Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 29, 2019 | Oct. 18, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2019 | |
Entity File Number | 1-11437 | |
Entity Registrant Name | LOCKHEED MARTIN CORPORATION | |
Entity Address, State or Province | MD | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 52-1893632 | |
Entity Address, Address Line One | 6801 Rockledge Drive, | |
Entity Address, City or Town | Bethesda, | |
Entity Address, Postal Zip Code | 20817 | |
City Area Code | 301 | |
Local Phone Number | 897-6000 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Trading Symbol | LMT | |
Entity Central Index Key | 0000936468 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 282,071,418 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Total net sales | $ 15,171 | $ 14,318 | $ 43,934 | $ 39,351 |
Total cost of sales | (13,108) | (12,397) | (37,690) | (34,019) |
Severance and restructuring charges | 0 | 0 | 0 | (96) |
Gross profit | 2,063 | 1,921 | 6,244 | 5,332 |
Other income, net | 42 | 42 | 152 | 151 |
Operating profit | 2,105 | 1,963 | 6,396 | 5,483 |
Interest expense | (162) | (177) | (496) | (497) |
Other non-operating expense, net | (162) | (211) | (491) | (631) |
Earnings before income taxes | 1,781 | 1,575 | 5,409 | 4,355 |
Income tax expense | (173) | (102) | (677) | (562) |
Net earnings | $ 1,608 | $ 1,473 | $ 4,732 | $ 3,793 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 5.70 | $ 5.18 | $ 16.77 | $ 13.31 |
Diluted (in dollars per share) | 5.66 | 5.14 | 16.66 | 13.21 |
Cash dividends paid per common share (in dollars per share) | $ 2.20 | $ 2 | $ 6.60 | $ 6 |
Products | ||||
Total net sales | $ 12,728 | $ 11,918 | $ 36,701 | $ 32,830 |
Total cost of sales | (11,339) | (10,701) | (32,638) | (29,391) |
Services | ||||
Total net sales | 2,443 | 2,400 | 7,233 | 6,521 |
Total cost of sales | (2,211) | (2,070) | (6,452) | (5,726) |
Other unallocated, net | ||||
Total cost of sales | $ 442 | $ 374 | $ 1,400 | $ 1,194 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 1,608 | $ 1,473 | $ 4,732 | $ 3,793 |
Other comprehensive income, net of tax | ||||
Recognition of previously deferred postretirement benefit plan amounts | 227 | 300 | 681 | 900 |
Other, net | (41) | 18 | (13) | (30) |
Other comprehensive income, net of tax | 186 | 318 | 668 | 870 |
Comprehensive income | $ 1,794 | $ 1,791 | $ 5,400 | $ 4,663 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 29, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 2,539 | $ 772 |
Receivables, net | 2,384 | 2,444 |
Contract assets | 11,004 | 9,472 |
Inventories | 3,474 | 2,997 |
Other current assets | 402 | 418 |
Total current assets | 19,803 | 16,103 |
Property, plant and equipment, net | 6,240 | 6,124 |
Goodwill | 10,762 | 10,769 |
Intangible assets, net | 3,278 | 3,494 |
Deferred income taxes | 2,912 | 3,208 |
Other noncurrent assets | 6,280 | 5,178 |
Total assets | 49,275 | 44,876 |
Current liabilities | ||
Accounts payable | 2,904 | 2,402 |
Contract liabilities | 6,777 | 6,491 |
Salaries, benefits and payroll taxes | 2,308 | 2,122 |
Current maturities of long-term debt and commercial paper | 900 | 1,500 |
Other current liabilities | 2,626 | 1,883 |
Total current liabilities | 15,515 | 14,398 |
Long-term debt, net | 12,652 | 12,604 |
Accrued pension liabilities | 11,436 | 11,410 |
Other postretirement benefit liabilities | 677 | 704 |
Other noncurrent liabilities | 5,058 | 4,311 |
Total liabilities | 45,338 | 43,427 |
Stockholders’ equity | ||
Common stock, $1 par value per share | 281 | 281 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 17,265 | 15,434 |
Accumulated other comprehensive loss | (13,653) | (14,321) |
Total stockholders’ equity | 3,893 | 1,394 |
Noncontrolling interests in subsidiary | 44 | 55 |
Total equity | 3,937 | 1,449 |
Total liabilities and equity | $ 49,275 | $ 44,876 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 29, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net earnings | $ 4,732 | $ 3,793 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 867 | 857 |
Stock-based compensation | 158 | 148 |
Gain on property sale | (51) | 0 |
Severance and restructuring charges | 0 | 96 |
Changes in assets and liabilities | ||
Receivables, net | 60 | (151) |
Contract assets | (1,532) | (1,777) |
Inventories | (477) | (172) |
Accounts payable | 524 | 1,237 |
Contract liabilities | 286 | (539) |
Postretirement benefit plans | 828 | (3,935) |
Income taxes | (117) | 729 |
Other, net | 543 | 635 |
Net cash provided by operating activities | 5,821 | 921 |
Investing activities | ||
Capital expenditures | (841) | (819) |
Other, net | 38 | 146 |
Net cash used for investing activities | (803) | (673) |
Financing activities | ||
Dividends paid | (1,881) | (1,725) |
Repurchases of common stock | (710) | (826) |
(Repayments of) proceeds from commercial paper, net | (600) | 490 |
Other, net | (60) | (151) |
Net cash used for financing activities | (3,251) | (2,212) |
Net change in cash and cash equivalents | 1,767 | (1,964) |
Cash and cash equivalents at beginning of period | 772 | 2,861 |
Cash and cash equivalents at end of period | $ 2,539 | $ 897 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | Noncontrolling Interests in Subsidiary |
Beginning Balance at Dec. 31, 2017 | $ (776) | $ 284 | $ 0 | $ 11,405 | $ (12,539) | $ (850) | $ 74 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 3,793 | 3,793 | 3,793 | ||||
Other comprehensive income, net of tax | 870 | 870 | 870 | ||||
Repurchases of common stock | (826) | (3) | (300) | (523) | (826) | ||
Dividends declared | (2,346) | (2,346) | (2,346) | ||||
Stock-based awards, ESOP activity and other | 302 | 2 | 300 | 302 | |||
Reclassification of income tax effects from tax reform | 2,408 | (2,408) | |||||
Net decrease in noncontrolling interests in subsidiary | (15) | (15) | |||||
Ending Balance at Sep. 30, 2018 | 1,002 | 283 | 0 | 14,737 | (14,077) | 943 | 59 |
Beginning Balance at Jun. 24, 2018 | 479 | 283 | 0 | 14,528 | (14,395) | 416 | 63 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 1,473 | 1,473 | 1,473 | ||||
Other comprehensive income, net of tax | 318 | 318 | 318 | ||||
Repurchases of common stock | (203) | (1) | (139) | (63) | (203) | ||
Dividends declared | (1,201) | (1,201) | (1,201) | ||||
Stock-based awards, ESOP activity and other (in shares) | 1 | ||||||
Stock-based awards, ESOP activity and other | 140 | 139 | 140 | ||||
Net decrease in noncontrolling interests in subsidiary | (4) | (4) | |||||
Ending Balance at Sep. 30, 2018 | 1,002 | 283 | 0 | 14,737 | (14,077) | 943 | 59 |
Ending Balance at Dec. 31, 2018 | 1,449 | 281 | 0 | 15,434 | (14,321) | 1,394 | 55 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 4,732 | 4,732 | 4,732 | ||||
Other comprehensive income, net of tax | 668 | 668 | 668 | ||||
Repurchases of common stock | (718) | (2) | (366) | (350) | (718) | ||
Dividends declared | (2,551) | (2,551) | (2,551) | ||||
Stock-based awards, ESOP activity and other | 368 | 2 | 366 | 368 | |||
Net decrease in noncontrolling interests in subsidiary | (11) | (11) | |||||
Ending Balance at Sep. 29, 2019 | 3,937 | 281 | 0 | 17,265 | (13,653) | 3,893 | 44 |
Beginning Balance at Jun. 30, 2019 | 2,896 | 281 | 0 | 16,408 | (13,839) | 2,850 | 46 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 1,608 | 1,608 | 1,608 | ||||
Other comprehensive income, net of tax | 186 | 186 | 186 | ||||
Repurchases of common stock | (218) | 0 | (146) | (72) | (218) | ||
Dividends declared | (679) | (679) | (679) | ||||
Stock-based awards, ESOP activity and other (in shares) | 0 | ||||||
Stock-based awards, ESOP activity and other | 146 | 146 | 146 | ||||
Net decrease in noncontrolling interests in subsidiary | (2) | (2) | |||||
Ending Balance at Sep. 29, 2019 | $ 3,937 | $ 281 | $ 0 | $ 17,265 | $ (13,653) | $ 3,893 | $ 44 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION We prepared these consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these consolidated financial statements reflect all adjustments that are of a normal recurring nature necessary for a fair presentation of our results of operations, financial condition, and cash flows for the interim periods presented. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates. Significant estimates inherent in the preparation of our consolidated financial statements include, but are not limited to, accounting for sales and cost recognition, postretirement benefit plans, environmental receivables and liabilities, evaluation of goodwill and other assets for impairment, income taxes including deferred tax assets, fair value measurements and contingencies. The consolidated financial statements include the accounts of subsidiaries we control and variable interest entities if we are the primary beneficiary. We eliminate intercompany balances and transactions in consolidation. We close our books and records on the last Sunday of the calendar quarter, which was on September 29 for the third quarter of 2019 and September 30 for the third quarter of 2018 , to align our financial closing with our business processes. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods as our fiscal year ends on December 31. We adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), effective January 1, 2019, using the optional transition method whereby we applied the new lease requirements under ASU 2016-02 through a cumulative-effect adjustment, which after completing our implementation analysis, resulted in no adjustment to our January 1, 2019 beginning retained earnings balance. Consequently, periods prior to January 1, 2019 are not restated for the adoption of ASU 2016-02. See “ Note 6 – Leases ” and “ Note 12 – Recent Accounting Pronouncements ” for more information regarding our adoption of this standard. Other than the changes in our accounting policies related to adoption of ASU 2016-02, we followed the accounting policies disclosed in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 ( 2018 Form 10-K) filed with the SEC. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the full year or future periods. Unless otherwise noted, we present all per share amounts cited in these consolidated financial statements on a “per diluted share” basis. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2018 Form 10-K. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions): Quarters Ended Nine Months Ended September 29, September 30, September 29, September 30, Weighted average common shares outstanding for basic computations 282.0 284.3 282.2 284.9 Weighted average dilutive effect of equity awards 1.9 2.4 1.8 2.3 Weighted average common shares outstanding for diluted computations 283.9 286.7 284.0 287.2 We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units (RSUs) and performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method. There were no significant anti-dilutive equity awards during the quarters and nine months ended September 29, 2019 or September 30, 2018 . |
INFORMATION ON BUSINESS SEGMENT
INFORMATION ON BUSINESS SEGMENTS | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
INFORMATION ON BUSINESS SEGMENTS | INFORMATION ON BUSINESS SEGMENTS We operate in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. We organize our business segments based on the nature of products and services offered. Net sales and operating profit of our business segments exclude intersegment sales, cost of sales, and profit as these activities are eliminated in consolidation. Business segment operating profit includes our share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of our business segments. Business segment operating profit also excludes the FAS/CAS operating adjustment described below, a portion of corporate costs not considered allowable or allocable to contracts with the U.S. Government under the applicable U.S. government cost accounting standards (CAS) or federal acquisition regulations (FAR), and other items not considered part of management’s evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, environmental costs, stock-based compensation expense, retiree benefits, significant severance actions, significant asset impairments, gains or losses from significant divestitures, and other miscellaneous corporate activities. Excluded items are included in the reconciling item “Unallocated items” between operating profit from our business segments and our consolidated operating profit. See “ Note 11 – Other ” for a discussion related to certain factors that may impact the comparability of net sales and operating profit of our business segments. Summary operating results for each of our business segments were as follows (in millions): Quarters Ended Nine Months Ended September 29, September 30, September 29, September 30, Net sales Aeronautics $ 6,178 $ 5,642 $ 17,312 $ 15,361 Missiles and Fire Control 2,601 2,273 7,362 6,035 Rotary and Mission Systems 3,709 3,848 11,239 10,637 Space 2,683 2,555 8,021 7,318 Total net sales $ 15,171 $ 14,318 $ 43,934 $ 39,351 Operating profit Aeronautics $ 665 $ 600 $ 1,842 $ 1,646 Missiles and Fire Control 349 332 1,093 872 Rotary and Mission Systems 342 361 1,068 1,013 Space 309 293 931 831 Total business segment operating profit 1,665 1,586 4,934 4,362 Unallocated items FAS/CAS operating adjustment (a) 513 451 1,537 1,353 Stock-based compensation (54 ) (50 ) (158 ) (148 ) Severance and restructuring charges (b) — — — (96 ) Other, net (19 ) (24 ) 83 12 Total unallocated items 440 377 1,462 1,121 Total consolidated operating profit $ 2,105 $ 1,963 $ 6,396 $ 5,483 Intersegment sales Aeronautics $ 58 $ 35 $ 147 $ 87 Missiles and Fire Control 107 122 372 330 Rotary and Mission Systems 530 544 1,648 1,509 Space 91 63 244 156 Total intersegment sales $ 786 $ 764 $ 2,411 $ 2,082 (a) The FAS/CAS operating adjustment represents the difference between the service cost component of financial accounting standards (FAS) pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS. (b) Unallocated items for the nine months ended September 30, 2018 include charges totaling $96 million ( $76 million , or $0.26 per share, after tax) related to certain severance and restructuring actions at our RMS business segment. See “ Note 11 – Other ” (under the caption “Severance and Restructuring Charges”) for more information. Our total net FAS/CAS pension adjustment for the quarters and nine months ended September 29, 2019 and September 30, 2018 , including the service and non-service cost components of FAS pension expense for our qualified defined benefit pension plans, were as follows (in millions): Quarters Ended Nine Months Ended September 29, September 30, September 29, September 30, Total FAS expense and CAS costs FAS pension expense $ (274 ) $ (356 ) $ (820 ) $ (1,069 ) Less: CAS pension cost 642 608 1,924 1,825 Net FAS/CAS pension adjustment $ 368 $ 252 $ 1,104 $ 756 Service and non-service cost reconciliation FAS pension service cost $ (129 ) $ (157 ) $ (387 ) $ (472 ) Less: CAS pension cost 642 608 1,924 1,825 FAS/CAS operating adjustment 513 451 1,537 1,353 Non-operating FAS pension cost (a) (145 ) (199 ) (433 ) (597 ) Net FAS/CAS pension adjustment $ 368 $ 252 $ 1,104 $ 756 (a) The non-service cost components of net periodic benefit cost relate only to our qualified defined benefit pension plans. In addition to the non-service cost components in the table above, we incurred similar costs for our other postretirement benefit plans of $30 million and $87 million for the quarter and nine months ended September 29, 2019 and $16 million and $49 million for the quarter and nine months ended September 30, 2018 . We recover CAS pension and other postretirement benefit plan cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS cost in each of our business segment’s net sales and cost of sales. Our consolidated financial statements must present FAS pension and other postretirement benefit plan expense calculated in accordance with FAS requirements under U.S. GAAP. The operating portion of the net FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension expense and total CAS pension cost. The non-service FAS pension cost component is included in other non-operating expense, net in our consolidated statements of earnings. The net FAS/CAS pension adjustment increases or decreases CAS pension cost to equal total FAS pension expense (both service and non-service). Net sales by products and services, contract type, customer, and geographic region were as follows (in millions): Quarter Ended September 29, 2019 Aeronautics MFC RMS Space Total Net sales Products $ 5,340 $ 2,172 $ 2,982 $ 2,234 $ 12,728 Services 838 429 727 449 2,443 Total net sales $ 6,178 $ 2,601 $ 3,709 $ 2,683 $ 15,171 Net sales by contract type Fixed-price $ 4,567 $ 1,681 $ 2,536 $ 527 $ 9,311 Cost-reimbursable 1,611 920 1,173 2,156 5,860 Total net sales $ 6,178 $ 2,601 $ 3,709 $ 2,683 $ 15,171 Net sales by customer U.S. Government $ 3,509 $ 1,995 $ 2,763 $ 2,332 $ 10,599 International (a) 2,631 572 804 343 4,350 U.S. commercial and other 38 34 142 8 222 Total net sales $ 6,178 $ 2,601 $ 3,709 $ 2,683 $ 15,171 Net sales by geographic region United States $ 3,547 $ 2,029 $ 2,905 $ 2,340 $ 10,821 Asia Pacific 1,046 107 317 17 1,487 Europe 1,106 138 168 326 1,738 Middle East 455 318 206 — 979 Other 24 9 113 — 146 Total net sales $ 6,178 $ 2,601 $ 3,709 $ 2,683 $ 15,171 Nine Months Ended September 29, 2019 Aeronautics MFC RMS Space Total Net sales Products $ 14,876 $ 6,051 $ 9,064 $ 6,710 $ 36,701 Services 2,436 1,311 2,175 1,311 7,233 Total net sales $ 17,312 $ 7,362 $ 11,239 $ 8,021 $ 43,934 Net sales by contract type Fixed-price $ 12,777 $ 4,660 $ 7,681 $ 1,585 $ 26,703 Cost-reimbursable 4,535 2,702 3,558 6,436 17,231 Total net sales $ 17,312 $ 7,362 $ 11,239 $ 8,021 $ 43,934 Net sales by customer U.S. Government $ 10,420 $ 5,528 $ 8,113 $ 6,900 $ 30,961 International (a) 6,736 1,717 2,773 1,098 12,324 U.S. commercial and other 156 117 353 23 649 Total net sales $ 17,312 $ 7,362 $ 11,239 $ 8,021 $ 43,934 Net sales by geographic region United States $ 10,576 $ 5,645 $ 8,466 $ 6,923 $ 31,610 Asia Pacific 2,736 315 1,065 48 4,164 Europe 2,751 363 509 1,035 4,658 Middle East 1,127 1,003 738 15 2,883 Other 122 36 461 — 619 Total net sales $ 17,312 $ 7,362 $ 11,239 $ 8,021 $ 43,934 (a) International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers. Quarter Ended September 30, 2018 Aeronautics MFC RMS Space Total Net sales Products $ 4,799 $ 1,873 $ 3,132 $ 2,114 $ 11,918 Services 843 400 716 441 2,400 Total net sales $ 5,642 $ 2,273 $ 3,848 $ 2,555 $ 14,318 Net sales by contract type Fixed-price $ 4,163 $ 1,536 $ 2,710 $ 534 $ 8,943 Cost-reimbursable 1,479 737 1,138 2,021 5,375 Total net sales $ 5,642 $ 2,273 $ 3,848 $ 2,555 $ 14,318 Net sales by customer U.S. Government $ 3,700 $ 1,625 $ 2,765 $ 2,174 $ 10,264 International (a) 1,909 600 959 362 3,830 U.S. commercial and other 33 48 124 19 224 Total net sales $ 5,642 $ 2,273 $ 3,848 $ 2,555 $ 14,318 Net sales by geographic region United States $ 3,733 $ 1,673 $ 2,889 $ 2,193 $ 10,488 Asia Pacific 854 126 377 8 1,365 Europe 691 112 213 324 1,340 Middle East 326 347 202 30 905 Other 38 15 167 — 220 Total net sales $ 5,642 $ 2,273 $ 3,848 $ 2,555 $ 14,318 Nine Months Ended September 30, 2018 Aeronautics MFC RMS Space Total Net sales Products $ 13,080 $ 4,935 $ 8,753 $ 6,062 $ 32,830 Services 2,281 1,100 1,884 1,256 6,521 Total net sales $ 15,361 $ 6,035 $ 10,637 $ 7,318 $ 39,351 Net sales by contract type Fixed-price $ 11,284 $ 4,043 $ 7,368 $ 1,394 $ 24,089 Cost-reimbursable 4,077 1,992 3,269 5,924 15,262 Total net sales $ 15,361 $ 6,035 $ 10,637 $ 7,318 $ 39,351 Net sales by customer U.S. Government $ 9,909 $ 4,215 $ 7,729 $ 6,114 $ 27,967 International (a) 5,321 1,696 2,562 1,162 10,741 U.S. commercial and other 131 124 346 42 643 Total net sales $ 15,361 $ 6,035 $ 10,637 $ 7,318 $ 39,351 Net sales by geographic region United States $ 10,040 $ 4,339 $ 8,075 $ 6,156 $ 28,610 Asia Pacific 2,394 349 1,002 62 3,807 Europe 1,877 227 592 1,082 3,778 Middle East 903 1,091 516 18 2,528 Other 147 29 452 — 628 Total net sales $ 15,361 $ 6,035 $ 10,637 $ 7,318 $ 39,351 (a) International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers. Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, multi-variant, stealth fighter aircraft. Net sales for the F-35 program represented approximately 28% and 27% of our total consolidated net sales for the quarter and nine months ended September 29, 2019 and 27% and 26% of our total consolidated net sales for the quarter and nine months ended September 30, 2018 . Total assets for each of our business segments were as follows (in millions): September 29, December 31, Assets Aeronautics $ 10,441 $ 8,435 Missiles and Fire Control 5,276 5,017 Rotary and Mission Systems 18,843 18,333 Space 5,821 5,445 Total business segment assets 40,381 37,230 Corporate assets (a) 8,894 7,646 Total assets $ 49,275 $ 44,876 (a) Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans. |
CONTRACT ASSETS AND LIABILITIES
CONTRACT ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT ASSETS AND LIABILITIES | CONTRACT ASSETS AND LIABILITIES Contract assets include unbilled amounts typically resulting from sales under contracts when the percentage-of-completion cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract assets and contract liabilities were as follows (in millions): September 29, December 31, Contract assets $ 11,004 $ 9,472 Contract liabilities 6,777 6,491 Contract assets increased $1.5 billion during the nine months ended September 29, 2019 , primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during the nine months ended September 29, 2019 for which we have not yet billed our customers. There were no significant impairment losses related to our contract assets during the quarters and nine months ended September 29, 2019 and September 30, 2018 . Contract liabilities increased $286 million during the nine months ended September 29, 2019 , primarily due to payments received in advance of our satisfaction or partial satisfaction of these performance obligations. During the quarter and nine months ended September 29, 2019 , we recognized $688 million and $3.6 billion of our contract liabilities at December 31, 2018 as revenue. During the quarter and nine months ended September 30, 2018 , we recognized $711 million and $3.4 billion of our contract liabilities at December 31, 2017 as revenue. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following (in millions): September 29, December 31, Materials, spares and supplies $ 460 $ 446 Work-in-process 2,696 2,161 Finished goods 318 390 Total inventories $ 3,474 $ 2,997 Costs incurred to fulfill a customer contract in advance of the contract being awarded are included in inventories as work-in-process if we determine that those costs relate directly to a customer contract or to an anticipated customer contract that we can specifically identify and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of sales consistent with the transfer of products and services to the customer upon the receipt of the anticipated contract. All other pre-contract costs, including start-up costs, are expensed as incurred. As of September 29, 2019 and December 31, 2018 , $585 million and $443 million of pre-contract costs were included in inventory. |
LEASES
LEASES | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
LEASES | LEASES We evaluate whether our contractual arrangements contain leases at the inception of such arrangements. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Substantially all of our leases are long-term operating leases with fixed payment terms. We do not have significant financing leases. Our right-of-use (ROU) operating lease assets represent our right to use an underlying asset for the lease term, and our operating lease liabilities represent our obligation to make lease payments. ROU operating lease assets are recorded in other noncurrent assets in our consolidated balance sheet. Operating lease liabilities are recorded in other current liabilities or other noncurrent liabilities in our consolidated balance sheet based on their contractual due dates. Both the ROU operating lease asset and liability are recognized as of the lease commencement date at the present value of the lease payments over the lease term. Most of our leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate, which is determined using our credit rating and information available as of the commencement date. ROU operating lease assets include lease payments made at or before the lease commencement date, net of any lease incentives. Our operating lease agreements may include options to extend the lease term or terminate it early. We include options to extend or terminate leases in the ROU operating lease asset and liability when it is reasonably certain we will exercise these options. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales on our consolidated statement of earnings. We have operating lease arrangements with lease and non-lease components. The non-lease components in our arrangements are not significant when compared to the lease components. For all operating leases, we account for the lease and non-lease components as a single component. Additionally, for certain equipment leases, we apply a portfolio approach to recognize operating lease ROU assets and liabilities. We evaluate ROU assets for impairment consistent with our property, plant and equipment policy disclosure included in our 2018 Form 10‑K. Generally, we enter into operating lease agreements for facilities, land and equipment. Our ROU operating lease assets were $984 million at September 29, 2019 . Operating lease liabilities were $1.1 billion , of which $818 million were classified as noncurrent, at September 29, 2019 . New ROU operating lease assets and liabilities entered into during the nine months ended September 29, 2019 were $124 million . The weighted average remaining lease term and discount rate for our operating leases were approximately 8.6 years and 3.3% at September 29, 2019 . During the quarter and nine months ended September 29, 2019 , we recognized operating lease expense of $59 million and $179 million . During the quarter and nine months ended September 30, 2018 , we recognized operating lease expense of $63 million and $183 million . In addition, we made cash payments of $169 million for operating leases during the nine months ended September 29, 2019 , which are included in cash flows from operating activities in our consolidated statement of cash flows. Future minimum lease commitments at September 29, 2019 were as follows (in millions): Total Remainder of 2019 2020 2021 2022 2023 Thereafter Operating leases $ 1,248 $ 134 $ 210 $ 179 $ 143 $ 107 $ 475 Less: imputed interest $ 167 Total $ 1,081 |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 29, 2019 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS Our pretax net periodic benefit cost related to our qualified defined benefit pension plans and retiree medical and life insurance plans consisted of the following (in millions): Quarters Ended Nine Months Ended September 29, September 30, September 29, September 30, Qualified defined benefit pension plans Service cost $ 129 $ 157 $ 387 $ 472 Interest cost 452 435 1,355 1,305 Expected return on plan assets (575 ) (599 ) (1,725 ) (1,796 ) Recognized net actuarial losses 351 444 1,053 1,332 Amortization of prior service credits (83 ) (81 ) (250 ) (244 ) Total net periodic benefit cost $ 274 $ 356 $ 820 $ 1,069 Retiree medical and life insurance plans Service cost $ 4 $ 4 $ 11 $ 13 Interest cost 25 23 73 69 Expected return on plan assets (28 ) (34 ) (83 ) (101 ) Recognized net actuarial losses 1 2 2 4 Amortization of prior service costs 10 4 31 11 Total net periodic benefit cost (credit) $ 12 $ (1 ) $ 34 $ (4 ) We record the service cost component of net periodic benefit cost as part of cost of sales and the non-service cost components of net periodic benefit cost as part of other non-operating expense, net in the consolidated statements of earnings. The recognized net actuarial losses and amortization of prior service credits or costs in the table above, along with similar costs related to our other postretirement benefit plans ( $11 million and $31 million for the quarter and nine months ended September 29, 2019 and $13 million and $42 million for the quarter and nine months ended September 30, 2018 ) were reclassified from accumulated other comprehensive loss (AOCL) and recorded as a component of net periodic benefit cost for the periods presented. These costs totaled $290 million ( $227 million , net of tax) and $867 million ( $681 million , net of tax) during the quarter and nine months ended September 29, 2019 and $382 million ( $300 million , net of tax) and $1.1 billion ( $900 million , net of tax) during the quarter and nine months ended September 30, 2018 and were recorded on our consolidated statements of comprehensive income as an increase to other comprehensive income. The funding of our qualified defined benefit pension plans is determined in accordance with the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006 (PPA), along with consideration of CAS and Internal Revenue Code rules. During the quarter and nine months ended September 29, 2019 , there were no contributions to our qualified defined benefit pension plans. During the quarter and nine months ended September 30, 2018 , we contributed $1.5 billion and $5.0 billion to our qualified defined benefit pension plans. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 9 Months Ended |
Sep. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES | LEGAL PROCEEDINGS AND CONTINGENCIES We are a party to or have property subject to litigation and other proceedings that arise in the ordinary course of our business, including matters arising under provisions relating to the protection of the environment and are subject to contingencies related to certain businesses we previously owned. These types of matters could result in fines, penalties, cost reimbursements or contributions, compensatory or treble damages, or non-monetary sanctions or relief. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. Although we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made. We follow a thorough process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. Legal Proceedings As a result of our acquisition of Sikorsky Aircraft Corporation (Sikorsky), we assumed the defense of and any potential liability for two civil False Claims Act lawsuits pending in the U.S. District Court for the Eastern District of Wisconsin. In October 2014, the U.S. Government filed a complaint in intervention in the first suit, which was brought by qui tam relator Mary Patzer, a former Derco Aerospace (Derco) employee. In May 2017, the U.S. Government filed a complaint in intervention in the second suit, which was brought by qui tam relator Peter Cimma, a former Sikorsky Support Services, Inc. (SSSI) employee. In November 2017, the Court consolidated the cases into a single action for discovery and trial. The U.S. Government alleges that Sikorsky and two of its wholly-owned subsidiaries, Derco and SSSI, violated the civil False Claims Act and the Truth in Negotiations Act in connection with a contract the U.S. Navy awarded to SSSI in June 2006 to support the Navy’s T-34 and T-44 fixed-wing turboprop training aircraft. SSSI subcontracted with Derco, primarily to procure and manage spare parts for the training aircraft. The U.S. Government contends that SSSI overbilled the Navy on the contract as the result of Derco’s use of prohibited cost-plus-percentage-of-cost pricing to add profit and overhead costs as a percentage of the price of the spare parts that Derco procured and then sold to SSSI. The U.S. Government also alleges that Derco’s claims to SSSI, SSSI’s claims to the Navy, and SSSI’s yearly Certificates of Final Indirect Costs from 2006 through 2012 were false and that SSSI submitted inaccurate cost or pricing data in violation of the Truth in Negotiations Act for a sole-sourced, follow-on “bridge” contract. The U.S. Government’s complaints assert common law claims for breach of contract and unjust enrichment. The U.S. Government further alleged violations of the Anti-Kickback Act and False Claims Act based on a monthly “chargeback,” through which SSSI billed Derco for the cost of certain SSSI personnel, allegedly in exchange for SSSI’s permitting a pricing arrangement that was “highly favorable” to Derco. On January 12, 2018, the Corporation filed a partial motion to dismiss intended to narrow the U.S. Government’s claims, including by seeking dismissal of the Anti-Kickback Act allegations. The Corporation also moved to dismiss Cimma as a party under the False Claims Act’s first-to-file rule, which permits only the first relator to recover in a pending case. The District Court granted these motions, in part, on July 20, 2018, dismissing the Government’s claims under the Anti-Kickback Act and dismissing Cimma as a party to the litigation. The U.S. Government seeks damages of approximately $52 million , subject to trebling, plus statutory penalties. We believe that we have legal and factual defenses to the U.S. Government’s remaining claims. Although we continue to evaluate our liability and exposure, we do not currently believe that it is probable that we will incur a material loss. If, contrary to our expectations, the U.S. Government prevails in this matter and proves damages at or near $52 million and is successful in having such damages trebled, the outcome could have an adverse effect on our results of operations in the period in which a liability is recognized and on our cash flows for the period in which any damages are paid. On February 8, 2019, the Department of Justice (DOJ) filed a complaint in the U.S. District Court for the Eastern District of Washington alleging, among other counts, civil False Claims Act and civil Anti-Kickback Act violations against Mission Support Alliance, LLC (MSA), Lockheed Martin, Lockheed Martin Services, Inc. (LMSI) and a current Lockheed Martin vice president. The dollar amount of damages sought is not specified but DOJ seeks treble damages with respect to the False Claims Act and penalties that are subject to doubling under the Anti-Kickback Act. The allegations relate primarily to information technology services performed by LMSI under a subcontract to MSA and the pricing by MSA and LMSI of those services as well as Lockheed Martin’s payment of standard incentive compensation to certain employees who were seconded to MSA, including the vice president. MSA is a joint venture that holds a prime contract to provide infrastructure support services at DOE’s Hanford facility. On April 23, 2019, the parties each filed partial motions to dismiss the U.S. Government’s False Claims Act and Anti-Kickback Act allegations. On August 16, 2016, we divested our former Information Systems & Global Solutions (IS&GS) business segment to Leidos Holdings, Inc. (Leidos) in a transaction that resulted in IS&GS, now known as Leidos Innovations Corporation (Leidos Innovations), becoming a wholly owned subsidiary of Leidos (the Transaction). In the Transaction, Leidos acquired IS&GS’ interest in MSA and the liabilities related to Lockheed Martin’s participation in MSA. Included within the liabilities assumed were those associated with this lawsuit. Lockheed Martin transferred to Leidos a reserve of approximately $38 million established by Lockheed Martin with respect to its potential liability and that of its affiliates and agreed to indemnify Leidos Innovations with respect to the liabilities assumed for damages to Leidos Innovations and an enumerated list of subsidiaries of Leidos Innovations for 100% of amounts in excess of this reserve up to $64 million and 50% of amounts in excess of $64 million . We cannot reasonably estimate our exposure at this time, but it is possible that a settlement by or judgment against any of the defendants could implicate Lockheed Martin’s indemnification obligations as described above. At present, in view of what we believe to be the strength of the defenses, our belief that Leidos assumed the liabilities, and our view of the structure of the indemnity, we do not believe it probable that we will incur a material loss and have not taken any reserve. On April 24, 2009, we filed a declaratory judgment action against the New York Metropolitan Transportation Authority and its Capital Construction Company (collectively, the MTA) asking the U.S. District Court for the Southern District of New York to find that the MTA is in material breach of our agreement based on the MTA’s failure to provide access to sites where work must be performed and the customer-furnished equipment necessary to complete the contract. The MTA filed an answer and counterclaim alleging that we breached the contract and subsequently terminated the contract for alleged default. The primary damages sought by the MTA are the costs to complete the contract and potential re-procurement costs. While we are unable to estimate the cost of another contractor to complete the contract and the costs of re-procurement, we note that our contract with the MTA had a total value of $323 million , of which $241 million was paid to us, and that the MTA is seeking damages of approximately $190 million . We dispute the MTA’s allegations and are defending against them. Additionally, following an investigation, our sureties on a performance bond related to this matter, who were represented by independent counsel, concluded that the MTA’s termination of the contract was improper. Finally, our declaratory judgment action was later amended to include claims for monetary damages against the MTA of approximately $95 million . This matter was taken under submission by the District Court in December 2014, after a five-week bench trial and the filing of post-trial pleadings by the parties. We continue to await a decision from the District Court. Although this matter relates to our former IS&GS business, we retained the litigation when we divested IS&GS in 2016. Environmental Matters We are involved in proceedings and potential proceedings relating to soil, sediment, surface water, and groundwater contamination, disposal of hazardous substances, and other environmental matters at several of our current or former facilities, facilities for which we may have contractual responsibility, and at third-party sites where we have been designated as a potentially responsible party (PRP). A substantial portion of environmental costs will be included in our net sales and cost of sales in future periods pursuant to U.S. Government regulations. At the time a liability is recorded for future environmental costs, we record a receivable for estimated future recovery considered probable through the pricing of products and services to agencies of the U.S. Government, regardless of the contract form (e.g., cost-reimbursable, fixed-price). We continually evaluate the recoverability of our environmental receivables by assessing, among other factors, U.S. Government regulations, our U.S. Government business base and contract mix, our history of receiving reimbursement of such costs, and efforts by some U.S. Government representatives to limit such reimbursement. We include the portions of those environmental costs expected to be allocated to our non-U.S. Government contracts, or determined not to be recoverable under U.S. Government contracts, in our cost of sales at the time the liability is established. At September 29, 2019 , and December 31, 2018 , the aggregate amount of liabilities recorded relative to environmental matters was $828 million and $864 million , most of which are recorded in other noncurrent liabilities on our consolidated balance sheets. We have recorded receivables totaling $719 million and $750 million at September 29, 2019 and December 31, 2018 , most of which are recorded in other noncurrent assets on our consolidated balance sheets for the estimated future recovery of these costs, as we consider the recovery probable based on the factors previously mentioned. We project costs and recovery of costs over approximately 20 years . Environmental remediation activities usually span many years, which makes estimating liabilities a matter of judgment because of uncertainties with respect to assessing the extent of the contamination as well as such factors as changing remediation technologies and changing regulatory environmental standards. There are a number of former and present operating facilities that we are monitoring or investigating for potential future remediation. We perform quarterly reviews of the status of our environmental remediation sites and the related liabilities and receivables. Additionally, in our quarterly reviews, we consider these and other factors in estimating the timing and amount of any future costs that may be required for remediation activities, and record a liability when it is probable that a loss has occurred or will occur and the loss can be reasonably estimated. The amount of liability recorded is based on our estimate of the costs to be incurred for remediation at a particular site. We do not discount the recorded liabilities, as the amount and timing of future cash payments are not fixed or cannot be reliably determined. We reasonably cannot determine the extent of our financial exposure in all cases as, although a loss may be probable or reasonably possible, in some cases it is not possible at this time to estimate the loss or reasonably possible loss or range of loss. We also pursue claims for recovery of costs incurred or for contribution to site remediation costs against other PRPs, including the U.S. Government, and are conducting remediation activities under various consent decrees, orders, and agreements relating to soil, groundwater, sediment, or surface water contamination at certain sites of former or current operations. Under agreements related to certain sites in California, Washington and New York, the U.S. Government reimburses us an amount equal to a percentage, specific to each site, of expenditures for certain remediation activities in the U.S. Government’s capacity as a PRP under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). In addition to the proceedings and potential proceedings discussed above, California previously established a maximum level of the contaminant hexavalent chromium in drinking water of 10 parts per billion (ppb). This standard was successfully challenged by the California Manufacturers and Technology Association (CMTA) for failure to conduct the required economic feasibility analysis. In response to the court’s ruling, the State Water Resources Control Board (State Board), a branch of the California Environmental Protection Agency, withdrew the hexavalent chromium standard from the published regulations, leaving only the 50 ppb standard for total chromium. The State Board has indicated it will work to re-establish a hexavalent chromium standard. Further, the U.S. Environmental Protection Agency (U.S. EPA) is considering whether to regulate hexavalent chromium. California is also reevaluating its existing drinking water standard of 6 ppb for perchlorate, and the U.S. EPA is taking steps to regulate perchlorate in drinking water. If substantially lower standards are adopted, in either California or at the federal level for perchlorate or for hexavalent chromium, we expect a material increase in our estimates for environmental liabilities and the related assets for the portion of the increased costs that are probable of future recovery in the pricing of our products and services for the U.S. Government. The amount that would be allocable to our non-U.S. Government contracts or determined not to be recoverable under U.S. Government contracts would be expensed, which may have a material effect on our earnings in any particular interim reporting period. Letters of Credit, Surety Bonds and Third-Party Guarantees We have entered into standby letters of credit and surety bonds issued on our behalf by financial institutions, and we have directly issued guarantees to third parties primarily relating to advances received from customers and the guarantee of future performance on certain contracts. Letters of credit and surety bonds generally are available for draw down in the event we do not perform. In some cases, we may guarantee the contractual performance of third parties such as venture partners. We had total outstanding letters of credit, surety bonds, and third-party guarantees aggregating $3.6 billion at both September 29, 2019 and December 31, 2018 . Third-party guarantees do not include guarantees to subsidiaries and other consolidated entities. At September 29, 2019 and December 31, 2018 , third-party guarantees totaled approximately $1.1 billion and $850 million , of which approximately 71% and 65% related to guarantees of contractual performance of ventures to which we currently are or previously were a party. This amount represents our estimate of the maximum amount we would expect to incur upon the contractual non-performance of the venture, venture partners or divested businesses. Generally, we also have cross-indemnities in place that may enable us to recover amounts that may be paid on behalf of a venture partner. In determining our exposures, we evaluate the reputation, performance on contractual obligations, technical capabilities, and credit quality of our current and former venture partners and the transferee under novation agreements, all of which include a guarantee as required by the FAR. There were no material amounts recorded in our financial statements related to third-party guarantees or novation agreements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions): September 29, 2019 December 31, 2018 Total Level 1 Level 2 Total Level 1 Level 2 Assets Mutual funds $ 998 $ 998 $ — $ 978 $ 978 $ — U.S. Government securities 88 — 88 105 — 105 Other securities 285 135 150 144 28 116 Derivatives 30 — 30 22 — 22 Liabilities Derivatives 37 — 37 61 — 61 Assets measured at NAV (a) Other commingled funds 18 18 (a) Net Asset Value (NAV) is the total value of the fund divided by the number of the fund’s shares outstanding. Substantially all assets measured at fair value, other than derivatives, represent investments held in a separate trust to fund certain of our non-qualified deferred compensation plans and are recorded in other noncurrent assets on our consolidated balance sheets. The fair values of mutual funds and certain other securities are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. The fair values of U.S. Government and other securities are determined using pricing models that use observable inputs (e.g., interest rates and yield curves observable at commonly quoted intervals), bids provided by brokers or dealers or quoted prices of securities with similar characteristics. The fair values of derivative instruments, which consist of foreign currency forward contracts, including embedded derivatives, and interest rate swap contracts, are primarily determined based on the present value of future cash flows using model-derived valuations that use observable inputs such as interest rates, credit spreads and foreign currency exchange rates. The derivatives outstanding at both September 29, 2019 and December 31, 2018 consist of foreign currency forward contracts, interest rate swaps and foreign currency related contract embedded derivatives. We use derivative instruments principally to reduce our exposure to market risks from changes in foreign currency exchange rates and interest rates. We do not enter into or hold derivative instruments for speculative trading purposes. We transact business globally and are subject to risks associated with changing foreign currency exchange rates. We enter into foreign currency hedges such as forward and option contracts that change in value as foreign currency exchange rates change. These contracts hedge forecasted foreign currency transactions in order to mitigate fluctuations in our earnings and cash flows associated with changes in foreign currency exchange rates. We designate foreign currency hedges as cash flow hedges. We also are exposed to the impact of interest rate changes primarily through our borrowing activities. For fixed rate borrowings, we may use variable interest rate swaps, effectively converting fixed rate borrowings to variable rate borrowings, in order to reduce the amount of interest paid. These swaps are designated as fair value hedges. For variable rate borrowings, we may use fixed interest rate swaps, effectively converting variable rate borrowings to fixed rate borrowings, in order to mitigate the impact of interest rate changes on earnings. These swaps are designated as cash flow hedges. We also may enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting, which are intended to mitigate certain economic exposures. The aggregate notional amount of our outstanding interest rate swaps at September 29, 2019 and December 31, 2018 was $1.5 billion and $1.3 billion . The aggregate notional amount of our outstanding foreign currency hedges at September 29, 2019 and December 31, 2018 was $4.1 billion and $3.5 billion . The fair values of our outstanding interest rate swaps and foreign currency hedges at September 29, 2019 and December 31, 2018 were not significant. Derivative instruments did not have a material impact on net earnings and comprehensive income during the quarters and nine months ended September 29, 2019 and September 30, 2018 . Substantially all of our derivatives are designated for hedge accounting. In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, receivables, accounts payable and debt and commercial paper. The carrying amounts for cash and cash equivalents, receivables and accounts payable approximated their fair values. The estimated fair value of our outstanding debt was $17.0 billion and the outstanding principal amount was $14.7 billion at September 29, 2019 , excluding unamortized discounts and issuance costs of $1.2 billion . The estimated fair value of our outstanding debt and commercial paper was $15.4 billion and the outstanding principal amount was $15.3 billion at December 31, 2018 , excluding unamortized discounts and issuance costs of $1.2 billion . The estimated fair values of our outstanding debt and commercial paper were determined based on observable inputs (Level 2). |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 29, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Repurchases of Common Stock During the nine months ended September 29, 2019 , we repurchased 2.2 million shares of our common stock for $718 million , some of which was settled subsequent to the end of the third quarter. The total remaining authorization for future common share repurchases under our share repurchase program was $3.3 billion as of September 29, 2019 including a $1.0 billion increase to the program authorized by our Board of Directors on September 26, 2019. As we repurchase our common shares, we reduce common stock for the $1 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. Due to the volume of repurchases and the prices at which these were made, additional paid-in capital was reduced to zero , with the remainder of the excess purchase price over par value of $350 million and $523 million recorded as a reduction to retained earnings during the nine months ended September 29, 2019 and September 30, 2018 . Dividends We declared cash dividends totaling $679 million ( $2.40 per share) and $2.6 billion ( $9.00 per share) during the quarter and nine months ended September 29, 2019 . During the quarter ended September 29, 2019 , we declared our fourth quarter dividend of $2.40 per share, an increase of $0.20 over the third quarter 2019 dividend, which was declared during the second quarter of 2019. Our fourth quarter dividend will be paid in December 2019. We declared cash dividends totaling $1.2 billion ( $4.20 per share) and $2.3 billion ( $8.20 per share) during the quarter and nine months ended September 30, 2018 . Dividends declared during the quarter ended September 30, 2018 include the declaration of our third and fourth quarter dividends of $569 million ( $2.00 per share) and $632 million ( $2.20 per share). Restricted Stock Unit Grants During the nine months ended September 29, 2019 , we granted certain employees approximately 0.6 million RSUs with a weighted average grant date fair value of $305.04 per RSU. The grant date fair value of these RSUs is equal to the closing market price of our common stock on the grant date less a discount to reflect the delay in payment of dividend-equivalent cash payments that are made only upon vesting, which is generally three years from the grant date. We recognize the grant date fair value of RSUs, less estimated forfeitures, as compensation expense ratably over the requisite service period, which is shorter than the vesting period if the employee is retirement eligible on the date of grant or will become retirement eligible before the end of the vesting period. Accumulated Other Comprehensive Loss Changes in the balance of AOCL, net of tax, consisted of the following (in millions): Postretirement Benefit Plans Other, net AOCL Balance at December 31, 2018 $ (14,254 ) $ (67 ) $ (14,321 ) Other comprehensive income before reclassifications — (30 ) (30 ) Amounts reclassified from AOCL Recognition of net actuarial losses (a) 861 — 861 Amortization of net prior service credits (a) (180 ) — (180 ) Other — 17 17 Total reclassified from AOCL 681 17 698 Total other comprehensive income 681 (13 ) 668 Balance at September 29, 2019 $ (13,573 ) $ (80 ) $ (13,653 ) Balance at December 31, 2017 $ (12,559 ) $ 20 $ (12,539 ) Other comprehensive loss before reclassifications — (53 ) (53 ) Amounts reclassified from AOCL Recognition of net actuarial losses (a) 1,092 — 1,092 Amortization of net prior service credits (a) (192 ) — (192 ) Other — 23 23 Total reclassified from AOCL 900 23 923 Total other comprehensive income (loss) 900 (30 ) 870 Reclassification of income tax effects from tax reform (b) (2,396 ) (12 ) (2,408 ) Balance at September 30, 2018 $ (14,055 ) $ (22 ) $ (14,077 ) (a) Reclassifications from AOCL related to our postretirement benefit plans were recorded as a component of net periodic benefit cost for each period presented (see “ Note 7 – Postretirement Benefit Plans ”). These amounts include $227 million and $300 million , net of tax, for the quarters ended September 29, 2019 and September 30, 2018 , which are comprised of the recognition of net actuarial losses of $287 million and $364 million for the quarters ended September 29, 2019 and September 30, 2018 and the amortization of net prior service credits of $(60) million and $(64) million for the quarters ended September 29, 2019 and September 30, 2018 . (b) Upon adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) |
OTHER
OTHER | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
OTHER | OTHER Changes in Estimates Significant estimates and assumptions are made in estimating contract sales and costs, including the profit booking rate. At the outset of a long-term contract, we identify and monitor risks to the achievement of the technical, schedule and cost aspects of the contract, as well as variable consideration, and assess the effects of those risks on our estimates of sales and total costs to complete the contract. The estimates consider the technical requirements (e.g., a newly-developed product versus a mature product), the schedule and associated tasks (e.g., the number and type of milestone events) and costs (e.g., material, labor, subcontractor, overhead, general and administrative and the estimated costs to fulfill our industrial cooperation agreements, sometimes referred to as offset or localization agreements, required under certain contracts with international customers). The initial profit booking rate of each contract considers risks surrounding the ability to achieve the technical requirements, schedule and costs in the initial estimated total costs to complete the contract. Profit booking rates may increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule and cost aspects of the contract, which decreases the estimated total costs to complete the contract or may increase the variable consideration we expect to receive on the contract. Conversely, our profit booking rates may decrease if the estimated total costs to complete the contract increase or our estimates of variable consideration we expect to receive decrease. All of the estimates are subject to change during the performance of the contract and may affect the profit booking rate. When estimates of total costs to be incurred on a contract exceed total estimates of the transaction price, a provision for the entire loss is determined at the contract level and is recorded in the period in which the loss is determined. Comparability of our segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on our contracts for which we recognize revenue over time using the percentage-of-completion cost-to-cost method to measure progress towards completion. Increases in the profit booking rates, typically referred to as risk retirements, usually relate to revisions in the estimated total costs to fulfill the performance obligations that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to fulfill the performance obligations and a reduction in the profit booking rate. Increases or decreases in profit booking rates are recognized in the current period and reflect the inception-to-date effect of such changes. Segment operating profit and margin may also be impacted favorably or unfavorably by other items, which may or may not impact sales. Favorable items may include the positive resolution of contractual matters, cost recoveries on severance and restructuring charges, insurance recoveries and gains on sales of assets. Unfavorable items may include the adverse resolution of contractual matters; restructuring charges, except for significant severance actions, which are excluded from segment operating results; reserves for disputes; certain asset impairments; and losses on sales of certain assets. Our consolidated net adjustments not related to volume, including net profit booking rate adjustments and other matters, increased segment operating profit by approximately $480 million and $1.5 billion during the quarter and nine months ended September 29, 2019 and $545 million and $1.4 billion during the quarter and nine months ended September 30, 2018 . These adjustments increased net earnings by approximately $379 million ( $1.33 per share) and $1.2 billion ( $4.07 per share) during the quarter and nine months ended September 29, 2019 and $431 million ( $1.50 per share) and $1.1 billion ( $3.93 per share) during the quarter and nine months ended September 30, 2018 . We recognized net sales from performance obligations satisfied in prior periods of approximately $495 million and $1.7 billion during the quarter and nine months ended September 29, 2019 and $595 million and $1.6 billion during the quarter and nine months ended September 30, 2018 , which primarily relate to changes in profit booking rates that impacted revenue. As previously disclosed, we are responsible for a program to design, develop and construct a ground-based radar at our RMS business segment. The program has experienced performance issues for which we have periodically accrued reserves. As of September 29, 2019 , cumulative losses remained at approximately $195 million on this program. We may continue to experience issues related to customer requirements and our performance under this contract and have to record additional charges. However, based on the losses previously recorded and our current estimate of the sales and costs to complete the program, at this time we do not anticipate that additional losses, if any, would be material to our operating results or financial condition. As previously disclosed, we have two commercial satellite programs, for the delivery of three satellites in total, at our Space business segment for which we have experienced performance issues related to the development and integration of a modernized LM 2100 satellite platform. During 2019, we launched two satellites from one of the programs, and these satellites have now been handed over to the customer. Accordingly, the risk related to these satellites has decreased significantly and is primarily related to post-launch warranty and support. Based on reserves already accrued, at this time we do not anticipate that additional charges, if any, related to this program would be material. The third satellite, which relates to the second program, remains developmental. As of September 29, 2019, cumulative losses for these two programs remained at approximately $410 million . While these losses reflect our estimated total losses, we will continue to incur unrecoverable general and administrative costs each period until we complete the contract for the third satellite. We also may experience further challenges in the delivery and integration of new satellite technology, anomalies discovered during system testing requiring repair or rework, further schedule delays, and penalties that could require us to record additional loss reserves, which may be material to our operating results. We are late to the contract delivery schedule for the third satellite. If we are not able to deliver the third satellite by the contract termination date, the customer could seek to exercise a termination right under the contract, in which case we would have to refund the payments we have received and pay certain penalties. However, we believe that it is not probable that the customer will seek to exercise any termination rights. As previously disclosed, we are responsible for designing, developing and installing an upgraded turret for the Warrior Capability Sustainment Program at our MFC business segment. As of September 29, 2019 , cumulative losses remained at approximately $140 million . We may continue to experience issues related to customer requirements and our performance under this contract and have to record additional reserves. However, based on the losses already recorded and our current estimate of the sales and costs to complete the program, at this time we do not anticipate that additional losses, if any, would be material to our operating results or financial condition. Backlog Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not yet transferred to the customer. For our cost-reimbursable and fixed-priced-incentive contracts, the estimated consideration we expect to receive pursuant to the terms of the contract may exceed the contractual award amount. The estimated consideration is determined at the outset of the contract and is continuously reviewed throughout the contract period. In determining the estimated consideration, we consider the risks related to the technical, schedule and cost impacts to complete the contract and an estimate of any variable consideration. Periodically, we review these risks and may increase or decrease backlog accordingly. As the risks on such contracts are successfully retired, the estimated consideration from customers may be reduced, resulting in a reduction of backlog without a corresponding recognition of sales. As of September 29, 2019 , our ending backlog was $137.4 billion . We expect to recognize approximately 38% of our backlog over the next 12 months and approximately 63% over the next 24 months as revenue, with the remainder recognized thereafter. Severance and Restructuring Charges During the second quarter of 2018, we recorded charges totaling $96 million ( $76 million , or $0.26 per share, after tax) related to certain severance and restructuring actions at our RMS business segment. As of September 29, 2019 , we have paid approximately $65 million in severance payments associated with these actions. In addition, we have recovered a significant portion of these payments through the pricing of our products and services to the U.S. Government and other customers, which are included in RMS’ operating results. Income Taxes Our effective income tax rates were 9.7% and 12.5% for the quarter and nine months ended September 29, 2019 , and 6.5% and 12.9% for the quarter and nine months ended September 30, 2018 . The rate for the quarter ended September 29, 2019 benefited from $62 million , or $0.22 per share, of additional tax deductions for the prior year, primarily attributable to foreign derived intangible income treatment based on proposed tax regulations released on March 4, 2019, and our change in tax accounting method reflecting a 2012 Court of Federal Claims decision, which held that the tax basis in certain assets should be increased and realized upon the assets’ disposition. The rate for the nine months ended September 29, 2019 benefited from $127 million , or $0.45 per share, of additional tax deductions for the prior year, of which approximately $65 million , or $0.23 per share, was recorded during the first quarter of 2019 based on proposed tax regulations released on March 4, 2019 which clarified foreign military sales qualify for foreign derived intangible income treatment. The rates for the quarter and nine months ended September 30, 2018 benefited from $148 million , or $0.52 per share, and $152 million , or $0.53 per share, of additional tax deductions for the prior year, primarily attributable to true-ups to the net one-time charges related to the Tax Cuts and Jobs Act enacted on December 22, 2017 and our change in tax accounting method reflecting the 2012 Court of Federal Claims decision. The rates for all periods benefited from tax deductions for dividends paid to our defined contribution plans with an employee stock ownership plan feature, tax deductions for foreign derived intangible income, tax deductions for employee equity awards, and the research and development tax credit. Sale of Customer Receivables On occasion, our customers may seek deferred payment terms to purchase our products. In connection with these transactions, we may, at our customer’s request, enter into arrangements for the non-recourse sale of customer receivables to unrelated third–party financial institutions. For accounting purposes, these transactions are not discounted and are treated as a sale of receivables as we have no continuing involvement. The sale proceeds from the financial institutions are reflected in our operating cash flows on the statement of cash flows. We sold customer receivables of $80 million and $280 million during the quarter and nine months ended September 29, 2019 and $41 million and $268 million during the quarter and nine months ended September 30, 2018 . There were no gains or losses related to sales of these receivables. Revolving Credit Facility Extension In August 2019, our $2.5 billion revolving credit facility (the 5 -year Facility) was amended to extend its expiration date by one year from August 24, 2023 to August 24, 2024. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Effective January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) , as amended, which requires lessees to recognize a ROU asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements, among other items. We adopted ASU 2016-02 using the optional transition method whereby we applied the new lease requirements under ASU 2016-02 through a cumulative-effect adjustment, which after completing our implementation analysis, resulted in no adjustment to our January 1, 2019 beginning retained earnings balance. On January 1, 2019, we recognized approximately $1.0 billion of ROU operating lease assets and approximately $1.1 billion of operating lease liabilities, including noncurrent operating lease liabilities of approximately $830 million , as a result of adopting this standard. The difference between ROU operating lease assets and operating lease liabilities was primarily due to previously accrued rent expense relating to periods prior to January 1, 2019. As part of our adoption, we elected the package of practical expedients, which among other things, permits the carry forward of historical lease classifications. We did not elect to use the practical expedient permitting the use of hindsight in determining the lease term and in assessing impairment of our ROU assets. The adoption of the standard did not have a material impact on our operating results or cash flows. Financial information for periods prior to January 1, 2019, has not been restated for the adoption of ASU 2016-02. Effective January 1, 2019, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815) , which eliminates the requirement to separately measure and report hedge ineffectiveness among other items. The adoption of this standard did not have a significant impact on our operating results, financial position or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements For Defined Benefit Plans . The new standard modifies the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The guidance is effective for our fiscal year ending December 31, 2020 and requires disclosure changes to be presented on a retrospective basis. As this standard relates only to financial disclosures, we do not expect an impact to our operating results, financial position or cash flows as a result of adopting this new standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
EARNINGS PER COMMON SHARE | We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per |
INVENTORY COSTS FOR CONTRACTS | Costs incurred to fulfill a customer contract in advance of the contract being awarded are included in inventories as work-in-process if we determine that those costs relate directly to a customer contract or to an anticipated customer contract that we can specifically identify and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of sales consistent with the transfer of products and services to the customer upon the receipt of the anticipated contract. All other pre-contract costs, including start-up costs, are expensed as incurred. |
LEASES | We evaluate whether our contractual arrangements contain leases at the inception of such arrangements. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Substantially all of our leases are long-term operating leases with fixed payment terms. We do not have significant financing leases. Our right-of-use (ROU) operating lease assets represent our right to use an underlying asset for the lease term, and our operating lease liabilities represent our obligation to make lease payments. ROU operating lease assets are recorded in other noncurrent assets in our consolidated balance sheet. Operating lease liabilities are recorded in other current liabilities or other noncurrent liabilities in our consolidated balance sheet based on their contractual due dates. Both the ROU operating lease asset and liability are recognized as of the lease commencement date at the present value of the lease payments over the lease term. Most of our leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate, which is determined using our credit rating and information available as of the commencement date. ROU operating lease assets include lease payments made at or before the lease commencement date, net of any lease incentives. Our operating lease agreements may include options to extend the lease term or terminate it early. We include options to extend or terminate leases in the ROU operating lease asset and liability when it is reasonably certain we will exercise these options. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales on our consolidated statement of earnings. We have operating lease arrangements with lease and non-lease components. The non-lease components in our arrangements are not significant when compared to the lease components. For all operating leases, we account for the lease and non-lease components as a single component. Additionally, for certain equipment leases, we apply a portfolio approach to recognize operating lease ROU assets and liabilities. We evaluate ROU assets for impairment consistent with our property, plant and equipment policy disclosure included in our 2018 Form 10‑K. |
RECENT ACCOUNTING PRONOUNCEMENTS | Effective January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) , as amended, which requires lessees to recognize a ROU asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements, among other items. We adopted ASU 2016-02 using the optional transition method whereby we applied the new lease requirements under ASU 2016-02 through a cumulative-effect adjustment, which after completing our implementation analysis, resulted in no adjustment to our January 1, 2019 beginning retained earnings balance. On January 1, 2019, we recognized approximately $1.0 billion of ROU operating lease assets and approximately $1.1 billion of operating lease liabilities, including noncurrent operating lease liabilities of approximately $830 million , as a result of adopting this standard. The difference between ROU operating lease assets and operating lease liabilities was primarily due to previously accrued rent expense relating to periods prior to January 1, 2019. As part of our adoption, we elected the package of practical expedients, which among other things, permits the carry forward of historical lease classifications. We did not elect to use the practical expedient permitting the use of hindsight in determining the lease term and in assessing impairment of our ROU assets. The adoption of the standard did not have a material impact on our operating results or cash flows. Financial information for periods prior to January 1, 2019, has not been restated for the adoption of ASU 2016-02. Effective January 1, 2019, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815) , which eliminates the requirement to separately measure and report hedge ineffectiveness among other items. The adoption of this standard did not have a significant impact on our operating results, financial position or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements For Defined Benefit Plans . The new standard modifies the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The guidance is effective for our fiscal year ending December 31, 2020 and requires disclosure changes to be presented on a retrospective basis. As this standard relates only to financial disclosures, we do not expect an impact to our operating results, financial position or cash flows as a result of adopting this new standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share | The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions): Quarters Ended Nine Months Ended September 29, September 30, September 29, September 30, Weighted average common shares outstanding for basic computations 282.0 284.3 282.2 284.9 Weighted average dilutive effect of equity awards 1.9 2.4 1.8 2.3 Weighted average common shares outstanding for diluted computations 283.9 286.7 284.0 287.2 |
INFORMATION ON BUSINESS SEGME_2
INFORMATION ON BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Summary Of Operating Results and Total Assets For Each Business Segment | Summary operating results for each of our business segments were as follows (in millions): Quarters Ended Nine Months Ended September 29, September 30, September 29, September 30, Net sales Aeronautics $ 6,178 $ 5,642 $ 17,312 $ 15,361 Missiles and Fire Control 2,601 2,273 7,362 6,035 Rotary and Mission Systems 3,709 3,848 11,239 10,637 Space 2,683 2,555 8,021 7,318 Total net sales $ 15,171 $ 14,318 $ 43,934 $ 39,351 Operating profit Aeronautics $ 665 $ 600 $ 1,842 $ 1,646 Missiles and Fire Control 349 332 1,093 872 Rotary and Mission Systems 342 361 1,068 1,013 Space 309 293 931 831 Total business segment operating profit 1,665 1,586 4,934 4,362 Unallocated items FAS/CAS operating adjustment (a) 513 451 1,537 1,353 Stock-based compensation (54 ) (50 ) (158 ) (148 ) Severance and restructuring charges (b) — — — (96 ) Other, net (19 ) (24 ) 83 12 Total unallocated items 440 377 1,462 1,121 Total consolidated operating profit $ 2,105 $ 1,963 $ 6,396 $ 5,483 Intersegment sales Aeronautics $ 58 $ 35 $ 147 $ 87 Missiles and Fire Control 107 122 372 330 Rotary and Mission Systems 530 544 1,648 1,509 Space 91 63 244 156 Total intersegment sales $ 786 $ 764 $ 2,411 $ 2,082 (a) The FAS/CAS operating adjustment represents the difference between the service cost component of financial accounting standards (FAS) pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS. (b) Unallocated items for the nine months ended September 30, 2018 include charges totaling $96 million ( $76 million , or $0.26 per share, after tax) related to certain severance and restructuring actions at our RMS business segment. See “ Note 11 – Other ” (under the caption “Severance and Restructuring Charges”) for more information. Our total net FAS/CAS pension adjustment for the quarters and nine months ended September 29, 2019 and September 30, 2018 , including the service and non-service cost components of FAS pension expense for our qualified defined benefit pension plans, were as follows (in millions): Quarters Ended Nine Months Ended September 29, September 30, September 29, September 30, Total FAS expense and CAS costs FAS pension expense $ (274 ) $ (356 ) $ (820 ) $ (1,069 ) Less: CAS pension cost 642 608 1,924 1,825 Net FAS/CAS pension adjustment $ 368 $ 252 $ 1,104 $ 756 Service and non-service cost reconciliation FAS pension service cost $ (129 ) $ (157 ) $ (387 ) $ (472 ) Less: CAS pension cost 642 608 1,924 1,825 FAS/CAS operating adjustment 513 451 1,537 1,353 Non-operating FAS pension cost (a) (145 ) (199 ) (433 ) (597 ) Net FAS/CAS pension adjustment $ 368 $ 252 $ 1,104 $ 756 (a) The non-service cost components of net periodic benefit cost relate only to our qualified defined benefit pension plans. In addition to the non-service cost components in the table above, we incurred similar costs for our other postretirement benefit plans of $30 million and $87 million for the quarter and nine months ended September 29, 2019 and $16 million and $49 million for the quarter and nine months ended September 30, 2018 . Net sales by products and services, contract type, customer, and geographic region were as follows (in millions): Quarter Ended September 29, 2019 Aeronautics MFC RMS Space Total Net sales Products $ 5,340 $ 2,172 $ 2,982 $ 2,234 $ 12,728 Services 838 429 727 449 2,443 Total net sales $ 6,178 $ 2,601 $ 3,709 $ 2,683 $ 15,171 Net sales by contract type Fixed-price $ 4,567 $ 1,681 $ 2,536 $ 527 $ 9,311 Cost-reimbursable 1,611 920 1,173 2,156 5,860 Total net sales $ 6,178 $ 2,601 $ 3,709 $ 2,683 $ 15,171 Net sales by customer U.S. Government $ 3,509 $ 1,995 $ 2,763 $ 2,332 $ 10,599 International (a) 2,631 572 804 343 4,350 U.S. commercial and other 38 34 142 8 222 Total net sales $ 6,178 $ 2,601 $ 3,709 $ 2,683 $ 15,171 Net sales by geographic region United States $ 3,547 $ 2,029 $ 2,905 $ 2,340 $ 10,821 Asia Pacific 1,046 107 317 17 1,487 Europe 1,106 138 168 326 1,738 Middle East 455 318 206 — 979 Other 24 9 113 — 146 Total net sales $ 6,178 $ 2,601 $ 3,709 $ 2,683 $ 15,171 Nine Months Ended September 29, 2019 Aeronautics MFC RMS Space Total Net sales Products $ 14,876 $ 6,051 $ 9,064 $ 6,710 $ 36,701 Services 2,436 1,311 2,175 1,311 7,233 Total net sales $ 17,312 $ 7,362 $ 11,239 $ 8,021 $ 43,934 Net sales by contract type Fixed-price $ 12,777 $ 4,660 $ 7,681 $ 1,585 $ 26,703 Cost-reimbursable 4,535 2,702 3,558 6,436 17,231 Total net sales $ 17,312 $ 7,362 $ 11,239 $ 8,021 $ 43,934 Net sales by customer U.S. Government $ 10,420 $ 5,528 $ 8,113 $ 6,900 $ 30,961 International (a) 6,736 1,717 2,773 1,098 12,324 U.S. commercial and other 156 117 353 23 649 Total net sales $ 17,312 $ 7,362 $ 11,239 $ 8,021 $ 43,934 Net sales by geographic region United States $ 10,576 $ 5,645 $ 8,466 $ 6,923 $ 31,610 Asia Pacific 2,736 315 1,065 48 4,164 Europe 2,751 363 509 1,035 4,658 Middle East 1,127 1,003 738 15 2,883 Other 122 36 461 — 619 Total net sales $ 17,312 $ 7,362 $ 11,239 $ 8,021 $ 43,934 (a) International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers. Quarter Ended September 30, 2018 Aeronautics MFC RMS Space Total Net sales Products $ 4,799 $ 1,873 $ 3,132 $ 2,114 $ 11,918 Services 843 400 716 441 2,400 Total net sales $ 5,642 $ 2,273 $ 3,848 $ 2,555 $ 14,318 Net sales by contract type Fixed-price $ 4,163 $ 1,536 $ 2,710 $ 534 $ 8,943 Cost-reimbursable 1,479 737 1,138 2,021 5,375 Total net sales $ 5,642 $ 2,273 $ 3,848 $ 2,555 $ 14,318 Net sales by customer U.S. Government $ 3,700 $ 1,625 $ 2,765 $ 2,174 $ 10,264 International (a) 1,909 600 959 362 3,830 U.S. commercial and other 33 48 124 19 224 Total net sales $ 5,642 $ 2,273 $ 3,848 $ 2,555 $ 14,318 Net sales by geographic region United States $ 3,733 $ 1,673 $ 2,889 $ 2,193 $ 10,488 Asia Pacific 854 126 377 8 1,365 Europe 691 112 213 324 1,340 Middle East 326 347 202 30 905 Other 38 15 167 — 220 Total net sales $ 5,642 $ 2,273 $ 3,848 $ 2,555 $ 14,318 Nine Months Ended September 30, 2018 Aeronautics MFC RMS Space Total Net sales Products $ 13,080 $ 4,935 $ 8,753 $ 6,062 $ 32,830 Services 2,281 1,100 1,884 1,256 6,521 Total net sales $ 15,361 $ 6,035 $ 10,637 $ 7,318 $ 39,351 Net sales by contract type Fixed-price $ 11,284 $ 4,043 $ 7,368 $ 1,394 $ 24,089 Cost-reimbursable 4,077 1,992 3,269 5,924 15,262 Total net sales $ 15,361 $ 6,035 $ 10,637 $ 7,318 $ 39,351 Net sales by customer U.S. Government $ 9,909 $ 4,215 $ 7,729 $ 6,114 $ 27,967 International (a) 5,321 1,696 2,562 1,162 10,741 U.S. commercial and other 131 124 346 42 643 Total net sales $ 15,361 $ 6,035 $ 10,637 $ 7,318 $ 39,351 Net sales by geographic region United States $ 10,040 $ 4,339 $ 8,075 $ 6,156 $ 28,610 Asia Pacific 2,394 349 1,002 62 3,807 Europe 1,877 227 592 1,082 3,778 Middle East 903 1,091 516 18 2,528 Other 147 29 452 — 628 Total net sales $ 15,361 $ 6,035 $ 10,637 $ 7,318 $ 39,351 (a) International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers. Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, multi-variant, stealth fighter aircraft. Net sales for the F-35 program represented approximately 28% and 27% of our total consolidated net sales for the quarter and nine months ended September 29, 2019 and 27% and 26% of our total consolidated net sales for the quarter and nine months ended September 30, 2018 . Total assets for each of our business segments were as follows (in millions): September 29, December 31, Assets Aeronautics $ 10,441 $ 8,435 Missiles and Fire Control 5,276 5,017 Rotary and Mission Systems 18,843 18,333 Space 5,821 5,445 Total business segment assets 40,381 37,230 Corporate assets (a) 8,894 7,646 Total assets $ 49,275 $ 44,876 (a) Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans. |
CONTRACT ASSETS AND LIABILITI_2
CONTRACT ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Assets and Liabilities | Contract assets and contract liabilities were as follows (in millions): September 29, December 31, Contract assets $ 11,004 $ 9,472 Contract liabilities 6,777 6,491 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories consisted of the following (in millions): September 29, December 31, Materials, spares and supplies $ 460 $ 446 Work-in-process 2,696 2,161 Finished goods 318 390 Total inventories $ 3,474 $ 2,997 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Future Minimum Lease Commitments | Future minimum lease commitments at September 29, 2019 were as follows (in millions): Total Remainder of 2019 2020 2021 2022 2023 Thereafter Operating leases $ 1,248 $ 134 $ 210 $ 179 $ 143 $ 107 $ 475 Less: imputed interest $ 167 Total $ 1,081 |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Pretax Net Periodic Benefit Cost | Our pretax net periodic benefit cost related to our qualified defined benefit pension plans and retiree medical and life insurance plans consisted of the following (in millions): Quarters Ended Nine Months Ended September 29, September 30, September 29, September 30, Qualified defined benefit pension plans Service cost $ 129 $ 157 $ 387 $ 472 Interest cost 452 435 1,355 1,305 Expected return on plan assets (575 ) (599 ) (1,725 ) (1,796 ) Recognized net actuarial losses 351 444 1,053 1,332 Amortization of prior service credits (83 ) (81 ) (250 ) (244 ) Total net periodic benefit cost $ 274 $ 356 $ 820 $ 1,069 Retiree medical and life insurance plans Service cost $ 4 $ 4 $ 11 $ 13 Interest cost 25 23 73 69 Expected return on plan assets (28 ) (34 ) (83 ) (101 ) Recognized net actuarial losses 1 2 2 4 Amortization of prior service costs 10 4 31 11 Total net periodic benefit cost (credit) $ 12 $ (1 ) $ 34 $ (4 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured and Recorded at Fair Value | Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions): September 29, 2019 December 31, 2018 Total Level 1 Level 2 Total Level 1 Level 2 Assets Mutual funds $ 998 $ 998 $ — $ 978 $ 978 $ — U.S. Government securities 88 — 88 105 — 105 Other securities 285 135 150 144 28 116 Derivatives 30 — 30 22 — 22 Liabilities Derivatives 37 — 37 61 — 61 Assets measured at NAV (a) Other commingled funds 18 18 (a) Net Asset Value (NAV) is the total value of the fund divided by the number of the fund’s shares outstanding. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Equity [Abstract] | |
Schedule of Changes in the Balance of AOCL, Net of Tax | Changes in the balance of AOCL, net of tax, consisted of the following (in millions): Postretirement Benefit Plans Other, net AOCL Balance at December 31, 2018 $ (14,254 ) $ (67 ) $ (14,321 ) Other comprehensive income before reclassifications — (30 ) (30 ) Amounts reclassified from AOCL Recognition of net actuarial losses (a) 861 — 861 Amortization of net prior service credits (a) (180 ) — (180 ) Other — 17 17 Total reclassified from AOCL 681 17 698 Total other comprehensive income 681 (13 ) 668 Balance at September 29, 2019 $ (13,573 ) $ (80 ) $ (13,653 ) Balance at December 31, 2017 $ (12,559 ) $ 20 $ (12,539 ) Other comprehensive loss before reclassifications — (53 ) (53 ) Amounts reclassified from AOCL Recognition of net actuarial losses (a) 1,092 — 1,092 Amortization of net prior service credits (a) (192 ) — (192 ) Other — 23 23 Total reclassified from AOCL 900 23 923 Total other comprehensive income (loss) 900 (30 ) 870 Reclassification of income tax effects from tax reform (b) (2,396 ) (12 ) (2,408 ) Balance at September 30, 2018 $ (14,055 ) $ (22 ) $ (14,077 ) (a) Reclassifications from AOCL related to our postretirement benefit plans were recorded as a component of net periodic benefit cost for each period presented (see “ Note 7 – Postretirement Benefit Plans ”). These amounts include $227 million and $300 million , net of tax, for the quarters ended September 29, 2019 and September 30, 2018 , which are comprised of the recognition of net actuarial losses of $287 million and $364 million for the quarters ended September 29, 2019 and September 30, 2018 and the amortization of net prior service credits of $(60) million and $(64) million for the quarters ended September 29, 2019 and September 30, 2018 . (b) Upon adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) during the first quarter of 2018, we reclassified the impact of the income tax effects related to the Tax Cuts and Jobs Act (the Tax Act) from AOCL to retained earnings by the same amount with zero impact to total equity. |
EARNINGS PER COMMON SHARE - Sch
EARNINGS PER COMMON SHARE - Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding for basic computations (in shares) | 282 | 284.3 | 282.2 | 284.9 |
Weighted average dilutive effect of equity awards (in shares) | 1.9 | 2.4 | 1.8 | 2.3 |
Weighted average common shares outstanding for diluted computations (in shares) | 283.9 | 286.7 | 284 | 287.2 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Significant anti-dilutive equity awards (in shares) | 0 | 0 | 0 | 0 |
INFORMATION ON BUSINESS SEGME_3
INFORMATION ON BUSINESS SEGMENTS - Narrative (Details) - segment | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Number of business segments | 4 | |||
Product Concentration Risk | Sales Revenue, Net | F-35 program | Aeronautics | ||||
Segment Reporting Information [Line Items] | ||||
Net sales for the F-35 program representing total consolidated net sales (as a percent) | 28.00% | 27.00% | 27.00% | 26.00% |
INFORMATION ON BUSINESS SEGME_4
INFORMATION ON BUSINESS SEGMENTS - Summary of Operating Results For Each Business Segment (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Jun. 24, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Net sales | |||||
Total net sales | $ 15,171 | $ 14,318 | $ 43,934 | $ 39,351 | |
Operating profit | |||||
Total operating profit | 2,105 | 1,963 | 6,396 | 5,483 | |
Unallocated items | |||||
Severance and restructuring charges | 0 | 0 | 0 | 96 | |
Aeronautics | |||||
Net sales | |||||
Total net sales | 6,178 | 5,642 | 17,312 | 15,361 | |
Missiles and Fire Control | |||||
Net sales | |||||
Total net sales | 2,601 | 2,273 | 7,362 | 6,035 | |
Rotary and Mission Systems | |||||
Net sales | |||||
Total net sales | 3,709 | 3,848 | 11,239 | 10,637 | |
Unallocated items | |||||
Severance and restructuring charges | $ 96 | ||||
Severance and restructuring charges, net of tax | $ 76 | ||||
Severance and restructuring charges (in dollars per share) | $ 0.26 | ||||
Space | |||||
Net sales | |||||
Total net sales | 2,683 | 2,555 | 8,021 | 7,318 | |
Business segments | |||||
Net sales | |||||
Total net sales | 15,171 | 14,318 | 43,934 | 39,351 | |
Operating profit | |||||
Total operating profit | 1,665 | 1,586 | 4,934 | 4,362 | |
Business segments | Aeronautics | |||||
Net sales | |||||
Total net sales | 6,178 | 5,642 | 17,312 | 15,361 | |
Operating profit | |||||
Total operating profit | 665 | 600 | 1,842 | 1,646 | |
Business segments | Missiles and Fire Control | |||||
Net sales | |||||
Total net sales | 2,601 | 2,273 | 7,362 | 6,035 | |
Operating profit | |||||
Total operating profit | 349 | 332 | 1,093 | 872 | |
Business segments | Rotary and Mission Systems | |||||
Net sales | |||||
Total net sales | 3,709 | 3,848 | 11,239 | 10,637 | |
Operating profit | |||||
Total operating profit | 342 | 361 | 1,068 | 1,013 | |
Business segments | Space | |||||
Net sales | |||||
Total net sales | 2,683 | 2,555 | 8,021 | 7,318 | |
Operating profit | |||||
Total operating profit | 309 | 293 | 931 | 831 | |
Segment reconciling items | |||||
Unallocated items | |||||
FAS/CAS operating adjustment | 513 | 451 | 1,537 | 1,353 | |
Stock-based compensation | (54) | (50) | (158) | (148) | |
Severance and restructuring charges | 0 | 0 | 0 | (96) | |
Other, net | (19) | (24) | 83 | 12 | |
Total unallocated items | 440 | 377 | 1,462 | 1,121 | |
Intersegment sales | |||||
Net sales | |||||
Total net sales | 786 | 764 | 2,411 | 2,082 | |
Intersegment sales | Aeronautics | |||||
Net sales | |||||
Total net sales | 58 | 35 | 147 | 87 | |
Intersegment sales | Missiles and Fire Control | |||||
Net sales | |||||
Total net sales | 107 | 122 | 372 | 330 | |
Intersegment sales | Rotary and Mission Systems | |||||
Net sales | |||||
Total net sales | 530 | 544 | 1,648 | 1,509 | |
Intersegment sales | Space | |||||
Net sales | |||||
Total net sales | $ 91 | $ 63 | $ 244 | $ 156 |
INFORMATION ON BUSINESS SEGME_5
INFORMATION ON BUSINESS SEGMENTS - FAS/CAS Pension Adjustment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Non-operating FAS pension cost | $ (145) | $ (199) | $ (433) | $ (597) |
Net FAS/CAS pension adjustment | 368 | 252 | 1,104 | 756 |
Segment reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Less: CAS pension cost | 642 | 608 | 1,924 | 1,825 |
FAS pension service cost | (129) | (157) | (387) | (472) |
FAS/CAS operating adjustment | 513 | 451 | 1,537 | 1,353 |
Qualified defined benefit pension plans | ||||
Segment Reporting Information [Line Items] | ||||
FAS pension expense/service cost | 274 | 356 | 820 | 1,069 |
FAS pension service cost | (129) | (157) | (387) | (472) |
Qualified defined benefit pension plans | Qualified Plan | ||||
Segment Reporting Information [Line Items] | ||||
FAS pension expense/service cost | (274) | (356) | (820) | (1,069) |
Non-operating FAS pension cost | $ (30) | $ (16) | $ (87) | $ (49) |
INFORMATION ON BUSINESS SEGME_6
INFORMATION ON BUSINESS SEGMENTS - Income Statement Information For Each Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Net sales | ||||
Net sales | $ 15,171 | $ 14,318 | $ 43,934 | $ 39,351 |
Aeronautics | ||||
Net sales | ||||
Net sales | 6,178 | 5,642 | 17,312 | 15,361 |
MFC | ||||
Net sales | ||||
Net sales | 2,601 | 2,273 | 7,362 | 6,035 |
RMS | ||||
Net sales | ||||
Net sales | 3,709 | 3,848 | 11,239 | 10,637 |
Space | ||||
Net sales | ||||
Net sales | 2,683 | 2,555 | 8,021 | 7,318 |
United States | ||||
Net sales | ||||
Net sales | 10,821 | 10,488 | 31,610 | 28,610 |
United States | Aeronautics | ||||
Net sales | ||||
Net sales | 3,547 | 3,733 | 10,576 | 10,040 |
United States | MFC | ||||
Net sales | ||||
Net sales | 2,029 | 1,673 | 5,645 | 4,339 |
United States | RMS | ||||
Net sales | ||||
Net sales | 2,905 | 2,889 | 8,466 | 8,075 |
United States | Space | ||||
Net sales | ||||
Net sales | 2,340 | 2,193 | 6,923 | 6,156 |
Asia Pacific | ||||
Net sales | ||||
Net sales | 1,487 | 1,365 | 4,164 | 3,807 |
Asia Pacific | Aeronautics | ||||
Net sales | ||||
Net sales | 1,046 | 854 | 2,736 | 2,394 |
Asia Pacific | MFC | ||||
Net sales | ||||
Net sales | 107 | 126 | 315 | 349 |
Asia Pacific | RMS | ||||
Net sales | ||||
Net sales | 317 | 377 | 1,065 | 1,002 |
Asia Pacific | Space | ||||
Net sales | ||||
Net sales | 17 | 8 | 48 | 62 |
Europe | ||||
Net sales | ||||
Net sales | 1,738 | 1,340 | 4,658 | 3,778 |
Europe | Aeronautics | ||||
Net sales | ||||
Net sales | 1,106 | 691 | 2,751 | 1,877 |
Europe | MFC | ||||
Net sales | ||||
Net sales | 138 | 112 | 363 | 227 |
Europe | RMS | ||||
Net sales | ||||
Net sales | 168 | 213 | 509 | 592 |
Europe | Space | ||||
Net sales | ||||
Net sales | 326 | 324 | 1,035 | 1,082 |
Middle East | ||||
Net sales | ||||
Net sales | 979 | 905 | 2,883 | 2,528 |
Middle East | Aeronautics | ||||
Net sales | ||||
Net sales | 455 | 326 | 1,127 | 903 |
Middle East | MFC | ||||
Net sales | ||||
Net sales | 318 | 347 | 1,003 | 1,091 |
Middle East | RMS | ||||
Net sales | ||||
Net sales | 206 | 202 | 738 | 516 |
Middle East | Space | ||||
Net sales | ||||
Net sales | 0 | 30 | 15 | 18 |
Other | ||||
Net sales | ||||
Net sales | 146 | 220 | 619 | 628 |
Other | Aeronautics | ||||
Net sales | ||||
Net sales | 24 | 38 | 122 | 147 |
Other | MFC | ||||
Net sales | ||||
Net sales | 9 | 15 | 36 | 29 |
Other | RMS | ||||
Net sales | ||||
Net sales | 113 | 167 | 461 | 452 |
Other | Space | ||||
Net sales | ||||
Net sales | 0 | 0 | 0 | 0 |
U.S. Government | ||||
Net sales | ||||
Net sales | 10,599 | 10,264 | 30,961 | 27,967 |
U.S. Government | Aeronautics | ||||
Net sales | ||||
Net sales | 3,509 | 3,700 | 10,420 | 9,909 |
U.S. Government | MFC | ||||
Net sales | ||||
Net sales | 1,995 | 1,625 | 5,528 | 4,215 |
U.S. Government | RMS | ||||
Net sales | ||||
Net sales | 2,763 | 2,765 | 8,113 | 7,729 |
U.S. Government | Space | ||||
Net sales | ||||
Net sales | 2,332 | 2,174 | 6,900 | 6,114 |
International | ||||
Net sales | ||||
Net sales | 4,350 | 3,830 | 12,324 | 10,741 |
International | Aeronautics | ||||
Net sales | ||||
Net sales | 2,631 | 1,909 | 6,736 | 5,321 |
International | MFC | ||||
Net sales | ||||
Net sales | 572 | 600 | 1,717 | 1,696 |
International | RMS | ||||
Net sales | ||||
Net sales | 804 | 959 | 2,773 | 2,562 |
International | Space | ||||
Net sales | ||||
Net sales | 343 | 362 | 1,098 | 1,162 |
U.S. commercial and other | ||||
Net sales | ||||
Net sales | 222 | 224 | 649 | 643 |
U.S. commercial and other | Aeronautics | ||||
Net sales | ||||
Net sales | 38 | 33 | 156 | 131 |
U.S. commercial and other | MFC | ||||
Net sales | ||||
Net sales | 34 | 48 | 117 | 124 |
U.S. commercial and other | RMS | ||||
Net sales | ||||
Net sales | 142 | 124 | 353 | 346 |
U.S. commercial and other | Space | ||||
Net sales | ||||
Net sales | 8 | 19 | 23 | 42 |
Fixed-price | ||||
Net sales | ||||
Net sales | 9,311 | 8,943 | 26,703 | 24,089 |
Fixed-price | Aeronautics | ||||
Net sales | ||||
Net sales | 4,567 | 4,163 | 12,777 | 11,284 |
Fixed-price | MFC | ||||
Net sales | ||||
Net sales | 1,681 | 1,536 | 4,660 | 4,043 |
Fixed-price | RMS | ||||
Net sales | ||||
Net sales | 2,536 | 2,710 | 7,681 | 7,368 |
Fixed-price | Space | ||||
Net sales | ||||
Net sales | 527 | 534 | 1,585 | 1,394 |
Cost-reimbursable | ||||
Net sales | ||||
Net sales | 5,860 | 5,375 | 17,231 | 15,262 |
Cost-reimbursable | Aeronautics | ||||
Net sales | ||||
Net sales | 1,611 | 1,479 | 4,535 | 4,077 |
Cost-reimbursable | MFC | ||||
Net sales | ||||
Net sales | 920 | 737 | 2,702 | 1,992 |
Cost-reimbursable | RMS | ||||
Net sales | ||||
Net sales | 1,173 | 1,138 | 3,558 | 3,269 |
Cost-reimbursable | Space | ||||
Net sales | ||||
Net sales | 2,156 | 2,021 | 6,436 | 5,924 |
Products | ||||
Net sales | ||||
Net sales | 12,728 | 11,918 | 36,701 | 32,830 |
Products | Aeronautics | ||||
Net sales | ||||
Net sales | 5,340 | 4,799 | 14,876 | 13,080 |
Products | MFC | ||||
Net sales | ||||
Net sales | 2,172 | 1,873 | 6,051 | 4,935 |
Products | RMS | ||||
Net sales | ||||
Net sales | 2,982 | 3,132 | 9,064 | 8,753 |
Products | Space | ||||
Net sales | ||||
Net sales | 2,234 | 2,114 | 6,710 | 6,062 |
Services | ||||
Net sales | ||||
Net sales | 2,443 | 2,400 | 7,233 | 6,521 |
Services | Aeronautics | ||||
Net sales | ||||
Net sales | 838 | 843 | 2,436 | 2,281 |
Services | MFC | ||||
Net sales | ||||
Net sales | 429 | 400 | 1,311 | 1,100 |
Services | RMS | ||||
Net sales | ||||
Net sales | 727 | 716 | 2,175 | 1,884 |
Services | Space | ||||
Net sales | ||||
Net sales | $ 449 | $ 441 | $ 1,311 | $ 1,256 |
INFORMATION ON BUSINESS SEGME_7
INFORMATION ON BUSINESS SEGMENTS - Total Assets For Each Business Segment (Details) - USD ($) $ in Millions | Sep. 29, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 49,275 | $ 44,876 |
Business segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 40,381 | 37,230 |
Business segments | Aeronautics | ||
Segment Reporting Information [Line Items] | ||
Total assets | 10,441 | 8,435 |
Business segments | Missiles and Fire Control | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,276 | 5,017 |
Business segments | Rotary and Mission Systems | ||
Segment Reporting Information [Line Items] | ||
Total assets | 18,843 | 18,333 |
Business segments | Space | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,821 | 5,445 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 8,894 | $ 7,646 |
CONTRACT ASSETS AND LIABILITI_3
CONTRACT ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Sep. 29, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 11,004 | $ 9,472 |
Contract liabilities | $ 6,777 | $ 6,491 |
CONTRACT ASSETS AND LIABILITI_4
CONTRACT ASSETS AND LIABILITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Increase in contract assets | $ 1,532 | $ 1,777 | ||
Impairment loss | $ 0 | $ 0 | 0 | 0 |
Increase in contract liabilities | 286 | (539) | ||
Liability, revenue recognized | $ 688 | $ 711 | $ 3,600 | $ 3,400 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 29, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Materials, spares and supplies | $ 460 | $ 446 |
Work-in-process | 2,696 | 2,161 |
Finished goods | 318 | 390 |
Total inventories | 3,474 | 2,997 |
Capitalized contract cost | $ 585 | $ 443 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||||
Operating lease, right-of-use asset | $ 984 | $ 984 | ||
Operating lease, liability | 1,081 | 1,081 | ||
Operating lease, liability, noncurrent | $ 818 | 818 | ||
New ROU operating lease assets and liabilities entered into | $ 124 | |||
Weighted average remaining lease term | 8 years 7 months 6 days | 8 years 7 months 6 days | ||
Weighted average discount rate | 3.30% | 3.30% | ||
Operating lease cost | $ 59 | $ 63 | $ 179 | $ 183 |
Cash payments | $ 169 |
LEASES - Future Minimum Lease C
LEASES - Future Minimum Lease Commitments (Details) $ in Millions | Sep. 29, 2019USD ($) |
Leases [Abstract] | |
Total | $ 1,248 |
Remainder of 2019 | 134 |
2020 | 210 |
2021 | 179 |
2022 | 143 |
2023 | 107 |
Thereafter | 475 |
Less: imputed interest | 167 |
Total, less imputed interest | $ 1,081 |
POSTRETIREMENT BENEFIT PLANS -
POSTRETIREMENT BENEFIT PLANS - Schedule of Pretax Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Qualified defined benefit pension plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 129 | $ 157 | $ 387 | $ 472 |
Interest cost | 452 | 435 | 1,355 | 1,305 |
Expected return on plan assets | (575) | (599) | (1,725) | (1,796) |
Recognized net actuarial losses | 351 | 444 | 1,053 | 1,332 |
Amortization of prior service credits | (83) | (81) | (250) | (244) |
Total net periodic benefit cost (credit) | 274 | 356 | 820 | 1,069 |
Retiree medical and life insurance plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 4 | 4 | 11 | 13 |
Interest cost | 25 | 23 | 73 | 69 |
Expected return on plan assets | (28) | (34) | (83) | (101) |
Recognized net actuarial losses | 1 | 2 | 2 | 4 |
Amortization of prior service credits | 10 | 4 | 31 | 11 |
Total net periodic benefit cost (credit) | $ 12 | $ (1) | $ 34 | $ (4) |
POSTRETIREMENT BENEFIT PLANS _2
POSTRETIREMENT BENEFIT PLANS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of previously deferred postretirement benefit plan amounts, before tax | $ 290,000,000 | $ 382,000,000 | $ 867,000,000 | $ 1,100,000,000 |
Recognition of previously deferred postretirement benefit plan amounts, net of tax | 227,000,000 | 300,000,000 | 681,000,000 | 900,000,000 |
Retiree medical and life insurance plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of previously deferred postretirement benefit plan amounts, before tax | 11,000,000 | 13,000,000 | 31,000,000 | 42,000,000 |
Qualified defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Material contributions to qualified defined benefit pension plans | $ 0 | $ 1,500,000,000 | $ 0 | $ 5,000,000,000 |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions | Aug. 16, 2016USD ($) | Dec. 31, 2014 | Sep. 29, 2019USD ($)subsidiary | Dec. 31, 2018USD ($) | Dec. 31, 2016 | May 31, 2017lawsuit | Apr. 24, 2009USD ($) |
Loss Contingencies [Line Items] | |||||||
Damages sought by plaintiff | $ 52 | ||||||
Liabilities recorded relative to environmental matters | 828 | $ 864 | |||||
Environmental costs eligible for future recovery | $ 719 | 750 | |||||
Period over which costs and recovery of costs is projected | 20 years | ||||||
Outstanding letters of credit, surety bonds, and third-party guarantees | $ 3,600 | 3,600 | |||||
Third-party guarantees | $ 1,100 | $ 850 | |||||
Guarantees of contractual performance of joint ventures (as a percent) | 71.00% | 65.00% | |||||
N.Y. Metropolitan Transportation Authority | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought by plaintiff | $ 190 | ||||||
Contract value | $ 323 | ||||||
Contract payments received to date | 241 | ||||||
Claims for monetary damages against the plaintiff | $ 95 | ||||||
Period of bench trial | 35 days | ||||||
Leidos Holdings, Inc. | |||||||
Loss Contingencies [Line Items] | |||||||
Reserve transferred | $ 38 | ||||||
Indemnification percent, up to maximum reserve | 100.00% | ||||||
Maximum reserve | $ 64 | ||||||
Indemnification percent in excess of maximum reserve | 50.00% | ||||||
Sikorsky Aircraft Corporation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of pending claims | lawsuit | 2 | ||||||
Number of entities involved in litigation | subsidiary | 2 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured and Recorded at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 29, 2019 | Dec. 31, 2018 |
Assets | ||
Derivatives | $ 30 | $ 22 |
Liabilities | ||
Derivatives | 37 | 61 |
Mutual funds | ||
Assets | ||
Fair Value of Investments | 998 | 978 |
U.S. Government securities | ||
Assets | ||
Fair Value of Investments | 88 | 105 |
Other securities | ||
Assets | ||
Fair Value of Investments | 285 | 144 |
Level 1 | ||
Assets | ||
Derivatives | 0 | 0 |
Liabilities | ||
Derivatives | 0 | 0 |
Level 1 | Mutual funds | ||
Assets | ||
Fair Value of Investments | 998 | 978 |
Level 1 | U.S. Government securities | ||
Assets | ||
Fair Value of Investments | 0 | 0 |
Level 1 | Other securities | ||
Assets | ||
Fair Value of Investments | 135 | 28 |
Level 2 | ||
Assets | ||
Derivatives | 30 | 22 |
Liabilities | ||
Derivatives | 37 | 61 |
Level 2 | Mutual funds | ||
Assets | ||
Fair Value of Investments | 0 | 0 |
Level 2 | U.S. Government securities | ||
Assets | ||
Fair Value of Investments | 88 | 105 |
Level 2 | Other securities | ||
Assets | ||
Fair Value of Investments | 150 | 116 |
NAV | Other commingled funds | ||
Liabilities | ||
Assets measured at NAV | $ 18 | $ 18 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Billions | Sep. 29, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding principal amount | $ 14.7 | $ 15.3 |
Unamortized discounts and issuance costs | 1.2 | 1.2 |
Interest rate swaps | Designated as hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate notional amount of outstanding interest rate swaps | 1.5 | 1.3 |
Foreign currency hedges | Designated as hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate notional amount of outstanding interest rate swaps | 4.1 | 3.5 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of outstanding debt | $ 17 | $ 15.4 |
STOCKHOLDERS' EQUITY - Repurcha
STOCKHOLDERS' EQUITY - Repurchases of Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | Sep. 26, 2019 | Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Shareholders Equity [Line Items] | ||||||
Common stock repurchased (in shares) | 2.2 | |||||
Reduction to stockholders' equity due to repurchases of common stock | $ 218,000,000 | $ 203,000,000 | $ 718,000,000 | $ 826,000,000 | ||
Total remaining authorization for future common share repurchases | $ 3,300,000,000 | $ 3,300,000,000 | ||||
Stock repurchase program, authorized amount, period increase (decrease) | $ 1,000,000,000 | |||||
Par value of shares repurchased (in dollars per share) | $ 1 | $ 1 | $ 1 | |||
Additional paid-in capital after reduction | $ 0 | $ 0 | $ 0 | |||
Reduction to retained earnings | ||||||
Shareholders Equity [Line Items] | ||||||
Reduction to stockholders' equity due to repurchases of common stock | $ 72,000,000 | $ 63,000,000 | $ 350,000,000 | $ 523,000,000 |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Dividends Payable [Line Items] | |||||
Cash dividends paid and unpaid, amount | $ 679 | $ 1,201 | $ 2,551 | $ 2,346 | |
Cash dividends declared (in dollars per share) | $ 2.40 | $ 4.20 | $ 9 | $ 8.20 | |
Cash dividends paid per common share (in dollars per share) | 2.20 | $ 2 | $ 6.60 | $ 6 | |
Dividends declared increase (in dollars per share) | $ 0.20 | ||||
Dividend Declared | |||||
Dividends Payable [Line Items] | |||||
Cash dividends paid and unpaid, amount | $ 632 | $ 569 | |||
Cash dividends declared (in dollars per share) | $ 2.20 | $ 2 |
STOCKHOLDERS' EQUITY - Restrict
STOCKHOLDERS' EQUITY - Restricted Stock Unit Grants (Narrative) (Details) - RSUs shares in Millions | 9 Months Ended |
Sep. 29, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs granted to certain employees (in shares) | shares | 0.6 |
Grant date fair value per RSU (in dollars per share) | $ / shares | $ 305.04 |
Award vesting period | 3 years |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Changes in the Balance of AOCL, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | $ 2,896 | $ 479 | $ 1,449 | $ (776) |
Other comprehensive income before reclassifications | (30) | (53) | ||
Total reclassified from AOCL | 698 | 923 | ||
Other comprehensive income, net of tax | 186 | 318 | 668 | 870 |
Ending Balance | 3,937 | 1,002 | 3,937 | 1,002 |
Recognition of previously deferred postretirement benefit plan amounts | 227 | 300 | 681 | 900 |
Postretirement Benefit Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | (14,254) | (12,559) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Total reclassified from AOCL | 681 | 900 | ||
Other comprehensive income, net of tax | 681 | 900 | ||
Reclassification of income tax effects from tax reform | (2,396) | |||
Ending Balance | (13,573) | (14,055) | (13,573) | (14,055) |
Other, net | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | (67) | 20 | ||
Other comprehensive income before reclassifications | (30) | (53) | ||
Total reclassified from AOCL | 17 | 23 | ||
Other comprehensive income, net of tax | (13) | (30) | ||
Reclassification of income tax effects from tax reform | (12) | |||
Ending Balance | (80) | (22) | (80) | (22) |
AOCL | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | (13,839) | (14,395) | (14,321) | (12,539) |
Other comprehensive income, net of tax | 186 | 318 | 668 | 870 |
Reclassification of income tax effects from tax reform | (2,408) | |||
Ending Balance | (13,653) | (14,077) | (13,653) | (14,077) |
Recognition of net actuarial losses | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Total reclassified from AOCL | 861 | 1,092 | ||
Recognition of previously deferred postretirement benefit plan amounts | 287 | 364 | ||
Amortization of net prior service credits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Total reclassified from AOCL | (180) | (192) | ||
Recognition of previously deferred postretirement benefit plan amounts | $ (60) | $ (64) | ||
Other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Total reclassified from AOCL | $ 17 | $ 23 |
OTHER - Changes in Estimates an
OTHER - Changes in Estimates and Backlog (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2019satellite | Feb. 28, 2019satellite | Sep. 29, 2019USD ($)program$ / shares | Sep. 30, 2018USD ($)$ / shares | Sep. 29, 2019USD ($)programsatellite$ / shares | Sep. 30, 2018USD ($)$ / shares | |
Change in Accounting Estimate [Line Items] | ||||||
Performance obligation satisfied in previous period | $ 495 | $ 595 | $ 1,700 | $ 1,600 | ||
Number of satellites launched or to be launched | satellite | 1 | 1 | 3 | |||
Ground Based Radar | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Cumulative losses on development | 195 | $ 195 | ||||
LM 2100 Project | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Cumulative losses on development | 410 | 410 | ||||
Warrior Capability Sustainment Program | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Cumulative losses on development | 140 | 140 | ||||
Contracts Accounted for under Percentage of Completion | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Increase in operating profit due to profit rate adjustments | 480 | 545 | 1,500 | 1,400 | ||
Increase in net earnings due to profit rate adjustments | $ 379 | $ 431 | $ 1,200 | $ 1,100 | ||
Increase in diluted earnings per common share due to profit rate adjustments (in dollars per share) | $ / shares | $ 1.33 | $ 1.50 | $ 4.07 | $ 3.93 | ||
Space | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Number of commercial satellite programs with performance issues | program | 2 | 2 |
OTHER - Backlog (Details)
OTHER - Backlog (Details) $ in Billions | Sep. 29, 2019USD ($) |
Accounting Policies [Abstract] | |
Remaining performance obligation | $ 137.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 38.00% |
Expected time of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 25.00% |
Expected time of satisfaction | 12 months |
OTHER - Severance and Restructu
OTHER - Severance and Restructuring Charges (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Jun. 24, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Severance and restructuring charges | $ 0 | $ 0 | $ 0 | $ 96 | |
Operations Consolidation | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments for restructuring | $ 65 | ||||
RMS | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and restructuring charges | $ 96 | ||||
Severance and restructuring charges, net of tax | $ 76 | ||||
Severance and restructuring charges (in dollars per share) | $ 0.26 |
OTHER - Income Taxes (Narrative
OTHER - Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | |||||
Effective income tax rate | 9.70% | 6.50% | 12.50% | 12.90% | |
Prior year income taxes benefit | $ 62 | $ 65 | $ 148 | $ 127 | $ 152 |
Prior year income taxes adjustment (in dollars per share) | $ 0.22 | $ 0.23 | $ (0.52) | $ 0.45 | $ (0.53) |
OTHER - Sale of Customer Receiv
OTHER - Sale of Customer Receivables (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Customer receivables sold | $ 80,000,000 | $ 41,000,000 | $ 280,000,000 | $ 268,000,000 |
Gains or losses related to sales of receivables | $ 0 | $ 0 |
OTHER - Revolving Credit Facili
OTHER - Revolving Credit Facility Extension (Details) - Five Year Revolving Credit Facility - Unsecured Debt | 1 Months Ended |
Aug. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Line of credit facility | $ 2,500,000,000 |
Line of credit facility, expiration period | 5 years |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | Sep. 29, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use asset | $ 984 | |
Operating lease, liability | 1,081 | |
Operating lease, liability, noncurrent | $ 818 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right-of-use asset | $ 1,000 | |
Operating lease, liability | 1,100 | |
Operating lease, liability, noncurrent | $ 830 |