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BUSINESS SEGMENTS (Tables) | 12 Months Ended
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Jan. 01, 2021
Segment Reporting [Abstract] |
Schedule of Selected Financial Information by Business Segments | Segment revenue, segment operating income and a reconciliation of segment operating income to total income from continuing operations before income taxes are as follows:
| Fiscal Year Ended |  | Two Quarters Ended |  | Fiscal Years Ended
(In millions) | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019 |  | June 29, 2018
Revenue |  |  |  |  |  |  |
Integrated Mission Systems | $ | 5,538 |  |  | $ | 2,758 |  |  | $ | 52 |  |  | $ | 55 |
Space and Airborne Systems | 4,946 |  |  | 2,377 |  |  | 3,711 |  |  | 3,294 |
Communication Systems | 4,443 |  |  | 2,151 |  |  | 2,208 |  |  | 2,015 |
Aviation Systems | 3,448 |  |  | 2,038 |  |  | 672 |  |  | 668 |
Other non-reportable business segments(1) | — |  |  | 23 |  |  | 165 |  |  | 148 |
Corporate eliminations | (181) |  |  | (84) |  |  | (7) |  |  | (12) |
| $ | 18,194 |  |  | $ | 9,263 |  |  | $ | 6,801 |  |  | $ | 6,168 |
Income from Continuing Operations before Income Taxes
Segment Operating Income: |  |  |  |  |  |  |
Integrated Mission Systems | $ | 847 |  |  | $ | 371 |  |  | $ | 10 |  |  | $ | 9 |
Space and Airborne Systems | 932 |  |  | 447 |  |  | 696 |  |  | 626 |
Communication Systems | 1,084 |  |  | 493 |  |  | 637 |  |  | 561 |
Aviation Systems | (177) |  |  | 289 |  |  | 76 |  |  | 54 |
Other non-reportable business segments(1) | — |  |  | — |  |  | 27 |  |  | 20 |
Unallocated corporate expenses and corporate eliminations(2) | (109) |  |  | (139) |  |  | (2) |  |  | (65) |
L3Harris Merger-related transaction, integration and other expenses and losses | (130) |  |  | (273) |  |  | (65) |  |  | — |
L3Harris Merger-related restructuring costs | (10) |  |  | (117) |  |  | — |  |  | — |
Amortization of acquisition-related intangibles(3) | (709) |  |  | (289) |  |  | (101) |  |  | (101) |
Impairment of identifiable intangible assets | (113) |  |  | — |  |  | — |  |  | — |
Business divestiture-related (losses) gains | (51) |  |  | 229 |  |  | — |  |  | — |
Pension adjustment | (389) |  |  | (172) |  |  | (186) |  |  | (184) |
Non-operating income | 401 |  |  | 192 |  |  | 188 |  |  | 156 |
Net interest expense | (254) |  |  | (123) |  |  | (167) |  |  | (168) |
Total income from continuing operations before income taxes | $ | 1,322 |  |  | $ | 908 |  |  | $ | 1,113 |  |  | $ | 908 |
_______________ (1)Includes the operating results of the Harris Night Vision business prior to the date of divestiture on September 13, 2019. See Note 3: Business Divestitures and Asset Sales in these Notes for more information. (2)For fiscal 2020 includes: (i) $31 million of additional cost of sales related to the fair value step-up in inventory sold (see Note 5: Business Combination in these Notes for more information); (ii) a $22 million gain on sale of property, plant and equipment; (iii) a $14 million non-cash goodwill impairment charge related to a potential divestiture, (iv) $13 million of divestiture-related expenses; (v) a $5 million non-cash goodwill impairment charge related to the divestiture of the Applied Kilovolts and Analytical Instrumentation business; and (vi) a $2 million non-cash cumulative adjustment to lease expense. For the two quarters ended January 3, 2020 includes: (i) $142 million of additional cost of sales related to the fair value step-up in inventory sold; (ii) a $12 million gain on the sale of an asset group; and (iii) a $10 million non-cash cumulative adjustment to lease expense. For fiscal 2018 includes: (i) $47 million of charges related to our decision to transition and exit a commercial air-to-ground LTE radio communications line of business and other items; (ii) a $12 million non-cash adjustment for deferred compensation; and (iii) $5 million of Exelis acquisition-related and other charges. (3)Includes $609 million and $239 million of amortization of identifiable intangible assets acquired as a result of the L3Harris Merger for fiscal 2020 and the two quarters ended January 3, 2020, respectively; and $100 million, $50 million, $101 million and $101 million of amortization of identifiable intangible assets acquired as a result of our acquisition of Exelis for fiscal 2020, the two quarters ended January 3, 2020, and fiscal 2019 and 2018, respectively. Because the L3Harris Merger and the acquisition of Exelis benefited the entire Company as opposed to any individual segment, the amortization of identifiable intangible assets acquired was not allocated to any segment. Other selected financial information by business segment and geographical area is summarized below:
| Fiscal Year Ended |  | Two Quarters Ended |  | Fiscal Years Ended
(In millions) | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019 |  | June 29, 2018
Capital Expenditures |  |  |  |  |  |  |
Integrated Mission Systems | $ | 67 |  |  | $ | 29 |  |  | $ | 1 |  |  | $ | 1 |
Space and Airborne Systems | 92 |  |  | 36 |  |  | 48 |  |  | 49 |
Communication Systems | 58 |  |  | 22 |  |  | 29 |  |  | 25 |
Aviation Systems | 87 |  |  | 64 |  |  | 54 |  |  | 37 |
Other non-reportable business segments(1) | — |  |  | — |  |  | 6 |  |  | 4 |
Corporate | 64 |  |  | 22 |  |  | 23 |  |  | 20 |
| $ | 368 |  |  | $ | 173 |  |  | $ | 161 |  |  | $ | 136 |
Depreciation and Amortization |  |  |  |  |  |  |
Integrated Mission Systems | $ | 70 |  |  | $ | 37 |  |  | $ | 2 |  |  | $ | 2 |
Space and Airborne Systems | 66 |  |  | 31 |  |  | 50 |  |  | 54 |
Communication Systems | 61 |  |  | 32 |  |  | 49 |  |  | 54 |
Aviation Systems | 103 |  |  | 53 |  |  | 29 |  |  | 22 |
Other non-reportable business segments(1) | — |  |  | — |  |  | 3 |  |  | 5 |
Corporate | 732 |  |  | 289 |  |  | 125 |  |  | 122 |
| $ | 1,032 |  |  | $ | 442 |  |  | $ | 258 |  |  | $ | 259 |
Geographical Information for Continuing Operations |  |  |  |  |  |  |
U.S. operations: |  |  |  |  |  |  |
Revenue | $ | 16,998 |  |  | $ | 8,485 |  |  | $ | 6,530 |  |  | $ | 5,854 |
Long-lived assets(2) | $ | 1,949 |  |  | $ | 1,865 |  |  | $ | 866 |  |  | $ | 892 |
International operations: |  |  |  |  |  |  |
Revenue | $ | 1,196 |  |  | $ | 778 |  |  | $ | 271 |  |  | $ | 314 |
Long-lived assets(2) | $ | 153 |  |  | $ | 252 |  |  | $ | 28 |  |  | $ | 8 |
_______________ (1)Includes capital expenditures and depreciation and amortization of the Harris Night Vision business prior to the date of divestiture on September 13, 2019. See Note 3: Business Divestitures and Asset Sales in these Notes for more information. (2)Long-lived assets are net fixed assets attributed to the respective geographic regions.
Schedule of Disaggregation of Revenue by Segment | Disaggregation of Revenue We disaggregate revenue for all four business segments by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors: Integrated Mission Systems: Integrated Mission Systems revenue is primarily derived from U.S. Government development and production contracts and is generally recognized over time using the POC cost-to-cost revenue recognition method.
| Fiscal Year Ended |  | Two Quarters Ended |  | Fiscal Years Ended
(In millions) | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019 |  | June 29, 2018
Revenue By Customer Relationship |  |  |  |  |  |  |
Prime contractor | $ | 3,718 |  |  | $ | 1,892 |  |  | $ | 27 |  |  | $ | 26 |
Subcontractor | 1,820 |  |  | 866 |  |  | 25 |  |  | 29 |
| $ | 5,538 |  |  | $ | 2,758 |  |  | $ | 52 |  |  | $ | 55 |
Revenue By Contract Type |  |  |  |  |  |  |
Fixed-price(1) | $ | 4,179 |  |  | $ | 2,121 |  |  | $ | 52 |  |  | $ | 54 |
Cost-reimbursable | 1,359 |  |  | 637 |  |  | — |  |  | 1 |
| $ | 5,538 |  |  | $ | 2,758 |  |  | $ | 52 |  |  | $ | 55 |
Revenue By Geographical Region |  |  |  |  |  |  |
United States | $ | 4,389 |  |  | $ | 2,146 |  |  | $ | 30 |  |  | $ | 40 |
International | 1,149 |  |  | 612 |  |  | 22 |  |  | 15 |
| $ | 5,538 |  |  | $ | 2,758 |  |  | $ | 52 |  |  | $ | 55 |
_______________ (1)Includes revenue derived from time-and-materials contracts. Space and Airborne Systems: Space and Airborne Systems revenue is primarily derived from U.S. Government development and production contracts and is generally recognized over time using the POC cost-to-cost revenue recognition method.
| Fiscal Year Ended |  | Two Quarters Ended |  | Fiscal Years Ended
(In millions) | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019 |  | June 29, 2018
Revenue By Customer Relationship |  |  |  |  |  |  |
Prime contractor | $ | 2,684 |  |  | $ | 1,348 |  |  | $ | 2,244 |  |  | $ | 2,152 |
Subcontractor | 2,262 |  |  | 1,029 |  |  | 1,467 |  |  | 1,142 |
| $ | 4,946 |  |  | $ | 2,377 |  |  | $ | 3,711 |  |  | $ | 3,294 |
Revenue By Contract Type |  |  |  |  |  |  |
Fixed-price(1) | $ | 2,838 |  |  | $ | 1,384 |  |  | $ | 2,093 |  |  | $ | 1,625 |
Cost-reimbursable | 2,108 |  |  | 993 |  |  | 1,618 |  |  | 1,669 |
| $ | 4,946 |  |  | $ | 2,377 |  |  | $ | 3,711 |  |  | $ | 3,294 |
Revenue By Geographical Region |  |  |  |  |  |  |
United States | $ | 4,195 |  |  | $ | 2,043 |  |  | $ | 3,255 |  |  | $ | 2,936 |
International | 751 |  |  | 334 |  |  | 456 |  |  | 358 |
| $ | 4,946 |  |  | $ | 2,377 |  |  | $ | 3,711 |  |  | $ | 3,294 |
_______________ (1)Includes revenue derived from time-and-materials contracts. Communication Systems: Communication Systems revenue is primarily derived from fixed-price contracts and is generally recognized at the point in time when products are received and accepted by the customer for standard products offered to multiple customers and over time for customer-specific products, systems and services.
| Fiscal Year Ended |  | Two Quarters Ended |  | Fiscal Years Ended
(In millions) | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019 |  | June 29, 2018
Revenue By Customer Relationship(1) |  |  |  |  |  |  |
Prime contractor | $ | 3,102 |  |  | $ | 1,406 |  |  |  |  |
Subcontractor | 1,341 |  |  | 745 |  |  |  |  |
| $ | 4,443 |  |  | $ | 2,151 |  |  |  |  |
Revenue By Contract Type(1) |  |  |  |  |  |  |
Fixed-price(2) | $ | 3,805 |  |  | $ | 1,849 |  |  |  |  |
Cost-reimbursable | 638 |  |  | 302 |  |  |  |  |
| $ | 4,443 |  |  | $ | 2,151 |  |  |  |  |
Revenue By Geographical Region |  |  |  |  |  |  |
United States | $ | 3,204 |  |  | $ | 1,518 |  |  | $ | 1,281 |  |  | $ | 1,031 |
International | 1,239 |  |  | 633 |  |  | 927 |  |  | 984 |
| $ | 4,443 |  |  | $ | 2,151 |  |  | $ | 2,208 |  |  | $ | 2,015 |
_______________ (1)Prior to the L3Harris Merger, Communication Systems did not recognize significant revenue for customer-specific products and systems, and currently, such customer arrangements primarily exist at operating businesses acquired in connection with the L3Harris Merger. The “Revenue by Customer Relationship” and “Revenue by Contract Type” disaggregation categories were added beginning in the Fiscal Transition Period to best depict how the nature, amount, timing and uncertainty of revenue and cash flows from these types of customer arrangements are affected by economic factors. (2)Includes revenue derived from time-and-materials contracts. Aviation Systems: Aviation Systems revenue is primarily derived from fixed-price contracts and is generally recognized at the point in time when products are received and accepted by the customer for standard products offered to multiple customers and over time for customer-specific products, systems and services.
| Fiscal Year Ended |  | Two Quarters Ended |  | Fiscal Years Ended
(In millions) | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019 |  | June 29, 2018
Revenue By Customer Relationship |  |  |  |  |  |  |
Prime contractor | $ | 2,258 |  |  | $ | 1,246 |  |  | $ | 654 |  |  | $ | 656 |
Subcontractor | 1,190 |  |  | 792 |  |  | 18 |  |  | 12 |
| $ | 3,448 |  |  | $ | 2,038 |  |  | $ | 672 |  |  | $ | 668 |
Revenue By Contract Type |  |  |  |  |  |  |
Fixed-price(1) | $ | 2,809 |  |  | $ | 1,688 |  |  | $ | 587 |  |  | $ | 582 |
Cost-reimbursable | 639 |  |  | 350 |  |  | 85 |  |  | 86 |
| $ | 3,448 |  |  | $ | 2,038 |  |  | $ | 672 |  |  | $ | 668 |
Revenue By Geographical Region |  |  |  |  |  |  |
United States | $ | 2,843 |  |  | $ | 1,514 |  |  | $ | 644 |  |  | $ | 627 |
International | 605 |  |  | 524 |  |  | 28 |  |  | 41 |
| $ | 3,448 |  |  | $ | 2,038 |  |  | $ | 672 |  |  | $ | 668 |
______________ (1)Includes revenue derived from time-and-materials contracts.
Schedule of Total Assets by Segment | Total assets by business segment is as follows:
(In millions) | January 1, 2021 |  | January 3, 2020 |  |
Total Assets |  |  |  |  |
Integrated Mission Systems | $ | 8,906 |  |  | $ | 7,888 |  |  |
Space and Airborne Systems | 6,943 |  |  | 6,837 |  |  |
Communication Systems | 5,746 |  |  | 5,930 |  |  |
Aviation Systems | 5,026 |  |  | 7,569 |  |  |
Corporate(1) | 10,339 |  |  | 10,112 |  |  |
| $ | 36,960 |  |  | $ | 38,336 |  |  |
_______________ (1)Identifiable intangible assets acquired in connection with the L3Harris Merger in the two quarters ended January 3, 2020 and our acquisition of Exelis in fiscal 2015 were recorded as Corporate assets because they benefited the entire Company as opposed to any individual segment. Identifiable intangible asset balances recorded as Corporate assets were $7.9 billion and $8.5 billion at January 1, 2021 and January 3, 2020, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan investments, buildings and equipment, as well as any assets of discontinued operations and divestitures. See Note 3: Business Divestitures and Asset Sales in these Notes for additional information.

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