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BUSINESS DIVESTITURES AND ASSET SALES | 6 Months Ended
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Jul. 01, 2022
Discontinued Operations and Disposal Groups [Abstract] |
BUSINESS DIVESTITURES AND ASSET SALES | NOTE B— BUSINESS DIVESTITURES AND ASSET SALES Completed Divestitures and Asset Sales — Two Quarters ended July 1, 2022 During the two quarters ended July 1, 2022, we completed one business divestiture and one asset sale from our Integrated Mission Systems business segment for combined net cash proceeds of $20 million and recognized a pre-tax gain of $8 million associated with the asset sale included in the “Engineering, selling and administrative expenses” line of our Condensed Consolidated Statement of Income for the quarter and two quarters ended July 1, 2022. Completed Divestitures and Asset Sales — Two Quarters ended July 2, 2021 The following table presents information regarding business divestitures and asset sales completed during the two quarters ended July 2, 2021:
(In millions) | Business Segment Prior to Divestiture / Asset Sale(1) |  | Date of Divestiture / Asset Sale |  | Sale Price |  | Net Cash Proceeds(2)
CPS business(3) | Other non-reportable businesses(7) |  | July 2, 2021 |  | $ | 398 |  |  | $ | 354 |
Military training business(4) | Other non-reportable businesses(7) |  | July 2, 2021 |  | 1,050 |  |  | 1,074 |
VSE disposal group(5) | Other non-reportable businesses(7) |  | July 2, 2021(6) |  | 20 |  |  | 2 |
|  |  |  |  | $ | 1,468 |  |  | $ | 1,430 |
_______________ (1)Business segment in which the operating results of each divested business were reported through the date of divestiture. (2)Net cash proceeds after selling costs and purchase price adjustments. (3)The Combat Propulsion Systems and related businesses (“CPS business”) engineered, designed and manufactured engines, transmissions, suspensions and turret drive systems for tracked and wheeled combat vehicle systems. (4)The military training business provided flight simulation solutions and training services to the U.S. Department of Defense and foreign military agencies. (5)The Voice Switch Enterprise disposal group (“VSE disposal group”) provided voice over internet protocol systems for air traffic management. (6)The sale of the VSE disposal group was partially closed on July 2, 2021, with the remainder divested on July 30, 2021. (7)Formerly our Aviation Systems segment. Income Before Income Taxes Attributable to Businesses Divested: The following table presents the amount of significant income before income taxes attributable to businesses divested in our Condensed Consolidated Statement of Income (Unaudited):
|  |  | Quarter Ended |  |  | Two Quarters Ended |  |  |
(In millions) |  |  | July 2, 2021 |  |  |  | July 2, 2021 |  |  |  |  |  |  |
Electron Devices business(1) |  |  | $ | 11 |  |  |  |  | $ | 30 |  |  |  |  |  |  |  |
CPS business |  |  | 27 |  |  |  |  | 53 |  |  |  |  |  |  |  |
Military training business |  |  | 18 |  |  |  |  | 35 |  |  |  |  |  |  |  |
_______________ (1)The Electron Devices and Narda Microwave-West divisions (“Electron Devices business”) manufactured microwave devices for ground-based, airborne and satellite communications and radar. We entered into a definitive agreement to sell the Electron Devices business on July 2, 2021. The sale of the Electron Devices business was closed on October 1, 2021. Business Divestiture-Related Gains, net: The “Business divestiture-related gains, net” line item in our Condensed Consolidated Statement of Income (Unaudited) is comprised of the following pre-tax gains associated with businesses divested.
|  |  | Quarter Ended | Two Quarters Ended
(In millions) |  |  | July 2, 2021 |  |  |  | July 2, 2021
VSE disposal group |  |  | $ | (18) |  |  |  |  | $ | (26) |
CPS business(1) |  |  | (12) |  |  |  |  | (19) |
Military training business |  |  | 212 |  |  |  |  | 212 |
Other |  |  | (2) |  |  |  |  | (2) |
Total business divestiture-related gains, net |  |  | $ | 180 |  |  |  |  | $ | 165 |
_______________ (1)During the quarter ended April 2, 2021, upon classifying the CPS business as held for sale, we recorded a non-cash impairment charge of $62 million, which is included in the “Impairment of goodwill and other assets” line item in our Condensed Consolidated Statement of Income (Unaudited) for the two quarters ended July 2, 2021. See Note I — Goodwill and Other Intangible Assets in these Notes for additional information. Fair Value of Businesses and Goodwill Allocation See Note I — Goodwill and Other Intangible Assets in these Notes for additional information regarding the impairment of goodwill related to business divestitures.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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