Business Segment Information (Tables)

3 Months Ended

Sep. 28, 2018

Segment Reporting [Abstract]

Schedule of Segment Revenue and Reconciliation of Segment Income to Total Income From Continuing Operations Before Taxes

Segment revenue, segment operating income and a reconciliation of segment operating income to total income from continuing operations before income taxes are as follows:

	Quarter Ended
	September 28, 2018			September 29, 2017
	(In millions)
Revenue
Communication Systems	$	469		$	406
Electronic Systems	589			541
Space and Intelligence Systems	488			466
Corporate eliminations	(4		)	(3		)
	$	1,542		$	1,410
Income From Continuing Operations Before Income Taxes
Segment Operating Income:
Communication Systems	$	140		$	115
Electronic Systems	115			109
Space and Intelligence Systems	86			87
Unallocated corporate expense and corporate eliminations(1)	(41		)	(42		)
Pension adjustment	(47		)	(46		)
Non-operating income	47			46
Net interest expense	(43		)	(41		)
	$	257		$	228

_______________

(1) Unallocated corporate expense and corporate eliminations included $25 million of expense for amortization of identifiable intangible assets acquired as a result of our acquisition of Exelis in each of the quarters ended September 28, 2018 and September 29, 2017. 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. Corporate eliminations of intersegment profits were not material in the quarters ended September 28, 2018 and September 29, 2017.

Schedule of Disaggregation of Revenue by Segment

Disaggregation of Revenue

Communication Systems: Communication Systems operates principally on a “commercial” market-driven business model through which the business segment provides ready-to-ship commercial off-the-shelf products to customers in the U.S. and internationally. Communication Systems revenue is primarily derived from fixed-price contracts and is generally recognized at the point in time when the product is received and accepted by the customer. We disaggregate Communication Systems revenue by geographical region, as we believe this category best depicts how the nature, amount, timing and uncertainty of Communication Systems revenue and cash flows are affected by economic factors:

	Quarter Ended
	September 28, 2018		September 29, 2017
	(In millions)
Revenue By Geographical Region
United States	$	259	$	208
International	210		198
	$	469	$	406

Electronic Systems: Electronic Systems revenue is primarily derived from U.S. Government development and production contracts and is generally recognized over time using the POC cost-to-cost method. We disaggregate Electronic Systems revenue by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of Electronic Systems revenue and cash flows are affected by economic factors:

	Quarter Ended
	September 28, 2018		September 29, 2017
	(In millions)
Revenue By Customer Relationship
Prime contractor	$	394	$	398
Subcontractor	195		143
	$	589	$	541
Revenue By Contract Type
Fixed-price(1)	$	478	$	422
Cost-reimbursable	111		119
	$	589	$	541
Revenue By Geographical Region
United States	$	478	$	426
International	111		115
	$	589	$	541

_______________

(1) Includes revenue derived from time-and-materials contracts.

Space and Intelligence Systems: Space and Intelligence Systems revenue is primarily derived from U.S. Government development and production contracts and is generally recognized over time using the POC cost-to-cost method. We disaggregate Space and Intelligence Systems revenue by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of Space and Intelligence Systems revenue and cash flows are affected by economic factors:

	Quarter Ended
	September 28, 2018		September 29, 2017
	(In millions)
Revenue By Customer Relationship
Prime contractor	$	352	$	334
Subcontractor	136		132
	$	488	$	466
Revenue By Contract Type
Fixed-price(1)	$	172	$	123
Cost-reimbursable	316		343
	$	488	$	466
Revenue By Geographical Region
United States	$	476	$	452
International	12		14
	$	488	$	466

_______________

(1) Includes revenue derived from time-and-materials contracts.

Schedule of Total Segment Assets Reconciliation

Total assets by business segment are summarized below:

	September 28, 2018		June 29, 2018
	(In millions)
Total Assets
Communication Systems	$	1,556	$	1,567
Electronic Systems	4,204		4,174
Space and Intelligence Systems	2,220		2,193
Corporate(1)	1,909		1,917
	$	9,889	$	9,851

_______________

(1) Identifiable intangible assets acquired in connection with our acquisition of Exelis in the fourth quarter of fiscal 2015 were recorded as Corporate assets because they benefitted the entire Company as opposed to any individual segment. Exelis identifiable intangible asset balances recorded as Corporate assets were $949 million and $974 million at September 28, 2018 and June 29, 2018, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan assets and buildings and equipment.