Northrop Grumman (NOC) 10-Q 25 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2018	Jul. 20, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	NORTHROP GRUMMAN CORP /DE/
Entity Central Index Key	1,133,421
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Period End Date	Jun. 30, 2018
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		174,123,419

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Sales
Product	$ 4,790	$ 4,037	$ 9,079	$ 8,034
Service	2,329	2,436	4,775	4,849
Total sales	7,119	6,473	13,854	12,883
Operating costs and expenses
Product	3,694	3,037	6,959	6,020
Service	1,863	1,877	3,768	3,744
General and administrative expenses	739	686	1,450	1,384
Operating income	823	873	1,677	1,735
Other (expense) income
Interest expense	(144)	(76)	(287)	(151)
Net FAS (non-service) Pension Benefit (Expense)	125	(17)	245	(35)
Other, net	45	32	85	51
Earnings before income taxes	849	812	1,720	1,600
Federal and foreign income tax expense	160	257	292	395
Net earnings	$ 689	$ 555	$ 1,428	$ 1,205
Basic earnings per share
Basic earnings per share	$ 3.95	$ 3.18	$ 8.19	$ 6.90
Weighted-average common shares outstanding, in millions	174.5	174.5	174.4	174.7
Diluted earnings per share
Diluted earnings per share	$ 3.93	$ 3.16	$ 8.14	$ 6.85
Weighted-average diluted shares outstanding, in millions	175.4	175.5	175.4	175.8
Net earnings (from above)	$ 689	$ 555	$ 1,428	$ 1,205
Change in unamortized benefit plan costs, net of tax	86	102	172	201
Change in cumulative translation adjustment	0	(4)	(2)	0
Other, net	(3)	1	(4)	3
Other comprehensive income, net of tax	83	99	166	204
Comprehensive income	$ 772	$ 654	$ 1,594	$ 1,409

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 1,539	$ 11,225	$ 1,383	$ 2,541
Accounts receivable, net	1,815	1,054
Unbilled receivables, net	5,272	3,465
Inventoried costs, net	690	398
Prepaid expenses and other current assets	406	445
Total current assets	9,722	16,587
Property, plant and equipment, net of accumulated depreciation of $5,187 for 2018 and $5,066 for 2017	5,864	4,225
Goodwill	18,747	12,455
Intangible Assets, net	1,329	52
Deferred tax assets	179	447
Other non-current assets	1,537	1,362
Total assets	37,378	35,128
Liabilities
Trade accounts payable	1,824	1,661
Accrued employee compensation	1,451	1,382
Advance payments and amounts in excess of costs incurred	1,711	1,761
Other current liabilities	2,847	2,288
Total current liabilities	7,833	7,092
Long-term debt, net of current portion of $744 for 2018 and $867 for 2017	14,387	14,399
Pension and other post-retirement benefit plan liabilities	5,755	5,511
Other non-current liabilities	1,176	994
Total liabilities	29,151	27,996
Commitments and contingencies
Shareholders’ equity
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2018—174,254,250 and 2017—174,085,619	174	174
Paid-in capital	0	44
Retained earnings	13,669	11,632
Accumulated other comprehensive loss	(5,616)	(4,718)
Total shareholders’ equity	8,227	7,132	$ 6,036
Total liabilities and shareholders’ equity	$ 37,378	$ 35,128

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Financial Position (Unaudited) (Parentheticals) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accumulated depreciation	$ (5,187)	$ (5,066)
Long-term Debt, Current Maturities	$ 744	$ 867
Preferred Stock, par value	$ 1	$ 1
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	800,000,000	800,000,000
Common Stock, shares issued	174,254,250	174,085,619
Common Stock, shares outstanding	174,254,250	174,085,619

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities
Net earnings	$ 1,428	$ 1,205
Adjustments to reconcile to net cash (used in) provided by operating activities:
Depreciation and amortization	281	213
Stock-based compensation	53	42
Deferred income taxes	(17)	(39)
Changes in assets and liabilities:
Accounts receivable, net	(145)	(509)
Unbilled receivables, net	(570)	(793)
Inventoried costs, net	(73)	(54)
Prepaid expenses and other assets	57	(34)
Accounts payable and other liabilities	(422)	(172)
Income taxes payable	186	90
Retiree benefits	(127)	165
Other, net	(13)	(46)
Net cash provided by operating activities	638	68
Investing activities
Acquisition of Orbital ATK, net of cash acquired	(7,657)	0
Capital expenditures	(504)	(433)
Other, net	2	7
Net cash used in investing activities	(8,159)	(426)
Financing activities
Payments of long-term debt	(1,550)	0
Payments to credit facilities	(314)	0
Net borrowings on commercial paper	249	0
Common stock repurchases	(41)	(367)
Cash dividends paid	(407)	(341)
Payments of employee taxes withheld from share-based awards	(80)	(91)
Other, net	(22)	(1)
Net cash used in financing activities	(2,165)	(800)
Decrease in cash and cash equivalents	(9,686)	(1,158)
Cash and cash equivalents, beginning of year	11,225	2,541
Cash and cash equivalents, end of period	$ 1,539	$ 1,383

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common stock	Paid-in capital	Retained earnings	Accumulated other comprehensive loss
Beginning of year at Dec. 31, 2016		$ 175	$ 0	$ 10,734	$ (5,546)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact from adoption of ASU 2018-02 and ASU 2016-01				0	0
Common stock repurchased		(2)	0	(351)
Net earnings	$ 1,205			1,205
Dividends declared				(336)
Stock compensation		1	0	(48)
Other comprehensive income, net of tax	204				204
End of period at Jun. 30, 2017	$ 6,036	174	0	11,204	(5,342)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared per share	$ 1.90
Beginning of year at Dec. 31, 2017	$ 7,132	174	44	11,632	(4,718)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact from adoption of ASU 2018-02 and ASU 2016-01				1,064	(1,064)
Common stock repurchased		0	(34)	(15)
Net earnings	1,428			1,428
Dividends declared				(405)
Stock compensation		0	(10)	(35)
Other comprehensive income, net of tax	166				166
End of period at Jun. 30, 2018	$ 8,227	$ 174	$ 0	$ 13,669	$ (5,616)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared per share	$ 2.30

Basis of Presentation (Unaudite

Basis of Presentation (Unaudited)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Principles of Consolidation and Reporting These unaudited condensed consolidated financial statements (the “financial statements”) include the accounts of Northrop Grumman Corporation and its subsidiaries and joint ventures or other investments for which we consolidate the financial results (herein referred to as “Northrop Grumman,” the “company,” “we,” “us,” or “our”). Material intercompany accounts, transactions and profits are eliminated in consolidation. Investments in equity securities and joint ventures where the company has significant influence, but not control, are accounted for using the equity method. On June 6, 2018 (the “Merger date”), the company completed its previously announced acquisition of Orbital ATK, Inc. (“Orbital ATK”) (the “Merger”) . On the Merger date, Orbital ATK became a wholly-owned subsidiary of the company and its name was changed to Northrop Grumman Innovation Systems, Inc., which we established as a new, fourth business sector (“Innovation Systems”) . The operating results of Innovation Systems subsequent to the Merger date have been included in the company's consolidated results of operations. See N ote 2 to the financial statements for further information regarding the acquisition of Orbital ATK. The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP” or “FAS”) and in accordance with the rules of the Securities and Exchange Commission (SEC) for interim reporting. The financial statements include adjustments of a normal recurring nature considered necessary by management for a fair presentation of the company’s unaudited condensed consolidated financial position, results of operations and cash flows. The results reported in these financial statements are not necessarily indicative of results that may be expected for the entire year. These financial statements should be read in conjunction with the information contained in the company’s Annual Report on Form 10-K for the year ended December 31, 2017 (2017 Annual Report on Form 10-K). The quarterly information is labeled using a calendar convention; that is, first quarter is consistently labeled as ending on March 31, second quarter as ending on June 30 and third quarter as ending on September 30. It is the company’s long-standing practice to establish actual interim closing dates using a “fiscal” calendar, in which we close our books on a Friday near these quarter-end dates in order to normalize the potentially disruptive effects of quarterly closings on business processes. Similarly, Innovation Systems uses a “fiscal” calendar by closing its books on a Sunday near these quarter-end dates and will continue this practice until its business processes are aligned with the company’s. The Friday and Sunday closing dates noted herein are both labeled as June 30, consistent with our calendar convention described above. This practice is only used at interim periods within a reporting year. As previously announced, effective January 1, 2018, we adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers , and Accounting Standards Update (ASU) No. 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , using the full retrospective method. The adoption of these standards are reflected in the amounts and disclosures set forth in this Form 10-Q and the effect of these standards on the company’s unaudited condensed consolidated statements of earnings and comprehensive income for the three and six months ended June 30, 2017 and unaudited condensed consolidated statement of financial position as of December 31, 2017 is reflected in Note 12 . Accounting Estimates Preparation of the financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of sales and expenses during the reporting period. Estimates have been prepared using the most current and best available information; however, actual results could differ materially from those estimates. Revenue Recognition The majority of our sales are derived from long-term contracts with the U.S. government for the production of goods, the provision of services, or a combination of both. The company classifies sales as product or service based on the predominant attributes of each contract. Under ASC Topic 606, the company recognizes revenue for each separately identifiable performance obligation in a contract representing a promise to transfer a distinct good or service to a customer. In most cases, goods and services provided under the company’s contracts are accounted for as single performance obligations due to the complex and integrated nature of our products and services. These contracts generally require significant integration of a group of goods and/or services to deliver a combined output. In some contracts, the company provides multiple distinct goods or services to a customer, most commonly when a contract covers multiple phases of the product lifecycle (development, production, maintenance and/or support). In those cases, the company accounts for the distinct contract deliverables as separate performance obligations and allocates the transaction price to each performance obligation based on its relative standalone selling price, which is generally estimated using the cost plus a reasonable margin approach of ASC Topic 606. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not within the scope of ASC Topic 606. Likewise, our accounting for costs to obtain or fulfill a contract was not significantly impacted by the adoption of ASC Topic 606 as these costs are not material. A contract modification exists when the parties to a contract approve a change in the scope or price of a contract. Contracts are often modified for changes in contract specifications or requirements. Most of the company’s contract modifications are for goods or services that are not distinct in the context of the contract and are therefore accounted for as part of the original performance obligation through a cumulative estimate-at-completion (EAC) adjustment. The company recognizes revenue as control is transferred to the customer, either over time or at a point in time. In general, our U.S. government contracts contain termination for convenience clauses that generally entitle the customer to goods produced and/or in-process. Similarly, our non-U.S. government contracts generally contain contractual termination clauses or entitle the company to payment for work performed to date for goods and services that do not have an alternative use. As control is effectively transferred as we perform on our contracts and we are typically entitled to cost plus a reasonable margin for work in process if the contract is terminated for convenience, we generally recognize revenue over time on a cost-to-cost basis (cost incurred relative to total cost estimated at completion) as the company believes this represents the most appropriate measurement towards satisfaction of its performance obligations. Revenue for contracts in which the control of goods produced does not transfer until delivery to the customer is recognized at a point in time (i.e. typically upon delivery). Contract Estimates Use of the cost-to-cost method requires us to make reasonably dependable estimates regarding the revenue and cost associated with the design, manufacture and delivery of our products and services. The company estimates profit on these contracts as the difference between total estimated sales and total estimated cost at completion and recognizes that profit as costs are incurred. Significant judgment is used to estimate total revenue and cost at completion. Contract sales may include estimates of variable consideration, including cost or performance incentives (such as award and incentive fees), contract claims and requests for equitable adjustment (REAs). Variable consideration is included in total estimated sales to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. We estimate variable consideration at the most likely amount to which we expect to be entitled. We recognize changes in estimated contract sales or costs and the resulting changes in contract profit on a cumulative basis. Cumulative EAC adjustments represent the cumulative effect of the changes on current and prior periods; sales and operating margins in future periods are recognized as if the revised estimates had been used since contract inception. If it is determined that a loss is expected to result on an individual performance obligation, the entire amount of the estimable future loss, including an allocation of general and administrative (G&A) costs, is charged against income in the period the loss is identified. Each loss provision is first offset against costs included in unbilled accounts receivable or inventoried costs; remaining amounts are reflected in other current liabilities. Significant EAC adjustments on a single contract could have a material effect on the company’s financial statements. When such adjustments occur, we generally disclose the nature, underlying conditions and financial impact of the adjustments. During the three months ended June 30, 2018 , the company recognized $69 million of favorable EAC adjustments on multiple restricted programs at Aerospace Systems. The following table presents the effect of aggregate net EAC adjustments: Three Months Ended June 30 Six Months Ended June 30 $ in millions, except per share data 2018 2017 2018 2017 Operating Income $ 143 $ 102 $ 259 $ 243 Net Earnings (1) 113 66 205 158 Diluted earnings per share (1) 0.64 0.38 1.17 0.90 (1) Based on statutory tax rates in effect for each period presented. Revenue recognized from performance obligations satisfied in previous reporting periods was $156 million and $289 million for the three and six months ended June 30, 2018 , respectively, and $101 million and $246 million for the three and six months ended June 30, 2017 , respectively. Backlog Backlog represents the future sales we expect to recognize on firm orders received by the company and is equivalent to the company’s remaining performance obligations at the end of each period. It comprises both funded backlog (firm orders for which funding is authorized and appropriated) and unfunded backlog. Unexercised contract options and indefinite delivery indefinite quantity (IDIQ) contracts are not included in backlog until the time the option or IDIQ task order is exercised or awarded. Company backlog as of June 30, 2018 was $52.2 billion and includes $8.7 billion of Innovation Systems backlog (approximately $500 million of legacy Orbital ATK backlog related to contracts with legacy Northrop Grumman sectors was eliminated in connection with the Merger). We expect to recognize approximately 50 percent and 75 percent of our June 30, 2018 backlog as revenue over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter. Contract Assets and Liabilities For each of the company’s contracts, the timing of revenue recognition, customer billings, and cash collections results in a net contract asset or liability at the end of each reporting period. Fixed-price contracts are typically billed to the customer either using progress payments, whereby amounts are billed monthly as costs are incurred or work is completed, or performance based payments, which are based upon the achievement of specific, measurable events or accomplishments defined and valued at contract inception. Cost-type contracts are typically billed to the customer on a monthly or semi-monthly basis. Contract assets consist of unbilled receivables, primarily related to long-term contracts where revenue recognized under the cost-to-cost method exceeds amounts billed to customers. Unbilled receivables are classified as current assets and, in accordance with industry practice, include amounts that may be billed and collected beyond one year due to the long-cycle nature of many of our contracts. Accumulated contract costs in unbilled receivables include direct production costs, factory and engineering overhead, production tooling costs, and allowable G&A. Unbilled receivables also include certain estimates of variable consideration described above. These contract assets are not considered a significant financing component of the company’s contracts as the payment terms are intended to protect the customer in the event the company does not perform on its obligations under the contract. Contract liabilities include advance payments and billings in excess of revenue recognized. Certain customers make advance payments prior to the satisfaction of the company’s obligations on the contract. These amounts are recorded as contract liabilities until such obligations are satisfied, either over time as costs are incurred or at a point in time when deliveries are made. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. Net contract assets (liabilities) are as follows: $ in millions June 30, December 31, $ Change % Change Unbilled receivables, net $ 5,272 $ 3,465 $ 1,807 52 % Advance payments and amounts in excess of costs incurred (1,711 ) (1,761 ) 50 (3 )% Net contract assets (liabilities) $ 3,561 $ 1,704 $ 1,857 109 % The amount of revenue recognized for the three and six months ended June 30, 2018 that was included in the December 31, 2017 contract liability balance was $364 million and $1.1 billion , respectively. The amount of revenue recognized for the three and six months ended June 30, 2017 that was included in the December 31, 2016 contract liability balance was $272 million and $850 million , respectively. The change in the balances of the company’s contract assets and liabilities primarily results from timing differences between company performance and customer payments. The increase in net contract assets during the six months ended June 30, 2018 , is principally due to the addition of $1.1 billion of net contract assets from Innovation Systems and higher sales on restricted programs at Aerospace Systems. Disaggregation of Revenue See Note 11 for information regarding the company’s sales by customer type, contract type and geographic region for each of our segments. We believe those categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Other Purchased Intangible Assets Purchased intangible asset balances are included in the identifiable assets of their assigned business segment. Beginning in 2018, the company includes the amortization of purchased intangible assets in unallocated corporate expense within operating income as such amortization is no longer considered part of management’s evaluation of segment operating performance. The company’s customer-related intangible assets are amortized over their respective useful lives typically based on the pattern in which the future economic benefits of the intangible assets are expected to be consumed. Other purchased intangible assets are generally amortized on a straight-line basis over their estimated useful lives. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: $ in millions June 30, December 31, Unamortized benefit plan costs, net of tax benefit of $1,940 for 2018 and $3,056 for 2017 $ (5,474 ) $ (4,586 ) Cumulative translation adjustment (138 ) (136 ) Other, net (4 ) 4 Total accumulated other comprehensive loss $ (5,616 ) $ (4,718 ) Unamortized benefit plan costs as of June 30, 2018 reflect a reclassification from accumulated other comprehensive loss to retained earnings of $1.1 billion of stranded tax effects resulting from the Tax Cuts and Jobs Act (the “2017 Tax Act”). This reclassification resulted from the company’s early adoption of ASU 2018-02 on January 1, 2018. See “Accounting Standards Updates” below for more information. Unamortized benefit plan costs consist primarily of net after-tax actuarial losses totaling $5.6 billion and $4.7 billion as of June 30, 2018 and December 31, 2017 , respectively. Net actuarial gains or losses are redetermined annually or upon remeasurement events and principally arise from changes in the interest rate used to discount our benefit obligations and differences between expected and actual returns on plan assets. Reclassifications from accumulated other comprehensive loss to net earnings related to the amortization of benefit plan costs were $86 million and $172 million , net of taxes, for the three and six months ended June 30, 2018 , respectively, and were $100 million and $199 million , net of taxes, for the three and six months ended June 30, 2017 , respectively. The reclassifications represent the amortization of net actuarial losses and prior service credits, and are included in the computation of net periodic pension cost. See Note 9 for further information. Reclassifications from accumulated other comprehensive loss to net earnings relating to cumulative translation adjustments and effective cash flow hedges were not material for the three and six months ended June 30, 2018 and 2017 . Related Party Transactions The company had no material related party transactions in any period presented. Accounting Standards Updates On February 14, 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ASU 2018-02 allows companies to reclassify stranded tax effects resulting from the 2017 Tax Act from accumulated other comprehensive income to retained earnings. As described above, the company elected to early adopt ASU 2018-02 on January 1, 2018, which resulted in a reclassification of $1.1 billion of stranded tax effects, principally related to our unamortized benefit plan costs, from accumulated other comprehensive loss to retained earnings. This reclassification included $73 million of other income tax effects related to a reduction in the federal benefit associated with state taxes. Adoption of ASU 2018-02 did not have a material impact on the company’s results of operations and/or cash flows. On March 10, 2017, the FASB issued ASU No. 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 requires employers that sponsor defined benefit pension and/or other post-retirement benefit plans to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Employers are required to present the other components of net benefit costs in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component of net periodic pension cost is eligible for asset capitalization. We adopted ASU 2017-07 on January 1, 2018 using the retrospective method. See Note 12 for information regarding the effect of adopting ASU 2017-07 on our unaudited condensed consolidated statement of earnings and comprehensive income for the three and six months ended June 30, 2017. Adoption of ASU 2017-07 did not have a material impact on our consolidated statements of financial position and/or cash flows. On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU 2016-02 supersedes existing lease guidance, including ASC 840 - Leases . Among other things, ASU 2016-02 requires recognition of a right-of-use asset and liability for future lease payments for contracts that meet the definition of a lease and requires disclosure of certain information about leasing arrangements. ASU 2016-02 will be effective January 1, 2019, although early adoption is permitted, and may be adopted using a modified retrospective transition method that applies the new lease requirements at the beginning of the earliest period presented in the financial statements. The FASB has proposed a change that would allow a company to elect an optional transition method that applies the new lease requirements through a cumulative-effect adjustment in the period of adoption. We expect to adopt the standard on January 1, 2019 using the proposed optional transition method if finalized in its current form. As a result of the Merger, we are currently reevaluating the expected impact of ASU 2016-02 on the company’s consolidated financial position and financial statement disclosures. We do not expect ASU 2016-02 to have a material impact on our annual results of operations and/or cash flows. On January 5, 2016, the FASB issued ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 requires equity investments that are not accounted for under the equity method of accounting or that do not result in consolidation of the investee to be measured at fair value with changes recognized in net earnings. ASU 2016-01 also eliminates the available-for-sale classification for equity investments that recognized changes in fair value as a component of other comprehensive income. We adopted ASU 2016-01 on January 1, 2018 using the modified retrospective method, which resulted in a $4 million (net of tax) cumulative-effect adjustment from accumulated other comprehensive loss to retained earnings. Adoption of ASU 2016-01 did not have a material impact on our results of operations and/or cash flows. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . Topic 606 supersedes previous revenue recognition guidance, including ASC 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts , and outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP. Among other things, it requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time. The primary impact of the adoption of ASC Topic 606 was that, in most cases, the accounting for those contracts where we previously recognized revenue as units were delivered changed under ASC Topic 606 such that we now recognize revenue as costs are incurred. In addition, for certain of our contracts, there is a change in the number of performance obligations under ASC Topic 606, which has altered the timing of revenue and margin recognition. We adopted ASC Topic 606 on January 1, 2018 using the full retrospective method. We applied the transition practical expedient related to remaining performance obligations for reporting periods presented before the date of initial application. No other practical expedients were applied. The cumulative effect of adopting ASC Topic 606 was a $148 million increase to retained earnings at January 1, 2016. See Note 12 for information regarding the effect of adopting ASC Topic 606 on our unaudited condensed consolidated statement of earnings and comprehensive income for the three and six months ended June 30, 2017 and unaudited condensed consolidated statement of financial position as of December 31, 2017. Other accounting standards updates adopted and/or issued, but not effective until after June 30, 2018, are not expected to have a material effect on the company’s unaudited condensed consolidated financial position, annual results of operations and/or cash flows.

Business Acquisition (Unaudited

Business Acquisition (Unaudited) Business Acquisition (Unaudited)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	ACQUISITION OF ORBITAL ATK On June 6, 2018 , the company completed its previously announced acquisition of Orbital ATK, a global leader in aerospace and defense technologies, by acquiring all of the outstanding shares of Orbital ATK for a purchase price of $7.7 billion in cash. On the Merger date, Orbital ATK became a wholly-owned subsidiary of the company and its name was changed to Northrop Grumman Innovation Systems, Inc. We established Innovation Systems as a new, fourth business sector , whose main products include launch vehicles and related propulsion systems; missile products, subsystems and defense electronics; precision weapons, armament systems and ammunition; satellites and associated space components and services; and advanced aerospace structures. The acquisition was financed with proceeds from the company’s debt financing completed in October 2017 and cash on hand. We believe this acquisition will enable us to broaden our capabilities and offerings, provide additional innovative solutions to meet our customers’ emerging requirements, create value for shareholders and provide expanded opportunities for our combined employees. The operating results of Innovation Systems subsequent to the Merger date have been included in the company's consolidated results of operations. Innovation Systems recognized sales of $400 million , operating income of $39 million and net earnings of $30 million for the three and six months ended June 30, 2018. The company recognized $23 million and $29 million of acquisition-related costs that were expensed as incurred during the three and six months ended June 30, 2018, respectively. These costs are included in Product and Service cost in the unaudited condensed consolidated statement of earnings and comprehensive income. Preliminary Purchase Price Allocation The acquisition was accounted for as a purchase business combination. As such, the company recorded the assets acquired and liabilities assumed at fair value, with the excess of the purchase price over the fair value of assets acquired and liabilities assumed recorded as goodwill. T he company has completed a preliminary analysis to determine those fair values, and the amounts recorded as of June 30, 2018 reflect management’s initial assessment of fair value as of the Merger date. Determining the fair value of assets acquired and liabilities assumed requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. In some cases, the company used discounted cash flow analyses, which were based on our best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. The company expects substantially to finalize its purchase price allocation by the end of 2018 after we have further analyzed and assessed a number of the factors used in establishing the fair values of assets acquired and liabilities assumed as of the Merger date including, but not limited to, contractual and operational factors underlying the customer-related intangible assets and property, plant and equipment; details surrounding tax matters; and assumptions underlying certain existing or potential reserves, such as those for legal and environmental matters. The final fair value determination could result in material adjustments to the values presented in the preliminary purchase price allocation table below. The Merger date fair value of the consideration transferred totaled $7.7 billion in cash, which was comprised of the following: ($ in millions, except per share amounts) Purchase price Shares of Orbital ATK common stock outstanding as of the Merger date 57,562,152 Cash consideration per share of Orbital ATK common stock $ 134.50 Total purchase price $ 7,742 The following preliminary purchase price allocation table presents the company’s initial estimate of the fair values of assets acquired and liabilities assumed at the Merger date: ($ in millions) As of June 6, 2018 Cash and cash equivalents $ 85 Accounts receivable, net 616 Unbilled receivables, net 1,237 Inventoried costs, net 220 Other current assets 193 Property, plant and equipment 1,500 Goodwill 6,295 Intangible assets 1,305 Deferred tax assets (230 ) Other non-current assets 131 Total assets acquired 11,352 Trade accounts payable (397 ) Accrued employee compensation (158 ) Advance payments and amounts in excess of costs incurred (222 ) Below market contracts (1) (155 ) Other current liabilities (298 ) Long-term debt (1,687 ) Pension and other post-retirement benefit plan liabilities (557 ) Other non-current liabilities (136 ) Total liabilities assumed (3,610 ) Total purchase price $ 7,742 (1) Included in Other current liabilities. Below market contracts represent liabilities on certain acquired programs where the expected costs at completion exceed the expected sales under contract. We measured these liabilities based on the estimated price to transfer the obligations to a market participant at the Merger date plus a reasonable profit margin. These liabilities will be reduced as the company incurs costs to complete its performance obligations on the underlying programs. This reduction will be included in sales and is estimated as follows: $52 million in 2018, $70 million in 2019, $32 million in 2020 and $1 million in 2021. The following table presents a preliminary summary of purchased intangible assets and their related estimated useful lives: Fair Value (in millions) Estimated Useful Life in Years Customer contracts $ 1,040 9 Commercial customer relationships 265 13 Total customer-related intangible assets $ 1,305 The preliminary purchase price allocation resulted in the recognition of $6.3 billion of goodwill, a majority of which was allocated to the Innovation Systems sector (refer to Note 5 ). The goodwill recognized is attributable to expected revenue synergies generated by the integration of Aerospace Systems, Mission Systems and Technology Services products and technologies with those of legacy Orbital ATK, synergies resulting from the consolidation or elimination of certain costs, and intangible assets that do not qualify for separate recognition, such as the assembled workforce of Orbital ATK. None of the goodwill is expected to be deductible for tax purposes. Supplemental Pro Forma Information The following table presents unaudited pro forma financial information as if Orbital ATK had been included in our results as of January 1, 2017: Three Months Ended June 30 Six Months Ended June 30 ($ in millions, except per share amounts) 2018 2017 2018 2017 Sales $ 8,078 $ 7,555 $ 16,078 $ 15,039 Net earnings 791 572 1,615 1,225 Basic earnings per share 4.53 3.28 9.26 7.01 Diluted earnings per share 4.51 3.26 9.21 6.97 The unaudited supplemental pro forma financial data has been calculated after applying our accounting policies and adjusting the historical results of Orbital ATK with pro forma adjustments, net of tax, that assume the acquisition occurred on January 1, 2017. Significant pro forma adjustments include the following: 1. The impact of the adoption of ASC Topic 606 on Orbital ATK’s historical sales of $2 million and $21 million , and cost of sales of $2 million and $9 million , for the three and six months ended June 30, 2017. 2. The elimination of intercompany sales and costs of sales between the company and Orbital ATK of $33 million and $80 million for the three and six months ended June 30, 2018 and $35 million and $65 million for the three and six months ended June 30, 2017. 3. The elimination of nonrecurring transaction costs incurred by the company and Orbital ATK in connection with the Merger of $64 million and $71 million for the three and six months ended June 30, 2018. 4. The recognition of additional depreciation expense, net of removal of historical depreciation expense, of $7 million for the three and six months ended June 30, 2018, and $8 million and $10 million for the three and six months ended June 30, 2017, respectively, related to the step-up in fair value of acquired property, plant and equipment. 5. Additional interest expense related to the debt issued to finance the Merger, including amortization of the debt issuance costs associated with the newly issued debt, of $66 million and $133 million for the three and six months ended June 30, 2017. Interest expense and amortization of debt issuance costs have been included in the company's historical financial statements since the date of issuance (October 12, 2017). 6. The recognition of additional amortization expense, net of removal of historical amortization expense, of $34 million and $92 million for the three and six months ended June 30, 2018, respectively, and $65 million and $130 million for the three and six months ended June 30, 2017, respectively, related to the fair value of acquired intangible assets. 7. The elimination of Orbital ATK's historical amortization of net actuarial losses and prior service credits and impact of the revised pension and other post-retirement net periodic benefit cost as determined under the company’s plan assumptions of $20 million and $51 million for the three and six months ended June 30, 2018 and $29 million and $54 million for the three and six months ended June 30, 2017. The unaudited pro forma financial information does not reflect the potential realization of revenue synergies or cost savings, nor does it reflect other costs relating to the integration of the two companies. This pro forma financial information should not be considered indicative of the results that would have actually occurred if the acquisition had been consummated on January 1, 2017, nor are they indicative of future results.

Earnings Per Share, Share Repur

Earnings Per Share, Share Repurchases and Dividends on Common Stock (Unaudited)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK	EARNINGS PER SHARE, SHARE REPURCHASES AND DIVIDENDS ON COMMON STOCK Basic Earnings Per Share We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period. Diluted Earnings Per Share Diluted earnings per share primarily include the dilutive effect of awards granted to employees under stock-based compensation plans. The dilutive effect of these securities totaled 0.9 million shares and 1.0 million shares for the three and six months ended June 30, 2018 , respectively. The dilutive effect of these securities totaled 1.0 million and 1.1 million shares for the three and six months ended June 30, 2017 , respectively. Share Repurchases On September 16, 2015, the company’s board of directors authorized a share repurchase program of up to $4.0 billion of the company’s common stock (the “2015 Repurchase Program”). Repurchases under the 2015 Repurchase Program commenced in March 2016. As of June 30, 2018 , repurchases under the 2015 Repurchase Program totaled $1.7 billion ; $2.3 billion remained under this share repurchase authorization. By its terms, the 2015 Repurchase Program is set to expire when we have used all authorized funds for repurchases. Share repurchases take place from time to time, subject to market conditions and management’s discretion, in the open market or in privately negotiated transactions. The company retires its common stock upon repurchase and, in the periods presented, has not made any purchases of common stock other than in connection with these publicly announced repurchase programs. The table below summarizes the company’s share repurchases to date under the authorizations described above: Shares Repurchased Repurchase Program Amount Total Average (1) Date Completed Six Months Ended June 30 2018 2017 September 16, 2015 $ 4,000 7.6 $ 224.82 0.2 1.5 (1) Includes commissions paid. Dividends on Common Stock In May 2018, the company increased the quarterly common stock dividend 9 percent to $1.20 per share from the previous amount of $1.10 per share. In January 2018, the company increased the quarterly common stock dividend 10 percent to $1.10 per share from the previous amount of $1.00 per share. In May 2017, the company increased the quarterly common stock dividend 11 percent to $1.00 per share from the previous amount of $0.90 per share.

Income Taxes (Unaudited)

Income Taxes (Unaudited)	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Three Months Ended June 30 Six Months Ended June 30 $ in millions 2018 2017 2018 2017 Federal and foreign income tax expense $ 160 $ 257 $ 292 $ 395 Effective income tax rate 18.8 % 31.7 % 17.0 % 24.7 % Current Quarter The company’s effective tax rate of 18.8 percent for the three months ended June 30, 2018 was lower as compared with the same period in 2017 principally due to the reduction of the U.S. corporate income tax rate from 35 percent to 21 percent as a result of the 2017 Tax Act. In addition, the company’s effective tax rate for the three months ended June 30, 2018 was lower than the statutory tax rate principally due to $22 million of tax benefits associated with research credits. Year to Date The company’s effective tax rate of 17.0 percent for the six months ended June 30, 2018 was lower as compared with the same period in 2017 principally due to the reduction of the U.S. corporate income tax rate described above. Both periods reflect comparable tax benefits associated with research credits. In addition, the company’s effective tax rate for the six months ended June 30, 2018 includes $26 million of excess tax benefits related to employee share-based compensation. The company’s effective tax rate for the six months ended June 30, 2017 included $47 million of excess tax benefits related to employee share-based compensation, a $42 million benefit recognized in connection with the Congressional Joint Committee on Taxation’s approval of the Internal Revenue Service (IRS) examination of the company’s 2012-2013 tax returns and $31 million of tax benefits associated with domestic manufacturing deductions. In December 2017, the 2017 Tax Act was enacted. The 2017 Tax Act includes a number of changes to previous U.S. tax laws that impact the company, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017. The company recognized the income tax effects of the 2017 Tax Act in the financial statements included in its 2017 Annual Report on Form 10-K in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes , in the reporting period in which the 2017 Tax Act was signed into law. During the six months ended June 30, 2018 , the company did not recognize any changes to the provisional amounts recorded in its 2017 Annual Report on Form 10-K in connection with the 2017 Tax Act as the company is continuing to collect the information necessary to complete those calculations. We expect to finalize our analysis in the second half of the year as we complete our federal and state tax returns. In connection with the Merger, the company has initially recognized an increase in unrecognized tax benefits of approximately $150 million for matters associated with Innovation Systems, principally related to federal and state research credits. In addition, in the second quarter of 2018, we increased our unrecognized tax benefits related to our methods of accounting associated with the 2017 Tax Act by approximately $50 million and it is reasonably possible that within the next twelve months those unrecognized tax benefits may increase by up to an additional $100 million . We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. The Northrop Grumman 2014-2015 federal tax returns and refund claims related to its 2007-2011 federal tax returns are currently under IRS examination. The company believes it is reasonably possible that within the next twelve months we may resolve certain matters related to the examination of the 2014-2015 tax years, which may result in reductions of our unrecognized tax benefits up to $115 million and income tax expense up to $30 million . In addition, Innovation Systems federal tax returns for the year ended March 31, 2015 and nine-month transition period ended December 31, 2015 are currently under IRS examination. The company believes it is reasonably possible that within the next twelve months we may resolve certain matters related to the examination of these periods, which may result in reductions of our unrecognized tax benefits up to $35 million and income tax expense up to $30 million .

Goodwill and Other Purchased In

Goodwill and Other Purchased Intangible Assets (Unaudited) Goodwill and Other Purchased Intangible Assets (Unaudited)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets Disclosure [Text Block]	GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS Goodwill As discussed in Note 2 , Innovation Systems was established as a new, fourth business sector of the company. The Merger resulted in the recognition of $6.3 billion of goodwill, a majority of which was allocated to the Innovation Systems sector. A portion of this goodwill was allocated to the company’s other sectors based on expected revenue synergies generated by the integration of their products and technologies with those of Innovation Systems. The amount of goodwill recognized and allocated to the sectors is subject to change, pending the final determination of the fair value of assets acquired and liabilities assumed in connection with the Merger (see Note 2 ). Changes in the carrying amounts of goodwill were as follows: $ in millions Aerospace Systems Innovation Systems Mission Systems Technology Services Total Balance as of December 31, 2017 $ 3,742 $ — $ 6,696 $ 2,017 $ 12,455 Acquisition of Orbital ATK 418 5,329 469 79 6,295 Other (1) — — (1 ) (2 ) (3 ) Balance as of June 30, 2018 $ 4,160 $ 5,329 $ 7,164 $ 2,094 $ 18,747 (1) Other consists primarily of adjustments for foreign currency translation. Accumulated goodwill impairment losses at June 30, 2018 and December 31, 2017 , totaled $570 million at the Aerospace Systems segment. Purchased Intangible Assets Net customer-related and other intangible assets, including the preliminary fair value of purchased intangible assets acquired in the Merger, are as follows: June 30, December 31, 2017 $ in millions Gross customer-related and other intangible assets $ 3,138 $ 1,833 Less accumulated amortization (1,809 ) (1,781 ) Net customer-related and other intangible assets $ 1,329 $ 52 Amortization expense for the three and six months ended June 30, 2018 was $24 million and $28 million , respectively, and was $3 million and $7 million for the three and six months ended June 30, 2017 , respectively. The company’s customer-related intangible assets are amortized over their respective useful lives based on the pattern in which the future economic benefits of the intangible assets are expected to be consumed. Other purchased intangible assets are amortized on a straight-line basis. The company’s purchased intangible assets are being amortized over an aggregate weighted-average period of 12 years. As of June 30, 2018 , the expected future amortization of purchased intangibles for each of the next five years is as follows: $ in millions 2018 (remainder of year) $ 162 2019 284 2020 232 2021 150 2022 105 The company’s expected future amortization expense is subject to change, pending the final determination of the fair value of intangible assets acquired in the Merger (see Note 2 ).

Fair Value of Financial Instrum

Fair Value of Financial Instruments (Unaudited)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The company holds a portfolio of marketable securities consisting of securities to partially fund non-qualified employee benefit plans. A portion of these securities are held in common/collective trust funds and are measured at fair value using net asset value (NAV) per share as a practical expedient; and therefore are not required to be categorized in the fair value hierarchy table below. Marketable securities are included in Other non-current assets in the unaudited condensed consolidated statements of financial position. The company's derivative portfolio consists primarily of commodity forward contracts and foreign currency forward contracts. As a result of the Merger, the company assumed commodity forward contracts, which Innovation Systems periodically uses to hedge forecasted purchases of certain commodities. The contracts generally establish a fixed price for the underlying commodity and are designated and qualify as effective cash flow hedges of such commodity purchases. Commodity derivatives are valued based on prices of future exchanges and recently reported transactions in the marketplace. For foreign currency forward contracts, where model-derived valuations are appropriate, the company utilizes the income approach to determine the fair value and uses the applicable London Interbank Offered Rate (LIBOR) swap rates. The following table presents the financial assets and liabilities the company records at fair value on a recurring basis identified by the level of inputs used to determine fair value: June 30, 2018 December 31, 2017 $ in millions Level 1 Level 2 Total Level 1 Level 2 Total Financial Assets (Liabilities) Marketable securities $ 350 $ — $ 350 $ 352 $ 1 $ 353 Marketable securities valued using NAV — — 14 — — — Total marketable securities 350 — 364 352 1 353 Derivatives — (5 ) (5 ) — — — At June 30, 2018 , the company had commodity forward contracts outstanding that hedge forecasted commodity purchases of 17 million pounds of copper and 6 million pounds of zinc. Gains or losses on the commodity forward contracts are recognized in cost of sales as the performance obligations on related contracts are satisfied. The notional value of the company’s foreign currency forward contracts at June 30, 2018 and December 31, 2017 was $114 million and $89 million , respectively. The portion of notional value designated as a cash flow hedge at June 30, 2018 and December 31, 2017 was $4 million and $8 million , respectively. The derivative fair values and related unrealized gains/losses at June 30, 2018 and December 31, 2017 were not material. There were no transfers of financial instruments between the three levels of the fair value hierarchy during the six months ended June 30, 2018 . The carrying value of cash and cash equivalents and commercial paper approximates fair value. Long-term Debt The estimated fair value of long-term debt was $15.1 billion and $16.0 billion as of June 30, 2018 and December 31, 2017 , respectively. We calculated the fair value of long-term debt using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the company’s existing debt arrangements. The carrying value of long-term debt was $15.1 billion and $15.3 billion as of June 30, 2018 and December 31, 2017 , respectively. The current portion of long-term debt is recorded in other current liabilities in the unaudited condensed consolidated statements of financial position. In connection with the Merger, the company assumed $1.7 billion of long-term debt, of which $700 million remained outstanding as of June 30, 2018 (refer to Note 2). This long-term debt was comprised of $300 million in 5.25 percent senior notes with a maturity date of 2021 (the “2021 Notes”) and $400 million in 5.50 percent senior notes with a maturity date of 2023 (the “2023 Notes”). Subsequent Event On July 19, 2018, the company fully redeemed the 2021 and 2023 Notes.

Investigations, Claims and Liti

Investigations, Claims and Litigation (Unaudited)	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block Supplement [Abstract]
INVESTIGATIONS, CLAIMS AND LITIGATION	INVESTIGATIONS, CLAIMS AND LITIGATION Litigation On May 4, 2012, the company commenced an action, Northrop Grumman Systems Corp. v. United States , in the U.S. Court of Federal Claims. This lawsuit relates to an approximately $875 million firm fixed price contract awarded to the company in 2007 by the U.S. Postal Service (USPS) for the construction and delivery of flats sequencing systems (FSS) as part of the postal automation program. The FSS have been delivered. The company’s lawsuit is based on various theories of liability. The complaint seeks approximately $63 million for unpaid portions of the contract price, and approximately $115 million based on the company’s assertions that, through various acts and omissions over the life of the contract, the USPS adversely affected the cost and schedule of performance and materially altered the company’s obligations under the contract. The United States responded to the company’s complaint with an answer, denying most of the company’s claims, and counterclaims seeking approximately $410 million , less certain amounts outstanding under the contract. The principal counterclaim alleges that the company delayed its performance and caused damages to the USPS because USPS did not realize certain costs savings as early as it had expected. On April 2, 2013, the U.S. Department of Justice informed the company of a False Claims Act complaint relating to the FSS contract that was filed under seal by a relator in June 2011 in the U.S. District Court for the Eastern District of Virginia. On June 3, 2013, the United States filed a Notice informing the Court that the United States had decided not to intervene in this case. The relator alleged that the company violated the False Claims Act in a number of ways with respect to the FSS contract, alleged damage to the USPS in an amount of at least approximately $179 million annually, alleged that he was improperly discharged in retaliation, and sought an unspecified partial refund of the contract purchase price, penalties, attorney’s fees and other costs of suit. The relator later voluntarily dismissed his retaliation claim and reasserted it in a separate arbitration, which he also ultimately voluntarily dismissed. On September 5, 2014, the court granted the company’s motion for summary judgment and ordered the relator’s False Claims Act case be dismissed with prejudice. On December 19, 2014, the company filed a motion for partial summary judgment asking the court to dismiss the principal counterclaim referenced above. On June 29, 2015, the Court heard argument and denied that motion without prejudice to filing a later motion to dismiss. On February 16, 2018, both the company and the United States filed motions to dismiss many of the claims and counterclaims in whole or in part. The United States also filed a motion seeking to amend its answer and counterclaim, including to reduce its counterclaim to approximately $193 million , which the court granted on June 11, 2018. Although the ultimate outcome of these matters (“the FSS matters,” collectively), including any possible loss, cannot be predicted or reasonably estimated at this time, the company intends vigorously to pursue and defend the FSS matters. On August 8, 2013, the company received a court-appointed expert’s report in litigation pending in the Second Federal Court of the Federal District in Brazil brought by the Brazilian Post and Telegraph Corporation (ECT), a Brazilian state-owned entity, against Solystic SAS (Solystic), a French subsidiary of the company, and two of its consortium partners. In this suit, commenced on December 17, 2004, and relatively inactive for some period of time, ECT alleges the consortium breached its contract with ECT and seeks damages of approximately R$111 million (the equivalent of approximately $29 million as of June 30, 2018 ), plus interest, inflation adjustments and attorneys’ fees, as authorized by Brazilian law, which amounts could be significant over time. The original suit sought R$89 million (the equivalent of approximately $23 million as of June 30, 2018 ) in damages. In October 2013, ECT asserted an additional damage claim of R$22 million (the equivalent of approximately $6 million as of June 30, 2018 ). In its counterclaim, Solystic alleges ECT breached the contract by wrongfully refusing to accept the equipment Solystic had designed and built and seeks damages of approximately €31 million (the equivalent of approximately $36 million as of June 30, 2018 ), plus interest, inflation adjustments and attorneys’ fees, as authorized by Brazilian law. The Brazilian court retained an expert to consider certain issues pending before it. On August 8, 2013 and September 10, 2014, the company received reports from the expert, which contain some recommended findings relating to liability and the damages calculations put forth by ECT. Some of the expert’s recommended findings were favorable to the company and others were favorable to ECT. In November 2014, the parties submitted comments on the expert’s most recent report. On June 16, 2015, the court published a decision denying the parties’ request to present oral testimony. At some future point, the court is expected to issue a decision on the parties’ claims and counterclaims that could accept or reject, in whole or in part, the expert’s recommended findings. The company previously identified and disclosed to the U.S. government various issues relating primarily to time-charging practices of some employees working on a particular program with remote deployments. The Department of Justice is continuing to investigate this matter, the company is cooperating, and the parties are in discussions. Depending upon the ultimate outcome of this matter, the company could be subject to damages, civil and criminal fines, penalties or other sanctions, and suspension or debarment actions; however, we cannot at this point predict the outcome. We are engaged in remediation activities relating to environmental conditions allegedly resulting from historic operations at the former United States Navy and Grumman facilities in Bethpage, New York. For over 20 years, we have worked closely with the United States Navy, the United States Environmental Protection Agency, the New York State Department of Environmental Conservation, the New York State Department of Health and other federal, state and local governmental authorities, to address legacy environmental conditions in Bethpage. We have incurred, and expect to continue to incur, as included in Note 8 , substantial remediation costs related to these environmental conditions. The remediation standards or requirements to which we are subject may change and costs may increase materially. The State of New York has notified us that it intends to seek to impose additional remedial requirements and, among other things, is evaluating natural resource damages. In addition, we are and may become a party to various legal proceedings and disputes related to remediation and/or alleged environmental impacts in Bethpage, including with federal and state entities, local municipalities and water districts, insurance carriers and class action plaintiffs. These Bethpage matters could result in additional costs, fines, penalties, sanctions, compensatory or other damages (including natural resource damages), determinations on allocation, allowability and coverage, and non-monetary relief. We cannot at this time predict or reasonably estimate the potential cumulative outcomes or ranges of possible liability of these aggregate Bethpage matters. On August 12, 2016, a putative class action complaint, naming Orbital ATK and two of its then-officers as defendants, Steven Knurr, et al. v. Orbital ATK, Inc., No. 16-cv-01031 (TSE-MSN), was filed in the United States District Court for the Eastern District of Virginia. The complaint asserts claims on behalf of purchasers of Orbital ATK securities for violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5, allegedly arising out of false and misleading statements and the failure to disclose that: (i) Orbital ATK lacked effective control over financial reporting; and (ii) as a result, it failed to record an anticipated loss on a long-term contract with the U.S. Army to manufacture and supply small caliber ammunition at the U.S. Army's Lake City Army Ammunition Plant. On April 24, 2017 and October 10, 2017, the plaintiffs filed amended complaints naming additional defendants and asserting claims for alleged violations of additional sections of the Exchange Act and alleged false and misleading statements in Orbital ATK’s Form S-4 filed in connection with the Orbital-ATK Merger. The complaint seeks damages, reasonable costs and expenses at trial, including counsel and expert fees, and such other relief as deemed appropriate by the Court. Although the ultimate outcome of this matter, including any possible loss, cannot be predicted or reasonably estimated at this time, the company intends vigorously to defend the matter. The SEC is investigating Orbital ATK’s historical accounting practices relating to the restatement of Orbital’s unaudited condensed consolidated financial statements for the quarterly periods ended July 5, 2015 and October 4, 2015 described in the Transition Report on Form 10-K for the nine-month period ending December 31, 2015 previously filed on March 15, 2016. The SEC is also investigating matters relating to a voluntary disclosure Orbital ATK made concerning the restatement described in Orbital ATK’s Form 10-K/A for the nine-month period ending December 31, 2015 filed on February 24, 2017. Although the ultimate outcome of these matters, including any possible loss, cannot be predicted or reasonably estimated at this time, the company intends to continue to cooperate with the SEC. The company is a party to various other investigations, lawsuits, claims, enforcement actions and other legal proceedings, including government investigations and claims, that arise in the ordinary course of our business. The nature of legal proceedings is such that we cannot assure the outcome of any particular matter. However, based on information available to the company to date, the company does not believe that the outcome of any of these other matters pending against the company is likely to have a material adverse effect on the company’s unaudited condensed consolidated financial position as of June 30, 2018 , or its annual results of operations and/or cash flows.

Commitments and Contingencies (

Commitments and Contingencies (Unaudited)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES U.S. Government Cost Claims From time to time, the company is advised of claims by the U.S. government concerning certain potential disallowed costs, plus, at times, penalties and interest. When such findings are presented, the company and U.S. government representatives engage in discussions to enable the company to evaluate the merits of these claims, as well as to assess the amounts being claimed. Where appropriate, provisions are made to reflect the company’s estimated exposure for such potential disallowed costs. Such provisions are reviewed periodically using the most recent information available. The company believes it has adequately reserved for disputed amounts that are probable and reasonably estimable, and that the outcome of any such matters would not have a material adverse effect on its unaudited condensed consolidated financial position as of June 30, 2018 , or its annual results of operations and/or cash flows. Environmental Matters The table below summarizes management’s estimate of the range of reasonably possible future costs for environmental remediation, the amount accrued within that range, and the deferred costs expected to be recoverable through overhead charges on U.S. government contracts as of June 30, 2018 and December 31, 2017 : $ in millions Range of Reasonably Possible Future Costs (1) Accrued Costs (2) Deferred Costs (3) June 30, 2018 $453 - $836 $ 463 $ 236 December 31, 2017 405 - 792 410 207 (1) Estimated remediation costs are not discounted to present value. The range of reasonably possible future costs does not take into consideration amounts expected to be recoverable through overhead charges on U.S. government contracts. (2) As of June 30, 2018 , $155 million is recorded in other current liabilities and $308 million is recorded in other non-current liabilities. (3) As of June 30, 2018 , $79 million is deferred in prepaid expenses and other current assets and $157 million is deferred in other non-current assets. These amounts are evaluated for recoverability on a routine basis. As a result of the Merger, we assumed certain environmental remediation liabilities that are included in the accrued costs above, along with the related deferred costs expected to be recoverable on U.S. government contracts. Although management cannot predict whether new information gained as our environmental remediation projects progress, or as changes in facts and circumstances occur, will materially affect the estimated liability accrued, except with respect to Bethpage, we do not anticipate that future remediation expenditures associated with our currently identified projects will have a material adverse effect on the company’s unaudited condensed consolidated financial position as of June 30, 2018 , or its annual results of operations and/or cash flows. With respect to Bethpage, as described in Note 7 , we cannot at this time estimate the range of reasonably possible additional future costs that could result from potential changes to remediation standards or requirements to which we are subject. Financial Arrangements In the ordinary course of business, the company uses standby letters of credit and guarantees issued by commercial banks and surety bonds issued principally by insurance companies to guarantee the performance on certain obligations. At June 30, 2018 , there were $395 million of stand-by letters of credit and guarantees and $211 million of surety bonds outstanding. Indemnifications The company has provided indemnification for certain environmental, income tax and other potential liabilities in connection with certain of its divestitures. The settlement of these liabilities is not expected to have a material adverse effect on the company’s unaudited condensed consolidated financial position as of June 30, 2018 , or its annual results of operations and/or cash flows. Operating Leases Rental expense for operating leases for the three and six months ended June 30, 2018 was $81 million and $173 million , respectively, and was $65 million and $154 million for the three and six months ended June 30, 2017 , respectively. These amounts are net of immaterial amounts of sublease rental income. Credit Facilities In December 2016, a subsidiary of the company entered into a two-year credit facility, with two additional one-year option periods, in an aggregate principal amount of £120 million (the equivalent of approximately $159 million as of June 30, 2018 ) (the “2016 Credit Agreement”). The company exercised the first option to extend the maturity to December 2019. The 2016 Credit Agreement is guaranteed by the company. At June 30, 2018 , there was £90 million (the equivalent of approximately $119 million ) outstanding under this facility, which bears interest at a rate of LIBOR plus 1.10 percent . All of the borrowings outstanding under this facility mature less than one year from the date of issuance, but may be renewed under the terms of the facility. Based on our intent and ability to refinance the obligations on a long-term basis, substantially all of the borrowings are classified as non-current. The company also maintains a five-year unsecured credit facility in an aggregate principal amount of $1.6 billion that matures in July 2020. At June 30, 2018 , there was no balance outstanding under this facility. At June 30, 2018 , the company was in compliance with all covenants under its credit agreements. Commercial Paper In May 2018, the company commenced a commercial paper program that serves as a source of short-term financing. Under this program, the company may issue up to $750 million of unsecured commercial paper notes. The commercial paper notes outstanding have original maturities of 90 days or less from the date of issuance. At June 30, 2018 , there were $249 million of outstanding short-term commercial paper borrowings at a weighted-average interest rate of 2.46 percent .

Retirement Benefits (Unaudited)

Retirement Benefits (Unaudited)	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
RETIREMENT BENEFITS	9 . RETIREMENT BENEFITS The cost to the company of its retirement plans is shown in the following table: Three Months Ended June 30 Six Months Ended June 30 Pension Medical and Pension Medical and $ in millions 2018 2017 2018 2017 2018 2017 2018 2017 Components of net periodic benefit cost Service cost $ 100 $ 97 $ 5 $ 6 $ 199 $ 194 $ 10 $ 11 Interest cost 300 312 19 21 590 625 38 42 Expected return on plan assets (544 ) (472 ) (24 ) (23 ) (1,073 ) (943 ) (49 ) (45 ) Amortization of: Prior service credit (14 ) (14 ) (6 ) (6 ) (29 ) (29 ) (11 ) (11 ) Net loss from previous years 133 191 — 4 267 382 — 7 Net periodic benefit cost $ (25 ) $ 114 $ (6 ) $ 2 $ (46 ) $ 229 $ (12 ) $ 4 Changes in Presentation As discussed in Note 1, we adopted ASU 2017-07 on January 1, 2018 using the retrospective method, which changed the financial statement presentation of service costs and the other components of net periodic benefit cost. The service cost component continues to be included in operating income; however, the other components are now presented in Net FAS (non-service) pension benefit (expense) in the unaudited condensed consolidated statements of earnings and comprehensive income . In addition, interest on service cost and plan administrative expenses which, in some cases, have historically been included in service cost are now consistently presented in the interest cost and amortization of net actuarial loss components, respectively. As a result, the company reclassified interest on service cost of $4 million and $8 million and plan administrative expenses of $13 million and $26 million from service cost to the interest cost and amortization of net actuarial loss components, respectively, for its pension plans in the three and six months ended June 30, 2017, respectively, to conform to the current year presentation. For the company’s medical and life benefit plans, plan administrative expenses of $1 million and $2 million were reclassified from service cost to the amortization of net actuarial loss component for the three and six months ended June 30, 2017, respectively, to conform to the current year presentation. This change in presentation had no impact on net periodic benefit cost. Employer Contributions The company sponsors defined benefit pension and post-retirement plans, as well as defined contribution plans. We fund our defined benefit pension plans annually in a manner consistent with the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006, including making voluntary contributions from time to time. Contributions made by the company to its retirement plans are as follows: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2018 2017 2018 2017 Defined benefit pension plans $ 23 $ 28 $ 45 $ 51 Medical and life benefit plans 11 13 22 24 Defined contribution plans 88 77 192 176

Stock Compensation Plans and Ot

Stock Compensation Plans and Other Compensation Arrangements (Unaudited)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK COMPENSATION PLANS AND OTHER COMPENSATION ARRANGEMENTS	STOCK COMPENSATION PLANS AND OTHER COMPENSATION ARRANGEMENTS Stock Awards The following table presents the number of restricted stock rights (RSRs) and restricted performance stock rights (RPSRs) granted to employees under the company's long-term incentive stock plan and the grant date aggregate fair value of those stock awards for the periods presented: Six Months Ended June 30 in millions 2018 2017 RSRs granted 0.1 0.1 RPSRs granted 0.2 0.3 Grant date aggregate fair value $ 114 $ 91 RSRs typically vest on the third anniversary of the grant date, while RPSRs generally vest and pay out based on the achievement of financial metrics over a three -year period. Cash Awards The following table presents the minimum and maximum aggregate payout amounts related to cash units (CUs) and cash performance units (CPUs) granted to employees in the periods presented: Six Months Ended June 30 $ in millions 2018 2017 Minimum aggregate payout amount $ 36 $ 35 Maximum aggregate payout amount 205 198 CUs typically vest and settle in cash on the third anniversary of the grant date, while CPUs generally vest and pay out in cash based on the achievement of financial metrics over a three -year period.

Segment Information (Unaudited)

Segment Information (Unaudited)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The company is aligned in four operating sectors, which also comprise our reportable segments: Aerospace Systems, Innovation Systems, Mission Systems and Technology Services. The following table presents sales and operating income by segment: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2018 2017 2018 2017 Sales Aerospace Systems $ 3,337 $ 3,003 $ 6,617 $ 5,987 Innovation Systems 400 — 400 — Mission Systems 2,874 2,859 5,757 5,659 Technology Services 1,048 1,162 2,192 2,352 Intersegment eliminations (540 ) (551 ) (1,112 ) (1,115 ) Total sales 7,119 6,473 13,854 12,883 Operating income Aerospace Systems 357 320 698 643 Innovation Systems 39 — 39 — Mission Systems 352 384 723 743 Technology Services 95 125 217 254 Intersegment eliminations (64 ) (70 ) (136 ) (140 ) Total segment operating income 779 759 1,541 1,500 Net FAS (service)/CAS pension adjustment 137 154 264 308 Unallocated corporate expense (92 ) (39 ) (126 ) (71 ) Other (1 ) (1 ) (2 ) (2 ) Total operating income $ 823 $ 873 $ 1,677 $ 1,735 Net FAS (Service)/CAS Pension Adjustment For financial statement purposes, we account for our employee pension plans in accordance with FAS. However, the cost of these plans is charged to our contracts in accordance with the Federal Acquisition Regulation (FAR) and the related U.S. Government Cost Accounting Standards (CAS). The net FAS (service)/CAS pension adjustment reflects the difference between CAS pension expense included as cost in segment operating income and the service cost component of FAS expense included in total operating income. The non-service cost components of FAS expense, which include interest cost, expected return on plan assets, and amortization of prior service credit and net actuarial loss, are presented in Net FAS (non-service) pension benefit (expense) in the unaudited condensed consolidated statements of earnings and comprehensive income as a result of our adoption of ASU 2017-07 discussed in Note 1. Unallocated Corporate Expense Unallocated corporate expense includes the portion of corporate costs not considered allowable or allocable under applicable CAS or FAR, and therefore not allocated to the segments, such as a portion of management and administration, legal, environmental, compensation, retiree benefits and other corporate unallowable costs. Unallocated corporate expense also includes costs not considered part of management’s evaluation of segment operating performance, such as amortization of purchased intangible assets. Disaggregation of Revenue Sales by Customer Type Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 $ in millions $ % (3) $ % (3) $ % (3) $ % (3) Aerospace Systems U.S. Government (1) $ 2,799 84 % $ 2,616 87 % $ 5,707 86 % $ 5,169 86 % International (2) 449 13 % 272 9 % 720 11 % 581 10 % Other Customers 38 1 % 40 1 % 80 1 % 78 1 % Intersegment sales 51 2 % 75 3 % 110 2 % 159 3 % Aerospace Systems sales 3,337 100 % 3,003 100 % 6,617 100 % 5,987 100 % Innovation Systems U.S. Government (1) 265 66 % — — 265 66 % — — International (2) 92 23 % — — 92 23 % — — Other Customers 30 8 % — — 30 8 % — — Intersegment sales 13 3 % — — 13 3 % — — Innovation Systems sales 400 100 % — — 400 100 % — — Mission Systems U.S. Government (1) 2,155 75 % 2,227 78 % 4,345 76 % 4,413 78 % International (2) 391 14 % 353 12 % 770 13 % 707 12 % Other Customers 34 1 % 33 1 % 64 1 % 54 1 % Intersegment sales 294 10 % 246 9 % 578 10 % 485 9 % Mission Systems sales 2,874 100 % 2,859 100 % 5,757 100 % 5,659 100 % Technology Services U.S. Government (1) 597 57 % 672 58 % 1,199 54 % 1,308 56 % International (2) 193 18 % 168 14 % 413 19 % 377 16 % Other Customers 76 7 % 92 8 % 169 8 % 196 8 % Intersegment sales 182 18 % 230 20 % 411 19 % 471 20 % Technology Services sales 1,048 100 % 1,162 100 % 2,192 100 % 2,352 100 % Total U.S. Government (1) 5,816 82 % 5,515 85 % 11,516 83 % 10,890 84 % International (2) 1,125 16 % 793 12 % 1,995 15 % 1,665 13 % Other Customers 178 2 % 165 3 % 343 2 % 328 3 % Total Sales $ 7,119 100 % $ 6,473 100 % $ 13,854 100 % $ 12,883 100 % (1) Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company's segments derives substantial revenue from the U.S. government. (2) International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer. These sales include foreign military sales contracted through the U.S. government, direct sales with governments outside the U.S. and commercial sales with customers outside the U.S. (3) Percentages calculated based on total segment sales. Sales by Contract Type Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 $ in millions $ % (1) $ % (1) $ % (1) $ % (1) Aerospace Systems Cost-type $ 1,934 59 % $ 1,840 63 % $ 3,836 59 % $ 3,667 63 % Fixed-price 1,352 41 % 1,088 37 % 2,671 41 % 2,161 37 % Intersegment sales 51 75 110 159 Aerospace System sales 3,337 3,003 6,617 5,987 Innovation Systems Cost-type 99 26 % — — 99 26 % — — Fixed-price 288 74 % — — 288 74 % — — Intersegment sales 13 — 13 — Innovation System sales 400 — 400 — Mission Systems Cost-type 1,207 47 % 1,353 52 % 2,486 48 % 2,669 52 % Fixed-price 1,373 53 % 1,260 48 % 2,693 52 % 2,505 48 % Intersegment sales 294 246 578 485 Mission System sales 2,874 2,859 5,757 5,659 Technology Services Cost-type 385 44 % 404 43 % 822 46 % 849 45 % Fixed-price 481 56 % 528 57 % 959 54 % 1,032 55 % Intersegment sales 182 230 411 471 Technology Services sales 1,048 1,162 2,192 2,352 Total Cost-type 3,625 51 % 3,597 56 % 7,243 52 % 7,185 56 % Fixed-price 3,494 49 % 2,876 44 % 6,611 48 % 5,698 44 % Total Sales $ 7,119 $ 6,473 $ 13,854 $ 12,883 (1) Percentages calculated based on external customer sales. Sales by Geographic Region Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 $ in millions $ % (2) $ % (2) $ % (2) $ % (2) Aerospace Systems United States $ 2,837 86 % $ 2,656 91 % $ 5,787 89 % $ 5,247 90 % Asia/Pacific 249 8 % 157 5 % 378 6 % 345 6 % All other (1) 200 6 % 115 4 % 342 5 % 236 4 % Intersegment sales 51 75 110 159 Aerospace Systems sales 3,337 3,003 6,617 5,987 Innovation Systems United States 296 77 % — — 296 77 % — — Asia/Pacific 24 6 % — — 24 6 % — — All other (1) 67 17 % — — 67 17 % — — Intersegment sales 13 — 13 — Innovation Systems sales 400 — 400 — Mission Systems United States 2,193 85 % 2,261 86 % 4,413 85 % 4,468 86 % Asia/Pacific 160 6 % 155 6 % 313 6 % 309 6 % All other (1) 227 9 % 197 8 % 453 9 % 397 8 % Intersegment sales 294 246 578 485 Mission Systems sales 2,874 2,859 5,757 5,659 Technology Services United States 673 78 % 764 82 % 1,368 77 % 1,505 80 % Asia/Pacific 36 4 % 28 3 % 68 4 % 74 4 % All other (1) 157 18 % 140 15 % 345 19 % 302 16 % Intersegment sales 182 230 411 471 Technology Services sales 1,048 1,162 2,192 2,352 Total United States 5,999 84 % 5,681 88 % 11,864 85 % 11,220 87 % Asia/Pacific 469 7 % 340 5 % 783 6 % 728 6 % All other (1) 651 9 % 452 7 % 1,207 9 % 935 7 % Total Sales $ 7,119 100 % $ 6,473 100 % $ 13,854 100 % $ 12,883 100 % (1) All other principally comprised of Europe and Middle East. (2) Percentages calculated based on external customer sales.

Recast 2017 Financial Informati

Recast 2017 Financial Information (Unaudited)	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Accounting Changes and Error Corrections [Text Block]	RECAST 2017 FINANCIAL INFORMATION Our prior period financial statements were recast for the retrospective adoption of ASC Topic 606 and ASU 2017-07 as described in Note 1. The following tables summarize the effects of adopting these accounting standards on our unaudited condensed consolidated statement of earnings and comprehensive income for the three and six months ended June 30, 2017 and unaudited condensed consolidated statement of financial position as of December 31, 2017. The adoption of ASC Topic 606 did not have a material impact on our unaudited condensed consolidated statements of cash flows and changes in shareholders’ equity for the six months ended June 30, 2017. CONDENSED CONSOLIDATED STATEMENT OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended June 30, 2017 As Reported Effect of the Adoption of As Adjusted $ in millions, except per share amounts ASC Topic 606 ASU 2017-07 Sales Product $ 3,916 $ 121 $ — $ 4,037 Service 2,459 (23 ) — 2,436 Total sales 6,375 98 — 6,473 Operating costs and expenses Product 2,958 87 (8 ) 3,037 Service 1,896 (14 ) (5 ) 1,877 General and administrative expenses 666 20 — 686 Operating income 855 5 13 873 Other (expense) income Interest expense (76 ) — — (76 ) Net FAS (non-service) pension benefit (expense) — — (17 ) (17 ) Other, net 28 — 4 32 Earnings before income taxes 807 5 — 812 Federal and foreign income tax expense 255 2 — 257 Net earnings 552 3 — 555 Basic earnings per share $ 3.16 $ 0.02 $ — $ 3.18 Weighted-average common shares outstanding, in millions 174.5 — — 174.5 Diluted earnings per share $ 3.15 $ 0.01 $ — $ 3.16 Weighted-average diluted shares outstanding, in millions 175.5 — — 175.5 Net earnings (from above) $ 552 $ 3 $ — $ 555 Other comprehensive income Change in unamortized benefit plan costs, net of tax 102 — — 102 Change in cumulative translation adjustment (4 ) — — (4 ) Other, net 1 — — 1 Other comprehensive income, net of tax 99 — — 99 Comprehensive income $ 651 $ 3 $ — $ 654 CONDENSED CONSOLIDATED STATEMENT OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited) Six Months Ended June 30, 2017 As Reported Effect of the Adoption of As Adjusted $ in millions, except per share amounts ASC Topic 606 ASU 2017-07 Sales Product $ 7,750 $ 284 $ — $ 8,034 Service 4,892 (43 ) — 4,849 Total sales 12,642 241 — 12,883 Operating costs and expenses Product 5,829 208 (17 ) 6,020 Service 3,783 (28 ) (11 ) 3,744 General and administrative expenses 1,343 41 — 1,384 Operating income 1,687 20 28 1,735 Other (expense) income Interest expense (151 ) — — (151 ) Net FAS (non-service) pension benefit (expense) — — (35 ) (35 ) Other, net 44 — 7 51 Earnings before income taxes 1,580 20 — 1,600 Federal and foreign income tax expense 388 7 — 395 Net earnings 1,192 13 — 1,205 Basic earnings per share $ 6.82 $ 0.08 $ — $ 6.90 Weighted-average common shares outstanding, in millions 174.7 — — 174.7 Diluted earnings per share $ 6.78 $ 0.07 $ — $ 6.85 Weighted-average diluted shares outstanding, in millions 175.8 — — 175.8 Net earnings (from above) $ 1,192 $ 13 $ — $ 1,205 Other comprehensive income Change in unamortized benefit plan costs, net of tax 201 — — 201 Change in cumulative translation adjustment — — — — Other, net 3 — — 3 Other comprehensive income, net of tax 204 — — 204 Comprehensive income $ 1,396 $ 13 $ — $ 1,409 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited) December 31, 2017 As Reported Effect of the Adoption of As Adjusted $ in millions ASC Topic 606 ASU 2017-07 Assets Cash and cash equivalents $ 11,225 $ — $ — $ 11,225 Accounts receivable, net 829 225 — 1,054 Unbilled receivables, net 3,147 318 — 3,465 Inventoried costs, net 780 (382 ) — 398 Prepaid expenses and other current assets 368 77 — 445 Total current assets 16,349 238 — 16,587 Property, plant and equipment, net of accumulated depreciation of $5,066 for 2017 4,225 — — 4,225 Goodwill 12,455 — — 12,455 Deferred tax assets 475 (28 ) — 447 Intangible assets, net 52 — — 52 Other non-current assets 1,361 1 — 1,362 Total assets $ 34,917 $ 211 $ — $ 35,128 Liabilities Trade accounts payable $ 1,661 $ — $ — $ 1,661 Accrued employee compensation 1,382 — — 1,382 Advance payments and amounts in excess of costs incurred 1,617 144 — 1,761 Other current liabilities 2,305 (17 ) — 2,288 Total current liabilities 6,965 127 — 7,092 Long-term debt, net of current portion of $867 for 2017 14,399 — — 14,399 Pension and other post-retirement benefit plan liabilities 5,511 — — 5,511 Other non-current liabilities 994 — — 994 Total liabilities 27,869 127 — 27,996 Commitments and contingencies (Note 8) Shareholders’ equity Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding — — — — Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2017—174,085,619 174 — — 174 Paid-in capital 44 — — 44 Retained earnings 11,548 84 — 11,632 Accumulated other comprehensive loss (4,718 ) — — (4,718 ) Total shareholders’ equity 7,048 84 — 7,132 Total liabilities and shareholders’ equity $ 34,917 $ 211 $ — $ 35,128

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	These unaudited condensed consolidated financial statements (the “financial statements”) include the accounts of Northrop Grumman Corporation and its subsidiaries and joint ventures or other investments for which we consolidate the financial results (herein referred to as “Northrop Grumman,” the “company,” “we,” “us,” or “our”). Material intercompany accounts, transactions and profits are eliminated in consolidation. Investments in equity securities and joint ventures where the company has significant influence, but not control, are accounted for using the equity method.
Basis of Presentation	The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP” or “FAS”) and in accordance with the rules of the Securities and Exchange Commission (SEC) for interim reporting. The financial statements include adjustments of a normal recurring nature considered necessary by management for a fair presentation of the company’s unaudited condensed consolidated financial position, results of operations and cash flows. The results reported in these financial statements are not necessarily indicative of results that may be expected for the entire year. These financial statements should be read in conjunction with the information contained in the company’s Annual Report on Form 10-K for the year ended December 31, 2017 (2017 Annual Report on Form 10-K)
Fiscal Period Policy	The quarterly information is labeled using a calendar convention; that is, first quarter is consistently labeled as ending on March 31, second quarter as ending on June 30 and third quarter as ending on September 30. It is the company’s long-standing practice to establish actual interim closing dates using a “fiscal” calendar, in which we close our books on a Friday near these quarter-end dates in order to normalize the potentially disruptive effects of quarterly closings on business processes. Similarly, Innovation Systems uses a “fiscal” calendar by closing its books on a Sunday near these quarter-end dates and will continue this practice until its business processes are aligned with the company’s. The Friday and Sunday closing dates noted herein are both labeled as June 30, consistent with our calendar convention described above. This practice is only used at interim periods within a reporting year.
Accounting Estimates	Preparation of the financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of sales and expenses during the reporting period. Estimates have been prepared using the most current and best available information; however, actual results could differ materially from those estimates.
Revenue Recognition	The majority of our sales are derived from long-term contracts with the U.S. government for the production of goods, the provision of services, or a combination of both. The company classifies sales as product or service based on the predominant attributes of each contract. Under ASC Topic 606, the company recognizes revenue for each separately identifiable performance obligation in a contract representing a promise to transfer a distinct good or service to a customer. In most cases, goods and services provided under the company’s contracts are accounted for as single performance obligations due to the complex and integrated nature of our products and services. These contracts generally require significant integration of a group of goods and/or services to deliver a combined output. In some contracts, the company provides multiple distinct goods or services to a customer, most commonly when a contract covers multiple phases of the product lifecycle (development, production, maintenance and/or support). In those cases, the company accounts for the distinct contract deliverables as separate performance obligations and allocates the transaction price to each performance obligation based on its relative standalone selling price, which is generally estimated using the cost plus a reasonable margin approach of ASC Topic 606. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not within the scope of ASC Topic 606. Likewise, our accounting for costs to obtain or fulfill a contract was not significantly impacted by the adoption of ASC Topic 606 as these costs are not material. A contract modification exists when the parties to a contract approve a change in the scope or price of a contract. Contracts are often modified for changes in contract specifications or requirements. Most of the company’s contract modifications are for goods or services that are not distinct in the context of the contract and are therefore accounted for as part of the original performance obligation through a cumulative estimate-at-completion (EAC) adjustment. The company recognizes revenue as control is transferred to the customer, either over time or at a point in time. In general, our U.S. government contracts contain termination for convenience clauses that generally entitle the customer to goods produced and/or in-process. Similarly, our non-U.S. government contracts generally contain contractual termination clauses or entitle the company to payment for work performed to date for goods and services that do not have an alternative use. As control is effectively transferred as we perform on our contracts and we are typically entitled to cost plus a reasonable margin for work in process if the contract is terminated for convenience, we generally recognize revenue over time on a cost-to-cost basis (cost incurred relative to total cost estimated at completion) as the company believes this represents the most appropriate measurement towards satisfaction of its performance obligations. Revenue for contracts in which the control of goods produced does not transfer until delivery to the customer is recognized at a point in time (i.e. typically upon delivery). Use of the cost-to-cost method requires us to make reasonably dependable estimates regarding the revenue and cost associated with the design, manufacture and delivery of our products and services. The company estimates profit on these contracts as the difference between total estimated sales and total estimated cost at completion and recognizes that profit as costs are incurred. Significant judgment is used to estimate total revenue and cost at completion. Contract sales may include estimates of variable consideration, including cost or performance incentives (such as award and incentive fees), contract claims and requests for equitable adjustment (REAs). Variable consideration is included in total estimated sales to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. We estimate variable consideration at the most likely amount to which we expect to be entitled. We recognize changes in estimated contract sales or costs and the resulting changes in contract profit on a cumulative basis. Cumulative EAC adjustments represent the cumulative effect of the changes on current and prior periods; sales and operating margins in future periods are recognized as if the revised estimates had been used since contract inception. If it is determined that a loss is expected to result on an individual performance obligation, the entire amount of the estimable future loss, including an allocation of general and administrative (G&A) costs, is charged against income in the period the loss is identified. Each loss provision is first offset against costs included in unbilled accounts receivable or inventoried costs; remaining amounts are reflected in other current liabilities. Significant EAC adjustments on a single contract could have a material effect on the company’s financial statements. For each of the company’s contracts, the timing of revenue recognition, customer billings, and cash collections results in a net contract asset or liability at the end of each reporting period. Fixed-price contracts are typically billed to the customer either using progress payments, whereby amounts are billed monthly as costs are incurred or work is completed, or performance based payments, which are based upon the achievement of specific, measurable events or accomplishments defined and valued at contract inception. Cost-type contracts are typically billed to the customer on a monthly or semi-monthly basis. Contract assets consist of unbilled receivables, primarily related to long-term contracts where revenue recognized under the cost-to-cost method exceeds amounts billed to customers. Unbilled receivables are classified as current assets and, in accordance with industry practice, include amounts that may be billed and collected beyond one year due to the long-cycle nature of many of our contracts. Accumulated contract costs in unbilled receivables include direct production costs, factory and engineering overhead, production tooling costs, and allowable G&A. Unbilled receivables also include certain estimates of variable consideration described above. These contract assets are not considered a significant financing component of the company’s contracts as the payment terms are intended to protect the customer in the event the company does not perform on its obligations under the contract. Contract liabilities include advance payments and billings in excess of revenue recognized. Certain customers make advance payments prior to the satisfaction of the company’s obligations on the contract. These amounts are recorded as contract liabilities until such obligations are satisfied, either over time as costs are incurred or at a point in time when deliveries are made. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements.
Description of New Accounting Pronouncements Not yet Adopted	On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU 2016-02 supersedes existing lease guidance, including ASC 840 - Leases . Among other things, ASU 2016-02 requires recognition of a right-of-use asset and liability for future lease payments for contracts that meet the definition of a lease and requires disclosure of certain information about leasing arrangements. ASU 2016-02 will be effective January 1, 2019, although early adoption is permitted, and may be adopted using a modified retrospective transition method that applies the new lease requirements at the beginning of the earliest period presented in the financial statements. The FASB has proposed a change that would allow a company to elect an optional transition method that applies the new lease requirements through a cumulative-effect adjustment in the period of adoption. We expect to adopt the standard on January 1, 2019 using the proposed optional transition method if finalized in its current form. As a result of the Merger, we are currently reevaluating the expected impact of ASU 2016-02 on the company’s consolidated financial position and financial statement disclosures. We do not expect ASU 2016-02 to have a material impact on our annual results of operations and/or cash flows.
Pension and Other Postretirement Plans	Net actuarial gains or losses are redetermined annually or upon remeasurement events and principally arise from changes in the interest rate used to discount our benefit obligations and differences between expected and actual returns on plan assets. We fund our defined benefit pension plans annually in a manner consistent with the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006
Earnings Per Share	Diluted earnings per share primarily include the dilutive effect of awards granted to employees under stock-based compensation plans. We calculate basic earnings per share by dividing net earnings by the weighted-average number of shares of common stock outstanding during each period.
Investments in Marketable Securities	The company holds a portfolio of marketable securities consisting of securities to partially fund non-qualified employee benefit plans. A portion of these securities are held in common/collective trust funds and are measured at fair value using net asset value (NAV) per share as a practical expedient; and therefore are not required to be categorized in the fair value hierarchy table
Derivative Financial Instruments and Hedging Activities	Commodity derivatives are valued based on prices of future exchanges and recently reported transactions in the marketplace. For foreign currency forward contracts, where model-derived valuations are appropriate, the company utilizes the income approach to determine the fair value and uses the applicable London Interbank Offered Rate (LIBOR) swap rates.
Goodwill and Intangible Assets, Policy [Policy Text Block]	Purchased intangible asset balances are included in the identifiable assets of their assigned business segment. Beginning in 2018, the company includes the amortization of purchased intangible assets in unallocated corporate expense within operating income as such amortization is no longer considered part of management’s evaluation of segment operating performance. The company’s customer-related intangible assets are amortized over their respective useful lives based on the pattern in which the future economic benefits of the intangible assets are expected to be consumed. Other purchased intangible assets are amortized on a straight-line basis. The company’s purchased intangible assets are being amortized over an aggregate weighted-average period of 12 years.
Fair Value of Long-term Debt	We calculated the fair value of long-term debt using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the company’s existing debt arrangements.
U.S. Government Cost Claims	From time to time, the company is advised of claims by the U.S. government concerning certain potential disallowed costs, plus, at times, penalties and interest. When such findings are presented, the company and U.S. government representatives engage in discussions to enable the company to evaluate the merits of these claims, as well as to assess the amounts being claimed. Where appropriate, provisions are made to reflect the company’s estimated exposure for such potential disallowed costs. Such provisions are reviewed periodically using the most recent information available.
Environmental Matters	These amounts are evaluated for recoverability on a routine basis.
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	On January 5, 2016, the FASB issued ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 requires equity investments that are not accounted for under the equity method of accounting or that do not result in consolidation of the investee to be measured at fair value with changes recognized in net earnings. ASU 2016-01 also eliminates the available-for-sale classification for equity investments that recognized changes in fair value as a component of other comprehensive income. We adopted ASU 2016-01 on January 1, 2018 using the modified retrospective method, which resulted in a $4 million (net of tax) cumulative-effect adjustment from accumulated other comprehensive loss to retained earnings. Adoption of ASU 2016-01 did not have a material impact on our results of operations and/or cash flows. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . Topic 606 supersedes previous revenue recognition guidance, including ASC 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts , and outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP. Among other things, it requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time. The primary impact of the adoption of ASC Topic 606 was that, in most cases, the accounting for those contracts where we previously recognized revenue as units were delivered changed under ASC Topic 606 such that we now recognize revenue as costs are incurred. In addition, for certain of our contracts, there is a change in the number of performance obligations under ASC Topic 606, which has altered the timing of revenue and margin recognition. We adopted ASC Topic 606 on January 1, 2018 using the full retrospective method. We applied the transition practical expedient related to remaining performance obligations for reporting periods presented before the date of initial application. No other practical expedients were applied. The cumulative effect of adopting ASC Topic 606 was a $148 million increase to retained earnings at January 1, 2016. See Note 12 for information regarding the effect of adopting ASC Topic 606 on our unaudited condensed consolidated statement of earnings and comprehensive income for the three and six months ended June 30, 2017 and unaudited condensed consolidated statement of financial position as of December 31, 2017. On February 14, 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ASU 2018-02 allows companies to reclassify stranded tax effects resulting from the 2017 Tax Act from accumulated other comprehensive income to retained earnings. As described above, the company elected to early adopt ASU 2018-02 on January 1, 2018, which resulted in a reclassification of $1.1 billion of stranded tax effects, principally related to our unamortized benefit plan costs, from accumulated other comprehensive loss to retained earnings. This reclassification included $73 million of other income tax effects related to a reduction in the federal benefit associated with state taxes. Adoption of ASU 2018-02 did not have a material impact on the company’s results of operations and/or cash flows. On March 10, 2017, the FASB issued ASU No. 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 requires employers that sponsor defined benefit pension and/or other post-retirement benefit plans to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Employers are required to present the other components of net benefit costs in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component of net periodic pension cost is eligible for asset capitalization. We adopted ASU 2017-07 on January 1, 2018 using the retrospective method. See Note 12 for information regarding the effect of adopting ASU 2017-07 on our unaudited condensed consolidated statement of earnings and comprehensive income for the three and six months ended June 30, 2017. Adoption of ASU 2017-07 did not have a material impact on our consolidated statements of financial position and/or cash flows.

Basis of Presentation (Unaudi20

Basis of Presentation (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Change in Accounting Estimate [Table Text Block]	The following table presents the effect of aggregate net EAC adjustments: Three Months Ended June 30 Six Months Ended June 30 $ in millions, except per share data 2018 2017 2018 2017 Operating Income $ 143 $ 102 $ 259 $ 243 Net Earnings (1) 113 66 205 158 Diluted earnings per share (1) 0.64 0.38 1.17 0.90 (1) Based on statutory tax rates in effect for each period presented.
Contract with Customer, Asset and Liability [Table Text Block]	Net contract assets (liabilities) are as follows: $ in millions June 30, December 31, $ Change % Change Unbilled receivables, net $ 5,272 $ 3,465 $ 1,807 52 % Advance payments and amounts in excess of costs incurred (1,711 ) (1,761 ) 50 (3 )% Net contract assets (liabilities) $ 3,561 $ 1,704 $ 1,857 109 %
Accumulated Other Comprehensive Loss	The components of accumulated other comprehensive loss are as follows: $ in millions June 30, December 31, Unamortized benefit plan costs, net of tax benefit of $1,940 for 2018 and $3,056 for 2017 $ (5,474 ) $ (4,586 ) Cumulative translation adjustment (138 ) (136 ) Other, net (4 ) 4 Total accumulated other comprehensive loss $ (5,616 ) $ (4,718 )

Business Acquisition (Unaudit21

Business Acquisition (Unaudited) Business Acquisition (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	The Merger date fair value of the consideration transferred totaled $7.7 billion in cash, which was comprised of the following: ($ in millions, except per share amounts) Purchase price Shares of Orbital ATK common stock outstanding as of the Merger date 57,562,152 Cash consideration per share of Orbital ATK common stock $ 134.50 Total purchase price $ 7,742
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	The following preliminary purchase price allocation table presents the company’s initial estimate of the fair values of assets acquired and liabilities assumed at the Merger date: ($ in millions) As of June 6, 2018 Cash and cash equivalents $ 85 Accounts receivable, net 616 Unbilled receivables, net 1,237 Inventoried costs, net 220 Other current assets 193 Property, plant and equipment 1,500 Goodwill 6,295 Intangible assets 1,305 Deferred tax assets (230 ) Other non-current assets 131 Total assets acquired 11,352 Trade accounts payable (397 ) Accrued employee compensation (158 ) Advance payments and amounts in excess of costs incurred (222 ) Below market contracts (1) (155 ) Other current liabilities (298 ) Long-term debt (1,687 ) Pension and other post-retirement benefit plan liabilities (557 ) Other non-current liabilities (136 ) Total liabilities assumed (3,610 ) Total purchase price $ 7,742 (1) Included in Other current liabilities.
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]	The following table presents a preliminary summary of purchased intangible assets and their related estimated useful lives: Fair Value (in millions) Estimated Useful Life in Years Customer contracts $ 1,040 9 Commercial customer relationships 265 13 Total customer-related intangible assets $ 1,305
Business Acquisition, Pro Forma Information [Table Text Block]	The following table presents unaudited pro forma financial information as if Orbital ATK had been included in our results as of January 1, 2017: Three Months Ended June 30 Six Months Ended June 30 ($ in millions, except per share amounts) 2018 2017 2018 2017 Sales $ 8,078 $ 7,555 $ 16,078 $ 15,039 Net earnings 791 572 1,615 1,225 Basic earnings per share 4.53 3.28 9.26 7.01 Diluted earnings per share 4.51 3.26 9.21 6.97

Earnings Per Share, Share Rep22

Earnings Per Share, Share Repurchases and Dividends on Common Stock (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Share Repurchases	The table below summarizes the company’s share repurchases to date under the authorizations described above: Shares Repurchased Repurchase Program Amount Total Average (1) Date Completed Six Months Ended June 30 2018 2017 September 16, 2015 $ 4,000 7.6 $ 224.82 0.2 1.5 (1) Includes commissions paid.

Income Taxes (Unaudited) (Table

Income Taxes (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense and Effective Income Tax Rates	Three Months Ended June 30 Six Months Ended June 30 $ in millions 2018 2017 2018 2017 Federal and foreign income tax expense $ 160 $ 257 $ 292 $ 395 Effective income tax rate 18.8 % 31.7 % 17.0 % 24.7 %

Goodwill and Other Purchased 24

Goodwill and Other Purchased Intangible Assets (Unaudited) Goodwill and Other Purchased Intangible Assets (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Changes in the carrying amounts of goodwill were as follows: $ in millions Aerospace Systems Innovation Systems Mission Systems Technology Services Total Balance as of December 31, 2017 $ 3,742 $ — $ 6,696 $ 2,017 $ 12,455 Acquisition of Orbital ATK 418 5,329 469 79 6,295 Other (1) — — (1 ) (2 ) (3 ) Balance as of June 30, 2018 $ 4,160 $ 5,329 $ 7,164 $ 2,094 $ 18,747 (1) Other consists primarily of adjustments for foreign currency translation.
Schedule of Purchased Intangible Assets	Net customer-related and other intangible assets, including the preliminary fair value of purchased intangible assets acquired in the Merger, are as follows: June 30, December 31, 2017 $ in millions Gross customer-related and other intangible assets $ 3,138 $ 1,833 Less accumulated amortization (1,809 ) (1,781 ) Net customer-related and other intangible assets $ 1,329 $ 52
Expected Future Amortization of Purchased Intangibles	As of June 30, 2018 , the expected future amortization of purchased intangibles for each of the next five years is as follows: $ in millions 2018 (remainder of year) $ 162 2019 284 2020 232 2021 150 2022 105

Fair Value of Financial Instr25

Fair Value of Financial Instruments (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair value information of assets and liabilities measured at fair value on a recurring basis	The following table presents the financial assets and liabilities the company records at fair value on a recurring basis identified by the level of inputs used to determine fair value: June 30, 2018 December 31, 2017 $ in millions Level 1 Level 2 Total Level 1 Level 2 Total Financial Assets (Liabilities) Marketable securities $ 350 $ — $ 350 $ 352 $ 1 $ 353 Marketable securities valued using NAV — — 14 — — — Total marketable securities 350 — 364 352 1 353 Derivatives — (5 ) (5 ) — — —

Commitments and Contingencies26

Commitments and Contingencies (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Environmental Remediation Range of Future Costs [Line Items]
Environmental Remediation [Table Text Block]	The table below summarizes management’s estimate of the range of reasonably possible future costs for environmental remediation, the amount accrued within that range, and the deferred costs expected to be recoverable through overhead charges on U.S. government contracts as of June 30, 2018 and December 31, 2017 : $ in millions Range of Reasonably Possible Future Costs (1) Accrued Costs (2) Deferred Costs (3) June 30, 2018 $453 - $836 $ 463 $ 236 December 31, 2017 405 - 792 410 207 (1) Estimated remediation costs are not discounted to present value. The range of reasonably possible future costs does not take into consideration amounts expected to be recoverable through overhead charges on U.S. government contracts. (2) As of June 30, 2018 , $155 million is recorded in other current liabilities and $308 million is recorded in other non-current liabilities. (3) As of June 30, 2018 , $79 million is deferred in prepaid expenses and other current assets and $157 million is deferred in other non-current assets. These amounts are evaluated for recoverability on a routine basis.

Retirement Benefits (Unaudite27

Retirement Benefits (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
Components of net periodic benefit cost	The cost to the company of its retirement plans is shown in the following table: Three Months Ended June 30 Six Months Ended June 30 Pension Medical and Pension Medical and $ in millions 2018 2017 2018 2017 2018 2017 2018 2017 Components of net periodic benefit cost Service cost $ 100 $ 97 $ 5 $ 6 $ 199 $ 194 $ 10 $ 11 Interest cost 300 312 19 21 590 625 38 42 Expected return on plan assets (544 ) (472 ) (24 ) (23 ) (1,073 ) (943 ) (49 ) (45 ) Amortization of: Prior service credit (14 ) (14 ) (6 ) (6 ) (29 ) (29 ) (11 ) (11 ) Net loss from previous years 133 191 — 4 267 382 — 7 Net periodic benefit cost $ (25 ) $ 114 $ (6 ) $ 2 $ (46 ) $ 229 $ (12 ) $ 4
Employer contributions to retirement plans	Contributions made by the company to its retirement plans are as follows: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2018 2017 2018 2017 Defined benefit pension plans $ 23 $ 28 $ 45 $ 51 Medical and life benefit plans 11 13 22 24 Defined contribution plans 88 77 192 176

Stock Compensation Plans and 28

Stock Compensation Plans and Other Compensation Arrangements (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Nonvested Restricted Stock Shares Activity [Table Text Block]	The following table presents the number of restricted stock rights (RSRs) and restricted performance stock rights (RPSRs) granted to employees under the company's long-term incentive stock plan and the grant date aggregate fair value of those stock awards for the periods presented: Six Months Ended June 30 in millions 2018 2017 RSRs granted 0.1 0.1 RPSRs granted 0.2 0.3 Grant date aggregate fair value $ 114 $ 91
Cash Units and Cash Performance Units Aggregate Payout Amount [Table Text Block]	The following table presents the minimum and maximum aggregate payout amounts related to cash units (CUs) and cash performance units (CPUs) granted to employees in the periods presented: Six Months Ended June 30 $ in millions 2018 2017 Minimum aggregate payout amount $ 36 $ 35 Maximum aggregate payout amount 205 198

Segment Information (Unaudite29

Segment Information (Unaudited) (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Sales and operating income by segment	The following table presents sales and operating income by segment: Three Months Ended June 30 Six Months Ended June 30 $ in millions 2018 2017 2018 2017 Sales Aerospace Systems $ 3,337 $ 3,003 $ 6,617 $ 5,987 Innovation Systems 400 — 400 — Mission Systems 2,874 2,859 5,757 5,659 Technology Services 1,048 1,162 2,192 2,352 Intersegment eliminations (540 ) (551 ) (1,112 ) (1,115 ) Total sales 7,119 6,473 13,854 12,883 Operating income Aerospace Systems 357 320 698 643 Innovation Systems 39 — 39 — Mission Systems 352 384 723 743 Technology Services 95 125 217 254 Intersegment eliminations (64 ) (70 ) (136 ) (140 ) Total segment operating income 779 759 1,541 1,500 Net FAS (service)/CAS pension adjustment 137 154 264 308 Unallocated corporate expense (92 ) (39 ) (126 ) (71 ) Other (1 ) (1 ) (2 ) (2 ) Total operating income $ 823 $ 873 $ 1,677 $ 1,735
Revenue by Major Customers by Reporting Segments	Sales by Customer Type Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 $ in millions $ % (3) $ % (3) $ % (3) $ % (3) Aerospace Systems U.S. Government (1) $ 2,799 84 % $ 2,616 87 % $ 5,707 86 % $ 5,169 86 % International (2) 449 13 % 272 9 % 720 11 % 581 10 % Other Customers 38 1 % 40 1 % 80 1 % 78 1 % Intersegment sales 51 2 % 75 3 % 110 2 % 159 3 % Aerospace Systems sales 3,337 100 % 3,003 100 % 6,617 100 % 5,987 100 % Innovation Systems U.S. Government (1) 265 66 % — — 265 66 % — — International (2) 92 23 % — — 92 23 % — — Other Customers 30 8 % — — 30 8 % — — Intersegment sales 13 3 % — — 13 3 % — — Innovation Systems sales 400 100 % — — 400 100 % — — Mission Systems U.S. Government (1) 2,155 75 % 2,227 78 % 4,345 76 % 4,413 78 % International (2) 391 14 % 353 12 % 770 13 % 707 12 % Other Customers 34 1 % 33 1 % 64 1 % 54 1 % Intersegment sales 294 10 % 246 9 % 578 10 % 485 9 % Mission Systems sales 2,874 100 % 2,859 100 % 5,757 100 % 5,659 100 % Technology Services U.S. Government (1) 597 57 % 672 58 % 1,199 54 % 1,308 56 % International (2) 193 18 % 168 14 % 413 19 % 377 16 % Other Customers 76 7 % 92 8 % 169 8 % 196 8 % Intersegment sales 182 18 % 230 20 % 411 19 % 471 20 % Technology Services sales 1,048 100 % 1,162 100 % 2,192 100 % 2,352 100 % Total U.S. Government (1) 5,816 82 % 5,515 85 % 11,516 83 % 10,890 84 % International (2) 1,125 16 % 793 12 % 1,995 15 % 1,665 13 % Other Customers 178 2 % 165 3 % 343 2 % 328 3 % Total Sales $ 7,119 100 % $ 6,473 100 % $ 13,854 100 % $ 12,883 100 % (1) Sales to the U.S. government include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is the U.S. government. Each of the company's segments derives substantial revenue from the U.S. government. (2) International sales include sales from contracts for which we are the prime contractor, as well as those for which we are a subcontractor and the ultimate customer is an international customer. These sales include foreign military sales contracted through the U.S. government, direct sales with governments outside the U.S. and commercial sales with customers outside the U.S. (3) Percentages calculated based on total segment sales.
Revenue from External Customers by Contract Type	Sales by Contract Type Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 $ in millions $ % (1) $ % (1) $ % (1) $ % (1) Aerospace Systems Cost-type $ 1,934 59 % $ 1,840 63 % $ 3,836 59 % $ 3,667 63 % Fixed-price 1,352 41 % 1,088 37 % 2,671 41 % 2,161 37 % Intersegment sales 51 75 110 159 Aerospace System sales 3,337 3,003 6,617 5,987 Innovation Systems Cost-type 99 26 % — — 99 26 % — — Fixed-price 288 74 % — — 288 74 % — — Intersegment sales 13 — 13 — Innovation System sales 400 — 400 — Mission Systems Cost-type 1,207 47 % 1,353 52 % 2,486 48 % 2,669 52 % Fixed-price 1,373 53 % 1,260 48 % 2,693 52 % 2,505 48 % Intersegment sales 294 246 578 485 Mission System sales 2,874 2,859 5,757 5,659 Technology Services Cost-type 385 44 % 404 43 % 822 46 % 849 45 % Fixed-price 481 56 % 528 57 % 959 54 % 1,032 55 % Intersegment sales 182 230 411 471 Technology Services sales 1,048 1,162 2,192 2,352 Total Cost-type 3,625 51 % 3,597 56 % 7,243 52 % 7,185 56 % Fixed-price 3,494 49 % 2,876 44 % 6,611 48 % 5,698 44 % Total Sales $ 7,119 $ 6,473 $ 13,854 $ 12,883 (1) Percentages calculated based on external customer sales.
Revenue from External Customers by Geographic Areas	Sales by Geographic Region Three Months Ended June 30 Six Months Ended June 30 2018 2017 2018 2017 $ in millions $ % (2) $ % (2) $ % (2) $ % (2) Aerospace Systems United States $ 2,837 86 % $ 2,656 91 % $ 5,787 89 % $ 5,247 90 % Asia/Pacific 249 8 % 157 5 % 378 6 % 345 6 % All other (1) 200 6 % 115 4 % 342 5 % 236 4 % Intersegment sales 51 75 110 159 Aerospace Systems sales 3,337 3,003 6,617 5,987 Innovation Systems United States 296 77 % — — 296 77 % — — Asia/Pacific 24 6 % — — 24 6 % — — All other (1) 67 17 % — — 67 17 % — — Intersegment sales 13 — 13 — Innovation Systems sales 400 — 400 — Mission Systems United States 2,193 85 % 2,261 86 % 4,413 85 % 4,468 86 % Asia/Pacific 160 6 % 155 6 % 313 6 % 309 6 % All other (1) 227 9 % 197 8 % 453 9 % 397 8 % Intersegment sales 294 246 578 485 Mission Systems sales 2,874 2,859 5,757 5,659 Technology Services United States 673 78 % 764 82 % 1,368 77 % 1,505 80 % Asia/Pacific 36 4 % 28 3 % 68 4 % 74 4 % All other (1) 157 18 % 140 15 % 345 19 % 302 16 % Intersegment sales 182 230 411 471 Technology Services sales 1,048 1,162 2,192 2,352 Total United States 5,999 84 % 5,681 88 % 11,864 85 % 11,220 87 % Asia/Pacific 469 7 % 340 5 % 783 6 % 728 6 % All other (1) 651 9 % 452 7 % 1,207 9 % 935 7 % Total Sales $ 7,119 100 % $ 6,473 100 % $ 13,854 100 % $ 12,883 100 % (1) All other principally comprised of Europe and Middle East. (2) Percentages calculated based on external customer sales.

Recast 2017 Financial Informa30

Recast 2017 Financial Information (Tables)	6 Months Ended
	Jun. 30, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	CONDENSED CONSOLIDATED STATEMENT OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended June 30, 2017 As Reported Effect of the Adoption of As Adjusted $ in millions, except per share amounts ASC Topic 606 ASU 2017-07 Sales Product $ 3,916 $ 121 $ — $ 4,037 Service 2,459 (23 ) — 2,436 Total sales 6,375 98 — 6,473 Operating costs and expenses Product 2,958 87 (8 ) 3,037 Service 1,896 (14 ) (5 ) 1,877 General and administrative expenses 666 20 — 686 Operating income 855 5 13 873 Other (expense) income Interest expense (76 ) — — (76 ) Net FAS (non-service) pension benefit (expense) — — (17 ) (17 ) Other, net 28 — 4 32 Earnings before income taxes 807 5 — 812 Federal and foreign income tax expense 255 2 — 257 Net earnings 552 3 — 555 Basic earnings per share $ 3.16 $ 0.02 $ — $ 3.18 Weighted-average common shares outstanding, in millions 174.5 — — 174.5 Diluted earnings per share $ 3.15 $ 0.01 $ — $ 3.16 Weighted-average diluted shares outstanding, in millions 175.5 — — 175.5 Net earnings (from above) $ 552 $ 3 $ — $ 555 Other comprehensive income Change in unamortized benefit plan costs, net of tax 102 — — 102 Change in cumulative translation adjustment (4 ) — — (4 ) Other, net 1 — — 1 Other comprehensive income, net of tax 99 — — 99 Comprehensive income $ 651 $ 3 $ — $ 654 CONDENSED CONSOLIDATED STATEMENT OF EARNINGS AND COMPREHENSIVE INCOME (Unaudited) Six Months Ended June 30, 2017 As Reported Effect of the Adoption of As Adjusted $ in millions, except per share amounts ASC Topic 606 ASU 2017-07 Sales Product $ 7,750 $ 284 $ — $ 8,034 Service 4,892 (43 ) — 4,849 Total sales 12,642 241 — 12,883 Operating costs and expenses Product 5,829 208 (17 ) 6,020 Service 3,783 (28 ) (11 ) 3,744 General and administrative expenses 1,343 41 — 1,384 Operating income 1,687 20 28 1,735 Other (expense) income Interest expense (151 ) — — (151 ) Net FAS (non-service) pension benefit (expense) — — (35 ) (35 ) Other, net 44 — 7 51 Earnings before income taxes 1,580 20 — 1,600 Federal and foreign income tax expense 388 7 — 395 Net earnings 1,192 13 — 1,205 Basic earnings per share $ 6.82 $ 0.08 $ — $ 6.90 Weighted-average common shares outstanding, in millions 174.7 — — 174.7 Diluted earnings per share $ 6.78 $ 0.07 $ — $ 6.85 Weighted-average diluted shares outstanding, in millions 175.8 — — 175.8 Net earnings (from above) $ 1,192 $ 13 $ — $ 1,205 Other comprehensive income Change in unamortized benefit plan costs, net of tax 201 — — 201 Change in cumulative translation adjustment — — — — Other, net 3 — — 3 Other comprehensive income, net of tax 204 — — 204 Comprehensive income $ 1,396 $ 13 $ — $ 1,409 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited) December 31, 2017 As Reported Effect of the Adoption of As Adjusted $ in millions ASC Topic 606 ASU 2017-07 Assets Cash and cash equivalents $ 11,225 $ — $ — $ 11,225 Accounts receivable, net 829 225 — 1,054 Unbilled receivables, net 3,147 318 — 3,465 Inventoried costs, net 780 (382 ) — 398 Prepaid expenses and other current assets 368 77 — 445 Total current assets 16,349 238 — 16,587 Property, plant and equipment, net of accumulated depreciation of $5,066 for 2017 4,225 — — 4,225 Goodwill 12,455 — — 12,455 Deferred tax assets 475 (28 ) — 447 Intangible assets, net 52 — — 52 Other non-current assets 1,361 1 — 1,362 Total assets $ 34,917 $ 211 $ — $ 35,128 Liabilities Trade accounts payable $ 1,661 $ — $ — $ 1,661 Accrued employee compensation 1,382 — — 1,382 Advance payments and amounts in excess of costs incurred 1,617 144 — 1,761 Other current liabilities 2,305 (17 ) — 2,288 Total current liabilities 6,965 127 — 7,092 Long-term debt, net of current portion of $867 for 2017 14,399 — — 14,399 Pension and other post-retirement benefit plan liabilities 5,511 — — 5,511 Other non-current liabilities 994 — — 994 Total liabilities 27,869 127 — 27,996 Commitments and contingencies (Note 8) Shareholders’ equity Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding — — — — Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2017—174,085,619 174 — — 174 Paid-in capital 44 — — 44 Retained earnings 11,548 84 — 11,632 Accumulated other comprehensive loss (4,718 ) — — (4,718 ) Total shareholders’ equity 7,048 84 — 7,132 Total liabilities and shareholders’ equity $ 34,917 $ 211 $ — $ 35,128

Basis of Presentation (Unaudi31

Basis of Presentation (Unaudited) (Details 1) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Change in Accounting Estimate [Line Items]
Contract with Customer, Performance Obligation Satisfied in Previous Period	$ 156	$ 101	$ 289	$ 246
Operating income	823	873	1,677	1,735
Net earnings	$ 689	$ 555	$ 1,428	$ 1,205
Earnings Per Share, Diluted	$ 3.93	$ 3.16	$ 8.14	$ 6.85
Contracts Accounted for under Percentage of Completion [Member]
Change in Accounting Estimate [Line Items]
Operating income	$ 143	$ 102	$ 259	$ 243
Net earnings	$ 113	$ 66	$ 205	$ 158
Earnings Per Share, Diluted	$ 0.64	$ 0.38	$ 1.17	$ 0.90
Aerospace Systems [Member] | Contracts Accounted for under Percentage of Completion [Member]
Change in Accounting Estimate [Line Items]
Operating income	$ 69

Basis of Presentation (Unaudi32

Basis of Presentation (Unaudited) (Details 2) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation	$ 52,200
Innovation Systems Remaining Performance Obligations	8,700
Intercompany backlog eliminated at acquisition	$ 500
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation	We expect to recognize approximately 50 percent and 75 percent of our June 30, 2018 backlog as revenue over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter.

Basis of Presentation (Unaudi33

Basis of Presentation (Unaudited) (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Change in Contract with Customer, Asset and Liability [Abstract]
Unbilled receivables, net	$ 5,272		$ 5,272		$ 3,465
Amount of increase (decrease) in Unbilled Receivables			$ 1,807
Percent increase (decrease) in Unbilled Receivables			52.00%
Advance payments and amounts in excess of costs incurred	(1,711)		$ (1,711)		(1,761)
Amount of decrease (increase) in Customer Advances			$ 50
Percent decrease (increase) in Customer Advances			(3.00%)
Net contract assets (liabilities)	3,561		$ 3,561		$ 1,704
Amount of increase (decrease) in net contract assets (liabilities)			$ 1,857
Percent increase (decrease) in net contract assets (liabilities)			109.00%
Innovation Systems net contract assets	1,100		$ 1,100
Change in Contract with Customer, Liability [Abstract]
Contract with Customer, Liability, Revenue Recognized	$ 364	$ 272	$ 1,100	$ 850

Basis of Presentation (Unaudi34

Basis of Presentation (Unaudited) (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017	Jan. 01, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Pro Forma Adjustments, Additional depreciation expense, net of removal of historical depreciation	$ (7)	$ (8)	$ (7)	$ (10)
Unamortized benefit plan costs, net of tax benefit of $1,940 for 2018 and $3,056 for 2017	5,474		5,474			$ 4,586
Accumulated Other Comprehensive Loss
Cumulative translation adjustment	(138)		(138)			(136)
Other, net	(4)		(4)			4
Total accumulated other comprehensive loss	(5,616)		(5,616)			(4,718)
Unamortized benefit plan costs - Tax Benefit (expense)	1,940		1,940			3,056
Unamortized benefit plan costs, net actuarial losses, after-tax	5,600		5,600			4,700
Unamortized benefit plan costs, reclassified from other comprehensive income to net earnings	$ 86	$ 100	$ 172	$ 199
Restatement Adjustment [Member] | Accounting Standards Update 2018-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect Of New Accounting Principle In Period Of Adoption					$ 1,100
Tax Cuts and Job Act, Income Tax Expense (Benefit)					73
Restatement Adjustment [Member] | Accounting Standards Update 2016-01 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect Of New Accounting Principle In Period Of Adoption					$ 4
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect Of New Accounting Principle In Period Of Adoption							$ 148
Accumulated Other Comprehensive Loss
Total accumulated other comprehensive loss						$ 0

Business Acquisition (Unaudit35

Business Acquisition (Unaudited) (Details 1) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Revenue, Net	$ 7,119	$ 6,473	$ 13,854	$ 12,883
Operating income	823	873	1,677	1,735
Net earnings	689	555	1,428	1,205
Business Combination, Acquisition Related Costs	23		29
Operating Segments [Member]
Business Acquisition [Line Items]
Operating income	779	759	1,541	1,500
Operating Segments [Member] | Innovation Systems [Member]
Business Acquisition [Line Items]
Revenue, Net	400	0	400	0
Operating income	39	$ 0	39	$ 0
Net earnings	$ 30		$ 30

Business Acquisition (Unaudit36

Business Acquisition (Unaudited) (Details 2) - USD ($) $ / shares in Units, $ in Millions	Jun. 06, 2018	Jun. 30, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill		$ 18,747	$ 12,455
Shares of Orbital ATK common stock outstanding as of the Merger date	57,562,152
Cash consideration per share of Orbital ATK common stock	$ 134.50
Total purchase price	$ 7,742
Orbital ATK [Member]
Business Acquisition [Line Items]
Cash and cash equivalents	85
Accounts receivable, net	616
Unbilled receivables, net	1,237
Inventoried costs, net	220
Other current assets	193
Property, plant, and equipment	1,500
Goodwill	6,295
Intangible assets	1,305
Deferred tax assets	(230)
Other non-current assets	131
Total assets acquired	11,352
Trade accounts payable	(397)
Accrued employee compensation	(158)
Advance payments and amounts in excess of costs incurred	(222)
Below market contracts	(155)
Other current liabilities	(298)
Long-term debt	(1,687)
Pension and other post-retirement benefit plan liabilities	(557)
Other non-current liabilities	(136)
Total liabilities assumed	(3,610)
Total purchase price	$ 7,742

Business Acquisition (Unaudit37

Business Acquisition (Unaudited) (Details 3) - USD ($) $ in Millions	Jun. 06, 2018	Jun. 30, 2018
Business Acquisition [Line Items]
Business Combination, Below Market Contracts, reduction in sales for 2018	$ 52
Business Combination, Below Market Contracts, reduction in sales for 2019	70
Business Combination, Below Market Contracts, reduction in sales for 2020	32
Business Combination, Below Market Contracts, reduction in sales for 2021	1
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		12 years
Orbital ATK [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	1,305
Customer Contracts [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 1,040
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	9 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 265
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	13 years

Business Acquisition (Unaudit38

Business Acquisition (Unaudited) (Details 4) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Pro forma sales	$ 8,078	$ 7,555	$ 16,078	$ 15,039
Pro forma net earnings	$ 791	$ 572	$ 1,615	$ 1,225
Pro forma basic earnings per share	$ 4.53	$ 3.28	$ 9.26	$ 7.01
Pro forma diluted earnings per share	$ 4.51	$ 3.26	$ 9.21	$ 6.97
Pro Forma Adjustments, Orbital ATK ASC606 Sales adjustment		$ 2		$ 21
Pro Forma Adjustments, Orbital ATK ASC606 Cost of Sales adjustment		(2)		(9)
Pro Forma Adjustments, Orbital ATK intercompany sales elimination	$ (33)	(35)	$ (80)	(65)
Pro Forma Adjustments, Orbital ATK intercompany cost of sales elimination	33	35	80	65
Pro Forma Adjustments, Elimination of nonrecurring transaction costs	64		71
Pro Forma Adjustments, Additional depreciation expense, net of removal of historical depreciation	(7)	(8)	(7)	(10)
Pro Forma Adjustments, Additional interest expense due to debt issued to finance merger		(66)		(133)
Pro Forma Adjustments, Additional amortization expense, net of removal of historical amortization expense	(34)	(65)	(92)	(130)
Pro Forma Adjustments, Elimination of Orbital ATK’s amortization on net actuarial losses and prior service costs and pension/post-retirement costs	$ 20	$ 29	$ 51	$ 54

Earnings Per Share, Share Rep39

Earnings Per Share, Share Repurchases and Dividends on Common Stock (Unaudited) (Details 1) - September 2015 Share Repurchase Program Original Authorization - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended		27 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Sep. 16, 2015
Share Repurchase [Line Items]
Amount Authorized				$ 4,000
Shares Retired			7.6
Average Cost Per Share			$ 224.82
Shares Repurchased	0.2	1.5
Share Repurchases - Notes to Table
Shares repurchased amount			$ 1,700
Amount remaining under authorization for share repurchases	$ 2,300		$ 2,300

Earnings Per Share, Share Rep40

Earnings Per Share, Share Repurchases and Dividends on Common Stock (Unaudited) (Details 2) - $ / shares shares in Millions	1 Months Ended				3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jan. 31, 2018	May 31, 2017	May 31, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share, Basic and Diluted [Abstract]
Dilutive effect of of stock awards and options granted to employees under stock-based compensation plans					0.9	1	1	1.1
Common stock dividends per share, declared (in dollars per share)	$ 1.20	$ 1.10	$ 1	$ 0.90			$ 2.30	$ 1.90
Increase in quarterly common stock dividend (percent)	9.00%	10.00%	11.00%

Income Taxes (Unaudited) (Detai

Income Taxes (Unaudited) (Details 1) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2019	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal and foreign income tax expense		$ 160	$ 257	$ 292	$ 395
Effective income tax rate		18.80%	31.70%	17.00%	24.70%
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				21.00%			35.00%
Effective Income Tax Rate Reconciliation, Increase in Research Tax Credits		$ (22)
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount				$ (26)	$ (47)
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount					(42)
Income Tax Reconciliation, Deduction, Increase in Qualified Production Activity					$ (31)
Income Tax Contingency [Line Items]
Decrease in Unrecognized Tax Benefits is Reasonably Possible	$ 115	115		115
Unrecognized Tax Benefits, Increase Resulting from Acquisition	150
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions		50
Increase in Unrecognized Tax Benefits resulting from 2017 Tax Act is Reasonably Possible	100	100		100
Scenario, Forecast [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Tax Adjustments, Settlements, and Unusual Provisions						$ (30)
Innovation Systems [Member]
Income Tax Contingency [Line Items]
Decrease in Unrecognized Tax Benefits is Reasonably Possible	$ 35	$ 35		$ 35
Innovation Systems [Member] | Scenario, Forecast [Member] | Maximum [Member]
Income Tax Contingency [Line Items]
Tax Adjustments, Settlements, and Unusual Provisions						$ (30)

Goodwill and Other Purchased 42

Goodwill and Other Purchased Intangible Assets (Unaudited) Goodwill and Other Purchased Intangible Assets (Unaudited) (Details 1) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill [Line Items]
Beginning Balance	$ 12,455
Acquisition of Orbital ATK	6,295
Other	(3)
Ending Balance	18,747
Aerospace Systems [Member]
Goodwill [Line Items]
Beginning Balance	3,742
Acquisition of Orbital ATK	418
Other	0
Ending Balance	4,160
Innovation Systems [Member]
Goodwill [Line Items]
Beginning Balance	0
Acquisition of Orbital ATK	5,329
Other	0
Ending Balance	5,329
Mission Systems [Member]
Goodwill [Line Items]
Beginning Balance	6,696
Acquisition of Orbital ATK	469
Other	(1)
Ending Balance	7,164
Technology Services [Member]
Goodwill [Line Items]
Beginning Balance	2,017
Acquisition of Orbital ATK	79
Other	(2)
Ending Balance	$ 2,094

Goodwill and Other Purchased 43

Goodwill and Other Purchased Intangible Assets (Unaudited) Goodwill and Other Purchased Intangible Assets (Unaudited) (Details 2) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Gross customer-related and other intangible assets	$ 3,138	$ 1,833
Less accumulated amortization	(1,809)	(1,781)
Net customer-related and other intangible assets	$ 1,329	$ 52

Goodwill and Other Purchased 44

Goodwill and Other Purchased Intangible Assets (Unaudited) Goodwill and Other Purchased Intangible Assets (Unaudited) (Details 3) $ in Millions	Jun. 30, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018 (remainder of year)	$ 162
2,019	284
2,020	232
2,021	150
2,022	$ 105

Goodwill and Other Purchased 45

Goodwill and Other Purchased Intangible Assets (Unaudited) Goodwill and Other Purchased Intangible Assets (Unaudited) (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Goodwill [Line Items]
Amortization of Intangible Assets	$ 24	$ 3	$ 28	$ 7
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			12 years
Aerospace Systems [Member]
Goodwill [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss	$ 570		$ 570		$ 570

Fair Value of Financial Instr46

Fair Value of Financial Instruments (Unaudited) (Details 1) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	$ 364	$ 353
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	350	352
Derivatives	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	0	1
Derivatives	(5)	0
Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	350	353
Derivatives	(5)	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	350	352
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	0	1
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	$ 14	$ 0

Fair Value of Financial Instr47

Fair Value of Financial Instruments (Unaudited) (Details 2) lb in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)lb	Dec. 31, 2017USD ($)
Copper [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | lb	17
Zinc [Member] [Domain]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative, Nonmonetary Notional Amount, Mass | lb	6
Foreign Exchange Forward [Member]
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative, Notional Amount | $	$ 114	$ 89
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative, Notional Amount | $	$ 4	$ 8

Fair Value of Financial Instr48

Fair Value of Financial Instruments (Unaudited) Fair Value of Financial Instruments (Unaudited) (Details 3) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 06, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Long-term Debt, Fair Value	$ 15,100		$ 16,000
Debt and Capital Lease Obligations	15,100		$ 15,300
Orbital ATK [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		$ 1,687
Orbital ATK [Member] | Senior Notes [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	700
2021 Maturity [Domain] | Senior Notes [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	$ 300
Debt Instrument, Interest Rate, Stated Percentage	5.25%
2023 Maturity [Domain] | Senior Notes [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	$ 400
Debt Instrument, Interest Rate, Stated Percentage	5.50%

Investigations, Claims and Li49

Investigations, Claims and Litigation (Unaudited) (Details) € in Millions, R$ in Millions, $ in Millions	2 Months Ended	12 Months Ended	57 Months Ended		59 Months Ended		61 Months Ended
	Sep. 30, 2013Defendant	Dec. 31, 2007USD ($)	Jun. 30, 2018EUR (€)	Jun. 30, 2018USD ($)	Jun. 30, 2018BRL (R$)	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Feb. 16, 2018USD ($)	Dec. 31, 2017USD ($)	May 04, 2012USD ($)
Loss Contingencies
Unbilled receivables, net				$ 5,272		$ 5,272	$ 5,272		$ 3,465
Solystic Matter [Member]
Loss Contingencies
Loss Contingency, Damages Sought, Value					R$ 111	29
Counterclaim			€ 31	36
Unpaid Portions of Contract Price and Direct Costs Incurred [Member] | United States Postal Service
Loss Contingencies
Unbilled receivables, net										$ 63
Acts and Omissions with Adverse Affects on Performance and Obligations [Member] | United States Postal Service
Loss Contingencies
Gain contingency, unrecorded amount										$ 115
United States Postal Service
Loss Contingencies
Contract award		$ 875
United States Postal Service | False Claims Act | Threatened Litigation
Loss Contingencies
Loss Contingency, Damages Sought, Value							179
Solystic Matter [Member] | Solystic Matter [Member]
Loss Contingencies
Loss Contingency, Number of Additional Defendants | Defendant	2
Initial Claim [Member] | Solystic Matter [Member]
Loss Contingencies
Loss Contingency, Damages Sought, Value					89	23
Incremental claim [Member] | Solystic Matter [Member]
Loss Contingencies
Loss Contingency, Damages Sought, Value					R$ 22	6
Maximum | United States Postal Service
Loss Contingencies
Loss Contingency, Estimate of Possible Loss				$ 410		$ 410	$ 410
Updated claim [Member] | United States Postal Service
Loss Contingencies
Loss Contingency, Estimate of Possible Loss								$ 193

Commitments and Contingencies50

Commitments and Contingencies (Unaudited) (Details) £ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)Rate	Jun. 30, 2017USD ($)	Jun. 30, 2018GBP (£)Rate	Jun. 30, 2018USD ($)Rate	Dec. 31, 2017USD ($)
Site Contingency [Line Items]
Accrual for Environmental Remediation Costs						$ 463,000,000	$ 410,000,000
Recorded Third-Party Environmental Recoveries, Amount						236,000,000	207,000,000
Financial Arrangements
Standby Unused Letters Of Credit and bank guarantees						395,000,000
Surety Bond Outstanding						211,000,000
Operating leases
Rental expense for operating leases, net of immaterial amounts of sublease rental income	$ 81,000,000	$ 65,000,000	$ 173,000,000	$ 154,000,000
Line of Credit Facility [Line Items]
Debt Instrument, Covenant Compliance			the company was in compliance with all covenants under its credit agreements.
Short Term Debt, Maximum Borrowing Capacity						750,000,000
Debt Instrument, Term			90 days
Commercial Paper						$ 249,000,000
Short-term Debt, Weighted Average Interest Rate, at Point in Time | Rate					2.46%	2.46%
Two Year Term [Member] [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					£ 120	$ 159,000,000
Line of Credit Outstanding					£ 90	119,000,000
Five Year Term [Member] [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						1,600,000,000
Line of Credit Outstanding						0
Other Current Liabilities [Member]
Site Contingency [Line Items]
Accrual for Environmental Remediation Costs						155,000,000
Other Noncurrent Liabilities [Member]
Site Contingency [Line Items]
Accrual for Environmental Remediation Costs						308,000,000
Other Current Assets [Member]
Site Contingency [Line Items]
Recorded Third-Party Environmental Recoveries, Amount						79,000,000
Other Noncurrent Assets [Member]
Site Contingency [Line Items]
Recorded Third-Party Environmental Recoveries, Amount						157,000,000
London Interbank Offered Rate (LIBOR) [Member] | Two Year Term [Member] [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate During Period | Rate			1.10%
Environmental Issue [Member] | Maximum
Site Contingency [Line Items]
Loss Contingency, Estimate of Possible Loss						836,000,000	792,000,000
Environmental Issue [Member] | Minimum
Site Contingency [Line Items]
Loss Contingency, Estimate of Possible Loss						$ 453,000,000	$ 405,000,000

Retirement Benefits (Unaudite51

Retirement Benefits (Unaudited) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Contribution Plan [Abstract]
Defined contribution plan, employer contributions	$ 88	$ 77	$ 192	$ 176
Pension Benefits
Components of Net Periodic Benefit Cost
Service cost	100	97	199	194
Interest cost	300	312	590	625
Expected return on plan assets	(544)	(472)	(1,073)	(943)
Prior service credit	(14)	(14)	(29)	(29)
Net loss from previous years	133	191	267	382
Net periodic benefit cost	(25)	114	(46)	229
Defined benefit plan, contributions by Employer	23	28	45	51
Medical and Life Benefits
Components of Net Periodic Benefit Cost
Service cost	5	6	10	11
Interest cost	19	21	38	42
Expected return on plan assets	(24)	(23)	(49)	(45)
Prior service credit	(6)	(6)	(11)	(11)
Net loss from previous years	0	4	0	7
Net periodic benefit cost	(6)	2	(12)	4
Defined benefit plan, contributions by Employer	$ 11	13	$ 22	24
Defined Benefit Plan, Interest on Service Cost is reclassified to Interest Cost [Member] | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Prior Period Reclassification Adjustment		4		8
Defined Benefit Plan, Administrative Expenses of the Service Cost reclassified to Net Actuarial Loss [Member] | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Prior Period Reclassification Adjustment		13		26
Defined Benefit Plan, Administrative Expenses of the Service Cost reclassified to Net Actuarial Loss [Member] | Medical and Life Benefits
Defined Benefit Plan Disclosure [Line Items]
Prior Period Reclassification Adjustment		$ 1		$ 2

Stock Compensation Plans and 52

Stock Compensation Plans and Other Compensation Arrangements (Unaudited) (Details) - USD ($) shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Rights and Restricted Performance Stock Rights Grant Date Aggregate Fair Value	$ 114	$ 91
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	0.1	0.1
Vesting period	3 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	0.2	0.3
Vesting period	3 years
Cash Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Cash Performance Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Cash Units and Cash Performance Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred Compensation Cash-based Arrangements, Liability, Current and Noncurrent	$ 36	$ 35
Cash Units and Cash Performance Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred Compensation Cash-based Arrangements, Liability, Current and Noncurrent	$ 205	$ 198

Segment Information (Unaudite53

Segment Information (Unaudited) (Details 1) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			4
Sales	$ 7,119	$ 6,473	$ 13,854	$ 12,883
Operating income	823	873	1,677	1,735
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income	779	759	1,541	1,500
Operating Segments [Member] | Aerospace Systems [Member]
Segment Reporting Information [Line Items]
Sales	3,337	3,003	6,617	5,987
Operating income	357	320	698	643
Operating Segments [Member] | Innovation Systems [Member]
Segment Reporting Information [Line Items]
Sales	400	0	400	0
Operating income	39	0	39	0
Operating Segments [Member] | Mission Systems [Member]
Segment Reporting Information [Line Items]
Sales	2,874	2,859	5,757	5,659
Operating income	352	384	723	743
Operating Segments [Member] | Technology Services [Member]
Segment Reporting Information [Line Items]
Sales	1,048	1,162	2,192	2,352
Operating income	95	125	217	254
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	540	551	1,112	1,115
Operating income	64	70	136	140
Net FAS (service)/CAS pension adjustment [Member]
Segment Reporting Information [Line Items]
Operating income	137	154	264	308
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating income	(92)	(39)	(126)	(71)
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Operating income	$ (1)	$ (1)	$ (2)	$ (2)

Segment Information (Unaudite54

Segment Information (Unaudited) (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Major Customer [Line Items]
Sales	$ 7,119	$ 6,473	$ 13,854	$ 12,883
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
US Government [Member]
Revenue, Major Customer [Line Items]
Sales	$ 5,816	$ 5,515	$ 11,516	$ 10,890
Concentration Risk, Percentage	82.00%	85.00%	83.00%	84.00%
US Government [Member] | Aerospace Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 2,799	$ 2,616	$ 5,707	$ 5,169
Concentration Risk, Percentage	84.00%	87.00%	86.00%	86.00%
US Government [Member] | Innovation Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 265	$ 0	$ 265	$ 0
Concentration Risk, Percentage	66.00%	0.00%	66.00%	0.00%
US Government [Member] | Mission Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 2,155	$ 2,227	$ 4,345	$ 4,413
Concentration Risk, Percentage	75.00%	78.00%	76.00%	78.00%
US Government [Member] | Technology Services [Member]
Revenue, Major Customer [Line Items]
Sales	$ 597	$ 672	$ 1,199	$ 1,308
Concentration Risk, Percentage	57.00%	58.00%	54.00%	56.00%
International Customer [Member]
Revenue, Major Customer [Line Items]
Sales	$ 1,125	$ 793	$ 1,995	$ 1,665
Concentration Risk, Percentage	16.00%	12.00%	15.00%	13.00%
International Customer [Member] | Aerospace Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 449	$ 272	$ 720	$ 581
Concentration Risk, Percentage	13.00%	9.00%	11.00%	10.00%
International Customer [Member] | Innovation Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 92	$ 0	$ 92	$ 0
Concentration Risk, Percentage	23.00%	0.00%	23.00%	0.00%
International Customer [Member] | Mission Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 391	$ 353	$ 770	$ 707
Concentration Risk, Percentage	14.00%	12.00%	13.00%	12.00%
International Customer [Member] | Technology Services [Member]
Revenue, Major Customer [Line Items]
Sales	$ 193	$ 168	$ 413	$ 377
Concentration Risk, Percentage	18.00%	14.00%	19.00%	16.00%
Other Customers [Member]
Revenue, Major Customer [Line Items]
Sales	$ 178	$ 165	$ 343	$ 328
Concentration Risk, Percentage	2.00%	3.00%	2.00%	3.00%
Other Customers [Member] | Aerospace Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 38	$ 40	$ 80	$ 78
Concentration Risk, Percentage	1.00%	1.00%	1.00%	1.00%
Other Customers [Member] | Innovation Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 30	$ 0	$ 30	$ 0
Concentration Risk, Percentage	8.00%	0.00%	8.00%	0.00%
Other Customers [Member] | Mission Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 34	$ 33	$ 64	$ 54
Concentration Risk, Percentage	1.00%	1.00%	1.00%	1.00%
Other Customers [Member] | Technology Services [Member]
Revenue, Major Customer [Line Items]
Sales	$ 76	$ 92	$ 169	$ 196
Concentration Risk, Percentage	7.00%	8.00%	8.00%	8.00%
Intersegment Eliminations [Member] | Aerospace Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 51	$ 75	$ 110	$ 159
Concentration Risk, Percentage	2.00%	3.00%	2.00%	3.00%
Intersegment Eliminations [Member] | Innovation Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 13	$ 0	$ 13	$ 0
Concentration Risk, Percentage	3.00%	0.00%	3.00%	0.00%
Intersegment Eliminations [Member] | Mission Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 294	$ 246	$ 578	$ 485
Concentration Risk, Percentage	10.00%	9.00%	10.00%	9.00%
Intersegment Eliminations [Member] | Technology Services [Member]
Revenue, Major Customer [Line Items]
Sales	$ 182	$ 230	$ 411	$ 471
Concentration Risk, Percentage	18.00%	20.00%	19.00%	20.00%
Operating Segments [Member] | Aerospace Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 3,337	$ 3,003	$ 6,617	$ 5,987
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Operating Segments [Member] | Innovation Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 400	$ 0	$ 400	$ 0
Concentration Risk, Percentage	100.00%	0.00%	100.00%	0.00%
Operating Segments [Member] | Mission Systems [Member]
Revenue, Major Customer [Line Items]
Sales	$ 2,874	$ 2,859	$ 5,757	$ 5,659
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Operating Segments [Member] | Technology Services [Member]
Revenue, Major Customer [Line Items]
Sales	$ 1,048	$ 1,162	$ 2,192	$ 2,352
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%

Segment Information (Unaudite55

Segment Information (Unaudited) (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Contract Type [Line Items]
Sales	$ 7,119	$ 6,473	$ 13,854	$ 12,883
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Cost-type [Member]
Revenue, Contract Type [Line Items]
Sales	$ 3,625	$ 3,597	$ 7,243	$ 7,185
Concentration Risk, Percentage	51.00%	56.00%	52.00%	56.00%
Cost-type [Member] | Aerospace Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 1,934	$ 1,840	$ 3,836	$ 3,667
Concentration Risk, Percentage	59.00%	63.00%	59.00%	63.00%
Cost-type [Member] | Innovation Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 99	$ 0	$ 99	$ 0
Concentration Risk, Percentage	26.00%	0.00%	26.00%	0.00%
Cost-type [Member] | Mission Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 1,207	$ 1,353	$ 2,486	$ 2,669
Concentration Risk, Percentage	47.00%	52.00%	48.00%	52.00%
Cost-type [Member] | Technology Services [Member]
Revenue, Contract Type [Line Items]
Sales	$ 385	$ 404	$ 822	$ 849
Concentration Risk, Percentage	44.00%	43.00%	46.00%	45.00%
Fixed-price [Member]
Revenue, Contract Type [Line Items]
Sales	$ 3,494	$ 2,876	$ 6,611	$ 5,698
Concentration Risk, Percentage	49.00%	44.00%	48.00%	44.00%
Fixed-price [Member] | Aerospace Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 1,352	$ 1,088	$ 2,671	$ 2,161
Concentration Risk, Percentage	41.00%	37.00%	41.00%	37.00%
Fixed-price [Member] | Innovation Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 288	$ 0	$ 288	$ 0
Concentration Risk, Percentage	74.00%	0.00%	74.00%	0.00%
Fixed-price [Member] | Mission Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 1,373	$ 1,260	$ 2,693	$ 2,505
Concentration Risk, Percentage	53.00%	48.00%	52.00%	48.00%
Fixed-price [Member] | Technology Services [Member]
Revenue, Contract Type [Line Items]
Sales	$ 481	$ 528	$ 959	$ 1,032
Concentration Risk, Percentage	56.00%	57.00%	54.00%	55.00%
Intersegment Eliminations [Member] | Aerospace Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 51	$ 75	$ 110	$ 159
Intersegment Eliminations [Member] | Innovation Systems [Member]
Revenue, Contract Type [Line Items]
Sales	13	0	13	0
Intersegment Eliminations [Member] | Mission Systems [Member]
Revenue, Contract Type [Line Items]
Sales	294	246	578	485
Intersegment Eliminations [Member] | Technology Services [Member]
Revenue, Contract Type [Line Items]
Sales	182	230	411	471
Operating Segments [Member] | Aerospace Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 3,337	$ 3,003	$ 6,617	$ 5,987
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Operating Segments [Member] | Innovation Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 400	$ 0	$ 400	$ 0
Concentration Risk, Percentage	100.00%	0.00%	100.00%	0.00%
Operating Segments [Member] | Mission Systems [Member]
Revenue, Contract Type [Line Items]
Sales	$ 2,874	$ 2,859	$ 5,757	$ 5,659
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Operating Segments [Member] | Technology Services [Member]
Revenue, Contract Type [Line Items]
Sales	$ 1,048	$ 1,162	$ 2,192	$ 2,352
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%

Segment Information (Unaudite56

Segment Information (Unaudited) (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Geographic Location [Line Items]
Sales	$ 7,119	$ 6,473	$ 13,854	$ 12,883
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
United States
Revenue, Geographic Location [Line Items]
Sales	$ 5,999	$ 5,681	$ 11,864	$ 11,220
Concentration Risk, Percentage	84.00%	88.00%	85.00%	87.00%
United States | Aerospace Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 2,837	$ 2,656	$ 5,787	$ 5,247
Concentration Risk, Percentage	86.00%	91.00%	89.00%	90.00%
United States | Innovation Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 296	$ 0	$ 296	$ 0
Concentration Risk, Percentage	77.00%	0.00%	77.00%	0.00%
United States | Mission Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 2,193	$ 2,261	$ 4,413	$ 4,468
Concentration Risk, Percentage	85.00%	86.00%	85.00%	86.00%
United States | Technology Services [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 673	$ 764	$ 1,368	$ 1,505
Concentration Risk, Percentage	78.00%	82.00%	77.00%	80.00%
Asia/Pacific
Revenue, Geographic Location [Line Items]
Sales	$ 469	$ 340	$ 783	$ 728
Concentration Risk, Percentage	7.00%	5.00%	6.00%	6.00%
Asia/Pacific | Aerospace Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 249	$ 157	$ 378	$ 345
Concentration Risk, Percentage	8.00%	5.00%	6.00%	6.00%
Asia/Pacific | Innovation Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 24	$ 0	$ 24	$ 0
Concentration Risk, Percentage	6.00%	0.00%	6.00%	0.00%
Asia/Pacific | Mission Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 160	$ 155	$ 313	$ 309
Concentration Risk, Percentage	6.00%	6.00%	6.00%	6.00%
Asia/Pacific | Technology Services [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 36	$ 28	$ 68	$ 74
Concentration Risk, Percentage	4.00%	3.00%	4.00%	4.00%
All other (principally Europe and Middle East)
Revenue, Geographic Location [Line Items]
Sales	$ 651	$ 452	$ 1,207	$ 935
Concentration Risk, Percentage	9.00%	7.00%	9.00%	7.00%
All other (principally Europe and Middle East) | Aerospace Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 200	$ 115	$ 342	$ 236
Concentration Risk, Percentage	6.00%	4.00%	5.00%	4.00%
All other (principally Europe and Middle East) | Innovation Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 67	$ 0	$ 67	$ 0
Concentration Risk, Percentage	17.00%	0.00%	17.00%	0.00%
All other (principally Europe and Middle East) | Mission Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 227	$ 197	$ 453	$ 397
Concentration Risk, Percentage	9.00%	8.00%	9.00%	8.00%
All other (principally Europe and Middle East) | Technology Services [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 157	$ 140	$ 345	$ 302
Concentration Risk, Percentage	18.00%	15.00%	19.00%	16.00%
Intersegment Eliminations [Member] | Aerospace Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 51	$ 75	$ 110	$ 159
Intersegment Eliminations [Member] | Innovation Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	13	0	13	0
Intersegment Eliminations [Member] | Mission Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	294	246	578	485
Intersegment Eliminations [Member] | Technology Services [Member]
Revenue, Geographic Location [Line Items]
Sales	182	230	411	471
Operating Segments [Member] | Aerospace Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 3,337	$ 3,003	$ 6,617	$ 5,987
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Operating Segments [Member] | Innovation Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 400	$ 0	$ 400	$ 0
Concentration Risk, Percentage	100.00%	0.00%	100.00%	0.00%
Operating Segments [Member] | Mission Systems [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 2,874	$ 2,859	$ 5,757	$ 5,659
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Operating Segments [Member] | Technology Services [Member]
Revenue, Geographic Location [Line Items]
Sales	$ 1,048	$ 1,162	$ 2,192	$ 2,352
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%

Recast 2017 Financial Informa57

Recast 2017 Financial Information (Details 1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product	$ 4,790	$ 4,037	$ 9,079	$ 8,034
Service	2,329	2,436	4,775	4,849
Total sales	7,119	6,473	13,854	12,883
Product	3,694	3,037	6,959	6,020
Service	1,863	1,877	3,768	3,744
General and administrative expenses	739	686	1,450	1,384
Operating income	823	873	1,677	1,735
Interest and Debt Expense	(144)	(76)	(287)	(151)
Net FAS (non-service) Pension Benefit (Expense)	125	(17)	245	(35)
Other, net	45	32	85	51
Earnings before income taxes	849	812	1,720	1,600
Federal and foreign income tax expense	160	257	292	395
Net earnings	$ 689	$ 555	$ 1,428	$ 1,205
Earnings Per Share, Basic	$ 3.95	$ 3.18	$ 8.19	$ 6.90
Weighted Average Number of Shares Outstanding, Basic	174.5	174.5	174.4	174.7
Earnings Per Share, Diluted	$ 3.93	$ 3.16	$ 8.14	$ 6.85
Weighted Average Number of Shares Outstanding, Diluted	175.4	175.5	175.4	175.8
Change in unamortized benefit plan costs, net of tax	$ 86	$ 102	$ 172	$ 201
Change in cumulative translation adjustment	0	(4)	(2)	0
Other, net	3	(1)	4	(3)
Other comprehensive income, net of tax	83	99	166	204
Comprehensive income	$ 772	654	$ 1,594	1,409
Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product		3,916		7,750
Service		2,459		4,892
Total sales		6,375		12,642
Product		2,958		5,829
Service		1,896		3,783
General and administrative expenses		666		1,343
Operating income		855		1,687
Interest and Debt Expense		(76)		(151)
Net FAS (non-service) Pension Benefit (Expense)		0		0
Other, net		28		44
Earnings before income taxes		807		1,580
Federal and foreign income tax expense		255		388
Net earnings		$ 552		$ 1,192
Earnings Per Share, Basic		$ 3.16		$ 6.82
Weighted Average Number of Shares Outstanding, Basic		174.5		174.7
Earnings Per Share, Diluted		$ 3.15		$ 6.78
Weighted Average Number of Shares Outstanding, Diluted		175.5		175.8
Change in unamortized benefit plan costs, net of tax		$ 102		$ 201
Change in cumulative translation adjustment		(4)		0
Other, net		(1)		(3)
Other comprehensive income, net of tax		99		204
Comprehensive income		651		1,396
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product		121		284
Service		(23)		(43)
Total sales		98		241
Product		87		208
Service		(14)		(28)
General and administrative expenses		20		41
Operating income		5		20
Interest and Debt Expense		0		0
Net FAS (non-service) Pension Benefit (Expense)		0		0
Other, net		0		0
Earnings before income taxes		5		20
Federal and foreign income tax expense		2		7
Net earnings		$ 3		$ 13
Earnings Per Share, Basic		$ 0.02		$ 0.08
Weighted Average Number of Shares Outstanding, Basic		0		0
Earnings Per Share, Diluted		$ 0.01		$ 0.07
Weighted Average Number of Shares Outstanding, Diluted		0		0
Change in unamortized benefit plan costs, net of tax		$ 0		$ 0
Change in cumulative translation adjustment		0		0
Other, net		0		0
Other comprehensive income, net of tax		0		0
Comprehensive income		3		13
Accounting Standards Update 2017-07 [Domain] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product		0		0
Service		0		0
Total sales		0		0
Product		(8)		(17)
Service		(5)		(11)
General and administrative expenses		0		0
Operating income		13		28
Interest and Debt Expense		0		0
Net FAS (non-service) Pension Benefit (Expense)		(17)		(35)
Other, net		4		7
Earnings before income taxes		0		0
Federal and foreign income tax expense		0		0
Net earnings		$ 0		$ 0
Earnings Per Share, Basic		$ 0		$ 0
Weighted Average Number of Shares Outstanding, Basic		0		0
Earnings Per Share, Diluted		$ 0		$ 0
Weighted Average Number of Shares Outstanding, Diluted		0		0
Change in unamortized benefit plan costs, net of tax		$ 0		$ 0
Change in cumulative translation adjustment		0		0
Other, net		0		0
Other comprehensive income, net of tax		0		0
Comprehensive income		$ 0		$ 0

Recast 2017 Financial Informa58

Recast 2017 Financial Information (Details 2) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents	$ 1,539	$ 11,225	$ 1,383	$ 2,541
Accounts receivable, net	1,815	1,054
Unbilled receivables, net	5,272	3,465
Inventoried costs, net	690	398
Prepaid expenses and other current assets	406	445
Total current assets	9,722	16,587
Property, plant and equipment, net of accumulated depreciation of $5,066 for 2017	5,864	4,225
Goodwill	18,747	12,455
Deferred tax assets	179	447
Intangible Assets, net	1,329	52
Other non-current assets	1,537	1,362
Total assets	37,378	35,128
Trade accounts payable	1,824	1,661
Accrued employee compensation	1,451	1,382
Advance payments and amounts in excess of costs incurred	1,711	1,761
Other current liabilities	2,847	2,288
Total current liabilities	7,833	7,092
Long-term debt, net of current portion of $867 for 2017	14,387	14,399
Pension and other post-retirement benefit plan liabilities	5,755	5,511
Other non-current liabilities	1,176	994
Total liabilities	29,151	27,996
Commitments and Contingencies
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $1 par value; 800,000,000 shares authorized; issues and outstanding: 2017 - 174,085,619	174	174
Paid-in capital	0	44
Retained earnings	13,669	11,632
Accumulated other comprehensive loss	(5,616)	(4,718)
Total shareholders’ equity	8,227	7,132	$ 6,036
Total liabilities and shareholders’ equity	$ 37,378	35,128
Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents		11,225
Accounts receivable, net		829
Unbilled receivables, net		3,147
Inventoried costs, net		780
Prepaid expenses and other current assets		368
Total current assets		16,349
Property, plant and equipment, net of accumulated depreciation of $5,066 for 2017		4,225
Goodwill		12,455
Deferred tax assets		475
Intangible Assets, net		52
Other non-current assets		1,361
Total assets		34,917
Trade accounts payable		1,661
Accrued employee compensation		1,382
Advance payments and amounts in excess of costs incurred		1,617
Other current liabilities		2,305
Total current liabilities		6,965
Long-term debt, net of current portion of $867 for 2017		14,399
Pension and other post-retirement benefit plan liabilities		5,511
Other non-current liabilities		994
Total liabilities		27,869
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding		0
Common stock, $1 par value; 800,000,000 shares authorized; issues and outstanding: 2017 - 174,085,619		174
Paid-in capital		44
Retained earnings		11,548
Accumulated other comprehensive loss		(4,718)
Total shareholders’ equity		7,048
Total liabilities and shareholders’ equity		34,917
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents		0
Accounts receivable, net		225
Unbilled receivables, net		318
Inventoried costs, net		(382)
Prepaid expenses and other current assets		77
Total current assets		238
Property, plant and equipment, net of accumulated depreciation of $5,066 for 2017		0
Goodwill		0
Deferred tax assets		(28)
Intangible Assets, net		0
Other non-current assets		1
Total assets		211
Trade accounts payable		0
Accrued employee compensation		0
Advance payments and amounts in excess of costs incurred		144
Other current liabilities		(17)
Total current liabilities		127
Long-term debt, net of current portion of $867 for 2017		0
Pension and other post-retirement benefit plan liabilities		0
Other non-current liabilities		0
Total liabilities		127
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding		0
Common stock, $1 par value; 800,000,000 shares authorized; issues and outstanding: 2017 - 174,085,619		0
Paid-in capital		0
Retained earnings		84
Accumulated other comprehensive loss		0
Total shareholders’ equity		84
Total liabilities and shareholders’ equity		211
Accounting Standards Update 2017-07 [Domain] | Restatement Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents		0
Accounts receivable, net		0
Unbilled receivables, net		0
Inventoried costs, net		0
Prepaid expenses and other current assets		0
Total current assets		0
Property, plant and equipment, net of accumulated depreciation of $5,066 for 2017		0
Goodwill		0
Deferred tax assets		0
Intangible Assets, net		0
Other non-current assets		0
Total assets		0
Trade accounts payable		0
Accrued employee compensation		0
Advance payments and amounts in excess of costs incurred		0
Other current liabilities		0
Total current liabilities		0
Long-term debt, net of current portion of $867 for 2017		0
Pension and other post-retirement benefit plan liabilities		0
Other non-current liabilities		0
Total liabilities		0
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding		0
Common stock, $1 par value; 800,000,000 shares authorized; issues and outstanding: 2017 - 174,085,619		0
Paid-in capital		0
Retained earnings		0
Accumulated other comprehensive loss		0
Total shareholders’ equity		0
Total liabilities and shareholders’ equity		$ 0