XML 63 R53.htm IDEA: XBRL DOCUMENT
v3.10.0.1

BUSINESS SEGMENTS (Tables) | 12 Months Ended
--- | ---
Jun. 29, 2018
Segment Reporting [Abstract] |
Schedule of Revenue, Operating Income and Other Selected Financial Information by Business Segment | Other selected financial information by business segment and geographical area is summarized below:
| 2018 |  | 2017
| (In millions)
Capital Expenditures |  |  |
Communication Systems | $ | 26 |  |  | $ | 14 |
Electronic Systems | 57 |  |  | 40 |
Space and Intelligence Systems | 33 |  |  | 34 |
Corporate | 20 |  |  | 27 |
Discontinued operations | — |  |  | 4 |
| $ | 136 |  |  | $ | 119 |
Depreciation and Amortization |  |  |
Communication Systems | $ | 57 |  |  | $ | 64 |
Electronic Systems | 44 |  |  | 29 |
Space and Intelligence Systems | 36 |  |  | 37 |
Corporate | 122 |  |  | 142 |
Discontinued operations | — |  |  | 39 |
| $ | 259 |  |  | $ | 311 |
Geographical Information for Continuing Operations |  |  |
U.S. operations: |  |  |
Revenue | $ | 5,854 |  |  | $ | 5,637 |
Long-lived assets | $ | 892 |  |  | $ | 896 |
International operations: |  |  |
Revenue | $ | 314 |  |  | $ | 260 |
Long-lived assets | $ | 8 |  |  | $ | 8 |
Segment revenue, segment operating income and a reconciliation of segment operating income to total income from continuing operations before income taxes are as follows:
| 2018 |  | 2017
| (In millions)
Revenue |  |  |
Communication Systems | $ | 1,904 |  |  | $ | 1,754 |
Electronic Systems | 2,365 |  |  | 2,245 |
Space and Intelligence Systems | 1,913 |  |  | 1,904 |
Corporate eliminations | (14 | ) |  | (6 | )
| $ | 6,168 |  |  | $ | 5,897 |
Income from Continuing Operations before Income Taxes |  |  |
Segment Operating Income:(1) |  |  |
Communication Systems | $ | 566 |  |  | $ | 514 |
Electronic Systems | 432 |  |  | 457 |
Space and Intelligence Systems | 331 |  |  | 314 |
Unallocated corporate expense and corporate eliminations(2) | (225 | ) |  | (228 | )
Pension adjustment | (184 | ) |  | (164 | )
Non-operating income(3) | 156 |  |  | 166 |
Net interest expense | (168 | ) |  | (170 | )
Total | $ | 908 |  |  | $ | 889 |
_______________
(1) | In fiscal 2017, segment operating income included stranded costs and Financial Accounting Standards (“FAS”) pension income previously reported as part of our former Critical Networks segment but now re-allocated to our remaining three segments.
(2) | Unallocated corporate expense and corporate eliminations includes: (i) $101 million and $109 million in fiscal 2018 and 2017, respectively, for amortization of identifiable intangible assets acquired as a result of our acquisition of Exelis (because the acquisition of Exelis benefited the entire Company as opposed to any individual segment, the amortization of identifiable intangible assets acquired in the Exelis acquisition was recorded as unallocated corporate expense), (ii) $5 million and $58 million of Exelis acquisition-related and other charges in fiscal 2018 and 2017, respectively, (iii) $47 million of charges related to our decision to transition and exit a commercial air-to-ground LTE radio communications line of business and other items in fiscal 2018, and (iv) a $12 million non-cash adjustment for deferred compensation in fiscal 2018.
(3) | Non-operating income in fiscal 2018 includes $27 million of losses and other costs related to debt refinancing. Additional information regarding non-operating income is set forth in Note 20: Non-Operating Income.
Schedule of Disaggregation of Revenue by Business Segment | Disaggregation of Revenue Communication Systems: Communication Systems operates principally on a “commercial” market-driven business model through which the business segment provides ready-to-ship commercial off-the-shelf products to customers in the U.S. and internationally. Communication Systems revenue is primarily derived from fixed-price contracts and is generally recognized at the point in time when the product is received and accepted by the customer. We disaggregate Communication Systems revenue by geographical region, as we believe this category best depicts how the nature, amount, timing and uncertainty of Communication Systems revenue and cash flows are affected by economic factors:
| 2018 |  | 2017
| (In millions)
Revenue By Geographical Region |  |  |  |
United States | $ | 983 |  |  | $ | 811 |
International | 921 |  |  | 943 |
| $ | 1,904 |  |  | $ | 1,754 |
Electronic Systems: Electronic Systems revenue is primarily derived from U.S. Government development and production contracts and is generally recognized over time using the POC cost-to-cost method. We disaggregate Electronic Systems revenue by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of Electronic Systems revenue and cash flows are affected by economic factors:
| 2018 |  | 2017
| (In millions)
Revenue By Customer Relationship |  |  |
Prime contractor | $ | 1,670 |  |  | $ | 1,653 |
Subcontractor | 695 |  |  | 592 |
| $ | 2,365 |  |  | $ | 2,245 |
Revenue By Contract Type |  |  |  |  |
Fixed-price(1) | $ | 1,900 |  |  | $ | 1,833 |
Cost-reimbursable | 465 |  |  | 412 |
| $ | 2,365 |  |  | $ | 2,245 |
Revenue By Geographical Region |  |  |  |  |
United States | $ | 1,890 |  |  | $ | 1,769 |
International | 475 |  |  | 476 |
| $ | 2,365 |  |  | $ | 2,245 |
_______________
(1) | Includes revenue derived from time-and-materials contracts.
Space and Intelligence Systems: Space and Intelligence Systems revenue is primarily derived from U.S. Government development and production contracts and is generally recognized over time using the POC cost-to-cost method. We disaggregate Space and Intelligence Systems revenue by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of Space and Intelligence Systems revenue and cash flows are affected by economic factors:
| 2018 |  | 2017
| (In millions)
Revenue By Customer Relationship |  |  |
Prime contractor | $ | 1,384 |  |  | $ | 1,369 |
Subcontractor | 529 |  |  | 535 |
| $ | 1,913 |  |  | $ | 1,904 |
Revenue By Contract Type |  |  |  |  |
Fixed-price(1) | $ | 544 |  |  | $ | 448 |
Cost-reimbursable | 1,369 |  |  | 1,456 |
| $ | 1,913 |  |  | $ | 1,904 |
Revenue By Geographical Region |  |  |  |  |
United States | $ | 1,861 |  |  | $ | 1,821 |
International | 52 |  |  | 83 |
| $ | 1,913 |  |  | $ | 1,904 |
_______________
(1) | Includes revenue derived from time-and-materials contracts.
Schedule of Assets by Business Segment | Total assets by business segment is as follows:
| 2018 |  | 2017
| (In millions)
Total Assets |  |  |
Communication Systems | $ | 1,567 |  |  | $ | 1,543 |
Electronic Systems | 4,174 |  |  | 4,090 |
Space and Intelligence Systems | 2,193 |  |  | 2,117 |
Corporate(1) | 1,917 |  |  | 2,362 |
| $ | 9,851 |  |  | $ | 10,112 |
_______________
(1) | Identifiable intangible assets acquired in connection with our acquisition of Exelis in the fourth quarter of fiscal 2015 were recorded as Corporate assets because they benefited the entire Company as opposed to any individual segment. Exelis identifiable intangible asset balances of continuing operations recorded as Corporate assets were approximately $1.0 billion and $1.1 billion as of June 29, 2018 and June 30, 2017, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan investments, buildings and equipment and identifiable intangibles, and also included any assets and liabilities from discontinued operations. See Note 3: Discontinued Operations for additional information regarding discontinued operations.

X
- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=109196051&loc=SL49130545-203045 + Details
Name: | us-gaap_DisaggregationOfRevenueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8924-108599 + Details
Name: | us-gaap_ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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