XML 61 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
2018 Impact of Accounting Method Change
 12 Months Ended
Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]  
Accounting Changes [Text Block]
17.  2018 IMPACT OF ACCOUNTING METHOD CHANGE
The following tables summarize the effects of the Accounting change described in Note 1 on our consolidated statement of earnings and comprehensive income, statement of cash flows and statement of changes in shareholders’ equity for the year ended December 31, 2018 and consolidated statement of financial position as of December 31, 2018:
CONSOLIDATED STATEMENT OF EARNINGS AND COMPREHENSIVE INCOME
 
 
Year Ended December 31, 2018
$ in millions, except per share amounts
 
As Computed Under Previous Method
 
Effect of Accounting Change
 
As Reported Under New Method
Operating income
 
$
3,775

 
$
5

 
$
3,780

Other (expense) income
 
 
 
 
 
 
Interest expense
 
(562
)
 
—

 
(562
)
Net FAS (non-service) pension benefit
 
514

 
535

 
1,049

Mark-to-market pension and OPB expense
 
—

 
(655
)
 
(655
)
Other, net
 
132

 
(2
)
 
130

Earnings before income taxes
 
3,859

 
(117
)
 
3,742

Federal and foreign income tax expense
 
537

 
(24
)
 
513

Net earnings
 
$
3,322

 
$
(93
)
 
$
3,229

Basic earnings per share
 
$
19.12

 
$
(0.53
)
 
$
18.59

Diluted earnings per share
 
$
19.03

 
$
(0.54
)
 
$
18.49

 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
 
 
December 31, 2018
$ in millions
 
As Computed Under Previous Method
 
Effect of Accounting Change
 
As Reported Under New Method
Retained earnings
 
$
13,965

 
$
(5,897
)
 
$
8,068

Accumulated other comprehensive (loss) income
 
(5,949
)
 
5,897

 
(52
)
CONSOLIDATED STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
December 31, 2018
$ in millions
 
As Computed Under Previous Method
 
Effect of Accounting Change
 
As Reported Under New Method
Operating activities
 
 
 
 
 
 
Net earnings
 
$
3,322

 
$
(93
)
 
$
3,229

Adjustments to reconcile to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation and amortization
 
800

 
—

 
800

Mark-to-market pension and OPB expense
 
—

 
655

 
655

Stock-based compensation
 
86

 
—

 
86

Deferred income taxes
 
263

 
(29
)
 
234

Changes in assets and liabilities:
 
 
 
 
 
 
Accounts receivable, net
 
202

 
—

 
202

Unbilled receivables, net
 
(297
)
 
—

 
(297
)
Inventoried costs, net
 
(37
)
 
—

 
(37
)
Prepaid expenses and other assets
 
(56
)
 
—

 
(56
)
Accounts payable and other liabilities
 
381

 
—

 
381

Income taxes payable, net
 
(258
)
 
—

 
(258
)
Retiree benefits(1)
 
(550
)
 
(533
)
 
(1,083
)
Other, net
 
(29
)
 
—

 
(29
)
Net cash provided by operating activities
 
$
3,827

 
$
—

 
$
3,827

(1) 
Includes company contributions to our pension and OPB plans as well as net periodic benefit costs, excluding MTM pension and OPB expense, which is presented as a separate non-cash item above.  
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
 
 
Year ended December 31, 2018
$ in millions
 
As Computed Under Previous Method
 
Effect of Accounting Change
 
As Reported Under New Method
Retained earnings
 
 
 
 
 
 
Beginning of year
 
$
11,632

 
$
(4,719
)
 
$
6,913

Impact from adoption of ASU 2018-02 and ASU 2016-01
 
1,064

 
(1,085
)
 
(21
)
Common stock repurchased
 
(1,225
)
 
—

 
(1,225
)
Net earnings
 
3,322

 
(93
)
 
3,229

Dividends declared
 
(822
)
 
—

 
(822
)
Stock compensation
 
(6
)
 
—

 
(6
)
End of year
 
13,965

 
(5,897
)
 
8,068

Accumulated other comprehensive (loss) income
 
 
 
 
 
 
Beginning of year
 
(4,718
)
 
4,719

 
1

Impact from adoption of ASU 2018-02 and ASU 2016-01
 
(1,064
)
 
1,085

 
21

Other comprehensive loss, net of tax
 
(167
)
 
93

 
(74
)
End of year
 
$
(5,949
)
 
$
5,897

 
$
(52
)