Goodwill and Identifiable Intangible Assets (Tables)

9 Months Ended

Sep. 23, 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⁾		2			—			20			22
Foreign currency translation adjustments⁽²⁾		(31	)		12			—			(19	)

Balance at September 23, 2016	$	3,896		$	1,365		$	1,023		$	6,284

Goodwill	$	3,965		$	1,703		$	1,058		$	6,726
Accumulated impairment losses		(69	)		(338	)		(35	)		(442	)

	$	3,896		$	1,365		$	1,023		$	6,284

⁽¹⁾	The net increase in goodwill for the Electronic Systems segment was due to the final purchase price allocations for the ForceX, Inc. and CTC Aviation Group business acquisitions. The increase in goodwill for the Communication Systems segment was due to the ATM, Inc. 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 year-to-date period ended September 23, 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 year-to-date period ended September 23, 2016.

Identifiable Intangible Assets

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


			September 23, 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	$	376	$	263	$	113	$	370	$	246	$	124
Technology		11		158		99		59		156		91		65
Other		18		21		12		9		21		11		10

Total		15	$	555	$	374	$	181	$	547	$	348	$	199

Amortization Expense

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


	Third Quarter Ended				Year-to-Date Ended
	September 23, 2016		September 25, 2015		September 23, 2016		September 25, 2015
	(in millions)
Amortization expense	$	9	$	9	$	26	$	26

Estimated Amortization Expense

Based on gross carrying amounts at September 23, 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	$	35	$	32	$	27	$	24	$	20