately $875 million firm fixed-price contract awarded to the company in 2007 by the U.S. Postal Service (USPS) for the construction and delivery of flats sequencing systems (FSS) as part of the postal automation program. The FSS were delivered. The company’s lawsuit seeks approximately $63 million for unpaid portions of the contract price, and approximately $115 million based on the company’s assertions that, through various acts and omissions over the life of the contract, the USPS adversely affected the cost and schedule of performance and materially altered the company’s obligations under the contract. The United States responded to the company’s complaint with an answer, denying most of the company’s claims, and counterclaims seeking approximately $410 million, less certain amounts outstanding under the contract. In the course of the litigation, the United States subsequently amended its counterclaim, reducing it to seek approximately $193 million. The principal counterclaim alleges that the company delayed its performance and caused damages to the USPS because USPS did not realize certain costs savings as early as it had expected. On February 3, 2020, after extensive discovery and motions practice, the parties commenced what was expected to be a seven-week trial. The first four weeks of trial concluded, but the court postponed the remaining estimated three weeks as a result of COVID-19-related concerns. The court resumed trial in November 2020, and following additional COVID-related interruptions, plans to resume trial again during the first week of February 2021. Although the ultimate outcome of this matter, including any possible loss, cannot be predicted or reasonably estimated at this time, the company intends vigorously to pursue and defend the matter. We are engaged in remediation activities relating to environmental conditions allegedly resulting from historic operations at the former United States Navy and Grumman facilities in Bethpage, New York. For over 20 years, we have worked closely with the United States Navy, the United States Environmental Protection Agency, the New York State Department of Environmental Conservation (NYSDEC), the New York State Department of Health and other federal, state and local governmental authorities, to address legacy environmental conditions in Bethpage. In December 2019, the State of New York issued an Amended Record of Decision seeking to impose additional remedial requirements beyond measures the company previously had been taking; the State also communicated that it was assessing potential natural resource damages. In December 2020, the parties reached a tentative agreement regarding the steps the company will take to implement the State’s Amended Record of Decision and to resolve certain potential other claims, including for natural resource damages. The State of New York is preparing to file a new consent decree reflecting the agreement and to seek court approval. We have incurred, and expect to continue to incur, as included in Note 12, substantial remediation costs related to the legacy Bethpage environmental conditions. Applicable remediation standards and other requirements to which we are subject may continue to change, our costs may increase materially and those costs may not be fully recoverable. In addition, we are a party to various, and expect to become a party to additional, legal proceedings and disputes related to remediation, environmental impacts, costs, and the allowability of costs we incur, including with federal and state entities (including the Navy, Defense Contract Management Agency, the State, local municipalities and water districts) and insurance carriers, as well as class action and individual plaintiffs alleging personal injury and property damage and seeking both monetary and non-monetary relief. These Bethpage matters could result in additional costs, fines, penalties, sanctions, compensatory or other damages, determinations on allocation, allowability and coverage, and non- monetary relief. We cannot at this time predict or reasonably estimate the potential cumulative outcomes or ranges of possible liability of these aggregate Bethpage matters. The company is a party to various other investigations, lawsuits, arbitration, claims, enforcement actions and other legal proceedings, including government investigations and claims, that arise in the ordinary course of our business. The nature of legal proceedings is such that we cannot assure the outcome of any particular matter. However, based on information available to the company to date, the company does not believe that the outcome of any of these other matters pending against the company is likely to have a material adverse effect on the company’s consolidated financial position as of December 31, 2020, or its annual results of operations and/or cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES U.S. Government Cost Claims and Contingencies From time to time, the company is advised of claims by the U.S. government concerning certain potential disallowed costs, plus, at times, penalties and interest. When such findings are presented, the company and U.S. government representatives engage in discussions to enable the company to evaluate the merits of these claims, as well as to assess the amounts being claimed. Where appropriate, provisions are made to reflect the company’s estimated exposure for such potential disallowed costs. Such provisions are reviewed periodically using the most recent information available. The company believes it has adequately reserved for disputed amounts that are probable and reasonably estimable, and that the outcome of any such matters would not have a material adverse effect on its consolidated financial position as of December 31, 2020, or its annual results of operations and/or cash flows. The U.S. government has raised questions about an interest rate assumption used by the company to determine our CAS pension expense in previous years and in our current forward pricing rate proposal. On June 1, 2020, the government provided written notice that the assumptions the company used during the period 2013-2019 were potentially noncompliant with CAS. We submitted a formal response on July 31, 2020, which we believe demonstrates the appropriateness of the assumptions used. On November 24, 2020, the government replied to the company’s response, disagreeing with our position and requesting additional input. We are engaging further with the government. The sensitivity to changes in interest rate assumptions makes it reasonably possible the outcome of this matter could have a material adverse effect on our financial position, results of operations and/or cash flows, although we are not currently able to estimate a range of any potential loss. Environmental Matters The table below summarizes the amount accrued for environmental remediation costs, management’s estimate of the amount of reasonably possible future costs in excess of accrued costs and the deferred costs expected to be recoverable through overhead charges on U.S. government contracts as of December 31, 2020 and 2019: $ in millions Accrued Costs (1)(2) Reasonably Possible Future Costs in excess of Accrued Costs (2) Deferred Costs (3) December 31, 2020 $ 614 $ 346 $ 529 December 31, 2019 531 448 436 (1) As of December 31, 2020, $237 million is recorded in Other current liabilities and $377 million is recorded in Other non-current liabilities. (2) Estimated remediation costs are not discounted to present value. The reasonably possible future costs in excess of accrued costs do not take into consideration amounts expected to be recoverable through overhead charges on U.S. government contracts. (3) As of December 31, 2020, $210 million is deferred in Prepaid expenses and other current assets and $319 million is deferred in Other non-current assets. These amounts are evaluated for recoverability on a routine basis. Although management cannot predict whether new information gained as our environmental remediation projects progress, or as changes in facts and circumstances occur, will materially affect the estimated liability accrued, except with respect to Bethpage, we do not anticipate that future remediation expenditures associated with our currently identified projects will have a material adverse effect on the company’s consolidated financial position as of December 31, 2020, or its annual results of operations and/or cash flows. With respect to Bethpage, as discussed in Note 11, in December 2019, the State of New York issued an Amended Record of Decision, seeking to impose additional remedial requirements beyond those the company previously had been taking; the State also communicated that it was assessing potential natural resource damages. In December 2020, the parties reached a tentative agreement regarding the steps the company will take to implement the State’s Amended Record of Decision and to resolve the certain potential other claims, including for natural resource damages. The State of New York is preparing to file a new consent decree reflecting the agreement and to seek court approval. As discussed in Note 11, the applicable remediation standards and other requirements to which we are subject may continue to change, our costs may increase materially, and those costs may not be fully recoverable. Financial Arrangements In the ordinary course of business, the company uses standby letters of credit and guarantees issued by commercial banks and surety bonds issued principally by insurance companies to guarantee the performance on certain obligations. At December 31, 2020, there were $456 million of stand-by letters of credit and guarantees and $94 million of surety bonds outstanding. Indemnifications The company has provided indemnifications for certain environmental, income tax and other potential liabilities in connection with certain of its divestitures. The settlement of these liabilities is not expected to have a material adverse effect on the company’s consolidated financial position as of December 31, 2020, or its annual results of operations and/or cash flows. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | 13. RETIREMENT BENEFITS Plan Descriptions U.S. Defined Benefit Pension Plans – The company sponsors several defined benefit pension plans in the U.S. Pension benefits for most participants are based on years of service, age and compensation. It is our policy to fund at least the minimum amount required for all qualified plans, using actuarial cost methods and assumptions acceptable under U.S. government regulations, by making payments into benefit trusts separate from the company. U.S. Defined Contribution Plans – The company also sponsors defined contribution plans covering the majority of its employees, including certain employees covered under collective bargaining agreements. Company contributions vary depending on date of hire, with a majority of employees being eligible for employer matching of employee contributions. Based on date of hire, certain employees are eligible to receive a company non-elective contribution or an enhanced matching contribution in lieu of a defined benefit pension plan benefit. The company’s contributions to these defined contribution plans for the years ended December 31, 2020, 2019 and 2018, were $590 million, $481 million and $403 million, respectively. Non-U.S. Benefit Plans – The company sponsors several benefit plans for non-U.S. employees. These plans are designed to provide benefits appropriate to local practice and in accordance with local regulations. Some of these plans are funded using benefit trusts separate from the company. Medical and Life Benefits – The company funds a portion of the costs for certain health care and life insurance benefits for a substantial number of its active and retired employees. In addition to a company and employee cost-sharing feature, the health plans also have provisions for deductibles, co-payments, coinsurance percentages, out-of-pocket limits, conformance to a schedule of reasonable fees, the use of managed care providers and coordination of benefits with other plans. The plans also provide for a Medicare carve-out. The company reserves the right to amend or terminate the plans at any time. Certain covered employees and dependents are eligible to participate in plans upon retirement if they meet specified age and years of service requirements. The company provides subsidies to reimburse certain retirees for a portion of the cost of individual Medicare-supplemental coverage purchased directly by the retiree through a private insurance exchange. The company has capped the amount of its contributions to substantially all of its remaining postretirement medical and life benefit plans. In addition, after January 1, 2005 (or earlier at some businesses), newly hired employees are not eligible for subsidized postretirement medical and life benefits. Summary Plan Results The cost to the company of its retirement benefit plans is shown in the following table: Year Ended December 31 Pension Benefits Medical and Life Benefits $ in millions 2020 2019 2018 2020 2019 2018 Components of net periodic benefit cost (benefit) Service cost $ 409 $ 367 $ 404 $ 17 $ 16 $ 21 Interest cost 1,226 1,360 1,226 67 80 76 Expected return on plan assets (2,376) (2,101) (2,217) (102) (92) (101) Amortization of prior service cost (credit) (59) (59) (58) 4 (3) (21) Mark-to-market expense (benefit) 1,034 1,783 699 — 17 (44) Other 10 — — 2 — — Net periodic benefit cost (benefit) $ 244 $ 1,350 $ 54 $ (12) $ 18 $ (69) The table below summarizes the components of changes in unamortized prior service credit (cost) for the years ended December 31, 2018, 2019 and 2020: $ in millions Pension Benefits Medical and Life Benefits Total Changes in unamortized prior service credit Amortization of prior service credit $ 58 $ 21 $ 79 Tax expense (14) (5) (19) Change in unamortized prior service credit – 2018 44 16 60 Amortization of prior service credit 59 3 62 Tax expense (14) (1) (15) Change in unamortized prior service credit – 2019 45 2 47 Amortization of prior service credit (cost) 59 (4) 55 Tax expense (15) 1 (14) Change in unamortized prior service credit (cost) – 2020 $ 44 $ (3) $ 41 The following table sets forth the funded status and amounts recognized in the consolidated statements of financial position for the company’s defined benefit retirement plans. Pension benefits data includes the qualified plans, foreign plans and U.S. unfunded non-qualified plans for benefits provided to directors, officers and certain employees. The company uses a December 31 measurement date for its plans. Pension Benefits Medical and Life Benefits $ in millions 2020 2019 2020 2019 Plan Assets Fair value of plan assets at beginning of year $ 30,646 $ 27,150 $ 1,392 $ 1,247 Net gain on plan assets 4,802 5,025 218 234 Employer contributions 851 221 36 42 Participant contributions 8 8 24 24 Benefits paid (1,865) (1,763) (155) (156) Acquired plan assets — — — — Other 10 5 — 1 Fair value of plan assets at end of year 34,452 30,646 1,515 1,392 Projected Benefit Obligation Projected benefit obligation at beginning of year 36,914 32,231 2,048 1,930 Service cost 409 367 17 16 Interest cost 1,226 1,360 67 80 Participant contributions 8 8 24 24 Actuarial loss 3,455 4,708 115 159 Benefits paid (1,865) (1,763) (155) (156) Acquired benefit obligation — — — — Other 35 3 3 (5) Projected benefit obligation at end of year 40,182 36,914 2,119 2,048 Funded status $ (5,730) $ (6,268) $ (604) $ (656) Pension Benefits The increase in our pension assets for the year ended December 31, 2020 was principally driven by net plan asset returns of 16.2 percent and a $750 million discretionary pension contribution. In 2019, pension assets increased primarily due to net plan asset returns of 19.1 percent. The increase in our projected benefit obligation for the year ended December 31, 2020, was primarily driven by a 71 basis point decrease in the discount rate from year end 2019. In 2019, our projected benefit obligation increased primarily due to a 92 basis point decrease in the discount rate from year end 2018 as well as a change in our mortality assumptions. Pension Benefits Medical and Life Benefits $ in millions 2020 2019 2020 2019 Classification of amounts recognized in the consolidated statements of financial position Non-current assets $ 211 $ 124 $ 179 $ 151 Current liability (180) (173) (46) (47) Non-current liability (5,761) (6,219) (737) (760) The accumulated benefit obligation for all defined benefit pension plans was $39.6 billion and $36.5 billion at December 31, 2020 and 2019, respectively. Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets are as follows: December 31 $ in millions 2020 2019 Projected benefit obligation $ 37,681 $ 34,715 Accumulated benefit obligation 37,135 34,305 Fair value of plan assets 31,741 28,324 Plan Assumptions On a weighted-average basis, the following assumptions were used to determine benefit obligations and net periodic benefit cost: Pension Benefits Medical and Life Benefits 2020 2019 2020 2019 Assumptions used to determine benefit obligation at December 31 Discount rate 2.68 % 3.39 % 2.58 % 3.35 % Initial cash balance crediting rate assumed for the next year 2.25 % 2.39 % Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate) 2.25 % 2.64 % Year that the cash balance crediting rate reaches the ultimate rate 2026 2025 Rate of compensation increase 3.00 % 3.00 % Initial health care cost trend rate assumed for the next year 5.60 % 5.90 % Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the health care cost trend rate reaches the ultimate trend rate 2023 2023 Assumptions used to determine benefit cost for the year ended December 31 Discount rate 3.39 % 4.31 % 3.35 % 4.30 % Initial cash balance crediting rate assumed for the next year 2.39 % 3.00 % Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate) 2.64 % 3.25 % Year that the cash balance crediting rate reaches the ultimate rate 2025 2024 Expected long-term return on plan assets 8.00 % 8.00 % 7.66 % 7.67 % Rate of compensation increase 3.00 % 3.00 % Initial health care cost trend rate assumed for the next year 5.90 % 6.20 % Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the health care cost trend rate reaches the ultimate trend rate 2023 2023 For 2021 FAS expense, we have assumed an expected long-term rate of return on pension plan assets of 7.5 percent and 7.22 percent on OPB plans. We decreased the EROA assumption for 2021 FAS expense following an assessment of the historical and anticipated long-term returns of various asset classes, including consideration of recent Federal Reserve policy changes that are expected to extend the duration of the current low interest rate environment. Plan Assets and Investment Policy Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term. Through consultation with our investment management team and outside investment advisers, management develops expected long-term returns for each of the plans’ strategic asset classes. In doing so, we consider a number of factors, including our historical investment performance, current market data such as yields/price-earnings ratios, historical market returns over long periods and periodic surveys of investment managers’ expectations. Liability studies are conducted on a regular basis to provide guidance in setting investment goals with an objective to balance risk. Risk targets are established and monitored against acceptable ranges. Our investment policies and procedures are designed to ensure the plans’ investments are in compliance with the Employee Retirement Income Security Act (ERISA). Guidelines are established defining permitted investments within each asset class. Derivatives are used for transitioning assets, asset class rebalancing, managing currency risk and for management of fixed-income and alternative investments. For the majority of the plans’ assets, the investment policies require that the asset allocation be maintained within the following ranges as of December 31, 2020: Asset Allocation Ranges Cash and cash equivalents —% - 12% Global public equities 30% - 50% Fixed-income securities 20% - 40% Alternative investments 18% - 38% The table below provides the fair values of the company’s pension and Voluntary Employee Beneficiary Association (VEBA) trust plan assets at December 31, 2020 and 2019, by asset category. The table also identifies the level of inputs used to determine the fair value of assets in each category. See Note 1 for the definitions of these levels. Certain investments that are measured at fair value using NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table. As of December 31, 2020 and 2019, there were no investments expected to be sold at a value materially different than NAV. Level 1 Level 2 Level 3 Total $ in millions 2020 2019 2020 2019 2020 2019 2020 2019 Asset category Cash and cash equivalents $ 120 $ 233 $ 1,238 $ 2,572 $ 1,358 $ 2,805 U.S. equities 2,981 3,341 2,981 3,341 International equities 3,354 3,271 $ 2 $ 2 3,356 3,273 Fixed-income securities U.S. Treasuries 22 20 2,273 2,716 2,295 2,736 U.S. Government Agency 258 297 258 297 Non-U.S. Government 332 194 332 194 Corporate debt 31 28 6,228 4,513 6,259 4,541 Asset backed 1,080 892 1,080 892 High yield debt 24 30 48 104 72 134 Bank loans 59 33 59 33 Other assets (2) (9) 59 59 2 2 59 52 Investments valued using NAV as a practical expedient U.S. equities 1,567 1,131 International equities 7,193 5,636 Fixed-income funds 1,959 438 Hedge funds 65 246 Opportunistic investments 2,499 1,459 Private equity funds 2,627 2,454 Real estate funds 2,180 2,376 Payables, net (232) — Fair value of plan assets at the end of the year $ 6,530 $ 6,914 $ 11,575 $ 11,380 $ 4 $ 4 $ 35,967 $ 32,038 There were no transfers of plan assets into or out of Level 3 of the fair value hierarchy during the years ended December 31, 2020 and 2019. Generally, investments are valued based on information in financial publications of general circulation, statistical and valuation services, records of security exchanges, appraisal by qualified persons, transactions and bona fide offers. Cash and cash equivalents are predominantly held in money market or short-term investment funds. U.S. and international equities consist primarily of common stocks and institutional common trust funds. Investments in certain equity securities, which include domestic and international securities and registered investment companies, and exchange-traded funds with fixed income strategies are valued at the last reported sales or quoted price on the last business day of the reporting period. Fair values for certain fixed-income securities, which are not exchange-traded, are valued using third-party pricing services. Other assets include derivative assets with a fair value of $29 million and $49 million, derivative liabilities with a fair value of $27 million and $53 million, and net notional amounts of $2.3 billion and $3.6 billion, as of December 31, 2020 and 2019, respectively. Derivative instruments may include exchange traded futures contracts, interest rate swaps, options on futures and swaps, currency contracts, total return swaps and credit default swaps. Notional amounts do not quantify risk or represent assets or liabilities of the pension and VEBA trusts, but are used in the calculation of cash settlement under the contracts. The volume of derivative activity is commensurate with the amounts disclosed at year-end. Certain derivative financial instruments within the pension trust are subject to master netting agreements with certain counterparties. Investments in certain equity and fixed-income funds, which include common/collective trust funds, and alternative investments, including hedge funds, opportunistic investments, private equity funds and real estate funds, are valued based on the NAV derived by the investment managers, as a practical expedient, and are described further below. U.S. and International equities: Generally, redemption periods are daily, monthly or quarterly with a notice requirement less than 90 days. As of December 31, 2020 and 2019, there were no unfunded commitments. Fixed-income funds: Redemption periods are daily, monthly or quarterly with various notice requirements but generally are less than 30 days. As of December 31, 2020, unfunded commitments were $2 million. There were no unfunded commitments as of December 31, 2019. Hedge funds: Consist of closed-end funds with a 5-10 year life as well as funds that allow redemption requests subject to the liquidity limitations of the underlying investments. As of December 31, 2020 and 2019, unfunded commitments were $9 million and $8 million, respectively. Opportunistic investments: Opportunistic investments are primarily held in partnerships with a 5-10 year life. As of December 31, 2020 and 2019, unfunded commitments were $1.9 billion and $1.3 billion, respectively. Private equity funds: The term of each fund is typically 10 or more years and the fund’s investors do not have an option to redeem their interest in the fund. As of December 31, 2020 and 2019, unfunded commitments were $2.3 billion and $1.9 billion, respectively. Real estate funds: Consist of closed-end real estate funds and infrastructure funds with terms that are typically 10 or more years. This class also contains open-end funds that generally allow investors to redeem their interests in the fund. Unfunded commitments were $60 million as of December 31, 2020 and 2019. For the years ended December 31, 2020 and 2019, the defined benefit pension and VEBA trusts did not hold any Northrop Grumman common stock. Benefit Payments The following table reflects estimated future benefit payments for the next ten years, based upon the same assumptions used to measure the benefit obligation, and includes expected future employee service, as of December 31, 2020: $ in millions Pension Plans Medical and Life Plans Total Year Ending December 31 2021 $ 1,884 $ 152 $ 2,036 2022 1,930 153 2,083 2023 1,973 135 2,108 2024 2,017 133 2,150 2025 2,057 130 2,187 2026 through 2030 10,599 556 11,155 In 2021, the company expects to contribute the required minimum funding of approximately $98 million to its pension plans and approximately $43 million to its medical and life benefit plans. During the year ended December 31, 2020, the company made discretionary pension contributions of $750 million. |
Stock Compensation Plans and Ot
Stock Compensation Plans and Other Compensation Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans and Other Compensation Arrangements | 14. STOCK COMPENSATION PLANS AND OTHER COMPENSATION ARRANGEMENTS Stock Compensation Plans At December 31, 2020, the company had stock-based compensation awards outstanding under the following shareholder-approved plans: the 2011 Long-Term Incentive Stock Plan (2011 Plan), applicable to employees and non-employee directors, and the 1993 Stock Plan for Non-Employee Directors (1993 SPND). Employee Plans – In May 2015, the company’s shareholders approved amendments to the 2011 Plan. These amendments provided that shares issued under the plan would be counted against the aggregate share limit on a one-for-one basis. As amended, 5.1 million shares plus 2.4 million of newly authorized shares were available for issuance under the 2011 Plan; as of December 31, 2020, 5.2 million shares remain available for issuance. The 2011 Plan provides for the following equity awards: stock options, stock appreciation rights (SARs) and stock awards. Under the 2011 Plan, no SARs have been granted and there are no outstanding stock options. Stock awards include restricted performance stock rights (RPSR) and restricted stock rights (RSR). RPSRs generally vest and are paid following the completion of a three-year performance period, based primarily on achievement of financial objectives determined by the Board. RSRs generally vest 100% after three years. Each includes dividend equivalents, which are paid concurrently with the RPSR or RSR. The terms of equity awards granted under the 2011 Plan provide for accelerated vesting, and in some instances forfeiture, of all or a portion of an award upon termination of employment. Non-Employee Director Plans – Awards to non-employee directors are made pursuant to the Northrop Grumman Corporation Equity Grant Program for Non-Employee Directors under the 2011 Plan (the Director Program), which was amended and restated effective January 1, 2016. Under the amended Director Program, each non-employee director is awarded an annual equity grant in the form of Automatic Stock Units, which vest on the one-year anniversary of the grant date. Directors may elect to have all or any portion of their Automatic Stock Units paid on (A) the earlier of (i) the beginning of a specified calendar year after the vesting date or (ii) their separation from service as a member of the Board, or (B) on the vesting date. Directors also may elect to defer to a later year all or a portion of their remaining cash retainer or committee retainer fees into a stock unit account as Elective Stock Units or in alternative investment options. Elective Stock Units are awarded on a quarterly basis. Directors may elect to have all or a portion of their Elective Stock Units paid on the earlier of (i) the beginning of a specified calendar year or (ii) their separation from service as a member of the Board. Stock units awarded under the Director Program are paid out in an equivalent number of shares of Northrop Grumman common stock. Directors are credited with dividend equivalents in connection with the accumulated stock units until the shares of common stock relating to such stock units are issued. Compensation Expense Stock-based compensation expense for the years ended December 31, 2020, 2019 and 2018 was $90 million, $127 million and $86 million, respectively. The related tax benefits for stock-based compensation for the years ended December 31, 2020, 2019 and 2018 were $14 million, $14 million and $27 million, respectively. At December 31, 2020, there was $97 million of unrecognized compensation expense related to unvested stock awards granted under the company’s stock-based compensation plans. These amounts are expected to be charged to expense over a weighted-average period of 1.3 years. Stock Awards Compensation expense for stock awards is measured at the grant date based on the fair value of the award and is recognized over the vesting period (generally three years). The fair value of stock awards and performance stock awards is determined based on the closing market price of the company’s common stock on the grant date. The fair value of market-based stock awards is determined at the grant date using a Monte Carlo simulation model. For purposes of measuring compensation expense for performance awards, the number of shares ultimately expected to vest is estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. Stock award activity for the years ended December 31, 2018, 2019 and 2020, is presented in the table below. Vested awards do not include any adjustments to reflect the final performance measure for issued shares. Stock Weighted- Weighted- Outstanding at January 1, 2018 938 $ 192 1.0 Granted 376 321 Vested (455) 181 Forfeited (63) 250 Outstanding at December 31, 2018 796 $ 244 0.8 Granted 339 274 Vested (383) 222 Forfeited (51) 280 Outstanding at December 31, 2019 701 $ 278 0.9 Granted 262 350 Vested (296) 305 Forfeited (64) 303 Outstanding at December 31, 2020 603 $ 311 1.4 The majority of our stock awards are granted annually during the first quarter. The grant date fair value of shares issued in settlement of fully vested stock awards was $118 million, $119 million and $93 million during the years ended December 31, 2020, 2019 and 2018, respectively. Cash Awards The company grants certain employees cash units (CUs) and cash performance units (CPUs). Depending on actual performance against financial objectives, recipients of CPUs earn between 0 and 200 percent of the original grant. The following table presents the minimum and maximum aggregate payout amounts related to those cash awards granted for the periods presented: Year Ended December 31 $ in millions 2020 2019 2018 Minimum aggregate payout amount $ 31 $ 36 $ 36 Maximum aggregate payout amount 175 203 205 The majority of our cash awards are granted annually during the first quarter. CUs typically vest and settle in cash on the third anniversary of the grant date, while CPUs generally vest and pay out in cash based primarily on the achievement of financial metrics over a three-year period. At December 31, 2020, there was $121 million of unrecognized compensation expense related to cash awards. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 15. LEASES Total Lease Cost Total lease cost is included in Product and Service costs in the consolidated statement of earnings and comprehensive income and is recorded net of immaterial sublease income. Total lease cost is comprised of the following: Year Ended December 31 $ in millions 2020 2019 Operating lease cost $ 320 $ 318 Variable lease cost 28 11 Short-term lease cost 93 75 Total lease cost $ 441 $ 404 Rental expense for operating leases classified under ASC 840 for the year ended December 31, 2018 was $375 million. This amount is net of immaterial amounts of sublease income. Supplemental Balance Sheet Information Supplemental operating lease balance sheet information consists of the following: Year Ended December 31 $ in millions 2020 2019 Operating lease right-of-use assets $ 1,533 $ 1,511 Other current liabilities 263 261 Operating lease liabilities 1,343 1,308 Total operating lease liabilities $ 1,606 $ 1,569 Other Supplemental Information Other supplemental operating lease information consists of the following: Year Ended December 31 $ in millions 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 275 $ 307 Right-of-use assets obtained in exchange for new lease liabilities 345 462 Weighted average remaining lease term 12.1 years 11.6 years Weighted average discount rate 3.5 % 3.8 % Maturities of Lease Liabilities Maturities of operating lease liabilities as of December 31, 2020 are as follows: $ in millions Year Ending December 31 2021 $ 298 2022 267 2023 228 2024 185 2025 142 Thereafter 902 Total lease payments 2,022 Less: imputed interest (416) Present value of operating lease liabilities $ 1,606 As of December 31, 2020, we have approximately $361 million in rental commitments for real estate leases that have not yet commenced. These leases are expected to commence in 2021 with lease terms of 4 to 15 years. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 16. 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. As discussed in Note 1, beginning in the second quarter of 2020, the company no longer considers certain unallowable costs and environmental matters that are principally managed at the corporate office as part of management’s evaluation of segment operating performance. As a result, certain unallowable compensation and other costs, which were previously included in segment operating results, are now reported in Unallocated corporate expense within operating income. In addition, certain accrued and deferred costs, as well as unallowable costs, if any, associated with certain environmental matters that were previously reflected in segment assets and operating results are now reflected in corporate assets and Unallocated corporate expense within operating income. This change to operating income has been applied retrospectively in the amounts below. See Part II, Item 5 in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information regarding the impact of this change on the company’s prior period segment information. The following table presents sales and operating income by segment: Year Ended December 31 $ in millions 2020 2019 2018 Sales Aeronautics Systems $ 12,169 $ 11,116 $ 10,293 Defense Systems 7,543 7,495 6,612 Mission Systems 10,080 9,410 8,949 Space Systems 8,744 7,425 5,845 Intersegment eliminations (1,737) (1,605) (1,604) Total sales 36,799 33,841 30,095 Operating income Aeronautics Systems 1,206 1,188 1,128 Defense Systems 846 793 697 Mission Systems 1,459 1,408 1,245 Space Systems 893 794 644 Intersegment eliminations (216) (205) (200) Total segment operating income 4,188 3,978 3,514 Net FAS (service)/CAS pension adjustment 418 465 613 Unallocated corporate expense (541) (474) (347) Total operating income $ 4,065 $ 3,969 $ 3,780 Net FAS (Service)/CAS Pension 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 the FAR and the related CAS. The net FAS (service)/CAS pension 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 CAS or FAR, and therefore not allocated to the segments, such as 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 Type Year Ended December 31 2020 2019 2018 $ in millions $ % (3) $ % (3) $ % (3) Aeronautics Systems U.S. government (1) $ 10,411 86 % $ 9,258 83 % $ 8,732 85 % International (2) 1,595 13 % 1,688 15 % 1,402 13 % Other customers 41 — % 67 1 % 86 1 % Intersegment sales 122 1 % 103 1 % 73 1 % Aeronautics Systems sales 12,169 100 % 11,116 100 % 10,293 100 % Defense Systems U.S. government (1) 5,103 68 % 4,952 66 % 4,132 62 % International (2) 1,317 17 % 1,442 19 % 1,249 19 % Other customers 395 5 % 410 6 % 481 7 % Intersegment sales 728 10 % 691 9 % 750 12 % Defense Systems sales 7,543 100 % 7,495 100 % 6,612 100 % Mission Systems U.S. government (1) 7,279 72 % 6,765 72 % 6,501 73 % International (2) 1,945 19 % 1,839 19 % 1,653 18 % Other customers 77 1 % 78 1 % 77 1 % Intersegment sales 779 8 % 728 8 % 718 8 % Mission Systems sales 10,080 100 % 9,410 100 % 8,949 100 % Space Systems U.S. government (1) 8,110 93 % 6,959 94 % 5,431 93 % International (2) 331 4 % 185 2 % 130 2 % Other customers 195 2 % 198 3 % 221 4 % Intersegment sales 108 1 % 83 1 % 63 1 % Space Systems sales 8,744 100 % 7,425 100 % 5,845 100 % Total U.S. government (1) 30,903 84 % 27,934 83 % 24,796 82 % International (2) 5,188 14 % 5,154 15 % 4,434 15 % Other customers 708 2 % 753 2 % 865 3 % Total Sales $ 36,799 100 % $ 33,841 100 % $ 30,095 100 % (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 substantial 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. These sales include foreign military sales contracted through the U.S. government. (3) Percentages calculated based on total segment sales. Sales by Contract Type Year Ended December 31 2020 2019 2018 $ in millions $ % (1) $ % (1) $ % (1) Aeronautics Systems Cost-type $ 6,142 51 % $ 5,299 48 % $ 5,066 50 % Fixed-price 5,905 49 % 5,714 52 % 5,154 50 % Intersegment sales 122 103 73 Aeronautics Systems sales 12,169 11,116 10,293 Defense Systems Cost-type 2,345 34 % 2,509 37 % 2,386 41 % Fixed-price 4,470 66 % 4,295 63 % 3,476 59 % Intersegment sales 728 691 750 Defense Systems sales 7,543 7,495 6,612 Mission Systems Cost-type 3,582 39 % 3,335 38 % 3,099 38 % Fixed-price 5,719 61 % 5,347 62 % 5,132 62 % Intersegment sales 779 728 718 Mission Systems sales 10,080 9,410 8,949 Space Systems Cost-type 6,369 74 % 5,336 73 % 4,453 77 % Fixed-price 2,267 26 % 2,006 27 % 1,329 23 % Intersegment sales 108 83 63 Space Systems sales 8,744 7,425 5,845 Total Cost-type 18,438 50 % 16,479 49 % 15,004 50 % Fixed-price 18,361 50 % 17,362 51 % 15,091 50 % Total Sales $ 36,799 $ 33,841 $ 30,095 (1) Percentages calculated based on external customer sales. Sales by Geographic Region Year Ended December 31 2020 2019 2018 $ in millions $ % (2) $ % (2) $ % (2) Aeronautics Systems United States $ 10,452 87 % $ 9,325 85 % $ 8,818 86 % Asia/Pacific 841 7 % 810 7 % 677 7 % Europe 574 5 % 587 5 % 536 5 % All other (1) 180 1 % 291 3 % 189 2 % Intersegment sales 122 103 73 Aeronautics Systems sales 12,169 11,116 10,293 Defense Systems United States 5,498 81 % 5,362 79 % 4,613 79 % Asia/Pacific 402 6 % 369 5 % 365 6 % Europe 315 4 % 249 4 % 204 3 % All other (1) 600 9 % 824 12 % 680 12 % Intersegment sales 728 691 750 Defense Systems sales 7,543 7,495 6,612 Mission Systems United States 7,356 79 % 6,843 79 % 6,578 80 % Asia/Pacific 707 8 % 637 7 % 592 7 % Europe 893 9 % 850 10 % 682 8 % All other (1) 345 4 % 352 4 % 379 5 % Intersegment sales 779 728 718 Mission Systems sales 10,080 9,410 8,949 Space Systems United States 8,305 96 % 7,157 98 % 5,652 98 % Asia/Pacific 18 — % 20 — % 32 — % Europe 300 4 % 147 2 % 92 2 % All other (1) 13 — % 18 — % 6 — % Intersegment sales 108 83 63 Space Systems sales 8,744 7,425 5,845 Total United States 31,611 86 % 28,687 85 % 25,661 85 % Asia/Pacific 1,968 5 % 1,836 6 % 1,666 6 % Europe 2,082 6 % 1,833 5 % 1,514 5 % All other (1) 1,138 3 % 1,485 4 % 1,254 4 % Total Sales $ 36,799 $ 33,841 $ 30,095 (1) All other is principally comprised of the Middle East. (2) Percentages calculated based on external customer sales. Intersegment Sales and Operating Income Sales between segments are recorded at values that include intercompany operating income for the performing segment based on that segment’s estimated average operating margin rate for external sales. Such intercompany operating income is eliminated in consolidation, so that the company’s total sales and total operating income reflect only those transactions with external customers. See Note 1 for additional information. The following table presents intersegment sales and operating income before eliminations: Year Ended December 31 $ in millions 2020 2019 2018 Sales Operating Sales Operating Sales Operating Intersegment sales and operating income Aeronautics Systems $ 122 $ 11 $ 103 $ 10 $ 73 $ 8 Defense Systems 728 76 691 74 750 74 Mission Systems 779 116 728 113 718 115 Space Systems 108 13 83 8 63 3 Total $ 1,737 $ 216 $ 1,605 $ 205 $ 1,604 $ 200 Assets Substantially all of the company’s operating assets are located in the U.S. The following table presents assets by segment: December 31 $ in millions 2020 2019 Assets Aeronautics Systems $ 8,997 $ 9,104 Defense Systems 7,352 7,420 Mission Systems 10,029 9,934 Space Systems 10,028 10,595 Corporate assets (1) 8,063 4,036 Total assets $ 44,469 $ 41,089 (1) Corporate assets principally consist of cash and cash equivalents, refundable taxes, deferred tax assets, property, plant and equipment, marketable securities and deferred costs associated with certain environmental matters. Beginning in 2020, certain additional environmental matters that were previously reflected in segment assets are now reflected in corporate assets. Capital Expenditures and Depreciation and Amortization The following table presents capital expenditures and depreciation and amortization by segment: Year Ended December 31 $ in millions 2020 2019 2018 2020 2019 2018 Capital Expenditures Depreciation and Amortization (1) Aeronautics Systems $ 540 $ 528 $ 657 $ 238 $ 224 $ 190 Defense Systems 78 71 66 48 44 65 Mission Systems 302 229 197 150 133 121 Space Systems 440 352 226 211 189 130 Corporate 60 84 103 358 428 294 Total $ 1,420 $ 1,264 $ 1,249 $ 1,005 $ 1,018 $ 800 (1) Corporate amounts include the 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 they are not considered part of management’s evaluation of segment operating performance. |
Unaudited Selected Quarterly Da
Unaudited Selected Quarterly Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | 17. UNAUDITED SELECTED QUARTERLY DATA Unaudited quarterly financial results are set forth in the following tables. It is the company’s long-standing practice to establish actual interim closing dates using a “fiscal” calendar in which we close our books on a Friday near each quarter-end date, in order to normalize the potentially disruptive effects of quarterly closings on business processes. This practice is only used at interim periods within a reporting year. 2020 In millions, except per share amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Sales $ 8,620 $ 8,884 $ 9,083 $ 10,212 Operating income 934 994 985 1,152 Net earnings 868 1,005 986 330 Basic earnings per share 5.18 6.02 5.91 1.98 Diluted earnings per share 5.15 6.01 5.89 1.97 Weighted-average common shares outstanding 167.7 166.9 166.8 166.8 Weighted-average diluted shares outstanding 168.4 167.3 167.3 167.4 2019 In millions, except per share amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Sales $ 8,189 $ 8,456 $ 8,475 $ 8,721 Operating income 936 946 951 1,136 Net earnings (loss) 863 861 933 (409) Basic earnings (loss) per share 5.08 5.07 5.52 (2.43) Diluted earnings (loss) per share (1) 5.06 5.06 5.49 (2.43) Weighted-average common shares outstanding 170.0 169.7 169.1 168.4 Weighted-average diluted shares outstanding (1) 170.7 170.3 169.9 168.4 (1) Fourth quarter 2019 excludes the dilutive effect of awards granted to employees under stock-based compensation plans as such awards would be antidilutive. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe consolidated financial statements include the accounts of Northrop Grumman and its subsidiaries and joint ventures or other investments for which we consolidate the financial results. Intercompany accounts, transactions and profits are eliminated in consolidation. Investments in equity securities and joint ventures where the company has significant influence, but not control, are accounted for using the equity method.Sales between segments are recorded at values that include intercompany operating income for the performing segment based on that segment’s estimated average operating margin rate for external sales. Such intercompany operating income is eliminated in consolidation |
Accounting Estimates | Accounting Estimates The company’s consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP” or “FAS”). The preparation thereof requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of |
Revenue Recognition | Revenue Recognition The majority of our sales are derived from long-term contracts with the U.S. government for the development or production of goods, the provision of services, or a combination of both. The company classifies sales as product or service based on the predominant attributes of each performance obligation. The company recognizes revenue for each separately identifiable performance obligation in a contract representing a promise to transfer a distinct good or service to a customer. In most cases, goods and services provided under the company’s contracts are accounted for as single performance obligations due to the complex and integrated nature of our products and services. These contracts generally require significant integration of a group of goods and/or services to deliver a combined output. In some contracts, the company provides multiple distinct goods or services to a customer, most commonly when a contract covers multiple phases of the product life cycle (e.g., development, production, sustainment, etc.). In those cases, the company accounts for the distinct contract deliverables as separate performance obligations and allocates the transaction price to each performance obligation based on its relative standalone selling price, which is generally estimated using cost plus a reasonable margin. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not considered to be separate performance obligations. Assets recognized from the costs to obtain or fulfill a contract are not material. Contracts are often modified for changes in contract specifications or requirements, which may result in scope and/or price changes. Most of the company’s contract modifications are for goods or services that are not distinct in the context of the contract and are therefore accounted for as part of the original performance obligation through a cumulative estimate-at-completion (EAC) adjustment. The company recognizes revenue as control is transferred to the customer, either over time or at a point in time. In general, our U.S. government contracts contain termination for convenience and/or other clauses that generally provide the customer rights to goods produced and/or in-process. Similarly, our non-U.S. government contracts generally contain contractual termination clauses or entitle the company to payment for work performed to date for goods and services that do not have an alternative use. For most of our contracts, control is effectively transferred during the period of performance, so we generally recognize revenue over time using the cost-to-cost method (cost incurred relative to total cost estimated at completion). The company believes this represents the most appropriate measurement towards satisfaction of its performance obligations. Revenue for contracts in which the control of goods produced does not transfer until delivery to the customer is recognized at a point in time (i.e., typically upon delivery). Contract Estimates Use of the cost-to-cost method requires us to make reasonably dependable estimates regarding the revenue and cost associated with the design, manufacture and delivery of our products and services. The company estimates profit on these contracts as the difference between total estimated sales and total estimated cost at completion and recognizes that profit as costs are incurred. Significant judgment is used to estimate total sales and cost at completion. Contract sales may include estimates of variable consideration, including cost or performance incentives (such as award and incentive fees), contract claims and requests for equitable adjustment (REAs). Variable consideration is included in total estimated sales to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. We estimate variable consideration as the most likely amount to which we expect to be entitled. |
General and Administrative Expenses | General and Administrative Expenses In accordance with the regulations that govern cost accounting requirements for government contracts, most general management and corporate expenses incurred at the segment and corporate locations are considered allowable and allocable costs. Allowable and allocable G&A costs, including independent research and development (IR&D) and bid and proposal (B&P) costs, are allocated on a systematic basis to contracts in progress and are included as a component of total estimated contract costs. |
Research and Development | Research and DevelopmentCompany-sponsored research and development activities primarily include efforts related to government programs. Customer-funded research and development activities are charged directly to the related contracts. |
Income Taxes | Income Taxes Provisions for federal and foreign income taxes are calculated on reported earnings before income taxes based on current tax law and include the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently payable because certain items of income and expense are recognized in different periods for financial reporting purposes than for income tax purposes. The company recognizes federal and foreign interest accrued related to unrecognized tax benefits in income tax expense. Federal tax penalties are recognized as a component of income tax expense. In accordance with the regulations that govern cost accounting requirements for government contracts, current state and local income and franchise taxes are generally considered allowable and allocable costs and, consistent with industry practice, are recorded in operating costs and expenses. The company generally recognizes changes in deferred state taxes and unrecognized state tax benefits in unallocated corporate expenses. Uncertain tax positions reflect the company’s expected treatment of tax positions taken in a filed tax return, or planned to be taken in a future tax return or claim, which have not been reflected in measuring income tax expense or taxes payable for financial reporting purposes. Until these positions are sustained by the taxing authorities or the statute of limitations concerning such issues lapses, the company does not generally recognize the tax benefits resulting from such positions and reports the tax effects as a liability for uncertain tax positions in its consolidated statements of financial position. |
Cash and cash equivalents | Cash and Cash Equivalents Cash and cash equivalents are comprised of cash in banks and highly liquid instruments with original maturities of three months or less, primarily consisting of bank time deposits and investments in institutional money market funds. Cash in bank accounts often exceeds federally insured limits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The company measures the fair value of its financial instruments using observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 - Significant inputs to the valuation model are unobservable. |
Marketable Securities | Marketable securities accounted for as trading are recorded at fair value on a recurring basis and are included in Other non-current assets in the consolidated statements of financial position. Changes in unrealized gains and losses on trading securities are included in Other, net in the consolidated statements of earnings and comprehensive income. Investments in held-to-maturity instruments with original maturities greater than three months are recorded at amortized cost. |
Derivative Financial Instruments | Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value on a recurring basis. Changes in the fair value of derivative financial instruments that are designated as fair value hedges are recorded in net earnings, while the changes in the fair value of derivative financial instruments that are designated as cash flow hedges are recorded as a component of other comprehensive income until settlement. For derivative financial instruments not designated as hedging instruments, gains or losses resulting from changes in the fair value are reported in Other, net in the consolidated statements of earnings and comprehensive income. The company uses derivative financial instruments to manage its exposure to foreign currency exchange risk related to receipts from customers and payments to suppliers denominated in foreign currencies (i.e., foreign currency forward contracts). For foreign currency forward contracts, where model-derived valuations are appropriate, the company utilizes the income approach to determine the fair value and uses the applicable London Interbank Offered Rate (LIBOR) swap rates. The company does not use derivative financial instruments for trading or speculative purposes, nor does it use leveraged financial instruments. Credit risk related to derivative financial instruments is considered minimal and is managed through the use of multiple counterparties with high credit standards and periodic settlements of positions, as well as by entering into master netting agreements with most of our counterparties. |
Inventoried Costs | Inventoried Costs Inventoried costs generally comprise costs associated with unsatisfied performance obligations on contracts accounted for using point in time revenue recognition, costs incurred in excess of existing contract requirements or funding that are probable of recovery and other accrued contract costs that are expected to be recoverable when allocated to specific contracts. Product inventory primarily consists of raw materials and is stated at the lower of cost or net realizable value, generally using the average cost method. Accumulated contract costs in inventoried costs include costs such as direct production costs, factory and engineering overhead, production tooling costs, and allowable G&A. Inventoried costs are classified as current assets and, in accordance with industry practice, include amounts related to contracts having production cycles longer than one year. |
Cash Surrender Value of Life Insurance Policies | Cash Surrender Value of Life Insurance PoliciesThe company maintains whole life insurance policies on a group of executives, which are recorded at their cash surrender value as determined by the insurance carrier. The company also has split-dollar life insurance policies on former officers and executives from acquired businesses, which are recorded at the lesser of their cash surrender value or premiums paid. These policies are utilized as a partial funding source for deferred compensation and other non-qualified employee retirement plans. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are depreciated over the estimated useful lives of individual assets. Most assets are depreciated using declining-balance methods, with the remainder using the straight-line method. Depreciation expense is generally recorded in the same segment where the related assets are held. However, the additional depreciation expense related to the step-up in fair value of property, plant and equipment acquired through business combinations is recorded in unallocated corporate expense within operating income as such depreciation is not considered part of management’s evaluation of segment operating performance. Major classes of property, plant and equipment and their useful lives are as follows: December 31 Useful life in years, $ in millions Useful Life 2020 2019 Land and land improvements Up to 40 (1) $ 628 $ 619 Buildings and improvements Up to 45 2,762 2,575 Machinery and other equipment Up to 20 7,206 6,997 Capitalized software costs 3-5 602 606 Leasehold improvements Lease Term (2) 2,208 1,965 Property, plant and equipment, at cost 13,406 12,762 Accumulated depreciation (6,335) (5,850) Property, plant and equipment, net $ 7,071 $ 6,912 (1) Land is not a depreciable asset. (2) Leasehold improvements are depreciated over the shorter of the useful life of the asset or lease term. |
Goodwill and Other Purchased Intangible Assets | Goodwill and Other Purchased Intangible Assets The company tests goodwill for impairment at least annually as of December 31, or when an indicator of potential impairment exists. When performing the goodwill impairment test, the company uses a discounted cash flow approach corroborated by comparative market multiples, where appropriate, to determine the fair value of its reporting units. Goodwill and other purchased intangible asset balances are included in the identifiable assets of their assigned business segment. However, the company includes the amortization of other purchased intangible assets in unallocated corporate expense within operating income as such amortization is not considered part of management’s evaluation of segment operating performance. The company’s customer-related intangible assets are generally amortized over their respective useful lives based on the pattern in which the future economic benefits of the intangible assets are expected to be consumed. Other intangible assets are generally amortized on a straight-line basis over their estimated useful lives. |
Leases | Leases The company leases certain buildings, land and equipment. Under ASC 842, at contract inception we determine whether a contract is or contains a lease and whether the lease should be classified as an operating or finance lease. |
Litigation, Commitments, and Contingencies | Litigation, Commitments and Contingencies We accrue for litigation, commitments and contingencies when management, after considering the facts and circumstances of each matter as then known to management, has determined it is probable a liability will be found to have been incurred and the amount of the loss can be reasonably estimated. When only a range of amounts is reasonably estimable and no amount within the range is more likely than another, the low end of the range is recorded. Legal fees are expensed as incurred. Due to the inherent uncertainties surrounding gain contingencies, we generally do not recognize potential gains until realized. |
Environmental costs | Environmental Costs We accrue for environmental liabilities when management determines that, based on the facts and circumstances known to the company, it is probable the company will incur costs to address environmental impacts and the costs are reasonably estimable. When only a range of amounts is reasonably estimable and no amount within the range is more probable than another, we record the low end of the range. The company typically projects environmental costs for up to 30 years, records environmental liabilities on an undiscounted basis, and excludes asset retirement obligations and certain legal costs. At sites involving multiple parties, we accrue environmental liabilities based upon our expected share of liability, taking into account the financial viability of other liable parties. |
Retirement Benefits | Retirement Benefits The company sponsors various defined benefit pension plans and defined contribution retirement plans covering substantially all of its employees. In most cases, our defined contribution plans provide for a company match of employee contributions. The company also provides postretirement benefits other than pensions to eligible retirees and qualifying dependents, consisting principally of health care and life insurance benefits. The liabilities, unamortized prior service credits and annual income or expense of the company’s defined benefit pension and other postretirement benefit plans (OPB) are determined using methodologies that involve several actuarial assumptions. Because U.S. government regulations provide for the costs of pension and OPB plans to be charged to our contracts in accordance with the Federal Acquisition Regulation (FAR) and the related U.S. Government Cost Accounting Standards (CAS) that govern such plans, we calculate retiree benefit plan costs under both FAS and CAS methods. While both FAS and CAS recognize a normal service cost component in measuring periodic pension cost, there are differences in the way the components of annual pension costs are calculated under each method. Measuring plan obligations under FAS and CAS includes different assumptions and models, such as in estimating returns on plan assets, calculating interest expense and the periods over which gains/losses related to pension assets and actuarial changes are recognized. As a result, annual retiree benefit plan expense amounts for FAS are different from the amounts for CAS in any given reporting period even though the ultimate cost of providing benefits over the life of the plans is the same under either method. CAS retiree benefit plan costs are charged to contracts and are included in segment operating income, and the difference between the service cost component of FAS expense and total CAS expense is recorded in operating income at the consolidated company level. Not all net periodic pension expense is recognized in net earnings in the year incurred because it is allocated as production costs and a portion remains in inventory at the end of a reporting period. Actuarial gains and losses are immediately recognized in net periodic benefit cost for FAS through Mark-to-market pension and OPB (“MTM”) expense upon annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. Prior service credits are recognized as a component of Accumulated other comprehensive loss and amortized into earnings in future periods. Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term. Through consultation with our investment management team and outside investment advisers, management develops expected long-term returns for each of the plans’ strategic asset classes. In doing so, we consider a number of factors, including our historical investment performance, current market data such as yields/price-earnings ratios, historical market returns over long periods and periodic surveys of investment managers’ expectations. Liability studies are conducted on a regular basis to provide guidance in setting investment goals with an objective to balance risk. Risk targets are established and monitored against acceptable ranges. Our investment policies and procedures are designed to ensure the plans’ investments are in compliance with the Employee Retirement Income Security Act (ERISA). Guidelines are established defining permitted investments within each asset class. Derivatives are used for transitioning assets, asset class rebalancing, managing currency risk and for management of fixed-income and alternative investments. For the majority of the plans’ assets, the investment policies require that the asset allocation be maintained within the following ranges as of December 31, 2020: Asset Allocation Ranges Cash and cash equivalents —% - 12% Global public equities 30% - 50% Fixed-income securities 20% - 40% Alternative investments 18% - 38% |
Stock Compensation | Stock Compensation The company’s stock compensation plans are classified as equity plans and compensation expense is generally recognized over the vesting period of stock awards (typically three years), net of estimated forfeitures. The company issues stock awards in the form of restricted performance stock rights and restricted stock rights. The fair value of stock awards is determined based on the closing market price of the company’s common stock on the grant date. At each reporting date, the number of shares used to calculate compensation expense and diluted earnings per share is adjusted to reflect the number ultimately expected to vest. |
Earnings Per Share | We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period.Diluted earnings per share include the dilutive effect of awards granted to employees under stock-based compensation plans. |
Fiscal Month Accounting Convention | It is the company’s long-standing practice to establish actual interim closing dates using a “fiscal” calendar in which we close our books on a Friday near each quarter-end date, in order to normalize the potentially disruptive effects of quarterly closings on business processes. This practice is only used at interim periods within a reporting year. |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy | Accounts receivable, net represent amounts billed and due from customers.Unbilled receivables, net represent revenue recognized under the cost-to-cost method that exceeds amounts billed to customers. |
New Accounting Pronouncements, Policy | Accounting standards updates adopted and/or issued, but not effective until after December 31, 2020, are not expected to have a material effect on the company’s consolidated financial position, annual results of operations and/or cash flows. |
Receivables, Loans, Notes Recei
Receivables, Loans, Notes Receivable, and Others (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy | Accounts receivable, net represent amounts billed and due from customers.Unbilled receivables, net represent revenue recognized under the cost-to-cost method that exceeds amounts billed to customers. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Change in Accounting Estimate | The following table presents the effect of aggregate net EAC adjustments: Year Ended December 31 $ in millions, except per share data 2020 2019 2018 Revenue $ 504 $ 538 $ 631 Operating income 466 480 577 Net earnings (1) 368 379 456 Diluted earnings per share (1) 2.20 2.23 2.61 (1) Based on a 21% federal statutory tax rate. |
Contract with Customer, Asset and Liability | Net contract assets are as follows: $ in millions December 31, 2020 December 31, 2019 $ Change % Change Unbilled receivables, net $ 5,140 $ 5,334 $ (194) (4) % Advance payments and amounts in excess of costs incurred (2,517) (2,237) (280) 13 % Net contract assets $ 2,623 $ 3,097 $ (474) (15) % |
Property, Plant and Equipment | Major classes of property, plant and equipment and their useful lives are as follows: December 31 Useful life in years, $ in millions Useful Life 2020 2019 Land and land improvements Up to 40 (1) $ 628 $ 619 Buildings and improvements Up to 45 2,762 2,575 Machinery and other equipment Up to 20 7,206 6,997 Capitalized software costs 3-5 602 606 Leasehold improvements Lease Term (2) 2,208 1,965 Property, plant and equipment, at cost 13,406 12,762 Accumulated depreciation (6,335) (5,850) Property, plant and equipment, net $ 7,071 $ 6,912 (1) Land is not a depreciable asset. (2) Leasehold improvements are depreciated over the shorter of the useful life of the asset or lease term. |
Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: December 31 $ in millions 2020 2019 Unamortized prior service credit, net of tax expense of $3 for 2020 and $17 for 2019 $ 10 $ 51 Cumulative translation adjustment and other, net (138) (148) Total accumulated other comprehensive loss $ (128) $ (97) |
Acquisition and Dispositions (T
Acquisition and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The Merger date fair value of the consideration transferred totaled $7.7 billion in cash, which was comprised of the following: $ in millions, except per share amounts Purchase price Shares of Orbital ATK common stock outstanding as of the Merger date 57,562,152 Cash consideration per share of Orbital ATK common stock $ 134.50 Total purchase price $ 7,742 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following purchase price allocation table presents the company’s final determination of the fair values of assets acquired and liabilities assumed at the Merger date: $ in millions As of Cash and cash equivalents $ 85 Accounts receivable 596 Unbilled receivables 1,237 Inventoried costs 220 Other current assets 237 Property, plant and equipment 1,509 Goodwill 6,259 Intangible assets 1,525 Other non-current assets 151 Total assets acquired 11,819 Trade accounts payable (397) Accrued employee compensation (158) Advance payments and billings in excess of costs incurred (222) Below market contracts (1) (151) Other current liabilities (412) Long-term debt (1,687) Pension and OPB plan liabilities (613) Deferred tax liabilities (248) Other non-current liabilities (189) Total liabilities assumed (4,077) Total purchase price $ 7,742 (1) Included in Other current liabilities in the consolidated statements of financial position. |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table presents a summary of purchased intangible assets and their related estimated useful lives: Fair Value Estimated Useful Life in Years Customer contracts $ 1,245 9 Commercial customer relationships 280 13 Total customer-related intangible assets $ 1,525 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table presents unaudited pro forma financial information prepared in accordance with Article 11 of Regulation S-X for the year ended December 31, 2018 and computed as if Orbital ATK had been included in our results as of January 1, 2017: $ in millions, except per share amounts Sales $ 32,319 Net earnings 3,417 Diluted earnings per share 19.57 |
Business Combination, Separately Recognized Transactions | The carrying amounts of the major classes of assets and liabilities of the IT and mission support services business classified as held for sale as of December 31, 2020 are as follows: $ in millions Accounts receivable, net $ 110 Unbilled receivables, net 269 Other current assets 9 Property, plant and equipment 14 Operating lease right-of-use assets 38 Goodwill (1) 1,195 Total assets of disposal group held for sale $ 1,635 Trade accounts payable (99) Accrued employee compensation (59) Advance payments and billings in excess of costs incurred (31) Other current liabilities (42) Non-current operating lease liabilities (27) Total liabilities of disposal group held for sale $ (258) |
Earnings Per Share, Share Rep_2
Earnings Per Share, Share Repurchases and Dividends on Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Share Repurchases | The table below summarizes the company’s share repurchases to date under the authorizations described above: Repurchase Program Amount Total Average (1) Date Completed Shares Repurchased Year Ended December 31 2020 2019 2018 September 16, 2015 $ 4,000 15.4 $ 260.33 March 2020 0.9 3.2 3.8 December 4, 2018 $ 3,000 0.5 $ 326.20 0.5 — — 1.4 3.2 3.8 (1) Includes commissions paid. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts receivable | Accounts receivable, net consisted of the following: December 31 $ in millions 2020 2019 Due from U.S. government (1) $ 956 $ 1,030 Due from international and other customers 578 329 Accounts receivable, gross 1,534 1,359 Allowance for expected credit losses (33) (33) Accounts receivable, net $ 1,501 $ 1,326 (1) Includes receivables due from the U.S. government associated with foreign military sales (FMS). For FMS, we contract with and are paid by the U.S. government. |
Unbilled Receivables, Net (Tabl
Unbilled Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Unbilled Receivables, Net [Abstract] | |
Unbilled receivables | Unbilled receivables, net consisted of the following: December 31 $ in millions 2020 2019 Due from U.S. government (1) Unbilled receivables $ 19,315 $ 17,347 Progress and performance-based payments received (14,615) (12,838) Total due from U.S. government 4,700 4,509 Due from international and other customers Unbilled receivables 3,361 4,063 Progress and performance-based payments received (2,881) (3,193) Total due from international and other customers 480 870 Unbilled receivables, net of progress and performance-based payments received 5,180 5,379 Allowance for expected credit losses (40) (45) Unbilled receivables, net $ 5,140 $ 5,334 |
Inventoried Costs, Net (Tables)
Inventoried Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventoried Costs | Inventoried costs, net consisted of the following: December 31 $ in millions 2020 2019 Production costs of contracts in process $ 451 $ 476 G&A expenses 41 31 492 507 Progress and performance-based payments received (62) (41) 430 466 Product inventory and raw material 329 317 Inventoried costs, net $ 759 $ 783 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income tax expense | Federal and foreign income tax expense consisted of the following: Year Ended December 31 $ in millions 2020 2019 2018 Federal income tax expense: Current $ 246 $ 758 $ 292 Deferred 288 (474) 213 Total federal income tax expense 534 284 505 Foreign income tax expense: Current 3 10 7 Deferred 2 6 1 Total foreign income tax expense 5 16 8 Total federal and foreign income tax expense $ 539 $ 300 $ 513 |
Income tax reconciliation | Income tax expense differs from the amount computed by multiplying earnings before income taxes by the statutory federal income tax rate due to the following: Year Ended December 31 $ in millions 2020 2019 2018 Income tax expense at statutory rate $ 783 21.0 % $ 535 21.0 % $ 786 21.0 % Research credit (206) (5.5) (216) (8.5) (186) (5.0) Foreign derived intangible income (55) (1.5) (28) (1.1) (16) (0.4) Stock compensation - excess tax benefits (10) (0.2) (14) (0.5) (27) (0.7) Impacts related to the 2017 Tax Act — — — — (84) (2.2) Other, net 27 0.7 23 0.9 40 1.0 Total federal and foreign income taxes $ 539 14.5 % $ 300 11.8 % $ 513 13.7 % |
Unrecognized tax benefit rollforward | The change in unrecognized tax benefits during 2020, 2019 and 2018, excluding interest, is as follows: December 31 $ in millions 2020 2019 2018 Unrecognized tax benefits at beginning of the year $ 1,223 $ 748 $ 283 Additions based on tax positions related to the current year 187 158 293 Additions for tax positions of prior years 270 400 207 Reductions for tax positions of prior years (190) (65) (23) Settlements with taxing authorities (7) (15) (7) Other, net (2) (3) (5) Net change in unrecognized tax benefits 258 475 465 Unrecognized tax benefits at end of the year $ 1,481 $ 1,223 $ 748 |
Components of deferred tax assets and liabilities | The tax effects of significant temporary differences and carryforwards that gave rise to year-end deferred federal, state and foreign tax balances, as presented in the consolidated statements of financial position, are as follows: December 31 $ in millions 2020 2019 Deferred Tax Assets Retiree benefits $ 1,738 $ 1,827 Accrued employee compensation 360 336 Provisions for accrued liabilities 232 166 Inventory 849 684 Stock-based compensation 40 38 Operating lease liabilities 435 411 Tax credits 343 166 Other 112 73 Gross deferred tax assets 4,109 3,701 Less: valuation allowance (307) (160) Net deferred tax assets 3,802 3,541 Deferred Tax Liabilities Goodwill 533 515 Purchased intangibles 201 262 Property, plant and equipment, net 737 584 Operating lease right-of-use assets 423 404 Contract accounting differences 1,513 1,225 Other 84 43 Deferred tax liabilities 3,491 3,033 Total net deferred tax assets $ 311 $ 508 |
Goodwill and Other Purchased _2
Goodwill and Other Purchased Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amounts of goodwill for the years ended December 31, 2019 and 2020, were as follows: $ in millions Aeronautics Systems Defense Systems Mission Systems Space Systems Total Balance as of December 31, 2018 $ 3,467 $ 4,377 $ 6,062 $ 4,766 $ 18,672 Acquisition of Orbital ATK (1) — — — 37 37 Other (3) — (1) — — (1) Balance as of December 31, 2019 $ 3,467 $ 4,376 $ 6,062 $ 4,803 $ 18,708 Reclassification to assets of disposal group held for sale (2) — (966) (181) (48) (1,195) Other (3) — 5 — — 5 Balance as of December 31, 2020 $ 3,467 $ 3,415 $ 5,881 $ 4,755 $ 17,518 (1) Represents changes to goodwill resulting from measurement period adjustments recorded in 2019 associated with Orbital ATK’s purchase price allocation. (2) Represents the reclassification of goodwill to assets of disposal group held for sale due to the pending divestiture of our IT and mission support services business (See Note 2). (3) Other consists primarily of adjustments for foreign currency translation. |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Net customer-related and other intangible assets are as follows: December 31 $ in millions 2020 2019 Gross customer-related and other intangible assets $ 3,362 $ 3,356 Less accumulated amortization (2,579) (2,316) Net customer-related and other intangible assets $ 783 $ 1,040 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of December 31, 2020, the expected future amortization of purchased intangibles for each of the next five years is as follows: $ in millions 2021 $ 205 2022 197 2023 79 2024 56 2025 44 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of assets and liabilities measured on a recurring basis | The following table presents the financial assets and liabilities the company records at fair value on a recurring basis identified by the level of inputs used to determine fair value. See Note 1 for the definitions of these levels and for further information on our financial instruments. December 31, 2020 December 31, 2019 $ in millions Level 1 Level 2 Total Level 1 Level 2 Total Financial Assets (Liabilities) Marketable securities $ 377 $ 1 $ 378 $ 364 $ 1 $ 365 Marketable securities valued using NAV 18 17 Total marketable securities 377 1 396 364 1 382 Derivatives — — — — (3) (3) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consists of the following: $ in millions December 31 2020 2019 Fixed-rate notes and debentures, maturing in Interest rate 2020 2.08% $ — $ 1,000 2021 3.50% 700 700 2022 2.55% 1,500 1,500 2023 3.25% 1,050 1,050 2025 2.93% 1,500 1,500 2026 7.75% - 7.88% 527 527 2027 3.20% 750 750 2028 3.25% 2,000 2,000 2030 4.40% 750 — 2031 7.75% 466 466 2040 5.05% - 5.15% 800 300 2043 4.75% 950 950 2045 3.85% 600 600 2047 4.03% 2,250 2,250 2050 5.25% 1,000 — Credit facilities 1.89% — 78 Other Various 235 272 Debt issuance costs (75) (64) Total long-term debt 15,003 13,879 Less: current portion (1) 742 1,109 Long-term debt, net of current portion $ 14,261 $ 12,770 (1) The current portion of long-term debt is recorded in Other current liabilities in the consolidated statements of financial position. |
Long-term debt maturities | Maturities of long-term debt as of December 31, 2020, are as follows: $ in millions Year Ending December 31 2021 $ 742 2022 1,505 2023 1,053 2024 3 2025 1,503 Thereafter 10,285 Total principal payments 15,091 Unamortized premium on long-term debt, net of discount (13) Debt issuance costs (75) Total long-term debt $ 15,003 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Remediation [Table Text Block] | The table below summarizes the amount accrued for environmental remediation costs, management’s estimate of the amount of reasonably possible future costs in excess of accrued costs and the deferred costs expected to be recoverable through overhead charges on U.S. government contracts as of December 31, 2020 and 2019: $ in millions Accrued Costs (1)(2) Reasonably Possible Future Costs in excess of Accrued Costs (2) Deferred Costs (3) December 31, 2020 $ 614 $ 346 $ 529 December 31, 2019 531 448 436 (1) As of December 31, 2020, $237 million is recorded in Other current liabilities and $377 million is recorded in Other non-current liabilities. (2) Estimated remediation costs are not discounted to present value. The reasonably possible future costs in excess of accrued costs do not take into consideration amounts expected to be recoverable through overhead charges on U.S. government contracts. (3) As of December 31, 2020, $210 million is deferred in Prepaid expenses and other current assets and $319 million is deferred in Other non-current assets. These amounts are evaluated for recoverability on a routine basis. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | The cost to the company of its retirement benefit plans is shown in the following table: Year Ended December 31 Pension Benefits Medical and Life Benefits $ in millions 2020 2019 2018 2020 2019 2018 Components of net periodic benefit cost (benefit) Service cost $ 409 $ 367 $ 404 $ 17 $ 16 $ 21 Interest cost 1,226 1,360 1,226 67 80 76 Expected return on plan assets (2,376) (2,101) (2,217) (102) (92) (101) Amortization of prior service cost (credit) (59) (59) (58) 4 (3) (21) Mark-to-market expense (benefit) 1,034 1,783 699 — 17 (44) Other 10 — — 2 — — Net periodic benefit cost (benefit) $ 244 $ 1,350 $ 54 $ (12) $ 18 $ (69) |
Changes in unamortized benefit plan costs | The table below summarizes the components of changes in unamortized prior service credit (cost) for the years ended December 31, 2018, 2019 and 2020: $ in millions Pension Benefits Medical and Life Benefits Total Changes in unamortized prior service credit Amortization of prior service credit $ 58 $ 21 $ 79 Tax expense (14) (5) (19) Change in unamortized prior service credit – 2018 44 16 60 Amortization of prior service credit 59 3 62 Tax expense (14) (1) (15) Change in unamortized prior service credit – 2019 45 2 47 Amortization of prior service credit (cost) 59 (4) 55 Tax expense (15) 1 (14) Change in unamortized prior service credit (cost) – 2020 $ 44 $ (3) $ 41 |
Change in plan assets and amounts recognized in the consolidated statements of financial position | The following table sets forth the funded status and amounts recognized in the consolidated statements of financial position for the company’s defined benefit retirement plans. Pension benefits data includes the qualified plans, foreign plans and U.S. unfunded non-qualified plans for benefits provided to directors, officers and certain employees. The company uses a December 31 measurement date for its plans. Pension Benefits Medical and Life Benefits $ in millions 2020 2019 2020 2019 Plan Assets Fair value of plan assets at beginning of year $ 30,646 $ 27,150 $ 1,392 $ 1,247 Net gain on plan assets 4,802 5,025 218 234 Employer contributions 851 221 36 42 Participant contributions 8 8 24 24 Benefits paid (1,865) (1,763) (155) (156) Acquired plan assets — — — — Other 10 5 — 1 Fair value of plan assets at end of year 34,452 30,646 1,515 1,392 Projected Benefit Obligation Projected benefit obligation at beginning of year 36,914 32,231 2,048 1,930 Service cost 409 367 17 16 Interest cost 1,226 1,360 67 80 Participant contributions 8 8 24 24 Actuarial loss 3,455 4,708 115 159 Benefits paid (1,865) (1,763) (155) (156) Acquired benefit obligation — — — — Other 35 3 3 (5) Projected benefit obligation at end of year 40,182 36,914 2,119 2,048 Funded status $ (5,730) $ (6,268) $ (604) $ (656) Pension Benefits The increase in our pension assets for the year ended December 31, 2020 was principally driven by net plan asset returns of 16.2 percent and a $750 million discretionary pension contribution. In 2019, pension assets increased primarily due to net plan asset returns of 19.1 percent. The increase in our projected benefit obligation for the year ended December 31, 2020, was primarily driven by a 71 basis point decrease in the discount rate from year end 2019. In 2019, our projected benefit obligation increased primarily due to a 92 basis point decrease in the discount rate from year end 2018 as well as a change in our mortality assumptions. Pension Benefits Medical and Life Benefits $ in millions 2020 2019 2020 2019 Classification of amounts recognized in the consolidated statements of financial position Non-current assets $ 211 $ 124 $ 179 $ 151 Current liability (180) (173) (46) (47) Non-current liability (5,761) (6,219) (737) (760) |
Pension plans with accumulated benefit obligations in excess of fair value of plan assets | Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets are as follows: December 31 $ in millions 2020 2019 Projected benefit obligation $ 37,681 $ 34,715 Accumulated benefit obligation 37,135 34,305 Fair value of plan assets 31,741 28,324 |
Weighted-average plan assumptions | On a weighted-average basis, the following assumptions were used to determine benefit obligations and net periodic benefit cost: Pension Benefits Medical and Life Benefits 2020 2019 2020 2019 Assumptions used to determine benefit obligation at December 31 Discount rate 2.68 % 3.39 % 2.58 % 3.35 % Initial cash balance crediting rate assumed for the next year 2.25 % 2.39 % Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate) 2.25 % 2.64 % Year that the cash balance crediting rate reaches the ultimate rate 2026 2025 Rate of compensation increase 3.00 % 3.00 % Initial health care cost trend rate assumed for the next year 5.60 % 5.90 % Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the health care cost trend rate reaches the ultimate trend rate 2023 2023 Assumptions used to determine benefit cost for the year ended December 31 Discount rate 3.39 % 4.31 % 3.35 % 4.30 % Initial cash balance crediting rate assumed for the next year 2.39 % 3.00 % Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate) 2.64 % 3.25 % Year that the cash balance crediting rate reaches the ultimate rate 2025 2024 Expected long-term return on plan assets 8.00 % 8.00 % 7.66 % 7.67 % Rate of compensation increase 3.00 % 3.00 % Initial health care cost trend rate assumed for the next year 5.90 % 6.20 % Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the health care cost trend rate reaches the ultimate trend rate 2023 2023 |
Plan asset allocation | For the majority of the plans’ assets, the investment policies require that the asset allocation be maintained within the following ranges as of December 31, 2020: Asset Allocation Ranges Cash and cash equivalents —% - 12% Global public equities 30% - 50% Fixed-income securities 20% - 40% Alternative investments 18% - 38% The table below provides the fair values of the company’s pension and Voluntary Employee Beneficiary Association (VEBA) trust plan assets at December 31, 2020 and 2019, by asset category. The table also identifies the level of inputs used to determine the fair value of assets in each category. See Note 1 for the definitions of these levels. Certain investments that are measured at fair value using NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table. As of December 31, 2020 and 2019, there were no investments expected to be sold at a value materially different than NAV. Level 1 Level 2 Level 3 Total $ in millions 2020 2019 2020 2019 2020 2019 2020 2019 Asset category Cash and cash equivalents $ 120 $ 233 $ 1,238 $ 2,572 $ 1,358 $ 2,805 U.S. equities 2,981 3,341 2,981 3,341 International equities 3,354 3,271 $ 2 $ 2 3,356 3,273 Fixed-income securities U.S. Treasuries 22 20 2,273 2,716 2,295 2,736 U.S. Government Agency 258 297 258 297 Non-U.S. Government 332 194 332 194 Corporate debt 31 28 6,228 4,513 6,259 4,541 Asset backed 1,080 892 1,080 892 High yield debt 24 30 48 104 72 134 Bank loans 59 33 59 33 Other assets (2) (9) 59 59 2 2 59 52 Investments valued using NAV as a practical expedient U.S. equities 1,567 1,131 International equities 7,193 5,636 Fixed-income funds 1,959 438 Hedge funds 65 246 Opportunistic investments 2,499 1,459 Private equity funds 2,627 2,454 Real estate funds 2,180 2,376 Payables, net (232) — Fair value of plan assets at the end of the year $ 6,530 $ 6,914 $ 11,575 $ 11,380 $ 4 $ 4 $ 35,967 $ 32,038 |
Estimated benefit payments | The following table reflects estimated future benefit payments for the next ten years, based upon the same assumptions used to measure the benefit obligation, and includes expected future employee service, as of December 31, 2020: $ in millions Pension Plans Medical and Life Plans Total Year Ending December 31 2021 $ 1,884 $ 152 $ 2,036 2022 1,930 153 2,083 2023 1,973 135 2,108 2024 2,017 133 2,150 2025 2,057 130 2,187 2026 through 2030 10,599 556 11,155 |
Stock Compensation Plans and _2
Stock Compensation Plans and Other Compensation Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Award Rollforward Activity | Stock award activity for the years ended December 31, 2018, 2019 and 2020, is presented in the table below. Vested awards do not include any adjustments to reflect the final performance measure for issued shares. Stock Weighted- Weighted- Outstanding at January 1, 2018 938 $ 192 1.0 Granted 376 321 Vested (455) 181 Forfeited (63) 250 Outstanding at December 31, 2018 796 $ 244 0.8 Granted 339 274 Vested (383) 222 Forfeited (51) 280 Outstanding at December 31, 2019 701 $ 278 0.9 Granted 262 350 Vested (296) 305 Forfeited (64) 303 Outstanding at December 31, 2020 603 $ 311 1.4 |
Cash Units and Cash Performance Units Aggregate Payout Amount [Table Text Block] | The following table presents the minimum and maximum aggregate payout amounts related to those cash awards granted for the periods presented: Year Ended December 31 $ in millions 2020 2019 2018 Minimum aggregate payout amount $ 31 $ 36 $ 36 Maximum aggregate payout amount 175 203 205 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Total lease cost is comprised of the following: Year Ended December 31 $ in millions 2020 2019 Operating lease cost $ 320 $ 318 Variable lease cost 28 11 Short-term lease cost 93 75 Total lease cost $ 441 $ 404 |
Supplemental Balance Sheet Disclosures [Text Block] | Supplemental operating lease balance sheet information consists of the following: Year Ended December 31 $ in millions 2020 2019 Operating lease right-of-use assets $ 1,533 $ 1,511 Other current liabilities 263 261 Operating lease liabilities 1,343 1,308 Total operating lease liabilities $ 1,606 $ 1,569 |
Other Supplemental Lease Information [Table Text Block] | Other supplemental operating lease information consists of the following: Year Ended December 31 $ in millions 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 275 $ 307 Right-of-use assets obtained in exchange for new lease liabilities 345 462 Weighted average remaining lease term 12.1 years 11.6 years Weighted average discount rate 3.5 % 3.8 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities as of December 31, 2020 are as follows: $ in millions Year Ending December 31 2021 $ 298 2022 267 2023 228 2024 185 2025 142 Thereafter 902 Total lease payments 2,022 Less: imputed interest (416) Present value of operating lease liabilities $ 1,606 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Sales and operating income by segment | The following table presents sales and operating income by segment: Year Ended December 31 $ in millions 2020 2019 2018 Sales Aeronautics Systems $ 12,169 $ 11,116 $ 10,293 Defense Systems 7,543 7,495 6,612 Mission Systems 10,080 9,410 8,949 Space Systems 8,744 7,425 5,845 Intersegment eliminations (1,737) (1,605) (1,604) Total sales 36,799 33,841 30,095 Operating income Aeronautics Systems 1,206 1,188 1,128 Defense Systems 846 793 697 Mission Systems 1,459 1,408 1,245 Space Systems 893 794 644 Intersegment eliminations (216) (205) (200) Total segment operating income 4,188 3,978 3,514 Net FAS (service)/CAS pension adjustment 418 465 613 Unallocated corporate expense (541) (474) (347) Total operating income $ 4,065 $ 3,969 $ 3,780 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Sales by Customer Type Year Ended December 31 2020 2019 2018 $ in millions $ % (3) $ % (3) $ % (3) Aeronautics Systems U.S. government (1) $ 10,411 86 % $ 9,258 83 % $ 8,732 85 % International (2) 1,595 13 % 1,688 15 % 1,402 13 % Other customers 41 — % 67 1 % 86 1 % Intersegment sales 122 1 % 103 1 % 73 1 % Aeronautics Systems sales 12,169 100 % 11,116 100 % 10,293 100 % Defense Systems U.S. government (1) 5,103 68 % 4,952 66 % 4,132 62 % International (2) 1,317 17 % 1,442 19 % 1,249 19 % Other customers 395 5 % 410 6 % 481 7 % Intersegment sales 728 10 % 691 9 % 750 12 % Defense Systems sales 7,543 100 % 7,495 100 % 6,612 100 % Mission Systems U.S. government (1) 7,279 72 % 6,765 72 % 6,501 73 % International (2) 1,945 19 % 1,839 19 % 1,653 18 % Other customers 77 1 % 78 1 % 77 1 % Intersegment sales 779 8 % 728 8 % 718 8 % Mission Systems sales 10,080 100 % 9,410 100 % 8,949 100 % Space Systems U.S. government (1) 8,110 93 % 6,959 94 % 5,431 93 % International (2) 331 4 % 185 2 % 130 2 % Other customers 195 2 % 198 3 % 221 4 % Intersegment sales 108 1 % 83 1 % 63 1 % Space Systems sales 8,744 100 % 7,425 100 % 5,845 100 % Total U.S. government (1) 30,903 84 % 27,934 83 % 24,796 82 % International (2) 5,188 14 % 5,154 15 % 4,434 15 % Other customers 708 2 % 753 2 % 865 3 % Total Sales $ 36,799 100 % $ 33,841 100 % $ 30,095 100 % (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 substantial 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. These sales include foreign military sales contracted through the U.S. government. (3) Percentages calculated based on total segment sales. |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Sales by Contract Type Year Ended December 31 2020 2019 2018 $ in millions $ % (1) $ % (1) $ % (1) Aeronautics Systems Cost-type $ 6,142 51 % $ 5,299 48 % $ 5,066 50 % Fixed-price 5,905 49 % 5,714 52 % 5,154 50 % Intersegment sales 122 103 73 Aeronautics Systems sales 12,169 11,116 10,293 Defense Systems Cost-type 2,345 34 % 2,509 37 % 2,386 41 % Fixed-price 4,470 66 % 4,295 63 % 3,476 59 % Intersegment sales 728 691 750 Defense Systems sales 7,543 7,495 6,612 Mission Systems Cost-type 3,582 39 % 3,335 38 % 3,099 38 % Fixed-price 5,719 61 % 5,347 62 % 5,132 62 % Intersegment sales 779 728 718 Mission Systems sales 10,080 9,410 8,949 Space Systems Cost-type 6,369 74 % 5,336 73 % 4,453 77 % Fixed-price 2,267 26 % 2,006 27 % 1,329 23 % Intersegment sales 108 83 63 Space Systems sales 8,744 7,425 5,845 Total Cost-type 18,438 50 % 16,479 49 % 15,004 50 % Fixed-price 18,361 50 % 17,362 51 % 15,091 50 % Total Sales $ 36,799 $ 33,841 $ 30,095 (1) Percentages calculated based on external customer sales. |
Revenue from External Customers by Geographic Areas [Table Text Block] | Sales by Geographic Region Year Ended December 31 2020 2019 2018 $ in millions $ % (2) $ % (2) $ % (2) Aeronautics Systems United States $ 10,452 87 % $ 9,325 85 % $ 8,818 86 % Asia/Pacific 841 7 % 810 7 % 677 7 % Europe 574 5 % 587 5 % 536 5 % All other (1) 180 1 % 291 3 % 189 2 % Intersegment sales 122 103 73 Aeronautics Systems sales 12,169 11,116 10,293 Defense Systems United States 5,498 81 % 5,362 79 % 4,613 79 % Asia/Pacific 402 6 % 369 5 % 365 6 % Europe 315 4 % 249 4 % 204 3 % All other (1) 600 9 % 824 12 % 680 12 % Intersegment sales 728 691 750 Defense Systems sales 7,543 7,495 6,612 Mission Systems United States 7,356 79 % 6,843 79 % 6,578 80 % Asia/Pacific 707 8 % 637 7 % 592 7 % Europe 893 9 % 850 10 % 682 8 % All other (1) 345 4 % 352 4 % 379 5 % Intersegment sales 779 728 718 Mission Systems sales 10,080 9,410 8,949 Space Systems United States 8,305 96 % 7,157 98 % 5,652 98 % Asia/Pacific 18 — % 20 — % 32 — % Europe 300 4 % 147 2 % 92 2 % All other (1) 13 — % 18 — % 6 — % Intersegment sales 108 83 63 Space Systems sales 8,744 7,425 5,845 Total United States 31,611 86 % 28,687 85 % 25,661 85 % Asia/Pacific 1,968 5 % 1,836 6 % 1,666 6 % Europe 2,082 6 % 1,833 5 % 1,514 5 % All other (1) 1,138 3 % 1,485 4 % 1,254 4 % Total Sales $ 36,799 $ 33,841 $ 30,095 (1) All other is principally comprised of the Middle East. (2) Percentages calculated based on external customer sales. |
Intersegment sales and operating income | The following table presents intersegment sales and operating income before eliminations: Year Ended December 31 $ in millions 2020 2019 2018 Sales Operating Sales Operating Sales Operating Intersegment sales and operating income Aeronautics Systems $ 122 $ 11 $ 103 $ 10 $ 73 $ 8 Defense Systems 728 76 691 74 750 74 Mission Systems 779 116 728 113 718 115 Space Systems 108 13 83 8 63 3 Total $ 1,737 $ 216 $ 1,605 $ 205 $ 1,604 $ 200 |
Total assets by segment | The following table presents assets by segment: December 31 $ in millions 2020 2019 Assets Aeronautics Systems $ 8,997 $ 9,104 Defense Systems 7,352 7,420 Mission Systems 10,029 9,934 Space Systems 10,028 10,595 Corporate assets (1) 8,063 4,036 Total assets $ 44,469 $ 41,089 (1) Corporate assets principally consist of cash and cash equivalents, refundable taxes, deferred tax assets, property, plant and equipment, marketable securities and deferred costs associated with certain environmental matters. Beginning in 2020, certain additional environmental matters that were previously reflected in segment assets are now reflected in corporate assets. |
Additional information by segment | The following table presents capital expenditures and depreciation and amortization by segment: Year Ended December 31 $ in millions 2020 2019 2018 2020 2019 2018 Capital Expenditures Depreciation and Amortization (1) Aeronautics Systems $ 540 $ 528 $ 657 $ 238 $ 224 $ 190 Defense Systems 78 71 66 48 44 65 Mission Systems 302 229 197 150 133 121 Space Systems 440 352 226 211 189 130 Corporate 60 84 103 358 428 294 Total $ 1,420 $ 1,264 $ 1,249 $ 1,005 $ 1,018 $ 800 (1) Corporate amounts include the 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 they are not considered part of management’s evaluation of segment operating performance. |
Unaudited Selected Quarterly _2
Unaudited Selected Quarterly Data (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Quarterly Financial Information [Table Text Block] | 2020 In millions, except per share amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Sales $ 8,620 $ 8,884 $ 9,083 $ 10,212 Operating income 934 994 985 1,152 Net earnings 868 1,005 986 330 Basic earnings per share 5.18 6.02 5.91 1.98 Diluted earnings per share 5.15 6.01 5.89 1.97 Weighted-average common shares outstanding 167.7 166.9 166.8 166.8 Weighted-average diluted shares outstanding 168.4 167.3 167.3 167.4 | 2019 In millions, except per share amounts 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Sales $ 8,189 $ 8,456 $ 8,475 $ 8,721 Operating income 936 946 951 1,136 Net earnings (loss) 863 861 933 (409) Basic earnings (loss) per share 5.08 5.07 5.52 (2.43) Diluted earnings (loss) per share (1) 5.06 5.06 5.49 (2.43) Weighted-average common shares outstanding 170.0 169.7 169.1 168.4 Weighted-average diluted shares outstanding (1) 170.7 170.3 169.9 168.4 |
Amounts in Paragraphs - Summary
Amounts in Paragraphs - Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 07, 2020 | |
Summary of Significant Accounting Policies (Amounts in paragraphs) | |||||
Research and development expenses | $ 764 | $ 1,100 | $ 953 | ||
Research and Development as a Percent of Sales | 2.50% | 2.90% | 2.80% | ||
Cash surrender value of life insurance | $ 419 | $ 380 | |||
Stock plans, vesting period | 3 years | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 3,400 | ||||
Revenue from Sale of Equipment to a Customer | $ 444 | ||||
Proceeds from Sale of Equipment to a Customer | 205 | 0 | $ 0 | ||
Non-Cash Proceeds from sale of equipment to a customer | 239 | ||||
Capital Expenditures Incurred but Not yet Paid | $ 72 | $ 166 | $ 185 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Property, Plant and Equipment (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 13,406 | $ 12,762 |
Accumulated depreciation | (6,335) | (5,850) |
Property, plant, and equipment, net | 7,071 | 6,912 |
Land and land improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 628 | 619 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 2,762 | 2,575 |
Machinery and other equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 7,206 | 6,997 |
Capitalized software costs | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 602 | 606 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 2,208 | $ 1,965 |
Minimum | Capitalized software costs | ||
Property, Plant and Equipment | ||
Property, plant and equipment, estimated useful life | 3 years | |
Maximum [Member] | Land and land improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, estimated useful life | 40 years | |
Maximum [Member] | Buildings and improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, estimated useful life | 45 years | |
Maximum [Member] | Machinery and other equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, estimated useful life | 20 years | |
Maximum [Member] | Capitalized software costs | ||
Property, Plant and Equipment | ||
Property, plant and equipment, estimated useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Accumulated Other Comprehensive Income (Loss) (Details 3) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Loss | ||
Unamortized prior service credit, net of tax expense of $3 for 2020 and $17 for 2019 | $ 10 | $ 51 |
Cumulative translation adjustment and other, net | (138) | (148) |
Total accumulated other comprehensive loss | (128) | (97) |
Prior Service Credit Tax Expense | $ 3 | $ 17 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Contract Estimates (Details 4) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Accounting Estimate [Line Items] | ||||||||||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 504 | $ 538 | $ 631 | |||||||||
Operating income | $ 1,152 | $ 985 | $ 994 | $ 934 | $ 1,136 | $ 951 | $ 946 | $ 936 | 4,065 | 3,969 | 3,780 | |
Net earnings | $ 330 | $ 986 | $ 1,005 | $ 868 | $ (409) | $ 933 | $ 861 | $ 863 | $ 3,189 | $ 2,248 | $ 3,229 | |
Diluted earnings per share | $ 1.97 | $ 5.89 | $ 6.01 | $ 5.15 | $ (2.43) | $ 5.49 | $ 5.06 | $ 5.06 | $ 19.03 | $ 13.22 | $ 18.49 | |
Contracts Accounted for under Percentage of Completion [Member] | ||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Operating income | $ 466 | $ 480 | $ 577 | |||||||||
Net earnings | $ 368 | $ 379 | $ 456 | |||||||||
Diluted earnings per share | $ 2.20 | $ 2.23 | $ 2.61 | |||||||||
Aeronautics Systems | Contracts Accounted for under Percentage of Completion [Member] | ||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Operating income | $ 69 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Backlog and Contract Assets and Liabilities (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Revenue, Remaining Performance Obligation, Amount | $ 81,000 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | We expect to recognize approximately 40 percent and 60 percent of our December 31, 2020 backlog as revenue over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter. | ||
Unbilled Receivables, Current | $ 5,140 | $ 5,334 | |
Amount of increase (decrease) in Unbilled Receivables | $ (194) | ||
Percent increase (decrease) in Unbilled Receivables | (4.00%) | ||
Contract with Customer, Liability, Current | $ (2,517) | (2,237) | |
Amount of decrease (increase) in Contract with Customer, Liability, Current | $ (280) | ||
Percent decrease (increase) in Contract with Customer, Liability, Current | 13.00% | ||
Contract with Customer, Asset, Net, Current | $ 2,623 | 3,097 | |
Amount of increase (decrease) in net contract assets (liabilities) | $ (474) | ||
Percent increase (decrease) in net contract assets (liabilities) | (15.00%) | ||
Contract with Customer, Liability, Revenue Recognized | $ 1,600 | $ 1,300 | $ 1,300 |
Acquisition of Orbital ATK Oper
Acquisition of Orbital ATK Operating Results Post Acquisition (Details 1) - USD ($) $ in Millions | Jun. 06, 2018 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Consideration Transferred | $ 7,742 | ||||||||||||
Revenues | $ 10,212 | $ 9,083 | $ 8,884 | $ 8,620 | $ 8,721 | $ 8,475 | $ 8,456 | $ 8,189 | $ 36,799 | $ 33,841 | $ 30,095 | ||
Operating Income (Loss) | 1,152 | 985 | 994 | 934 | 1,136 | 951 | 946 | 936 | 4,065 | 3,969 | 3,780 | ||
Net earnings | $ 330 | $ 986 | $ 1,005 | $ 868 | $ (409) | $ 933 | $ 861 | $ 863 | 3,189 | 2,248 | 3,229 | ||
Business Combination, Acquisition Related Costs | 29 | ||||||||||||
Operating Segments [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Operating Income (Loss) | 4,188 | 3,978 | 3,514 | ||||||||||
Operating Segments [Member] | Space Systems | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | $ 3,100 | 8,744 | 7,425 | 5,845 | |||||||||
Operating Income (Loss) | 342 | $ 893 | $ 794 | $ 644 | |||||||||
Net earnings | $ 273 |
Acquisition of Orbital ATK Purc
Acquisition of Orbital ATK Purchase Price Allocation (Details 2) - USD ($) $ / shares in Units, $ in Millions | Jun. 06, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 17,518 | $ 18,708 | $ 18,672 | |
Shares of Orbital ATK common stock outstanding as of the Merger date | 57,562,152 | |||
Cash consideration per share of Orbital ATK common stock | $ 134.50 | |||
Total purchase price | $ 7,742 | |||
Orbital ATK [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 85 | |||
Accounts receivable | 596 | |||
Unbilled receivables | 1,237 | |||
Inventoried costs | 220 | |||
Other current assets | 237 | |||
Property, plant and equipment | 1,509 | |||
Goodwill | 6,259 | |||
Intangible assets | 1,525 | |||
Other non-current assets | 151 | |||
Total assets acquired | 11,819 | |||
Trade accounts payable | (397) | |||
Accrued employee compensation | (158) | |||
Advance payments and billings in excess of costs incurred | (222) | |||
Below market contracts(1) | (151) | |||
Other current liabilities | (412) | |||
Long-term debt | (1,687) | |||
Pension and OPB plan liabilities | (613) | |||
Deferred tax liabilities | (248) | |||
Other non-current liabilities | (189) | |||
Total liabilities assumed | (4,077) | |||
Total purchase price | $ 7,742 |
Acquisition of Orbital ATK Acqu
Acquisition of Orbital ATK Acquired Purchased Intangbile Assets (Details 3) - USD ($) $ in Millions | Jun. 06, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 17,518 | $ 18,708 | $ 18,672 | |
Goodwill | $ 17,518 | $ 18,708 | $ 18,672 | |
Orbital ATK [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 1,525 | |||
Goodwill | 6,259 | |||
Goodwill | $ 6,259 | |||
Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 280 | |||
Customer Contracts [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 1,245 |
Acquisition of Orbital ATK Pro
Acquisition of Orbital ATK Pro Forma Financial Information (Details 4) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / shares | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Revenue | $ 32,319 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 3,417 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ / shares | $ 19.57 |
Pro Forma Adjustments, Orbital ATK intercompany sales elimination | $ 80 |
Pro Forma Adjustments, Elimination of nonrecurring transaction costs | 71 |
Pro Forma Adjustments, Additional depreciation expense, net of removal of historical depreciation | 8 |
Pro Forma Adjustments, Additional amortization expense, net of removal of historical amortization expense | 90 |
Pro Forma Adjustments, Elimination of Orbital ATK’s historical amortization of net actuarial losses and prior service credits and revised pension and other post-retirement costs | 51 |
Income Tax Effects of Pro Forma Adjustments | $ (5) |
Disposition of IT and Mission S
Disposition of IT and Mission Support Services (Details 5) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 07, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Group | ||||
Accounts receivable, net | $ 110 | |||
Unbilled receivables, net | 269 | |||
Other current assets | 9 | |||
Property, plant and equipment | 14 | |||
Operating lease right-of-use assets | 38 | |||
Goodwill | 1,195 | |||
Total assets of disposal group held for sale | 1,635 | |||
Trade accounts payable | (99) | |||
Accrued employee compensation | (59) | |||
Advance payments and billings in excess of costs incurred | (31) | |||
Other current liabilities | (42) | |||
Non-current operating lease liabilities | 27 | |||
Total liabilities of disposal group held for sale | (258) | |||
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax | $ 247 | $ 245 | $ 288 | |
Disposal Group, Including Discontinued Operation, Consideration | $ 3,400 |
Earnings Per Share, Share Rep_3
Earnings Per Share, Share Repurchases and Dividends on Common Stock Share Repurchases (Details 1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | 25 Months Ended | 59 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Feb. 29, 2020 | Jan. 25, 2021 | Dec. 04, 2018 | Sep. 16, 2015 | |
Stock Repurchase [Line Items] | ||||||||
Shares Repurchased | 1.4 | 3.2 | 3.8 | |||||
September 2015 Share Repurchase Original Authorization | ||||||||
Stock Repurchase [Line Items] | ||||||||
Amount Authorized | $ 4,000 | |||||||
Total Shares Retired | 15.4 | |||||||
Average Price Per Share | $ 260.33 | |||||||
Shares Repurchased | 0.9 | 3.2 | 3.8 | |||||
December 2018 Share Repurchase Program Original Authorization | ||||||||
Stock Repurchase [Line Items] | ||||||||
Amount Authorized | $ 3,000 | |||||||
Total Shares Retired | 0.5 | |||||||
Average Price Per Share | $ 326.20 | |||||||
Shares Repurchased | 0.5 | 0 | 0 | |||||
Amount repurchased | $ 200 | |||||||
Amount remaining under authorization for share repurchases | $ 2,800 | $ 2,800 | ||||||
January 2021 Share Repurchase Program [Member] | Subsequent Event [Member] | ||||||||
Stock Repurchase [Line Items] | ||||||||
Amount Authorized | $ 3,000 | |||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 5,800 |
Earnings Per Share, Share Rep_4
Earnings Per Share, Share Repurchases and Dividends on Common Stock (Details 2) - $ / shares shares in Millions | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2020 | May 31, 2019 | May 31, 2018 | Jan. 31, 2018 | May 30, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Common stock dividend (in dollars per share) | $ 1.45 | $ 1.32 | $ 1.20 | $ 1.10 | $ 1 | $ 5.67 | $ 5.16 | $ 4.70 |
Increase (Decrease) in Stock Dividend, Percentage | 10.00% | 9.00% | 10.00% | |||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||
Dilutive effect of stock options and other stock awards granted | 0.5 | 0.7 | 0.9 | |||||
Increase (Decrease) in Stock Dividend, Percentage | 10.00% | 9.00% | 10.00% | |||||
Common stock dividend (in dollars per share) | $ 1.45 | $ 1.32 | $ 1.20 | $ 1.10 | $ 1 | $ 5.67 | $ 5.16 | $ 4.70 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable, gross | $ 1,534 | $ 1,359 |
Allowance for expected credit losses | (33) | (33) |
Accounts receivable, net | 1,501 | 1,326 |
US Government [Member] | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable, gross | 956 | 1,030 |
International and Other Customers [Member] | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable, gross | $ 578 | $ 329 |
Unbilled Receivables, Net (Deta
Unbilled Receivables, Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unbilled receivable, net of progress and performance-based payments received | $ 5,180 | $ 5,379 |
Allowance for expected credit losses | (40) | (45) |
Unbilled receivables, net | 5,140 | 5,334 |
US Government [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unbilled receivables | 19,315 | 17,347 |
Government Contract Receivable, Progress Payment Offset | 14,615 | 12,838 |
Unbilled receivable, net of progress and performance-based payments received | 4,700 | 4,509 |
International and Other Customers [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unbilled receivables | 3,361 | 4,063 |
Progress and performance-based payments received | (2,881) | (3,193) |
Unbilled receivable, net of progress and performance-based payments received | $ 480 | $ 870 |
Inventoried Costs, Net (Details
Inventoried Costs, Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Production costs of contracts in process | $ 451 | $ 476 |
General and administrative expenses | 41 | 31 |
Inventoried costs | 492 | 507 |
Progress and performance-based payments received | (62) | (41) |
Inventoried costs, net of progress payments | 430 | 466 |
Product inventory | 329 | 317 |
Inventory, Net | $ 759 | $ 783 |
Income Taxes Federal and Foreig
Income Taxes Federal and Foreign Income Tax Expense (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes on Continuing Operations (Table Amounts) | |||
Current federal income tax expense (benefit) | $ 246 | $ 758 | $ 292 |
Deferred federal income tax expense (benefit) | 288 | (474) | 213 |
Total federal income tax expense (benefit) | 534 | 284 | 505 |
Current foreign income tax expense (benefit) | 3 | 10 | 7 |
Deferred foreign income tax expense (benefit) | 2 | 6 | 1 |
Total foreign income tax expense (benefit) | 5 | 16 | 8 |
Total federal and foreign income tax expense | $ 539 | $ 300 | $ 513 |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate Reconciliation (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Reconciliation (Table Amounts) [Abstract] | |||
Income tax expense at statutory rate | $ 783 | $ 535 | $ 786 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% |
Stock compensation - excess tax benefits | $ (10) | $ (14) | $ (27) |
Stock compensation - excess tax benefits, Percent | (0.20%) | (0.50%) | (0.70%) |
Research credit | $ (206) | $ (216) | $ (186) |
Research credit, Percent | (5.50%) | (8.50%) | (5.00%) |
Foreign derived intangible income | $ (55) | $ (28) | $ (16) |
Foreign derived intangible income, Percent | (1.50%) | (1.10%) | (0.40%) |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Amount | $ 0 | $ 0 | $ (84) |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Percent | 0 | 0 | (0.022) |
Other, net | $ 27 | $ 23 | $ 40 |
Other net, Percent | 0.70% | 0.90% | 1.00% |
Total federal and foreign income tax expense | $ 539 | $ 300 | $ 513 |
Effective income tax rate | 14.50% | 11.80% | 13.70% |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 144 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 607 | ||
Unrecognized Tax Benefits Rollforward (Table Amounts) [Abstract] | |||
Unrecognized tax benefits at beginning of the year | 1,223 | $ 748 | $ 283 |
Additions based on tax positions related to the current year | 187 | 158 | 293 |
Additions for tax positions of prior years | 270 | 400 | 207 |
Reductions for tax positions of prior years | (190) | (65) | (23) |
Settlements with taxing authorities | (7) | (15) | (7) |
Other, net | (2) | (3) | (5) |
Net change in unrecognized tax benefits | 258 | 475 | 465 |
Unrecognized tax benefits at end of the year | $ 1,481 | $ 1,223 | $ 748 |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Taxes (Details 4) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets (Table Amounts) | ||
Retiree benefits | $ 1,738 | $ 1,827 |
Accrued employee compensation | 360 | 336 |
Provisions for accrued liabilities | 232 | 166 |
Inventory | 849 | 684 |
Stock-based compensation | 40 | 38 |
Operating lease liabilities | 435 | 411 |
Tax credits | 343 | 166 |
Other | 112 | 73 |
Gross deferred tax assets | 4,109 | 3,701 |
Less: valuation allowance | (307) | (160) |
Net deferred tax assets | 3,802 | 3,541 |
Deferred Tax Liabilities (Table Amounts) | ||
Goodwill | 533 | 515 |
Purchased intangibles | 201 | 262 |
Property, plant and equipment, net | 737 | 584 |
Operating lease right-of-use assets | 423 | 404 |
Contract accounting differences | 1,513 | 1,225 |
Other | 84 | 43 |
Deferred tax liabilities | 3,491 | 3,033 |
Total net deferred tax assets | $ 311 | $ 508 |
Amounts in Paragraphs - Income
Amounts in Paragraphs - Income Taxes (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 14.50% | 11.80% | 13.70% |
Significant matters affecting comparability | (1.30%) | (3.70%) | (1.10%) |
Increase in Research Tax Credit | $ 30 | $ 12 | |
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Amount | $ 0 | 0 | (84) |
Income taxes paid, net | 312 | 324 | $ 270 |
Tax Credit Carryforward, Amount | 419 | ||
Operating Loss Carryforwards | 364 | ||
Tax Credit Carryforward, Valuation Allowance | 221 | ||
Operating Loss Carryforwards, Valuation Allowance | 31 | ||
Income Taxes Receivable | $ 792 | $ 551 |
Goodwill and Other Purchased _3
Goodwill and Other Purchased Intangible Assets Goodwill Rollforward (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill (Table Amounts) | ||
Beginning balance | $ 18,708 | $ 18,672 |
Acquisition of Orbital ATK | 37 | |
Reclassification to assets of disposal group held for sale | (1,195) | |
Other | 5 | (1) |
Ending balance | 17,518 | 18,708 |
Aeronautics Systems | ||
Goodwill (Table Amounts) | ||
Beginning balance | 3,467 | 3,467 |
Acquisition of Orbital ATK | 0 | |
Reclassification to assets of disposal group held for sale | 0 | |
Other | 0 | 0 |
Ending balance | 3,467 | 3,467 |
Defense Systems | ||
Goodwill (Table Amounts) | ||
Beginning balance | 4,376 | 4,377 |
Acquisition of Orbital ATK | 0 | |
Reclassification to assets of disposal group held for sale | (966) | |
Other | 5 | (1) |
Ending balance | 3,415 | 4,376 |
Mission Systems | ||
Goodwill (Table Amounts) | ||
Beginning balance | 6,062 | 6,062 |
Acquisition of Orbital ATK | 0 | |
Reclassification to assets of disposal group held for sale | (181) | |
Other | 0 | 0 |
Ending balance | 5,881 | 6,062 |
Space Systems | ||
Goodwill (Table Amounts) | ||
Beginning balance | 4,803 | 4,766 |
Acquisition of Orbital ATK | 37 | |
Reclassification to assets of disposal group held for sale | (48) | |
Other | 0 | 0 |
Ending balance | $ 4,755 | $ 4,803 |
Goodwill and Other Purchased _4
Goodwill and Other Purchased Intangible Assets Other Purchased Intangible Assets (Details 2) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross customer-related and other intangible assets | $ 3,362 | $ 3,356 |
Less accumulated amortization | (2,579) | (2,316) |
Net contract, program and other intangible assets | $ 783 | $ 1,040 |
Goodwill and Other Purchased _5
Goodwill and Other Purchased Intangible Assets Future Amortization of Purchased Intangibles (Details 3) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 205 |
2022 | 197 |
2023 | 79 |
2024 | 56 |
2025 | $ 44 |
Goodwill and Other Purchased _6
Goodwill and Other Purchased Intangible Assets Amounts in Paragraphs - Goodwill and Other Purchased Intangible Assets (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Amortization of Intangible Assets | $ 262 | $ 332 | $ 203 |
Aeronautics Systems | |||
Goodwill [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | 417 | 417 | |
Space Systems | |||
Goodwill [Line Items] | |||
Goodwill, Impaired, Accumulated Impairment Loss | $ 153 | $ 153 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 396 | $ 382 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 377 | 364 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 1 | 1 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | (3) |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 378 | 365 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | (3) |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 377 | 364 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 1 | 1 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 18 | $ 17 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments Amounts in Paragraphs - Fair Value of Financial Instruments (Details 2) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $ 133 | $ 98 |
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | $ 0 | $ 7 |
Debt Fixed-rate Notes and Other
Debt Fixed-rate Notes and Other (Details 1) £ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 01, 2020USD ($) | Dec. 01, 2020GBP (£) | Mar. 23, 2020Rate | Dec. 31, 2019USD ($) |
Long-Term Debt (Table Amounts) [Abstract] | |||||
Long-term debt | $ 15,003 | ||||
Other long-term debt | 235 | $ 272 | |||
Debt issuance costs | (75) | (64) | |||
Total long-term debt | 15,003 | 13,879 | |||
Less: current portion | 742 | 1,109 | |||
Long-term Debt and Lease Obligation | $ 14,261 | 12,770 | |||
2020 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.08% | ||||
Long-term debt | $ 0 | 1,000 | |||
2021 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||||
Long-term debt | $ 700 | 700 | |||
2022 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.55% | ||||
Long-term debt | $ 1,500 | 1,500 | |||
2023 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||
Long-term debt | $ 1,050 | 1,050 | |||
2025 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.93% | ||||
Long-term debt | $ 1,500 | 1,500 | |||
2026 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Long-term debt | $ 527 | 527 | |||
2027 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | ||||
Long-term debt | $ 750 | 750 | |||
2028 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||
Long-term debt | $ 2,000 | 2,000 | |||
2031 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||||
Long-term debt | $ 466 | 466 | |||
2040 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 5.15% | ||||
Long-term debt | $ 800 | 300 | |||
2043 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||
Long-term debt | $ 950 | 950 | |||
2045 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||||
Long-term debt | $ 600 | 600 | |||
2047 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.03% | ||||
Long-term debt | $ 2,250 | 2,250 | |||
Two Year Term [Member] [Domain] | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.89% | ||||
Credit facilities | $ 0 | $ 68 | £ 50 | 78 | |
Two Thousand Fifty | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | |||
Long-term debt | $ 1,000 | 0 | |||
Two Thousand Thirty | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | |||
Long-term debt | $ 750 | $ 0 | |||
Minimum | 2026 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||||
Minimum | 2040 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.05% | ||||
Maximum | 2026 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.88% | ||||
Maximum | 2040 | |||||
Long-Term Debt (Table Amounts) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% |
Debt Maturities of Long-term De
Debt Maturities of Long-term Debt (Details 2) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of Long-term Debt [Abstract] | ||
2021 | $ 742 | |
2022 | 1,505 | |
2023 | 1,053 | |
2024 | 3 | |
2025 | 1,503 | |
Thereafter | 10,285 | |
Total principal payments | 15,091 | |
Unamortized premium on long-term debt, net of discount | (13) | |
Debt issuance costs | (75) | $ (64) |
Total long-term debt | $ 15,003 |
Amounts in Paragraphs - Debt (D
Amounts in Paragraphs - Debt (Details 3) £ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020GBP (£) | Dec. 01, 2020USD ($) | Dec. 01, 2020GBP (£) | Mar. 23, 2020USD ($)Rate | |
Debt Instrument [Line Items] | |||||||
Credit Facility, Covenant Terms, Maximum Debt to Capitalization Ratio | The company also cannot permit the ratio of its debt to capitalization (as set forth in the credit agreements) to exceed 65 percent. | ||||||
Line of Credit Facility, Covenant Compliance | the company was in compliance with all covenants under its credit agreements. | ||||||
Long-term Debt, Fair Value | $ 18,200 | $ 15,100 | |||||
Interest paid, net of interest received | 572 | 521 | $ 456 | ||||
Five Year Term [Member] [Domain] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | ||||||
Credit facilities | 0 | ||||||
Two Year Term [Member] [Domain] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facilities | $ 0 | $ 78 | $ 68 | £ 50 | |||
Debt Instruments [Abstract] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.89% | 1.89% | |||||
Two Thousand Thirty | |||||||
Debt Instruments [Abstract] | |||||||
Debt Instrument, Face Amount | $ 750 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | 4.40% | ||||
Two Thousand Forty [Member] | |||||||
Debt Instruments [Abstract] | |||||||
Debt Instrument, Face Amount | $ 500 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 5.15% | ||||||
Two Thousand Fifty | |||||||
Debt Instruments [Abstract] | |||||||
Debt Instrument, Face Amount | $ 1,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | 5.25% | ||||
Revolving Credit Facility [Member] | Two Year Term [Member] [Domain] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 163 | £ 120 | |||||
Commercial Paper [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Commercial Paper, Maximum Borrowing Capacity | 2,000 | ||||||
Short-term Debt | $ 0 |
Investigations, Claims and Li_2
Investigations, Claims and Litigation Investigations, Claims and Litigation (Details 1) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2007 | Dec. 31, 2020 | Feb. 16, 2018 | May 04, 2012 | |
United States Postal Service [Member] | ||||
Loss Contingencies [Line Items] | ||||
CounterclaimForDamagesSought | $ 193 | |||
Unpaid Portions of Contract Price and Direct Costs Incurred [Member] | United States Postal Service [Member] | ||||
Loss Contingencies [Line Items] | ||||
Receivables, unpaid long-term contracts | $ 63 | |||
Acts and Omissions with Adverse Affects on Performance and Obligations [Member] | United States Postal Service [Member] | ||||
Loss Contingencies [Line Items] | ||||
Gain Contingency, Unrecorded Amount | $ 115 | |||
United States Postal Service [Member] | ||||
Loss Contingencies [Line Items] | ||||
Contract award | $ 875 | |||
Maximum [Member] | United States Postal Service [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Estimate of Possible Loss | $ 410 |
Commitments and Contingencies_2
Commitments and Contingencies (Details 1) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Amounts accrued for probable environmental remediation costs | $ 614 | $ 531 |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 346 | 448 |
Recorded Third-Party Environmental Recoveries, Amount | 529 | $ 436 |
Financial Arrangements (Amounts in Paragraph) | ||
Unused standby letters of credit and bank guarantees | 456 | |
Surety Bond Outstanding | 94 | |
Other Current Liabilities [Member] | ||
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Amounts accrued for probable environmental remediation costs | 237 | |
Other Noncurrent Liabilities [Member] | ||
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Amounts accrued for probable environmental remediation costs | 377 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Recorded Third-Party Environmental Recoveries, Amount | 210 | |
Other Noncurrent Assets [Member] | ||
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Recorded Third-Party Environmental Recoveries, Amount | $ 319 |
Retirement Benefits Net Periodi
Retirement Benefits Net Periodic Benefit Cost (Benefit) (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of Net Periodic Benefit Cost (Table Amounts) [Abstract] | |||
Mark-to-market expense (benefit) | $ (1,034) | $ (1,800) | $ (655) |
Pension Benefits | |||
Components of Net Periodic Benefit Cost (Table Amounts) [Abstract] | |||
Service cost | 409 | 367 | 404 |
Interest cost | 1,226 | 1,360 | 1,226 |
Expected return on plan assets | (2,376) | (2,101) | (2,217) |
Amortization of prior service cost (credit) | (59) | (59) | (58) |
Mark-to-market expense (benefit) | (1,034) | (1,783) | (699) |
Other | 10 | 0 | 0 |
Net periodic benefit cost (benefit) | 244 | 1,350 | 54 |
Medical and Life Benefits | |||
Components of Net Periodic Benefit Cost (Table Amounts) [Abstract] | |||
Service cost | 17 | 16 | 21 |
Interest cost | 67 | 80 | 76 |
Expected return on plan assets | (102) | (92) | (101) |
Amortization of prior service cost (credit) | 4 | (3) | (21) |
Mark-to-market expense (benefit) | 0 | (17) | 44 |
Other | 2 | 0 | 0 |
Net periodic benefit cost (benefit) | $ (12) | $ 18 | $ (69) |
Retirement Benefits Unamortized
Retirement Benefits Unamortized Prior Service Credit Rollforward (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization of: | |||
Prior service credit | $ 55 | $ 62 | $ 79 |
Tax expense (benefit) related to above items | (14) | (15) | (19) |
Change in unamortized benefit plan costs | 41 | 47 | 60 |
Pension Benefits | |||
Amortization of: | |||
Prior service credit | 59 | 59 | 58 |
Tax expense (benefit) related to above items | (15) | (14) | (14) |
Change in unamortized benefit plan costs | 44 | 45 | 44 |
Medical and Life Benefits | |||
Amortization of: | |||
Prior service credit | (4) | 3 | 21 |
Tax expense (benefit) related to above items | 1 | (1) | (5) |
Change in unamortized benefit plan costs | $ (3) | $ 2 | $ 16 |
Retirement Benefits Funded Stat
Retirement Benefits Funded Status of Plan Assets (Liabilities) (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 32,038 | ||
Fair value of plan assets at end of year | 35,967 | $ 32,038 | |
Amounts Recognized on the Balance Sheet | |||
Non-current liability | (6,498) | (6,979) | |
Pension Benefits | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 30,646 | 27,150 | |
Net gain on plan assets | 4,802 | 5,025 | |
Employer contributions | 851 | 221 | |
Participant contributions | 8 | 8 | |
Benefits paid | (1,865) | (1,763) | |
Acquired plan assets | 0 | 0 | |
Other | 10 | 5 | |
Fair value of plan assets at end of year | 34,452 | 30,646 | $ 27,150 |
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 36,914 | 32,231 | |
Service cost | 409 | 367 | 404 |
Interest cost | 1,226 | 1,360 | 1,226 |
Participant contributions | 8 | 8 | |
Actuarial loss | 3,455 | 4,708 | |
Benefits paid | (1,865) | (1,763) | |
Acquired benefit obligation | 0 | 0 | |
Other | 35 | 3 | |
Projected benefit obligation at end of year | 40,182 | 36,914 | 32,231 |
Funded status | (5,730) | (6,268) | |
Amounts Recognized on the Balance Sheet | |||
Non-current assets | 211 | 124 | |
Current liability | (180) | (173) | |
Non-current liability | (5,761) | (6,219) | |
Medical and Life Benefits | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 1,392 | 1,247 | |
Net gain on plan assets | 218 | 234 | |
Employer contributions | 36 | 42 | |
Participant contributions | 24 | 24 | |
Benefits paid | (155) | (156) | |
Acquired plan assets | 0 | 0 | |
Other | 0 | 1 | |
Fair value of plan assets at end of year | 1,515 | 1,392 | 1,247 |
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 2,048 | 1,930 | |
Service cost | 17 | 16 | 21 |
Interest cost | 67 | 80 | 76 |
Participant contributions | 24 | 24 | |
Actuarial loss | 115 | 159 | |
Benefits paid | (155) | (156) | |
Acquired benefit obligation | 0 | 0 | |
Other | 3 | (5) | |
Projected benefit obligation at end of year | 2,119 | 2,048 | $ 1,930 |
Funded status | (604) | (656) | |
Amounts Recognized on the Balance Sheet | |||
Non-current assets | 179 | 151 | |
Current liability | (46) | (47) | |
Non-current liability | $ (737) | $ (760) |
Retirement Benefits Accumulated
Retirement Benefits Accumulated Benefit Obligations in Excess of Fair Value (Details 4) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension plans with accumulated benefit obligations in excess of fair value of plan assets (Table Amounts) [Abstract] | ||
Projected benefit obligation | $ 37,681 | $ 34,715 |
Accumulated benefit obligation | 37,135 | 34,305 |
Fair value of plan assets | $ 31,741 | $ 28,324 |
Retirement Benefits Plan Assump
Retirement Benefits Plan Assumptions (Details 5) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Benefit Obligation [Member] | ||
Defined Benefit Plan Disclosure (Table Amounts) | ||
Initial health care cost trend rate assumed for the next year | 5.60% | 5.90% |
Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the health care cost trend rate reaches the ultimate trend rate | 2023 | 2023 |
Pension Benefits | ||
Assumptions Used to Determine Benefit Obligation | ||
Discount rate | 2.68% | 3.39% |
Initial cash balance crediting rate assumed for the next year | 2.25% | 2.39% |
Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate) | 2.25% | 2.64% |
Year that the cash balance crediting rate reaches the ultimate rate | 2026 | 2025 |
Rate of compensation increase | 3.00% | 3.00% |
Assumptions Used to Determine Benefit Cost | ||
Discount rate | 3.39% | 4.31% |
Initial cash balance crediting rate assumed for the next year | 2.39% | 3.00% |
Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate) | 2.64% | 3.25% |
Year that the cash balance crediting rate reaches the ultimate rate | 2025 | 2024 |
Expected long-term return on plan assets | 8.00% | 8.00% |
Rate of compensation increase | 3.00% | 3.00% |
Post-retirement Benefit Cost [Member] | ||
Defined Benefit Plan Disclosure (Table Amounts) | ||
Initial health care cost trend rate assumed for the next year | 5.90% | 6.20% |
Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the health care cost trend rate reaches the ultimate trend rate | 2023 | 2023 |
Medical and Life Benefits | ||
Assumptions Used to Determine Benefit Obligation | ||
Discount rate | 2.58% | 3.35% |
Assumptions Used to Determine Benefit Cost | ||
Discount rate | 3.35% | 4.30% |
Expected long-term return on plan assets | 7.66% | 7.67% |
Retirement Benefits Plan Asset
Retirement Benefits Plan Asset Allocation (Details 6) | Dec. 31, 2020 |
Cash and Cash Equivalents [Member] | Minimum | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% |
Cash and Cash Equivalents [Member] | Maximum [Member] | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 12.00% |
Equity Securities [Member] | Minimum | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 30.00% |
Equity Securities [Member] | Maximum [Member] | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% |
Fixed income securities | Minimum | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% |
Fixed income securities | Maximum [Member] | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% |
Alternative investments | Minimum | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 18.00% |
Alternative investments | Maximum [Member] | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 38.00% |
Retirement Benefits Categorizat
Retirement Benefits Categorization of Plan Assets (Details 7) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | $ 35,967 | $ 32,038 |
Cash & cash equivalents | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,358 | 2,805 |
U.S. Equity Securities [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2,981 | 3,341 |
International equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 3,356 | 3,273 |
U.S. Treasuries | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2,295 | 2,736 |
U.S. Government Agency | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 258 | 297 |
Non-U.S. Government | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 332 | 194 |
Corporate debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 6,259 | 4,541 |
Asset backed | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,080 | 892 |
High yield debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 72 | 134 |
Bank loans | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 59 | 33 |
Other | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 59 | 52 |
Notes Payable, Other Payables [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | (232) | 0 |
Level 1 | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 6,530 | 6,914 |
Level 1 | Cash & cash equivalents | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 120 | 233 |
Level 1 | U.S. Equity Securities [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2,981 | 3,341 |
Level 1 | International equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 3,354 | 3,271 |
Level 1 | U.S. Treasuries | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 22 | 20 |
Level 1 | Corporate debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 31 | 28 |
Level 1 | High yield debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 24 | 30 |
Level 1 | Other | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | (2) | (9) |
Level 2 | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 11,575 | 11,380 |
Level 2 | Cash & cash equivalents | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,238 | 2,572 |
Level 2 | U.S. Treasuries | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2,273 | 2,716 |
Level 2 | U.S. Government Agency | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 258 | 297 |
Level 2 | Non-U.S. Government | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 332 | 194 |
Level 2 | Corporate debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 6,228 | 4,513 |
Level 2 | Asset backed | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,080 | 892 |
Level 2 | High yield debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 48 | 104 |
Level 2 | Bank loans | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 59 | 33 |
Level 2 | Other | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 59 | 59 |
Level 3 | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 4 | 4 |
Level 3 | International equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2 | 2 |
Level 3 | Other | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2 | 2 |
Fair Value Measured at Net Asset Value Per Share | U.S. Equity Securities [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,567 | 1,131 |
Fair Value Measured at Net Asset Value Per Share | International equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 7,193 | 5,636 |
Fair Value Measured at Net Asset Value Per Share | Fixed Income Funds | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,959 | 438 |
Fair Value Measured at Net Asset Value Per Share | Hedge Funds | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 65 | 246 |
Fair Value Measured at Net Asset Value Per Share | OpportunisticFunds | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2,499 | 1,459 |
Fair Value Measured at Net Asset Value Per Share | Private Equity Funds [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2,627 | 2,454 |
Fair Value Measured at Net Asset Value Per Share | Real Estate Funds [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2,180 | 2,376 |
Pension and Other Post-retirement benefit plans [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Derivative Asset | 29 | 49 |
Derivative Liability | (27) | (53) |
Derivative, Notional Amount | $ 2,300 | $ 3,600 |
Retirement Benefits Estimated F
Retirement Benefits Estimated Future Benefit Payments (Details 8) $ in Millions | Dec. 31, 2020USD ($) |
Estimated Benefit Payments (Table Amounts) [Abstract] | |
2021 | $ 2,036 |
2022 | 2,083 |
2023 | 2,108 |
2024 | 2,150 |
2025 | 2,187 |
2026 through 2030 | 11,155 |
Pension Benefits | |
Estimated Benefit Payments (Table Amounts) [Abstract] | |
2021 | 1,884 |
2022 | 1,930 |
2023 | 1,973 |
2024 | 2,017 |
2025 | 2,057 |
2026 through 2030 | 10,599 |
Medical and Life Benefits | |
Estimated Benefit Payments (Table Amounts) [Abstract] | |
2021 | 152 |
2022 | 153 |
2023 | 135 |
2024 | 133 |
2025 | 130 |
2026 through 2030 | $ 556 |
Retirement Benefits Amounts in
Retirement Benefits Amounts in Paragraphs - Retirement Benefits (Details 9) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plans Disclosure (Amounts in paragraphs) | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 590 | $ 481 | $ 403 | |
Pension and post-retirement benefits disclosures (Amounts in paragraphs) | ||||
Accumulated benefit obligation for all defined benefit pension plans | $ 39,600 | $ 36,500 | ||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Actual Percent Return On Plan Assets | 16.20% | 19.10% | ||
Yearly Discount Rate change in basis points | (71) | (92) | ||
Pension Benefits | ||||
Defined Contribution Plans Disclosure (Amounts in paragraphs) | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 98 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 851 | $ 221 | ||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 8.00% | 8.00% | ||
Pension Benefits | Subsequent Event [Member] | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.50% | |||
Pension Benefits | Voluntary Contributions [Member] | ||||
Defined Contribution Plans Disclosure (Amounts in paragraphs) | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 750 | |||
OPB contributions | ||||
Defined Contribution Plans Disclosure (Amounts in paragraphs) | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 43 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 36 | $ 42 | ||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.66% | 7.67% | ||
OPB contributions | Subsequent Event [Member] | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.22% | |||
U.S. Equity Securities [Member] | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 0 | $ 0 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Frequency | daily, monthly or quarterly | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | 90 days | |||
International Equity Securities [Member] | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 0 | 0 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Frequency | daily, monthly or quarterly | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | 90 days | |||
Fixed Income Funds | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 2 | 0 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Frequency | daily, monthly or quarterly | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | 30 days | |||
Hedge Funds [Member] | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 9 | 8 | ||
OpportunisticFunds | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 1,900 | 1,300 | ||
Private Equity Funds [Member] | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 2,300 | 1,900 | ||
Average investment term, alternative investments | 10 years | |||
Real Estate Funds | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 60 | $ 60 | ||
Average investment term, alternative investments | 10 years | |||
Minimum | Hedge Funds [Member] | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | 5 years | |||
Minimum | OpportunisticFunds | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Average investment term, alternative investments | 5 years | |||
Maximum | Hedge Funds [Member] | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Notice Period | 10 years | |||
Maximum | OpportunisticFunds | ||||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | ||||
Average investment term, alternative investments | 10 years |
Stock Compensation Plans Compen
Stock Compensation Plans Compensation Expense (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 90 | $ 127 | $ 86 |
Tax benefits from stock-based compensation expense | 14 | $ 14 | $ 27 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 97 | ||
Weighted-average period for unrecognized compensation expense to be charged to expense | 1 year 3 months 18 days |
Stock Compensation Plans Stock
Stock Compensation Plans Stock Awards (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation by Share-based Payment Award | ||||
Stock plans, vesting period | 3 years | |||
Stock awards, outstanding, weighted average remaining contractual terms | 1 year 4 months 24 days | 10 months 24 days | 9 months 18 days | 1 year |
Stock issued, settlement of fully vested stock awards, fair value grant date | $ 118 | $ 119 | $ 93 | |
Stock Award Activity (Table) | ||||
Stock awards - outstanding at period start | 701 | 796 | 938 | |
Stock awards - granted | 262 | 339 | 376 | |
Stock awards - vested | (296) | (383) | (455) | |
Stock awards - forfeited | (64) | (51) | (63) | |
Stock awards - outstanding at period end | 603 | 701 | 796 | 938 |
Stock Awards, Weighted Average Grant Date Fair Value [Table] | ||||
Weighted-average grant date fair value - outstanding at period start | $ 278 | $ 244 | $ 192 | |
Weighted-average grant date fair value - granted | 350 | 274 | 321 | |
Weighted-average grant date fair value - vested | 305 | 222 | 181 | |
Weighted-average grant date fair value - forfeited | 303 | 280 | 250 | |
Weighted-average grant date fair value - outstanding at period end | $ 311 | $ 278 | $ 244 | $ 192 |
Amended 2011 Plan [Domain] | ||||
Share-based Compensation by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,100 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,400 | |||
2011 Long-Term Incentive Stock Plan [Member] | ||||
Share-based Compensation by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,200 |
Stock Compensation Plans Cash A
Stock Compensation Plans Cash Awards (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation by Share-based Payment Award | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 97 | ||
Minimum | Grants During 2010 and After [Member] | |||
Share-based Compensation by Share-based Payment Award | |||
Share Based Compensation Arrangement By Share Based Payment Award Award Grants Percentage Financial Metric Met Exceeded | 0.00% | ||
Maximum [Member] | Grants During 2010 and After [Member] | |||
Share-based Compensation by Share-based Payment Award | |||
Share Based Compensation Arrangement By Share Based Payment Award Award Grants Percentage Financial Metric Met Exceeded | 200.00% | ||
Cash Units and Cash Performance Units [Member] | |||
Share-based Compensation by Share-based Payment Award | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 121 | ||
Cash Units and Cash Performance Units [Member] | Minimum | |||
Share-based Compensation by Share-based Payment Award | |||
Deferred Compensation Cash-based Arrangements, Liability, Current | 31 | $ 36 | $ 36 |
Cash Units and Cash Performance Units [Member] | Maximum [Member] | |||
Share-based Compensation by Share-based Payment Award | |||
Deferred Compensation Cash-based Arrangements, Liability, Current | $ 175 | $ 203 | $ 205 |
Leases Total Lease Cost (Detail
Leases Total Lease Cost (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease cost | $ 320 | $ 318 | |
Variable lease cost | 28 | 11 | |
Short-term lease cost | 93 | 75 | |
Total lease cost | $ 441 | $ 404 | |
Operating Leases, Rent Expense Under ASC 840 | $ 375 |
Leases Lease Balance Sheet (Det
Leases Lease Balance Sheet (Details 2) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 1,533 | $ 1,511 |
Operating Lease, Liability, Current | 263 | 261 |
Operating Lease, Liability, Noncurrent | 1,343 | 1,308 |
Total operating lease liabilities | $ 1,606 | $ 1,569 |
Leases Lease Other Supplemental
Leases Lease Other Supplemental Information (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Other Supplemental Information (Details 3) [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 275 | $ 307 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 345 | $ 462 |
Operating Lease, Weighted Average Remaining Lease Term | 12 years 1 month 6 days | 11 years 7 months 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.50% | 3.80% |
Leases Lease Maturities (Detail
Leases Lease Maturities (Details 4) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Lease Not yet Commenced, Value | $ 361 | |
Lessee, Operating Lease, Liability, Payments, Due Next Year | 298 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 267 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 228 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 185 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 142 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 902 | |
Lessee, Operating Lease, Liability, Payments, Due | 2,022 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 416 | |
Operating Lease, Liability | $ 1,606 | $ 1,569 |
Minimum | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 4 years | |
Maximum [Member] | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 15 years |
Segment Information Reconciliat
Segment Information Reconciliation to Consolidated Operating Income (Details 1) $ in Millions | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Number of reportable segments | 4 | |||||||||||
Sales | $ 10,212 | $ 9,083 | $ 8,884 | $ 8,620 | $ 8,721 | $ 8,475 | $ 8,456 | $ 8,189 | $ 36,799 | $ 33,841 | $ 30,095 | |
Operating income | $ 1,152 | $ 985 | $ 994 | $ 934 | $ 1,136 | $ 951 | $ 946 | $ 936 | 4,065 | 3,969 | 3,780 | |
Operating Segments | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Operating income | 4,188 | 3,978 | 3,514 | |||||||||
Operating Segments | Aeronautics Systems | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | 12,169 | 11,116 | 10,293 | |||||||||
Operating income | 1,206 | 1,188 | 1,128 | |||||||||
Operating Segments | Defense Systems | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | 7,543 | 7,495 | 6,612 | |||||||||
Operating income | 846 | 793 | 697 | |||||||||
Operating Segments | Mission Systems | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | 10,080 | 9,410 | 8,949 | |||||||||
Operating income | 1,459 | 1,408 | 1,245 | |||||||||
Operating Segments | Space Systems | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | $ 3,100 | 8,744 | 7,425 | 5,845 | ||||||||
Operating income | $ 342 | 893 | 794 | 644 | ||||||||
Intersegment sales | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | 1,737 | 1,605 | 1,604 | |||||||||
Operating income | 216 | 205 | 200 | |||||||||
Intersegment sales | Aeronautics Systems | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | 122 | 103 | 73 | |||||||||
Operating income | 11 | 10 | 8 | |||||||||
Intersegment sales | Defense Systems | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | 728 | 691 | 750 | |||||||||
Operating income | 76 | 74 | 74 | |||||||||
Intersegment sales | Mission Systems | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | 779 | 728 | 718 | |||||||||
Operating income | 116 | 113 | 115 | |||||||||
Intersegment sales | Space Systems | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Sales | 108 | 83 | 63 | |||||||||
Operating income | 13 | 8 | 3 | |||||||||
Corporate, Non-Segment [Member] | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Operating income | (541) | (474) | (347) | |||||||||
Segment Reconciling Items [Member] | ||||||||||||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | ||||||||||||
Net FAS (service)/ CAS pension adjustment | $ 418 | $ 465 | $ 613 |
Segment Information Sales by Cu
Segment Information Sales by Customer Type (Details 2) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 10,212 | $ 9,083 | $ 8,884 | $ 8,620 | $ 8,721 | $ 8,475 | $ 8,456 | $ 8,189 | $ 36,799 | $ 33,841 | $ 30,095 | |
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
US Government | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 30,903 | $ 27,934 | $ 24,796 | |||||||||
Concentration Risk, Percentage | 84.00% | 83.00% | 82.00% | |||||||||
US Government | Aeronautics Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 10,411 | $ 9,258 | $ 8,732 | |||||||||
Concentration Risk, Percentage | 86.00% | 83.00% | 85.00% | |||||||||
US Government | Defense Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 5,103 | $ 4,952 | $ 4,132 | |||||||||
Concentration Risk, Percentage | 68.00% | 66.00% | 62.00% | |||||||||
US Government | Mission Systems [Member] | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 7,279 | $ 6,765 | $ 6,501 | |||||||||
Concentration Risk, Percentage | 72.00% | 72.00% | 73.00% | |||||||||
US Government | Space Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 8,110 | $ 6,959 | $ 5,431 | |||||||||
Concentration Risk, Percentage | 93.00% | 94.00% | 93.00% | |||||||||
International | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 5,188 | $ 5,154 | $ 4,434 | |||||||||
Concentration Risk, Percentage | 14.00% | 15.00% | 15.00% | |||||||||
International | Aeronautics Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 1,595 | $ 1,688 | $ 1,402 | |||||||||
Concentration Risk, Percentage | 13.00% | 15.00% | 13.00% | |||||||||
International | Defense Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 1,317 | $ 1,442 | $ 1,249 | |||||||||
Concentration Risk, Percentage | 17.00% | 19.00% | 19.00% | |||||||||
International | Mission Systems [Member] | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 1,945 | $ 1,839 | $ 1,653 | |||||||||
Concentration Risk, Percentage | 19.00% | 19.00% | 18.00% | |||||||||
International | Space Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 331 | $ 185 | $ 130 | |||||||||
Concentration Risk, Percentage | 4.00% | 2.00% | 2.00% | |||||||||
Other Customers | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 708 | $ 753 | $ 865 | |||||||||
Concentration Risk, Percentage | 2.00% | 2.00% | 3.00% | |||||||||
Other Customers | Aeronautics Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 41 | $ 67 | $ 86 | |||||||||
Concentration Risk, Percentage | 0.00% | 1.00% | 1.00% | |||||||||
Other Customers | Defense Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 395 | $ 410 | $ 481 | |||||||||
Concentration Risk, Percentage | 5.00% | 6.00% | 7.00% | |||||||||
Other Customers | Mission Systems [Member] | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 77 | $ 78 | $ 77 | |||||||||
Concentration Risk, Percentage | 1.00% | 1.00% | 1.00% | |||||||||
Other Customers | Space Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 195 | $ 198 | $ 221 | |||||||||
Concentration Risk, Percentage | 2.00% | 3.00% | 4.00% | |||||||||
Intersegment Sales [Member] | Aeronautics Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 122 | $ 103 | $ 73 | |||||||||
Concentration Risk, Percentage | 1.00% | 1.00% | 1.00% | |||||||||
Intersegment Sales [Member] | Defense Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 728 | $ 691 | $ 750 | |||||||||
Concentration Risk, Percentage | 10.00% | 9.00% | 12.00% | |||||||||
Intersegment Sales [Member] | Mission Systems [Member] | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 779 | $ 728 | $ 718 | |||||||||
Concentration Risk, Percentage | 8.00% | 8.00% | 8.00% | |||||||||
Intersegment Sales [Member] | Space Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 108 | $ 83 | $ 63 | |||||||||
Concentration Risk, Percentage | 1.00% | 1.00% | 1.00% | |||||||||
Operating Segments [Member] | Aeronautics Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 12,169 | $ 11,116 | $ 10,293 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Operating Segments [Member] | Defense Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 7,543 | $ 7,495 | $ 6,612 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Operating Segments [Member] | Mission Systems [Member] | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 10,080 | $ 9,410 | $ 8,949 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Operating Segments [Member] | Space Systems | ||||||||||||
Revenue, Major Customer [Line Items] | ||||||||||||
Sales | $ 3,100 | $ 8,744 | $ 7,425 | $ 5,845 | ||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% |
Segment Information Sales by Co
Segment Information Sales by Contract Type (Details 3) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 10,212 | $ 9,083 | $ 8,884 | $ 8,620 | $ 8,721 | $ 8,475 | $ 8,456 | $ 8,189 | $ 36,799 | $ 33,841 | $ 30,095 | |
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Operating Segments [Member] | Aeronautics Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 12,169 | $ 11,116 | $ 10,293 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Operating Segments [Member] | Defense Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 7,543 | $ 7,495 | $ 6,612 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Operating Segments [Member] | Mission Systems [Member] | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 10,080 | $ 9,410 | $ 8,949 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Operating Segments [Member] | Space Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 3,100 | $ 8,744 | $ 7,425 | $ 5,845 | ||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Cost-type | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 18,438 | $ 16,479 | $ 15,004 | |||||||||
Concentration Risk, Percentage | 50.00% | 49.00% | 50.00% | |||||||||
Cost-type | Aeronautics Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 6,142 | $ 5,299 | $ 5,066 | |||||||||
Concentration Risk, Percentage | 51.00% | 48.00% | 50.00% | |||||||||
Cost-type | Defense Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 2,345 | $ 2,509 | $ 2,386 | |||||||||
Concentration Risk, Percentage | 34.00% | 37.00% | 41.00% | |||||||||
Cost-type | Mission Systems [Member] | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 3,582 | $ 3,335 | $ 3,099 | |||||||||
Concentration Risk, Percentage | 39.00% | 38.00% | 38.00% | |||||||||
Cost-type | Space Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 6,369 | $ 5,336 | $ 4,453 | |||||||||
Concentration Risk, Percentage | 74.00% | 73.00% | 77.00% | |||||||||
Fixed-price | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 18,361 | $ 17,362 | $ 15,091 | |||||||||
Concentration Risk, Percentage | 50.00% | 51.00% | 50.00% | |||||||||
Fixed-price | Aeronautics Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 5,905 | $ 5,714 | $ 5,154 | |||||||||
Concentration Risk, Percentage | 49.00% | 52.00% | 50.00% | |||||||||
Fixed-price | Defense Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 4,470 | $ 4,295 | $ 3,476 | |||||||||
Concentration Risk, Percentage | 66.00% | 63.00% | 59.00% | |||||||||
Fixed-price | Mission Systems [Member] | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 5,719 | $ 5,347 | $ 5,132 | |||||||||
Concentration Risk, Percentage | 61.00% | 62.00% | 62.00% | |||||||||
Fixed-price | Space Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 2,267 | $ 2,006 | $ 1,329 | |||||||||
Concentration Risk, Percentage | 26.00% | 27.00% | 23.00% | |||||||||
Intersegment Sales [Member] | Aeronautics Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 122 | $ 103 | $ 73 | |||||||||
Intersegment Sales [Member] | Defense Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | 728 | 691 | 750 | |||||||||
Intersegment Sales [Member] | Mission Systems [Member] | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | 779 | 728 | 718 | |||||||||
Intersegment Sales [Member] | Space Systems | ||||||||||||
Revenue, Contract Type [Line Items] | ||||||||||||
Sales | $ 108 | $ 83 | $ 63 |
Segment Information Sales by Ge
Segment Information Sales by Geographic Location (Details 4) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 10,212 | $ 9,083 | $ 8,884 | $ 8,620 | $ 8,721 | $ 8,475 | $ 8,456 | $ 8,189 | $ 36,799 | $ 33,841 | $ 30,095 | |
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
United States | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 31,611 | $ 28,687 | $ 25,661 | |||||||||
Concentration Risk, Percentage | 86.00% | 85.00% | 85.00% | |||||||||
Asia/Pacific | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 1,968 | $ 1,836 | $ 1,666 | |||||||||
Concentration Risk, Percentage | 5.00% | 6.00% | 6.00% | |||||||||
All Other | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 1,138 | $ 1,485 | $ 1,254 | |||||||||
Concentration Risk, Percentage | 3.00% | 4.00% | 4.00% | |||||||||
Europe | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 2,082 | $ 1,833 | $ 1,514 | |||||||||
Concentration Risk, Percentage | 6.00% | 5.00% | 5.00% | |||||||||
Aeronautics Systems | United States | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 10,452 | $ 9,325 | $ 8,818 | |||||||||
Concentration Risk, Percentage | 87.00% | 85.00% | 86.00% | |||||||||
Aeronautics Systems | Asia/Pacific | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 841 | $ 810 | $ 677 | |||||||||
Concentration Risk, Percentage | 7.00% | 7.00% | 7.00% | |||||||||
Aeronautics Systems | All Other | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 180 | $ 291 | $ 189 | |||||||||
Concentration Risk, Percentage | 1.00% | 3.00% | 2.00% | |||||||||
Aeronautics Systems | Intersegment Sales [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 122 | $ 103 | $ 73 | |||||||||
Aeronautics Systems | Europe | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 574 | $ 587 | $ 536 | |||||||||
Concentration Risk, Percentage | 5.00% | 5.00% | 5.00% | |||||||||
Aeronautics Systems | Operating Segments [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 12,169 | $ 11,116 | $ 10,293 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Defense Systems | United States | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 5,498 | $ 5,362 | $ 4,613 | |||||||||
Concentration Risk, Percentage | 81.00% | 79.00% | 79.00% | |||||||||
Defense Systems | Asia/Pacific | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 402 | $ 369 | $ 365 | |||||||||
Concentration Risk, Percentage | 6.00% | 5.00% | 6.00% | |||||||||
Defense Systems | All Other | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 600 | $ 824 | $ 680 | |||||||||
Concentration Risk, Percentage | 9.00% | 12.00% | 12.00% | |||||||||
Defense Systems | Intersegment Sales [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 728 | $ 691 | $ 750 | |||||||||
Defense Systems | Europe | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 315 | $ 249 | $ 204 | |||||||||
Concentration Risk, Percentage | 4.00% | 4.00% | 3.00% | |||||||||
Defense Systems | Operating Segments [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 7,543 | $ 7,495 | $ 6,612 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Mission Systems [Member] | United States | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 7,356 | $ 6,843 | $ 6,578 | |||||||||
Concentration Risk, Percentage | 79.00% | 79.00% | 80.00% | |||||||||
Mission Systems [Member] | Asia/Pacific | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 707 | $ 637 | $ 592 | |||||||||
Concentration Risk, Percentage | 8.00% | 7.00% | 7.00% | |||||||||
Mission Systems [Member] | All Other | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 345 | $ 352 | $ 379 | |||||||||
Concentration Risk, Percentage | 4.00% | 4.00% | 5.00% | |||||||||
Mission Systems [Member] | Intersegment Sales [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 779 | $ 728 | $ 718 | |||||||||
Mission Systems [Member] | Europe | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 893 | $ 850 | $ 682 | |||||||||
Concentration Risk, Percentage | 9.00% | 10.00% | 8.00% | |||||||||
Mission Systems [Member] | Operating Segments [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 10,080 | $ 9,410 | $ 8,949 | |||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Space Systems | United States | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 8,305 | $ 7,157 | $ 5,652 | |||||||||
Concentration Risk, Percentage | 96.00% | 98.00% | 98.00% | |||||||||
Space Systems | Asia/Pacific | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 18 | $ 20 | $ 32 | |||||||||
Concentration Risk, Percentage | 0.00% | 0.00% | 0.00% | |||||||||
Space Systems | All Other | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 13 | $ 18 | $ 6 | |||||||||
Concentration Risk, Percentage | 0.00% | 0.00% | 0.00% | |||||||||
Space Systems | Intersegment Sales [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 108 | $ 83 | $ 63 | |||||||||
Space Systems | Europe | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 300 | $ 147 | $ 92 | |||||||||
Concentration Risk, Percentage | 4.00% | 2.00% | 2.00% | |||||||||
Space Systems | Operating Segments [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Sales | $ 3,100 | $ 8,744 | $ 7,425 | $ 5,845 | ||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% |
Segment Information Intersegmen
Segment Information Intersegment Sales and Operating Income (Details 5) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 10,212 | $ 9,083 | $ 8,884 | $ 8,620 | $ 8,721 | $ 8,475 | $ 8,456 | $ 8,189 | $ 36,799 | $ 33,841 | $ 30,095 |
Intersegment sales and operating income (Table Amounts) [Abstract] | |||||||||||
Operating income | $ 1,152 | $ 985 | $ 994 | $ 934 | $ 1,136 | $ 951 | $ 946 | $ 936 | 4,065 | 3,969 | 3,780 |
Intersegment sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,737 | 1,605 | 1,604 | ||||||||
Intersegment sales and operating income (Table Amounts) [Abstract] | |||||||||||
Operating income | 216 | 205 | 200 | ||||||||
Intersegment sales | Aeronautics Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 122 | 103 | 73 | ||||||||
Intersegment sales and operating income (Table Amounts) [Abstract] | |||||||||||
Operating income | 11 | 10 | 8 | ||||||||
Intersegment sales | Defense Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 728 | 691 | 750 | ||||||||
Intersegment sales and operating income (Table Amounts) [Abstract] | |||||||||||
Operating income | 76 | 74 | 74 | ||||||||
Intersegment sales | Mission Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 779 | 728 | 718 | ||||||||
Intersegment sales and operating income (Table Amounts) [Abstract] | |||||||||||
Operating income | 116 | 113 | 115 | ||||||||
Intersegment sales | Space Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 108 | 83 | 63 | ||||||||
Intersegment sales and operating income (Table Amounts) [Abstract] | |||||||||||
Operating income | $ 13 | $ 8 | $ 3 |
Segment Information Assets (Det
Segment Information Assets (Details 6) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 44,469 | $ 41,089 |
Operating Segments [Member] | Aeronautics Systems | ||
Segment Reporting Information [Line Items] | ||
Total assets | 8,997 | 9,104 |
Operating Segments [Member] | Defense Systems | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,352 | 7,420 |
Operating Segments [Member] | Mission Systems | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,029 | 9,934 |
Operating Segments [Member] | Space Systems | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,028 | 10,595 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 8,063 | $ 4,036 |
Segment Information Capital Exp
Segment Information Capital Expenditures and Depreciation and Amortization (Details 7) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | $ 1,420 | $ 1,264 | $ 1,249 |
Depreciation and amortization | 1,267 | 1,265 | 800 |
Other Depreciation and Amortization | 1,005 | 1,018 | 800 |
Aeronautics Systems | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 540 | 528 | 657 |
Depreciation and amortization | 238 | 224 | 190 |
Defense Systems | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 78 | 71 | 66 |
Depreciation and amortization | 48 | 44 | 65 |
Mission Systems | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 302 | 229 | 197 |
Depreciation and amortization | 150 | 133 | 121 |
Space Systems | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 440 | 352 | 226 |
Depreciation and amortization | 211 | 189 | 130 |
Corporate | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 60 | 84 | 103 |
Depreciation and amortization | $ 358 | $ 428 | $ 294 |
Unaudited Selected Quarterly _3
Unaudited Selected Quarterly Data (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unaudited Selected Quarterly Data (Table Amounts) [Abstract] | |||||||||||
Sales | $ 10,212 | $ 9,083 | $ 8,884 | $ 8,620 | $ 8,721 | $ 8,475 | $ 8,456 | $ 8,189 | $ 36,799 | $ 33,841 | $ 30,095 |
Operating income | 1,152 | 985 | 994 | 934 | 1,136 | 951 | 946 | 936 | 4,065 | 3,969 | 3,780 |
Net earnings | $ 330 | $ 986 | $ 1,005 | $ 868 | $ (409) | $ 933 | $ 861 | $ 863 | $ 3,189 | $ 2,248 | $ 3,229 |
Basic earnings per share | $ 1.98 | $ 5.91 | $ 6.02 | $ 5.18 | $ (2.43) | $ 5.52 | $ 5.07 | $ 5.08 | $ 19.08 | $ 13.28 | $ 18.59 |
Diluted earnings per share | $ 1.97 | $ 5.89 | $ 6.01 | $ 5.15 | $ (2.43) | $ 5.49 | $ 5.06 | $ 5.06 | $ 19.03 | $ 13.22 | $ 18.49 |
Weighted-average common shares outstanding | 166.8 | 166.8 | 166.9 | 167.7 | 168.4 | 169.1 | 169.7 | 170 | 167.1 | 169.3 | 173.7 |
Weighted-average diluted shares outstanding | 167.4 | 167.3 | 167.3 | 168.4 | 168.4 | 169.9 | 170.3 | 170.7 | 167.6 | 170 | 174.6 |