Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Oct. 02, 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 three quarters ended October 2, 2020, were as follows:

(In millions)	Integrated Mission Systems		Space and Airborne Systems		Communication Systems		Aviation Systems		Total
Balance at January 3, 2020	$	5,768	$	5,131	$	4,243	$	4,859	$	20,001
Goodwill decrease from divestitures(1)	—		(2)		(9)		(530)		(541)
Impairment of goodwill	—		(5)		—		(364)		(369)
Currency translation adjustments	(3)		(4)		(2)		1		(8)
Other (including adjustments to previously estimated fair value of assets acquired and liabilities assumed)(2)	740		112		(82)		(861)		(91)
Balance at October 2, 2020	$	6,505	$	5,232	$	4,150	$	3,105	$	18,992

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(1)During the three quarters ended October 2, 2020, we completed the divestiture of three businesses (airport security and automation business, Applied Kilovolts and Analytical Instrumentation business and EOTech business) and derecognized $541 million of goodwill as the part of determining the gain or loss on these divestitures. See Note C — Business Divestitures and Assets Sales in these Notes for additional information.

(2)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

Identifiable intangible assets are summarized below:

	October 2, 2020						January 3, 2020
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount(1)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	6,923	$	1,103	$	5,820	$	6,518	$	653	$	5,865
Developed technologies	670		242		428		768		183		585
Contract backlog	19		15		4		—		—		—
Trade names — divisions	138		43		95		165		35		130
Other	4		3		1		10		4		6
Total identifiable intangible assets subject to amortization	7,754		1,406		6,348		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 identifiable intangible assets	$	9,578	$	1,406	$	8,172	$	9,333	$	875	$	8,458

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(1)During the three quarters ended October 2, 2020, we completed the divestiture of three businesses and derecognized $296 million of intangibles as part of the gain or loss on these divestitures. Additionally, in connection with a pending divestiture, we reclassified $5 million of identifiable intangible assets to “Assets of disposal group held for sale” in our Condensed Consolidated Balance Sheet (Unaudited) at October 2, 2020. See Note C — Business Divestitures and Assets Sales in these Notes for additional information regarding divestitures.

Schedule of Identifiable Intangible Assets Not Subject to Amortization

Identifiable intangible assets are summarized below:

	October 2, 2020						January 3, 2020
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount(1)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	6,923	$	1,103	$	5,820	$	6,518	$	653	$	5,865
Developed technologies	670		242		428		768		183		585
Contract backlog	19		15		4		—		—		—
Trade names — divisions	138		43		95		165		35		130
Other	4		3		1		10		4		6
Total identifiable intangible assets subject to amortization	7,754		1,406		6,348		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 identifiable intangible assets	$	9,578	$	1,406	$	8,172	$	9,333	$	875	$	8,458

_______________

(1)During the three quarters ended October 2, 2020, we completed the divestiture of three businesses and derecognized $296 million of intangibles as part of the gain or loss on these divestitures. Additionally, in connection with a pending divestiture, we reclassified $5 million of identifiable intangible assets to “Assets of disposal group held for sale” in our Condensed Consolidated Balance Sheet (Unaudited) at October 2, 2020. See Note C — Business Divestitures and Assets Sales in these Notes for additional information regarding divestitures.

Schedule of Future Estimated Amortization Expense For Identifiable Intangible Assets

Future estimated amortization expense for identifiable intangible assets subject to amortization is as follows:

	(In millions)
Year 1	$	682
Year 2	685
Year 3	677
Year 4	647
Year 5	598
Thereafter	3,059
Total	$	6,348