GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 28, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE E: GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill, by business segment, were as follows:


(In millions)	CS		IMS(1)		SAS		AR(1)		Total

Balance as of January 3, 2025	$	4,938	$	6,422	$	5,999	$	2,966	$	20,325


Currency translation adjustments			3		9		—		12
Balance as of March 28, 2025	$	4,938	$	6,425	$	6,008	$	2,966	$	20,337

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(1)Balances reflect impact of FOS business realignment, as discussed under the “Reallocation of Goodwill in Business Realignment” heading below in this Note.

As of both March 28, 2025 and January 3, 2025, accumulated goodwill impairment losses were $355 million, $80 million and $172 million in our CS, SAS and AR segments, respectively. As of March 28, 2025 and January 3, 2025, accumulated goodwill impairment losses were $954 million and $195 million, respectively, in our IMS segment. In connection with the CAS disposal group divestiture, IMS derecognized $759 million of accumulated goodwill impairment losses. See Note N: Divestiture in these Notes for further information.

Reallocation of Goodwill in Business Realignment. Effective in first quarter 2025, to better align our businesses, we transferred our FOS business from our IMS segment (within the Targeting & Sensor Systems (“TSS”) and Defense Electronics (“DE”) reporting unit) to our AR segment (also a reporting unit) and adjusted our reporting accordingly. In connection with the realignment, goodwill of $114 million, net of accumulated impairment losses of $172 million, was allocated to FOS on a relative fair value basis. Given the economic similarities of FOS and the businesses of our AR reporting unit, all FOS goodwill was absorbed into the existing AR reporting unit. Immediately before and after the realignment, we performed qualitative impairment assessments under our former and new reporting unit structure. These assessments indicated no impairment existed either before or after the realignment.

Intangible Assets

Intangible assets, net are summarized below:


	March 28, 2025						January 3, 2025
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Customer relationships	$	8,822	$	(3,646)	$	5,176	$	8,817	$	(3,470)	$	5,347
Developed technologies	850		(499)		351		849		(482)		367
Trade names	185		(67)		118		185		(64)		121
Other, including contract backlog	3		(3)		—		3		(2)		1
Total finite-lived intangible assets	9,860		(4,215)		5,645		9,854		(4,018)		5,836

Trade name — indefinite-lived	1,803		—		1,803		1,803		—		1,803
Total intangible assets, net	$	11,663	$	(4,215)	$	7,448	$	11,657	$	(4,018)	$	7,639

Amortization expense for intangible assets was $194 million and $217 million for first quarter 2025 and 2024, respectively.

The following table presents future estimated amortization expense for intangible assets:


	(In millions)

Next 12 months	$	760
Months 13-24	626
Months 25-36	556
Months 37-48	463
Months 49-60	429
Thereafter	2,811
Total	$	5,645