ACQUISITIONS AND DIVESTITURES (Tables)

12 Months Ended

Jan. 03, 2025

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Calculation of Consideration Transferred

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

(In millions)	January 3, 2023
Purchase price	$1,958
Estimated net working capital and other adjustments	15
Cash consideration paid	1,973
Settlement of preexisting relationship(1)	1
Fair value of consideration transferred	$1,974

_______________

(1)Prior to the acquisition, we had a preexisting relationship with Viasat’s TDL business in the normal course of business. As of the acquisition

date, our CS segment had a receivable from Viasat’s TDL business with a fair value of $1 million that was settled in connection with the

acquisition.

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

Consideration Paid for Acquisition

The following table summarizes the 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 January 3, 2023	Measurement Period Adjustments, Net(1),(2)	Final as of December 29, 2023
Receivables	$28	$—	$28
Contract assets	18	11	29
Inventories, net	164	(18)	146
Other current assets	9	—	9
Property, plant and equipment	50	(1)	49
Goodwill	1,014	129	1,143
Other intangible assets	850	(95)	755
Deferred income taxes	33	2	35
Other non-current assets	18	(1)	17
Total assets acquired	$2,184	$27	$2,211
Accounts payable	$20	$—	$20
Contract liabilities	28	—	28
Compensation and benefits	2	—	2
Other current liabilities	119	17	136
Other long-term liabilities	41	10	51
Total liabilities assumed	$210	$27	$237
Net assets acquired	$1,974	$—	$1,974

_______________

(1)Fair value adjustments during the fiscal year ended December 29, 2023 primarily related to refined assumptions in the valuation of customer

relationship intangible assets.

(2)Assets acquired include $11 million of Contract assets that were reclassified from Inventories, net to Contract assets to conform TDL’s

accounting policies with those of L3Harris, as required under ASC 805. As such, reclassified amounts will not be recognized as revenue in

future periods.

The following table summarizes the 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
Other current assets	114	19	133
Income taxes receivable	3	2	5
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 is as

follows:

	Total	Useful Lives
	(In millions)	(In Years)
Customer relationships:
Backlog	$83	2
Government programs	323	16
Total customer relationships	406
Developed technology	349	17
Total identifiable intangible assets acquired	$755

The fair

value and weighted-average amortization period of identifiable intangible assets acquired as of the acquisition date

are as follows:

	Total (in millions)	Useful Lives (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 Pro Forma Results

The following table includes revenue and income before income taxes of TDL included in our

Consolidated Statement of Operations for the acquisition date through December 29, 2023 and the comparable

periods of calendar year 2022. The comparable period results do not include any integration synergies or accounting

conformity adjustments and are not necessarily indicative of our results of operations that actually would have been

obtained had the acquisition of TDL been completed for the period presented, or which may be realized in the future.

	Fiscal Year Ended
(In millions)	December 29, 2023	December 30, 2022
Revenue	$365	$358
Income before income taxes	131	68

Schedule of Business Divestitures and Asset Sales

The carrying amounts of the assets and liabilities of the CAS disposal group classified as held for sale in our

Consolidated Balance Sheet were as follows:

(In millions)	January 3, 2025	December 29, 2023
Receivables, net	$99	$80
Contract assets	40	43
Inventories, net	153	145
Other current assets	20	33
Property, plant and equipment, net	47	41
Goodwill	533	534
Intangible assets, net	263	263
Other non-current assets	49	40
Valuation allowance	(73)	(73)
Total assets held for sale	$1,131	$1,106
Current portion of long-term debt	$1	$—
Accounts payable	85	111
Contract liabilities	47	48
Compensation and benefits	6	11
Other current liabilities	35	38
Long-term debt, net	3	—
Other long-term liabilities	58	64
Total liabilities held for sale	$235	$272