ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 25, 2016

Summary of Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date, including the refinements described in the previous paragraph (in millions):

Cash and cash equivalents	$	75
Receivables, net		1,948
Inventories, net		1,605
Other current assets		25
Property, plant and equipment		649
Goodwill		2,853
Intangible assets:
Customer programs		3,204
Trademarks		887
Other noncurrent assets		507
Deferred income tax assets		265
Total identifiable assets and goodwill	$	12,018
Accounts payable	$	(565	)
Customer advances and amounts in excess of costs incurred		(1,197	)
Salaries, benefits and payroll taxes		(105	)
Other current liabilities		(382	)
Customer contractual obligations(a)		(507	)
Other noncurrent liabilities		(156	)
Deferred income tax liabilities(a)		(28	)
Total liabilities assumed	$	(2,940	)
Total purchase price	$	9,078

^(a)  Recorded in other noncurrent liabilities on the consolidated balance sheets. The refinements made during the quarter and nine months ended September 25, 2016 did not have a material effect on the acquired assets and liabilities assumed or on net earnings.

Summary of Pro Forma Financial Information

The following table presents summarized unaudited pro forma financial information as if Sikorsky had been included in our financial results for the quarter and nine months ended September 27, 2015 (in millions):

	Quarter Ended September 27, 2015		Nine Months Ended     September 27, 2015
Net sales	$	11,434	$	33,289
Net earnings		858		2,631
Basic earnings per common share		2.78		8.44
Diluted earnings per common share		2.74		8.32

Carrying Amounts of Major Classes of Business Segment Assets and Liabilities, Operating Results of Discontinued Operations and Information of IS and GS Included in Consolidated Statements of Cash Flows

The carrying amounts of major classes of the IS&GS business segment assets and liabilities that were classified as assets and liabilities of discontinued operations as of December 31, 2015 are as follows (in millions):

Receivables, net	$	807
Inventories, net		143
Other current assets		19
Property, plant and equipment, net		101
Goodwill		2,881
Intangible assets		125
Other noncurrent assets		54
Total assets of the disposal group	$	4,130
Accounts payable	$	(229	)
Customer advances and amounts in excess of costs incurred		(285	)
Salaries, benefits and payroll taxes		(209	)
Other current liabilities		(225	)
Deferred income taxes		(145	)
Other noncurrent liabilities		(60	)
Total liabilities of the disposal group	$	(1,153	)

The operating results of IS&GS that have been reflected within net earnings from discontinued operations are as follows (in millions):

	Quarters Ended				Nine Months Ended
	September 25, 2016(a)		September 27, 2015		September 25, 2016(a)		September 27, 2015
Net sales	$	739	$	1,401	$	3,410	$	4,199
Cost of sales		(635)		(1,222)		(2,953)		(3,644)
Severance charges		—		(20)		(19)		(20)
Gross profit		104		159		438		535
Other income, net		19		3		16		8
Operating profit		123		162		454		543
Earnings from discontinued operations before income taxes		123		162		454		543
Income tax expense		(51)		(53)		(168)		(180)
Net gain on divestiture of discontinued operations		1,234		—		1,234		—
Net earnings from discontinued operations	$	1,306	$	109	$	1,520	$	363

^(a)     Operating results for the quarter and nine months ended September 25, 2016 reflect operating results prior to the transaction date of August 16, 2016, not the full quarter or nine month period as shown for the prior period.