Contracts in Process (Tables)

3 Months Ended

Mar. 27, 2015

The components of contracts in process are presented in the table below.


	March 27, 2015			December 31, 2014
	(in millions)
Unbilled contract receivables, gross	$	2,475		$	2,280
Unliquidated progress payments		(975	)		(887	)

Unbilled contract receivables, net		1,500			1,393

Inventoried contract costs, gross		1,011			997
Unliquidated progress payments		(109	)		(95	)

Inventoried contract costs, net		902			902

Total contracts in process	$	2,402		$	2,295

General and Administrative, Independent Research and Development and Bid and 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.


	First Quarter Ended
	March 27, 2015			March 28, 2014
	(in millions)
Amounts included in inventoried contract costs at beginning of the period	$	138		$	138
Contract costs incurred:
IRAD and B&P		65			71
Other G&A		204			198

Total		269			269

Amounts charged to cost of sales		(258	)		(266	)

Amounts included in inventoried contract costs at end of the period	$	149		$	141

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 unaudited condensed consolidated statements of operations.


	First Quarter Ended
	March 27, 2015		March 28, 2014
	(in millions)
Selling, general and administrative expenses	$	76	$	76
Research and development expenses		13		18

Total	$	89	$	94