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Business Segment Information (Tables)

9 Months Ended

Oct. 01, 2021

Segment Reporting [Abstract]

Schedule of Revenue and Reconciliation of Income From Continuing Operations Before Taxes by Segment

Segment revenue, segment operating income (loss) and a reconciliation of segment operating income to total income from continuing operations before income taxes are as follows:

			Quarter Ended												Three Quarters Ended
(In millions)			October 1, 2021						October 2, 2020						October 1, 2021						October 2, 2020
Revenue
Integrated Mission Systems			$	1,336					$	1,372					$	4,281					$	4,073
Space and Airborne Systems			1,284						1,249						3,807						3,690
Communication Systems			1,030						1,094						3,269						3,300
Aviation Systems			625						792						2,248						2,603
Corporate eliminations			(46)						(44)						(141)						(132)
Total revenue			$	4,229					$	4,463					$	13,464					$	13,534
Income From Continuing Operations Before Income Taxes
Segment Operating Income (Loss):
Integrated Mission Systems			$	222					$	213					$	691					$	638
Space and Airborne Systems			242						231						735						687
Communication Systems			271						273						839						788
Aviation Systems			90						100						253						(46)
			825						817						2,518						2,067
Unallocated Items:
L3Harris Merger-related integration expenses			(34)						(27)						(75)						(95)
Amortization of acquisition-related intangibles(1)			(155)						(176)						(475)						(529)
Additional cost of sales related to fair value step-up in inventory sold			—						—						—						(31)
Business divestiture-related gains (losses)			27						(10)						192						(62)
Other items			(8)						(2)						(61)						(19)
Impairment of goodwill and other assets			—						—						(125)						(19)
Unallocated corporate department expense			(2)						(21)						(59)						(51)
			(172)						(236)						(603)						(806)
Pension adjustment			(111)						(97)						(336)						(292)
Non-operating income, net			111						96						314						296
Interest expense, net			(67)						(62)						(198)						(190)
Total income from continuing operations before income taxes			$	586					$	518					$	1,695					$	1,075

_______________

(1)Includes amortization of identifiable intangible assets acquired as a result of the L3Harris Merger and the acquisition of Exelis Inc., which benefited the entire Company as opposed to any individual segment; therefore, amortization of identifiable intangible assets acquired was not allocated to any segment.

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 was primarily derived from U.S. Government development and production contracts and was generally recognized over time using the POC cost-to-cost revenue recognition method.

			Quarter Ended												Three Quarters Ended
(In millions)			October 1, 2021						October 2, 2020						October 1, 2021						October 2, 2020
Revenue By Customer Relationship
Prime contractor			$	906					$	908					$	2,933					$	2,715
Subcontractor			414						452						1,303						1,321
Intersegment			16						12						45						37
			$	1,336					$	1,372					$	4,281					$	4,073
Revenue By Contract Type
Fixed-price(1)			$	988					$	1,039					$	3,227					$	3,060
Cost-reimbursable			332						321						1,009						976
Intersegment			16						12						45						37
			$	1,336					$	1,372					$	4,281					$	4,073
Revenue By Geographical Region
United States			$	1,016					$	1,086					$	3,070					$	3,205
International			304						274						1,166						831
Intersegment			16						12						45						37
			$	1,336					$	1,372					$	4,281					$	4,073

_______________

(1)Includes revenue derived from time-and-materials contracts.

Space and Airborne Systems: Space and Airborne Systems revenue was primarily derived from U.S. Government development and production contracts and was generally recognized over time using the POC cost-to-cost revenue recognition method.

			Quarter Ended												Three Quarters Ended
(In millions)			October 1, 2021						October 2, 2020						October 1, 2021						October 2, 2020
Revenue By Customer Relationship
Prime contractor			$	753					$	674					$	2,169					$	2,006
Subcontractor			527						570						1,630						1,673
Intersegment			4						5						8						11
			$	1,284					$	1,249					$	3,807					$	3,690
Revenue By Contract Type
Fixed-price(1)			$	717					$	702					$	2,172					$	2,072
Cost-reimbursable			563						542						1,627						1,607
Intersegment			4						5						8						11
			$	1,284					$	1,249					$	3,807					$	3,690
Revenue By Geographical Region
United States			$	1,122					$	1,064					$	3,284					$	3,114
International			158						180						515						565
Intersegment			4						5						8						11
			$	1,284					$	1,249					$	3,807					$	3,690

_______________

(1)Includes revenue derived from time-and-materials contracts.

Communication Systems: Communication Systems revenue was primarily derived from fixed-price contracts and was generally recognized at the point in time when products were received and accepted by the customer for standard products offered to multiple customers and over time for customer-specific products, systems and services.

			Quarter Ended												Three Quarters Ended
(In millions)			October 1, 2021						October 2, 2020						October 1, 2021						October 2, 2020
Revenue By Customer Relationship
Prime contractor			$	681					$	760					$	2,193					$	2,249
Subcontractor			334						325						1,036						1,024
Intersegment			15						9						40						27
			$	1,030					$	1,094					$	3,269					$	3,300
Revenue By Contract Type
Fixed-price(1)			$	871					$	931					$	2,765					$	2,790
Cost-reimbursable			144						154						464						483
Intersegment			15						9						40						27
			$	1,030					$	1,094					$	3,269					$	3,300
Revenue By Geographical Region
United States			$	719					$	745					$	2,337					$	2,410
International			296						340						892						863
Intersegment			15						9						40						27
			$	1,030					$	1,094					$	3,269					$	3,300

_______________

(1)Includes revenue derived from time-and-materials contracts.

Aviation Systems: Aviation Systems revenue was primarily derived from fixed-price contracts and was generally recognized at the point in time when products were received and accepted by the customer for standard products offered to multiple customers and over time for customer-specific products, systems and services.

			Quarter Ended												Three Quarters Ended
(In millions)			October 1, 2021						October 2, 2020						October 1, 2021						October 2, 2020
Revenue By Customer Relationship
Prime contractor			$	383					$	511					$	1,439					$	1,688
Subcontractor			231						263						761						858
Intersegment			11						18						48						57
			$	625					$	792					$	2,248					$	2,603
Revenue By Contract Type
Fixed-price(1)			$	506					$	630					$	1,786					$	2,069
Cost-reimbursable			108						144						414						477
Intersegment			11						18						48						57
			$	625					$	792					$	2,248					$	2,603
Revenue By Geographical Region
United States			$	530					$	669					$	1,891					$	2,076
International			84						105						309						470
Intersegment			11						18						48						57
			$	625					$	792					$	2,248					$	2,603

_______________

(1)Includes revenue derived from time-and-materials contracts.

Schedule of Total Assets by Business Segment

Total assets by business segment are summarized below:

(In millions)			October 1, 2021						January 1, 2021
Total Assets
Integrated Mission Systems			$	9,157					$	8,906
Space and Airborne Systems			7,149						6,943
Communication Systems			5,990						5,746
Aviation Systems			3,712						5,026
Corporate(1)			9,010						10,339
Total Assets			$	35,018					$	36,960

_______________

(1)Identifiable intangible assets acquired in connection with the L3Harris Merger on June 29, 2019 and our acquisition of Exelis Inc. 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 approximately $6.8 billion and $7.9 billion at October 1, 2021 and January 1, 2021, 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 and liabilities from discontinued operations and divestitures. See Note B — Business Divestitures in these Notes for additional information.

X

- Definition

Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
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Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (c)
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Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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