Acquisitions and Divestitures, Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract]

Estimated Fair Value of Assets Acquired and Liabilities Assumed on Acquisition Date

The following table summarizes the allocation of the $9.7 billion cash purchase price to the estimated fair values of the assets acquired and liabilities assumed on the acquisition date, with the excess recorded as goodwill:

Cash and equivalents	$	45
Accounts receivable	155
Unbilled receivables	415
Other current assets	303
Property, plant and equipment, net	326
Intangible assets, net	2,066
Goodwill	7,935
Other noncurrent assets	369
Total assets	$	11,614
Accounts payable	$	(135	)
Customer advances and deposits	(151		)
Current lease obligation	(51		)
Other current liabilities	(434		)
Noncurrent lease obligation	(207		)
Noncurrent deferred tax liability	(355		)
Other noncurrent liabilities	(532		)
Total liabilities	$	(1,865	)
Net assets acquired	$	9,749

Pro Forma Information

The following pro forma information presents our consolidated revenue and net earnings as if the acquisition of CSRA and the related financing transactions had occurred on January 1, 2017:

	Three Months Ended		Six Months Ended
	July 1, 2018		July 1, 2018
Revenue	$	9,225	$	18,062
Net Earnings	854		1,598
Diluted earnings per share	$	2.85	$	5.32

Changes In The Carrying Amount of Goodwill By Reporting Unit

The changes in the carrying amount of goodwill by reporting unit were as follows:

	Aerospace		Combat Systems		Information Technology		Mission Systems			Marine Systems		Total Goodwill
December 31, 2018 (a)	$	2,813	$	2,633	$	9,622	$	4,229		$	297	$	19,594
Acquisitions/divestitures (b)	2		7		77		6			—		92
Other (c)	13		32		1		(70		)	—		(24		)
June 30, 2019 (a)	$	2,828	$	2,672	$	9,700	$	4,165		$	297	$	19,662

(a)Goodwill in the Information Technology and Mission Systems reporting units is net of $536 and $1.3 billion of accumulated impairment losses, respectively.

(b)Includes adjustments during the purchase price allocation period.

(c)Consists primarily of adjustments for foreign currency translation. Also includes an estimated allocation of goodwill in our Mission Systems reporting unit associated with a non-core operation classified as held for sale on the unaudited Consolidated Balance Sheet on June 30, 2019. As we expect this operation to be divested within the next 12 months, the assets and liabilities held for sale are included in other current assets and liabilities on the unaudited Consolidated Balance Sheet.

Intangible Assets

Intangible assets consisted of the following:

	Gross Carrying Amount (a)		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount (a)		Accumulated Amortization			Net Carrying Amount
	June 30, 2019							December 31, 2018
Contract and program     intangible assets (b)	$	3,777	$	(1,656	)	$	2,121	$	3,771	$	(1,531	)	$	2,240
Trade names and trademarks	472		(186		)	286		469		(177		)	292
Technology and software	170		(122		)	48		165		(116		)	49
Other intangible assets	159		(157		)	2		159		(155		)	4
Total intangible assets	$	4,578	$	(2,121	)	$	2,457	$	4,564	$	(1,979	)	$	2,585

(a) Change in gross carrying amounts consists primarily of adjustments for acquired intangible assets and foreign currency translation.

(b)

Consists of acquired backlog and probable follow-on work and associated customer relationships.