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.