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Goodwill and Identifiable Intangible Assets (Tables)
 3 Months Ended
Mar. 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)
Goodwill(1)
$
2,687
 
$
1,698
 
$
1,058
 
$
1,559
 
$
7,002
 
Accumulated impairment losses
 
(43
)
 
(338
)
 
(35
)
 
(26
)
 
(442
)
Balance at December 31, 2016
 
2,644
 
 
1,360
 
 
1,023
 
 
1,533
 
 
6,560
 
Business acquisitions(2)
 
100
 
 
—
 
 
—
 
 
16
 
 
116
 
Business divestitures(3)
 
(12
)
 
—
 
 
—
 
 
—
 
 
(12
)
Foreign currency translation adjustments(4)
 
8
 
 
2
 
 
—
 
 
5
 
 
15
 
Balance at March 31, 2017
 
2,740
 
 
1,362
 
 
1,023
 
 
1,554
 
 
6,679
 
Goodwill
 
2,783
 
 
1,700
 
 
1,058
 
 
1,580
 
 
7,121
 
Accumulated impairment losses
 
(43
)
 
(338
)
 
(35
)
 
(26
)
 
(442
)
$
2,740
 
$
1,362
 
$
1,023
 
$
1,554
 
$
6,679
 
(1)The business realignment in the Electronic Systems segment resulted in a reallocation of goodwill due to changes in reporting units. Goodwill was reallocated to the affected reporting units based upon their relative fair value. The changes to reporting units did not result in a goodwill impairment of any reporting unit.
(2)The increase for the Electronic Systems segment was due to the acquisition of the ETD business and the purchase price allocation adjustment for the MacH business acquisition. The increase for the Sensor Systems segment was primarily due to the OceanServer business acquisition.
(3)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.
(4)The increase in the Electronic Systems segment was due to the weakening of the U.S. dollar against the British pound and the Canadian dollar during the quarterly period ended March 31, 2017. The increase in the Aerospace Systems segment was due to the weakening of the U.S. dollar against the Canadian dollar during the quarterly period ended March 31, 2017. The increase in the Sensor Systems segment was due to the weakening of the U.S. dollar against the Australian dollar, the Euro and the British pound during the quarterly period ended March 31, 2017.
Identifiable Intangible Assets
The table below presents information for the Company’s identifiable intangible assets that are subject to amortization.
March 31, 2017
December 31, 2016
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
 
15
 
$
412
 
$
276
 
$
136
 
$
409
 
$
269
 
$
140
 
Technology
 
10
 
 
202
 
 
105
 
 
97
 
 
191
 
 
102
 
 
89
 
Other
 
18
 
 
21
 
 
12
 
 
9
 
 
21
 
 
12
 
 
9
 
Total
 
13
 
$
635
 
$
393
 
$
242
 
$
621
 
$
383
 
$
238
 
Amortization Expense

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

First Quarter Ended
March 31,
2017
March 25,
2016
(in millions)
Amortization expense
$
10
 
$
8
 
Estimated Amortization Expense

Based on gross carrying amounts at March 31, 2017, the Company’s estimate of amortization expense for identifiable intangible assets for the years ending December 31, 2017 through 2021 is presented in the table below.

Year Ending December 31,
2017
2018
2019
2020
2021
(in millions)
Estimated amortization expense
$
40
 
$
38
 
$
34
 
$
30
 
$
27