Goodwill and Identifiable Intangible Assets (Tables)

9 Months Ended

Sep. 29, 2017

Goodwill and Identifiable Intangible Assets [Abstract]

Changes in Goodwill by Segment

The table below presents the changes in goodwill allocated to the Company’s reporting units in each reportable segment.

	Electronic Systems			Aerospace Systems			Communication Systems			Sensor Systems			Consolidated Total
	(in millions)
Goodwill(1)	$	2,687		$	1,698		$	1,058		$	1,559		$	7,002
Accumulated impairment losses		(43	)		(338	)		(35	)		(26	)		(442	)
Balance at December 31, 2016		2,644			1,360			1,023			1,533			6,560
Business acquisitions(2)		129			—			—			70			199
Business divestitures(3)		(12	)		—			—			—			(12	)
Foreign currency translation adjustments(4)		58			17			—			17			92
Impairment charge		—			(187	)		—			—			(187	)
Balance at September 29, 2017		2,819			1,190			1,023			1,620			6,652
Goodwill		2,862			1,715			1,058			1,646			7,282
Accumulated impairment losses		(43	)		(525	)		(35	)		(26	)		(629	)
	$	2,819		$	1,190		$	1,023		$	1,620		$	6,652

⁽¹⁾ The business realignment during the quarterly period ended March 31, 2017 in the Electronic Systems segment resulted in a reallocation of goodwill due to changes in reporting units. Goodwill was reallocated to the affected reporting units based upon their relative fair value. The changes to reporting units did not result in a goodwill impairment of any reporting unit.

⁽²⁾ The increase for the Electronic Systems segment was due to the acquisitions of the ETD and Doss Aviation businesses and the purchase price allocation adjustments for the MacH and Aerosim business acquisitions. The increase for the Sensor Systems segment was primarily due to the Adaptive Methods, Open Water Power and OceanServer business acquisitions.

⁽³⁾ The decrease for the Electronic Systems segment was due to the divestitures of Coleman and Aviation Jet Services during the quarterly period ended March 31, 2017.

⁽⁴⁾ The increase in the Electronic Systems segment was due to the weakening of the U.S. dollar against the British pound and the Canadian dollar during the year-to-date period ended September 29, 2017. The increase in the Aerospace Systems segment was due to the weakening of the U.S. dollar against the Canadian dollar during the year-to-date period ended September 29, 2017. The increase in the Sensor Systems segment was due to the weakening of the U.S. dollar against the Euro, the British pound and the Australian dollar during the year-to-date period ended September 29, 2017.

Identifiable Intangible Assets

The table below presents information for the Company’s identifiable intangible assets that are subject to amortization and indefinite-lived intangible assets.

September 29, 2017							December 31, 2016
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in millions)
Customer contractual relationships	15	$	418	$	287	$	131	$	409	$	269	$	140
Technology	10		207		113		94		191		102		89
Other	20		20		12		8		21		12		9
Total subject to amortization	10		645		412		233		621		383		238
IPR&D	indefinite		66		—		66		—		—		—
Total		$	711	$	412	$	299	$	621	$	383	$	238

Amortization Expense

The table below presents amortization expense recorded by the Company for its identifiable intangible assets.

	Third Quarter Ended				Year-to-Date Ended
	September 29, 2017		September 23, 2016		September 29, 2017		September 23, 2016
	(in millions)
Amortization expense	$	10	$	9	$	30	$	26

Estimated Amortization Expense

Based on gross carrying amounts at September 29, 2017, the Company’s estimate of amortization expense for identifiable intangible assets for the years ending December 31, 2017 through 2021 is presented in the table below.

	Year Ending December 31,
	2017		2018		2019		2020		2021
	(in millions)
Estimated amortization expense	$	39	$	38	$	34	$	30	$	27