Summary operating results for each of our business segments were as follows (in millions):



	Quarters Ended						Six Months Ended
	June 24, 2018			June 25, 2017			June 24, 2018			June 25, 2017
Net sales
Aeronautics	$	5,321		$	4,922		$	9,719		$	9,042
Missiles and Fire Control	2,085			1,784			3,762			3,333
Rotary and Mission Systems	3,566			3,414			6,789			6,541
Space	2,426			2,443			4,763			4,859
Total net sales	$	13,398		$	12,563		$	25,033		$	23,775
Operating profit
Aeronautics	$	572		$	567		$	1,046		$	1,006
Missiles and Fire Control	279			253			540			487
Rotary and Mission Systems ^(a)	341			271			652			399
Space	274			256			538			546
Total business segment operating profit	1,466			1,347			2,776			2,438
Unallocated items
FAS/CAS operating adjustment ^(b)	451			404			902			807
Stock-based compensation	(60		)	(57		)	(98		)	(101		)
Severance and restructuring charges ^(c)	(96		)	—			(96		)	—
Other, net ^(d)	34			22			36			(26		)
Total unallocated items	329			369			744			680
Total consolidated operating profit	$	1,795		$	1,716		$	3,520		$	3,118
Intersegment sales
Aeronautics	$	27		$	40		$	52		$	65
Missiles and Fire Control	113			66			208			139
Rotary and Mission Systems	504			548			965			993
Space	48			19			93			45
Total intersegment sales	$	692		$	673		$	1,318		$	1,242


^(a)	Operating profit at our RMS business segment for the six months ended June 25, 2017 includes a charge of $120 million ($74 million, or $0.25 per share, after tax) recognized in the first quarter of 2017 for performance matters on the EADGE-T contract. See “Note 2 – Significant Accounting Policy Updates” (under the caption “Revenue Recognition”) for more information.


^(b)	The FAS/CAS operating adjustment represents the difference between the service cost component of FAS 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 pension adjustment, see the table below.

^(c)

Unallocated items for the quarter and six months ended June 24, 2018 include severance and restructuring charges totaling $96 million ($76 million, or $0.26 per share, after tax) associated with planned workforce reductions and the consolidation of certain operations at our RMS business segment. See “Note 11 – Other” (under the caption “Severance and Restructuring Charges”) for more information.

^(d)

Other, net for the six months ended June 25, 2017 includes a $64 million charge ($40 million, or $0.14 per share, after tax) recognized in the first quarter of 2017, 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 net FAS/CAS pension adjustments for the quarters and six months ended June 24, 2018 and June 25, 2017, including the service and non-service cost components of FAS pension expense, were as follows (in millions):



	Quarters Ended						Six Months Ended
	June 24, 2018			June 25, 2017			June 24, 2018			June 25, 2017
Total FAS expense and CAS costs
FAS pension expense	$	(357	)	$	(343	)	$	(713	)	$	(688	)
Less: CAS pension cost	609			562			1,217			1,124
Net FAS/CAS pension adjustment	$	252		$	219		$	504		$	436

Service and non-service cost reconciliation
FAS pension service cost	$	(158	)	$	(158	)	$	(315	)	$	(317	)
Less: CAS pension cost	609			562			1,217			1,124
FAS/CAS operating adjustment	451			404			902			807
Non-operating FAS pension expense	(199		)	(185		)	(398		)	(371		)
Net FAS/CAS pension adjustment	$	252		$	219		$	504		$	436

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 segment’s net sales and cost of sales. Our consolidated financial statements must present FAS pension and other postretirement benefit plan expense calculated in accordance with FAS requirements under U.S. GAAP. The operating portion of the net FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension expense and CAS pension cost. The non-service FAS pension cost component is included in other non-operating expense, net on our consolidated statements of earnings. 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 June 24, 2018
	Aeronautics		MFC		RMS		Space			Total
Net sales
Products	$	4,511	$	1,709	$	2,904	$	2,026		$	11,150
Services	810		376		662		400			2,248
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by contract type
Fixed-price	$	3,906	$	1,395	$	2,450	$	460		$	8,211
Cost-reimbursable	1,415		690		1,116		1,966			5,187
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by customer
U.S. Government	$	3,444	$	1,502	$	2,608	$	2,070		$	9,624
International ^(a)	1,835		542		822		344			3,543
U.S. commercial and other	42		41		136		12			231
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by geographic region
United States	$	3,486	$	1,543	$	2,744	$	2,082		$	9,855
Asia Pacific	786		125		301		31			1,243
Europe	678		46		224		332			1,280
Middle East	320		364		143		(19		)	808
Other	51		7		154		—			212
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398

	Six Months Ended June 24, 2018
	Aeronautics		MFC		RMS		Space			Total
Net sales
Products	$	8,281	$	3,062	$	5,621	$	3,948		$	20,912
Services	1,438		700		1,168		815			4,121
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by contract type
Fixed-price	$	7,121	$	2,507	$	4,658	$	860		$	15,146
Cost-reimbursable	2,598		1,255		2,131		3,903			9,887
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by customer
U.S. Government	$	6,209	$	2,590	$	4,964	$	3,940		$	17,703
International ^(a)	3,412		1,096		1,603		800			6,911
U.S. commercial and other	98		76		222		23			419
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by geographic region
United States	$	6,307	$	2,666	$	5,186	$	3,963		$	18,122
Asia Pacific	1,540		223		625		54			2,442
Europe	1,186		115		379		758			2,438
Middle East	577		744		314		(12		)	1,623
Other	109		14		285		—			408
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033


^(a)	International sales include FMS contracted through the U.S. Government and direct commercial sales to international governments and other international customers.



	Quarter Ended June 25, 2017
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	4,206	$	1,452	$	2,863	$	2,101	$	10,622
Services	716		332		551		342		1,941
Total net sales	$	4,922	$	1,784	$	3,414	$	2,443	$	12,563
Net sales by contract type
Fixed-price	$	3,312	$	1,258	$	2,492	$	592	$	7,654
Cost-reimbursable	1,610		526		922		1,851		4,909
Total net sales	$	4,922	$	1,784	$	3,414	$	2,443	$	12,563
Net sales by customer
U.S. Government	$	3,233	$	1,059	$	2,379	$	2,105	$	8,776
International ^(a)	1,655		687		929		325		3,596
U.S. commercial and other	34		38		106		13		191
Total net sales	$	4,922	$	1,784	$	3,414	$	2,443	$	12,563
Net sales by geographic region
United States	$	3,267	$	1,097	$	2,485	$	2,118	$	8,967
Asia Pacific	694		114		343		36		1,187
Europe	599		82		245		288		1,214
Middle East	300		482		126		1		909
Other	62		9		215		—		286
Total net sales	$	4,922	$	1,784	$	3,414	$	2,443	$	12,563

	Six Months Ended June 25, 2017
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	7,840	$	2,709	$	5,511	$	4,175	$	20,235
Services	1,202		624		1,030		684		3,540
Total net sales	$	9,042	$	3,333	$	6,541	$	4,859	$	23,775
Net sales by contract type
Fixed-price	$	6,228	$	2,343	$	4,728	$	1,102	$	14,401
Cost-reimbursable	2,814		990		1,813		3,757		9,374
Total net sales	$	9,042	$	3,333	$	6,541	$	4,859	$	23,775
Net sales by customer
U.S. Government	$	5,916	$	2,136	$	4,674	$	4,117	$	16,843
International ^(a)	3,058		1,132		1,700		715		6,605
U.S. commercial and other	68		65		167		27		327
Total net sales	$	9,042	$	3,333	$	6,541	$	4,859	$	23,775
Net sales by geographic region
United States	$	5,984	$	2,201	$	4,841	$	4,144	$	17,170
Asia Pacific	1,225		206		617		40		2,088
Europe	1,102		157		447		622		2,328
Middle East	635		752		236		53		1,676
Other	96		17		400		—		513
Total net sales	$	9,042	$	3,333	$	6,541	$	4,859	$	23,775


^(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):



	June 24, 2018		December 31, 2017
Assets
Aeronautics	$	8,283	$	7,713
Missiles and Fire Control	4,812		4,577
Rotary and Mission Systems	18,495		18,292
Space	5,502		5,240
Total business segment assets	37,092		35,822
Corporate assets ^(a)	8,033		10,798
Total assets	$	45,125	$	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.