RECENT ACCOUNTING PRONOUNCEMENTS (Tables)

6 Months Ended

Jun. 24, 2018

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table summarizes the effects of adopting ASC 606 on our consolidated balance sheet as of December 31, 2017 (ASU 2017-07 had no impact on our consolidated balance sheet) (unaudited; in millions, except par value):



				Adjustments for
	Historical				ASC 606			Adjusted
Assets
Current assets
Cash and cash equivalents	$	2,861			$	—		$	2,861
Receivables, net	8,603				(6,338		)	2,265
Contract assets	—				7,992			7,992
Inventories	4,487				(1,609		)	2,878
Other current assets	1,510				(1		)	1,509
Total current assets	17,461				44			17,505
Property, plant and equipment, net	5,775				—			5,775
Goodwill	10,807				—			10,807
Intangible assets, net	3,797				—			3,797
Deferred income taxes	3,111				45			3,156
Other noncurrent assets	5,570				10			5,580
Total assets	$	46,521			$	99		$	46,620
Liabilities and equity
Current liabilities
Accounts payable	$	1,467			$	—		$	1,467
Contract liabilities ^(a)	6,752				276			7,028
Salaries, benefits and payroll taxes	1,785				—			1,785
Current maturities of long-term debt	750				—			750
Other current liabilities	1,883				—			1,883
Total current liabilities	12,637				276			12,913
Long-term debt, net	13,513				—			13,513
Accrued pension liabilities	15,703				—			15,703
Other postretirement benefit liabilities	719				—			719
Other noncurrent liabilities	4,558				(10		)	4,548
Total liabilities	47,130				266			47,396
Stockholders’ equity
Common stock, $1 par value per share	284				—			284
Additional paid-in capital	—				—			—
Retained earnings	11,573				(168		)	11,405
Accumulated other comprehensive loss	(12,540		)		1			(12,539		)
Total stockholders’ deficit	(683		)		(167		)	(850		)
Noncontrolling interests in subsidiary	74				—			74
Total deficit	(609		)		(167		)	(776		)
Total liabilities and equity	$	46,521			$	99		$	46,620


^(a)	Formerly referred to as customer advances and amounts in excess of costs incurred.

The following table summarizes the effects of adopting ASC 606 on certain components within our net cash provided by operating activities for the six months ended June 25, 2017 (ASC 606 had no impact on total operating cash flows or cash flows from investing and financing activities) (unaudited; in millions):



				Adjustments for
	Historical				ASC 606			Adjusted
Operating activities
Net earnings	$	1,705			$	39		$	1,744
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	581				—			581
Stock-based compensation	101				—			101
Changes in assets and liabilities
Receivables, net	(560		)		(59		)	(619		)
Contract assets	—				(170		)	(170		)
Inventories	(271		)		233			(38		)
Accounts payable	940				—			940
Contract liabilities ^(a)	(316		)		(72		)	(388		)
Postretirement benefit plans	685				—			685
Income taxes	3				—			3
Other, net	342				29			371
Net cash provided by operating activities	$	3,210			$	—		$	3,210


^(a)	Formerly referred to as customer advances and amounts in excess of costs incurred.

The following tables summarize the effects of adopting ASC 606 and ASU 2017-07 on our consolidated statement of earnings for the quarter and six months ended June 25, 2017 (unaudited; in millions, except per share data):



	Quarter Ended
				Adjustments for
	Historical			ASC 606			ASU 2017-07			Adjusted
Net sales
Products	$	10,828		$	(206	)	$	—		$	10,622
Services	1,857			84			—			1,941
Total net sales	12,685			(122		)	—			12,563
Cost of sales
Products	(9,751		)	189			—			(9,562		)
Services	(1,658		)	(48		)	—			(1,706		)
Other unallocated, net	149			—			212			361
Total cost of sales	(11,260		)	141			212			(10,907		)
Gross profit	1,425			19			212			1,656
Other income, net	60			—			—			60
Operating profit	1,485			19			212			1,716
Interest expense	(160		)	—			—			(160		)
Other non-operating expense, net	(2		)	—			(212		)	(214		)
Earnings before income taxes	1,323			19			—			1,342
Income tax expense	(381		)	(6		)	—			(387		)
Net earnings	$	942		$	13		$	—		$	955

Earnings per common share
Basic	$	3.27		$	0.04		$	—		$	3.31
Diluted	$	3.23		$	0.05		$	—		$	3.28
Cash dividends paid per common share	$	1.82		$	—		$	—		$	1.82



	Six Months Ended
				Adjustments for
	Historical			ASC 606			ASU 2017-07			Adjusted
Net sales
Products	$	20,341		$	(106	)	$	—		$	20,235
Services	3,401			139			—			3,540
Total net sales	23,742			33			—			23,775
Cost of sales
Products	(18,438		)	132			—			(18,306		)
Services	(3,034		)	(106		)	—			(3,140		)
Other unallocated, net	308			—			425			733
Total cost of sales	(21,164		)	26			425			(20,713		)
Gross profit	2,578			59			425			3,062
Other expense, net	56			—			—			56
Operating profit	2,634			59			425			3,118
Interest expense	(315		)	—			—			(315		)
Other non-operating expense, net	(1		)	—			(425		)	(426		)
Earnings before income taxes	2,318			59			—			2,377
Income tax expense	(613		)	(20		)	—			(633		)
Net earnings	$	1,705		$	39		$	—		$	1,744

Earnings per common share
Basic	$	5.90		$	0.13		$	—		$	6.03
Diluted	$	5.84		$	0.13		$	—		$	5.97
Cash dividends paid per common share	$	3.64		$	—		$	—		$	3.64