GOODWILL

The assignment of goodwill by business segment, and changes in the carrying amount of goodwill for the fiscal years ended June 30, 2017 and July 1, 2016, by business segment, were as follows:



	Communication Systems		Electronic Systems			Space and Intelligence Systems			Critical Networks ⁽²⁾			Total

	(In millions)
Balance at July 3, 2015 — as reported	$	760	$	1,718		$	1,446		$	2,424		$	6,348
Decrease from reclassification to assets of discontinued operations ⁽¹⁾	—		—			—			(943		)	(943		)
Transfer of goodwill in segment realignment	—		1,481			—			(1,481		)	—
Balance at July 3, 2015 — after reallocation	760		3,199			1,446			—			5,405
Goodwill decrease from divestitures ⁽³⁾	—		(61		)	—			—			(61		)
Currency translation adjustments	7		(46		)	(1		)	—			(40		)
Other (including adjustments to previously estimated fair value of assets acquired and liabilities assumed)	14		1			33			—			48
Balance at July 1, 2016	781		3,093			1,478			—			5,352
Currency translation adjustments	2		(4		)	(1		)	—			(3		)
Other	2		15			—			—			17
Balance at June 30, 2017	$	785	$	3,104		$	1,477		$	—		$	5,366

(1) CapRock and IT Services are reported as discontinued operations in the Consolidated Financial Statements and these Notes as a result of our divestitures in fiscal 2017 of those businesses, which were part of our former Critical Networks segment. In order to restate changes in the carrying amount of goodwill by business segment on a continuing operations basis to the earliest period presented in this Note, our goodwill balance as of July 3, 2015 has been adjusted by $943 million, consisting of a $449 million adjustment related to CapRock and a $494 million adjustment related to IT Services. The $449 million adjustment related to CapRock included $136 million of goodwill transferred to discontinued operations in the second quarter of fiscal 2017, as well as associated changes in the carrying amount of CapRock goodwill for earlier periods. The $494 million adjustment related to IT Services included $487 million of goodwill transferred to discontinued operations in the third quarter of fiscal 2017 when the held for sale criteria were met, as well as associated changes in the carrying amount of IT Services goodwill for earlier periods. The $487 million of goodwill transferred to discontinued operations in the third quarter of fiscal 2017 was determined on a relative fair value basis, because the then-pending divestiture of IT Services represented the disposal of a portion of a reporting unit within our former Critical Networks segment. The carrying amount of each of CapRock goodwill and IT Services goodwill is included as a component of the “Non-current assets of discontinued operations” line item in our Consolidated Balance Sheet as of July 1, 2016, however the carrying amount of each was subsequently derecognized through the loss on sale of discontinued operations and is not in our Consolidated Balance Sheet as of June 30, 2017. See Note 3: Discontinued Operations and Divestitures for additional information.

(2) In connection with our divestitures of CapRock and IT Services, our Critical Networks segment was eliminated effective for the third quarter of fiscal 2017, and our operations that had been part of our Critical Networks segment, other than CapRock and IT Services, were integrated with our Electronic Systems segment. In order to restate changes in the carrying amount of goodwill by business segment on a continuing operations basis to the earliest period presented in this Note, our Electronic Systems goodwill balance as of July 3, 2015 has been adjusted by $1,481 million, which included $1,443 million of goodwill transferred from our former Critical Networks segment during the third quarter of fiscal 2017, as well as associated changes in the carrying amount of this goodwill for earlier periods.

(3) We completed the divestiture of Aerostructures during the fourth quarter of fiscal 2016. In accordance with GAAP, we determined $61 million of goodwill to be a part of the carrying value of Aerostructures in determining the gain or loss on divestiture. See Note 3: Discontinued Operations and Divestitures for additional information.