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RECENT ACCOUNTING PRONOUNCEMENTS (Tables)
 9 Months Ended
Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The following tables summarize the effects of adopting ASC 606 and ASU 2017-07 on our consolidated statement of earnings for the quarter and nine months ended September 24, 2017 (unaudited; in millions, except per share data):
 
 
Quarter Ended
 
 
 
 
Adjustments for
 
 
 
 
Historical
 
ASC 606
 
ASU 2017-07
 
Adjusted
Net sales
 
 
 
 
 
 
 
 
 
 
 
 
Products
 
$
10,496

 
 
$
132

 
 
$
—

 
 
$
10,628

 
Services
 
1,673

 
 
40

 
 
—

 
 
1,713

 
Total net sales
 
12,169

 
 
172

 
 
—

 
 
12,341

 
Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
Products
 
(9,481
)
 
 
(63
)
 
 
—

 
 
(9,544
)
 
Services
 
(1,513
)
 
 
(71
)
 
 
—

 
 
(1,584
)
 
Other unallocated, net
 
176

 
 
—

 
 
211

 
 
387

 
Total cost of sales
 
(10,818
)
 
 
(134
)
 
 
211

 
 
(10,741
)
 
Gross profit
 
1,351

 
 
38

 
 
211

 
 
1,600

 
Other income, net
 
77

 
 
—

 
 
—

 
 
77

 
Operating profit
 
1,428

 
 
38

 
 
211

 
 
1,677

 
Interest expense
 
(162
)
 
 
—

 
 
—

 
 
(162
)
 
Other non-operating expense, net
 
(7
)
 
 
—

 
 
(211
)
 
 
(218
)
 
Earnings before income taxes
 
1,259

 
 
38

 
 
—

 
 
1,297

 
Income tax expense
 
(320
)
 
 
(14
)
 
 
—

 
 
(334
)
 
Net earnings
 
$
939

 
 
$
24

 
 
$
—

 
 
$
963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
3.27

 
 
$
0.08

 
 
$
—

 
 
$
3.35

 
Diluted
 
$
3.24

 
 
$
0.08

 
 
$
—

 
 
$
3.32

 
Cash dividends paid per common share
 
$
1.82

 
 
$
—

 
 
$
—

 
 
$
1.82

 
 
 
Nine Months Ended
 
 
 
 
Adjustments for
 
 
 
 
Historical
 
ASC 606
 
ASU 2017-07
 
Adjusted
Net sales
 
 
 
 
 
 
 
 
 
 
 
 
Products
 
$
30,837

 
 
$
26

 
 
$
—

 
 
$
30,863

 
Services
 
5,074

 
 
179

 
 
—

 
 
5,253

 
Total net sales
 
35,911

 
 
205

 
 
—

 
 
36,116

 
Cost of sales
 
 
 
 
 
 
 
 
 
 
 
 
Products
 
(27,919
)
 
 
69

 
 
—

 
 
(27,850
)
 
Services
 
(4,547
)
 
 
(177
)
 
 
—

 
 
(4,724
)
 
Other unallocated, net
 
484

 
 
—

 
 
636

 
 
1,120

 
Total cost of sales
 
(31,982
)
 
 
(108
)
 
 
636

 
 
(31,454
)
 
Gross profit
 
3,929

 
 
97

 
 
636

 
 
4,662

 
Other income, net
 
133

 
 
—

 
 
—

 
 
133

 
Operating profit
 
4,062

 
 
97

 
 
636

 
 
4,795

 
Interest expense
 
(477
)
 
 
—

 
 
—

 
 
(477
)
 
Other non-operating expense, net
 
(8
)
 
 
—

 
 
(636
)
 
 
(644
)
 
Earnings before income taxes
 
3,577

 
 
97

 
 
—

 
 
3,674

 
Income tax expense
 
(933
)
 
 
(34
)
 
 
—

 
 
(967
)
 
Net earnings
 
$
2,644

 
 
$
63

 
 
$
—

 
 
$
2,707

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
9.16

 
 
$
0.22

 
 
$
—

 
 
$
9.38

 
Diluted
 
$
9.08

 
 
$
0.21

 
 
$
—

 
 
$
9.29

 
Cash dividends paid per common share
 
$
5.46

 
 
$
—

 
 
$
—

 
 
$
5.46

 
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 nine months ended September 24, 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
 
$
2,644

 
 
$
63

 
 
$
2,707

 
Adjustments to reconcile net earnings to net cash provided by operating activities
 
 
 
 

 
 
 
 
Depreciation and amortization
 
880

 
 
—

 
 
880

 
Stock-based compensation
 
133

 
 
—

 
 
133

 
Changes in assets and liabilities
 
 
 
 

 
 
 
 
Receivables, net
 
(819
)
 
 
(15
)
 
 
(834
)
 
Contract assets
 
—

 
 
(228
)
 
 
(228
)
 
Inventories
 
(133
)
 
 
67

 
 
(66
)
 
Accounts payable
 
1,229

 
 
—

 
 
1,229

 
Contract liabilities (a)
 
(581
)
 
 
89

 
 
(492
)
 
Postretirement benefit plans
 
1,012

 
 
—

 
 
1,012

 
Income taxes
 
(202
)
 
 
—

 
 
(202
)
 
Other, net
 
801

 
 
24

 
 
825

 
Net cash provided by operating activities
 
$
4,964

 
 
$
—

 
 
$
4,964

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