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INTANGIBLE ASSETS | 12 Months Ended
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Jan. 01, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS | NOTE 11: INTANGIBLE ASSETS The most significant identifiable intangible asset that is separately recognized for our business combinations is customer relationships. Our customer relationships are established through written customer contracts (revenue arrangements). The fair value for customer relationships is determined, as of the date of acquisition, based on estimates and judgments regarding expectations for the estimated future after-tax earnings and cash flows arising from the follow-on sales expected from the customer relationships over the estimated lives, including the probability of expected future contract renewals and sales, less a contributory assets charge, all of which is discounted to present value. We assess the recoverability of the carrying value of our finite-lived identifiable intangible assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. We assess the recoverability of the carrying value of indefinite-lived identifiable intangible assets annually, or under certain circumstances more frequently, such as when events and circumstances indicate there may be an impairment. In conjunction with, and in advance of, the tests of goodwill related to our Commercial Aviation Solutions reporting unit, we also performed recoverability tests of the long-lived assets of our Commercial Aviation Solutions reporting unit, including identifiable intangible assets and property, plant and equipment. To test these long-lived assets for recoverability, we compared the estimated future cash flows (on an undiscounted basis) to be generated from the use and hypothetical eventual disposition of the asset group to its carrying value. As a result, we concluded that the long-lived assets of our Commercial Aviation Solutions reporting unit were impaired as of January 1, 2021 and we recorded a $257 million non-cash impairment charge, including $113 million for impairment of identifiable intangible assets in the fourth quarter of fiscal 2020, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Income for fiscal 2020. Identifiable intangible assets are summarized below:
| January 1, 2021 |  | January 3, 2020
(In millions) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount (1) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Customer relationships | $ | 6,863 |  |  | $ | 1,257 |  |  | $ | 5,606 |  |  | $ | 6,518 |  |  | $ | 653 |  |  | $ | 5,865 |
Developed technologies | 653 |  |  | 261 |  |  | 392 |  |  | 768 |  |  | 183 |  |  | 585 |
Contract backlog | 19 |  |  | 17 |  |  | 2 |  |  | — |  |  | — |  |  | — |
Trade names — divisions | 129 |  |  | 45 |  |  | 84 |  |  | 165 |  |  | 35 |  |  | 130 |
Other | 3 |  |  | 3 |  |  | — |  |  | 10 |  |  | 4 |  |  | 6 |
Total identifiable intangible assets subject to amortization | 7,667 |  |  | 1,583 |  |  | 6,084 |  |  | 7,461 |  |  | 875 |  |  | 6,586 |
In-process research and development | 21 |  |  | — |  |  | 21 |  |  | 69 |  |  | — |  |  | 69 |
Trade names — corporate | 1,803 |  |  | — |  |  | 1,803 |  |  | 1,803 |  |  | — |  |  | 1,803 |
Total identifiable intangible assets | $ | 9,491 |  |  | $ | 1,583 |  |  | $ | 7,908 |  |  | $ | 9,333 |  |  | $ | 875 |  |  | $ | 8,458 |
_______________ (1)During fiscal 2020, we completed the divestiture of three businesses and derecognized $296 million of intangibles as part of the gain or loss on these divestitures. Additionally, in connection with a pending divestiture, we reclassified $5 million of identifiable intangible assets to “Assets of disposal group held for sale” in our Consolidated Balance Sheet at January 1, 2021. See Note 3: Business Divestitures and Asset Sales in these Notes for additional information regarding divestitures. Amortization expense for identifiable intangible assets was $729 million and $290 million in fiscal 2020 and the two quarters ended January 3, 2020, respectively, and primarily related to the L3Harris Merger and our acquisition of Exelis. Amortization expense for identifiable intangible assets was $115 million and $117 million in fiscal 2019 and 2018, respectively, and primarily related to our acquisition of Exelis. Future estimated amortization expense for identifiable intangible assets is as follows:
| (In millions)
2021 | $ | 669 |
2022 | 673 |
2023 | 663 |
2024 | 623 |
2025 | 573 |
Thereafter | 2,883 |
Total | $ | 6,084 |

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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