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Acquisitions and Divestitures, Goodwill and Intangible Assets (Tables) | 6 Months Ended
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Jul. 01, 2018
Business Combinations, Goodwill and Intangible Assets Disclosure [Abstract] |
Acquisition Consideration and Fair Value of Net Assets Acquired | The cash purchase price totaled $9.7 billion and consisted of the following:
CSRA shares outstanding (in millions) | 165.4 |
Cash consideration per CSRA share | $ | 41.25 |
Cash paid to purchase outstanding CSRA shares | $ | 6,825 |
Cash paid to extinguish CSRA debt | 2,846 |
Cash settlement of outstanding CSRA stock options and restricted stock units | 78 |
Total purchase price | $ | 9,749 |
Estimated Fair Value of Assets Acquired and Liabilities Assumed on Acquisition Date | The following table summarizes the preliminary allocation of the 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 | 156 |
Unbilled receivables | 807 |
Other current assets | 190 |
Property, plant and equipment, net | 685 |
Intangible assets, net | 2,069 |
Goodwill | 7,807 |
Other noncurrent assets | 19 |
Total assets | $ | 11,778 |
Account payable | $ | (135 | )
Customer advances and deposits | (151 | )
Current capital lease obligation | (51 | )
Other current liabilities | (542 | )
Noncurrent capital lease obligation | (207 | )
Noncurrent deferred tax liability | (421 | )
Other noncurrent liabilities | (522 | )
Total liabilities | $ | (2,029 | )
Net assets acquired | $ | 9,749 |
Expected Amortization Expense Associated With Intangible Assets Acquired | We expect to record amortization expense associated with these intangible assets over the next five years as follows:
2018 (9 months post-acquisition) | $ | 188 |
2019 | 204 |
2020 | 195 |
2021 | 154 |
2022 | 136 |
Unaudited Pro Forma Information |
| Three Months Ended | Six Months Ended
| July 1, 2018 |  | July 2, 2017 | July 1, 2018 |  | July 2, 2017
Revenue | $ | 9,186 |  |  | $ | 8,853 |  | $ | 18,023 |  |  | $ | 17,497 |
Net earnings | 804 |  |  | 756 |  | 1,534 |  |  | 1,489 |
Diluted earnings per share | $ | 2.68 |  |  | $ | 2.48 |  | $ | 5.10 |  |  | $ | 4.86 |
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 Systems and Technology |  | Information Technology |  | Mission Systems |  | Marine Systems |  | Total Goodwill
December 31, 2017 (a) | $ | 2,638 |  |  | $ | 2,677 |  |  | $ | 6,302 |  |  | $ | — |  |  | $ | — |  |  | $ | 297 |  |  | $ | 11,914 |
Acquisitions/ divestitures (b) | — |  |  | — |  |  | 16 |  |  | — |  |  | — |  |  | — |  |  | 16 |
Other (c) | 40 |  |  | (14 | ) |  | (1 | ) |  | — |  |  | — |  |  | — |  |  | 25 |
April 1, 2018 (a) | 2,678 |  |  | 2,663 |  |  | 6,317 |  |  | — |  |  | — |  |  | 297 |  |  | 11,955 |
Change in reporting unit composition (d) | — |  |  | — |  |  | (6,317 | ) |  | 2,076 |  |  | 4,241 |  |  | — |  |  | — |
Acquisitions/ divestitures (b) | 149 |  |  | — |  |  | — |  |  | 7,752 |  |  | 1 |  |  | — |  |  | 7,902 |
Other (c) | (71 | ) |  | (36 | ) |  | — |  |  | — |  |  | (12 | ) |  | — |  |  | (119 | )
July 1, 2018 (e) | $ | 2,756 |  |  | $ | 2,627 |  |  | $ | — |  |  | $ | 9,828 |  |  | $ | 4,230 |  |  | $ | 297 |  |  | $ | 19,738 |
(a)Goodwill in the Information Systems and Technology reporting unit is net of $1.9 billion of accumulated impairment losses. (b)Includes adjustments during the purchase price allocation period. Activity in the first quarter of 2018 also includes an allocation of goodwill associated with the sale of the commercial health products business discussed above. (c)Consists primarily of adjustments for foreign currency translation. (d)Concurrent with the acquisition of CSRA, we reorganized our Information Systems and Technology operating segment into the Information Technology and Mission Systems segments. See Note A for further discussion of the segment reorganization. This reorganization similarly changed the composition of our reporting units. Accordingly, goodwill of the Information Systems and Technology reporting unit was reassigned to the Information Technology and Mission Systems reporting units using a relative fair value allocation approach as of the date of the reorganization. (e)Goodwill in the Information Technology and Mission Systems reporting units is net of $632 and $1.3 billion of accumulated impairment losses, respectively.
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
| July 1, 2018 |  | December 31, 2017
Contract and program intangible assets (b) | $ | 3,793 |  | $ | (1,394 | ) | $ | 2,399 |  |  | $ | 1,684 |  | $ | (1,320 | ) | $ | 364 |
Trade names and trademarks | 458 |  | (166 | ) | 292 |  |  | 465 |  | (160 | ) | 305 |
Technology and software | 158 |  | (112 | ) | 46 |  |  | 137 |  | (105 | ) | 32 |
Other intangible assets | 155 |  | (154 | ) | 1 |  |  | 155 |  | (154 | ) | 1 |
Total intangible assets | $ | 4,564 |  | $ | (1,826 | ) | $ | 2,738 |  |  | $ | 2,441 |  | $ | (1,739 | ) | $ | 702 |
(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.

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