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Significant Accounting Policies and Recent Accounting Standards (Tables)
6 Months Ended
Dec. 28, 2018
Accounting Policies [Abstract]  
Schedule of Effect of Adopting ASC 606 and ASU 2017-07 on Condensed Consolidated Financial Statements (Unaudited)
The following table summarizes the effect of adopting ASC 606 and ASU 2017-07 on our previously reported Condensed Consolidated Statement of Income (Unaudited) for the quarter and two quarters ended December 29, 2017:
 
Quarter Ended December 29, 2017
 
Previously Reported
 
Effect of Adopting ASC 606
 
Effect of Adopting ASU 2017-07
 
Currently Reported
 
 
 
 
 
 
 
 
 
(In millions, except per share amounts)
Revenue from product sales and services
$
1,535

 
$

 
$

 
$
1,535

Cost of product sales and services
(987
)
 
1

 
(36
)
 
(1,022
)
Engineering, selling and administrative expenses
(276
)
 
(5
)
 
(10
)
 
(291
)
Non-operating income (loss)
(2
)
 

 
46

 
44

Interest income
1

 

 

 
1

Interest expense
(42
)
 

 

 
(42
)
Income from continuing operations before income taxes
229

 
(4
)
 

 
225

Income taxes
(90
)
 
(4
)
 

 
(94
)
Income from continuing operations
139

 
(8
)
 

 
131

Discontinued operations, net of income taxes

 

 

 

Net income
$
139

 
$
(8
)
 
$

 
$
131

 
 
 
 
 
 
 
 
Net income per common share
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
Continuing operations
$
1.17

 
$
(0.07
)
 
$

 
$
1.10

Discontinued operations

 

 

 

 
$
1.17

 
$
(0.07
)
 
$

 
$
1.10

Diluted
 
 
 
 
 
 
 
Continuing operations
$
1.15

 
$
(0.07
)
 
$

 
$
1.08

Discontinued operations

 

 

 

 
$
1.15

 
$
(0.07
)
 
$

 
$
1.08

 
Two Quarters Ended December 29, 2017
 
Previously Reported
 
Effect of Adopting ASC 606
 
Effect of Adopting ASU 2017-07
 
Currently Reported
 
 
 
 
 
 
 
 
 
(In millions, except per share amounts)
Revenue from product sales and services
$
2,948

 
$
(3
)
 
$

 
$
2,945

Cost of product sales and services
(1,872
)
 
4

 
(73
)
 
(1,941
)
Engineering, selling and administrative expenses
(532
)
 
(8
)
 
(19
)
 
(559
)
Non-operating income (loss)
(2
)
 

 
92

 
90

Interest income
1

 

 

 
1

Interest expense
(83
)
 

 

 
(83
)
Income from continuing operations before income taxes
460

 
(7
)
 

 
453

Income taxes
(154
)
 
(3
)
 

 
(157
)
Income from continuing operations
306

 
(10
)
 

 
296

Discontinued operations, net of income taxes
(6
)
 

 

 
(6
)
Net income
$
300

 
$
(10
)
 
$

 
$
290

 
 
 
 
 
 
 
 
Net income per common share
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
Continuing operations
$
2.57

 
$
(0.08
)
 
$

 
$
2.49

Discontinued operations
(0.05
)
 
(0.01
)
 

 
(0.06
)
 
$
2.52

 
$
(0.09
)
 
$

 
$
2.43

Diluted
 
 
 
 
 
 
 
Continuing operations
$
2.52

 
$
(0.08
)
 
$

 
$
2.44

Discontinued operations
(0.05
)
 

 

 
(0.05
)
 
$
2.47

 
$
(0.08
)
 
$

 
$
2.39




The following table presents the effect of adopting ASC 606 on our previously reported Condensed Consolidated Statement of Cash Flows (Unaudited) for the two quarters ended December 29, 2017:
 
Two Quarters Ended December 29, 2017
 
Previously Reported
 
Effect of Adopting ASC 606
 
Currently Reported
 
 
 
 
 
 
 
(In millions, except shares)
Net income
$
300

 
$
(10
)
 
$
290

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Amortization of acquisition-related intangibles(1)
58

 

 
58

Depreciation and other amortization(1)
72

 

 
72

Share-based compensation
24

 

 
24

Pension income
(68
)
 

 
(68
)
(Increase) decrease in:
 
 
 
 
 
Accounts receivable
(19
)
 
5

 
(14
)
Contract assets

 
(84
)
 
(84
)
Inventories
(102
)
 
79

 
(23
)
Increase (decrease) in:
 
 
 
 
 
Accounts payable
(78
)
 

 
(78
)
Advance payments and unearned income
38

 
(38
)
 

Contract liabilities

 
47

 
47

Income taxes
213

 
3

 
216

Other
(65
)
 
(2
)
 
(67
)
Net cash provided by operating activities
$
373

 
$

 
$
373

_______________
(1)
“Amortization of acquisition-related intangibles” includes amortization of non-Exelis Inc. acquisition-related intangibles, which was previously included in the “Depreciation and amortization” line item in our Condensed Consolidated Statement of Cash Flows (Unaudited) in our Form 10-Q for the quarter ended December 29, 2017.