Goodwill and Other Purchased Intangible Assets (Unaudited)

6 Months Ended

Jun. 30, 2011

GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS [Abstract]

8. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS


8.	GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS

Goodwill

The carrying amounts of goodwill at both June 30, 2011, and December 31, 2010, were as follows:


	Aerospace		Electronic		Information		Technical
$ in millions	Systems		Systems		Systems		Services		Total
Goodwill	$	3,801	$	2,402	$	5,248	$	925	$	12,376

Accumulated goodwill impairment losses at June 30, 2011, and December 31, 2010, totaled $570 million at the Aerospace Systems segment.

Purchased Intangible Assets

The table below summarizes the company’s aggregate purchased intangible assets:


	June 30, 2011							December 31, 2010
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
$ in millions	Amount		Amortization			Amount		Amount		Amortization			Amount
Contract and program intangibles	$	1,705	$	(1,548	)	$	157	$	1,705	$	(1,531	)	$	174
Other purchased intangibles		100		(83	)		17		100		(82	)		18

Total	$	1,805	$	(1,631	)	$	174	$	1,805	$	(1,613	)	$	192

The company’s purchased intangible assets are subject to amortization and have been amortized on a straight-line basis over an original aggregate weighted-average period of 18 years. Aggregate amortization expense for the three and six months ended June 30, 2011, was $9 million and $18 million, respectively. Aggregate amortization expense for the three and six months ended June 30, 2010, was $18 million and $36 million, respectively.

The table below shows expected amortization for purchased intangibles for the remainder of 2011 and for the next five years:


$ in millions
Year ending December 31
2011 (July 1—December 31)	$	19
2012		36
2013		29
2014		16
2015		15
2016		11

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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