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BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended
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Mar. 31, 2023
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 before income taxes are as follows:
| Quarter Ended |  |
(In millions) | March 31, 2023 |  | April 1, 2022 |  |  |  |
Revenue from Product Sales and Services |  |  |  |  |  |  |
IMS | $ | 1,700 |  |  | $ | 1,659 |  |  |  |  |
SAS | 1,655 |  |  | 1,517 |  |  |  |  |
CS | 1,163 |  |  | 963 |  |  |  |  |
Corporate eliminations | (47) |  |  | (36) |  |  |  |  |
Total revenue from product sales and services | $ | 4,471 |  |  | $ | 4,103 |  |  |  |  |
Income before Income Taxes |  |  |  |  |  |  |
Segment Operating Income: |  |  |  |  |  |  |
IMS | $ | 185 |  |  | $ | 251 |  |  |  |  |
SAS | 187 |  |  | 177 |  |  |  |  |
CS | 266 |  |  | 229 |  |  |  |  |
Total segment operating income | 638 |  |  | 657 |  |  |  |  |
Unallocated Items: |  |  |  |  |  |  |
Unallocated corporate department expense, net(1) | (6) |  |  | (4) |  |  |  |  |
Amortization of acquisition-related intangibles(2) | (165) |  |  | (152) |  |  |  |  |
Acquisition-related transaction and integration expenses | (40) |  |  | — |  |  |  |  |
L3Harris merger-related integration expenses | — |  |  | (24) |  |  |  |  |
Impairment of other assets | (18) |  |  | — |  |  |  |  |
Additional cost of sales related to the fair value step-up in inventory sold | (15) |  |  | — |  |  |  |  |
Enterprise transformation program | (13) |  |  | — |  |  |  |  |
Pre-acquisition and other divestiture-related expenses | (10) |  |  | (1) |  |  |  |  |
FAS/CAS operating adjustment(3) | 22 |  |  | 22 |  |  |  |  |
Total unallocated items | (245) |  |  | (159) |  |  |  |  |
Non-operating income, net | 82 |  |  | 106 |  |  |  |  |
Interest expense, net | (102) |  |  | (68) |  |  |  |  |
Income before income taxes | $ | 373 |  |  | $ | 536 |  |  |  |  |
_______________ (1)Includes certain corporate-level expenses that are not included in management’s evaluation of segment operating performance. (2)Includes amortization of identifiable intangible assets acquired in connection with business combinations. Because our acquisitions benefited the entire Company, the amortization of identifiable intangible assets acquired was not allocated to any segment. (3)Represents the difference between the service cost component of Financial Accounting Standards ("FAS") pension and other postretirement benefits (“OPEB”) cost and total U.S. Government Cost Accounting Standards (“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 operating adjustment table below. The table below is a reconciliation of the FAS/CAS operating adjustment:
| Quarter Ended |  |
(In millions) | March 31, 2023 |  | April 1, 2022 |  |  |  |
FAS pension service cost | $ | (6) |  |  | $ | (11) |  |  |  |  |
Less: CAS pension cost | (28) |  |  | (33) |  |  |  |  |
FAS/CAS operating adjustment | 22 |  |  | 22 |  |  |  |  |
Non-service FAS pension income | 77 |  |  | 110 |  |  |  |  |
FAS/CAS pension adjustment, net | $ | 99 |  |  | $ | 132 |  |  |  |  |
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 |  |
| March 31, 2023 |  | April 1, 2022 |  |  |  |
(In millions) | IMS |  | SAS |  | CS |  | IMS |  | SAS |  | CS |  |  |  |
Revenue By Customer Relationship |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prime contractor | $ | 1,154 |  |  | $ | 1,010 |  |  | $ | 807 |  |  | $ | 1,086 |  |  | $ | 977 |  |  | $ | 656 |  |  |  |  |
Subcontractor | 525 |  |  | 632 |  |  | 343 |  |  | 557 |  |  | 530 |  |  | 296 |  |  |  |  |
Intersegment | 21 |  |  | 13 |  |  | 13 |  |  | 16 |  |  | 10 |  |  | 11 |  |  |  |  |
Total revenue | $ | 1,700 |  |  | $ | 1,655 |  |  | $ | 1,163 |  |  | $ | 1,659 |  |  | $ | 1,517 |  |  | $ | 963 |  |  |  |  |
Revenue By Contract Type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-price(1) | $ | 1,286 |  |  | $ | 1,022 |  |  | $ | 978 |  |  | $ | 1,261 |  |  | $ | 880 |  |  | $ | 797 |  |  |  |  |
Cost-reimbursable | 393 |  |  | 620 |  |  | 172 |  |  | 382 |  |  | 627 |  |  | 155 |  |  |  |  |
Intersegment | 21 |  |  | 13 |  |  | 13 |  |  | 16 |  |  | 10 |  |  | 11 |  |  |  |  |
Total revenue | $ | 1,700 |  |  | $ | 1,655 |  |  | $ | 1,163 |  |  | $ | 1,659 |  |  | $ | 1,517 |  |  | $ | 963 |  |  |  |  |
Revenue By Geographical Region |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 1,257 |  |  | $ | 1,454 |  |  | $ | 791 |  |  | $ | 1,182 |  |  | $ | 1,342 |  |  | $ | 625 |  |  |  |  |
International | 422 |  |  | 188 |  |  | 359 |  |  | 461 |  |  | 165 |  |  | 327 |  |  |  |  |
Intersegment | 21 |  |  | 13 |  |  | 13 |  |  | 16 |  |  | 10 |  |  | 11 |  |  |  |  |
Total revenue | $ | 1,700 |  |  | $ | 1,655 |  |  | $ | 1,163 |  |  | $ | 1,659 |  |  | $ | 1,517 |  |  | $ | 963 |  |  |  |  |
_______________ (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) | March 31, 2023 |  | December 30, 2022
Total Assets |  |  |
IMS | $ | 10,914 |  |  | $ | 11,283 |
SAS | 9,169 |  |  | 8,475 |
CS | 7,119 |  |  | 5,800 |
Corporate(1) | 8,305 |  |  | 7,966 |
Total Assets | $ | 35,507 |  |  | $ | 33,524 |
_______________ (1)Identifiable intangible assets acquired in connection with business combinations were recorded as corporate assets because they benefited the entire Company. Identifiable intangible asset balances recorded as corporate assets were $6.7 billion and $6.0 billion at March 31, 2023 and December 30, 2022, 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 business held for sale.

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