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INFORMATION ON BUSINESS SEGMENTS (Tables) | 3 Months Ended
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Mar. 25, 2018
Segment Reporting [Abstract] |
Summary Of Operating Results and Total Assets For Each Business Segment | Summary operating results for each of our business segments were as follows (in millions):
|  | Quarters Ended
|  | March 25, 2018 |  | March 26, 2017
Net sales |  |  |  |  |  |
Aeronautics |  | $ | 4,398 |  |  |  | $ | 4,120 |  |
Missiles and Fire Control |  | 1,677 |  |  |  | 1,549 |  |
Rotary and Mission Systems |  | 3,223 |  |  |  | 3,127 |  |
Space |  | 2,337 |  |  |  | 2,416 |  |
Total net sales |  | $ | 11,635 |  |  |  | $ | 11,212 |  |
Operating profit |  |  |  |  |  |
Aeronautics |  | $ | 474 |  |  |  | $ | 439 |  |
Missiles and Fire Control |  | 261 |  |  |  | 234 |  |
Rotary and Mission Systems (a) |  | 311 |  |  |  | 128 |  |
Space |  | 264 |  |  |  | 290 |  |
Total business segment operating profit |  | 1,310 |  |  |  | 1,091 |  |
Unallocated items |  |  |  |  |  |
FAS/CAS operating adjustment (b) |  | 451 |  |  |  | 403 |  |
Stock-based compensation |  | (38 | ) |  |  | (44 | ) |
Other, net (c) |  | 2 |  |  |  | (48 | ) |
Total unallocated items |  | 415 |  |  |  | 311 |  |
Total consolidated operating profit |  | $ | 1,725 |  |  |  | $ | 1,402 |  |
Intersegment sales |  |  |  |  |  |
Aeronautics |  | $ | 25 |  |  |  | $ | 25 |  |
Missiles and Fire Control |  | 95 |  |  |  | 73 |  |
Rotary and Mission Systems |  | 461 |  |  |  | 445 |  |
Space |  | 45 |  |  |  | 26 |  |
Total intersegment sales |  | $ | 626 |  |  |  | $ | 569 |  |
(a) | During the first quarter of 2017, we revised the total estimated costs to complete the EADGE-T contract as a consequence of ongoing performance matters and recorded an additional reserve of $120 million ($74 million, or $0.25 per share, after tax) at our RMS business segment.
(b) | The FAS/CAS operating adjustment represents the difference between the service cost component of U.S. GAAP financial accounting standards pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with U.S. Government CAS. For a detail of the FAS/CAS operating adjustment and the total net FAS/CAS adjustment, see the table below.
(c) | During the first quarter of 2017, we recognized a $64 million charge ($40 million, or $0.14 per share, after tax), which represents our portion of a non-cash asset impairment charge recorded by our equity method investee, Advanced Military Maintenance, Repair and Overhaul Center LLC (AMMROC). See “Note 11 – Other” (under the caption “Equity Method Investee Impairment”) for more information.
Our total FAS/CAS pension adjustment for the quarters ended March 25, 2018 and March 26, 2017, including the service and non-service cost components of FAS pension expense (in millions):
|  | Quarters Ended
|  | March 25, 2018 |  | March 26, 2017
Total FAS expense and CAS costs |  |  |  |  |  |
FAS pension expense |  | $ | (356 | ) |  |  | $ | (345 | ) |
Less: CAS pension cost |  | 608 |  |  |  | 562 |  |
Net FAS/CAS pension adjustment |  | $ | 252 |  |  |  | $ | 217 |  |
Service and non-service cost reconciliation |  |  |  |  |  |
FAS pension service cost |  | $ | (157 | ) |  |  | $ | (159 | ) |
Less: CAS pension cost |  | 608 |  |  |  | 562 |  |
FAS/CAS operating adjustment |  | 451 |  |  |  | 403 |  |
Non-operating FAS pension expense |  | (199 | ) |  |  | (186 | ) |
Net FAS/CAS pension adjustment |  | $ | 252 |  |  |  | $ | 217 |  |
We recover CAS pension cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS pension cost in each of our business segments’ net sales and cost of sales. Our consolidated financial statements must present FAS pension and other postretirement benefit plan expense calculated in accordance with financial accounting standards (FAS) requirements under U.S. GAAP. The operating portion of the FAS/CAS adjustment represents the difference between the service cost component of FAS pension expense and CAS. The non-service FAS pension cost component is included in other non-operating expense, net. The net FAS/CAS pension adjustment increases or decreases CAS pension cost to equal total FAS pension cost (both service and non-service). Net sales by total products and services, contract type, customer category and geographic region for each of our business segments were as follows (in millions):
|  | Quarter Ended March 25, 2018
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 3,770 |  |  | $ | 1,353 |  |  | $ | 2,717 |  |  | $ | 1,922 |  |  | $ | 9,762 |
Services |  | 628 |  |  | 324 |  |  | 506 |  |  | 415 |  |  | 1,873 |
Total net sales |  | $ | 4,398 |  |  | $ | 1,677 |  |  | $ | 3,223 |  |  | $ | 2,337 |  |  | $ | 11,635 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 3,215 |  |  | $ | 1,112 |  |  | $ | 2,208 |  |  | $ | 400 |  |  | $ | 6,935 |
Cost-reimbursable |  | 1,183 |  |  | 565 |  |  | 1,015 |  |  | 1,937 |  |  | 4,700 |
Total net sales |  | $ | 4,398 |  |  | $ | 1,677 |  |  | $ | 3,223 |  |  | $ | 2,337 |  |  | $ | 11,635 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 2,765 |  |  | $ | 1,088 |  |  | $ | 2,356 |  |  | $ | 1,870 |  |  | $ | 8,079 |
International (a) |  | 1,577 |  |  | 554 |  |  | 781 |  |  | 456 |  |  | 3,368 |
U.S. commercial and other |  | 56 |  |  | 35 |  |  | 86 |  |  | 11 |  |  | 188 |
Total net sales |  | $ | 4,398 |  |  | $ | 1,677 |  |  | $ | 3,223 |  |  | $ | 2,337 |  |  | $ | 11,635 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 2,821 |  |  | $ | 1,123 |  |  | $ | 2,442 |  |  | $ | 1,881 |  |  | $ | 8,267 |
Asia Pacific |  | 754 |  |  | 98 |  |  | 324 |  |  | 23 |  |  | 1,199 |
Europe |  | 508 |  |  | 69 |  |  | 155 |  |  | 426 |  |  | 1,158 |
Middle East |  | 257 |  |  | 380 |  |  | 171 |  |  | 7 |  |  | 815 |
Other |  | 58 |  |  | 7 |  |  | 131 |  |  | — |  |  | 196 |
Total net sales |  | $ | 4,398 |  |  | $ | 1,677 |  |  | $ | 3,223 |  |  | $ | 2,337 |  |  | $ | 11,635 |
(a) | International sales include FMS contracted through the U.S. Government and direct commercial sales to international governments and other international customers.
|  | Quarter Ended March 26, 2017
|  | Aeronautics |  | MFC |  | RMS |  | Space |  | Total
Net sales |  |  |  |  |  |  |  |  |  |
Products |  | $ | 3,634 |  |  | $ | 1,257 |  |  | $ | 2,648 |  |  | $ | 2,074 |  |  | $ | 9,613 |
Services |  | 486 |  |  | 292 |  |  | 479 |  |  | 342 |  |  | 1,599 |
Total net sales |  | $ | 4,120 |  |  | $ | 1,549 |  |  | $ | 3,127 |  |  | $ | 2,416 |  |  | $ | 11,212 |
Net sales by contract type |  |  |  |  |  |  |  |  |  |
Fixed-price |  | $ | 2,916 |  |  | $ | 1,085 |  |  | $ | 2,236 |  |  | $ | 510 |  |  | $ | 6,747 |
Cost-reimbursable |  | 1,204 |  |  | 464 |  |  | 891 |  |  | 1,906 |  |  | 4,465 |
Total net sales |  | $ | 4,120 |  |  | $ | 1,549 |  |  | $ | 3,127 |  |  | $ | 2,416 |  |  | $ | 11,212 |
Net sales by customer |  |  |  |  |  |  |  |  |  |
U.S. Government |  | $ | 2,683 |  |  | $ | 1,077 |  |  | $ | 2,295 |  |  | $ | 2,012 |  |  | $ | 8,067 |
International (a) |  | 1,403 |  |  | 445 |  |  | 771 |  |  | 390 |  |  | 3,009 |
U.S. commercial and other |  | 34 |  |  | 27 |  |  | 61 |  |  | 14 |  |  | 136 |
Total net sales |  | $ | 4,120 |  |  | $ | 1,549 |  |  | $ | 3,127 |  |  | $ | 2,416 |  |  | $ | 11,212 |
Net sales by geographic region |  |  |  |  |  |  |  |  |  |
United States |  | $ | 2,717 |  |  | $ | 1,104 |  |  | $ | 2,356 |  |  | $ | 2,026 |  |  | $ | 8,203 |
Asia Pacific |  | 531 |  |  | 92 |  |  | 274 |  |  | 4 |  |  | 901 |
Europe |  | 503 |  |  | 75 |  |  | 202 |  |  | 334 |  |  | 1,114 |
Middle East |  | 335 |  |  | 270 |  |  | 110 |  |  | 52 |  |  | 767 |
Other |  | 34 |  |  | 8 |  |  | 185 |  |  | — |  |  | 227 |
Total net sales |  | $ | 4,120 |  |  | $ | 1,549 |  |  | $ | 3,127 |  |  | $ | 2,416 |  |  | $ | 11,212 |
(a) | International sales include FMS contracted through the U.S. Government and direct commercial sales to international governments and other international customers.
Total assets for each of our business segments were as follows (in millions):
|  | March 25, 2018 |  | December 31, 2017
Assets |  |  |  |  |  |
Aeronautics |  | $ | 8,264 |  |  |  | $ | 7,713 |  |
Missiles and Fire Control |  | 4,704 |  |  |  | 4,577 |  |
Rotary and Mission Systems |  | 19,034 |  |  |  | 18,292 |  |
Space |  | 5,561 |  |  |  | 5,240 |  |
Total business segment assets |  | 37,563 |  |  |  | 35,822 |  |
Corporate assets (a) |  | 9,071 |  |  |  | 10,798 |  |
Total assets |  | $ | 46,634 |  |  |  | $ | 46,620 |  |
(a) | Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans.

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