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BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended
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Apr. 01, 2022
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:
| Quarter Ended |  |
(In millions) | April 1, 2022 |  | April 2, 2021 |  |  |  |
Revenue |  |  |  |  |  |  |
Integrated Mission Systems | $ | 1,721 |  |  | $ | 1,751 |  |  |  |  |
Space & Airborne Systems | 1,450 |  |  | 1,460 |  |  |  |  |
Communication Systems | 963 |  |  | 1,112 |  |  |  |  |
Other non-reportable businesses | — |  |  | 284 |  |  |  |  |
Corporate eliminations | (31) |  |  | (40) |  |  |  |  |
Total revenue | $ | 4,103 |  |  | $ | 4,567 |  |  |  |  |
Income from Continuing Operations before Income Taxes
Segment Operating Income: |  |  |  |  |  |  |
Integrated Mission Systems | $ | 255 |  |  | $ | 234 |  |  |  |  |
Space & Airborne Systems | 172 |  |  | 192 |  |  |  |  |
Communication Systems | 229 |  |  | 270 |  |  |  |  |
Other non-reportable businesses | — |  |  | 52 |  |  |  |  |
| 656 |  |  | 748 |  |  |  |  |
Unallocated Items: |  |  |  |  |  |  |
Unallocated corporate department expense, net(1) | (7) |  |  | (33) |  |  |  |  |
L3Harris Merger-related transaction, integration and other expenses and losses | (20) |  |  | (21) |  |  |  |  |
Amortization of acquisition-related intangibles(2) | (152) |  |  | (164) |  |  |  |  |
Business divestiture-related losses | — |  |  | (15) |  |  |  |  |
Impairment of goodwill and other assets | — |  |  | (62) |  |  |  |  |
Other items | (1) |  |  | (7) |  |  |  |  |
FAS/CAS pension adjustment(3) | 22 |  |  | 30 |  |  |  |  |
| (158) |  |  | (272) |  |  |  |  |
Non-operating income | 106 |  |  | 117 |  |  |  |  |
Net interest expense | (68) |  |  | (66) |  |  |  |  |
Income from continuing operations before income taxes | $ | 536 |  |  | $ | 527 |  |  |  |  |
_______________ (1)For the quarter ended April 2, 2021, includes a $15 million accrual for a value added tax obligation. (2)Includes amortization of identifiable intangible assets acquired as a result of the all-stock merger between Harris Corporation and L3 Technologies, Inc. (the “L3Harris Merger”) and the acquisition of Exelis Inc. (“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)Represents the difference between the service cost component of FAS pension and OPEB income and total CAS pension and OPEB cost and replaces the “Pension adjustment” line item previously presented, which included the non-service components of FAS pension and OPEB income. See Net FAS/CAS pension adjustment table below. The table below is a reconciliation of the FAS/CAS pension adjustment:
| Quarter Ended
(In millions) | April 1, 2022 |  | April 2, 2021
FAS pension service cost | $ | (11) |  |  | $ | (18) |
Less: CAS pension cost | (33) |  |  | (48) |
FAS/CAS pension adjustment | 22 |  |  | 30 |
Non-service FAS pension income | 110 |  |  | 111 |
Net FAS/CAS pension adjustment(1) | $ | 132 |  |  | $ | 141 |
_______________ (1)Net FAS/CAS pension adjustment excludes net settlement and curtailment losses recognized in fiscal 2021.
Schedule of Disaggregation of Revenue by Segment | Disaggregation of Revenue We disaggregate revenue for all three 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.
| Quarter Ended |  |
(In millions) | April 1, 2022 |  | April 2, 2021 |  |  |  |
| Integrated Mission Systems |  | Space & Airborne Systems |  | Communication Systems |  | Integrated Mission Systems |  | Space & Airborne Systems |  | Communication Systems |  |  |  |
Revenue By Customer Relationship |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prime contractor | $ | 1,131 |  |  | $ | 931 |  |  | $ | 656 |  |  | $ | 1,189 |  |  | $ | 876 |  |  | $ | 728 |  |  |  |  |
Subcontractor | 574 |  |  | 513 |  |  | 296 |  |  | 550 |  |  | 581 |  |  | 373 |  |  |  |  |
Intersegment | 16 |  |  | 6 |  |  | 11 |  |  | 12 |  |  | 3 |  |  | 11 |  |  |  |  |
| $ | 1,721 |  |  | $ | 1,450 |  |  | $ | 963 |  |  | $ | 1,751 |  |  | $ | 1,460 |  |  | $ | 1,112 |  |  |  |  |
Revenue By Contract Type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-price(1) | $ | 1,277 |  |  | $ | 863 |  |  | $ | 797 |  |  | $ | 1,294 |  |  | $ | 914 |  |  | $ | 940 |  |  |  |  |
Cost-reimbursable | 428 |  |  | 581 |  |  | 155 |  |  | 445 |  |  | 543 |  |  | 161 |  |  |  |  |
Intersegment | 16 |  |  | 6 |  |  | 11 |  |  | 12 |  |  | 3 |  |  | 11 |  |  |  |  |
| $ | 1,721 |  |  | $ | 1,450 |  |  | $ | 963 |  |  | $ | 1,751 |  |  | $ | 1,460 |  |  | $ | 1,112 |  |  |  |  |
Revenue By Geographical Region |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 1,244 |  |  | $ | 1,279 |  |  | $ | 625 |  |  | $ | 1,275 |  |  | $ | 1,274 |  |  | $ | 832 |  |  |  |  |
International | 461 |  |  | 165 |  |  | 327 |  |  | 464 |  |  | 183 |  |  | 269 |  |  |  |  |
Intersegment | 16 |  |  | 6 |  |  | 11 |  |  | 12 |  |  | 3 |  |  | 11 |  |  |  |  |
| $ | 1,721 |  |  | $ | 1,450 |  |  | $ | 963 |  |  | $ | 1,751 |  |  | $ | 1,460 |  |  | $ | 1,112 |  |  |  |  |
_______________ (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) | April 1, 2022 |  | December 31, 2021
Total Assets |  |  |
Integrated Mission Systems | $ | 11,811 |  |  | $ | 11,830 |
Space & Airborne Systems | 8,573 |  |  | 8,151 |
Communication Systems | 6,083 |  |  | 6,035 |
Other non-reportable businesses | — |  |  | 3 |
Corporate(1) | 7,977 |  |  | 8,690 |
| $ | 34,444 |  |  | $ | 34,709 |
_______________ (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 $6.5 billion and $6.6 billion at April 1, 2022 and December 31, 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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