0000936468-19-000009 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2018	Jan. 25, 2019	Jun. 22, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	LMT
Entity Registrant Name	LOCKHEED MARTIN CORP
Entity Central Index Key	0000936468
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth	false
Entity Shell Company	false
Entity Filer Category		282,562,534
Entity Public Float			$ 84.7

Consolidated Statements of Earnings - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Consolidated Statements of Earnings - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net sales
Total net sales	$ 14,411	$ 14,318	$ 13,398	$ 11,635	$ 13,844	$ 12,341	$ 12,563	$ 11,212	$ 53,762	$ 49,960	$ 47,290
Cost of sales
Total cost of sales									(46,488)	(43,589)	(41,889)
Severance and restructuring charges									(96)	0	(80)
Gross profit									7,274	6,371	5,401
Other income, net									60	373	487
Operating profit	1,851	1,963	1,795	1,725	1,949	1,677	1,716	1,402	7,334	6,744	5,888
Interest expense									(668)	(651)	(663)
Other non-operating expense, net									(828)	(847)	(471)
Earnings from continuing operations before income taxes									5,838	5,246	4,754
Income tax expense									(792)	(3,356)	(1,093)
Net earnings from continuing operations					(817)	963	955	789	5,046	1,890	3,661
Net earnings from discontinued operations					73	0	0	0	0	73	1,512
Net earnings	$ 1,253	$ 1,473	$ 1,163	$ 1,157	$ (744)	$ 963	$ 955	$ 789	$ 5,046	$ 1,963	$ 5,173
Basic
Continuing operations (in dollars per share)					$ (2.85)	$ 3.35	$ 3.31	$ 2.72	$ 17.74	$ 6.56	$ 12.23
Discontinued operations (in dollars per share)					0.25	0.00	0.00	0.00	0.00	0.26	5.05
Basic earnings per common share (in dollars per share)	$ 4.43	$ 5.18	$ 4.08	$ 4.05	(2.60)	3.35	3.31	2.72	17.74	6.82	17.28
Diluted
Continuing operations (in dollars per share)					(2.85)	3.32	3.28	2.69	17.59	6.50	12.08
Discontinued operations (in dollars per share)					0.25	0.00	0.00	0.00	0.00	0.25	4.99
Diluted earnings per common share (in dollars per share)	$ 4.39	$ 5.14	$ 4.05	$ 4.02	$ (2.60)	$ 3.32	$ 3.28	$ 2.69	$ 17.59	$ 6.75	$ 17.07
Products
Net sales
Total net sales									$ 45,005	$ 42,502	$ 40,081
Cost of sales
Total cost of sales									(40,293)	(38,417)	(36,394)
Services
Net sales
Total net sales									8,757	7,458	7,209
Cost of sales
Total cost of sales									(7,738)	(6,673)	(6,423)
Other unallocated, net
Cost of sales
Total cost of sales									$ 1,639	$ 1,501	$ 1,008

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net earnings	$ 5,046	$ 1,963	$ 5,173
Postretirement benefit plans
Net other comprehensive loss recognized during the period, net of tax benefit of $136 million in 2018, $375 million in 2017 and $668 million in 2016	(501)	(1,380)	(1,232)
Amounts reclassified from accumulated other comprehensive loss, net of tax expense of $327 million in 2018, $437 million in 2017 and $382 million in 2016	1,202	802	699
Reclassifications from divestiture of IS&GS business	0	0	(134)
Other, net	(75)	141	9
Other comprehensive income (loss), net of tax	626	(437)	(658)
Comprehensive income	$ 5,672	$ 1,526	$ 4,515

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Tax benefit on net other comprehensive loss recognized during the period for postretirement benefit plans	$ 136	$ 375	$ 668
Tax expense on amounts reclassified from accumulated other comprehensive loss during the period for postretirement benefit plans	$ 327	$ 437	$ 382

Consolidated Balance Sheets - USD ($)	Dec. 31, 2018	Sep. 27, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 772,000,000		$ 2,861,000,000	$ 1,837,000,000	$ 1,090,000,000
Receivables, net	2,444,000,000		2,265,000,000
Contract assets	9,472,000,000		7,992,000,000
Inventories	2,997,000,000		2,878,000,000
Other current assets	418,000,000		1,509,000,000
Total current assets	16,103,000,000		17,505,000,000
Property, plant and equipment, net	6,124,000,000		5,775,000,000
Goodwill	10,769,000,000		10,807,000,000	10,764,000,000
Intangible assets, net	3,494,000,000		3,797,000,000
Deferred income taxes	3,208,000,000		3,156,000,000
Other noncurrent assets	5,178,000,000		5,580,000,000
Total assets	44,876,000,000		46,620,000,000
Current liabilities
Accounts payable	2,402,000,000		1,467,000,000
Contract liabilities	6,491,000,000		7,028,000,000
Salaries, benefits and payroll taxes	2,122,000,000		1,785,000,000
Current maturities of long-term debt and commercial paper	1,500,000,000		750,000,000
Other current liabilities	1,883,000,000		1,883,000,000
Total current liabilities	14,398,000,000		12,913,000,000
Long-term debt, net	12,604,000,000		13,513,000,000
Accrued pension liabilities	11,410,000,000		15,703,000,000
Other postretirement benefit liabilities	704,000,000		719,000,000
Other noncurrent liabilities	4,311,000,000		4,548,000,000
Total liabilities	43,427,000,000		47,396,000,000
Stockholders’ equity
Common stock, $1 par value per share	281,000,000		284,000,000
Additional paid-in capital	0	$ 0	0
Retained earnings	15,434,000,000		11,405,000,000
Accumulated other comprehensive loss	(14,321,000,000)		(12,539,000,000)
Total stockholders’ equity (deficit)	1,394,000,000		(850,000,000)
Noncontrolling interests in subsidiary	55,000,000		74,000,000
Total equity (deficit)	1,449,000,000		(776,000,000)	$ 1,477,000,000	$ 3,097,000,000
Total liabilities and equity	$ 44,876,000,000		$ 46,620,000,000

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in USD per share)	$ 1	$ 1

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating activities
Net earnings	$ 5,046	$ 1,963	$ 5,173
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	1,161	1,195	1,215
Stock-based compensation	173	158	149
Deferred income taxes	(244)	3,448	(193)
Severance and restructuring charges	96	0	99
Gain on property sale	0	(198)	0
Gain on divestiture of IS&GS business	0	(73)	(1,201)
Gain on step acquisition of AWE	0	0	(104)
Changes in assets and liabilities
Receivables, net	(179)	(902)	598
Contract assets	(1,480)	390	(1,246)
Inventories	(119)	(79)	173
Accounts payable	914	(189)	(188)
Contract liabilities	(537)	353	(163)
Postretirement benefit plans	(3,574)	1,316	1,028
Income taxes	1,077	(1,210)	146
Other, net	804	304	(297)
Net cash provided by operating activities	3,138	6,476	5,189
Investing activities
Capital expenditures	(1,278)	(1,177)	(1,063)
Other, net	203	30	78
Net cash used for investing activities	(1,075)	(1,147)	(985)
Financing activities
Repurchases of common stock	(1,492)	(2,001)	(2,096)
Dividends paid	(2,347)	(2,163)	(2,048)
Proceeds from issuance of commercial paper, net	600	0	0
Special cash payment from divestiture of IS&GS business	0	0	1,800
Repayments of long-term debt	(750)	0	(952)
Other, net	(163)	(141)	(161)
Net cash used for financing activities	(4,152)	(4,305)	(3,457)
Net change in cash and cash equivalents	(2,089)	1,024	747
Cash and cash equivalents at beginning of year	2,861	1,837	1,090
Cash and cash equivalents at end of year	$ 772	$ 2,861	$ 1,837

Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total Stockholders’ Equity (Deficit)	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 [Roll Forward]
Net earnings	5,173			5,173		5,173
Other comprehensive income (loss), net of tax	(658)				(658)	(658)
Shares exchanged and retired in connection with divestiture of IS&GS business	(2,497)	(9)		(2,488)		(2,497)
Repurchases of common stock	(2,096)	(9)	(395)	(1,692)		(2,096)
Dividends declared	(2,036)			(2,036)		(2,036)
Stock-based awards, ESOP activity and other	399	4	395			399
Net decrease in noncontrolling interests in subsidiary	(95)						(95)
Ending Balance at Dec. 31, 2016	1,477	289	0	13,195	(12,102)	1,382	95
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	1,963			1,963		1,963
Other comprehensive income (loss), net of tax	(437)				(437)	(437)
Repurchases of common stock	(2,001)	(7)	(398)	(1,596)		(2,001)
Dividends declared	(2,157)			(2,157)		(2,157)
Stock-based awards, ESOP activity and other	400	2	398			400
Net decrease in noncontrolling interests in subsidiary	(21)						(21)
Ending Balance at Dec. 31, 2017	(776)	284	0	11,405	(12,539)	(850)	74
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	5,046			5,046		5,046
Other comprehensive income (loss), net of tax	626				626	626
Repurchases of common stock	(1,492)	(5)	(404)	(1,083)		(1,492)
Dividends declared	(2,342)			(2,342)		(2,342)
Stock-based awards, ESOP activity and other	406	2	404			406
Reclassification of income tax effects from tax reform	2,400			2,408	(2,408)
Net decrease in noncontrolling interests in subsidiary	(19)						(19)
Ending Balance at Dec. 31, 2018	$ 1,449	$ 281	$ 0	$ 15,434	$ (14,321)	$ 1,394	$ 55

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Stockholders' Equity [Abstract]
Dividends declared, per share (in dollars per share)	$ 8.2	$ 7.46	$ 6.77

Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Significant Accounting Policies

Organization – We are a global security and aerospace company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. We also provide a broad range of management, engineering, technical, scientific, logistics, system integration and cybersecurity services. We serve both U.S. and international customers with products and services that have defense, civil and commercial applications, with our principal customers being agencies of the U.S. Government.

Basis of presentation – Our 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. Our receivables, inventories, customer advances and amounts in excess of costs incurred and certain amounts in other current liabilities primarily are attributable to long-term contracts or programs in progress for which the related operating cycles are longer than one year. In accordance with industry practice, we include these items in current assets and current liabilities. Unless otherwise noted, we present all per share amounts cited in these consolidated financial statements on a “per diluted share” basis. Certain prior period amounts have been reclassified to conform with current year presentation. The discussion and presentation of the operating results of our business segments have been impacted by the following recent events.

Effective January 1, 2018, we adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), as amended (commonly referred to as ASC 606), which changed the way we recognize revenue for certain contracts and significantly expanded disclosures about revenue recognition. In addition, effective January 1, 2018, we adopted ASU 2017-07, Compensation-Retirement Benefits (715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changed the statement of earnings presentation of certain components of pension and other postretirement benefit plan expense. The amounts for all periods presented in this Form 10-K have been adjusted to reflect these new methods of accounting.

On August 16, 2016, we completed the divestiture of the Information Systems & Global Solutions (IS&GS) business, which merged with a subsidiary of Leidos Holdings, Inc. (Leidos) in a Reverse Morris Trust transaction. Accordingly, the operating results of the IS&GS business have been classified as discontinued operations on our consolidated statements of earnings for all prior periods presented. However, the 2016 cash flows of the IS&GS business have not been reclassified in our consolidated statements of cash flows as we retained the cash as part of the Transaction. See “Note 3 – Acquisition and Divestitures” 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, which operates the United Kingdom’s nuclear deterrent program, from 33% to 51%. Consequently, we began consolidating AWE and our operating results 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. See “Note 3 – Acquisition and Divestitures” for additional information about the change in ownership of AWE.

Use of estimates – We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP). In doing so, we are required 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 income taxes, fair value measurements and contingencies.

Revenue Recognition – The majority of our net sales are generated from long-term contracts with the U.S. Government and international customers (including foreign military sales (FMS) contracted through the U.S. Government) for the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. We provide our products and services under fixed-price and cost-reimbursable contracts.

Under fixed-price contracts, we agree to perform the specified work for a pre-determined price. To the extent our actual costs vary from the estimates upon which the price was negotiated, we will generate more or less profit or could incur a loss. Some fixed-price contracts have a performance-based component under which we may earn incentive payments or incur financial penalties based on our performance.

Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract plus a fee up to a ceiling based on the amount that has been funded. Typically, we enter into three types of cost-reimbursable contracts: cost-plus-award-fee, cost-plus-incentive-fee, and cost-plus-fixed-fee. Cost-plus-award-fee contracts provide for an award fee that varies within specified limits based on the customer’s assessment of our performance against a predetermined set of criteria, such as targets based on cost, quality, technical and schedule criteria. Cost-plus-incentive-fee contracts provide for reimbursement of costs plus a fee, which is adjusted by a formula based on the relationship of total allowable costs to total target costs (i.e., incentive based on cost) or reimbursement of costs plus an incentive to exceed stated performance targets (i.e., incentive based on performance). The fixed-fee in a cost-plus-fixed-fee contract is negotiated at the inception of the contract and that fixed-fee does not vary with actual costs.

We account for a contract after it has been approved by all parties to the arrangement, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

We assess each contract at its inception to determine whether it should be combined with other contracts. When making this determination, we consider factors such as whether two or more contracts were negotiated and executed at or near the same time or were negotiated with an overall profit objective. If combined, we treat the combined contracts as a single contract for revenue recognition purposes.

We evaluate the products or services promised in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. The products and services in our contracts are typically not distinct from one another due to their complex relationships and the significant contract management functions required to perform under the contract. Accordingly, our contracts are typically accounted for as one performance obligation. In limited cases, our contracts have more than one distinct performance obligation, which occurs when we perform activities that are not highly complex or interrelated or involve different product lifecycles. Significant judgment is required in determining performance obligations, and these decisions could change the amount of revenue and profit recorded in a given period. We classify net sales as products or services on our consolidated statements of earnings based on the predominant attributes of the performance obligations.

We determine the transaction price for each contract based on the consideration we expect to receive for the products or services being provided under the contract. For contracts where a portion of the price may vary we estimate variable consideration at the most likely amount, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. We analyze the risk of a significant revenue reversal and if necessary constrain the amount of variable consideration recognized in order to mitigate this risk.

At the inception of a contract we estimate the transaction price based on our current rights and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Contracts are often subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, modifications to our contracts are not distinct from the existing contract due to the significant integration and interrelated tasks provided in the context of the contract. Therefore, such modifications are accounted for as if they were part of the existing contract and recognized as a cumulative adjustment to revenue.

For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation based on the estimated standalone selling price of the product or service underlying each performance obligation. The standalone selling price represents the amount we would sell the product or service to a customer on a standalone basis (i.e., not bundled with any other products or services). Our contracts with the U.S. Government, including FMS contracts, are subject to the Federal Acquisition Regulations (FAR) and the price is typically based on estimated or actual costs plus a reasonable profit margin. As a result of these regulations, the standalone selling price of products or services in our contracts with the U.S. Government and FMS contracts are typically equal to the selling price stated in the contract.

For non-U.S. Government contracts with multiple performance obligations, we evaluate whether the stated selling prices for the products or services represent their standalone selling prices. We primarily sell customized solutions unique to a customer’s specifications. When it is necessary to allocate the transaction price to multiple performance obligations, we typically use the expected cost plus a reasonable profit margin to estimate the standalone selling price of each product or service. We occasionally sell standard products or services with observable standalone sales transactions. In these situations, the observable standalone sales transactions are used to determine the standalone selling price.

We recognize revenue as performance obligations are satisfied and the customer obtains control of the products and services. In determining when performance obligations are satisfied, we consider factors such as contract terms, payment terms and whether there is an alternative future use of the product or service. Substantially all of our revenue is recognized over time as we perform under the contract because control of the work in process transfers continuously to the customer. For contracts with the U.S. Government and FMS contracts, this continuous transfer of control of the work in process to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit, and take possession of any work in process. Our non-U.S. Government contracts, primarily international direct commercial contracts, typically do not include termination for convenience provisions. However, continuous transfer of control to our customer is supported and, if our customer were to terminate the contract for reasons other than our non-performance, we would have the right to recover damages which would include, among other potential damages, the right to payment for our work performed to date plus a reasonable profit to deliver products or services that do not have an alternative use to us.

For performance obligations to deliver products with continuous transfer of control to the customer, revenue is recognized based on the extent of progress towards completion of the performance obligation, generally using the percentage-of-completion cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer as we incur costs on our contracts. Under the percentage-of-completion cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs to complete the performance obligation(s). For performance obligations to provide services to the customer, revenue is recognized over time based on costs incurred or the right to invoice method (in situations where the value transferred matches our billing rights) as our customer receives and consumes the benefits.

For performance obligations in which control does not continuously transfer to the customer, we recognize revenue at the point in time in which each performance obligation is fully satisfied. This coincides with the point in time the customer obtains control of the product or service, which typically occurs upon customer acceptance or receipt of the product or service, given that we maintain control of the product or service until that point.

Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not yet transferred to the customer. For our cost-reimbursable and fixed-priced-incentive contracts, the estimated consideration we expect to receive pursuant to the terms of the contract may exceed the contractual award amount. The estimated consideration is determined at the outset of the contract and is continuously reviewed throughout the contract period. In determining the estimated consideration, we consider the risks related to the technical, schedule and cost impacts to complete the contract and an estimate of any variable consideration. Periodically, we review these risks and may increase or decrease backlog accordingly. As the risks on such contracts are successfully retired, the estimated consideration from customers may be reduced, resulting in a reduction of backlog without a corresponding recognition of sales. As of December 31, 2018, our ending backlog was $130.5 billion. We expect to recognize approximately 38% of our backlog over the next 12 months and approximately 66% over the next 24 months as revenue, with the remainder recognized thereafter.

For arrangements with the U.S. Government and FMS contracts, we generally do not begin work on contracts until funding is appropriated by the customer. Billing timetables and payment terms on our contracts vary based on a number of factors, including the contract type. Typical payment terms under fixed-price contracts with the U.S. Government provide that the customer pays either performance-based payments (PBPs) based on the achievement of contract milestones or progress payments based on a percentage of costs we incur. For the majority of our international direct commercial contracts to deliver complex systems, we typically receive advance payments prior to commencement of work, as well as milestone payments that are paid in accordance with the terms of our contract as we perform. We recognize a liability for payments in excess of revenue recognized, which is presented as a contract liability on the balance sheet. The portion of payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer from our failure to adequately complete some or all of the obligations under the contract. Payments received from customers in advance of revenue recognition are not considered to be significant financing components because they are used to meet working capital demands that can be higher in the early stages of a contract.

For fixed-price and cost-reimbursable contracts, we present revenues recognized in excess of billings as contract assets on the balance sheet. Amounts billed and due from our customers under both contract types are classified as receivables on the balance sheet.

Significant estimates and assumptions are made in estimating contract sales and costs, including the profit booking rate. At the outset of a long-term contract, we identify and monitor risks to the achievement of the technical, schedule and cost aspects of the contract, as well as variable consideration, and assess the effects of those risks on our estimates of sales and total costs to complete the contract. The estimates consider the technical requirements (e.g., a newly-developed product versus a mature product), the schedule and associated tasks (e.g., the number and type of milestone events) and costs (e.g., material, labor, subcontractor, overhead, general and administrative and the estimated costs to fulfill our industrial cooperation agreements, sometimes referred to as offset or localization agreements, required under certain contracts with international customers). The initial profit booking rate of each contract considers risks surrounding the ability to achieve the technical requirements, schedule and costs in the initial estimated total costs to complete the contract. Profit booking rates may increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule and cost aspects of the contract, which decreases the estimated total costs to complete the contract or may increase the variable consideration we expect to receive on the contract. Conversely, our profit booking rates may decrease if the estimated total costs to complete the contract increase or our estimates of variable consideration we expect to receive decrease. All of the estimates are subject to change during the performance of the contract and may affect the profit booking rate. When estimates of total costs to be incurred on a contract exceed total estimates of the transaction price, a provision for the entire loss is determined at the contract level and is recorded in the period in which the loss is determined.

Comparability of our segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on our contracts for which we recognize revenue over time using the percentage-of-completion cost-to-cost method to measure progress towards completion. Increases in the profit booking rates, typically referred to as risk retirements, usually relate to revisions in the estimated total costs to fulfill the performance obligations that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to fulfill the performance obligations and a reduction in the profit booking rate. Increases or decreases in profit booking rates are recognized in the current period and reflect the inception-to-date effect of such changes. Segment operating profit and margin may also be impacted favorably or unfavorably by other items, which may or may not impact sales. Favorable items may include the positive resolution of contractual matters, cost recoveries on severance and restructuring charges, insurance recoveries and gains on sales of assets. Unfavorable items may include the adverse resolution of contractual matters; restructuring charges, except for significant severance actions, which are excluded from segment operating results; reserves for disputes; certain asset impairments; and losses on sales of certain assets.

Our consolidated net adjustments not related to volume, including net profit booking rate adjustments and other items, increased segment operating profit by approximately $1.9 billion, $1.6 billion, and $1.4 billion in 2018, 2017 and 2016. These adjustments increased net earnings by approximately $1.5 billion ($5.23 per share), $1.1 billion ($3.79 per share), and $910 million ($3.00 per share) in 2018, 2017 and 2016. We recognized net sales from performance obligations satisfied in prior periods of approximately $2.0 billion, $1.8 billion and $1.4 billion in 2018, 2017 and 2016, which primarily relate to changes in profit booking rates that impacted revenue.

As previously disclosed, we have a program, EADGE-T, to design, integrate, and install an air missile defense command, control, communications, computers – intelligence (C4I) system for an international customer that has experienced performance matters and for which we have periodically accrued reserves. In 2017, we revised our estimated costs to complete the EADGE-T contract 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 Rotary and Mission Systems (RMS) business segment, which resulted in cumulative losses of approximately $260 million on this program. As of December 31, 2018, cumulative losses remained at approximately $260 million. We continue to monitor program requirements and our performance. At this time, we do not anticipate additional charges that would be material to our operating results or financial condition.

We have two commercial satellite programs, for the delivery of three satellites in total, to international customers at our Space business segment, for which we have experienced performance issues related to the development and integration of a modernized LM 2100 satellite platform. These programs require the development of new satellite technology to enhance the LM 2100’s power, propulsion and electronics, among other items. The enhanced LM 2100 satellite platform is expected to benefit other commercial and government satellite programs. We have periodically revised our estimated costs to complete these developmental commercial programs. We have recorded cumulative losses of approximately $380 million through December 31, 2018. In 2018, we recorded losses of approximately $75 million ($56 million, or $0.20 per share, after tax). While these losses reflect our estimated total losses on the programs, we will continue to incur general and administrative costs each period until we complete these programs. These programs remain developmental and further challenges in the delivery and integration of new satellite technology, anomalies discovered during system testing requiring repair or rework, further schedule delays and potential penalties could require that we record additional loss reserves which could be material to our operating results. We previously disclosed that, as we did not meet the July 2018 delivery requirement for two satellites, the customer could seek to exercise termination rights. One of the satellites has now been launched, eliminating this risk. As the other is expected to launch in the first half of 2019, we believe it unlikely that the customer will seek to do so. Were the customer to seek to exercise a termination right and be successful in this effort, we would have to refund the payments we have received and pay certain penalties. On the third satellite, we currently anticipate delivery before the date upon which the customer could seek to exercise a termination right although we may have to pay certain penalties and have sought to address this possibility in our reserves.

We are responsible for designing, developing and installing an upgraded turret for the Warrior Capability Sustainment Program. In 2018, we revised our estimated costs to complete the program as a consequence of performance issues, and recorded a charge of approximately $85 million ($64 million, or $0.22 per share, after tax) at our Missiles and Fire Control (MFC) business segment, which resulted in cumulative losses of approximately $140 million on this program as of December 31, 2018. We may continue to experience issues related to customer requirements and our performance under this contract and have to record additional charges. However, based on the losses already recorded and our current estimate of the sales and costs to complete the program, at this time we do not anticipate that additional losses, if any, would be material to our operating results or financial condition.

Research and development and similar costs – We conduct research and development (R&D) activities using our own funds (referred to as company-funded R&D or independent research and development (IR&D)) and under contractual arrangements with our customers (referred to as customer-funded R&D) to enhance existing products and services and to develop future technologies. R&D costs include basic research, applied research, concept formulation studies, design, development, and related test activities. Company-funded R&D costs are allocated to customer contracts as part of the general and administrative overhead costs and generally recoverable on our customer contracts with the U.S. Government. Customer-funded R&D costs are charged directly to the related customer contract. Substantially all R&D costs are charged to cost of sales as incurred. Company-funded R&D costs charged to cost of sales totaled $1.3 billion in 2018, $1.2 billion in 2017 and $988 million in 2016.

Stock-based compensation – Compensation cost related to all share-based payments is measured at the grant date based on the estimated fair value of the award. We generally recognize the compensation cost ratably over a three-year vesting period, net of estimated forfeitures. At each reporting date, the number of shares is adjusted to the number ultimately expected to vest.

Income taxes – We calculate our provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying amount of assets and liabilities and their respective tax bases, as well as from operating loss and tax credit carry-forwards. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid.

We periodically assess our tax exposures related to periods that are open to examination. Based on the latest available information, we evaluate our tax positions to determine whether the position will more likely than not be sustained upon examination by the Internal Revenue Service (IRS) or other taxing authorities. If we cannot reach a more-likely-than-not determination, no benefit is recorded. If we determine that the tax position is more likely than not to be sustained, we record the largest amount of benefit that is more likely than not to be realized when the tax position is settled. We record interest and penalties related to income taxes as a component of income tax expense on our consolidated statements of earnings. Interest and penalties were not material.

Cash and cash equivalents – Cash equivalents include highly liquid instruments with original maturities of 90 days or less.

Receivables – Receivables, net represent our unconditional right to consideration under the contract and include amounts billed and currently due from customers. The amounts are stated at their net estimated realizable value. There were no significant impairment losses related to our receivables in 2018, 2017, or 2016.

On occasion, our customers may seek deferred payment terms to purchase our products. In connection with these transactions, we may, at our customer’s request, enter into arrangements for the non-recourse sale of customer receivables to unrelated third–party financial institutions. For accounting purposes, these transactions are not discounted and are treated as a sale of receivables as we have no continuing involvement. The sale proceeds from the financial institutions are reflected in our operating cash flows on the statement of cash flows. We sold approximately $532 million in 2018 and $698 million in 2017 of customer receivables. There were no gains or losses related to sales of these receivables.

Contract assets – Contract assets include unbilled amounts typically resulting from sales under contracts when the percentage-of-completion cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. The amounts may not exceed their estimated net realizable value. Contract assets are classified as current based on our contract operating cycle.

Inventories – We record inventories at the lower of cost or estimated net realizable value. If events or changes in circumstances indicate that the utility of our inventories have diminished through damage, deterioration, obsolescence, changes in price or other causes, a loss is recognized in the period in which it occurs. We capitalize labor, material, subcontractor and overhead costs as work-in-process for contracts where control has not yet passed to the customer. In addition, we capitalize costs incurred to fulfill a contract in advance of contract award in inventories as work-in-process if we determine that contract award is probable. We determine the costs of other product and supply inventories by using the first-in first-out or average cost methods.

Contract liabilities – Contract liabilities (formerly referred to as customer advances and amounts in excess of costs incurred) include advance payments and billings in excess of revenue recognized. Contract liabilities are classified as current based on our contract operating cycle and reported on a contract-by-contract basis, net of revenue recognized, at the end of each reporting period.

Property, plant and equipment – We record property, plant and equipment at cost. We provide for depreciation and amortization on plant and equipment generally using accelerated methods during the first half of the estimated useful lives of the assets and the straight-line method thereafter. The estimated useful lives of our plant and equipment generally range from 10 to 40 years for buildings and five to 15 years for machinery and equipment. No depreciation expense is recorded on construction in progress until such assets are placed into operation. Depreciation expense related to plant and equipment was $759 million in 2018, $760 million in 2017, and $747 million in 2016.

We review the carrying amounts of long-lived assets for impairment if events or changes in the facts and circumstances indicate that their carrying amounts may not be recoverable. We assess impairment by comparing the estimated undiscounted future cash flows of the related asset grouping to its carrying amount. If an asset is determined to be impaired, we recognize an impairment charge in the current period for the difference between the fair value of the asset and its carrying amount.

Capitalized software – We capitalize certain costs associated with the development or purchase of internal-use software. The amounts capitalized are included in other noncurrent assets on our consolidated balance sheets and are amortized on a straight-line basis over the estimated useful life of the resulting software, which ranges from two to six years. As of December 31, 2018 and 2017, capitalized software totaled $447 million and $424 million, net of accumulated amortization of $2.1 billion and $2.0 billion. No amortization expense is recorded until the software is ready for its intended use. Amortization expense related to capitalized software was $106 million in 2018, $123 million in 2017 and $136 million in 2016.

Goodwill – The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses.

Our goodwill balance was $10.8 billion at both December 31, 2018 and 2017. We perform an impairment test of our goodwill at least annually in the fourth quarter or more frequently whenever events or changes in circumstances indicate the carrying value of goodwill may be impaired. Such events or changes in circumstances may include a significant deterioration in overall economic conditions, changes in the business climate of our industry, a decline in our market capitalization, operating performance indicators, competition, reorganizations of our business, U.S. Government budget restrictions or the disposal of all or a portion of a reporting unit. Our goodwill has been allocated to and is tested for impairment at a level referred to as the reporting unit, which is our business segment level or a level below the business segment. The level at which we test goodwill for impairment requires us to determine whether the operations below the business segment constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results.

We may use either a qualitative or quantitative approach when testing a reporting unit’s goodwill for impairment. For selected reporting units where we use the qualitative approach, we perform a qualitative evaluation of events and circumstances impacting the reporting unit to determine the likelihood of goodwill impairment. Based on that qualitative evaluation, if we determine it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, no further evaluation is necessary. Otherwise we perform a quantitative impairment test. We perform quantitative tests for most reporting units at least once every three years. However, for certain reporting units we may perform a quantitative impairment test every year.

For the quantitative impairment test we compare the fair value of a reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment loss is recognized in an amount equal to that excess. We generally estimate the fair value of each reporting unit using a combination of a discounted cash flow (DCF) analysis and market-based valuation methodologies such as comparable public company trading values and values observed in recent business acquisitions. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, long-term growth rates, discount rates and relevant comparable public company earnings multiples and relevant transaction multiples. The cash flows employed in the DCF analysis are based on our best estimate of future sales, earnings and cash flows after considering factors such as general market conditions, U.S. Government budgets, existing firm orders, expected future orders, contracts with suppliers, labor agreements, changes in working capital, long term business plans and recent operating performance. The discount rates utilized in the DCF analysis are based on the respective reporting unit’s weighted average cost of capital, which takes into account the relative weights of each component of capital structure (equity and debt) and represents the expected cost of new capital, adjusted as appropriate to consider the risk inherent in future cash flows of the respective reporting unit. The carrying value of each reporting unit includes the assets and liabilities employed in its operations, goodwill and allocations of certain assets and liabilities held at the business segment and corporate levels.

During the fourth quarters of 2018, 2017 and 2016, we performed our annual goodwill impairment test for each of our reporting units. The results of our annual impairment tests of goodwill indicated that no impairment existed.

Intangible assets – Intangible assets from acquired businesses are recognized at their estimated fair values at the date of acquisition and consist of customer programs, trademarks, customer relationships, technology and other intangible assets. Customer programs include values assigned to major programs of acquired businesses and represent the aggregate value associated with the customer relationships, contracts, technology and trademarks underlying the associated program and are amortized on a straight-line basis over a period of expected cash flows used to measure the fair value, which ranges from nine to 20 years. Acquired intangibles deemed to have indefinite lives are not amortized, but are subject to annual impairment testing. This testing compares carrying value to fair value and, when appropriate, the carrying value of these assets is reduced to fair value. Finite-lived intangibles are amortized to expense over the applicable useful lives, ranging from three to 20 years, based on the nature of the asset and the underlying pattern of economic benefit as reflected by future net cash inflows. We perform an impairment test of finite-lived intangibles whenever events or changes in circumstances indicate their carrying value may be impaired.

Postretirement benefit plans – Many of our employees are covered by defined benefit pension plans and we provide certain health care and life insurance benefits to eligible retirees (collectively, postretirement benefit plans). GAAP requires that the amounts we record related to our postretirement benefit plans be computed, based on service to date, using actuarial valuations that are based in part on certain key economic assumptions we make, including the discount rate, the expected long-term rate of return on plan assets and other actuarial assumptions including participant longevity (also known as mortality), health care cost trend rates and employee turnover, each as appropriate based on the nature of the plans.

A market-related value of our plan assets, determined using actual asset gains or losses over the prior three year period, is used to calculate the amount of deferred asset gains or losses to be amortized. These asset gains or losses, along with those resulting from adjustments to our benefit obligation, will be amortized to expense using the corridor method, where gains and losses are recognized to the extent they exceed 10% of the greater of plan assets or benefit obligations, over the average future service period of employees expected to receive benefits under the plans of approximately nine years as of December 31, 2018. This amortization period is expected to extend (approximately double) in 2020 when our non-union pension plan is frozen to use the average remaining life expectancy of the participants instead of average future service.

We recognize on a plan-by-plan basis the funded status of our postretirement benefit plans under GAAP as either an asset recorded within other noncurrent assets or a liability recorded within noncurrent liabilities on our consolidated balance sheets. The GAAP funded status is measured as the difference between the fair value of the plan’s assets and the benefit obligation of the plan. The funded status under the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006 (PPA), is calculated on a different basis than under GAAP.

Environmental matters – We record a liability for environmental matters when it is probable that a liability has been incurred and the amount 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. Our environmental liabilities are recorded on our consolidated balance sheets within other liabilities, both current and noncurrent. We expect to include a substantial portion of environmental costs in our net sales and cost of sales in future periods pursuant to U.S. Government agreement or regulation. At the time a liability is recorded for future environmental costs, we record a receivable for estimated future recovery considered probable through the pricing of products and services to agencies of the U.S. Government, regardless of the contract form (e.g., cost-reimbursable, fixed-price). We continuously evaluate the recoverability of our environmental receivables by assessing, among other factors, U.S. Government regulations, our U.S. Government business base and contract mix, our history of receiving reimbursement of such costs, and recent 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. Our environmental receivables are recorded on our consolidated balance sheets within other assets, both current and noncurrent. We project costs and recovery of costs over approximately 20 years.

Investments in marketable securities – Investments in marketable securities consist of debt and equity securities which are recorded at fair value. As of December 31, 2018 and 2017, the fair value of our investments totaled $1.3 billion and $1.4 billion and was included in other noncurrent assets on our consolidated balance sheets. Our investments are held in a separate trust, which includes investments to fund our deferred compensation plan liabilities. Net losses on these securities were $67 million in 2018 compared to net gains on these securities of $150 million in 2017 and $66 million in 2016. Gains and losses on these investments are included in other unallocated, net within cost of sales on our consolidated statements of earnings in order to align the classification of changes in the market value of investments held for the plan with changes in the value of the corresponding plan liabilities.

Equity method investments – Investments where we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in other noncurrent assets on our consolidated balance sheets. Significant influence typically exists if we have a 20% to 50% ownership interest in the investee. Under this method of accounting, our share of the net earnings or losses of the investee is included in operating profit in other income, net on our consolidated statements of earnings since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. As of December 31, 2018 and 2017, our equity method investments totaled $1.2 billion and $1.4 billion, which primarily are composed of our investment in the United Launch Alliance (ULA) joint venture, and the Advanced Military Maintenance, Repair and Overhaul Center (AMMROC) joint venture. Our share of net earnings related to our equity method investees was $119 million in 2018, $207 million in 2017 and $443 million in 2016, of which approximately $210 million, $205 million and $325 million was included in our Space business segment operating profit.

During the year ended December 31, 2018, equity earnings included a non-cash asset impairment charge of $110 million ($83 million, or $0.29 per share, after tax) related to our equity method investee, AMMROC. During the year ended December 31, 2017, equity earnings included a charge recorded in the first quarter of 2017 of approximately $64 million ($40 million, or $0.14 per share, after tax), which represented our portion of a non-cash asset impairment related to certain long-lived assets held by AMMROC. We are continuing to monitor this investment in light of ongoing performance, business base and economic issues and we may have to record our portion of additional charges, or an impairment of our investment, or both, should the carrying value of our investment exceed its fair value. These charges could adversely affect our results of operations.

Derivative financial instruments – 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.

We record derivatives at their fair value. The classification of gains and losses resulting from changes in the fair values of derivatives is dependent on our intended use of the derivative and its resulting designation. Adjustments to reflect changes in fair values of derivatives attributable to the effective portion of hedges are either reflected in earnings and largely offset by corresponding adjustments to the hedged items or reflected net of income taxes in accumulated other comprehensive loss until the hedged transaction is recognized in earnings. Changes in the fair value of the derivatives that are attributable to the ineffective portion of the hedges or of derivatives that are not considered to be highly effective hedges, if any, are immediately recognized in earnings. The aggregate notional amount of our outstanding interest rate swaps at December 31, 2018 and 2017 was $1.3 billion and $1.2 billion. The aggregate notional amount of our outstanding foreign currency hedges at December 31, 2018 and 2017 was $3.5 billion and $4.1 billion. The fair values of our outstanding interest rate swaps and foreign currency hedges at December 31, 2018 and 2017 were not significant. Derivative instruments did not have a material impact on net earnings and comprehensive income during the years ended December 31, 2018, 2017 and 2016. The impact of derivative instruments on our consolidated statements of cash flows is included in net cash provided by operating activities. Substantially all of our derivatives are designated for hedge accounting. See “Note 16 – Fair Value Measurements” for more information on the fair value measurements related to our derivative instruments.

Recent Accounting Pronouncements

Revenue from Contracts with Customers

Effective January 1, 2018, we adopted ASC 606, which replaces existing revenue recognition guidance and outlines a single set of comprehensive principles for recognizing revenue under GAAP. Among other things, ASC 606 requires entities to assess the products or services promised in contracts with customers at contract inception to determine the appropriate unit at which to record revenues, which is referred to as a performance obligation. Revenue is recognized when control of the promised products or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those products or services. Prior to the adoption of ASC 606, we recognized the majority of our revenues using the percentage-of-completion method of accounting. Based on the nature of products provided or services performed, revenue was recorded as costs were incurred (the percentage-of-completion cost-to-cost method) or as units were delivered (the percentage-of-completion units-of-delivery method). For most of our contracts, the customer obtains control or receives benefits as we perform on the contract. As a result, under ASC 606 revenue is recognized over time utilizing the percentage-of-completion cost-to-cost method. This change generally results in an acceleration of revenue for contracts that were historically accounted for using the percentage-of-completion units-of-delivery method as revenues are now recognized earlier in the performance period as we incur costs. For more information on our policy for recognizing revenue under ASC 606, see “Note 1 – Significant Accounting Policies” Significant programs impacted by these changes include the C-130J and C-5 programs in our Aeronautics business segment; tactical missile programs (Hellfire and Joint Air-to-Surface Standoff Missile (JASSM)), Patriot Advanced Capability-3 (PAC-3), and fire control programs (LANTIRN^® and SNIPER^®) in our MFC business segment; the Black Hawk^® and Seahawk^® helicopter programs in our RMS business segment; and commercial satellite programs in our Space business segment.

We adopted ASC 606 using the full retrospective method, which means we applied the new standard to each prior year presented in our financial statements going back to January 1, 2016, with a cumulative effect adjustment to retained earnings as of January 1, 2016 for contracts that were in process at that point in time. Accordingly, the amounts for all periods presented in this Form 10‑K have been adjusted to reflect the impacts of ASC 606.

Compensation-Retirement Benefits

Effective January 1, 2018, we also adopted ASU 2017-07, which changed the income statement presentation of certain components of net periodic benefit cost related to defined benefit pension and other postretirement benefit plans. ASU 2017-07 requires entities to record only the service cost component of FAS pension and other postretirement benefit plan expense in operating profit and the non-service cost components of FAS pension and other postretirement benefit plan expense (i.e., interest cost, expected return on plan assets, net actuarial gains or losses, and amortization of prior service cost or credits) as part of non-operating expense. Previously, we recorded all components of net periodic benefit cost in operating profit as part of cost of sales. We adopted ASU 2017-07 using the retrospective method, which means we applied the new standard to each prior period presented in our financial statements going back to January 1, 2016.

The following tables summarize the effects of adopting ASC 606 and ASU 2017-07 on our consolidated statement of earnings for the years ended December 31, 2017 and 2016:



				Adjustments for
	2017 Historical			ASC 606			ASU 2017-07			2017 Adjusted
Net sales
Products	$	43,875		$	(1,373	)	$	—		$	42,502
Services	7,173			285			—			7,458
Total net sales	51,048			(1,088		)	—			49,960
Cost of sales
Products	(39,750		)	1,333			—			(38,417		)
Services	(6,405		)	(268		)	—			(6,673		)
Other unallocated, net	655			—			846			1,501
Total cost of sales	(45,500		)	1,065			846			(43,589		)
Gross profit	5,548			(23		)	846			6,371
Other income, net	373			—			—			373
Operating profit	5,921			(23		)	846			6,744
Interest expense	(651		)	—			—			(651		)
Other non-operating expense, net	(1		)	—			(846		)	(847		)
Earnings before income taxes	5,269			(23		)	—			5,246
Income tax expense	(3,340		)	(16		)	—			(3,356		)
Net earnings from continuing operations	1,929			(39		)	—			1,890
Net earnings from discontinued operations	73			—			—			73
Net earnings	$	2,002		$	(39	)	$	—		$	1,963
Earnings per common share
Basic
Continuing operations	$	6.70		$	(0.14	)	$	—		$	6.56
Discontinued operations	0.26			—			—			0.26
Basic earnings per common share	$	6.96		$	(0.14	)	$	—		$	6.82
Diluted
Continuing operations	$	6.64		$	(0.14	)	$	—		$	6.50
Discontinued operations	0.25			—			—			0.25
Diluted earnings per common share	$	6.89		$	(0.14	)	$	—		$	6.75



				Adjustments for
	2016 Historical			ASC 606			ASU 2017-07			2016 Adjusted
Net sales
Products	$	40,365		$	(284	)	$	—		$	40,081
Services	6,883			326			—			7,209
Total net sales	47,248			42			—			47,290
Cost of sales
Products	(36,616		)	222			—			(36,394		)
Services	(6,040		)	(383		)	—			(6,423		)
Severance charges	(80		)	—			—			(80		)
Other unallocated, net	550			(13		)	471			1,008
Total cost of sales	(42,186		)	(174		)	471			(41,889		)
Gross profit	5,062			(132		)	471			5,401
Other income, net	487			—			—			487
Operating profit	5,549			(132		)	471			5,888
Interest expense	(663		)	—			—			(663		)
Other non-operating expense, net	—			—			(471		)	(471		)
Earnings before income taxes	4,886			(132		)	—			4,754
Income tax expense	(1,133		)	40			—			(1,093		)
Net earnings from continuing operations	3,753			(92		)	—			3,661
Net earnings from discontinued operations	1,549			(37		)	—			1,512
Net earnings	$	5,302		$	(129	)	$	—		$	5,173
Earnings per common share
Basic
Continuing operations	$	12.54		$	(0.31	)	$	—		$	12.23
Discontinued operations	5.17			(0.12		)	—			5.05
Basic earnings per common share	$	17.71		$	(0.43	)	$	—		$	17.28
Diluted
Continuing operations	$	12.38		$	(0.30	)	$	—		$	12.08
Discontinued operations	5.11			(0.12		)	—			4.99
Diluted earnings per common share	$	17.49		$	(0.42	)	$	—		$	17.07

As a result of our adoption of ASC 606, our comprehensive income for the years ended December 31, 2017 and 2016 decreased by $38 million to $1.5 billion and by $129 million to $4.5 billion.

The following table summarizes the effects of adopting ASC 606 on our consolidated balance sheet as of December 31, 2017 (the adoption of ASU 2017-07 had no impact on our consolidated balance sheet):



				Adjustments for
	Historical				ASC 606			Adjusted
Assets
Current assets
Cash and cash equivalents	$	2,861			$	—		$	2,861
Receivables, net	8,603				(6,338		)	2,265
Contract assets	—				7,992			7,992
Inventories	4,487				(1,609		)	2,878
Other current assets	1,510				(1		)	1,509
Total current assets	17,461				44			17,505
Property, plant and equipment, net	5,775				—			5,775
Goodwill	10,807				—			10,807
Intangible assets, net	3,797				—			3,797
Deferred income taxes	3,111				45			3,156
Other noncurrent assets	5,570				10			5,580
Total assets	$	46,521			$	99		$	46,620
Liabilities and equity
Current liabilities
Accounts payable	$	1,467			$	—		$	1,467
Contract liabilities ^(a)	6,752				276			7,028
Salaries, benefits and payroll taxes	1,785				—			1,785
Current maturities of long-term debt	750				—			750
Other current liabilities	1,883				—			1,883
Total current liabilities	12,637				276			12,913
Long-term debt, net	13,513				—			13,513
Accrued pension liabilities	15,703				—			15,703
Other postretirement benefit liabilities	719				—			719
Other noncurrent liabilities	4,558				(10		)	4,548
Total liabilities	47,130				266			47,396
Stockholders’ equity
Common stock, $1 par value per share	284				—			284
Additional paid-in capital	—				—			—
Retained earnings	11,573				(168		)	11,405
Accumulated other comprehensive loss	(12,540		)		1			(12,539		)
Total stockholders’ deficit	(683		)		(167		)	(850		)
Noncontrolling interests in subsidiary	74				—			74
Total deficit	(609		)		(167		)	(776		)
Total liabilities and equity	$	46,521			$	99		$	46,620


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

The following tables summarize the effects of adopting ASC 606 on certain components within our net cash provided by operations for the years ended December 31, 2017 and 2016 (the adoption of ASC 606 had no impact on total operating cash flows or cash flows from investing and financing activities):



	2017			Adjustments for				2017
	Historical				ASC 606			Adjusted
Operating activities
Net earnings	$	2,002			$	(39	)	$	1,963
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	1,195				—			1,195
Stock-based compensation	158				—			158
Deferred income taxes	3,432				16			3,448
Gain on property sale	(198		)		—			(198		)
Gain on divestiture of IS&GS business	(73		)		—			(73		)
Changes in assets and liabilities
Receivables, net	(401		)		(501		)	(902		)
Contract assets	—				390			390
Inventories	183				(262		)	(79		)
Accounts payable	(189		)		—			(189		)
Contract liabilities ^(a)	(24		)		377			353
Postretirement benefit plans	1,316				—			1,316
Income taxes	(1,210		)		—			(1,210		)
Other, net	285				19			304
Net cash provided by operating activities	$	6,476			$	—		$	6,476


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



	2016			Adjustments for				2016
	Historical				ASC 606			Adjusted
Operating activities
Net earnings	$	5,302			$	(129	)	$	5,173
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	1,215				—			1,215
Stock-based compensation	149				—			149
Deferred income taxes	(152		)		(41		)	(193		)
Severance and restructuring charges	99				—			99
Gain on divestiture of IS&GS business	(1,242		)		41			(1,201		)
Gain on step acquisition of AWE	(104		)		—			(104		)
Changes in assets and liabilities
Receivables, net	(811		)		1,409			598
Contract assets	—				(1,246		)	(1,246		)
Inventories	(46		)		219			173
Accounts payable	(188		)		—			(188		)
Contract liabilities ^(a)	3				(166		)	(163		)
Postretirement benefit plans	1,028				—			1,028
Income taxes	146				—			146
Other, net	(210		)		(87		)	(297		)
Net cash provided by operating activities	$	5,189			$	—		$	5,189


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

Income Statement - Reporting Comprehensive Income

Effective January 1, 2018, we also adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides entities an option to reclassify certain tax effects as a result of the Tax Act from accumulated other comprehensive income or loss to retained earnings. The adoption of ASU 2018-02 increased our AOCL at January 1, 2018 by $2.4 billion with a corresponding increase to retained earnings by the same amount with zero impact to total equity. The reclassification was primarily related to the impact of U.S. tax reform on deferred tax assets associated with net actuarial losses (and prior service credits) resulting from our defined benefit pension and other postretirement benefit plans that were originally recorded in AOCL within equity. Those amounts were originally recorded net of deferred tax benefits based on the federal statutory income tax rate in effect at the time they were recorded. GAAP requires entities to remeasure deferred tax assets and liabilities as a result of a change in tax laws or rates, with the impacts reflected in earnings. Accordingly, in the fourth quarter of 2017, we remeasured the deferred tax assets associated with our AOCL using the lower U.S. corporate income tax rate under the Tax Act, with the impacts of the remeasurement recorded as a one-time charge to earnings. Prior to ASU 2018-02, GAAP required the original deferred tax amount recorded in accumulated other comprehensive income or loss, to remain at the old tax rate despite the fact that its related deferred tax asset or liability was remeasured as a result of the Tax Act. ASU 2018-02 allows entities to record a one-time reclassification of these tax effects between accumulated other comprehensive income or loss and retained earnings. We reclassify the impact of the income tax effects of tax reform from AOCL in the period in which they occur.

Compensation—Retirement Benefits—Defined Benefit Plans—General

In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements For Defined Benefit Plans. The new standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The effective date is our fiscal year ending December 31, 2020 with early adoption permitted and requires application on a retrospective basis. The adoption will not have a material effect on the Company’s consolidated financial statements

Derivatives and Hedging

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 adopted the new standard on January 1, 2019. 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.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements for both lessees and lessors, among other items. The new standard is effective for fiscal years beginning after December 15, 2018, which makes the new standard effective for us on January 1, 2019. We may apply the transition provisions of ASU 2016-02, as amended, either at the beginning of the earliest period presented in our fiscal year 2019 Form 10-K, which would be January 1, 2017, or on the effective date of adoption, which would be January 1, 2019. Among other requirements, the transition provisions require the lessee to recognize a right-of-use asset and liability for most existing lease arrangements on the date the transition provisions are applied. We have elected to apply the transition provisions of this new standard on January 1, 2019. Therefore, periods prior to the effective date of adoption will continue to be reported using current GAAP (ASC 840).

We commenced our evaluation of the impact of the new lease accounting standard in late 2016 by evaluating its impact on selected contracts. With this baseline understanding, we developed a project plan to evaluate numerous contracts across our corporation, develop processes and tools to implement the new standard and identify and design changes to internal controls by January 1, 2019. We have successfully identified and classified our lease population and we continued to perform under this project plan through the end of 2018. The majority of our existing lease arrangements are classified as operating leases, which will continue to be classified as operating under the new standard. Upon adoption of the new standard on January 1, 2019, we will record a right-of-use asset and lease liability, both with an approximate balance of $1.1 billion, on our balance sheet for all of our lease arrangements. We do not anticipate that adoption of the new standard will have a significant impact on our net earnings or cash flows.

Earnings Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

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



	2018	2017	2016
Weighted average common shares outstanding for basic computations	284.5	287.8	299.3
Weighted average dilutive effect of equity awards	2.3	2.8	3.8
Weighted average common shares outstanding for diluted computations	286.8	290.6	303.1

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), performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method. There were no significant anti-dilutive equity awards for the years ended December 31, 2018, 2017 and 2016.

Acquisition and Divestitures

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisition and Divestitures

Consolidation of AWE Management Limited

On August 24, 2016, we increased our ownership interest in the AWE joint venture, which operates the United Kingdom’s nuclear deterrent program, from 33% to 51%. Consequently, we began consolidating AWE and our operating results 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.

We accounted for this transaction as a “step acquisition” (as defined by U.S. GAAP), which requires us to consolidate and record the assets and liabilities of AWE at fair value. Accordingly, we recorded intangible assets of $243 million related to customer relationships, $32 million of net liabilities, and noncontrolling interests of $107 million. The intangible assets are being amortized over a period of eight years in accordance with the underlying pattern of economic benefit reflected by the future net cash flows. In 2016, we recognized a non-cash net gain of $104 million associated with obtaining a controlling interest in AWE, which consisted of a $127 million pretax gain recognized in the operating results of our Space business segment and $23 million of tax-related items at our corporate office. The gain represented the fair value of our 51% interest in AWE, less the carrying value of our previously held investment in AWE and deferred taxes. The gain was recorded in other income, net on our consolidated statements of earnings. The fair value of AWE (including the intangible assets), our controlling interest, and the noncontrolling interests were determined using the income approach.

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 part of the merger, each share of Abacus common stock was automatically converted into one share of Leidos common stock. We did not receive any shares of Leidos common stock as part of the Transaction and do not hold any shares of Leidos or Abacus common stock following the Transaction. Based on an opinion of outside tax counsel, subject to customary qualifications and based on factual representations, the exchange offer and merger will qualify as tax-free transactions to Lockheed Martin and its stockholders, except to the extent that cash was paid to Lockheed Martin stockholders in lieu of fractional shares.

In connection with the Transaction, Abacus borrowed an aggregate principal amount of approximately $1.84 billion under term loan facilities with third party financial institutions, the proceeds of which were used to make a one-time special cash payment of $1.80 billion to Lockheed Martin and to pay associated borrowing fees and expenses. The entire special cash payment was used to repay debt, pay dividends and repurchase stock during the third and fourth quarters of 2016. The obligations under the Abacus term loan facilities were guaranteed by Leidos as part of the Transaction.

As a result of the Transaction, we recognized a net gain of approximately $1.3 billion, including $1.2 billion recognized in 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 the $1.8 billion one-time special cash payment, 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. In 2017, we recognized an additional gain of $73 million, which reflects certain post-closing adjustments, including certain tax adjustments and the final determination of net working capital.

We classified the operating results of our former IS&GS business as discontinued operations in our consolidated financial statements in accordance with U.S. GAAP, as the divestiture of this business represented a strategic shift that had a major effect on our operations and financial results. However, the cash flows generated by the IS&GS business have not been reclassified in our consolidated statements of cash flows as we retained this cash as part of the Transaction.

The operating results, prior to the August 16, 2016 divestiture date, of the IS&GS business that have been reflected within net earnings from discontinued operations for the year ended December 31, 2016 are as follows (in millions):




Net sales	$	3,410
Cost of sales	(2,953		)
Severance charges	(19		)
Gross profit	438
Other income, net	16
Operating profit	454
Earnings from discontinued operations before income taxes	454
Income tax expense	(147		)
Net gain on divestiture of discontinued operations	1,205
Net earnings from discontinued operations	$	1,512

The operating results of the IS&GS business reported as discontinued operations are different than the results previously reported for the IS&GS business segment. Results reported within net earnings from discontinued operations only include costs that were directly attributable to the IS&GS business and exclude certain corporate overhead costs that were previously allocated to the IS&GS business. As a result, we reclassified $82 million in 2016 of corporate overhead costs from the IS&GS business to other unallocated, net on our consolidated statement of earnings.

Additionally, we retained all assets and obligations related to the pension benefits earned by former IS&GS business salaried employees through the date of divestiture. Therefore, the non-service portion of net pension costs (e.g., interest cost, actuarial gains and losses and expected return on plan assets) for these plans have been reclassified from the operating results of the IS&GS business segment and reported as a reduction to the FAS/CAS pension adjustment. These net pension costs were $54 million for the year ended December 31, 2016. The service portion of net pension costs related to IS&GS business’s salaried employees that transferred to Leidos were included in the operating results of the IS&GS business classified as discontinued operations because such costs are no longer incurred by us.

Significant severance charges related to the IS&GS business were historically recorded at the Lockheed Martin corporate office. These charges have been reclassified into the operating results of the IS&GS business, classified as discontinued operations, and excluded from the operating results of our continuing operations. The amount of severance charges reclassified were $19 million in 2016.

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 years ended December 31, 2016 were not significant.

Goodwill and Acquired Intangibles

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangibles

Changes in the carrying amount of goodwill by segment were as follows (in millions):



	Aeronautics		MFC			RMS			Space			Total
Balance at December 31, 2016	$	171	$	2,260		$	6,748		$	1,585		$	10,764
Other	—		5			36			2			43
Balance at December 31, 2017	171		2,265			6,784			1,587			10,807
Other	—		(3		)	(33		)	(2		)	(38		)
Balance at December 31, 2018	$	171	$	2,262		$	6,751		$	1,585		$	10,769

The gross carrying amounts and accumulated amortization of our acquired intangible assets consisted of the following (in millions):



	2018							2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-Lived:
Customer programs	$	3,184	$	(735	)	$	2,449	$	3,184	$	(503	)	$	2,681
Customer relationships	344		(199		)	145		352		(140		)	212
Other	53		(40		)	13		71		(54		)	17
Total finite-lived intangibles	3,581		(974		)	2,607		3,607		(697		)	2,910
Indefinite-Lived:
Trademark	887		—			887		887		—			887
Total acquired intangibles	$	4,468	$	(974	)	$	3,494	$	4,494	$	(697	)	$	3,797

Acquired finite-lived intangible assets are amortized to expense primarily on a straight-line basis over the following estimated useful lives: customer programs, from nine to 20 years; customer relationships, from four to 10 years; and other intangibles, from three to 10 years.

Amortization expense for acquired finite-lived intangible assets was $296 million, $312 million and $284 million in 2018, 2017 and 2016. Estimated future amortization expense is as follows: $285 million in 2019; $263 million in 2020; $256 million in 2021; $253 million in 2022; $250 million in 2023 and $1.3 billion thereafter.

With the acquisition of Sikorsky Aircraft Corporation (Sikorsky), we recorded customer contractual obligations of $507 million. Customer contractual obligations represent liabilities on certain development programs where the expected costs exceed the expected sales under contract. These liabilities are liquidated in accordance with the underlying economic pattern of the contractual obligations, as reflected by the estimated future net cash outflows incurred on the associated contracts. As of December 31, 2018, we have recognized approximately $325 million in net sales related to customer contractual obligations. As of December 31, 2018, the estimated liquidation of the customer contractual obligation is approximated as follows: $70 million in 2019, $45 million in 2020, $15 million in 2021, $30 million in 2022, $5 million in 2023 and $17 million thereafter.

Information on Business Segments

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Information on Business Segments

We operate in four business segments: Aeronautics, MFC, RMS and Space. We organize our business segments based on the nature of the products and services offered. Following is a brief description of the activities of our business segments:


•	Aeronautics – Engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies.


•	Missiles and Fire Control – Provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support and integration services; manned and unmanned ground vehicles; and energy management solutions.

•

Rotary and Mission Systems – Provides design, manufacture, service and support for a variety of military and commercial helicopters; ship and submarine mission and combat systems; mission systems and sensors for rotary and fixed-wing aircraft; sea and land-based missile defense systems; radar systems; the Littoral Combat Ship (LCS); simulation and training services; and unmanned systems and technologies. In addition, RMS supports the needs of customers in cybersecurity and delivers communications and command and control capability through complex mission solutions for defense applications.

•

Space – Engaged in the research and development, design, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems. Space provides network-enabled situational awareness and integrates complex space and ground global systems to help our customers gather, analyze and securely distribute critical intelligence data. Space is also responsible for various classified systems and services in support of vital national security systems. Prior to August 24, 2016, the date we obtained control of AWE we accounted for the venture using the equity method of accounting with 33% of AWE’s earnings or losses recognized by Space. Subsequent to August 24, 2016, we obtained control of AWE and 100% of AWE’s sales and 51% of AWE’s earnings have been included in our consolidated results of operations. Accordingly, the consolidated results of operations for the year ended December 31, 2016 do not reflect a full year of AWE operations. Operating profit for our Space business segment also includes our share of earnings for our investment in ULA, which provides expendable launch services to the U.S. Government.

The financial information in the following tables includes the results of businesses we have acquired from their respective dates of acquisition and excludes businesses included in discontinued operations (see “Note 3 – Acquisition and Divestitures”) for all years presented. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.

Operating profit of our business segments includes our share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of our business segments. ULA, results of which are included in our Space business segment, is our primary equity method investee. Operating profit of our business segments excludes the FAS/CAS operating adjustment for our qualified defined benefit pension plans (described below); the adjustment from CAS to FAS service cost component for all other postretirement benefit plans; 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 and restructuring actions (see “Note 15 – Severance and Restructuring Charges”) and goodwill 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 1 – Significant Accounting Policies” (under the caption “Use of 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. Our consolidated operating profit in our consolidated financial statements must present the service cost component of FAS pension and other postretirement benefit plan expense calculated in accordance with FAS requirements under U.S. GAAP. The operating portion of the net FAS/CAS operating adjustment represents the difference between the service cost component of FAS pension expense and the CAS pension cost recorded in our business segments’ results of operations. The non-service FAS pension and other postretirement benefit plan cost component is included in other non-operating expenses, net on our consolidated statement of earnings.

Selected Financial Data by Business Segment

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



	2018			2017			2016
Net sales
Aeronautics	$	21,242		$	19,410		$	17,293
Missiles and Fire Control	8,462			7,282			6,789
Rotary and Mission Systems	14,250			13,663			13,595
Space	9,808			9,605			9,613
Total net sales	$	53,762		$	49,960		$	47,290
Operating profit
Aeronautics	$	2,272		$	2,176		$	1,845
Missiles and Fire Control	1,248			1,034			1,004
Rotary and Mission Systems	1,302			902			845
Space ^(a)	1,055			980			1,288
Total business segment operating profit	5,877			5,092			4,982
Unallocated items
FAS/CAS operating adjustment ^(b)	1,803			1,613			1,250
Stock-based compensation	(173		)	(158		)	(149		)
Severance and restructuring charges ^(c)	(96		)	—			(80		)
Other, net ^(d)	(77		)	197			(115		)
Total unallocated, net	1,457			1,652			906
Total consolidated operating profit	$	7,334		$	6,744		$	5,888

^(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 business segment, which increased net earnings from continuing operations by $104 million ($0.34 per share) in 2016. See “Note 3 – Acquisition and Divestitures” for more information.


^(b)	The FAS/CAS operating adjustment represents the difference between the service cost component of FAS pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS. For a detail of the FAS/CAS operating adjustment and the total net FAS/CAS pension adjustment, see the table below.


^(c)	See “Note 15 – Severance and Restructuring Charges” for information on charges related to certain severance actions at our business segments. Severance and restructuring charges for initiatives that are not significant are included in business segment operating profit.

^(d)

Other, net in 2018 includes a non-cash asset impairment charge of $110 million related to our equity method investee, AMMROC (see “Note 1 – Significant Accounting Policies”). Other, net in 2017 includes a previously deferred non-cash gain of $198 million related to properties sold in 2015 as a result of completing our remaining obligations (see “Note 8 – Property, Plant and Equipment, net”) and a $64 million charge, which represents our portion of a non-cash asset impairment charge recorded by AMMROC (see “Note 1 – Significant Accounting Policies”).

Total net FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension expense, were as follows (in millions):



	2018			2017			2016
Total FAS expense and CAS costs
FAS pension expense	$	(1,431	)	$	(1,372	)	$	(1,019	)
Less: CAS pension cost	2,433			2,248			1,921
Net FAS/CAS pension adjustment	$	1,002		$	876		$	902

Service and non-service cost reconciliation
FAS pension service cost	(630		)	(635		)	(671		)
Less: CAS pension cost	2,433			2,248			1,921
FAS/CAS operating adjustment	1,803			1,613			1,250
Non-operating FAS pension expense ^(a)	(801		)	(737		)	(348		)
Net FAS/CAS pension adjustment	$	1,002		$	876		$	902

^(a)

We record the non-service cost components of net periodic benefit cost as part of other non-operating expense, net in the consolidated statement of earnings. The non-service cost components in the table above relate only to our qualified defined benefit pension plans. We incurred total non-service costs for our qualified defined benefit pension plans in the table above, along with similar costs for our other postretirement benefit plans of $67 million, $109 million, and $123 million for the years ended 2018, 2017 and 2016.

We recover CAS pension cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS pension cost in each of our business segment’s net sales and cost of sales. Our consolidated financial statements must present FAS pension and other postretirement benefit plan expense calculated in accordance with FAS requirements under U.S. GAAP. The operating portion of the net FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension expense and CAS pension cost. The non-service FAS pension cost component is included in other non-operating expense, net on our consolidated statements of earnings. The net FAS/CAS pension adjustment increases or decreases CAS pension cost to equal total FAS pension expense (both service and non-service).



	2018		2017		2016
Intersegment sales
Aeronautics	$	120	$	122	$	142
Missiles and Fire Control	423		355		299
Rotary and Mission Systems	2,026		2,020		1,854
Space	237		111		110
Total intersegment sales	$	2,806	$	2,608	$	2,405
Depreciation and amortization
Aeronautics	$	304	$	311	$	299
Missiles and Fire Control	105		99		105
Rotary and Mission Systems	458		468		476
Space	229		245		212
Total business segment depreciation and amortization	1,096		1,123		1,092
Corporate activities	65		72		75
Total depreciation and amortization ^(a)	$	1,161	$	1,195	$	1,167
Capital expenditures
Aeronautics	$	460	$	371	$	358
Missiles and Fire Control	244		156		167
Rotary and Mission Systems	255		308		271
Space	255		179		183
Total business segment capital expenditures	1,214		1,014		979
Corporate activities	64		163		75
Total capital expenditures ^(b)	$	1,278	$	1,177	$	1,054

^(a)

Total depreciation and amortization in the table above excludes $48 million for the year ended December 31, 2016 related to the former IS&GS business segment. These amounts are included in depreciation and amortization in our consolidated statement of cash flows as we did not reclassify our cash flows to exclude the IS&GS business segment. See “Note 3 – Acquisition and Divestitures” for more information.


^(b)	Total capital expenditures in the table above excludes $9 million for the year ended December 31, 2016 related to the former IS&GS business segment. These amounts are included in capital expenditures in our consolidated statement of cash flows as we did not reclassify our cash flows to exclude the IS&GS business segment. See “Note 3 – Acquisition and Divestitures” for more information.

Net Sales by Type

Net sales by total products and services, contract type, customer category and geographic region for each of our business segments were as follows (in millions):



	2018
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	18,207	$	6,945	$	11,714	$	8,139	$	45,005
Services	3,035		1,517		2,536		1,669		8,757
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by contract type
Fixed-price	$	15,719	$	5,653	$	9,975	$	1,892	$	33,239
Cost-reimbursable	5,523		2,809		4,275		7,916		20,523
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by customer
U.S. Government	$	13,321	$	6,088	$	10,083	$	8,224	$	37,716
International ^(a)	7,735		2,190		3,693		1,538		15,156
U.S. commercial and other	186		184		474		46		890
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by geographic region
United States	$	13,507	$	6,272	$	10,557	$	8,270	$	38,606
Asia Pacific	3,335		427		1,433		85		5,280
Europe	2,837		321		829		1,416		5,403
Middle East	1,380		1,404		781		37		3,602
Other	183		38		650		—		871
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762


^(a)	International sales include foreign military sales contracted through the U.S. Government, direct commercial sales with international governments and commercial and other sales to international customers.



	2017
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	16,981	$	5,940	$	11,398	$	8,183	$	42,502
Services	2,429		1,342		2,265		1,422		7,458
Total net sales	$	19,410	$	7,282	$	13,663	$	9,605	$	49,960
Net sales by contract type
Fixed-price	$	13,828	$	5,102	$	10,059	$	2,058	$	31,047
Cost-reimbursable	5,582		2,180		3,604		7,547		18,913
Total net sales	$	19,410	$	7,282	$	13,663	$	9,605	$	49,960
Net sales by customer
U.S. Government	$	12,609	$	4,467	$	9,715	$	8,088	$	34,879
International ^(a)	6,641		2,672		3,575		1,446		14,334
U.S. commercial and other	160		143		373		71		747
Total net sales	$	19,410	$	7,282	$	13,663	$	9,605	$	49,960
Net sales by geographic region
United States	$	12,769	$	4,610	$	10,088	$	8,159	$	35,626
Asia Pacific	2,823		516		1,344		92		4,775
Europe	2,331		305		927		1,270		4,833
Middle East	1,316		1,798		572		81		3,767
Other	171		53		732		3		959
Total net sales	$	19,410	$	7,282	$	13,663	$	9,605	$	49,960


^(a)	International sales include foreign military sales contracted through the U.S. Government, direct commercial sales with international governments and commercial and other sales to international customers.



	2016
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	15,066	$	5,602	$	11,401	$	8,012	$	40,081
Services	2,227		1,187		2,194		1,601		7,209
Total net sales	$	17,293	$	6,789	$	13,595	$	9,613	$	47,290
Net sales by contract type
Fixed-price	$	11,926	$	4,926	$	9,871	$	2,324	$	29,047
Cost-reimbursable	5,367		1,863		3,724		7,289		18,243
Total net sales	$	17,293	$	6,789	$	13,595	$	9,613	$	47,290
Net sales by customer
U.S. Government	$	11,265	$	4,304	$	9,350	$	8,516	$	33,435
International ^(a)	5,825		2,344		3,791		719		12,679
U.S. commercial and other	203		141		454		378		1,176
Total net sales	$	17,293	$	6,789	$	13,595	$	9,613	$	47,290
Net sales by geographic region
United States	$	11,468	$	4,445	$	9,804	$	8,894	$	34,611
Asia Pacific	2,077		341		1,194		98		3,710
Europe	2,020		237		1,045		475		3,777
Middle East	1,423		1,739		429		146		3,737
Other	305		27		1,123		—		1,455
Total net sales	$	17,293	$	6,789	$	13,595	$	9,613	$	47,290


^(a)	International sales include foreign military sales contracted through the U.S. Government, direct commercial sales with international governments and commercial and other sales to international customers.

Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, multi-variant, stealth fighter aircraft. Net sales for the F-35 program represented approximately 27%, 26% and 23% of our total consolidated net sales during 2018, 2017 and 2016.

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



	2018		2017
Assets ^(a)
Aeronautics	$	8,435	$	7,713
Missiles and Fire Control	5,017		4,577
Rotary and Mission Systems	18,333		18,292
Space	5,445		5,240
Total business segment assets	37,230		35,822
Corporate assets ^(b)	7,646		10,798
Total assets	$	44,876	$	46,620


^(a)	We have no long-lived assets with material carrying values located in foreign countries.


^(b)	Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables and investments held in a separate trust.

Receivables, net, Contract Assets and Contract Liabilities

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Receivables, net, Contract Assets and Contract Liabilities

Receivables, net, contract assets and contract liabilities were as follows (in millions):



	2018		2017
Receivables, net	$	2,444	$	2,265
Contract assets	9,472		7,992
Contract liabilities	6,491		7,028

Receivables, net consist of approximately $1.9 billion from the U.S. Government and $578 million from other governments and commercial customers as of December 31, 2018.

Contract assets are net of $30.2 billion and $19.9 billion of customer advances and progress payments as of December 31, 2018 and 2017. Contract assets increased $1.5 billion during 2018, primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during 2018 for which we have not yet billed. There were no significant impairment losses related to our contract assets during 2018 and 2017. We expect to bill our customers for the majority of the December 31, 2018 contract assets during 2019.

Contract liabilities decreased $537 million during 2018, primarily due to revenue recognized in excess of payments received on these performance obligations. During 2018, we recognized $3.9 billion of our contract liabilities at December 31, 2018 as revenue. During 2017, we recognized $3.3 billion of our contract liabilities at December 31, 2017 as revenue. During 2016, we recognized $3.7 billion of our contract liabilities at December 31, 2016 as revenue.

Inventories

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following (in millions):



	2018		2017
Materials, spares and supplies	$	446	$	563
Work-in-process	2,161		1,823
Finished goods	390		492
Total inventories	$	2,997	$	2,878

Work-in-process inventories at December 31, 2018 and 2017 included general and administrative costs of $53 million and $112 million. General and administrative costs incurred and recorded in inventories totaled $1.9 billion in 2018, $2.0 billion in 2017 and $1.9 billion in 2016. General and administrative costs charged to cost of sales from inventories totaled $2.0 billion in both 2018 and 2017 and $1.9 billion in 2016.

Costs incurred to fulfill a contract in advance of the contract being awarded are included in inventories as work-in-process if we determine that those costs relate directly to a contract or to an anticipated contract that we can specifically identify and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of sales consistent with the transfer of products and services to the customer upon the receipt of the anticipated contract. All other pre-contract costs, including start-up costs, are expensed as incurred. As of December 31, 2018 and 2017, $443 million and $466 million of pre-contract costs were included in inventories.

Property, Plant and Equipment, net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

Property, plant and equipment, net consisted of the following (in millions):



	2018			2017
Land	$	135		$	131
Buildings	6,553			6,401
Machinery and equipment	7,871			7,624
Construction in progress	1,530			1,205
Total property, plant and equipment	16,089			15,361
Less: accumulated depreciation and amortization	(9,965		)	(9,586		)
Total property, plant and equipment, net	$	6,124		$	5,775

Land Sales

In 2017, we recognized a previously deferred non-cash gain in other income, net in our consolidated statement of earnings of $198 million ($122 million or $0.42 per share, after tax) related to properties sold in 2015 as a result of completing our remaining obligations.

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Our provision for federal and foreign income tax expense for continuing operations consisted of the following (in millions):



	2018			2017			2016
Federal income tax expense (benefit):
Current
Operations	$	975		$	(189	)	$	1,327
One-time charge due to tax legislation ^(a)	(6		)	43			—
Deferred
Operations	(194		)	1,607			(261		)
One-time charge due to tax legislation ^(a)	(37		)	1,843			—
Total federal income tax expense	738			3,304			1,066
Foreign income tax expense (benefit):
Current	67			53			56
Deferred	(13		)	(1		)	(29		)
Total foreign income tax expense	54			52			27
Total income tax expense	$	792		$	3,356		$	1,093


^(a)	Represents one-time charge in 2017 primarily due to the re-measurement of certain net deferred tax assets using the lower U.S. corporate income tax rate and a deemed repatriation tax, and true-up to this charge in 2018.

On December 22, 2017, the President signed the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act, among other things, lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. Consequently, we wrote down our net deferred tax assets as of December 31, 2017 by $2.0 billion to reflect the estimated impact of the Tax Act. We recorded a corresponding net one-time charge of $2.0 billion ($6.77 per share), substantially all of which was non-cash, primarily related to enactment of the Tax Act, the re-measurement of certain net deferred tax assets using the lower U.S. corporate income tax rate, a deemed repatriation tax, and a reduction in the U.S. manufacturing benefit as a result of our decision to accelerate contributions to our pension fund in 2018 in order to receive a tax deduction in 2017.

We applied the guidance in Staff Accounting Bulletin 118 when accounting for the enactment-date effects of the Tax Act in 2017 and throughout 2018. At December 31, 2017, we had substantially completed our provisional analysis of the income tax effects of the Tax Act and recorded a reasonable estimate in 2017 of such effects. During 2018, we refined our calculations, evaluated changes in interpretations and assumptions that we had made, applied additional guidance issued by the U.S. Government, and evaluated actions and related accounting policy decisions we have made. As of December 22, 2018, we completed our accounting for all of the enactment-date income tax effects of the Tax Act and did not identify any material changes to the provisional, net, one-time charge for the year ended December 31, 2017, related to the Tax Act.

State income taxes are included in our operations as general and administrative costs and, under U.S. Government regulations, are allowable costs in establishing prices for the products and services we sell to the U.S. Government. Therefore, a substantial portion of state income taxes is included in our net sales and cost of sales. As a result, the impact of certain transactions on our operating profit and of other matters presented in these consolidated financial statements is disclosed net of state income taxes. Our total net state income tax expense was $83 million for 2018, $103 million for 2017, and $112 million for 2016.

Our reconciliation of the U.S. federal statutory income tax rate (21% in 2018 and 35% in 2017 and 2016) to actual income tax expense for continuing operations is as follows (dollars in millions):



	2018					2017					2016
	Amount			Rate		Amount			Rate		Amount			Rate
Income tax expense at the U.S. federal statutory tax rate	$	1,226		21.0	%	$	1,836		35.0	%	$	1,664		35.0	%
Research and development tax credit	(138		)	(2.4	)	(115		)	(2.2	)	(107		)	(2.2	)
Foreign derived intangible income deduction	(61		)	(1.0	)	—			—		—			—
Tax deductible dividends	(59		)	(1.0	)	(94		)	(1.8	)	(92		)	(1.9	)
Excess tax benefits for share-based payment awards	(55		)	(0.9	)	(106		)	(2.0	)	(152		)	(3.2	)
Deferred tax write-down and transition tax ^(a)	(43		)	(0.7	)	1,886			35.9		—			—
U.S. manufacturing deduction benefit ^(b)	—			—		(7		)	(0.1	)	(117		)	(2.5	)
Tax accounting method change ^(c)	(61		)	(1.0	)	—			—		—			—
Other, net	(17		)	(0.4	)	(44		)	(0.8	)	(103		)	(2.2	)
Income tax expense	$	792		13.6	%	$	3,356		64.0	%	$	1,093		23.0	%


^(a)	Includes a deferred tax re-measurement and transition tax true-up in 2018 and one-time charge in 2017 primarily due to the re-measurement of certain net deferred tax assets using the lower U.S. corporate income tax rate and a deemed repatriation tax.


^(b)	Includes a reduction in our 2017 manufacturing benefit as a result of our decision to accelerate contributions to our pension funds in 2018. The Tax Act repealed the manufacturing benefit for years after 2017.


^(c)	Recognized tax benefit of $61 million in 2018 from our change in a tax accounting method related to restoration of tax basis.

Tax benefits from U.S. research and development (R&D) tax credits were $138 million in 2018, $115 million in 2017, and $107 million in 2016.

We recognized a new tax benefit of $61 million in 2018 from the deduction for foreign derived intangible income enacted by the Tax Act. The Tax Act repealed the U.S. manufacturing deduction for years after 2017. Therefore, there was no U.S. manufacturing benefit in 2018. Tax benefits from the U.S. manufacturing deduction were $7 million in 2017 and $117 million in 2016.

We receive a tax deduction for dividends paid on shares of our common stock held by certain of our defined contribution plans with an employee stock ownership plan feature. The benefit of the tax deduction has declined, principally due to the lower tax rate in 2018.

In 2016, we adopted the accounting standard update for employee share-based payment awards on a prospective basis. Accordingly, we recognized additional income tax benefits of $55 million in 2018, $106 million in 2017, and $152 million in 2016.

We also recognized a tax benefit of $61 million in 2018 from our change in a tax accounting method reflecting a 2012 Court of Federal Claims decision, which held that the tax basis in certain assets should be increased and realized upon the assets’ disposition. The 2016 income tax rate also benefited from the nontaxable gain recorded in connection with the consolidation of AWE.

We participate in the IRS Compliance Assurance Process program. Examinations of the years 2017 and 2018 remain under IRS review.

The primary components of our federal and foreign deferred income tax assets and liabilities at December 31 were as follows (in millions):



	2018			2017^(a)
Deferred tax assets related to:
Accrued compensation and benefits	$	584		$	595
Pensions ^(b)	2,623			2,495
Other postretirement benefit obligations	148			153
Contract accounting methods	539			531
Foreign company operating losses and credits	38			27
Other	160			154
Valuation allowance ^(c)	(20		)	(20		)
Deferred tax assets, net	4,072			3,935
Deferred tax liabilities related to:
Goodwill and purchased intangibles	296			266
Property, plant and equipment	296			239
Exchanged debt securities and other	294			303
Deferred tax liabilities	886			808
Net deferred tax assets	$	3,186		$	3,127


^(a)	Components of our federal and foreign deferred income tax assets and liabilities at December 31, 2017 after taking into account the estimated impacts of the Tax Act and related items.


^(b)	The increase in 2018 is primarily due to lower tax deductions for pension contributions resulting from our 2017 decision to accelerate pension contributions to our pension fund in order to receive a deduction in 2017.


^(c)	A valuation allowance was provided against certain foreign company deferred tax assets arising from carryforwards of unused tax benefits.

As of December 31, 2018, 2017, and 2016, our liabilities associated with unrecognized tax benefits were not material.

We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various foreign jurisdictions. With few exceptions, the statute of limitations is no longer open for U.S. federal or non-U.S. income tax examinations for the years before 2015, other than with respect to refunds.

We received net federal and foreign income tax refunds of $41 million in 2018, primarily due to a 2017 net operating loss carryback arising from our accelerated pension contributions. Our federal and foreign income tax payments, net of refunds received, were $1.1 billion in 2017 and $1.3 billion in 2016.

Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

Our total debt consisted of the following (in millions):



	2018			2017
Notes
1.85% due 2018	$	—		$	750
4.25% due 2019	900			900
2.50% due 2020	1,250			1,250
3.35% due 2021	900			900
3.10% due 2023	500			500
2.90% due 2025	750			750
3.55% due 2026	2,000			2,000
3.60% due 2035	500			500
4.50% and 6.15% due 2036	1,054			1,054
4.07% due 2042	1,336			1,336
3.80% due 2045	1,000			1,000
4.70% due 2046	1,326			1,326
4.09% due 2052	1,578			1,578
Other notes with rates from 4.85% to 8.50%, due 2023 to 2041	1,618			1,654
Commercial paper	600			—
Total debt	15,312			15,498
Less: unamortized discounts and issuance costs	(1,208		)	(1,235		)
Total debt, net	14,104			14,263
Less: current portion	(1,500		)	(750		)
Long-term debt, net	$	12,604		$	13,513

Revolving Credit Facilities

On August 24, 2018, we entered into a new $2.5 billion revolving credit facility (the 5-year Facility) with various banks and concurrently terminated our existing $2.5 billion revolving credit facility. The 5‑year Facility has an expiration date of August 24, 2023 and is available for general corporate purposes. The undrawn portion of the 5-year Facility is also available to serve as a backup facility for the issuance of commercial paper. We may request and the banks may grant, at their discretion, an increase in the borrowing capacity under the 5-year Facility of up to an additional $500 million. There were no borrowings outstanding under the 5-year Facility as of December 31, 2018 and 2017.

Borrowings under the 5-year Facility are unsecured and bear interest at rates based, at our option, on a Eurodollar Rate or a Base Rate, as defined in the 5-year Facility’s agreement. Each bank’s obligation to make loans under the 5-year Facility is subject to, among other things, our compliance with various representations, warranties, and covenants, including covenants limiting our ability and certain of our subsidiaries’ ability to encumber assets and a covenant not to exceed a maximum leverage ratio, as defined in the 5‑year Facility agreement. As of December 31, 2018 and 2017, we were in compliance with all covenants contained in the 5-year Facility agreement, as well as in our debt agreements.

Long-Term Debt

In November 2018, we repaid $750 million of long-term notes with a fixed interest rate of 1.85% according to their scheduled maturities.

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 and began 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.

We made interest payments of approximately $635 million, $610 million and $600 million during the years ended December 31, 2018, 2017 and 2016, respectively.

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.

Short-Term Debt and Commercial Paper

As of December 31, 2018, we had $1.5 billion of short-term borrowings due within one year, of which approximately $900 million was composed of scheduled debt maturity due in November 2019 and approximately $600 million was composed of commercial paper borrowings with a weighted-average rate of 2.89%. During 2017, we borrowed and fully repaid amounts under our commercial paper programs. There were no commercial paper borrowings outstanding as of December 31, 2017. We expect to continue to issue commercial paper backed by our $2.5 billion 5‑year Facility to manage the timing of cash flows.

Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Postretirement Benefit Plans

Defined Benefit Pension Plans and Retiree Medical and Life Insurance Plans

Many of our employees are covered by qualified defined benefit pension plans and we provide certain health care and life insurance benefits to eligible retirees (collectively, postretirement benefit plans). We also sponsor nonqualified defined benefit pension plans to provide for benefits in excess of qualified plan limits. Non-union employees hired after December 2005 do not participate in our qualified defined benefit pension plans, but are eligible to participate in a qualified defined contribution plan in addition to our other retirement savings plans. They also have the ability to participate in our retiree medical plans, but we do not subsidize the cost of their participation in those plans as we do with employees hired before January 1, 2006. Over the last few years, we have negotiated similar changes with various labor organizations such that new union represented employees do not participate in our defined benefit pension plans. In June 2014, we amended certain of our qualified and nonqualified defined benefit pension plans for non-union employees, comprising the majority of our benefit obligations, to freeze future retirement benefits. The calculation of retirement benefits under the affected defined benefit pension plans is determined by a formula that takes into account the participants’ years of credited service and average compensation. The freeze takes effect in two stages. On January 1, 2016, the pay-based component of the formula used to determine retirement benefits was frozen so that future pay increases, annual incentive bonuses or other amounts earned for or related to periods after December 31, 2015 are not used to calculate retirement benefits. On January 1, 2020, the service-based component of the formula used to determine retirement benefits will also be frozen so that participants will no longer earn further credited service for any period after December 31, 2019. When the freeze is complete, the majority of our salaried employees will have transitioned to an enhanced defined contribution retirement savings plan.

We have made contributions to trusts established to pay future benefits to eligible retirees and dependents, including Voluntary Employees’ Beneficiary Association trusts and 401(h) accounts, the assets of which will be used to pay expenses of certain retiree medical plans. We use December 31 as the measurement date. Benefit obligations as of the end of each year reflect assumptions in effect as of those dates. Net periodic benefit cost is based on assumptions in effect at the end of the respective preceding year.

The rules related to accounting for postretirement benefit plans under GAAP require us to recognize on a plan-by-plan basis the funded status of our postretirement benefit plans as either an asset or a liability on our consolidated balance sheets. The funded status is measured as the difference between the fair value of the plan’s assets and the benefit obligation of the plan.

The net periodic benefit cost recognized each year included the following (in millions):



	Qualified Defined Benefit Pension Plans ^(a)									Retiree Medical and Life Insurance Plans
	2018			2017			2016			2018			2017			2016
Service cost	$	630		$	635		$	671		$	19		$	19		$	23
Interest cost	1,740			1,835			1,890			91			103			120
Expected return on plan assets	(2,395		)	(2,249		)	(2,539		)	(135		)	(128		)	(138		)
Recognized net actuarial losses	1,777			1,506			1,359			5			19			34
Amortization of net prior service (credit) cost ^(b)	(321		)	(355		)	(362		)	15			15			22
Total net periodic benefit cost	$	1,431		$	1,372		$	1,019		$	(5	)	$	28		$	61

^(a)

Total net periodic benefit cost associated with our qualified defined benefit plans represents pension expense calculated in accordance with GAAP (FAS pension expense). We are required to calculate pension expense in accordance with both GAAP and CAS rules, each of which results in a different calculated amount of pension expense. The CAS pension cost is recovered through the pricing of our products and services on U.S. Government contracts and, therefore, is recognized in net sales and cost of sales for products and services. We include the difference between FAS pension service cost and CAS pension cost, referred to as the FAS/CAS operating adjustment, as a component of other unallocated, net on our consolidated statements of earnings (see Note 5 – Information on Business Segments).


^(b)	Net of the reclassification for discontinued operations presentation of pension benefits related to former IS&GS salaried employees ($14 million in 2016).

The following table provides a reconciliation of benefit obligations, plan assets and unfunded status related to our qualified defined benefit pension plans and our retiree medical and life insurance plans (in millions):



	Qualified Defined Benefit Pension Plans						Retiree Medical and Life Insurance Plans
	2018			2017			2018			2017
Change in benefit obligation
Beginning balance	$	48,686		$	45,064		$	2,602		$	2,649
Service cost	630			635			19			19
Interest cost	1,740			1,835			91			103
Benefits paid	(2,379		)	(2,310		)	(224		)	(232		)
Settlements	(1,821		)	—			—			—
Actuarial losses (gains)	(3,281		)	3,536			(311		)	23
Changes in longevity assumptions ^(a)	(162		)	(352		)	(8		)	(24		)
Plan amendments and curtailments ^(b)	(108		)	278			101			—
Medicare Part D subsidy	—			—			9			—
Participants’ contributions	—			—			69			64
Ending balance	$	43,305		$	48,686		$	2,348		$	2,602
Change in plan assets
Beginning balance at fair value	$	33,095		$	31,417		$	1,883		$	1,787
Actual return on plan assets	(1,893		)	3,942			(94		)	224
Benefits paid	(2,379		)	(2,310		)	(224		)	(232		)
Settlements	(1,821		)	—			—			—
Company contributions	5,000			46			1			40
Medicare Part D subsidy	—			—			9			—
Participants’ contributions	—			—			69			64
Ending balance at fair value	$	32,002		$	33,095		$	1,644		$	1,883
Unfunded status of the plans	$	(11,303	)	$	(15,591	)	$	(704	)	$	(719	)


^(a)	As published by the Society of Actuaries


^(b)	The 2018 qualified defined benefit pension plan includes a $119 million curtailment gain.

In December 2018, an upfront cash payment of $810 million was made to an insurance company in exchange for a contract (referred to as a buy-in contract) that will reimburse the plan for all future benefit payments related to $770 million of the plan’s outstanding defined benefit pension obligations for approximately 9,000 U.S. retirees and beneficiaries. On December 31, 2018, the approximately 9,000 retirees and beneficiaries and the buy-in contract were spun-off to another plan, with the buy-in contract the sole asset of that plan. Under the arrangement, the plan remains responsible for paying the benefits for the covered retirees and beneficiaries and the insurance company will reimburse the plan as those benefits are paid. As a result, there is no net ongoing cash flow to the plan for the covered retirees and beneficiaries as the cost of providing the benefits is funded by the buy-in contract, effectively locking in the cost of the benefits and eliminating future volatility of the benefit obligation. The buy-in contract was purchased using assets from the pension trust and is accounted for at fair value as an investment of the trust. This transaction had no impact on our 2018 FAS pension expense or CAS pension cost. The difference of approximately $40 million between the amount paid to the insurance company and the amount of the pension obligations funded by the buy-in contract was recognized through the re-measurement of the related benefit obligations in other comprehensive loss in equity and will be amortized to FAS pension expense in future periods. We intend to begin the termination process for this plan during 2019, and at conclusion convert the buy-in contract to a buy-out contract, thus relieving us of liability for the pension obligations related to the covered population. The buy-out conversion, expected to occur as early as 2020, will require recognition of a settlement loss in earnings at that time, which we currently estimate will be approximately $350 million. A subsequent cash recovery is anticipated from the U.S. Government.

Also, during December 2018, we purchased an irrevocable group annuity contract from an insurance company (referred to as a buy-out contract) for $1.82 billion to settle $1.76 billion of our outstanding defined benefit pension obligations related to certain U.S. retirees and beneficiaries. The group annuity contract was purchased using assets from the pension trust. As a result of this transaction, we were relieved of all responsibility for these pension obligations and the insurance company is now required to pay and administer the retirement benefits owed to approximately 32,000 U.S. retirees and beneficiaries, with no change to the amount, timing or form of monthly retirement benefit payments. Although the transaction was treated as a settlement for accounting purposes, we did not recognize a loss on the settlement in earnings associated with the transaction because total settlements during 2018 for this plan were less than this plan’s service and interest cost in 2018. Accordingly, the transaction had no impact on our 2018 FAS pension expense or CAS pension cost, and the difference of approximately $60 million between the amount paid to the insurance company and the amount of the pension obligations settled was recognized in other comprehensive loss and will be amortized to FAS pension expense in future periods.

The following table provides amounts recognized on our consolidated balance sheets related to our qualified defined benefit pension plans and our retiree medical and life insurance plans (in millions):



	Qualified Defined Benefit Pension Plans						Retiree Medical and Life Insurance Plans
	2018			2017			2018			2017
Prepaid pension asset	$	107		$	112		$	—		$	—
Accrued postretirement benefit liabilities	(11,410		)	(15,703		)	(704		)	(719		)
Accumulated other comprehensive loss (pre-tax) related to:
Net actuarial losses	19,117			20,169			236			331
Prior service (credit) cost	(1,931		)	(2,263		)	167			81
Total ^(a)	$	17,186		$	17,906		$	403		$	412

^(a)

Accumulated other comprehensive loss related to postretirement benefit plans, after tax, of $14.3 billion and $12.6 billion at December 31, 2018 and 2017 (see “Note 12 – Stockholders’ Equity”) includes $17.2 billion ($13.5 billion, net of tax) and $17.9 billion ($11.8 billion, net of tax) for qualified defined benefit pension plans, $403 million ($316 million, net of tax) and $412 million ($252 million, net of tax) for retiree medical and life insurance plans and $542 million ($428 million, net of tax) and $705 million ($479 million, net of tax) for other plans.

The accumulated benefit obligation (ABO) for all qualified defined benefit pension plans was $43.3 billion and $48.5 billion at December 31, 2018 and 2017, of which $43.3 billion and $48.5 billion related to plans where the ABO was in excess of plan assets. The ABO represents benefits accrued without assuming future compensation increases to plan participants.

Certain key information related to our qualified defined benefit pension plans as of December 31, 2018 and 2017 is as follows (in millions):



	2018 ^(a)			2017
Plans where ABO was in excess of plan assets
Projected benefit obligation	$	42,444		$	48,628
Less: fair value of plan assets	31,034			32,925
Unfunded status of plans ^(b)	(11,410		)	(15,703		)
Plans where ABO was less than plan assets
Projected benefit obligation	51			58
Less: fair value of plan assets	158			170
Funded status of plans ^(c)	$	107		$	112


^(a)	Benefit obligation and plan assets in the table above exclude $810 million for one pension plan with plan assets valued equal to the benefit obligation.


^(b)	Represents accrued pension liabilities, which are included on our consolidated balance sheets.


^(c)	Represents prepaid pension assets, which are included on our consolidated balance sheets in other noncurrent assets.

We also sponsor nonqualified defined benefit plans to provide benefits in excess of qualified plan limits. The aggregate liabilities for these plans at December 31, 2018 and 2017 were $1.2 billion and $1.3 billion, which also represent the plans’ unfunded status. We have set aside certain assets totaling $425 million and $530 million as of December 31, 2018 and 2017 in a separate trust which we expect to be used to pay obligations under our nonqualified defined benefit plans. In accordance with GAAP, those assets may not be used to offset the amount of the benefit obligation similar to the postretirement benefit plans in the table above. The unrecognized net actuarial losses at December 31, 2018 and 2017 were $505 million and $646 million. The unrecognized prior service credit at December 31, 2018 and 2017 were $48 million and $61 million. The expense associated with these plans totaled $123 million in 2018, $126 million in 2017 and $125 million in 2016. We also sponsor a small number of other postemployment plans and foreign benefit plans. The aggregate liability for the other postemployment plans was $46 million and $60 million as of December 31, 2018 and 2017. The expense for the other postemployment plans, as well as the liability and expense associated with the foreign benefit plans, was not material to our results of operations, financial position or cash flows. The actuarial assumptions used to determine the benefit obligations and expense associated with our nonqualified defined benefit plans and postemployment plans are similar to those assumptions used to determine the benefit obligations and expense related to our qualified defined benefit pension plans and retiree medical and life insurance plans as described below.

The following table provides the amounts recognized in other comprehensive income (loss) related to postretirement benefit plans, net of tax, for the years ended December 31, 2018, 2017 and 2016 (in millions):



	Incurred but Not Yet Recognized in Net Periodic Benefit Cost									Recognition of Previously Deferred Amounts
	2018			2017			2016			2018			2017			2016
	Gains (losses)									(Gains) losses
Actuarial gains and losses
Qualified defined benefit pension plans	$	(570	)	$	(1,172	)	$	(1,236	)	$	1,396		$	974		$	879
Retiree medical and life insurance plans	71			77			94			4			12			22
Other plans	83			(66		)	(62		)	55			44			37
	(416		)	(1,161		)	(1,204		)	1,455			1,030			938
	Credit (cost)									(Credit) cost ^(a)
Net prior service credit and cost
Qualified defined benefit pension plans	(6		)	(219		)	(54		)	(255		)	(229		)	(235		)
Retiree medical and life insurance plans	(79		)	—			27			12			10			14
Other plans	—			—			(1		)	(10		)	(9		)	(9		)
	(85		)	(219		)	(28		)	(253		)	(228		)	(230		)
	$	(501	)	$	(1,380	)	$	(1,232	)	$	1,202		$	802		$	708


^(a)	Reflects the reclassification for discontinued operations presentation of benefits related to former IS&GS salaried employees ($9 million in 2016). In addition, we recognized $134 million in 2016 of prior service credits from the divestiture of our IS&GS business, which were reclassified as discontinued operations.

We expect that approximately $1.2 billion, or about $908 million net of tax, of actuarial losses and net prior service credit related to postretirement benefit plans included in accumulated other comprehensive loss at the end of 2018 to be recognized in net periodic benefit cost during 2019. Of this amount, $1.1 billion, or $841 million net of tax, relates to our qualified defined benefit plans and is included in our expected 2019 pension expense of $1.1 billion.

Actuarial Assumptions

The actuarial assumptions used to determine the benefit obligations at December 31 of each year and to determine the net periodic benefit cost for each subsequent year, were as follows:



	Qualified Defined Benefit Pension Plans						Retiree Medical and Life Insurance Plans
	2018		2017		2016		2018		2017		2016
Weighted average discount rate	4.250	%	3.625	%	4.125	%	4.250	%	3.625	%	4.000	%
Expected long-term rate of return on assets	7.00	%	7.50	%	7.50	%	7.00	%	7.50	%	7.50	%
Rate of increase in future compensation levels (for applicable bargained pension plans)	4.50	%	4.50	%	4.50	%
Health care trend rate assumed for next year							8.25	%	8.50	%	8.75	%
Ultimate health care trend rate							5.00	%	5.00	%	5.00	%
Year that the ultimate health care trend rate is reached							2032		2032		2032

The increase in the discount rate from December 31, 2017 to December 31, 2018 resulted in a decrease in the projected benefit obligations of our qualified defined benefit pension plans of approximately $3.5 billion at December 31, 2018. The decrease in the discount rate from December 31, 2016 to December 31, 2017 resulted in an increase in the projected benefit obligations of our qualified defined benefit pension plans of approximately $2.9 billion at December 31, 2017.

The long-term rate of return assumption represents the expected long-term rate of earnings on the funds invested, or to be invested, to provide for the benefits included in the benefit obligations. That assumption is based on several factors including historical market index returns, the anticipated long-term allocation of plan assets, the historical return data for the trust funds, plan expenses and the potential to outperform market index returns.

Plan Assets

Investment policies and strategies – Lockheed Martin Investment Management Company (LMIMCo), our wholly-owned subsidiary, has the fiduciary responsibility for making investment decisions related to the assets of our postretirement benefit plans. LMIMCo’s investment objectives for the assets of these plans are (1) to minimize the net present value of expected funding contributions; (2) to ensure there is a high probability that each plan meets or exceeds our actuarial long-term rate of return assumptions; and (3) to diversify assets to minimize the risk of large losses. The nature and duration of benefit obligations, along with assumptions concerning asset class returns and return correlations, are considered when determining an appropriate asset allocation to achieve the investment objectives. Investment policies and strategies governing the assets of the plans are designed to achieve investment objectives within prudent risk parameters. Risk management practices include the use of external investment managers; the maintenance of a portfolio diversified by asset class, investment approach and security holdings; and the maintenance of sufficient liquidity to meet benefit obligations as they come due.

LMIMCo’s investment policies require that asset allocations of postretirement benefit plans be maintained within the following approximate ranges:



Asset Class	Asset Allocation Ranges
Cash and cash equivalents	0-20%
Equity	15-65%
Fixed income	10-60%
Alternative investments:
Private equity funds	0-15%
Real estate funds	0-10%
Hedge funds	0-20%
Commodities	0-15%

Fair value measurements – The rules related to accounting for postretirement benefit plans under GAAP require certain fair value disclosures related to postretirement benefit plan assets, even though those assets are not separately presented on our consolidated balance sheets. The following table presents the fair value of the assets (in millions) of our qualified defined benefit pension plans and retiree medical and life insurance plans by asset category and their level within the fair value hierarchy, which has three levels based on the uncertainty of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets, Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. Certain other investments are measured at their Net Asset Value (NAV) per share and do not have readily determined values and are thus not subject to leveling in the fair value hierarchy. The NAV is the total value of the fund divided by the number of the fund’s shares outstanding. We recognize transfers between levels of the fair value hierarchy as of the date of the change in circumstances that causes the transfer.



	December 31, 2018								December 31, 2017
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Investments measured at fair value
Cash and cash equivalents ^(a)	$	1,727	$	1,727	$	—	$	—	$	1,419	$	1,419	$	—	$	—
Equity ^(a):
U.S. equity securities	3,936		3,927		3		6		4,922		4,905		14		3
International equity securities	5,406		5,400		—		6		5,370		5,355		13		2
Commingled equity funds	3,587		1,436		2,151		—		4,453		1,493		2,960		—
Fixed income ^(a):
Corporate debt securities	4,890		—		4,888		2		4,910		—		4,905		5
U.S. Government securities	3,399		—		3,399		—		3,775		—		3,775		—
U.S. Government-sponsored enterprise securities	571		—		571		—		817		—		817		—
Other fixed income investments ^(b)	2,926		—		1,988		938		2,414		—		2,403		11
Total	$	26,442	$	12,490	$	13,000	$	952	$	28,080	$	13,172	$	14,887	$	21
Investments measured at NAV ^(c)
Commingled equity funds	144								99
Other fixed income investments	29								68
Private equity funds	4,014								4,334
Real estate funds	2,117								1,611
Hedge funds	828								718
Total investments measured at NAV	7,132								6,830
Receivables, net	72								68
Total	$	33,646							$	34,978

^(a)

Cash and cash equivalents, equity securities and fixed income securities included derivative assets and liabilities whose fair values were not material as of December 31, 2018 and 2017. LMIMCo’s investment policies restrict the use of derivatives to either establish long or short exposures for purposes consistent with applicable investment mandate guidelines or to hedge risks to the extent of a plan’s current exposure to such risks. Most derivative transactions are settled on a daily basis.


^(b)	Level 3 investments include $810 million related to the buy-in contract discussed above.


^(c)	Certain investments that are valued using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy and are included in the table to permit reconciliation of the fair value hierarchy to the aggregate postretirement benefit plan assets.

As of December 31, 2018 and 2017, the assets associated with our foreign defined benefit pension plans were not material and have not been included in the table above. Excluding the December 2018 purchase of the buy-in contract discussed above, changes in the fair value of plan assets categorized as Level 3 during 2018 and 2017 were insignificant.

Valuation techniques – Cash equivalents are mostly comprised of short-term money-market instruments and are valued at cost, which approximates fair value.

U.S. equity securities and international equity securities categorized as Level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year. For U.S. equity securities and international equity securities not traded on an active exchange, or if the closing price is not available, the trustee obtains indicative quotes from a pricing vendor, broker or investment manager. These securities are categorized as Level 2 if the custodian obtains corroborated quotes from a pricing vendor or categorized as Level 3 if the custodian obtains uncorroborated quotes from a broker or investment manager.

Commingled equity funds categorized as Level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year. For commingled equity funds not traded on an active exchange, or if the closing price is not available, the trustee obtains indicative quotes from a pricing vendor, broker or investment manager. These securities are categorized as Level 2 if the custodian obtains corroborated quotes from a pricing vendor.

Fixed income investments categorized as Level 2 are valued by the trustee using pricing models that use verifiable observable market data (e.g., interest rates and yield curves observable at commonly quoted intervals and credit spreads), bids provided by brokers or dealers or quoted prices of securities with similar characteristics. Fixed income investments are categorized as Level 3 when valuations using observable inputs are unavailable. The trustee typically obtains pricing based on indicative quotes or bid evaluations from vendors, brokers or the investment manager. In addition, certain other fixed income investments categorized as Level 3 are valued using a discounted cash flow approach. Significant inputs include projected annuity payments and the discount rate applied to those payments.

Certain commingled equity funds, consisting of equity mutual funds, are valued using the NAV. The NAV valuations are based on the underlying investments and typically redeemable within 90 days.

Private equity funds consist of partnership and co-investment funds. The NAV is based on valuation models of the underlying securities, which includes unobservable inputs that cannot be corroborated using verifiable observable market data. These funds typically have redemption periods between eight and 12 years.

Real estate funds consist of partnerships, most of which are closed-end funds, for which the NAV is based on valuation models and periodic appraisals. These funds typically have redemption periods between eight and 10 years.

Hedge funds consist of direct hedge funds for which the NAV is generally based on the valuation of the underlying investments. Redemptions in hedge funds are based on the specific terms of each fund, and generally range from a minimum of one month to several months.

Contributions and Expected Benefit Payments

The funding of our qualified defined benefit pension plans is determined in accordance with ERISA, as amended by the PPA, and in a manner consistent with CAS and Internal Revenue Code rules. We made contributions of $5.0 billion to our qualified defined benefit pension plans in 2018, including required and discretionary contributions. As a result of these contributions, we do not expect to make contributions to our qualified defined benefit pension plans in 2019.

The following table presents estimated future benefit payments, which reflect expected future employee service, as of December 31, 2018 (in millions):



	2019		2020		2021		2022		2023		2024 – 2028
Qualified defined benefit pension plans	$	2,350	$	2,390	$	2,470	$	2,550	$	2,610	$	13,670
Retiree medical and life insurance plans	170		180		180		180		170		810

Defined Contribution Plans

We maintain a number of defined contribution plans, most with 401(k) features, that cover substantially all of our employees. Under the provisions of our 401(k) plans, we match most employees’ eligible contributions at rates specified in the plan documents. Our contributions were $658 million in 2018, $613 million in 2017 and $617 million in 2016, the majority of which were funded using our common stock. Our defined contribution plans held approximately 33.3 million and 35.5 million shares of our common stock as of December 31, 2018 and 2017.

Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

At December 31, 2018 and 2017, our authorized capital was composed of 1.5 billion shares of common stock and 50 million shares of series preferred stock. Of the 283 million shares of common stock issued and outstanding as of December 31, 2018, 281 million shares were considered outstanding for consolidated balance sheet presentation purposes; the remaining shares were held in a separate trust. Of the 285 million shares of common stock issued and outstanding as of December 31, 2017, 284 million shares were considered outstanding for consolidated balance sheet presentation purposes; the remaining shares were held in a separate trust. No shares of preferred stock were issued and outstanding at December 31, 2018 or 2017.

Repurchases of Common Stock

During 2018, we repurchased 4.7 million shares of our common stock for $1.5 billion. During 2017 and 2016, we paid $2.0 billion and $2.1 billion to repurchase 7.1 million and 8.9 million shares of our common stock.

On September 27, 2018, our Board of Directors approved a $1.0 billion increase to our share repurchase program. Inclusive of this increase, the total remaining authorization for future common share repurchases under our program was $3.0 billion as of December 31, 2018. 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 $1.1 billion, $1.6 billion and $1.7 billion recorded as a reduction of retained earnings in 2018, 2017 and 2016.

Dividends

We paid dividends totaling $2.3 billion ($8.20 per share) in 2018, $2.2 billion ($7.46 per share) in 2017 and $2.0 billion ($6.77 per share) in 2016. We paid quarterly dividends of $2.00 per share during each of the first three quarters of 2018 and $2.20 per share during the fourth quarter of 2018; $1.82 per share during each of the first three quarters of 2017 and $2.00 per share during the fourth quarter of 2017; and $1.65 per share during each of the first three quarters of 2016 and $1.82 per share during the fourth quarter of 2016.

Accumulated Other Comprehensive Loss

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



	Postretirement Benefit Plans ^(a)			Other, net			AOCL
Balance at December 31, 2015	$	(11,314	)	$	(130	)	$	(11,444	)
Other comprehensive loss before reclassifications	(1,232		)	—			(1,232		)
Amounts reclassified from AOCL
Recognition of net actuarial losses	938			—			938
Amortization of net prior service credits	(239		)	—			(239		)
Recognition of net prior service credits from divestiture of IS&GS segment ^(b)	(134		)	—			(134		)
Other	—			9			9
Total reclassified from AOCL	565			9			574
Total other comprehensive (loss) income	(667		)	9			(658		)
Balance at December 31, 2016	(11,981		)	(121		)	(12,102		)
Other comprehensive (loss) income before reclassifications	(1,380		)	120			(1,260		)
Amounts reclassified from AOCL
Recognition of net actuarial losses	1,030			—			1,030
Amortization of net prior service credits	(228		)	—			(228		)
Other	—			21			21
Total reclassified from AOCL	802			21			823
Total other comprehensive (loss) income	(578		)	141			(437		)
Balance at December 31, 2017	(12,559		)	20			(12,539		)
Other comprehensive loss before reclassifications	(501		)	(105		)	(606		)
Amounts reclassified from AOCL
Recognition of net actuarial losses	1,455			—			1,455
Amortization of net prior service credits	(253		)	—			(253		)
Other	—			30			30
Total reclassified from AOCL	1,202			30			1,232
Total other comprehensive income (loss)	701			(75		)	626
Reclassification of income tax effects from tax reform ^(c)	(2,396		)	(12		)	(2,408		)
Balance at December 31, 2018	$	(14,254	)	$	(67	)	$	(14,321	)

^(a)

AOCL related to postretirement benefit plans is shown net of tax benefits of $3.9 billion at December 31, 2018 and $6.5 billion at both December 31, 2017 and 2016. These tax benefits include amounts recognized on our income tax returns as current deductions and deferred income taxes, which will be recognized on our tax returns in future years. See “Note 9 – Income Taxes” and “Note 11 – Postretirement Benefit Plans” for more information on our income taxes and postretirement benefit plans.


^(b)	Associated with the 2016 divestiture of the IS&GS business and included in net gain on divestiture of discontinued operations.


^(c)	During 2018, we reclassified the impact of the income tax effects related to the Tax Cuts and Jobs Act of 2017 (the Tax Act) from AOCL to retained earnings by the same amount with zero impact to total equity. See “Note 1 – Significant Accounting Policies” for more information on the adoption of Income Statement - Reporting Comprehensive Income.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

During 2018, 2017 and 2016, we recorded non-cash stock-based compensation expense totaling $173 million, $158 million and $149 million, which is included as a component of other unallocated, net on our consolidated statements of earnings. The net impact to earnings for the respective years was $137 million, $103 million and $97 million.

As of December 31, 2018, we had $101 million of unrecognized compensation cost related to nonvested awards, which is expected to be recognized over a weighted average period of 1.8 years. We received cash from the exercise of stock options totaling $43 million, $71 million and $106 million during 2018, 2017 and 2016. In addition, our income tax liabilities for 2018, 2017 and 2016 were reduced by $75 million, $203 million and $219 million due to recognized tax benefits on stock-based compensation arrangements.

Stock-Based Compensation Plans

Under plans approved by our stockholders, we are authorized to grant key employees stock-based incentive awards, including options to purchase common stock, stock appreciation rights, RSUs, PSUs or other stock units. The exercise price of options to purchase common stock may not be less than the fair market value of our stock on the date of grant. No award of stock options may become fully vested prior to the third anniversary of the grant and no portion of a stock option grant may become vested in less than one year. The minimum vesting period for restricted stock or stock units payable in stock is three years. Award agreements may provide for shorter or pro-rated vesting periods or vesting following termination of employment in the case of death, disability, divestiture, retirement, change of control or layoff. The maximum term of a stock option or any other award is 10 years.

At December 31, 2018, inclusive of the shares reserved for outstanding stock options, RSUs and PSUs, we had approximately nine million shares reserved for issuance under the plans. At December 31, 2018, approximately five million of the shares reserved for issuance remained available for grant under our stock-based compensation plans. We issue new shares upon the exercise of stock options or when restrictions on RSUs and PSUs have been satisfied.

RSUs

The following table summarizes activity related to nonvested RSUs:



	Number of RSUs (In thousands)		Weighted Average Grant-Date Fair Value Per Share
Nonvested at December 31, 2015	1,236		$	134.87
Granted	679		206.69
Vested	(1,009	)	137.62
Forfeited	(118	)	203.65
Nonvested at December 31, 2016	788		$	183.00
Granted	519		254.58
Vested	(624	)	201.65
Forfeited	(32	)	223.23
Nonvested at December 31, 2017	651		$	220.21
Granted	406		353.99
Vested	(470	)	271.50
Forfeited	(24	)	282.07
Nonvested at December 31, 2018	563		$	271.23

In 2018, we granted certain employees approximately 0.4 million RSUs with a weighted average grant-date fair value of $353.99 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.

Stock Options

We generally recognize compensation cost for stock options ratably over the three-year vesting period. At December 31, 2018 and 2017, there were 1.8 million (weighted average exercise price of $79.76) and 2.2 million (weighted average exercise price of $82.71) stock options outstanding. All of the stock options outstanding are vested as of December 31, 2018 and have a weighted average remaining contractual life of approximately 1.9 years and an aggregate intrinsic value of $326 million. There were 0.4 million (weighted average exercise price of $94.63) stock options exercised during 2018. We have not granted stock options to employees since 2012. The intrinsic value of all stock options exercised was $104 million, $139 million, and $172 million in 2018, 2017 and 2016.

PSUs

In 2018, we granted certain employees PSUs with an aggregate target award of approximately 0.1 million shares of our common stock. The PSUs vest three years from the grant date based on continuous service, with the number of shares earned (0% to 200% of the target award) depending upon the extent to which we achieve certain financial and market performance targets measured over the period from January 1, 2018 through December 31, 2020. About half of the PSUs were valued at $354.60 per PSU in a manner similar to RSUs mentioned above as the financial targets are based on our operating results. We recognize the grant-date fair value of these PSUs, less estimated forfeitures, as compensation expense ratably over the vesting period based on the number of awards expected to vest at each reporting date. The remaining PSUs were valued at $420.75 per PSU using a Monte Carlo model as the performance target is related to our total shareholder return relative to our peer group. We recognize the grant-date fair value of these awards, less estimated forfeitures, as compensation expense ratably over the vesting period.

Legal Proceedings, Commitments and Contingencies	12 Months Ended
Legal Proceedings, Commitments and Contingencies	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings, Commitments and Contingencies	Legal Proceedings, Commitments and Contingencies We are a party to or have property subject to litigation and other proceedings that arise in the ordinary course of our business, including matters arising under provisions relating to the protection of the environment and are subject to contingencies related to certain businesses we previously owned. These types of matters could result in fines, penalties, compensatory or treble damages or non-monetary 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, we assumed the defense of and any potential liability for two civil False Claims Act lawsuits pending in the U.S. District Court for the Eastern District of Wisconsin. In October 2014, the U.S. Government filed a complaint in intervention in the first suit, which was brought by qui tam relator Mary Patzer, a former Derco Aerospace (Derco) employee. In May 2017, the U.S. Government filed a complaint in intervention in the second suit, which was brought by qui tam relator Peter Cimma, a former Sikorsky Support Services, Inc. (SSSI) employee. In November 2017, the Court consolidated the cases into a single action for discovery and trial. The U.S. Government alleges that Sikorsky and two of its wholly-owned subsidiaries, Derco and SSSI, violated the civil False Claims Act and the Truth in Negotiations Act in connection with a contract the U.S. Navy awarded to SSSI in June 2006 to support the Navy’s T-34 and T-44 fixed-wing turboprop training aircraft. SSSI subcontracted with Derco, primarily to procure and manage spare parts for the training aircraft. The U.S. Government contends that SSSI overbilled the Navy on the contract as the result of Derco’s use of prohibited cost-plus-percentage-of-cost pricing to add profit and overhead costs as a percentage of the price of the spare parts that Derco procured and then sold to SSSI. The U.S. Government also alleges that Derco’s claims to SSSI, SSSI’s claims to the Navy, and SSSI’s yearly Certificates of Final Indirect Costs from 2006 through 2012 were false and that SSSI submitted inaccurate cost or pricing data in violation of the Truth in Negotiations Act for a sole-sourced, follow-on “bridge” contract. The U.S. Government’s complaints assert common law claims for breach of contract and unjust enrichment. The U.S. Government further alleged violations of the Anti-Kickback Act and False Claims Act based on a monthly “chargeback,” through which SSSI billed Derco for the cost of certain SSSI personnel, allegedly in exchange for SSSI’s permitting a pricing arrangement that was “highly favorable” to Derco. On January 12, 2018, the Corporation filed a partial motion to dismiss intended to narrow the U.S. Government’s claims, including by seeking dismissal of the Anti-Kickback Act allegations. The Corporation also moved to dismiss Cimma as a party under the False Claims Act’s first-to-file rule, which permits only the first relator to recover in a pending case. The District Court granted these motions, in part, on July 20, 2018, dismissing the Government’s claims under the Anti-Kickback Act and dismissing Cimma as a party to the litigation. Before the District Court’s July 20, 2018 ruling, the U.S. Government sought damages of approximately $52 million, subject to trebling, plus statutory penalties. We do not know what effect, if any, the ruling will have on the U.S. Government’s calculation of damages. We believe that we have legal and factual defenses to the U.S. Government’s remaining claims. Although we continue to evaluate our liability and exposure, we do not currently believe that it is probable that we will incur a material loss. If, contrary to our expectations, the U.S. Government prevails in this matter and proves damages at or near $52 million and is successful in having such damages trebled, the outcome could have an adverse effect on our results of operations in the period in which a liability is recognized and on our cash flows for the period in which any damages are paid. On April 24, 2009, we filed a declaratory judgment action against the New York Metropolitan Transportation Authority and its Capital Construction Company (collectively, the MTA) asking the U.S. District Court for the Southern District of New York to find that the MTA is in material breach of our agreement based on the MTA’s failure to provide access to sites where work must be performed and the customer-furnished equipment necessary to complete the contract. The MTA filed an answer and counterclaim alleging that we breached the contract and subsequently terminated the contract for alleged default. The primary damages sought by the MTA are the costs to complete the contract and potential re-procurement costs. While we are unable to estimate the cost of another contractor to complete the contract and the costs of re-procurement, we note that our contract with the MTA had a total value of $323 million, of which $241 million was paid to us, and that the MTA is seeking damages of approximately $190 million. We dispute the MTA’s allegations and are defending against them. Additionally, following an investigation, our sureties on a performance bond related to this matter, who were represented by independent counsel, concluded that the MTA’s termination of the contract was improper. Finally, our declaratory judgment action was later amended to include claims for monetary damages against the MTA of approximately $95 million. This matter was taken under submission by the District Court in December 2014, after a five-week bench trial and the filing of post-trial pleadings by the parties. We continue to await a decision from the District Court. Although this matter relates to our former IS&GS business, we retained the litigation when we divested IS&GS in 2016. As previously disclosed, on August 16, 2016, we divested our former IS&GS business segment to Leidos Holdings, Inc. (Leidos) in a transaction which resulted in IS&GS, now known as Leidos Innovations Corporation (Leidos Innovations), becoming a wholly owned subsidiary of Leidos (the Transaction). In the Transaction, Leidos acquired IS&GS’ interest in Mission Support Alliance, LLC (MSA), a joint venture that holds a prime contract to provide infrastructure support services at the Department of Energy’s Hanford facility and the liabilities related to Lockheed Martin’s participation in MSA. Included within the liabilities assumed were those associated with ongoing investigations by the Department of Energy and the Department of Justice (DOJ) related to work performed at Hanford (the Investigations). In the Transaction, Lockheed Martin transferred to Leidos a reserve slightly in excess of $38 million Lockheed Martin had established with respect to its potential liability and that of its affiliates arising out of the Investigations and agreed to indemnify Leidos Innovations with respect to the liabilities assumed for damages to Leidos Innovations and an enumerated list of subsidiaries of Leidos Innovations related to the Investigations for 100% of amounts in excess of this reserve up to $64 million and 50% of amounts in excess of $64 million. In the Investigations, DOJ 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. The Investigations relate primarily to information technology services performed by a subsidiary of Lockheed Martin under a subcontract to MSA. DOJ recently stated that they are preparing to file a complaint alleging Civil False Claims Act violations. We cannot reasonably estimate our exposure at this time, but it is possible that a settlement or judgment against any of the parties being investigated could implicate Lockheed Martin’s indemnification obligations as described above. At present, in view of what we believe to be the strength of the defenses, Leidos’ assumption of the liabilities and structure of the indemnity, we do not believe it probable that we will incur a material loss. 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 not to be recoverable under U.S. Government contracts, in our cost of sales at the time the liability is established. At December 31, 2018 and 2017, the aggregate amount of liabilities recorded relative to environmental matters was $864 million and $920 million, most of which are recorded in other noncurrent liabilities on our consolidated balance sheets. We have recorded receivables totaling $750 million and $799 million at December 31, 2018 and 2017, 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 for 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). This standard was successfully challenged by the California Manufacturers and Technology Association (CMTA) for failure to conduct the required economic feasibility analysis. In response to the court’s ruling, the State Water Resources Control Board (State Board), a branch of the California Environmental Protection Agency, withdrew the hexavalent chromium standard from the published regulations, leaving only the 50 ppb standard for total chromium. The State Board has indicated it will work to re-establish a hexavalent chromium standard. If the standard for hexavalent chromium is re‑established at 10 ppb or above, it will not have a material impact on our existing environmental 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 not to be recoverable under U.S. Government contracts would be expensed, which may have a material effect on our earnings in any particular interim reporting period. Operating Leases We rent certain equipment and facilities under operating leases. Certain major plant facilities and equipment are furnished by the U.S. Government under short-term or cancelable arrangements. Our total rental expense under operating leases was $247 million, $169 million and $202 million for 2018, 2017 and 2016. Future minimum lease commitments at December 31, 2018 for long-term non-cancelable operating leases were $1.3 billion ($305 million in 2019, $184 million in 2020, $147 million in 2021, $114 million in 2022, $88 million in 2023 and $459 million in later years). 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 $3.6 billion at December 31, 2018 and $3.3 billion at December 31, 2017. Third-party guarantees do not include guarantees of subsidiaries and other consolidated entities. At December 31, 2018 and 2017, third-party guarantees totaled $850 million and $750 million, of which approximately 65% and 62% related to guarantees of contractual performance of ventures to which we currently are or previously were a party. This amount represents our estimate of the maximum amount we would expect to incur upon the contractual non-performance of the venture, venture partners or divested businesses. Generally, we also have cross-indemnities in place that may enable us to recover amounts that may be paid on behalf of a venture partner. In determining our exposures, we evaluate the reputation, performance on contractual obligations, technical capabilities and credit quality of our current and former venture partners and the transferee under novation agreements all of which include a guarantee as required by the FAR. There were no material amounts recorded in our financial statements related to third-party guarantees or novation agreements. United Launch Alliance In connection with our 50% ownership interest of ULA, we and The Boeing Company (Boeing) were previously required to provide ULA an additional capital contribution if ULA was unable to make required payments under its inventory supply agreement with Boeing. In the fourth quarter of 2018, ULA fully satisfied its obligations under this inventory supply agreement and we no longer have any obligation to provide ULA an additional capital contribution under this agreement. Our share of ULA’s net earnings are reported as equity in net earnings (losses) of equity investees in other income, net on our consolidated statements of earnings. Our investment in ULA totaled $687 million and $794 million at December 31, 2018 and 2017.

Severance and Restructuring Charges	12 Months Ended
Severance and Restructuring Charges	Dec. 31, 2018
Restructuring and Related Activities [Abstract]
Severance and Restructuring Charges	Severance and Restructuring Charges 2018 Actions During 2018, we recorded charges totaling $96 million ($76 million, or $0.26 per share, after tax) related to certain severance and restructuring actions at our RMS business segment. These charges consist of $75 million of severance costs for the planned elimination of certain positions through either voluntary or involuntary actions and $21 million of asset impairment charges associated with our decision to consolidate certain operations. Upon separation, terminated employees will receive lump-sum severance payments primarily based on years of service, a majority of which we expect to pay by the end of 2019. These actions resulted from a strategic review of our RMS business segment and are intended to improve the efficiency of our operations and better align our organization and cost structure with changing economic conditions. We expect to recover a portion of the severance and restructuring charges through the pricing of our products and services to the U.S. Government and other customers in future periods, which will be included in RMS’ operating results. During 2018, we paid approximately $33 million in severance payments associated with these actions. 2016 Actions During 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 receive lump-sum severance payments primarily based on years of service, the majority of which are expected to be paid over the next several quarters. As of the end of the first quarter of 2017, we had substantially paid the severance costs associated with these actions.

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

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):



	December 31, 2018						December 31, 2017
	Total		Level 1		Level 2		Total		Level 1		Level 2
Assets
Mutual funds	$	978	$	978	$	—	$	917	$	917	$	—
U.S. Government securities	105		—		105		116		—		116
Other securities	144		28		116		209		39		170
Derivatives	22		—		22		23		—		23
Liabilities
Derivatives	61		—		61		106		—		106
Assets measured at NAV
Other commingled funds	18						19

Substantially all assets measured at fair value, other than derivatives, represent investments held in a separate trust to fund certain of our non-qualified deferred compensation plans and are recorded in other noncurrent assets on our consolidated balance sheets. The fair values of mutual funds and certain other securities are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. The fair values of U.S. Government and other securities are determined using pricing models that use observable inputs (e.g., interest rates and yield curves observable at commonly quoted intervals), bids provided by brokers or dealers or quoted prices of securities with similar characteristics. The fair values of derivative instruments, which consist of foreign currency 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.

In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, receivables, accounts payable and debt and commercial paper. The carrying amounts for cash and cash equivalents, receivables and accounts payable approximated their fair values. The estimated fair value of our outstanding debt and commercial paper was $15.4 billion and $16.8 billion at December 31, 2018 and 2017. The outstanding principal amount was $15.3 billion and $15.5 billion at December 31, 2018 and 2017, excluding $1.2 billion of unamortized discounts and issuance costs. The estimated fair values of our outstanding debt were determined based on quoted prices for similar instruments in active markets (Level 2).

Summary of Quarterly Information (Unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Information (Unaudited)

A summary of quarterly information is as follows (in millions, except per share data):



	2018 Quarters
	First		Second^(b)		Third		Fourth ^(c)
Net sales	$	11,635	$	13,398	$	14,318	$	14,411
Operating profit	1,725		1,795		1,963		1,851
Net earnings	1,157		1,163		1,473		1,253
Basic earnings per common share ^(a)	4.05		4.08		5.18		4.43
Diluted earnings per common share ^(a)	4.02		4.05		5.14		4.39

	2017 Quarters
	First^(d)		Second		Third		Fourth^(e)(f)
Net sales	$	11,212	$	12,563	$	12,341	$	13,844
Operating profit	1,402		1,716		1,677		1,949
Net earnings (loss) from continuing operations	789		955		963		(817		)
Net earnings from discontinued operations	—		—		—		73
Net earnings (loss)	789		955		963		(744		)
Earnings (loss) per common share from continuing operations ^(a):
Basic	2.72		3.31		3.35		(2.85		)
Diluted	2.69		3.28		3.32		(2.85		)
Earnings per common share from discontinued operations:
Basic	—		—		—		0.25
Diluted	—		—		—		0.25
Basic earnings (loss) per common share ^(a)	2.72		3.31		3.35		(2.60		)
Diluted earnings (loss) per common share ^(a)	2.69		3.28		3.32		(2.60		)

^(a)

The sum of the quarterly earnings per share amounts do not equal the earnings per share amounts included on our consolidated statements of earnings. The difference in 2018 relates to the timing of our share repurchases. In addition to the timing of our share repurchases, the difference in 2017 was primarily due to the net loss in the fourth quarter causing any potentially dilutive securities to have an anti-dilutive effect, which resulted in the weighted average shares outstanding for basic and dilutive earnings per share being equivalent.


^(b)	The second quarter of 2018 includes a $96 million ($76 million or $0.26 per share, after tax) severance and restructuring charge (see “Note 15 – Severance and Restructuring Charges”).


^(c)	The fourth quarter of 2018 includes a non-cash asset impairment charge of $110 million ($83 million, or $0.29 per share, after tax) related to our equity method investee, AMMROC (see “Note 1 – Significant Accounting Policies”).


^(d)	The first quarter of 2017 includes a $120 million ($74 million or $0.25 per share, after tax) charge on our EADGE-T program and a $64 million ($40 million or $0.14 per share, after tax) charge, which represents our portion of a non-cash asset impairment charge recorded by our equity method investee, AMMROC (see “Note 1 – Significant Accounting Policies”).

^(e)

In the fourth quarter of 2017, we recorded a net one-time tax charge of $2.0 billion ($6.88 per share in the fourth quarter), substantially all of which was non-cash, primarily related to the estimated impact of the Tax Act (see “Note 9 – Income Taxes”). In addition, the fourth quarter of 2017 includes a previously deferred non-cash gain of $198 million ($122 million or $0.43 per share, after tax) related to properties sold in 2015 as a result of completing our remaining obligations.


^(f)	The fourth quarter of 2017 includes a net gain of $73 million, reported in net earnings from discontinued operations, related to the 2016 divestiture of our former IS&GS business.

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Dec. 31, 2018
Accounting Policies [Abstract]
Organization	Organization – We are a global security and aerospace company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. We also provide a broad range of management, engineering, technical, scientific, logistics, system integration and cybersecurity services. We serve both U.S. and international customers with products and services that have defense, civil and commercial applications, with our principal customers being agencies of the U.S. Government.
Basis of presentation	Basis of presentation – Our 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. Our receivables, inventories, customer advances and amounts in excess of costs incurred and certain amounts in other current liabilities primarily are attributable to long-term contracts or programs in progress for which the related operating cycles are longer than one year. In accordance with industry practice, we include these items in current assets and current liabilities. Unless otherwise noted, we present all per share amounts cited in these consolidated financial statements on a “per diluted share” basis. Certain prior period amounts have been reclassified to conform with current year presentation. The discussion and presentation of the operating results of our business segments have been impacted by the following recent events. Effective January 1, 2018, we adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), as amended (commonly referred to as ASC 606), which changed the way we recognize revenue for certain contracts and significantly expanded disclosures about revenue recognition. In addition, effective January 1, 2018, we adopted ASU 2017-07, Compensation-Retirement Benefits (715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changed the statement of earnings presentation of certain components of pension and other postretirement benefit plan expense. The amounts for all periods presented in this Form 10-K have been adjusted to reflect these new methods of accounting. On August 16, 2016, we completed the divestiture of the Information Systems & Global Solutions (IS&GS) business, which merged with a subsidiary of Leidos Holdings, Inc. (Leidos) in a Reverse Morris Trust transaction. Accordingly, the operating results of the IS&GS business have been classified as discontinued operations on our consolidated statements of earnings for all prior periods presented. However, the 2016 cash flows of the IS&GS business have not been reclassified in our consolidated statements of cash flows as we retained the cash as part of the Transaction.
Use of estimates	Use of estimates – We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP). In doing so, we are required 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 income taxes, fair value measurements and contingencies.
Revenue	Contract assets – Contract assets include unbilled amounts typically resulting from sales under contracts when the percentage-of-completion cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. The amounts may not exceed their estimated net realizable value. Contract assets are classified as current based on our contract operating cycle. Contract liabilities – Contract liabilities (formerly referred to as customer advances and amounts in excess of costs incurred) include advance payments and billings in excess of revenue recognized. Contract liabilities are classified as current based on our contract operating cycle and reported on a contract-by-contract basis, net of revenue recognized, at the end of each reporting period. Revenue Recognition – The majority of our net sales are generated from long-term contracts with the U.S. Government and international customers (including foreign military sales (FMS) contracted through the U.S. Government) for the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. We provide our products and services under fixed-price and cost-reimbursable contracts. Under fixed-price contracts, we agree to perform the specified work for a pre-determined price. To the extent our actual costs vary from the estimates upon which the price was negotiated, we will generate more or less profit or could incur a loss. Some fixed-price contracts have a performance-based component under which we may earn incentive payments or incur financial penalties based on our performance. Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract plus a fee up to a ceiling based on the amount that has been funded. Typically, we enter into three types of cost-reimbursable contracts: cost-plus-award-fee, cost-plus-incentive-fee, and cost-plus-fixed-fee. Cost-plus-award-fee contracts provide for an award fee that varies within specified limits based on the customer’s assessment of our performance against a predetermined set of criteria, such as targets based on cost, quality, technical and schedule criteria. Cost-plus-incentive-fee contracts provide for reimbursement of costs plus a fee, which is adjusted by a formula based on the relationship of total allowable costs to total target costs (i.e., incentive based on cost) or reimbursement of costs plus an incentive to exceed stated performance targets (i.e., incentive based on performance). The fixed-fee in a cost-plus-fixed-fee contract is negotiated at the inception of the contract and that fixed-fee does not vary with actual costs. We account for a contract after it has been approved by all parties to the arrangement, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We assess each contract at its inception to determine whether it should be combined with other contracts. When making this determination, we consider factors such as whether two or more contracts were negotiated and executed at or near the same time or were negotiated with an overall profit objective. If combined, we treat the combined contracts as a single contract for revenue recognition purposes. We evaluate the products or services promised in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. The products and services in our contracts are typically not distinct from one another due to their complex relationships and the significant contract management functions required to perform under the contract. Accordingly, our contracts are typically accounted for as one performance obligation. In limited cases, our contracts have more than one distinct performance obligation, which occurs when we perform activities that are not highly complex or interrelated or involve different product lifecycles. Significant judgment is required in determining performance obligations, and these decisions could change the amount of revenue and profit recorded in a given period. We classify net sales as products or services on our consolidated statements of earnings based on the predominant attributes of the performance obligations. We determine the transaction price for each contract based on the consideration we expect to receive for the products or services being provided under the contract. For contracts where a portion of the price may vary we estimate variable consideration at the most likely amount, which is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. We analyze the risk of a significant revenue reversal and if necessary constrain the amount of variable consideration recognized in order to mitigate this risk. At the inception of a contract we estimate the transaction price based on our current rights and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Contracts are often subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, modifications to our contracts are not distinct from the existing contract due to the significant integration and interrelated tasks provided in the context of the contract. Therefore, such modifications are accounted for as if they were part of the existing contract and recognized as a cumulative adjustment to revenue. For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation based on the estimated standalone selling price of the product or service underlying each performance obligation. The standalone selling price represents the amount we would sell the product or service to a customer on a standalone basis (i.e., not bundled with any other products or services). Our contracts with the U.S. Government, including FMS contracts, are subject to the Federal Acquisition Regulations (FAR) and the price is typically based on estimated or actual costs plus a reasonable profit margin. As a result of these regulations, the standalone selling price of products or services in our contracts with the U.S. Government and FMS contracts are typically equal to the selling price stated in the contract. For non-U.S. Government contracts with multiple performance obligations, we evaluate whether the stated selling prices for the products or services represent their standalone selling prices. We primarily sell customized solutions unique to a customer’s specifications. When it is necessary to allocate the transaction price to multiple performance obligations, we typically use the expected cost plus a reasonable profit margin to estimate the standalone selling price of each product or service. We occasionally sell standard products or services with observable standalone sales transactions. In these situations, the observable standalone sales transactions are used to determine the standalone selling price. We recognize revenue as performance obligations are satisfied and the customer obtains control of the products and services. In determining when performance obligations are satisfied, we consider factors such as contract terms, payment terms and whether there is an alternative future use of the product or service. Substantially all of our revenue is recognized over time as we perform under the contract because control of the work in process transfers continuously to the customer. For contracts with the U.S. Government and FMS contracts, this continuous transfer of control of the work in process to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit, and take possession of any work in process. Our non-U.S. Government contracts, primarily international direct commercial contracts, typically do not include termination for convenience provisions. However, continuous transfer of control to our customer is supported and, if our customer were to terminate the contract for reasons other than our non-performance, we would have the right to recover damages which would include, among other potential damages, the right to payment for our work performed to date plus a reasonable profit to deliver products or services that do not have an alternative use to us. For performance obligations to deliver products with continuous transfer of control to the customer, revenue is recognized based on the extent of progress towards completion of the performance obligation, generally using the percentage-of-completion cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer as we incur costs on our contracts. Under the percentage-of-completion cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs to complete the performance obligation(s). For performance obligations to provide services to the customer, revenue is recognized over time based on costs incurred or the right to invoice method (in situations where the value transferred matches our billing rights) as our customer receives and consumes the benefits. For performance obligations in which control does not continuously transfer to the customer, we recognize revenue at the point in time in which each performance obligation is fully satisfied. This coincides with the point in time the customer obtains control of the product or service, which typically occurs upon customer acceptance or receipt of the product or service, given that we maintain control of the product or service until that point. Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not yet transferred to the customer. For our cost-reimbursable and fixed-priced-incentive contracts, the estimated consideration we expect to receive pursuant to the terms of the contract may exceed the contractual award amount. The estimated consideration is determined at the outset of the contract and is continuously reviewed throughout the contract period. In determining the estimated consideration, we consider the risks related to the technical, schedule and cost impacts to complete the contract and an estimate of any variable consideration. Periodically, we review these risks and may increase or decrease backlog accordingly. As the risks on such contracts are successfully retired, the estimated consideration from customers may be reduced, resulting in a reduction of backlog without a corresponding recognition of sales. As of December 31, 2018, our ending backlog was $130.5 billion. We expect to recognize approximately 38% of our backlog over the next 12 months and approximately 66% over the next 24 months as revenue, with the remainder recognized thereafter. For arrangements with the U.S. Government and FMS contracts, we generally do not begin work on contracts until funding is appropriated by the customer. Billing timetables and payment terms on our contracts vary based on a number of factors, including the contract type. Typical payment terms under fixed-price contracts with the U.S. Government provide that the customer pays either performance-based payments (PBPs) based on the achievement of contract milestones or progress payments based on a percentage of costs we incur. For the majority of our international direct commercial contracts to deliver complex systems, we typically receive advance payments prior to commencement of work, as well as milestone payments that are paid in accordance with the terms of our contract as we perform. We recognize a liability for payments in excess of revenue recognized, which is presented as a contract liability on the balance sheet. The portion of payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer from our failure to adequately complete some or all of the obligations under the contract. Payments received from customers in advance of revenue recognition are not considered to be significant financing components because they are used to meet working capital demands that can be higher in the early stages of a contract. For fixed-price and cost-reimbursable contracts, we present revenues recognized in excess of billings as contract assets on the balance sheet. Amounts billed and due from our customers under both contract types are classified as receivables on the balance sheet. Significant estimates and assumptions are made in estimating contract sales and costs, including the profit booking rate. At the outset of a long-term contract, we identify and monitor risks to the achievement of the technical, schedule and cost aspects of the contract, as well as variable consideration, and assess the effects of those risks on our estimates of sales and total costs to complete the contract. The estimates consider the technical requirements (e.g., a newly-developed product versus a mature product), the schedule and associated tasks (e.g., the number and type of milestone events) and costs (e.g., material, labor, subcontractor, overhead, general and administrative and the estimated costs to fulfill our industrial cooperation agreements, sometimes referred to as offset or localization agreements, required under certain contracts with international customers). The initial profit booking rate of each contract considers risks surrounding the ability to achieve the technical requirements, schedule and costs in the initial estimated total costs to complete the contract. Profit booking rates may increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule and cost aspects of the contract, which decreases the estimated total costs to complete the contract or may increase the variable consideration we expect to receive on the contract. Conversely, our profit booking rates may decrease if the estimated total costs to complete the contract increase or our estimates of variable consideration we expect to receive decrease. All of the estimates are subject to change during the performance of the contract and may affect the profit booking rate. When estimates of total costs to be incurred on a contract exceed total estimates of the transaction price, a provision for the entire loss is determined at the contract level and is recorded in the period in which the loss is determined. Comparability of our segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on our contracts for which we recognize revenue over time using the percentage-of-completion cost-to-cost method to measure progress towards completion. Increases in the profit booking rates, typically referred to as risk retirements, usually relate to revisions in the estimated total costs to fulfill the performance obligations that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to fulfill the performance obligations and a reduction in the profit booking rate. Increases or decreases in profit booking rates are recognized in the current period and reflect the inception-to-date effect of such changes. Segment operating profit and margin may also be impacted favorably or unfavorably by other items, which may or may not impact sales. Favorable items may include the positive resolution of contractual matters, cost recoveries on severance and restructuring charges, insurance recoveries and gains on sales of assets. Unfavorable items may include the adverse resolution of contractual matters; restructuring charges, except for significant severance actions, which are excluded from segment operating results; reserves for disputes; certain asset impairments; and losses on sales of certain assets.
Research and development and similar costs	Research and development and similar costs –
Stock-based compensation	Stock-based compensation – Compensation cost related to all share-based payments is measured at the grant date based on the estimated fair value of the award. We generally recognize the compensation cost ratably over a three-year vesting period, net of estimated forfeitures. At each reporting date, the number of shares is adjusted to the number ultimately expected to vest.
Income taxes	Income taxes – We calculate our provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences that exist between the financial statement carrying amount of assets and liabilities and their respective tax bases, as well as from operating loss and tax credit carry-forwards. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid. We periodically assess our tax exposures related to periods that are open to examination. Based on the latest available information, we evaluate our tax positions to determine whether the position will more likely than not be sustained upon examination by the Internal Revenue Service (IRS) or other taxing authorities. If we cannot reach a more-likely-than-not determination, no benefit is recorded. If we determine that the tax position is more likely than not to be sustained, we record the largest amount of benefit that is more likely than not to be realized when the tax position is settled. We record interest and penalties related to income taxes as a component of income tax expense on our consolidated statements of earnings. Interest and penalties were not material.
Cash and cash equivalents	Cash and cash equivalents – Cash equivalents include highly liquid instruments with original maturities of 90 days or less.
Receivables	Receivables – Receivables, net represent our unconditional right to consideration under the contract and include amounts billed and currently due from customers. The amounts are stated at their net estimated realizable value. On occasion, our customers may seek deferred payment terms to purchase our products. In connection with these transactions, we may, at our customer’s request, enter into arrangements for the non-recourse sale of customer receivables to unrelated third–party financial institutions. For accounting purposes, these transactions are not discounted and are treated as a sale of receivables as we have no continuing involvement.
Inventories	Inventories – We record inventories at the lower of cost or estimated net realizable value. If events or changes in circumstances indicate that the utility of our inventories have diminished through damage, deterioration, obsolescence, changes in price or other causes, a loss is recognized in the period in which it occurs. We capitalize labor, material, subcontractor and overhead costs as work-in-process for contracts where control has not yet passed to the customer. In addition, we capitalize costs incurred to fulfill a contract in advance of contract award in inventories as work-in-process if we determine that contract award is probable. We determine the costs of other product and supply inventories by using the first-in first-out or average cost methods.
Property, plant and equipment	We review the carrying amounts of long-lived assets for impairment if events or changes in the facts and circumstances indicate that their carrying amounts may not be recoverable. We assess impairment by comparing the estimated undiscounted future cash flows of the related asset grouping to its carrying amount. If an asset is determined to be impaired, we recognize an impairment charge in the current period for the difference between the fair value of the asset and its carrying amount. Property, plant and equipment – We record property, plant and equipment at cost. We provide for depreciation and amortization on plant and equipment generally using accelerated methods during the first half of the estimated useful lives of the assets and the straight-line method thereafter. The estimated useful lives of our plant and equipment generally range from 10 to 40 years for buildings and five to 15 years for machinery and equipment. No depreciation expense is recorded on construction in progress until such assets are placed into operation.
Capitalized software	Capitalized software – We capitalize certain costs associated with the development or purchase of internal-use software. The amounts capitalized are included in other noncurrent assets on our consolidated balance sheets and are amortized on a straight-line basis over the estimated useful life of the resulting software, which ranges from two to six years.
Goodwill	Goodwill – The assets and liabilities of acquired businesses are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying identifiable net assets of acquired businesses. Our goodwill balance was $10.8 billion at both December 31, 2018 and 2017. We perform an impairment test of our goodwill at least annually in the fourth quarter or more frequently whenever events or changes in circumstances indicate the carrying value of goodwill may be impaired. Such events or changes in circumstances may include a significant deterioration in overall economic conditions, changes in the business climate of our industry, a decline in our market capitalization, operating performance indicators, competition, reorganizations of our business, U.S. Government budget restrictions or the disposal of all or a portion of a reporting unit. Our goodwill has been allocated to and is tested for impairment at a level referred to as the reporting unit, which is our business segment level or a level below the business segment. The level at which we test goodwill for impairment requires us to determine whether the operations below the business segment constitute a self-sustaining business for which discrete financial information is available and segment management regularly reviews the operating results. We may use either a qualitative or quantitative approach when testing a reporting unit’s goodwill for impairment. For selected reporting units where we use the qualitative approach, we perform a qualitative evaluation of events and circumstances impacting the reporting unit to determine the likelihood of goodwill impairment. Based on that qualitative evaluation, if we determine it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, no further evaluation is necessary. Otherwise we perform a quantitative impairment test. We perform quantitative tests for most reporting units at least once every three years. However, for certain reporting units we may perform a quantitative impairment test every year. For the quantitative impairment test we compare the fair value of a reporting unit to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment loss is recognized in an amount equal to that excess. We generally estimate the fair value of each reporting unit using a combination of a discounted cash flow (DCF) analysis and market-based valuation methodologies such as comparable public company trading values and values observed in recent business acquisitions. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, long-term growth rates, discount rates and relevant comparable public company earnings multiples and relevant transaction multiples. The cash flows employed in the DCF analysis are based on our best estimate of future sales, earnings and cash flows after considering factors such as general market conditions, U.S. Government budgets, existing firm orders, expected future orders, contracts with suppliers, labor agreements, changes in working capital, long term business plans and recent operating performance. The discount rates utilized in the DCF analysis are based on the respective reporting unit’s weighted average cost of capital, which takes into account the relative weights of each component of capital structure (equity and debt) and represents the expected cost of new capital, adjusted as appropriate to consider the risk inherent in future cash flows of the respective reporting unit. The carrying value of each reporting unit includes the assets and liabilities employed in its operations, goodwill and allocations of certain assets and liabilities held at the business segment and corporate levels.
Intangible assets	Intangible assets – Intangible assets from acquired businesses are recognized at their estimated fair values at the date of acquisition and consist of customer programs, trademarks, customer relationships, technology and other intangible assets. Customer programs include values assigned to major programs of acquired businesses and represent the aggregate value associated with the customer relationships, contracts, technology and trademarks underlying the associated program and are amortized on a straight-line basis over a period of expected cash flows used to measure the fair value, which ranges from nine to 20 years. Acquired intangibles deemed to have indefinite lives are not amortized, but are subject to annual impairment testing. This testing compares carrying value to fair value and, when appropriate, the carrying value of these assets is reduced to fair value. Finite-lived intangibles are amortized to expense over the applicable useful lives, ranging from three to 20 years, based on the nature of the asset and the underlying pattern of economic benefit as reflected by future net cash inflows. We perform an impairment test of finite-lived intangibles whenever events or changes in circumstances indicate their carrying value may be impaired.
Postretirement benefit plans	Postretirement benefit plans – Many of our employees are covered by defined benefit pension plans and we provide certain health care and life insurance benefits to eligible retirees (collectively, postretirement benefit plans). GAAP requires that the amounts we record related to our postretirement benefit plans be computed, based on service to date, using actuarial valuations that are based in part on certain key economic assumptions we make, including the discount rate, the expected long-term rate of return on plan assets and other actuarial assumptions including participant longevity (also known as mortality), health care cost trend rates and employee turnover, each as appropriate based on the nature of the plans. A market-related value of our plan assets, determined using actual asset gains or losses over the prior three year period, is used to calculate the amount of deferred asset gains or losses to be amortized. These asset gains or losses, along with those resulting from adjustments to our benefit obligation, will be amortized to expense using the corridor method, where gains and losses are recognized to the extent they exceed 10% of the greater of plan assets or benefit obligations, over the average future service period of employees expected to receive benefits under the plans of approximately nine years as of December 31, 2018. This amortization period is expected to extend (approximately double) in 2020 when our non-union pension plan is frozen to use the average remaining life expectancy of the participants instead of average future service. We recognize on a plan-by-plan basis the funded status of our postretirement benefit plans under GAAP as either an asset recorded within other noncurrent assets or a liability recorded within noncurrent liabilities on our consolidated balance sheets. The GAAP funded status is measured as the difference between the fair value of the plan’s assets and the benefit obligation of the plan. The funded status under the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006 (PPA), is calculated on a different basis than under GAAP.
Environmental matters	Environmental matters – We record a liability for environmental matters when it is probable that a liability has been incurred and the amount 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. Our environmental liabilities are recorded on our consolidated balance sheets within other liabilities, both current and noncurrent. We expect to include a substantial portion of environmental costs in our net sales and cost of sales in future periods pursuant to U.S. Government agreement or regulation. At the time a liability is recorded for future environmental costs, we record a receivable for estimated future recovery considered probable through the pricing of products and services to agencies of the U.S. Government, regardless of the contract form (e.g., cost-reimbursable, fixed-price). We continuously evaluate the recoverability of our environmental receivables by assessing, among other factors, U.S. Government regulations, our U.S. Government business base and contract mix, our history of receiving reimbursement of such costs, and recent 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. Our environmental receivables are recorded on our consolidated balance sheets within other assets, both current and noncurrent. We project costs and recovery of costs over approximately 20 years.
Investments in marketable securities	Gains and losses on these investments are included in other unallocated, net within cost of sales on our consolidated statements of earnings in order to align the classification of changes in the market value of investments held for the plan with changes in the value of the corresponding plan liabilities. Investments in marketable securities – Investments in marketable securities consist of debt and equity securities which are recorded at fair value. Our investments are held in a separate trust, which includes investments to fund our deferred compensation plan liabilities.
Equity method investments	Equity method investments – Investments where we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in other noncurrent assets on our consolidated balance sheets. Significant influence typically exists if we have a 20% to 50% ownership interest in the investee. Under this method of accounting, our share of the net earnings or losses of the investee is included in operating profit in other income, net on our consolidated statements of earnings since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired.
Derivative financial instruments	Derivative financial instruments – 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. We record derivatives at their fair value. The classification of gains and losses resulting from changes in the fair values of derivatives is dependent on our intended use of the derivative and its resulting designation. Adjustments to reflect changes in fair values of derivatives attributable to the effective portion of hedges are either reflected in earnings and largely offset by corresponding adjustments to the hedged items or reflected net of income taxes in accumulated other comprehensive loss until the hedged transaction is recognized in earnings. Changes in the fair value of the derivatives that are attributable to the ineffective portion of the hedges or of derivatives that are not considered to be highly effective hedges, if any, are immediately recognized in earnings.
Recent Accounting Pronouncements	Income Statement - Reporting Comprehensive Income Effective January 1, 2018, we also adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides entities an option to reclassify certain tax effects as a result of the Tax Act from accumulated other comprehensive income or loss to retained earnings. The adoption of ASU 2018-02 increased our AOCL at January 1, 2018 by $2.4 billion with a corresponding increase to retained earnings by the same amount with zero impact to total equity. The reclassification was primarily related to the impact of U.S. tax reform on deferred tax assets associated with net actuarial losses (and prior service credits) resulting from our defined benefit pension and other postretirement benefit plans that were originally recorded in AOCL within equity. Those amounts were originally recorded net of deferred tax benefits based on the federal statutory income tax rate in effect at the time they were recorded. GAAP requires entities to remeasure deferred tax assets and liabilities as a result of a change in tax laws or rates, with the impacts reflected in earnings. Accordingly, in the fourth quarter of 2017, we remeasured the deferred tax assets associated with our AOCL using the lower U.S. corporate income tax rate under the Tax Act, with the impacts of the remeasurement recorded as a one-time charge to earnings. Prior to ASU 2018-02, GAAP required the original deferred tax amount recorded in accumulated other comprehensive income or loss, to remain at the old tax rate despite the fact that its related deferred tax asset or liability was remeasured as a result of the Tax Act. ASU 2018-02 allows entities to record a one-time reclassification of these tax effects between accumulated other comprehensive income or loss and retained earnings. We reclassify the impact of the income tax effects of tax reform from AOCL in the period in which they occur. Compensation—Retirement Benefits—Defined Benefit Plans—General In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements For Defined Benefit Plans. The new standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The effective date is our fiscal year ending December 31, 2020 with early adoption permitted and requires application on a retrospective basis. The adoption will not have a material effect on the Company’s consolidated financial statements Derivatives and Hedging 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 adopted the new standard on January 1, 2019. 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. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements for both lessees and lessors, among other items. The new standard is effective for fiscal years beginning after December 15, 2018, which makes the new standard effective for us on January 1, 2019. We may apply the transition provisions of ASU 2016-02, as amended, either at the beginning of the earliest period presented in our fiscal year 2019 Form 10-K, which would be January 1, 2017, or on the effective date of adoption, which would be January 1, 2019. Among other requirements, the transition provisions require the lessee to recognize a right-of-use asset and liability for most existing lease arrangements on the date the transition provisions are applied. We have elected to apply the transition provisions of this new standard on January 1, 2019. Therefore, periods prior to the effective date of adoption will continue to be reported using current GAAP (ASC 840). We commenced our evaluation of the impact of the new lease accounting standard in late 2016 by evaluating its impact on selected contracts. With this baseline understanding, we developed a project plan to evaluate numerous contracts across our corporation, develop processes and tools to implement the new standard and identify and design changes to internal controls by January 1, 2019. We have successfully identified and classified our lease population and we continued to perform under this project plan through the end of 2018. The majority of our existing lease arrangements are classified as operating leases, which will continue to be classified as operating under the new standard. Upon adoption of the new standard on January 1, 2019, we will record a right-of-use asset and lease liability, both with an approximate balance of $1.1 billion, on our balance sheet for all of our lease arrangements. We do not anticipate that adoption of the new standard will have a significant impact on our net earnings or cash flows. Recent Accounting Pronouncements Revenue from Contracts with Customers Effective January 1, 2018, we adopted ASC 606, which replaces existing revenue recognition guidance and outlines a single set of comprehensive principles for recognizing revenue under GAAP. Among other things, ASC 606 requires entities to assess the products or services promised in contracts with customers at contract inception to determine the appropriate unit at which to record revenues, which is referred to as a performance obligation. Revenue is recognized when control of the promised products or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those products or services. Prior to the adoption of ASC 606, we recognized the majority of our revenues using the percentage-of-completion method of accounting. Based on the nature of products provided or services performed, revenue was recorded as costs were incurred (the percentage-of-completion cost-to-cost method) or as units were delivered (the percentage-of-completion units-of-delivery method). For most of our contracts, the customer obtains control or receives benefits as we perform on the contract. As a result, under ASC 606 revenue is recognized over time utilizing the percentage-of-completion cost-to-cost method. This change generally results in an acceleration of revenue for contracts that were historically accounted for using the percentage-of-completion units-of-delivery method as revenues are now recognized earlier in the performance period as we incur costs. For more information on our policy for recognizing revenue under ASC 606, see “Note 1 – Significant Accounting Policies” Significant programs impacted by these changes include the C-130J and C-5 programs in our Aeronautics business segment; tactical missile programs (Hellfire and Joint Air-to-Surface Standoff Missile (JASSM)), Patriot Advanced Capability-3 (PAC-3), and fire control programs (LANTIRN^® and SNIPER^®) in our MFC business segment; the Black Hawk^® and Seahawk^® helicopter programs in our RMS business segment; and commercial satellite programs in our Space business segment. We adopted ASC 606 using the full retrospective method, which means we applied the new standard to each prior year presented in our financial statements going back to January 1, 2016, with a cumulative effect adjustment to retained earnings as of January 1, 2016 for contracts that were in process at that point in time. Accordingly, the amounts for all periods presented in this Form 10‑K have been adjusted to reflect the impacts of ASC 606. Compensation-Retirement Benefits Effective January 1, 2018, we also adopted ASU 2017-07, which changed the income statement presentation of certain components of net periodic benefit cost related to defined benefit pension and other postretirement benefit plans. ASU 2017-07 requires entities to record only the service cost component of FAS pension and other postretirement benefit plan expense in operating profit and the non-service cost components of FAS pension and other postretirement benefit plan expense (i.e., interest cost, expected return on plan assets, net actuarial gains or losses, and amortization of prior service cost or credits) as part of non-operating expense. Previously, we recorded all components of net periodic benefit cost in operating profit as part of cost of sales. We adopted ASU 2017-07 using the retrospective method, which means we applied the new standard to each prior period presented in our financial statements going back to January 1, 2016.
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), performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method.
Acquired finite lived intangible assets	Acquired finite-lived intangible assets are amortized to expense primarily on a straight-line basis over the following estimated useful lives: customer programs, from nine to 20 years; customer relationships, from four to 10 years; and other intangibles, from three to 10 years.
Inventories, costs to fulfill a contract	Costs incurred to fulfill a contract in advance of the contract being awarded are included in inventories as work-in-process if we determine that those costs relate directly to a contract or to an anticipated contract that we can specifically identify and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of sales consistent with the transfer of products and services to the customer upon the receipt of the anticipated contract. All other pre-contract costs, including start-up costs, are expensed as incurred.

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table summarizes the effects of adopting ASC 606 on our consolidated balance sheet as of December 31, 2017 (the adoption of ASU 2017-07 had no impact on our consolidated balance sheet):



				Adjustments for
	Historical				ASC 606			Adjusted
Assets
Current assets
Cash and cash equivalents	$	2,861			$	—		$	2,861
Receivables, net	8,603				(6,338		)	2,265
Contract assets	—				7,992			7,992
Inventories	4,487				(1,609		)	2,878
Other current assets	1,510				(1		)	1,509
Total current assets	17,461				44			17,505
Property, plant and equipment, net	5,775				—			5,775
Goodwill	10,807				—			10,807
Intangible assets, net	3,797				—			3,797
Deferred income taxes	3,111				45			3,156
Other noncurrent assets	5,570				10			5,580
Total assets	$	46,521			$	99		$	46,620
Liabilities and equity
Current liabilities
Accounts payable	$	1,467			$	—		$	1,467
Contract liabilities ^(a)	6,752				276			7,028
Salaries, benefits and payroll taxes	1,785				—			1,785
Current maturities of long-term debt	750				—			750
Other current liabilities	1,883				—			1,883
Total current liabilities	12,637				276			12,913
Long-term debt, net	13,513				—			13,513
Accrued pension liabilities	15,703				—			15,703
Other postretirement benefit liabilities	719				—			719
Other noncurrent liabilities	4,558				(10		)	4,548
Total liabilities	47,130				266			47,396
Stockholders’ equity
Common stock, $1 par value per share	284				—			284
Additional paid-in capital	—				—			—
Retained earnings	11,573				(168		)	11,405
Accumulated other comprehensive loss	(12,540		)		1			(12,539		)
Total stockholders’ deficit	(683		)		(167		)	(850		)
Noncontrolling interests in subsidiary	74				—			74
Total deficit	(609		)		(167		)	(776		)
Total liabilities and equity	$	46,521			$	99		$	46,620


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



	2017			Adjustments for				2017
	Historical				ASC 606			Adjusted
Operating activities
Net earnings	$	2,002			$	(39	)	$	1,963
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	1,195				—			1,195
Stock-based compensation	158				—			158
Deferred income taxes	3,432				16			3,448
Gain on property sale	(198		)		—			(198		)
Gain on divestiture of IS&GS business	(73		)		—			(73		)
Changes in assets and liabilities
Receivables, net	(401		)		(501		)	(902		)
Contract assets	—				390			390
Inventories	183				(262		)	(79		)
Accounts payable	(189		)		—			(189		)
Contract liabilities ^(a)	(24		)		377			353
Postretirement benefit plans	1,316				—			1,316
Income taxes	(1,210		)		—			(1,210		)
Other, net	285				19			304
Net cash provided by operating activities	$	6,476			$	—		$	6,476


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



	2016			Adjustments for				2016
	Historical				ASC 606			Adjusted
Operating activities
Net earnings	$	5,302			$	(129	)	$	5,173
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	1,215				—			1,215
Stock-based compensation	149				—			149
Deferred income taxes	(152		)		(41		)	(193		)
Severance and restructuring charges	99				—			99
Gain on divestiture of IS&GS business	(1,242		)		41			(1,201		)
Gain on step acquisition of AWE	(104		)		—			(104		)
Changes in assets and liabilities
Receivables, net	(811		)		1,409			598
Contract assets	—				(1,246		)	(1,246		)
Inventories	(46		)		219			173
Accounts payable	(188		)		—			(188		)
Contract liabilities ^(a)	3				(166		)	(163		)
Postretirement benefit plans	1,028				—			1,028
Income taxes	146				—			146
Other, net	(210		)		(87		)	(297		)
Net cash provided by operating activities	$	5,189			$	—		$	5,189


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

The following tables summarize the effects of adopting ASC 606 and ASU 2017-07 on our consolidated statement of earnings for the years ended December 31, 2017 and 2016:



				Adjustments for
	2017 Historical			ASC 606			ASU 2017-07			2017 Adjusted
Net sales
Products	$	43,875		$	(1,373	)	$	—		$	42,502
Services	7,173			285			—			7,458
Total net sales	51,048			(1,088		)	—			49,960
Cost of sales
Products	(39,750		)	1,333			—			(38,417		)
Services	(6,405		)	(268		)	—			(6,673		)
Other unallocated, net	655			—			846			1,501
Total cost of sales	(45,500		)	1,065			846			(43,589		)
Gross profit	5,548			(23		)	846			6,371
Other income, net	373			—			—			373
Operating profit	5,921			(23		)	846			6,744
Interest expense	(651		)	—			—			(651		)
Other non-operating expense, net	(1		)	—			(846		)	(847		)
Earnings before income taxes	5,269			(23		)	—			5,246
Income tax expense	(3,340		)	(16		)	—			(3,356		)
Net earnings from continuing operations	1,929			(39		)	—			1,890
Net earnings from discontinued operations	73			—			—			73
Net earnings	$	2,002		$	(39	)	$	—		$	1,963
Earnings per common share
Basic
Continuing operations	$	6.70		$	(0.14	)	$	—		$	6.56
Discontinued operations	0.26			—			—			0.26
Basic earnings per common share	$	6.96		$	(0.14	)	$	—		$	6.82
Diluted
Continuing operations	$	6.64		$	(0.14	)	$	—		$	6.50
Discontinued operations	0.25			—			—			0.25
Diluted earnings per common share	$	6.89		$	(0.14	)	$	—		$	6.75



				Adjustments for
	2016 Historical			ASC 606			ASU 2017-07			2016 Adjusted
Net sales
Products	$	40,365		$	(284	)	$	—		$	40,081
Services	6,883			326			—			7,209
Total net sales	47,248			42			—			47,290
Cost of sales
Products	(36,616		)	222			—			(36,394		)
Services	(6,040		)	(383		)	—			(6,423		)
Severance charges	(80		)	—			—			(80		)
Other unallocated, net	550			(13		)	471			1,008
Total cost of sales	(42,186		)	(174		)	471			(41,889		)
Gross profit	5,062			(132		)	471			5,401
Other income, net	487			—			—			487
Operating profit	5,549			(132		)	471			5,888
Interest expense	(663		)	—			—			(663		)
Other non-operating expense, net	—			—			(471		)	(471		)
Earnings before income taxes	4,886			(132		)	—			4,754
Income tax expense	(1,133		)	40			—			(1,093		)
Net earnings from continuing operations	3,753			(92		)	—			3,661
Net earnings from discontinued operations	1,549			(37		)	—			1,512
Net earnings	$	5,302		$	(129	)	$	—		$	5,173
Earnings per common share
Basic
Continuing operations	$	12.54		$	(0.31	)	$	—		$	12.23
Discontinued operations	5.17			(0.12		)	—			5.05
Basic earnings per common share	$	17.71		$	(0.43	)	$	—		$	17.28
Diluted
Continuing operations	$	12.38		$	(0.30	)	$	—		$	12.08
Discontinued operations	5.11			(0.12		)	—			4.99
Diluted earnings per common share	$	17.49		$	(0.42	)	$	—		$	17.07

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2018

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):



	2018	2017	2016
Weighted average common shares outstanding for basic computations	284.5	287.8	299.3
Weighted average dilutive effect of equity awards	2.3	2.8	3.8
Weighted average common shares outstanding for diluted computations	286.8	290.6	303.1

Acquisition and Divestitures (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Carrying Amounts of Major Classes of Business Assets and Liabilities, Operating Results of Discontinued Operations and Information of IS and GS Included in Consolidated Statements of Cash Flows




Net sales	$	3,410
Cost of sales	(2,953		)
Severance charges	(19		)
Gross profit	438
Other income, net	16
Operating profit	454
Earnings from discontinued operations before income taxes	454
Income tax expense	(147		)
Net gain on divestiture of discontinued operations	1,205
Net earnings from discontinued operations	$	1,512

- 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

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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Goodwill and Acquired Intangibles (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill by Segment

Changes in the carrying amount of goodwill by segment were as follows (in millions):



	Aeronautics		MFC			RMS			Space			Total
Balance at December 31, 2016	$	171	$	2,260		$	6,748		$	1,585		$	10,764
Other	—		5			36			2			43
Balance at December 31, 2017	171		2,265			6,784			1,587			10,807
Other	—		(3		)	(33		)	(2		)	(38		)
Balance at December 31, 2018	$	171	$	2,262		$	6,751		$	1,585		$	10,769

The Gross Carrying Amounts and Accumulated Amortization of Acquired Intangible Assets

The gross carrying amounts and accumulated amortization of our acquired intangible assets consisted of the following (in millions):



	2018							2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-Lived:
Customer programs	$	3,184	$	(735	)	$	2,449	$	3,184	$	(503	)	$	2,681
Customer relationships	344		(199		)	145		352		(140		)	212
Other	53		(40		)	13		71		(54		)	17
Total finite-lived intangibles	3,581		(974		)	2,607		3,607		(697		)	2,910
Indefinite-Lived:
Trademark	887		—			887		887		—			887
Total acquired intangibles	$	4,468	$	(974	)	$	3,494	$	4,494	$	(697	)	$	3,797

The Gross Carrying Amounts and Accumulated Amortization of Acquired Intangible Assets

The gross carrying amounts and accumulated amortization of our acquired intangible assets consisted of the following (in millions):



	2018							2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-Lived:
Customer programs	$	3,184	$	(735	)	$	2,449	$	3,184	$	(503	)	$	2,681
Customer relationships	344		(199		)	145		352		(140		)	212
Other	53		(40		)	13		71		(54		)	17
Total finite-lived intangibles	3,581		(974		)	2,607		3,607		(697		)	2,910
Indefinite-Lived:
Trademark	887		—			887		887		—			887
Total acquired intangibles	$	4,468	$	(974	)	$	3,494	$	4,494	$	(697	)	$	3,797

Information on Business Segments (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Summary Of Financial Information For Each Business Segment

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



	2018		2017
Assets ^(a)
Aeronautics	$	8,435	$	7,713
Missiles and Fire Control	5,017		4,577
Rotary and Mission Systems	18,333		18,292
Space	5,445		5,240
Total business segment assets	37,230		35,822
Corporate assets ^(b)	7,646		10,798
Total assets	$	44,876	$	46,620


^(a)	We have no long-lived assets with material carrying values located in foreign countries.


^(b)	Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables and investments held in a separate trust.

Net sales by total products and services, contract type, customer category and geographic region for each of our business segments were as follows (in millions):



	2018
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	18,207	$	6,945	$	11,714	$	8,139	$	45,005
Services	3,035		1,517		2,536		1,669		8,757
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by contract type
Fixed-price	$	15,719	$	5,653	$	9,975	$	1,892	$	33,239
Cost-reimbursable	5,523		2,809		4,275		7,916		20,523
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by customer
U.S. Government	$	13,321	$	6,088	$	10,083	$	8,224	$	37,716
International ^(a)	7,735		2,190		3,693		1,538		15,156
U.S. commercial and other	186		184		474		46		890
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762
Net sales by geographic region
United States	$	13,507	$	6,272	$	10,557	$	8,270	$	38,606
Asia Pacific	3,335		427		1,433		85		5,280
Europe	2,837		321		829		1,416		5,403
Middle East	1,380		1,404		781		37		3,602
Other	183		38		650		—		871
Total net sales	$	21,242	$	8,462	$	14,250	$	9,808	$	53,762


^(a)	International sales include foreign military sales contracted through the U.S. Government, direct commercial sales with international governments and commercial and other sales to international customers.



	2017
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	16,981	$	5,940	$	11,398	$	8,183	$	42,502
Services	2,429		1,342		2,265		1,422		7,458
Total net sales	$	19,410	$	7,282	$	13,663	$	9,605	$	49,960
Net sales by contract type
Fixed-price	$	13,828	$	5,102	$	10,059	$	2,058	$	31,047
Cost-reimbursable	5,582		2,180		3,604		7,547		18,913
Total net sales	$	19,410	$	7,282	$	13,663	$	9,605	$	49,960
Net sales by customer
U.S. Government	$	12,609	$	4,467	$	9,715	$	8,088	$	34,879
International ^(a)	6,641		2,672		3,575		1,446		14,334
U.S. commercial and other	160		143		373		71		747
Total net sales	$	19,410	$	7,282	$	13,663	$	9,605	$	49,960
Net sales by geographic region
United States	$	12,769	$	4,610	$	10,088	$	8,159	$	35,626
Asia Pacific	2,823		516		1,344		92		4,775
Europe	2,331		305		927		1,270		4,833
Middle East	1,316		1,798		572		81		3,767
Other	171		53		732		3		959
Total net sales	$	19,410	$	7,282	$	13,663	$	9,605	$	49,960


^(a)	International sales include foreign military sales contracted through the U.S. Government, direct commercial sales with international governments and commercial and other sales to international customers.



	2016
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	15,066	$	5,602	$	11,401	$	8,012	$	40,081
Services	2,227		1,187		2,194		1,601		7,209
Total net sales	$	17,293	$	6,789	$	13,595	$	9,613	$	47,290
Net sales by contract type
Fixed-price	$	11,926	$	4,926	$	9,871	$	2,324	$	29,047
Cost-reimbursable	5,367		1,863		3,724		7,289		18,243
Total net sales	$	17,293	$	6,789	$	13,595	$	9,613	$	47,290
Net sales by customer
U.S. Government	$	11,265	$	4,304	$	9,350	$	8,516	$	33,435
International ^(a)	5,825		2,344		3,791		719		12,679
U.S. commercial and other	203		141		454		378		1,176
Total net sales	$	17,293	$	6,789	$	13,595	$	9,613	$	47,290
Net sales by geographic region
United States	$	11,468	$	4,445	$	9,804	$	8,894	$	34,611
Asia Pacific	2,077		341		1,194		98		3,710
Europe	2,020		237		1,045		475		3,777
Middle East	1,423		1,739		429		146		3,737
Other	305		27		1,123		—		1,455
Total net sales	$	17,293	$	6,789	$	13,595	$	9,613	$	47,290


^(a)	International sales include foreign military sales contracted through the U.S. Government, direct commercial sales with international governments and commercial and other sales to international customers.

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



	2018			2017			2016
Net sales
Aeronautics	$	21,242		$	19,410		$	17,293
Missiles and Fire Control	8,462			7,282			6,789
Rotary and Mission Systems	14,250			13,663			13,595
Space	9,808			9,605			9,613
Total net sales	$	53,762		$	49,960		$	47,290
Operating profit
Aeronautics	$	2,272		$	2,176		$	1,845
Missiles and Fire Control	1,248			1,034			1,004
Rotary and Mission Systems	1,302			902			845
Space ^(a)	1,055			980			1,288
Total business segment operating profit	5,877			5,092			4,982
Unallocated items
FAS/CAS operating adjustment ^(b)	1,803			1,613			1,250
Stock-based compensation	(173		)	(158		)	(149		)
Severance and restructuring charges ^(c)	(96		)	—			(80		)
Other, net ^(d)	(77		)	197			(115		)
Total unallocated, net	1,457			1,652			906
Total consolidated operating profit	$	7,334		$	6,744		$	5,888

^(a)


^(b)	The FAS/CAS operating adjustment represents the difference between the service cost component of FAS pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS. For a detail of the FAS/CAS operating adjustment and the total net FAS/CAS pension adjustment, see the table below.


^(c)	See “Note 15 – Severance and Restructuring Charges” for information on charges related to certain severance actions at our business segments. Severance and restructuring charges for initiatives that are not significant are included in business segment operating profit.

^(d)

Total net FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension expense, were as follows (in millions):



	2018			2017			2016
Total FAS expense and CAS costs
FAS pension expense	$	(1,431	)	$	(1,372	)	$	(1,019	)
Less: CAS pension cost	2,433			2,248			1,921
Net FAS/CAS pension adjustment	$	1,002		$	876		$	902

Service and non-service cost reconciliation
FAS pension service cost	(630		)	(635		)	(671		)
Less: CAS pension cost	2,433			2,248			1,921
FAS/CAS operating adjustment	1,803			1,613			1,250
Non-operating FAS pension expense ^(a)	(801		)	(737		)	(348		)
Net FAS/CAS pension adjustment	$	1,002		$	876		$	902

^(a)



	2018		2017		2016
Intersegment sales
Aeronautics	$	120	$	122	$	142
Missiles and Fire Control	423		355		299
Rotary and Mission Systems	2,026		2,020		1,854
Space	237		111		110
Total intersegment sales	$	2,806	$	2,608	$	2,405
Depreciation and amortization
Aeronautics	$	304	$	311	$	299
Missiles and Fire Control	105		99		105
Rotary and Mission Systems	458		468		476
Space	229		245		212
Total business segment depreciation and amortization	1,096		1,123		1,092
Corporate activities	65		72		75
Total depreciation and amortization ^(a)	$	1,161	$	1,195	$	1,167
Capital expenditures
Aeronautics	$	460	$	371	$	358
Missiles and Fire Control	244		156		167
Rotary and Mission Systems	255		308		271
Space	255		179		183
Total business segment capital expenditures	1,214		1,014		979
Corporate activities	64		163		75
Total capital expenditures ^(b)	$	1,278	$	1,177	$	1,054

^(a)


^(b)	Total capital expenditures in the table above excludes $9 million for the year ended December 31, 2016 related to the former IS&GS business segment. These amounts are included in capital expenditures in our consolidated statement of cash flows as we did not reclassify our cash flows to exclude the IS&GS business segment. See “Note 3 – Acquisition and Divestitures” for more information.

Total net FAS/CAS pension adjustments, including the service and non-service cost components of FAS pension expense, were as follows (in millions):



	2018			2017			2016
Total FAS expense and CAS costs
FAS pension expense	$	(1,431	)	$	(1,372	)	$	(1,019	)
Less: CAS pension cost	2,433			2,248			1,921
Net FAS/CAS pension adjustment	$	1,002		$	876		$	902

Service and non-service cost reconciliation
FAS pension service cost	(630		)	(635		)	(671		)
Less: CAS pension cost	2,433			2,248			1,921
FAS/CAS operating adjustment	1,803			1,613			1,250
Non-operating FAS pension expense ^(a)	(801		)	(737		)	(348		)
Net FAS/CAS pension adjustment	$	1,002		$	876		$	902

^(a)

Receivables, net, Contract Assets and Contract Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Receivables, Net, Contract Assets and Contract Liabilities

Receivables, net, contract assets and contract liabilities were as follows (in millions):



	2018		2017
Receivables, net	$	2,444	$	2,265
Contract assets	9,472		7,992
Contract liabilities	6,491		7,028

Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following (in millions):



	2018		2017
Materials, spares and supplies	$	446	$	563
Work-in-process	2,161		1,823
Finished goods	390		492
Total inventories	$	2,997	$	2,878

Property, Plant and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following (in millions):



	2018			2017
Land	$	135		$	131
Buildings	6,553			6,401
Machinery and equipment	7,871			7,624
Construction in progress	1,530			1,205
Total property, plant and equipment	16,089			15,361
Less: accumulated depreciation and amortization	(9,965		)	(9,586		)
Total property, plant and equipment, net	$	6,124		$	5,775

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Provision for Federal & Foreign Income Tax Expense

Our provision for federal and foreign income tax expense for continuing operations consisted of the following (in millions):



	2018			2017			2016
Federal income tax expense (benefit):
Current
Operations	$	975		$	(189	)	$	1,327
One-time charge due to tax legislation ^(a)	(6		)	43			—
Deferred
Operations	(194		)	1,607			(261		)
One-time charge due to tax legislation ^(a)	(37		)	1,843			—
Total federal income tax expense	738			3,304			1,066
Foreign income tax expense (benefit):
Current	67			53			56
Deferred	(13		)	(1		)	(29		)
Total foreign income tax expense	54			52			27
Total income tax expense	$	792		$	3,356		$	1,093


^(a)	Represents one-time charge in 2017 primarily due to the re-measurement of certain net deferred tax assets using the lower U.S. corporate income tax rate and a deemed repatriation tax, and true-up to this charge in 2018.

Reconciliation of Income Tax Expense Computed Using U.S. Statutory Federal Tax Rate to Actual Income Tax Expense

Our reconciliation of the U.S. federal statutory income tax rate (21% in 2018 and 35% in 2017 and 2016) to actual income tax expense for continuing operations is as follows (dollars in millions):



	2018					2017					2016
	Amount			Rate		Amount			Rate		Amount			Rate
Income tax expense at the U.S. federal statutory tax rate	$	1,226		21.0	%	$	1,836		35.0	%	$	1,664		35.0	%
Research and development tax credit	(138		)	(2.4	)	(115		)	(2.2	)	(107		)	(2.2	)
Foreign derived intangible income deduction	(61		)	(1.0	)	—			—		—			—
Tax deductible dividends	(59		)	(1.0	)	(94		)	(1.8	)	(92		)	(1.9	)
Excess tax benefits for share-based payment awards	(55		)	(0.9	)	(106		)	(2.0	)	(152		)	(3.2	)
Deferred tax write-down and transition tax ^(a)	(43		)	(0.7	)	1,886			35.9		—			—
U.S. manufacturing deduction benefit ^(b)	—			—		(7		)	(0.1	)	(117		)	(2.5	)
Tax accounting method change ^(c)	(61		)	(1.0	)	—			—		—			—
Other, net	(17		)	(0.4	)	(44		)	(0.8	)	(103		)	(2.2	)
Income tax expense	$	792		13.6	%	$	3,356		64.0	%	$	1,093		23.0	%


^(a)	Includes a deferred tax re-measurement and transition tax true-up in 2018 and one-time charge in 2017 primarily due to the re-measurement of certain net deferred tax assets using the lower U.S. corporate income tax rate and a deemed repatriation tax.


^(b)	Includes a reduction in our 2017 manufacturing benefit as a result of our decision to accelerate contributions to our pension funds in 2018. The Tax Act repealed the manufacturing benefit for years after 2017.


^(c)	Recognized tax benefit of $61 million in 2018 from our change in a tax accounting method related to restoration of tax basis.

Components of Federal and Foreign Deferred Tax Assets and Liabilities

The primary components of our federal and foreign deferred income tax assets and liabilities at December 31 were as follows (in millions):



	2018			2017^(a)
Deferred tax assets related to:
Accrued compensation and benefits	$	584		$	595
Pensions ^(b)	2,623			2,495
Other postretirement benefit obligations	148			153
Contract accounting methods	539			531
Foreign company operating losses and credits	38			27
Other	160			154
Valuation allowance ^(c)	(20		)	(20		)
Deferred tax assets, net	4,072			3,935
Deferred tax liabilities related to:
Goodwill and purchased intangibles	296			266
Property, plant and equipment	296			239
Exchanged debt securities and other	294			303
Deferred tax liabilities	886			808
Net deferred tax assets	$	3,186		$	3,127


^(a)	Components of our federal and foreign deferred income tax assets and liabilities at December 31, 2017 after taking into account the estimated impacts of the Tax Act and related items.


^(b)	The increase in 2018 is primarily due to lower tax deductions for pension contributions resulting from our 2017 decision to accelerate pension contributions to our pension fund in order to receive a deduction in 2017.


^(c)	A valuation allowance was provided against certain foreign company deferred tax assets arising from carryforwards of unused tax benefits.

Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Long-term Debt

Our total debt consisted of the following (in millions):



	2018			2017
Notes
1.85% due 2018	$	—		$	750
4.25% due 2019	900			900
2.50% due 2020	1,250			1,250
3.35% due 2021	900			900
3.10% due 2023	500			500
2.90% due 2025	750			750
3.55% due 2026	2,000			2,000
3.60% due 2035	500			500
4.50% and 6.15% due 2036	1,054			1,054
4.07% due 2042	1,336			1,336
3.80% due 2045	1,000			1,000
4.70% due 2046	1,326			1,326
4.09% due 2052	1,578			1,578
Other notes with rates from 4.85% to 8.50%, due 2023 to 2041	1,618			1,654
Commercial paper	600			—
Total debt	15,312			15,498
Less: unamortized discounts and issuance costs	(1,208		)	(1,235		)
Total debt, net	14,104			14,263
Less: current portion	(1,500		)	(750		)
Long-term debt, net	$	12,604		$	13,513

Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Schedule Of Net Periodic Benefit Costs

The net periodic benefit cost recognized each year included the following (in millions):



	Qualified Defined Benefit Pension Plans ^(a)									Retiree Medical and Life Insurance Plans
	2018			2017			2016			2018			2017			2016
Service cost	$	630		$	635		$	671		$	19		$	19		$	23
Interest cost	1,740			1,835			1,890			91			103			120
Expected return on plan assets	(2,395		)	(2,249		)	(2,539		)	(135		)	(128		)	(138		)
Recognized net actuarial losses	1,777			1,506			1,359			5			19			34
Amortization of net prior service (credit) cost ^(b)	(321		)	(355		)	(362		)	15			15			22
Total net periodic benefit cost	$	1,431		$	1,372		$	1,019		$	(5	)	$	28		$	61

^(a)


^(b)	Net of the reclassification for discontinued operations presentation of pension benefits related to former IS&GS salaried employees ($14 million in 2016).

Reconciliation of Benefit Obligations, Plan Assets, and Unfunded or Funded Status



	Qualified Defined Benefit Pension Plans						Retiree Medical and Life Insurance Plans
	2018			2017			2018			2017
Change in benefit obligation
Beginning balance	$	48,686		$	45,064		$	2,602		$	2,649
Service cost	630			635			19			19
Interest cost	1,740			1,835			91			103
Benefits paid	(2,379		)	(2,310		)	(224		)	(232		)
Settlements	(1,821		)	—			—			—
Actuarial losses (gains)	(3,281		)	3,536			(311		)	23
Changes in longevity assumptions ^(a)	(162		)	(352		)	(8		)	(24		)
Plan amendments and curtailments ^(b)	(108		)	278			101			—
Medicare Part D subsidy	—			—			9			—
Participants’ contributions	—			—			69			64
Ending balance	$	43,305		$	48,686		$	2,348		$	2,602
Change in plan assets
Beginning balance at fair value	$	33,095		$	31,417		$	1,883		$	1,787
Actual return on plan assets	(1,893		)	3,942			(94		)	224
Benefits paid	(2,379		)	(2,310		)	(224		)	(232		)
Settlements	(1,821		)	—			—			—
Company contributions	5,000			46			1			40
Medicare Part D subsidy	—			—			9			—
Participants’ contributions	—			—			69			64
Ending balance at fair value	$	32,002		$	33,095		$	1,644		$	1,883
Unfunded status of the plans	$	(11,303	)	$	(15,591	)	$	(704	)	$	(719	)


^(a)	As published by the Society of Actuaries


^(b)	The 2018 qualified defined benefit pension plan includes a $119 million curtailment gain.

Amounts Recognized on Balance Sheets Related to Qualified Defined Benefit Pension Plans and Retiree Medical and Life Insurance Plans



	Qualified Defined Benefit Pension Plans						Retiree Medical and Life Insurance Plans
	2018			2017			2018			2017
Prepaid pension asset	$	107		$	112		$	—		$	—
Accrued postretirement benefit liabilities	(11,410		)	(15,703		)	(704		)	(719		)
Accumulated other comprehensive loss (pre-tax) related to:
Net actuarial losses	19,117			20,169			236			331
Prior service (credit) cost	(1,931		)	(2,263		)	167			81
Total ^(a)	$	17,186		$	17,906		$	403		$	412

^(a)

Accumulated Benefit Obligations In Excess Of Fair Value Of Plan Assets

Certain key information related to our qualified defined benefit pension plans as of December 31, 2018 and 2017 is as follows (in millions):



	2018 ^(a)			2017
Plans where ABO was in excess of plan assets
Projected benefit obligation	$	42,444		$	48,628
Less: fair value of plan assets	31,034			32,925
Unfunded status of plans ^(b)	(11,410		)	(15,703		)
Plans where ABO was less than plan assets
Projected benefit obligation	51			58
Less: fair value of plan assets	158			170
Funded status of plans ^(c)	$	107		$	112


^(a)	Benefit obligation and plan assets in the table above exclude $810 million for one pension plan with plan assets valued equal to the benefit obligation.


^(b)	Represents accrued pension liabilities, which are included on our consolidated balance sheets.


^(c)	Represents prepaid pension assets, which are included on our consolidated balance sheets in other noncurrent assets.

Amounts Recognized in Other Comprehensive Income (Loss) Related to Postretirement Benefit Plans, Net of Tax



	Incurred but Not Yet Recognized in Net Periodic Benefit Cost									Recognition of Previously Deferred Amounts
	2018			2017			2016			2018			2017			2016
	Gains (losses)									(Gains) losses
Actuarial gains and losses
Qualified defined benefit pension plans	$	(570	)	$	(1,172	)	$	(1,236	)	$	1,396		$	974		$	879
Retiree medical and life insurance plans	71			77			94			4			12			22
Other plans	83			(66		)	(62		)	55			44			37
	(416		)	(1,161		)	(1,204		)	1,455			1,030			938
	Credit (cost)									(Credit) cost ^(a)
Net prior service credit and cost
Qualified defined benefit pension plans	(6		)	(219		)	(54		)	(255		)	(229		)	(235		)
Retiree medical and life insurance plans	(79		)	—			27			12			10			14
Other plans	—			—			(1		)	(10		)	(9		)	(9		)
	(85		)	(219		)	(28		)	(253		)	(228		)	(230		)
	$	(501	)	$	(1,380	)	$	(1,232	)	$	1,202		$	802		$	708


^(a)	Reflects the reclassification for discontinued operations presentation of benefits related to former IS&GS salaried employees ($9 million in 2016). In addition, we recognized $134 million in 2016 of prior service credits from the divestiture of our IS&GS business, which were reclassified as discontinued operations.

Actuarial Assumptions Used to Determine Net Periodic Benefit Cost

The actuarial assumptions used to determine the benefit obligations at December 31 of each year and to determine the net periodic benefit cost for each subsequent year, were as follows:



	Qualified Defined Benefit Pension Plans						Retiree Medical and Life Insurance Plans
	2018		2017		2016		2018		2017		2016
Weighted average discount rate	4.250	%	3.625	%	4.125	%	4.250	%	3.625	%	4.000	%
Expected long-term rate of return on assets	7.00	%	7.50	%	7.50	%	7.00	%	7.50	%	7.50	%
Rate of increase in future compensation levels (for applicable bargained pension plans)	4.50	%	4.50	%	4.50	%
Health care trend rate assumed for next year							8.25	%	8.50	%	8.75	%
Ultimate health care trend rate							5.00	%	5.00	%	5.00	%
Year that the ultimate health care trend rate is reached							2032		2032		2032

Schedule of Allocation of Plan Assets

LMIMCo’s investment policies require that asset allocations of postretirement benefit plans be maintained within the following approximate ranges:



Asset Class	Asset Allocation Ranges
Cash and cash equivalents	0-20%
Equity	15-65%
Fixed income	10-60%
Alternative investments:
Private equity funds	0-15%
Real estate funds	0-10%
Hedge funds	0-20%
Commodities	0-15%

The following table presents the fair value of the assets (in millions) of our qualified defined benefit pension plans and retiree medical and life insurance plans by asset category and their level within the fair value hierarchy, which has three levels based on the uncertainty of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets, Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. Certain other investments are measured at their Net Asset Value (NAV) per share and do not have readily determined values and are thus not subject to leveling in the fair value hierarchy. The NAV is the total value of the fund divided by the number of the fund’s shares outstanding. We recognize transfers between levels of the fair value hierarchy as of the date of the change in circumstances that causes the transfer.



	December 31, 2018								December 31, 2017
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Investments measured at fair value
Cash and cash equivalents ^(a)	$	1,727	$	1,727	$	—	$	—	$	1,419	$	1,419	$	—	$	—
Equity ^(a):
U.S. equity securities	3,936		3,927		3		6		4,922		4,905		14		3
International equity securities	5,406		5,400		—		6		5,370		5,355		13		2
Commingled equity funds	3,587		1,436		2,151		—		4,453		1,493		2,960		—
Fixed income ^(a):
Corporate debt securities	4,890		—		4,888		2		4,910		—		4,905		5
U.S. Government securities	3,399		—		3,399		—		3,775		—		3,775		—
U.S. Government-sponsored enterprise securities	571		—		571		—		817		—		817		—
Other fixed income investments ^(b)	2,926		—		1,988		938		2,414		—		2,403		11
Total	$	26,442	$	12,490	$	13,000	$	952	$	28,080	$	13,172	$	14,887	$	21
Investments measured at NAV ^(c)
Commingled equity funds	144								99
Other fixed income investments	29								68
Private equity funds	4,014								4,334
Real estate funds	2,117								1,611
Hedge funds	828								718
Total investments measured at NAV	7,132								6,830
Receivables, net	72								68
Total	$	33,646							$	34,978

^(a)


^(b)	Level 3 investments include $810 million related to the buy-in contract discussed above.


^(c)	Certain investments that are valued using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy and are included in the table to permit reconciliation of the fair value hierarchy to the aggregate postretirement benefit plan assets.

Estimated Future Benefit Payments

The following table presents estimated future benefit payments, which reflect expected future employee service, as of December 31, 2018 (in millions):



	2019		2020		2021		2022		2023		2024 – 2028
Qualified defined benefit pension plans	$	2,350	$	2,390	$	2,470	$	2,550	$	2,610	$	13,670
Retiree medical and life insurance plans	170		180		180		180		170		810

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Changes in Balance of Accumulated Other Comprehensive Loss, Net of Income Taxes

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



	Postretirement Benefit Plans ^(a)			Other, net			AOCL
Balance at December 31, 2015	$	(11,314	)	$	(130	)	$	(11,444	)
Other comprehensive loss before reclassifications	(1,232		)	—			(1,232		)
Amounts reclassified from AOCL
Recognition of net actuarial losses	938			—			938
Amortization of net prior service credits	(239		)	—			(239		)
Recognition of net prior service credits from divestiture of IS&GS segment ^(b)	(134		)	—			(134		)
Other	—			9			9
Total reclassified from AOCL	565			9			574
Total other comprehensive (loss) income	(667		)	9			(658		)
Balance at December 31, 2016	(11,981		)	(121		)	(12,102		)
Other comprehensive (loss) income before reclassifications	(1,380		)	120			(1,260		)
Amounts reclassified from AOCL
Recognition of net actuarial losses	1,030			—			1,030
Amortization of net prior service credits	(228		)	—			(228		)
Other	—			21			21
Total reclassified from AOCL	802			21			823
Total other comprehensive (loss) income	(578		)	141			(437		)
Balance at December 31, 2017	(12,559		)	20			(12,539		)
Other comprehensive loss before reclassifications	(501		)	(105		)	(606		)
Amounts reclassified from AOCL
Recognition of net actuarial losses	1,455			—			1,455
Amortization of net prior service credits	(253		)	—			(253		)
Other	—			30			30
Total reclassified from AOCL	1,202			30			1,232
Total other comprehensive income (loss)	701			(75		)	626
Reclassification of income tax effects from tax reform ^(c)	(2,396		)	(12		)	(2,408		)
Balance at December 31, 2018	$	(14,254	)	$	(67	)	$	(14,321	)

^(a)


^(b)	Associated with the 2016 divestiture of the IS&GS business and included in net gain on divestiture of discontinued operations.


^(c)	During 2018, we reclassified the impact of the income tax effects related to the Tax Cuts and Jobs Act of 2017 (the Tax Act) from AOCL to retained earnings by the same amount with zero impact to total equity. See “Note 1 – Significant Accounting Policies” for more information on the adoption of Income Statement - Reporting Comprehensive Income.

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Based Compensation Activity Related to Nonvested RSUs

The following table summarizes activity related to nonvested RSUs:



	Number of RSUs (In thousands)		Weighted Average Grant-Date Fair Value Per Share
Nonvested at December 31, 2015	1,236		$	134.87
Granted	679		206.69
Vested	(1,009	)	137.62
Forfeited	(118	)	203.65
Nonvested at December 31, 2016	788		$	183.00
Granted	519		254.58
Vested	(624	)	201.65
Forfeited	(32	)	223.23
Nonvested at December 31, 2017	651		$	220.21
Granted	406		353.99
Vested	(470	)	271.50
Forfeited	(24	)	282.07
Nonvested at December 31, 2018	563		$	271.23

Stock Options

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis

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



	December 31, 2018						December 31, 2017
	Total		Level 1		Level 2		Total		Level 1		Level 2
Assets
Mutual funds	$	978	$	978	$	—	$	917	$	917	$	—
U.S. Government securities	105		—		105		116		—		116
Other securities	144		28		116		209		39		170
Derivatives	22		—		22		23		—		23
Liabilities
Derivatives	61		—		61		106		—		106
Assets measured at NAV
Other commingled funds	18						19

Summary of Quarterly Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Information

A summary of quarterly information is as follows (in millions, except per share data):



	2018 Quarters
	First		Second^(b)		Third		Fourth ^(c)
Net sales	$	11,635	$	13,398	$	14,318	$	14,411
Operating profit	1,725		1,795		1,963		1,851
Net earnings	1,157		1,163		1,473		1,253
Basic earnings per common share ^(a)	4.05		4.08		5.18		4.43
Diluted earnings per common share ^(a)	4.02		4.05		5.14		4.39

	2017 Quarters
	First^(d)		Second		Third		Fourth^(e)(f)
Net sales	$	11,212	$	12,563	$	12,341	$	13,844
Operating profit	1,402		1,716		1,677		1,949
Net earnings (loss) from continuing operations	789		955		963		(817		)
Net earnings from discontinued operations	—		—		—		73
Net earnings (loss)	789		955		963		(744		)
Earnings (loss) per common share from continuing operations ^(a):
Basic	2.72		3.31		3.35		(2.85		)
Diluted	2.69		3.28		3.32		(2.85		)
Earnings per common share from discontinued operations:
Basic	—		—		—		0.25
Diluted	—		—		—		0.25
Basic earnings (loss) per common share ^(a)	2.72		3.31		3.35		(2.60		)
Diluted earnings (loss) per common share ^(a)	2.69		3.28		3.32		(2.60		)

^(a)


^(b)	The second quarter of 2018 includes a $96 million ($76 million or $0.26 per share, after tax) severance and restructuring charge (see “Note 15 – Severance and Restructuring Charges”).


^(c)	The fourth quarter of 2018 includes a non-cash asset impairment charge of $110 million ($83 million, or $0.29 per share, after tax) related to our equity method investee, AMMROC (see “Note 1 – Significant Accounting Policies”).


^(d)	The first quarter of 2017 includes a $120 million ($74 million or $0.25 per share, after tax) charge on our EADGE-T program and a $64 million ($40 million or $0.14 per share, after tax) charge, which represents our portion of a non-cash asset impairment charge recorded by our equity method investee, AMMROC (see “Note 1 – Significant Accounting Policies”).

^(e)


^(f)	The fourth quarter of 2017 includes a net gain of $73 million, reported in net earnings from discontinued operations, related to the 2016 divestiture of our former IS&GS business.

Significant Accounting Policies - Additional Information (Detail)	3 Months Ended		8 Months Ended	12 Months Ended			28 Months Ended
	Dec. 31, 2018 USD ($) program $ / shares	Mar. 26, 2017 USD ($) $ / shares	Aug. 23, 2016	Dec. 31, 2018 USD ($) contract program $ / shares	Dec. 31, 2017 USD ($) $ / shares	Dec. 31, 2016 USD ($) $ / shares	Dec. 31, 2018 USD ($) program	Aug. 24, 2016	Aug. 16, 2016
Significant Accounting Policies [Line Items]
Number of contract types \| contract				3
Ending backlog	$ 130,500,000,000			$ 130,500,000,000			$ 130,500,000,000
Performance obligation satisfied in previous period				2,000,000,000	$ 1,800,000,000	$ 1,400,000,000
Independent research and development costs charged to cost of sales				$ 1,300,000,000	1,200,000,000	988,000,000
Weighted average remaining contractual life, vested				3 years
Financing receivable, significant sales				$ 532,000,000	698,000,000
Gain (loss) on sale of accounts receivable				0	0
Depreciation				759,000,000	760,000,000	747,000,000
Capitalized internal-use software, net	447,000,000			447,000,000	424,000,000		447,000,000
Capitalized internal-use software accumulated amortization	2,100,000,000			2,100,000,000	2,000,000,000		2,100,000,000
Goodwill	10,769,000,000			$ 10,769,000,000	10,807,000,000	10,764,000,000	10,769,000,000
Percentage of gains and losses recognition to the extent exciding greater of plan assets or obligations				10.00%
Average future service period of employees expected to receive benefits under the plans				9 years
Time period environmental costs and recovery of environmental costs are projected over, years				20 years
Fair value of trading securities	1,300,000,000			$ 1,300,000,000	1,400,000,000		1,300,000,000
Net gains (losses) on marketable securities				(67,000,000)	150,000,000	66,000,000
Total equity method investments	1,200,000,000			1,200,000,000	1,400,000,000		1,200,000,000
Net earnings from equity method investments				119,000,000	207,000,000	443,000,000
Contracts Accounted for under Percentage of Completion
Significant Accounting Policies [Line Items]
Increase in operating profit due to profit rate adjustments				1,900,000,000	1,600,000,000	1,400,000,000
Increase in net earnings due to profit rate adjustments				$ 1,500,000,000	$ 1,100,000,000	$ 910,000,000
Increase in diluted earnings per common share due to profit rate (in dollars per share) \| $ / shares				$ 5.23	$ 3.79	$ 3.00
Minimum
Significant Accounting Policies [Line Items]
Acquired finite-lived intangible assets are amortized				3 years
Minimum \| Customer programs
Significant Accounting Policies [Line Items]
Acquired finite-lived intangible assets are amortized				9 years
Maximum
Significant Accounting Policies [Line Items]
Acquired finite-lived intangible assets are amortized				20 years
Maximum \| Customer programs
Significant Accounting Policies [Line Items]
Acquired finite-lived intangible assets are amortized				20 years
Designated as hedges \| Interest rate swaps
Significant Accounting Policies [Line Items]
Aggregate notional amount of derivatives	1,300,000,000			$ 1,300,000,000	$ 1,200,000,000		1,300,000,000
Designated as hedges \| Foreign currency contracts
Significant Accounting Policies [Line Items]
Aggregate notional amount of derivatives	$ 3,500,000,000			$ 3,500,000,000	4,100,000,000		$ 3,500,000,000
Space
Significant Accounting Policies [Line Items]
Number of commercial satellite programs with performance issues \| program	2			2			2
Goodwill	$ 1,585,000,000			$ 1,585,000,000	1,587,000,000	$ 1,585,000,000	$ 1,585,000,000
Net earnings from equity method investments				$ 210,000,000	205,000,000	325,000,000
Buildings \| Minimum
Significant Accounting Policies [Line Items]
Property, plant and equipment, estimated life (years)				10 years
Buildings \| Maximum
Significant Accounting Policies [Line Items]
Property, plant and equipment, estimated life (years)				40 years
Machinery and equipment \| Minimum
Significant Accounting Policies [Line Items]
Property, plant and equipment, estimated life (years)				5 years
Machinery and equipment \| Maximum
Significant Accounting Policies [Line Items]
Property, plant and equipment, estimated life (years)				15 years
Capitalized Software
Significant Accounting Policies [Line Items]
Capitalized internal-use software amortization				$ 106,000,000	123,000,000	$ 136,000,000
Capitalized Software \| Minimum
Significant Accounting Policies [Line Items]
Property, plant and equipment, estimated life (years)				2 years
Capitalized Software \| Maximum
Significant Accounting Policies [Line Items]
Property, plant and equipment, estimated life (years)				6 years
AWE Management Limited
Significant Accounting Policies [Line Items]
Ownership interest percentage owned immediately before acquisition								33.00%	33.00%
Ownership interest percentage owned subsequent acquisition								51.00%
Segment Concentration Risk \| Net Sales \| AWE Management Limited \| Space
Significant Accounting Policies [Line Items]
Concentration percentage				100.00%			100.00%
Segment Concentration Risk \| Operating profit \| AWE Management Limited \| Space
Significant Accounting Policies [Line Items]
Concentration percentage				51.00%		51.00%	51.00%
Equity Method Investment Risk \| Net Sales \| AWE Management Limited \| Space
Significant Accounting Policies [Line Items]
Concentration percentage			0.00%
Equity Method Investment Risk \| Net Earnings \| AWE Management Limited \| Space
Significant Accounting Policies [Line Items]
Concentration percentage			33.00%
EADGE-T
Significant Accounting Policies [Line Items]
Contract loss incurred, gross		$ 120,000,000
Contract loss incurred, after tax		$ 74,000,000
Contract loss incurred, after tax (in dollars per share) \| $ / shares		$ 0.25
Commercial satellite cumulative losses on development	260,000,000			$ 260,000,000	$ 260,000,000		$ 260,000,000
LM2100
Significant Accounting Policies [Line Items]
Contract loss incurred, gross				75,000,000
Contract loss incurred, after tax				$ 56,000,000
Contract loss incurred, after tax (in dollars per share) \| $ / shares				$ 0.20
Commercial satellite cumulative losses on development	380,000,000			$ 380,000,000			380,000,000
Warrior Capability Sustainment Program
Significant Accounting Policies [Line Items]
Contract loss incurred, gross				85,000,000
Contract loss incurred, after tax				$ 64,000,000
Contract loss incurred, after tax (in dollars per share) \| $ / shares				$ 0.22
Commercial satellite cumulative losses on development	$ 140,000,000			$ 140,000,000			$ 140,000,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	38.00%			38.00%			38.00%
Expected time of satisfaction	12 months			12 months			12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	66.00%			66.00%			66.00%
Expected time of satisfaction	12 months			12 months			12 months
AMMROC
Significant Accounting Policies [Line Items]
Equity method investee impairment	$ 110,000,000	$ 64,000,000
Increase in net earnings due to profit rate adjustments	$ 83,000,000	$ 40,000,000
Increase in diluted earnings per common share due to profit rate adjustments (in dollars per share) \| $ / shares	$ 0.29	$ 0.14

Significant Accounting Policies - Schedule of Effect of Adoption of New Accounting Pronouncement on Statement of Income (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Comprehensive income									$ 5,672	$ 1,526	$ 4,515
Total net sales	$ 14,411	$ 14,318	$ 13,398	$ 11,635	$ 13,844	$ 12,341	$ 12,563	$ 11,212	53,762	49,960	47,290
Total cost of sales									(46,488)	(43,589)	(41,889)
Severance charges									96	0	80
Gross profit									7,274	6,371	5,401
Other income, net									60	373	487
Operating profit	1,851	1,963	1,795	1,725	1,949	1,677	1,716	1,402	7,334	6,744	5,888
Interest expense									(668)	(651)	(663)
Other non-operating expense, net									(828)	(847)	(471)
Earnings from continuing operations before income taxes									5,838	5,246	4,754
Income tax expense									(792)	(3,356)	(1,093)
Net earnings from continuing operations					(817)	963	955	789	5,046	1,890	3,661
Net earnings from discontinued operations					73	0	0	0	0	73	1,512
Net earnings	$ 1,253	$ 1,473	$ 1,163	$ 1,157	$ (744)	$ 963	$ 955	$ 789	$ 5,046	$ 1,963	$ 5,173
Basic
Continuing operations (in dollars per share)					$ (2.85)	$ 3.35	$ 3.31	$ 2.72	$ 17.74	$ 6.56	$ 12.23
Discontinued operations (in dollars per share)					0.25	0.00	0.00	0.00	0.00	0.26	5.05
Basic earnings per common share (in dollars per share)	$ 4.43	$ 5.18	$ 4.08	$ 4.05	(2.60)	3.35	3.31	2.72	17.74	6.82	17.28
Diluted
Continuing operations (in dollars per share)					(2.85)	3.32	3.28	2.69	17.59	6.50	12.08
Discontinued operations (in dollars per share)					0.25	0.00	0.00	0.00	0.00	0.25	4.99
Diluted earnings per common share (in dollars per share)	$ 4.39	$ 5.14	$ 4.05	$ 4.02	$ (2.60)	$ 3.32	$ 3.28	$ 2.69	$ 17.59	$ 6.75	$ 17.07
Products
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales									$ 45,005	$ 42,502	$ 40,081
Total cost of sales									(40,293)	(38,417)	(36,394)
Services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales									8,757	7,458	7,209
Total cost of sales									(7,738)	(6,673)	(6,423)
Other unallocated, net
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total cost of sales									$ 1,639	1,501	1,008
Historical
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales										51,048	47,248
Total cost of sales										(45,500)	(42,186)
Gross profit										5,548	5,062
Other income, net										373	487
Operating profit										5,921	5,549
Interest expense										(651)	(663)
Other non-operating expense, net										(1)	0
Earnings from continuing operations before income taxes										5,269	4,886
Income tax expense										(3,340)	(1,133)
Net earnings from continuing operations										1,929	3,753
Net earnings from discontinued operations										73	1,549
Net earnings										$ 2,002	$ 5,302
Basic
Continuing operations (in dollars per share)										$ 6.70	$ 12.54
Discontinued operations (in dollars per share)										0.26	5.17
Basic earnings per common share (in dollars per share)										6.96	17.71
Diluted
Continuing operations (in dollars per share)										6.64	12.38
Discontinued operations (in dollars per share)										0.25	5.11
Diluted earnings per common share (in dollars per share)										$ 6.89	$ 17.49
Historical \| Products
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales										$ 43,875	$ 40,365
Total cost of sales										(39,750)	(36,616)
Historical \| Services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales										7,173	6,883
Total cost of sales										(6,405)	(6,040)
Severance charges											80
Historical \| Other unallocated, net
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total cost of sales										655	550
ASC 606 \| Adjustments for
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Comprehensive income										38
Total net sales										(1,088)	42
Total cost of sales										1,065	(174)
Gross profit										(23)	(132)
Other income, net										0	0
Operating profit										(23)	(132)
Interest expense										0	0
Other non-operating expense, net										0	0
Earnings from continuing operations before income taxes										(23)	(132)
Income tax expense										(16)	40
Net earnings from continuing operations										(39)	(92)
Net earnings from discontinued operations										0	(37)
Net earnings										$ (39)	$ (129)
Basic
Continuing operations (in dollars per share)										$ (0.14)	$ (0.31)
Discontinued operations (in dollars per share)										0.00	(0.12)
Basic earnings per common share (in dollars per share)										(0.14)	(0.43)
Diluted
Continuing operations (in dollars per share)										(0.14)	(0.30)
Discontinued operations (in dollars per share)										0.00	(0.12)
Diluted earnings per common share (in dollars per share)										$ (0.14)	$ (0.42)
ASC 606 \| Adjustments for \| Products
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales										$ (1,373)	$ (284)
Total cost of sales										1,333	222
ASC 606 \| Adjustments for \| Services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales										285	326
Total cost of sales										(268)	(383)
Severance charges											0
ASC 606 \| Adjustments for \| Other unallocated, net
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total cost of sales										0	(13)
ASU 2017-07 \| Adjustments for
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales										0	0
Total cost of sales										846	471
Gross profit										846	471
Other income, net										0	0
Operating profit										846	471
Interest expense										0	0
Other non-operating expense, net										(846)	(471)
Earnings from continuing operations before income taxes										0	0
Income tax expense										0	0
Net earnings from continuing operations										0	0
Net earnings from discontinued operations										0	0
Net earnings										$ 0	$ 0
Basic
Continuing operations (in dollars per share)										$ 0.00	$ 0.00
Discontinued operations (in dollars per share)										0.00	0.00
Basic earnings per common share (in dollars per share)										0.00	0.00
Diluted
Continuing operations (in dollars per share)										0.00	0.00
Discontinued operations (in dollars per share)										0.00	0.00
Diluted earnings per common share (in dollars per share)										$ 0.00	$ 0.00
ASU 2017-07 \| Adjustments for \| Products
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales										$ 0	$ 0
Total cost of sales										0	0
ASU 2017-07 \| Adjustments for \| Services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total net sales										0	0
Total cost of sales										0	0
Severance charges											0
ASU 2017-07 \| Adjustments for \| Other unallocated, net
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total cost of sales										$ 846	$ 471

Significant Accounting Policies - Schedule of Effect of Adoption of ASU 606 on Balance Sheets (Details) - USD ($)	Dec. 31, 2018	Sep. 27, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents	$ 772,000,000		$ 2,861,000,000	$ 1,837,000,000	$ 1,090,000,000
Receivables, net	2,444,000,000		2,265,000,000
Contract assets	9,472,000,000		7,992,000,000
Inventories	2,997,000,000		2,878,000,000
Other current assets	418,000,000		1,509,000,000
Total current assets	16,103,000,000		17,505,000,000
Property, plant and equipment, net	6,124,000,000		5,775,000,000
Goodwill	10,769,000,000		10,807,000,000	10,764,000,000
Intangible assets, net	3,494,000,000		3,797,000,000
Deferred income taxes	3,208,000,000		3,156,000,000
Other noncurrent assets	5,178,000,000		5,580,000,000
Total assets	44,876,000,000		46,620,000,000
Accounts payable	2,402,000,000		1,467,000,000
Contract liabilities	6,491,000,000		7,028,000,000
Salaries, benefits and payroll taxes	2,122,000,000		1,785,000,000
Current maturities of long-term debt	1,500,000,000		750,000,000
Other current liabilities	1,883,000,000		1,883,000,000
Total current liabilities	14,398,000,000		12,913,000,000
Long-term debt, net	12,604,000,000		13,513,000,000
Accrued pension liabilities	11,410,000,000		15,703,000,000
Other postretirement benefit liabilities	704,000,000		719,000,000
Other noncurrent liabilities	4,311,000,000		4,548,000,000
Total liabilities	43,427,000,000		47,396,000,000
Common stock, $1 par value per share	$ 281,000,000		$ 284,000,000
Common stock, par value (in USD per share)	$ 1		$ 1
Additional paid-in capital	$ 0	$ 0	$ 0
Retained earnings	15,434,000,000		11,405,000,000
Accumulated other comprehensive loss	(14,321,000,000)		(12,539,000,000)
Total stockholders’ equity (deficit)	1,394,000,000		(850,000,000)
Noncontrolling interests in subsidiary	55,000,000		74,000,000
Total equity (deficit)	1,449,000,000		(776,000,000)	$ 1,477,000,000	$ 3,097,000,000
Total liabilities and equity	$ 44,876,000,000		46,620,000,000
Historical
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents			2,861,000,000
Receivables, net			8,603,000,000
Contract assets			0
Inventories			4,487,000,000
Other current assets			1,510,000,000
Total current assets			17,461,000,000
Property, plant and equipment, net			5,775,000,000
Goodwill			10,807,000,000
Intangible assets, net			3,797,000,000
Deferred income taxes			3,111,000,000
Other noncurrent assets			5,570,000,000
Total assets			46,521,000,000
Accounts payable			1,467,000,000
Contract liabilities			6,752,000,000
Salaries, benefits and payroll taxes			1,785,000,000
Current maturities of long-term debt			750,000,000
Other current liabilities			1,883,000,000
Total current liabilities			12,637,000,000
Long-term debt, net			13,513,000,000
Accrued pension liabilities			15,703,000,000
Other postretirement benefit liabilities			719,000,000
Other noncurrent liabilities			4,558,000,000
Total liabilities			47,130,000,000
Common stock, $1 par value per share			284,000,000
Additional paid-in capital			0
Retained earnings			11,573,000,000
Accumulated other comprehensive loss			(12,540,000,000)
Total stockholders’ equity (deficit)			(683,000,000)
Noncontrolling interests in subsidiary			74,000,000
Total equity (deficit)			(609,000,000)
Total liabilities and equity			46,521,000,000
ASC 606 \| Adjustments for
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents			0
Receivables, net			(6,338,000,000)
Contract assets			7,992,000,000
Inventories			(1,609,000,000)
Other current assets			(1,000,000)
Total current assets			44,000,000
Property, plant and equipment, net			0
Goodwill			0
Intangible assets, net			0
Deferred income taxes			45,000,000
Other noncurrent assets			10,000,000
Total assets			99,000,000
Accounts payable			0
Contract liabilities			276,000,000
Salaries, benefits and payroll taxes			0
Current maturities of long-term debt			0
Other current liabilities			0
Total current liabilities			276,000,000
Long-term debt, net			0
Accrued pension liabilities			0
Other postretirement benefit liabilities			0
Other noncurrent liabilities			(10,000,000)
Total liabilities			266,000,000
Common stock, $1 par value per share			0
Additional paid-in capital			0
Retained earnings			(168,000,000)
Accumulated other comprehensive loss			1,000,000
Total stockholders’ equity (deficit)			(167,000,000)
Noncontrolling interests in subsidiary			0
Total equity (deficit)			(167,000,000)
Total liabilities and equity			$ 99,000,000

Significant Accounting Policies - Schedule of Effect of Adoption of ASU 606 on Cash Flow (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating activities
Net earnings	$ 1,253	$ 1,473	$ 1,163	$ 1,157	$ (744)	$ 963	$ 955	$ 789	$ 5,046	$ 1,963	$ 5,173
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization									1,161	1,195	1,215
Stock-based compensation									173	158	149
Deferred income taxes									(244)	3,448	(193)
Severance and restructuring charges									96	0	99
Gain on property sale									0	(198)	0
Gain on divestiture of IS&GS business									0	(73)	(1,201)
Gain on step acquisition of AWE									0	0	(104)
Changes in assets and liabilities
Receivables, net									(179)	(902)	598
Contract assets									(1,480)	390	(1,246)
Inventories									(119)	(79)	173
Accounts payable									914	(189)	(188)
Contract liabilities									(537)	353	(163)
Postretirement benefit plans									(3,574)	1,316	1,028
Income taxes									1,077	(1,210)	146
Other, net									804	304	(297)
Net cash provided by operating activities									$ 3,138	6,476	5,189
Historical
Operating activities
Net earnings										2,002	5,302
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization										1,195	1,215
Stock-based compensation										158	149
Deferred income taxes										3,432	(152)
Severance and restructuring charges											99
Gain on property sale										(198)
Gain on divestiture of IS&GS business										(73)	(1,242)
Gain on step acquisition of AWE											(104)
Changes in assets and liabilities
Receivables, net										(401)	(811)
Contract assets										0	0
Inventories										183	(46)
Accounts payable										(189)	(188)
Contract liabilities										(24)	3
Postretirement benefit plans										1,316	1,028
Income taxes										(1,210)	146
Other, net										285	(210)
Net cash provided by operating activities										6,476	5,189
ASC 606 \| Adjustments for
Operating activities
Net earnings										(39)	(129)
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization										0	0
Stock-based compensation										0	0
Deferred income taxes										16	(41)
Severance and restructuring charges											0
Gain on property sale										0
Gain on divestiture of IS&GS business										0	41
Gain on step acquisition of AWE											0
Changes in assets and liabilities
Receivables, net										(501)	1,409
Contract assets										390	(1,246)
Inventories										(262)	219
Accounts payable										0	0
Contract liabilities										377	(166)
Postretirement benefit plans										0	0
Income taxes										0	0
Other, net										19	(87)
Net cash provided by operating activities										$ 0	$ 0

Significant Accounting Policies - Effect of Adoption of New Accounting Pronouncement, Narrative (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net earnings	$ 1,253	$ 1,473	$ 1,163	$ 1,157	$ (744)	$ 963	$ 955	$ 789	$ 5,046	$ 1,963	$ 5,173
Comprehensive income									5,672	1,526	4,515
Reclassification of income tax effects from tax reform									$ 2,400
Adjustments for \| ASC 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net earnings										(39)	$ (129)
Comprehensive income										$ 38
Forecast \| ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use asset												$ 1,100

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings Per Share (Detail) - shares shares in Millions	12 Months Ended
Earnings Per Share (Detail) - shares shares in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Weighted average common shares outstanding for basic computations (in shares)	284.5	287.8	299.3
Weighted average dilutive effect of equity awards (in shares)	2.3	2.8	3.8
Weighted average common shares outstanding for diluted computations (in shares)	286.8	290.6	303.1
Antidilutive securities excluded from computation of earnings per share (in shares)	0.0	0.0	0.0

Acquisition and Divestitures - Additional Information (Detail) $ in Millions			3 Months Ended	8 Months Ended	12 Months Ended			28 Months Ended
	Aug. 24, 2016 USD ($)	Aug. 16, 2016 USD ($) shares	Dec. 31, 2017 USD ($)	Aug. 23, 2016	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2018
Acquisitions And Divestitures [Line Items]
One-time special cash payment received from Abacus		$ 1,800			$ 0	$ 0	$ 1,800
Net gain on divestiture of business segment					$ 0	$ 73	1,201
Fair value of shares of common stock tendered and retired							2,497
Abacus \| Term Loan Facilities
Acquisitions And Divestitures [Line Items]
Amount of issued debt		$ 1,840
Information Systems & Global Solutions
Acquisitions And Divestitures [Line Items]
Percentage of reduction in common stock outstanding		3.00%
Net gain on divestiture of business segment		$ 1,300					1,200
Fair value of shares of common stock tendered and retired		2,500
Net book value		3,000
Other adjustments		$ 100
Information Systems & Global Solutions \| Lockheed Martin
Acquisitions And Divestitures [Line Items]
Number of common stock exchanged (in shares) \| shares		9,369,694
Conversion ratio		1
Information Systems & Global Solutions \| Continuing Operations
Acquisitions And Divestitures [Line Items]
Pension costs							54
Information Systems & Global Solutions \| Discontinued Operations
Acquisitions And Divestitures [Line Items]
Severance charges							19
Information Systems & Global Solutions \| Adjustments for
Acquisitions And Divestitures [Line Items]
Corporate overhead							(82)
Information Systems & Global Solutions \| Discontinued Operations, Disposed of by Sale
Acquisitions And Divestitures [Line Items]
Net gain on divestiture of business segment			$ 73
AWE Management Limited
Acquisitions And Divestitures [Line Items]
Ownership interest percentage owned immediately before acquisition	33.00%	33.00%
Ownership interest percentage owned subsequent acquisition	51.00%
Net liabilities	$ 32
Business combination, acquisition of less than 100 percent, noncontrolling interest, fair value	107
AWE Management Limited \| Net Earnings From Continuing Operations
Acquisitions And Divestitures [Line Items]
Gain (loss) associated with obtaining control of AWE							104
AWE Management Limited \| Customer relationships
Acquisitions And Divestitures [Line Items]
Intangible assets	$ 243
Acquired finite-lived intangible assets are amortized	8 years
Pre-tax gain recognized in operating results of Space System business segment \| AWE Management Limited \| Space
Acquisitions And Divestitures [Line Items]
Gain (loss) associated with obtaining control of AWE							127
Deferred tax liabilities at corporate office \| AWE Management Limited
Acquisitions And Divestitures [Line Items]
Gain (loss) associated with obtaining control of AWE							$ 23
Net Sales \| AWE Management Limited \| Segment Concentration Risk \| Space
Acquisitions And Divestitures [Line Items]
Concentration percentage					100.00%			100.00%
Net Sales \| AWE Management Limited \| Equity Method Investment Risk \| Space
Acquisitions And Divestitures [Line Items]
Concentration percentage				0.00%
Operating profit \| AWE Management Limited \| Segment Concentration Risk \| Space
Acquisitions And Divestitures [Line Items]
Concentration percentage					51.00%		51.00%	51.00%
Net Earnings \| AWE Management Limited \| Equity Method Investment Risk \| Space
Acquisitions And Divestitures [Line Items]
Concentration percentage				33.00%

Acquisition and Divestitures - Operating Results Reflected within Earnings from Discontinued Operations, Net of Tax (Detail) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net earnings from discontinued operations	$ 73	$ 0	$ 0	$ 0	$ 0	$ 73	$ 1,512
Discontinued Operations, Disposed of by Sale \| Information Systems & Global Solutions
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales							3,410
Cost of sales							(2,953)
Severance charges							(19)
Gross profit							438
Other income, net							16
Operating profit							454
Earnings from discontinued operations before income taxes							454
Income tax expense							(147)
Net gain on divestiture of discontinued operations							1,205
Net earnings from discontinued operations							$ 1,512

Goodwill and Acquired Intangibles - Changes in the Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 10,807	$ 10,764
Other	(38)	43
Goodwill, ending balance	10,769	10,807
Aeronautics
Goodwill [Roll Forward]
Goodwill, beginning balance	171	171
Other	0	0
Goodwill, ending balance	171	171
MFC
Goodwill [Roll Forward]
Goodwill, beginning balance	2,265	2,260
Other	(3)	5
Goodwill, ending balance	2,262	2,265
RMS
Goodwill [Roll Forward]
Goodwill, beginning balance	6,784	6,748
Other	(33)	36
Goodwill, ending balance	6,751	6,784
Space
Goodwill [Roll Forward]
Goodwill, beginning balance	1,587	1,585
Other	(2)	2
Goodwill, ending balance	$ 1,585	$ 1,587

Goodwill and Acquired Intangibles - Acquired Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Finite-lived, gross carrying amount	$ 3,581	$ 3,607
Indefinite lived, trademark, gross carrying amount	887	887
Finite-lived, accumulated amortization	(974)	(697)
Total acquired intangibles	4,468	4,494
Finite-lived, net carrying amount	2,607	2,910
Total acquired intangibles, Net Carrying Amount	3,494	3,797
Customer programs
Finite-Lived Intangible Assets [Line Items]
Finite-lived, gross carrying amount	3,184	3,184
Finite-lived, accumulated amortization	(735)	(503)
Finite-lived, net carrying amount	2,449	2,681
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived, gross carrying amount	344	352
Finite-lived, accumulated amortization	(199)	(140)
Finite-lived, net carrying amount	145	212
Other
Finite-Lived Intangible Assets [Line Items]
Finite-lived, gross carrying amount	53	71
Finite-lived, accumulated amortization	(40)	(54)
Finite-lived, net carrying amount	$ 13	$ 17

Goodwill and Acquired Intangibles - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Nov. 06, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense for acquired finite lived intangible assets	$ 296	$ 312	$ 284
Amortization of finite lived intangible assets in 2019	285
Amortization of finite lived intangible assets in 2020	263
Amortization of finite lived intangible assets in 2021	256
Amortization of finite lived intangible assets in 2022	253
Amortization of finite lived intangible assets in 2023	250
Amortization of finite lived intangible assets after 2023	1,300
Sikorsky Aircraft Corporation
Finite-Lived Intangible Assets [Line Items]
Customer contractual obligations acquired				$ 507
Performance obligation satisfied in previous period	$ 325
Minimum
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets are amortized	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets are amortized	20 years
Customer programs \| Minimum
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets are amortized	9 years
Customer programs \| Maximum
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets are amortized	20 years
Customer relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets are amortized	4 years
Customer relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets are amortized	10 years
Other \| Minimum
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets are amortized	3 years
Other \| Maximum
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets are amortized	10 years

Goodwill and Acquired Intangibles - Contractual Obligations (Details) - Sikorsky Aircraft Corporation $ in Millions	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Sales related to customer contractual obligations to date	$ 325
Contractual obligation, due in next fiscal year	70
Contractual obligation, due in second year	45
Contractual obligation, due in third year	15
Contractual obligation, due in fourth year	30
Contractual obligation, due in fifth year	5
Contractual obligation, due thereafter	$ 17

Information on Business Segments - Narrative (Detail) - segment	8 Months Ended	12 Months Ended			28 Months Ended
	Aug. 23, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Segment Reporting [Abstract]
Number of business segments		4
Net Sales \| Product Concentration Risk \| F-35 Program \| Aeronautics
Segment Reporting Information [Line Items]
Net sales for the F-35 program representing total consolidated net sales (as a percent)		27.00%	26.00%	23.00%
AWE Management Limited \| Net Earnings \| Equity Method Investment Risk \| Space
Segment Reporting Information [Line Items]
Concentration percentage	33.00%
AWE Management Limited \| Net Sales \| Equity Method Investment Risk \| Space
Segment Reporting Information [Line Items]
Concentration percentage	0.00%
AWE Management Limited \| Net Sales \| Segment Concentration Risk \| Space
Segment Reporting Information [Line Items]
Concentration percentage		100.00%			100.00%
AWE Management Limited \| Operating profit \| Segment Concentration Risk \| Space
Segment Reporting Information [Line Items]
Concentration percentage		51.00%		51.00%	51.00%

Information on Business Segments - Summary of Financial Information for Each Business Segment (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Aug. 24, 2016	Aug. 16, 2016
Net sales
Net sales	$ 14,411	$ 14,318	$ 13,398	$ 11,635	$ 13,844	$ 12,341	$ 12,563	$ 11,212	$ 53,762	$ 49,960	$ 47,290
Operating profit
Operating profit	1,851	$ 1,963	1,795	$ 1,725	1,949	$ 1,677	$ 1,716	1,402	7,334	6,744	5,888
Unallocated items
Gain on property sale									0	198	0
AMMROC
Unallocated items
Equity method investee impairment	$ 110							$ 64
Land
Unallocated items
Gain on property sale					$ 198					198
AWE Management Limited
Unallocated items
Ownership interest percentage owned immediately before acquisition												33.00%	33.00%
Ownership interest percentage owned subsequent acquisition												51.00%
Net Earnings From Continuing Operations \| AWE Management Limited
Unallocated items
Gain (loss) associated with obtaining control of AWE											$ 104
Increase in net earnings from continuing operations (in dollars per share)											$ 0.34
Operating Segments
Net sales
Net sales									53,762	49,960	$ 47,290
Operating profit
Operating profit									5,877	5,092	4,982
Segment Reconciling Items
Unallocated items
FAS/CAS operating adjustment									1,803	1,613	1,250
Stock-based compensation									(173)	(158)	(149)
Severance and restructuring charges									(96)	0	(80)
Other, net									(77)	197	(115)
Total unallocated items									1,457	1,652	906
Aeronautics
Net sales
Net sales									21,242	19,410	17,293
Aeronautics \| Operating Segments
Net sales
Net sales									21,242	19,410	17,293
Operating profit
Operating profit									2,272	2,176	1,845
Missiles and Fire Control
Net sales
Net sales									8,462	7,282	6,789
Missiles and Fire Control \| Operating Segments
Net sales
Net sales									8,462	7,282	6,789
Operating profit
Operating profit									1,248	1,034	1,004
Rotary and Mission Systems
Net sales
Net sales									14,250	13,663	13,595
Unallocated items
Severance and restructuring charges			$ 96
Rotary and Mission Systems \| Operating Segments
Net sales
Net sales									14,250	13,663	13,595
Operating profit
Operating profit									1,302	902	845
Space
Net sales
Net sales									9,808	9,605	9,613
Space \| Operating Segments
Net sales
Net sales									9,808	9,605	9,613
Operating profit
Operating profit									$ 1,055	$ 980	1,288
Space \| Operating Segments \| AWE Management Limited
Unallocated items
Gain (loss) associated with obtaining control of AWE											$ 127

Information on Business Segments - FAS/CAS Pension Adjustment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Non-operating FAS pension expense	$ (801)	$ (737)	$ (348)
Net FAS/CAS pension adjustment	1,002	876	902
Segment Reconciling Items
Segment Reporting Information [Line Items]
Less: CAS pension cost	2,433	2,248	1,921
FAS pension service cost	(630)	(635)	(671)
FAS/CAS operating adjustment	1,803	1,613	1,250
Qualified Defined Benefit Pension Plans
Segment Reporting Information [Line Items]
Total net periodic benefit cost	1,431	1,372	1,019
FAS pension service cost	(630)	(635)	(671)
Qualified Plan \| Qualified Defined Benefit Pension Plans
Segment Reporting Information [Line Items]
Total net periodic benefit cost	(1,431)	(1,372)	(1,019)
Non-operating FAS pension expense	$ 67	$ 109	$ 123

Information on Business Segments - Summary of Financial Information for Each Business Segment, Intersegment Sale, Depreciation and Capital Expenditures (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 14,411	$ 14,318	$ 13,398	$ 11,635	$ 13,844	$ 12,341	$ 12,563	$ 11,212	$ 53,762	$ 49,960	$ 47,290
Depreciation and amortization									1,161	1,195	1,167
Capital expenditures									1,278	1,177	1,063
Aeronautics
Segment Reporting Information [Line Items]
Net sales									21,242	19,410	17,293
MFC
Segment Reporting Information [Line Items]
Net sales									8,462	7,282	6,789
Rotary and Mission Systems
Segment Reporting Information [Line Items]
Net sales									14,250	13,663	13,595
Space
Segment Reporting Information [Line Items]
Net sales									9,808	9,605	9,613
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales									2,806	2,608	2,405
Intersegment Eliminations \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									120	122	142
Intersegment Eliminations \| MFC
Segment Reporting Information [Line Items]
Net sales									423	355	299
Intersegment Eliminations \| Rotary and Mission Systems
Segment Reporting Information [Line Items]
Net sales									2,026	2,020	1,854
Intersegment Eliminations \| Space
Segment Reporting Information [Line Items]
Net sales									237	111	110
Operating Segments
Segment Reporting Information [Line Items]
Net sales									53,762	49,960	47,290
Depreciation and amortization									1,096	1,123	1,092
Capital expenditures									1,214	1,014	979
Operating Segments \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									21,242	19,410	17,293
Depreciation and amortization									304	311	299
Capital expenditures									460	371	358
Operating Segments \| MFC
Segment Reporting Information [Line Items]
Net sales									8,462	7,282	6,789
Depreciation and amortization									105	99	105
Capital expenditures									244	156	167
Operating Segments \| Rotary and Mission Systems
Segment Reporting Information [Line Items]
Net sales									14,250	13,663	13,595
Depreciation and amortization									458	468	476
Capital expenditures									255	308	271
Operating Segments \| Space
Segment Reporting Information [Line Items]
Net sales									9,808	9,605	9,613
Depreciation and amortization									229	245	212
Capital expenditures									255	179	183
Corporate activities
Segment Reporting Information [Line Items]
Depreciation and amortization									65	72	75
Capital expenditures									64	163	75
Continuing Operations
Segment Reporting Information [Line Items]
Capital expenditures									$ 1,278	$ 1,177	1,054
Information Systems & Global Solutions
Segment Reporting Information [Line Items]
Depreciation and amortization											48
Capital expenditures											$ 9

Information on Business Segments - Income Statement Information For Each Segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 14,411	$ 14,318	$ 13,398	$ 11,635	$ 13,844	$ 12,341	$ 12,563	$ 11,212	$ 53,762	$ 49,960	$ 47,290
Aeronautics
Segment Reporting Information [Line Items]
Net sales									21,242	19,410	17,293
MFC
Segment Reporting Information [Line Items]
Net sales									8,462	7,282	6,789
RMS
Segment Reporting Information [Line Items]
Net sales									14,250	13,663	13,595
Space
Segment Reporting Information [Line Items]
Net sales									9,808	9,605	9,613
United States
Segment Reporting Information [Line Items]
Net sales									38,606	35,626	34,611
United States \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									13,507	12,769	11,468
United States \| MFC
Segment Reporting Information [Line Items]
Net sales									6,272	4,610	4,445
United States \| RMS
Segment Reporting Information [Line Items]
Net sales									10,557	10,088	9,804
United States \| Space
Segment Reporting Information [Line Items]
Net sales									8,270	8,159	8,894
Asia Pacific
Segment Reporting Information [Line Items]
Net sales									5,280	4,775	3,710
Asia Pacific \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									3,335	2,823	2,077
Asia Pacific \| MFC
Segment Reporting Information [Line Items]
Net sales									427	516	341
Asia Pacific \| RMS
Segment Reporting Information [Line Items]
Net sales									1,433	1,344	1,194
Asia Pacific \| Space
Segment Reporting Information [Line Items]
Net sales									85	92	98
Europe
Segment Reporting Information [Line Items]
Net sales									5,403	4,833	3,777
Europe \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									2,837	2,331	2,020
Europe \| MFC
Segment Reporting Information [Line Items]
Net sales									321	305	237
Europe \| RMS
Segment Reporting Information [Line Items]
Net sales									829	927	1,045
Europe \| Space
Segment Reporting Information [Line Items]
Net sales									1,416	1,270	475
Middle East
Segment Reporting Information [Line Items]
Net sales									3,602	3,767	3,737
Middle East \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									1,380	1,316	1,423
Middle East \| MFC
Segment Reporting Information [Line Items]
Net sales									1,404	1,798	1,739
Middle East \| RMS
Segment Reporting Information [Line Items]
Net sales									781	572	429
Middle East \| Space
Segment Reporting Information [Line Items]
Net sales									37	81	146
Other
Segment Reporting Information [Line Items]
Net sales									871	959	1,455
Other \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									183	171	305
Other \| MFC
Segment Reporting Information [Line Items]
Net sales									38	53	27
Other \| RMS
Segment Reporting Information [Line Items]
Net sales									650	732	1,123
Other \| Space
Segment Reporting Information [Line Items]
Net sales									0	3	0
U.S. Government
Segment Reporting Information [Line Items]
Net sales									37,716	34,879	33,435
U.S. Government \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									13,321	12,609	11,265
U.S. Government \| MFC
Segment Reporting Information [Line Items]
Net sales									6,088	4,467	4,304
U.S. Government \| RMS
Segment Reporting Information [Line Items]
Net sales									10,083	9,715	9,350
U.S. Government \| Space
Segment Reporting Information [Line Items]
Net sales									8,224	8,088	8,516
International
Segment Reporting Information [Line Items]
Net sales									15,156	14,334	12,679
International \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									7,735	6,641	5,825
International \| MFC
Segment Reporting Information [Line Items]
Net sales									2,190	2,672	2,344
International \| RMS
Segment Reporting Information [Line Items]
Net sales									3,693	3,575	3,791
International \| Space
Segment Reporting Information [Line Items]
Net sales									1,538	1,446	719
U.S. Commercial and Other
Segment Reporting Information [Line Items]
Net sales									890	747	1,176
U.S. Commercial and Other \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									186	160	203
U.S. Commercial and Other \| MFC
Segment Reporting Information [Line Items]
Net sales									184	143	141
U.S. Commercial and Other \| RMS
Segment Reporting Information [Line Items]
Net sales									474	373	454
U.S. Commercial and Other \| Space
Segment Reporting Information [Line Items]
Net sales									46	71	378
Fixed-price
Segment Reporting Information [Line Items]
Net sales									33,239	31,047	29,047
Fixed-price \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									15,719	13,828	11,926
Fixed-price \| MFC
Segment Reporting Information [Line Items]
Net sales									5,653	5,102	4,926
Fixed-price \| RMS
Segment Reporting Information [Line Items]
Net sales									9,975	10,059	9,871
Fixed-price \| Space
Segment Reporting Information [Line Items]
Net sales									1,892	2,058	2,324
Cost-reimbursable
Segment Reporting Information [Line Items]
Net sales									20,523	18,913	18,243
Cost-reimbursable \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									5,523	5,582	5,367
Cost-reimbursable \| MFC
Segment Reporting Information [Line Items]
Net sales									2,809	2,180	1,863
Cost-reimbursable \| RMS
Segment Reporting Information [Line Items]
Net sales									4,275	3,604	3,724
Cost-reimbursable \| Space
Segment Reporting Information [Line Items]
Net sales									7,916	7,547	7,289
Products
Segment Reporting Information [Line Items]
Net sales									45,005	42,502	40,081
Products \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									18,207	16,981	15,066
Products \| MFC
Segment Reporting Information [Line Items]
Net sales									6,945	5,940	5,602
Products \| RMS
Segment Reporting Information [Line Items]
Net sales									11,714	11,398	11,401
Products \| Space
Segment Reporting Information [Line Items]
Net sales									8,139	8,183	8,012
Services
Segment Reporting Information [Line Items]
Net sales									8,757	7,458	7,209
Services \| Aeronautics
Segment Reporting Information [Line Items]
Net sales									3,035	2,429	2,227
Services \| MFC
Segment Reporting Information [Line Items]
Net sales									1,517	1,342	1,187
Services \| RMS
Segment Reporting Information [Line Items]
Net sales									2,536	2,265	2,194
Services \| Space
Segment Reporting Information [Line Items]
Net sales									$ 1,669	$ 1,422	$ 1,601

Information on Business Segments - Total Assets and Customer Advances and Amounts In Excess Of Costs Incurred For Each Business Segment (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Assets	$ 44,876	$ 46,620
Operating Segments
Segment Reporting Information [Line Items]
Assets	37,230	35,822
Operating Segments \| Aeronautics
Segment Reporting Information [Line Items]
Assets	8,435	7,713
Operating Segments \| Missiles and Fire Control
Segment Reporting Information [Line Items]
Assets	5,017	4,577
Operating Segments \| Rotary and Mission Systems
Segment Reporting Information [Line Items]
Assets	18,333	18,292
Operating Segments \| Space
Segment Reporting Information [Line Items]
Assets	5,445	5,240
Corporate activities
Segment Reporting Information [Line Items]
Assets	$ 7,646	$ 10,798

Receivables, net, Contract Assets and Contract Liabilities - Schedule of Receivables and Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Receivables, net	$ 2,444	$ 2,265
Contract assets	9,472	7,992
Contract liabilities	$ 6,491	$ 7,028

Receivables, net, Contract Assets and Contract Liabilities - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
U.S. government receivables	$ 1,900
Receivables from other governments and commercial customers	2,444	$ 2,265
Contract assets, progress payments	30,200	19,900
Increase in contract assets	1,480	(390)	$ 1,246
Impairment loss	0	0
Increase (decrease) in contract liability	(537)	353	(163)
Liability, revenue recognized	3,900	$ 3,300	$ 3,700
Other Governments and Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables from other governments and commercial customers	$ 578

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Materials, spares and supplies	$ 446	$ 563
Work-in-process	2,161	1,823
Finished goods	390	492
Total inventories	$ 2,997	$ 2,878

Inventories - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
General and administrative costs included in work-in-process inventories	$ 53	$ 112
General and administrative costs incurred and recorded in inventories	1,900	2,000	$ 1,900
General and administrative costs charged to cost of sales from inventories	2,000	2,000	$ 1,900
Capitalized contract cost	$ 443	$ 466

Property, Plant and Equipment, net (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 16,089	$ 15,361
Less: accumulated depreciation and amortization	(9,965)	(9,586)
Total property, plant and equipment, net	6,124	5,775
Land
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	135	131
Buildings
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	6,553	6,401
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	7,871	7,624
Construction in progress
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 1,530	$ 1,205

Property, Plant and Equipment, net - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Gain on property sale		$ 0	$ 198	$ 0
Land
Property, Plant and Equipment [Line Items]
Gain on property sale	$ 198		198
Gain on property sale, after tax	$ 122		$ 122
Gain on property sale per share, after tax (in dollars per share)	$ 0.43		$ 0.42

Income Taxes - Provision for Federal & Foreign Income Tax Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current
Operations	$ 975	$ (189)	$ 1,327
One-time charge due to tax legislation	(6)	43	0
Deferred
Operations	(194)	1,607	(261)
One-time charge due to tax legislation	(37)	1,843	0
Total federal income tax expense	738	3,304	1,066
Foreign income tax expense (benefit):
Current	67	53	56
Deferred	(13)	(1)	(29)
Total foreign income tax expense	54	52	27
Total income tax expense	$ 792	$ 3,356	$ 1,093

Income Taxes - Additional Information (Detail) - USD ($)		3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Line Items]
Deferred tax asset, increase (decrease), amount	$ 2,000,000,000
Remeasurement of deferred tax asset		$ 2,000,000,000
Effect of change on earnings per share (in dollars per share)		$ 6.88		$ 6.77
Total net state income tax expense			$ 83,000,000	$ 103,000,000	$ 112,000,000
Recognized tax benefit for the impact of the tax credit			138,000,000	115,000,000	107,000,000
Excess tax benefits for share-based payment awards			(55,000,000)	(106,000,000)	(152,000,000)
Foreign derived intangible income deduction			61,000,000	0	0
U.S. manufacturing deduction benefit			0	7,000,000	117,000,000
Unrecognized tax benefits	$ 0	$ 0	0	0	0
Federal and foreign income tax payments made, net of refunds received			$ (41,000,000)	$ 1,100,000,000	$ 1,300,000,000
Internal Revenue Service (IRS) \| Tax Year 2017
Income Taxes [Line Items]
Tax years subject to examination			2017
Internal Revenue Service (IRS) \| Tax Year 2018
Income Taxes [Line Items]
Tax years subject to examination			2018
Accounting Standards Update 2016-09 \| Adjustments for \| Adjustments for New Accounting Principle, Early Adoption
Income Taxes [Line Items]
Excess income tax benefit from share-based compensation, operating activities			$ 61,000,000

Income Taxes - Reconciliation of Income Tax Expense Computed Using U.S. Statutory Federal Tax Rate to Actual Income Tax Expense (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amount
Income tax expense at the U.S. federal statutory tax rate	$ 1,226,000,000	$ 1,836,000,000	$ 1,664,000,000
Research and development tax credit	(138,000,000)	(115,000,000)	(107,000,000)
Foreign derived intangible income deduction	(61,000,000)	0	0
Tax deductible dividends	(59,000,000)	(94,000,000)	(92,000,000)
Excess tax benefits for share-based payment awards	(55,000,000)	(106,000,000)	(152,000,000)
Deferred tax write-down and transition tax	(43,000,000)	1,886,000,000	0
U.S. manufacturing deduction benefit	0	(7,000,000)	(117,000,000)
Tax accounting method change	(61,000,000)	0	0
Other, net	(17,000,000)	(44,000,000)	(103,000,000)
Total income tax expense	$ 792,000,000	$ 3,356,000,000	$ 1,093,000,000
Rate
Income tax expense at the U.S. federal statutory tax rate	21.00%	35.00%	35.00%
Research and development tax credit	(2.40%)	(2.20%)	(2.20%)
Foreign derived intangible income deduction	(1.00%)	(0.00%)	(0.00%)
Tax deductible dividends	(1.00%)	(1.80%)	(1.90%)
Excess tax benefits for share-based payment awards	(0.90%)	(2.00%)	(3.20%)
Deferred tax write-down and transition tax	(0.70%)	35.90%	0.00%
U.S. manufacturing deduction benefit	(0.00%)	(0.10%)	(2.50%)
Tax accounting method change, percent	(1.00%)	0.00%	0.00%
Other, net	(0.40%)	(0.80%)	(2.20%)
Income tax expense	13.60%	64.00%	23.00%

Income Taxes - Components of Federal and Foreign Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets related to:
Accrued compensation and benefits	$ 584	$ 595
Pensions	2,623	2,495
Other postretirement benefit obligations	148	153
Contract accounting methods	539	531
Foreign company operating losses and credits	38	27
Other	160	154
Valuation allowance	(20)	(20)
Deferred tax assets, net	4,072	3,935
Deferred tax liabilities related to:
Goodwill and purchased intangibles	296	266
Property, plant and equipment	296	239
Exchanged debt securities and other	294	303
Deferred tax liabilities	886	808
Net deferred tax assets	$ 3,186	$ 3,127

Debt - Long Term Debt (Detail) - USD ($) $ in Millions	12 Months Ended
Debt - Long Term Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total debt	$ 15,312	$ 15,498
Commercial paper	600	0
Less: unamortized discounts and issuance costs	(1,208)	(1,235)
Total debt, net	14,104	14,263
Less: current portion	(1,500)	(750)
Long-term debt, net	$ 12,604	$ 13,513
1.85% due 2018
Debt Instrument [Line Items]
Interest rate	1.85%	1.85%
Long-term debt maturity year	2018
Total debt	$ 0	$ 750
4.25% due 2019
Debt Instrument [Line Items]
Interest rate	4.25%
Long-term debt maturity year	2019
Total debt	$ 900	900
2.50% due 2020
Debt Instrument [Line Items]
Interest rate	2.50%
Long-term debt maturity year	2020
Total debt	$ 1,250	1,250
3.35% due 2021
Debt Instrument [Line Items]
Interest rate	3.35%
Long-term debt maturity year	2021
Total debt	$ 900	900
3.10% due 2023
Debt Instrument [Line Items]
Interest rate	3.10%
Long-term debt maturity year	2023
Total debt	$ 500	500
2.90% due 2025
Debt Instrument [Line Items]
Interest rate	2.90%
Long-term debt maturity year	2025
Total debt	$ 750	750
3.55% due 2026
Debt Instrument [Line Items]
Interest rate	3.55%
Long-term debt maturity year	2026
Total debt	$ 2,000	2,000
3.60% due 2035
Debt Instrument [Line Items]
Interest rate	3.60%
Long-term debt maturity year	2035
Total debt	$ 500	500
4.50% and 6.15% due 2036
Debt Instrument [Line Items]
Long-term debt maturity year	2036
Total debt	$ 1,054	1,054
4.50% and 6.15% due 2036 \| Minimum
Debt Instrument [Line Items]
Interest rate	4.50%
4.50% and 6.15% due 2036 \| Maximum
Debt Instrument [Line Items]
Interest rate	6.15%
4.07% due 2042
Debt Instrument [Line Items]
Interest rate	4.07%
Long-term debt maturity year	2042
Total debt	$ 1,336	1,336
3.80% due 2045
Debt Instrument [Line Items]
Interest rate	3.80%
Long-term debt maturity year	2045
Total debt	$ 1,000	1,000
4.70% due 2046
Debt Instrument [Line Items]
Interest rate	4.70%
Long-term debt maturity year	2046
Total debt	$ 1,326	1,326
4.09% due 2052
Debt Instrument [Line Items]
Interest rate	4.09%
Long-term debt maturity year	2052
Total debt	$ 1,578	1,578
Other notes with rates from 4.85% to 8.50%, due 2023 to 2041
Debt Instrument [Line Items]
Total debt	$ 1,618	$ 1,654
Other notes with rates from 4.85% to 8.50%, due 2023 to 2041 \| Minimum
Debt Instrument [Line Items]
Interest rate	4.85%
Long-term debt maturity year	2023
Other notes with rates from 4.85% to 8.50%, due 2023 to 2041 \| Maximum
Debt Instrument [Line Items]
Interest rate	8.50%
Long-term debt maturity year	2041

Debt - Additional Information (Detail) - USD ($)		1 Months Ended			4 Months Ended	12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Aug. 24, 2018	Nov. 30, 2018	Sep. 30, 2016	May 31, 2016	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 24, 2017	Sep. 25, 2016
Debt Instrument [Line Items]
Interest payments						$ 635,000,000	$ 610,000,000	$ 600,000,000
Short term borrowings due within one year					$ 1,500,000,000	1,500,000,000	750,000,000
Outstanding principal amount of debt instruments					15,312,000,000	15,312,000,000	15,498,000,000
Current maturities of long-term debt and commercial paper					1,500,000,000	1,500,000,000	750,000,000
Commercial paper					$ 600,000,000	$ 600,000,000	0
Commercial paper borrowings							$ 0
Interest rate swaps
Debt Instrument [Line Items]
Derivative liability, notional amount				$ 450,000,000
1.85% due 2018
Debt Instrument [Line Items]
Repayments of debt		$ 750,000,000
Interest rate					1.85%	1.85%	1.85%
Outstanding principal amount of debt instruments					$ 0	$ 0	$ 750,000,000
4.09% due 2052
Debt Instrument [Line Items]
Interest rate					4.09%	4.09%
Outstanding principal amount of debt instruments					$ 1,578,000,000	$ 1,578,000,000	1,578,000,000
4.70% To 8.50% Senior Notes Maturing 2029 To 2046 \| Senior Notes
Debt Instrument [Line Items]
Debt instrument, unamortized premium									$ 237,000,000
4.25% due 2019
Debt Instrument [Line Items]
Interest rate					4.25%	4.25%
Outstanding principal amount of debt instruments					$ 900,000,000	$ 900,000,000	900,000,000
Unsecured Debt \| Five Year Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility	$ 2,500,000,000.0
Line of credit facility expiration period	5 years
Additional amount to increase credit facility, granted at banks' discretion					500,000,000
Line of credit facility, amount outstanding					$ 0	$ 0	$ 0
Senior Notes \| 4.09% due 2052
Debt Instrument [Line Items]
Interest rate									4.09%
Amount of issued debt									$ 1,600,000,000
Senior Notes \| 4.70% To 8.50% Senior Notes Maturing 2029 To 2046
Debt Instrument [Line Items]
Debt instrument, repurchase amount									$ 1,400,000,000
Senior Notes \| 4.70% To 8.50% Senior Notes Maturing 2029 To 2046 \| Minimum
Debt Instrument [Line Items]
Interest rate									4.70%
Senior Notes \| 4.70% To 8.50% Senior Notes Maturing 2029 To 2046 \| Maximum
Debt Instrument [Line Items]
Interest rate									8.50%
Notes Payable to Banks \| 2.13% Long-Term Notes
Debt Instrument [Line Items]
Interest rate										2.13%
Repayments of notes payable			$ 500,000,000
Notes Payable to Banks \| 7.65% Long-term notes
Debt Instrument [Line Items]
Interest rate				7.65%
Repayments of notes payable				$ 452,000,000
Commercial Paper
Debt Instrument [Line Items]
Weighted average interest rate					2.89%	2.89%

Postretirement Benefit Plans - Schedule of Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Qualified Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 630	$ 635	$ 671
Interest cost	1,740	1,835	1,890
Expected return on plan assets	(2,395)	(2,249)	(2,539)
Recognized net actuarial losses	1,777	1,506	1,359
Amortization of net prior service (credit) cost	(321)	(355)	(362)
Total net periodic benefit cost	1,431	1,372	1,019
Qualified Defined Benefit Pension Plans \| Discontinued Operations \| Information Systems & Global Solutions
Defined Benefit Plan Disclosure [Line Items]
Net prior service (credit) and cost - Recognition of Previously Deferred Amounts			14
Retiree Medical and Life Insurance Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	19	19	23
Interest cost	91	103	120
Expected return on plan assets	(135)	(128)	(138)
Recognized net actuarial losses	5	19	34
Amortization of net prior service (credit) cost	15	15	22
Total net periodic benefit cost	$ (5)	$ 28	$ 61

Postretirement Benefit Plans - Reconciliation of Benefit Obligations, Plan Assets, and Unfunded or Funded Status (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Change in plan assets
Beginning balance at fair value	$ 34,978
Ending balance at fair value	33,646	$ 34,978
Qualified Defined Benefit Pension Plans
Change in benefit obligation
Beginning balance	48,686	45,064
Service cost	630	635	$ 671
Interest cost	1,740	1,835	1,890
Benefits paid	(2,379)	(2,310)
Settlements	(1,821)	0
Actuarial losses (gains)	(3,281)	3,536
Changes in longevity assumptions	(162)	(352)
Plan amendments and curtailments (b)	(108)	278
Medicare Part D subsidy	0	0
Participants’ contributions	0	0
Ending balance	43,305	48,686	45,064
Change in plan assets
Beginning balance at fair value	33,095	31,417
Actual return on plan assets	(1,893)	3,942
Benefits paid	(2,379)	(2,310)
Settlements	(1,821)	0
Company contributions	5,000	46
Medicare Part D subsidy	0	0
Participants’ contributions	0	0
Ending balance at fair value	32,002	33,095	31,417
Unfunded status of the plans	(11,303)	(15,591)
Curtailment gain	119
Retiree Medical and Life Insurance Plans
Change in benefit obligation
Beginning balance	2,602	2,649
Service cost	19	19	23
Interest cost	91	103	120
Benefits paid	(224)	(232)
Settlements	0	0
Actuarial losses (gains)	(311)	23
Changes in longevity assumptions	(8)	(24)
Plan amendments and curtailments (b)	101	0
Medicare Part D subsidy	9	0
Participants’ contributions	69	64
Ending balance	2,348	2,602	2,649
Change in plan assets
Beginning balance at fair value	1,883	1,787
Actual return on plan assets	(94)	224
Benefits paid	(224)	(232)
Settlements	0	0
Company contributions	1	40
Medicare Part D subsidy	9	0
Participants’ contributions	69	64
Ending balance at fair value	1,644	1,883	$ 1,787
Unfunded status of the plans	$ (704)	$ (719)

Postretirement Benefit Plans - Amounts Recognized on Balance Sheets Related to Qualified Defined Benefit Pension Plans and Retiree Medical and Life Insurance Plans (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Accrued postretirement benefit liabilities	$ (11,410)	$ (15,703)
Accumulated other comprehensive loss (pre-tax) related to:
Accumulated other comprehensive loss, after tax	14,300	12,600
Qualified Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Prepaid pension asset	107	112
Accrued postretirement benefit liabilities	(11,410)	(15,703)
Accumulated other comprehensive loss (pre-tax) related to:
Net actuarial losses	19,117	20,169
Prior service (credit) cost	(1,931)	(2,263)
Total	17,186	17,906
Accumulated other comprehensive loss, after tax	13,500	11,800
Adjustments, before tax	17,186	17,906
Retiree Medical and Life Insurance Plans
Defined Benefit Plan Disclosure [Line Items]
Prepaid pension asset	0	0
Accrued postretirement benefit liabilities	(704)	(719)
Accumulated other comprehensive loss (pre-tax) related to:
Net actuarial losses	236	331
Prior service (credit) cost	167	81
Total	403	412
Accumulated other comprehensive loss, after tax	316	252
Adjustments, before tax	403	412
Other Pension Plan
Accumulated other comprehensive loss (pre-tax) related to:
Total	542	705
Accumulated other comprehensive loss, after tax	428	479
Adjustments, before tax	$ 542	$ 705

Postretirement Benefit Plans - Additional Information (Detail) retiree in Thousands, $ in Millions		1 Months Ended	12 Months Ended
	Jan. 01, 2020 USD ($)	Dec. 31, 2018 USD ($) retiree	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Assets set aside expected to be used to pay obligations of defined benefit pension plans and retiree medical and life insurance plans		$ 33,646	$ 33,646	$ 34,978
Aggregate liability for postemployment plans		46	46	60
Actuarial losses and net prior service cost related to postretirement benefit plans expected to be recognized in net periodic benefit cost during 2017		1,200	1,200
Actuarial losses and net prior service cost related to postretirement benefit plans expected to be recognized in net periodic benefit cost during 2017, net of tax			908
Expected pension plan expenses during next fiscal year		1,100	1,100
Nonqualified Plan
Defined Benefit Plan Disclosure [Line Items]
Defined benefit pension plan, liabilities		1,200	1,200	1,300
Assets set aside expected to be used to pay obligations of defined benefit pension plans and retiree medical and life insurance plans		425	425	530
Unrecognized net actuarial losses		505	505	646
Unrecognized prior service credit			48	61
Benefit plan expense			123	126	$ 125
Qualified Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation for defined benefit pension plans		43,300	43,300	48,500
Accumulated benefit obligation in excess of plan assets		43,300	43,300	48,500
Assets set aside expected to be used to pay obligations of defined benefit pension plans and retiree medical and life insurance plans		32,002	32,002	33,095	$ 31,417
Unrecognized net actuarial losses		19,117	19,117	20,169
Actuarial losses related to postretirement benefit plans expected to be recognized in net periodic benefit cost during 2017		1,100	1,100
Actuarial losses related to postretirement benefit plans expected to be recognized in net periodic benefit cost during 2017, net of tax			841
Increase (decrease) in projected benefit obligations due to a change in discount rate			$ 3,500	$ 2,900
Commingled equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period			90 days
Private equity funds \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period			8 years
Private equity funds \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period			12 years
Real estate funds \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period			8 years
Real estate funds \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period			10 years
Hedge funds \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Fair value, investments, entities that calculate net asset value per share, investment redemption, notice period			1 month
Buy-In Contract
Defined Benefit Plan Disclosure [Line Items]
Cash payment for contract			$ 810
Difference between insurance payment and pension obligations funded recognized in other comprehensive loss		$ 40
Buy-In Contract \| Qualified Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Reimbursable future benefit payments			770
Number of retirees \| retiree		9
Buy-In Contract \| Forecast
Defined Benefit Plan Disclosure [Line Items]
Loss related to litigation settlement	$ 350
Irrevocable Group Annuity Contract
Defined Benefit Plan Disclosure [Line Items]
Cash payment for contract			1,820
Difference between insurance payment and pension obligations funded recognized in other comprehensive loss		$ 60
Irrevocable Group Annuity Contract \| Qualified Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Reimbursable future benefit payments			$ 1,760
Number of retirees \| retiree		32

Postretirement Benefit Plans - Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets (Detail) - Qualified Defined Benefit Pension Plans - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Plans where ABO was in excess of plan assets
Projected benefit obligation	$ 42,444	$ 48,628
Less: fair value of plan assets	31,034	32,925
Unfunded status of plans	(11,410)	(15,703)
Plans where ABO was less than plan assets
Projected benefit obligation	51	58
Less: fair value of plan assets	158	170
Funded status of plans	$ 107	$ 112

Postretirement Benefit Plans - Amounts Recognized in Other Comprehensive Income (Loss) Related to Postretirement Benefit Plans, Net of Tax (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial gains and losses - Incurred but Not Yet Recognized in Net Periodic Benefit Cost	$ (416)	$ (1,161)	$ (1,204)
Actuarial gains and losses - Recognition of Previously Deferred Amounts	1,455	1,030	938
Net prior service credit and cost - Incurred but Not Yet Recognized in Net Periodic Benefit Cost	(85)	(219)	(28)
Incurred but Not Yet Recognized in Net Periodic Benefit Cost	(501)	(1,380)	(1,232)
Net prior service credit and cost - Recognition of Previously Deferred Amounts	(253)	(228)	(230)
Recognition of Previously Deferred Amounts	1,202	802	708
Reclassifications from divestiture of IS&GS business	0	0	(134)
Discontinued Operations \| Information Systems & Global Solutions
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net prior service credit and cost - Recognition of Previously Deferred Amounts			(9)
Reclassifications from divestiture of IS&GS business			134
Qualified Defined Benefit Pension Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial gains and losses - Incurred but Not Yet Recognized in Net Periodic Benefit Cost	(570)	(1,172)	(1,236)
Actuarial gains and losses - Recognition of Previously Deferred Amounts	1,396	974	879
Net prior service credit and cost - Incurred but Not Yet Recognized in Net Periodic Benefit Cost	(6)	(219)	(54)
Net prior service credit and cost - Recognition of Previously Deferred Amounts	(255)	(229)	(235)
Retiree Medical and Life Insurance Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial gains and losses - Incurred but Not Yet Recognized in Net Periodic Benefit Cost	71	77	94
Actuarial gains and losses - Recognition of Previously Deferred Amounts	4	12	22
Net prior service credit and cost - Incurred but Not Yet Recognized in Net Periodic Benefit Cost	(79)	0	27
Net prior service credit and cost - Recognition of Previously Deferred Amounts	12	10	14
Other plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial gains and losses - Incurred but Not Yet Recognized in Net Periodic Benefit Cost	83	(66)	(62)
Actuarial gains and losses - Recognition of Previously Deferred Amounts	55	44	37
Net prior service credit and cost - Incurred but Not Yet Recognized in Net Periodic Benefit Cost	0	0	(1)
Net prior service credit and cost - Recognition of Previously Deferred Amounts	$ (10)	$ (9)	$ (9)

Postretirement Benefit Plans - Actuarial Assumptions Used to Determine Net Periodic Benefit Cost (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Rate of increase in future compensation levels (for applicable bargained pension plans)	4.50%	4.50%	4.50%
Qualified Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Weighted average discount rate	4.25%	3.625%	4.125%
Expected long-term rate of return on assets	7.00%	7.50%	7.50%
Retiree Medical and Life Insurance Plans
Defined Benefit Plan Disclosure [Line Items]
Weighted average discount rate	4.25%	3.625%	4.00%
Expected long-term rate of return on assets	7.00%	7.50%	7.50%
Health care trend rate assumed for next year	8.25%	8.50%	8.75%
Ultimate health care trend rate	5.00%	5.00%	5.00%
Year that the ultimate health care trend rate is reached	2032	2032	2032

Postretirement Benefit Plans - Asset Allocations of Postretirement Benefit Plans (Detail)	Dec. 31, 2018
Minimum \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	0.00%
Minimum \| Equity
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	15.00%
Minimum \| Fixed income
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	10.00%
Minimum \| Private equity funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	0.00%
Minimum \| Real estate funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	0.00%
Minimum \| Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	0.00%
Minimum \| Commodities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	0.00%
Maximum \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	20.00%
Maximum \| Equity
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	65.00%
Maximum \| Fixed income
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	60.00%
Maximum \| Private equity funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	15.00%
Maximum \| Real estate funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	10.00%
Maximum \| Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	20.00%
Maximum \| Commodities
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	15.00%

Postretirement Benefit Plans - Estimated Future Benefit Payments (Detail) $ in Millions	Dec. 31, 2018 USD ($)
Qualified Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Contributions expected to made by employer in 2018	$ 5,000
Expected Future Benefit Payment [Abstract]
Payments in 2019	2,350
Payments in 2020	2,390
Payments in 2021	2,470
Payments in 2022	2,550
Payments in 2023	2,610
Payments in 2024 - 2028	13,670
Retiree Medical and Life Insurance Plans
Expected Future Benefit Payment [Abstract]
Payments in 2019	170
Payments in 2020	180
Payments in 2021	180
Payments in 2022	180
Payments in 2023	170
Payments in 2024 - 2028	$ 810

Postretirement Benefit Plans - Defined Contribution Plan (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Contributions made to defined contribution plans	$ 658	$ 613	$ 617
Shares of our stock held in defined contribution plans we sponsor (in shares)	33.3	35.5

Stockholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended												12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2016	Sep. 25, 2016	Jun. 26, 2016	Mar. 27, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 27, 2018
Shareholders Equity [Line Items]
Common stock, shares authorized	1,500,000,000.0				1,500,000,000.0								1,500,000,000.0	1,500,000,000.0
Preferred stock, shares authorized	50,000,000				50,000,000								50,000,000	50,000,000
Common stock, shares issued and outstanding	283,000,000				285,000,000								283,000,000	285,000,000
Common Stock, value issued	$ 281,000,000				$ 284,000,000								$ 281,000,000	$ 284,000,000
Preferred stock, shares issued	0				0								0	0
Preferred stock, shares outstanding	0				0								0	0
Number of shares of common stock repurchased with cash													4,700,000	7,100,000	8,900,000
Cash paid for repurchases of common stock													$ 1,492,000,000	$ 2,001,000,000	$ 2,096,000,000
Additional share repurchase program authorized amount																$ 1,000,000,000
Remaining authorized repurchase amount under share repurchase program	$ 3,000,000,000												$ 3,000,000,000
Common stock, par value (in USD per share)	$ 1				$ 1								$ 1	$ 1
Additional paid-in capital	$ 0				$ 0								$ 0	$ 0		$ 0
Reduction to stockholder's equity due to repurchases of common stock													1,492,000,000	2,001,000,000	2,096,000,000
Dividends paid													$ 2,347,000,000	$ 2,163,000,000	$ 2,048,000,000
Common stock dividends per share paid (in dollars per share)	$ 2.2	$ 2.00	$ 2	$ 2.00	$ 2.00	$ 1.82	$ 1.82	$ 1.82	$ 1.82	$ 1.65	$ 1.65	$ 1.65	$ 8.20	$ 7.46	$ 6.77
Retained Earnings
Shareholders Equity [Line Items]
Reduction to stockholder's equity due to repurchases of common stock													$ 1,083,000,000	$ 1,596,000,000	$ 1,692,000,000

Stockholders' Equity - Changes in Balance of Accumulated Other Comprehensive Loss, Net of Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ (776)	$ 1,477	$ 3,097
Other comprehensive (loss) income before reclassifications	(606)	(1,260)	(1,232)
Amounts reclassified from AOCL
Amounts reclassified from AOCL	1,232	823	574
Other comprehensive income (loss), net of tax	626	(437)	(658)
Reclassification of income tax effects from tax reform	2,400
Ending Balance	1,449	(776)	1,477
Postretirement Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(12,559)	(11,981)	(11,314)
Other comprehensive (loss) income before reclassifications	(501)	(1,380)	(1,232)
Amounts reclassified from AOCL
Amounts reclassified from AOCL	1,202	802	565
Other comprehensive income (loss), net of tax	701	(578)	(667)
Reclassification of income tax effects from tax reform	(2,396)
Ending Balance	(14,254)	(12,559)	(11,981)
AOCI related to postretirement benefit plans, tax benefit	3,900	6,500	6,500
Other, net
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	20	(121)	(130)
Other comprehensive (loss) income before reclassifications	(105)	120	0
Amounts reclassified from AOCL
Amounts reclassified from AOCL	30	21	9
Other comprehensive income (loss), net of tax	(75)	141	9
Reclassification of income tax effects from tax reform	(12)
Ending Balance	(67)	20	(121)
AOCL
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(12,539)	(12,102)	(11,444)
Amounts reclassified from AOCL
Other comprehensive income (loss), net of tax	626	(437)	(658)
Reclassification of income tax effects from tax reform	(2,408)
Ending Balance	(14,321)	(12,539)	(12,102)
Recognition of net actuarial losses
Amounts reclassified from AOCL
Amounts reclassified from AOCL	1,455	1,030	938
Amortization of net prior service credits
Amounts reclassified from AOCL
Amounts reclassified from AOCL	(253)	(228)	(239)
Recognition of net prior service credits from divestiture of IS&GS segment
Amounts reclassified from AOCL
Amounts reclassified from AOCL			(134)
Other
Amounts reclassified from AOCL
Amounts reclassified from AOCL	$ 30	$ 21	$ 9

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, net of tax	$ 137	$ 103	$ 97
Unrecognized compensation cost	$ 101
Period over which unrecognized compensation costs are expected to be recognized (years)	1 year 9 months 18 days
Realized tax benefits from stock-based compensation activities	$ 75	$ 203	219
Weighted average remaining contractual life, vested	3 years
Number of years over which equity awards expire	10 years
Number of shares authorized (in shares)	9,000
Shares reserved for issuance (in shares)	5,000
Number of years over which equity awards vest	3 years
Number of stock options, outstanding (in shares)	1,800	2,200
Weighted average exercise price, outstanding (in dollars per share)	$ 79.76	$ 82.71
Weighted average remaining contractual life, outstanding	1 year 10 months 18 days
Aggregate intrinsic value, outstanding	$ 326
Number of stock options, vested (in shares)	400
Weighted average exercise price, vested (in dollars per share)	$ 94.63
Intrinsic value of all stock options exercised	$ 104	$ 139	172
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash received from exercise of stock options	$ 43	$ 71	$ 106
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock, granted (in shares)	406	519	679
Average grant date fair value per unit (in dollars per share)	$ 353.99	$ 254.58	$ 206.69
Number of years over which equity awards vest	3 years
Performance Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock, granted (in shares)	100
Number of years over which equity awards vest	3 years
Performance Stock Units (PSUs) \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of shares that can be earned from stock awards, as a percentage of the target award	0.00%
Performance Stock Units (PSUs) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of shares that can be earned from stock awards, as a percentage of the target award	200.00%
Performance Stock Units (PSUs) \| Half Of PSUs Granted In Period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average grant date fair value per unit (in dollars per share)	$ 354.60
Performance Stock Units (PSUs) \| Remaining Half Of PSUs Granted In Period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average grant date fair value per unit (in dollars per share)	$ 420.75
Segment Reconciling Items
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ (173)	$ (158)	$ (149)

Stock-Based Compensation - Summary of Stock Based Compensation Activity Related to Nonvested RSUs (Detail) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of RSUs (In thousands)
Beginning balance, in shares	651	788	1,236
Granted, in shares	406	519	679
Vested, in shares	(470)	(624)	(1,009)
Forfeited, in shares	(24)	(32)	(118)
Ending balance, in shares	563	651	788
Weighted Average Grant-Date Fair Value Per Share
Nonvested beginning balance, in dollars per share	$ 220.21	$ 183.00	$ 134.87
Granted, in dollars per share	353.99	254.58	206.69
Vested, in dollars per share	271.50	201.65	137.62
Forfeited, in dollars per share	282.07	223.23	203.65
Nonvested ending balance, in dollars per share	$ 271.23	$ 220.21	$ 183.00

Legal Proceedings, Commitments and Contingencies (Detail) $ in Millions			1 Months Ended	12 Months Ended
	Jul. 19, 2018 USD ($)	Aug. 16, 2016 USD ($)	Dec. 31, 2014	Dec. 31, 2018 USD ($) subsidiary	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	May 31, 2017 lawsuit	Apr. 24, 2009 USD ($)
Loss Contingencies [Line Items]
Damages sought by plaintiff	$ 52
Liabilities recorded relative to environmental matters				$ 864	$ 920
Environmental costs eligible for future recovery				$ 750	799
Time period environmental costs and recovery of environmental costs are projected over, years				20 years
Total rental expense under operating leases				$ 247	169	$ 202
Future minimum lease commitments, total				1,300
Future minimum lease commitments, due in 2019				305
Future minimum lease commitments, due in 2020				184
Future minimum lease commitments, due in 2021				147
Future minimum lease commitments, due in 2022				114
Future minimum lease commitments, due in 2023				88
Future minimum lease commitments, due in later years				459
Outstanding letters of credit, surety bonds, and third-party guarantees				3,600	3,300
Third-party guarantees outstanding				$ 850	$ 750
Percentage of total guarantees that relate to guarantees of contractual performance of joint ventures				65.00%	62.00%
Total equity method investment				$ 1,200	$ 1,400
United Launch Alliance
Loss Contingencies [Line Items]
Percentage of ownership interest in affiliated entity				50.00%
Total equity method investment				$ 687	$ 794
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
Sikorsky Aircraft Corporation
Loss Contingencies [Line Items]
Number of pending lawsuits \| lawsuit							2
Number of entities involved in litigation \| subsidiary				2
Leidos Holdings, Inc. [Member]
Loss Contingencies [Line Items]
Reserve transferred		$ 38
Indemnification percent, up to maximum reserve						100.00%
Maximum reserve				$ 64
Indemnification percent, in excess of maximum reserve						50.00%

Severance and Restructuring Charges (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Jun. 24, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Severance charges		$ 96	$ 0	$ 80
RMS
Restructuring Cost and Reserve [Line Items]
Severance and restructuring charges	$ 96
Severance and restructuring charges, net of tax	$ 76
Severance and restructuring charges (in dollars per share)	$ 0.26
Severance charges	$ 75
Aeronautics
Restructuring Cost and Reserve [Line Items]
Severance charges				$ 80
Operations Consolidation
Restructuring Cost and Reserve [Line Items]
Payments for restructuring		$ 33
Operations Consolidation \| RMS
Restructuring Cost and Reserve [Line Items]
Other restructuring costs	$ 21

Fair Value Measurements - Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Assets
Derivatives	$ 22	$ 23
Liabilities
Derivatives	61	106
Mutual funds
Assets
Fair value of investments measured on recurring basis	978	917
U.S. Government securities
Assets
Fair value of investments measured on recurring basis	105	116
Other securities
Assets
Fair value of investments measured on recurring basis	144	209
Level 1
Assets
Derivatives	0	0
Liabilities
Derivatives	0	0
Level 1 \| Mutual funds
Assets
Fair value of investments measured on recurring basis	978	917
Level 1 \| U.S. Government securities
Assets
Fair value of investments measured on recurring basis	0	0
Level 1 \| Other securities
Assets
Fair value of investments measured on recurring basis	28	39
Level 2
Assets
Derivatives	22	23
Liabilities
Derivatives	61	106
Level 2 \| Mutual funds
Assets
Fair value of investments measured on recurring basis	0	0
Level 2 \| U.S. Government securities
Assets
Fair value of investments measured on recurring basis	105	116
Level 2 \| Other securities
Assets
Fair value of investments measured on recurring basis	116	170
NAV \| Other commingled funds
Liabilities
Alternative Investment	$ 18	$ 19

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Estimated fair values of debt instruments	$ 15,400	$ 16,800
Outstanding principal amount of debt instruments	15,312	15,498
Unamortized discounts and issuance costs	$ 1,208	$ 1,235

Summary of Quarterly Information (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 24, 2018	Mar. 25, 2018	Dec. 31, 2017	Sep. 24, 2017	Jun. 25, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 14,411	$ 14,318	$ 13,398	$ 11,635	$ 13,844	$ 12,341	$ 12,563	$ 11,212	$ 53,762	$ 49,960	$ 47,290
Operating profit	1,851	1,963	1,795	1,725	1,949	1,677	1,716	1,402	7,334	6,744	5,888
Net earnings (loss) from continuing operations					(817)	963	955	789	5,046	1,890	3,661
Net earnings from discontinued operations					73	0	0	0	0	73	1,512
Net earnings	$ 1,253	$ 1,473	$ 1,163	$ 1,157	$ (744)	$ 963	$ 955	$ 789	$ 5,046	$ 1,963	$ 5,173
Earnings (loss) per common share from continuing operations:
Basic (in dollars per share)					$ (2.85)	$ 3.35	$ 3.31	$ 2.72	$ 17.74	$ 6.56	$ 12.23
Diluted (in dollars per share)					(2.85)	3.32	3.28	2.69	17.59	6.50	12.08
Earnings per common share from discontinued operations:
Basic (in dollars per share)					0.25	0.00	0.00	0.00	0.00	0.26	5.05
Diluted (in dollars per share)					0.25	0.00	0.00	0.00	0.00	0.25	4.99
Basic earnings (loss) per common share (in dollars per share)	$ 4.43	$ 5.18	$ 4.08	$ 4.05	(2.60)	3.35	3.31	2.72	17.74	6.82	17.28
Diluted earnings (loss) per common share (in dollars per share)	$ 4.39	$ 5.14	$ 4.05	$ 4.02	$ (2.60)	$ 3.32	$ 3.28	$ 2.69	$ 17.59	$ 6.75	$ 17.07

Summary of Quarterly Information (Unaudited) - Additional Information Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended				12 Months Ended
	Aug. 16, 2016	Dec. 31, 2018	Jun. 24, 2018	Dec. 31, 2017	Mar. 26, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information [Line Items]
Remeasurement of deferred tax asset				$ 2,000
Effect of tax cut on earnings per share (in dollars per share)				$ 6.88			$ 6.77
Gain on property sale						$ 0	$ 198	$ 0
Net gain on divestiture of business segment						$ 0	73	1,201
Information Systems & Global Solutions
Quarterly Financial Information [Line Items]
Net gain on divestiture of business segment	$ 1,300							$ 1,200
Land
Quarterly Financial Information [Line Items]
Gain on property sale				$ 198			198
Gain on property sale, after tax				$ 122			$ 122
Gain on property sale per share, after tax (in dollars per share)				$ 0.43			$ 0.42
AMMROC
Quarterly Financial Information [Line Items]
Equity method investee impairment		$ 110			$ 64
Increase in net earnings due to profit rate adjustments		$ 83			$ 40
Increase in diluted earnings per common share due to profit rate adjustments (in dollars per share)		$ 0.29			$ 0.14
RMS
Quarterly Financial Information [Line Items]
Severance and restructuring charges			$ 96
Severance and restructuring charges, net of tax			$ 76
Severance and restructuring charges (in dollars per share)			$ 0.26
EADGE-T
Quarterly Financial Information [Line Items]
Contract loss incurred, gross					$ 120
Contract loss incurred, after tax					$ 74
Contract loss incurred, after tax (in dollars per share)					$ 0.25
Discontinued Operations, Disposed of by Sale \| Information Systems & Global Solutions
Quarterly Financial Information [Line Items]
Net gain on divestiture of business segment				$ 73

Postretirement Benefit Plans - Qualified Defined Benefit Pension Plans and Retiree Medical and Life Insurance Plans by Asset Category (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	$ 33,646	$ 34,978
Receivables, net
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	72	68
Investments measured at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	26,442	28,080
Investments measured at fair value \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	1,727	1,419
Investments measured at fair value \| U.S. equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	3,936	4,922
Investments measured at fair value \| International equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	5,406	5,370
Investments measured at fair value \| Commingled equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	3,587	4,453
Investments measured at fair value \| Corporate debt securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	4,890	4,910
Investments measured at fair value \| U.S. Government securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	3,399	3,775
Investments measured at fair value \| U.S. Government-sponsored enterprise securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	571	817
Investments measured at fair value \| Other fixed income investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	2,926	2,414
Investments measured at NAV
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	7,132	6,830
Investments measured at NAV \| Other fixed income investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	29	68
Investments measured at NAV \| Hedge funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	828	718
Investments measured at NAV \| Commingled equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	144	99
Investments measured at NAV \| Private equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	4,014	4,334
Investments measured at NAV \| Real estate funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	2,117	1,611
Level 1 \| Investments measured at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	12,490	13,172
Level 1 \| Investments measured at fair value \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	1,727	1,419
Level 1 \| Investments measured at fair value \| U.S. equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	3,927	4,905
Level 1 \| Investments measured at fair value \| International equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	5,400	5,355
Level 1 \| Investments measured at fair value \| Commingled equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	1,436	1,493
Level 1 \| Investments measured at fair value \| Corporate debt securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 1 \| Investments measured at fair value \| U.S. Government securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 1 \| Investments measured at fair value \| U.S. Government-sponsored enterprise securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 1 \| Investments measured at fair value \| Other fixed income investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 2 \| Investments measured at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	13,000	14,887
Level 2 \| Investments measured at fair value \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 2 \| Investments measured at fair value \| U.S. equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	3	14
Level 2 \| Investments measured at fair value \| International equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	13
Level 2 \| Investments measured at fair value \| Commingled equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	2,151	2,960
Level 2 \| Investments measured at fair value \| Corporate debt securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	4,888	4,905
Level 2 \| Investments measured at fair value \| U.S. Government securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	3,399	3,775
Level 2 \| Investments measured at fair value \| U.S. Government-sponsored enterprise securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	571	817
Level 2 \| Investments measured at fair value \| Other fixed income investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	1,988	2,403
Level 3 \| Investments measured at fair value
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	952	21
Level 3 \| Investments measured at fair value \| Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 3 \| Investments measured at fair value \| U.S. equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	6	3
Level 3 \| Investments measured at fair value \| International equity securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	6	2
Level 3 \| Investments measured at fair value \| Commingled equity funds
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 3 \| Investments measured at fair value \| Corporate debt securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	2	5
Level 3 \| Investments measured at fair value \| U.S. Government securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 3 \| Investments measured at fair value \| U.S. Government-sponsored enterprise securities
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	0	0
Level 3 \| Investments measured at fair value \| Other fixed income investments
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets at end of year	$ 938	$ 11