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BUSINESS SEGMENT INFORMATION (Tables)
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Schedule of Selected Financial Information by Business Segments
Segment revenue, segment operating income and a reconciliation of segment operating income to total income before income taxes are as follows:
Quarter EndedTwo Quarters Ended
(In millions)June 30, 2023July 1, 2022June 30, 2023July 1, 2022
Revenue from Product Sales and Services
IMS$1,735 $1,608 $3,435 $3,267 
SAS1,715 1,572 3,370 3,089 
CS1,289 993 2,452 1,956 
Corporate eliminations(46)(38)(93)(74)
Total revenue from product sales and services$4,693 $4,135 9,164 $8,238 
Income before Income Taxes
Segment operating income:
IMS(1)
$162 $207 $347 $458 
SAS(1)
168 203 355 380 
CS325 238 591 467 
Total segment operating income655 648 1,293 1,305 
Unallocated Items:
Unallocated corporate department (expense) income, net(2)
(35)19 (41)15 
Amortization of acquisition-related intangibles(3)
(173)(151)(338)(303)
Additional cost of sales related to the fair value step-up in inventory sold(15)— (30)— 
L3Harris merger-related integration expenses— (26)— (50)
Acquisition-related transaction and integration expenses(36)— (76)— 
Pre-acquisition and other divestiture-related expenses(2)(35)(12)(36)
Business divestiture-related gains, net26 — 26 — 
Gain on sale of asset group— 8 — 8 
Impairment of other assets(4)
(21)— (39)— 
LHX NeXt(5)
(22)— (35)— 
FAS/CAS operating adjustment(6)
23 21 45 43 
Total unallocated items(255)(164)(500)(323)
Non-operating income, net83 108 165 214 
Interest expense, net(111)(67)(213)(135)
Income before income taxes$372 $525 $745 $1,061 
_______________
(1)For the quarter ended June 30, 2023, includes non-cash charges for impairment of other assets of $12 million and $27 million for IMS and SAS, respectively, related to facility closures and restructuring of a customer contract impacting both segments.
(2)Includes certain corporate-level expenses that are not included in management’s evaluation of any segment’s operating performance.
(3)Includes amortization of identifiable intangible assets acquired in connection with business combinations. Because our acquisitions benefited the entire Company, the amortization of identifiable intangible assets acquired was not allocated to any segment.
(4)Includes a $21 million non-cash charge for impairment of intangible assets related to the closure of a facility during the quarter and two quarters ended June 30, 2023. See Note G: Goodwill and Other Intangible Assets in these Notes for additional information. Additionally, includes $18 million charge related to an impairment of a customer contract during the two quarters ended June 30, 2023.
(5)Costs associated with transforming multiple functions, systems and processes to increase agility and competitiveness, including third-party consulting, workforce optimization and incremental IT expenses for implementation of new systems.
(6)Represents the difference between the service cost component of Financial Accounting Standards ("FAS") pension and other postretirement benefits (“OPEB”) cost and total U.S. Government Cost Accounting Standards (“CAS”) pension and OPEB cost and replaces the “Pension adjustment” line item previously presented, which included the non-service components of FAS pension and OPEB income. See FAS/CAS operating adjustment table below.
The table below is a reconciliation of the FAS/CAS operating adjustment:
Quarter EndedTwo Quarters Ended
(In millions)June 30, 2023July 1, 2022June 30, 2023July 1, 2022
FAS pension service cost$(7)$(12)$(13)$(23)
Less: CAS pension cost(30)(33)(58)(66)
FAS/CAS operating adjustment23 21 45 43 
Non-service FAS pension income77 111 154 221 
FAS/CAS pension adjustment, net$100 $132 $199 $264 
Schedule of Disaggregation of Revenue by Segment
Disaggregation of Revenue
We disaggregate revenue for all three business segments by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Quarter Ended
June 30, 2023July 1, 2022
(In millions)IMSSASCSIMSSASCS
Revenue By Customer Relationship
Prime contractor$1,127 $1,084 $798 $1,035 $987 $691 
Subcontractor584 621 479 554 574 294 
Intersegment24 10 12 19 11 8 
Total revenue$1,735 $1,715 $1,289 $1,608 $1,572 $993 
Revenue By Contract Type
Fixed-price(1)
$1,317 $1,099 $1,102 $1,209 $918 $834 
Cost-reimbursable394 606 175 380 643 151 
Intersegment24 10 12 19 11 8 
Total revenue$1,735 $1,715 $1,289 $1,608 $1,572 $993 
Revenue By Geographical Region
United States$1,281 $1,475 $834 $1,154 $1,380 $631 
International430 230 443 435 181 354 
Intersegment24 10 12 19 11 8 
Total revenue$1,735 $1,715 $1,289 $1,608 $1,572 $993 
Two Quarters Ended
June 30, 2023July 1, 2022
(In millions)IMSSASCSIMSSASCS
Revenue By Customer Relationship
Prime contractor$2,281 $2,094 $1,605 $2,121 $1,964 $1,347 
Subcontractor1,109 1,253 822 1,111 1,104 590 
Intersegment45 23 25 35 21 19 
Total revenue$3,435 $3,370 $2,452 $3,267 $3,089 $1,956 
Revenue By Contract Type
Fixed-price(1)
$2,603 $2,121 $2,080 $2,470 $1,798 $1,631 
Cost-reimbursable787 1,226 347 762 1,270 306 
Intersegment45 23 25 35 21 19 
Total revenue$3,435 $3,370 $2,452 $3,267 $3,089 $1,956 
Revenue By Geographical Region
United States$2,538 $2,929 $1,625 $2,336 $2,722 $1,256 
International852 418 802 896 346 681 
Intersegment45 23 25 35 21 19 
Total revenue$3,435 $3,370 $2,452 $3,267 $3,089 $1,956 
_______________
(1)Includes revenue derived from time-and-materials contracts.
Schedule of Total Assets by Segment
Total assets by business segment are as follows:
(In millions)June 30, 2023December 30, 2022
Total Assets
IMS$11,030 $10,925 
SAS9,181 8,838 
CS7,129 5,800 
Corporate(1)
8,022 7,961 
Total Assets$35,362 $33,524 
_______________
(1)Identifiable intangible assets acquired in connection with business combinations were recorded as corporate assets because they benefited the entire Company. Identifiable intangible asset balances recorded as corporate assets were $6.4 billion and $6.0 billion at June 30, 2023 and December 30, 2022, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan investments, buildings and equipment, as well as any assets of businesses held for sale.