BUSINESS SEGMENTS (Tables)

12 Months Ended

Jun. 28, 2019

Segment Reporting [Abstract]

Schedule of Revenue and Income Before Taxes by Business Segments

	2019			2018			2017
	(In millions)
Revenue
Communication Systems	$	2,177		$	1,904		$	1,754
Electronic Systems	2,583			2,365			2,245
Space and Intelligence Systems	2,057			1,913			1,904
Corporate eliminations	(16		)	(14		)	(6		)
	$	6,801		$	6,168		$	5,897
Income from Continuing Operations before Income Taxes
Segment Operating Income:
Communication Systems	$	654		$	566		$	514
Electronic Systems	499			432			457
Space and Intelligence Systems	359			331			314
Unallocated corporate expense and corporate eliminations(1)	(234		)	(225		)	(228		)
Pension adjustment	(186		)	(184		)	(164		)
Non-operating income(2)	188			156			166
Net interest expense	(167		)	(168		)	(170		)
Total	$	1,113		$	908		$	889

_______________

(1) Unallocated corporate expense and corporate eliminations includes: (i) $65 million of L3Harris Merger-related transaction and integration costs in fiscal 2019, (ii) $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, (iii) a $12 million non-cash adjustment for deferred compensation in fiscal 2018, (iii) $5 million and $58 million of Exelis acquisition-related and other charges in fiscal 2018 and 2017, respectively,  and (iv) $101 million in each of fiscal 2019 and 2018 and $109 million in fiscal 2017, 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. Corporate eliminations of intersegment profits were not material in fiscal 2019, 2018 or 2017.

(2)

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 Revenue from External Customers by Geographic Areas

We disaggregated 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 were affected by economic factors:

	2019		2018		2017
	(In millions)
Revenue By Geographical Region
United States	$	1,213	$	983	$	811
International	964		921		943
	$	2,177	$	1,904	$	1,754

Schedule of Revenue by Major Customers by Reporting Segments

We believe these categories best depict how the nature, amount, timing and uncertainty of Space and Intelligence Systems revenue and cash flows were affected by economic factors:

	2019		2018		2017
	(In millions)
Revenue By Customer Relationship
Prime contractor	$	1,409	$	1,384	$	1,369
Subcontractor	648		529		535
	$	2,057	$	1,913	$	1,904
Revenue By Contract Type
Fixed-price(1)	$	748	$	544	$	448
Cost-reimbursable	1,309		1,369		1,456
	$	2,057	$	1,913	$	1,904
Revenue By Geographical Region
United States	$	2,003	$	1,861	$	1,821
International	54		52		83
	$	2,057	$	1,913	$	1,904

_______________

(1)

Includes revenue derived from time-and-materials contracts.

We believe these categories best depict how the nature, amount, timing and uncertainty of Electronic Systems revenue and cash flows were affected by economic factors:

	2019		2018		2017
	(In millions)
Revenue By Customer Relationship
Prime contractor	$	1,671	$	1,670	$	1,653
Subcontractor	912		695		592
	$	2,583	$	2,365	$	2,245
Revenue By Contract Type
Fixed-price(1)	$	2,092	$	1,900	$	1,833
Cost-reimbursable	491		465		412
	$	2,583	$	2,365	$	2,245
Revenue By Geographical Region
United States	$	2,095	$	1,890	$	1,769
International	488		475		476
	$	2,583	$	2,365	$	2,245

_______________

(1)

Includes revenue derived from time-and-materials contracts.

Schedule of Reconciliation of Assets from Segment to Consolidated

Total assets by business segment is as follows:

	2019		2018
	(In millions)
Total Assets
Communication Systems	$	1,565	$	1,567
Electronic Systems	4,188		4,174
Space and Intelligence Systems	2,208		2,193
Corporate(1)	2,156		1,917
	$	10,117	$	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 benefited the entire Company as opposed to any individual segment. Exelis identifiable intangible asset balances of continuing operations recorded as Corporate assets were approximately $869 million and $974 million as of June 28, 2019 and June 29, 2018, 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 and divestitures. See Note 3: Discontinued Operations and Divestitures for additional information.

Schedule of Selected Financial Information by Business Segments

Other selected financial information by business segment and geographical area is summarized below:

	2019		2018		2017
	(In millions)
Capital Expenditures
Communication Systems	$	33	$	26	$	14
Electronic Systems	74		57		40
Space and Intelligence Systems	31		33		34
Corporate	23		20		27
Discontinued operations	—		—		4
	$	161	$	136	$	119
Depreciation and Amortization
Communication Systems	$	50	$	57	$	64
Electronic Systems	50		44		29
Space and Intelligence Systems	33		36		37
Corporate	125		122		142
Discontinued operations	—		—		39
	$	258	$	259	$	311
Geographical Information for Continuing Operations
U.S. operations:
Revenue	$	6,530	$	5,854	$	5,637
Long-lived assets	$	866	$	892	$	896
International operations:
Revenue	$	271	$	314	$	260
Long-lived assets	$	28	$	8	$	8