Goodwill and Identifiable Intangible Assets (Tables)

6 Months Ended

Jun. 24, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

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			Consolidated Total
	(in millions)
Goodwill	$	3,994		$	1,691		$	1,038		$	6,723
Accumulated impairment losses		(69	)		(338	)		(35	)		(442	)

Balance at December 31, 2015		3,925			1,353			1,003			6,281

Business acquisitions⁽¹⁾		(3	)		—			22			19
Foreign currency translation adjustments⁽²⁾		(8	)		14			—			6

Balance at June 24, 2016	$	3,914		$	1,367		$	1,025		$	6,306

Goodwill	$	3,983		$	1,705		$	1,060		$	6,748
Accumulated impairment losses		(69	)		(338	)		(35	)		(442	)

	$	3,914		$	1,367		$	1,025		$	6,306

⁽¹⁾	The decrease in goodwill for the Electronic Systems segment was due to the final purchase price allocation for the CTC business acquisition. The increase in goodwill for the Communication Systems segment was due to the ATM business acquisition.

⁽²⁾

The decrease in goodwill presented in the Electronic Systems segment was due to the strengthening of the U.S. dollar against the British pound, partially offset by the weakening of the U.S. dollar against the Canadian dollar and the Euro during the first half period ended June 24, 2016. The increase in goodwill presented in the Aerospace Systems segment was due to the weakening of the U.S. dollar against the Canadian dollar during the first half period ended June 24, 2016.

Identifiable Intangible Assets

The table below presents information for the Company’s identifiable intangible assets that are subject to amortization.


			June 24, 2016						December 31, 2015
	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		17	$	375	$	257	$	118	$	370	$	246	$	124
Technology		11		159		96		63		156		91		65
Other		18		21		12		9		21		11		10

Total		15	$	555	$	365	$	190	$	547	$	348	$	199

Amortization Expense

The table below presents amortization expense recorded by the Company for its identifiable intangible assets.


	Second Quarter Ended				First Half Ended
	June 24, 2016		June 26, 2015		June 24, 2016		June 26, 2015
	(in millions)
Amortization expense	$	9	$	8	$	17	$	17

Estimated Amortization Expense

Based on gross carrying amounts at June 24, 2016, the Company’s estimate of amortization expense for identifiable intangible assets for the years ending December 31, 2016 through 2020 is presented in the table below.


	Year Ending December 31,
	2016		2017		2018		2019		2020
	(in millions)
Estimated amortization expense	$	34	$	32	$	27	$	24	$	21