Goodwill and Other Purchased Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Purchased Intangible Assets

7. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS

Goodwill

Changes in the carrying amounts of goodwill for the years ended December 31, 2015 and 2016, were as follows:



$ in millions	Aerospace Systems		Mission Systems			Technology Services			Total
Balance as of December 31, 2014	$	3,742	$	6,706		$	2,018		$	12,466
Other⁽¹⁾	—		(2		)	(4		)	(6		)
Balance as of December 31, 2015	$	3,742	$	6,704		$	2,014		$	12,460
Businesses sold and other⁽¹⁾	—		(10		)	—			(10		)
Balance as of December 31, 2016	$	3,742	$	6,694		$	2,014		$	12,450


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

Accumulated goodwill impairment losses at December 31, 2016 and 2015, totaled $570 million at Aerospace Systems.

Purchased Intangible Assets

Purchased intangible assets at December 31, 2016 and 2015 totaled $61 million and $77 million, respectively, net of accumulated amortization of $1.8 billion at each respective year end.

Amortization expense for 2016, 2015 and 2014, was $16 million, $22 million and $22 million, respectively. The company’s purchased intangible assets are being amortized over an aggregate weighted-average period of 22 years. As of December 31, 2016, the expected future amortization of purchased intangibles for each of the next five years is approximately $10 million per year.

- 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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