Goodwill and Acquired Intangibles

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangibles

Goodwill and Acquired Intangibles

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

	Aeronautics		MFC			RMS			Space			Total
Balance at December 31, 2017	$	171	$	2,265		$	6,784		$	1,587		$	10,807
Other	—		(3		)	(33		)	(2		)	(38		)
Balance at December 31, 2018	171		2,262			6,751			1,585			10,769
Distributed Energy Solutions divestiture	—		(175		)	—			—			(175		)
Other	—		2			7			1			10
Balance at December 31, 2019	$	171	$	2,089		$	6,758		$	1,586		$	10,604

On November 18, 2019, we divested our Distributed Energy Solutions business, a commercial energy service provider included in our MFC business segment. As a result of the divestiture, MFC’s goodwill decreased by the $175 million allocated to the Distributed Energy Solutions business.

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

	2019							2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-Lived:
Customer programs	$	3,184	$	(967	)	$	2,217	$	3,184	$	(735	)	$	2,449
Customer relationships	344		(243		)	101		344		(199		)	145
Other	53		(45		)	8		53		(40		)	13
Total finite-lived intangibles	3,581		(1,255		)	2,326		3,581		(974		)	2,607
Indefinite-Lived:
Trademark	887		—			887		887		—			887
Total acquired intangibles	$	4,468	$	(1,255	)	$	3,213	$	4,468	$	(974	)	$	3,494

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 $284 million, $296 million and $312 million in 2019, 2018 and 2017. Estimated future amortization expense is as follows: $263 million in 2020; $256 million in 2021; $253 million in 2022; $250 million in 2023; $247 million in 2024 and $1.1 billion thereafter.

With the acquisition of Sikorsky Aircraft Corporation (Sikorsky), we recorded customer contractual obligations of $507 million. Customer contractual obligations represent liabilities on certain development programs where the expected costs exceed the expected sales under contract. These liabilities are liquidated in accordance with the underlying economic pattern of the contractual obligations, as reflected by the estimated future net cash outflows incurred on the associated contracts. As of December 31, 2019, we have recognized approximately $390 million in net sales related to customer contractual obligations. As of December 31, 2019, the estimated liquidation of the customer contractual obligation is approximated as follows: $55 million in 2020, $25 million in 2021, $5 million in 2022, $20 million in 2023, $5 million in 2024 and $7 million thereafter.