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BUSINESS SEGMENTS (Tables) | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
Schedule of Selected Financial Information by Business Segments | 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:
| Fiscal Years Ended |  | Two Quarters Ended |  | Fiscal Year Ended
(In millions) | December 31, 2021 |  | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019
Revenue |  |  |  |  |  |  |
Integrated Mission Systems | $ | 5,839 |  |  | $ | 5,538 |  |  | $ | 2,758 |  |  | $ | 52 |
Space & Airborne Systems | 5,093 |  |  | 4,946 |  |  | 2,377 |  |  | 3,711 |
Communication Systems | 4,287 |  |  | 4,443 |  |  | 2,151 |  |  | 2,208 |
Aviation Systems | 2,783 |  |  | 3,448 |  |  | 2,038 |  |  | 672 |
Other non-reportable businesses(1) | — |  |  | — |  |  | 23 |  |  | 165 |
Corporate eliminations | (188) |  |  | (181) |  |  | (84) |  |  | (7) |
Total Revenue | $ | 17,814 |  |  | $ | 18,194 |  |  | $ | 9,263 |  |  | $ | 6,801 |
Income from Continuing Operations before Income Taxes
Segment Operating Income (Loss): |  |  |  |  |  |  |
Integrated Mission Systems | $ | 950 |  |  | $ | 847 |  |  | $ | 371 |  |  | $ | 10 |
Space & Airborne Systems | 970 |  |  | 932 |  |  | 447 |  |  | 696 |
Communication Systems | 1,092 |  |  | 1,084 |  |  | 493 |  |  | 637 |
Aviation Systems | 330 |  |  | (177) |  |  | 289 |  |  | 76 |
Other non-reportable businesses(1) | — |  |  | — |  |  | — |  |  | 27 |
| 3,342 |  |  | 2,686 |  |  | 1,600 |  |  | 1,446 |
Unallocated Items: |  |  |  |  |  |  |
Unallocated corporate department expense, net | (57) |  |  | (69) |  |  | 3 |  |  | (2) |
L3Harris Merger-related transaction, integration and other expenses and losses | (128) |  |  | (140) |  |  | (390) |  |  | (65) |
Amortization of acquisition-related intangibles(2) | (627) |  |  | (709) |  |  | (289) |  |  | (101) |
Additional cost of sales related to fair value step-up in inventory sold | — |  |  | (31) |  |  | (142) |  |  | — |
Business divestiture-related gains (losses) | 220 |  |  | (51) |  |  | 229 |  |  | — |
Impairment of goodwill and other assets(3) | (125) |  |  | (132) |  |  | — |  |  | — |
Other items | (71) |  |  | 10 |  |  | — |  |  | — |
| (788) |  |  | (1,122) |  |  | (589) |  |  | (168) |
Pension adjustment | (445) |  |  | (389) |  |  | (172) |  |  | (186) |
Non-operating income | 439 |  |  | 401 |  |  | 192 |  |  | 188 |
Net interest expense | (265) |  |  | (254) |  |  | (123) |  |  | (167) |
Total income from continuing operations before income taxes | $ | 2,283 |  |  | $ | 1,322 |  |  | $ | 908 |  |  | $ | 1,113 |
_______________ (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)Includes amortization of identifiable intangible assets acquired as a result of the L3Harris Merger and the acquisition of Exelis. 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. (3)For fiscal 2021 includes: (i) a $62 million non-cash goodwill impairment charge related to our CPS business and (ii) a $63 million non-cash intangible asset impairment charge related to our CTS reporting unit. For fiscal 2020 includes: (i) a $113 million non-cash intangible asset impairment charge related to our CAS reporting unit and (ii) a $14 million non-cash goodwill impairment charge related to the then-potential divestiture of VSE disposal group, as well as a $5 million non-cash goodwill impairment charge related to the divestiture of the Applied Kilovolts business. See Note 9: Goodwill and Note 10: Intangible Assets in these Notes for additional information. Other selected financial information by business segment and geographical area is summarized below:
| Fiscal Years Ended |  | Two Quarters Ended |  | Fiscal Year Ended
(In millions) | December 31, 2021 |  | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019
Capital Expenditures |  |  |  |  |  |  |
Integrated Mission Systems | $ | 64 |  |  | $ | 67 |  |  | $ | 29 |  |  | $ | 1 |
Space & Airborne Systems | 101 |  |  | 92 |  |  | 36 |  |  | 48 |
Communication Systems | 56 |  |  | 58 |  |  | 22 |  |  | 29 |
Aviation Systems | 63 |  |  | 87 |  |  | 64 |  |  | 54 |
Other non-reportable businesses(1) | — |  |  | — |  |  | — |  |  | 6 |
Corporate | 58 |  |  | 64 |  |  | 22 |  |  | 23 |
| $ | 342 |  |  | $ | 368 |  |  | $ | 173 |  |  | $ | 161 |
Depreciation and Amortization |  |  |  |  |  |  |
Integrated Mission Systems | $ | 74 |  |  | $ | 70 |  |  | $ | 37 |  |  | $ | 2 |
Space & Airborne Systems | 69 |  |  | 66 |  |  | 31 |  |  | 50 |
Communication Systems | 49 |  |  | 61 |  |  | 32 |  |  | 49 |
Aviation Systems | 66 |  |  | 103 |  |  | 53 |  |  | 29 |
Other non-reportable businesses(1) | — |  |  | — |  |  | — |  |  | 3 |
Corporate | 709 |  |  | 732 |  |  | 289 |  |  | 125 |
| $ | 967 |  |  | $ | 1,032 |  |  | $ | 442 |  |  | $ | 258 |
Geographical Information for Continuing Operations |  |  |  |  |  |  |
U.S. operations: |  |  |  |  |  |  |
Revenue | $ | 16,234 |  |  | $ | 16,998 |  |  | $ | 8,485 |  |  | $ | 6,530 |
Long-lived assets(2) | $ | 1,870 |  |  | $ | 1,949 |  |  | $ | 1,865 |  |  | $ | 866 |
International operations: |  |  |  |  |  |  |
Revenue | $ | 1,580 |  |  | $ | 1,196 |  |  | $ | 778 |  |  | $ | 271 |
Long-lived assets(2) | $ | 231 |  |  | $ | 153 |  |  | $ | 252 |  |  | $ | 28 |
_______________ (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 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.
| Fiscal Years Ended |  | Two Quarters Ended |  | Fiscal Year Ended
(In millions) | December 31, 2021 |  | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019
Revenue By Customer Relationship |  |  |  |  |  |  |
Prime contractor | $ | 4,044 |  |  | $ | 3,721 |  |  | $ | 1,893 |  |  | $ | 27 |
Subcontractor | 1,727 |  |  | 1,764 |  |  | 847 |  |  | 25 |
Intersegment | 68 |  |  | 53 |  |  | 18 |  |  | — |
| $ | 5,839 |  |  | $ | 5,538 |  |  | $ | 2,758 |  |  | $ | 52 |
Revenue By Contract Type |  |  |  |  |  |  |
Fixed-price(1) | $ | 4,467 |  |  | $ | 4,172 |  |  | $ | 2,115 |  |  | $ | 52 |
Cost-reimbursable | 1,304 |  |  | 1,313 |  |  | 625 |  |  | — |
Intersegment | 68 |  |  | 53 |  |  | 18 |  |  | — |
| $ | 5,839 |  |  | $ | 5,538 |  |  | $ | 2,758 |  |  | $ | 52 |
Revenue By Geographical Region |  |  |  |  |  |  |
United States | $ | 4,115 |  |  | $ | 4,338 |  |  | $ | 2,120 |  |  | $ | 30 |
International | 1,656 |  |  | 1,147 |  |  | 620 |  |  | 22 |
Intersegment | 68 |  |  | 53 |  |  | 18 |  |  | — |
| $ | 5,839 |  |  | $ | 5,538 |  |  | $ | 2,758 |  |  | $ | 52 |
_______________ (1)Includes revenue derived from time-and-materials contracts. Space & Airborne Systems: Space & 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.
| Fiscal Years Ended |  | Two Quarters Ended |  | Fiscal Year Ended
(In millions) | December 31, 2021 |  | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019
Revenue By Customer Relationship |  |  |  |  |  |  |
Prime contractor | $ | 2,925 |  |  | $ | 2,684 |  |  | $ | 1,349 |  |  | $ | 2,244 |
Subcontractor | 2,157 |  |  | 2,247 |  |  | 1,023 |  |  | 1,439 |
Intersegment | 11 |  |  | 15 |  |  | 5 |  |  | 28 |
| $ | 5,093 |  |  | $ | 4,946 |  |  | $ | 2,377 |  |  | $ | 3,711 |
Revenue By Contract Type |  |  |  |  |  |  |
Fixed-price(1) | $ | 2,921 |  |  | $ | 2,834 |  |  | $ | 1,380 |  |  | $ | 2,066 |
Cost-reimbursable | 2,161 |  |  | 2,097 |  |  | 992 |  |  | 1,617 |
Intersegment | 11 |  |  | 15 |  |  | 5 |  |  | 28 |
| $ | 5,093 |  |  | $ | 4,946 |  |  | $ | 2,377 |  |  | $ | 3,711 |
Revenue By Geographical Region |  |  |  |  |  |  |
United States | $ | 4,417 |  |  | $ | 4,180 |  |  | $ | 2,038 |  |  | $ | 3,252 |
International | 665 |  |  | 751 |  |  | 334 |  |  | 431 |
Intersegment | 11 |  |  | 15 |  |  | 5 |  |  | 28 |
| $ | 5,093 |  |  | $ | 4,946 |  |  | $ | 2,377 |  |  | $ | 3,711 |
_______________ (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.
| Fiscal Years Ended |  | Two Quarters Ended |  | Fiscal Year Ended
(In millions) | December 31, 2021 |  | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019
Revenue By Customer Relationship(1) |  |  |  |  |  |  |
Prime contractor | $ | 2,886 |  |  | $ | 3,102 |  |  | $ | 1,406 |  |  |
Subcontractor | 1,347 |  |  | 1,304 |  |  | 729 |  |  |
Intersegment | 54 |  |  | 37 |  |  | 16 |  |  |
| $ | 4,287 |  |  | $ | 4,443 |  |  | $ | 2,151 |  |  |
Revenue By Contract Type(1) |  |  |  |  |  |  |
Fixed-price(2) | $ | 3,631 |  |  | $ | 3,784 |  |  | $ | 1,840 |  |  |
Cost-reimbursable | 602 |  |  | 622 |  |  | 295 |  |  |
Intersegment | 54 |  |  | 37 |  |  | 16 |  |  |
| $ | 4,287 |  |  | $ | 4,443 |  |  | $ | 2,151 |  |  |
Revenue By Geographical Region |  |  |  |  |  |  |
United States | $ | 3,001 |  |  | $ | 3,181 |  |  | $ | 1,507 |  |  | $ | 1,280 |
International | 1,232 |  |  | 1,225 |  |  | 628 |  |  | 927 |
Intersegment | 54 |  |  | 37 |  |  | 16 |  |  | 1 |
| $ | 4,287 |  |  | $ | 4,443 |  |  | $ | 2,151 |  |  | $ | 2,208 |
_______________ (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 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.
| Fiscal Years Ended |  | Two Quarters Ended |  | Fiscal Year Ended
(In millions) | December 31, 2021 |  | January 1, 2021 |  | January 3, 2020 |  | June 28, 2019
Revenue By Customer Relationship |  |  |  |  |  |  |
Prime contractor | $ | 1,808 |  |  | $ | 2,258 |  |  | $ | 1,245 |  |  | $ | 654 |
Subcontractor | 920 |  |  | 1,114 |  |  | 748 |  |  | 14 |
Intersegment | 55 |  |  | 76 |  |  | 45 |  |  | 4 |
| $ | 2,783 |  |  | $ | 3,448 |  |  | $ | 2,038 |  |  | $ | 672 |
Revenue By Contract Type |  |  |  |  |  |  |
Fixed-price(1) | $ | 2,199 |  |  | $ | 2,750 |  |  | $ | 1,664 |  |  | $ | 583 |
Cost-reimbursable | 529 |  |  | 622 |  |  | 329 |  |  | 85 |
Intersegment | 55 |  |  | 76 |  |  | 45 |  |  | 4 |
| $ | 2,783 |  |  | $ | 3,448 |  |  | $ | 2,038 |  |  | $ | 672 |
Revenue By Geographical Region |  |  |  |  |  |  |
United States | $ | 2,329 |  |  | $ | 2,769 |  |  | $ | 1,472 |  |  | $ | 640 |
International | 399 |  |  | 603 |  |  | 521 |  |  | 28 |
Intersegment | 55 |  |  | 76 |  |  | 45 |  |  | 4 |
| $ | 2,783 |  |  | $ | 3,448 |  |  | $ | 2,038 |  |  | $ | 672 |
______________ (1)Includes revenue derived from time-and-materials contracts.
Schedule of Total Assets by Segment | Total assets by business segment are as follows:
(In millions) | December 31, 2021 |  | January 1, 2021 |  |
Total Assets |  |  |  |  |
Integrated Mission Systems | $ | 9,269 |  |  | $ | 8,906 |  |  |
Space & Airborne Systems | 7,190 |  |  | 6,943 |  |  |
Communication Systems | 6,035 |  |  | 5,746 |  |  |
Aviation Systems | 3,531 |  |  | 5,026 |  |  |
Corporate(1) | 8,684 |  |  | 10,339 |  |  |
| $ | 34,709 |  |  | $ | 36,960 |  |  |
_______________ (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 $6.6 billion and $7.9 billion at December 31, 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 of discontinued operations and divestitures.

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