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Backlog | 9 Months Ended
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Mar. 29, 2019
Revenue from Contract with Customer [Abstract] |
Backlog | Note F — Contract Assets and Contract Liabilities Contract assets include unbilled amounts typically resulting from revenue recognized exceeding amounts billed to customers for contracts utilizing the percentage of completion (“POC”) cost-to-cost revenue recognition method. We bill customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries and, in certain arrangements, the customer may withhold payment of a small portion of the contract price until contract completion. Contract liabilities include advance payments and billings in excess of revenue recognized, including deferred revenue associated with extended product warranties. Contract assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The increase in contract liabilities in the three quarters ended March 29, 2019 was primarily due to an increase in the receipt of advance payments and the timing of contractual billing milestones. Changes in contract assets and contract liabilities balances during the quarter and three quarters ended March 29, 2019 were not materially impacted by any factors other than those described above. Contract assets and contract liabilities are summarized below:
| March 29, 2019 |  | June 29, 2018
| (In millions)
Contract assets | $ | 881 |  |  | $ | 782 |
Contract liabilities, current | (466 | ) |  | (372 | )
Contract liabilities, non-current(1) | (12 | ) |  | (7 | )
Net contract assets | $ | 403 |  |  | $ | 403 |
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(1) | Represents the non-current portion of deferred revenue associated with extended product warranties, which is included as a component of the “Other long-term liabilities” line item in our Condensed Consolidated Balance Sheet (Unaudited).
The components of contract assets are summarized below:
| March 29, 2019 |  | June 29, 2018
| (In millions)
Unbilled contract receivables, gross | $ | 989 |  |  | $ | 881 |
Progress payments | (108 | ) |  | (99 | )
| $ | 881 |  |  | $ | 782 |
Impairment losses related to our contract assets were not material during the quarter or three quarters ended March 29, 2019 or the quarter or three quarters ended March 30, 2018. For the quarter and three quarters ended March 29, 2019, we recognized revenue of $52 million and $259 million, respectively, related to contract liabilities that were outstanding at June 29, 2018. For the quarter and three quarters ended March 30, 2018, we recognized revenue of $24 million and $187 million, respectively, related to contract liabilities that were outstanding at June 30, 2017.Note P — Backlog Backlog, which is the equivalent of our remaining performance obligations, represents the future revenue we expect to recognize as we perform on our current contracts. Backlog comprises both funded backlog (i.e., firm orders for which funding is authorized and appropriated) and unfunded backlog. Backlog excludes unexercised contract options and potential orders under ordering-type contracts, such as indefinite delivery, indefinite quantity contracts. At March 29, 2019, our ending backlog was $8.5 billion. We expect to recognize approximately half of the revenue associated with this backlog within the next twelve months and the substantial majority of the revenue associated with this backlog within the next 3 years.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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