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GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Jan. 02, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
NOTE 6: GOODWILL AND INTANGIBLE ASSETS
Goodwill
Changes in the carrying amount of goodwill, by business segment, were as follows:
(In millions)CSIMSSASARTotal
Balance as of December 29, 2023$4,940 $6,564 $6,110 $2,365 $19,979 
Goodwill increase from acquisitions(1)
— — — 537 537 
Goodwill decrease from divestitures(2)
— — (79)(50)(129)
Impairment of goodwill
— — (14)— (14)
Currency translation adjustments(2)(28)(18)— (48)
Balance as of January 3, 2025 pre-realignment4,938 6,536 5,999 2,852 20,325 
Reallocation of goodwill in business realignment(3)
— (114)— 114 — 
4,938 6,422 5,999 2,966 20,325 
Assets of business held for sale
— (120)— (165)(285)
Impairment of goodwill
— — — (85)(85)
Currency translation adjustments— 24 31 — 55 
Balance as of January 2, 2026$4,938 $6,326 $6,030 $2,716 $20,010 
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(1)    Goodwill recognized in connection with the Aerojet Rocketdyne Holdings, Inc. (“AJRD”) acquisition. See Note 13: Acquisitions and Divestitures in these Notes for further information.
(2)    SAS: Goodwill (net of impairment) derecognized in connection with the Antenna disposal group divestiture. See discussion under “Goodwill Impairments" below. AR: Goodwill derecognized in connection with the AOT disposal group divestiture.
(3)    See discussion under “Reallocation of Goodwill in Business Realignments" below.

Accumulated impairment losses are summarized below:
(In millions)January 2, 2026January 3, 2025
CS$355 $355 
IMS(1)
195 954 
SAS80 80 
AR(2)
257 172 
Accumulated impairment losses$887 $1,561 
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(1)    Decrease of $759 million in connection with the CAS disposal group divestiture. See Note 13: Acquisitions and Divestitures in these Notes for further information.
(2)    Increase due to $85 million impairment recognized in connection with the Space Technology disposal group pending divestiture. See discussion under “Goodwill Impairments" below.

Reallocation of Goodwill in Business Realignments. To better align our businesses, we adjusted our reporting within our business segments and goodwill reporting units as follows:
Fiscal 2025. We transferred our FOS business from our IMS segment (within the TSS and 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.
Fiscal 2024. We realigned our Electro Optical and Maritime sectors in our IMS segment, which are also reporting units, splitting Electro Optical into two sectors, Global Optical Systems and DE, and moving one Electro Optical business to the Maritime sector. Global Optical Systems and DE represent one reporting unit. Immediately before
and after the realignment, we performed a quantitative impairment assessment under our former and new reporting unit structure. These assessments indicated no impairment existed either before or after the realignment.
Goodwill Impairments. We assess goodwill for impairment annually or under certain circumstances more frequently, such as when events or circumstances indicate there may be impairment.
Fiscal 2025. As further discussed in Note 13: Acquisitions and Divestitures in these Notes, during fourth quarter 2025, we entered into an agreement with a third party to sell a controlling interest in our Space Technology disposal group, a newly established technology company, consisting of our SPPS business, reported in our AR segment (also a reporting unit), and the SA&C business, reported in our IMS segment (within the TSS and DE reporting unit). In connection with the transaction, goodwill of $250 million and $120 million was allocated to the SPPS business and SA&C business, respectively, on a relative fair value basis.
In connection with the preparation of our financial statements for fiscal 2025, we performed quantitative impairment assessments on goodwill assigned to the SPPS business and SA&C business and qualitative impairment assessments on the goodwill assigned to the retained businesses of the AR and TSS and DE reporting units. As a result of these tests, we determined that the fair value of the SPPS business was below its carrying value and accordingly recorded a non-cash charge for impairment of $85 million, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations. Our assessments for the SA&C business and retained businesses of the AR and TSS and DE reporting units indicated no impairment existed.
Fiscal 2024. On May 31, 2024, we completed the divestiture of Antenna disposal group. As the Antenna disposal group represents the disposal of a portion of the SAS reporting unit, which is also the SAS segment, we assigned $93 million of goodwill to the Antenna disposal group on a relative fair value basis. In connection with the preparation of our financial statements for the quarter and two quarters ended June 28, 2024, we performed a quantitative impairment assessment on goodwill assigned to the Antenna disposal group and a qualitative impairment assessment on the goodwill assigned to the retained businesses of the reporting unit. As a result of these tests, we determined that the fair value of the Antenna disposal group was below its carrying value and accordingly recorded a non-cash charge for impairment of $14 million included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations.
Fiscal 2023. On November 27, 2023, we entered into a definitive agreement to sell our CAS disposal group, which includes both the CTS and Commercial Aviation reporting units. In connection with the preparation of our financial statements for fiscal 2023, we evaluated the facts and circumstances which impacted the agreed upon selling price of the CAS disposal group and identified interim indicators of impairment within both reporting units subsequent to our annual impairment testing date of October 2, 2023. Specifically, supply chain-related operational challenges which negatively impact cash flows over the short-term forecast period were assessed in combination with our long-term portfolio shaping strategy to dispose of non-core businesses. As a result, we performed quantitative impairment tests for both reporting units as of November 27, 2023, utilizing an income approach aligned to market prices for the two reporting units, as specified in the definitive agreement. As a result of these tests, we determined that the fair value of the CTS reporting unit was above carrying value, while the fair value of the Commercial Avionics reporting unit was below its carrying value, and concluded goodwill related to the Commercial Aviation reporting unit was impaired. Therefore we recorded a non-cash charge for impairment of $296 million associated with the Commercial Aviation reporting unit in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations. For additional information on the CAS disposal group, see Note 13: Acquisitions and Divestitures in these Notes.
Intangible Assets
Intangible assets, net, are summarized below:
 January 2, 2026January 3, 2025
(In millions)Gross Carrying
Amount		Accumulated
Amortization		Net Carrying Amount Gross Carrying
Amount		Accumulated
Amortization		Net Carrying Amount
Customer relationships(1)
$8,329 $(4,031)$4,298 $8,817 $(3,470)$5,347 
Developed technologies(1)
849 (544)305 849 (482)367 
Trade names(1)
175 (75)100 185 (64)121 
Other6 (3)3 3 (2)1 
Total finite-lived intangible assets(2)
9,359 (4,653)4,706 9,854 (4,018)5,836 
Trade name(1)
1,803 — 1,803 1,803 — 1,803 
Intangible assets, net$11,162 $(4,653)$6,509 $11,657 $(4,018)$7,639 
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(1)Includes acquisition-related intangibles that benefit the entire Company. As such, these assets and associated amortization are reported at Corporate.
(2)In connection with the pending divestiture of the Space Technology disposal group, $373 million of finite-lived intangibles assets were reclassified to held for sale in our Consolidated Balance Sheet as of January 2, 2026.

Amortization expense for intangible assets was $770 million, $853 million and $779 million in fiscal 2025, 2024 and 2023, respectively. Estimated amortization expense for intangible assets over the next five years and, in total thereafter, are: $632 million in fiscal 2026, $532 million in fiscal 2027, $459 million in fiscal 2028, $403 million in fiscal 2029, $386 million in fiscal 2030, and $2.3 billion thereafter.