Contracts in Process (Tables)

12 Months Ended

Dec. 31, 2012

Components of Contracts in Process

The components of contracts in process are presented in the table below. The unbilled contract receivables, inventoried contract costs and unliquidated progress payments principally relate to contracts with the U.S. Government and prime contractors or subcontractors of the U.S. Government. In connection with contracts in process assumed by the Company in its business acquisitions, the underlying contractual customer relationships are separately recognized as identifiable intangible assets at the date of acquisition, and are discussed and presented in Note 7.

	December 31,
	2012			2011
	(in millions)
Unbilled contract receivables, gross	$	2,874		$	2,677
Unliquidated progress payments		(1,265	)		(1,146	)
Unbilled contract receivables, net		1,609			1,531
Inventoried contract costs, gross		1,111			934
Unliquidated progress payments		(68	)		(79	)
Inventoried contract costs, net		1,043			855
Total contracts in process	$	2,652		$	2,386

General & Administrative, Independent Research & Development and Bid & Proposal Costs

The table below presents a summary of G&A, IRAD and B&P costs included in inventoried contract costs and the changes to them, including amounts charged to cost of sales by the Company’s U.S. Government contractor businesses for the periods presented.

	Year Ended December 31,
	2012			2011			2010
	(in millions)
Amounts included in inventoried contract costs at beginning of the year	$	91		$	97		$	72
Add: IRAD and B&P costs incurred		336			314			306
Other G&A costs incurred		896			824			836
Total contract costs incurred		1,232			1,138			1,142
Less: Amounts charged to cost of sales		(1,213	)		(1,144	)		(1,117	)
Amounts included in inventoried contract costs at end of the year	$	110		$	91		$	97

Selling, General and Administrative Expenses and Research and Development Expenses

The table below presents a summary of selling, general and administrative expenses and research and development expenses for the Company’s commercial businesses, which are expensed as incurred and included in cost of sales on the Consolidated Statements of Operations.

	Year Ended December 31,
	2012		2011		2010
	(in millions)
Selling, general and administrative expenses	$	303	$	319	$	301
Research and development expenses		88		85		80
Total	$	391	$	404	$	381