Goodwill and Other Purchased Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

8. GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS

Goodwill

As discussed in Note 2, the Merger resulted in the recognition of $6.3 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.

Changes in the carrying amounts of goodwill for the years ended December 31, 2018 and 2019, were as follows:



$ in millions	Aerospace Systems		Innovation Systems		Mission Systems			Technology Services			Total
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
Acquisition of Orbital ATK	—		37		—			—			37
Other⁽¹⁾	—		—		—			(1		)	(1		)
Balance as of December 31, 2019	$	4,160	$	5,293	$	7,163		$	2,092		$	18,708


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

Accumulated goodwill impairment losses at December 31, 2019 and 2018, totaled $570 million at Aerospace Systems.

Other Purchased Intangible Assets

Net customer-related and other intangible assets are as follows:



	December 31
$ in millions	2019			2018
Gross customer-related and other intangible assets	$	3,356		$	3,356
Less accumulated amortization	(2,316		)	(1,984		)
Net customer-related and other intangible assets	$	1,040		$	1,372

Amortization expense for 2019, 2018 and 2017, was $332 million, $203 million and $14 million, respectively. As of December 31, 2019, the expected future amortization of purchased intangibles for each of the next five years is as follows:



$ in millions
2020	$	262
2021	204
2022	197
2023	78
2024	55