ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 27, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [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 and the adjustments recognized during the measurement period:

(In millions)	Preliminary as of July 28, 2023		Measurement Period Adjustments, Net(1)		Final as of September 27, 2024
Receivables	$	156	$	—	$	156
Contract assets	338		(137)		201
Inventories, net	14		—		14
Income taxes receivable	3		2		5
Other current assets	114		19		133
Property, plant and equipment	574		10		584
Goodwill	2,348		554		2,902
Intangible assets	2,860		—		2,860
Other non-current assets	609		66		675
Total assets acquired	$	7,016	$	514	$	7,530
Current portion of long-term debt, net	$	1	$	—	$	1
Accounts payable	145		—		145
Contract liabilities	310		152		462
Compensation and benefits	116		1		117
Income taxes payable	6		(3)		3
Other current liabilities	278		390		668
Long-term debt, net	41		—		41
Deferred income taxes	398		(52)		346
Other long-term liabilities	1,006		26		1,032
Total liabilities assumed	$	2,301	$	514	$	2,815
Fair value of consideration transferred	$	4,715	$	—	$	4,715

_______________

(1)Fair value adjustments during the measurement period primarily related to EAC updates for circumstances existing at the acquisition date, including updates to the forward loss provision and off-market customer contract reserve described below, refinements to the fair value of fixed assets, as well as corresponding adjustments to the deferred tax liability account which was partially offset by the release of a portion of the uncertain tax position previously recorded by AJRD.

Schedule of Identifiable Intangible Assets Acquired

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

	Total		Useful Lives
	(In millions)		(In Years)
Customer relationships:
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

Schedule of Business Divestitures and Asset Sales

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

(In millions)	September 27, 2024		December 29, 2023
Receivables, net	$	96	$	80
Contract assets	60		43
Inventories, net	158		145
Other current assets	22		33
Property, plant and equipment, net	48		41
Goodwill	536		534
Intangible assets, net	264		263
Other non-current assets	49		40
Valuation allowance	(103)		(73)
Total assets held for sale	$	1,130	$	1,106
Current portion of long-term debt	$	1	$	—
Accounts payable	88		111
Contract liabilities	43		48
Compensation and benefits	7		11
Other current liabilities	38		38
Long-term debt, net	3		—
Other long-term liabilities	63		64
Total liabilities held for sale	$	243	$	272