XML 38 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Apr. 01, 2018
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements
As required by the transition provisions of this update, the Company made the following reclassifications to the 2017 fiscal first quarter Consolidated Statement of Earnings to retroactively apply classification of the service cost component and the other components of NPBC:

(Dollars In millions)
Increase (Decrease) to Net Expense
Cost of products sold
$
23

Selling, marketing and administrative expenses
26

Research and development expense
10

Other (income) expense, net
(59
)
Earnings before provision for taxes on income
$
—


The following table summarizes the cumulative effect adjustments made to the 2018 opening balance of retained earnings upon adoption of the new accounting standards mentioned above:
(Dollars in Millions)
 
Cumulative Effect Adjustment Increase (Decrease) to Retained Earnings
ASU 2014-09 - Revenue from Contracts with Customers
 
$
(47
)
ASU 2016-01 - Financial Instruments
 
232

ASU 2016-16 - Income Taxes: Intra-Entity Transfers
 
1,311

Total
 
$
1,496

In accordance with the new standard requirements, the disclosure of the impact of adoption on the Company's Consolidated Statement of Earnings and Balance Sheet was as follows:
Statement of Earnings - For the fiscal three months ended April 1, 2018
(Dollars in millions)
As Reported
 
Effect of change
 
Balance without adoption of ASC 606
Sales to customers
$
20,009

 
(29
)
 
19,980

 
 
 
 
 
 
Net earnings
4,367

 
(25
)
 
4,342

 
 
 
 
 
 
Balance Sheet - As of April 1, 2018
 
As Reported
 
Effect of change
 
Balance without adoption of ASC 606
Assets
156,625

 
19

 
156,644

Liabilities
93,370

 
(3
)
 
93,367

 
 
 
 
 
 
Equity
$
63,255

 
22

 
63,277