Acquisitions, Dispositions, Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]

Acquisitions, Dispositions, Goodwill and Other Intangible Assets

Note 2: Acquisitions, Dispositions, Goodwill and Intangible Assets

Acquisitions. During the nine months ended September 30, 2022 and 2021, our investment in business acquisitions were $66 million and $6 million, respectively, and consisted of immaterial acquisitions.

Dispositions. During the nine months ended September 30, 2022 and 2021, cash inflows related to dispositions were $94 million and $1.1 billion, respectively.

Our dispositions of businesses in the nine months ended September 30, 2022 consisted of immaterial dispositions.

Dispositions of businesses in the nine months ended September 30, 2021 reflect the January 8, 2021 sale of our Forcepoint business, for proceeds of $1.1 billion, net of cash transferred. We did not recognize a pre-tax gain or loss within the Condensed Consolidated Statement of Operations related to the sale of Forcepoint.

Goodwill. Changes in our goodwill balances for the nine months ended September 30, 2022 were as follows:

(dollars in millions)	Balance as of January 1, 2022		Acquisitions and Divestitures		Foreign Currency Translation and Other		Balance as of September 30, 2022
Collins Aerospace Systems	$	31,384	$	(36)	$	(1,293)	$	30,055
Pratt & Whitney	1,563		—		—		1,563
Raytheon Intelligence & Space	9,813		26		(2)		9,837
Raytheon Missiles & Defense	11,659		41		(4)		11,696
Total Segments	54,419		31		(1,299)		53,151
Eliminations and other	17		—		—		17
Total	$	54,436	$	31	$	(1,299)	$	53,168

Intangible Assets. Identifiable intangible assets are comprised of the following:

	September 30, 2022				December 31, 2021
(dollars in millions)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Amortized:
Collaboration assets	$	5,480	$	(1,335)	$	5,319	$	(1,173)
Exclusivity assets	2,807		(320)		2,673		(318)
Developed technology and other	1,186		(510)		1,214		(466)
Customer relationships	29,649		(8,510)		29,982		(7,411)
	39,122		(10,675)		39,188		(9,368)
Unamortized:
Trademarks and other	8,599		—		8,696		—
Total	$	47,721	$	(10,675)	$	47,884	$	(9,368)

Amortization of intangible assets for the quarters and nine months ended September 30, 2022 and 2021 were $497 million and $1,451 million and $622 million and $1,820 million, respectively. The following is the expected amortization of intangible assets for the remainder of 2022 through 2027: 

(dollars in millions)	Remaining 2022		2023		2024		2025		2026		2027
Amortization expense	$	487	$	2,084	$	2,206	$	2,090	$	2,007	$	1,868