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Segment Information (Unaudited)
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
The company is aligned in three operating sectors, which also comprise our reportable segments: Aerospace Systems, Mission Systems and Technology Services.
The following table presents sales and operating income by segment:
 
Three Months Ended September 30
 
Nine Months Ended September 30
$ in millions
2017
 
2016
 
2017
 
2016
Sales
 
 
 
 
 
 
 
Aerospace Systems
$
3,082

 
$
2,782

 
$
8,950

 
$
7,956

Mission Systems
2,837

 
2,698

 
8,357

 
8,081

Technology Services
1,183

 
1,190

 
3,552

 
3,617

Intersegment eliminations
(575
)
 
(515
)
 
(1,690
)
 
(1,543
)
Total sales
6,527

 
6,155

 
19,169

 
18,111

Operating income
 
 
 
 
 
 
 
Aerospace Systems
334

 
311

 
961

 
909

Mission Systems
363

 
351

 
1,090

 
1,055

Technology Services
133

 
130

 
398

 
387

Intersegment eliminations
(71
)
 
(61
)
 
(211
)
 
(188
)
Total segment operating income
759


731

 
2,238

 
2,163

Net FAS/CAS pension adjustment
172

 
91

 
445

 
234

Unallocated corporate expenses
(85
)
 
5

 
(148
)
 
(31
)
Other
(1
)
 
(1
)
 
(3
)
 
(4
)
Total operating income
$
845

 
$
826

 
$
2,532

 
$
2,362


Net FAS/CAS Pension Adjustment
For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with the Federal Acquisition Regulation (FAR) and the related U.S. Government Cost Accounting Standards (CAS). The net FAS/CAS pension adjustment reflects the difference between CAS pension expense included as cost in segment operating income and FAS expense included in total operating income.
Unallocated Corporate Expenses
Unallocated corporate expenses include the portion of corporate expenses not considered allowable or allocable under applicable CAS or the FAR, and therefore not allocated to the segments. Such costs consist of a portion of management and administration, legal, environmental, compensation, retiree benefits and corporate unallowable costs.