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ACCOUNTING CHANGES OR RECENT ACCOUNTING PRONOUNCEMENTS (Tables)
 12 Months Ended
Jun. 28, 2019
Accounting Changes and Error Corrections [Abstract]  
Schedule of Effect of Adopting ASC 606 and ASU 2017-07 on Consolidated Financial Statements
The following tables summarize the effect of adopting ASC 606 and ASU 2017-07 on our Consolidated Statement of Income for fiscal 2018 and 2017:
 
Fiscal Year Ended June 29, 2018
 
As Previously 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
 
 
 
 
 
 
 
Revenue from product sales
$
5,062

 
$
(24
)
 
$
—

 
$
5,038

Revenue from services
1,120

 
10

 
—

 
1,130

 
6,182

 
(14
)
 
—

 
6,168

Cost of product sales and services
 
 
 
 
 
 
 
Cost of product sales
(3,106
)
 
14

 
(147
)
 
(3,239
)
Cost of services
(825
)
 
(2
)
 
—

 
(827
)
 
(3,931
)
 
12

 
(147
)
 
(4,066
)
Engineering, selling and administrative expenses
(1,129
)
 
(16
)
 
(37
)
 
(1,182
)
Non-operating income (loss)
(28
)
 
—

 
184

 
156

Interest income
2

 
—

 
—

 
2

Interest expense
(170
)
 
—

 
—

 
(170
)
Income from continuing operations before income taxes
926

 
(18
)
 
—

 
908

Income taxes
(205
)
 
(1
)
 
—

 
(206
)
Income from continuing operations
721

 
(19
)
 
—

 
702

Discontinued operations, net of income taxes
(3
)
 
—

 
—

 
(3
)
Net income
$
718

 
$
(19
)
 
$
—

 
$
699

 
 
 
 
 
 
 
 
Net income per common share
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
Continuing operations
$
6.06

 
$
(0.16
)
 
$
—

 
$
5.90

Discontinued operations
(0.02
)
 
—

 
—

 
(0.02
)
 
$
6.04

 
$
(0.16
)
 
$
—

 
$
5.88

Diluted
 
 
 
 
 
 
 
Continuing operations
$
5.94

 
$
(0.16
)
 
$
—

 
$
5.78

Discontinued operations
(0.02
)
 
—

 
—

 
(0.02
)
 
$
5.92

 
$
(0.16
)
 
$
—

 
$
5.76

 
Fiscal Year Ended June 30, 2017
 
As Previously 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
 
 
 
 
 
 
 
Revenue from product sales
$
4,667

 
$
—

 
$
—

 
$
4,667

Revenue from services
1,233

 
(3
)
 
—

 
1,230

 
5,900

 
(3
)
 
—

 
5,897

Cost of product sales and services
 
 
 
 
 
 
 
Cost of product sales
(2,964
)
 
10

 
(104
)
 
(3,058
)
Cost of services
(770
)
 
2

 
(28
)
 
(796
)
 
(3,734
)
 
12

 
(132
)
 
(3,854
)
Engineering, selling and administrative expenses
(1,093
)
 
(25
)
 
(32
)
 
(1,150
)
Non-operating income
2

 
—

 
164

 
166

Interest income
2

 
—

 
—

 
2

Interest expense
(172
)
 
—

 
—

 
(172
)
Income from continuing operations before income taxes
905

 
(16
)
 
—

 
889

Income taxes
(267
)
 
6

 
—

 
(261
)
Income from continuing operations
638

 
(10
)
 
—

 
628

Discontinued operations, net of income taxes
(85
)
 
—

 
—

 
(85
)
Net income
$
553

 
$
(10
)
 
$
—

 
$
543

 
 
 
 
 
 
 
 
Net income per common share
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
Continuing operations
$
5.19

 
$
(0.08
)
 
$
—

 
$
5.11

Discontinued operations
(0.69
)
 
—

 
—

 
(0.69
)
 
$
4.50

 
$
(0.08
)
 
$
—

 
$
4.42

Diluted
 
 
 
 
 
 
 
Continuing operations
$
5.12

 
$
(0.08
)
 
$
—

 
$
5.04

Discontinued operations
(0.68
)
 
—

 
—

 
(0.68
)
 
$
4.44

 
$
(0.08
)
 
$
—

 
$
4.36



The following table summarizes the effect of the adoption of ASC 606 on our Consolidated Balance Sheet at June 29, 2018 and June 30, 2017:
 
June 29, 2018
 
June 30, 2017
 
As Previously Reported
 
Effect of Adopting ASC 606
 
As Recast
 
As Previously Reported
 
Effect of adopting ASC 606
 
As Recast
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Assets
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
288

 
$
—

 
$
288

 
$
484

 
$
—

 
$
484

Receivables
735

 
(269
)
 
466

 
623

 
(258
)
 
365

Contract assets
—

 
782

 
782

 
—

 
706

 
706

Inventories
925

 
(514
)
 
411

 
841

 
(449
)
 
392

Income taxes receivable
174

 
—

 
174

 
24

 
—

 
24

Other current assets
101

 
2

 
103

 
101

 
—

 
101

Total current assets
2,223

 
1

 
2,224

 
2,073

 
(1
)
 
2,072

Non-current Assets
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment
900

 
—

 
900

 
904

 
—

 
904

Goodwill
5,372

 
—

 
5,372

 
5,366

 
—

 
5,366

Other intangible assets
989

 
—

 
989

 
1,104

 
—

 
1,104

Non-current deferred income taxes
116

 
3

 
119

 
409

 
15

 
424

Other non-current assets
239

 
8

 
247

 
234

 
8

 
242

Total non-current assets
7,616

 
11

 
7,627

 
8,017

 
23

 
8,040

 
$
9,839

 
$
12

 
$
9,851

 
$
10,090

 
$
22

 
$
10,112

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
 
 
 
Short-term debt
$
78

 
$
—

 
$
78

 
$
80

 
$
—

 
$
80

Accounts payable
622

 
—

 
622

 
540

 
—

 
540

Advanced payments and unearned income
314

 
(314
)
 
—

 
252

 
(252
)
 
$
—

Contract liabilities
—

 
372

 
372

 
—

 
291

 
291

Compensation and benefits
142

 
—

 
142

 
140

 
—

 
140

Other accrued items
313

 
4

 
317

 
329

 
3

 
332

Income taxes payable
15

 
—

 
15

 
31

 
(1
)
 
30

Current portion of long-term debt, net
304

 
—

 
304

 
554

 
—

 
554

Total current liabilities
1,788

 
62

 
1,850

 
1,926

 
41

 
1,967

Non-current Liabilities
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plans
714

 
—

 
714

 
1,278

 
—

 
1,278

Long-term debt, net
3,408

 
—

 
3,408

 
3,396

 
—

 
3,396

Non-current deferred income taxes
90

 
(11
)
 
79

 
34

 
—

 
34

Other long-term liabilities
517

 
5

 
522

 
528

 
6

 
534

Total non-current liabilities
4,729

 
(6
)
 
4,723

 
5,236

 
6

 
5,242

Equity
 
 
 
 
 
 
 
 
 
 


Shareholders’ Equity:
 
 
 
 
 
 
 
 
 
 

Common stock
118

 
—

 
118

 
120

 
—

 
120

Other capital
1,714

 
—

 
1,714

 
1,741

 
—

 
1,741

Retained earnings
1,692

 
(44
)
 
1,648

 
1,343

 
(25
)
 
1,318

Accumulated other comprehensive loss
(202
)
 
—

 
(202
)
 
(276
)
 
—

 
(276
)
Total equity
3,322

 
(44
)
 
3,278

 
2,928

 
(25
)
 
2,903

 
$
9,839

 
$
12

 
$
9,851

 
$
10,090

 
$
22

 
$
10,112



The following table presents the effect of the adoption of ASC 606 on our Consolidated Statement of Cash Flows for fiscal 2018 and 2017:
 
Fiscal Year Ended
 
June 29, 2018
 
June 30, 2017
 
As Previously Reported
 
Effect of Adopting ASC 606
 
As Recast
 
As Previously Reported
 
Effect of Adopting ASC 606
 
As Recast
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Net income
$
718

 
(19
)
 
$
699

 
$
553

 
$
(10
)
 
$
543

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
 
 
Amortization of acquisition-related intangibles(1)
117

 
—

 
117

 
151

 
—

 
151

Depreciation and other amortization(1)
142

 
—

 
142

 
160

 
—

 
160

Share-based compensation
82

 
—

 
82

 
42

 
—

 
42

Qualified pension plan contributions
(301
)
 
—

 
(301
)
 
(589
)
 
—

 
(589
)
Pension income
(135
)
 
—

 
(135
)
 
(97
)
 
—

 
(97
)
Impairment of goodwill and other assets
—

 
—

 
—

 
240

 
—

 
240

Los on sales of businesses, net
—

 
—

 
—

 
14

 
—

 
14

Loss on extinguishment of debt
24

 
—

 
24

 
—

 
—

 
—

(Increase) decrease in:
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable
(112
)
 
11

 
(101
)
 
111

 
(87
)
 
24

Contract assets
—

 
(76
)
 
(76
)
 
—

 
156

 
156

Inventories
(84
)
 
65

 
(19
)
 
28

 
(60
)
 
(32
)
Increase (decrease) in:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
82

 
—

 
82

 
18

 
—

 
18

Advance payments and unearned income
63

 
(63
)
 
—

 
(42
)
 
42

 
—

Contract liabilities
—

 
81

 
81

 
—

 
(31
)
 
(31
)
Income taxes
202

 
—

 
202

 
131

 
(20
)
 
111

Other
(47
)
 
1

 
(46
)
 
(151
)
 
10

 
(141
)
Net cash provided by operating activities
$
751

 
$
—

 
$
751

 
$
569

 
$
—

 
$
569

_______________
(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 Consolidated Statement of Cash Flows in our Fiscal 2018 Annual Report on Form 10-K.