Goodwill by business segment, and changes in the carrying amount of goodwill for the three quarters ended March 31, 2017 by business segment, were as follows:



	Communication Systems		Space and Intelligence Systems			Electronic Systems			Critical Networks (3)			Total

	(In millions)
Balance at July 1, 2016 — As reported	$	781	$	1,478		$	1,650		$	2,066		$	5,975
Decrease from reclassification to assets of discontinued operations (1) (2)	—		—			—			(623		)	(623		)
Transfer of goodwill in segment realignment	$	—	$	—		$	1,443		$	(1,443	)	$	—
Balance at July 1, 2016 — After reallocation	$	781	$	1,478		$	3,093		$	—		$	5,352
Currency translation adjustments	2		(3		)	(6		)	—			(7		)
Other	2		2			18			—			22
Balance at March 31, 2017	$	785	$	1,477		$	3,105		$	—		$	5,367

(1) On January 1, 2017, we completed the sale of CapRock pursuant to a definitive agreement entered into November 1, 2016. CapRock was part of our former Critical Networks segment and is reported as discontinued operations in this Report. As a result, our goodwill balance as of July 1, 2016 has been adjusted by $136 million in order to include CapRock goodwill within our separate presentation of assets and liabilities of discontinued operations in our Condensed Consolidated Balance Sheet (Unaudited) in accordance with GAAP. The carrying amount of CapRock goodwill is included as a component of the “Current assets of discontinued operations” or “Non-current assets of discontinued operations” line item in our Condensed Consolidated Balance Sheet (Unaudited). See Note B — Discontinued Operations in these Notes for additional information.

(2) On January 26, 2017, we entered into a definitive agreement to sell IT Services. We completed the sale of IT Services on April 28, 2017. IT Services was part of our former Critical Networks segment and is reported as discontinued operations in this Report. As a result, and because the then-pending divestiture of IT Services represented the disposal of a portion of a reporting unit within our former Critical Networks segment, we assigned $487 million of goodwill to the IT Services disposal group on a relative fair value basis during the quarter ended March 31, 2017, when the held for sale criteria were met, and our goodwill balance as of July 1, 2016 has been adjusted by $487 million in order to include goodwill assigned to the IT Services disposal group within our separate presentation of assets and liabilities of discontinued operations in our Condensed Consolidated Balance Sheet (Unaudited). In conjunction with this allocation, we tested the goodwill assigned to IT Services for impairment and concluded the goodwill was impaired. We recorded a non-cash goodwill impairment charge of $228 million in discontinued operations. The remaining $259 million of goodwill for IT Services is included as a component of the “Current assets of discontinued operations” line item in our Condensed Consolidated Balance Sheet (Unaudited). See Note B — Discontinued Operations and Note S — Subsequent Events in these Notes for additional information.

(3) Effective for the quarter ended March 31, 2017, our Critical Networks segment was eliminated, and our operations that had been part of our Critical Networks segment, other than CapRock and IT Services, were operated as part of our Electronic Systems segment. As a result, we transferred $1,443 million of related goodwill to our Electronic Systems segment as of July 1, 2016, the earliest period presented in these Notes. See “Basis of Presentation” in Note A — Significant Accounting Policies and Recent Accounting Standards in these Notes for additional information.