INTANGIBLE ASSETS

6 Months Ended

Jan. 03, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 11: INTANGIBLE ASSETS

The most significant identifiable intangible asset that is separately recognized for our business combinations is customer relationships. Our customer relationships are established through written customer contracts (revenue arrangements). The fair value for customer relationships is determined, as of the date of acquisition, based on estimates and judgments regarding expectations for the estimated future after-tax earnings and cash flows arising from the follow-on sales expected from the customer relationships over the estimated lives, including the probability of expected future contract renewals and sales, less a contributory assets charge, all of which is discounted to present value. We assess the recoverability of the carrying value of our finite-lived intangible assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. We assess the recoverability of the carrying value of indefinite-lived intangible assets annually, or under certain circumstances more frequently, such as when events and circumstances indicate there may be an impairment.

Intangible assets are summarized below:

	January 3, 2020
	Gross Carrying Amount		Accumulated Amortization		Net
	(In millions)
Customer relationships	$	6,518	$	653	$	5,865
Developed technologies	768		183		585
Trade names	165		35		130
Other	10		4		6
Total intangible assets subject to amortization	7,461		875		6,586
IPR&D	69		—		69
L3 trade name	1,803		—		1,803
Total intangible assets	$	9,333	$	875	$	8,458
	June 28, 2019
	Gross Carrying Amount		Accumulated Amortization		Net
	(In millions)
Customer relationships	$	1,203	$	419	$	784
Developed technologies	206		136		70
Trade names	42		26		16
Other	2		2		—
Total intangible assets	$	1,453	$	583	$	870
	June 29, 2018
	Gross Carrying Amount		Accumulated Amortization		Net
	(In millions)
Customer relationships	$	1,206	$	327	$	879
Developed technologies	208		119		89
Trade names	43		22		21
Other	2		2		—
Total intangible assets	$	1,459	$	470	$	989

Amortization expense related to intangible assets was $290 million for the two quarters ended January 3, 2020 and primarily related to the L3Harris Merger and our acquisition of Exelis. Amortization expense related to intangible assets was $115 million, $117 million and $126 million in fiscal 2019, 2018 and 2017, respectively, and primarily related to our acquisition of Exelis.

Future estimated amortization expense for intangible assets is as follows:

	(In millions)
2020	$	711
2021	632
2022	617
2023	596
2024	568
Thereafter	3,462
Total	$	6,586