Goodwill and Identifiable Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2012

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			C3ISR			AM&M			NSS			Consolidated Total
	(in millions)
Balance at December 31, 2010	$	4,405		$	868		$	1,172		$	1,060		$	7,505
Business acquisitions		22			3			2			—			27
Impairment loss		(43	)		—			—			—			(43	)
Foreign currency translation(1)		(12	)		—			(5	)		—			(17	)
Segment reclassification(2)		168			(74	)		—			(94	)		—
Balance at December 31, 2011	$	4,540		$	797		$	1,169		$	966		$	7,472
Business acquisitions		250			—			—			—			250
Foreign currency translation(1)		14			—			6			2			22
Balance at December 31, 2012	$	4,804		$	797		$	1,175		$	968		$	7,744

⁽¹⁾  The changes in goodwill from foreign currency translation adjustments are due to fluctuations in the U.S. dollar and foreign currency exchange rates. The increases in goodwill presented in the Electronic Systems, AM&M and NSS segments during 2012 was primarily due to the weakening of the U.S. dollar against the Euro, Canadian dollar and the British pound. Conversely, the decrease in goodwill presented in the Electronic Systems and AM&M segments during 2011 was primarily due to the strengthening of the U.S. dollar against the Canadian dollar and the Euro.

⁽²⁾  As a result of re-alignments of business units in the Company’s management and organizational structure, goodwill was reclassified on a relative fair value basis among the Electronic Systems, C³ISR and NSS segments.

Identifiable Intangible Assets

Information on the Company’s identifiable intangible assets that are subject to amortization is presented in the table below.

	December 31, 2012							December 31, 2011
	Weighted 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	19	$	460	$	225	$	235	$	422	$	192	$	230
Technology	11		164		98		66		149		87		62
Other	17		27		14		13		27		11		16
Total	17	$	651	$	337	$	314	$	598	$	290	$	308

Amortization Expense

Amortization expense recorded by the Company for its identifiable intangible assets is presented in the table below.

	Year Ended December 31,
	2012		2011		2010
	(in millions)
Amortization expense	$	47	$	54	$	46

Estimated Amortization Expense

Based on gross carrying amounts at December 31, 2012, the Company’s estimate of amortization expense for identifiable intangible assets for the years ending December 31, 2013 through 2017 are presented in the table below.

	Year Ending December 31,
	2013		2014		2015		2016		2017
	(in millions)
Estimated amortization expense	$	39	$	42	$	37	$	31	$	30