ACQUISITIONS AND DIVESTITURES (Tables)

3 Months Ended

Mar. 29, 2024

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions Consideration Transferred

As of the acquisition date, the fair value of consideration transferred consisted of the following:

(In millions)	July 28, 2023
Cash consideration paid for AJRD outstanding common stock & equity awards	$	4,748
AJRD debt settled by L3Harris	257
Cash consideration paid	5,005
Less cash acquired	(290)
Fair value of consideration transferred	$	4,715

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the fair value of consideration transferred to assets acquired and liabilities assumed as of the acquisition date:

	July 28, 2023
(In millions)	Preliminary		Measurement Period Adjustments, Net(1)		Preliminary Adjusted
Receivables	$	156	$	—	$	156
Contract assets	338		(69)		269
Inventories	14		—		14
Other current assets	117		19		136
Property, plant and equipment	574		11		585
Goodwill	2,348		125		2,473
Other intangible assets	2,860		—		2,860
Other non-current assets	609		65		674
Total assets acquired	$	7,016	$	151	$	7,167
Current portion of long-term debt, net	$	1	$	—	$	1
Accounts payable	145		—		145
Contract liabilities	310		45		355
Compensation and benefits	116		1		117
Income taxes payable	6		(1)		5
Other accrued items	278		81		359
Long-term debt, net	41		—		41
Deferred income taxes	398		82		480
Other long-term liabilities	1,006		(57)		949
Total liabilities assumed	$	2,301	$	151	$	2,452
Fair value of consideration transferred	$	4,715	$	—	$	4,715

_______________

(1)Fair value adjustments during the measurement period primarily related to EAC updates, refinements to the fair value of fixed assets, as well as an update to the deferred tax liability which was offset by the release of a portion of the uncertain tax position previously booked by AJRD.

Schedule of Identifiable Intangible Assets Acquired

The preliminary fair value and weighted-average amortization period of identifiable intangible assets acquired as of the acquisition date is as follows:

	Total		Useful Lives
	(In millions)		(In Years)
Customer relationships:(1)
Backlog	$	355	3
Government programs	2,385		15 - 20
Total customer relationships	2,740
Trade names	120		15
Total identifiable intangible assets acquired	$	2,860

_______________

(1)AJRD had backlog and government programs intangible assets that we classified as customer relationships.

Schedule of Business Divestitures and Asset Sales

The carrying amounts of the assets and liabilities of the CAS Disposal Group is classified as held for sale in our Condensed Consolidated Balance Sheet as of March 29, 2024 were as follows:

(In millions)	March 29, 2024
Receivables, net	$	94
Contract assets	48
Inventories	162
Other current assets	23
Property, plant and equipment, net	41
Goodwill	534
Other intangible assets, net	263
Other non-current assets	48
Valuation allowance	(77)
Total assets held for sale	$	1,136
Accounts payable	$	93
Contract liabilities	49
Compensation and benefits	6
Other accrued items	34
Other long-term liabilities	63
Total liabilities held for sale	$	245