0000936468-19-000058 | 10-Q | XBRL Viewer

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Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2019 shares
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity File Number	1-11437
Entity Registrant Name	LOCKHEED MARTIN CORPORATION
Entity Address, State or Province	MD
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-1893632
Entity Address, Address Line One	6801 Rockledge Drive,
Entity Address, City or Town	Bethesda,
Entity Address, Postal Zip Code	20817
City Area Code	301
Local Phone Number	897-6000
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	LMT
Entity Central Index Key	0000936468
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding	282,397,501
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false

Consolidated Statements of Earnings - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Consolidated Statements of Earnings - USD ($) $ in Millions	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Total net sales	$ 14,427	$ 13,398	$ 28,763	$ 25,033
Total cost of sales	(12,434)	(11,645)	(24,582)	(21,622)
Severance and restructuring charges	0	(96)	0	(96)
Gross profit	1,993	1,753	4,181	3,411
Other income, net	15	42	110	109
Operating profit	2,008	1,795	4,291	3,520
Interest expense	(163)	(165)	(334)	(320)
Other non-operating expense, net	(162)	(210)	(329)	(420)
Earnings before income taxes	1,683	1,420	3,628	2,780
Income tax expense	(263)	(257)	(504)	(460)
Net earnings	$ 1,420	$ 1,163	$ 3,124	$ 2,320
Earnings per common share
Basic (in dollars per share)	$ 5.03	$ 4.08	$ 11.07	$ 8.13
Diluted (in dollars per share)	5.00	4.05	11.00	8.07
Cash dividends paid per common share (in dollars per share)	$ 2.20	$ 2.00	$ 4.40	$ 4.00
Products
Total net sales	$ 12,003	$ 11,150	$ 23,973	$ 20,912
Total cost of sales	(10,674)	(9,993)	(21,299)	(18,690)
Services
Total net sales	2,424	2,248	4,790	4,121
Total cost of sales	(2,194)	(1,967)	(4,241)	(3,656)
Other unallocated, net
Total cost of sales	$ 434	$ 411	$ 958	$ 820

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Statement of Comprehensive Income [Abstract]
Net earnings	$ 1,420	$ 1,163	$ 3,124	$ 2,320
Other comprehensive income, net of tax
Recognition of previously deferred postretirement benefit plan amounts	227	300	454	600
Other, net	28	(106)	28	(48)
Other comprehensive income, net of tax	255	194	482	552
Comprehensive income	$ 1,675	$ 1,357	$ 3,606	$ 2,872

- Definition

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

+ References + Details

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 1,167	$ 772
Receivables, net	2,546	2,444
Contract assets	10,388	9,472
Inventories	3,599	2,997
Other current assets	400	418
Total current assets	18,100	16,103
Property, plant and equipment, net	6,170	6,124
Goodwill	10,775	10,769
Intangible assets, net	3,351	3,494
Deferred income taxes	3,163	3,208
Other noncurrent assets	6,281	5,178
Total assets	47,840	44,876
Current liabilities
Accounts payable	2,611	2,402
Contract liabilities	6,766	6,491
Salaries, benefits and payroll taxes	2,077	2,122
Current maturities of long-term debt and commercial paper	900	1,500
Other current liabilities	2,778	1,883
Total current liabilities	15,132	14,398
Long-term debt, net	12,637	12,604
Accrued pension liabilities	11,426	11,410
Other postretirement benefit liabilities	688	704
Other noncurrent liabilities	5,061	4,311
Total liabilities	44,944	43,427
Stockholders’ equity
Common stock, $1 par value per share	281	281
Additional paid-in capital	0	0
Retained earnings	16,408	15,434
Accumulated other comprehensive loss	(13,839)	(14,321)
Total stockholders’ equity	2,850	1,394
Noncontrolling interests in subsidiary	46	55
Total equity	2,896	1,449
Total liabilities and equity	$ 47,840	$ 44,876

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1	$ 1

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018
Operating activities
Net earnings	$ 3,124	$ 2,320
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	565	566
Stock-based compensation	104	98
Gain on property sale	(51)	0
Severance and restructuring charges	0	96
Changes in assets and liabilities
Receivables, net	(102)	(217)
Contract assets	(916)	(1,289)
Inventories	(602)	(160)
Accounts payable	237	1,224
Contract liabilities	275	(615)
Postretirement benefit plans	552	(2,790)
Income taxes	112	928
Other, net	33	399
Net cash provided by operating activities	3,331	560
Investing activities
Capital expenditures	(533)	(480)
Other, net	25	151
Net cash used for investing activities	(508)	(329)
Financing activities
Dividends paid	(1,260)	(1,156)
Repurchases of common stock	(500)	(610)
Repayments of commercial paper, net	(600)	0
Other, net	(68)	(145)
Net cash used for financing activities	(2,428)	(1,911)
Net change in cash and cash equivalents	395	(1,680)
Cash and cash equivalents at beginning of period	772	2,861
Cash and cash equivalents at end of period	$ 1,167	$ 1,181

Consolidated Statements of Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total Stockholders’ Equity	Noncontrolling Interests in Subsidiary
Beginning Balance at Dec. 31, 2017	$ (776)	$ 284	$ 0	$ 11,405	$ (12,539)	$ (850)	$ 74
Increase (Decrease) in Stockholders' Equity
Net earnings	2,320			2,320		2,320
Other comprehensive income, net of tax	552				552	552
Repurchases of common stock	(623)	(2)	(161)	(460)		(623)
Dividends declared	(1,145)			(1,145)		(1,145)
Stock-based awards, ESOP activity and other	162	1	161			162
Reclassification of income tax effects from tax reform				2,408	(2,408)
Net decrease in noncontrolling interests in subsidiary	(11)						(11)
Ending Balance at Jun. 24, 2018	479	283	0	14,528	(14,395)	416	63
Beginning Balance at Mar. 25, 2018	(111)	284	0	14,123	(14,589)	(182)	71
Increase (Decrease) in Stockholders' Equity
Net earnings	1,163			1,163		1,163
Other comprehensive income, net of tax	194				194	194
Repurchases of common stock	(323)	(1)	(136)	(186)		(323)
Dividends declared	(572)			(572)		(572)
Stock-based awards, ESOP activity and other	136		136			136
Net decrease in noncontrolling interests in subsidiary	(8)						(8)
Ending Balance at Jun. 24, 2018	479	283	0	14,528	(14,395)	416	63
Beginning Balance at Dec. 31, 2018	1,449	281	0	15,434	(14,321)	1,394	55
Increase (Decrease) in Stockholders' Equity
Net earnings	3,124			3,124		3,124
Other comprehensive income, net of tax	482				482	482
Repurchases of common stock	(500)	(2)	(220)	(278)		(500)
Dividends declared	(1,872)			(1,872)		(1,872)
Stock-based awards, ESOP activity and other	222	2	220			222
Net decrease in noncontrolling interests in subsidiary	(9)						(9)
Ending Balance at Jun. 30, 2019	2,896	281	0	16,408	(13,839)	2,850	46
Beginning Balance at Mar. 31, 2019	2,522	281	0	16,278	(14,094)	2,465	57
Increase (Decrease) in Stockholders' Equity
Net earnings	1,420			1,420		1,420
Other comprehensive income, net of tax	255				255	255
Repurchases of common stock	(216)	(1)	(174)	(41)		(216)
Dividends declared	(1,249)			(1,249)		(1,249)
Stock-based awards, ESOP activity and other (in shares)		1
Stock-based awards, ESOP activity and other	175		174			175
Net decrease in noncontrolling interests in subsidiary	(11)						(11)
Ending Balance at Jun. 30, 2019	$ 2,896	$ 281	$ 0	$ 16,408	$ (13,839)	$ 2,850	$ 46

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION We prepared these consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these consolidated financial statements reflect all adjustments that are of a normal recurring nature necessary for a fair presentation of our results of operations, financial condition, and cash flows for the interim periods presented. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates. Significant estimates inherent in the preparation of our consolidated financial statements include, but are not limited to, accounting for sales and cost recognition, postretirement benefit plans, environmental receivables and liabilities, evaluation of goodwill and other assets for impairment, income taxes including deferred tax assets, fair value measurements and contingencies. The consolidated financial statements include the accounts of subsidiaries we control and variable interest entities if we are the primary beneficiary. We eliminate intercompany balances and transactions in consolidation. We close our books and records on the last Sunday of the calendar quarter, which was on June 30 for the second quarter of 2019 and June 24 for the second quarter of 2018, to align our financial closing with our business processes. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods as our fiscal year ends on December 31. We adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), effective January 1, 2019, using the optional transition method whereby we applied the new lease requirements under ASU 2016-02 through a cumulative-effect adjustment, which after completing our implementation analysis, resulted in no adjustment to our January 1, 2019 beginning retained earnings balance. Consequently, periods prior to January 1, 2019 are not restated for the adoption of ASU 2016-02. See “Note 6 – Leases” and “Note 12 – Recent Accounting Pronouncements” for more information regarding our adoption of this standard. Other than the changes in our accounting policies related to adoption of ASU 2016-02, we followed the accounting policies disclosed in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Form 10-K) filed with the SEC. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the full year or future periods. Unless otherwise noted, we present all per share amounts cited in these consolidated financial statements on a “per diluted share” basis. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2018 Form 10-K.

EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

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



	Quarters Ended		Six Months Ended
	June 30, 2019	June 24, 2018	June 30, 2019	June 24, 2018
Weighted average common shares outstanding for basic computations	282.2	285.0	282.3	285.2
Weighted average dilutive effect of equity awards	1.7	2.1	1.8	2.3
Weighted average common shares outstanding for diluted computations	283.9	287.1	284.1	287.5

We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per

common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units (RSUs) and performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method. There were no significant anti-dilutive equity awards during the quarters and six months ended June 30, 2019 or June 24, 2018.

INFORMATION ON BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

INFORMATION ON BUSINESS SEGMENTS

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

Net sales and operating profit of our business segments exclude intersegment sales, cost of sales, and profit as these activities are eliminated in consolidation. Business segment operating profit includes our share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of our business segments.

Business segment operating profit also excludes the FAS/CAS operating adjustment described below, a portion of corporate costs not considered allowable or allocable to contracts with the U.S. Government under the applicable U.S. government cost accounting standards (CAS) or federal acquisition regulations (FAR), and other items not considered part of management’s evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, environmental costs, stock-based compensation expense, retiree benefits, significant severance actions, significant asset impairments, gains or losses from significant divestitures, and other miscellaneous corporate activities.

Excluded items are included in the reconciling item “Unallocated items” between operating profit from our business segments and our consolidated operating profit. See “Note 11 – Other” for a discussion related to certain factors that may impact the comparability of net sales and operating profit of our business segments.

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



	Quarters Ended						Six Months Ended
	June 30, 2019			June 24, 2018			June 30, 2019			June 24, 2018
Net sales
Aeronautics	$	5,550		$	5,321		$	11,134		$	9,719
Missiles and Fire Control	2,411			2,085			4,761			3,762
Rotary and Mission Systems	3,768			3,566			7,530			6,789
Space	2,698			2,426			5,338			4,763
Total net sales	$	14,427		$	13,398		$	28,763		$	25,033
Operating profit
Aeronautics	$	592		$	572		$	1,177		$	1,046
Missiles and Fire Control	327			279			744			540
Rotary and Mission Systems	347			341			726			652
Space	288			274			622			538
Total business segment operating profit	1,554			1,466			3,269			2,776
Unallocated items
FAS/CAS operating adjustment ^(a)	512			451			1,024			902
Stock-based compensation	(67		)	(60		)	(104		)	(98		)
Severance and restructuring charges ^(b)	—			(96		)	—			(96		)
Other, net	9			34			102			36
Total unallocated items	454			329			1,022			744
Total consolidated operating profit	$	2,008		$	1,795		$	4,291		$	3,520
Intersegment sales
Aeronautics	$	47		$	27		$	89		$	52
Missiles and Fire Control	144			113			265			208
Rotary and Mission Systems	538			504			1,118			965
Space	85			48			153			93
Total intersegment sales	$	814		$	692		$	1,625		$	1,318


^(a)	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.

^(b)

Unallocated items for the quarter and six months ended June 24, 2018 include severance and restructuring charges totaling $96 million ($76 million, or $0.26 per share, after tax) associated with planned workforce reductions and the consolidation of certain operations at our RMS business segment. See “Note 11 – Other” (under the caption “Severance and Restructuring Charges”) for more information.

Our total net FAS/CAS pension adjustment for the quarters and six months ended June 30, 2019 and June 24, 2018, including the service and non-service cost components of FAS pension expense for our qualified defined benefit pension plans, were as follows (in millions):



	Quarters Ended						Six Months Ended
	June 30, 2019			June 24, 2018			June 30, 2019			June 24, 2018
Total FAS expense and CAS costs
FAS pension expense	$	(273	)	$	(357	)	$	(546	)	$	(713	)
Less: CAS pension cost	641			609			1,282			1,217
Net FAS/CAS pension adjustment	$	368		$	252		$	736		$	504

Service and non-service cost reconciliation
FAS pension service cost	$	(129	)	$	(158	)	$	(258	)	$	(315	)
Less: CAS pension cost	641			609			1,282			1,217
FAS/CAS operating adjustment	512			451			1,024			902
Non-operating FAS pension cost^(a)	(144		)	(199		)	(288		)	(398		)
Net FAS/CAS pension adjustment	$	368		$	252		$	736		$	504

^(a)

The non-service cost components of net periodic benefit cost relate only to our qualified defined benefit pension plans. In addition to the non-service cost components in the table above, we incurred similar costs for our other postretirement benefit plans of $27 million and $57 million for the quarter and six months ended June 30, 2019 and $16 million and $33 million for the quarter and six months ended June 24, 2018.

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

Net sales by products and services, contract type, customer, and geographic region were as follows (in millions):



	Quarter Ended June 30, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	4,740	$	1,963	$	3,023	$	2,277	$	12,003
Services	810		448		745		421		2,424
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by contract type
Fixed-price	$	4,040	$	1,444	$	2,526	$	535	$	8,545
Cost-reimbursable	1,510		967		1,242		2,163		5,882
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by customer
U.S. Government	$	3,476	$	1,900	$	2,675	$	2,332	$	10,383
International ^(a)	2,010		475		974		360		3,819
U.S. commercial and other	64		36		119		6		225
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by geographic region
United States	$	3,540	$	1,936	$	2,794	$	2,338	$	10,608
Asia Pacific	784		86		418		23		1,311
Europe	847		103		143		328		1,421
Middle East	335		272		247		9		863
Other	44		14		166		—		224
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427

	Six Months Ended June 30, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	9,536	$	3,879	$	6,082	$	4,476	$	23,973
Services	1,598		882		1,448		862		4,790
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by contract type
Fixed-price	$	8,210	$	2,979	$	5,145	$	1,058	$	17,392
Cost-reimbursable	2,924		1,782		2,385		4,280		11,371
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by customer
U.S. Government	$	6,911	$	3,533	$	5,350	$	4,568	$	20,362
International ^(a)	4,105		1,145		1,969		755		7,974
U.S. commercial and other	118		83		211		15		427
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by geographic region
United States	$	7,029	$	3,616	$	5,561	$	4,583	$	20,789
Asia Pacific	1,690		208		748		31		2,677
Europe	1,645		225		341		709		2,920
Middle East	672		685		532		15		1,904
Other	98		27		348		—		473
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763


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



	Quarter Ended June 24, 2018
	Aeronautics		MFC		RMS		Space			Total
Net sales
Products	$	4,511	$	1,709	$	2,904	$	2,026		$	11,150
Services	810		376		662		400			2,248
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by contract type
Fixed-price	$	3,906	$	1,395	$	2,450	$	460		$	8,211
Cost-reimbursable	1,415		690		1,116		1,966			5,187
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by customer
U.S. Government	$	3,444	$	1,502	$	2,608	$	2,070		$	9,624
International ^(a)	1,835		542		822		344			3,543
U.S. commercial and other	42		41		136		12			231
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by geographic region
United States	$	3,486	$	1,543	$	2,744	$	2,082		$	9,855
Asia Pacific	786		125		301		31			1,243
Europe	678		46		224		332			1,280
Middle East	320		364		143		(19		)	808
Other	51		7		154		—			212
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398

	Six Months Ended June 24, 2018
	Aeronautics		MFC		RMS		Space			Total
Net sales
Products	$	8,281	$	3,062	$	5,621	$	3,948		$	20,912
Services	1,438		700		1,168		815			4,121
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by contract type
Fixed-price	$	7,121	$	2,507	$	4,658	$	860		$	15,146
Cost-reimbursable	2,598		1,255		2,131		3,903			9,887
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by customer
U.S. Government	$	6,209	$	2,590	$	4,964	$	3,940		$	17,703
International ^(a)	3,412		1,096		1,603		800			6,911
U.S. commercial and other	98		76		222		23			419
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by geographic region
United States	$	6,307	$	2,666	$	5,186	$	3,963		$	18,122
Asia Pacific	1,540		223		625		54			2,442
Europe	1,186		115		379		758			2,438
Middle East	577		744		314		(12		)	1,623
Other	109		14		285		—			408
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033


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

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



	June 30, 2019		December 31, 2018
Assets
Aeronautics	$	9,750	$	8,435
Missiles and Fire Control	5,368		5,017
Rotary and Mission Systems	18,934		18,333
Space	5,912		5,445
Total business segment assets	39,964		37,230
Corporate assets ^(a)	7,876		7,646
Total assets	$	47,840	$	44,876


^(a)	Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans.

Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, multi-variant, stealth fighter aircraft. Net sales for the F-35 program represented approximately 26% of our total consolidated net sales for both the quarter and six months ended June 30, 2019 and 27% and 26% of our total consolidated net sales for the quarter and six months ended June 24, 2018.

CONTRACT ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

CONTRACT ASSETS AND LIABILITIES

Contract assets include unbilled amounts typically resulting from sales under contracts when the percentage-of-completion cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities include advance payments and billings in excess of revenue recognized. Contract assets and contract liabilities were as follows (in millions):



	June 30, 2019		December 31, 2018
Contract assets	$	10,388	$	9,472
Contract liabilities	6,766		6,491

Contract assets increased $916 million during the six months ended June 30, 2019, primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during the six months ended June 30, 2019 for which we have not yet billed our customers. There were no significant impairment losses related to our contract assets during the quarters and six months ended June 30, 2019 and June 24, 2018.

Contract liabilities increased $275 million during the six months ended June 30, 2019, primarily due to payments received in advance of our satisfaction or partial satisfaction of these performance obligations. During the quarter and six months ended June 30, 2019, we recognized $1.1 billion and $2.9 billion of our contract liabilities at December 31, 2018 as revenue. During the quarter and six months ended June 24, 2018, we recognized $731 million and $2.6 billion of our contract liabilities at December 31, 2017 as revenue.

INVENTORIES

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

INVENTORIES

Inventories consisted of the following (in millions):



	June 30, 2019		December 31, 2018
Materials, spares and supplies	$	452	$	446
Work-in-process	2,810		2,161
Finished goods	337		390
Total inventories	$	3,599	$	2,997

Costs incurred to fulfill a customer contract in advance of the contract being awarded are included in inventories as work-in-process if we determine that those costs relate directly to a customer contract or to an anticipated customer contract that we can specifically identify and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of sales consistent with the transfer of products and services to the customer upon the receipt of the anticipated contract. All other pre-contract costs, including start-up costs, are expensed as incurred. As of June 30, 2019 and December 31, 2018, $572 million and $443 million of pre-contract costs were included in inventory.

LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

We evaluate whether our contractual arrangements contain leases at the inception of such arrangements. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Substantially all of our leases are long-term operating leases with fixed payment terms. We do not have significant financing leases. Our right-of-use (ROU) operating lease assets represent our right to use an underlying asset for the lease term, and our operating lease liabilities represent our obligation to make lease payments. ROU operating lease assets are recorded in other noncurrent assets in our consolidated balance sheet. Operating lease liabilities are recorded in other current liabilities or other noncurrent liabilities in our consolidated balance sheet based on their contractual due dates.

Both the ROU operating lease asset and liability are recognized as of the lease commencement date at the present value of the lease payments over the lease term. Most of our leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate, which is determined using our credit rating and information available as of the commencement date. ROU operating lease assets include lease payments made at or before the lease commencement date and exclude lease incentives.

Our operating lease agreements may include options to extend the lease term or terminate it early. We include options to extend or terminate leases in the ROU operating lease asset and liability when it is reasonably certain we will exercise these options. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales on our consolidated statement of earnings.

We have operating lease arrangements with lease and non-lease components. The non-lease components in our arrangements are not significant when compared to the lease components. For all operating leases, we account for the lease and non-lease components as a single component. Additionally, for certain equipment leases, we apply a portfolio approach to recognize operating lease ROU assets and liabilities. We evaluate ROU assets for impairment consistent with our property, plant and equipment policy disclosure included in our 2018 Form 10‑K.

Generally, we enter into operating lease agreements for facilities, land and equipment. Our ROU operating lease assets were $971 million at June 30, 2019. Operating lease liabilities were $1.1 billion, of which $815 million were classified as noncurrent, at June 30, 2019. New ROU operating lease assets and liabilities entered into during the six months ended June 30, 2019 were $68 million. The weighted average remaining lease term and discount rate for our operating leases were approximately 9.0 years and 3.4% at June 30, 2019.

During the quarter and six months ended June 30, 2019, we recognized operating lease expense of $61 million and $120 million. During the quarter and six months ended June 24, 2018, we recognized operating lease expense of $60 million and $120 million. In addition, we made cash payments of $115 million for operating leases during the six months ended June 30, 2019, which are included in cash flows from operating activities in our consolidated statement of cash flows.

Future minimum lease commitments at June 30, 2019 were as follows (in millions):



	Total		Remainder of 2019		2020		2021		2022		2023		Thereafter
Operating leases	$	1,242	$	184	$	191	$	163	$	128	$	99	$	477
Less: imputed interest	$	174
Total	$	1,068

POSTRETIREMENT BENEFIT PLANS

6 Months Ended

Jun. 30, 2019

Retirement Benefits [Abstract]

POSTRETIREMENT BENEFIT PLANS

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



	Quarters Ended						Six Months Ended
	June 30, 2019			June 24, 2018			June 30, 2019			June 24, 2018
Qualified defined benefit pension plans
Service cost	$	129		$	158		$	258		$	315
Interest cost	451			435			903			870
Expected return on plan assets	(575		)	(598		)	(1,150		)	(1,197		)
Recognized net actuarial losses	351			444			702			888
Amortization of prior service credits	(83		)	(82		)	(167		)	(163		)
Total net periodic benefit cost	$	273		$	357		$	546		$	713
Retiree medical and life insurance plans
Service cost	$	3		$	4		$	7		$	9
Interest cost	24			23			48			46
Expected return on plan assets	(27		)	(33		)	(55		)	(67		)
Recognized net actuarial losses	—			1			1			2
Amortization of prior service costs	11			3			21			7
Total net periodic benefit cost (credit)	$	11		$	(2	)	$	22		$	(3	)

We record the service cost component of net periodic benefit cost as part of cost of sales and the non-service cost components of net periodic benefit cost as part of other non-operating expense, net in the consolidated statements of earnings.

The recognized net actuarial losses and amortization of prior service credits or costs in the table above, along with similar costs related to our other postretirement benefit plans ($9 million and $20 million for the quarter and six months ended June 30, 2019 and $15 million and $29 million for the quarter and six months ended June 24, 2018) were reclassified from accumulated other comprehensive loss (AOCL) and recorded as a component of net periodic benefit cost for the periods presented. These costs totaled $288 million ($227 million, net of tax) and $577 million ($454 million, net of tax) during the quarter and six months ended June 30, 2019 and $381 million ($300 million, net of tax) and $763 million ($600 million, net of tax) during the quarter and six months ended June 24, 2018 and were recorded on our consolidated statements of comprehensive income as an increase to other comprehensive income.

The funding of our qualified defined benefit pension plans is determined in accordance with the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006 (PPA), along with consideration of CAS and Internal Revenue Code rules. During the quarter and six months ended June 30, 2019, there were no contributions to our qualified defined benefit pension plans. During the quarter and six months ended June 24, 2018, we contributed $2.0 billion and $3.5 billion to our qualified defined benefit pension plans.

LEGAL PROCEEDINGS AND CONTINGENCIES	6 Months Ended
LEGAL PROCEEDINGS AND CONTINGENCIES	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS AND CONTINGENCIES	LEGAL PROCEEDINGS AND CONTINGENCIES We are a party to or have property subject to litigation and other proceedings that arise in the ordinary course of our business, including matters arising under provisions relating to the protection of the environment and are subject to contingencies related to certain businesses we previously owned. These types of matters could result in fines, penalties, cost reimbursements or contributions, compensatory or treble damages, or non-monetary sanctions or relief. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings described below, will have a material adverse effect on the corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. Although we cannot predict the outcome of legal or other proceedings with certainty, where there is at least a reasonable possibility that a loss may have been incurred, GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made. We follow a thorough process in which we seek to estimate the reasonably possible loss or range of loss, and only if we are unable to make such an estimate do we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. Legal Proceedings As a result of our acquisition of Sikorsky Aircraft Corporation (Sikorsky), we assumed the defense of and any potential liability for two civil False Claims Act lawsuits pending in the U.S. District Court for the Eastern District of Wisconsin. In October 2014, the U.S. Government filed a complaint in intervention in the first suit, which was brought by qui tam relator Mary Patzer, a former Derco Aerospace (Derco) employee. In May 2017, the U.S. Government filed a complaint in intervention in the second suit, which was brought by qui tam relator Peter Cimma, a former Sikorsky Support Services, Inc. (SSSI) employee. In November 2017, the Court consolidated the cases into a single action for discovery and trial. The U.S. Government alleges that Sikorsky and two of its wholly-owned subsidiaries, Derco and SSSI, violated the civil False Claims Act and the Truth in Negotiations Act in connection with a contract the U.S. Navy awarded to SSSI in June 2006 to support the Navy’s T-34 and T-44 fixed-wing turboprop training aircraft. SSSI subcontracted with Derco, primarily to procure and manage spare parts for the training aircraft. The U.S. Government contends that SSSI overbilled the Navy on the contract as the result of Derco’s use of prohibited cost-plus-percentage-of-cost pricing to add profit and overhead costs as a percentage of the price of the spare parts that Derco procured and then sold to SSSI. The U.S. Government also alleges that Derco’s claims to SSSI, SSSI’s claims to the Navy, and SSSI’s yearly Certificates of Final Indirect Costs from 2006 through 2012 were false and that SSSI submitted inaccurate cost or pricing data in violation of the Truth in Negotiations Act for a sole-sourced, follow-on “bridge” contract. The U.S. Government’s complaints assert common law claims for breach of contract and unjust enrichment. The U.S. Government further alleged violations of the Anti-Kickback Act and False Claims Act based on a monthly “chargeback,” through which SSSI billed Derco for the cost of certain SSSI personnel, allegedly in exchange for SSSI’s permitting a pricing arrangement that was “highly favorable” to Derco. On January 12, 2018, the Corporation filed a partial motion to dismiss intended to narrow the U.S. Government’s claims, including by seeking dismissal of the Anti-Kickback Act allegations. The Corporation also moved to dismiss Cimma as a party under the False Claims Act’s first-to-file rule, which permits only the first relator to recover in a pending case. The District Court granted these motions, in part, on July 20, 2018, dismissing the Government’s claims under the Anti-Kickback Act and dismissing Cimma as a party to the litigation. The U.S. Government seeks damages of approximately $52 million, subject to trebling, plus statutory penalties. We believe that we have legal and factual defenses to the U.S. Government’s remaining claims. Although we continue to evaluate our liability and exposure, we do not currently believe that it is probable that we will incur a material loss. If, contrary to our expectations, the U.S. Government prevails in this matter and proves damages at or near $52 million and is successful in having such damages trebled, the outcome could have an adverse effect on our results of operations in the period in which a liability is recognized and on our cash flows for the period in which any damages are paid. On February 8, 2019, the Department of Justice (DOJ) filed a complaint in the U.S. District Court for the Eastern District of Washington alleging, among other counts, civil False Claims Act and civil Anti-Kickback Act violations against Mission Support Alliance, LLC (MSA), Lockheed Martin, Lockheed Martin Services, Inc. (LMSI) and a current Lockheed Martin vice president. The dollar amount of damages sought is not specified but DOJ seeks treble damages with respect to the False Claims Act and penalties that are subject to doubling under the Anti-Kickback Act. The allegations relate primarily to information technology services performed by LMSI under a subcontract to MSA and the pricing by MSA and LMSI of those services as well as Lockheed Martin’s payment of standard incentive compensation to certain employees who were seconded to MSA, including the vice president. MSA is a joint venture that holds a prime contract to provide infrastructure support services at DOE’s Hanford facility. On April 23, 2019, the parties each filed partial motions to dismiss the U.S. Government’s False Claims Act and Anti-Kickback Act allegations. On August 16, 2016, we divested our former Information Systems & Global Solutions (IS&GS) business segment to Leidos Holdings, Inc. (Leidos) in a transaction that resulted in IS&GS, now known as Leidos Innovations Corporation (Leidos Innovations), becoming a wholly owned subsidiary of Leidos (the Transaction). In the Transaction, Leidos acquired IS&GS’ interest in MSA and the liabilities related to Lockheed Martin’s participation in MSA. Included within the liabilities assumed were those associated with this lawsuit. Lockheed Martin transferred to Leidos a reserve of approximately $38 million established by Lockheed Martin with respect to its potential liability and that of its affiliates and agreed to indemnify Leidos Innovations with respect to the liabilities assumed for damages to Leidos Innovations and an enumerated list of subsidiaries of Leidos Innovations for 100% of amounts in excess of this reserve up to $64 million and 50% of amounts in excess of $64 million. We cannot reasonably estimate our exposure at this time, but it is possible that a settlement by or judgment against any of the defendants could implicate Lockheed Martin’s indemnification obligations as described above. At present, in view of what we believe to be the strength of the defenses, our belief that Leidos assumed the liabilities, and our view of the structure of the indemnity, we do not believe it probable that we will incur a material loss and have not taken any reserve. On April 24, 2009, we filed a declaratory judgment action against the New York Metropolitan Transportation Authority and its Capital Construction Company (collectively, the MTA) asking the U.S. District Court for the Southern District of New York to find that the MTA is in material breach of our agreement based on the MTA’s failure to provide access to sites where work must be performed and the customer-furnished equipment necessary to complete the contract. The MTA filed an answer and counterclaim alleging that we breached the contract and subsequently terminated the contract for alleged default. The primary damages sought by the MTA are the costs to complete the contract and potential re-procurement costs. While we are unable to estimate the cost of another contractor to complete the contract and the costs of re-procurement, we note that our contract with the MTA had a total value of $323 million, of which $241 million was paid to us, and that the MTA is seeking damages of approximately $190 million. We dispute the MTA’s allegations and are defending against them. Additionally, following an investigation, our sureties on a performance bond related to this matter, who were represented by independent counsel, concluded that the MTA’s termination of the contract was improper. Finally, our declaratory judgment action was later amended to include claims for monetary damages against the MTA of approximately $95 million. This matter was taken under submission by the District Court in December 2014, after a five-week bench trial and the filing of post-trial pleadings by the parties. We continue to await a decision from the District Court. Although this matter relates to our former IS&GS business, we retained the litigation when we divested IS&GS in 2016. Environmental Matters We are involved in proceedings and potential proceedings relating to soil, sediment, surface water, and groundwater contamination, disposal of hazardous substances, and other environmental matters at several of our current or former facilities, facilities for which we may have contractual responsibility, and at third-party sites where we have been designated as a potentially responsible party (PRP). A substantial portion of environmental costs will be included in our net sales and cost of sales in future periods pursuant to U.S. Government regulations. At the time a liability is recorded for future environmental costs, we record a receivable for estimated future recovery considered probable through the pricing of products and services to agencies of the U.S. Government, regardless of the contract form (e.g., cost-reimbursable, fixed-price). We continually evaluate the recoverability of our environmental receivables by assessing, among other factors, U.S. Government regulations, our U.S. Government business base and contract mix, our history of receiving reimbursement of such costs, and efforts by some U.S. Government representatives to limit such reimbursement. We include the portions of those environmental costs expected to be allocated to our non-U.S. Government contracts, or determined not to be recoverable under U.S. Government contracts, in our cost of sales at the time the liability is established. At June 30, 2019, and December 31, 2018, the aggregate amount of liabilities recorded relative to environmental matters was $823 million and $864 million, most of which are recorded in other noncurrent liabilities on our consolidated balance sheets. We have recorded receivables totaling $715 million and $750 million at June 30, 2019 and December 31, 2018, most of which are recorded in other noncurrent assets on our consolidated balance sheets for the estimated future recovery of these costs, as we consider the recovery probable based on the factors previously mentioned. We project costs and recovery of costs over approximately 20 years. Environmental remediation activities usually span many years, which makes estimating liabilities a matter of judgment because of uncertainties with respect to assessing the extent of the contamination as well as such factors as changing remediation technologies and changing regulatory environmental standards. There are a number of former and present operating facilities that we are monitoring or investigating for potential future remediation. We perform quarterly reviews of the status of our environmental remediation sites and the related liabilities and receivables. Additionally, in our quarterly reviews, we consider these and other factors in estimating the timing and amount of any future costs that may be required for remediation activities, and record a liability when it is probable that a loss has occurred and the loss can be reasonably estimated. The amount of liability recorded is based on our estimate of the costs to be incurred for remediation at a particular site. We do not discount the recorded liabilities, as the amount and timing of future cash payments are not fixed or cannot be reliably determined. We reasonably cannot determine the extent of our financial exposure in all cases as, although a loss may be probable or reasonably possible, in some cases it is not possible at this time to estimate the loss or reasonably possible loss or range of loss. We also pursue claims for recovery of costs incurred or for contribution to site remediation costs against other PRPs, including the U.S. Government, and are conducting remediation activities under various consent decrees, orders, and agreements relating to soil, groundwater, sediment, or surface water contamination at certain sites of former or current operations. Under agreements related to certain sites in California 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 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 determined not to be recoverable under U.S. Government contracts would be expensed, which may have a material effect on our earnings in any particular interim reporting period. Letters of Credit, Surety Bonds and Third-Party Guarantees We have entered into standby letters of credit and surety bonds issued on our behalf by financial institutions, and we have directly issued guarantees to third parties primarily relating to advances received from customers and the guarantee of future performance on certain contracts. Letters of credit and surety bonds generally are available for draw down in the event we do not perform. In some cases, we may guarantee the contractual performance of third parties such as venture partners. We had total outstanding letters of credit, surety bonds, and third-party guarantees aggregating $3.5 billion and $3.6 billion at June 30, 2019 and December 31, 2018. Third-party guarantees do not include guarantees to subsidiaries and other consolidated entities. At June 30, 2019 and December 31, 2018, third-party guarantees totaled approximately $1.1 billion and $850 million, of which approximately 72% and 65% related to guarantees of contractual performance of ventures to which we currently are or previously were a party. This amount represents our estimate of the maximum amount we would expect to incur upon the contractual non-performance of the venture, venture partners or divested businesses. Generally, we also have cross-indemnities in place that may enable us to recover amounts that may be paid on behalf of a venture partner. In determining our exposures, we evaluate the reputation, performance on contractual obligations, technical capabilities and credit quality of our current and former venture partners and the transferee under novation agreements all of which include a guarantee as required by the FAR. There were no material amounts recorded in our financial statements related to third-party guarantees or novation agreements.

FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2019

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):



	June 30, 2019						December 31, 2018
	Total		Level 1		Level 2		Total		Level 1		Level 2
Assets
Mutual funds	$	1,031	$	1,031	$	—	$	978	$	978	$	—
U.S. Government securities	104		—		104		105		—		105
Other securities	244		113		131		144		28		116
Derivatives	26		—		26		22		—		22
Liabilities
Derivatives	49		—		49		61		—		61
Assets measured at NAV ^(a)
Other commingled funds	19						18


^(a)	Net Asset Value (NAV) is the total value of the fund divided by the number of the fund’s shares outstanding.

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

The derivatives outstanding at both June 30, 2019 and December 31, 2018 consist of foreign currency forward contracts, interest rate swaps and foreign currency related contract embedded derivatives. We use derivative instruments principally to reduce our exposure to market risks from changes in foreign currency exchange rates and interest rates. We do not enter into or hold derivative instruments for speculative trading purposes. We transact business globally and are subject to risks associated with changing foreign currency exchange rates. We enter into foreign currency hedges such as forward and option contracts that change in value as foreign currency exchange rates change. These contracts hedge forecasted foreign currency transactions in order to mitigate fluctuations in our earnings and cash flows associated with changes in foreign currency exchange rates. We designate foreign currency hedges as cash flow hedges. We also are exposed to the impact of interest rate changes primarily through our borrowing activities. For fixed rate borrowings, we may use variable interest rate swaps, effectively converting fixed rate borrowings to variable rate borrowings, in order to reduce the amount of interest paid. These swaps are designated as fair value hedges. For variable rate borrowings, we may use fixed interest rate swaps, effectively converting variable rate borrowings to fixed rate borrowings, in order to mitigate the impact of interest rate changes on earnings. These swaps are designated as cash flow hedges. We also may enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting, which are intended to mitigate certain economic exposures.

The aggregate notional amount of our outstanding interest rate swaps at both June 30, 2019 and December 31, 2018 was $1.3 billion. The aggregate notional amount of our outstanding foreign currency hedges at June 30, 2019 and December 31, 2018 was $3.9 billion and $3.5 billion. The fair values of our outstanding interest rate swaps and foreign currency hedges at June 30, 2019 and December 31, 2018 were not significant. Derivative instruments did not have a material impact on net earnings and comprehensive income during the quarters and six months ended June 30, 2019 and June 24, 2018. Substantially all of our derivatives are designated for hedge accounting.

In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, receivables, accounts payable and debt and commercial paper. The carrying amounts for cash and cash equivalents, receivables and accounts payable approximated their fair values. The estimated fair value of our outstanding debt was $16.4 billion and the outstanding principal amount was $14.7 billion at June 30, 2019, excluding unamortized discounts and issuance costs of $1.2 billion. The estimated fair value of our outstanding debt and commercial paper was $15.4 billion and the outstanding principal amount was $15.3 billion at December 31, 2018, excluding unamortized discounts and issuance costs of $1.2 billion. The estimated fair values of our outstanding debt and commercial paper were determined based on observable inputs (Level 2).

STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Repurchases of Common Stock

During the six months ended June 30, 2019, we repurchased 1.6 million shares of our common stock for $500 million. The total remaining authorization for future common share repurchases under our share repurchase program was $2.5 billion as of June 30, 2019. As we repurchase our common shares, we reduce common stock for the $1 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. Due to the volume of repurchases and the prices at which these were made, additional paid-in capital was reduced to zero, with the remainder of the excess purchase price over par value of $278 million and $460 million recorded as a reduction to retained earnings during the six months ended June 30, 2019 and June 24, 2018.

Dividends

We declared cash dividends totaling $1.2 billion ($4.40 per share) and $1.9 billion ($6.60 per share) during the quarter and six months ended June 30, 2019. The 2019 dividend amounts include the declaration of our 2019 third quarter dividend totaling $624 million ($2.20 per share), which will be paid in September 2019. We declared cash dividends totaling $572 million ($2.00 per share) and $1.1 billion ($4.00 per share) during the quarter and six months ended June 24, 2018.

Restricted Stock Unit Grants

During the six months ended June 30, 2019, we granted certain employees approximately 0.6 million RSUs with a grant date fair value of $303.96 per RSU. The grant date fair value of these RSUs is equal to the closing market price of our common stock on the grant date less a discount to reflect the delay in payment of dividend-equivalent cash payments that are made only upon vesting, which is generally three years from the grant date. We recognize the grant date fair value of RSUs, less estimated forfeitures, as compensation expense ratably over the requisite service period, which is shorter than the vesting period if the employee is retirement eligible on the date of grant or will become retirement eligible before the end of the vesting period.

Accumulated Other Comprehensive Loss

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



	Postretirement Benefit Plans			Other, net			AOCL
Balance at December 31, 2018	$	(14,254	)	$	(67	)	$	(14,321	)
Other comprehensive income before reclassifications	—			13			13
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	574			—			574
Amortization of net prior service credits ^(a)	(120		)	—			(120		)
Other	—			15			15
Total reclassified from AOCL	454			15			469
Total other comprehensive income	454			28			482
Balance at June 30, 2019	$	(13,800	)	$	(39	)	$	(13,839	)

Balance at December 31, 2017	$	(12,559	)	$	20		$	(12,539	)
Other comprehensive loss before reclassifications	—			(62		)	(62		)
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	728			—			728
Amortization of net prior service credits ^(a)	(128		)	—			(128		)
Other	—			14			14
Total reclassified from AOCL	600			14			614
Total other comprehensive income (loss)	600			(48		)	552
Reclassification of income tax effects from tax reform^(b)	(2,396		)	(12		)	(2,408		)
Balance at June 24, 2018	$	(14,355	)	$	(40	)	$	(14,395	)

^(a)

Reclassifications from AOCL related to our postretirement benefit plans were recorded as a component of net periodic benefit cost for each period presented (see “Note 7 – Postretirement Benefit Plans”). These amounts include $227 million and $300 million, net of tax, for the quarters ended June 30, 2019 and June 24, 2018, which are comprised of the recognition of net actuarial losses of $287 million and $364 million for the quarters ended June 30, 2019 and June 24, 2018 and the amortization of net prior service credits of $(60) million and $(64) million for the quarters ended June 30, 2019 and June 24, 2018.

^(b)

Upon adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) during the first quarter of 2018, we reclassified the impact of the income tax effects related to the Tax Cuts and Jobs Act (the Tax Act) from AOCL to retained earnings by the same amount with zero impact to total equity.

OTHER	6 Months Ended
OTHER	Jun. 30, 2019
Accounting Policies [Abstract]
OTHER	OTHER Changes in Estimates Significant estimates and assumptions are made in estimating contract sales and costs, including the profit booking rate. At the outset of a long-term contract, we identify and monitor risks to the achievement of the technical, schedule and cost aspects of the contract, as well as variable consideration, and assess the effects of those risks on our estimates of sales and total costs to complete the contract. The estimates consider the technical requirements (e.g., a newly-developed product versus a mature product), the schedule and associated tasks (e.g., the number and type of milestone events) and costs (e.g., material, labor, subcontractor, overhead, general and administrative and the estimated costs to fulfill our industrial cooperation agreements, sometimes referred to as offset or localization agreements, required under certain contracts with international customers). The initial profit booking rate of each contract considers risks surrounding the ability to achieve the technical requirements, schedule and costs in the initial estimated total costs to complete the contract. Profit booking rates may increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule and cost aspects of the contract, which decreases the estimated total costs to complete the contract or may increase the variable consideration we expect to receive on the contract. Conversely, our profit booking rates may decrease if the estimated total costs to complete the contract increase or our estimates of variable consideration we expect to receive decrease. All of the estimates are subject to change during the performance of the contract and may affect the profit booking rate. When estimates of total costs to be incurred on a contract exceed total estimates of the transaction price, a provision for the entire loss is determined at the contract level and is recorded in the period in which the loss is determined. Comparability of our segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on our contracts for which we recognize revenue over time using the percentage-of-completion cost-to-cost method to measure progress towards completion. Increases in the profit booking rates, typically referred to as risk retirements, usually relate to revisions in the estimated total costs to fulfill the performance obligations that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to fulfill the performance obligations and a reduction in the profit booking rate. Increases or decreases in profit booking rates are recognized in the current period and reflect the inception-to-date effect of such changes. Segment operating profit and margin may also be impacted favorably or unfavorably by other items, which may or may not impact sales. Favorable items may include the positive resolution of contractual matters, cost recoveries on severance and restructuring charges, insurance recoveries and gains on sales of assets. Unfavorable items may include the adverse resolution of contractual matters; restructuring charges, except for significant severance actions, which are excluded from segment operating results; reserves for disputes; certain asset impairments; and losses on sales of certain assets. Our consolidated net adjustments not related to volume, including net profit booking rate adjustments and other matters, increased segment operating profit by approximately $420 million and $985 million during the quarter and six months ended June 30, 2019 and $465 million and $885 million during the quarter and six months ended June 24, 2018. These adjustments increased net earnings by approximately $332 million ($1.17 per share) and $778 million ($2.74 per share) during the quarter and six months ended June 30, 2019 and $367 million ($1.28 per share) and $699 million ($2.43 per share) during the quarter and six months ended June 24, 2018. We recognized net sales from performance obligations satisfied in prior periods of approximately $560 million and $1.2 billion during the quarter and six months ended June 30, 2019 and $540 million and $955 million during the quarter and six months ended June 24, 2018, which primarily relate to changes in profit booking rates that impacted revenue. As previously disclosed, we are responsible for a program to design, develop and construct a ground-based radar at our RMS business segment. The program has experienced performance issues for which we have periodically accrued reserves. As of June 30, 2019, cumulative losses remained at approximately $195 million on this program. We may continue to experience issues related to customer requirements and our performance under this contract and have to record additional charges. However, based on the losses previously recorded and our current estimate of the sales and costs to complete the program, at this time we do not anticipate that additional losses, if any, would be material to our operating results or financial condition. As previously disclosed in our 2018 Form 10-K, we have two commercial satellite programs 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 are for the delivery of three satellites in total, including one that launched in February 2019 and one that launched in April 2019. We have periodically revised our estimated costs to complete these developmental commercial programs. As of June 30, 2019, cumulative losses remained at approximately $410 million for these programs. While these losses reflect our estimated total losses on the programs, we will continue to incur unrecoverable general and administrative costs each period until we complete the contract for the third satellite. While we have launched two satellites from one program, the third satellite remains 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 penalties could require that we record additional loss reserves, which could be material to our operating results. We are late to the contract delivery schedule for the third satellite. If we are not able to deliver the third satellite by the contract termination date, the customer could seek to exercise a termination right under the contract, in which case we would have to refund the payments we have received and pay certain penalties. However, we believe that it is not probable that the customer will seek to exercise any termination rights. As previously disclosed in our 2018 Form 10-K, we are responsible for designing, developing and installing an upgraded turret for the Warrior Capability Sustainment Program at our MFC business segment. As of June 30, 2019, cumulative losses remained at approximately $140 million. We may continue to experience issues related to customer requirements and our performance under this contract and have to record additional reserves. However, based on the losses already recorded and our current estimate of the sales and costs to complete the program, at this time we do not anticipate that additional losses, if any, would be material to our operating results or financial condition. Backlog Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not yet transferred to the customer. For our cost-reimbursable and fixed-priced-incentive contracts, the estimated consideration we expect to receive pursuant to the terms of the contract may exceed the contractual award amount. The estimated consideration is determined at the outset of the contract and is continuously reviewed throughout the contract period. In determining the estimated consideration, we consider the risks related to the technical, schedule and cost impacts to complete the contract and an estimate of any variable consideration. Periodically, we review these risks and may increase or decrease backlog accordingly. As the risks on such contracts are successfully retired, the estimated consideration from customers may be reduced, resulting in a reduction of backlog without a corresponding recognition of sales. As of June 30, 2019, our ending backlog was $136.7 billion. We expect to recognize approximately 38% of our backlog over the next 12 months and approximately 65% over the next 24 months as revenue, with the remainder recognized thereafter. Severance and Restructuring Charges During the second quarter of 2018, we recorded charges totaling $96 million ($76 million, or $0.26 per share, after tax) related to certain severance and restructuring actions at our RMS business segment. 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. As of June 30, 2019, we have paid approximately $59 million in severance payments associated with these actions. Income Taxes Our effective income tax rates were 15.6% and 13.9% for the quarter and six months ended June 30, 2019, and 18.1% and 16.5% for the quarter and six months ended June 24, 2018. The rates for the quarter and six months ended June 30, 2019 benefited from additional tax deductions based on proposed tax regulations released on March 4, 2019, which clarified that FMS sales qualify for foreign derived intangible income treatment. Approximately $65 million, or $0.23 per share, of this benefit was recorded discretely during the first quarter of 2019 because it related to the prior year. The rates for all periods benefited from tax deductions for dividends paid to our defined contribution plans with an employee stock ownership plan feature, tax deductions for foreign derived intangible income related to commercial sales, tax deductions for employee equity awards, and the research and development tax credit. Sale of Customer Receivables On occasion, our customers may seek deferred payment terms to purchase our products. In connection with these transactions, we may, at our customer’s request, enter into arrangements for the non-recourse sale of customer receivables to unrelated third–party financial institutions. For accounting purposes, these transactions are not discounted and are treated as a sale of receivables as we have no continuing involvement. The sale proceeds from the financial institutions are reflected in our operating cash flows on the statement of cash flows. We sold customer receivables of $96 million and $200 million during the quarter and six months ended June 30, 2019 and $124 million and $227 million during the quarter and six months ended June 24, 2018. There were no gains or losses related to sales of these receivables.

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Effective January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842), as amended, which requires lessees to recognize a ROU asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements, among other items. We adopted ASU 2016-02 using the optional transition method whereby we applied the new lease requirements under ASU 2016-02 through a cumulative-effect adjustment, which after completing our implementation analysis, resulted in no adjustment to our January 1, 2019 beginning retained earnings balance. On January 1, 2019, we recognized approximately $1.0 billion of ROU operating lease assets and approximately $1.1 billion of operating lease liabilities, including noncurrent operating lease liabilities of approximately $830 million, as a result of adopting this standard. The difference between ROU operating lease assets and operating lease liabilities was primarily due to previously accrued rent expense relating to periods prior to January 1, 2019. As part of our adoption, we elected the package of practical expedients, which among other things, permits the carry forward of historical lease classifications. We did not elect to use the practical expedient permitting the use of hindsight in determining the lease term and in assessing impairment of our ROU assets. The adoption of the standard did not have a material impact on our operating results or cash flows. The comparative periods have not been restated for the adoption of ASU 2016-02. Effective January 1, 2019, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815), which among other things, eliminates the requirement to separately measure and report hedge ineffectiveness. The adoption of this standard did not have a significant impact on our operating results, financial position or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements For Defined Benefit Plans. The new standard modifies the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The guidance is effective for our fiscal year ending December 31, 2020 and requires disclosure changes to be presented on a retrospective basis. As this standard relates only to financial disclosures, we do not expect an impact to our operating results, financial position or cash flows as a result of adopting this new standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires companies to record an allowance for expected credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets. We will adopt the new standard effective January 1, 2020. We do not expect a significant impact to our operating results, financial position or cash flows as a result of adopting this new standard.

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract]
EARNINGS PER COMMON SHARE	We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units (RSUs) and performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method.
INVENTORY COSTS FOR CONTRACTS	Costs incurred to fulfill a customer contract in advance of the contract being awarded are included in inventories as work-in-process if we determine that those costs relate directly to a customer contract or to an anticipated customer contract that we can specifically identify and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of sales consistent with the transfer of products and services to the customer upon the receipt of the anticipated contract. All other pre-contract costs, including start-up costs, are expensed as incurred.
LEASES	We evaluate whether our contractual arrangements contain leases at the inception of such arrangements. Specifically, we consider whether we can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Substantially all of our leases are long-term operating leases with fixed payment terms. We do not have significant financing leases. Our right-of-use (ROU) operating lease assets represent our right to use an underlying asset for the lease term, and our operating lease liabilities represent our obligation to make lease payments. ROU operating lease assets are recorded in other noncurrent assets in our consolidated balance sheet. Operating lease liabilities are recorded in other current liabilities or other noncurrent liabilities in our consolidated balance sheet based on their contractual due dates. Both the ROU operating lease asset and liability are recognized as of the lease commencement date at the present value of the lease payments over the lease term. Most of our leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate, which is determined using our credit rating and information available as of the commencement date. ROU operating lease assets include lease payments made at or before the lease commencement date and exclude lease incentives. Our operating lease agreements may include options to extend the lease term or terminate it early. We include options to extend or terminate leases in the ROU operating lease asset and liability when it is reasonably certain we will exercise these options. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales on our consolidated statement of earnings. We have operating lease arrangements with lease and non-lease components. The non-lease components in our arrangements are not significant when compared to the lease components. For all operating leases, we account for the lease and non-lease components as a single component. Additionally, for certain equipment leases, we apply a portfolio approach to recognize operating lease ROU assets and liabilities. We evaluate ROU assets for impairment consistent with our property, plant and equipment policy disclosure included in our 2018 Form 10‑K.
RECENT ACCOUNTING PRONOUNCEMENTS	Effective January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842), as amended, which requires lessees to recognize a ROU asset and lease liability on the balance sheet for most lease arrangements and expands disclosures about leasing arrangements, among other items. We adopted ASU 2016-02 using the optional transition method whereby we applied the new lease requirements under ASU 2016-02 through a cumulative-effect adjustment, which after completing our implementation analysis, resulted in no adjustment to our January 1, 2019 beginning retained earnings balance. On January 1, 2019, we recognized approximately $1.0 billion of ROU operating lease assets and approximately $1.1 billion of operating lease liabilities, including noncurrent operating lease liabilities of approximately $830 million, as a result of adopting this standard. The difference between ROU operating lease assets and operating lease liabilities was primarily due to previously accrued rent expense relating to periods prior to January 1, 2019. As part of our adoption, we elected the package of practical expedients, which among other things, permits the carry forward of historical lease classifications. We did not elect to use the practical expedient permitting the use of hindsight in determining the lease term and in assessing impairment of our ROU assets. The adoption of the standard did not have a material impact on our operating results or cash flows. The comparative periods have not been restated for the adoption of ASU 2016-02. Effective January 1, 2019, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815), which among other things, eliminates the requirement to separately measure and report hedge ineffectiveness. The adoption of this standard did not have a significant impact on our operating results, financial position or cash flows. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements For Defined Benefit Plans. The new standard modifies the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The guidance is effective for our fiscal year ending December 31, 2020 and requires disclosure changes to be presented on a retrospective basis. As this standard relates only to financial disclosures, we do not expect an impact to our operating results, financial position or cash flows as a result of adopting this new standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires companies to record an allowance for expected credit losses over the contractual term of financial assets, including short-term trade receivables and contract assets, and expands disclosure requirements for credit quality of financial assets.

EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

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

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



	Quarters Ended		Six Months Ended
	June 30, 2019	June 24, 2018	June 30, 2019	June 24, 2018
Weighted average common shares outstanding for basic computations	282.2	285.0	282.3	285.2
Weighted average dilutive effect of equity awards	1.7	2.1	1.8	2.3
Weighted average common shares outstanding for diluted computations	283.9	287.1	284.1	287.5

INFORMATION ON BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Summary Of Operating Results and Total Assets For Each Business Segment

Net sales by products and services, contract type, customer, and geographic region were as follows (in millions):



	Quarter Ended June 30, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	4,740	$	1,963	$	3,023	$	2,277	$	12,003
Services	810		448		745		421		2,424
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by contract type
Fixed-price	$	4,040	$	1,444	$	2,526	$	535	$	8,545
Cost-reimbursable	1,510		967		1,242		2,163		5,882
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by customer
U.S. Government	$	3,476	$	1,900	$	2,675	$	2,332	$	10,383
International ^(a)	2,010		475		974		360		3,819
U.S. commercial and other	64		36		119		6		225
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427
Net sales by geographic region
United States	$	3,540	$	1,936	$	2,794	$	2,338	$	10,608
Asia Pacific	784		86		418		23		1,311
Europe	847		103		143		328		1,421
Middle East	335		272		247		9		863
Other	44		14		166		—		224
Total net sales	$	5,550	$	2,411	$	3,768	$	2,698	$	14,427

	Six Months Ended June 30, 2019
	Aeronautics		MFC		RMS		Space		Total
Net sales
Products	$	9,536	$	3,879	$	6,082	$	4,476	$	23,973
Services	1,598		882		1,448		862		4,790
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by contract type
Fixed-price	$	8,210	$	2,979	$	5,145	$	1,058	$	17,392
Cost-reimbursable	2,924		1,782		2,385		4,280		11,371
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by customer
U.S. Government	$	6,911	$	3,533	$	5,350	$	4,568	$	20,362
International ^(a)	4,105		1,145		1,969		755		7,974
U.S. commercial and other	118		83		211		15		427
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763
Net sales by geographic region
United States	$	7,029	$	3,616	$	5,561	$	4,583	$	20,789
Asia Pacific	1,690		208		748		31		2,677
Europe	1,645		225		341		709		2,920
Middle East	672		685		532		15		1,904
Other	98		27		348		—		473
Total net sales	$	11,134	$	4,761	$	7,530	$	5,338	$	28,763


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



	Quarter Ended June 24, 2018
	Aeronautics		MFC		RMS		Space			Total
Net sales
Products	$	4,511	$	1,709	$	2,904	$	2,026		$	11,150
Services	810		376		662		400			2,248
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by contract type
Fixed-price	$	3,906	$	1,395	$	2,450	$	460		$	8,211
Cost-reimbursable	1,415		690		1,116		1,966			5,187
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by customer
U.S. Government	$	3,444	$	1,502	$	2,608	$	2,070		$	9,624
International ^(a)	1,835		542		822		344			3,543
U.S. commercial and other	42		41		136		12			231
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398
Net sales by geographic region
United States	$	3,486	$	1,543	$	2,744	$	2,082		$	9,855
Asia Pacific	786		125		301		31			1,243
Europe	678		46		224		332			1,280
Middle East	320		364		143		(19		)	808
Other	51		7		154		—			212
Total net sales	$	5,321	$	2,085	$	3,566	$	2,426		$	13,398

	Six Months Ended June 24, 2018
	Aeronautics		MFC		RMS		Space			Total
Net sales
Products	$	8,281	$	3,062	$	5,621	$	3,948		$	20,912
Services	1,438		700		1,168		815			4,121
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by contract type
Fixed-price	$	7,121	$	2,507	$	4,658	$	860		$	15,146
Cost-reimbursable	2,598		1,255		2,131		3,903			9,887
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by customer
U.S. Government	$	6,209	$	2,590	$	4,964	$	3,940		$	17,703
International ^(a)	3,412		1,096		1,603		800			6,911
U.S. commercial and other	98		76		222		23			419
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033
Net sales by geographic region
United States	$	6,307	$	2,666	$	5,186	$	3,963		$	18,122
Asia Pacific	1,540		223		625		54			2,442
Europe	1,186		115		379		758			2,438
Middle East	577		744		314		(12		)	1,623
Other	109		14		285		—			408
Total net sales	$	9,719	$	3,762	$	6,789	$	4,763		$	25,033


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

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



	June 30, 2019		December 31, 2018
Assets
Aeronautics	$	9,750	$	8,435
Missiles and Fire Control	5,368		5,017
Rotary and Mission Systems	18,934		18,333
Space	5,912		5,445
Total business segment assets	39,964		37,230
Corporate assets ^(a)	7,876		7,646
Total assets	$	47,840	$	44,876

^(a)

Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust to fund certain of our non-qualified deferred compensation plans.

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



	Quarters Ended						Six Months Ended
	June 30, 2019			June 24, 2018			June 30, 2019			June 24, 2018
Net sales
Aeronautics	$	5,550		$	5,321		$	11,134		$	9,719
Missiles and Fire Control	2,411			2,085			4,761			3,762
Rotary and Mission Systems	3,768			3,566			7,530			6,789
Space	2,698			2,426			5,338			4,763
Total net sales	$	14,427		$	13,398		$	28,763		$	25,033
Operating profit
Aeronautics	$	592		$	572		$	1,177		$	1,046
Missiles and Fire Control	327			279			744			540
Rotary and Mission Systems	347			341			726			652
Space	288			274			622			538
Total business segment operating profit	1,554			1,466			3,269			2,776
Unallocated items
FAS/CAS operating adjustment ^(a)	512			451			1,024			902
Stock-based compensation	(67		)	(60		)	(104		)	(98		)
Severance and restructuring charges ^(b)	—			(96		)	—			(96		)
Other, net	9			34			102			36
Total unallocated items	454			329			1,022			744
Total consolidated operating profit	$	2,008		$	1,795		$	4,291		$	3,520
Intersegment sales
Aeronautics	$	47		$	27		$	89		$	52
Missiles and Fire Control	144			113			265			208
Rotary and Mission Systems	538			504			1,118			965
Space	85			48			153			93
Total intersegment sales	$	814		$	692		$	1,625		$	1,318


^(a)	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.

^(b)



	Quarters Ended						Six Months Ended
	June 30, 2019			June 24, 2018			June 30, 2019			June 24, 2018
Total FAS expense and CAS costs
FAS pension expense	$	(273	)	$	(357	)	$	(546	)	$	(713	)
Less: CAS pension cost	641			609			1,282			1,217
Net FAS/CAS pension adjustment	$	368		$	252		$	736		$	504

Service and non-service cost reconciliation
FAS pension service cost	$	(129	)	$	(158	)	$	(258	)	$	(315	)
Less: CAS pension cost	641			609			1,282			1,217
FAS/CAS operating adjustment	512			451			1,024			902
Non-operating FAS pension cost^(a)	(144		)	(199		)	(288		)	(398		)
Net FAS/CAS pension adjustment	$	368		$	252		$	736		$	504

^(a)

CONTRACT ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Summary of Contract Assets and Liabilities

Contract assets and contract liabilities were as follows (in millions):



	June 30, 2019		December 31, 2018
Contract assets	$	10,388	$	9,472
Contract liabilities	6,766		6,491

INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories, Net

Inventories consisted of the following (in millions):



	June 30, 2019		December 31, 2018
Materials, spares and supplies	$	452	$	446
Work-in-process	2,810		2,161
Finished goods	337		390
Total inventories	$	3,599	$	2,997

LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Future Minimum Lease Commitments

Future minimum lease commitments at June 30, 2019 were as follows (in millions):



	Total		Remainder of 2019		2020		2021		2022		2023		Thereafter
Operating leases	$	1,242	$	184	$	191	$	163	$	128	$	99	$	477
Less: imputed interest	$	174
Total	$	1,068

POSTRETIREMENT BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2019

Retirement Benefits [Abstract]

Schedule of Pretax Net Periodic Benefit Cost

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



	Quarters Ended						Six Months Ended
	June 30, 2019			June 24, 2018			June 30, 2019			June 24, 2018
Qualified defined benefit pension plans
Service cost	$	129		$	158		$	258		$	315
Interest cost	451			435			903			870
Expected return on plan assets	(575		)	(598		)	(1,150		)	(1,197		)
Recognized net actuarial losses	351			444			702			888
Amortization of prior service credits	(83		)	(82		)	(167		)	(163		)
Total net periodic benefit cost	$	273		$	357		$	546		$	713
Retiree medical and life insurance plans
Service cost	$	3		$	4		$	7		$	9
Interest cost	24			23			48			46
Expected return on plan assets	(27		)	(33		)	(55		)	(67		)
Recognized net actuarial losses	—			1			1			2
Amortization of prior service costs	11			3			21			7
Total net periodic benefit cost (credit)	$	11		$	(2	)	$	22		$	(3	)

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured and Recorded at Fair Value

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



	June 30, 2019						December 31, 2018
	Total		Level 1		Level 2		Total		Level 1		Level 2
Assets
Mutual funds	$	1,031	$	1,031	$	—	$	978	$	978	$	—
U.S. Government securities	104		—		104		105		—		105
Other securities	244		113		131		144		28		116
Derivatives	26		—		26		22		—		22
Liabilities
Derivatives	49		—		49		61		—		61
Assets measured at NAV ^(a)
Other commingled funds	19						18

^(a)

Net Asset Value (NAV) is the total value of the fund divided by the number of the fund’s shares outstanding.

STOCKHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

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

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



	Postretirement Benefit Plans			Other, net			AOCL
Balance at December 31, 2018	$	(14,254	)	$	(67	)	$	(14,321	)
Other comprehensive income before reclassifications	—			13			13
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	574			—			574
Amortization of net prior service credits ^(a)	(120		)	—			(120		)
Other	—			15			15
Total reclassified from AOCL	454			15			469
Total other comprehensive income	454			28			482
Balance at June 30, 2019	$	(13,800	)	$	(39	)	$	(13,839	)

Balance at December 31, 2017	$	(12,559	)	$	20		$	(12,539	)
Other comprehensive loss before reclassifications	—			(62		)	(62		)
Amounts reclassified from AOCL
Recognition of net actuarial losses ^(a)	728			—			728
Amortization of net prior service credits ^(a)	(128		)	—			(128		)
Other	—			14			14
Total reclassified from AOCL	600			14			614
Total other comprehensive income (loss)	600			(48		)	552
Reclassification of income tax effects from tax reform^(b)	(2,396		)	(12		)	(2,408		)
Balance at June 24, 2018	$	(14,355	)	$	(40	)	$	(14,395	)

^(a)

^(b)

EARNINGS PER COMMON SHARE - Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Earnings Per Share [Abstract]
Weighted average common shares outstanding for basic computations (in shares)	282.2	285.0	282.3	285.2
Weighted average dilutive effect of equity awards (in shares)	1.7	2.1	1.8	2.3
Weighted average common shares outstanding for diluted computations (in shares)	283.9	287.1	284.1	287.5

EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Earnings Per Share [Abstract]
Significant anti-dilutive equity awards (in shares)	0	0	0	0

INFORMATION ON BUSINESS SEGMENTS - Narrative (Details) - segment	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Segment Reporting [Abstract]
Number of business segments			4
Product Concentration Risk \| Sales Revenue, Net \| F-35 program \| Aeronautics
Segment Reporting Information [Line Items]
Net sales for the F-35 program representing total consolidated net sales (as a percent)	26.00%	27.00%	26.00%	26.00%

INFORMATION ON BUSINESS SEGMENTS - Summary of Operating Results For Each Business Segment (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Net sales
Total net sales	$ 14,427	$ 13,398	$ 28,763	$ 25,033
Operating profit
Total operating profit	2,008	1,795	4,291	3,520
Unallocated items
Severance and restructuring charges	0	96	0	96
Aeronautics
Net sales
Total net sales	5,550	5,321	11,134	9,719
Missiles and Fire Control
Net sales
Total net sales	2,411	2,085	4,761	3,762
Rotary and Mission Systems
Net sales
Total net sales	3,768	3,566	7,530	6,789
Unallocated items
Severance and restructuring charges		96
Severance and restructuring charges, net of tax		$ 76
Severance and restructuring charges (in dollars per share)		$ 0.26
Space
Net sales
Total net sales	2,698	$ 2,426	5,338	4,763
Business segments
Net sales
Total net sales	14,427	13,398	28,763	25,033
Operating profit
Total operating profit	1,554	1,466	3,269	2,776
Business segments \| Aeronautics
Net sales
Total net sales	5,550	5,321	11,134	9,719
Operating profit
Total operating profit	592	572	1,177	1,046
Business segments \| Missiles and Fire Control
Net sales
Total net sales	2,411	2,085	4,761	3,762
Operating profit
Total operating profit	327	279	744	540
Business segments \| Rotary and Mission Systems
Net sales
Total net sales	3,768	3,566	7,530	6,789
Operating profit
Total operating profit	347	341	726	652
Business segments \| Space
Net sales
Total net sales	2,698	2,426	5,338	4,763
Operating profit
Total operating profit	288	274	622	538
Segment reconciling items
Unallocated items
FAS/CAS operating adjustment	512	451	1,024	902
Stock-based compensation	(67)	(60)	(104)	(98)
Severance and restructuring charges	0	(96)	0	(96)
Other, net	9	34	102	36
Total unallocated items	454	329	1,022	744
Intersegment sales
Net sales
Total net sales	814	692	1,625	1,318
Intersegment sales \| Aeronautics
Net sales
Total net sales	47	27	89	52
Intersegment sales \| Missiles and Fire Control
Net sales
Total net sales	144	113	265	208
Intersegment sales \| Rotary and Mission Systems
Net sales
Total net sales	538	504	1,118	965
Intersegment sales \| Space
Net sales
Total net sales	$ 85	$ 48	$ 153	$ 93

INFORMATION ON BUSINESS SEGMENTS - FAS/CAS Pension Adjustment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Segment Reporting Information [Line Items]
Non-operating FAS pension cost	$ (144)	$ (199)	$ (288)	$ (398)
Net FAS/CAS pension adjustment	368	252	736	504
Segment reconciling items
Segment Reporting Information [Line Items]
Less: CAS pension cost	641	609	1,282	1,217
FAS pension service cost	(129)	(158)	(258)	(315)
FAS/CAS operating adjustment	512	451	1,024	902
Qualified defined benefit pension plans
Segment Reporting Information [Line Items]
FAS pension expense/service cost	273	357	546	713
FAS pension service cost	(129)	(158)	(258)	(315)
Qualified defined benefit pension plans \| Qualified Plan
Segment Reporting Information [Line Items]
FAS pension expense/service cost	(273)	(357)	(546)	(713)
Non-operating FAS pension cost	$ (27)	$ (16)	$ (57)	$ (33)

INFORMATION ON BUSINESS SEGMENTS - Income Statement Information For Each Segment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Net sales
Net sales	$ 14,427	$ 13,398	$ 28,763	$ 25,033
Aeronautics
Net sales
Net sales	5,550	5,321	11,134	9,719
MFC
Net sales
Net sales	2,411	2,085	4,761	3,762
RMS
Net sales
Net sales	3,768	3,566	7,530	6,789
Space
Net sales
Net sales	2,698	2,426	5,338	4,763
United States
Net sales
Net sales	10,608	9,855	20,789	18,122
United States \| Aeronautics
Net sales
Net sales	3,540	3,486	7,029	6,307
United States \| MFC
Net sales
Net sales	1,936	1,543	3,616	2,666
United States \| RMS
Net sales
Net sales	2,794	2,744	5,561	5,186
United States \| Space
Net sales
Net sales	2,338	2,082	4,583	3,963
Asia Pacific
Net sales
Net sales	1,311	1,243	2,677	2,442
Asia Pacific \| Aeronautics
Net sales
Net sales	784	786	1,690	1,540
Asia Pacific \| MFC
Net sales
Net sales	86	125	208	223
Asia Pacific \| RMS
Net sales
Net sales	418	301	748	625
Asia Pacific \| Space
Net sales
Net sales	23	31	31	54
Europe
Net sales
Net sales	1,421	1,280	2,920	2,438
Europe \| Aeronautics
Net sales
Net sales	847	678	1,645	1,186
Europe \| MFC
Net sales
Net sales	103	46	225	115
Europe \| RMS
Net sales
Net sales	143	224	341	379
Europe \| Space
Net sales
Net sales	328	332	709	758
Middle East
Net sales
Net sales	863	808	1,904	1,623
Middle East \| Aeronautics
Net sales
Net sales	335	320	672	577
Middle East \| MFC
Net sales
Net sales	272	364	685	744
Middle East \| RMS
Net sales
Net sales	247	143	532	314
Middle East \| Space
Net sales
Net sales	9	(19)	15	(12)
Other
Net sales
Net sales	224	212	473	408
Other \| Aeronautics
Net sales
Net sales	44	51	98	109
Other \| MFC
Net sales
Net sales	14	7	27	14
Other \| RMS
Net sales
Net sales	166	154	348	285
Other \| Space
Net sales
Net sales	0	0	0	0
U.S. Government
Net sales
Net sales	10,383	9,624	20,362	17,703
U.S. Government \| Aeronautics
Net sales
Net sales	3,476	3,444	6,911	6,209
U.S. Government \| MFC
Net sales
Net sales	1,900	1,502	3,533	2,590
U.S. Government \| RMS
Net sales
Net sales	2,675	2,608	5,350	4,964
U.S. Government \| Space
Net sales
Net sales	2,332	2,070	4,568	3,940
International
Net sales
Net sales	3,819	3,543	7,974	6,911
International \| Aeronautics
Net sales
Net sales	2,010	1,835	4,105	3,412
International \| MFC
Net sales
Net sales	475	542	1,145	1,096
International \| RMS
Net sales
Net sales	974	822	1,969	1,603
International \| Space
Net sales
Net sales	360	344	755	800
U.S. commercial and other
Net sales
Net sales	225	231	427	419
U.S. commercial and other \| Aeronautics
Net sales
Net sales	64	42	118	98
U.S. commercial and other \| MFC
Net sales
Net sales	36	41	83	76
U.S. commercial and other \| RMS
Net sales
Net sales	119	136	211	222
U.S. commercial and other \| Space
Net sales
Net sales	6	12	15	23
Fixed-price
Net sales
Net sales	8,545	8,211	17,392	15,146
Fixed-price \| Aeronautics
Net sales
Net sales	4,040	3,906	8,210	7,121
Fixed-price \| MFC
Net sales
Net sales	1,444	1,395	2,979	2,507
Fixed-price \| RMS
Net sales
Net sales	2,526	2,450	5,145	4,658
Fixed-price \| Space
Net sales
Net sales	535	460	1,058	860
Cost-reimbursable
Net sales
Net sales	5,882	5,187	11,371	9,887
Cost-reimbursable \| Aeronautics
Net sales
Net sales	1,510	1,415	2,924	2,598
Cost-reimbursable \| MFC
Net sales
Net sales	967	690	1,782	1,255
Cost-reimbursable \| RMS
Net sales
Net sales	1,242	1,116	2,385	2,131
Cost-reimbursable \| Space
Net sales
Net sales	2,163	1,966	4,280	3,903
Products
Net sales
Net sales	12,003	11,150	23,973	20,912
Products \| Aeronautics
Net sales
Net sales	4,740	4,511	9,536	8,281
Products \| MFC
Net sales
Net sales	1,963	1,709	3,879	3,062
Products \| RMS
Net sales
Net sales	3,023	2,904	6,082	5,621
Products \| Space
Net sales
Net sales	2,277	2,026	4,476	3,948
Services
Net sales
Net sales	2,424	2,248	4,790	4,121
Services \| Aeronautics
Net sales
Net sales	810	810	1,598	1,438
Services \| MFC
Net sales
Net sales	448	376	882	700
Services \| RMS
Net sales
Net sales	745	662	1,448	1,168
Services \| Space
Net sales
Net sales	$ 421	$ 400	$ 862	$ 815

INFORMATION ON BUSINESS SEGMENTS - Total Assets For Each Business Segment (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total assets	$ 47,840	$ 44,876
Business segments
Segment Reporting Information [Line Items]
Total assets	39,964	37,230
Business segments \| Aeronautics
Segment Reporting Information [Line Items]
Total assets	9,750	8,435
Business segments \| Missiles and Fire Control
Segment Reporting Information [Line Items]
Total assets	5,368	5,017
Business segments \| Rotary and Mission Systems
Segment Reporting Information [Line Items]
Total assets	18,934	18,333
Business segments \| Space
Segment Reporting Information [Line Items]
Total assets	5,912	5,445
Corporate
Segment Reporting Information [Line Items]
Total assets	$ 7,876	$ 7,646

CONTRACT ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Contract assets	$ 10,388	$ 9,472
Contract liabilities	$ 6,766	$ 6,491

CONTRACT ASSETS AND LIABILITIES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Revenue from Contract with Customer [Abstract]
Increase in contract assets			$ 916	$ 1,289
Impairment loss	$ 0	$ 0	0	0
Increase in contract liabilities			275	(615)
Liability, revenue recognized	$ 1,100	$ 731	$ 2,900	$ 2,600

INVENTORIES (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Materials, spares and supplies	$ 452	$ 446
Work-in-process	2,810	2,161
Finished goods	337	390
Total inventories	3,599	2,997
Capitalized contract cost	$ 572	$ 443

LEASES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
LEASES - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Leases [Abstract]
Operating lease, right-of-use asset	$ 971		$ 971
Operating lease, liability	1,068		1,068
Operating lease, liability, noncurrent	$ 815		815
New ROU operating lease assets and liabilities entered into			$ 68
Weighted average remaining lease term	9 years		9 years
Weighted average discount rate	3.40%		3.40%
Operating lease cost	$ 61	$ 60	$ 120	$ 120
Cash payments			$ 115

LEASES - Future Minimum Lease Commitments (Details) $ in Millions	Jun. 30, 2019 USD ($)
Leases [Abstract]
Total	$ 1,242
Remainder of 2019	184
2020	191
2021	163
2022	128
2023	99
Thereafter	477
Less: imputed interest	174
Total, less imputed interest	$ 1,068

POSTRETIREMENT BENEFIT PLANS - Schedule of Pretax Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Qualified defined benefit pension plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 129	$ 158	$ 258	$ 315
Interest cost	451	435	903	870
Expected return on plan assets	(575)	(598)	(1,150)	(1,197)
Recognized net actuarial losses	351	444	702	888
Amortization of prior service credits	(83)	(82)	(167)	(163)
Total net periodic benefit cost (credit)	273	357	546	713
Retiree medical and life insurance plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	3	4	7	9
Interest cost	24	23	48	46
Expected return on plan assets	(27)	(33)	(55)	(67)
Recognized net actuarial losses	0	1	1	2
Amortization of prior service credits	11	3	21	7
Total net periodic benefit cost (credit)	$ 11	$ (2)	$ 22	$ (3)

POSTRETIREMENT BENEFIT PLANS - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Defined Benefit Plan Disclosure [Line Items]
Recognition of previously deferred postretirement benefit plan amounts, before tax	$ 288,000,000	$ 381,000,000	$ 577,000,000	$ 763,000,000
Recognition of previously deferred postretirement benefit plan amounts, net of tax	227,000,000	300,000,000	454,000,000	600,000,000
Retiree medical and life insurance plans
Defined Benefit Plan Disclosure [Line Items]
Recognition of previously deferred postretirement benefit plan amounts, before tax	9,000,000	15,000,000	20,000,000	29,000,000
Qualified defined benefit pension plans
Defined Benefit Plan Disclosure [Line Items]
Material contributions to qualified defined benefit pension plans	$ 0	$ 2,000,000,000.0	$ 0	$ 3,500,000,000

LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions		1 Months Ended	6 Months Ended	12 Months Ended
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions	Aug. 16, 2016 USD ($)	Dec. 31, 2014	Jun. 30, 2019 USD ($) subsidiary	Dec. 31, 2018 USD ($)	Dec. 31, 2016	May 31, 2017 lawsuit	Apr. 24, 2009 USD ($)
Loss Contingencies [Line Items]
Damages sought by plaintiff			$ 52
Liabilities recorded relative to environmental matters			823	$ 864
Environmental costs eligible for future recovery			$ 715	750
Period over which costs and recovery of costs is projected			20 years
Outstanding letters of credit, surety bonds, and third-party guarantees			$ 3,500	3,600
Third-party guarantees			$ 1,100	$ 850
Guarantees of contractual performance of joint ventures (as a percent)			72.00%	65.00%
Leidos Holdings, Inc.
Loss Contingencies [Line Items]
Reserve transferred	$ 38
Indemnification percent, up to maximum reserve					100.00%
Maximum reserve	$ 64
Indemnification percent in excess of maximum reserve					50.00%
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 claims \| lawsuit						2
Number of entities involved in litigation \| subsidiary			2

FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured and Recorded at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Assets
Derivatives	$ 26	$ 22
Liabilities
Derivatives	49	61
Mutual funds
Assets
Fair Value of Investments	1,031	978
U.S. Government securities
Assets
Fair Value of Investments	104	105
Other securities
Assets
Fair Value of Investments	244	144
Level 1
Assets
Derivatives	0	0
Liabilities
Derivatives	0	0
Level 1 \| Mutual funds
Assets
Fair Value of Investments	1,031	978
Level 1 \| U.S. Government securities
Assets
Fair Value of Investments	0	0
Level 1 \| Other securities
Assets
Fair Value of Investments	113	28
Level 2
Assets
Derivatives	26	22
Liabilities
Derivatives	49	61
Level 2 \| Mutual funds
Assets
Fair Value of Investments	0	0
Level 2 \| U.S. Government securities
Assets
Fair Value of Investments	104	105
Level 2 \| Other securities
Assets
Fair Value of Investments	131	116
NAV \| Other commingled funds
Liabilities
Assets measured at NAV	$ 19	$ 18

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Billions	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding principal amount	$ 14.7	$ 15.3
Unamortized discounts and issuance costs	1.2	1.2
Interest rate swaps \| Designated as hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate notional amount of outstanding interest rate swaps	1.3	1.3
Foreign currency hedges \| Designated as hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate notional amount of outstanding interest rate swaps	3.9	3.5
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of outstanding debt	$ 16.4	$ 15.4

STOCKHOLDERS' EQUITY - Repurchases of Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018	Dec. 31, 2018
Shareholders Equity [Line Items]
Common stock repurchased (in shares)			1.6
Reduction to stockholders' equity due to repurchases of common stock	$ 216	$ 323	$ 500	$ 623
Total remaining authorization for future common share repurchases	$ 2,500		$ 2,500
Par value of shares repurchased (in dollars per share)	$ 1		$ 1		$ 1
Additional paid-in capital after reduction	$ 0		$ 0		$ 0
Reduction to retained earnings
Shareholders Equity [Line Items]
Reduction to stockholders' equity due to repurchases of common stock	$ 41	$ 186	$ 278	$ 460

STOCKHOLDERS' EQUITY - Dividends (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Dividends Payable [Line Items]
Cash dividends paid and unpaid, amount		$ 1,249	$ 572	$ 1,872	$ 1,145
Cash dividends paid per common share (in dollars per share)		$ 2.20	$ 2.00	$ 4.40	$ 4.00
Cash dividends declared (in dollars per share)		$ 4.40	$ 2.00	$ 6.60	$ 4.00
Forecast
Dividends Payable [Line Items]
Cash dividends paid and unpaid, amount	$ 624
Cash dividends paid per common share (in dollars per share)	$ 2.20

STOCKHOLDERS' EQUITY - Restricted Stock Unit Grants (Narrative) (Details) - RSUs shares in Millions	6 Months Ended
	Jun. 30, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted to certain employees (in shares) \| shares	0.6
Grant date fair value per RSU (in dollars per share) \| $ / shares	$ 303.96
Award vesting period	3 years

STOCKHOLDERS' EQUITY - Schedule of Changes in the Balance of AOCL, Net of Tax (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning Balance	$ 2,522	$ (111)	$ 1,449	$ (776)
Other comprehensive income before reclassifications			13	(62)
Total reclassified from AOCL			469	614
Other comprehensive income, net of tax	255	194	482	552
Ending Balance	2,896	479	2,896	479
Recognition of previously deferred postretirement benefit plan amounts	227	300	454	600
Postretirement Benefit Plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning Balance			(14,254)	(12,559)
Other comprehensive income before reclassifications			0	0
Total reclassified from AOCL			454	600
Other comprehensive income, net of tax			454	600
Reclassification of income tax effects from tax reform				(2,396)
Ending Balance	(13,800)	(14,355)	(13,800)	(14,355)
Other, net
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning Balance			(67)	20
Other comprehensive income before reclassifications			13	(62)
Total reclassified from AOCL			15	14
Other comprehensive income, net of tax			28	(48)
Reclassification of income tax effects from tax reform				(12)
Ending Balance	(39)	(40)	(39)	(40)
AOCL
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Beginning Balance	(14,094)	(14,589)	(14,321)	(12,539)
Other comprehensive income, net of tax	255	194	482	552
Reclassification of income tax effects from tax reform				(2,408)
Ending Balance	(13,839)	(14,395)	(13,839)	(14,395)
Recognition of net actuarial losses
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Total reclassified from AOCL			574	728
Recognition of previously deferred postretirement benefit plan amounts	287	364
Amortization of net prior service credits
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Total reclassified from AOCL			(120)	(128)
Recognition of previously deferred postretirement benefit plan amounts	$ (60)	$ (64)
Other
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Total reclassified from AOCL			$ 15	$ 14

OTHER - Changes in Estimates and Backlog (Details) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended
	Apr. 30, 2019 satellite	Feb. 28, 2019 satellite	Jun. 30, 2019 USD ($) program $ / shares	Jun. 24, 2018 USD ($) $ / shares	Jun. 30, 2019 USD ($) program satellite $ / shares	Jun. 24, 2018 USD ($) $ / shares
Change in Accounting Estimate [Line Items]
Performance obligation satisfied in previous period			$ 560	$ 540	$ 1,200	$ 955
Number of satellites launched or to be launched \| satellite	1	1			3
Ground Based Radar
Change in Accounting Estimate [Line Items]
Cumulative losses on development			195		$ 195
LM 2100 Project
Change in Accounting Estimate [Line Items]
Cumulative losses on development			410		410
Warrior Capability Sustainment Program
Change in Accounting Estimate [Line Items]
Cumulative losses on development			140		140
Contracts Accounted for under Percentage of Completion
Change in Accounting Estimate [Line Items]
Increase in operating profit due to profit rate adjustments			420	465	985	885
Increase in net earnings due to profit rate adjustments			$ 332	$ 367	$ 778	$ 699
Increase in diluted earnings per common share due to profit rate adjustments (in dollars per share) \| $ / shares			$ 1.17	$ 1.28	$ 2.74	$ 2.43
Space
Change in Accounting Estimate [Line Items]
Number of commercial satellite programs with performance issues \| program			2		2

OTHER - Backlog (Details) $ in Billions	Jun. 30, 2019 USD ($)
Accounting Policies [Abstract]
Remaining performance obligation	$ 136.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	38.00%
Expected time of satisfaction	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	27.00%
Expected time of satisfaction	12 months

OTHER - Severance and Restructuring Charges (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Restructuring Cost and Reserve [Line Items]
Severance and restructuring charges	$ 0	$ 96	$ 0	$ 96
Operations Consolidation
Restructuring Cost and Reserve [Line Items]
Payments for restructuring			$ 59
RMS
Restructuring Cost and Reserve [Line Items]
Severance and restructuring charges		96
Severance and restructuring charges, net of tax		$ 76
Severance and restructuring charges (in dollars per share)		$ 0.26

OTHER - Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Accounting Policies [Abstract]
Effective income tax rate	15.60%		18.10%	13.90%	16.50%
Prior year income taxes benefit		$ 65
Prior year income taxes adjustment (in dollars per share)		$ 0.23

OTHER - Sale of Customer Receivables (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 24, 2018	Jun. 30, 2019	Jun. 24, 2018
Accounting Policies [Abstract]
Customer receivables sold	$ 96,000,000	$ 124,000,000	$ 200,000,000	$ 227,000,000
Gains or losses related to sales of receivables			$ 0	$ 0

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use asset	$ 971
Operating lease, liability	1,068
Operating lease, liability, noncurrent	$ 815
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use asset		$ 1,000
Operating lease, liability		1,100
Operating lease, liability, noncurrent		$ 830