Segment Information for General Dynamics The 1998 annual report of General Dynamics contained the following note to the financial statements (dollar amounts are stated in millions):
S. BUSINESS SEGMENT INFORMATION The company’s primary business is supplying sophisticated defense systems to the United States and its allies. Management has chosen to organize its business segments in accordance with several factors, including a combination of the nature of products and services offered, the nature of the production processes and the class of customer for the company’s products. Operating segments are aggregated for reporting purposes consistent with these criteria. Management measures its segments’ profit based primarily on operating earnings. As such, net interest and other income items have not been allocated to the company’s segments. For a further description of the company’s business segments, see Management’s Discussion and Analysis of the Results of Operations and Financial Condition.
Summary financial information for each of the company’s segments follows:

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Net Sales Operating Earnings Sales to U.S. Government 1998 1997 1996 1998 1997 1996 1998 1997 1996 Marine Systems $2.666 $2,311 $2,332 $285 $234 $216 $2,645 $2,280 $2,316 Combat Systems 1.272 1.509 1,026 166 187 140 1,165 1,371 996 Information Systems & Technology 796 59 351 Other 236 $4.970 242 223 32 25 - $4,062 $3,581 $542 $446 $353 $4,161 $3,651 $3,312