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BUSINESS SEGMENTS (Tables)
 12 Months Ended
Jun. 29, 2018
Segment Reporting [Abstract]  
Schedule of Revenue, Operating Income and Other Selected Financial Information by Business Segment
Other selected financial information by business segment and geographical area is summarized below:
 
2018
 
2017
 
 
 
 
 
(In millions)
Capital Expenditures
 
 
 
Communication Systems
$
26

 
$
14

Electronic Systems
57

 
40

Space and Intelligence Systems
33

 
34

Corporate
20

 
27

Discontinued operations
—

 
4

 
$
136

 
$
119

Depreciation and Amortization
 
 
 
Communication Systems
$
57

 
$
64

Electronic Systems
44

 
29

Space and Intelligence Systems
36

 
37

Corporate
122

 
142

Discontinued operations
—

 
39

 
$
259

 
$
311

Geographical Information for Continuing Operations
 
 
 
U.S. operations:
 
 
 
Revenue
$
5,854

 
$
5,637

Long-lived assets
$
892

 
$
896

International operations:
 
 
 
Revenue
$
314

 
$
260

Long-lived assets
$
8

 
$
8

Segment revenue, segment operating income and a reconciliation of segment operating income to total income from continuing operations before income taxes are as follows:
 
2018
 
2017
 
 
 
 
 
(In millions)
Revenue
 
 
 
Communication Systems
$
1,904

 
$
1,754

Electronic Systems
2,365

 
2,245

Space and Intelligence Systems
1,913

 
1,904

Corporate eliminations
(14
)
 
(6
)
 
$
6,168

 
$
5,897

Income from Continuing Operations before Income Taxes
 
 
 
Segment Operating Income:(1)
 
 
 
Communication Systems
$
566

 
$
514

Electronic Systems
432

 
457

Space and Intelligence Systems
331

 
314

Unallocated corporate expense and corporate eliminations(2)
(225
)
 
(228
)
Pension adjustment
(184
)
 
(164
)
Non-operating income(3)
156

 
166

Net interest expense
(168
)
 
(170
)
Total
$
908

 
$
889

_______________
(1)
In fiscal 2017, segment operating income included stranded costs and Financial Accounting Standards (“FAS”) pension income previously reported as part of our former Critical Networks segment but now re-allocated to our remaining three segments.
(2)
Unallocated corporate expense and corporate eliminations includes: (i) $101 million and $109 million in fiscal 2018 and 2017, 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), (ii) $5 million and $58 million of Exelis acquisition-related and other charges in fiscal 2018 and 2017, respectively, (iii) $47 million of charges related to our decision to transition and exit a commercial air-to-ground LTE radio communications line of business and other items in fiscal 2018, and (iv) a $12 million non-cash adjustment for deferred compensation in fiscal 2018. 
(3)
Non-operating income in fiscal 2018 includes $27 million of losses and other costs related to debt refinancing. Additional information regarding non-operating income is set forth in Note 20: Non-Operating Income.
Schedule of Disaggregation of Revenue by Business 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:
 
2018
 
2017
 
 
 
 
 
(In millions)
Revenue By Geographical Region
 
 


United States
$
983

 
$
811

International
921

 
943

 
$
1,904

 
$
1,754


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:
 
2018
 
2017
 
 
 
 
 
(In millions)
Revenue By Customer Relationship
 
 
 
Prime contractor
$
1,670

 
$
1,653

Subcontractor
695

 
592

 
$
2,365

 
$
2,245

Revenue By Contract Type


 


Fixed-price(1)
$
1,900

 
$
1,833

Cost-reimbursable
465

 
412

 
$
2,365

 
$
2,245

Revenue By Geographical Region


 


United States
$
1,890

 
$
1,769

International
475

 
476

 
$
2,365

 
$
2,245

_______________
(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:
 
2018
 
2017
 
 
 
 
 
(In millions)
Revenue By Customer Relationship
 
 
 
Prime contractor
$
1,384

 
$
1,369

Subcontractor
529

 
535

 
$
1,913

 
$
1,904

Revenue By Contract Type


 


Fixed-price(1)
$
544

 
$
448

Cost-reimbursable
1,369

 
1,456

 
$
1,913

 
$
1,904

Revenue By Geographical Region


 


United States
$
1,861

 
$
1,821

International
52

 
83

 
$
1,913

 
$
1,904

_______________
(1)
Includes revenue derived from time-and-materials contracts.
Schedule of Assets by Business Segment
Total assets by business segment is as follows:
 
2018
 
2017
 
 
 
 
 
(In millions)
Total Assets
 
 
 
Communication Systems
$
1,567

 
$
1,543

Electronic Systems
4,174

 
4,090

Space and Intelligence Systems
2,193

 
2,117

Corporate(1)
1,917

 
2,362

 
$
9,851

 
$
10,112

_______________
(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 benefited the entire Company as opposed to any individual segment. Exelis identifiable intangible asset balances of continuing operations recorded as Corporate assets were approximately $1.0 billion and $1.1 billion as of June 29, 2018 and June 30, 2017, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan investments, buildings and equipment and identifiable intangibles, and also included any assets and liabilities from discontinued operations. See Note 3: Discontinued Operations for additional information regarding discontinued operations.