Goodwill and Other Purchased Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Purchased Intangible Assets

GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS

Goodwill

Goodwill and other purchased intangible assets are included in the identifiable assets of the segment to which the operations of the acquired entity have been assigned. Accumulated goodwill impairment losses at December 31, 2014 and 2013, totaled $570 million at the Aerospace Systems segment.

Changes in the carrying amounts of goodwill for the years ended December 31, 2014 and 2013, were as follows:



$ in millions	Aerospace Systems		Electronic Systems		Information Systems			Technical Services		Total
Balance as of December 31, 2012	$	3,758	$	2,410	$	5,287		$	976	$	12,431
Businesses acquired and other ⁽¹⁾	—		—		7			—		7
Balance as of December 31, 2013	$	3,758	$	2,410	$	5,294		$	976	$	12,438
Businesses acquired and other ⁽¹⁾	—		—		(8		)	36		28
Balance as of December 31, 2014	$	3,758	$	2,410	$	5,286		$	1,012	$	12,466


(1)	Other consists primarily of adjustments for foreign currency translation.

Purchased Intangible Assets

Net contract, program, and other intangible assets comprise the following:



	December 31
$ in millions	2014			2013
Gross contract, program and other intangible assets	$	1,831		$	1,812
Less accumulated amortization	(1,730		)	(1,708		)
Net contract, program and other intangible assets	$	101		$	104

Amortization expense for 2014, 2013 and 2012, was $22 million, $26 million and $36 million, respectively. The company’s purchased intangible assets are being amortized on a straight-line basis over an aggregate weighted-average period of 21 years and are included in other non-current assets in the consolidated statements of financial position. As of December 31, 2014, the expected future amortization of purchased intangibles for each of the next five years is as follows:



$ in millions
Year Ending December 31
2015	$	22
2016	16
2017	14
2018	12
2019	10

- 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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