XML 42 R28.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Significant Accounting Policies and Recent Accounting Standards (Tables) | 3 Months Ended
--- | ---
Sep. 28, 2018
Accounting Policies [Abstract] |
Schedule of Effect of Adopting ASC 606 and ASU 2017-07 on Condensed Consolidated Financial Statements (Unaudited) | The following table summarizes the effect of adopting ASC 606 and ASU 2017-07 on our Condensed Consolidated Statement of Income (Unaudited) for the quarter ended September 29, 2017:
| Quarter Ended September 29, 2017
| As Reported |  | Effect of Adopting ASC 606 |  | Effect of Adopting ASU 2017-07 |  | As Recast
| (In millions, except per share amounts)
Revenue from product sales and services | $ | 1,413 |  |  | $ | (3 | ) |  | $ | — |  |  | $ | 1,410 |
Cost of product sales and services | (885 | ) |  | 3 |  |  | (37 | ) |  | (919 | )
Engineering, selling and administrative expenses | (256 | ) |  | (3 | ) |  | (9 | ) |  | (268 | )
Non-operating income | — |  |  | — |  |  | 46 |  |  | 46 |
Interest expense | (41 | ) |  | — |  |  | — |  |  | (41 | )
Income from continuing operations before income taxes | 231 |  |  | (3 | ) |  | — |  |  | 228 |
Income taxes | (64 | ) |  | 1 |  |  | — |  |  | (63 | )
Income from continuing operations | 167 |  |  | (2 | ) |  | — |  |  | 165 |
Discontinued operations, net of income taxes | (6 | ) |  | — |  |  | — |  |  | (6 | )
Net income | $ | 161 |  |  | $ | (2 | ) |  | $ | — |  |  | $ | 159 |
Net income per common share |  |  |  |  |  |  |
Basic |  |  |  |  |  |  |
Continuing operations | $ | 1.40 |  |  | $ | (0.01 | ) |  | $ | — |  |  | $ | 1.39 |
Discontinued operations | (0.05 | ) |  | (0.01 | ) |  | — |  |  | (0.06 | )
| $ | 1.35 |  |  | $ | (0.02 | ) |  | $ | — |  |  | $ | 1.33 |
Diluted |  |  |  |  |  |  |
Continuing operations | $ | 1.38 |  |  | $ | (0.02 | ) |  | $ | — |  |  | $ | 1.36 |
Discontinued operations | (0.06 | ) |  | 0.01 |  |  | — |  |  | (0.05 | )
| $ | 1.32 |  |  | $ | (0.01 | ) |  | $ | — |  |  | $ | 1.31 |
The following table summarizes the effect of the adoption of ASC 606 on our Condensed Consolidated Balance Sheet (Unaudited) at June 29, 2018:
| June 29, 2018
| As Reported |  | Effect of Adopting ASC 606 |  | As Recast
| (In millions, except shares)
Assets |  |  |  |  |
Current Assets |  |  |  |  |
Cash and cash equivalents | $ | 288 |  |  | $ | — |  |  | $ | 288 |
Receivables | 735 |  |  | (269 | ) |  | 466 |
Contract assets | — |  |  | 782 |  |  | 782 |
Inventories | 925 |  |  | (514 | ) |  | 411 |
Income taxes receivable | 174 |  |  | — |  |  | 174 |
Other current assets | 101 |  |  | 2 |  |  | 103 |
Total current assets | 2,223 |  |  | 1 |  |  | 2,224 |
Non-current Assets |  |  |  |  |
Property, plant and equipment | 900 |  |  | — |  |  | 900 |
Goodwill | 5,372 |  |  | — |  |  | 5,372 |
Other intangible assets | 989 |  |  | — |  |  | 989 |
Non-current deferred income taxes | 116 |  |  | 3 |  |  | 119 |
Other non-current assets | 239 |  |  | 8 |  |  | 247 |
Total non-current assets | 7,616 |  |  | 11 |  |  | 7,627 |
| $ | 9,839 |  |  | $ | 12 |  |  | $ | 9,851 |
Liabilities and Equity |  |  |  |  |
Current Liabilities |  |  |  |  |
Short-term debt | $ | 78 |  |  | $ | — |  |  | $ | 78 |
Accounts payable | 622 |  |  | — |  |  | 622 |
Advanced payments and unearned income | 314 |  |  | (314 | ) |  | — |
Contract liabilities | — |  |  | 372 |  |  | 372 |
Compensation and benefits | 142 |  |  | — |  |  | 142 |
Other accrued items | 313 |  |  | 4 |  |  | 317 |
Income taxes payable | 15 |  |  | — |  |  | 15 |
Current portion of long-term debt, net | 304 |  |  | — |  |  | 304 |
Total current liabilities | 1,788 |  |  | 62 |  |  | 1,850 |
Non-current Liabilities |  |  |  |  |
Defined benefit plans | 714 |  |  | — |  |  | 714 |
Long-term debt, net | 3,408 |  |  | — |  |  | 3,408 |
Non-current deferred income taxes | 90 |  |  | (11 | ) |  | 79 |
Other long-term liabilities | 517 |  |  | 5 |  |  | 522 |
Total non-current liabilities | 4,729 |  |  | (6 | ) |  | 4,723 |
Equity |  |  |  |  |
Shareholders’ Equity: |  |  |  |  |
Common stock | 118 |  |  | — |  |  | 118 |
Other capital | 1,714 |  |  | — |  |  | 1,714 |
Retained earnings | 1,692 |  |  | (44 | ) |  | 1,648 |
Accumulated other comprehensive loss | (202 | ) |  | — |  |  | (202 | )
Total equity | 3,322 |  |  | (44 | ) |  | 3,278 |
| $ | 9,839 |  |  | $ | 12 |  |  | $ | 9,851 |
The following table presents the effect of the adoption of ASC 606 on our Condensed Consolidated Statement of Cash Flows (Unaudited) for the quarter ended September 29, 2017:
| Quarter Ended September 29, 2017
| As Reported |  | Effect of Adopting ASC 606 |  | As Recast
| (In millions, except shares)
Net income | $ | 161 |  |  | (2 | ) |  | $ | 159 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
Amortization of acquisition-related intangibles(1) | 28 |  |  | — |  |  | 28 |
Depreciation and other amortization(1) | 37 |  |  | — |  |  | 37 |
Share-based compensation | 11 |  |  | — |  |  | 11 |
Pension income | (34 | ) |  | — |  |  | (34 | )
(Increase) decrease in: |  |  |  |  |
Accounts receivable | (83 | ) |  | 29 |  |  | (54 | )
Contract assets | — |  |  | (59 | ) |  | (59 | )
Inventories | (56 | ) |  | 32 |  |  | (24 | )
Increase (decrease) in: |  |  |  |  |
Accounts payable | (88 | ) |  | — |  |  | (88 | )
Advanced payments and unearned income | 12 |  |  | (12 | ) |  | — |
Contract liabilities | — |  |  | 18 |  |  | 18 |
Income taxes | 126 |  |  | (1 | ) |  | 125 |
Other | (19 | ) |  | (5 | ) |  | (24 | )
Net cash provided by operating activities | $ | 95 |  |  | $ | — |  |  | $ | 95 |
_______________
(1) | “Amortization of acquisition-related intangibles” includes amortization of non-Exelis Inc. acquisition-related intangibles, which was previously included in the “Depreciation and amortization” line item in our Condensed Consolidated Statement of Cash Flows (Unaudited) in our Form 10-Q for the quarter ended September 29, 2017.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=109236672&loc=d3e765-108305 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.10-01.(b)(6)) -URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22580-107794 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=109236672&loc=d3e725-108305 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794 + Details
Name: | us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration