Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 30, 2014 | |
Document Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Trading Symbol | 'LMT |
Entity Registrant Name | 'LOCKHEED MARTIN CORP |
Entity Central Index Key | '0000936468 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 317,377,058 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | |
Net sales | ' | ' | |
Products | $8,410 | $8,706 | |
Services | 2,240 | 2,364 | |
Total net sales | 10,650 | 11,070 | |
Cost of sales | ' | ' | |
Products | -7,339 | -7,671 | |
Services | -1,950 | -2,134 | |
Severance charges | ' | -30 | [1] |
Other unallocated, net | 10 | -194 | |
Total cost of sales | -9,279 | -10,029 | |
Gross profit | 1,371 | 1,041 | |
Other income, net | 61 | 78 | |
Operating profit | 1,432 | 1,119 | |
Interest expense | -86 | -92 | |
Other non-operating income (expense), net | 2 | -2 | |
Earnings before income taxes | 1,348 | 1,025 | |
Income tax expense | -415 | -264 | |
Net earnings | $933 | $761 | |
Earnings per common share | ' | ' | |
Basic earnings per common share in USD | $2.92 | $2.37 | |
Diluted earnings per common share in USD | $2.87 | $2.33 | |
Cash dividends paid per common share | $1.33 | $1.15 | |
[1] | Severance charges during the quarter ended March 31, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment (Note 8, under the caption "Restructuring Charges"). Severance charges for initiatives that are not significant are included in business segment operating profit. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Net earnings | $933 | $761 |
Other comprehensive income (loss), net of tax | ' | ' |
Recognition of previously deferred postretirement benefit plan amounts | 167 | 254 |
Other, net | -3 | -43 |
Other comprehensive income (loss), net of tax | 164 | 211 |
Comprehensive income | $1,097 | $972 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $3,264 | $2,617 |
Receivables, net | 6,255 | 5,834 |
Inventories, net | 2,949 | 2,977 |
Deferred income taxes | 1,135 | 1,088 |
Other current assets | 631 | 813 |
Total current assets | 14,234 | 13,329 |
Property, plant, and equipment, net | 4,612 | 4,706 |
Goodwill | 10,370 | 10,348 |
Deferred income taxes | 2,782 | 2,850 |
Other noncurrent assets | 4,921 | 4,955 |
Total assets | 36,919 | 36,188 |
Current liabilities | ' | ' |
Accounts payable | 1,942 | 1,397 |
Customer advances and amounts in excess of costs incurred | 6,197 | 6,349 |
Salaries, benefits, and payroll taxes | 1,722 | 1,809 |
Other current liabilities | 2,134 | 1,565 |
Total current liabilities | 11,995 | 11,120 |
Accrued pension liabilities | 9,438 | 9,361 |
Other postretirement benefit liabilities | 902 | 902 |
Long-term debt, net | 6,152 | 6,152 |
Other noncurrent liabilities | 3,632 | 3,735 |
Total liabilities | 32,119 | 31,270 |
Stockholders' equity | ' | ' |
Common stock, $1 par value per share | 315 | 319 |
Additional paid-in capital | ' | ' |
Retained earnings | 13,922 | 14,200 |
Accumulated other comprehensive loss | -9,437 | -9,601 |
Total stockholders' equity | 4,800 | 4,918 |
Total liabilities and stockholders' equity | $36,919 | $36,188 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 |
Common stock, par value (in USD per share) | $1 | $1 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | |
Operating activities | ' | ' | |
Net earnings | $933 | $761 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | |
Depreciation and amortization | 237 | 232 | |
Stock-based compensation | 48 | 53 | |
Severance charges | ' | 30 | [1] |
Changes in operating assets and liabilities: | ' | ' | |
Receivables, net | -423 | -384 | |
Inventories, net | 29 | 43 | |
Accounts payable | 545 | 83 | |
Customer advances and amounts in excess of costs incurred | -152 | -98 | |
Postretirement benefit plans | 320 | 493 | |
Income taxes | 584 | 862 | |
Other, net | -21 | 10 | |
Net cash provided by operating activities | 2,100 | 2,085 | |
Investing activities | ' | ' | |
Capital expenditures | -103 | -106 | |
Other, net | -23 | -42 | |
Net cash used for investing activities | -126 | -148 | |
Financing activities | ' | ' | |
Repurchases of common stock | -1,106 | -461 | |
Proceeds from stock option exercises | 197 | 55 | |
Dividends paid | -444 | -371 | |
Other, net | 26 | 7 | |
Net cash used for financing activities | -1,327 | -770 | |
Net change in cash and cash equivalents | 647 | 1,167 | |
Cash and cash equivalents at beginning of period | 2,617 | 1,898 | |
Cash and cash equivalents at end of period | $3,264 | $3,065 | |
[1] | Severance charges during the quarter ended March 31, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment (Note 8, under the caption "Restructuring Charges"). Severance charges for initiatives that are not significant are included in business segment operating profit. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Millions | |||||
Beginning Balance at Dec. 31, 2012 | $39 | $321 | ' | $13,211 | ($13,493) |
Net earnings | 761 | ' | ' | 761 | ' |
Other comprehensive income, net of tax | 211 | ' | ' | ' | 211 |
Repurchases of common stock | -477 | -5 | -139 | -333 | ' |
Dividends declared | -371 | ' | ' | -371 | ' |
Stock-based awards and ESOP activity | 141 | 2 | 139 | ' | ' |
Ending Balance at Mar. 31, 2013 | 304 | 318 | ' | 13,268 | -13,282 |
Beginning Balance at Dec. 31, 2013 | 4,918 | 319 | ' | 14,200 | -9,601 |
Net earnings | 933 | ' | ' | 933 | ' |
Other comprehensive income, net of tax | 164 | ' | ' | ' | 164 |
Repurchases of common stock | -1,106 | -7 | -316 | -783 | ' |
Dividends declared | -428 | ' | ' | -428 | ' |
Stock-based awards and ESOP activity | 319 | 3 | 316 | ' | ' |
Ending Balance at Mar. 30, 2014 | $4,800 | $315 | ' | $13,922 | ($9,437) |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 30, 2014 | |
BASIS OF PRESENTATION | ' |
NOTE 1 – BASIS OF PRESENTATION | |
We prepared these consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to Form 10-Q, and Article 10 of U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. We followed the accounting policies disclosed in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 (2013 Form 10-K) filed with the SEC. | |
In the opinion of management, these consolidated financial statements reflect all adjustments that are of a normal recurring nature necessary for a fair presentation of our results of operations, financial condition, and cash flows for the interim periods presented. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates. Significant estimates inherent in the preparation of our consolidated financial statements include, but are not limited to, accounting for sales and cost recognition, postretirement benefit plans, environmental receivables and liabilities, evaluation of goodwill and other assets for impairment, income taxes including deferred tax assets, fair value measurements, and contingencies. The consolidated financial statements include the accounts of subsidiaries we control and variable interest entities if we are the primary beneficiary. We eliminate intercompany balances and transactions in consolidation. We have reclassified certain amounts in the prior period to conform to the current year presentation. | |
We close our books and records on the last Sunday of the calendar quarter to align our financial closing with our business processes, which was on March 30 for the first quarter of 2014 and March 31 for the first quarter of 2013. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as our fiscal year ends on December 31. | |
The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the full year or future periods. Unless otherwise noted, we present all per share amounts cited in these consolidated financial statements on a “per diluted share” basis. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2013 Form 10-K. |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
EARNINGS PER COMMON SHARE | ' | ||||||||
NOTE 2 – EARNINGS PER COMMON SHARE | |||||||||
The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions): | |||||||||
Quarters Ended | |||||||||
March 30, | March 31, | ||||||||
2014 | 2013 | ||||||||
Weighted average common shares outstanding for basic computations | 319.1 | 321.7 | |||||||
Weighted average dilutive effect of equity awards | 6.0 | 4.6 | |||||||
Weighted average common shares outstanding for diluted computations | 325.1 | 326.3 | |||||||
We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units and exercise of outstanding stock options based on the treasury stock method. | |||||||||
The computation of diluted earnings per common share excluded 6.4 million stock options for the quarter ended March 31, 2013 because their inclusion would have been anti-dilutive, primarily due to their exercise prices exceeding the average market prices of our common stock. There were no anti-dilutive stock options for the quarter ended March 30, 2014. |
BUSINESS_SEGMENT_INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
BUSINESS SEGMENT INFORMATION | ' | ||||||||
NOTE 3 – BUSINESS SEGMENT INFORMATION | |||||||||
We operate in five business segments: Aeronautics, Information Systems & Global Solutions (IS&GS), Missiles and Fire Control, Mission Systems and Training (MST), and Space Systems. We organize our business segments based on the nature of the products and services offered. | |||||||||
Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation. Intercompany transactions are generally negotiated under terms and conditions that share many similar characteristics (e.g., contract structures, funding profiles, target cost values, contract progress reports) with our third-party contracts, primarily with the U.S. Government. | |||||||||
Operating profit of our business segments includes our share of earnings or losses from equity method investees because the operating activities of the equity method investees are closely aligned with the operations of our business segments. United Launch Alliance (ULA), which is part of our Space Systems business segment, is our primary equity method investee. Operating profit of our business segments excludes the FAS/CAS pension adjustment described below; expense for stock-based compensation; the effects of items not considered part of management’s evaluation of segment operating performance, such as charges related to significant severance actions (Note 8, under the caption “Restructuring Charges”) and goodwill impairments; gains or losses from divestitures; the effects of certain legal settlements; corporate costs not allocated to our business segments; and other miscellaneous corporate activities. These items are included in the reconciling item “Unallocated, net” between operating profit from our business segments and our consolidated operating profit. | |||||||||
Our business segments’ results of operations include pension expense only as calculated under U.S. Government Cost Accounting Standards (CAS), which we refer to as CAS cost. We recover CAS cost through the pricing of our products and services on U.S. Government contracts and, therefore, the CAS cost is recognized in each of our business segments’ net sales and cost of sales. Since our consolidated financial statements must present pension expense calculated in accordance with the financial accounting standards (FAS) requirements under GAAP, which we refer to as FAS pension expense, the FAS/CAS pension adjustment increases or decreases the CAS pension expense recorded in our business segments’ results of operations to equal the FAS pension expense. As a result, to the extent that CAS cost exceeds FAS pension expense, which occurred for the quarter ended March 30, 2014, we have FAS/CAS pension income and, conversely, to the extent FAS pension expense exceeds CAS cost, which occurred for the quarter ended March 31, 2013, we have FAS/CAS pension expense. | |||||||||
Summary operating results for each of our business segments were as follows (in millions): | |||||||||
Quarters Ended | |||||||||
March 30, | March 31, | ||||||||
2014 | 2013 | ||||||||
Net sales | |||||||||
Aeronautics | $ | 3,386 | $ | 3,186 | |||||
Information Systems & Global Solutions | 1,910 | 2,106 | |||||||
Missiles and Fire Control | 1,867 | 1,988 | |||||||
Mission Systems and Training | 1,628 | 1,830 | |||||||
Space Systems | 1,859 | 1,960 | |||||||
Total net sales | $ | 10,650 | $ | 11,070 | |||||
Operating profit | |||||||||
Aeronautics | $ | 393 | $ | 379 | |||||
Information Systems & Global Solutions | 174 | 189 | |||||||
Missiles and Fire Control | 358 | 344 | |||||||
Mission Systems and Training | 250 | 201 | |||||||
Space Systems | 254 | 230 | |||||||
Total business segment operating profit | 1,429 | 1,343 | |||||||
Unallocated, net | |||||||||
FAS/CAS pension adjustment | |||||||||
FAS pension expense | (313) | (487) | |||||||
Less: CAS cost | 399 | 366 | |||||||
FAS/CAS pension income (expense) (a) | 86 | (121) | |||||||
Severance charges (b) | — | (30) | |||||||
Stock-based compensation | (48) | (53) | |||||||
Other, net | (35) | (20) | |||||||
Total unallocated, net | 3 | (224) | |||||||
Total consolidated operating profit | $ | 1,432 | $ | 1,119 | |||||
Intersegment sales | |||||||||
Aeronautics | $ | 27 | $ | 50 | |||||
Information Systems & Global Solutions | 176 | 190 | |||||||
Missiles and Fire Control | 87 | 53 | |||||||
Mission Systems and Training | 315 | 227 | |||||||
Space Systems | 27 | 23 | |||||||
Total intersegment sales | $ | 632 | $ | 543 | |||||
(a) | The change in the FAS/CAS pension adjustment from expense to income between the periods was due to lower FAS pension expense in 2014 primarily as a result of the increase in the discount rate used in the measurement of our GAAP postretirement benefit plan obligations at the end of 2013, and incrementally higher CAS costs in 2014 as a result of phasing in the CAS Harmonization rules as discussed in our 2013 Form 10-K. | ||||||||
(b) | Severance charges during the quarter ended March 31, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment (Note 8, under the caption “Restructuring Charges”). Severance charges for initiatives that are not significant are included in business segment operating profit. | ||||||||
Total assets for each of our business segments were as follows (in millions): | |||||||||
March 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Aeronautics | $ | 5,892 | $ | 5,821 | |||||
Information Systems & Global Solutions | 5,834 | 5,798 | |||||||
Missiles and Fire Control | 4,065 | 4,159 | |||||||
Mission Systems and Training | 6,450 | 6,512 | |||||||
Space Systems | 3,776 | 3,522 | |||||||
Total business segment assets | 26,017 | 25,812 | |||||||
Corporate assets (a) | 10,902 | 10,376 | |||||||
Total assets | $ | 36,919 | $ | 36,188 | |||||
(a) | Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans. | ||||||||
Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, multi-variant, stealth fighter aircraft. Net sales for the F-35 program represented approximately 16% and 15% of our total consolidated net sales for the quarters ended March 30, 2014 and March 31, 2013. |
INVENTORIES_NET
INVENTORIES, NET | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
INVENTORIES, NET | ' | ||||||||
NOTE 4 – INVENTORIES, NET | |||||||||
Inventories, net consisted of the following (in millions): | |||||||||
March 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Work-in-process, primarily related to long-term contracts and programs in progress | $ | 7,080 | $ | 7,073 | |||||
Less: customer advances and progress payments | (4,866) | (4,834) | |||||||
2,214 | 2,239 | ||||||||
Other inventories | 735 | 738 | |||||||
Total inventories, net | $ | 2,949 | $ | 2,977 |
POSTRETIREMENT_BENEFIT_PLANS
POSTRETIREMENT BENEFIT PLANS | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
POSTRETIREMENT BENEFIT PLANS | ' | ||||||||
NOTE 5 – POSTRETIREMENT BENEFIT PLANS | |||||||||
The components of our pretax net periodic benefit costs for our qualified defined benefit pension plans and retiree medical and life insurance plans were as follows (in millions): | |||||||||
Quarters Ended | |||||||||
March 30, | March 31, | ||||||||
2014 | 2013 | ||||||||
Qualified defined benefit pension plans | |||||||||
Service cost | $ | 243 | $ | 286 | |||||
Interest cost | 488 | 450 | |||||||
Expected return on plan assets | (660) | (622) | |||||||
Recognized net actuarial losses | 221 | 353 | |||||||
Amortization of prior service cost | 21 | 20 | |||||||
Total net periodic benefit cost | $ | 313 | $ | 487 | |||||
Retiree medical and life insurance plans | |||||||||
Service cost | $ | 5 | $ | 7 | |||||
Interest cost | 31 | 29 | |||||||
Expected return on plan assets | (36) | (36) | |||||||
Recognized net actuarial losses | 6 | 11 | |||||||
Amortization of prior service cost (credit) | 1 | (5) | |||||||
Total net periodic benefit cost | $ | 7 | $ | 6 | |||||
The recognized net actuarial losses and the amortization of prior service cost (credit) in the table above, as well as similar costs related to our other postretirement benefit plans, reflect costs that were recorded as a component of net periodic benefit cost for the period. These costs totaled $167 million (net of $91 million of tax expense) for the quarter ended March 30, 2014 and $254 million (net of $139 million of tax expense) for the quarter ended March 31, 2013, which are recorded on our Statements of Comprehensive Income as an increase to comprehensive income. | |||||||||
We determine funding requirements for our defined benefit pension plans in a manner consistent with CAS and the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006. There were no contributions to either our qualified defined benefit pension plans or our retiree medical and life insurance plans during the quarters ended March 30, 2014 and March 31, 2013. We currently plan to make total contributions of $1.0 billion related to our qualified defined benefit pension plans in 2014, of which contributions of $515 million were made early in the second quarter of 2014. We do not expect to make any contributions to our retiree medical and life insurance plans in 2014. |
LEGAL_PROCEEDINGS_AND_CONTINGE
LEGAL PROCEEDINGS AND CONTINGENCIES | 3 Months Ended |
Mar. 30, 2014 | |
LEGAL PROCEEDINGS AND CONTINGENCIES | ' |
NOTE 6 – LEGAL PROCEEDINGS AND CONTINGENCIES | |
We are a party to or have property subject to litigation and other proceedings that arise in the ordinary course of our business, including matters arising under provisions relating to the protection of the environment, and are subject to contingencies related to certain businesses we previously owned. These types of matters could result in fines, penalties, compensatory or treble damages or non-monetary relief. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings discussed below, will have a material adverse effect on the Corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment, and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. | |
Although we cannot predict the outcome of legal or other proceedings with certainty, GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made for contingencies where there is at least a reasonable possibility that a loss may have been incurred. We have a thorough process to determine an estimate of the reasonably possible loss or range of loss before we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. | |
Legal Proceedings | |
On April 24, 2009, we filed a declaratory judgment action against the New York Metropolitan Transportation Authority and its Capital Construction Company (collectively, the MTA) asking the U.S. District Court for the Southern District of New York to find that the MTA is in material breach of our agreement based on the MTA’s failure to provide access to sites where work must be performed and customer-furnished equipment necessary to complete the contract. The MTA filed an answer and counterclaim alleging that we breached the contract, and subsequently terminated the contract for alleged default. The primary damages sought by the MTA are the cost to complete the contract and potential re-procurement costs. While we are unable to estimate the cost of another contractor to complete the contract and the costs of re-procurement, we note that our contract with the MTA had a total value of $323 million, of which $241 million was paid to us. We dispute the MTA’s allegations and are defending against them. Additionally, following an investigation, our sureties on a performance bond related to this matter, who were represented by independent counsel, concluded that the MTA’s termination of the contract was improper. Finally, our declaratory judgment action was later amended to include claims for monetary damages against the MTA. A bench trial of this matter is scheduled to begin on July 7, 2014. | |
On August 28, 2003, the U.S. Department of Justice (DOJ) filed complaints in partial intervention in two lawsuits filed under the civil qui tam provisions of the False Claims Act in the U.S. District Court for the Western District of Kentucky, United States ex rel. Natural Resources Defense Council, et al., v. Lockheed Martin Corporation, et al., and United States ex rel. John D. Tillson v. Lockheed Martin Energy Systems, Inc., et al. The DOJ alleges that we committed violations of the Resource Conservation and Recovery Act at the Paducah Gaseous Diffusion Plant by not properly handling, storing, and transporting hazardous waste and that we violated the False Claims Act by misleading Department of Energy officials and state regulators about the nature and extent of environmental noncompliance at the plant. The complaint does not allege a specific calculation of damages. On April 16, 2013, the parties attended a settlement conference ordered by the magistrate judge. The conference focused on the parties’ sharply differing views of the merits of the case and did not significantly contribute to our understanding of the damages sought. Accordingly, we cannot estimate the reasonably possible loss, or range of loss, which could be incurred if the plaintiffs were to prevail in the allegations, but believe that we have substantial defenses. We dispute the allegations and are defending against them. | |
Environmental Matters | |
We are involved in environmental proceedings and potential proceedings relating to soil and groundwater contamination, disposal of hazardous waste, and other environmental matters at several of our current or former facilities, or at third-party sites where we have been designated as a potentially responsible party (PRP). A substantial portion of environmental costs will be included in our net sales and cost of sales in future periods pursuant to U.S. Government regulations. At the time a liability is recorded for future environmental costs, we record a receivable for estimated future recovery considered probable through the pricing of products and services to agencies of the U.S. Government, regardless of the contract form (e.g., cost-reimbursable, fixed-price). We continuously evaluate the recoverability of our environmental receivables by assessing, among other factors, U.S. Government regulations, our U.S. Government business base and contract mix, and our history of receiving reimbursement of such costs. We include the portion of those environmental costs expected to be allocated to our non-U.S. Government contracts, or that is determined to be unallowable for pricing under U.S. Government contracts, in our cost of sales at the time the liability is established. | |
At March 30, 2014 and December 31, 2013, the aggregate amount of liabilities recorded relative to environmental matters was $1.0 billion and $997 million, most of which are recorded in other noncurrent liabilities on our Balance Sheets. We have recorded receivables totaling $874 million and $863 million at March 30, 2014 and December 31, 2013, most of which are recorded in other noncurrent assets on our Balance Sheets, for the estimated future recovery of these costs, as we consider the recovery probable based on the factors previously mentioned. We project costs and recovery of costs over approximately 20 years. | |
Environmental cleanup activities usually span several years, which makes estimating liabilities a matter of judgment because of uncertainties with respect to assessing the extent of the contamination as well as such factors as changing remediation technologies and continually evolving regulatory environmental standards. There are a number of former operating facilities that we are monitoring or investigating for potential future remediation. We perform quarterly reviews of the status of our environmental remediation sites and the related liabilities and receivables. Additionally, in our quarterly reviews we consider these and other factors in estimating the timing and amount of any future costs that may be required for remediation activities and record a liability when it is probable that a loss has occurred and the loss can be reasonably estimated. The amount of liability recorded is based on our estimate of the costs to be incurred for remediation at a particular site. We do not discount the recorded liabilities, as the amount and timing of future cash payments are not fixed or cannot be reliably determined. We reasonably cannot determine the extent of our financial exposure in all cases as, although a loss may be probable or reasonably possible, in some cases it is not possible at this time to estimate the loss or reasonably possible loss or range of loss. | |
We also are pursuing claims for recovery of costs incurred or contribution to site cleanup costs against other PRPs, including the U.S. Government, and are conducting remediation activities under various consent decrees and orders relating to soil, groundwater, sediment, or surface water contamination at certain sites of former or current operations. Under an agreement related to our Burbank and Glendale, California, sites, the U.S. Government reimburses us an amount equal to approximately 50% of expenditures for certain remediation activities in its capacity as a PRP under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). | |
California and the U.S. Environmental Protection Agency (U.S. EPA) are each evaluating the need to regulate hexavalent chromium in drinking water, distinct from the current California standard which regulates total chromium, of which hexavalent chromium is a component. On April 15, 2014, the California Department of Public Health submitted its final regulation which, if it becomes enforceable, will separately regulate hexavalent chromium and sets the maximum level at 10 parts per billion (ppb). If the new standard remains at 10 ppb, it will not have a material impact on our existing remediation costs in California. However, we cannot predict the outcome of California’s regulatory proceedings and expect that environmental groups and the regulated community may each institute litigation opposing the new standard. | |
In addition, California is also reevaluating its existing drinking water standard with respect to a second contaminant, perchlorate, and the U.S. EPA is also considering whether to regulate that contaminant in drinking water. If substantially lower standards are adopted, in either California or at the federal level, for perchlorate or, if the U.S. EPA were to adopt a standard for hexavalent chromium lower than 10 ppb, we expect a material increase in our estimates for environmental liabilities and the related assets for the portion of the increased costs that are probable of future recovery in the pricing of our products and services for the U.S. Government. The amount that would be allocable to our non-U.S. Government contracts or that is determined to be unallowable for pricing under U.S. Government contracts would be expensed, which may have a material effect on our earnings in any particular interim reporting period. | |
Letters of Credit, Surety Bonds, and Third-Party Guarantees | |
We have entered into standby letters of credit, surety bonds, and third-party guarantees with financial institutions and other third parties primarily relating to advances received from customers and the guarantee of future performance on certain contracts. Letters of credit and surety bonds generally are available for draw down in the event we do not perform. In some cases, we may guarantee the contractual performance of third parties such as venture partners. We had total outstanding letters of credit, surety bonds, and third-party guarantees aggregating $2.5 billion and $2.4 billion at March 30, 2014 and December 31, 2013. | |
At March 30, 2014 and December 31, 2013, third-party guarantees totaled $804 million and $696 million, of which approximately 90% related to guarantees of contractual performance of ventures to which we currently are or previously were a party. This amount represents our estimate of the maximum amount we would expect to incur upon the contractual non-performance of the venture partners. In addition, we generally have cross-indemnities in place that may enable us to recover amounts that may be paid on behalf of a venture partner. We believe our current and former venture partners will be able to perform their obligations, as they have done through March 30, 2014, and that it will not be necessary to make payments under the guarantees. In determining our exposures, we evaluate the reputation, technical capabilities, and credit quality of our current and former venture partners. | |
United Launch Alliance | |
In connection with our 50% ownership interest of ULA, we and The Boeing Company (Boeing) have each received distributions from ULA, including distributions of $527 million that we and Boeing have each received (since ULA’s formation in December 2006) which are subject to agreements between us, Boeing, and ULA, whereby, if ULA does not have sufficient cash resources or credit capacity to make required payments under the inventory supply agreement it has with Boeing, both we and Boeing would provide to ULA, in the form of an additional capital contribution, the level of funding required for ULA to make those payments. Any such capital contributions would not exceed the amount of the distributions subject to the agreements. Based on current expectations of ULA’s cash flow needs, we currently believe that ULA should have sufficient operating cash flows and credit capacity, including access to its $560 million revolving credit agreement from third-party financial institutions, to meet its obligations such that we would not be required to make a contribution under these agreements. | |
In addition, both we and Boeing have cross-indemnified each other for guarantees by us and Boeing of the performance and financial obligations of ULA under certain launch service contracts. We believe ULA will be able to fully perform its obligations, as it has done through March 30, 2014, and that it will not be necessary to make payments under the cross-indemnities or guarantees. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||||||||||
NOTE 7 – FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions): | |||||||||||||||||||||||||
March 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Equity securities | $ | 103 | $ | 103 | $ | — | $ | 77 | $ | 77 | $ | — | |||||||||||||
Mutual funds | 562 | 562 | — | 613 | 613 | — | |||||||||||||||||||
U.S. Government securities | 229 | — | 229 | 238 | — | 238 | |||||||||||||||||||
Other securities | 128 | — | 128 | 131 | — | 131 | |||||||||||||||||||
Derivatives | 21 | — | 21 | 28 | — | 28 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives | 14 | — | 14 | 23 | — | 23 | |||||||||||||||||||
Substantially all assets measured at fair value, other than derivatives, represent investments classified as trading securities held in a separate trust to fund certain of our non-qualified deferred compensation plans and are recorded in other noncurrent assets on our Balance Sheets. The fair values of equity securities and mutual funds are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. The fair values of U.S. Government and other securities are determined using model-derived valuations in which all significant inputs are observable in active markets. The fair values of derivative instruments, which consist of foreign currency exchange forward and interest rate swap contracts, primarily are determined based on the present value of future cash flows using model-derived valuations that use observable inputs such as interest rates, credit spreads, and foreign currency exchange rates. We did not have any transfers of assets or liabilities between levels of the fair value hierarchy during the quarter ended March 30, 2014. | |||||||||||||||||||||||||
We use derivative instruments principally to reduce our exposure to market risks from changes in foreign currency exchange rates and interest rates. We do not enter into or hold derivative instruments for speculative trading purposes. We transact business globally and are subject to risks associated with changing foreign currency exchange rates. We enter into foreign currency hedges such as forward and option contracts that change in value as foreign currency exchange rates change. These contracts hedge forecasted foreign currency transactions in order to mitigate fluctuations in our earnings and cash flows associated with changes in foreign currency exchange rates. We designate foreign currency hedges as cash flow hedges. We also are exposed to the impact of interest rate changes primarily through our borrowing activities. For fixed rate borrowings, we may use variable interest rate swaps, effectively converting fixed rate borrowings to variable rate borrowings in order to reduce the amount of interest paid. These swaps are designated as fair value hedges. For variable rate borrowings, we may use fixed interest rate swaps, effectively converting variable rate borrowings to fixed rate borrowings in order to mitigate the impact of interest rate changes on earnings. These swaps are designated as cash flow hedges. We may also enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting, which are intended to mitigate certain economic exposures. | |||||||||||||||||||||||||
The aggregate notional amount of our outstanding foreign currency hedges at March 30, 2014 and December 31, 2013 was $1.1 billion and $1.0 billion. The aggregate notional amount of our outstanding interest rate swaps at March 30, 2014 and December 31, 2013 was $1.3 billion and $1.2 billion. Derivative instruments did not have a material impact on net earnings and comprehensive income during the quarters ended March 30, 2014 and March 31, 2013. Substantially all of our derivatives are designated for hedge accounting. | |||||||||||||||||||||||||
In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying amounts for cash and cash equivalents, accounts receivable, and accounts payable approximated their fair values. The estimated fair value of our outstanding debt was $7.6 billion and $7.4 billion at March 30, 2014 and December 31, 2013, and the outstanding principal amount was $7.0 billion at both March 30, 2014 and December 31, 2013, excluding unamortized discounts of $880 million and $882 million. The estimated fair values of our outstanding debt were determined based on quoted prices for similar instruments in active markets (Level 2 inputs). |
OTHER
OTHER | 3 Months Ended | ||||||||||||
Mar. 30, 2014 | |||||||||||||
OTHER | ' | ||||||||||||
NOTE 8 – OTHER | |||||||||||||
Changes in Estimates | |||||||||||||
Accounting for contracts using the percentage-of-completion method requires judgment relative to assessing risks, estimating contract sales and costs (including estimating award and incentive fees and penalties related to performance), and making assumptions for schedule and technical issues. Due to the number of years it may take to complete many of our contracts and the scope and nature of the work required to be performed on those contracts, the estimation of total sales and costs at completion is complicated and subject to many variables and, accordingly, is subject to change. When adjustments in estimated total contract sales or estimated total costs are required, any changes from prior estimates are recognized in the current period for the inception-to-date effect of such changes. When estimates of total costs to be incurred on a contract exceed estimates of total sales to be earned, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. | |||||||||||||
Many of our contracts span several years and include highly complex technical requirements. At the outset of a contract, we identify and monitor risks to the achievement of the technical, schedule, and cost aspects of the contract, and assess the effects of those risks on our estimates of total costs to complete the contract. The estimates consider the technical requirements (e.g., a newly-developed product versus a mature product), the schedule and associated tasks (e.g., the number and type of milestone events), and costs (e.g., material, labor, subcontractor, and overhead). The initial profit booking rate of each contract considers risks surrounding the ability to achieve the technical requirements, schedule, and costs in the initial estimated total costs to complete. Profit booking rates may increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule, and cost aspects of the contract. Conversely, our profit booking rates may decrease if the estimated total costs to complete the contract increase. All of the estimates are subject to change during the performance of the contract and may affect the profit booking rate. | |||||||||||||
In addition, comparability of our segment sales, operating profit, and operating margins may be impacted by changes in profit booking rates on our contracts accounted for using the percentage-of-completion method of accounting. Segment operating profit and margins may also be impacted, favorably or unfavorably, by other matters such as the resolution of contractual matters; restructuring charges, except for significant severance actions as mentioned below; cost recoveries on all restructuring charges; reserves for disputes; asset impairments; and insurance recoveries; among others. Our consolidated net adjustments not related to volume, including net profit booking rate adjustments and other matters, increased segment operating profit, net of state income taxes, by approximately $525 million and $470 million for the quarters ended March 30, 2014 and March 31, 2013. These adjustments increased net earnings by approximately $340 million ($1.05 per share) and $305 million ($.93 per share) for the quarters ended March 30, 2014 and March 31, 2013. | |||||||||||||
Stockholders’ Equity | |||||||||||||
Repurchases of Common Stock | |||||||||||||
During the quarter ended March 30, 2014, we repurchased 7.0 million shares of our common stock for $1.1 billion. We had total remaining authorization of $2.5 billion for future common share repurchases under our program as of March 30, 2014. As we repurchase our common shares, we reduce common stock for the $1 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. | |||||||||||||
Restricted Stock Unit and Performance Stock Unit Grants | |||||||||||||
In January 2014, we granted certain employees approximately 0.7 million restricted stock units (RSUs) with a grant-date fair value of $146.85 per RSU. The grant-date fair value of these RSUs is equal to the closing market price of our common stock on the grant date less a discount to reflect the delay in payment of dividend-equivalent cash payments that are made only upon vesting, which is generally three years from the grant date. We recognize the grant-date fair value of RSUs, less estimated forfeitures, as compensation expense ratably over the requisite service period, which is shorter than the vesting period if the employee is retirement eligible on the date of grant or will become retirement eligible before the end of the vesting period. | |||||||||||||
In January 2014, we also granted certain employees performance stock units (PSUs) with an aggregate target award of approximately 0.2 million shares of our common stock. The PSUs vest three years from the grant date based on continuous service, with the number of shares earned (0% to 200% of the target award) depending upon the extent to which we achieve certain financial and market performance targets measured over the period from January 1, 2014 through December 31, 2016. About half of the PSUs were valued at $146.85 per PSU in a manner similar to RSUs discussed above as the financial targets are based on our operating results. We recognize the grant-date fair value of these PSUs, less estimated forfeitures, as compensation expense ratably over the vesting period based on the number of awards expected to vest at each reporting date. The remaining PSUs were valued at $134.15 per PSU using a Monte Carlo model as the performance target is related to our total shareholder return relative to our peer group. We recognize the grant-date fair value of these awards, less estimated forfeitures, as compensation expense ratably over the vesting period. | |||||||||||||
Dividends | |||||||||||||
We declared cash dividends totaling $428 million ($1.33 per share) and $371 million ($1.15 per share) for the quarters ended March 30, 2014 and March 31, 2013. | |||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||
Changes in the balance of accumulated other comprehensive loss (AOCL), net of tax, consisted of the following (in millions): | |||||||||||||
Postretirement | Other, net | AOCL | |||||||||||
Benefit Plans | |||||||||||||
Balance at December 31, 2012 | $ | (13,532) | $ | 39 | $ | (13,493) | |||||||
Other comprehensive loss before reclassifications | — | (40) | (40) | ||||||||||
Amounts reclassified from AOCL | |||||||||||||
Net actuarial losses (a) | 244 | — | 244 | ||||||||||
Prior service cost (a) | 10 | — | 10 | ||||||||||
Other | — | (3) | (3) | ||||||||||
Total reclassified from AOCL | 254 | (3) | 251 | ||||||||||
Total other comprehensive income (loss) | 254 | (43) | 211 | ||||||||||
Balance at March 31, 2013 | $ | (13,278) | $ | (4) | $ | (13,282) | |||||||
Balance at December 31, 2013 | $ | (9,649) | $ | 48 | $ | (9,601) | |||||||
Other comprehensive loss before reclassifications | — | (4) | (4) | ||||||||||
Amounts reclassified from AOCL | |||||||||||||
Net actuarial losses (a) | 153 | — | 153 | ||||||||||
Prior service cost (a) | 14 | — | 14 | ||||||||||
Other | — | 1 | 1 | ||||||||||
Total reclassified from AOCL | 167 | 1 | 168 | ||||||||||
Total other comprehensive income (loss) | 167 | (3) | 164 | ||||||||||
Balance at March 30, 2014 | $ | (9,482) | $ | 45 | $ | (9,437) | |||||||
(a) | Amounts related to our postretirement benefit plans that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented (Note 5). | ||||||||||||
Income Taxes | |||||||||||||
Our effective income tax rates were 30.8% and 25.8% for the quarters ended March 30, 2014 and March 31, 2013. The rates for both periods benefited from tax deductions for U.S. manufacturing activities and for dividends paid to our defined contribution plans with an employee stock ownership plan feature. Additionally, our effective tax rate for the quarter ended March 31, 2013 benefited from $46 million ($.14 per share) in U.S. research and development (R&D) tax credits, which included the full-year 2012 credits and one quarter of the 2013 credits. The American Taxpayer Relief Act, enacted in January 2013, reinstated the R&D tax credit for 2012 and 2013. The R&D tax credit expired on December 31, 2013 and, therefore, we will not recognize its benefits in 2014 unless and until legislation is enacted. | |||||||||||||
We received net tax refunds of approximately $200 million and $540 million during the quarters ended March 30, 2014 and March 31, 2013, primarily attributable to our tax-deductible pension contributions made during the quarters ended December 31, 2013 and 2012. | |||||||||||||
Restructuring Charges | |||||||||||||
Fourth Quarter 2013 Action | |||||||||||||
In November 2013, we committed to a plan to close and consolidate certain facilities and reduce our total workforce by approximately 4,000 positions within our IS&GS, MST, and Space Systems business segments. This plan resulted from a strategic review of our facilities capacity and future workload projections and is intended to better align our organization and cost structure and improve the affordability of our products and services given the changes in U.S. Government spending as well as the rapidly changing competitive and economic landscape. | |||||||||||||
We expect to incur total accelerated costs (e.g., accelerated depreciation expense related to long-lived assets at the sites to be closed) and incremental costs (e.g., relocation of equipment and other employee related costs) of approximately $15 million, $50 million, and $135 million at our IS&GS, MST, and Space Systems business segments through the completion of this plan in 2015. As of March 30, 2014, we have incurred costs of approximately $30 million, inclusive of amounts incurred during the quarter ended March 30, 2014. The accelerated and incremental costs are recorded as incurred in cost of sales on our Statement of Earnings and included in the respective business segment’s results of operations. | |||||||||||||
During the quarter ended December 31, 2013, we incurred severance charges of $171 million, net of state tax benefits, of which $53 million, $37 million, and $81 million related to our IS&GS, MST, and Space Systems business segments. Upon separation, terminated employees receive lump-sum severance payments primarily based on years of service. As of March 30, 2014, we have paid approximately $50 million in severance payments associated with this action, including approximately $35 million paid during the quarter ended March 30, 2014. The remaining severance payments are expected to be paid through the middle of 2015. | |||||||||||||
We expect to recover a substantial amount of the restructuring charges through the pricing of our products and services to the U.S. Government and other customers, with the impact included in the respective business segment’s results of operations. | |||||||||||||
First Quarter 2013 Action | |||||||||||||
During the quarter ended March 31, 2013, we recorded severance charges totaling $30 million, net of state tax benefits, related to our IS&GS business segment, which reduced our net earnings by $19 million ($.06 per share). These severance actions resulted from a strategic review of this business segment to better align our cost structure with changing economic conditions and also reflect changes in program lifecycles. The charges consisted of severance costs associated with the planned elimination of certain positions through either voluntary or involuntary actions. Upon separation, terminated employees received lump-sum severance payments primarily based on years of service, all of which were paid in 2013. |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share | ' | ||||||||
The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions): | |||||||||
Quarters Ended | |||||||||
March 30, | March 31, | ||||||||
2014 | 2013 | ||||||||
Weighted average common shares outstanding for basic computations | 319.1 | 321.7 | |||||||
Weighted average dilutive effect of equity awards | 6.0 | 4.6 | |||||||
Weighted average common shares outstanding for diluted computations | 325.1 | 326.3 | |||||||
BUSINESS_SEGMENT_INFORMATION_T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Summary of Financial Information for Each Business Segment | ' | ||||||||
Summary operating results for each of our business segments were as follows (in millions): | |||||||||
Quarters Ended | |||||||||
March 30, | March 31, | ||||||||
2014 | 2013 | ||||||||
Net sales | |||||||||
Aeronautics | $ | 3,386 | $ | 3,186 | |||||
Information Systems & Global Solutions | 1,910 | 2,106 | |||||||
Missiles and Fire Control | 1,867 | 1,988 | |||||||
Mission Systems and Training | 1,628 | 1,830 | |||||||
Space Systems | 1,859 | 1,960 | |||||||
Total net sales | $ | 10,650 | $ | 11,070 | |||||
Operating profit | |||||||||
Aeronautics | $ | 393 | $ | 379 | |||||
Information Systems & Global Solutions | 174 | 189 | |||||||
Missiles and Fire Control | 358 | 344 | |||||||
Mission Systems and Training | 250 | 201 | |||||||
Space Systems | 254 | 230 | |||||||
Total business segment operating profit | 1,429 | 1,343 | |||||||
Unallocated, net | |||||||||
FAS/CAS pension adjustment | |||||||||
FAS pension expense | (313) | (487) | |||||||
Less: CAS cost | 399 | 366 | |||||||
FAS/CAS pension income (expense) (a) | 86 | (121) | |||||||
Severance charges (b) | — | (30) | |||||||
Stock-based compensation | (48) | (53) | |||||||
Other, net | (35) | (20) | |||||||
Total unallocated, net | 3 | (224) | |||||||
Total consolidated operating profit | $ | 1,432 | $ | 1,119 | |||||
Intersegment sales | |||||||||
Aeronautics | $ | 27 | $ | 50 | |||||
Information Systems & Global Solutions | 176 | 190 | |||||||
Missiles and Fire Control | 87 | 53 | |||||||
Mission Systems and Training | 315 | 227 | |||||||
Space Systems | 27 | 23 | |||||||
Total intersegment sales | $ | 632 | $ | 543 | |||||
(a) | The change in the FAS/CAS pension adjustment from expense to income between the periods was due to lower FAS pension expense in 2014 primarily as a result of the increase in the discount rate used in the measurement of our GAAP postretirement benefit plan obligations at the end of 2013, and incrementally higher CAS costs in 2014 as a result of phasing in the CAS Harmonization rules as discussed in our 2013 Form 10-K. | ||||||||
(b) | Severance charges during the quarter ended March 31, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment (Note 8, under the caption “Restructuring Charges”). Severance charges for initiatives that are not significant are included in business segment operating profit. | ||||||||
Total assets for each of our business segments were as follows (in millions): | |||||||||
March 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Aeronautics | $ | 5,892 | $ | 5,821 | |||||
Information Systems & Global Solutions | 5,834 | 5,798 | |||||||
Missiles and Fire Control | 4,065 | 4,159 | |||||||
Mission Systems and Training | 6,450 | 6,512 | |||||||
Space Systems | 3,776 | 3,522 | |||||||
Total business segment assets | 26,017 | 25,812 | |||||||
Corporate assets (a) | 10,902 | 10,376 | |||||||
Total assets | $ | 36,919 | $ | 36,188 | |||||
(a) | Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans. |
INVENTORIES_NET_Tables
INVENTORIES, NET (Tables) | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Inventories | ' | ||||||||
Inventories, net consisted of the following (in millions): | |||||||||
March 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Work-in-process, primarily related to long-term contracts and programs in progress | $ | 7,080 | $ | 7,073 | |||||
Less: customer advances and progress payments | (4,866) | (4,834) | |||||||
2,214 | 2,239 | ||||||||
Other inventories | 735 | 738 | |||||||
Total inventories, net | $ | 2,949 | $ | 2,977 |
POSTRETIREMENT_BENEFIT_PLANS_T
POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended | ||||||||
Mar. 30, 2014 | |||||||||
Components of Pretax Net Periodic Benefit Costs | ' | ||||||||
The components of our pretax net periodic benefit costs for our qualified defined benefit pension plans and retiree medical and life insurance plans were as follows (in millions): | |||||||||
Quarters Ended | |||||||||
March 30, | March 31, | ||||||||
2014 | 2013 | ||||||||
Qualified defined benefit pension plans | |||||||||
Service cost | $ | 243 | $ | 286 | |||||
Interest cost | 488 | 450 | |||||||
Expected return on plan assets | (660) | (622) | |||||||
Recognized net actuarial losses | 221 | 353 | |||||||
Amortization of prior service cost | 21 | 20 | |||||||
Total net periodic benefit cost | $ | 313 | $ | 487 | |||||
Retiree medical and life insurance plans | |||||||||
Service cost | $ | 5 | $ | 7 | |||||
Interest cost | 31 | 29 | |||||||
Expected return on plan assets | (36) | (36) | |||||||
Recognized net actuarial losses | 6 | 11 | |||||||
Amortization of prior service cost (credit) | 1 | (5) | |||||||
Total net periodic benefit cost | $ | 7 | $ | 6 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 30, 2014 | |||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions): | |||||||||||||||||||||||||
March 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Equity securities | $ | 103 | $ | 103 | $ | — | $ | 77 | $ | 77 | $ | — | |||||||||||||
Mutual funds | 562 | 562 | — | 613 | 613 | — | |||||||||||||||||||
U.S. Government securities | 229 | — | 229 | 238 | — | 238 | |||||||||||||||||||
Other securities | 128 | — | 128 | 131 | — | 131 | |||||||||||||||||||
Derivatives | 21 | — | 21 | 28 | — | 28 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives | 14 | — | 14 | 23 | — | 23 |
OTHER_Tables
OTHER (Tables) | 3 Months Ended | ||||||||||||
Mar. 30, 2014 | |||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
Changes in the balance of accumulated other comprehensive loss (AOCL), net of tax, consisted of the following (in millions): | |||||||||||||
Postretirement | Other, net | AOCL | |||||||||||
Benefit Plans | |||||||||||||
Balance at December 31, 2012 | $ | (13,532) | $ | 39 | $ | (13,493) | |||||||
Other comprehensive loss before reclassifications | — | (40) | (40) | ||||||||||
Amounts reclassified from AOCL | |||||||||||||
Net actuarial losses (a) | 244 | — | 244 | ||||||||||
Prior service cost (a) | 10 | — | 10 | ||||||||||
Other | — | (3) | (3) | ||||||||||
Total reclassified from AOCL | 254 | (3) | 251 | ||||||||||
Total other comprehensive income (loss) | 254 | (43) | 211 | ||||||||||
Balance at March 31, 2013 | $ | (13,278) | $ | (4) | $ | (13,282) | |||||||
Balance at December 31, 2013 | $ | (9,649) | $ | 48 | $ | (9,601) | |||||||
Other comprehensive loss before reclassifications | — | (4) | (4) | ||||||||||
Amounts reclassified from AOCL | |||||||||||||
Net actuarial losses (a) | 153 | — | 153 | ||||||||||
Prior service cost (a) | 14 | — | 14 | ||||||||||
Other | — | 1 | 1 | ||||||||||
Total reclassified from AOCL | 167 | 1 | 168 | ||||||||||
Total other comprehensive income (loss) | 167 | (3) | 164 | ||||||||||
Balance at March 30, 2014 | $ | (9,482) | $ | 45 | $ | (9,437) | |||||||
(a) | Amounts related to our postretirement benefit plans that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented (Note 5). |
Schedule_of_Weighted_Average_S
Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' |
Weighted average common shares outstanding for basic computations | 319.1 | 321.7 |
Weighted average dilutive effect of equity awards | 6 | 4.6 |
Weighted average common shares outstanding for diluted computations | 325.1 | 326.3 |
Earnings_Per_Common_Share_Addi
Earnings Per Common Share - Additional Information (Detail) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Stock options excluded from the computation of diluted earnings per common share, because their inclusion would have been anti-dilutive | 6.4 |
Business_Segment_Information_A
Business Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 30, 2014 | Mar. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Number of business segments | 5 | ' |
F-35 program | Aeronautics | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Program net sales as percent of total net sales | 16.00% | 15.00% |
Summary_of_Financial_Informati
Summary of Financial Information for Each Business Segment (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | $10,650 | ' | $11,070 | |||
Less: CAS cost | 399 | ' | 366 | |||
FAS/CAS pension income (expense) | 86 | [1] | ' | -121 | [1] | |
Severance charges | ' | -171 | -30 | [2] | ||
Stock-based compensation | -48 | ' | -53 | |||
Other, net | -35 | ' | -20 | |||
Total unallocated, net | 3 | ' | -224 | |||
Operating profit | 1,432 | ' | 1,119 | |||
Total assets | 36,919 | 36,188 | ' | |||
Qualified defined benefit pension plans | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
FAS pension expense | -313 | ' | -487 | |||
Information Systems & Global Solutions | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Severance charges | ' | -53 | ' | |||
Mission Systems and Training | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Severance charges | ' | -37 | ' | |||
Space Systems | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Severance charges | ' | -81 | ' | |||
Business segments | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Operating profit | 1,429 | ' | 1,343 | |||
Total assets | 26,017 | 25,812 | ' | |||
Business segments | Aeronautics | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 3,386 | ' | 3,186 | |||
Operating profit | 393 | ' | 379 | |||
Total assets | 5,892 | 5,821 | ' | |||
Business segments | Information Systems & Global Solutions | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 1,910 | ' | 2,106 | |||
Operating profit | 174 | ' | 189 | |||
Total assets | 5,834 | 5,798 | ' | |||
Business segments | Missiles and Fire Control | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 1,867 | ' | 1,988 | |||
Operating profit | 358 | ' | 344 | |||
Total assets | 4,065 | 4,159 | ' | |||
Business segments | Mission Systems and Training | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 1,628 | ' | 1,830 | |||
Operating profit | 250 | ' | 201 | |||
Total assets | 6,450 | 6,512 | ' | |||
Business segments | Space Systems | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 1,859 | ' | 1,960 | |||
Operating profit | 254 | ' | 230 | |||
Total assets | 3,776 | 3,522 | ' | |||
Intersegment elimination | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total intersegment sales | 632 | ' | 543 | |||
Intersegment elimination | Aeronautics | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total intersegment sales | 27 | ' | 50 | |||
Intersegment elimination | Information Systems & Global Solutions | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total intersegment sales | 176 | ' | 190 | |||
Intersegment elimination | Missiles and Fire Control | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total intersegment sales | 87 | ' | 53 | |||
Intersegment elimination | Mission Systems and Training | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total intersegment sales | 315 | ' | 227 | |||
Intersegment elimination | Space Systems | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total intersegment sales | 27 | ' | 23 | |||
Corporate | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total assets | $10,902 | [3] | $10,376 | [3] | ' | |
[1] | The change in the FAS/CAS pension adjustment from expense to income between the periods was due to lower FAS pension expense in 2014 primarily as a result of the increase in the discount rate used in the measurement of our GAAP postretirement benefit plan obligations at the end of 2013, and incrementally higher CAS costs in 2014 as a result of phasing in the CAS Harmonization rules as discussed in our 2013 Form 10-K. | |||||
[2] | Severance charges during the quarter ended March 31, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment (Note 8, under the caption "Restructuring Charges"). Severance charges for initiatives that are not significant are included in business segment operating profit. | |||||
[3] | Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans. |
Inventories_Detail
Inventories (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Work-in-process, primarily related to long-term contracts and programs in progress | $7,080 | $7,073 |
Less: customer advances and progress payments | -4,866 | -4,834 |
Inventory for long term contracts or programs net of customer advances and progress payments | 2,214 | 2,239 |
Other inventories | 735 | 738 |
Total inventories, net | $2,949 | $2,977 |
Components_of_Pretax_Net_Perio
Components of Pretax Net Periodic Benefit Costs (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 |
Qualified defined benefit pension plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | $243 | $286 |
Interest cost | 488 | 450 |
Expected return on plan assets | -660 | -622 |
Recognized net actuarial losses | 221 | 353 |
Amortization of prior service cost (credit) | 21 | 20 |
Total net periodic benefit cost | 313 | 487 |
Retiree medical and life insurance plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | 5 | 7 |
Interest cost | 31 | 29 |
Expected return on plan assets | -36 | -36 |
Recognized net actuarial losses | 6 | 11 |
Amortization of prior service cost (credit) | 1 | -5 |
Total net periodic benefit cost | $7 | $6 |
Postretirement_Benefit_Plans_A
Postretirement Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||
Mar. 30, 2014 | Mar. 31, 2013 | Mar. 30, 2014 | Apr. 23, 2014 | |
Qualified defined benefit pension plans | Qualified defined benefit pension plans | |||
Subsequent Event | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Recognition of previously deferred postretirement benefit plan amounts | $167,000,000 | $254,000,000 | ' | ' |
Recognition of previously deferred postretirement benefit plan amounts, tax | 91,000,000 | 139,000,000 | ' | ' |
Planned defined benefit plan contributions by employer in current fiscal year | ' | ' | 1,000,000,000 | ' |
Contributions made by the employer | ' | ' | ' | $515,000,000 |
Recovered_Sheet1
Legal Proceedings and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 87 Months Ended | |||
Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Apr. 24, 2009 | Mar. 30, 2014 | |
N.Y. Metropolitan Transportation Authority | N.Y. Metropolitan Transportation Authority | United Launch Alliance | |||
Site Contingency [Line Items] | ' | ' | ' | ' | ' |
Contract value | ' | ' | ' | $323,000,000 | ' |
Contract payments received to date | ' | ' | 241,000,000 | ' | ' |
Liabilities recorded relative to environmental matters | 1,000,000,000 | 997,000,000 | ' | ' | ' |
Environmental costs eligible for future recovery | 874,000,000 | 863,000,000 | ' | ' | ' |
Time period environmental costs and recovery of environmental costs are projected over, years | '20 years | ' | ' | ' | ' |
Percentage of expenditures that are reimbursed for certain remediation activities | 50.00% | ' | ' | ' | ' |
Outstanding letters of credit, surety bonds, and third-party guarantees | 2,500,000,000 | 2,400,000,000 | ' | ' | ' |
Third-party guarantees outstanding | 804,000,000 | 696,000,000 | ' | ' | ' |
Percentage of total guarantees that relate to guarantees of contractual performance of joint ventures | 90.00% | 90.00% | ' | ' | ' |
Percentage of ownership interest in affiliated entity | ' | ' | ' | ' | 50.00% |
Dividends that are subject to contingency | ' | ' | ' | ' | 527,000,000 |
Revolving line of credit | ' | ' | ' | ' | $560,000,000 |
Fair_Value_Assets_and_Liabilit
Fair Value, Assets and Liabilities Measured on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Mar. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | $21 | $28 |
Derivative liabilities | 14 | 23 |
Equity securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis | 103 | 77 |
Mutual funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis | 562 | 613 |
U.S. Government securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis | 229 | 238 |
Other securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis | 128 | 131 |
Fair value, inputs, level 1 | Equity securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis | 103 | 77 |
Fair value, inputs, level 1 | Mutual funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis | 562 | 613 |
Fair value, inputs, level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 21 | 28 |
Derivative liabilities | 14 | 23 |
Fair value, inputs, level 2 | U.S. Government securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis | 229 | 238 |
Fair value, inputs, level 2 | Other securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of investments measured on recurring basis | $128 | $131 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Mar. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Estimated fair values of debt instruments | $7,600,000,000 | $7,400,000,000 |
Outstanding principal amount of debt instrument | 7,000,000,000 | 7,000,000,000 |
Unamortized discount on long-term debt | 880,000,000 | 882,000,000 |
Foreign currency contracts | Designated as hedges | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Aggregate notional amount of derivatives | 1,100,000,000 | 1,000,000,000 |
Interest rate swaps | Designated as hedges | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Aggregate notional amount of derivatives | $1,300,000,000 | $1,200,000,000 |
Other_Additional_Information_D
Other - Additional Information (Detail) (USD $) | 3 Months Ended | 5 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 30, 2014 | Nov. 30, 2013 | Dec. 31, 2013 | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Dec. 31, 2013 | Mar. 30, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | |
Information Systems & Global Solutions, Mission Systems & Training, and Space Systems | Information Systems & Global Solutions | Information Systems & Global Solutions | Mission Systems and Training | Mission Systems and Training | Space Systems | Space Systems | Restricted Stock Units (RSUs) | Performance Stock Units (PSUs) | Performance Stock Units (PSUs) | Performance Stock Units (PSUs) | Performance Stock Units (PSUs) | Performance Stock Units (PSUs) | ||||||
Employee | Incremental expected costs as a result of the November 2013 restructuring plan | Incremental expected costs as a result of the November 2013 restructuring plan | Incremental expected costs as a result of the November 2013 restructuring plan | Minimum | Maximum | Half Of PSUs Granted In Period | Remaining Half Of PSUs Granted In Period | |||||||||||
Increase in segment operating profit, net of state taxes, from the impact of changes in net profit booking rate adjustments and other matters | $525,000,000 | ' | $470,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Increase in net earnings from the impact of changes in net profit booking rate adjustments and other matters | 340,000,000 | ' | 305,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Increase in diluted earnings per share from the impact of changes in net profit booking rate adjustments and other matters | $1.05 | ' | $0.93 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of shares repurchased under share repurchase program | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Value of stock repurchased under share repurchase program | 1,106,000,000 | ' | 477,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Remaining authorized repurchase amount under share repurchase program | 2,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Common stock par value, per share | $1 | $1 | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Additional paid-in capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of stock units, granted, in shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.7 | 0.2 | ' | ' | ' | ' | |
Average grant date fair value per unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $146.85 | ' | ' | ' | $146.85 | $134.15 | |
Number of years over which equity awards vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | |
Range of shares that can be earned from stock awards, as a percentage of the target award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 200.00% | ' | ' | |
Dividends declared | 428,000,000 | ' | 371,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Dividends declared, per share (in USD) | $1.33 | ' | $1.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Effective income tax rates | 30.80% | ' | 25.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Recognized tax benefit for the impact of the tax credit | ' | ' | 46,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Increase in diluted earnings per share due to R&D tax credit | ' | ' | $0.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Tax refunds received, net of payments made | 200,000,000 | ' | 540,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of employees terminated | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Expected total accelerated and incremental costs | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | 50,000,000 | ' | 135,000,000 | ' | ' | ' | ' | ' | ' | |
Accelerated and incremental costs incurred | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Severance charges | ' | 171,000,000 | 30,000,000 | [1] | ' | ' | 53,000,000 | ' | 37,000,000 | ' | 81,000,000 | ' | ' | ' | ' | ' | ' | ' |
Severance payments | 35,000,000 | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reduction in net earnings due to severance charges | ' | ' | $19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Decrease in diluted earnings per share due to severance charges | ' | ' | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Severance charges during the quarter ended March 31, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment (Note 8, under the caption "Restructuring Charges"). Severance charges for initiatives that are not significant are included in business segment operating profit. |
Changes_in_Balance_of_Accumula
Changes in Balance of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2014 | Mar. 31, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | ($9,601) | ($13,493) | ||
Other comprehensive loss before reclassifications | -4 | -40 | ||
Net actuarial losses | 153 | [1] | 244 | [1] |
Prior service cost | 14 | [1] | 10 | [1] |
Other | 1 | -3 | ||
Total reclassified from AOCL | 168 | 251 | ||
Other comprehensive income (loss), net of tax | 164 | 211 | ||
Ending balance | -9,437 | -13,282 | ||
Postretirement Benefit Plan Adjustments | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | -9,649 | -13,532 | ||
Net actuarial losses | 153 | [1] | 244 | [1] |
Prior service cost | 14 | [1] | 10 | [1] |
Total reclassified from AOCL | 167 | 254 | ||
Other comprehensive income (loss), net of tax | 167 | 254 | ||
Ending balance | -9,482 | -13,278 | ||
Other, net | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | 48 | 39 | ||
Other comprehensive loss before reclassifications | -4 | -40 | ||
Other | 1 | -3 | ||
Total reclassified from AOCL | 1 | -3 | ||
Other comprehensive income (loss), net of tax | -3 | -43 | ||
Ending balance | $45 | ($4) | ||
[1] | Amounts related to our postretirement benefit plans that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented (Note 5). |