Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jul. 03, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill by Business Segments

The assignment of goodwill by business segment, and changes in the carrying amount of goodwill, by business segment, for the two quarters ended July 3, 2020, were as follows:

	Integrated Mission Systems		Space and Airborne Systems		Communication Systems		Aviation Systems		Total
	(In millions)
Balance at January 3, 2020	$	5,768	$	5,131	$	4,243	$	4,859	$	20,001
Goodwill decrease from divestitures(1)	—		(2)		—		(531)		(533)
Decrease from reclassification to assets of disposal group held for sale(2)	—		—		(9)		—		(9)
Impairment of goodwill	—		(5)		—		(364)		(369)
Currency translation adjustments	3		(7)		(2)		(5)		(11)
Other (including adjustments to previously estimated fair value of assets acquired and liabilities assumed)(3)	740		124		(81)		(847)		(64)
Balance at July 3, 2020	$	6,511	$	5,241	$	4,151	$	3,112	$	19,015

_______________

(1)During the quarter ended July 3, 2020, we completed the divestitures of our airport security and automation business and our Applied Kilovolts and Analytical Instrumentation business and derecognized $533 million of goodwill as the part of determining the gain or loss on the sale of these businesses. See Note C — Business Divestitures and Assets Sales in these Notes for additional information.

(2)In connection with the then-pending divestiture of our EOTech business, we assigned $9 million of goodwill to “Assets of disposal groups held for sale” in our Condensed Consolidated Balance Sheet (Unaudited) as of July 3, 2020. See Note C — Business Divestitures and Assets Sales in these Notes for additional information.

(3)See Note B — Business Combination in these Notes for additional information regarding adjustments to previously estimated fair values of assets acquired and liabilities assumed.

Schedule of Identifiable Intangible Assets Subject to Amortization

Intangible assets are summarized below:

	July 3, 2020						January 3, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount(1)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Customer relationships	$	6,911	$	950	$	5,961	$	6,518	$	653	$	5,865
Developed technologies	667		222		445		768		183		585
Contract backlog	19		13		6		—		—		—
Trade names — divisions	138		40		98		165		35		130
Other	4		2		2		10		4		6
Total intangible assets subject to amortization	7,739		1,227		6,512		7,461		875		6,586
In-process research and development	21		—		21		69		—		69
L3 trade name	1,803		—		1,803		1,803		—		1,803
Total intangibles assets	$	9,563	$	1,227	$	8,336	$	9,333	$	875	$	8,458

(1)During the quarter ended July 3, 2020, we completed the divestitures of the airport security and automation business and Applied Kilovolts and Analytical Instrumentation business and derecognized $286 million of intangibles as part of the gain or loss on the sale of these businesses. Additionally, in connection with two pending divestitures, we reclassified $15 million of intangibles to “Assets of disposal groups held for sale” in our Condensed Consolidated Balance Sheet (Unaudited) as of July 3, 2020. See Note C — Business Divestitures and Assets Sales in these Notes for additional information regarding divestitures.

Schedule of Indefinite-Lived Intangible Assets

Intangible assets are summarized below:

	July 3, 2020						January 3, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount(1)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Customer relationships	$	6,911	$	950	$	5,961	$	6,518	$	653	$	5,865
Developed technologies	667		222		445		768		183		585
Contract backlog	19		13		6		—		—		—
Trade names — divisions	138		40		98		165		35		130
Other	4		2		2		10		4		6
Total intangible assets subject to amortization	7,739		1,227		6,512		7,461		875		6,586
In-process research and development	21		—		21		69		—		69
L3 trade name	1,803		—		1,803		1,803		—		1,803
Total intangibles assets	$	9,563	$	1,227	$	8,336	$	9,333	$	875	$	8,458

(1)During the quarter ended July 3, 2020, we completed the divestitures of the airport security and automation business and Applied Kilovolts and Analytical Instrumentation business and derecognized $286 million of intangibles as part of the gain or loss on the sale of these businesses. Additionally, in connection with two pending divestitures, we reclassified $15 million of intangibles to “Assets of disposal groups held for sale” in our Condensed Consolidated Balance Sheet (Unaudited) as of July 3, 2020. See Note C — Business Divestitures and Assets Sales in these Notes for additional information regarding divestitures.

Schedule of Future Estimated Amortization Expense For Amortizable Intangible Assets

Future estimated amortization expense for amortizable intangible assets is as follows:

	(In millions)
Year 1	$	441
Year 2	684
Year 3	679
Year 4	657
Year 5	611
Thereafter	3,440
Total	$	6,512