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Goodwill and Other Purchased Intangible Assets
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
8. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS
Goodwill
As discussed in Note 2, Innovation Systems was established as a new, fourth business sector of the company. The Merger resulted in the recognition of $6.2 billion of goodwill, a majority of which was allocated to the Innovation Systems sector. A portion of this goodwill was allocated to the company’s other sectors based on expected revenue synergies generated by the integration of their products and technologies with those of Innovation Systems. The amount of goodwill recognized is subject to change, pending the final determination of the fair value of assets acquired and liabilities assumed in connection with the Merger (see Note 2).
Changes in the carrying amounts of goodwill for the years ended December 31, 2017 and 2018, were as follows:
$ in millions
 
Aerospace Systems
 
Innovation Systems
 
Mission Systems
 
Technology Services
 
Total
Balance as of December 31, 2016
 
$
3,742

 
$

 
$
6,694

 
$
2,014

 
$
12,450

Other(1)
 

 

 
2

 
3

 
5

Balance as of December 31, 2017
 
$
3,742

 
$

 
$
6,696

 
$
2,017

 
$
12,455

Acquisition of Orbital ATK
 
418

 
5,256

 
469

 
79

 
6,222

Other(1)
 

 

 
(2
)
 
(3
)
 
(5
)
Balance as of December 31, 2018
 
$
4,160

 
$
5,256

 
$
7,163

 
$
2,093

 
$
18,672

(1) 
Other consists primarily of adjustments for foreign currency translation.
Accumulated goodwill impairment losses at December 31, 2018 and 2017, totaled $570 million at Aerospace Systems.
Other Purchased Intangible Assets
Net customer-related and other intangible assets, including the fair value of purchased intangible assets acquired in the Merger, are as follows:
 
 
December 31
$ in millions
 
2018
 
2017
Gross customer-related and other intangible assets
 
$
3,356

 
$
1,833

Less accumulated amortization
 
(1,984
)
 
(1,781
)
Net customer-related and other intangible assets
 
$
1,372

 
$
52


Amortization expense for 2018, 2017 and 2016, was $203 million, $14 million and $16 million, respectively. The company’s other purchased intangible assets are being amortized over an aggregate weighted-average period of 12 years. As of December 31, 2018, the expected future amortization of purchased intangibles for each of the next five years is as follows:
$ in millions
 
 
2019
 
$
331

2020
 
262

2021
 
204

2022
 
197

2023
 
78