Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 22, 2024 | Jun. 30, 2023 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
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 | $ 68.9 | ||
Entity Common Stock, Shares Outstanding | 150,035,705 | ||
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 2024 Annual Meeting of Shareholders are incorporated by reference in Part III of this Form 10-K. | ||
Document Financial Statement Error Correction [Flag] | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Firm ID | 34 |
Auditor Location | McLean, Virginia |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 39,290 | $ 36,602 | $ 35,667 |
Operating income | 2,537 | 3,601 | 5,651 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 23 | (16) | (7) |
Other Comprehensive Income (Loss), Other Components, Net of Tax | 2 | 6 | (8) |
Operating costs and expenses | |||
General and administrative expenses | 4,014 | 3,873 | 3,597 |
Total operating costs and expenses | 36,753 | 33,001 | 31,996 |
Gain on sale of business | 0 | 0 | 1,980 |
Operating income | 2,537 | 3,601 | 5,651 |
Other (expense) income | |||
Interest expense | (545) | (506) | (556) |
Non-operating FAS pension benefit | 530 | 1,505 | 1,469 |
Mark-to-market pension and OPB (expense) benefit | (422) | 1,232 | 2,355 |
Other, net | 246 | 4 | 19 |
Earnings before income taxes | 2,346 | 5,836 | 8,938 |
Federal and foreign income tax expense | 290 | 940 | 1,933 |
Net earnings | $ 2,056 | $ 4,896 | $ 7,005 |
Basic earnings per share | |||
Basic earnings per share | $ 13.57 | $ 31.61 | $ 43.70 |
Weighted-average common shares outstanding, in millions | 151.5 | 154.9 | 160.3 |
Diluted earnings per share | |||
Diluted earnings per share | $ 13.53 | $ 31.47 | $ 43.54 |
Weighted-average diluted shares outstanding, in millions | 152 | 155.6 | 160.9 |
Net earnings (from above) | $ 2,056 | $ 4,896 | $ 7,005 |
Other comprehensive income (loss), net of tax | |||
Other comprehensive income (loss), net of tax | 25 | (10) | (15) |
Comprehensive income | 2,081 | 4,886 | 6,990 |
Product [Member] | |||
Cost of Goods and Services Sold | 26,226 | 22,761 | 22,309 |
Revenues | 30,897 | 28,522 | 27,868 |
Service [Member] | |||
Cost of Goods and Services Sold | 6,513 | 6,367 | 6,090 |
Revenues | $ 8,393 | $ 8,080 | $ 7,799 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 3,109 | $ 2,577 |
Accounts receivable, net | 1,454 | 1,511 |
Unbilled receivables, net | 5,693 | 5,983 |
Inventoried costs, net | 1,109 | 978 |
Prepaid expenses and other current assets | 2,341 | 1,439 |
Total current assets | 13,706 | 12,488 |
Property, plant and equipment, net of accumulated depreciation of $7,964 for 2023 and $7,258 for 2022 | 9,653 | 8,800 |
Operating lease right-of-use assets | 1,818 | 1,811 |
Goodwill | 17,517 | 17,516 |
Intangible assets, net | 305 | 384 |
Deferred tax assets | 1,020 | 162 |
Other non-current assets | 2,525 | 2,594 |
Total assets | 46,544 | 43,755 |
Liabilities | ||
Trade accounts payable | 2,110 | 2,587 |
Accrued employee compensation | 2,251 | 2,057 |
Advance payments and billings in excess of costs incurred | 4,193 | 3,609 |
Other current liabilities | 3,388 | 3,334 |
Total current liabilities | 11,942 | 11,587 |
Long-term debt, net of current portion of $70 for 2023 and $1,072 for 2022 | 13,786 | 11,805 |
Pension and other postretirement benefit plan liabilities | 1,290 | 1,188 |
Operating lease liabilities | 1,892 | 1,824 |
Other non-current liabilities | 2,839 | 2,039 |
Total liabilities | 31,749 | 28,443 |
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: 2023—150,109,271 and 2022—153,157,924 | 150 | 153 |
Paid-in capital | 0 | 0 |
Retained earnings | 14,773 | 15,312 |
Accumulated other comprehensive loss | (128) | (153) |
Total shareholders’ equity | 14,795 | 15,312 |
Total liabilities and shareholders’ equity | $ 46,544 | $ 43,755 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 7,964 | $ 7,258 |
Long-term Debt, Current Maturities | $ 70 | $ 1,072 |
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 | 150,109,271 | 153,157,924 |
Common stock, shares outstanding | 150,109,271 | 153,157,924 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net earnings | $ 2,056 | $ 4,896 | $ 7,005 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 1,338 | 1,342 | 1,239 |
Mark-to-market pension and OPB expense (benefit) | 422 | (1,232) | (2,355) |
Stock-based compensation | 87 | 99 | 94 |
Deferred income taxes | (988) | (321) | 603 |
Gain on sale of business | 0 | 0 | (1,980) |
B-21 Charge | 1,559 | 0 | 0 |
Net periodic pension and OPB income | (308) | (1,193) | (1,091) |
Pension and OPB contributions | (139) | (136) | (141) |
Changes in assets and liabilities: | |||
Accounts receivable, net | 54 | (44) | (10) |
Unbilled receivables, net | 247 | (646) | (414) |
Inventoried costs, net | (220) | (205) | (52) |
Prepaid expenses and other assets | (86) | 2 | 66 |
Accounts payable and other liabilities | 519 | 572 | 376 |
Income taxes payable, net | (658) | (279) | 215 |
Other, net | (8) | 46 | 12 |
Net cash provided by operating activities | 3,875 | 2,901 | 3,567 |
Investing activities | |||
Divestiture of IT services business | 0 | 0 | 3,400 |
Capital expenditures | (1,775) | (1,435) | (1,415) |
Proceeds from sale of equipment to a customer | 0 | 155 | 84 |
Proceeds from Sale, Maturity and Collection of Investments | 197 | 0 | 0 |
Other, net | (4) | 39 | (11) |
Net cash (used in) provided by investing activities | (1,582) | (1,241) | 2,058 |
Financing activities | |||
Net proceeds from issuance of long-term debt | 1,995 | 0 | 0 |
Payments of long-term debt | (1,050) | 0 | (2,236) |
Common stock repurchases | (1,500) | (1,504) | (3,705) |
Cash dividends paid | (1,116) | (1,052) | (983) |
Payments of employee taxes withheld from share-based awards | (52) | (50) | (34) |
Other, net | (38) | (7) | (44) |
Net cash used in financing activities | (1,761) | (2,613) | (7,002) |
Increase (decrease) in cash and cash equivalents | 532 | (953) | (1,377) |
Cash and cash equivalents, beginning of year | 2,577 | 3,530 | 4,907 |
Cash and cash equivalents, end of year | $ 3,109 | $ 2,577 | $ 3,530 |
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, 2020 | $ 167 | $ 58 | $ 10,482 | $ (128) | |
Common stock repurchased | (11) | (60) | (3,645) | ||
Shares issued for employee stock awards and options | 0 | 2 | 60 | ||
Net earnings | $ 7,005 | 7,005 | |||
Dividends declared | (989) | ||||
Other comprehensive income (loss), net of tax | (15) | (15) | |||
End of year at Dec. 31, 2021 | $ 12,926 | 156 | 0 | 12,913 | (143) |
Cash dividends declared per share | $ 6.16 | ||||
Common stock repurchased | (4) | 0 | (1,497) | ||
Shares issued for employee stock awards and options | 1 | 0 | 52 | ||
Net earnings | $ 4,896 | 4,896 | |||
Dividends declared | (1,052) | ||||
Other comprehensive income (loss), net of tax | (10) | (10) | |||
End of year at Dec. 31, 2022 | $ 15,312 | 153 | 0 | 15,312 | (153) |
Cash dividends declared per share | $ 6.76 | ||||
Common stock repurchased | (3) | 0 | (1,519) | ||
Shares issued for employee stock awards and options | 0 | 0 | 38 | ||
Net earnings | $ 2,056 | 2,056 | |||
Dividends declared | (1,114) | ||||
Other comprehensive income (loss), net of tax | 25 | 25 | |||
End of year at Dec. 31, 2023 | $ 14,795 | $ 150 | $ 0 | $ 14,773 | $ (128) |
Cash dividends declared per share | $ 7.34 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 1 Months Ended | 12 Months Ended |
Jan. 31, 2024 | Dec. 31, 2023 | |
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 is a leading global aerospace and defense technology company. We deliver a broad range of products, services and solutions to U.S. and international customers, and principally to the U.S. Department of Defense and intelligence community. Our broad portfolio is aligned to support national security priorities and our solutions equip our customers with capabilities they need to connect, protect and advance humanity. The company is a leading provider of space systems, military aircraft, missile defense, advanced weapons and long-range fires capabilities, mission systems, networking and communications, strategic deterrence systems, and breakthrough technologies, such as advanced computing, microelectronics and cyber. We are focused on competing and winning programs that enable continued growth, performing on our commitments and affordably delivering capability our customers need. With the investments we've made in advanced technologies, combined with our talented workforce and digital transformation capabilities, Northrop Grumman is well positioned to meet our customers' needs today and in the future. 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 During the first quarter of 2023, we changed the presentation of the components of other comprehensive income (loss), net of tax in the consolidated statement of earnings and comprehensive income. Prior period amounts have been recast to conform to current period presentation. This change in presentation had no impact on our previously reported comprehensive income in total. Accounting Estimates The company’s consolidated financial statements are prepared in conformity with U.S. GAAP. 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. 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). 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 EAC adjustment. 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), un-priced change orders, REAs and contract claims. 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. At the request of the National Aeronautics and Space Administration (NASA), Space Systems submitted an engineering change proposal (ECP) during the fourth quarter of 2023 for scope increases and other aspects of the Habitation and Logistics Outpost (HALO) contract largely stemming from evolving Lunar Gateway architecture and mission requirements. The ECP addresses both work performed and work expected to be performed by the company resulting from scope changes previously approved by NASA, as well as changes NASA has requested the company to propose but has not yet directed the company to perform. The company has begun negotiating with NASA on these various changes and other aspects of the HALO contract. The company’s 2023 results include $100 million of unfavorable EAC adjustments on the HALO contract and reflect our current best estimate of the outcome of the ECP negotiations assuming the terms of the current contract; however, if the outcome is less favorable than what we have assumed, it could have an adverse effect on our financial position, results of operations and/or cash flows. 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 G&A costs, is charged against income in the period the loss is identified. B-21 Low-Rate Initial Production Options In 2015, the U.S. Air Force awarded Northrop Grumman the B-21 contract, which includes a base contract for engineering, manufacturing, and design (EMD) and five low-rate initial production (LRIP) options in varying quantities. The EMD phase of the program is largely cost type and began at contract award. The LRIP options are largely fixed price and are expected to be awarded and executed through approximately the end of the decade. During the fourth quarter of 2023, the B-21 program entered flight testing and the company received an award for the first LRIP lot. We previously disclosed it was reasonably possible one or more of the LRIP options could be performed at a loss principally due to the company’s estimate of the impact macroeconomic factors may have on our cost to complete the LRIP options, as well as ongoing discussions with our suppliers and our customer. During the fourth quarter of 2023, we again reviewed our estimated profitability on the LRIP phase of the program, and we now believe it is probable each of the first five LRIP lots will be performed at a loss. The loss is largely driven by a change in our assumptions regarding funding to mitigate the impact of macroeconomic disruptions on the LRIP phase of the program and higher projected manufacturing costs that reflect recent supplier negotiations and our experience in completing the first aircraft. The projected loss across the five LRIP lots, which we recognized during the fourth quarter of 2023, is $1.56 billion. The loss comprises a $143 million unfavorable EAC adjustment for the first LRIP lot and a $1.37 billion loss contingency accrual and $45 million reduction of inventoried costs for the unexercised LRIP lots. As of December 31, 2023, $631 million of the loss contingency accrual is included in Other current liabilities and $740 million is included in Other non-current liabilities in the consolidated statement of financial position. If our estimated cost to complete the LRIP phase of the program changes or our assumptions regarding contract performance, quantities, or funding to mitigate the impact of macroeconomic disruptions are resolved more or less favorably than what we have estimated, our financial position, results of operations and/or cash flows could be materially affected. Net EAC Adjustments The following table presents the effect of aggregate net EAC adjustments: Year Ended December 31 $ in millions, except per share data 2023 2022 2021 Revenue $ 298 $ 447 $ 568 Operating income 84 360 527 Net earnings (1) 66 284 416 Diluted earnings per share (1) 0.43 1.83 2.59 (1) Based on a 21% federal statutory tax rate. EAC adjustments on a single performance obligation can have a significant effect on the company’s financial statements. When such adjustments occur, we generally disclose the nature, underlying conditions and financial impact of the adjustments. During the fourth quarter of 2023, we recorded a $143 million unfavorable EAC adjustment on the first LRIP lot of the B-21 program at Aeronautics Systems as described above. During 2023, we recorded $100 million of unfavorable EAC adjustments on the HALO program at Space Systems largely due to cost growth stemming from evolving Lunar Gateway architecture and mission requirements combined with macroeconomic challenges. During 2022, we recorded $133 million of favorable EAC adjustments on the EMD phase of the B-21 program at Aeronautics Systems. During 2021, we recorded $135 million of unfavorable EAC adjustments on the F-35 program at Aeronautics Systems. No other such adjustments were significant to the financial statements during the years ended December 31, 2023, 2022 and 2021. 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 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, 2023 was $84.2 billion. Of our December 31, 2023 backlog, we expect to recognize approximately 40 percent as revenue over the next 12 months and 65 percent as revenue over the next 24 months, with the remainder to be recognized thereafter. Subsequent Event – In January 2024, the company received a termination for convenience in our restricted Space business. The company expects to reduce backlog by approximately $2 billion during the first quarter of 2024 related to the termination. 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 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, 2023 December 31, 2022 $ Change % Change Unbilled receivables, net $ 5,693 $ 5,983 $ (290) (5) % Advance payments and amounts in excess of costs incurred (4,193) (3,609) (584) 16 % Net contract assets $ 1,500 $ 2,374 $ (874) (37) % 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, 2023 decreased 37 percent from the prior year, primarily due to decreases in net contracts assets at Space Systems, Missions Systems and Aeronautics Systems. The amount of revenue recognized for the years ended December 31, 2023, 2022 and 2021 that was included in the contract liability balance at the beginning of each year was $3.1 billion, $2.4 billion and $2.0 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 applicable FAR and CAS requirements, most general management and corporate expenses incurred at the segment and corporate locations are considered allowable and allocable costs to our U.S. government contracts. 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 $1.2 billion, $1.2 billion and $1.1 billion in 2023, 2022 and 2021, respectively, which represented 3.0 percent, 3.3 percent and 3.2 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 also recognized as a component of income tax expense. In accordance with applicable FAR and CAS requirements, current state and local income and franchise taxes are generally considered allowable and allocable costs to our U.S. government contracts and are, therefore, 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. 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 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 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 Other, net in the consolidated statements of earnings and comprehensive income, while 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 using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk and our counterparties’ credit risks. 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 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. Inventoried costs include direct production costs, factory and engineering overhead, production tooling costs, and allowable G&A. G&A included in Inventoried costs, net was $65 million and $59 million as of December 31, 2023 and 2022, respectively. Inventoried costs are classified as current assets and include amounts related to contracts having production cycles longer than one year due to the long-cycle nature of our business. 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, 2023 and 2022, the carrying values associated with these policies were $399 million and $367 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 (PP&E) are depreciated over the estimated useful lives of individual assets. Machinery and other equipment is primarily depreciated using declining-balance methods. The other asset categories are generally depreciated using the straight-line method. Depreciation expense is generally an allowable and allocable cost in accordance with applicable FAR and CAS requirements and is 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 PP&E acquired through business combinations is recorded in unallocated corporate expense within operating income as such depreciation is not allocable to government contracts and not considered part of management’s evaluation of segment operating performance. Major classes of PP&E and their useful lives are as follows: December 31 Useful life in years, $ in millions Useful Life 2023 2022 Land and land improvements Up to 40 (1) $ 742 $ 741 Buildings and improvements Up to 45 3,605 3,272 Machinery and other equipment Up to 20 9,641 8,774 Capitalized software costs 3-5 553 524 Leasehold improvements Lease Term (2) 3,076 2,747 Property, plant and equipment, at cost 17,617 16,058 Accumulated depreciation (7,964) (7,258) Property, plant and equipment, net $ 9,653 $ 8,800 (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 PP&E. 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. 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 $155 million and $84 million related to the equipment sale during 2022 and 2021, respectively, and included it in Proceeds from sale of equipment to a customer in the consolidated statements of cash flows. The company received no cash payments in 2023 related to the equipment sale. During the year ended December 31, 2022, the company acquired $46 million of internal use software through long-term financing directly with the supplier. The software was recorded in PP&E as a non-cash investing activity and the related liability was recorded in long-term debt as a non-cash financing activity. During the years ended December 31, 2023 and 2022, the company received lease incentives for landlord funded leasehold improvements of $55 million and $96 million, respectively, related to Space Systems real estate leases, which were recorded in PP&E and included in non-cash investing activities. On December 28, 2022 the company acquired certain leased land in exchange for company-owned land, which had been used previously for production-related activities at Space Systems. The exchange was accounted for as a nonmonetary transaction, and the acquired land, valued at approximately $155 million, was recorded in PP&E as a non-cash investing activity. The transaction resulted in a $96 million gain, which was reflected in operating costs and expenses in the consolidated statements of earnings and comprehensive income. Non-cash investing activities also include capital expenditures incurred but not yet paid of $75 million, $113 million and $91 million as of December 31, 2023, 2022 and 2021, respectively. Sale of Minority Investment In July 2023, the company sold its minority investment in an Australian business for AUD $235 million (the equivalent of $157 million upon settlement). The sale resulted in a pre-tax gain of $97 million, which is reflected in Other, net on the consolidated statements of earnings and comprehensive income for the year ended December 31, 2023. Proceeds from the sale are included in investing activities on the consolidated statement of cash flows for the year ended December 31, 2023. Goodwill and Other Purchased Intangible Assets 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 allocable to government contracts and 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. 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 generally expensed as incurred. Due to the inherent uncertainties surrounding | |
Subsequent Events | Subsequent Event – In January 2024, the company received a termination for convenience in our restricted Space business. The company expects to reduce backlog by approximately $2 billion during the first quarter of 2024 related to the termination. |
Dispositions
Dispositions | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. DISPOSITIONS Disposition of IT and Mission Support Services Business Effective January 30, 2021, we completed the IT services divestiture for $3.4 billion in cash and recorded a pre-tax gain of $2.0 billion. The IT and mission support services business was comprised of the majority of the former Information Solutions and Services (IS&S) division of Defense Systems (excluding the Vinnell Arabia business); select cyber, intelligence and missions support programs, which were part of the former Cyber and Intelligence Mission Solutions (CIMS) division of Mission Systems; and the former Space Technical Services business unit of Space Systems. Operating results include sales and operating income for the IT and mission support services business prior to the Divestiture date; therefore, no sales and operating income were recognized for this business during the years ended December 31, 2023 and 2022. The company recorded sales of $162 million and pre-tax profit of $20 million for the IT and mission support services business during the year ended December 31, 2021. |
Earnings Per Share, Share Repur
Earnings Per Share, Share Repurchases and Dividends on Common Stock | 12 Months Ended |
Dec. 31, 2023 | |
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 0.6 million shares for the years ended December 31, 2023, 2022 and 2021, respectively. Share Repurchases Share Repurchase Programs On December 4, 2018, the company’s board of directors authorized a share repurchase program of up to $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 and were completed in October 2021. 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”). Repurchases under the 2021 Repurchase Program commenced in October 2021 and were completed in April 2023. On January 24, 2022, the company’s board of directors authorized a new share repurchase program of up to an additional $2.0 billion in share repurchases of the company’s common stock (the “2022 Repurchase Program”). Repurchases under the 2022 Repurchase Program commenced in April 2023 upon completion of the 2021 Repurchase Program. As of December 31, 2023, repurchases under the 2022 Repurchase Program totaled $0.9 billion; $1.1 billion remained under this share repurchase authorization. By its terms, the 2022 Repurchase Program will expire when we have used all authorized funds for repurchases. On December 6, 2023, the company’s board of directors authorized a new share repurchase program of up to an additional $2.5 billion in share repurchases of the company’s common stock (the “2023 Repurchase Program”). Repurchases under the 2023 Repurchase Program will commence upon completion of the 2022 Repurchase Program and will expire when we have used all authorized funds for repurchases. As of December 31, 2023, there have been no repurchases under the 2023 Repurchase Program and the company’s total outstanding share repurchase authorization was $3.6 billion. Accelerated Share Repurchase Agreements During the first quarter of 2021, the company entered into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC (Goldman Sachs) to repurchase $2.0 billion of the company’s common stock as part of the 2018 Repurchase Program. Under the agreement, we made a payment of $2.0 billion to Goldman Sachs and received an initial delivery of 5.9 million shares valued at $1.7 billion that were immediately canceled by the company. The remaining balance of $300 million was settled on June 1, 2021 with a final delivery of 0.2 million shares from Goldman Sachs. The final average purchase price was $327.29 per share. During the fourth quarter of 2021, the company entered into an ASR agreement with Goldman Sachs to repurchase $500 million of the company’s common stock as part of the 2021 Repurchase Program. Under the agreement, we made a payment of $500 million to Goldman Sachs and received an initial delivery of 1.2 million shares valued at $425 million that were immediately canceled by the company. The remaining balance of $75 million was settled on February 1, 2022 with a final delivery of 0.1 million shares from Goldman Sachs. The final average purchase price was $374.79 per share. During the first quarter of 2023, the company entered into an ASR agreement with Bank of America, N.A. (Bank of America) to repurchase $500 million of the company’s common stock as part of the 2021 and 2022 Repurchase Programs. Under the agreement, we made a payment of $500 million to Bank of America and received an initial delivery of 0.9 million shares valued at $400 million that were immediately canceled by the company. The remaining balance of $100 million was settled on April 27, 2023 with a final delivery of 0.2 million shares from Bank of America. The final average purchase price was $458.28 per share. Share repurchases take place from time to time, subject to market and regulatory 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 2023 2022 2021 December 4, 2018 $ 3,000 8.9 $ 337.18 October 2021 — — 8.4 January 25, 2021 $ 3,000 7.0 $ 431.05 April 2023 1.4 3.3 2.2 January 24, 2022 $ 2,000 1.9 $ 454.03 1.9 — — December 6, 2023 $ 2,500 — $ — — — — 3.3 3.3 10.6 (1) As a part of the 2023 Repurchase Program, the board of directors approved that the purchases under this program, and the authorization remaining under the 2022 program, be exclusive of brokerage commissions. Commissions paid are included for the 2018 and 2021 Repurchase Programs. Dividends on Common Stock In May 2023, the company increased the quarterly common stock dividend 8 percent to $1.87 per share from the previous amount of $1.73 per share. In May 2022, the company increased the quarterly common stock dividend 10 percent to $1.73 per share from the previous amount of $1.57 per share. In May 2021, the company increased the quarterly common stock dividend 8 percent to $1.57 per share from the previous amount of $1.45 per share. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 are expected to be collected in 2024. 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 2023 2022 Due from U.S. government (1) $ 1,184 $ 1,215 Due from international and other customers 276 304 Accounts receivable, gross 1,460 1,519 Allowance for expected credit losses (6) (8) Accounts receivable, net $ 1,454 $ 1,511 (1) Includes receivables due from the U.S. government associated with foreign military sales, which are contracted with and paid by the U.S. government. |
Unbilled Receivables, Net
Unbilled Receivables, Net | 12 Months Ended |
Dec. 31, 2023 | |
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. A large majority of the company’s unbilled receivables at December 31, 2023 are expected to be billed and collected in 2024. 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 2023 2022 Due from U.S. government (1) Unbilled receivables $ 23,655 $ 23,304 Progress and performance-based payments received (18,321) (17,664) Total due from U.S. government 5,334 5,640 Due from international and other customers Unbilled receivables 1,720 1,822 Progress and performance-based payments received (1,344) (1,460) Total due from international and other customers 376 362 Unbilled receivables, net of progress and performance-based payments received 5,710 6,002 Allowance for expected credit losses (17) (19) Unbilled receivables, net $ 5,693 $ 5,983 (1) |
Inventoried Costs, Net
Inventoried Costs, Net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventoried Costs, Net | 6. INVENTORIED COSTS, NET Inventoried costs are principally 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 associated with our commercial businesses, while less significant in total, are subject to a greater level of recoverability risk. The company recorded write-downs of commercial business inventory at Space Systems for which its cost exceeded net realizable value of $43 million and $45 million during the years ended December 31, 2023 and 2022, respectively. As discussed in Note 1, the company recognized a $45 million reduction of inventoried costs related to the B-21 program at Aeronautics Systems during the year ended December 31, 2023. Inventoried costs, net consisted of the following: December 31 $ in millions 2023 2022 Contracts in process $ 647 $ 574 Product inventory: Raw materials 338 325 Work in process 72 31 Finished goods 52 48 Total product inventory $ 462 $ 404 Inventoried costs, net $ 1,109 $ 978 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 2021 Federal income tax expense: Current $ 949 $ 1,289 $ 1,398 Deferred (670) (353) 518 Total federal income tax expense 279 936 1,916 Foreign income tax expense: Current 15 3 6 Deferred (4) 1 11 Total foreign income tax expense 11 4 17 Total federal and foreign income tax expense $ 290 $ 940 $ 1,933 Earnings before income taxes associated with the company’s foreign operations are not material in the 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 2023 2022 2021 Income tax expense at statutory rate $ 493 21.0 % $ 1,226 21.0 % $ 1,877 21.0 % Research credit (210) (8.9) (177) (3.0) (192) (2.2) Foreign derived intangible income (63) (2.7) (66) (1.1) (50) (0.6) IT services divestiture nondeductible goodwill — — — — 250 2.8 Settlements with taxing authorities (1) — (86) (1.5) — — Net interest expense 69 2.9 22 0.4 17 0.2 Other, net 2 0.1 21 0.3 31 0.4 Total federal and foreign income taxes $ 290 12.4 % $ 940 16.1 % $ 1,933 21.6 % The 2023 ETR decreased to 12.4 percent from 16.1 percent in 2022 primarily due to lower earnings before income taxes as a result of the B-21 charge and MTM expense, which collectively reduced the 2023 ETR by 3.8 percentage points. The 2022 MTM benefit increased the 2022 ETR by 1.2 percentage points. The 2022 ETR decreased to 16.1 percent from 21.6 percent in 2021 primarily due to an $86 million benefit resulting from the resolution of the IRS examination of certain legacy OATK tax returns, as well as additional federal income taxes in the prior year resulting from the IT services divestiture. The company’s 2022 MTM benefit increased the 2022 ETR by 1.2 percentage points; however, the MTM benefit in 2021 did not significantly impact the 2021 ETR. Income tax payments, net of refunds received, were $1.2 billion, $1.5 billion and $1.3 billion for the years ended December 31, 2023, 2022 and 2021, respectively. Taxes receivable, which are included in Prepaid expenses and other current assets in the consolidated statements of financial position, were $1.5 billion and $850 million as of December 31, 2023 and 2022, 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 2018-2020 federal tax returns are currently under Internal Revenue Service (IRS) examination. During the second quarter of 2023, the company entered into an agreed Revenue Agent’s Report (“RAR”) for certain matters related to the company’s 2014-2017 federal income tax returns, resulting in a $90 million reduction to our unrecognized tax benefits and an immaterial impact to income tax expense. The matters not addressed by the agreed RAR related to the company’s 2014-2017 federal income tax returns and refund claims related to its 2007-2016 federal tax returns are currently under review by the IRS Appeals Office. In the second quarter of 2023, the California Franchise Tax Board approved a resolution of the state examination primarily related to California state apportionment in the company’s 2007 to 2016 tax years, resulting in a $95 million reduction to our unrecognized tax benefits and an $11 million reduction to unallocated corporate expense. 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 2023, 2022 and 2021, excluding interest, is as follows: December 31 $ in millions 2023 2022 2021 Unrecognized tax benefits at beginning of the year $ 1,663 $ 1,630 $ 1,481 Additions based on tax positions related to the current year 276 262 355 Additions for tax positions of prior years 254 6 47 Reductions for tax positions of prior years (9) (124) (251) Settlements with taxing authorities (189) (110) (1) Other, net (1) (1) (1) Net change in unrecognized tax benefits 331 33 149 Unrecognized tax benefits at end of the year $ 1,994 $ 1,663 $ 1,630 Our 2023 increase in unrecognized tax benefits was primarily related to our methods of accounting associated with the timing of revenue recognition and related costs and the 2017 Tax Cuts and Jobs Act, which includes related final revenue recognition regulations issued in December 2020 under IRC Section 451(b) and procedural guidance issued in August 2021. As of December 31, 2023, we have approximately $2.0 billion in unrecognized tax benefits, including $843 million related to our position on IRC Section 451(b). If these matters, including our position on IRC Section 451(b), are unfavorably resolved, there could be a material impact on our future cash flows. It is reasonably possible that within the next 12 months our unrecognized tax benefits related to these matters may increase by approximately $120 million. Our current unrecognized tax benefits, which are included in Other current liabilities in the consolidated statements of financial position, were $964 million and $728 million as of December 31, 2023 and 2022, respectively, with the remainder of our unrecognized tax benefits included within Other non-current liabilities. These liabilities include $305 million and $216 million of accrued interest and penalties as of December 31, 2023 and 2022, respectively. If the income tax benefits from these tax positions are ultimately realized, $848 million of federal and foreign tax benefits would reduce the company’s ETR. Net interest expense within the company’s federal, foreign and state income tax provisions was $62 million, $29 million, and $25 million for the years ended December 31, 2023, 2022, and 2021, respectively. 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 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 2023 2022 Deferred Tax Assets Retiree benefits $ 115 $ 117 Capitalized research and experimental expenditures 3,380 1,671 Accrued employee compensation 400 378 Provisions for accrued liabilities 509 65 Inventory 279 484 Stock-based compensation 35 37 Operating lease liabilities 575 556 Tax credits 557 464 Other 215 144 Gross deferred tax assets 6,065 3,916 Less: valuation allowance (517) (428) Net deferred tax assets 5,548 3,488 Deferred Tax Liabilities Goodwill 534 534 Purchased intangibles 83 98 Property, plant and equipment, net 805 854 Operating lease right-of-use assets 563 545 Contract accounting differences 2,437 1,348 Other 106 79 Deferred tax liabilities 4,528 3,458 Total net deferred tax assets $ 1,020 $ 30 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, 2023, the company has available tax credits and unused net operating losses of $615 million and $358 million, respectively, that may be applied against future taxable income. The majority of tax credits and net operating losses expire in 2024 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 $344 million and $46 million, respectively, as of December 31, 2023. Undistributed Foreign Earnings |
Goodwill and Other Purchased In
Goodwill and Other Purchased Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 and 2023, were as follows: $ in millions Aeronautics Systems Defense Systems Mission Systems Space Systems Total Balance as of December 31, 2021 $ 3,467 $ 3,412 $ 5,881 $ 4,755 $ 17,515 Other (1) — 1 — — 1 Balance as of December 31, 2022 $ 3,467 $ 3,413 $ 5,881 $ 4,755 $ 17,516 Other (1) — 1 — — 1 Balance as of December 31, 2023 $ 3,467 $ 3,414 $ 5,881 $ 4,755 $ 17,517 (1) Other consists primarily of adjustments for foreign currency translation. At December 31, 2023 and 2022, 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 2023 2022 Gross customer-related and other intangible assets $ 3,365 $ 3,364 Less accumulated amortization (3,060) (2,980) Net customer-related and other intangible assets $ 305 $ 384 Amortization expense for 2023, 2022 and 2021, was $80 million, $197 million and $204 million, respectively. As of December 31, 2023, the expected future amortization of purchased intangibles for each of the next five years is as follows: $ in millions 2024 $ 57 2025 45 2026 42 2027 31 2028 31 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 $ in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets Marketable securities $ 321 $ 1 $ 8 $ 330 $ 310 $ 1 $ 8 $ 319 Marketable securities valued using NAV 9 13 Total marketable securities 321 1 8 339 310 1 8 332 Derivatives — 5 — 5 — 7 — 7 The notional value of the company’s foreign currency forward contracts at December 31, 2023 and 2022 was $286 million and $221 million, respectively. The portion of notional value designated as a cash flow hedge at December 31, 2023 and 2022 was $162 million and $87 million, respectively. The derivative fair values and related unrealized gains/losses at December 31, 2023 and 2022 were not material. There were no transfers of financial instruments into or out of Level 3 of the fair value hierarchy during the years ended December 31, 2023 and 2022. The carrying value of cash and cash equivalents and commercial paper approximates fair value. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
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 $2.5 billion. There were no commercial paper borrowings outstanding at December 31, 2023 and December 31, 2022, respectively. Credit Facility The company maintains a five-year senior unsecured credit facility in an aggregate principal amount of $2.5 billion (the “2022 Credit Agreement”) that matures in August 2027. The revolving credit facility established under the 2022 Credit Agreement is intended to support the company’s commercial paper program and other general corporate purposes. Commercial paper borrowings reduce the amount available for borrowing under the 2022 Credit Agreement. At December 31, 2023, there were no borrowings outstanding under this facility. The 2022 Credit Agreement contains 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 agreement) to exceed 65 percent. At December 31, 2023, the company was in compliance with all covenants under its credit agreement. Unsecured Senior Notes Issuance of Senior Notes In February 2023, the company issued $2.0 billion of unsecured senior notes for general corporate purposes, including debt repayment, share repurchases, and working capital, as follows: • $1.0 billion of 4.70% senior notes due 2033 (the “2033 Notes”) and • $1.0 billion of 4.95% senior notes due 2053 (the “2053 Notes”). We refer to the 2033 Notes and the 2053 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. Repayments of Senior Notes In August 2023, the company repaid $1.05 billion of 3.25 percent unsecured senior notes upon maturity. In March 2021, the company repaid $700 million of 3.50 percent unsecured notes upon maturity. In March 2021, the company redeemed $1.5 billion of 2.55 percent unsecured notes due October 2022. The company recorded a pre-tax charge of $54 million principally related to the premium paid on the redemption, which was recorded in Other, net in the consolidated statements of earnings and comprehensive income. Debt Exchange On September 2, 2021, the company completed an exchange offer to eligible holders of the outstanding notes of our direct wholly owned subsidiary, Northrop Grumman Systems Corporation (“NGSC”), maturing through 2036. An aggregate principal amount of $422 million of the NGSC notes was exchanged for $422 million of unregistered Northrop Grumman Corporation notes (the “Unregistered Notes”) with the same interest rates and maturity dates as the NGSC notes exchanged. On June 15, 2022, the company completed a registered exchange offer pursuant to which the company exchanged an aggregate principal amount of $414 million of the Unregistered Notes for $414 million of new notes registered under the Securities Act of 1933, as amended, (the “Registered Notes”) with the same interest rates and maturity dates as the Unregistered Notes. Because the debt instruments were not substantially different in either of the exchange offers, both exchanges were treated as debt modifications for accounting purposes with no gain or loss recognized. Long-term debt consists of the following: $ in millions December 31 2023 2022 Fixed-rate notes and debentures, maturing in Interest rate 2023 3.25% $ — $ 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% 750 750 2031 7.75% 466 466 2033 4.70% 1,000 — 2040 5.05% - 5.15% 800 800 2043 4.75% 950 950 2045 3.85% 600 600 2047 4.03% 2,250 2,250 2050 5.25% 1,000 1,000 2053 4.95% 1,000 — Other Various 332 293 Debt issuance costs (69) (59) Total long-term debt 13,856 12,877 Less: current portion (1) 70 1,072 Long-term debt, net of current portion $ 13,786 $ 11,805 (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 $13.4 billion and $12.1 billion as of December 31, 2023 and 2022, 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 and capitalized, were $437 million, $474 million and $570 million for the years ended December 31, 2023, 2022 and 2021, respectively. The company capitalized interest expense of $95 million, $53 million and $17 million during the years ended December 31, 2023, 2022 and 2021, respectively. Maturities of long-term debt as of December 31, 2023, are as follows: $ in millions Year Ending December 31 2024 $ 70 2025 1,582 2026 530 2027 754 2028 2,043 Thereafter 8,963 Total principal payments 13,942 Unamortized premium on long-term debt, net of discount (17) Debt issuance costs (69) Total long-term debt $ 13,856 |
Investigations, Claims and Liti
Investigations, Claims and Litigation | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Investigations, Claims and Litigation | 11. INVESTIGATIONS, CLAIMS AND LITIGATION For over 25 years, the company has worked closely with the United States Navy, the United States Environmental Protection Agency, the New York State Department of Environmental Conservation, the New York State Department of Health and other federal, state and local governmental authorities, to address environmental conditions allegedly resulting from historic operations at the former United States Navy and Grumman facilities in Bethpage, New York. We have incurred, and expect to continue to incur, as included in Note 12, substantial remediation costs related to these Bethpage environmental conditions. It is also possible that applicable remediation standards and other requirements to which we are subject may continue to change, and that our costs may increase materially. In 2022, we resolved several disputes and regulatory proceedings concerning the scope and allocation of remediation responsibilities and costs related to this site. The company continues to be involved in related disputes, none of which are material individually or in the aggregate. We are also a party to various individual lawsuits and a putative class action in the Eastern District of New York alleging personal injury and property damage related to the legacy Bethpage environmental conditions. The court has stayed the filed individual lawsuits, pending its decision on class certification. We are also a party, and may become a party, to other lawsuits brought by or against insurance carriers, and by other individual plaintiffs and/or putative classes, as well as other parties. We cannot at this time predict or reasonably estimate the potential cumulative outcomes or ranges of possible liability of these Bethpage lawsuits . The company received from the U.S. Department of Justice (DOJ) a criminal subpoena on December 9, 2022, and a civil investigative demand on February 2, 2023, both seeking information regarding financial and cost accounting and controls that appears focused on the interest rate assumptions the company used to determine our CAS pension expense, which we discuss in Note 12 below. The company is engaging with the government and responding to the requests. We cannot at this point predict the outcome of these 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, 2023, or its annual results of operations and/or cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, or its annual results of operations and/or cash flows. In 2019, the Defense Contract Management Agency (DCMA) raised questions about an interest rate assumption used by the company to determine our CAS pension expense. On June 1, 2020, DCMA 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 believed demonstrates the appropriateness of the assumptions used. On November 24, 2020, DCMA replied to the company’s response, disagreeing with our position and requesting additional input, which we provided on February 22, 2021. We have continued to exchange correspondence and engage with DCMA on this matter, including responding to requests for and providing additional information. As noted in Note 11 above, the company received from the DOJ a criminal subpoena on December 9, 2022, and a CID on February 2, 2023, both seeking information that appears related to the interest rate assumptions at issue in our discussions with DCMA. The company is engaging with the government and responding to the requests. We cannot at this point predict the outcome of these matters. As previously described, the sensitivity to changes in interest rate assumptions makes it reasonably possible the outcome of the DCMA 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, 2023 and 2022: $ in millions Accrued Costs (1)(2) Reasonably Possible Future Costs in Excess of Accrued Costs (2) Deferred Costs (3) December 31, 2023 $ 584 $ 387 $ 518 December 31, 2022 565 353 486 (1) As of December 31, 2023, $223 million is recorded in Other current liabilities and $361 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, 2023, $206 million is deferred in Prepaid expenses and other current assets and $312 million is deferred in Other non-current assets. These amounts are evaluated for recoverability on a routine basis. Although management cannot predict whether (i) new information gained as our environmental remediation projects progress, (ii) changes in remediation standards or other requirements to which we are subject, or (iii) other changes in facts and circumstances will materially affect the estimated liability accrued, 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, 2023, or its annual results of operations and/or cash flows. 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, 2023, there were $411 million of stand-by letters of credit and guarantees and $263 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, 2023, or its annual results of operations and/or cash flows. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
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 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, 2023, 2022 and 2021, were $634 million, $558 million and $588 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 for 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 2023 2022 2021 2023 2022 2021 Components of net periodic benefit cost (benefit) Service cost $ 236 $ 367 $ 414 $ 5 $ 9 $ 16 Interest cost 1,568 1,136 1,054 67 47 53 Expected return on plan assets (2,098) (2,641) (2,512) (85) (110) (105) Amortization of prior service credit — — (9) (1) (1) (1) Mark-to-market expense (benefit) 442 (1,262) (1,921) (20) 30 (434) Other — — (1) — — — Net periodic benefit cost (benefit) $ 148 $ (2,400) $ (2,975) $ (34) $ (25) $ (471) The table below summarizes the components of changes in unamortized prior service credit (cost) for the years ended December 31, 2021, 2022 and 2023: $ in millions Pension Benefits Medical and Life Benefits Total Changes in unamortized prior service credit (cost) Amortization of prior service credit (cost) $ 9 $ 1 $ 10 Tax expense (2) — (2) Change in unamortized prior service credit (cost) – 2021 7 1 8 Amortization of prior service credit (cost) — 1 1 Tax expense — — — Change in unamortized prior service credit (cost) – 2022 — 1 1 Amortization of prior service credit (cost) — 1 1 Tax expense — — — Change in unamortized prior service credit (cost) – 2023 $ — $ 1 $ 1 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 2023 2022 2023 2022 Plan Assets Fair value of plan assets at beginning of year $ 28,920 $ 36,236 $ 1,226 $ 1,588 Net gain (loss) on plan assets 3,104 (5,422) 146 (257) Employer contributions 105 101 34 35 Participant contributions 6 7 27 24 Benefits paid (1,894) (1,973) (159) (164) Other 10 (29) — — Fair value of plan assets at end of year 30,251 28,920 1,274 1,226 Projected Benefit Obligation Projected benefit obligation at beginning of year 29,067 38,888 1,264 1,685 Service cost 236 367 5 9 Interest cost 1,568 1,136 67 47 Participant contributions 6 7 27 24 Actuarial loss (gain) 1,447 (9,325) 42 (337) Benefits paid (1,894) (1,973) (159) (164) Other 13 (33) — — Projected benefit obligation at end of year 30,443 29,067 1,246 1,264 Funded status $ (192) $ (147) $ 28 $ (38) The increase in the fair value of our plan assets for the year ended December 31, 2023 was principally driven by net plan asset returns of 11.1 percent, partially offset by $2.1 billion of benefit payments. The increase in our projected benefit obligation for the year ended December 31, 2023, was primarily driven by $1.6 billion of interest cost and a 39 basis point decrease in the discount rate from year end 2022, partially offset by $2.1 billion of benefit payments. Pension Benefits Medical and Life Benefits $ in millions 2023 2022 2023 2022 Classification of amounts recognized in the consolidated statements of financial position Non-current assets $ 1,042 $ 982 $ 289 $ 240 Current liability (178) (177) (27) (42) Non-current liability (1,056) (952) (234) (236) The accumulated benefit obligation for all defined benefit pension plans was $30.1 billion and $28.8 billion at December 31, 2023 and 2022, respectively. Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets are as follows: December 31 $ in millions 2023 2022 Projected benefit obligation $ 1,152 $ 1,126 Accumulated benefit obligation 1,143 1,117 Fair value of plan assets 3 2 Plan Assumptions On a weighted-average basis, the following assumptions were used to determine benefit obligations at December 31 of each year and net periodic benefit cost for the following year: Pension Benefits Medical and Life Benefits 2023 2022 2021 2023 2022 2021 Discount rate 5.15 % 5.54 % 2.98 % 5.20 % 5.57 % 2.93 % Expected long-term return on plan assets 7.50 % 7.50 % 7.50 % 7.12 % 7.23 % 7.19 % Initial cash balance crediting rate assumed for the next year 4.02 % 3.96 % 2.25 % Rate to which the cash balance crediting rate is assumed to increase/decrease (the ultimate rate) 4.02 % 3.88 % 2.25 % Year that the cash balance crediting rate reaches the ultimate rate 2029 2028 2027 Rate of compensation increase 3.00 % 3.00 % 3.00 % Initial health care cost trend rate assumed for the next year 6.20 % 6.50 % 5.30 % Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % 5.00 % Year that the health care cost trend rate reaches the ultimate trend rate 2028 2028 2023 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. 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 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, 2023: Asset Allocation Ranges Cash and cash equivalents 0% - 12% Global public equities 21% - 41% Fixed-income securities 35% - 55% Alternative investments 12% - 32% The table below provides the fair values of the company’s pension and Voluntary Employees’ Beneficiary Association (VEBA) trust plan assets at December 31, 2023 and 2022, 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, 2023 and 2022, there were no investments expected to be sold at a value materially different than NAV. Level 1 Level 2 Level 3 Total $ in millions 2023 2022 2023 2022 2023 2022 2023 2022 Asset category Cash and cash equivalents $ 85 $ 115 $ 830 $ 1,076 $ 915 $ 1,191 U.S. equities 1,712 2,138 1 1 1,713 2,139 International equities 1,506 1,784 1,506 1,784 Fixed-income securities U.S. Treasuries — 22 3,890 2,977 3,890 2,999 U.S. Government Agency 124 145 124 145 Non-U.S. Government 176 172 176 172 Corporate debt 74 28 4,432 4,717 4,506 4,745 Asset backed 436 353 436 353 High yield debt 13 12 20 19 33 31 Bank loans 15 13 15 13 Other assets 64 43 2 $ 2 $ 2 109 4 Investments valued using NAV as a practical expedient U.S. equities 1,294 1,043 International equities 3,972 3,904 Fixed-income funds 4,057 2,569 Hedge funds 38 44 Opportunistic investments 3,176 2,983 Private equity funds 3,466 3,299 Real estate funds 2,123 2,753 Payables, net (24) (25) Fair value of plan assets at the end of the year $ 3,454 $ 4,099 $ 9,967 $ 9,475 $ 2 $ 2 $ 31,525 $ 30,146 There were no transfers of plan assets into or out of Level 3 of the fair value hierarchy during the years ended December 31, 2023 and 2022. 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 $172 million and $71 million, derivative liabilities with a fair value of $101 million and $117 million, and net notional amounts of $4.9 billion and $3.2 billion, as of December 31, 2023 and 2022, 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, 2023 and 2022, there were no unfunded commitments. Fixed-income funds: Generally, redemption periods are daily, monthly or quarterly with a notice requirement of two days. As of December 31, 2023 and 2022 there were no unfunded commitments. 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, 2023 and 2022, unfunded commitments were $6 million. Opportunistic investments: Primarily held in partnerships with a 5-10 year life. As of December 31, 2023 and 2022, unfunded commitments were $1.6 billion and $1.5 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, 2023 and 2022, unfunded commitments were $1.9 billion and $2.0 billion, respectively. Real estate funds: Consist primarily of open-end funds that generally allow investors to redeem their interests in the funds. Certain closed-end real estate funds have terms of 10 or more years. As of December 31, 2023 and 2022, unfunded commitments were $28 million and $44 million, respectively. For the years ended December 31, 2023 and 2022, 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, 2023: $ in millions Pension Plans Medical and Life Plans Total Year Ending December 31 2024 $ 2,012 $ 134 $ 2,146 2025 2,058 137 2,195 2026 2,095 131 2,226 2027 2,129 107 2,236 2028 2,151 103 2,254 2029 through 2033 10,820 455 11,275 In 2024, the company expects to contribute the required minimum funding of approximately $99 million to its pension plans and approximately $35 million to its medical and life benefit plans. During the year ended December 31, 2023, the company made no discretionary pension contributions. |
Stock Compensation Plans and Ot
Stock Compensation Plans and Other Compensation Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 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, 2023, 4.4 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 certain performance metrics 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, 2023, 2022 and 2021 was $87 million, $99 million and $94 million, respectively. The related tax benefits (deficiencies) for stock-based compensation for the years ended December 31, 2023, 2022 and 2021 were $9 million, $10 million and $(2) million, respectively. At December 31, 2023, there was $96 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 Stock award activity for the years ended December 31, 2021, 2022 and 2023, 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, 2021 603 $ 311 1.4 Granted 304 296 Vested (269) 286 Forfeited (58) 318 Outstanding at December 31, 2021 580 $ 314 1.4 Granted 238 397 Vested (226) 327 Forfeited (31) 320 Outstanding at December 31, 2022 561 $ 344 1.4 Granted 216 478 Vested (249) 315 Forfeited (29) 373 Outstanding at December 31, 2023 499 $ 417 1.3 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 $99 million, $93 million and $103 million during the years ended December 31, 2023, 2022 and 2021, 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 2023 2022 2021 Minimum aggregate payout amount $ 34 $ 32 $ 31 Maximum aggregate payout amount 192 183 178 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 certain performance metrics over a three-year period. At December 31, 2023, there was $116 million of unrecognized compensation expense related to cash awards. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 2021 Operating lease cost $ 358 $ 332 $ 315 Variable lease cost 48 35 31 Short-term lease cost 69 51 80 Total lease cost $ 475 $ 418 $ 426 Supplemental Balance Sheet Information Supplemental operating lease balance sheet information consists of the following: Year Ended December 31 $ in millions 2023 2022 Operating lease right-of-use assets $ 1,818 $ 1,811 Other current liabilities 300 299 Operating lease liabilities 1,892 1,824 Total operating lease liabilities $ 2,192 $ 2,123 Other Supplemental Information Other supplemental operating lease information consists of the following: Year Ended December 31 $ in millions 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 341 $ 316 Right-of-use assets obtained in exchange for new lease liabilities 314 438 Weighted average remaining lease term 11.0 years 11.2 years Weighted average discount rate 3.9 % 3.4 % Maturities of Lease Liabilities Maturities of operating lease liabilities as of December 31, 2023 are as follows: $ in millions Year Ending December 31 2024 $ 363 2025 354 2026 307 2027 252 2028 222 Thereafter 1,235 Total lease payments 2,733 Less: imputed interest (541) Present value of operating lease liabilities $ 2,192 As of December 31, 2023, we have approximately $270 million in rental commitments for real estate leases that have not yet commenced. These leases are expected to commence in 2024 and 2025 with lease terms of 5 to 20 years. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
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. The following table presents sales and operating income by segment: Year Ended December 31 $ in millions 2023 2022 2021 Sales Aeronautics Systems $ 10,786 $ 10,531 $ 11,259 Defense Systems 5,862 5,579 5,776 Mission Systems 10,895 10,396 10,134 Space Systems 13,946 12,275 10,608 Intersegment eliminations (2,199) (2,179) (2,110) Total sales 39,290 36,602 35,667 Operating income Aeronautics Systems (473) 1,116 1,093 Defense Systems 710 664 696 Mission Systems 1,609 1,618 1,579 Space Systems 1,212 1,158 1,121 Intersegment eliminations (298) (303) (272) Total segment operating income 2,760 4,253 4,217 FAS/CAS operating adjustment (82) (200) 130 Unallocated corporate (expense) income (141) (452) 1,304 Total operating income $ 2,537 $ 3,601 $ 5,651 Other (expense) income Interest expense (545) (506) (556) Non-operating FAS pension benefit 530 1,505 1,469 Mark-to-market pension and OPB (expense) benefit (422) 1,232 2,355 Other, net 246 4 19 Earnings before income taxes $ 2,346 $ 5,836 $ 8,938 FAS/CAS Operating Adjustment For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with applicable FAR and CAS requirements. The FAS/CAS operating adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income. Unallocated Corporate (Expense) Income Unallocated corporate (expense) income includes the portion of corporate costs not considered allowable or allocable under applicable FAR and CAS requirements, and therefore not allocated to the segments, such as changes in deferred state income taxes and a portion of management and administration, legal, environmental, compensation, retiree benefits, advertising and other corporate unallowable costs. Unallocated corporate (expense) income 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 PP&E acquired through business combinations, as well as certain compensation and other costs. During the first quarter of 2021, the $2.0 billion pre-tax gain on the sale of our IT services business and $192 million of unallowable state taxes and transaction costs associated with the divestiture were recorded in Unallocated corporate (expense) income. Disaggregation of Revenue Sales by Customer Type Year Ended December 31 2023 2022 2021 $ in millions $ % (3) $ % (3) $ % (3) Aeronautics Systems U.S. government (1) $ 9,132 85 % $ 8,930 85 % $ 9,631 85 % International (2) 1,379 13 % 1,344 13 % 1,421 13 % Other customers 35 — % 18 — % 18 — % Intersegment sales 240 2 % 239 2 % 189 2 % Aeronautics Systems sales 10,786 100 % 10,531 100 % 11,259 100 % Defense Systems U.S. government (1) 3,497 60 % 3,344 61 % 3,595 62 % International (2) 1,491 25 % 1,358 24 % 1,317 23 % Other customers 76 1 % 71 1 % 75 1 % Intersegment sales 798 14 % 806 14 % 789 14 % Defense Systems sales 5,862 100 % 5,579 100 % 5,776 100 % Mission Systems U.S. government (1) 7,999 73 % 7,471 72 % 7,223 71 % International (2) 1,757 16 % 1,809 17 % 1,846 18 % Other customers 85 1 % 101 1 % 72 1 % Intersegment sales 1,054 10 % 1,015 10 % 993 10 % Mission Systems sales 10,895 100 % 10,396 100 % 10,134 100 % Space Systems U.S. government (1) 13,254 95 % 11,578 94 % 9,885 93 % International (2) 278 2 % 337 3 % 398 4 % Other customers 307 2 % 241 2 % 186 2 % Intersegment sales 107 1 % 119 1 % 139 1 % Space Systems sales 13,946 100 % 12,275 100 % 10,608 100 % Total U.S. government (1) 33,882 86 % 31,323 86 % 30,334 85 % International (2) 4,905 13 % 4,848 13 % 4,982 14 % Other customers 503 1 % 431 1 % 351 1 % Total Sales $ 39,290 100 % $ 36,602 100 % $ 35,667 100 % (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 2023 2022 2021 $ in millions $ % (1) $ % (1) $ % (1) Aeronautics Systems Cost-type $ 5,235 50 % $ 5,013 49 % $ 5,419 49 % Fixed-price 5,311 50 % 5,279 51 % 5,651 51 % Intersegment sales 240 239 189 Aeronautics Systems sales 10,786 10,531 11,259 Defense Systems Cost-type 1,591 31 % 1,497 31 % 1,739 35 % Fixed-price 3,473 69 % 3,276 69 % 3,248 65 % Intersegment sales 798 806 789 Defense Systems sales 5,862 5,579 5,776 Mission Systems Cost-type 4,116 42 % 3,622 39 % 3,139 34 % Fixed-price 5,725 58 % 5,759 61 % 6,002 66 % Intersegment sales 1,054 1,015 993 Mission Systems sales 10,895 10,396 10,134 Space Systems Cost-type 10,037 73 % 8,579 71 % 7,731 74 % Fixed-price 3,802 27 % 3,577 29 % 2,738 26 % Intersegment sales 107 119 139 Space Systems sales 13,946 12,275 10,608 Total Cost-type 20,979 53 % 18,711 51 % 18,028 51 % Fixed-price 18,311 47 % 17,891 49 % 17,639 49 % Total Sales $ 39,290 $ 36,602 $ 35,667 (1) Percentages calculated based on external customer sales. Sales by Geographic Region Year Ended December 31 2023 2022 2021 $ in millions $ % (2) $ % (2) $ % (2) Aeronautics Systems United States $ 9,167 87 % $ 8,948 87 % $ 9,649 87 % Asia/Pacific 607 6 % 708 7 % 896 8 % Europe 736 7 % 585 6 % 461 4 % All other (1) 36 — % 51 — % 64 1 % Intersegment sales 240 239 189 Aeronautics Systems sales 10,786 10,531 11,259 Defense Systems United States 3,573 71 % 3,415 71 % 3,670 74 % Asia/Pacific 419 8 % 454 10 % 465 9 % Europe 601 12 % 477 10 % 314 6 % All other (1) 471 9 % 427 9 % 538 11 % Intersegment sales 798 806 789 Defense Systems sales 5,862 5,579 5,776 Mission Systems United States 8,084 82 % 7,572 81 % 7,295 80 % Asia/Pacific 460 5 % 531 6 % 518 6 % Europe 959 10 % 977 10 % 1,004 10 % All other (1) 338 3 % 301 3 % 324 4 % Intersegment sales 1,054 1,015 993 Mission Systems sales 10,895 10,396 10,134 Space Systems United States 13,561 98 % 11,819 97 % 10,071 96 % Asia/Pacific 82 1 % 109 1 % 60 1 % Europe 159 1 % 213 2 % 328 3 % All other (1) 37 — % 15 — % 10 — % Intersegment sales 107 119 139 Space Systems sales 13,946 12,275 10,608 Total United States 34,385 88 % 31,754 87 % 30,685 86 % Asia/Pacific 1,568 4 % 1,802 5 % 1,939 5 % Europe 2,455 6 % 2,252 6 % 2,107 6 % All other (1) 882 2 % 794 2 % 936 3 % Total Sales $ 39,290 $ 36,602 $ 35,667 (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: Year Ended December 31 $ in millions 2023 2022 2021 Sales Operating Sales Operating Sales Operating Intersegment sales and operating income Aeronautics Systems $ 240 $ 22 $ 239 $ 27 $ 189 $ 19 Defense Systems 798 97 806 95 789 89 Mission Systems 1,054 167 1,015 167 993 150 Space Systems 107 12 119 14 139 14 Total $ 2,199 $ 298 $ 2,179 $ 303 $ 2,110 $ 272 Capital Expenditures and Depreciation and Amortization The following table presents capital expenditures and depreciation and amortization by segment: Year Ended December 31 $ in millions 2023 2022 2021 2023 2022 2021 Capital Expenditures Depreciation and Amortization Aeronautics Systems $ 504 $ 490 $ 465 $ 384 $ 322 $ 266 Defense Systems 111 110 133 107 101 91 Mission Systems 288 248 236 246 242 233 Space Systems 798 529 530 447 396 344 Corporate (1) 74 58 51 154 281 305 Total $ 1,775 $ 1,435 $ 1,415 $ 1,338 $ 1,342 $ 1,239 (1) Corporate amounts include the amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of PP&E acquired through business combinations as they are not considered part of management’s evaluation of segment operating performance. Assets Our chief operating decision maker does not use assets by segment to evaluate segment performance or allocate resources. Therefore, we do not disclose assets by segment. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings | $ 2,056 | $ 4,896 | $ 7,005 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Organization, Consolidation and Presentation of Financial Statements Disclosure | Basis of Presentation |
Accounting Estimates | Accounting Estimates The company’s consolidated financial statements are prepared in conformity with U.S. GAAP. 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 | 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. 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). 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 EAC adjustment. 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), un-priced change orders, REAs and contract claims. 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. At the request of the National Aeronautics and Space Administration (NASA), Space Systems submitted an engineering change proposal (ECP) during the fourth quarter of 2023 for scope increases and other aspects of the Habitation and Logistics Outpost (HALO) contract largely stemming from evolving Lunar Gateway architecture and mission requirements. The ECP addresses both work performed and work expected to be performed by the company resulting from scope changes previously approved by NASA, as well as changes NASA has requested the company to propose but has not yet directed the company to perform. The company has begun negotiating with NASA on these various changes and other aspects of the HALO contract. The company’s 2023 results include $100 million of unfavorable EAC adjustments on the HALO contract and reflect our current best estimate of the outcome of the ECP negotiations assuming the terms of the current contract; however, if the outcome is less favorable than what we have assumed, it could have an adverse effect on our financial position, results of operations and/or cash flows. 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 G&A costs, is charged against income in the period the loss is identified. |
General and Administrative Expenses | General and Administrative Expenses In accordance with applicable FAR and CAS requirements, most general management and corporate expenses incurred at the segment and corporate locations are considered allowable and allocable costs to our U.S. government contracts. 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 Development |
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 also recognized as a component of income tax expense. In accordance with applicable FAR and CAS requirements, current state and local income and franchise taxes are generally considered allowable and allocable costs to our U.S. government contracts and are, therefore, 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. 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. 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. |
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 Other, net in the consolidated statements of earnings and comprehensive income, while 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 using internal models based on observable market inputs such as forward rates, interest rates, our own credit risk and our counterparties’ credit risks. 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 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. Inventoried costs include direct production costs, factory and engineering overhead, production tooling costs, and allowable G&A. G&A included in Inventoried costs, net was $65 million and $59 million as of December 31, 2023 and 2022, respectively. Inventoried costs are classified as current assets and include amounts related to contracts having production cycles longer than one year due to the long-cycle nature of our business. |
Cash Surrender Value of Life Insurance Policies | 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 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment (PP&E) are depreciated over the estimated useful lives of individual assets. Machinery and other equipment is primarily depreciated using declining-balance methods. The other asset categories are generally depreciated using the straight-line method. Depreciation expense is generally an allowable and allocable cost in accordance with applicable FAR and CAS requirements and is 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 PP&E acquired through business combinations is recorded in unallocated corporate expense within operating income as such depreciation is not allocable to government contracts and not considered part of management’s evaluation of segment operating performance. Major classes of PP&E and their useful lives are as follows: December 31 Useful life in years, $ in millions Useful Life 2023 2022 Land and land improvements Up to 40 (1) $ 742 $ 741 Buildings and improvements Up to 45 3,605 3,272 Machinery and other equipment Up to 20 9,641 8,774 Capitalized software costs 3-5 553 524 Leasehold improvements Lease Term (2) 3,076 2,747 Property, plant and equipment, at cost 17,617 16,058 Accumulated depreciation (7,964) (7,258) Property, plant and equipment, net $ 9,653 $ 8,800 (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 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 allocable to government contracts and 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 |
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 generally 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 likely 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 OPB plans 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 applicable FAR and CAS requirements, 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 (the “FAS/CAS operating adjustment”) 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 any given reporting period. Actuarial gains and losses are immediately recognized in net periodic benefit cost for FAS through MTM (expense) benefit 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. 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 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, 2023: Asset Allocation Ranges Cash and cash equivalents 0% - 12% Global public equities 21% - 41% Fixed-income securities 35% - 55% Alternative investments 12% - 32% 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. 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. |
Stock Compensation | Stock Compensation The company’s stock compensation plans are classified as equity plans. 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), 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 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. 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. |
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 On November 27, 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Among other new disclosure requirements, ASU 2023-07 requires companies to disclose significant segment expenses that are regularly provided to the chief operating decision maker. ASU 2023-07 will be effective for annual periods beginning on January 1, 2024 and interim periods beginning on January 1, 2025. ASU 2023-07 must be applied retrospectively to all prior periods presented in the financial statements. We are evaluating the disclosure impact of ASU 2023-07; however, the standard will not have an impact on the company’s consolidated financial position, results of operations and/ or cash flows. On December 14, 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. We are evaluating the disclosure impact of ASU 2023-09; however, the standard will not have an impact on the company’s consolidated financial position, results of operations and/or cash flows. Other accounting standards updates adopted and/or issued, but not effective until after December 31, 2023, are not expected to have a material effect on the company’s consolidated financial position, annual results of operations and/or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 2021 Revenue $ 298 $ 447 $ 568 Operating income 84 360 527 Net earnings (1) 66 284 416 Diluted earnings per share (1) 0.43 1.83 2.59 (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, 2023 December 31, 2022 $ Change % Change Unbilled receivables, net $ 5,693 $ 5,983 $ (290) (5) % Advance payments and amounts in excess of costs incurred (4,193) (3,609) (584) 16 % Net contract assets $ 1,500 $ 2,374 $ (874) (37) % |
Property, Plant and Equipment | Major classes of PP&E and their useful lives are as follows: December 31 Useful life in years, $ in millions Useful Life 2023 2022 Land and land improvements Up to 40 (1) $ 742 $ 741 Buildings and improvements Up to 45 3,605 3,272 Machinery and other equipment Up to 20 9,641 8,774 Capitalized software costs 3-5 553 524 Leasehold improvements Lease Term (2) 3,076 2,747 Property, plant and equipment, at cost 17,617 16,058 Accumulated depreciation (7,964) (7,258) Property, plant and equipment, net $ 9,653 $ 8,800 (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, net of tax, are as follows: December 31 $ in millions 2023 2022 Cumulative translation adjustment $ (138) $ (161) Other, net 10 8 Total accumulated other comprehensive loss $ (128) $ (153) |
Earnings Per Share, Share Rep_2
Earnings Per Share, Share Repurchases and Dividends on Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 2021 December 4, 2018 $ 3,000 8.9 $ 337.18 October 2021 — — 8.4 January 25, 2021 $ 3,000 7.0 $ 431.05 April 2023 1.4 3.3 2.2 January 24, 2022 $ 2,000 1.9 $ 454.03 1.9 — — December 6, 2023 $ 2,500 — $ — — — — 3.3 3.3 10.6 (1) As a part of the 2023 Repurchase Program, the board of directors approved that the purchases under this program, and the authorization remaining under the 2022 program, be exclusive of brokerage commissions. Commissions paid are included for the 2018 and 2021 Repurchase Programs. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts receivable | Accounts receivable, net consisted of the following: December 31 $ in millions 2023 2022 Due from U.S. government (1) $ 1,184 $ 1,215 Due from international and other customers 276 304 Accounts receivable, gross 1,460 1,519 Allowance for expected credit losses (6) (8) Accounts receivable, net $ 1,454 $ 1,511 (1) Includes receivables due from the U.S. government associated with foreign military sales, which are contracted with and paid by the U.S. government. |
Unbilled Receivables, Net (Tabl
Unbilled Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Unbilled Receivables, Net [Abstract] | |
Unbilled receivables | Unbilled receivables, net consisted of the following: December 31 $ in millions 2023 2022 Due from U.S. government (1) Unbilled receivables $ 23,655 $ 23,304 Progress and performance-based payments received (18,321) (17,664) Total due from U.S. government 5,334 5,640 Due from international and other customers Unbilled receivables 1,720 1,822 Progress and performance-based payments received (1,344) (1,460) Total due from international and other customers 376 362 Unbilled receivables, net of progress and performance-based payments received 5,710 6,002 Allowance for expected credit losses (17) (19) Unbilled receivables, net $ 5,693 $ 5,983 (1) |
Inventoried Costs, Net (Tables)
Inventoried Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventoried Costs | Inventoried costs, net consisted of the following: December 31 $ in millions 2023 2022 Contracts in process $ 647 $ 574 Product inventory: Raw materials 338 325 Work in process 72 31 Finished goods 52 48 Total product inventory $ 462 $ 404 Inventoried costs, net $ 1,109 $ 978 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income tax expense | Federal and foreign income tax expense consisted of the following: Year Ended December 31 $ in millions 2023 2022 2021 Federal income tax expense: Current $ 949 $ 1,289 $ 1,398 Deferred (670) (353) 518 Total federal income tax expense 279 936 1,916 Foreign income tax expense: Current 15 3 6 Deferred (4) 1 11 Total foreign income tax expense 11 4 17 Total federal and foreign income tax expense $ 290 $ 940 $ 1,933 |
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 2023 2022 2021 Income tax expense at statutory rate $ 493 21.0 % $ 1,226 21.0 % $ 1,877 21.0 % Research credit (210) (8.9) (177) (3.0) (192) (2.2) Foreign derived intangible income (63) (2.7) (66) (1.1) (50) (0.6) IT services divestiture nondeductible goodwill — — — — 250 2.8 Settlements with taxing authorities (1) — (86) (1.5) — — Net interest expense 69 2.9 22 0.4 17 0.2 Other, net 2 0.1 21 0.3 31 0.4 Total federal and foreign income taxes $ 290 12.4 % $ 940 16.1 % $ 1,933 21.6 % |
Unrecognized tax benefit rollforward | The change in unrecognized tax benefits during 2023, 2022 and 2021, excluding interest, is as follows: December 31 $ in millions 2023 2022 2021 Unrecognized tax benefits at beginning of the year $ 1,663 $ 1,630 $ 1,481 Additions based on tax positions related to the current year 276 262 355 Additions for tax positions of prior years 254 6 47 Reductions for tax positions of prior years (9) (124) (251) Settlements with taxing authorities (189) (110) (1) Other, net (1) (1) (1) Net change in unrecognized tax benefits 331 33 149 Unrecognized tax benefits at end of the year $ 1,994 $ 1,663 $ 1,630 |
Components of deferred tax assets and liabilities | The tax effects of 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 2023 2022 Deferred Tax Assets Retiree benefits $ 115 $ 117 Capitalized research and experimental expenditures 3,380 1,671 Accrued employee compensation 400 378 Provisions for accrued liabilities 509 65 Inventory 279 484 Stock-based compensation 35 37 Operating lease liabilities 575 556 Tax credits 557 464 Other 215 144 Gross deferred tax assets 6,065 3,916 Less: valuation allowance (517) (428) Net deferred tax assets 5,548 3,488 Deferred Tax Liabilities Goodwill 534 534 Purchased intangibles 83 98 Property, plant and equipment, net 805 854 Operating lease right-of-use assets 563 545 Contract accounting differences 2,437 1,348 Other 106 79 Deferred tax liabilities 4,528 3,458 Total net deferred tax assets $ 1,020 $ 30 |
Goodwill and Other Purchased _2
Goodwill and Other Purchased Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 and 2023, were as follows: $ in millions Aeronautics Systems Defense Systems Mission Systems Space Systems Total Balance as of December 31, 2021 $ 3,467 $ 3,412 $ 5,881 $ 4,755 $ 17,515 Other (1) — 1 — — 1 Balance as of December 31, 2022 $ 3,467 $ 3,413 $ 5,881 $ 4,755 $ 17,516 Other (1) — 1 — — 1 Balance as of December 31, 2023 $ 3,467 $ 3,414 $ 5,881 $ 4,755 $ 17,517 (1) 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 2023 2022 Gross customer-related and other intangible assets $ 3,365 $ 3,364 Less accumulated amortization (3,060) (2,980) Net customer-related and other intangible assets $ 305 $ 384 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of December 31, 2023, the expected future amortization of purchased intangibles for each of the next five years is as follows: $ in millions 2024 $ 57 2025 45 2026 42 2027 31 2028 31 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 $ in millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial Assets Marketable securities $ 321 $ 1 $ 8 $ 330 $ 310 $ 1 $ 8 $ 319 Marketable securities valued using NAV 9 13 Total marketable securities 321 1 8 339 310 1 8 332 Derivatives — 5 — 5 — 7 — 7 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consists of the following: $ in millions December 31 2023 2022 Fixed-rate notes and debentures, maturing in Interest rate 2023 3.25% $ — $ 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% 750 750 2031 7.75% 466 466 2033 4.70% 1,000 — 2040 5.05% - 5.15% 800 800 2043 4.75% 950 950 2045 3.85% 600 600 2047 4.03% 2,250 2,250 2050 5.25% 1,000 1,000 2053 4.95% 1,000 — Other Various 332 293 Debt issuance costs (69) (59) Total long-term debt 13,856 12,877 Less: current portion (1) 70 1,072 Long-term debt, net of current portion $ 13,786 $ 11,805 (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, 2023, are as follows: $ in millions Year Ending December 31 2024 $ 70 2025 1,582 2026 530 2027 754 2028 2,043 Thereafter 8,963 Total principal payments 13,942 Unamortized premium on long-term debt, net of discount (17) Debt issuance costs (69) Total long-term debt $ 13,856 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022: $ in millions Accrued Costs (1)(2) Reasonably Possible Future Costs in Excess of Accrued Costs (2) Deferred Costs (3) December 31, 2023 $ 584 $ 387 $ 518 December 31, 2022 565 353 486 (1) As of December 31, 2023, $223 million is recorded in Other current liabilities and $361 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, 2023, $206 million is deferred in Prepaid expenses and other current assets and $312 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, 2023 | |
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 2023 2022 2021 2023 2022 2021 Components of net periodic benefit cost (benefit) Service cost $ 236 $ 367 $ 414 $ 5 $ 9 $ 16 Interest cost 1,568 1,136 1,054 67 47 53 Expected return on plan assets (2,098) (2,641) (2,512) (85) (110) (105) Amortization of prior service credit — — (9) (1) (1) (1) Mark-to-market expense (benefit) 442 (1,262) (1,921) (20) 30 (434) Other — — (1) — — — Net periodic benefit cost (benefit) $ 148 $ (2,400) $ (2,975) $ (34) $ (25) $ (471) |
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, 2021, 2022 and 2023: $ in millions Pension Benefits Medical and Life Benefits Total Changes in unamortized prior service credit (cost) Amortization of prior service credit (cost) $ 9 $ 1 $ 10 Tax expense (2) — (2) Change in unamortized prior service credit (cost) – 2021 7 1 8 Amortization of prior service credit (cost) — 1 1 Tax expense — — — Change in unamortized prior service credit (cost) – 2022 — 1 1 Amortization of prior service credit (cost) — 1 1 Tax expense — — — Change in unamortized prior service credit (cost) – 2023 $ — $ 1 $ 1 |
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 2023 2022 2023 2022 Plan Assets Fair value of plan assets at beginning of year $ 28,920 $ 36,236 $ 1,226 $ 1,588 Net gain (loss) on plan assets 3,104 (5,422) 146 (257) Employer contributions 105 101 34 35 Participant contributions 6 7 27 24 Benefits paid (1,894) (1,973) (159) (164) Other 10 (29) — — Fair value of plan assets at end of year 30,251 28,920 1,274 1,226 Projected Benefit Obligation Projected benefit obligation at beginning of year 29,067 38,888 1,264 1,685 Service cost 236 367 5 9 Interest cost 1,568 1,136 67 47 Participant contributions 6 7 27 24 Actuarial loss (gain) 1,447 (9,325) 42 (337) Benefits paid (1,894) (1,973) (159) (164) Other 13 (33) — — Projected benefit obligation at end of year 30,443 29,067 1,246 1,264 Funded status $ (192) $ (147) $ 28 $ (38) The increase in the fair value of our plan assets for the year ended December 31, 2023 was principally driven by net plan asset returns of 11.1 percent, partially offset by $2.1 billion of benefit payments. The increase in our projected benefit obligation for the year ended December 31, 2023, was primarily driven by $1.6 billion of interest cost and a 39 basis point decrease in the discount rate from year end 2022, partially offset by $2.1 billion of benefit payments. Pension Benefits Medical and Life Benefits $ in millions 2023 2022 2023 2022 Classification of amounts recognized in the consolidated statements of financial position Non-current assets $ 1,042 $ 982 $ 289 $ 240 Current liability (178) (177) (27) (42) Non-current liability (1,056) (952) (234) (236) |
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 2023 2022 Projected benefit obligation $ 1,152 $ 1,126 Accumulated benefit obligation 1,143 1,117 Fair value of plan assets 3 2 |
Weighted-average plan assumptions | On a weighted-average basis, the following assumptions were used to determine benefit obligations at December 31 of each year and net periodic benefit cost for the following year: Pension Benefits Medical and Life Benefits 2023 2022 2021 2023 2022 2021 Discount rate 5.15 % 5.54 % 2.98 % 5.20 % 5.57 % 2.93 % Expected long-term return on plan assets 7.50 % 7.50 % 7.50 % 7.12 % 7.23 % 7.19 % Initial cash balance crediting rate assumed for the next year 4.02 % 3.96 % 2.25 % Rate to which the cash balance crediting rate is assumed to increase/decrease (the ultimate rate) 4.02 % 3.88 % 2.25 % Year that the cash balance crediting rate reaches the ultimate rate 2029 2028 2027 Rate of compensation increase 3.00 % 3.00 % 3.00 % Initial health care cost trend rate assumed for the next year 6.20 % 6.50 % 5.30 % Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % 5.00 % Year that the health care cost trend rate reaches the ultimate trend rate 2028 2028 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, 2023: Asset Allocation Ranges Cash and cash equivalents 0% - 12% Global public equities 21% - 41% Fixed-income securities 35% - 55% Alternative investments 12% - 32% The table below provides the fair values of the company’s pension and Voluntary Employees’ Beneficiary Association (VEBA) trust plan assets at December 31, 2023 and 2022, 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, 2023 and 2022, there were no investments expected to be sold at a value materially different than NAV. Level 1 Level 2 Level 3 Total $ in millions 2023 2022 2023 2022 2023 2022 2023 2022 Asset category Cash and cash equivalents $ 85 $ 115 $ 830 $ 1,076 $ 915 $ 1,191 U.S. equities 1,712 2,138 1 1 1,713 2,139 International equities 1,506 1,784 1,506 1,784 Fixed-income securities U.S. Treasuries — 22 3,890 2,977 3,890 2,999 U.S. Government Agency 124 145 124 145 Non-U.S. Government 176 172 176 172 Corporate debt 74 28 4,432 4,717 4,506 4,745 Asset backed 436 353 436 353 High yield debt 13 12 20 19 33 31 Bank loans 15 13 15 13 Other assets 64 43 2 $ 2 $ 2 109 4 Investments valued using NAV as a practical expedient U.S. equities 1,294 1,043 International equities 3,972 3,904 Fixed-income funds 4,057 2,569 Hedge funds 38 44 Opportunistic investments 3,176 2,983 Private equity funds 3,466 3,299 Real estate funds 2,123 2,753 Payables, net (24) (25) Fair value of plan assets at the end of the year $ 3,454 $ 4,099 $ 9,967 $ 9,475 $ 2 $ 2 $ 31,525 $ 30,146 |
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, 2023: $ in millions Pension Plans Medical and Life Plans Total Year Ending December 31 2024 $ 2,012 $ 134 $ 2,146 2025 2,058 137 2,195 2026 2,095 131 2,226 2027 2,129 107 2,236 2028 2,151 103 2,254 2029 through 2033 10,820 455 11,275 |
Stock Compensation Plans and _2
Stock Compensation Plans and Other Compensation Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Award Rollforward Activity | Stock award activity for the years ended December 31, 2021, 2022 and 2023, 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, 2021 603 $ 311 1.4 Granted 304 296 Vested (269) 286 Forfeited (58) 318 Outstanding at December 31, 2021 580 $ 314 1.4 Granted 238 397 Vested (226) 327 Forfeited (31) 320 Outstanding at December 31, 2022 561 $ 344 1.4 Granted 216 478 Vested (249) 315 Forfeited (29) 373 Outstanding at December 31, 2023 499 $ 417 1.3 |
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 2023 2022 2021 Minimum aggregate payout amount $ 34 $ 32 $ 31 Maximum aggregate payout amount 192 183 178 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Total lease cost is comprised of the following: Year Ended December 31 $ in millions 2023 2022 2021 Operating lease cost $ 358 $ 332 $ 315 Variable lease cost 48 35 31 Short-term lease cost 69 51 80 Total lease cost $ 475 $ 418 $ 426 |
Supplemental Balance Sheet Disclosures [Text Block] | Supplemental operating lease balance sheet information consists of the following: Year Ended December 31 $ in millions 2023 2022 Operating lease right-of-use assets $ 1,818 $ 1,811 Other current liabilities 300 299 Operating lease liabilities 1,892 1,824 Total operating lease liabilities $ 2,192 $ 2,123 |
Other Supplemental Lease Information [Table Text Block] | Other supplemental operating lease information consists of the following: Year Ended December 31 $ in millions 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 341 $ 316 Right-of-use assets obtained in exchange for new lease liabilities 314 438 Weighted average remaining lease term 11.0 years 11.2 years Weighted average discount rate 3.9 % 3.4 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities as of December 31, 2023 are as follows: $ in millions Year Ending December 31 2024 $ 363 2025 354 2026 307 2027 252 2028 222 Thereafter 1,235 Total lease payments 2,733 Less: imputed interest (541) Present value of operating lease liabilities $ 2,192 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 2021 Sales Aeronautics Systems $ 10,786 $ 10,531 $ 11,259 Defense Systems 5,862 5,579 5,776 Mission Systems 10,895 10,396 10,134 Space Systems 13,946 12,275 10,608 Intersegment eliminations (2,199) (2,179) (2,110) Total sales 39,290 36,602 35,667 Operating income Aeronautics Systems (473) 1,116 1,093 Defense Systems 710 664 696 Mission Systems 1,609 1,618 1,579 Space Systems 1,212 1,158 1,121 Intersegment eliminations (298) (303) (272) Total segment operating income 2,760 4,253 4,217 FAS/CAS operating adjustment (82) (200) 130 Unallocated corporate (expense) income (141) (452) 1,304 Total operating income $ 2,537 $ 3,601 $ 5,651 Other (expense) income Interest expense (545) (506) (556) Non-operating FAS pension benefit 530 1,505 1,469 Mark-to-market pension and OPB (expense) benefit (422) 1,232 2,355 Other, net 246 4 19 Earnings before income taxes $ 2,346 $ 5,836 $ 8,938 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Sales by Customer Type Year Ended December 31 2023 2022 2021 $ in millions $ % (3) $ % (3) $ % (3) Aeronautics Systems U.S. government (1) $ 9,132 85 % $ 8,930 85 % $ 9,631 85 % International (2) 1,379 13 % 1,344 13 % 1,421 13 % Other customers 35 — % 18 — % 18 — % Intersegment sales 240 2 % 239 2 % 189 2 % Aeronautics Systems sales 10,786 100 % 10,531 100 % 11,259 100 % Defense Systems U.S. government (1) 3,497 60 % 3,344 61 % 3,595 62 % International (2) 1,491 25 % 1,358 24 % 1,317 23 % Other customers 76 1 % 71 1 % 75 1 % Intersegment sales 798 14 % 806 14 % 789 14 % Defense Systems sales 5,862 100 % 5,579 100 % 5,776 100 % Mission Systems U.S. government (1) 7,999 73 % 7,471 72 % 7,223 71 % International (2) 1,757 16 % 1,809 17 % 1,846 18 % Other customers 85 1 % 101 1 % 72 1 % Intersegment sales 1,054 10 % 1,015 10 % 993 10 % Mission Systems sales 10,895 100 % 10,396 100 % 10,134 100 % Space Systems U.S. government (1) 13,254 95 % 11,578 94 % 9,885 93 % International (2) 278 2 % 337 3 % 398 4 % Other customers 307 2 % 241 2 % 186 2 % Intersegment sales 107 1 % 119 1 % 139 1 % Space Systems sales 13,946 100 % 12,275 100 % 10,608 100 % Total U.S. government (1) 33,882 86 % 31,323 86 % 30,334 85 % International (2) 4,905 13 % 4,848 13 % 4,982 14 % Other customers 503 1 % 431 1 % 351 1 % Total Sales $ 39,290 100 % $ 36,602 100 % $ 35,667 100 % (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 2023 2022 2021 $ in millions $ % (1) $ % (1) $ % (1) Aeronautics Systems Cost-type $ 5,235 50 % $ 5,013 49 % $ 5,419 49 % Fixed-price 5,311 50 % 5,279 51 % 5,651 51 % Intersegment sales 240 239 189 Aeronautics Systems sales 10,786 10,531 11,259 Defense Systems Cost-type 1,591 31 % 1,497 31 % 1,739 35 % Fixed-price 3,473 69 % 3,276 69 % 3,248 65 % Intersegment sales 798 806 789 Defense Systems sales 5,862 5,579 5,776 Mission Systems Cost-type 4,116 42 % 3,622 39 % 3,139 34 % Fixed-price 5,725 58 % 5,759 61 % 6,002 66 % Intersegment sales 1,054 1,015 993 Mission Systems sales 10,895 10,396 10,134 Space Systems Cost-type 10,037 73 % 8,579 71 % 7,731 74 % Fixed-price 3,802 27 % 3,577 29 % 2,738 26 % Intersegment sales 107 119 139 Space Systems sales 13,946 12,275 10,608 Total Cost-type 20,979 53 % 18,711 51 % 18,028 51 % Fixed-price 18,311 47 % 17,891 49 % 17,639 49 % Total Sales $ 39,290 $ 36,602 $ 35,667 (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 2023 2022 2021 $ in millions $ % (2) $ % (2) $ % (2) Aeronautics Systems United States $ 9,167 87 % $ 8,948 87 % $ 9,649 87 % Asia/Pacific 607 6 % 708 7 % 896 8 % Europe 736 7 % 585 6 % 461 4 % All other (1) 36 — % 51 — % 64 1 % Intersegment sales 240 239 189 Aeronautics Systems sales 10,786 10,531 11,259 Defense Systems United States 3,573 71 % 3,415 71 % 3,670 74 % Asia/Pacific 419 8 % 454 10 % 465 9 % Europe 601 12 % 477 10 % 314 6 % All other (1) 471 9 % 427 9 % 538 11 % Intersegment sales 798 806 789 Defense Systems sales 5,862 5,579 5,776 Mission Systems United States 8,084 82 % 7,572 81 % 7,295 80 % Asia/Pacific 460 5 % 531 6 % 518 6 % Europe 959 10 % 977 10 % 1,004 10 % All other (1) 338 3 % 301 3 % 324 4 % Intersegment sales 1,054 1,015 993 Mission Systems sales 10,895 10,396 10,134 Space Systems United States 13,561 98 % 11,819 97 % 10,071 96 % Asia/Pacific 82 1 % 109 1 % 60 1 % Europe 159 1 % 213 2 % 328 3 % All other (1) 37 — % 15 — % 10 — % Intersegment sales 107 119 139 Space Systems sales 13,946 12,275 10,608 Total United States 34,385 88 % 31,754 87 % 30,685 86 % Asia/Pacific 1,568 4 % 1,802 5 % 1,939 5 % Europe 2,455 6 % 2,252 6 % 2,107 6 % All other (1) 882 2 % 794 2 % 936 3 % Total Sales $ 39,290 $ 36,602 $ 35,667 (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: Year Ended December 31 $ in millions 2023 2022 2021 Sales Operating Sales Operating Sales Operating Intersegment sales and operating income Aeronautics Systems $ 240 $ 22 $ 239 $ 27 $ 189 $ 19 Defense Systems 798 97 806 95 789 89 Mission Systems 1,054 167 1,015 167 993 150 Space Systems 107 12 119 14 139 14 Total $ 2,199 $ 298 $ 2,179 $ 303 $ 2,110 $ 272 |
Additional information by segment | The following table presents capital expenditures and depreciation and amortization by segment: Year Ended December 31 $ in millions 2023 2022 2021 2023 2022 2021 Capital Expenditures Depreciation and Amortization Aeronautics Systems $ 504 $ 490 $ 465 $ 384 $ 322 $ 266 Defense Systems 111 110 133 107 101 91 Mission Systems 288 248 236 246 242 233 Space Systems 798 529 530 447 396 344 Corporate (1) 74 58 51 154 281 305 Total $ 1,775 $ 1,435 $ 1,415 $ 1,338 $ 1,342 $ 1,239 (1) Corporate amounts include the amortization of purchased intangible assets and the additional depreciation expense related to the step-up in fair value of PP&E acquired through business combinations as they are not considered part of management’s evaluation of segment operating performance. Assets Our chief operating decision maker does not use assets by segment to evaluate segment performance or allocate resources. Therefore, we do not disclose assets by segment. |
Amounts in Paragraphs - Summary
Amounts in Paragraphs - Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 30, 2021 | |
Summary of Significant Accounting Policies (Amounts in paragraphs) | |||||
Research and development expenses | $ 1,200 | $ 1,200 | $ 1,100 | ||
Research and Development as a Percent of Sales | 3% | 3.30% | 3.20% | ||
Inventory for Long-term Contracts or Programs, General and Administrative Costs Included in Inventory | $ 65 | $ 59 | |||
Cash surrender value of life insurance | $ 399 | 367 | |||
Stock plans, vesting period | 3 years | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 3,400 | ||||
Pre-tax gain on sale of business | $ 2,000 | ||||
Revenue from Sale of Equipment to a Customer | $ 444 | ||||
Proceeds from sale of equipment to a customer | $ 0 | 155 | 84 | ||
Capital Expenditures Incurred but Not yet Paid | $ 75 | $ 113 | $ 91 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Property, Plant and Equipment (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 17,617 | $ 16,058 |
Accumulated depreciation | (7,964) | (7,258) |
Property, plant, and equipment, net | 9,653 | 8,800 |
Gain (Loss) on Disposition of Assets | 96 | |
Land and land improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 742 | 741 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 3,605 | 3,272 |
Machinery and other equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 9,641 | 8,774 |
Capitalized software costs | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 553 | 524 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 46 | |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 3,076 | 2,747 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | $ 55 | 96 |
Land | ||
Property, Plant and Equipment | ||
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | $ 155 | |
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 Non-cash Investing and Financing Activities (Details 3) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Noncash Investing and Financing Activities Related Text | During the year ended December 31, 2022, the company acquired $46 million of internal use software through long-term financing directly with the supplier. The software was recorded in PP&E as a non-cash investing activity and the related liability was recorded in long-term debt as a non-cash financing activity. During the years ended December 31, 2023 and 2022, the company received lease incentives for landlord funded leasehold improvements of $55 million and $96 million, respectively, related to Space Systems real estate leases, which were recorded in PP&E and included in non-cash investing activities. On December 28, 2022 the company acquired certain leased land in exchange for company-owned land, which had been used previously for production-related activities at Space Systems. The exchange was accounted for as a nonmonetary transaction, and the acquired land, valued at approximately $155 million, was recorded in PP&E as a non-cash investing activity. The transaction resulted in a $96 million gain, which was reflected in operating costs and expenses in the consolidated statements of earnings and comprehensive income.Non-cash investing activities also include capital expenditures incurred but not yet paid of $75 million, $113 million and $91 million as of December 31, 2023, 2022 and 2021, respectively. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Accumulated Other Comprehensive Income (Loss) (Details 4) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (138) | $ (161) |
Accumulated Other Comprehensive Income (Loss), Other Components, Net of Tax | 10 | 8 |
Total accumulated other comprehensive loss | $ (128) | $ (153) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Contract Estimates (Details 5) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Accounting Estimate [Line Items] | ||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 298 | $ 447 | $ 568 | |
Operating income | 2,537 | 3,601 | 5,651 | |
Net earnings | $ 2,056 | $ 4,896 | $ 7,005 | |
Diluted earnings per share | $ 13.53 | $ 31.47 | $ 43.54 | |
B-21 Charge | $ 1,559 | $ 0 | $ 0 | |
Space Systems | ||||
Change in Accounting Estimate [Line Items] | ||||
Inventory Write-down | 43 | 45 | ||
Contracts Accounted for under Percentage of Completion [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Operating income | 84 | 360 | 527 | |
Net earnings | $ 66 | $ 284 | $ 416 | |
Diluted earnings per share | $ 0.43 | $ 1.83 | $ 2.59 | |
F-35 Program | Contracts Accounted for under Percentage of Completion [Member] | Aeronautics Systems | ||||
Change in Accounting Estimate [Line Items] | ||||
Operating income | $ (135) | |||
B-21 Program LRIP Options [Member] | Contracts Accounted for under Percentage of Completion [Member] | Aeronautics Systems | ||||
Change in Accounting Estimate [Line Items] | ||||
Operating income | $ (143) | |||
B-21 Charge | (1,560) | |||
Inventory Write-down | 45 | |||
Loss Contingency Accrual | 1,370 | $ 1,370 | ||
Loss Contingency, Accrual, Current | 631 | 631 | ||
Loss Contingency, Accrual, Noncurrent | $ 740 | 740 | ||
B-21 Program EMD Phase | Contracts Accounted for under Percentage of Completion [Member] | Aeronautics Systems | ||||
Change in Accounting Estimate [Line Items] | ||||
Operating income | $ 133 | |||
HALO Program [Member] | Contracts Accounted for under Percentage of Completion [Member] | Space Systems | ||||
Change in Accounting Estimate [Line Items] | ||||
Operating income | $ (100) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Backlog and Contract Assets and Liabilities (Details 6) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 84,200 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | Of our December 31, 2023 backlog, we expect to recognize approximately 40 percent as revenue over the next 12 months and 65 percent as revenue over the next 24 months, with the remainder to be recognized thereafter. | |||
Unbilled Receivables, Current | $ 5,693 | $ 5,983 | ||
Increase (Decrease) in Contract with Customer, Asset | $ (290) | |||
Percent increase (decrease) in Unbilled Receivables | (5.00%) | |||
Advance payments and billings in excess of costs incurred | $ (4,193) | (3,609) | ||
Amount of decrease (increase) in Contract with Customer, Liability, Current | $ (584) | |||
Percent decrease (increase) in Contract with Customer, Liability, Current | 16% | |||
Net contract assets | $ 1,500 | 2,374 | ||
Amount of increase (decrease) in net contract assets (liabilities) | $ (874) | |||
Percent increase (decrease) in net contract assets (liabilities) | (37.00%) | |||
Contract with Customer, Liability, Revenue Recognized | $ 3,100 | $ 2,400 | $ 2,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Backlog Reduction Due to Contract Termination | $ 2,000 | |||
Revenue, Remaining Performance Obligation, Amount | $ 84,200 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Remaining Performance Obligation, Percentage | 40% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Remaining Performance Obligation, Percentage | 65% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 24 months |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Sale of Minority Investment (Details 7) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from Sale, Maturity and Collection of Investments | $ 197 | $ 0 | $ 0 | |
Australia, Dollars | ||||
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from Sale, Maturity and Collection of Investments | $ 235 | |||
United States of America, Dollars | ||||
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from Sale, Maturity and Collection of Investments | $ 157 | |||
Gain on Sale of Investments | $ 97 |
Disposition of IT and Mission S
Disposition of IT and Mission Support Services (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Jan. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Group | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 3,400 | |
Pre-tax gain on sale of business | $ 2,000 | |
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax | 20 | |
Revenue from Individually Significant Component Disposed of or Held-for-Sale, Excluding Discontinued Operations, Attributable to Parent, before Income Tax | $ 162 |
Earnings Per Share, Dividends a
Earnings Per Share, Dividends and Dilution (Details 1) - $ / shares shares in Millions | 1 Months Ended | 12 Months Ended | |||||
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0.5 | 0.7 | 0.6 | ||||
Common stock dividend (in dollars per share) | $ 1.87 | $ 1.73 | $ 1.57 | $ 1.45 | $ 7.34 | $ 6.76 | $ 6.16 |
Increase (Decrease) in Stock Dividend, Percentage | 8% | 10% | 8% |
Earnings Per Share, Share Rep_3
Earnings Per Share, Share Repurchases (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | 23 Months Ended | 34 Months Ended | 35 Months Ended | ||||||||||||||
Apr. 27, 2023 | Apr. 06, 2023 | Feb. 02, 2023 | Feb. 01, 2022 | Nov. 02, 2021 | Oct. 01, 2021 | Feb. 01, 2021 | Dec. 31, 2023 | Apr. 25, 2023 | Feb. 01, 2022 | Jun. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 06, 2023 | Jan. 24, 2022 | Jan. 25, 2021 | Dec. 04, 2018 | |
Stock Repurchase [Line Items] | |||||||||||||||||||||
Shares Repurchased | 3,300 | 3,300 | 10,600 | ||||||||||||||||||
Share Repurchases - Notes to Table [Abstract] | |||||||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 3,600 | $ 3,600 | $ 3,600 | $ 3,600 | |||||||||||||||||
January 2021 Share Repurchase Program [Member] | |||||||||||||||||||||
Stock Repurchase [Line Items] | |||||||||||||||||||||
Amount Authorized | $ 3,000 | ||||||||||||||||||||
Shares Retired | 7,000 | ||||||||||||||||||||
Average Price Per Share | $ 431.05 | ||||||||||||||||||||
2021 Repurchase Program - Completion Date | April 2023 | ||||||||||||||||||||
Shares Repurchased | 1,400 | 3,300 | 2,200 | ||||||||||||||||||
January 2022 Share Repurchase Program | |||||||||||||||||||||
Stock Repurchase [Line Items] | |||||||||||||||||||||
Amount Authorized | $ 2,000 | ||||||||||||||||||||
Shares Retired | 1,900 | ||||||||||||||||||||
Average Price Per Share | $ 454.03 | ||||||||||||||||||||
Shares Repurchased | 1,900 | 0 | 0 | ||||||||||||||||||
Shares repurchased amount | $ 900 | ||||||||||||||||||||
Share Repurchases - Notes to Table [Abstract] | |||||||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,100 | $ 1,100 | $ 1,100 | $ 1,100 | |||||||||||||||||
December 2018 Share Repurchase Program | |||||||||||||||||||||
Stock Repurchase [Line Items] | |||||||||||||||||||||
Amount Authorized | $ 3,000 | ||||||||||||||||||||
Shares Retired | 8,900 | ||||||||||||||||||||
Average Price Per Share | $ 337.18 | ||||||||||||||||||||
2018 Repurchase Program - Completion Date | October 2021 | ||||||||||||||||||||
Shares Repurchased | 0 | 0 | 8,400 | ||||||||||||||||||
December 2023 Share Repurchase Program | |||||||||||||||||||||
Stock Repurchase [Line Items] | |||||||||||||||||||||
Amount Authorized | $ 2,500 | ||||||||||||||||||||
Shares Retired | 0 | ||||||||||||||||||||
Average Price Per Share | $ 0 | ||||||||||||||||||||
Shares Repurchased | 0 | 0 | 0 | ||||||||||||||||||
Q1'23 ASR [Member] | |||||||||||||||||||||
Accelerated Share Repurchases [Line Items] | |||||||||||||||||||||
Accelerated Share Repurchases, Cash or Stock Settlement | 500 million | ||||||||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 500 | ||||||||||||||||||||
Accelerated Share Repurchase Initial Receipt (Shares) | 900 | ||||||||||||||||||||
Common stock repurchased | $ 400 | ||||||||||||||||||||
Accelerated Share Repurchases, Adjustment to Recorded Amount | $ 100 | ||||||||||||||||||||
Accelerated Share Repurchase Final Receipt Shares | 200 | ||||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 458.28 | ||||||||||||||||||||
Q1'21 ASR [Member] | |||||||||||||||||||||
Accelerated Share Repurchases [Line Items] | |||||||||||||||||||||
Accelerated Share Repurchases, Cash or Stock Settlement | 2.0 billion | ||||||||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 2,000 | ||||||||||||||||||||
Accelerated Share Repurchase Initial Receipt (Shares) | 5,900 | ||||||||||||||||||||
Common stock repurchased | $ 1,700 | ||||||||||||||||||||
Accelerated Share Repurchases, Adjustment to Recorded Amount | $ 300 | ||||||||||||||||||||
Accelerated Share Repurchase Final Receipt Shares | 200 | ||||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 327.29 | ||||||||||||||||||||
Q4'21 ASR [Member] | |||||||||||||||||||||
Accelerated Share Repurchases [Line Items] | |||||||||||||||||||||
Accelerated Share Repurchases, Cash or Stock Settlement | 500 million | ||||||||||||||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 500 | ||||||||||||||||||||
Accelerated Share Repurchase Initial Receipt (Shares) | 1,200 | ||||||||||||||||||||
Common stock repurchased | $ 425 | ||||||||||||||||||||
Accelerated Share Repurchases, Adjustment to Recorded Amount | $ 75 | ||||||||||||||||||||
Accelerated Share Repurchase Final Receipt Shares | 100 | 100 | |||||||||||||||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 374.79 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable, gross | $ 1,460 | $ 1,519 |
Allowance for expected credit losses | (6) | (8) |
Accounts receivable, net | 1,454 | 1,511 |
US Government [Member] | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable, gross | 1,184 | 1,215 |
International and Other Customers [Member] | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable, gross | $ 276 | $ 304 |
Unbilled Receivables, Net (Deta
Unbilled Receivables, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unbilled receivable, net of progress and performance-based payments received | $ 5,710 | $ 6,002 |
Allowance for expected credit losses | (17) | (19) |
Unbilled receivables, net | 5,693 | 5,983 |
US Government [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unbilled receivables | 23,655 | 23,304 |
Government Contract Receivable, Progress Payment Offset | 18,321 | 17,664 |
Unbilled receivable, net of progress and performance-based payments received | 5,334 | 5,640 |
International and Other Customers [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unbilled receivables | 1,720 | 1,822 |
Progress and performance-based payments received | (1,344) | (1,460) |
Unbilled receivable, net of progress and performance-based payments received | $ 376 | $ 362 |
Inventoried Costs, Net (Details
Inventoried Costs, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Inventory [Line Items] | ||
Inventory for Long-Term Contracts or Programs, Gross | $ 647 | $ 574 |
Inventory, Raw Materials, Net of Reserves | 338 | 325 |
Contracts in process | 72 | 31 |
Inventory, Finished Goods, Net of Reserves | 52 | 48 |
Product inventory: | 462 | 404 |
Inventoried costs, net | 1,109 | 978 |
Space Systems | ||
Inventory [Line Items] | ||
Inventory Write-down | $ 43 | $ 45 |
Income Taxes Federal and Foreig
Income Taxes Federal and Foreign Income Tax Expense (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes on Continuing Operations (Table Amounts) | |||
Current federal income tax expense (benefit) | $ 949 | $ 1,289 | $ 1,398 |
Deferred federal income tax expense (benefit) | (670) | (353) | 518 |
Total federal income tax expense | 279 | 936 | 1,916 |
Current foreign income tax expense (benefit) | 15 | 3 | 6 |
Deferred foreign income tax expense (benefit) | (4) | 1 | 11 |
Total foreign income tax expense | 11 | 4 | 17 |
Total federal and foreign income tax expense | $ 290 | $ 940 | $ 1,933 |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate Reconciliation (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Reconciliation (Table Amounts) [Abstract] | |||
Income tax expense at statutory rate | $ 493 | $ 1,226 | $ 1,877 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% |
Research credit | $ (210) | $ (177) | $ (192) |
Research credit, Percent | (8.90%) | (3.00%) | (2.20%) |
Effective Income Tax Rate Reconciliation, FDII, Percent | (2.70%) | (1.10%) | (0.60%) |
Effective Income Tax Rate Reconciliation, FDII, Amount | $ (63) | $ (66) | $ (50) |
IT services divestiture nondeductible goodwill | $ 0 | $ 0 | $ 250 |
IT services divestiture nondeductible goodwill, Percent | 0% | 0% | 2.80% |
Income Tax Reconciliation Deductions Taxing Authorities Settlements | $ (1) | $ (86) | $ 0 |
Income Tax Reconciliation Deductions Taxing Authorities Settlements, Percent | 0% | (1.50%) | 0% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 69 | $ 22 | $ 17 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 2.90% | 0.40% | 0.20% |
Other, net | $ 2 | $ 21 | $ 31 |
Other net, Percent | 0.10% | 0.30% | 0.40% |
Total federal and foreign income tax expense | $ 290 | $ 940 | $ 1,933 |
Effective income tax rate | 12.40% | 16.10% | 21.60% |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Increase in Unrecognized Tax Benefits is Reasonably Possible | $ 120 | ||
Unrecognized Tax Benefit Related to Methods of Accounting | 2,000 | ||
Unrecognized Tax Benefits Related to Methods of Accounting - 451(b) | 843 | ||
Current unrecognized tax benefits | 964 | $ 728 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 305 | 216 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 848 | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 189 | 110 | $ 1 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 62 | 29 | 25 |
Unrecognized Tax Benefits Rollforward (Table Amounts) [Abstract] | |||
Unrecognized tax benefits at beginning of the year | 1,663 | 1,630 | 1,481 |
Additions based on tax positions related to the current year | 276 | 262 | 355 |
Additions for tax positions of prior years | 254 | 6 | 47 |
Reductions for tax positions of prior years | (9) | (124) | (251) |
Settlements with taxing authorities | (189) | (110) | (1) |
Other, net | (1) | (1) | (1) |
Net change in unrecognized tax benefits | 331 | 33 | 149 |
Unrecognized tax benefits at end of the year | 1,994 | $ 1,663 | $ 1,630 |
Internal Revenue Service (IRS) [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 90 | ||
Unrecognized Tax Benefits Rollforward (Table Amounts) [Abstract] | |||
Settlements with taxing authorities | (90) | ||
California Franchise Tax Board [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 95 | ||
Tax Adjustments, Settlements, and Unusual Provisions | 11 | ||
Unrecognized Tax Benefits Rollforward (Table Amounts) [Abstract] | |||
Settlements with taxing authorities | $ (95) |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Taxes (Details 4) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets (Table Amounts) | ||
Retiree benefits | $ 115 | $ 117 |
Deferred Tax Asset, R&E Expenditure Capitalization | 3,380 | 1,671 |
Accrued employee compensation | 400 | 378 |
Provisions for accrued liabilities | 509 | 65 |
Inventory | 279 | 484 |
Stock-based compensation | 35 | 37 |
Operating lease liabilities | 575 | 556 |
Tax credits | 557 | 464 |
Other | 215 | 144 |
Gross deferred tax assets | 6,065 | 3,916 |
Less: valuation allowance | (517) | (428) |
Net deferred tax assets | 5,548 | 3,488 |
Deferred Tax Liabilities (Table Amounts) | ||
Goodwill | 534 | 534 |
Purchased intangibles | 83 | 98 |
Property, plant and equipment, net | 805 | 854 |
Operating lease right-of-use assets | 563 | 545 |
Contract accounting differences | 2,437 | 1,348 |
Other | 106 | 79 |
Deferred tax liabilities | 4,528 | 3,458 |
Deferred Tax Assets, Net | $ 1,020 | $ 30 |
Amounts in Paragraphs - Income
Amounts in Paragraphs - Income Taxes (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 12.40% | 16.10% | 21.60% |
IT services divestiture nondeductible goodwill | $ 0 | $ 0 | $ 250 |
Significant matters affecting comparability | (3.80%) | 1.20% | |
Income taxes paid, net | $ 1,200 | $ 1,500 | $ 1,300 |
Income Taxes Receivable | 1,500 | $ 850 | |
Tax Credit Carryforward, Amount | 615 | ||
Operating Loss Carryforwards | 358 | ||
Tax Credit Carryforward, Valuation Allowance | 344 | ||
Operating Loss Carryforwards, Valuation Allowance | $ 46 |
Goodwill and Other Purchased _3
Goodwill and Other Purchased Intangible Assets Goodwill Rollforward (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill (Table Amounts) | ||
Beginning balance | $ 17,516 | $ 17,515 |
Other | 1 | 1 |
Ending balance | 17,517 | 17,516 |
Aeronautics Systems | ||
Goodwill (Table Amounts) | ||
Beginning balance | 3,467 | 3,467 |
Other | 0 | 0 |
Ending balance | 3,467 | 3,467 |
Defense Systems | ||
Goodwill (Table Amounts) | ||
Beginning balance | 3,413 | 3,412 |
Other | 1 | 1 |
Ending balance | 3,414 | 3,413 |
Mission Systems | ||
Goodwill (Table Amounts) | ||
Beginning balance | 5,881 | 5,881 |
Other | 0 | 0 |
Ending balance | 5,881 | 5,881 |
Space Systems | ||
Goodwill (Table Amounts) | ||
Beginning balance | 4,755 | 4,755 |
Other | 0 | 0 |
Ending balance | $ 4,755 | $ 4,755 |
Goodwill and Other Purchased _4
Goodwill and Other Purchased Intangible Assets Other Purchased Intangible Assets (Details 2) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross customer-related and other intangible assets | $ 3,365 | $ 3,364 |
Less accumulated amortization | (3,060) | (2,980) |
Net contract, program and other intangible assets | $ 305 | $ 384 |
Goodwill and Other Purchased _5
Goodwill and Other Purchased Intangible Assets Future Amortization of Purchased Intangibles (Details 3) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 57 |
2025 | 45 |
2026 | 42 |
2027 | 31 |
2028 | $ 31 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||
Amortization of Intangible Assets | $ 80 | $ 197 | $ 204 |
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, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 339 | $ 332 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 321 | 310 |
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 | 5 | 7 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 8 | 8 |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 330 | 319 |
Derivative Assets (Liabilities), at Fair Value, Net | 5 | 7 |
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 | 321 | 310 |
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, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 8 | 8 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 9 | $ 13 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments Amounts in Paragraphs - Fair Value of Financial Instruments (Details 2) - Foreign Exchange Forward [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Derivative, Notional Amount | $ 286 | $ 221 |
Designated as Hedging Instrument [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, Notional Amount | $ 162 | $ 87 |
Debt Fixed-rate Notes and Other
Debt Fixed-rate Notes and Other (Details 1) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2023 | Aug. 01, 2023 | Feb. 08, 2023 | Dec. 31, 2022 | Mar. 01, 2021 | |
Long-Term Debt (Table Amounts) [Abstract] | ||||||
Debt Instrument, Face Amount | $ 2,000 | |||||
Long-term debt | $ 13,856 | |||||
Other long-term debt | 332 | $ 293 | ||||
Debt issuance costs | (69) | (59) | ||||
Total long-term debt | 13,856 | 12,877 | ||||
Less: current portion | 70 | 1,072 | ||||
Long-term Debt and Lease Obligation | $ 13,786 | 11,805 | ||||
Repayments of Senior Debt [Abstract] | ||||||
2021 Note, Face Amount | $ 700 | |||||
2021 Note, Interest Rate, Stated Percentage | 3.50% | |||||
2022 Note, Face Amount | $ 1,500 | |||||
2022 Note, Interest Rate, Stated Percentage | 2.55% | |||||
Redemption Premium | $ 54 | |||||
2023 | ||||||
Long-Term Debt (Table Amounts) [Abstract] | ||||||
Debt Instrument, Face Amount | $ 1,050 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | ||||
Long-term debt | $ 0 | 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 | ||||
2030 | ||||||
Long-Term Debt (Table Amounts) [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | |||||
Long-term debt | $ 750 | 750 | ||||
2031 | ||||||
Long-Term Debt (Table Amounts) [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | |||||
Long-term debt | $ 466 | 466 | ||||
Two Thousand Thirty Three | ||||||
Long-Term Debt (Table Amounts) [Abstract] | ||||||
Debt Instrument, Face Amount | $ 1,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.70% | 4.70% | ||||
Long-term debt | $ 1,000 | 0 | ||||
2040 | ||||||
Long-Term Debt (Table Amounts) [Abstract] | ||||||
Long-term debt | $ 800 | 800 | ||||
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 | ||||
2050 | ||||||
Long-Term Debt (Table Amounts) [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||
Long-term debt | $ 1,000 | 1,000 | ||||
Two Thousand Fifty Three | ||||||
Long-Term Debt (Table Amounts) [Abstract] | ||||||
Debt Instrument, Face Amount | $ 1,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.95% | 4.95% | ||||
Long-term debt | $ 1,000 | $ 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, 2023 | Dec. 31, 2022 |
Maturities of Long-term Debt [Abstract] | ||
2024 | $ 70 | |
2025 | 1,582 | |
2026 | 530 | |
2027 | 754 | |
2028 | 2,043 | |
Thereafter | 8,963 | |
Total principal payments | 13,942 | |
Unamortized premium on long-term debt, net of discount | (17) | |
Debt issuance costs | (69) | $ (59) |
Total long-term debt | $ 13,856 |
Amounts in Paragraphs - Debt (D
Amounts in Paragraphs - Debt (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 15, 2022 | Sep. 02, 2021 | |
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 agreement) to exceed 65 percent. | ||||
Line of Credit Facility, Covenant Compliance | the company was in compliance with all covenants under its credit agreement. | ||||
Long-term Debt, Fair Value | $ 13,400 | $ 12,100 | |||
Interest paid, net of interest received | 437 | 474 | $ 570 | ||
Interest Costs Capitalized | 95 | 53 | $ 17 | ||
Principal Amount - NGSC Notes | $ 422 | ||||
Principal Amount - Northrop Grumman Corporation Notes | $ 422 | ||||
Principal Amount - Northrop Grumman Corporation Notes (Unregistered Notes) | $ 414 | ||||
Principal Amount - Northrop Grumman Corporation Notes (Registered Notes) | $ 414 | ||||
Five Year Term [Member] [Domain] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500 | ||||
Credit facilities | 0 | ||||
Commercial Paper [Member] | |||||
Debt Instrument [Line Items] | |||||
Commercial Paper, Maximum Borrowing Capacity | 2,500 | ||||
Short-term Debt | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details 1) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Amounts accrued for probable environmental remediation costs | $ 584 | $ 565 |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 387 | 353 |
Recorded Third-Party Environmental Recoveries, Amount | 518 | $ 486 |
Financial Arrangements (Amounts in Paragraph) | ||
Unused standby letters of credit and bank guarantees | 411 | |
Surety Bond Outstanding | 263 | |
Other Current Liabilities [Member] | ||
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Amounts accrued for probable environmental remediation costs | 223 | |
Other Noncurrent Liabilities [Member] | ||
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Amounts accrued for probable environmental remediation costs | 361 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Recorded Third-Party Environmental Recoveries, Amount | 206 | |
Other Noncurrent Assets [Member] | ||
Environmental Commitments and Contingencies (Amounts in Paragraphs) | ||
Recorded Third-Party Environmental Recoveries, Amount | $ 312 |
Retirement Benefits Net Periodi
Retirement Benefits Net Periodic Benefit Cost (Benefit) (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Net Periodic Benefit Cost (Table Amounts) [Abstract] | |||
Interest cost | $ 1,600 | ||
Mark-to-market pension and OPB (expense) benefit | (422) | $ 1,232 | $ 2,355 |
Net periodic benefit cost (benefit) | (308) | (1,193) | (1,091) |
Pension Benefits | |||
Components of Net Periodic Benefit Cost (Table Amounts) [Abstract] | |||
Service cost | 236 | 367 | 414 |
Interest cost | 1,568 | 1,136 | 1,054 |
Expected return on plan assets | (2,098) | (2,641) | (2,512) |
Amortization of prior service credit | 0 | 0 | (9) |
Mark-to-market pension and OPB (expense) benefit | (442) | 1,262 | 1,921 |
Other | 0 | 0 | (1) |
Net periodic benefit cost (benefit) | 148 | (2,400) | (2,975) |
Medical and Life Benefits | |||
Components of Net Periodic Benefit Cost (Table Amounts) [Abstract] | |||
Service cost | 5 | 9 | 16 |
Interest cost | 67 | 47 | 53 |
Expected return on plan assets | (85) | (110) | (105) |
Amortization of prior service credit | (1) | (1) | (1) |
Mark-to-market pension and OPB (expense) benefit | 20 | (30) | 434 |
Other | 0 | 0 | 0 |
Net periodic benefit cost (benefit) | $ (34) | $ (25) | $ (471) |
Retirement Benefits Unamortized
Retirement Benefits Unamortized Prior Service Credit Rollforward (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortization of: | |||
Prior service credit | $ 1 | $ 1 | $ 10 |
Tax expense (benefit) related to above items | 0 | 0 | (2) |
Change in unamortized benefit plan costs | 1 | 1 | 8 |
Pension Benefits | |||
Amortization of: | |||
Prior service credit | 0 | 0 | 9 |
Tax expense (benefit) related to above items | 0 | 0 | (2) |
Change in unamortized benefit plan costs | 0 | 0 | 7 |
Medical and Life Benefits | |||
Amortization of: | |||
Prior service credit | 1 | 1 | 1 |
Tax expense (benefit) related to above items | 0 | 0 | 0 |
Change in unamortized benefit plan costs | $ 1 | $ 1 | $ 1 |
Retirement Benefits Funded Stat
Retirement Benefits Funded Status of Plan Assets (Liabilities) (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 30,146 | ||
Fair value of plan assets at end of year | 31,525 | $ 30,146 | |
Change in projected benefit obligation | |||
Interest cost | 1,600 | ||
Benefits paid | (2,100) | ||
Amounts Recognized on the Balance Sheet | |||
Non-current liability | (1,290) | (1,188) | |
Pension Benefits | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 28,920 | 36,236 | |
Net gain (loss) on plan assets | 3,104 | (5,422) | |
Employer contributions | 105 | 101 | |
Participant contributions | 6 | 7 | |
Benefits paid | 1,894 | 1,973 | |
Other | 10 | (29) | |
Fair value of plan assets at end of year | 30,251 | 28,920 | $ 36,236 |
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 29,067 | 38,888 | |
Service cost | 236 | 367 | 414 |
Interest cost | 1,568 | 1,136 | 1,054 |
Participant contributions | 6 | 7 | |
Actuarial loss (gain) | 1,447 | (9,325) | |
Benefits paid | 1,894 | 1,973 | |
Other | 13 | (33) | |
Projected benefit obligation at end of year | 30,443 | 29,067 | 38,888 |
Funded status | (192) | (147) | |
Amounts Recognized on the Balance Sheet | |||
Non-current assets | 1,042 | 982 | |
Current liability | (178) | (177) | |
Non-current liability | (1,056) | (952) | |
Medical and Life Benefits | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 1,226 | 1,588 | |
Net gain (loss) on plan assets | 146 | (257) | |
Employer contributions | 34 | 35 | |
Participant contributions | 27 | 24 | |
Benefits paid | 159 | 164 | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 1,274 | 1,226 | 1,588 |
Change in projected benefit obligation | |||
Projected benefit obligation at beginning of year | 1,264 | 1,685 | |
Service cost | 5 | 9 | 16 |
Interest cost | 67 | 47 | 53 |
Participant contributions | 27 | 24 | |
Actuarial loss (gain) | 42 | (337) | |
Benefits paid | 159 | 164 | |
Other | 0 | 0 | |
Projected benefit obligation at end of year | 1,246 | 1,264 | $ 1,685 |
Funded status | 28 | (38) | |
Amounts Recognized on the Balance Sheet | |||
Non-current assets | 289 | 240 | |
Current liability | (27) | (42) | |
Non-current liability | $ (234) | $ (236) |
Retirement Benefits Accumulated
Retirement Benefits Accumulated Benefit Obligations in Excess of Fair Value (Details 4) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pension plans with accumulated benefit obligations in excess of fair value of plan assets (Table Amounts) [Abstract] | ||
Projected benefit obligation | $ 1,152 | $ 1,126 |
Accumulated benefit obligation | 1,143 | 1,117 |
Fair value of plan assets | $ 3 | $ 2 |
Retirement Benefits Plan Assump
Retirement Benefits Plan Assumptions (Details 5) | 12 Months Ended | |||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Benefit Obligation [Member] | ||||
Defined Benefit Plan Disclosure (Table Amounts) | ||||
Initial health care cost trend rate assumed for the next year | 6.20% | 6.50% | 5.30% | |
Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) | 5% | 5% | 5% | |
Year that the health care cost trend rate reaches the ultimate trend rate | 2028 | 2028 | 2023 | |
Pension Benefits | ||||
Assumptions Used to Determine Benefit Obligation | ||||
Discount rate | 5.15% | 5.54% | 2.98% | |
Initial cash balance crediting rate assumed for the next year | 4.02% | 3.96% | 2.25% | |
Rate to which the cash balance crediting rate is assumed to increase/decrease (the ultimate rate) | 4.02% | 3.88% | 2.25% | |
Year that the cash balance crediting rate reaches the ultimate rate | 2029 | 2028 | 2027 | |
Rate of compensation increase | 3% | 3% | 3% | |
Assumptions Used to Determine Benefit Cost | ||||
Discount rate | 5.54% | 2.98% | ||
Expected long-term return on plan assets | 7.50% | 7.50% | ||
Initial cash balance crediting rate assumed for the next year | 3.96% | 2.25% | ||
Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate) | 3.88% | 2.25% | ||
Year that the cash balance crediting rate reaches the ultimate rate | 2028 | 2027 | ||
Rate of compensation increase | 3% | 3% | ||
Pension Benefits | Subsequent Event [Member] | ||||
Assumptions Used to Determine Benefit Cost | ||||
Discount rate | 5.15% | |||
Expected long-term return on plan assets | 7.50% | |||
Initial cash balance crediting rate assumed for the next year | 4.02% | |||
Rate to which the cash balance crediting rate is assumed to increase (the ultimate rate) | 4.02% | |||
Year that the cash balance crediting rate reaches the ultimate rate | 2029 | |||
Rate of compensation increase | 3% | |||
Post-retirement Benefit Cost [Member] | ||||
Defined Benefit Plan Disclosure (Table Amounts) | ||||
Initial health care cost trend rate assumed for the next year | 6.50% | 5.30% | ||
Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) | 5% | 5% | ||
Year that the health care cost trend rate reaches the ultimate trend rate | 2028 | 2023 | ||
Post-retirement Benefit Cost [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure (Table Amounts) | ||||
Initial health care cost trend rate assumed for the next year | 6.20% | |||
Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate) | 5% | |||
Year that the health care cost trend rate reaches the ultimate trend rate | 2028 | |||
Medical and Life Benefits | ||||
Assumptions Used to Determine Benefit Obligation | ||||
Discount rate | 5.20% | 5.57% | 2.93% | |
Assumptions Used to Determine Benefit Cost | ||||
Discount rate | 5.57% | 2.93% | ||
Expected long-term return on plan assets | 7.23% | 7.19% | ||
Medical and Life Benefits | Subsequent Event [Member] | ||||
Assumptions Used to Determine Benefit Cost | ||||
Discount rate | 5.20% | |||
Expected long-term return on plan assets | 7.12% |
Retirement Benefits Plan Asset
Retirement Benefits Plan Asset Allocation (Details 6) | Dec. 31, 2023 |
Cash and cash equivalents | Minimum | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0% |
Cash and cash equivalents | Maximum [Member] | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 12% |
Global public equities | Minimum | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 21% |
Global public equities | Maximum [Member] | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 41% |
Fixed-income securities | Minimum | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35% |
Fixed-income securities | Maximum [Member] | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 55% |
Alternative investments | Minimum | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 12% |
Alternative investments | Maximum [Member] | |
Plan Asset Allocation Ranges (Table Amounts) [Abstract] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 32% |
Retirement Benefits Categorizat
Retirement Benefits Categorization of Plan Assets (Details 7) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | $ 31,525 | $ 30,146 |
Cash and cash equivalents | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 915 | 1,191 |
U.S. equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,713 | 2,139 |
International equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,506 | 1,784 |
U.S. Treasuries | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 3,890 | 2,999 |
U.S. Government Agency | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 124 | 145 |
Non-U.S. Government | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 176 | 172 |
Corporate debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 4,506 | 4,745 |
Asset backed | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 436 | 353 |
High yield debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 33 | 31 |
Bank loans | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 15 | 13 |
Other assets | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 109 | 4 |
Notes Payable, Other Payables [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | (24) | (25) |
Level 1 | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 3,454 | 4,099 |
Level 1 | Cash and cash equivalents | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 85 | 115 |
Level 1 | U.S. equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,712 | 2,138 |
Level 1 | International equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,506 | 1,784 |
Level 1 | U.S. Treasuries | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 0 | 22 |
Level 1 | Corporate debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 74 | 28 |
Level 1 | High yield debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 13 | 12 |
Level 1 | Other assets | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 64 | |
Level 2 | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 9,967 | 9,475 |
Level 2 | Cash and cash equivalents | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 830 | 1,076 |
Level 2 | U.S. equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1 | 1 |
Level 2 | U.S. Treasuries | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 3,890 | 2,977 |
Level 2 | U.S. Government Agency | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 124 | 145 |
Level 2 | Non-U.S. Government | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 176 | 172 |
Level 2 | Corporate debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 4,432 | 4,717 |
Level 2 | Asset backed | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 436 | 353 |
Level 2 | High yield debt | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 20 | 19 |
Level 2 | Bank loans | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 15 | 13 |
Level 2 | Other assets | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 43 | 2 |
Level 3 | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 2 | 2 |
Level 3 | Other assets | ||
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. equities | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Fair value of plan assets | 1,294 | 1,043 |
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 | 3,972 | 3,904 |
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 | 4,057 | 2,569 |
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 | 38 | 44 |
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 | 3,176 | 2,983 |
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 | 3,466 | 3,299 |
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 | 2,123 | 2,753 |
Pension and Other Post-retirement benefit plans [Member] | ||
Plan Assets by Fair Value Measurement Input (Table Amounts) [Abstract] | ||
Derivative Asset | 172 | 71 |
Derivative Liability | (101) | (117) |
Derivative, Notional Amount | $ 4,900 | $ 3,200 |
Retirement Benefits Estimated F
Retirement Benefits Estimated Future Benefit Payments (Details 8) $ in Millions | Dec. 31, 2023 USD ($) |
Estimated Benefit Payments (Table Amounts) [Abstract] | |
2024 | $ 2,146 |
2025 | 2,195 |
2026 | 2,226 |
2027 | 2,236 |
2028 | 2,254 |
2029 through 2033 | 11,275 |
Pension Benefits | |
Estimated Benefit Payments (Table Amounts) [Abstract] | |
2024 | 2,012 |
2025 | 2,058 |
2026 | 2,095 |
2027 | 2,129 |
2028 | 2,151 |
2029 through 2033 | 10,820 |
Medical and Life Benefits | |
Estimated Benefit Payments (Table Amounts) [Abstract] | |
2024 | 134 |
2025 | 137 |
2026 | 131 |
2027 | 107 |
2028 | 103 |
2029 through 2033 | $ 455 |
Retirement Benefits Amounts in
Retirement Benefits Amounts in Paragraphs - Retirement Benefits (Details 9) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plans Disclosure (Amounts in paragraphs) | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 634 | $ 558 | $ 588 |
Pension and post-retirement benefits disclosures (Amounts in paragraphs) | |||
Accumulated benefit obligation for all defined benefit pension plans | $ 30,100 | 28,800 | |
Information About Plan Assets (Amounts in paragraphs) [Abstract] | |||
Actual Percent Return On Plan Assets | 11.10% | ||
Yearly Discount Rate change in basis points | (39) | ||
Pension Benefits | |||
Defined Contribution Plans Disclosure (Amounts in paragraphs) | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 99 | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 105 | 101 | |
Information About Plan Assets (Amounts in paragraphs) [Abstract] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer, Voluntary Contributions | 0 | ||
OPB contributions | |||
Defined Contribution Plans Disclosure (Amounts in paragraphs) | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 35 | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 34 | 35 | |
U.S. equities | |||
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 | $ 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 | 2 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 | $ 6 | 6 | |
OpportunisticFunds | |||
Information About Plan Assets (Amounts in paragraphs) [Abstract] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 1,600 | 1,500 | |
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 | $ 1,900 | 2,000 | |
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 | $ 28 | $ 44 | |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 87 | $ 99 | $ 94 |
Tax benefits from stock-based compensation expense | 9 | $ 10 | $ (2) |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 96 | ||
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation by Share-based Payment Award | ||||
Stock awards, outstanding, weighted average remaining contractual terms | 1 year 3 months 18 days | 1 year 4 months 24 days | 1 year 4 months 24 days | 1 year 4 months 24 days |
Stock issued, settlement of fully vested stock awards, fair value grant date | $ 99 | $ 93 | $ 103 | |
Stock Award Activity (Table) | ||||
Stock awards - outstanding at period start | 561 | 580 | 603 | |
Stock awards - granted | 216 | 238 | 304 | |
Stock awards - vested | 249 | 226 | 269 | |
Stock awards - forfeited | 29 | 31 | 58 | |
Stock awards - outstanding at period end | 499 | 561 | 580 | 603 |
Stock Awards, Weighted Average Grant Date Fair Value [Table] | ||||
Weighted-average grant date fair value - outstanding at period start | $ 344 | $ 314 | $ 311 | |
Weighted-average grant date fair value - granted | 478 | 397 | 296 | |
Weighted-average grant date fair value - vested | 315 | 327 | 286 | |
Weighted-average grant date fair value - forfeited | 373 | 320 | 318 | |
Weighted-average grant date fair value - outstanding at period end | $ 417 | $ 344 | $ 314 | $ 311 |
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 | 4,400 |
Stock Compensation Plans Cash A
Stock Compensation Plans Cash Awards (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation by Share-based Payment Award | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 96 | ||
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% | ||
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% | ||
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 | $ 116 | ||
Cash Units and Cash Performance Units [Member] | Minimum | |||
Share-based Compensation by Share-based Payment Award | |||
Deferred Compensation Cash-based Arrangements, Liability, Current | 34 | $ 32 | $ 31 |
Cash Units and Cash Performance Units [Member] | Maximum [Member] | |||
Share-based Compensation by Share-based Payment Award | |||
Deferred Compensation Cash-based Arrangements, Liability, Current | $ 192 | $ 183 | $ 178 |
Leases Total Lease Cost (Detail
Leases Total Lease Cost (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 358 | $ 332 | $ 315 |
Variable lease cost | 48 | 35 | 31 |
Short-term lease cost | 69 | 51 | 80 |
Total lease cost | $ 475 | $ 418 | $ 426 |
Leases Balance Sheet (Details 2
Leases Balance Sheet (Details 2) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 1,818 | $ 1,811 |
Operating Lease, Liability, Current | 300 | 299 |
Operating Lease, Liability, Noncurrent | 1,892 | 1,824 |
Operating Lease, Liability, Total | $ 2,192 | $ 2,123 |
Leases Lease Other Supplemental
Leases Lease Other Supplemental Information (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease Other Supplemental Information (Details 3) [Abstract] | ||
Operating Lease, Payments | $ 341 | $ 316 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 314 | $ 438 |
Operating Lease, Weighted Average Remaining Lease Term | 11 years | 11 years 2 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.90% | 3.40% |
Leases Lease Maturities (Detail
Leases Lease Maturities (Details 4) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Lease Not yet Commenced, Value | $ 270 | |
Lessee, Operating Lease, Liability, Payments, Due Next Year | 363 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 354 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 307 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 252 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 222 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 1,235 | |
Lessee, Operating Lease, Liability, Payments, Due | 2,733 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (541) | |
Operating Lease, Liability | $ 2,192 | $ 2,123 |
Minimum | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | |
Maximum [Member] | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 20 years |
Segment Information Reconciliat
Segment Information Reconciliation to Consolidated Operating Income (Details 1) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Number of reportable segments | 4 | ||
Sales | $ 39,290 | $ 36,602 | $ 35,667 |
Operating income | 2,537 | 3,601 | 5,651 |
Operating Segments | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Operating income | 2,760 | 4,253 | 4,217 |
Operating Segments | Aeronautics Systems | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 10,786 | 10,531 | 11,259 |
Operating income | (473) | 1,116 | 1,093 |
Operating Segments | Defense Systems | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 5,862 | 5,579 | 5,776 |
Operating income | 710 | 664 | 696 |
Operating Segments | Mission Systems | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 10,895 | 10,396 | 10,134 |
Operating income | 1,609 | 1,618 | 1,579 |
Operating Segments | Space Systems | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 13,946 | 12,275 | 10,608 |
Operating income | 1,212 | 1,158 | 1,121 |
Intersegment sales | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 2,199 | 2,179 | 2,110 |
Operating income | 298 | 303 | 272 |
Intersegment sales | Aeronautics Systems | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 240 | 239 | 189 |
Operating income | 22 | 27 | 19 |
Intersegment sales | Defense Systems | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 798 | 806 | 789 |
Operating income | 97 | 95 | 89 |
Intersegment sales | Mission Systems | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 1,054 | 1,015 | 993 |
Operating income | 167 | 167 | 150 |
Intersegment sales | Space Systems | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Sales | 107 | 119 | 139 |
Operating income | 12 | 14 | 14 |
Corporate, Non-Segment [Member] | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
Operating income | (141) | (452) | 1,304 |
Segment Reconciling Items [Member] | |||
Sales and Service Revenues by Segment (Table Amounts) [Abstract] | |||
FAS/CAS Operating Adjustment | $ (82) | $ (200) | $ 130 |
Segment Information Sales by Cu
Segment Information Sales by Customer Type (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Major Customer [Line Items] | |||
Sales | $ 39,290 | $ 36,602 | $ 35,667 |
Sales percentage | 100% | 100% | 100% |
US Government | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 33,882 | $ 31,323 | $ 30,334 |
Sales percentage | 86% | 86% | 85% |
US Government | Aeronautics Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 9,132 | $ 8,930 | $ 9,631 |
Sales percentage | 85% | 85% | 85% |
US Government | Defense Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 3,497 | $ 3,344 | $ 3,595 |
Sales percentage | 60% | 61% | 62% |
US Government | Mission Systems [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 7,999 | $ 7,471 | $ 7,223 |
Sales percentage | 73% | 72% | 71% |
US Government | Space Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 13,254 | $ 11,578 | $ 9,885 |
Sales percentage | 95% | 94% | 93% |
International | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 4,905 | $ 4,848 | $ 4,982 |
Sales percentage | 13% | 13% | 14% |
International | Aeronautics Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 1,379 | $ 1,344 | $ 1,421 |
Sales percentage | 13% | 13% | 13% |
International | Defense Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 1,491 | $ 1,358 | $ 1,317 |
Sales percentage | 25% | 24% | 23% |
International | Mission Systems [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 1,757 | $ 1,809 | $ 1,846 |
Sales percentage | 16% | 17% | 18% |
International | Space Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 278 | $ 337 | $ 398 |
Sales percentage | 2% | 3% | 4% |
Other Customers | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 503 | $ 431 | $ 351 |
Sales percentage | 1% | 1% | 1% |
Other Customers | Aeronautics Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 35 | $ 18 | $ 18 |
Sales percentage | 0% | 0% | 0% |
Other Customers | Defense Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 76 | $ 71 | $ 75 |
Sales percentage | 1% | 1% | 1% |
Other Customers | Mission Systems [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 85 | $ 101 | $ 72 |
Sales percentage | 1% | 1% | 1% |
Other Customers | Space Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 307 | $ 241 | $ 186 |
Sales percentage | 2% | 2% | 2% |
Intersegment Sales [Member] | Aeronautics Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 240 | $ 239 | $ 189 |
Sales percentage | 2% | 2% | 2% |
Intersegment Sales [Member] | Defense Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 798 | $ 806 | $ 789 |
Sales percentage | 14% | 14% | 14% |
Intersegment Sales [Member] | Mission Systems [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 1,054 | $ 1,015 | $ 993 |
Sales percentage | 10% | 10% | 10% |
Intersegment Sales [Member] | Space Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 107 | $ 119 | $ 139 |
Sales percentage | 1% | 1% | 1% |
Operating Segments [Member] | Aeronautics Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 10,786 | $ 10,531 | $ 11,259 |
Sales percentage | 100% | 100% | 100% |
Operating Segments [Member] | Defense Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 5,862 | $ 5,579 | $ 5,776 |
Sales percentage | 100% | 100% | 100% |
Operating Segments [Member] | Mission Systems [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 10,895 | $ 10,396 | $ 10,134 |
Sales percentage | 100% | 100% | 100% |
Operating Segments [Member] | Space Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 13,946 | $ 12,275 | $ 10,608 |
Sales percentage | 100% | 100% | 100% |
Segment Information Sales by Co
Segment Information Sales by Contract Type (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Contract Type [Line Items] | |||
Sales | $ 39,290 | $ 36,602 | $ 35,667 |
Sales percentage | 100% | 100% | 100% |
Operating Segments [Member] | Aeronautics Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 10,786 | $ 10,531 | $ 11,259 |
Sales percentage | 100% | 100% | 100% |
Operating Segments [Member] | Defense Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 5,862 | $ 5,579 | $ 5,776 |
Sales percentage | 100% | 100% | 100% |
Operating Segments [Member] | Mission Systems [Member] | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 10,895 | $ 10,396 | $ 10,134 |
Sales percentage | 100% | 100% | 100% |
Operating Segments [Member] | Space Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 13,946 | $ 12,275 | $ 10,608 |
Sales percentage | 100% | 100% | 100% |
Cost-type | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 20,979 | $ 18,711 | $ 18,028 |
Sales percentage | 53% | 51% | 51% |
Cost-type | Aeronautics Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 5,235 | $ 5,013 | $ 5,419 |
Sales percentage | 50% | 49% | 49% |
Cost-type | Defense Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 1,591 | $ 1,497 | $ 1,739 |
Sales percentage | 31% | 31% | 35% |
Cost-type | Mission Systems [Member] | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 4,116 | $ 3,622 | $ 3,139 |
Sales percentage | 42% | 39% | 34% |
Cost-type | Space Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 10,037 | $ 8,579 | $ 7,731 |
Sales percentage | 73% | 71% | 74% |
Fixed-price | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 18,311 | $ 17,891 | $ 17,639 |
Sales percentage | 47% | 49% | 49% |
Fixed-price | Aeronautics Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 5,311 | $ 5,279 | $ 5,651 |
Sales percentage | 50% | 51% | 51% |
Fixed-price | Defense Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 3,473 | $ 3,276 | $ 3,248 |
Sales percentage | 69% | 69% | 65% |
Fixed-price | Mission Systems [Member] | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 5,725 | $ 5,759 | $ 6,002 |
Sales percentage | 58% | 61% | 66% |
Fixed-price | Space Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 3,802 | $ 3,577 | $ 2,738 |
Sales percentage | 27% | 29% | 26% |
Intersegment Sales [Member] | Aeronautics Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 240 | $ 239 | $ 189 |
Intersegment Sales [Member] | Defense Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | 798 | 806 | 789 |
Intersegment Sales [Member] | Mission Systems [Member] | |||
Revenue, Contract Type [Line Items] | |||
Sales | 1,054 | 1,015 | 993 |
Intersegment Sales [Member] | Space Systems | |||
Revenue, Contract Type [Line Items] | |||
Sales | $ 107 | $ 119 | $ 139 |
Segment Information Sales by Ge
Segment Information Sales by Geographic Location (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 39,290 | $ 36,602 | $ 35,667 |
Sales percentage | 100% | 100% | 100% |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 34,385 | $ 31,754 | $ 30,685 |
Sales percentage | 88% | 87% | 86% |
Asia/Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 1,568 | $ 1,802 | $ 1,939 |
Sales percentage | 4% | 5% | 5% |
All Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 882 | $ 794 | $ 936 |
Sales percentage | 2% | 2% | 3% |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 2,455 | $ 2,252 | $ 2,107 |
Sales percentage | 6% | 6% | 6% |
Aeronautics Systems | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 9,167 | $ 8,948 | $ 9,649 |
Sales percentage | 87% | 87% | 87% |
Aeronautics Systems | Asia/Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 607 | $ 708 | $ 896 |
Sales percentage | 6% | 7% | 8% |
Aeronautics Systems | All Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 36 | $ 51 | $ 64 |
Sales percentage | 0% | 0% | 1% |
Aeronautics Systems | Intersegment Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 240 | $ 239 | $ 189 |
Aeronautics Systems | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 736 | $ 585 | $ 461 |
Sales percentage | 7% | 6% | 4% |
Aeronautics Systems | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 10,786 | $ 10,531 | $ 11,259 |
Sales percentage | 100% | 100% | 100% |
Defense Systems | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 3,573 | $ 3,415 | $ 3,670 |
Sales percentage | 71% | 71% | 74% |
Defense Systems | Asia/Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 419 | $ 454 | $ 465 |
Sales percentage | 8% | 10% | 9% |
Defense Systems | All Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 471 | $ 427 | $ 538 |
Sales percentage | 9% | 9% | 11% |
Defense Systems | Intersegment Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 798 | $ 806 | $ 789 |
Defense Systems | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 601 | $ 477 | $ 314 |
Sales percentage | 12% | 10% | 6% |
Defense Systems | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 5,862 | $ 5,579 | $ 5,776 |
Sales percentage | 100% | 100% | 100% |
Mission Systems [Member] | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 8,084 | $ 7,572 | $ 7,295 |
Sales percentage | 82% | 81% | 80% |
Mission Systems [Member] | Asia/Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 460 | $ 531 | $ 518 |
Sales percentage | 5% | 6% | 6% |
Mission Systems [Member] | All Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 338 | $ 301 | $ 324 |
Sales percentage | 3% | 3% | 4% |
Mission Systems [Member] | Intersegment Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 1,054 | $ 1,015 | $ 993 |
Mission Systems [Member] | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 959 | $ 977 | $ 1,004 |
Sales percentage | 10% | 10% | 10% |
Mission Systems [Member] | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 10,895 | $ 10,396 | $ 10,134 |
Sales percentage | 100% | 100% | 100% |
Space Systems | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 13,561 | $ 11,819 | $ 10,071 |
Sales percentage | 98% | 97% | 96% |
Space Systems | Asia/Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 82 | $ 109 | $ 60 |
Sales percentage | 1% | 1% | 1% |
Space Systems | All Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 37 | $ 15 | $ 10 |
Sales percentage | 0% | 0% | 0% |
Space Systems | Intersegment Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 107 | $ 119 | $ 139 |
Space Systems | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 159 | $ 213 | $ 328 |
Sales percentage | 1% | 2% | 3% |
Space Systems | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 13,946 | $ 12,275 | $ 10,608 |
Sales percentage | 100% | 100% | 100% |
Segment Information Intersegmen
Segment Information Intersegment Sales and Operating Income (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 39,290 | $ 36,602 | $ 35,667 |
Intersegment sales and operating income (Table Amounts) [Abstract] | |||
Operating income | 2,537 | 3,601 | 5,651 |
Pre-tax gain on sale of business | 2,000 | ||
Unallowable State Taxes and Transactions Costs from Divestiture | 192 | ||
Intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,199 | 2,179 | 2,110 |
Intersegment sales and operating income (Table Amounts) [Abstract] | |||
Operating income | 298 | 303 | 272 |
Intersegment sales | Aeronautics Systems | |||
Segment Reporting Information [Line Items] | |||
Sales | 240 | 239 | 189 |
Intersegment sales and operating income (Table Amounts) [Abstract] | |||
Operating income | 22 | 27 | 19 |
Intersegment sales | Defense Systems | |||
Segment Reporting Information [Line Items] | |||
Sales | 798 | 806 | 789 |
Intersegment sales and operating income (Table Amounts) [Abstract] | |||
Operating income | 97 | 95 | 89 |
Intersegment sales | Mission Systems | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,054 | 1,015 | 993 |
Intersegment sales and operating income (Table Amounts) [Abstract] | |||
Operating income | 167 | 167 | 150 |
Intersegment sales | Space Systems | |||
Segment Reporting Information [Line Items] | |||
Sales | 107 | 119 | 139 |
Intersegment sales and operating income (Table Amounts) [Abstract] | |||
Operating income | $ 12 | $ 14 | $ 14 |
Segment Information Capital Exp
Segment Information Capital Expenditures and Depreciation and Amortization (Details 7) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | $ 1,775 | $ 1,435 | $ 1,415 |
Depreciation and amortization | 1,338 | 1,342 | 1,239 |
Aeronautics Systems | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 504 | 490 | 465 |
Depreciation and amortization | 384 | 322 | 266 |
Defense Systems | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 111 | 110 | 133 |
Depreciation and amortization | 107 | 101 | 91 |
Mission Systems | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 288 | 248 | 236 |
Depreciation and amortization | 246 | 242 | 233 |
Space Systems | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 798 | 529 | 530 |
Depreciation and amortization | 447 | 396 | 344 |
Corporate | |||
Additional information by Segment (Table Amounts) [Abstract] | |||
Capital Expenditures | 74 | 58 | 51 |
Depreciation and amortization | $ 154 | $ 281 | $ 305 |