Contracts in Process (Tables)

3 Months Ended

Mar. 31, 2017

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

	March 31, 2017			December 31, 2016
	(in millions)
Unbilled contract receivables, gross	$	2,116		$	2,020
Unliquidated progress payments		(807	)		(827	)
Unbilled contract receivables, net		1,309			1,193
Inventoried contract costs, gross		1,113			1,065
Unliquidated progress payments		(168	)		(203	)
Inventoried contract costs, net		945			862
Total contracts in process	$	2,254		$	2,055

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 31, 2017			March 25, 2016
	(in millions)
Amounts included in inventoried contract costs at beginning of the period	$	173		$	137
Contract costs incurred:
IRAD and B&P		78			65
Other G&A		222			194
Total		300			259
Amounts charged to cost of sales		(295	)		(239	)
Amounts included in inventoried contract costs at end of the period	$	178		$	157

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 31,
2017

March 25,
2016

(in millions)

Selling, general and administrative expenses

Research and development expenses