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Goodwill and Identifiable Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2017
Goodwill and Identifiable Intangible Assets [Abstract]  
Changes in Goodwill by Segment
The table below presents the changes in goodwill allocated to the Company’s reporting units in each reportable segment.
Electronic
Systems
Aerospace
Systems
Communication
Systems
Sensor
Systems
Consolidated
Total
(in millions)
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
2,445
 
$
1,167
 
$
1,038
 
$
1,549
 
$
6,199
 
Accumulated impairment losses
 
(43
)
 
—
 
 
(35
)
 
(26
)
 
(104
)
 
2,402
 
 
1,167
 
 
1,003
 
 
1,523
 
 
6,095
 
Business acquisitions(1)
 
287
 
 
—
 
 
20
 
 
28
 
 
335
 
Foreign currency translation adjustments
 
(45
)
 
7
 
 
—
 
 
(18
)
 
(56
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
 
2,687
 
 
1,174
 
 
1,058
 
 
1,559
 
 
6,478
 
Accumulated impairment losses
 
(43
)
 
—
 
 
(35
)
 
(26
)
 
(104
)
 
2,644
 
 
1,174
 
 
1,023
 
 
1,533
 
 
6,374
 
Business acquisitions(1)
 
131
 
 
—
 
 
—
 
 
81
 
 
212
 
Business divestitures(2)
 
(12
)
 
—
 
 
—
 
 
—
 
 
(12
)
Foreign currency translation adjustments
 
60
 
 
14
 
 
—
 
 
19
 
 
93
 
Assets held for sale(3)
 
(10
)
 
(42
)
 
—
 
 
—
 
 
(52
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
 
2,856
 
 
1,146
 
 
1,058
 
 
1,659
 
 
6,719
 
Accumulated impairment losses
 
(43
)
 
—
 
 
(35
)
 
(26
)
 
(104
)
$
2,813
 
$
1,146
 
$
1,023
 
$
1,633
 
$
6,615
 
 
 
 
(1)
For the year ended December 31, 2017, business acquisitions for the Electronic Systems segment included the acquisitions of the ETD, Doss Aviation and G-Air businesses and the purchase price allocation adjustments for the MacH and Aerosim business acquisitions. Business acquisitions for the Sensor Systems segment included primarily the Adaptive Methods, Open Water Power, OceanServer and Kigre business acquisitions. For the year ended December 31, 2016, business acquisitions for the Electronic Systems segment included the acquisitions of the MacH and Aerosim businesses and the final purchase price allocation for L3 CTC business acquisition. Business acquisition for the Communication Systems segment included the ATM business acquisition. Business acquisitions for the Sensor Systems segment included the Micreo business acquisition and the final purchase price allocation for the L3 ForceX business acquisition.
 
(2)
The decrease for the Electronic Systems segment was due to the divestitures of Coleman and Aviation Jet Services during the quarterly period ended March 31, 2017.
 
(3)
The Aerostructures businesses from the Company’s Aerospace Systems segment are classified as held for sale as of December 31, 2017.
Identifiable Intangible Assets
The table below presents information for the Company’s identifiable intangible assets that are subject to amortization and indefinite-lived intangible assets.
December 31, 2017
December 31, 2016
Weighed Average
Amortization
Period
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
(in years)
(in millions)
Customer contractual relationships
14
$
393
 
$
257
 
$
136
 
$
360
 
$
229
 
$
131
 
Technology
10
 
189
 
 
114
 
 
75
 
 
191
 
 
102
 
 
89
 
Other
15
 
29
 
 
14
 
 
15
 
 
21
 
 
12
 
 
9
 
Total subject to amortization
 
611
 
 
385
 
 
226
 
 
572
 
 
343
 
 
229
 
IPR&D
indefinite
 
66
 
 
—
 
 
66
 
 
—
 
 
—
 
 
—
 
Total
$
677
 
$
385
 
$
292
 
$
572
 
$
343
 
$
229
 
Amortization Expense
The table below presents amortization expense recorded by the Company for its identifiable intangible assets.
Year Ended December 31,
2017
2016
2015
(in millions)
Amortization expense
$
43
 
$
33
 
$
32
 
Estimated Amortization Expense
Based on gross carrying amounts at December 31, 2017, the Company’s estimate of amortization expense for identifiable intangible assets for the years ending December 31, 2018 through 2022 is presented in the table below.
Year Ending December 31,
2018
2019
2020
2021
2022
(in millions)
Estimated amortization expense
$
44
 
$
39
 
$
31
 
$
25
 
$
21