XML 39 R25.htm IDEA: XBRL DOCUMENT v3.19.1
Acquisitions and Divestitures, Goodwill and Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2019
Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract]  
Acquisition Consideration and Fair Value of Net Assets Acquired
The cash purchase price totaled $9.7 billion and consisted of the following:
CSRA shares outstanding (in millions)
165.4

Cash consideration per CSRA share
$
41.25

Cash paid to purchase outstanding CSRA shares
$
6,825

Cash paid to extinguish CSRA debt
2,846

Cash settlement of outstanding CSRA stock options and restricted stock units
78

Total purchase price
$
9,749
Estimated Fair Value of Assets Acquired and Liabilities Assumed on Acquisition Date
The following table summarizes the allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the acquisition date, with the excess recorded as goodwill:
Cash and equivalents
$
45

Accounts receivable
155

Unbilled receivables
420

Other current assets
303

Property, plant and equipment, net
326

Intangible assets, net
2,066

Goodwill
7,931

Other noncurrent assets
369

Total assets
$
11,615

Account payable
$
(135
)
Customer advances and deposits
(151
)
Current lease obligation
(51
)
Other current liabilities
(434
)
Noncurrent lease obligation
(207
)
Noncurrent deferred tax liability
(356
)
Other noncurrent liabilities
(532
)
Total liabilities
$
(1,866
)
Net assets acquired
$
9,749
Changes In The Carrying Amount of Goodwill By Reporting Unit
The changes in the carrying amount of goodwill by reporting unit were as follows:
 
Aerospace
 
Combat Systems
 
Information Technology
 
Mission Systems
 
Marine Systems
 
Total
Goodwill
December 31, 2018 (a)
$
2,813

 
$
2,633

 
$
9,622

 
$
4,229

 
$
297

 
$
19,594

Acquisitions (b)
3

 
(1
)
 
72

 
6

 
—

 
80

Other (c)
(20
)
 
9

 
1

 
4

 
—

 
(6
)
March 31, 2019 (a)
$
2,796

 
$
2,641

 
$
9,695

 
$
4,239

 
$
297


$
19,668


(a)Goodwill in the Information Technology and Mission Systems reporting units is net of $536 and $1.3 billion of accumulated impairment losses, respectively.
(b)Includes adjustments during the purchase price allocation period.
(c)Consists primarily of adjustments for foreign currency translation.
Intangible Assets
Intangible assets consisted of the following:
 
Gross Carrying Amount (a)
Accumulated Amortization
Net Carrying Amount
 
Gross Carrying Amount (a)
Accumulated Amortization
Net Carrying Amount
 
March 31, 2019
 
December 31, 2018
Contract and program
    intangible assets (b)
$
3,771

$
(1,589
)
$
2,182

 
$
3,771

$
(1,531
)
$
2,240

Trade names and trademarks
463

(180
)
283

 
469

(177
)
292

Technology and software
171

(120
)
51

 
165

(116
)
49

Other intangible assets
159

(157
)
2

 
159

(155
)
4

Total intangible assets
$
4,564

$
(2,046
)
$
2,518

 
$
4,564

$
(1,979
)
$
2,585

(a)
Change in gross carrying amounts consists primarily of adjustments for acquired intangible assets and foreign currency translation.
(b)
Consists of acquired backlog and probable follow-on work and associated customer relationships.