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Business Segments (Tables)
 9 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Total Assets 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
 
Three Quarters Ended
 
 
March 31,
2017
 
April 1,
2016
 
March 31,
2017
 
April 1,
2016
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Revenue
 
 
 
 
 
 
 
Communication Systems
$
461

 
$
485

 
$
1,304

 
$
1,428

Space and Intelligence Systems
475

 
489

 
1,396

 
1,370

Electronic Systems
553

 
575

 
1,660

 
1,662

Corporate eliminations, net
—

 
1

 
(2
)
 
(1
)
 
$
1,489

 
$
1,550

 
$
4,358

 
$
4,459

Income From Continuing Operations Before Income Taxes
 
 
 
 
 
 
 
Segment Operating Income:
 
 
 
 
 
 
 
Communication Systems (1)
$
140

 
$
151

 
$
379

 
$
405

Space and Intelligence Systems
76

 
75

 
231

 
208

Electronic Systems
115

 
111

 
360

 
311

Unallocated corporate expense (2)
(55
)
 
(68
)
 
(169
)
 
(116
)
Corporate eliminations
(1
)
 
(1
)
 
(3
)
 
(3
)
Non-operating income (loss)
—

 
(1
)
 
2

 
—

Net interest expense
(42
)
 
(46
)
 
(129
)
 
(138
)
 
$
233

 
$
221

 
$
671

 
$
667

 
 
 
 
 
 
 
 
 
(1)
Communication Systems operating income included $17 million of charges in the three quarters ended April 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)
Unallocated corporate expense included: (i) the impact of a net liability reduction of $101 million in the three quarters ended April 1, 2016 for certain post-employment benefit plans, (ii) charges of $8 million and $38 million in the quarter and three quarters ended March 31, 2017, respectively, compared with charges of $25 million and $95 million in the quarter and three quarters ended April 1, 2016, respectively, for Exelis acquisition-related and other charges and (iii) $27 million and $82 million of expense in the quarters and three quarters ended March 31, 2017 and April 1, 2016, respectively, for amortization of identifiable 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.
Total assets by business segment are summarized below:
 
 
March 31,
2017
 
July 1,
2016
 
 
 
 
 
 
 
(In millions)
Total Assets
 
 
 
Communication Systems
$
1,600

 
$
1,667

Space and Intelligence Systems
2,149

 
2,149

Electronic Systems
4,157

 
4,094

Corporate (1) (2)
3,201

 
4,099

 
$
11,107

 
$
12,009

 
 
 
 
 
(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 $1.3 billion and $1.4 billion as of March 31, 2017 and July 1, 2016, respectively.
(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.