ACQUISITIONS, DIVESTITURES AND ASSET SALES (Tables)

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Schedule of Business Acquisitions Consideration Transferred

As of the acquisition date, the fair value of consideration transferred consisted of the following:

(In millions)	January 3, 2023
Purchase price	$	1,958
Estimated net working capital and other adjustments	15
Cash consideration paid	1,973
Settlement of preexisting relationship(1)	1
Fair value of consideration transferred	$	1,974

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(1)Prior to the acquisition, we had a preexisting relationship with Viasat’s TDL business in the normal course of business. As of the acquisition date, our CS segment had a receivable from Viasat’s TDL business with a fair value of $1 million that was settled in connection with the acquisition.

The following table summarizes the preliminary allocation of the fair value of consideration transferred to assets acquired and liabilities assumed as of the acquisition date and the measurement period adjustments recorded since the acquisition date through June 30, 2023:

	January 3, 2023
(In millions)	Preliminary		Measurement Period Adjustments, Net1		Preliminary Adjusted
Receivables	$	28	$	—	$	28
Contract assets	18		—		18
Inventories	164		1		165
Other current assets	9		—		9
Property, plant and equipment	50		—		50
Operating lease right-of-use assets	12		—		12
Goodwill	1,014		103		1,117
Other intangible assets	850		(98)		752
Deferred income taxes	33		2		35
Other non-current assets	6		(1)		5
Total assets acquired	$	2,184	$	7	$	2,191
Accounts payable	$	20	$	—	$	20
Contract liabilities	28		—		28
Compensation and benefits	2		—		2
Other accrued items	119		1		120
Operating lease liabilities	10		—		10
Other long-term liabilities	31		6		37
Total liabilities assumed	$	210	$	7	$	217
Net assets acquired	$	1,974	$	—	$	1,974

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(1)Fair value adjustments during the quarter ended June 30, 2023 primarily related to refined assumptions in the valuation of customer relationship intangible assets.

Schedule of Identifiable Intangible Assets Acquired

The preliminary fair value of identifiable intangible assets acquired as of the acquisition date is as follows:

	Total		Useful Lives
	(In millions)		(In Years)
Developed technology	$	346	17
Customer relationships:(1)
Backlog	83		2
Government programs	323		16
Total customer relationships	406
Total identifiable intangible assets acquired	$	752

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(1)TDL had backlog and government programs intangible assets that we classified as customer relationships.