Goodwill and Acquired Intangibles

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill by segment were as follows (in millions):



	Aeronautics		MFC		RMS			Space			Total
Balance at December 31, 2015	$	171	$	2,198	$	6,738		$	1,588		$	10,695
Purchase accounting adjustments	—		—		78			—			78
Other	—		62		(68		)	(3		)	(9		)
Balance at December 31, 2016	171		2,260		6,748			1,585			10,764
Other	—		5		36			2			43
Balance at December 31, 2017	$	171	$	2,265	$	6,784		$	1,587		$	10,807

The gross carrying amounts and accumulated amortization of our acquired intangible assets consisted of the following (in millions):



	2017							2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-Lived:
Customer programs	$	3,184	$	(503	)	$	2,681	$	3,184	$	(273	)	$	2,911
Customer relationships	352		(140		)	212		359		(92		)	267
Other	71		(54		)	17		111		(83		)	28
Total finite-lived intangibles	3,607		(697		)	2,910		3,654		(448		)	3,206
Indefinite-Lived:
Trademarks	887		—			887		887		—			887
Total acquired intangibles	$	4,494	$	(697	)	$	3,797	$	4,541	$	(448	)	$	4,093

Acquired finite-lived intangible assets are amortized to expense primarily on a straight-line basis over the following estimated useful lives: customer programs, from nine to 20 years; customer relationships, from four to 10 years; and other intangibles, from three to 10 years.

Amortization expense for acquired finite-lived intangible assets was $312 million, $284 million and $68 million in 2017, 2016 and 2015. Estimated future amortization expense is as follows: $296 million in 2018; $285 million in 2019; $263 million in 2020; $256 million in 2021; $253 million in 2022 and $1.6 billion thereafter.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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