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Significant Accounting Policies and Recent Accounting Standards (Tables)
 3 Months Ended
Sep. 28, 2018
Accounting Policies [Abstract]  
Schedule of Effect of Adopting ASC 606 and ASU 2017-07 on Condensed Consolidated Financial Statements (Unaudited)
The following table summarizes the effect of adopting ASC 606 and ASU 2017-07 on our Condensed Consolidated Statement of Income (Unaudited) for the quarter ended September 29, 2017:
 
Quarter Ended September 29, 2017
 
As Reported
 
Effect of Adopting ASC 606
 
Effect of Adopting ASU 2017-07
 
As Recast
 
 
 
 
 
 
 
 
 
(In millions, except per share amounts)
Revenue from product sales and services
$
1,413

 
$
(3
)
 
$
—

 
$
1,410

Cost of product sales and services
(885
)
 
3

 
(37
)
 
(919
)
Engineering, selling and administrative expenses
(256
)
 
(3
)
 
(9
)
 
(268
)
Non-operating income
—

 
—

 
46

 
46

Interest expense
(41
)
 
—

 
—

 
(41
)
Income from continuing operations before income taxes
231

 
(3
)
 
—

 
228

Income taxes
(64
)
 
1

 
—

 
(63
)
Income from continuing operations
167

 
(2
)
 
—

 
165

Discontinued operations, net of income taxes
(6
)
 
—

 
—

 
(6
)
Net income
$
161

 
$
(2
)
 
$
—

 
$
159

 
 
 
 
 
 
 
 
Net income per common share
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
Continuing operations
$
1.40

 
$
(0.01
)
 
$
—

 
$
1.39

Discontinued operations
(0.05
)
 
(0.01
)
 
—

 
(0.06
)
 
$
1.35

 
$
(0.02
)
 
$
—

 
$
1.33

Diluted
 
 
 
 
 
 
 
Continuing operations
$
1.38

 
$
(0.02
)
 
$
—

 
$
1.36

Discontinued operations
(0.06
)
 
0.01

 
—

 
(0.05
)
 
$
1.32

 
$
(0.01
)
 
$
—

 
$
1.31


The following table summarizes the effect of the adoption of ASC 606 on our Condensed Consolidated Balance Sheet (Unaudited) at June 29, 2018:
 
June 29, 2018
 
As Reported
 
Effect of Adopting ASC 606
 
As Recast
 
 
 
 
 
 
 
(In millions, except shares)
Assets
 
 
 
 
 
Current Assets
 
 
 
 
 
Cash and cash equivalents
$
288

 
$
—

 
$
288

Receivables
735

 
(269
)
 
466

Contract assets
—

 
782

 
782

Inventories
925

 
(514
)
 
411

Income taxes receivable
174

 
—

 
174

Other current assets
101

 
2

 
103

Total current assets
2,223

 
1

 
2,224

Non-current Assets
 
 
 
 
 
Property, plant and equipment
900

 
—

 
900

Goodwill
5,372

 
—

 
5,372

Other intangible assets
989

 
—

 
989

Non-current deferred income taxes
116

 
3

 
119

Other non-current assets
239

 
8

 
247

Total non-current assets
7,616

 
11

 
7,627

 
$
9,839

 
$
12

 
$
9,851

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Current Liabilities
 
 
 
 
 
Short-term debt
$
78

 
$
—

 
$
78

Accounts payable
622

 
—

 
622

Advanced payments and unearned income
314

 
(314
)
 
—

Contract liabilities
—

 
372

 
372

Compensation and benefits
142

 
—

 
142

Other accrued items
313

 
4

 
317

Income taxes payable
15

 
—

 
15

Current portion of long-term debt, net
304

 
—

 
304

Total current liabilities
1,788

 
62

 
1,850

Non-current Liabilities
 
 
 
 
 
Defined benefit plans
714

 
—

 
714

Long-term debt, net
3,408

 
—

 
3,408

Non-current deferred income taxes
90

 
(11
)
 
79

Other long-term liabilities
517

 
5

 
522

Total non-current liabilities
4,729

 
(6
)
 
4,723

Equity
 
 
 
 
 
Shareholders’ Equity:
 
 
 
 
 
Common stock
118

 
—

 
118

Other capital
1,714

 
—

 
1,714

Retained earnings
1,692

 
(44
)
 
1,648

Accumulated other comprehensive loss
(202
)
 
—

 
(202
)
Total equity
3,322

 
(44
)
 
3,278

 
$
9,839

 
$
12

 
$
9,851



The following table presents the effect of the adoption of ASC 606 on our Condensed Consolidated Statement of Cash Flows (Unaudited) for the quarter ended September 29, 2017:
 
Quarter Ended September 29, 2017
 
As Reported
 
Effect of Adopting ASC 606
 
As Recast
 
 
 
 
 
 
 
(In millions, except shares)
Net income
$
161

 
(2
)
 
$
159

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Amortization of acquisition-related intangibles(1)
28

 
—

 
28

Depreciation and other amortization(1)
37

 
—

 
37

Share-based compensation
11

 
—

 
11

Pension income
(34
)
 
—

 
(34
)
(Increase) decrease in:
 
 
 
 
 
Accounts receivable
(83
)
 
29

 
(54
)
Contract assets
—

 
(59
)
 
(59
)
Inventories
(56
)
 
32

 
(24
)
Increase (decrease) in:
 
 
 
 
 
Accounts payable
(88
)
 
—

 
(88
)
Advanced payments and unearned income
12

 
(12
)
 
—

Contract liabilities
—

 
18

 
18

Income taxes
126

 
(1
)
 
125

Other
(19
)
 
(5
)
 
(24
)
Net cash provided by operating activities
$
95

 
$
—

 
$
95

_______________
(1)
“Amortization of acquisition-related intangibles” includes amortization of non-Exelis Inc. acquisition-related intangibles, which was previously included in the “Depreciation and amortization” line item in our Condensed Consolidated Statement of Cash Flows (Unaudited) in our Form 10-Q for the quarter ended September 29, 2017.