as a result of the transaction , we recognized a net gain of approximately $ 1.3 billion , including $ 1.2 billion recognized in 2016 . the net gain represents the $ 2.5 billion fair value of the shares of lockheed martin common stock exchanged and retired as part of the exchange offer , plus the $ 1.8 billion one-time special cash payment , less the net book value of the is&gs business of about $ 3.0 billion at august 16 , 2016 and other adjustments of about $ 100 million . in 2017 , we recognized an additional gain of $ 73 million , which reflects certain post-closing adjustments , including certain tax adjustments and the final determination of net working capital . we classified the operating results of our former is&gs business as discontinued operations in our consolidated financial statements in accordance with u.s . gaap , as the divestiture of this business represented a strategic shift that had a major effect on our operations and financial results . however , the cash flows generated by the is&gs business have not been reclassified in our consolidated statements of cash flows as we retained this cash as part of the transaction . the operating results , prior to the august 16 , 2016 divestiture date , of the is&gs business that have been reflected within net earnings from discontinued operations for the year ended december 31 , 2016 are as follows ( in millions ) : .

Table:
net sales | $ 3410
cost of sales | -2953 ( 2953 )
severance charges | -19 ( 19 )
gross profit | 438
other income net | 16
operating profit | 454
earnings from discontinued operations before income taxes | 454
income tax expense | -147 ( 147 )
net gain on divestiture of discontinued operations | 1205
net earnings from discontinued operations | $ 1512
the operating results of the is&gs business reported as discontinued operations are different than the results previously reported for the is&gs business segment .
results reported within net earnings from discontinued operations only include costs that were directly attributable to the is&gs business and exclude certain corporate overhead costs that were previously allocated to the is&gs business .
as a result , we reclassified $ 82 million in 2016 of corporate overhead costs from the is&gs business to other unallocated , net on our consolidated statement of earnings .
additionally , we retained all assets and obligations related to the pension benefits earned by former is&gs business salaried employees through the date of divestiture .
therefore , the non-service portion of net pension costs ( e.g. , interest cost , actuarial gains and losses and expected return on plan assets ) for these plans have been reclassified from the operating results of the is&gs business segment and reported as a reduction to the fas/cas pension adjustment .
these net pension costs were $ 54 million for the year ended december 31 , 2016 .
the service portion of net pension costs related to is&gs business 2019s salaried employees that transferred to leidos were included in the operating results of the is&gs business classified as discontinued operations because such costs are no longer incurred by us .
significant severance charges related to the is&gs business were historically recorded at the lockheed martin corporate office .
these charges have been reclassified into the operating results of the is&gs business , classified as discontinued operations , and excluded from the operating results of our continuing operations .
the amount of severance charges reclassified were $ 19 million in 2016 .
financial information related to cash flows generated by the is&gs business , such as depreciation and amortization , capital expenditures , and other non-cash items , included in our consolidated statement of cash flows for the years ended december 31 , 2016 were not significant. .

Question: what is the gross profit margin?
Answer: 12.8%
Calculation: divide(438, 3410)