Basis Of Presentation (Tables)

6 Months Ended

Jun. 30, 2022

Net cumulative catch-up adjustments [Abstract]

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We believe that the accounting estimates and assumptions are appropriate, however, given the increased uncertainties surrounding the severity and duration of the impacts of the COVID-19 pandemic actual results could differ from those estimates.

Long-term Contracts

Changes in estimated revenues, cost of sales, and the related effect on operating income are recognized using a cumulative catch-up adjustment which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a long-term contract’s percentage-of-completion. When the current estimates of total sales and costs for a long-term contract, and/or contractual options that are probable of exercise, indicate a loss, a provision for the entire loss is recognized.

Net cumulative catch-up adjustments to prior periods' revenue and earnings, including certain losses, across all long-term contracts were as follows:


(In millions - except per share amounts)	Six months ended June 30		Three months ended June 30
	2022	2021	2022	2021
(Decrease)/increase to Revenue	($885)	$230	($273)	$223
(Decrease)/increase to (Loss)/earnings from operations	($1,541)	$58	($411)	$234
(Decrease)/increase to Diluted EPS	($2.27)	($0.03)	($0.29)	$0.41