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Business Segments (Tables)
 6 Months Ended
Dec. 30, 2016
Segment Reporting [Abstract]  
Total Assets by Business Segment
Total assets by business segment are summarized below:
 
 
December 30,
2016
 
July 1,
2016
 
 
 
 
 
 
 
(In millions)
Total Assets
 
 
 
Communication Systems
$
1,606

 
$
1,667

Space and Intelligence Systems
2,119

 
2,149

Electronic Systems
2,241

 
2,253

Critical Networks
2,639

 
2,656

Corporate (1) (2)
3,013

 
3,268

 
$
11,618

 
$
11,993

 
 
 
 
 
(1)
Identifiable intangible assets acquired in connection with our acquisition of Exelis Inc. (“Exelis”) in the fourth quarter of fiscal 2015 were recorded as Corporate assets because they benefit the entire Company as opposed to any individual segment. Exelis identifiable intangible asset balances recorded as Corporate assets were $1.4 billion as of December 30, 2016 and July 1, 2016.
(2)
Corporate assets include the assets and liabilities of discontinued operations. See Note B — Discontinued Operations in these Notes for additional information regarding discontinued operations.
Revenue and Income Before Income Taxes by Business Segment
Segment revenue, segment operating income and a reconciliation of segment operating income to total income from continuing operations before income taxes follow:
 
 
Quarter Ended
 
Two Quarters Ended
 
 
December 30,
2016
 
January 1,
2016
 
December 30,
2016
 
January 1,
2016
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Revenue
 
 
 
 
 
 
 
Communication Systems
$
413

 
$
489

 
$
843

 
$
943

Space and Intelligence Systems
468

 
446

 
921

 
881

Electronic Systems
384

 
381

 
745

 
756

Critical Networks
454

 
446

 
905

 
910

Corporate eliminations
(19
)
 
(14
)
 
(36
)
 
(32
)
 
$
1,700

 
$
1,748

 
$
3,378

 
$
3,458

Income From Continuing Operations Before Income Taxes
 
 
 
 
 
 
 
Segment Operating Income:
 
 
 
 
 
 
 
Communication Systems (1)
$
121

 
$
121

 
$
240

 
$
259

Space and Intelligence Systems
77

 
68

 
157

 
135

Electronic Systems
79

 
63

 
153

 
132

Critical Networks (2)
75

 
63

 
135

 
123

Unallocated corporate income (expense) (3)
(65
)
 
14

 
(135
)
 
(61
)
Corporate eliminations
(1
)
 
(1
)
 
(2
)
 
(2
)
Non-operating income
1

 
—

 
2

 
1

Net interest expense
(43
)
 
(46
)
 
(87
)
 
(92
)
 
$
244

 
$
282

 
$
463

 
$
495

 
 
 
 
 
 
 
 
 
(1)
Communication Systems operating income included $17 million of charges in the quarter and two quarters ended January 1, 2016, primarily related to workforce reductions, facility consolidation and other items. We recorded $14 million of these charges in the “Cost of product sales and services” line item and the remaining $3 million of these charges in the “Engineering, selling and administrative expenses” line item in the accompanying Condensed Consolidated Statement of Income (Unaudited).
(2)
Critical Networks operating income included $4 million of charges in the quarter and two quarters ended January 1, 2016, primarily related to workforce reductions and facility consolidation. We recorded these charges in the “Engineering, selling and administrative expenses” line item in the accompanying Condensed Consolidated Statement of Income (Unaudited).
(3)
Unallocated corporate income (expense) included: (i) the impact of a net liability reduction of $101 million in the quarter and two quarters ended January 1, 2016 for certain post-employment benefit plans, (ii) charges of $13 million and $29 million in the quarter and two quarters ended December 30, 2016, respectively, compared with charges of $41 million and $61 million in the quarter and two quarters ended January 1, 2016, respectively, for integration and other costs associated with our acquisition of Exelis in the fourth quarter of fiscal 2015 and (iii) $33 million and $66 million of expense in the quarters and two quarters ended December 30, 2016 and January 1, 2016, respectively, for amortization of intangible assets acquired as a result of our acquisition of Exelis. Because the acquisition of Exelis benefited the entire Company as opposed to any individual segment, the amortization of identifiable intangible assets acquired in the Exelis acquisition was recorded as unallocated corporate expense.