RESTRUCTURING AND OTHER EXIT COSTS

6 Months Ended

Jun. 28, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND OTHER EXIT COSTS

NOTE N: RESTRUCTURING AND OTHER EXIT COSTS

From time to time, we record charges for restructuring and other exit activities related to changes in management structure and fundamental reorganizations that affect the nature and focus of operations, such as our LHX NeXt initiative, described below. Such charges may include severance benefits and costs to consolidate facilities or relocate employees. We record these charges at their fair value when incurred. In cases where employees are required to render service until they are terminated in order to receive the termination benefits and will be retained beyond the minimum retention period, we record the expense ratably over the future service period.

LHX NeXt Initiative. LHX NeXt is our initiative to reduce cost and transform our systems and processes to increase agility and competitiveness, as discussed in more detail under the “Operating Environment, Strategic Priorities and Key Performance Measures” section in Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2023 Form 10-K.

Changes to our liabilities for restructuring and other exit costs during the two quarters ended June 28, 2024 were as follows:

(In millions)	Employee Severance Related Costs
Balance at December 29, 2023(1)	$	4
Additional provisions(2)	65
Payments	(60)
Total changes	5
Balance at June 28, 2024(1)	$	9

_______________

(1)Our liabilities, which we expect will be paid in the next twelve months, are included in the “Compensation and benefits” line item in our Condensed Consolidated Balance Sheet.

(2)Included as a component of the “General and administrative expenses” line item in our Condensed Consolidated Statement of Operations.