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Prior-Period Financial Statements (Tables) | 3 Months Ended
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Apr. 02, 2017
Accounting Changes and Error Corrections [Abstract] |
Prior-Period Financial Statements | CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)
| Three Months Ended |  | Effect of the Adoption of |  | Three Months Ended
| April 3, 2016 |  | ASU |  | ASC |  | ASU |  | April 3, 2016
(Dollars in millions, except per-share amounts) | As Reported |  | 2016-09 |  | Topic 606 |  | 2015-17 |  | As Adjusted
Revenue: |  |  |  |  |  |  |  |  |
Products | $ | 4,864 |  |  | $ | — |  |  | $ | (282 | ) |  | $ | — |  |  | $ | 4,582 |
Services | 2,860 |  |  | — |  |  | 34 |  |  | — |  |  | 2,894 |
| 7,724 |  |  | — |  |  | (248 | ) |  | — |  |  | 7,476 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |  |
Products | 3,784 |  |  | — |  |  | (149 | ) |  | — |  |  | 3,635 |
Services | 2,427 |  |  | — |  |  | 29 |  |  | — |  |  | 2,456 |
G&A | 460 |  |  | — |  |  | 1 |  |  | — |  |  | 461 |
| 6,671 |  |  | — |  |  | (119 | ) |  | — |  |  | 6,552 |
Operating earnings | 1,053 |  |  | — |  |  | (129 | ) |  | — |  |  | 924 |
Interest, net | (22 | ) |  | — |  |  | — |  |  | — |  |  | (22 | )
Other, net | 10 |  |  | — |  |  | — |  |  | — |  |  | 10 |
Earnings from continuing operations before income tax | 1,041 |  |  | — |  |  | (129 | ) |  | — |  |  | 912 |
Provision for income tax, net | 311 |  |  | (15 | ) |  | (38 | ) |  | — |  |  | 258 |
Earnings from continuing operations | 730 |  |  | 15 |  |  | (91 | ) |  | — |  |  | 654 |
Discontinued operations | (13 | ) |  | — |  |  | — |  |  | — |  |  | (13 | )
Net earnings | $ | 717 |  |  | $ | 15 |  |  | $ | (91 | ) |  | $ | — |  |  | $ | 641 |
Earnings per share |  |  |  |  |  |  |  |  |  |  |
Basic: |  |  |  |  |  |  |  |  |
Continuing operations | $ | 2.37 |  |  | $ | 0.05 |  |  | $ | (0.30 | ) |  | $ | — |  |  | $ | 2.12 |
Discontinued operations | (0.04 | ) |  | — |  |  | — |  |  | — |  |  | (0.04 | )
Net earnings | $ | 2.33 |  |  | $ | 0.05 |  |  | $ | (0.30 | ) |  | $ | — |  |  | $ | 2.08 |
Diluted: |  |  |  |  |  |  |  |  |  |
Continuing operations | $ | 2.34 |  |  | $ | 0.03 |  |  | $ | (0.29 | ) |  | $ | — |  |  | $ | 2.08 |
Discontinued operations | (0.04 | ) |  | — |  |  | — |  |  | — |  |  | (0.04 | )
Net earnings | $ | 2.30 |  |  | $ | 0.03 |  |  | $ | (0.29 | ) |  | $ | — |  |  | $ | 2.04 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
| Three Months Ended |  | Effect of the Adoption of |  | Three Months Ended
| April 3, 2016 |  | ASU |  | ASC |  | ASU |  | April 3, 2016
(Dollars in millions) | As Reported |  | 2016-09 |  | Topic 606 |  | 2015-17 |  | As Adjusted
Net earnings | $ | 717 |  |  | $ | 15 |  |  | $ | (91 | ) |  | $ | — |  |  | $ | 641 |
Gains on cash flow hedges | 182 |  |  | — |  |  | — |  |  | — |  |  | 182 |
Unrealized losses on securities | (9 | ) |  | — |  |  | — |  |  | — |  |  | (9 | )
Foreign currency translation adjustments | 181 |  |  | — |  |  | (1 | ) |  | — |  |  | 180 |
Change in retirement plans’ funded status | 60 |  |  | — |  |  | — |  |  | — |  |  | 60 |
Other comprehensive income, pretax | 414 |  |  | — |  |  | (1 | ) |  | — |  |  | 413 |
Provision for income tax, net | 69 |  |  | — |  |  | — |  |  | — |  |  | 69 |
Other comprehensive income, net of tax | 345 |  |  | — |  |  | (1 | ) |  | — |  |  | 344 |
Comprehensive income | $ | 1,062 |  |  | $ | 15 |  |  | $ | (92 | ) |  | $ | — |  |  | $ | 985 |
CONSOLIDATED BALANCE SHEET (UNAUDITED)
|  |  | Effect of the Adoption of |  |
| December 31, 2016 |  | ASU |  | ASC |  | ASU |  | December 31, 2016
(Dollars in millions) | As Reported |  | 2016-09 |  | Topic 606 |  | 2015-17* |  | As Adjusted
ASSETS |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |
Cash and equivalents | $ | 2,334 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,334 |
Accounts receivable | 3,611 |  |  | — |  |  | (212 | ) |  | — |  |  | 3,399 |
Unbilled receivables | 5,282 |  |  | — |  |  | (1,070 | ) |  | — |  |  | 4,212 |
Inventories | 3,523 |  |  | — |  |  | 2,294 |  |  | — |  |  | 5,817 |
Other current assets | 697 |  |  | — |  |  | 90 |  |  | (15 | ) |  | 772 |
Total current assets | 15,447 |  |  | — |  |  | 1,102 |  |  | (15 | ) |  | 16,534 |
Noncurrent assets: |  |  |  |  |  |  |  |  |  |  |
Property, plant and equipment, net | 3,467 |  |  | — |  |  | 10 |  |  | — |  |  | 3,477 |
Intangible assets, net | 678 |  |  | — |  |  | — |  |  | — |  |  | 678 |
Goodwill | 11,445 |  |  | — |  |  | — |  |  | — |  |  | 11,445 |
Other assets | 1,835 |  |  | — |  |  | — |  |  | (797 | ) |  | 1,038 |
Total noncurrent assets | 17,425 |  |  | — |  |  | 10 |  |  | (797 | ) |  | 16,638 |
Total assets | $ | 32,872 |  |  | $ | — |  |  | $ | 1,112 |  |  | $ | (812 | ) |  | $ | 33,172 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |
Short-term debt and current portion of long-term debt | $ | 900 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 900 |
Accounts payable | 2,538 |  |  | — |  |  | — |  |  | — |  |  | 2,538 |
Customer advances and deposits | 4,939 |  |  | — |  |  | 1,888 |  |  | — |  |  | 6,827 |
Other current liabilities | 4,469 |  |  | — |  |  | (361 | ) |  | (923 | ) |  | 3,185 |
Total current liabilities | 12,846 |  |  | — |  |  | 1,527 |  |  | (923 | ) |  | 13,450 |
Noncurrent liabilities: |  |  |  |  |  |  |  |  |  |  |
Long-term debt | 2,988 |  |  | — |  |  | — |  |  | — |  |  | 2,988 |
Other liabilities | 6,062 |  |  | — |  |  | 260 |  |  | 111 |  |  | 6,433 |
Commitments and contingencies (see Note M) |  |  |  |  |  |  |  |  |  |  |
Total noncurrent liabilities | 9,050 |  |  | — |  |  | 260 |  |  | 111 |  |  | 9,421 |
Shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |
Common stock | 482 |  |  | — |  |  | — |  |  | — |  |  | 482 |
Surplus | 2,819 |  |  | — |  |  | — |  |  | — |  |  | 2,819 |
Retained earnings | 25,227 |  |  | — |  |  | (684 | ) |  | — |  |  | 24,543 |
Treasury stock | (14,156 | ) |  | — |  |  | — |  |  | — |  |  | (14,156 | )
Accumulated other comprehensive loss | (3,396 | ) |  | — |  |  | 9 |  |  | — |  |  | (3,387 | )
Total shareholders’ equity | 10,976 |  |  | — |  |  | (675 | ) |  | — |  |  | 10,301 |
Total liabilities and shareholders’ equity | $ | 32,872 |  |  | $ | — |  |  | $ | 1,112 |  |  | $ | (812 | ) |  | $ | 33,172 |
* The effect of the adoption of ASU 2015-17 includes the reclassification of current deferred tax assets and liabilities of $10 and $335, respectively, which are included as effects of adopting ASC Topic 606. CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
| Three Months Ended |  | Effect of the Adoption of |  | Three Months Ended
| April 3, 2016 |  | ASU |  | ASC |  | ASU |  | April 3, 2016
(Dollars in millions) | As Reported |  | 2016-09 |  | Topic 606 |  | 2015-17 |  | As Adjusted
Cash flows from operating activities - continuing operations: |  |  |  |  |  |  |  |  |
Net earnings | $ | 717 |  |  | $ | 15 |  |  | $ | (91 | ) |  | $ | — |  |  | $ | 641 |
Adjustments to reconcile net earnings to net cash provided by operating activities: |  |  |  |  |  |  |  |  |
Depreciation of property, plant and equipment | 90 |  |  | — |  |  | (1 | ) |  | — |  |  | 89 |
Amortization of intangible assets | 27 |  |  | — |  |  | — |  |  | — |  |  | 27 |
Equity-based compensation expense | 27 |  |  | — |  |  | — |  |  | — |  |  | 27 |
Excess tax benefit from equity-based compensation | (15 | ) |  | 15 |  |  | — |  |  | — |  |  | — |
Deferred income tax provision | 20 |  |  | — |  |  | (38 | ) |  | — |  |  | (18 | )
Discontinued operations | 13 |  |  | — |  |  | — |  |  | — |  |  | 13 |
(Increase) decrease in assets, net of effects of business acquisitions: |  |  |  |  |  |  |  |  |
Accounts receivable | (195 | ) |  | — |  |  | (15 | ) |  | — |  |  | (210 | )
Unbilled receivables | (337 | ) |  | — |  |  | 61 |  |  | — |  |  | (276 | )
Inventories | (133 | ) |  | — |  |  | (88 | ) |  | — |  |  | (221 | )
Increase (decrease) in liabilities, net of effects of business acquisitions: |  |  |  |  |  |  |  |  |
Accounts payable | 179 |  |  | — |  |  | — |  |  | — |  |  | 179 |
Customer advances and deposits | (209 | ) |  | — |  |  | 191 |  |  | — |  |  | (18 | )
Income taxes payable | 268 |  |  | (15 | ) |  | — |  |  | — |  |  | 253 |
Other current liabilities | (70 | ) |  | 26 |  |  | (8 | ) |  | — |  |  | (52 | )
Other, net | 57 |  |  | — |  |  | (11 | ) |  | — |  |  | 46 |
Net cash provided by operating activities | 439 |  |  | 41 |  |  | — |  |  | — |  |  | 480 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |
Capital expenditures | (65 | ) |  | — |  |  | — |  |  | — |  |  | (65 | )
Other, net | (53 | ) |  | — |  |  | — |  |  | — |  |  | (53 | )
Net cash used by investing activities | (118 | ) |  | — |  |  | — |  |  | — |  |  | (118 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |
Purchases of common stock | (1,026 | ) |  | — |  |  | — |  |  | — |  |  | (1,026 | )
Dividends paid | (215 | ) |  | — |  |  | — |  |  | — |  |  | (215 | )
Other, net | 48 |  |  | (41 | ) |  | — |  |  | — |  |  | 7 |
Net cash used by financing activities | (1,193 | ) |  | (41 | ) |  | — |  |  | — |  |  | (1,234 | )
Net cash used by discontinued operations | (6 | ) |  | — |  |  | — |  |  | — |  |  | (6 | )
Net decrease in cash and equivalents | (878 | ) |  | — |  |  | — |  |  | — |  |  | (878 | )
Cash and equivalents at beginning of period | 2,785 |  |  | — |  |  | — |  |  | — |  |  | 2,785 |
Cash and equivalents at end of period | $ | 1,907 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,907 |
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY (UNAUDITED)
| Common Stock |  | Retained |  | Treasury |  | Accumulated Other Comprehensive |  | Total Shareholders’
(Dollars in millions) | Par |  | Surplus |  | Earnings |  | Stock |  | Loss |  | Equity
December 31, 2015 - as reported | $ | 482 |  |  | $ | 2,730 |  |  | $ | 23,204 |  |  | $ | (12,392 | ) |  | $ | (3,286 | ) |  | $ | 10,738 |
Cumulative-effect adjustment of ASC Topic 606 on January 1, 2016 | — |  |  | — |  |  | (301 | ) |  | — |  |  | 3 |  |  | (298 | )
December 31, 2015 - as adjusted | 482 |  |  | 2,730 |  |  | 22,903 |  |  | (12,392 | ) |  | (3,283 | ) |  | 10,440 |
First quarter 2016 - as reported | — |  |  | 10 |  |  | 483 |  |  | (994 | ) |  | 345 |  |  | (156 | )
Effect of the adoption of ASU 2016-09 | — |  |  | (15 | ) |  | 15 |  |  | — |  |  | — |  |  | — |
Effect of the adoption of ASC Topic 606 | — |  |  | — |  |  | (91 | ) |  | — |  |  | (1 | ) |  | (92 | )
Effect of the adoption of ASU 2015-17 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
April 3, 2016 - as adjusted | $ | 482 |  |  | $ | 2,725 |  |  | $ | 23,310 |  |  | $ | (13,386 | ) |  | $ | (2,939 | ) |  | $ | 10,192 |

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