Intangible Assets

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Intangible assets, including the preliminary fair values of those acquired through the acquisition of the IS&GS Business, consisted of the following:

	March 31, 2017							December 30, 2016
	Gross carrying value		Accumulated amortization			Net carrying value		Gross carrying value		Accumulated amortization			Net carrying value
	(in millions)
Finite-lived intangible assets:
Programs and contract intangibles	$	1,450	$	(57	)	$	1,393	$	1,450	$	(25	)	$	1,425
Backlog	200		(91		)	109		200		(54		)	146
Software and technology	61		(48		)	13		61		(48		)	13
Customer relationships	6		(5		)	1		6		(5		)	1
Total finite-lived intangible assets	1,717		(201		)	1,516		1,717		(132		)	1,585
Indefinite-lived intangible assets:
Trade names	4		—			4		4		—			4
Total intangible assets	$	1,721	$	(201	)	$	1,520	$	1,721	$	(132	)	$	1,589

Amortization expense related to intangible assets, including those acquired through the Transactions, was $69 million and $1 million for the quarter ended March 31, 2017, and April 1, 2016, respectively. The acquired programs and contract intangible assets are amortized over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future discounted cash flows. The acquired backlog intangible assets, as well as the Company's existing customer relationships and software and technology intangible assets, are amortized on a straight-line basis over their estimated useful lives.

The estimated annual amortization expense as of March 31, 2017, was as follows:

Fiscal Year Ending
	(in millions)
2017 (remainder of year)	$	208
2018	213
2019	188
2020	165
2021	139
2022 and thereafter	603
	$	1,516

The acquired asset balances related to the Transactions may change upon final valuation (see "Note 2–Acquisitions").