GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 29, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE E: GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The assignment of goodwill and changes in the carrying amount of goodwill, by business segment, are as follows:


(In millions)	SAS		IMS		CS		AR		Total

Balance at December 29, 2023(1)	$	6,110	$	6,564	$	4,940	$	2,365	$	19,979

Goodwill from AJRD acquisition(2)	—		—		—		108		108


Currency translation adjustments	(8)		(8)		(1)		—		(17)
Balance at March 29, 2024	$	6,102	$	6,556	$	4,939	$	2,473	$	20,070

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(1)During fiscal 2023, we assigned $534 million of goodwill associated with the pending divestiture of Commercial Aviation Solutions (“CAS Disposal Group”) to “Assets of business held for sale” in our Condensed Consolidated Balance Sheet. See Note 13: Acquisitions, Divestitures and Asset Sales in our Fiscal 2023 Form 10-K for additional information regarding divestitures and businesses held for sale.

(2)Represents a measurement period adjustment associated with the acquisition of Aerojet Rocketdyne Holdings, Inc. (“AJRD”) in the quarter ended March 29, 2024. See Note O: Acquisitions and Divestitures in these Notes for further information.

At March 29, 2024, accumulated goodwill impairment losses totaled $80 million, $1,126 million and $355 million at our Space & Airborne Systems (“SAS”), Integrated Mission Systems (“IMS”) and Communication System (“CS”) segments, respectively. There are no accumulated impairments for our Aerojet Rocketdyne (“AR”) segment.

Reallocation of Goodwill in Business Realignment. Effective in fiscal 2024, to better align our businesses, we adjusted our IMS segment by realigning our Electro Optical (“EO”) and Maritime sectors, which are also reporting units, splitting EO into two sectors, Global Optical Systems (“GOS”) and Defense Electronics (“DE”), and moving one EO business to the Maritime sector. GOS and DE represent one reporting unit. Immediately before and after the realignment, we performed a quantitative impairment assessment under our former and new reporting unit structure. These assessments indicated no impairment existed either before or after the realignment. See Note P: Business Segment Information in these Notes for further information.

Other Intangible Assets

Other identifiable intangible assets, net are summarized below:


	March 29, 2024						December 29, 2023
(In millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount(1)

Customer relationships	$	8,907	$	2,923	$	5,984	$	8,892	$	2,733	$	6,159
Developed technologies	854		432		422		856		413		443
Trade names — divisions	185		54		131		185		50		135
Other, including contract backlog	4		4		—		4		4		—
Total finite-lived identifiable intangible assets	9,950		3,413		6,537		9,937		3,200		6,737

Trade names — corporate	1,803		—		1,803		1,803		—		1,803
Total identifiable intangible assets, net	$	11,753	$	3,413	$	8,340	$	11,740	$	3,200	$	8,540

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(1)During fiscal 2023, we assigned $263 million of intangible assets associated with the pending divestiture of the CAS Disposal Group to "Assets of business held for sale" in our Condensed Consolidated Balance Sheet. See Note 13: Acquisitions, Divestitures and Asset Sales in our Fiscal 2023 Form 10-K for additional information regarding divestitures and businesses held for sale.

The most significant identifiable intangible asset that is separately recognized for our business combinations is customer relationships. For further description of our accounting policies related to intangible assets acquired in the AJRD acquisition, see Note O: Acquisitions and Divestitures in these Notes, and for our accounting policies related to all other intangible assets, see Note 6: Goodwill and Intangible Assets in our Fiscal 2023 Form 10-K.

Amortization expense for identifiable finite-lived intangible assets was $217 million and $165 million for the quarters ended March 29, 2024 and March 31, 2023, respectively, which primarily related to assets acquired in connection with business combinations.

Future estimated amortization expense for identifiable intangible assets is as follows:


	(In millions)

Next 12 months	$	835
Months 13-24	766
Months 25-36	632
Months 37-48	562
Months 49-60	468
Thereafter	3,274
Total	$	6,537