XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.23.2

GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended
--- | ---
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE G: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The assignment of goodwill and changes in the carrying amount of goodwill, by business segment, are as follows:
(In millions) | IMS |  | SAS |  | CS |  | Total
Balance at December 30, 2022 | $ | 7,709 |  |  | $ | 5,778 |  |  | $ | 3,796 |  |  | $ | 17,283 |
Reallocation of goodwill in business realignment | (327) |  |  | 327 |  |  | — |  |  | — |
Goodwill from TDL acquisition | — |  |  | — |  |  | 1,117 |  |  | 1,117 |
Goodwill decrease from divestitures(1) | — |  |  | (9) |  |  | — |  |  | (9) |
Currency translation adjustments | 14 |  |  | 11 |  |  | 1 |  |  | 26 |
Balance at June 30, 2023 | $ | 7,396 |  |  | $ | 6,107 |  |  | $ | 4,914 |  |  | $ | 18,417 |
_______________ (1)During the two quarters ended June 30, 2023, we assigned an additional $9 million of goodwill to our VIS business and completed the divestiture. We derecognized $39 million of intangible assets as part of determining the gain on sale. The assets (including goodwill) of VIS were included in the “Assets of business held for sale” line item in our Condensed Consolidated Balance Sheet at December 30, 2022. See Note B: Acquisitions, Divestitures and Asset Sales in these Notes for further information. Reallocation of Goodwill in Business Realignment. Effective December 31, 2022, we adjusted our reporting to better align our businesses and transferred our ADG business (a reporting unit) from our IMS segment to our SAS segment (also a reporting unit). In connection with the realignment, we reduced our reporting units from nine to eight as the ADG reporting unit and all $327 million of associated goodwill was absorbed by our existing SAS reporting unit given the economic similarities of the two reporting units. Immediately before the realignment, we performed a qualitative impairment assessment over our SAS reporting unit and a quantitative impairment assessment over our ADG reporting unit. Immediately after the realignment, we performed a quantitative impairment assessment over the SAS reporting unit. We prepared estimates of the fair value of our pre-realignment ADG reporting unit and post-realignment SAS reporting unit based on a combination of market-based valuation techniques, utilizing quoted market prices, comparable publicly reported transactions and an income-based valuation technique using projected discounted cash flows. These assessments indicated no impairment existed either before or after the realignment. Goodwill from TDL Acquisition. In connection with the January 3, 2023 acquisition of TDL, we recorded $1.117 billion of goodwill in our Broadband reporting unit within our CS segment. See Note B: Acquisitions, Divestitures and Asset Sales in these Notes for further information. Intangible Assets Identifiable intangible assets, net are summarized below:
| June 30, 2023 |  | December 30, 2022
(In millions) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount(1)
Customer relationships(2) | $ | 6,539 |  |  | $ | 2,480 |  |  | $ | 4,059 |  |  | $ | 6,124 |  |  | $ | 2,189 |  |  | $ | 3,935 |
Developed technologies(3) | 914 |  |  | 413 |  |  | 501 |  |  | 566 |  |  | 366 |  |  | 200 |
Contract backlog | 2 |  |  | 2 |  |  | — |  |  | 1 |  |  | 1 |  |  | — |
Trade names — divisions | 95 |  |  | 57 |  |  | 38 |  |  | 95 |  |  | 53 |  |  | 42 |
Other | 2 |  |  | 2 |  |  | — |  |  | 2 |  |  | 2 |  |  | — |
Total finite-lived identifiable intangible assets | 7,552 |  |  | 2,954 |  |  | 4,598 |  |  | 6,788 |  |  | 2,611 |  |  | 4,177 |
In-process research and development | — |  |  | — |  |  | — |  |  | 21 |  |  | — |  |  | 21 |
Trade names — corporate | 1,803 |  |  | — |  |  | 1,803 |  |  | 1,803 |  |  | — |  |  | 1,803 |
Total identifiable intangible assets, net | $ | 9,355 |  |  | $ | 2,954 |  |  | $ | 6,401 |  |  | $ | 8,612 |  |  | $ | 2,611 |  |  | $ | 6,001 |
_______________ (1)During the two quarters ended June 30, 2023, we completed the divestiture of our VIS business. We derecognized $10 million of intangible assets as part of determining the gain on sale which was assigned during fiscal 2022. See Note B: Acquisitions, Divestitures and Asset Sales in these Notes for further information. (2)Includes $406 million of customer relationship intangible assets acquired from the TDL acquisition and $31 million of accumulated amortization recognized during the two quarters ended June 30, 2023. See Note B: Acquisitions, Divestitures and Asset Sales in these Notes for additional information. (3)Includes $346 million of developed technology intangible assets acquired in the TDL acquisition and $10 million of accumulated amortization recognized during the two quarters ended June 30, 2023. See Note B: Acquisitions, Divestitures and Asset Sales in these Notes for additional information. The most significant identifiable intangible asset that is separately recognized for our business combinations is customer relationships. For further description of our accounting policies related to intangible assets acquired in the TDL acquisition, see Note B: Acquisitions, Divestitures and Asset Sales in these Notes, and for our accounting policies related to all other intangible assets, see Note 10: Intangible Assets, Net in our Fiscal 2022 Form 10-K. Amortization expense for identifiable finite-lived intangible assets was $173 million and $338 million for the quarter and two quarters ended June 30, 2023, respectively, and was $151 million and $303 million, for the quarter and two quarters ended July 1, 2022, respectively, which primarily related to assets acquired in connection with business combinations. Future estimated amortization expense for identifiable intangible assets is as follows:
| (In millions)
Year 1 | $ | 662 |
Year 2 | 598 |
Year 3 | 529 |
Year 4 | 467 |
Year 5 | 437 |
Thereafter | 1,905 |
Total | $ | 4,598 |
In-process R&D Impairment. During the quarter ended June 30, 2023, we closed a facility which resulted in a triggering event to evaluate the in-process research and development (“R&D”) related to the operations of the closed facility. As a result we recorded a $21 million non-cash charge for the impairment of in-process R&D intangible assets which is included in the “Impairment of other assets” line item in our Condensed Consolidated Statement of Operations.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration