0000936468-17-000014 | 10-Q | XBRL Viewer

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Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 24, 2017 shares
Document And Entity Information [Abstract]
Entity Registrant Name	LOCKHEED MARTIN CORP
Trading Symbol	LMT
Entity Central Index Key	0000936468
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 24, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	286,734,181

Consolidated Statements of Earnings - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Consolidated Statements of Earnings - USD ($) $ in Millions	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Net sales
Products	$ 10,496	$ 10,062	$ 30,837	$ 28,629
Services	1,673	1,489	5,074	4,867
Total net sales	12,169	11,551	35,911	33,496
Cost of sales
Products	(9,481)	(9,027)	(27,919)	(25,787)
Services	(1,513)	(1,313)	(4,547)	(4,321)
Severance charges	0	0	0	(80)
Other unallocated, net	176	173	484	401
Total cost of sales	(10,818)	(10,167)	(31,982)	(29,787)
Gross profit	1,351	1,384	3,929	3,709
Other income, net	77	204	133	412
Operating profit	1,428	1,588	4,062	4,121
Interest expense	(162)	(162)	(477)	(492)
Other non-operating (expense) income, net	(7)	1	(8)	2
Earnings from continuing operations before income taxes	1,259	1,427	3,577	3,631
Income tax expense	(320)	(338)	(933)	(837)
Net earnings from continuing operations	939	1,089	2,644	2,794
Net earnings from discontinued operations	0	1,306	0	1,520
Net earnings	$ 939	$ 2,395	$ 2,644	$ 4,314
Basic
Continuing operations (in dollars per share)	$ 3.27	$ 3.64	$ 9.16	$ 9.25
Discontinued operations (in dollars per share)	0.00	4.38	0.00	5.03
Basic earnings per common share (in dollars per share)	3.27	8.02	9.16	14.28
Diluted
Continuing operations (in dollars per share)	3.24	3.61	9.08	9.13
Discontinued operations (in dollars per share)	0.00	4.32	0.00	4.97
Diluted earnings per common share (in dollars per share)	3.24	7.93	9.08	14.10
Cash dividends paid per common share (in dollars per share)	$ 1.82	$ 1.65	$ 5.46	$ 4.95

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Statement of Comprehensive Income [Abstract]
Net earnings	$ 939	$ 2,395	$ 2,644	$ 4,314
Postretirement benefit plans
Amounts reclassified from accumulated other comprehensive loss	200	175	602	521
Reclassification from divestiture of IS&GS	0	(134)	0	(134)
Other comprehensive gain recognized during the period	0	0	3	0
Other, net	77	72	137	66
Other comprehensive income, net of tax	277	113	742	453
Comprehensive income	$ 1,216	$ 2,508	$ 3,386	$ 4,767

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 24, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 2,941	$ 1,837
Receivables, net	9,021	8,202
Inventories, net	4,803	4,670
Other current assets	443	399
Total current assets	17,208	15,108
Property, plant and equipment, net	5,511	5,549
Goodwill	10,812	10,764
Intangible assets, net	3,877	4,093
Deferred income taxes	5,970	6,625
Other noncurrent assets	5,568	5,667
Total assets	48,946	47,806
Current liabilities
Accounts payable	2,848	1,653
Customer advances and amounts in excess of costs incurred	6,195	6,776
Salaries, benefits and payroll taxes	1,895	1,764
Other current liabilities	2,146	2,349
Total current liabilities	13,084	12,542
Long-term debt, net	14,268	14,282
Accrued pension liabilities	13,998	13,855
Other postretirement benefit liabilities	858	862
Other noncurrent liabilities	4,563	4,659
Total liabilities	46,771	46,200
Stockholders’ equity
Common stock, $1 par value per share	285	289
Additional paid-in capital	0	0
Retained earnings	13,173	13,324
Accumulated other comprehensive loss	(11,360)	(12,102)
Total stockholders’ equity	2,098	1,511
Noncontrolling interests in subsidiary	77	95
Total equity	2,175	1,606
Total liabilities and equity	$ 48,946	$ 47,806

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 24, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1	$ 1

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
Operating activities
Net earnings	$ 2,644	$ 4,314
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	880	888
Stock-based compensation	133	124
Severance charges	0	99
Gain on divestiture of IS&GS business segment	0	(1,234)
Gain on step acquisition of AWE	0	(104)
Changes in assets and liabilities
Receivables, net	(819)	(1,537)
Inventories, net	(133)	(235)
Accounts payable	1,229	1,033
Customer advances and amounts in excess of costs incurred	(581)	57
Postretirement benefit plans	1,012	787
Income taxes	(202)	37
Other, net	801	231
Net cash provided by operating activities	4,964	4,460
Investing activities
Capital expenditures	(670)	(627)
Other, net	15	76
Net cash used for investing activities	(655)	(551)
Financing activities
Special cash payment from divestiture of IS&GS business segment	0	1,800
Repurchases of common stock	(1,500)	(1,280)
Dividends paid	(1,591)	(1,518)
Repayments of long-term debt	0	(952)
Proceeds from stock option exercises	62	75
Other, net	(176)	(229)
Net cash used for financing activities	(3,205)	(2,104)
Net change in cash and cash equivalents	1,104	1,805
Cash and cash equivalents at beginning of period	1,837	1,090
Cash and cash equivalents at end of period	$ 2,941	$ 2,895

Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total Stockholders’ Equity	Noncontrolling Interests in Subsidiary
Beginning Balance at Dec. 31, 2015	$ 3,097	$ 303	$ 0	$ 14,238	$ (11,444)	$ 3,097	$ 0
Increase (Decrease) in Stockholders' Equity
Net earnings	4,314			4,314		4,314
Other comprehensive income, net of tax	453				453	453
Shares tendered and retired in connection with divestiture of IS&GS business segment	(2,497)	(9)		(2,488)		(2,497)
Repurchases of common stock	(1,280)	(6)	(272)	(1,002)		(1,280)
Dividends declared	(2,056)			(2,056)		(2,056)
Stock-based awards and ESOP activity	292	3	272	17		292
Net increase in noncontrolling interests in subsidiary	107						107
Ending Balance at Sep. 25, 2016	2,430	291	0	13,023	(10,991)	2,323	107
Beginning Balance at Dec. 31, 2016	1,606	289	0	13,324	(12,102)	1,511	95
Increase (Decrease) in Stockholders' Equity
Net earnings	2,644			2,644		2,644
Other comprehensive income, net of tax	742				742	742
Repurchases of common stock	(1,500)	(5)	(282)	(1,213)		(1,500)
Dividends declared	(1,582)			(1,582)		(1,582)
Stock-based awards and ESOP activity	283	1	282			283
Net decrease in noncontrolling interests in subsidiary	(18)						(18)
Ending Balance at Sep. 24, 2017	$ 2,175	$ 285	$ 0	$ 13,173	$ (11,360)	$ 2,098	$ 77

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 24, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION We prepared these consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. 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, 2016 (2016 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 close our books and records on the last Sunday of the calendar quarter, which was on September 24 for the third quarter of 2017 and September 25 for the third quarter of 2016, to align our financial closing with our business processes. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods as our fiscal year ends on December 31. The discussion and presentation of the operating results of our business segments have been impacted by the following recent events. On August 16, 2016, we divested our former Information Systems & Global Solutions (IS&GS) business, which merged with Leidos Holdings, Inc. (Leidos) in a Reverse Morris Trust transaction. Accordingly, the operating results of the IS&GS business for the quarter and nine months ended September 25, 2016 have been classified as discontinued operations in the consolidated statements of earnings. However, the cash flows of the IS&GS business for the nine months ended September 25, 2016 have not been reclassified in our consolidated statement of cash flows as we retained the cash as part of the transaction. See “Note 3 – Divestiture” for additional information about the divestiture of the IS&GS business. On August 24, 2016, we increased our ownership interest in the AWE Management Limited (AWE) joint venture from 33% to 51%, at which time we began consolidating AWE. Consequently, our operating results for the quarter and nine months ended September 24, 2017 include 100% of AWE’s sales and 51% of its operating profit. Prior to increasing our ownership interest, we accounted for our investment in AWE using the equity method of accounting. Under the equity method, we recognized only 33% of AWE’s earnings or losses and no sales. Accordingly, prior to August 24, 2016, the date we obtained control, we recorded 33% of AWE's net earnings in our operating results and subsequent to August 24, 2016, we recognized 100% of AWE's sales and 51% of its operating profit. Additionally, during the quarter and nine months ended September 25, 2016, we recorded a gain of $104 million associated with obtaining control of AWE, which consisted of a $127 million pre-tax gain recognized in the operating results of our Space Systems business segment and $23 million of deferred tax liabilities recorded at our corporate office. 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 2016 Form 10-K.

EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 24, 2017

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions):



	Quarters Ended		Nine Months Ended
	September 24, 2017	September 25, 2016	September 24, 2017	September 25, 2016
Weighted average common shares outstanding for basic computations	287.1	298.5	288.5	302.0
Weighted average dilutive effect of equity awards	2.9	3.6	2.8	3.9
Weighted average common shares outstanding for diluted computations	290.0	302.1	291.3	305.9

We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units (RSUs) and performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method. There were no significant anti-dilutive equity awards during the quarters and nine months ended September 24, 2017 or September 25, 2016.

DIVESTITURE

9 Months Ended

Sep. 24, 2017

Discontinued Operations and Disposal Groups [Abstract]

DIVESTITURE

Divestiture of the Information Systems & Global Solutions Business

On August 16, 2016, we divested our former IS&GS business, which merged with Leidos, in a Reverse Morris Trust transaction (the Transaction). The Transaction was completed in a multi-step process pursuant to which we initially contributed the IS&GS business to Abacus Innovations Corporation (Abacus), a wholly-owned subsidiary of Lockheed Martin created to facilitate the Transaction, and the common stock of Abacus was distributed to participating Lockheed Martin stockholders through an exchange offer. Under the terms of the exchange offer, Lockheed Martin stockholders had the option to exchange shares of Lockheed Martin common stock for shares of Abacus common stock. At the conclusion of the exchange offer, all shares of Abacus common stock were exchanged for 9,369,694 shares of Lockheed Martin common stock held by Lockheed Martin stockholders that elected to participate in the exchange. The shares of Lockheed Martin common stock that were exchanged and accepted were retired, reducing the number of shares of our common stock outstanding by approximately 3%. Following the exchange offer, Abacus merged with a subsidiary of Leidos, with Abacus continuing as the surviving corporation and a wholly-owned subsidiary of Leidos.

As a result of the Transaction, we recognized a net gain of $1.2 billion in net earnings from discontinued operations during the quarter and nine months ended September 25, 2016. The net gain represents the $2.5 billion fair value of the shares of Lockheed Martin common stock exchanged and retired as part of the exchange offer, plus a $1.8 billion one-time special cash payment received from Abacus, less the net book value of the IS&GS business of about $3.0 billion at August 16, 2016 and other adjustments of about $100 million. The final gain is subject to certain post-closing adjustments, including final working capital, indemnification, and tax adjustments.

The operating results of the IS&GS business that have been reflected within net earnings from discontinued operations for the quarter and nine months ended September 25, 2016 are as follows (in millions):



	Quarter Ended			Nine Months Ended
Net sales	$	739		$	3,410
Cost of sales	(635		)	(2,953		)
Severance charges	—			(19		)
Gross profit	104			438
Other income, net	19			16
Operating profit	123			454
Earnings from discontinued operations before income taxes	123			454
Income tax expense	(51		)	(168		)
Net gain on divestiture of discontinued operations	1,234			1,234
Net earnings from discontinued operations	$	1,306		$	1,520

The operating results of the IS&GS business reported as discontinued operations for the quarter and nine months ended September 25, 2016 are different than the results previously reported for our former IS&GS business segment. Certain corporate overhead and pension costs that were historically allocated to and included in the operating results of IS&GS during the quarter and nine months ended September 25, 2016 have been reclassified into unallocated items and included in the results of our continuing operations because they were not directly attributable to IS&GS and we continue to incur these costs subsequent to the divestiture.

The amount of corporate overhead costs previously included in the operating results of IS&GS that have been reclassified to and included in our earnings from continuing operations were $17 million and $82 million during the quarter and nine months ended September 25, 2016. These costs are included in the other unallocated, net line. Additionally, we retained all assets and obligations related to the pension benefits earned by former IS&GS salaried employees through the date of the divestiture. We continue to incur the non-service portion of net pension costs (e.g., interest cost, actuarial gains and losses and expected return on plan assets) for these employees subsequent to the divestiture. The amount of the non-service pension costs previously included in the operating results of IS&GS that have been reclassified to and included in our continuing operations were $11 million and $54 million during the quarter and nine months ended September 25, 2016. These costs are included in the other unallocated, net line.

Financial information related to cash flows generated by the IS&GS business, such as depreciation and amortization, capital expenditures, and other non-cash items included in our consolidated statement of cash flows for the nine months ended September 25, 2016 were not significant.

In connection with the Transaction, Lockheed Martin retained certain liabilities, including liabilities associated with the New York Metropolitan Transportation Authority and its Capital Construction Company (collectively, the MTA) litigation discussed in “Note 7 – Legal Proceedings and Contingencies,” and has indemnified Abacus and Leidos in connection with other liabilities associated with the IS&GS business, including certain liabilities associated with ongoing investigations by the Department of Energy and the Department of Justice (DOJ) relating to the IS&GS business's involvement in the Mission Support Alliance, LLC (MSA) joint venture that manages and operates the Hanford Nuclear site for the Department of Energy. The DOJ has issued a number of Civil Investigative Demands to MSA, Lockheed Martin and the subsidiary of Lockheed Martin that performed information technology services for MSA, as well as current and former employees of each of these entities, and is continuing its False Claims Act investigation into matters involving MSA and the IS&GS business. The DOJ also is conducting a parallel criminal investigation. The investigations relate primarily to certain information technology services performed by a subsidiary of Lockheed Martin under a fixed price/fixed unit rate subcontract to MSA. In the event that the DOJ were to pursue a claim in connection with the ongoing MSA investigation, through the indemnification provisions agreed to as part of the Transaction, Lockheed Martin and Leidos have allocated liabilities between themselves.

INFORMATION ON BUSINESS SEGMENTS

9 Months Ended

Sep. 24, 2017

Segment Reporting [Abstract]

INFORMATION ON BUSINESS SEGMENTS

We operate in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space Systems. We organize our business segments based on the nature of the products and services offered.

The financial information in the following tables excludes businesses included in discontinued operations for all periods presented and includes the results of businesses we have acquired from their respective acquisition dates (see “Note 1 – Basis of Presentation”).

Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation. Under the equity method of accounting for nonconsolidated ventures and investments, we include our share of the operating profit related to these ventures in operating profit of our business segments as the operating activities of equity method investees are closely aligned with the operations of our business segments. United Launch Alliance (ULA), results of which are included in 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 and certain asset impairments; gains or losses from significant 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 items” between operating profit from our business segments and our consolidated operating profit. See “Note 10 – Other” (under the caption “Changes in Estimates”) for a discussion related to certain factors that may impact the comparability of net sales and operating profit of our business segments.

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 pension cost. We recover CAS pension cost through the pricing of our products and services on U.S. Government contracts and, therefore, the CAS pension 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 cost recorded in our business segments’ results of operations to equal the FAS pension expense.

Summary operating results for each of our business segments were as follows (in millions):



	Quarters Ended						Nine Months Ended
	September 24, 2017			September 25, 2016			September 24, 2017			September 25, 2016
Net sales
Aeronautics	$	4,771		$	4,188		$	14,102		$	12,362
Missiles and Fire Control	1,793			1,737			4,919			4,851
Rotary and Mission Systems	3,353			3,346			9,864			9,653
Space Systems	2,252			2,280			7,026			6,630
Total net sales	$	12,169		$	11,551		$	35,911		$	33,496
Operating profit
Aeronautics	$	517		$	437		$	1,503		$	1,335
Missiles and Fire Control	270			289			757			763
Rotary and Mission Systems	244			247			606			678
Space Systems ^(a)	218			450			762			1,034
Total business segment operating profit	1,249			1,423			3,628			3,810
Unallocated items
FAS/CAS pension adjustment
FAS pension expense	(342		)	(256		)	(1,030		)	(758		)
Less: CAS pension cost	562			482			1,686			1,430
FAS/CAS pension adjustment	220			226			656			672
Stock-based compensation	(32		)	(28		)	(133		)	(124		)
Severance charges	—			—			—			(80		)
Other, net ^{(b) (c)}	(9		)	(33		)	(89		)	(157		)
Total unallocated items	179			165			434			311
Total consolidated operating profit	$	1,428		$	1,588		$	4,062		$	4,121
Intersegment sales
Aeronautics	$	33		$	30		$	98		$	105
Missiles and Fire Control	104			81			253			225
Rotary and Mission Systems	452			469			1,438			1,382
Space Systems	31			21			76			90
Total intersegment sales	$	620		$	601		$	1,865		$	1,802

^(a)

On August 24, 2016, our ownership interest in the AWE joint venture increased from 33% to 51% and we were required to change our accounting for this investment from the equity method to consolidation. As a result of the increased ownership interest, we recognized a non-cash gain of $127 million at our Space Systems business segment, which increased net earnings from continuing operations by $104 million ($0.34 per share) in the quarter and nine months ended September 25, 2016. See “Note 1 – Basis of Presentation” for more information.


^(b)	During the nine months ended September 24, 2017, we recognized a $64 million charge, which represents our portion of a noncash asset impairment charge recorded by our equity method investee, Advanced Military Maintenance, Repair and Overhaul Center LLC (AMMROC). See “Note 10 – Other” (under the caption “Equity Method Investee Impairment”) for more information.


^(c)	Includes $17 million and $82 million of corporate overhead costs incurred during the quarter and nine months ended September 25, 2016 that were previously allocated to our former IS&GS business. See “Note 3 – Divestiture” for more information.

Total assets for each of our business segments were as follows (in millions):



	September 24, 2017		December 31, 2016
Assets
Aeronautics	$	7,918	$	7,896
Missiles and Fire Control	4,510		4,000
Rotary and Mission Systems	18,500		18,367
Space Systems	5,425		5,250
Total business segment assets	36,353		35,513
Corporate assets ^(a)	12,593		12,293
Total assets	$	48,946	$	47,806


^(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 26% and 25% of our total consolidated net sales for the quarter and nine months ended September 24, 2017 and 23% of our total consolidated net sales for both the quarter and nine months ended September 25, 2016.

INVENTORIES, NET

9 Months Ended

Sep. 24, 2017

Inventory Disclosure [Abstract]

INVENTORIES, NET

Inventories, net consisted of the following (in millions):



	September 24, 2017			December 31, 2016
Work-in-process, primarily related to long-term contracts and programs in progress	$	7,720		$	7,864
Spare parts, used aircraft and general stock materials	798			833
Other inventories	767			719
Total inventories	9,285			9,416
Less: customer advances and progress payments	(4,482		)	(4,746		)
Total inventories, net	$	4,803		$	4,670

POSTRETIREMENT PLANS

9 Months Ended

Sep. 24, 2017

Retirement Benefits [Abstract]

POSTRETIREMENT PLANS

Our pretax net periodic benefit cost related to our qualified defined benefit pension plans and retiree medical and life insurance plans consisted of the following (in millions):



	Quarters Ended						Nine Months Ended
	September 24, 2017			September 25, 2016			September 24, 2017			September 25, 2016
Qualified defined benefit pension plans
Service cost	$	205		$	208		$	615		$	615
Interest cost	452			465			1,357			1,396
Expected return on plan assets	(602		)	(667		)	(1,806		)	(2,000		)
Recognized net actuarial losses	376			340			1,129			1,019
Amortization of prior service credits	(89		)	(90		)	(265		)	(272		)
Total net periodic benefit cost	$	342		$	256		$	1,030		$	758
Retiree medical and life insurance plans
Service cost	$	5		$	6		$	15		$	18
Interest cost	25			30			76			89
Expected return on plan assets	(31		)	(34		)	(95		)	(103		)
Recognized net actuarial losses	4			8			14			25
Amortization of prior service costs	4			5			11			16
Total net periodic benefit cost	$	7		$	15		$	21		$	45

The recognized net actuarial losses and amortization of net prior service (credits) costs in the table above, along with similar amounts related to our other postretirement benefit plans and 2016 IS&GS reclassifications to discontinued operations ($14 million and $41 million during the quarter and nine months ended September 24, 2017 and $8 million and $18 million for the quarter and nine months ended September 25, 2016), were reclassified from accumulated other comprehensive loss (AOCL) and recorded as a component of net periodic benefit cost for the periods presented. These costs totaled $309 million ($200 million, net of tax) and $930 million ($602 million, net of tax) during the quarter and nine months ended September 24, 2017 and $271 million ($175 million, net of tax) and $806 million ($521 million, net of tax) during the quarter and nine months ended September 25, 2016, which were recorded on our consolidated statements of comprehensive income as an increase to other comprehensive income.

The funding of our qualified defined benefit pension plans is determined in accordance with the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006 (PPA), and in a manner consistent with CAS and Internal Revenue Code rules. There were no material contributions to our qualified defined benefit pension plans during the quarters and nine months ended September 24, 2017 and September 25, 2016. Currently, we do not plan to make material contributions to our pension plans in 2017, because none are required using current assumptions, including anticipated investment returns on plan assets.

LEGAL PROCEEDINGS AND CONTINGENCIES	9 Months Ended
LEGAL PROCEEDINGS AND CONTINGENCIES	Sep. 24, 2017
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS AND CONTINGENCIES	LEGAL PROCEEDINGS AND CONTINGENCIES We are a party to or have property subject to litigation and other proceedings that arise in the ordinary course of our business, including matters arising under provisions relating to 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 sanctions or relief. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. Although we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made. We follow a thorough process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. Legal Proceedings As a result of our acquisition of Sikorsky Aircraft Corporation (Sikorsky), we assumed the defense of and any potential liability for the following civil False Claims Act lawsuit. In October 2014, the U.S. Government filed a complaint in intervention in the U.S. District Court for the Eastern District of Wisconsin in a lawsuit brought by qui tam relator Mary Patzer, a former Derco Aerospace (Derco) employee. The Government alleged that Sikorsky and two of its wholly-owned subsidiaries, Derco and Sikorsky Support Services, Inc. (SSSI), violated the civil False Claims Act in connection with a contract that the U.S. Navy awarded to SSSI in June 2006 to support the Navy’s T-34 and T-44 fixed-wing turboprop training aircraft. SSSI subcontracted with Derco primarily to procure and manage the spare parts for the training aircraft. The Government alleges that SSSI overbilled the Navy on the contract because Derco used prohibited cost-plus-percentage-of-cost pricing to add profit and overhead costs as a percentage of the price of the spare parts that Derco procured and then sold to SSSI. The Government also claims that SSSI submitted false Certificates of Final Indirect Costs in the years 2006 through 2012. The Government’s complaint asserts numerous claims for violations of the False Claims Act, breach of contract and unjust enrichment. On March 16, 2017, the U.S. Government filed a notice of partial intervention in a lawsuit also pending in the U.S. District Court for the Eastern District of Wisconsin brought by qui tam relator Peter Cimma, a former SSSI employee, against Sikorsky, SSSI and Derco. On May 26, 2017, the Government filed its complaint in intervention, alleging claims against SSSI and Derco under the False Claims Act, Anti-Kickback Act, Truth-in-Negotiations Act, and common law. The Government declined to intervene in Cimma’s allegations against Sikorsky. The Government’s claims against SSSI and Derco rely on many of the same facts and legal elements as in its Patzer complaint, but for a later contract and time period, and add purported violations of the Anti-Kickback Act based on Derco’s allowing SSSI to take a chargeback against Derco’s monthly invoice in exchange for the “highly favorable” pricing arrangement. The Government has indicated that it intends to amend its complaint in Patzer to add claims under the False Claims Act and Anti-Kickback Act related to the chargeback. The Government currently seeks damages in these lawsuits of approximately $52 million, subject to trebling, plus statutory penalties. We believe that we have legal and factual defenses to the Government’s claims. Although we continue to evaluate our liability and exposure, we do not currently believe that it is probable that we will incur a material loss. If, contrary to our expectations, the Government prevails in this matter and proves damages at or near $52 million and is successful in having such damages trebled, the outcome could have an adverse effect on our results of operations in the period in which a liability is recognized and on our cash flows for the period in which any damages are paid. On April 24, 2009, we filed a declaratory judgment action against the MTA asking the U.S. District Court for the Southern District of New York to find that the MTA is in material breach of our agreement based on the MTA’s failure to provide access to sites where work must be performed and the customer-furnished equipment necessary to complete the contract. The MTA filed an answer and counterclaim alleging that we breached the contract and subsequently terminated the contract for alleged default. The primary damages sought by the MTA are the 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, and that the MTA is seeking damages of approximately $190 million. We dispute the MTA’s allegations and are defending against them. Additionally, following an investigation, our sureties on a performance bond related to this matter, who were represented by independent counsel, concluded that the MTA’s termination of the contract was improper. Finally, our declaratory judgment action was later amended to include claims for monetary damages against the MTA of approximately $95 million. This matter was taken under submission by the District Court in December 2014, after a five-week bench trial and the filing of post-trial pleadings by the parties. We continue to await a decision from the District Court. Although this matter relates to our former IS&GS business, we retained the litigation when we divested IS&GS. Environmental Matters We are involved in proceedings and potential proceedings relating to soil, sediment, surface water and groundwater contamination, disposal of hazardous waste and other environmental matters at several of our current or former facilities and at third-party sites where we have been designated as a potentially responsible party (PRP). A substantial portion of environmental costs will be included in our net sales and cost of sales in future periods pursuant to U.S. Government regulations. At the time a liability is recorded for future environmental costs, we record a receivable for estimated future recovery considered probable through the pricing of products and services to agencies of the U.S. Government, regardless of the contract form (e.g., cost-reimbursable, fixed-price). We continually evaluate the recoverability of our environmental receivables by assessing, among other factors, U.S. Government regulations, our U.S. Government business base and contract mix, our history of receiving reimbursement of such costs, and efforts by some U.S. Government representatives to limit such reimbursement. We include the portion of those environmental costs expected to be allocated to our non-U.S. Government contracts, or that is determined to not be recoverable under U.S. Government contracts, in our cost of sales at the time the liability is established. At September 24, 2017 and December 31, 2016, the aggregate amount of liabilities recorded relative to environmental matters was $952 million and $1.0 billion, most of which are recorded in other noncurrent liabilities on our consolidated balance sheets. We have recorded receivables totaling $825 million and $870 million at September 24, 2017 and December 31, 2016, most of which are recorded in other noncurrent assets on our consolidated balance sheets, for the estimated future recovery of these costs, as we consider the recovery probable based on the factors previously mentioned. We project costs and recovery of costs over approximately 20 years. Environmental remediation activities usually span many years, which makes estimating liabilities a matter of judgment because of uncertainties with respect to assessing the extent of the contamination as well as such factors as changing remediation technologies and changing regulatory environmental standards. There are a number of former and present operating facilities that we are monitoring or investigating for potential future remediation. We perform quarterly reviews of the status of our environmental remediation sites and the related liabilities and receivables. Additionally, in our quarterly reviews, we consider these and other factors in estimating the timing and amount of any future costs that may be required for remediation activities and record a liability when it is probable that a loss has occurred and the loss can be reasonably estimated. The amount of liability recorded is based on our estimate of the costs to be incurred for remediation at a particular site. We do not discount the recorded liabilities, as the amount and timing of future cash payments are not fixed or cannot be reliably determined. We reasonably cannot determine the extent of our financial exposure in all cases as, although a loss may be probable or reasonably possible, in some cases it is not possible at this time to estimate the loss or reasonably possible loss or range of loss. We also pursue claims for recovery of costs incurred or contribution to site cleanup costs against other PRPs, including the U.S. Government, and are conducting remediation activities under various consent decrees, orders, and agreements relating to soil, groundwater, sediment or surface water contamination at certain sites of former or current operations. Under agreements related to certain sites in California and New York, the U.S. Government reimburses us an amount equal to a percentage, specific to each site, of expenditures for certain remediation activities in the U.S. Government’s capacity as a PRP under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). In addition to the proceedings and potential proceedings discussed above, California previously established a maximum level of the contaminant hexavalent chromium in drinking water of 10 parts per billion (ppb). Recently, this standard was successfully challenged by the California Manufacturers and Technology Association (CMTA) for failure to conduct the required economic feasibility analysis. In response to the court's ruling, the State Water Resources Control Board (State Board) withdrew the hexavalent chromium standard from the published regulations, leaving only the 50 ppb standard for total chromium. The State Board has indicated it will work to re-establish a hexavalent chromium standard. If the standard for hexavalent chromium is re-established at 10 ppb or above, it will not have a material impact on our existing remediation costs in California. Further, the U.S. Environmental Protection Agency (U.S. EPA) is considering whether to regulate hexavalent chromium. California is also reevaluating its existing drinking water standard of 6 ppb for perchlorate, and the U.S. EPA is taking steps to regulate perchlorate in drinking water. If substantially lower standards are adopted, in either California or at the federal level for perchlorate or for hexavalent chromium, we expect a material increase in our estimates for environmental liabilities and the related assets for the portion of the increased costs that are probable of future recovery in the pricing of our products and services for the U.S. Government. The amount that would be allocable to our non-U.S. Government contracts or that is determined to not be recoverable under U.S. Government contracts would be expensed, which may have a material effect on our earnings in any particular interim reporting period. Letters of Credit, Surety Bonds and Third-Party Guarantees We have entered into standby letters of credit and surety bonds issued on our behalf by financial institutions, and directly issued guarantees to third parties primarily relating to advances received from customers and the guarantee of future performance on certain contracts. Letters of credit and surety bonds generally are available for draw down in the event we do not perform. In some cases, we may guarantee the contractual performance of third parties such as venture partners. We had total outstanding letters of credit, surety bonds and third-party guarantees aggregating $3.3 billion and $3.7 billion at September 24, 2017 and December 31, 2016. Third-party guarantees do not include guarantees of subsidiaries and other consolidated entities. At September 24, 2017 and December 31, 2016, third-party guarantees totaled $726 million and $709 million, of which approximately 60% and 56% 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. In determining our exposures, we evaluate the reputation, technical capabilities and credit quality of our current and former venture partners. There were no material amounts recorded in our consolidated financial statements related to third-party guarantees. United Launch Alliance In connection with our 50% ownership interest of ULA, we and The Boeing Company (Boeing) are required to provide ULA an additional capital contribution if ULA is unable to make required payments under its inventory supply agreement with Boeing. As of September 24, 2017, ULA’s total remaining obligation to Boeing under the inventory supply agreement was $120 million. The parties have agreed to defer the remaining payment obligation, as it is more than offset by other commitments to ULA. Accordingly, we do not expect to be required to make a capital contribution to ULA under this agreement. 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 September 24, 2017, and that it will not be necessary to make payments under the cross-indemnities or guarantees.

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 24, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions):



	September 24, 2017						December 31, 2016
	Total		Level 1		Level 2		Total		Level 1		Level 2
Assets
Equity securities	$	47	$	47	$	—	$	79	$	79	$	—
Mutual funds	858		858		—		856		856		—
U.S. Government securities	110		—		110		113		—		113
Other securities	176		—		176		151		—		151
Derivatives	28		—		28		27		—		27
Liabilities
Derivatives	105		—		105		85		—		85
Assets measured at NAV
Other commingled funds	18						—

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 consolidated 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 pricing models that use observable inputs (e.g., interest rates and yield curves observable at commonly quoted intervals), bids provided by brokers or dealers or quoted prices of securities with similar characteristics. The fair values of derivative instruments, which consist of foreign currency 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 nine months ended September 24, 2017.

We use derivative instruments principally to reduce our exposure to market risks from changes in foreign currency exchange rates and interest rates. We do not enter into or hold derivative instruments for speculative trading purposes. We transact business globally and are subject to risks associated with changing foreign currency exchange rates. We enter into foreign currency hedges such as forward and option contracts that change in value as foreign currency exchange rates change. These contracts hedge forecasted foreign currency transactions in order to mitigate fluctuations in our earnings and cash flows associated with changes in foreign currency exchange rates. We designate foreign currency hedges as cash flow hedges. We also are exposed to the impact of interest rate changes primarily through our borrowing activities. For fixed rate borrowings, we may use variable interest rate swaps, effectively converting fixed rate borrowings to variable rate borrowings in order to reduce the amount of interest paid. These swaps are designated as fair value hedges. For variable rate borrowings, we may use fixed interest rate swaps, effectively converting variable rate borrowings to fixed rate borrowings in order to mitigate the impact of interest rate changes on earnings. These swaps are designated as cash flow hedges. We also may enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting, which are intended to mitigate certain economic exposures.

The aggregate notional amount of our outstanding interest rate swaps at both September 24, 2017 and December 31, 2016 was $1.2 billion and the fair value was not significant. The aggregate notional amount of our outstanding foreign currency hedges at September 24, 2017 and December 31, 2016 was $4.4 billion and $4.0 billion and the fair value was not significant. Derivative instruments did not have a material impact on net earnings and comprehensive income during the quarters and nine months ended September 24, 2017 and September 25, 2016. Substantially all of our derivatives are designated for hedge accounting.

In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, receivables, accounts payable and debt. The carrying amounts for cash and cash equivalents, receivables and accounts payable approximated their fair values. The estimated fair value of our outstanding debt was $16.6 billion and $16.2 billion at September 24, 2017 and December 31, 2016. The outstanding principal amount was $15.5 billion and $15.3 billion, excluding unamortized discounts and issuance costs of $1.2 billion and $1.0 billion at September 24, 2017 and December 31, 2016. The estimated fair values of our outstanding debt were determined based on quoted prices for similar instruments in active markets (Level 2).

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 24, 2017

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Repurchases of Common Stock

During the nine months ended September 24, 2017, we repurchased 5.4 million shares of our common stock for $1.5 billion. The total remaining authorization for future common share repurchases under our share repurchase program was $2.0 billion as of September 24, 2017. On September 28, 2017, subsequent to the end of our third quarter, our Board of Directors authorized a $2.0 billion increase to the program. As we repurchase our common shares, we reduce common stock for the $1 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. Due to the volume of repurchases made under our share repurchase program, additional paid-in capital was reduced to zero, with the remainder of the excess purchase price over par value of $1.2 billion and $1.0 billion recorded as a reduction of retained earnings during the nine months ended September 24, 2017 and September 25, 2016, respectively.

Dividends

We declared cash dividends totaling $1.6 billion ($5.46 per share) and $2.1 billion ($6.77 per share) during the nine months ended September 24, 2017 and September 25, 2016. Dividends declared in 2016 includes our fourth quarter dividend of $537 million ($1.82 per share), which was declared during the quarter ended September 25, 2016 and paid in the fourth quarter of 2016. On September 28, 2017, subsequent to the end of our third quarter, we increased our quarterly dividend rate by 10%, or $0.18 per share, to $2.00 per share, and we declared our fourth quarter dividend.

Restricted Stock Unit Grants

During the quarter ended September 24, 2017, there were no significant grants of RSUs. During the nine months ended September 24, 2017, we granted certain employees approximately 0.5 million RSUs with a grant date fair value of $254.53 per RSU. The grant date fair value of these RSUs is equal to the closing market price of our common stock on the grant date less a discount to reflect the delay in payment of dividend-equivalent cash payments that are made only upon vesting, which is generally three years from the grant date. We recognize the grant date fair value of RSUs, less estimated forfeitures, as compensation expense ratably over the requisite service period, which is shorter than the vesting period if the employee is retirement eligible on the date of grant or will become retirement eligible before the end of the vesting period.

Accumulated Other Comprehensive Loss

Changes in the balance of AOCL, net of tax, consisted of the following (in millions):



	Postretirement Benefit Plans			Other, net			AOCL
Balance at December 31, 2016	$	(11,981	)	$	(121	)	$	(12,102	)
Other comprehensive income before reclassifications	3			123			126
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	774			—			774
Amortization of net prior service credits ^(a)	(172		)	—			(172		)
Other	—			14			14
Total reclassified from AOCL	602			14			616
Total other comprehensive income	605			137			742
Balance at September 24, 2017	$	(11,376	)	$	16		$	(11,360	)

Balance at December 31, 2015	$	(11,314	)	$	(130	)	$	(11,444	)
Other comprehensive loss before reclassifications	—			(46		)	(46		)
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	703			—			703
Amortization of net prior service credits ^(a)	(182		)	—			(182		)
Recognition of net prior service credits from divestiture of IS&GS ^(b)	(134		)	—			(134		)
Other	—			112			112
Total reclassified from AOCL	387			112			499
Total other comprehensive income	387			66			453
Balance at September 25, 2016	$	(10,927	)	$	(64	)	$	(10,991	)

^(a)

Reclassifications from AOCL related to our postretirement benefit plans were recorded as a component of net periodic benefit cost for each period presented (see “Note 6 – Postretirement Plans”). These amounts include $200 million and $175 million, net of tax, for the quarters ended September 24, 2017 and September 25, 2016, which are comprised of the recognition of net actuarial losses of $258 million and $234 million for the quarters ended September 24, 2017 and September 25, 2016 and the amortization of net prior service credits of $(58) million and $(59) million for the quarters ended September 24, 2017 and September 25, 2016.


^(b)	Associated with the divestiture of the IS&GS business and included in net gain on divestiture of discontinued operations.

OTHER	9 Months Ended
OTHER	Sep. 24, 2017
Accounting Policies [Abstract]
OTHER	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, overhead and the estimated costs to fulfill our industrial cooperation agreements, sometimes referred to as offset agreements, required under certain contracts with international customers). The initial profit booking rate of each contract considers risks surrounding the ability to achieve the technical requirements, schedule and costs in the initial estimated total costs to complete the contract. Profit booking rates may increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule and cost aspects of the contract, which decreases the estimated total costs to complete the contract. 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. Comparability of our segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on our contracts accounted for using the percentage-of-completion method of accounting. Increases in the profit booking rates, typically referred to as risk retirements, usually relate to revisions in the estimated total costs that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to complete and a reduction in the profit booking rate. Increases or decreases in profit booking rates are recognized in the current period and reflect the inception-to-date effect of such changes. Segment operating profit and margin may also be impacted favorably or unfavorably by other items. Favorable items may include the positive resolution of contractual matters, cost recoveries on restructuring charges, insurance recoveries and gains on sales of assets. Unfavorable items may include the adverse resolution of contractual matters; restructuring charges, except for significant severance actions, which are excluded from segment operating results; reserves for disputes; certain asset impairments; and losses on sales of certain assets. Segment operating profit and items such as risk retirements, reductions of profit booking rates or other matters are presented net of state income taxes. As previously disclosed, we have a program, EADGE-T, to design, integrate, and install an air missile defense command, control, communications, computers – intelligence (C4I) systems for an international customer that has experienced performance matters and for which we have periodically accrued reserves. During the first quarter of 2017, we revised our estimated costs to complete EADGE-T as a consequence of ongoing performance matters and recorded an additional charge of $120 million ($74 million or $0.25 per share, after tax) at our RMS business segment. As of September 24, 2017, cumulative losses, including reserves, remained at approximately $260 million on this program. We are continuing to monitor the viability of the program and the available options and could record additional charges in future periods. However, based on the reserves already accrued and our current estimate of the costs to complete the program, at this time we do not anticipate that additional charges, if any, would be material. We have certain commercial satellite programs at our Space Systems business segment, where we have experienced performance matters related to the development and integration of the enhanced and modernized A2100 satellite platform. These commercial programs represent the development of new satellite technology to enhance the A2100’s power, propulsion and electronics, among other items, which is expected to benefit other commercial and government satellite programs. We have periodically revised our estimated costs to complete these programs. As previously reported, we recorded cumulative losses of approximately $260 million through June 25, 2017, including approximately $90 million recorded during the six months ended June 25, 2017. While the loss reflected our estimated total losses on the programs at that time, we continue to monitor any changes to the scope and estimated costs of these programs and may have to record additional loss reserves in future periods, which could be material to our operating results. Our consolidated net adjustments not related to volume, including net profit booking rate adjustments and other matters, net of state income taxes, increased segment operating profit by approximately $330 million and $1.1 billion in the quarter and nine months ended September 24, 2017 and $405 million and $1.1 billion in the quarter and nine months ended September 25, 2016. These adjustments increased net earnings by approximately $214 million ($0.74 per share) and $718 million ($2.46 per share) in the quarter and nine months ended September 24, 2017 and $265 million ($0.88 per share) and $730 million ($2.39 per share) in the quarter and nine months ended September 25, 2016. Restructuring Charges During the first quarter of 2016, we recorded severance charges totaling approximately $80 million related to our Aeronautics business segment. 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. As of the end of the first quarter of 2017, we had substantially paid the severance cost associated with these actions. Equity Method Investee Impairment During the nine months ended September 24, 2017, equity earnings included a charge recorded in the first quarter of approximately $64 million ($40 million or $0.14 per share, after tax), which represented our portion of a noncash asset impairment related to certain long-lived assets held by our equity method investee, AMMROC. We are continuing to monitor this investment. It is possible that we may have to record our portion of additional charges should their business continue to experience performance issues, which could adversely affect our business, financial condition and results of operations. Sales of Customer Receivables On occasion, our customers may seek deferred payment terms to purchase our products. In connection with these transactions, we may enter into arrangements for the non-recourse sale of customer receivables to unrelated third–party financial institutions. For accounting purposes, these transactions are treated as a sale of receivables and the sale proceeds from the financial institutions are reflected in our operating cash flows on the statement of cash flows. During the quarter and nine months ended September 24, 2017, we sold approximately $146 million and $511 million of customer receivables. There were no gains or losses related to sales of these receivables. Revolving Credit Facility Extension In October 2017, our $2.5 billion revolving credit facility (the 5-year Facility) was amended to extend its expiration date by one year from October 9, 2021 to October 9, 2022. Long-Term Debt In September 2017, we issued notes totaling approximately $1.6 billion with a fixed interest rate of 4.09% maturing in September 2052 (the New Notes) in exchange for outstanding notes totaling approximately $1.4 billion with fixed interest rates ranging from 4.70% to 8.50% maturing 2029 to 2046 (the Old Notes). In connection with the exchange of principal, we paid a premium of $237 million, substantially all of which was in the form of New Notes. This premium will be amortized as additional interest expense over the term of the New Notes using the effective interest method. We may, at our option, redeem some or all of the New Notes at any time by paying the principal amount of notes being redeemed plus a make-whole premium and accrued and unpaid interest. Interest on the New Notes is payable on March 15 and September 15 of each year, beginning on March 15, 2018. The New Notes are unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. In September 2016, we repaid $500 million of long-term notes with a fixed interest rate of 2.13% according to their scheduled maturities. In May 2016, we repaid $452 million of long-term notes with a fixed interest rate of 7.65% according to their scheduled maturities. We also had related variable interest rate swaps with a notional amount of $450 million mature, which did not have a significant impact on net earnings or comprehensive income. Income Taxes Our effective income tax rates were 25.4% and 26.1% for the quarter and nine months ended September 24, 2017, and 23.7% and 23.1% for the quarter and nine months ended September 25, 2016. The rates for both periods benefited from tax deductions for U.S. manufacturing activities, dividends paid to our defined contribution plans with an employee stock ownership plan feature, tax deductions for employee equity awards, and the research and development tax credit. The rates in the quarter and nine months ended September 25, 2016 also benefited from the nontaxable gain recorded in connection with the increase in AWE ownership. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as amended (Topic 606) (commonly referred to as ASC 606), which will change the way we recognize revenue and significantly expand the disclosure requirements for revenue arrangements. We will adopt the requirements of the new standard on the effective date of January 1, 2018 using the full retrospective transition method, whereby ASC 606 will be applied to each prior year presented and the cumulative effect of applying ASC 606 will be recognized at January 1, 2016, the beginning of the earliest year presented. As ASC 606 supersedes substantially all existing revenue guidance affecting us under current GAAP, it will impact revenue and cost recognition across all of our business segments, as well as our business processes and our information technology systems. We do not expect our adoption of ASC 606 to impact our cash flows. We commenced our evaluation of the impact of ASC 606 in late 2014, by evaluating its impact on selected contracts at each of our business segments. With this baseline understanding, we developed a project plan to evaluate thousands of contracts across our business segments, develop processes and tools to dual report financial results under both current GAAP and ASC 606 and assess the internal control structure in order to adopt ASC 606 on January 1, 2018. We have periodically briefed our Audit Committee on our progress made towards adoption. We currently recognize the majority of our revenue using the percentage-of-completion method of accounting, whereby revenue is recognized as we progress on the contract. For contracts with a significant amount of development and/or requiring the delivery of a minimal number of units, revenue and profit are recognized using the percentage-of-completion cost-to-cost method to measure progress. For example, we use this method at our Aeronautics business segment for the F-35 program; at our MFC business segment for the THAAD program; at our RMS business segment for the Littoral Combat Ship and Aegis Combat System programs; and at our Space Systems business segment for government satellite programs. For contracts that require us to produce a substantial number of similar items without a significant level of development, we currently record revenue and profit using the percentage-of-completion units-of-delivery method as the basis for measuring progress on the contract. For example, we use this method in Aeronautics for the C-130J and C-5 programs; in MFC for tactical missile programs (e.g., Hellfire, JASSM), PAC-3 programs and fire control programs (e.g., LANTIRN®, Sniper®); in RMS for Black Hawk and Seahawk helicopter programs; and in Space Systems for commercial satellite programs. For contracts to provide services to the U.S. Government, revenue is generally recorded using the percentage-of-completion cost-to-cost method. Under ASC 606, revenue will be recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). Given the nature of our products and terms and conditions in our contracts, in particular those with the U.S. Government (including foreign military sales (FMS) contracts), the customer obtains control as we perform work under the contract. Therefore, we expect to recognize revenue over time for substantially all of our contracts using a method similar to our current percentage-of-completion cost-to-cost method. Accordingly, adoption of ASC 606 will primarily impact our contracts where revenue is currently recognized using the percentage-of-completion units-of-delivery method. As a result, we anticipate recognizing revenue for these contracts earlier in the performance period as we incur costs, as opposed to when units are delivered. We may also have more performance obligations in our contracts under ASC 606, which may impact the timing of recording sales and operating profit, including those where sales recognition is deferred pending the incurrence of costs. Backlog will also be impacted upon our adoption to reflect these changes and the requirements of ASC 606. During the third quarter of 2017, we completed our preliminary assessment of the cumulative effect of adopting ASC 606 on our December 31, 2015 balance sheet using the full retrospective transition method. The adoption resulted in a decrease in inventories, an increase in billed receivables, contract assets (i.e., unbilled receivables) and contract liabilities (i.e., customer advances and amounts in excess of costs incurred) to primarily reflect the impact of converting contracts currently applying the units-of-delivery method to the cost-to-cost method for recognizing revenue and profits. We expect the net impact of these reclassifications to increase both our current assets and current liabilities by approximately 2%. In addition, we completed our preliminary assessment of adopting ASC 606 on our fiscal year 2016 operating results during the third quarter of 2017. We expect the adoption of ASC 606 to increase our 2016 net sales by approximately less than 1% and decrease our operating profit and net earnings from continuing operations each by approximately less than 2%. The impact of adopting ASC 606 on our 2016 operating results may not be indicative of the adoption impacts in future periods or of our operating performance. We will continue our evaluation of ASC 606, including any new interpretations, through the date of adoption. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), which eliminates the requirement to separately measure and report hedge ineffectiveness. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We do not expect a significant impact to our consolidated assets and liabilities, net earnings, or cash flows as a result of adopting this new standard. We plan to adopt the new standard January 1, 2019. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715), which changes the income statement presentation of certain components of net periodic benefit cost related to defined benefit pension and other postretirement benefit plans. Currently, we record all components of net periodic benefit costs in operating profit as part of cost of sales. Under ASU 2017-07, we will be required to record only the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost or credits, and net actuarial gains or losses) as part of non-operating income. We plan to adopt the requirements of ASU 2017-07 on January 1, 2018 using the retrospective transition method. We expect the adoption of ASU 2017-07 to result in an increase to consolidated operating profit of $471 million and $846 million for 2016 and 2017, respectively, and a corresponding decrease in non-operating income for each year. We do not expect any impact to our business segment operating profit, our consolidated net earnings, or cash flows as a result of adopting ASU 2017-07. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350), which eliminates the requirement to compare the implied fair value of reporting unit goodwill with the carrying amount of that goodwill (i.e., commonly referred to as Step 2) from the current goodwill impairment test. The new standard does not change how a goodwill impairment is identified. We will continue to perform our quantitative and qualitative goodwill impairment test by comparing the fair value of each reporting unit to its carrying amount, but if we are required to recognize a goodwill impairment charge, under the new standard the amount of the charge will be calculated by subtracting the reporting unit’s fair value from its carrying amount. Under the current standard, if we are required to recognize a goodwill impairment charge, Step 2 requires us to calculate the implied value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination and the amount of the charge is calculated by subtracting the reporting unit’s implied fair value of goodwill from its actual goodwill balance. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted, and should be applied prospectively from the date of adoption. We elected to adopt the new standard for future goodwill impairment tests at the beginning of the third quarter of 2017, because it significantly simplifies the evaluation of goodwill for impairment. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (under the caption "Critical Accounting Policies") for additional information. The impact of the new standard will depend on the outcomes of future goodwill impairment tests. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires the recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements for both lessees and lessors. The new standard is effective January 1, 2019 for public companies, with early adoption permitted. The new standard will be applied using a modified retrospective approach to the beginning of the earliest period presented in the financial statements. We are continuing to evaluate the expected impact to our consolidated financial statements and related disclosures. We plan to adopt the new standard effective January 1, 2019.

OTHER (Policies)	9 Months Ended
OTHER (Policies)	Sep. 24, 2017
Accounting Policies [Abstract]
Earnings Per Share Computation	We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units (RSUs) and performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method. There were no significant anti-dilutive equity awards during the quarters and nine months ended September 24, 2017 or September 25, 2016.
Changes in Estimates	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, overhead and the estimated costs to fulfill our industrial cooperation agreements, sometimes referred to as offset agreements, required under certain contracts with international customers). The initial profit booking rate of each contract considers risks surrounding the ability to achieve the technical requirements, schedule and costs in the initial estimated total costs to complete the contract. Profit booking rates may increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule and cost aspects of the contract, which decreases the estimated total costs to complete the contract. 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. Comparability of our segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on our contracts accounted for using the percentage-of-completion method of accounting. Increases in the profit booking rates, typically referred to as risk retirements, usually relate to revisions in the estimated total costs that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to complete and a reduction in the profit booking rate. Increases or decreases in profit booking rates are recognized in the current period and reflect the inception-to-date effect of such changes. Segment operating profit and margin may also be impacted favorably or unfavorably by other items. Favorable items may include the positive resolution of contractual matters, cost recoveries on restructuring charges, insurance recoveries and gains on sales of assets. Unfavorable items may include the adverse resolution of contractual matters; restructuring charges, except for significant severance actions, which are excluded from segment operating results; reserves for disputes; certain asset impairments; and losses on sales of certain assets. Segment operating profit and items such as risk retirements, reductions of profit booking rates or other matters are presented net of state income taxes.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as amended (Topic 606) (commonly referred to as ASC 606), which will change the way we recognize revenue and significantly expand the disclosure requirements for revenue arrangements. We will adopt the requirements of the new standard on the effective date of January 1, 2018 using the full retrospective transition method, whereby ASC 606 will be applied to each prior year presented and the cumulative effect of applying ASC 606 will be recognized at January 1, 2016, the beginning of the earliest year presented. As ASC 606 supersedes substantially all existing revenue guidance affecting us under current GAAP, it will impact revenue and cost recognition across all of our business segments, as well as our business processes and our information technology systems. We do not expect our adoption of ASC 606 to impact our cash flows. We commenced our evaluation of the impact of ASC 606 in late 2014, by evaluating its impact on selected contracts at each of our business segments. With this baseline understanding, we developed a project plan to evaluate thousands of contracts across our business segments, develop processes and tools to dual report financial results under both current GAAP and ASC 606 and assess the internal control structure in order to adopt ASC 606 on January 1, 2018. We have periodically briefed our Audit Committee on our progress made towards adoption. We currently recognize the majority of our revenue using the percentage-of-completion method of accounting, whereby revenue is recognized as we progress on the contract. For contracts with a significant amount of development and/or requiring the delivery of a minimal number of units, revenue and profit are recognized using the percentage-of-completion cost-to-cost method to measure progress. For example, we use this method at our Aeronautics business segment for the F-35 program; at our MFC business segment for the THAAD program; at our RMS business segment for the Littoral Combat Ship and Aegis Combat System programs; and at our Space Systems business segment for government satellite programs. For contracts that require us to produce a substantial number of similar items without a significant level of development, we currently record revenue and profit using the percentage-of-completion units-of-delivery method as the basis for measuring progress on the contract. For example, we use this method in Aeronautics for the C-130J and C-5 programs; in MFC for tactical missile programs (e.g., Hellfire, JASSM), PAC-3 programs and fire control programs (e.g., LANTIRN®, Sniper®); in RMS for Black Hawk and Seahawk helicopter programs; and in Space Systems for commercial satellite programs. For contracts to provide services to the U.S. Government, revenue is generally recorded using the percentage-of-completion cost-to-cost method. Under ASC 606, revenue will be recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). Given the nature of our products and terms and conditions in our contracts, in particular those with the U.S. Government (including foreign military sales (FMS) contracts), the customer obtains control as we perform work under the contract. Therefore, we expect to recognize revenue over time for substantially all of our contracts using a method similar to our current percentage-of-completion cost-to-cost method. Accordingly, adoption of ASC 606 will primarily impact our contracts where revenue is currently recognized using the percentage-of-completion units-of-delivery method. As a result, we anticipate recognizing revenue for these contracts earlier in the performance period as we incur costs, as opposed to when units are delivered. We may also have more performance obligations in our contracts under ASC 606, which may impact the timing of recording sales and operating profit, including those where sales recognition is deferred pending the incurrence of costs. Backlog will also be impacted upon our adoption to reflect these changes and the requirements of ASC 606. During the third quarter of 2017, we completed our preliminary assessment of the cumulative effect of adopting ASC 606 on our December 31, 2015 balance sheet using the full retrospective transition method. The adoption resulted in a decrease in inventories, an increase in billed receivables, contract assets (i.e., unbilled receivables) and contract liabilities (i.e., customer advances and amounts in excess of costs incurred) to primarily reflect the impact of converting contracts currently applying the units-of-delivery method to the cost-to-cost method for recognizing revenue and profits. We expect the net impact of these reclassifications to increase both our current assets and current liabilities by approximately 2%. In addition, we completed our preliminary assessment of adopting ASC 606 on our fiscal year 2016 operating results during the third quarter of 2017. We expect the adoption of ASC 606 to increase our 2016 net sales by approximately less than 1% and decrease our operating profit and net earnings from continuing operations each by approximately less than 2%. The impact of adopting ASC 606 on our 2016 operating results may not be indicative of the adoption impacts in future periods or of our operating performance. We will continue our evaluation of ASC 606, including any new interpretations, through the date of adoption. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), which eliminates the requirement to separately measure and report hedge ineffectiveness. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We do not expect a significant impact to our consolidated assets and liabilities, net earnings, or cash flows as a result of adopting this new standard. We plan to adopt the new standard January 1, 2019. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715), which changes the income statement presentation of certain components of net periodic benefit cost related to defined benefit pension and other postretirement benefit plans. Currently, we record all components of net periodic benefit costs in operating profit as part of cost of sales. Under ASU 2017-07, we will be required to record only the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost or credits, and net actuarial gains or losses) as part of non-operating income. We plan to adopt the requirements of ASU 2017-07 on January 1, 2018 using the retrospective transition method. We expect the adoption of ASU 2017-07 to result in an increase to consolidated operating profit of $471 million and $846 million for 2016 and 2017, respectively, and a corresponding decrease in non-operating income for each year. We do not expect any impact to our business segment operating profit, our consolidated net earnings, or cash flows as a result of adopting ASU 2017-07. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350), which eliminates the requirement to compare the implied fair value of reporting unit goodwill with the carrying amount of that goodwill (i.e., commonly referred to as Step 2) from the current goodwill impairment test. The new standard does not change how a goodwill impairment is identified. We will continue to perform our quantitative and qualitative goodwill impairment test by comparing the fair value of each reporting unit to its carrying amount, but if we are required to recognize a goodwill impairment charge, under the new standard the amount of the charge will be calculated by subtracting the reporting unit’s fair value from its carrying amount. Under the current standard, if we are required to recognize a goodwill impairment charge, Step 2 requires us to calculate the implied value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination and the amount of the charge is calculated by subtracting the reporting unit’s implied fair value of goodwill from its actual goodwill balance. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted, and should be applied prospectively from the date of adoption. We elected to adopt the new standard for future goodwill impairment tests at the beginning of the third quarter of 2017, because it significantly simplifies the evaluation of goodwill for impairment. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (under the caption "Critical Accounting Policies") for additional information. The impact of the new standard will depend on the outcomes of future goodwill impairment tests. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires the recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements for both lessees and lessors. The new standard is effective January 1, 2019 for public companies, with early adoption permitted. The new standard will be applied using a modified retrospective approach to the beginning of the earliest period presented in the financial statements. We are continuing to evaluate the expected impact to our consolidated financial statements and related disclosures. We plan to adopt the new standard effective January 1, 2019.

EARNINGS PER COMMON SHARE (Tables)

9 Months Ended

Sep. 24, 2017

Earnings Per Share [Abstract]

Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share

The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions):



	Quarters Ended		Nine Months Ended
	September 24, 2017	September 25, 2016	September 24, 2017	September 25, 2016
Weighted average common shares outstanding for basic computations	287.1	298.5	288.5	302.0
Weighted average dilutive effect of equity awards	2.9	3.6	2.8	3.9
Weighted average common shares outstanding for diluted computations	290.0	302.1	291.3	305.9

DIVESTITURE (Tables)

9 Months Ended

Sep. 24, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Operating Results of the IS&GS Business



	Quarter Ended			Nine Months Ended
Net sales	$	739		$	3,410
Cost of sales	(635		)	(2,953		)
Severance charges	—			(19		)
Gross profit	104			438
Other income, net	19			16
Operating profit	123			454
Earnings from discontinued operations before income taxes	123			454
Income tax expense	(51		)	(168		)
Net gain on divestiture of discontinued operations	1,234			1,234
Net earnings from discontinued operations	$	1,306		$	1,520

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Topic 205
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Paragraph 3A
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

INFORMATION ON BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 24, 2017

Segment Reporting [Abstract]

Summary Of Operating Results and Total Assets For Each Business Segment

Summary operating results for each of our business segments were as follows (in millions):



	Quarters Ended						Nine Months Ended
	September 24, 2017			September 25, 2016			September 24, 2017			September 25, 2016
Net sales
Aeronautics	$	4,771		$	4,188		$	14,102		$	12,362
Missiles and Fire Control	1,793			1,737			4,919			4,851
Rotary and Mission Systems	3,353			3,346			9,864			9,653
Space Systems	2,252			2,280			7,026			6,630
Total net sales	$	12,169		$	11,551		$	35,911		$	33,496
Operating profit
Aeronautics	$	517		$	437		$	1,503		$	1,335
Missiles and Fire Control	270			289			757			763
Rotary and Mission Systems	244			247			606			678
Space Systems ^(a)	218			450			762			1,034
Total business segment operating profit	1,249			1,423			3,628			3,810
Unallocated items
FAS/CAS pension adjustment
FAS pension expense	(342		)	(256		)	(1,030		)	(758		)
Less: CAS pension cost	562			482			1,686			1,430
FAS/CAS pension adjustment	220			226			656			672
Stock-based compensation	(32		)	(28		)	(133		)	(124		)
Severance charges	—			—			—			(80		)
Other, net ^{(b) (c)}	(9		)	(33		)	(89		)	(157		)
Total unallocated items	179			165			434			311
Total consolidated operating profit	$	1,428		$	1,588		$	4,062		$	4,121
Intersegment sales
Aeronautics	$	33		$	30		$	98		$	105
Missiles and Fire Control	104			81			253			225
Rotary and Mission Systems	452			469			1,438			1,382
Space Systems	31			21			76			90
Total intersegment sales	$	620		$	601		$	1,865		$	1,802

^(a)


^(b)	During the nine months ended September 24, 2017, we recognized a $64 million charge, which represents our portion of a noncash asset impairment charge recorded by our equity method investee, Advanced Military Maintenance, Repair and Overhaul Center LLC (AMMROC). See “Note 10 – Other” (under the caption “Equity Method Investee Impairment”) for more information.


^(c)	Includes $17 million and $82 million of corporate overhead costs incurred during the quarter and nine months ended September 25, 2016 that were previously allocated to our former IS&GS business. See “Note 3 – Divestiture” for more information.

Total assets for each of our business segments were as follows (in millions):



	September 24, 2017		December 31, 2016
Assets
Aeronautics	$	7,918	$	7,896
Missiles and Fire Control	4,510		4,000
Rotary and Mission Systems	18,500		18,367
Space Systems	5,425		5,250
Total business segment assets	36,353		35,513
Corporate assets ^(a)	12,593		12,293
Total assets	$	48,946	$	47,806


^(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)

9 Months Ended

Sep. 24, 2017

Inventory Disclosure [Abstract]

Schedule of Inventories, Net

Inventories, net consisted of the following (in millions):



	September 24, 2017			December 31, 2016
Work-in-process, primarily related to long-term contracts and programs in progress	$	7,720		$	7,864
Spare parts, used aircraft and general stock materials	798			833
Other inventories	767			719
Total inventories	9,285			9,416
Less: customer advances and progress payments	(4,482		)	(4,746		)
Total inventories, net	$	4,803		$	4,670

POSTRETIREMENT PLANS (Tables)

9 Months Ended

Sep. 24, 2017

Retirement Benefits [Abstract]

Schedule of Pretax Net Periodic Benefit Cost

Our pretax net periodic benefit cost related to our qualified defined benefit pension plans and retiree medical and life insurance plans consisted of the following (in millions):



	Quarters Ended						Nine Months Ended
	September 24, 2017			September 25, 2016			September 24, 2017			September 25, 2016
Qualified defined benefit pension plans
Service cost	$	205		$	208		$	615		$	615
Interest cost	452			465			1,357			1,396
Expected return on plan assets	(602		)	(667		)	(1,806		)	(2,000		)
Recognized net actuarial losses	376			340			1,129			1,019
Amortization of prior service credits	(89		)	(90		)	(265		)	(272		)
Total net periodic benefit cost	$	342		$	256		$	1,030		$	758
Retiree medical and life insurance plans
Service cost	$	5		$	6		$	15		$	18
Interest cost	25			30			76			89
Expected return on plan assets	(31		)	(34		)	(95		)	(103		)
Recognized net actuarial losses	4			8			14			25
Amortization of prior service costs	4			5			11			16
Total net periodic benefit cost	$	7		$	15		$	21		$	45

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 24, 2017

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured and Recorded at Fair Value

Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions):



	September 24, 2017						December 31, 2016
	Total		Level 1		Level 2		Total		Level 1		Level 2
Assets
Equity securities	$	47	$	47	$	—	$	79	$	79	$	—
Mutual funds	858		858		—		856		856		—
U.S. Government securities	110		—		110		113		—		113
Other securities	176		—		176		151		—		151
Derivatives	28		—		28		27		—		27
Liabilities
Derivatives	105		—		105		85		—		85
Assets measured at NAV
Other commingled funds	18						—

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 24, 2017

Equity [Abstract]

Schedule of Changes in the Balance of AOCL, Net of Tax

Changes in the balance of AOCL, net of tax, consisted of the following (in millions):



	Postretirement Benefit Plans			Other, net			AOCL
Balance at December 31, 2016	$	(11,981	)	$	(121	)	$	(12,102	)
Other comprehensive income before reclassifications	3			123			126
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	774			—			774
Amortization of net prior service credits ^(a)	(172		)	—			(172		)
Other	—			14			14
Total reclassified from AOCL	602			14			616
Total other comprehensive income	605			137			742
Balance at September 24, 2017	$	(11,376	)	$	16		$	(11,360	)

Balance at December 31, 2015	$	(11,314	)	$	(130	)	$	(11,444	)
Other comprehensive loss before reclassifications	—			(46		)	(46		)
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	703			—			703
Amortization of net prior service credits ^(a)	(182		)	—			(182		)
Recognition of net prior service credits from divestiture of IS&GS ^(b)	(134		)	—			(134		)
Other	—			112			112
Total reclassified from AOCL	387			112			499
Total other comprehensive income	387			66			453
Balance at September 25, 2016	$	(10,927	)	$	(64	)	$	(10,991	)

^(a)


^(b)	Associated with the divestiture of the IS&GS business and included in net gain on divestiture of discontinued operations.

BASIS OF PRESENTATION (Details) - AWE - USD ($) $ in Millions	3 Months Ended		8 Months Ended	9 Months Ended		13 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Aug. 23, 2016	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Aug. 24, 2016
Concentration Risk [Line Items]
Ownership interest percentage owned immediately before acquisition							33.00%
Ownership interest percentage owned subsequent acquisition							51.00%
Gain (loss) associated with obtaining control of AWE					$ 104
Deferred tax liabilities at corporate office
Concentration Risk [Line Items]
Gain (loss) associated with obtaining control of AWE		$ (23)			(23)
Space Systems \| Pre-tax gain recognized in operating results of Space System business segment
Concentration Risk [Line Items]
Gain (loss) associated with obtaining control of AWE		$ 127			$ 127
Space Systems \| Sales \| Operating results
Concentration Risk [Line Items]
Concentration percentage	100.00%			100.00%		100.00%
Space Systems \| Sales \| Equity in investment
Concentration Risk [Line Items]
Concentration percentage	0.00%
Space Systems \| Operating profit \| Operating results
Concentration Risk [Line Items]
Concentration percentage	51.00%			51.00%		51.00%
Space Systems \| Earnings or losses \| Equity in investment
Concentration Risk [Line Items]
Concentration percentage			33.00%

EARNINGS PER COMMON SHARE - Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Earnings Per Share [Abstract]
Weighted average common shares outstanding for basic computations	287.1	298.5	288.5	302.0
Weighted average dilutive effect of equity awards	2.9	3.6	2.8	3.9
Weighted average common shares outstanding for diluted computations	290.0	302.1	291.3	305.9

EARNINGS PER COMMON SHARE - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Earnings Per Share [Abstract]
Significant anti-dilutive equity awards (in shares)	0	0	0	0

DIVESTITURE - Narrative (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
DIVESTITURE - Narrative (Details) - USD ($) $ in Millions	Aug. 16, 2016	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on divestiture of business segment				$ 0	$ 1,234
Fair value of shares of common stock tendered and retired					2,497
One-time special cash payment received				0	1,800
IS&GS \| Restatement Adjustment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Corporate overhead costs reclassified to and included in earnings			$ 17		82
IS&GS \| Continuing operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Non-service pension costs reclassified to and included in continuing operations			11		54
Discontinued Operations, Disposed of by Sale \| IS&GS
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reduction to common stock outstanding (as a percent)	3.00%
Net gain on divestiture of business segment			$ 1,200		1,200
Fair value of shares of common stock tendered and retired	$ 2,500				2,500
One-time special cash payment received	1,800				1,800
Net book value	3,000
Other adjustments	$ 100				$ 100
Working capital and tax adjustments within net earnings from discontinued operations		$ 0		$ 0
Discontinued Operations, Disposed of by Sale \| IS&GS \| Lockheed Martin
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Common stock exchanged (in shares)	9,369,694

DIVESTITURE - Schedule of Operating Results of the IS&GS Business (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net earnings from discontinued operations	$ 0	$ 1,306	$ 0	$ 1,520
IS&GS \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales		739		3,410
Cost of sales		(635)		(2,953)
Severance charges		0		(19)
Gross profit		104		438
Other income, net		19		16
Operating profit		123		454
Earnings from discontinued operations before income taxes		123		454
Income tax expense		(51)		(168)
Net gain on divestiture of discontinued operations		1,234		1,234
Net earnings from discontinued operations		$ 1,306		$ 1,520

INFORMATION ON BUSINESS SEGMENTS - Narrative (Details) - segment	3 Months Ended		9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Segment Reporting [Abstract]
Number of business segments			4
Product Concentration Risk \| Sales Revenue, Net \| F-35 program \| Aeronautics
Segment Reporting Information [Line Items]
Net sales for the F-35 program representing total consolidated net sales (as a percent)	26.00%	23.00%	25.00%	23.00%

INFORMATION ON BUSINESS SEGMENTS - Summary of Operating Results For Each Business Segment (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016	Aug. 24, 2016
Net sales
Total intersegment sales	$ 12,169	$ 11,551	$ 35,911	$ 33,496
Operating profit
Total operating profit	1,428	1,588	4,062	4,121
Severance charges	0	0	0	80
Equity method investee impairment			64
AWE
Operating profit
Ownership interest percentage owned immediately before acquisition					33.00%
Ownership interest percentage owned subsequent acquisition					51.00%
Gain associated with obtaining controlling interest of AWE				$ 104
Increase in net earnings from continuing operations (in dollars per share)				$ 0.34
IS&GS \| Restatement Adjustment
Operating profit
Corporate overhead costs incurred		17		$ 82
Business segments
Operating profit
Total operating profit	1,249	1,423	3,628	3,810
Business segments \| Aeronautics
Net sales
Total intersegment sales	4,771	4,188	14,102	12,362
Operating profit
Total operating profit	517	437	1,503	1,335
Business segments \| Missiles and Fire Control
Net sales
Total intersegment sales	1,793	1,737	4,919	4,851
Operating profit
Total operating profit	270	289	757	763
Business segments \| Rotary and Mission Systems
Net sales
Total intersegment sales	3,353	3,346	9,864	9,653
Operating profit
Total operating profit	244	247	606	678
Business segments \| Space Systems
Net sales
Total intersegment sales	2,252	2,280	7,026	6,630
Operating profit
Total operating profit	218	450	762	1,034
Business segments \| Space Systems \| AWE
Operating profit
Gain associated with obtaining controlling interest of AWE		127		127
Segment reconciling items
Operating profit
FAS pension expense	(342)	(256)	(1,030)	(758)
Less: CAS pension cost	562	482	1,686	1,430
FAS/CAS pension adjustment	220	226	656	672
Stock-based compensation	(32)	(28)	(133)	(124)
Severance charges	0	0	0	(80)
Other, net	(9)	(33)	(89)	(157)
Total unallocated items	179	165	434	311
Intersegment sales
Net sales
Total intersegment sales	620	601	1,865	1,802
Intersegment sales \| Aeronautics
Net sales
Total intersegment sales	33	30	98	105
Intersegment sales \| Missiles and Fire Control
Net sales
Total intersegment sales	104	81	253	225
Intersegment sales \| Rotary and Mission Systems
Net sales
Total intersegment sales	452	469	1,438	1,382
Intersegment sales \| Space Systems
Net sales
Total intersegment sales	$ 31	21	$ 76	$ 90
Net earnings from continuing operations \| AWE
Operating profit
Gain associated with obtaining controlling interest of AWE		$ 104
Increase in net earnings from continuing operations (in dollars per share)		$ 0.34

INFORMATION ON BUSINESS SEGMENTS - Total Assets For Each Business Segment (Details) - USD ($) $ in Millions	Sep. 24, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total assets	$ 48,946	$ 47,806
Business segments
Segment Reporting Information [Line Items]
Total assets	36,353	35,513
Business segments \| Aeronautics
Segment Reporting Information [Line Items]
Total assets	7,918	7,896
Business segments \| Missiles and Fire Control
Segment Reporting Information [Line Items]
Total assets	4,510	4,000
Business segments \| Rotary and Mission Systems
Segment Reporting Information [Line Items]
Total assets	18,500	18,367
Business segments \| Space Systems
Segment Reporting Information [Line Items]
Total assets	5,425	5,250
Corporate
Segment Reporting Information [Line Items]
Total assets	$ 12,593	$ 12,293

INVENTORIES, NET (Details) - USD ($) $ in Millions	Sep. 24, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Work-in-process, primarily related to long-term contracts and programs in progress	$ 7,720	$ 7,864
Spare parts, used aircraft and general stock materials	798	833
Other inventories	767	719
Total inventories	9,285	9,416
Less: customer advances and progress payments	(4,482)	(4,746)
Total inventories, net	$ 4,803	$ 4,670

POSTRETIREMENT PLANS - Schedule of Pretax Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Qualified defined benefit pension plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 205	$ 208	$ 615	$ 615
Interest cost	452	465	1,357	1,396
Expected return on plan assets	(602)	(667)	(1,806)	(2,000)
Recognized net actuarial losses	376	340	1,129	1,019
Amortization of prior service (credits) costs	(89)	(90)	(265)	(272)
Total net periodic benefit cost	342	256	1,030	758
Retiree medical and life insurance plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	5	6	15	18
Interest cost	25	30	76	89
Expected return on plan assets	(31)	(34)	(95)	(103)
Recognized net actuarial losses	4	8	14	25
Amortization of prior service (credits) costs	4	5	11	16
Total net periodic benefit cost	$ 7	$ 15	$ 21	$ 45

POSTRETIREMENT PLANS - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
POSTRETIREMENT PLANS - Narrative (Details) - USD ($)	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Defined Benefit Plan Disclosure [Line Items]
Recognition of previously deferred postretirement benefit plan amounts, before tax	$ 309,000,000	$ 271,000,000	$ 930,000,000	$ 806,000,000
Recognition of previously deferred postretirement benefit plan amounts, net of tax	200,000,000	175,000,000	602,000,000	521,000,000
Retiree medical and life insurance plans
Defined Benefit Plan Disclosure [Line Items]
Recognition of previously deferred postretirement benefit plan amounts, before tax	14,000,000	8,000,000	41,000,000	18,000,000
Qualified defined benefit pension plans
Defined Benefit Plan Disclosure [Line Items]
Material contributions to qualified defined benefit pension plans	$ 0	$ 0	$ 0	$ 0

LEGAL PROCEEDINGS AND CONTINGENCIES (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 24, 2017	Dec. 31, 2016	Apr. 24, 2009
Loss Contingencies [Line Items]
Damages sought by plaintiff		$ 52
Liabilities recorded relative to environmental matters		952	$ 1,000
Environmental costs eligible for future recovery		$ 825	870
Period over which costs and recovery of costs is projected		20 years
Outstanding letters of credit, surety bonds, and third-party guarantees		$ 3,300	3,700
Third-party guarantees		$ 726	$ 709
Guarantees of contractual performance of joint ventures (as a percent)		60.00%	56.00%
United Launch Alliance
Loss Contingencies [Line Items]
Ownership interest of ULA (as a percent)		50.00%
N.Y. Metropolitan Transportation Authority
Loss Contingencies [Line Items]
Damages sought by plaintiff		$ 190
Contract value				$ 323
Contract payments received to date		241
Claims for monetary damages against the plaintiff		95
Period of bench trial	35 days
United Launch Alliance
Loss Contingencies [Line Items]
Inventory supply agreement		$ 120

FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured and Recorded at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Sep. 24, 2017	Dec. 31, 2016
Assets
Derivatives	$ 28	$ 27
Liabilities
Derivatives	105	85
Equity securities
Assets
Fair Value of Investments	47	79
Mutual funds
Assets
Fair Value of Investments	858	856
U.S. Government securities
Assets
Fair Value of Investments	110	113
Other securities
Assets
Fair Value of Investments	176	151
Other commingled funds
Liabilities
Assets measured at NAV	18	0
Level 1
Assets
Derivatives	0	0
Liabilities
Derivatives	0	0
Level 1 \| Equity securities
Assets
Fair Value of Investments	47	79
Level 1 \| Mutual funds
Assets
Fair Value of Investments	858	856
Level 1 \| U.S. Government securities
Assets
Fair Value of Investments	0	0
Level 1 \| Other securities
Assets
Fair Value of Investments	0	0
Level 2
Assets
Derivatives	28	27
Liabilities
Derivatives	105	85
Level 2 \| Equity securities
Assets
Fair Value of Investments	0	0
Level 2 \| Mutual funds
Assets
Fair Value of Investments	0	0
Level 2 \| U.S. Government securities
Assets
Fair Value of Investments	110	113
Level 2 \| Other securities
Assets
Fair Value of Investments	$ 176	$ 151

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Billions	Sep. 24, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of outstanding debt	$ 16.6	$ 16.2
Outstanding principal amount	15.5	15.3
Unamortized discounts and issuance costs	1.2	1.0
Interest rate swaps \| Designated as hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate notional amount of outstanding interest rate swaps	1.2	1.2
Foreign currency hedges \| Designated as hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate notional amount of outstanding interest rate swaps	$ 4.4	$ 4.0

STOCKHOLDERS' EQUITY - Repurchases of Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 28, 2017	Dec. 31, 2016
Shareholders Equity [Line Items]
Common stock repurchased (in shares)	5.4
Common stock repurchased, amount	$ 1,500	$ 1,280
Total remaining authorization for future common share repurchases	$ 2,000
Par value of shares repurchased (in dollars per share)	$ 1			$ 1
Additional paid-in capital after reduction	$ 0			$ 0
Reduction to stockholders' equity due to repurchases of common stock	1,500	1,280
Subsequent Event
Shareholders Equity [Line Items]
Authorized increase to the share repurchase program			$ 2,000
Reduction to retained earnings
Shareholders Equity [Line Items]
Reduction to stockholders' equity due to repurchases of common stock	$ 1,213	$ 1,002

STOCKHOLDERS' EQUITY - Dividends (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended
	Sep. 28, 2017	Dec. 31, 2016	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Shareholders Equity [Line Items]
Cash dividends declared, amount			$ 537	$ 1,582	$ 2,056
Cash dividends declared (in dollars per share)		$ 1.82		$ 5.46	$ 6.77
Subsequent Event
Shareholders Equity [Line Items]
Cash dividends declared (in dollars per share)	$ 2.00
Increase to quarterly dividend rate (as a percent)	10.00%
Increase to quarterly dividend rate (in dollars per share)	$ 0.18

STOCKHOLDERS' EQUITY - Restricted Stock Unit Grants (Narrative) (Details) - RSUs - $ / shares	3 Months Ended	9 Months Ended
	Sep. 24, 2017	Sep. 24, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted to certain employees (in shares)	0	500,000
Grant date fair value per RSU (in dollars per share)		$ 254.53
Award vesting period		3 years

STOCKHOLDERS' EQUITY - Schedule of Changes in the Balance of AOCL, Net of Tax (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning Balance			$ 1,606	$ 3,097
Other comprehensive income (loss) before reclassifications			126	(46)
Total reclassified from AOCL			616	499
Other comprehensive income, net of tax	$ 277	$ 113	742	453
Ending Balance	2,175	2,430	2,175	2,430
Amounts reclassified from accumulated other comprehensive loss, net of tax	200	175	602	521
Net actuarial losses	258	234
Amortization of net prior service credits	(58)	(59)
Postretirement Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning Balance			(11,981)	(11,314)
Other comprehensive income (loss) before reclassifications			3
Total reclassified from AOCL			602	387
Other comprehensive income, net of tax			605	387
Ending Balance	(11,376)	(10,927)	(11,376)	(10,927)
Other, net
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning Balance			(121)	(130)
Other comprehensive income (loss) before reclassifications			123	(46)
Total reclassified from AOCL			14	112
Other comprehensive income, net of tax			137	66
Ending Balance	16	(64)	16	(64)
AOCL
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning Balance			(12,102)	(11,444)
Other comprehensive income, net of tax			742	453
Ending Balance	$ (11,360)	$ (10,991)	(11,360)	(10,991)
Recognition of net actuarial losses
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Total reclassified from AOCL			774	703
Amortization of net prior service credits
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Total reclassified from AOCL			(172)	(182)
Recognition of net prior service credits from divestiture of IS&GS
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Total reclassified from AOCL				(134)
Other
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Total reclassified from AOCL			$ 14	$ 112

OTHER - Changes in Estimates (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 24, 2017	Mar. 26, 2017	Sep. 25, 2016	Jun. 25, 2017	Sep. 24, 2017	Sep. 25, 2016
Accounting Policies [Abstract]
Additional charge for performance matter on EADGE-T, gross		$ 120
Additional charge for performance matter on EADGE-T, after tax		$ 74
Additional charge for performance matter on EADGE-T, after tax (in dollars per share)		$ 0.25
Cumulative losses, including reserves					$ 260
Valuation Allowance [Line Items]
Increase in operating profit due to profit rate adjustments	$ 330		$ 405		1,100	$ 1,100
Increase in net earnings due to profit rate adjustments	$ 214		$ 265		$ 718	$ 730
Increase in diluted earnings per common share due to profit rate adjustments (in dollars per share)	$ 0.74		$ 0.88		$ 2.46	$ 2.39
A2100
Valuation Allowance [Line Items]
Commercial satellite cumulative losses on development				$ 260
Commercial satellite losses on development				$ 90

OTHER - Restructuring Charges (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 27, 2016	Sep. 24, 2017	Sep. 25, 2016
Segment Reporting Information [Line Items]
Severance charges		$ 0	$ 99
Aeronautics
Segment Reporting Information [Line Items]
Severance charges	$ 80

OTHER - Equity Method Investee Impairment (Narrative) (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 24, 2017 USD ($) $ / shares
Accounting Policies [Abstract]
Charge included in equity earnings	$ 64
Equity method investee impairment, after tax	$ 40
Equity method investee impairment, per share \| $ / shares	$ 0.14

OTHER - Sales of Customer Receivables (Narrative) (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 24, 2017	Sep. 24, 2017
Accounting Policies [Abstract]
Customer receivables sold	$ 146,000,000	$ 511,000,000
Gains or losses related to sales of receivables	$ 0	$ 0

OTHER - Revolving Credit Facility Extension (Narrative) (Details) - Subsequent Event - Revolving credit facility	1 Months Ended
	Oct. 26, 2017 USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility, amount	$ 2,500,000,000.0
Line of Credit
Line of Credit Facility [Line Items]
Term of the Facility	5 years
Period of extension to expiration date	1 year

OTHER - Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended
	Sep. 25, 2016	May 31, 2016	Sep. 24, 2017
Senior Notes \| The New Notes
Debt Instrument [Line Items]
Notes issued in exchange for outstanding notes			$ 1,600
Fixed interest rate			4.09%
Senior Notes \| The Old Notes
Debt Instrument [Line Items]
Outstanding notes exchanged for the New Notes			$ 1,400
Senior Notes \| The Old Notes \| Lower range
Debt Instrument [Line Items]
Fixed interest rate			4.70%
Senior Notes \| The Old Notes \| Upper range
Debt Instrument [Line Items]
Fixed interest rate			8.50%
Notes Payable \| 2.13% long-term notes
Debt Instrument [Line Items]
Fixed interest rate	2.13%
Long-term notes repaid	$ 500
Notes Payable \| 7.65% long-term notes
Debt Instrument [Line Items]
Fixed interest rate		7.65%
Long-term notes repaid		$ 452
Interest rate swaps
Debt Instrument [Line Items]
Notional amount related to variable interest rate swaps		$ 450
Senior Notes \| The Old Notes
Debt Instrument [Line Items]
Premium paid in connection with exchange of principal			$ 237

OTHER - Income Taxes (Narrative) (Details)	3 Months Ended		9 Months Ended
OTHER - Income Taxes (Narrative) (Details)	Sep. 24, 2017	Sep. 25, 2016	Sep. 24, 2017	Sep. 25, 2016
Accounting Policies [Abstract]
Effective income tax rate	25.40%	23.70%	26.10%	23.10%

OTHER - Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 24, 2017	Dec. 31, 2016	Dec. 31, 2017
Other non-operating (expense) income, net \| ASU No. 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase to operating profit		$ 471
Scenario, Plan \| ASC 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase to current assets (as a percent)	2.00%
Increase to current liabilities (as a percent)	2.00%
Increase to net sales (less than) (as a percent)		1.00%
Decrease to business segment operating profit (less than) (as a percent)		2.00%
Decrease to net earnings (less than) (as a percent)		2.00%
Scenario, Forecast \| Other non-operating (expense) income, net \| ASU No. 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase to operating profit			$ 846