Contracts in Process (Tables)

12 Months Ended

Dec. 31, 2016

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 6.

	December 31,
	2016			2015
	(in millions)
Unbilled contract receivables, gross	$	2,020		$	2,120
Unliquidated progress payments		(827	)		(892	)
Unbilled contract receivables, net		1,193			1,228
Inventoried contract costs, gross		1,065			975
Unliquidated progress payments		(203	)		(122	)
Inventoried contract costs, net		862			853
Total contracts in process	$	2,055		$	2,081

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.

	Year Ended December 31,
	2016			2015			2014
	(in millions)
Amounts included in inventoried contract costs at beginning of the year	$	137		$	114		$	121
Contract costs incurred:
IRAD and B&P		308			284			270
Other G&A		839			822			804
Total		1,147			1,106			1,074
Amounts charged to cost of sales		(1,111	)		(1,083	)		(1,081	)
Amounts included in inventoried contract costs at end of the year	$	173		$	137		$	114

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,
	2016		2015		2014
	(in millions)
Selling, general and administrative expenses	$	223	$	261	$	297
Research and development expenses		54		52		63
Total	$	277	$	313	$	360