Contract Assets and Contract Liabilities (Notes)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Contract Assets and Contract Liabilities

The table below presents the components of net contract assets.

	December 31, 2018			January 1, 2018
	(in millions)
Contract assets	$	1,590		$	1,349
Contract liabilities — current	(669		)	(565		)
Contract liabilities — non-current	(31		)	(28		)
Net contract assets	$	890		$	756

Contract assets increased from January 1, 2018 to December 31, 2018 by $241 million primarily due to sales exceeding billings due to contractual billing terms on U.S. Government contracts across all business areas, with the largest increases from ISR Systems, Commercial Aviation Solutions, and Space & Power Systems. Contract liabilities increased by $107 million primarily due to advances received by ISR Systems, Commercial Aviation Solutions and Warrior Sensor Systems related to U.S. and foreign government contracts and deferred revenue on software licensing and support services for Trenchant, which was acquired on August 31, 2018, partially offset by decreases due to the liquidation of advances received by Link Training & Simulation resulting from performance on customer contracts.

The Company did not recognize any impairment losses on contract assets during the year ended December 31, 2018.

For the year ended December 31, 2018, the Company recognized sales of $457 million related to its contract liabilities at January 1, 2018.

The components of contract assets are presented in the table below.

	December 31, 2018			January 1, 2018
	(in millions)
Unbilled contract receivables, gross	$	2,716		$	2,232
Unliquidated progress payments and advances	(1,126		)	(883		)
Total contract assets	$	1,590		$	1,349