Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements

As required by the transition provisions of this update, the Company made the following reclassifications to the 2017 fiscal third quarter and fiscal nine months Consolidated Statement of Earnings to retroactively apply classification of the service cost component and the other components of NPBC:

(Dollars In millions)	Increase (Decrease) to Net Expense
	Fiscal Third Quarter Ended			Fiscal Nine Months Ended
Cost of products sold	$	23		69
Selling, marketing and administrative expenses	27			80
Research and development expense	11			32
Other (income) expense, net	(61		)	(181	)
Earnings before provision for taxes on income	$	—		—

The following table summarizes the cumulative effect adjustments made to the 2018 opening balance of retained earnings upon adoption of the new accounting standards mentioned above:

(Dollars in Millions)	Cumulative Effect Adjustment Increase (Decrease) to Retained Earnings
ASU 2014-09 - Revenue from Contracts with Customers	$	(47	)
ASU 2016-01 - Financial Instruments	232
ASU 2016-16 - Income Taxes: Intra-Entity Transfers	1,311
Total	$	1,496

In accordance with the new standard requirements, the disclosure of the impact of adoption on the Company's Consolidated Statement of Earnings and Balance Sheet was as follows:

Statement of Earnings - For the fiscal nine months ended September 30, 2018
(Dollars in millions)	As Reported		Effect of change		Balance without adoption of ASC 606
Sales to customers	$	61,187	(18	)	61,169
Net earnings	12,255		(14	)	12,241
Statement of Earnings - For the fiscal third quarter ended September 30, 2018
(Dollars in millions)	As Reported		Effect of change		Balance without adoption of ASC 606
Sales to customers	$	20,348	22		20,370
Net earnings	3,934		19		3,953
Balance Sheet - As of September 30, 2018
	As Reported		Effect of change		Balance without adoption of ASC 606
Assets	155,703		24		155,727
Liabilities	91,077		(7	)	91,070
Equity	$	64,626	31		64,657