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Goodwill and Other Intangible Assets
3 Months Ended
Sep. 27, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Note K — Goodwill and Other Intangible Assets
Goodwill. As discussed in Note X — Business Segment Information in these Notes, after the completion of the L3Harris Merger, we adjusted our segment reporting to reflect our new organizational structure effective for the quarter ended September 27, 2019. Because our accounting for the L3Harris Merger is still preliminary, we assigned goodwill acquired on a provisional basis. Immediately before and after our goodwill assignments, we completed an assessment of any potential goodwill impairment under our former and new segment reporting structure and determined that no impairment existed.
The assignment of goodwill by business segment, and changes in the carrying amount of goodwill for the quarter ended September 27, 2019, were as follows:
 
Integrated Mission Systems
 
Space and Airborne Systems

 
Communication Systems
 
Aviation Systems
 
Total
 
 
 
 
 
 
 
 
 
 
 
(In millions)
Balance at June 28, 2019
$
63

 
$
3,707

 
$
924

 
$
646

 
$
5,340

Goodwill acquired
6,297

 
1,320

 
2,475

 
5,331

 
15,423

Currency translation adjustments

 
(3
)
 

 
(11
)
 
(14
)
Balance at September 27, 2019
$
6,360

 
$
5,024

 
$
3,399

 
$
5,966

 
$
20,749


Identifiable Intangible Assets. The most significant identifiable intangible asset that is separately recognized for our business combinations is customer relationships. Our customer relationships are established through written customer contracts (revenue arrangements). The fair value for customer relationships is determined, as of the date of acquisition, based on estimates and judgments regarding expectations for the estimated future after-tax earnings and cash flows (including cash flows for working capital) arising from the follow-on sales expected from the customer relationships over their estimated lives, including the probability of expected future contract renewals and sales, less a contributory assets charge, all of which is discounted to present value. Our indefinite-lived intangible assets include in-process research and development (“IPR&D”).
The table below presents information for our identifiable intangible assets that are subject to amortization and indefinite-lived intangible assets.
 
September 27, 2019
 
June 28, 2019
 
Gross
Carrying
Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
(In millions)
Customer relationships
$
5,314


$
518


$
4,796


$
1,203


$
419


$
784

Developed technologies
837


159


678


206


136


70

Trade names
204


30


174


42


26


16

Other
5


3


2


2


2



Total intangible assets subject to amortization
6,360


710


5,650


1,453


583


870

IPR&D
63




63







L3 trade name
1,803




1,803







Total intangibles assets
$
8,226


$
710


$
7,516


$
1,453


$
583


$
870


For the quarter ended September 27, 2019, amortization expense related to intangible assets was $125 million and primarily related to the L3Harris Merger. For the quarter ended September 28, 2018, amortization expense related to intangible assets was $29 million and primarily related to our acquisition of Exelis Inc.

Future estimated amortization expense for intangible assets is as follows:
 
(In millions)
Year 1
$
575

Year 2
586

Year 3
553

Year 4
522

Year 5
490

Thereafter
2,924

Total
$
5,650